1. Income, Guarantees or Both?
What do you need most?
More potential income or more guarantees?

2. Background
For long-term life insurance needs, there are a variety of ‘permanent’ insurance options.
Some focus on guaranteeing that insurance coverage is there when it is needed, while others provide the potential for tax-advantaged, cash benefits – which may be used to supplement retirement income.
Which is best for you?
Let’s look at some background information for this concept.
For long-term life insurance needs, there are a variety of ‘permanent’ insurance options.
Some focus on guaranteeing that insurance coverage is there when it is needed, while others provide the potential for tax-advantaged, cash benefits – which may be used to supplement retirement income.
Which is best for you?

3. The Problem
Meet Grant; a 45-year-old pediatrician; married with three kids; needs $500K of additional coverage.
His investments suffered in the recent recession; wants to ensure family’s long-term protection.
Likes the long-term guarantees in a Guaranteed Universal Life (GUL) policy; but there’s no real cash value for potential income.
Likes potential for supplemental retirement income from Index Universal Life (IUL), but there are fewer guarantees than in GUL.
Willing to contribute $9,700/year for 20 years (to age 65) for additional coverage and potential retirement income.
Here is the problem:
Meet Grant; a 45-year-old pediatrician; married with three kids; needs $500K of additional coverage.
His investments suffered in the recent recession; wants to ensure family’s long-term protection.
Likes the long-term guarantees in a Guaranteed Universal Life (GUL) policy; but there’s no real cash value for potential income.
Likes potential for supplemental retirement income from Index Universal Life (IUL), but there are fewer guarantees than in GUL.
Willing to contribute $9,700/year for 20 years (to age 65) for additional coverage and potential retirement income
This is a not an actual case. It is a hypothetical representation for illustrative purposes, only.

4. SOLUTIONS
For $9,700/year, Grant’s financial professional offers him two interesting options:
Solution 1 - Emphasizing the income potential
A $500K Max Accumulator+ IUL policy:
Takes advantage of the current markets for growth potential;
Offers an illustrated $26K/year of tax-free income at retirement lasting 20 years;
Current (non-guaranteed) coverage that can last Grant’s entire life;
Guaranteed coverage ends at his retirement.²
Now let’s review some potential solutions.
For $9,700/year, Grant’s financial professional offers him two interesting options:
Solution 1 - Emphasizing the income potential
A $500K Max Accumulator+ IUL policy:
Takes advantage of the current markets for growth potential;
Offers an illustrated $26K/year of tax-free income at retirement lasting 20 years;
Current (non-guaranteed) coverage lasts Grant’s entire life;
Guaranteed coverage ends at his retirement.
2 For the purpose of easing the explanation, all numbers have been rounded. The numbers in both solutions were based on illustrations dated 04/16/18 for a 45-year-old male, preferred non-tobacco with premiums paid until age 65. The IUL policies showed the increasing death benefit option until age 65 and all distributions were illustrated using tax-free loans. Policy loans will reduce the life insurance death benefit and cash value and could reduce the duration of coverage. Policy owners should consult a tax advisor to determine the effect of these proportions. The IUL policies illustrated assume the use of Max Accum’s MLSB strategy illustrating at a 7.40% crediting rate. Please ask your financial professional for a Basic Illustration. Certain features and riders are optional and subject to specific terms, limitations and restrictions. Please refer to the policy for details.

5. SOLUTIONS
For $9,700/year, Grant’s financial professional offers him two interesting options:
Solution 2 – Focusing on guarantees
A $250K Max Accumulator+ IUL policy AND a $250K Secure Lifetime GUL3 policy:
• IUL policy offers an illustrated $19K of tax-free income at retirement lasting 20 years;
• GUL policy provides guaranteed insurance coverage until age 95;
• This scenario provides a 30-year income stream.
• This GUL policy provides a guaranteed income of $19K/year (after tax) for 10 years starting at age 86. (This GUL policy includes a Lifestyle Income Solution® Rider that provides income right from the death benefit - guaranteed!²)
But there is another option:
Solution 2 – Focusing on guarantees.
A $250K Max Accumulator+ IUL policy and a $250K Secure Lifetime GUL3 policy:
IUL policy offers an illustrated $19K of tax-free income at retirement lasting 20 years; GUL policy provides guaranteed insurance coverage until age 95;
This scenario provides a 30-year income stream. This GUL policy provides a guaranteed income of $19K/year (after tax) for 10 years starting at age 86. (This GUL policy includes a Lifestyle Income Solution® Rider that provides income right from the death benefit – guaranteed!)
2 For the purpose of easing the explanation, all numbers have been rounded. The numbers in both solutions were based on illustrations dated 04/16/18 for a 45-year-old male, preferred non-tobacco with premiums paid until age 65. The IUL policies showed the increasing death benefit option until age 65 and all distributions were illustrated using tax-free loans. Policy loans will reduce the life insurance death benefit and cash value and could reduce the duration of coverage. Policy owners should consult a tax advisor to determine the effect of these proportions. The IUL policies illustrated assume the use of Max Accum’s MLSB strategy illustrating at a 7.40% crediting rate. Please ask your financial professional for a Basic Illustration. Certain features and riders are optional and subject to specific terms, limitations and restrictions. Please refer to the policy for details.

6. Compare the Solutions
Compare the different distribution amounts between the two scenarios.
This hypothetical example is for illustrative purposes only. Not an actual case and intended solely to depict how the product features might work. It does not reflect the value of any specific Policy.

7. Compare the Solutions
Here compare the guaranteed death benefit amount and durations for the 2 concepts.
This hypothetical example assumes a 7.40% annual index interest calculation and is for illustrative purposes only. It does not reflect current interest crediting rates, cap rates or participation rates. It does not reflect the return of any investment and is not a guarantee of future income.

8. Summary
Grant wanted the most out of his insurance program, but had concerns about guaranteeing his family the protection they deserve. His financial professional offered two solutions:
1) Maximize the potential for supplemental income; or
2) Lower income potential with stronger death benefit and income guarantees.
Which one do you think he chose?
In summary Grant wanted the most out of his insurance program, but had concerns about guaranteeing his family the protection they deserve. His financial professional offered two solutions:
1) Maximize the potential for supplemental income; or
2) Lower income potential with stronger death benefit and income guarantees.
Which one do you think he chose?

9. Important Information
Policies issued by American General Life Insurance Company (AGL), Policy Form Numbers 15442, ICC ; Rider Form Numbers, 13600, ICC , , 15600,
ICC , 82012, 82410, 88390, 15990, ICC , 15972, 13601, ICC and 82001, ICC15442, 15646, ICC ; Rider Form Numbers, 13600, ICC , and except in New York, where issued by The United States Life Insurance Company in the City of New York (US Life), Policy Form Numbers 15442N and 15442NU. Issuing companies AGL and US Life are responsible for financial obligations of insurance products and are members of American International Group, Inc. (AIG). Products may not be available in all states and product features or rates may vary by state.
There may be a charge for each rider selected. See the rider for details regarding the benefit descriptions, limitations and exclusions. Riders are not available in all states. Please consult
your financial professional or review the policy and outline of coverage for your state.
Guarantees are backed by the claims-paying ability of AGL and US Life. They are not backed by the broker-dealer and/or insurance agency from which this policy is purchased or any
affiliates of those entities and none makes any representation or guarantees regarding the claims-paying ability of AGL. California residents should be provided the “California Resident
Supplemental Information” flyer on the Accelerated Access Solution (AGLC108547).
AGLC © 2016 AIG. All rights reserved.

10. 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.