American International Group, Inc. New · NYSE:AIG
American International Group, Inc. New — American International Group — Investor Presentation (2015)
26 slides from American International Group, Inc. New's investor presentation, 2015
Slide 1: Value+ IUL
Value+ IUL You asked for it – and we delivered. Strong, flexible life protection at a market-leading price -- plus Optionality! Presented by… Policies issued by The United States Life Insurance Company in the City of New York , a member company of AIG FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBL
Slide 2: Footnotes on Section 1035 exchanges and assumptions
1 Internal Revenue Code Section 1035 and associated rules are complex in nature. The policy owner may incur surrender charges from the previous policy and be subject to new sales and surrender charges and other limitations with the new policy. It is highly recommended that the policy owner consult a
Slide 3: Clients are looking for lower prices.
Clients are looking for lower prices. With market-leading pricing -- as much as 10 percent below most GUL policies -- Value+ IUL is well positioned to serve your clients. Its low-cost design, combined with the advantages of Optionality, will help you serve more clients and win more cases in all rate
Slide 4: Clients want the security of strong, dependable life protection.
Clients want the security of strong, dependable life protection. And Value+ IUL delivers. The death benefit can be guaranteed all the way to age 85, depending on the client’s age, underwriting and payment of required premiums. After the guarantee period, the policy can continue on a non-guaranteed b
Slide 5: Value+ IUL Competitive Premium
Value+ IUL Competitive Premium Male, PPNT, $1M Level DB, Carry/Guarantee to Age 105. 6% Illustrated Rate for IULs. UL: GUL: Guarantee to Age 105 IUL: Carry to Age 105 (6%) Carry to Age 105 AIG’s John John Protective Prudential Nationwide Lincoln Protective Value+ IUL Hancock Hancock Age (Carry to Cu
Slide 6: Value+ IUL Competitive Premium
Value+ IUL Competitive Premium Male, 45, PPNT, $1M Level DB, Carry/Guarantee to Age 105. 6% Illustrated Rate for IULs. UL: IUL: Carry to Age 105 GUL: Guarantee to Age 105 Carry to Age (6%) 105 AIG’s John John Protective Prudential Nationwide Lincoln Protective Value+ IUL Hancock Hancock Age (Carry t
Slide 7: FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
7 FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Slide 8: Key Terminology
Key Terminology Benchmark Premium: The Benchmark Premium is a level annual premium which is intended to carry your policy to or close to maturity on a current (non-guaranteed) assumption basis assuming 1) a 6% illustrated rate and 2) that premiums have been paid on time at the beginning of each poli
Slide 9: Value+ Cash Access
Value+ Cash Access If the policy is funded early (either through a single-pay premium or the transfer of a policy from another company or ), the client may withdraw funds above the cumulative benchmark premiums in years 3 through 14 with no surrender charges, to the extent that Accumulation Value is
Slide 10: Male 45 PNT, $100,000 external 1035 Exchange
Male 45 PNT, $100,000 external 1035 Exchange DB is $1,000,000, 6.86% Guarantee to Age 85 Carrying to Age 121. Benchmark Premium: $6,509 Year CSV1 with Unlocked Surrender Charges 1 $70,726 2 $79,993 3 $100,000 4 $102,508 5 $113,539 6 $129,638 7 $146,925 8 $166,391 9 $186,339 10 $207,774 11 $232,789 1
Slide 11: Value+ Cash Access
Value+ Cash Access If clients pay extra premium into their policy to achieve additional tax advantaged growth, they can use this unique liquidity option to withdraw excess premiums in policy year 20 with no decrease in their initial death benefit,1 if there is available cash surrender value in the p
Slide 12: Policyowner funds the policy above the Benchmark Premium
Assume the policyowner funds the policy at $2,000 above the Benchmark Premium of $6,955 for 20 years, then they withdraw the additional funds in year 20 and pay only Benchmark Premium in future years: The policy earns a 6% hypothetical crediting rate: Annual Premium Cumulative Premiums End of Policy
Slide 13: What happens if the Policyowner exercises the Cash Access from Excess Funding feature?
What happens if the Policyowner exercises the Cash Access from Excess Funding feature? No Additional With Additional Funding After Funding Withdrawal Death Benefit $750,000 $750,000 Cash Value Year 20 $148,266 $189,186 At 6.00% Hypothetical Crediting Rate Premiums Years 1-20 $6,995 $8,995 Premiums a
Slide 14: Value+ Cash Access
Value+ Cash Access If values in the policy exceed benchmark assumptions due to strong index performance, this one-of-a-kind liquidity option allows clients to withdraw the excess cash value, either in policy year 20 or at age 85 – with no decrease in the initial death benefit or length of death bene
Slide 15: Male 45 PNT, $500,000 DB
Male 45 PNT, $500,000 DB Assume the policyowner pays a premium of $3,395 which will guarantee the policy to age 81 at a 6% rate of return: If the policy actually earned 6.86% the results would be as follows: End of Year 20 At Age 85 Benchmark Cash Value $65,313 $157,905 Cash Surrender Value $73,277
Slide 16: Index Strategy Options
Index Strategy Options FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Slide 17: Current Rates
Current Rates Declared Interest Account Current Rate 2.25% Minimum Guarantee 2.00% Cap Rate Index Account Current Cap Rate 10.00% Illustrated Rate 6.86% Minimum Guarantee 0.25% Participation Rate Index Account Current Participation Rate 55% Illustrated Rate 7.25% Minimum Guarantee 0.25% Guaranteed A
Slide 18: S&P 500 Interest Crediting Strategy
S&P 500 Interest Crediting Strategy Account How It Works Potential Advantages Option Annual Point- Interest earned is based in part on Can provide attractive to-Point the annual change in the S&P 500 interest in years where Index Interest (excluding dividends) from one there is an annual point- Acco
Slide 19: Just Measuring The Difference
S&P 500 Interest Crediting Strategy Just Measuring The Difference Source: http://finance.yahoo.com Between Two Points In Time 19 FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Slide 20: S&P 500 Interest Crediting Strategy with a Cap
S&P 500 Interest Crediting Strategy with a Cap In this example, index strategy: • Provides the potential to be credited with up to 10.00% interest each strategy anniversary • Guarantees that the annual interest earned will never be less than 0.25% S&P 500 Index S&P 500 Annual Interest Credited Value
Slide 21: S&P 500 Interest Crediting Strategy with a Participation Rate
S&P 500 Interest Crediting Strategy with a Participation Rate Account How It Works Potential Advantages Option Annual Point- Interest earned is based on the one Can provide attractive to-Point year change in the S&P 500 Index interest in years where Index Interest from one strategy anniversary to th
Slide 22: S&P 500 Interest Crediting Strategy with a Participation Rate
S&P 500 Interest Crediting Strategy with a Participation Rate In this example, index strategy: • Provides the potential to be credited with an uncapped return with a participation rate of 55% each strategy anniversary S&P 500 Index S&P 500 Annual Apply the Interest Credited Value Percent Change Part
Slide 23: WinFlex
WinFlex FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Slide 24: Marketing Materials aig.com/ValueIUL
Marketing Materials aig.com/ValueIUL FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Slide 25: Important Information
Important Information Policies issued by American General Life Insurance Company (AGL), Policy Form Numbers ICC14-14779, 14779; Rider Form Numbers 13600, 82012, 82410, 88390, 13601, 07620, 14119, 82001, 82001-5 Rev 0914 except in New York, where issued by The United States Life Insurance Company in
Slide 26: Index Disclosure for the S&P 500
Index Disclosure for the S&P 500 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 American General Life Insurance Company (AGL). Standard & Poor’s®, S&P®, and S&P 500® are registered trademarks of Standard & Poor’s Fina
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