Index universal life insurance product offers flexible protection at
a market-leading price — plus Optionality®
HOUSTON--(BUSINESS WIRE)--Jan. 12, 2015--
American International Group, Inc. (NYSE:AIG) today announced the launch
of Value+ IUL, an index universal life insurance product
issued by American General Life Insurance Company. The Value+ IUL
solution is designed to provide flexible business and personal financial
protection at a market-leading price, and two unique options to access
cash value in the policy without reducing the initial death benefit.
“This product is the direct result of focus groups and interviews with
life insurance producers from across America, and builds on more than 20
years of expertise in the IUL market,” said James A. Mallon, President,
Life Insurance, AIG Consumer Insurance. “Value+ IUL offers meaningful
guarantees, and flexibility in the form of special features and interest
crediting strategies that help reduce costs and deliver maximum value.
As agents and advisors can explain to clients, this is ‘Life insurance
with Optionality®. Your needs. Your choices. Your way.’”
While most insurance policies lock in cash, Value+ IUL includes two
unparalleled provisions for accessing excess cash value in the policy
without decreasing the initial death benefit.1 Accessed cash
value can be used to purchase additional, paid-up life insurance without
further underwriting or for any purpose, including
supplemental retirement income. The two distinctive access
Access to cash if strong index performance – If values in the policy
exceed benchmark assumptions due to strong index performance, this
one-of-a-kind liquidity option allows clients to withdraw excess cash
value, either in policy year 20 or at age 85, with no reduction in the
initial death benefit or to the length of the death benefit guarantee.
If they choose, clients can use the cash value to buy additional,
paid-up life insurance without further underwriting.
Access to cash from excess funding – If the client pays extra
into the policy to achieve additional, tax-advantaged growth, he or
she can use this unique liquidity option to withdraw excess premiums
in policy year 20, with no decrease in the initial death benefit, if
there is available cash surrender value in the policy.
The Value+ IUL product also offers an early cash value access option
with unlocked surrender charges. If the policy is funded early (for
example, through a single-pay premium or a policy transfer from another
carrier), the client may withdraw funds above the cumulative benchmark
premium in years 3 through 14, to the extent that accumulation value is
available, and with no surrender charge penalties. The funds are not
While Value+ IUL is not an investment, it provides clients with the
potential to earn index interest crediting based in part on an
underlying index while providing downside market protection. Index
interest will be based in part on the performance of the selected
indices, but will never be less than 0.25 percent per year. Also, after
year five, the policy will automatically begin receiving an account
value interest enhancement of 0.75 percent per year. This percentage is
guaranteed never to decrease.
Value+ IUL offers three crediting strategies. Clients may
allocate funds to a single strategy or to a combination of two or three:
an Index Interest Cap Account, with interest crediting based in part
on annual growth of the S&P 500®,2 along
with an annual cap. The index interest account will never be credited
less than 0.25 percent, regardless of index performance.
a Strategic Participation Index Account, with interest crediting based
in part on a proprietary ML Strategic Balanced IndexSM,3
a combination of the S&P 500 and the Merrill Lynch 10-Year Treasury
Futures (Total Return) Index, subject to a participation rate. This
index account will never be credited less than 0.25 percent,
regardless of index performance.
a Declared Interest Account, with crediting declared by the issuing
insurance company, with an annual minimum guaranteed rate of 2.00
Value+ IUL also offers the potential for living benefits through the
Accelerated Access Solution®, available at an additional fee.
This rider allows policy holders access to a portion of the death
benefit, income tax free (based on current tax laws), if they meet all
eligibility requirements, including being certified by a licensed
physician as chronically ill, with the condition expected to be
When the rider is triggered (after a 90-day elimination period), the
policy holder can take 2 percent or 4 percent of the benefit amount per
month, or can choose the IRS per-diem maximum (as adjusted annually for
inflation) to cover medical or virtually any other bills. A waiver of
deduction on the entire Value+ IUL policy applies as long as the policy
holder is on claim.
For more details on the features, customization options, and benefits of
Value+ IUL — reinvented life insurance that provides outstanding
protection and value at a market-leading price — visit AIG.com/ValueIUL.
This information is general in nature and may be subject to change. The
Company, its financial professionals and other representatives are not
authorized to give legal, tax or accounting advice. Applicable laws and
regulations are complex and subject to change. Any tax statements in
this material are not intended to suggest the avoidance of U.S. federal,
state or local tax penalties. For advice concerning your situation,
consult your professional attorney, tax advisor or accountant.
1 Under current federal tax law, partial withdrawals are
reportable to the policy owner and may be taxable.
2 The S&P 500 (the “Index”) is a product of S&P Dow Jones
Indices LLC or its affiliates (“SPDJI”) and has been licensed for use by
AGL and US Life. Standard & Poor’s® and S&P® are registered trademarks
of Standard & Poor’s Financial Services LLC (“S&P”). These trademarks
have been licensed to SPDJI and sublicensed for certain purposes to AGL
and US Life. Value+ IUL is not sponsored, endorsed, sold or promoted by
SPDJI, S&P, or their respective affiliates, and none of such parties
make any representation regarding the advisability of paying premiums
for Value+ IUL nor do they have any liability for any errors, omissions,
or interruptions of the Index.
3 The ML Strategic Balanced IndexSM provides
systematic, rules-based access to the blended performance of two
underlying indices—the S&P 500 (without dividends), which serves to
represent equity performance, and the Merrill Lynch 10-year U.S.
Treasury Futures Total Return Index, which serves to represent fixed
income performance. To help manage overall return volatility, the Index
may also systematically utilize Cash performance in addition to the
performance of the two underlying indices. Important Note: The ML
Strategic Balanced Index embeds an annual index cost in the calculations
of the change in Index Value over the Index Term. This “embedded index
cost” will reduce any change in Index Value over the Index Term that
would otherwise have been used in the calculation of index interest, and
it funds certain operational and licensing costs for the index. It is
not a fee paid by you or received by the Company. The Company’s
licensing relationship with Merrill Lynch, Pierce, Fenner & Smith
Incorporated for use of the ML Strategic Balances Index and for use of
certain service marks includes the Company’s purchase of financial
instruments for purposes of meeting its interest crediting obligations.
Some portion of those instruments will, or may be, purchased from
Merrill Lynch, Pierce, Fenner & Smith Incorporated or its Affiliates.
Merrill Lynch, Pierce, Fenner & Smith Incorporated and its affiliates
(“BofA Merrill Lynch”) indices and related information, the name “BofA
Merrill Lynch”, and related trademarks, are intellectual property
licensed from BofA Merrill Lynch, and may not be copied, used, or
distributed without BofA Merrill Lynch’s prior written approval. The
products of licensee (American General Life Insurance Company) have not
been passed on as to their legality or suitability, and are not
regulated, issued, endorsed, sold, guaranteed, or promoted by BofA
Merrill Lynch. BOFA MERRILL LYNCH MAKES NO WARRANTIES AND BEARS NO
LIABILITY WITH RESPECT TO ANY INDEX, ANY RELATED INFORMATION, ITS
TRADEMARKS, OR THE PRODUCT(S) (INCLUDING WITHOUT LIMITATION, ITS
QUALITY, ACCURACY, SUITABILITY AND/OR COMPLETENESS). The ML Strategic
Balanced Index (the “Index”) is the property of Merrill Lynch, Pierce,
Fenner & Smith Incorporated, which has contracted with S&P Opco, LLC (a
subsidiary of S&P Dow Jones Indices LLC) to calculate and maintain the
Index. The Index is not sponsored by S&P Dow Jones Indices or its
affiliates or its third party licensors (collectively, “S&P Dow Jones
Indices”). S&P Dow Jones Indices will not be liable for any errors or
omissions in calculating the Index. “Calculated by S&P Dow Jones
Indices” and the related stylized mark(s) are service marks of S&P Dow
Jones Indices and have been licensed for use by Merrill Lynch, Pierce,
Fenner & Smith Incorporated.
Policies issued by American General Life Insurance Company (AGL).
Issuing company AGL is responsible for financial obligations of
insurance products and is a member of American International Group, Inc.
(AIG). Guarantees are backed by the claims-paying ability of AGL. May
not be available in all states and product features may vary by state.
Policy Form Numbers ICC14-14779, 14779, rider form numbers 13600, 82012,
82410, 88390, 1360, 07620, 14119.
American International Group, Inc. (AIG) is a leading international
insurance organization serving customers in more than 130 countries and
jurisdictions. AIG companies serve commercial, institutional, and
individual customers through one of the most extensive worldwide
property-casualty networks of any insurer. In addition, AIG companies
are leading providers of life insurance and retirement services in the
United States. AIG common stock is listed on the New York Stock Exchange
and the Tokyo Stock Exchange.
Additional information about AIG can be found at www.aig.com
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AIG is the marketing name for the worldwide property-casualty, life and
retirement, and general insurance operations of American International
Group, Inc. For additional information, please visit our website at www.aig.com.
All products and services are written or provided by subsidiaries or
affiliates of American International Group, Inc. Products or services
may not be available in all countries, and coverage is subject to actual
policy language. Non-insurance products and services may be provided by
independent third parties. Certain property-casualty coverages may be
provided by a surplus lines insurer. Surplus lines insurers do not
generally participate in state guaranty funds, and insureds are
therefore not protected by such funds.
Source: American International Group, Inc.
AIG’s Life Insurance Division
Stasa Cushman, 713-831-6414