Asset Protector with Secure Lifetime GUL 3 - PowerPoint Presentation

Asset Protector with Secure Lifetime GUL 3Life Insurance You Don’t Have to Die to Use Policies issued by American General Life Insurance Company (AGL), Houston, TX, and The United States Life Insurance Company in the City of New York (US Life), members of American International Group, Inc. (AIG)

Important InformationThis information is general in nature, may be subject to change, and does not constitute legal, tax or accounting advice from any company, its employees, financial professionals or other representatives. Applicable laws and regulations are complex and subject to change. Any tax statements in this material are not intended to suggest the avoidance of U.S. federal, state or local tax penalties. For advice concerning your individual circumstances, consult a professional attorney, tax advisor or accountant.

I’d like to describe how American General Life is revolutionizingthe way life insurance is bought and sold By showing how you can turn illiquid death benefitsinto a liquid pool of money your clients can use to protect their portfolio assets from the costs of severe illness and the risk of outliving their assets So they can achieve a higher sense of financial security during their retirement. Agenda

One of Three Things Will Likely Happen

Financial Life Spectrum

Financial Life Spectrum

Improved Features & Pricing Even in this low interest rate environment AIG remains committed to the Guaranteed Universal Life (GUL) market and continues to offer competitive premiums, targets and guarantees especially when guaranteeing to ages between 100 and 110 . Its greatest premium strength is in continuous-pay and 10-pay scenarios performing best for issue ages 55 and older . Return of Premium (ROP) enhancements – 2 ROP opportunities (via the Enhanced Surrender Value rider) are automatically included in the policy

Secure Lifetime GUL 3 Guaranteed Premiums and Death Benefits Guaranteed Cash Value 50% ROP at Policy Year 20 100% ROP at Policy Year 25 100% ROP at Age 85

Secure Lifetime GUL 3 Face$500,002 guaranteed to 105 Annual Premium $15,198 Guaranteed Cash at 85 3 $62,146 50% Withdrawal at 85: $56,284 Face $1M, guaranteed to 105 Annual Premium 2 $21,399 Guaranteed Cash at 85 $112,569 Not an actual case. Presented for illustrative purposes only. Quote dated 12/07/2018 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. Guarantee Period Male, age 65, PNT, guaranteed to 105 1 Flexibility & Choice Unique Partial Withdrawal Capability Allows You To Access Cash and Preserve Death Benefit Guarantee

Guaranteed Return of Premium (ROP)Enhanced Surrender Value Rider 50 M PPNT $1M DB Level Pay to Age 105 Quote dated 12/13/2018

Quotation Example

Financial Life Spectrum

Financial Life Spectrum

Accelerated Access Solution 101(g) No LTC license necessary 2-out-of-6 ADLs; or Severe Cognitive Impairment No Permanency Requirement 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 Maximum UW classification is Table D. Not available with a flat extra.

Monthly Payout Options 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 IRS caps the maximum daily rate each year. The 2019 maximum is $370/day or $11,254/month. Subsequent years may be higher. *Maximum monthly benefits limited to IRS per diem in effect at time of claim

Benefits of AAS 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 2019: Collect $11,254 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

Financial Life Spectrum

Financial Life Spectrum

Think about what may contribute to the possibility of outliving your retirement income. Do any of these issues concern your clients? Debt Social Security Uncertainty Historically Low Interest Rates Health Care Expenses Stock Market Corrections Didn’t Save Enough Rising Income Tax Rates Political Uncertainty

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. 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

100% ROP at Age 85 Premiums Returned! Hypothetical information for illustrative purposes only. 2.4x more! Quote dated 12/17/2018

American General Life is… Revolutionizing the way YOU sell life insurance! “Telling The Story”

$ Reduced Social Security Income Income Replacement Kids to College Mortgage Payoff Health Care Costs Financial Risks 3 big risks get smaller over time. 3 other big risks get larger over time. 20-40 Years Prior to Retirement Retirement Years $ Age 65 – 70 Risk Protection Spectrum

The Big 3 Life Insurance provides protection for: Income Replacement Mortgage Payoff College Funding Reduced Social Security Income when one spouse dies Asset Protector’s Lifestyle Income Solution provides protection for: The multitude of financial risks: Market corrections and poor investment performance Living longer than expected / didn’t save enough Reduced Social Security Income when one spouse dies Health care costs (other than Chronic Illness) Unexpected expenses (roof, furnace, A/C, auto repairs, etc.) Financial help for children and grandchildren And so much more! Asset Protector’s Accelerated Access Solution provides protection for: Health Care Costs from Chronic Illness

Change the way you sell life insurance: Turn your Term Life Insurance Sales Into Permanent UL Sales!

Sell The Value : Clients are Protected Whether They:

Summary The level of liquidity created by the additional Asset Protector premium can’t be created any other way . If you’ve made the decision to buy permanent UL, about the only reason you wouldn’t buy Asset Protector is because you simply can’t afford it. If you can afford it , what else can you do with the money to generate this kind of liquidity and value?

Summary When clients – especially premium payers – realize that they can spend their entire Death Benefit while they’re still alive. . . They’ll never want to own life insurance any other way! Asset Protector provides an unmatched level of financial security, especially during retirement, whether you:

Asset Protector: It Really IS Worth It !

American General Life is revolutionizing why people buy life insurance, and how it’s sold. Become a part of the next generation of life insurance!

Bring On Tomorrow!

Important Consumer Disclosures Regarding Accelerated Benefit Riders An Accelerated Death Benefit Rider (ABR) is not a replacement for Long Term Care Insurance (LTCI). It is a life insurance benefit that gives you the option to accelerate some of the death benefit in the event the insured meets the criteria for a qualifying event described in the policy. The rider does not provide long-term care insurance subject to California insurance law, is not a California Partnership for Long-Term Care program policy. The policy is not a Medicare supplement. ABRs and LTCI provide different types of benefits. An ABR allows the insured to access a portion of the life insurance policy’s death benefit while living. ABR payments are unrestricted and may be used for any purpose. LTCI provides reimbursement for necessary care received due to the inability to perform activities of daily living or cognitive impairment. LTCI coverage may include reimbursement for the cost of a nursing home, assisted living, home health care, homemaker services, adult day care, hospice services or respite care for the primary caretaker and the benefits may be conditioned on certain requirements or meeting an elimination period or limited by type of service, the number of days or a maximum dollar limit. Some ABRs and all LTCI are conditioned upon the insured not being able to perform two or more of the activities of daily living or being cognitively impaired. This ABR pays proceeds that are intended to qualify for favorable tax treatment under section 101(g) of the Internal Revenue Code. The federal, state, or local tax consequences resulting from payment of an ABR will depend on the specific facts and circumstances, and consequently advice and guidance should be obtained from a personal tax advisor prior to the receipt of any payments. ABR payments may affect eligibility for, or amounts of, Medicaid or other benefits provided by federal, state, or local government. Death benefits and policy values, such as cash values, premium payments and cost of insurance charges if applicable, will be reduced if an ABR payment is made. ABR payments may be limited by the contract or by outstanding policy loans. FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR PUBLIC DISTRIBUTION

Important Information Policies issued by: American General Life Insurance Company (AGL), Policy Form Number 13460, ICC13-13460, 15442, ICC15-15442 Rider Form Number 13972, 13600, ICC13-13600, 13600-5, 15900, ICC15-15990, 15972. Issuing company AGL is responsible for financial obligations of insurance products and is a member of American International Group, Inc. (AIG). AGL does not solicit business in the state of New York. 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. There may be a charge for each rider selected. See the rider for details regarding the benefit descriptions, limitations and exclusions. Guarantees are backed by the claims-paying ability of the issuing insurance company. AGLC107915REV1218 ©2018. All rights reserved. FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR PUBLIC DISTRIBUTION