1. Introducing Elite Index® II
Cost-effective life insurance with upside potential and downside protection
Presented by…

2. Life insurance provides your clients with the security of providing for their families or business if they should die prematurely. But when purchasing life insurance they are faced with choices. Should they opt for the security of a fixed product with today’s low interest rates, or choose a variable product with inherent volatility? Now your clients have the opportunity to benefit from both worlds.

3. Today, there is a new choice
Elite Index II

4. Elite Index II Target Market
Desire life coverage with upside cash value growth potential and downside guaranteed protection
Key ages 40-65
Moderate to conservative risk tolerance
Policyholder objectives: 
Primary:  Low-cost death benefit protection
Secondary:  Income production to supplement retirement

5. What’s New With Elite Index II?
Protection with simplified guarantees and now including a chronic illness rider
Now offered with the Accelerated Access SolutionSM – gives you the option to accelerate your death benefit in the event of a chronic illness, if all criteria are met
Simplified death benefit with no-lapse guarantee – now guaranteed for 20 years or age 80 (whichever comes first)
New

6. What’s New With Elite Index II?
Higher upside potential for growth
Increased cap rates – now at 13%, offering greater opportunity for growth if the market performs well
Higher participation rates – now at 70%, offering greater opportunity for growth in the market performs well
New Choice Loan option – allows the client to access their funds while they remaining eligible for potential index crediting

7. Key Benefits of Elite Index II
Competitively priced, fixed index universal life protection for individual and business needs.
Interest crediting based in part on the one-year point-to-point growth in the S&P 500.
Ability to allocate premiums among Cap Rate Index Account, Participation Rate Index Account and Declared Interest Account.

8. Key Benefits of Elite Index II
Minimum Death Benefit $50,000
Rolling 2-Year target premiums (not available in New York)
Maximum issue age of 90 and Preferred Plus underwriting class available to issue age 80
Four cost of insurance (COI) bands

9. Loan Options Standard & Preferred Loans Preferred Loans
The effective annual loan rate is 4.00 percent. It is payable in advance at the rate of 3.85 percent.
Annual effective rate of 3.00 percent will be credited to the portion of the accumulation value that equals the amount of policy loans.
Preferred Loans
Available after 10 policy years.
Maximum preferred loan amount is 10% of the average at the beginning of the policy year.
Loan rate (not guaranteed) currently equals the credited rate applied to the policy loan.

10. Loan Options Choice Choice Loans
Available whenever there is an amount of cash value accumulation in the policy.
Fixed rate of 6.00%
Policy values in these accounts continue to participate in the index account
New

11. Available Riders Accidental Death Benefit Rider
Children’s Insurance Benefit Rider
Spouse/Other Insured Rider
Overloan Protection Rider
Terminal Illness Accelerated Benefit Rider
Accelerated Access SolutionSM (Chronic Illness Rider)
Waiver of Monthly Deduction Rider
Maturity Extension Option

12. even those unrelated to the illness
Accelerated Access SolutionSM
A chronic illness1 rider for Elite Index II The funds can be used to help pay for –
Adult Daycare
Assisted Living
Family Care
Nursing Home Care
Virtually any expense,
even those unrelated to the illness
Adult Daycare
Assisted Living
Family Care
Nursing Home Care
The Accelerated Access Solution is a life insurance rider that can provide access to income-tax free death benefits – while the insured is living – to help pay for expenses related to a chronic illness. The funds can be used to help pay for adult daycare, assisted living, family care, nursing home care or virtually any expense, even those unrelated to the illness.
1Insured must be certified as chronically ill by a licensed physician and meet all eligibility requirements. 12

13. Benefits of Accelerated Access Solution
101(g)
No LTC license necessary: only Life / A&H
2-out-of-6 ADLs or severe cognitive impairment
Deemed to be permanent
Indemnity
No receipts, spend benefits on anything
Choose your total AAS Benefit Base
Minimum = greater of 50% of DB or $50,000
Maximum = lesser of 100% of DB or $1,500,000
Maximum Monthly Benefit = IRS Monthly Per Diem, with choice of 3 caps:
2% of AAS Benefit Base;
4% of AAS Benefit Base; or
AAS Benefit Base ÷ 12
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.
Regardless of which of the two triggers applies, the benefit will only be available if the impairment is deemed to be permanent.
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 AIG’s Indemnity version, you don’t need to provide an receipts or file any claims regarding your treatments. AIG 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 AIG begins sending the checks.
Then you have two decisions to make: your aggregate benefit and your monthly benefit.
Aggregate Benefit:
Your aggregate benefit must be at least $50,000, and cannot be less than half of your total Death Benefit. So, for a $100,000 death benefit, your Accelerated Access benefit must be at least $50,000. For a $500,000 policy, the Accelerated Access benefit must be at least $250,000.
Your aggregate benefit can also be no greater than your death benefit, and is subject to a maximum Accelerated Access benefit of $1,500,000. So, if your death benefit is $900,000, your maximum Accelerated Access Solution benefit is $900,000. If your death benefit is $1,800,000, your maximum aggregate Accelerated Access Solution benefit is limited to $1,500,000.
Monthly benefit: AIG 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 AIG 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! 13

14. 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 2014: Collect $9,900 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 ÷ 12 = $25,000 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, AIG 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. 14

15. Accelerated Access Solution Specifications
Issue Ages 18 – 70
AAS Rider must be added at policy issue
Cannot be added to an existing policy
Available through Table D!
Waiver of costs for the entire policy
If less than 100% is accelerated, 100% of policy costs are still waived while on claim
The issue ages for this rider are and it must be added at policy issue.
It is available up through Table D.
And AIG provides a very liberal Waiver of Costs. If you go on-claim under the Accelerated Access Solution rider, all policy and rider costs are waived. Keep in mind that you could have a $3,000,000 policy with a $1,500,000 Accelerated Access Solution benefit. If you go on-claim, even though you’re only accelerating the $1,500,000, the costs of the entire $3,000,000 policy, and any riders attached, ARE ALL WAIVED WHILE YOU REMAIN ELIGIBLE FOR BENEFITS! 15

16. Supplemental Application for Accelerated Access Solution
I’m often asked how this is underwritten. . . Are there any morbidity questions or health underwriting?
Well, there is a new 3 page supplemental application will be required to be completed when adding the Accelerated Access Solution to assess morbidity risk.
The first pop-up shows where they make their two primary choices: their monthly cap and their aggregate benefit.
In the second pop-up you can see specific medical and physical-capability questions they must answer.
Point out section 2, A and B.
Cover a few questions in section 3 just to give an example of the types of questions. 16

17. Life insurance for retirement planning with IUL

18. Problem: Supplemental Retirement Income in a Tax-Efficient Manner
William, age 45, is an accountant living with his young daughter, his wife and his mother-in-law Bridget who is in poor health. He has a solid retirement plan made up primarily of his 401(k) and IRA accounts, but is concerned that what he has saved in these accounts may not be enough to provide for all of the financial demands he may have in retirement.
William needs life insurance and he would like to supplement his death benefit protection with potential cash accumulation in a tax-efficient manner to help supplement his retirement income. This protection of additional income could help pay for his daughter’s college tuition or additional healthcare for Bridget if needed.

19. Solution: Index Universal Life Insurance
William speaks with his financial advisor and decides that with the death benefit protection plus upside potential of cash accumulation and tax-efficient access1 makes index Universal Life insurance a good fit for his needs.
He purchases an Elite Index II policy from American General. To maximize his cash accumulation potential, decides to pay premiums of $15,000 / year, which provides an initial death benefit of $320,0002 which is guaranteed for 20 years and will grow with the cash value of his policy.
Based on current federal income tax laws, policy owners should consult a qualified tax advisor.
Numbers rounded for illustrative purposes. Initial Level Death Benefit of $321,231

20. Upside Potential with Downside Protection
William knows that results will vary with market performance, and together he and his financial advisor look at two different hypothetical scenarios:
Hypothetical Rate of Return
Cash Value at Age 65
Income Stream for Age 66 to Age 85 6%
$500,0001
$38,0002 /year
(using standard loans)
7.5%
$600,0003
$54,0004 /year
(using Choice loans)
Illustrated for Male, preferred non-tobacco, paid to 65, increasing death benefit to level at age 65. Income for ages
1. Numbers rounded for illustrative purposes. Cash value at 6% over 20 years is $499,290
2. Numbers rounded for illustrative purposes. Income stream at 6% over 20 years is $38,719 / year
3. Numbers rounded for illustrative purposes. Cash value at 7.5% over 20 years is $593,713
4. Numbers rounded for illustrative purposes. Income stream at 7.5% over 20 years is $54,590/ year

21. Tax-Efficient Income Stream Option in Retirement
William’s mother-in-law Bridget lives with them for 10 years and eventually moves into a nursing home, and eventually passes away 5 years later. William continues to provide financial assistance during this time which reduces the amount of funds he is able to invest into his retirement portfolio.
William retires at age 65 at which time his daughter is in her freshman year at college. At this point, William decides to access the cash value in his life insurance policy to help pay her tuition expenses and maintain his own lifestyle in retirement.

22. Tax-Efficient Income Stream Option in Retirement
He decides to exercise his Choice loans option, which means his funds remain eligible for index or declared interest along with the remaining funds in his accounts. Unlike his qualified retirement plans, accessing accumulated cash value in his life insurance policy does not incur a tax penalty 1
The market has performed well, and at 7.5%, he is able to access $54,0002 a year from his policy income-tax-free, according to current tax laws.
1. Based on current federal income tax laws, policy owners should consult a qualified tax advisor.
2. Numbers rounded for illustrative purposes. Income stream at 7.5% over 20 years is $54,590/ year

23. Flexibility in your life insurance policy - upside potential and downside protection
IUL vs GUL

24. Why Index Universal Life Insurance?
Kevin, age 45, is a computer engineer and has two young sons with his wife, Christine.
He needs death benefit protection for his family while he is working, but is also interested in flexible features and potential cash value that he can use during his lifetime.
Kevin plans to retire at age 67 and also wants to be sure he has the resources available to build the future he has in mind – sending both of his sons to college, buying a vacation home and protecting for additional healthcare costs in the event of a chronic illness.

25. The Conversation Index Universal Life vs. Guarantee
Kevin speaks to his financial advisor asks to see the benefits of a similar premium payment in Index Universal Life policy (IUL) vs. Guaranteed Universal Life policy (GUL) in different scenarios.
He asks about what his upside growth potential would be in both policies – and with IUL, at two different rates of growth – 6%, and if the market performs well, 7.5%.
While the death benefit and cash values are guaranteed on GUL, the IUL can also offer a guarantee for a number of years as well as strong cash value potential.
Additionally, death benefit is guaranteed on GUL, while IUL only provides for a limited period of guarantees.
He also is interested in the Accelerated Access Solution, which would allow him to use a portion of his death benefit while he is living should he develop a chronic illness (when criteria is met).

26. IUL vs. GUL Index Universal Life Guaranteed Universal Life
$1M death benefit, with the option to accelerate 50% of his death benefit for chronic illness (capped at 4% per month)
Guaranteed to age 66
Guaranteed to age 100
Pay into the policy until age 67
Premium: 6% = $9,4001 /year*
7.5% = $7,6002 /year*
Premium: $9,8003 /year
Cash value at age 67: 6% = $240,0004
7.5% = $200,0005
Guaranteed cash
value at age 67 = $21,5006
*Premiums illustrated with the following assumptions - male, preferred non-tobacco class, Age 45, $1 million death benefit with 4% monthly Accelerated Access Solution benefit, solve to pay to age 67 and have $1,000 cash value at age 100.
1. Numbers rounded for illustrative purposes. IUL premium at 6% is $9,631/ year
2. Numbers rounded for illustrative purposes. IUL premium at 7.5% is $7,542.40/ year
3. Numbers rounded for illustrative purposes. GUL premium is $9,731 / year
4. Numbers rounded for illustrative purposes. IUL cash value at 6% over 20 years is $246,568
5. Numbers rounded for illustrative purposes. IUL cash value at 7.5% over 20 years is $200,619
6. Numbers rounded for illustrative purposes. GUL cash value at 20 years $21,517

27. Answer: Elite Index II
Kevin chooses the upside potential with protection of the Index Universal Life insurance.
He purchases an Elite Index II indexed universal life policy from American General, and opts to include the Accelerated Access Solution allows him to access income tax-free death benefits if diagnosed with a chronic illness.1,2
He chooses a $1M death benefit and decides to begin paying premiums at $7,6003/ year.
He knows that he can also heavily fund the policy whenever he chooses, to increase the cash value he accumulates.
1. Based on current federal income tax laws, policy owners should consult a qualified tax advisor.
2. Insured must be certified as chronically ill by a licensed healthcare provider and meet all eligibility requirements.
3. Numbers rounded for illustrative purposes. IUL premium at 7.5% is $7,542.40/ year

28. A Policy with Flexibility
Kevin enjoys fairly good growth in the market and accesses cash to help pay for the college education for his sons.
At age 75, Kevin has a stroke which leaves him requiring assistance and decides to exercise his Accelerated Access Solution, through which he is able to accelerate up to 50% of his death benefit.
This benefit helps them pay for modifications needed to their home due to his stroke without reducing their retirement portfolio substantially.

29. Questions
Policies issued by: American General Life Insurance Company (AGL), 2727-A Allen Parkway, Houston, Texas Policy Form Number 13717; Policy Form Number 13717N; Accelerated Access Solution (Chronic illness accelerated death benefit rider) form number ICC The underwriting risks, financial and contractual obligations and support functions associated with the products issued by AGL are its responsibility. Guarantees are subject to the claims-paying ability of the issuing insurance company. AGL does not solicit business in the state of New York. AGL is a member company of American International Group Inc., (AIG). AIG does not underwrite any policy described herein. Policies and riders not available in all states. These product specifications are not intended to be all-inclusive of product information. State variations may apply.
Please refer to the policy for complete details.
© All rights reserved

30. 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.
The S&P 500 (the “Index”) is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”) and has been licensed for use by [Licensee]. Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”). These trademarks have been licensed to SPDJI and sublicensed for certain purposes to [Licensee]. The [Product] is not sponsored, endorsed, sold or promoted by SPDJI, S&P, or their respective affiliates, and none of such parties make any representation regarding the advisability of paying premiums for the [Product(s)] nor do they have any liability for any errors, omissions, or interruptions of the Index.