|AIG Introduces New Blended Index in the Power Series of Index Annuities®|
The ML Strategic Balanced Index™ seeks to provide a stable return in changing market environments by dynamically blending equity and fixed income indices
“With the uncertainties in today’s markets, many consumers are looking
for retirement saving strategies that can provide more stable interest
over time,” said
The ML Strategic Balanced Index™ blends the
Volatility is also monitored on a daily basis and allocations may be shifted to cash when short-term volatility rises above a certain level and from cash when volatility falls. During highly volatile markets, up to 100% of the ML Strategic Balanced Index™ may be allocated to cash to help protect against market downturns.
“This dynamic mix of equities, fixed income and cash offers upside
potential while smoothing out volatility,” said
In addition to the other Power Series index interest crediting options, individuals can now choose from two strategies that earn interest based in part on the performance of the ML Strategic Balanced Index™. There is no cap on the annual interest; however, these accounts have spreads (declared percentages) that will reduce the amount of interest earned per year.
“Indices that blend multiple asset classes are increasingly popular in the index annuity space,” said Treske. “We think this new index will help us increase our share of the growing index annuity market, and provide us with new opportunities to achieve our goal of being the premier provider of protection, investment and income solutions needed for financial and retirement security.”
The ML Strategic Balanced Index™ was developed by
Annuities are issued by
Contract Numbers: Power Series of Index Annuities Modified Single
Premium Deferred Fixed Index Annuities,
Rider Form Numbers: Market Value Adjustment (MVA) Rider, Form Number
AGE-8000 (12/12); Premium Enhancement Rider, Form Number AGE-8001
(12/12); Lifetime Income Plus (Formal Name: Optional Guaranteed Living
Benefit Rider), Form Number AGE-8002 (9/13); Annual Point-to-Point Index
Interest Account Rider, Form Number AGE-8003 (12/12); Monthly
Point-to-Point Additive Index Interest Account Rider, Form Number
AGE-8005 (12/12); Terminal Illness Rider, Form Number AGE-8007 (12/12);
Extended Care Rider, Form Number AGE-8008 (12/12); Activities of Daily
Living Rider, Form Number AGE-8009 (12/12); Periodic Average Index
Interest Account Rider, Form Number AGE-8024 (9/13); and Annual
The underwriting risks, financial and contractual obligations and
support functions associated with products issued by
Federal and state income tax laws are complex and subject to change. Please keep in mind that AGL and their distributors and representatives may not give tax, accounting or legal advice. Any tax statements in this material are not intended to suggest the avoidance of U.S. federal, state or local tax penalties. Such discussions generally are based upon the American General Life Insurance Company’s understanding of current tax rules and interpretations. Tax laws are subject to legislative modification, and while many such modifications will have only a prospective application, it is important to recognize that a change could have a retroactive effect as well. Individuals should consult their tax professional for information regarding their particular situation.
Index annuities are not a direct investment in the stock market. They are long-term insurance products with guarantees backed by the claims-paying ability of the issuing insurance company. They provide the potential for interest to be credited based in part on the performance of the specified index, without the risk of loss of premium due to market downturns or fluctuations. Index annuities may not be suitable or appropriate for all individuals.
Withdrawals may be subject to withdrawal charges. Withdrawals may also be subject to federal and/or state income taxes. An additional 10% federal tax may apply if individuals make withdrawals or surrender their annuity before age 59½.
The ML Strategic Balanced Index™ (the “Index”) embeds an annual
index cost in the calculations of the change in index value. This
“embedded index cost” will reduce any change in index value, and it
funds certain operational and licensing costs for the Index. Since it
will affect the return of the Index, it may also impact the amount of
interest credited to an index annuity or life product; however, it is
not a fee paid by you or received by
The Index is the property of
1 Diversification does not guarantee a profit nor does it protect against loss. Index annuities, equities and traditional fixed income investments such as bonds have different objectives and are subject to different risk and tax considerations. Index annuities are long-term retirement savings vehicles with tax deferral and guarantees backed by the claims-paying ability of the issuing insurance company. Withdrawals from index annuities may be subject to federal and/or state income taxes. Equities may provide higher growth potential than other investments, but they are subject to risk, including the possible loss of principal. Bonds can provide regular income, but they are sensitive to interest rate changes and credit and default risk. Equity and bond gains may be taxed as ordinary income or capital gains. Please consult a financial professional for information concerning your particular situation.
American International Group, Inc.