AIG’s Enhanced Guaranteed Living Benefit Rider, New Monthly
Average Interest Index Account and Streamlined Product Offerings
Help Address Client Needs for Asset Accumulation and Income
Distribution
American International Group, Inc. (NYSE:AIG) announced the
latest enhancements to their index annuity products, issued by
American General Life Insurance Company, designed to offer
individuals a powerful combination of guaranteed rising income,
principal protection and growth potential.
The enhanced Lifetime Income PlusSM guaranteed living benefit
rider in AIG’s suite of index annuities will now guarantee rising
income for the first 10 contract years, as long as withdrawals do
not exceed the annual limit. This rider is automatically included
in Power Index Plus IncomeSM, a new index annuity focused on
retirement income and designed especially for the financial
institution and broker/dealer distribution channels. Lifetime
Income Plus is also available as an optional rider with the AG
Choice Index 10® and Power Index PlusSM annuities offered through
brokerage general agencies.
“Given concerns about market volatility, rising retirement costs
and longer life expectancies, many individuals are looking for a
retirement savings vehicle that can help them grow and protect
their assets, while also ensuring their retirement income will rise
and last for life,” said Rob Scheinerman, Executive Vice President,
Individual and Group Retirement, AIG Life and Retirement. “With the
enhanced Lifetime Income Plus rider, individuals can have the
confidence of knowing their retirement income can grow for up to 10
contract years, even in a down market and after withdrawals
begin.”
Lifetime Income Plus guarantees the growth of the Income
Base—the amount on which lifetime withdrawals are based—by locking
in the greater of potential interest earnings or an annual income
credit of up to 7%. Retirement income is certain to rise with a
partial income credit, as long as withdrawals are taken within the
terms of the rider. Please note that interest is added to the
Income Base, only if it produces a contract value that is higher
than all previous anniversary values.
“Some living benefit riders don’t step up when withdrawals are
taken,” said John Deremo, Executive Vice President and Chief
Distribution Officer, Life and A&H, AIG Financial Distributors.
“With ours, individuals have the flexibility to take withdrawals
when needs arise and still ensure both rising income and guaranteed
income for life.”
AIG is also pleased to introduce two additional enhancements to
its family of index annuities: 1) the Monthly Average Index
Interest Account, a new interest crediting strategy available in
the AG Choice Index 10 and the Power Series of Index Annuities; and
2) a streamlined product lineup for the financial institution and
broker/dealer markets consisting of Power Index Plus, an asset
accumulation product, and Power Index Plus Income, a retirement
income product.
The Monthly Average Index Interest Account provides new
opportunities for individuals to increase the upside growth
potential of their retirement assets. It can help contract owners
earn interest during periods of market volatility, while ensuring
that they don’t lose principal in a down market.
For financial institutions and broker dealers, AIG has enhanced
its index annuity lineup to better address the asset accumulation
and retirement income needs of Americans today. Individuals can now
choose from Power Index Plus, which offers principal protection and
growth potential, but no Lifetime Income Plus; or Power Index Plus
Income, which automatically includes Lifetime Income Plus as part
of the annuity contract.
“Our suite of index annuities allows individuals to tailor their
asset accumulation and retirement income approach to suit their
individual needs and situation,” said Mike Treske, Executive Vice
President and Chief Distribution Officer, Retirement Income
Solutions and Retail Mutual Funds. “They provide individuals with
an opportunity to not only protect their principal from market
loss, but also to help supplement other sources of guaranteed
retirement income like Social Security and pensions.”
To find out more about these annuity enhancements and AIG’s
Individual and Group Retirement solutions, please visit
www.aig.com.
Annuities are issued by American General Life Insurance
Company (AGL), 2727-A Allen Parkway, Houston, Texas 77019.
The underwriting risks, financial and contractual obligations
and support functions associated with products issued by American
General Life Insurance Company (AGL) are its responsibility. AGL
does not solicit business in the state of New York. Products may
not be available in all states or may vary by state.
Contract Numbers: Power Index Plus and Power Index Plus Income
Modified Single Premium Deferred Fixed Index Annuities, Contract
Number AG-800 (12/12); and AG Choice Index 10 Modified Single
Premium Deferred Fixed Index Annuity, Contract Number AG-801
(12/12).
Rider Form Numbers: Market Value Adjustment (MVA) Rider, Form
Number AGE-8000 (12/12); Premium Enhancement Rider, Form Number
AGE-8001 (12/12)—available only with AG Choice Index 10; 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); and
Periodic Average Index Interest Account Rider, Form Number AGE-8024
(9/13).
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 clients make withdrawals or
surrender their annuity before age 59½. Effective January 1, 2013,
certain contract owners may be subject to an additional net
investment income tax (NIIT) on income received from non-qualified
annuities. Distributions from certain qualified contracts (such as
traditional and Roth IRAs) are generally not subject to NIIT.
Individuals should consult their tax advisor regarding their
specific situation.
Lifetime Income Plus has an annual fee of 0.95% of the Income
Base. Restrictions and limitations apply. The Income Base is the
amount on which lifetime withdrawals and the rider fee are based;
it is not used in the calculation of the contract value or any
other benefits under the contract, and cannot be withdrawn
partially or in a lump sum. The Income Base is initially equal to
the first eligible premium and premium enhancement, if applicable;
it is adjusted for excess withdrawals and is increased each time an
eligible premium or corresponding premium enhancement, if any, is
made. On each contract anniversary, the Income Base is set to equal
the greater of (1) the anniversary value, if it is higher than all
previous anniversary values or (2) the current Income Base
increased by any available income credit. On the 10th contract
anniversary, the Income Base may be increased to the Minimum Income
Base (200% of eligible premiums, which do not include premium
enhancements), if no withdrawals have been taken from the
contract.
AIG Life and Retirement is the enterprise name of a group of
companies offering insurance, retirement and investment services
through a diverse family of financial services companies. AIG
Financial Distributors is a division of AIG Life and Retirement.
AIG Life and Retirement is part of the American International
Group, Inc. (AIG) family of financial services companies. Not all
products are available in all firms.
Not FDIC or NCUA/NCUSIF InsuredMay Lose
Value • No Bank or Credit Union GuaranteeNot a Deposit • Not
Insured by any Federal Government Agency
American International Group, Inc.Linda Malamut,
310-772-6533Linda.Malamut@aig.com
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