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HOUSTON--Sept. 13, 2006--American General Life Insurance Company (American General Life), a member company of American International Group, Inc. (AIG), has recently revised the AG HorizonIndex annuity, enhancing American General Life's portfolio of immediate and deferred annuity products. Now AG HorizonIndex offers a choice between two death benefits: one that pays the full annuity value as a stream of payments; or an optional Death Benefit Rider, which pays the annuity value as a one-time lump sum.

"AG HorizonIndex was our first index annuity, and it was very successful. Now, we have made this popular product even better by adding a choice of death benefits that truly puts the client in the driver's seat," said Michael Harrison, Vice President, Deferred Annuity Sales and Marketing, AIG American General.

Key features of the AG HorizonIndex annuity include:

  • Three accounts in which to allocate funds: (1) a fixed-interest account; (2) an annual index account using a monthly point-to-point additive method; and (3) a two-year, index point-to-point account with an index cap
  • Two product options: Select between a nine- or twelve-year term based on client needs
  • First-year premium bonus: Either 3 percent or 4 percent depending on the product option selected (will be reduced by 1 percent if optional Death Benefit Rider is selected)
  • Annual reallocation of funds without withdrawal charges or market value adjustment (MVA)
  • Interest protection: Once interest is credited to your account, these gains cannot be lost, even in years of negative returns
  • Death Benefit: Choose between Standard Death Benefit, which pays the full annuity value as a stream of payments, or an optional Death Benefit Rider, which pays the annuity value as a one-time lump sum
  • Free withdrawals: Beginning in year two, up to 10 percent of the annuity value as of the previous contract anniversary may be withdrawn without a withdrawal charge or MVA
  • Guaranteed Minimum Withdrawal Value equal to 90 percent of the premium, accumulated at 3 percent per year
  • Income for life can be obtained using one of the many income plan options. Annuity value (without withdrawal charges or MVA) may be applied if certain conditions are met.

Index annuities like AG HorizonIndex offer the potential to earn more interest than traditional fixed, deferred annuities when there are gains in the financial index (not to exceed any declared index caps, participation rates or asset fees), while limiting risks during a decline. Minimum interest rates are determined by the interest crediting strategy or strategies selected by the contract holder. AG HorizonIndex offers a choice of three interest crediting strategies, and amounts may be allocated to any combination of the three with no minimum requirement on the amount of premium allocated to each strategy.

"As a stand-alone product or as part of an overall financial plan, AG HorizonIndex delivers the potential for growth now and into the future, while providing security and peace of mind throughout the contract," said Harrison.

For more information, send an e-mail to AnnuityMarketing@aigag.com.

AIG American General is the marketing name for the companies comprising the domestic life operations of American International Group, Inc. (AIG), including American General Life Insurance Company (American General Life). AIG American General companies offer a broad spectrum of life insurance, annuity, investment and accident and health products to serve the financial and estate planning needs of its customers throughout the United States.

American International Group, Inc. (AIG), world leaders in insurance and financial services, is the leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG's common stock is listed in the U.S. on the New York Stock Exchange as well as the stock exchanges in London, Paris, Switzerland and Tokyo.

AG HorizonIndex annuity (contract number 04367) and Death Benefit Rider (form number 06206) are issued by American General Life. The underwriting risks, financial obligations and support functions associated with the products issued by American General Life are its responsibility. American General Life is responsible for its own financial condition and contractual obligations. American General Life does not solicit business in the state of New York. Annuities and riders not available in all states.

All guarantees are subject to the claims-paying abilities of American General Life. Product specifications listed are not intended to be all-inclusive of product information. State variations may apply. Please refer to the annuity contract and rider form for complete details.

Fixed annuity products are not insured by the FDIC or any federal government agency. They are not deposits of or guaranteed by a financial institution.

AIG American General
Cynthia Wieties, 713-831-3127