1. FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION Understanding Index Universal Life Insurance Presented by, Trevor Keeble Director of Product Training Policies issued by American General Life Insurance Company ("AGL“)

2. 2 FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION Disclaimer The information presented herein is not a comprehensive analysis of the topic presented, and the viewer should consult tax and legal advisors to understand all the ramifications of the topics discussed. No representation or warranty, express or implied, is made by AGL or its affiliates as to the completeness of the information provided. All companies mentioned, their employees, financial professionals and other representatives are not authorized to give legal, tax or accounting advice. Applicable laws and regulations are subject to change and individuals should consult an attorney, tax advisor or accountant. Any tax statements in this material are not intended to suggest the avoidance of U.S. federal, state or local tax penalties. To ensure compliance with requirements imposed by U.S. Treasury Regulations, we inform you that any tax advice contained in this presentation (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

3. 3 FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION The S&P 500(R) (“Index”) is a product of S&P Dow Jones Indices LLC and has been licensed for use by American General Life Insurance Company (AGL). The product is not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, any of their respective affiliates (collectively, “S&P Dow Jones Indices”) or their respective third party licensors. Neither S&P Dow Jones Indices nor its third party licensors make any representation or warranty, express or implied, to the owners of the product or any member of the public regarding the advisability of investing in securities generally, in this product particularly, or the ability of the Index to track general stock market performance. S&P Dow Jones Indices and its third party licensors’ only relationship to AGL with respect to the Index is the licensing of the Index and certain trademarks, service marks and/or trade names of S&P Dow Jones Indices and/or its third party licensors. The Index is determined, composed and calculated by S&P Dow Jones Indices or its third party licensors without regard to AGL or the product. S&P Dow Jones Indices and its third party licensors have no obligation to take the needs of AGL or the owners of the product into consideration in determining, composing or calculating the Index. Neither S&P Dow Jones Indices nor its third party licensors are responsible for and have not participated in the determination of the prices, and amount of the product or the timing of the issuance or sale of the product or in the determination or calculation of the equation by which the product is to be cash surrendered. S&P Dow Jones Indices and its third party licensors have no obligation or liability in connection with the administration, marketing or trading of the product. There is no assurance that insurance products based on the Index will accurately track index performance or provide positive investment returns. S&P Dow Jones Indices LLC is not an investment advisor. Inclusion of a security within Index is not a recommendation by S&P Dow Jones Indices to buy, sell, or hold such security, nor is it considered to be investment advice Disclaimer

4. 4 FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION 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 the issuing insurance company. AGL does not solicit business in the state of New York. 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 the issuing insurance company. AGL does not solicit business in the state of New York. Products may not be available in all states and product features may vary by state. Please refer to your policy. For policy forms ICC14-14579, 14579, ICC10 AGL ABR, AGL ABR, ICC14-14012,14012 ICC14-14018, 14018, ICC14-14390, 14390, AGL 05AHC, AGL EMD-DB, ICC14-14002, 14002, 14306 and state variations. © 2014 American International Group, Inc. (AIG). All rights reserved. (1) When filing a claim for Qualifying Critical Illness, Qualifying Terminal Illness or Qualifying Chronic Illness under an Accelerated Benefit Rider, the claimant must provide to the Company a completed claim form (with Certification attached in the case of a Qualifying Chronic Illness) which must be received at its Administrative Center within the time frame specified in the Rider, if any. (2) If a benefit under an Accelerated Benefit Rider is payable and the Owner elects to receive such benefit, the Company will provide the Owner with one (1) opportunity to elect a Flexible Accelerated Benefit and/or a Defined Accelerated Benefit, if applicable, under the Policy as to such Qualifying Event. To make such an election, the Owner must complete an election form and return it to AGL within 60 days of receipt of the election form. The Company will not provide a later opportunity to elect a Flexible Accelerated Benefit and/or a Defined Accelerated Benefit, if applicable, under a Policy as to the same Qualifying Critical Illness or Qualifying Chronic Illness. Under certain circumstances where an insured’s mortality (i.e., our expectation of the insured’s life expectancy) is not significantly changed by a Qualifying Critical Illness or Qualifying Chronic Illness, the accelerated benefit may be zero. (3) The failure to provide a required claim form and a required election form (with the requested attachments) within the periods set forth for each in a Policy may preclude payment of a benefit. (4) Benefits payable under an accelerated benefit rider may be taxable. Neither American General Life Insurance Company nor any agent representing it is authorized to give legal or tax advice. Please consult a qualified legal or tax advisor regarding questions concerning the information and concepts contained in this material. (5) Generally, we will send you an IRS Form 1099-LTC if you receive an accelerated death benefit on account of a Chronic Illness or a Terminal Illness. We will send you an IRS Form 1099-R if you receive an accelerated death benefit on account of a Critical Illness. The sum that will be included in Box 2 (Accelerated death benefits paid) of IRS Form 1099-LTC or in Box 1 (Gross distribution) of IRS Form 1099-R will be the actual sum you received by check or otherwise minus any refund of premium and/or loan interest included with our benefit payment plus any unpaid but due policy premium, if applicable, and/or pro rata amount of any loan balance. (6) See your policy for details. Important: Prior to soliciting business, be certain that you are appropriately licensed and appointed with the insurer and that the product has been approved for sale by the insurer in That state. If uncertain, contact your American General Life Companies representative for assistance. Important Information

5. 5 FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION Value Proposition Market Upside Downside Protection Long-Term Yield Advantage Over Current Assumption UL

6. 6 FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION Minimum Guarantees Policy will never lose principal or interest credits due to negative market performance Index strategies will credit at least 0.25%, regardless of market performance

7. 7 FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION IUL History  Transamerica Occidental Life Insurance Company rolled-out the first-ever Index UL in January of 1997 – in response to rising market conditions and the growing popularity of the similarly-structured index annuity, introduced just two years prior.*  Index Universal Life’s design was identical to that of traditional UL (which was developed in the 1970’s), but offered the purchaser the ability to earn limited interest based on the performance of a stock market index (without being subject to the losses of the stock market itself).* *Source: Sheryl J. Moore’s NAIC Comment on IUL Illustrated Rates November 5, 2014 Article

8. 8 FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION Index UL Market Overview IUL Production Has Shown Growth In The Last Decade IUL represented 53% of UL and 20% of all individual life insurance premium sold during the first half of 2015. Source: Wink’s Sales and Market Report and LIMRA 6/16/2014

9. 9 FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION How Does the Premium Flow in our IUL? *See Policy for additional Details

10. 10 FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION IUL vs Traditional UL Index UL Traditional UL Flexible Premium YES Permanent Insurance YES Designed to cover Insured’s lifetime YES Pays interest rate as determined by the company YES Net premiums are invested in and backed by the company’s general account YES Include a flexible death benefit and a choice for the death benefit option YES Can include Rolling Target Premiums YES Provide for tax-deferred cash value accumulation YES Include the potential for cash value growth YES Incorporate guarantee features YES Include a guaranteed interest rate YES Allow for withdrawals and loans YES Upside earnings potential with index-linked interest crediting YESNO

11. 11 FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION

12. 12 FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION Characteristics of IUL Participation Rate Cap Rate Indices Index Strategies Minimum Guarantees Policy Loans

13. 13 FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION What is a Participation Rate? The participation rate determines how much of any net increase in the index’s value will be used to determine the credited rate to the policy Index Percentage Increase (if any) Participation Rate Interest Rate Credited = X

14. 14 FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION What is a Cap Rate? The cap rate is the maximum amount of interest that can be credited to an IUL policy for any crediting period S&P 500 ® Index +14% Cap Rate 11% Credited to Policy =

15. 15 FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION Index Options Currently Available 10-Year Constant Maturity Treasury Note Barclays Bond Index Barclays US Dynamic Balance IndexDow Jones-UBS Commodity Index Euro Stoxx 50Hang Seng MSCI EAFEMSCI Emerging Markets NASDAQ-100Russell 2000 S&P 500S&P 500 Global (BMI) S&P MidCap 400S&P Total Return Index ML Strategic Balanced Index* Current as of 2/24/2015 *Not available in New York.

16. 16 FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION Index Strategies An index strategy uses a formula that calculates interest based in part on the movement of a stock/bond market index, such as the S&P 500 Index. Index UL has different index strategies where clients can direct their money in an effort to take advantage of positive movements in a stock market index.

17. 17 FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION Types of Index Strategies Annual Point-to-Point Daily Averaging Inverse Term End Point Monthly Averaging Monthly Point-to-Point Performance Triggered Term End Point Two Year Point-to-Point Five Year Point-to-Point

18. 18 FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION Crediting Options 1)Declared Interest Account 2)Index Interest Account with Cap Rate 3)Index Interest Account with Participation Rate 4)Index Interest Account with Spread

19. 19 FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION Cap Rate Index Account Current Cap Rate11.00% Illustrated Rate6.62% Minimum Guarantee0.25% Participation Rate Index Account Current Participation Rate70% Illustrated Rate6.62% Minimum Guarantee0.25% Declared Interest Account Current Rate3.25% Minimum Guarantee2.00% Crediting Strategies/Rates Rates current as of 9/28/15

20. 20 FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION Index Cap Account  Calculates interest based on S&P 500 change over one year  Credited at end of year  Point-to-point compares ending vs. beginning value  Credit up to current cap rate (11%) Hypothetical Example Beginning S&P 500 Index Value 1250 Ending S&P 500 Index Value 1470 Non-Guaranteed Cap Rate 11% The index percentage change is calculated as follows: 1470 - 1250 ___________ 1250 ()= 17.6% 11% credited to the policy Rates current as of 9/28/15

21. 21 FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION Participation Rate Account  Calculates interest based on S&P 500 change over one year  Credited at end of year  Point-to-point compares ending vs. beginning value  Percentage change multiplied by participation rate  That difference is credited to the policy Hypothetical Example Beginning S&P 500 Index Value 1250 Ending S&P 500 Index Value 1470 Non-Guaranteed Participation Rate 70% The index percentage change is calculated as follows: 1470 - 1250 ___________ 1250 ()= 17.6% 12.3% credited to the policy Index Change times Participation Rate Rates current as of 9/28/15

22. 22 FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION –New accounts are created as premiums are paid –Each Index Account has a duration of 12 months –Additional net premium and lump sum deposits create new accounts Index Accounts

23. 23 FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION Historical Performance 1-year S&P 500 Cap Account 1-year S&P 500 Participation Account Begin DateEnd DateIndex Growth Rate Hypothetical Interest Credited 1/1/199512/31/199534.11%11.00% 23.88% 1/1/199612/31/199620.26%11.00% 14.18% 1/1/199712/31/199731.01%11.00% 21.71% 1/1/199812/31/199826.67%11.00% 18.67% 1/1/199912/31/199919.53%11.00% 13.67% 1/1/200012/31/2000-10.14%0.25% 1/1/200112/31/2001-13.04%0.25% 1/1/200212/31/2002-23.37%0.25% 1/1/200312/31/200326.38%11.00% 18.47% 1/1/200412/31/20048.99% 6.30% 1/1/200512/31/20053.00% 2.10% 1/1/200612/31/200613.62%11.00% 9.53% 1/1/200712/31/20073.53% 2.47% 1/1/200812/31/2008-38.49%0.25% 1/1/200912/31/200923.45%11.00% 16.42% 1/1/201012/31/201012.78%11.00% 8.95% 1/1/201112/31/20110.00%0.25% 1/1/201212/31/201213.41%11.00% 9.38% 1/1/201312/31/201329.60%11.00% 20.72% 1/1/201412/31/201411.39%11.00% 7.97% Compound Annual Average 7.79%7.33%9.49% Source: https://finance.yahoo.com/q/hp?s=%5EGSPC+Historical+Prices 8/28/2015https://finance.yahoo.com/q/hp?s=%5EGSPC+Historical+Prices

24. 24 FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION Policy Loans or Withdrawals? Loans and withdrawals each have unique characteristics and impact the policy in different ways The portion of a withdrawal that is greater than premiums paid into the policy is subject to tax. Policy loans are not taxed since the policyholder is required to pay back the loan balance either out of pocket for via the policy’s death benefit.* *Assuming policy is not a MEC and does not lapse

25. 25 FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION  Fixed Rate – Known in Advance  Available in any policy year as long as there is positive cash surrender value  Loaned amounts are removed from the index, declared interest, and interim accounts on a pro-rata basis  6% Net Loan Rate Policy Loan Types Standard Loan *Only one type of loan is available on the policy at a time.

26. 26 FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION  Work the same as Standard Loans, BUT: Policy Loan Types Preferred Standard Loan Available in policy years 11+ 0% Net Cost

27. 27 FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION  Available beginning in 4 th policy year  Fixed 6% loan rate  Cannot be changed once policy is issued  Loaned amounts are NOT removed from accounts and are still eligible for index or excess interest  Participate in index returns = potential for positive arbitrage  Participate in index returns = potential for negative arbitrage Policy Loan Types Choice Loan

28. 28 FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION How It Works Preferred Standard Loan $100,000 Cash Surrender Value $20,000 Loan 7% Remaining Cash Value $80,000 2% Charged $20,000 Loan 2% Credited Removed from cash value

29. 29 FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION How It Works Choice Loan 7% $100,000 Cash Surrender Value $20,000 Loan 6% Charged Full cash value remains 7% Credited Rate 6% Loan Rate 1% Positive Arbitrage

30. 30 FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION ABC Hypothetical Index Interest Credited Current Loan Interest Charged Spread = A-B 1%6%-5% Loss 6% 0% 8%6%2% Gain 11%6%5% Gain Choice Loan Example

31. 31 FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION Loan Comparison Preferred Standard Loan Participating Fixed Loan Guaranteed Loan Rate Provides tax-free income Unpaid loan deducted from death benefit Potential for indexed gains Loaned amounts removed from account value

32. 32 FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION  Less expensive  Withdraw to basis and then loan provides greater cash flow Expect Market to be Flat or Down? Standard Loan

33. 33 FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION  “Arbitrage” possible  Could be greater cash value in the long run  Generally illustrates more cash flow than fixed  100% Choice loan illustrates greater income stream Expect Market to be Growing? Choice Loan

34. 34 FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION Additional Information  Loan option is chosen at time of request, not issue  Only one loan type is available at a time  Client has the ability to switch from a Standard Loan to a Choice Loan, or vice versa  Maximum of 3 times during the life of the contract  Entire loan balance switches

35. American International Group, Inc. (AIG) is a leading international insurance organization serving customers in more than 130 countries.. 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 | YouTube: www.youtube.com/aig | Twitter: @AIG_LatestNews | LinkedIn: http://www.linkedin.com/company/aig 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. AGLC109203