Quality of Life…Insurance

Quality of Life…Insurance
Unmatched Value Proposition Presented by… Levi Robinson, CFP®, ChFC, CLU, RICP, CASL, FLMI Vice President Product Training The new Quality of Life…Insurance SelectChoice II Accelerated Benefit Riders provide a great value proposition to your clients and prospects. This presentation will walk through the details of the new riders and explain how they work. Policies issued by American General Life Insurance Company ("AGL“)

Quality of Life…Insurance SelectChoice II
Accelerated Benefit Riders The new Quality of Life…Insurance SelectChoice II Accelerated Benefit Riders provide a great value proposition to your clients and prospects. This presentation will walk through the details of the new riders and explain how they work. Policies issued by American General Life Insurance Company ("AGL“)

Value of Living Benefits
Help cover cost of care for chronic, critical, or terminal illness Provide peace of mind during a difficult time Help maintain quality of life On ALL Quality of Life…Insurance Products Living benefits are quite valuable and an important aspect in today’s financial planning. Not having the proper coverage in place to help protect against the unknown can derail even the most sound financial plans. Living benefits will help cover the cost of care for chronic, critical, or terminal illnesses. They provide peace of mind to your clients during a difficult time. Knowing they can accelerate a portion of their life insurance policy’s death benefit can help ease the financial burden caused by these unexpected illnesses or conditions. It will also help your clients maintain their quality of life. The SelectChoice II Accelerated Benefit Riders are included automatically on all Quality of Life…Insurance products. There are no underwriting restrictions. If they qualify for the policy, they automatically receive the accelerated benefit riders on their policy. The best part is that these valuable benefits are provided on the policy at no additional premium cost to the client. NO ADDITIONAL PREMIUM COST

Accelerated Benefit Rider Details
Accelerate 100% of death benefit, up to $2 million, for a qualifying chronic, critical, or terminal illness Total accelerated death benefit across all QoL policies may not exceed $2 million Provide a discounted benefit depending on severity of the condition and the expected impact on life expectancy More severe the expected impact on life expectancy, greater the accelerated amount Death benefit will be reduced by full claimed amount Now includes GUARANTEED MINIMUM benefit payout Percentage of death benefit based off policy year at time of claim Indemnity Benefit—No receipts required; spend benefits on anything These riders allow the client to accelerate 100% of their death benefit, up to $2 million, for a qualifying chronic, critical, or terminal illness. The total accelerated death benefit across all QoL policies may not exceed $2 million. The riders provide a discounted benefit to your client depending on the severity of the condition and the expected impact it has on their remaining life expectancy. Because they are receiving a portion of their death benefit early, the actual amount they receive is discounted to account for the early acceleration. The more severe the expected impact on life expectancy, the greater the accelerated amount they receive may be. The policy’s death benefit will be reduced by the full claimed amount. This version of the accelerated benefit riders now includes a guaranteed minimum benefit payout for the chronic, critical, and terminal illness conditions. The guaranteed minimums are a percentage of the policy’s death benefit and are based off the policy year at the time a claim is made. The SelectChoice II accelerated benefit riders are an indemnity type of benefit. That means the client does not have to provide receipts to receive the acceleration or wait to be reimbursed for their medical expenses. In fact, they can spend the benefit payout on whatever they see fit.

Permanency Requirement Removed! Activities of Daily Living
Chronic Illness Permanency Requirement Removed! An illness or physical condition that: Certified in the last 12 months by a licensed health care practitioner AND Affects the insured so that he or she is unable to perform without substantial assistance at least 2 activities of daily living OR Requires substantial supervision by another person to protect themselves from threats to health and safety due to severe cognitive impairment Activities of Daily Living Bathing Eating Dressing Toileting Transferring Continence Lets take a look at the chronic illness benefit. A chronic illness is defined as: An illness or physical condition that: Is certified in the last 12 months by a licensed health care practitioner AND Affects the insured so that he or she is unable to perform without substantial assistance at least 2 activities of daily living OR Requires substantial supervision by another person to protect themselves from threats to health and safety due to sever cognitive impairment. The activities of daily living are: Bathing, eating, dressing, toileting, transferring, and continence. Finally, we have removed the permanency requirement for the chronic illness benefit. That means the insured’s chronic illness is no longer required to remain permanent in order to receive the acceleration. They can now be expected to recover from the condition and still receive the benefit as long as they meet the other criteria.

New Illustration Graphs-Chronic Illness
Our illustrations have been redesigned and now include new graphs that show hypothetical payout examples for the accelerated benefit riders. Here you can see a graph that shows the guaranteed, minor, moderate, and severe payout examples for the specific scenario at different benefit claim ages. The minor, moderate, and severe hypothetical payout examples are based off the company’s expected impact on the insured’s life expectancy. Remember, the greater the expected impact to their life expectancy, the greater the benefit payout. The hypothetical example shown assumes that the policy is issued with a life insurance benefit of $500,000 on a male, age 45, Standard Non Tobacco. Hypothetical amounts shown assume that no policy premiums are unpaid and that there is no loan balance. The potential benefit payouts were calculated using assumptions that are not guaranteed and may be changed at any time. Actual payouts may be more or less favorable.

Qualifying Critical Illnesses
Major Heart Attack Stroke Coronary Artery Bypass Invasive Cancer Blood Cancers End Stage Renal Failure Major Organ Transplant Paralysis Coma Severe Burn An illness or physical condition that: Insured is diagnosed by a physician within 365 days of date claim is received Is diagnosed by a physician after insured’s coverage has been in force for 30 consecutive days (90 for invasive cancer) Is not an occurrence of the same illness or condition that an acceleration has already been paid under this rider Next lets take a look at the critical illness benefit. A critical illness is defined as: An illness or physical condition that: The insured is diagnosed with by a physician within 365 days of the date the claim is received by the company. Is diagnosed by a physician after the insured’s coverage has been in force for 30 consecutive days (or 90 consecutive days if the condition is invasive cancer). And, is not an occurrence of the same illness or condition that an acceleration has already been paid under this rider. The list of qualifying critical illnesses is: Major Heart attack Stroke Coronary Artery Bypass Invasive Cancer End Stage Renal Failure Major Organ Transplant Paralysis Coma Severe Burn

Terminal Illness An illness or physical condition that:
Is diagnosed by a physician to be reasonably expected to result in the insured’s death within 24 months from the date of the diagnosis The final portion of the accelerated benefit riders covers terminal illness. Terminal illness is defined as: An illness or physical condition that: Is diagnosed by a physician to be reasonably expected to result in the insured’s death within 24 months from the date of diagnosis

Accelerated Access Solution (AAS)
Additional Chronic Illness Coverage The new Quality of Life…Insurance SelectChoice II Accelerated Benefit Riders provide a great value proposition to your clients and prospects. This presentation will walk through the details of the new riders and explain how they work. Policies issued by American General Life Insurance Company ("AGL“)

Accelerated Access Solution Details
Additional paid Chronic Illness benefit available on new QoL products Accelerate 100% of death benefit, up to $3 million, in the event of qualifying chronic illness Dollar-for-dollar acceleration; client always knows the benefit amount Maximum underwriting class: Table D Minimum monthly benefit payout: $1,000 Benefit payout may be elected to be lump sum or monthly payout Read through slide

Accelerated Access Solution
101(g) No LTC license necessary 2-out-of-6 ADLs; or Severe Cognitive Impairment No Longer Required to be Permanent* Indemnity Benefit No Receipts Spend benefits on anything Flexible Benefit Base Benefit = 50% up to 100% of Death Benefit $50,000 minimum up to $3,000,000 maximum Full waiver of monthly deductions Let’s look at some of the benefits of the Accelerated Access Solution. Accelerated Access was filed as a rider under IRC section 101(g). That primarily means that: No LTC license is required for you to be able to sell the Accelerated Access Solution as part of an AG Secure Lifetime GUL II policy. Your Life Insurance and Accident & Health licensing is all that’s necessary from a licensing standpoint. It also means that the primary triggers for Chronic Illness benefits are either (1) inability to perform 2-out-of-6 Activities of Daily Living (ADL’s); or (2) severe cognitive impairment. The benefit was filed as an Indemnity benefit. That’s completely different than the alternative – the Reimbursement benefit. With Reimbursement, you must file a claim and provide copies of all invoices. Your claim is reviewed and, eventually, you receive a reimbursement in an amount the insurance company deems appropriate based on your receipts. With American General Life’s Indemnity version, you don’t need to provide an receipts or file any claims regarding your treatments. American General Life will send your benefit checks every month, regardless of whether you’ve incurred any costs at all, and regardless of what those costs were. You meet the criteria for ADLs or severe cognitive impairment, file your claim and satisfy the 90-day waiting period, and American General Life begins sending the checks. *Connecticut Chronic Illness Accelerated Death Benefit Rider Requirements ( ) Chronic Illness in the state of Connecticut is defined as the insured being certified, within the previous12 months, as suffering a medically determinable condition which results in their being considered unable to perform 2 of 6 Activities of Daily Living, or requiring substantial supervision. Further, as a result of this condition, the insured must have been confined for at least six months in their place of residence or in an institution that provides necessary care or treatment of an injury, illness or loss of functional capacity. Finally, it must have been medically determined that the insured person is expected to remain confined in such place of residence or institution until death. 11

Flexible Monthly Benefit
Accelerated Access Solution (AAS) Flexible Monthly Benefit IRS Per Diem capped at 2% per month IRS Per Diem capped at 4% per month IRS Per Diem with No Cap! Max. Monthly Benefit = Total Benefit ÷ 12 months The 8.3% Option! Monthly benefit: American General Life will always pay up to the maximum IRS monthly Per Diem benefit, but you have a choice of three different caps on the maximum monthly benefit American General Life will pay. 2% of the AAS Benefit Base. With this option, if you had an Accelerated Access Solution aggregate benefit of $500,000, your monthly maximum benefit would be the lesser of: (a) the IRS monthly Per Diem; or (b) $10,000 per month. 4% of the AAS Benefit Base. With this option, if you had an Accelerated Access Solution aggregate benefit of $500,000, your monthly maximum benefit would be the lesser of: (a) the IRS monthly Per Diem; or (b) $20,000 per month. If you don’t choose to cap your monthly benefit at 2% or 4%, and assuming the same aggregate $500,000 Accelerated Access Solution benefit, the maximum monthly benefit will be the lesser of: (a) the IRS monthly Per Diem; or (b) $500,000 divided by 12 months = $41,666 per month. So, choose your aggregate benefit, and your monthly cap, and you’ll be ready to go! IRS caps the maximum daily rate each year. The 2016 maximum is $340/day or $10,341.66/month. Subsequent years may be higher. 12

Benefits of Accelerated Access Solution
Inflation hedge against future costs Purchase more than today’s Per Diem limit Many products won’t allow it Provides inflation protection with a maximum monthly benefit cap 4% Cap – example: 4% of $300,000 = $12,000 per month Go on-claim in 2016: Collect $10, per month Go on-claim in the future when Per Diem = $15,000 per month: Collect $12,000 per month Per Diem – example: $300,000 AAS benefit Maximum monthly benefit: $300,000 = $15,000 per month For clarification, here are a few more examples. With Accelerated Access Solution you can actually purchase more than today’s Per Diem limit. There are products on the market that won’t let you purchase a benefit in excess of the current year’s Per Diem limit, which means your benefit will never go up, regardless of an increasing, inflation adjusted Per Diem. Because AIG allows you to purchase an aggregate amount and a monthly benefit amount in excess of the current Per Diem, the outcome is very simple. At lower Per Diem amounts you get less per month, but for more months. At higher Per Diem amounts you get more per month, but for fewer months. Let’s look at another example using a 4% cap. If you purchased a $300,000 Accelerated Access Solution benefit, your maximum monthly benefit would be $12,000. Accelerating $12,000 per month would be able to continue for 25 months ($300,000 ÷ 12 = $25) If you went on-claim in 2014 you’ wouldn’t receive the entire $12,000 per month. The IRS Per Diem would limit you to $9,900 per month, which would last for 30 months. And, if you went on claim when the IRS Per Diem was $15,000, American General would limit your monthly benefit to your capped amount of $12,000 per month. Lastly, if you did not choose a 2% or 4% cap, then your maximum monthly benefit is your total benefit divided by 12. In this example, $300,000 ÷ 12 = $25,000 per month. Naturally, if the Per Diem amount is less than $25,000 per month, you’ll receive the Per Diem in effect when you began your claim. 13

Coordination of Benefits
AAS benefit pays out first in event of Chronic Illness (100% of DB up to $3 million) Critical and terminal qualifying events will be covered under QoL ABRs 100% of DB up to $2 million total for QoL ABRs Depending on amount of AAS benefit elected, may accelerate chronic illness from both AAS and QoL ABRs Ex: $2 million policy; elect $1 million AAS benefit, would have $1 million chronic illness benefit available under QoL ABRs Also have 100% of DB up to $2 million acceleration for critical and terminal illness on QoL ABRs Read directly from slide May accelerate DB from AAS and QoL ABRs: Up to 100% of death benefit, or rider maximums

Coordination of Benefits-Example
John Smith purchases a $3 million QoL Max Accumulator+ with free QoL ABRs Also purchases AAS and elects 100% of DB for the benefit base (total AAS coverage of $3 million) He suffers a chronic illness and decides to accelerate a portion of his DB $1.5 million is accelerated using the AAS rider $3 million total - $1.5 million accelerated = $1.5 million left to accelerate under AAS $2 million total (QoL ABRs) - $1.5 million accelerated = $500k left to accelerate under QoL ABRs John suffers a critical illness 2 years after the chronic illness acceleration He may accelerate the remaining QoL ABR benefit (up to $500k) for the qualifying critical illness Read directly from slide

Disclosures Disclosures Applicable to Critical Illness Accelerated Death Benefit Rider, Chronic Illness Accelerated Death Benefit Rider, and Terminal Illness Accelerated Death Benefit Rider (1) When filing a claim for Qualifying Critical Illness under a Critical Illness Accelerated Death Benefit Rider, for Qualifying Chronic Illness under a Chronic Illness Accelerated Death Benefit Rider or for Qualifying Terminal Illness under a Terminal Illness Accelerated Death Benefit Rider, the claimant must provide to the Company a completed claim form and then-current Certification which must be received at its Administrative Center. (2) If a benefit under the Critical Illness Accelerated Death Benefit Rider is payable, the Company will provide the Owner with one (1) opportunity to elect a Critical Illness Accelerated Benefit Amount as to the occurrence of the Qualifying Critical Illness in question. To make such an election, the Owner must complete an election form and return it to AGL within the Election Period set forth in the rider (i.e., within 60 days of the owner’s receipt of the election form). The Company will not provide a later opportunity to elect a Critical Illness Accelerated Benefit Amount under a Policy as to the same occurrence of a Qualifying Critical Illness. (3) If a benefit under the Chronic Illness Accelerated Death Benefit Rider or under the Terminal Illness Accelerated Death Benefit Rider is payable, the Company will provide the Owner with an opportunity to elect a Chronic Illness Accelerated Benefit Amount as to the Qualifying Chronic Illness in question or to elect a Terminal Illness Accelerated Death Benefit Amount as to the Qualifying Terminal Illness in question, as applicable. To make an election, the Owner must complete an election form and return it to AGL within 60 days of the Owner’s receipt of the election form. (4) 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 a Qualifying Chronic Illness and, notwithstanding the Minimum Accelerated Benefit Amount provision, the accelerated benefit may be zero. (5) The failure to provide a required election form (with the requested attachments) within the Election Period provided by the applicable rider (i.e., within 60 days of the owner’s receipt of the election form) may preclude payment of a benefit. (6) Benefits payable under an accelerated death 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. (7) 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. (8) The maximum amount of life insurance death benefits that may be accelerated as to an Insured Person under all accelerated benefit riders is the lesser of the existing amount of such death benefits or a lifetime maximum of $2,000,000. (9) See your policy for details.

QoL Guarantee Plus GULII Competitive GUL with flexibility

Here is the financial life spectrum
Here is the financial life spectrum. Most people go through three phases. They are either building assets, protecting assets or trying to extend their assets. Now with American General Life’s Asset Protector we can mitigate all three potential risks during each of these phases of the financial life spectrum. Whether that be dying too soon, getting sick along the way or living too long. Let’s look at the first prong of protection of the Asset Protector which is Life Insurance which is designed to protect an individual from dying too soon.

1Net of partial withdrawals and outstanding loans.
Features & Pricing Competitive pricing – especially for clients age 55 & up Long-term guarantees to age 105 Chronic illness rider: reductions to Accelerated Access Solution cost Return of Premium (ROP) enhancements – 2 ROP opportunities (via the Enhanced Surrender Value rider) are automatically included in the policy1 Competitive pricing – especially for clients age 55+ Long-term guarantees to age 105: level pays generally fall within 3-5% of the lowest cost that don’t offer the Optionality from AGL1 Shorter funding pattern improvements: 10-pays reduce 10% on average Chronic illness rider: reductions to Accelerated Access Solution cost Return of Premium (ROP) enhancements – 2 ROP opportunities (via the Enhanced Surrender Value rider) are automatically included in the policy: Year 20 = 50% of total premium paid Year 25 = 100% of total premium paid Unbundling of Living Benefit Riders - the Accelerated Access Solution (chronic illness rider) and Lifestyle Income Solution (longevity rider) no longer need to be purchased together as the Asset Protector bundle. Each rider can be added to the policy individually or together as the Asset Protector bundle. 1Net of partial withdrawals and outstanding loans.

QoL Guarantee Plus GUL II
FREE QoL ABRs 50% ROP at Policy Year 20 100% ROP at Policy Year 25 The first aspect of the Asset Protector is the Secure Lifetime GUL 3. This is the life insurance policy that provides protection against dying too soon. Above and beyond just the life insurance protection this policy also provides some other benefits. First both the death and premium amounts are guaranteed. Which means the life insurance policy will not lapse as long as the client pays the required guaranteed premium. Additionally this policy also builds up guaranteed cash value that the client can access if needed. Built into the Secure Lifetime GUL 3 policy is a no-cost rider called the enhanced surrender value rider. This rider allows the insured to surrender their policy at the end of the 20th policy year and receive back 50% of their premiums paid. The Asset Protector also has a 100% return of premium option beginning at the age of 85 which I will explain in more detail a little later in the presentation. Guaranteed Cash Value Guaranteed Premiums and Death Benefits

QoL Guarantee Plus GUL II
Flexibility & Choice Male, Age 65, PNT, Guaranteed to 1051 Face: $1MM Guaranteed to 1051 Annual Premium: $21,054 Guaranteed Cash at 85 $102,840 Face: $500,002 Guaranteed to 1051 Annual Premium: $12,913 Guaranteed Cash at 85 $51,420 50% Withdrawal at 85: $51,420 Read directly from slide Differentiated Partial Withdrawal Capability Allows You To Access Cash and Preserve Death Benefit Guarantee Not an actual case. Presented for illustrative purposes only. Quote dated 03/15/2016 . The reduction in specified amount will be subject to the same guidelines and restrictions as outlined in the policy. The resulting remaining death benefit amount must be no less than $50,000.

Available Riders Riders Accidental Death Benefit
Children’s Insurance Benefit Rider Enhanced Surrender Value Rider QoL Accelerated Benefit Riders Accelerated Access Solution Lifestyle Income Solution Spouse/Other Insured Term Rider Waiver of Monthly Deduction Rider Accidental Death Benefit Provides an additional death benefit if death is accidental Double Accidental Death Benefit is paid if the death is sustained while a fare-paying passenger on a licensed public conveyance Minimum: $25,000/Maximum: The lesser of $200,000 or the initial sum insured under the policy Children’s Insurance Benefit Rider Provides term insurance on the base insured’s dependent children—up to but not including age 25; Minimum: $1,000/Maximum: $10,000 Enhanced Surrender Value Rider Return of premium rider provides a one-time option for surrender, during the 60-day period following the end of policy years 20 or 25 The amount of cash surrender value is 50% of the total premium paid at the end of year 20, or 100% of total premium paid at the end of year 25, net of partial withdrawals and outstanding loans. These benefits are capped at 40% of the lowest Specified Amount in the policy. Accelerated Access Solution Multiple benefit payment options - three options available including an IRS maximum per diem amount which provides a form of inflation protection for the policy owner’s benefit –– IRS maximum per diem (IRS caps the maximum daily rate each year—2016 maximum is $340) –– 2% of AAS benefit per month –– 4% of the AAS benefit per month This rider must be issued in conjunction with the Terminal Illness rider in states where both are approved. Lifestyle Income Solution Premium-paying rider provides guaranteed withdrawal benefits (regardless of the cash surrender value under the policy) Begins on the initial election date for withdrawal benefits and on each month thereafter Minimum specified amount $64,241 (Set so that someone with a 100% Basis that initiates the guaranteed benefit at age 85 with a Withdrawal Benefit Factor of 1 can have a $500 payment.) Maximum specified amount $10,000,000 (Assuming no other coverage in force) Minimum eligibility Period for the rider is 15 years. Spouse/Other Insured Term Rider Provides level term insurance on the insured’s spouse Minimum: $10,000/Maximum: Two times the base policy Terminal Illness Rider Provides an accelerated death benefit (living benefit) when the insured is diagnosed with a terminal illness (12 months or less to live) One-time acceleration benefit of up to 50% of the base policy death benefit (less policy loans and excluding riders) Maximum: $250,000 Subject to an administrative fee Some states require a signed disclosure form at time of application Waiver of Monthly Deduction Rider Waives the monthly deduction while the insured is disabled after six months of disability Premiums are based on the insured’s attained age Rider not available for face amounts greater than $5 million

Guaranteed Return of Premium (ROP) Enhanced Surrender Value Rider
If your clients’ needs change or they no longer need coverage, the new Enhanced Surrender Value Rider provides two options for surrendering the policy and recouping paid premiums – 50 percent in year 20 or 100 percent in year 25. The Enhanced Surrender Value (“ROP”) is capped at 40% of specified face amount; for example, the benefit under a policy with a $1,000,000 specified amount could never be greater than $400,000. If your clients’ needs change or they no longer need coverage, the new Enhanced Surrender Value Rider provides two options for surrendering the policy and recouping paid premiums – 50 percent in year 20 or 100 percent in year 25. The Enhanced Surrender Value (“ROP”) is capped at 40% of specified face amount; for example, the benefit under a policy with a $1,000,000 specified amount could never be greater than $400,000. The option to surrender the policy for its Enhanced Surrender Value rider must be exercised, if at all, during one of the 60-day periods following Policy Year 20 and Policy Year 25. Payment of the Enhanced Surrender Value assumes that all premiums are paid. The Enhanced Surrender Value is less any partial surrenders and outstanding loans. The Enhanced Surrender Value will not be paid in addition to the policy’s Cash Surrender Value. Termination: This rider will terminate on the earliest of the following: The date the policy terminates; or The date the policy continuation guarantee (CG) account value on the last day of a policy year is less than or equal to the CG Threshold Value described in the policy; multiplied by the Termination Percentage shown on the Rider Schedule (80%) There is no charge for this rider and will automatically be attached to every policy issued and it cannot be terminated by policyowner’s request. If this rider terminates it cannot be reinstated.

Hypothetical information for illustrative purposes only.
ROP Here is a snapshot of quote for the Secure Lifetime GUL 3 which shows the amount of the ROP available for this client in the 20th policy year. In this example the returned premiums are more than 4x the guaranteed cash surrender value/ Hypothetical information for illustrative purposes only.

The next prong of protection the Asset Protector provides is the chronic illness rider which can protect the assets of an insured if they get sick along the way due to a chronic illness.

QoL SelectChoice II ABRs
Protecting Assets QoL SelectChoice II ABRs Accelerated Access Solution Rider

The third and final prong of protection the Asset Protector provides is protection against living too long and potentially running out of money during retirement and not being able to extend ones assets as long as necessary. This is achieved by utilizing the Lifestyle Income Solution rider which provides a type of longevity protection.

What the Statistics Say
Here let’s look at some statistics. If we look at a married couple there is a 50% chance that one of them will live to age 92 and there is a 10% chance that one will live to 104. Chances of survival to age X for one spouse of a couple Prepared by Ernst & Young Insurance and Actuarial Advisory Services practice. The analysis uses the Annuity 2000 mortality table with Scale G2 mortality improvements.

The Case for Lifestyle Income Solution: Longevity Insurance
The positive aspects of living longer come with some financial concerns 48% of Americans age 45–70 have no financial plans in place to protect themselves against outliving their assets and the rising cost of health care should they live longer than expected.1 In fact, retirees in America are so afraid of running out of money that a recent survey said that 61% of them fear running out of money more they fear dying! But, more interestingly, in spite of the intense fear of running out of money, 48% of Americans have done NOTHING to protect themselves against this contingency. Today, you have an opportunity to change that. 1 State of the Insured Retirement Industry: 2012 Recap and a 2013 Outlook, Insured Retirement Institute.

Lifestyle Income Solution: Longevity Insurance
The Case for Lifestyle Income Solution: Longevity Insurance Lifestyle Income Solution: Longevity Insurance Accelerate up to 10% of DB per year Primary requirement: Live to age 85 Tax-free up to basis; ordinary income after The Lifestyle Income Solution: provides a type of longevity insurance. With this rider the insured/policyowner has the ability to accelerate up to 10% of their death benefit per year. The primary requirements is that they live to age 85. It is a tax free return of their cost basis “100% ROP” and the rest is taxed as ordinary income. Choosing to exercise rights under the Lifestyle Income Solution can impact cash available under the Accelerated Access Solution. Please speak with your American General Life Insurance Company representative for more information.

Hypothetical information for illustrative purposes only.
100% ROP at Age 85 2.2x more! Premiums Returned! Here an example of the output on the quote for the Lifestyle Income Solution. At the age of 85 this client starts to accelerate their death benefit at a rate of roughly 10% per year. The total premium paid into this policy totals $438,781 which is 2.6x more than the guaranteed cash value at the age of 85. By age 90 the client has received back all of their premium by utilizing the Lifestyle Income Solution. Hypothetical information for illustrative purposes only.

Top 5 Ranked or 10% from Leader Not in top 5 Ranked or 10% from Leader
New QoL Guarantee Plus GUL II Level Pay & Guarantee to Age 105 Premium Ranking for QoL Guarantee Plus GUL II (Oct 2016), Face, Paying Level Pay, Guarantee to 105, Male 50 55 60 65 70 75 80 PPNT 4 of 15 3 of 15 2 of 15 11% 8% 7% 4% 3% PNT 10% 5% 1% SPNT 5 of 15 15% 12% SNT PT 7 of 15 8 of 15 21% 14% 17% 9% Premium Ranking for QoL Guarantee Plus GUL II (Oct 2016), Face, Paying Level Pay, Guarantee to 105, Female 6 of 15 1 of 15 6% 0% 16% 18% Legend: Top 5 Ranked or 10% from Leader Not in top 5 Ranked or 10% from Leader *Rates as of 10/04/2016. Note that Nacolah’s Custom Guarantee max pay is to age 100 but guarantee to lifetime. 14 key Competitors include: North American Custom Guarantee (Gen 8), American National Signature Guaranteed UL, Nationwide YourLife No Lapse Guarantee UL, Protective Advantage Choice UL 2-16, Prudential PruLife Universal Protector (2016), Principal UL Protector IV (2013), Lincoln Financial LifeGuarantee UL 2013, New York Life NYL Custom UL Guarantee AD113, Mutual of Omaha GUL & GUL Plus, Banner Life Step UL, Pacific Life Versa Flex NLG 2014, John Hancock UL-G 13, Zurich Guaranteed Death Benefit UL.

Top 5 Ranked or 10% from Leader Not in top 5 Ranked or 10% from Leader
New QoL Guarantee Plus GUL II Ten & Single Pay - Guarantee to Age 105 Premium Ranking for QoL Guarantee Plus GUL II (Oct 2016), Face, Paying Ten Pay, Guarantee to 105, Male 50 55 60 65 70 75 80 PPNT 6 of 15 5 of 15 4 of 15 19% 7% 10% 9% 16% PNT 18% 6% 5% 8% 15% SPNT 3 of 15 11% SNT 17% PT 7 of 15 32% 13% 14% 23% 21% Premium Ranking for QoL Guarantee Plus GUL II (Oct 2016), Face, Paying Single Pay, Guarantee to 105, Male 9 of 15 4% 1% 8 of 15 1 of 15 0% 10 of 15 2 of 15 11 of 15 30% 12% Legend: Top 5 Ranked or 10% from Leader Not in top 5 Ranked or 10% from Leader *Rates as of 10/04/2016. Note that Nacolah’s Custom Guarantee max pay is to age 100 but guarantee to lifetime. 14 key Competitors include: North American Custom Guarantee (Gen 8), American National Signature Guaranteed UL, Nationwide YourLife No Lapse Guarantee UL, Protective Advantage Choice UL 2-16, Prudential PruLife Universal Protector (2016), Principal UL Protector IV (2013), Lincoln Financial LifeGuarantee UL 2013, New York Life NYL Custom UL Guarantee AD113, Mutual of Omaha GUL & GUL Plus, Banner Life Step UL, Pacific Life Versa Flex NLG 2014, John Hancock UL-G 13, Zurich Guaranteed Death Benefit UL.

Illustrating Living Benefits in WinFlex
To illustrate the added features on QoL Guarantee Plus II you first need to select the Living Benefit Option Box. From there, if you choose to illustrate the Accelerated Access Solution Rider, check the box, then complete the information below including how long they want to pay premiums, what percentage of the death benefit they would like to elect towards AAS, and what Monthly Benefit Payout Amount they would like. If you wish to illustrate the Lifestyle Income Solution Rider by checking the appropriate box. Remember, with the LIS, the policy must be paid up before the benefit period begins. So, if you wish to receive the full benefit amount beginning at age 85, the Years/Age to Pay Premium must also be 85 (or sooner). Also, don’t forget that the policy death benefit must also be guaranteed to age 100 for the LIS rider. Lastly, you may illustrate the AAS and LIS riders together by selecting the appropriate box then completing the information for both of the riders.

National Re-price Transition Rules
New rates effective October 17, 2016 QoL Guarantee Plus GULII applications received on or before November 30, will receive the old rate if new rate is not specified on the quote. During transition period, quotes generated through WinFlex will receive the new rate. To receive a quote with the old rates, it must be requested from the Sales Support Desk. If during the transition period, a quote is received with the new rate, the new rate will be accepted. QoL Guarantee Plus GULII applications received after November 30, will receive the new rates. If a quote with the old rates is received at application submission a requirement will be posted requesting a new quote with new rates. Reissue requests will not be honored.

California & MN Transition Rules
Paper applications received on or before November 30, 2016 will automatically receive QoL Guarantee Plus rates and features unless the new QoL Guarantee Plus GUL II product is specifically requested. Paper applications received after November 30, 2016 will automatically receive QoL Guarantee Plus GUL II rates and features. Reissue requests to new plan will not be honored. New applications submitted to replace existing inforce coverage with the new rates will not be honored within 90 days of the existing coverage going inforce.

Questions

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. The following should be read aloud: “The presentation provided is for educational purposes only and American General does not endorse or promote the concept presented. The concept presented is made available for the purpose of informing American General’s appointed agents that such concepts exist and that clients who may be interested in investigating such concepts seek the counsel and services of their independently retained experts and advisors on such matters”. FOR AGENT USE ONLY - NOT FOR DISSEMINATION TO THE PUBLIC

Important Information
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 ICC , 15442, Rider numbers ICC , ICC , ICC , ICC , ICC , 15972, 82012, 82410, 88390, 82001, © 2016 American International Group, Inc. (AIG). All rights reserved. (1) When filing a claim for Qualifying Critical Illness under a Critical Illness Accelerated Death Benefit Rider, for Qualifying Chronic Illness under a Chronic Illness Accelerated Death Benefit Rider or for Qualifying Terminal Illness under a Terminal Illness Accelerated Death Benefit Rider, the claimant must provide to the Company a completed claim form and then-current Certification which must be received at its Administrative Center. (2) If a benefit under the Critical Illness Accelerated Death Benefit Rider is payable, the Company will provide the Owner with one (1) opportunity to elect a Critical Illness Accelerated Benefit Amount as to the occurrence of the Qualifying Critical Illness in question. To make such an election, the Owner must complete an election form and return it to AGL within the Election Period set forth in the rider (i.e., within 60 days of the owner’s receipt of the election form). The Company will not provide a later opportunity to elect a Critical Illness Accelerated Benefit Amount under a Policy as to the same occurrence of a Qualifying Critical Illness. (3) If a benefit under the Chronic Illness Accelerated Death Benefit Rider or under the Terminal Illness Accelerated Death Benefit Rider is payable, the Company will provide the Owner with an opportunity to elect a Chronic Illness Accelerated Benefit Amount as to the Qualifying Chronic Illness in question or to elect a Terminal Illness Accelerated Death Benefit Amount as to the Qualifying Terminal Illness in question, as applicable. To make an election, the Owner must complete an election form and return it to AGL within 60 days of the Owner’s receipt of the election form. (4) 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 a Qualifying Chronic Illness and, notwithstanding the Minimum Accelerated Benefit Amount provision, the accelerated benefit may be zero. (5) The failure to provide a required election form (with the requested attachments) within the Election Period provided by the applicable rider (i.e., within 60 days of the owner’s receipt of the election form) may preclude payment of a benefit. (6) Benefits payable under an accelerated death 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. Read Slide 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
(7) 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. (8) The maximum amount of life insurance death benefits that may be accelerated as to an Insured Person under all accelerated benefit riders is the lesser of the existing amount of such death benefits or a lifetime maximum of $2,000, (9) 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.

American International Group, Inc
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 | YouTube: | | LinkedIn: 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 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. AGLC109708

Quality of Life…Insurance

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