AG Extend IUL & How To Illustrate PowerPoint

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Transcript AG Extend IUL & How To Illustrate PowerPoint

The AG Extend IUL

& How To Illustrate

Presented by …

FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC

Agenda



Term Conversion Rules



AG Extend IUL Policy Features



Policy Specifications



Current Rates



How To Correctly Illustrate

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Term Conversion Rules

Conversion

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Term Conversion Rules

Convertible to earlier of age 70 or end of level term period

Years 1 - 2 Years 1 - 5 AG ROP Select-a-Term® AG Secure Lifetime GUL® AG Choice Index GUL ® Elite UL® Elite Index® Elite Global Plus® Years 6+ New AG Extend IUL SM*

*Elite Transtition UL SM in NY & VT until AG Extend IUL is approved

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What Is AG Extend IUL

It is the indexed universal life product designed for term conversions beyond the fifth anniversary of the term coverage.

FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC

Key Features

 Flexible premium universal life insurance product for issue only as a result of a term conversion after the fifth term policy year.  Ability to allocate premiums among Declared Interest Account, Cap Rate Index Account and Participation Rate Index Account.  Interest crediting based in part on the one year point-to-point growth in the S&P 500 ® when either the Cap Rate Index Account or the Participation Rate Index Account is selected.

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Key Features

 Strong death benefit protection.  High internal rate of return on the death benefit.  20-year no-lapse guarantee.

(15 years for ages 61-70, and 5 years for ages 71-80)

 Provides a no-lapse guarantee rider to age 100.  Issued in all states by American General Life Insurance Company (policy form # 12436, ICC12-12436) except: NY and VT.

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Policy Specifications

 Issue Ages 20-80  Minimum Death Benefit $50,000  Death Benefit Options  Option 1 (Level)  Option 2 (Increasing)

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Policy Charges

 Percent of Premium Load – current charge of 8 percent of all premiums (maximum 10 percent)  Monthly Administration Fee – current charge of $10 (maximum charge of $12)  Five-year monthly expense charge per $1,000 of base coverage  19-Year surrender charge schedule

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Policy Loans

3 Policy owners should consult a tax advisor to determine if these transactions trigger a taxable event.

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Current Rates

Rates current as of 03/07/2013

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Available Rider

 Monthly Guarantee Premium (MGP) to Age 100  Accidental Death Benefit Rider (ADB)  Children’s Insurance Benefit Rider (CIB)  Extension of Maturity Date Rider  Spouse/Other Insured Rider  Terminal Illness Rider

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Illustrating in WinFlex

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Case #1

 Male 45 Preferred Non-Tobacco  $1,000,000 Guaranteed Death Benefit  Paying Annually  What Premium Should The Client Pay?

FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC

WinFlex Insured/Solve For FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC

WinFlex Riders FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC

WinFlex FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC

Case #1 Cont…

 What if we want to shorten the guarantee period?

 Let’s only guarantee the product to life expectancy say age 85.

 We simply stop paying premium at that age and the guarantee stops.

 Let’s take a look…

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WinFlex Solve For FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC

WinFlex FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC

Case #2

 Male 50 Table H  $1,000,000 Guaranteed Death Benefit  Paying Annually  What Premium Should The Client Pay?

FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC

WinFlex Insured/Solve For FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC

WinFlex Riders FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC

WinFlex FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC

WinFlex Solve For FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC

WinFlex FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC

WinFlex Policy Options FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC

WinFlex FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC

Questions

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Policies issued by:

American General Life Insurance Company (AGL)

2727-A Allen Parkway, Houston, TX 77019

The United States Life Insurance Company in the City of New York (US Life)

One World Financial Center, 200 Liberty Street, New York, NY 10281 The underwriting risks, financial and contractual obligations and support functions associated with the products issued by AGL or US Life are the issuing insurer’s responsibility. Guarantees are subject to the claims-paying ability of the issuing insurance company. US Life is authorized to conduct insurance business in New York. Policies and riders not available in all states. American General Life Companies, www.americangeneral.com, is the marketing name for a group of affiliated domestic life insurers, including AGL and US Life.

FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC