1. 1 For agent use only. Not for dissemination to the public. Annuities 101 For Agent Use Only — Not for Dissemination to the Public.

2. 2 For agent use only. Not for dissemination to the public. Agenda  What is an annuity?  Types of annuities  How do I identify a prospect? NOT FDIC INSURED | MAY LOSE VALUE | NOT A DEPOSIT | NO BANK GUARANTEE | NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY

3. 3 For agent use only. Not for dissemination to the public. What is an Annuity? Annuity A contract between you and an insurance company, under which you make a lump-sum payment or series of payments. In return, the insurer agrees to make periodic payments to you beginning immediately or at some future date.

4. 4 For agent use only. Not for dissemination to the public. The “Who” and “What” ■Contract between ●Insurance company ●Contract owner (your client) ■Insurance company ●Accepts the client’s premium ●Issues an annuity contract to the contract owner ●Credits interest per the terms of contract ■Until the contract owner ●Surrenders the contract or dies ●Withdraws all funds ●Converts into a stream of payments

5. 5 For agent use only. Not for dissemination to the public. Why purchase an annuity? ■Higher interest rate than other options ■Tax deferred accumulation of assets ■Pay no taxes until you withdraw the money ■Ability to create a guaranteed income stream

6. 6 For agent use only. Not for dissemination to the public. Types of Annuities ■Deferred ●Fixed  Traditional  Index ●Variable ■Immediate Income

7. 7 For agent use only. Not for dissemination to the public. Phases of a Deferred Annuity Accumulation Phase Deferred Annuity Payout Phase

8. 8 For agent use only. Not for dissemination to the public. Accumulation Phase Funds are paid into the contract by the owner Traditional Fixed: Pays declared interest rate Fixed Index: interest is based on performance of an index or indices Variable: owner selects sub- accounts, interest based on account performance. Deferred Annuity

9. 9 For agent use only. Not for dissemination to the public. Payout Phase Payments can be distributed over a period of time Payments can be distributed for annuitant’s lifetime Longer of Annuitant’s Life or Certain Period Payment can be based on lifetime benefits rider Deferred Annuity

10. 10 For agent use only. Not for dissemination to the public. Common Features: Traditional Fixed and Index  Minimum guaranteed interest rate  No contract fees or product charges (other than surrender charges for early withdrawal)  Maximum premium without company approval: $1,000,000.  Issue Ages 0 – 90  Minimum Guaranteed Withdrawal Value

11. 11 For agent use only. Not for dissemination to the public.  Single premium and periodic flex payment options  Fixed and indexed account choices  Declining withdrawal charges over 3 - 14 years, sometimes longer  Partial withdrawals (usually 10% per year) without charges  Market Value Adjustment  Death benefits that waive all charges Common Features: Traditional Fixed and Index (cont’d)

12. 12 For agent use only. Not for dissemination to the public. Safety Tax Deferral Yield Liquidity Estate Planning Fixed Annuities Have… S T Y L E STYLESTYLE

13. 13 For agent use only. Not for dissemination to the public. Immediate Income Annuity Payments don’t fluctuate, regardless of market changes. Payments based on Age and Interest Rate at the time of issue. Guaranteed for a certain period of time or for the life- time of the owner. Converts a lump-sum into guaranteed stream of income payments

14. 14 For agent use only. Not for dissemination to the public. Identifying Prospects CHARACTERISTICS OF CLIENT Traditional Fixed Annuity Prospect Fixed Index Annuity Prospect Income Annuity Prospect Savings in CDs, MoneyMarkets, EE Series Bonds or Traditional Fixed Annuities Prefers to avoid taxes on interest growth in the near term. Is concerned about market risk Wants protection of their principal Seeks guarantees, not huge risk takers, want to know exactly how their money will grow and what they can access when they take withdrawals. Wants to try to improve on traditional fixed rates, looking to have a higher return and more opportunity for growth. Needs guaranteed income stream and has assets to convert.

15. 15 For agent use only. Not for dissemination to the public. Uses Of Annuities  Accumulate $s  Create supplemental income  Long term care expenses  Estate planning  Tax deferred CD alternative  Emphasize the insurance features of annuities: death benefit lifetime income options

16. 16 For agent use only. Not for dissemination to the public. ■64 year old widower ■No market experience ■Looking for safe vehicle to place funds received from deceased wife’s life insurance ■Wants these funds for his children ■Doesn’t want a long-term commitment ■Accustomed to CDs Do You Recognize This Client? Solution: Traditional Deferred Annuity

17. 17 For agent use only. Not for dissemination to the public. ■68 year old woman, retired ■Moderate investment portfolio with dominant amount of equity investments ■Not in need of immediate income ■Looking for diversification ■Wants principal protection Do You Recognize This Client? Solution: Index Annuity

18. 18 For agent use only. Not for dissemination to the public. Do You Recognize This Client? ■70 year old husband and his 68 year old wife, retired ■Current life insurance owner ■Accumulated Assets ■Need more Income Solution: Income Annuity

19. 19 For agent use only. Not for dissemination to the public. How to Start the Annuity Conversation ■Beneficiary reviews ■Prospecting letter ■Client Appreciation events

20. 20 For agent use only. Not for dissemination to the public. Fixed Annuity Products Traditional Fixed Annuities:  AG HorizonPlus (bonus)  AG HorizonMYG SM (bonus)  AG HorizonSelect ®  AG HorizonSecure  AG HorizonFlex ® (bonus) Fixed Index Annuities:  AG VisionMaximizer ® (bonus)  AG VisionAdvantage ®  AG HorizonIndex ® (bonus)  AG Global Index SM Annuity Series Income or Immediate Annuities:  AG Platinum Income Annuity ®

21. 21 For agent use only. Not for dissemination to the public. Q & A Thank You ! American General Annuity Marketing 888.438.6933, option 3

22. 22 For agent use only. Not for dissemination to the public. Disclaimers Annuities issued by: American General Life Insurance Company (AGL) 2727-A Allen Parkway, Houston, Texas 77019 and The United States Life Insurance Company in the City of New York (USL), New York, New York. AG Horizon Plus Annuity Form Number 040362, AG HorizonFlex Contract Number 04371, 04371N (New York), AG HorizonSecure Contract Number 05376, AG HorizonSelect Contract Number 05377, AG Global Bonus Index Contract Number 07109, AG Global 6 and Global 8 Index Contract Number 07371 or 07371N (New York), AG Vision Advantage Contract Number 06401, AG VisionMaximizer Contract Number 05490, AG HorizonIndex 04367.Extended Care Rider Form Number (if applicable) 04049, 03049, 03049N (New York). The underwriting risks, financial and contractual obligations and support functions associated with products issued by AGL and USL are the insurers own responsibility. AGL does not solicit business in the state of New York. Annuities and riders are not available in all states. State variations may apply contracts forms and applications and riders not available in all states. The information presented is general industry information and does not specifically describe any of our products; it is meant to be purely educational. American General Life Companies, www.americangeneral.com, is the marketing name for the insurance companies and affiliates comprising the domestic life operations of American International Group, Inc., including AGL and USL.www.americangeneral.com Withdrawals may be subject to Federal and/or State Income taxes. A 10% Federal penalty tax may apply to the taxable portion if withdrawals or surrender are made before age 50 ½. Annuity owners should contact a tax advisor regarding their specific situation. 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. © 2009 All rights reserved.