Index universal life insurance offers flexible protection, potential cash value growth
HOUSTON, May 13, 2016 – American International Group (NYSE: AIG) today announced a streamlined portfolio of index universal life (IUL) insurance products along with new educational resources for financial professionals and their clients.
The two new IUL policies, Max Accumulator+ and Value+ Protector, both issued by American General Life Insurance Company (AGL), offer flexible death benefit protection, the potential to grow cash value with guaranteed floors to protect against loss in down markets, and multiple customization options to meet evolving individual and small-business needs.
“We’ve enhanced our IUL insurance product portfolio and made other strategic improvements to better serve financial professionals and their clients,” said John Deremo, Chief Distribution Officer, Life Insurance, AIG Financial Distributors. “Our streamlined IUL portfolio is designed to provide protection, long-term wealth accumulation, and the opportunity for future distributions that can be tax-free when properly structured, based on current tax law.”
The Max Accumulator+ solution, which incorporates a unique combination of cash value enhancement features and riders not currently available in any other single policy, is optimized for clients who are seeking accumulation and income potential. The Value+ Protector product, which is designed as an economical alternative to a guaranteed universal life (GUL) insurance policy, is focused on guaranteed protection while also offering the potential to grow cash value.
Key attributes of the Max Accumulator+ IUL insurance policy include:
- the potential for long-term cash value accumulation, including through possible interest from index interest accounts and a guaranteed crediting bonus available via account value enhancement (in policy year six and later),
- a volatility stability strategy tied to a hybrid index that’s currently exclusive to AGL and that seeks more stable returns by dynamically adjusting exposure among equities, fixed income and cash,
- access to cash value through multiple options to optimize income distribution,
- an available Income for Life rider, an innovative feature that offers guaranteed lifetime income with optional annual adjustments for cost of living increases, and
- security for beneficiaries, with a tax-free, lump-sum death benefit payment or the option to select a guaranteed income stream for them that will grow at a fixed interest rate.
The launch of Max Accumulator+ is being supported by the debut of Life To The Max (www.aig.com/LifeToTheMax), an interactive online resource for use by financial professionals during client meetings.
The site, which is accessible to consumers as well, with no user ID or password required, is designed to educate users about potential challenges to a successful retirement, the role that IUL products can play in helping overcome the challenges, and key features of the Max Accumulator+ solution with illustrative scenarios.
Highlights of Value+ Protector IUL insurance include:
- death benefit protection with extended guarantees (to age 121) at market-leading rates,
- premiums that may be up to 10 percent lower than for GUL insurance,
- a built-in feature designed to help increase the death benefit at no extra cost,
- an available longevity rider (the Lifestyle Income Solution®), offering the potential for the policy holder to receive, at age 85 or beyond, guaranteed income that may be used for any purpose, and
- three available index interest accounts, including an exclusive volatility control index.
Both the Max Accumulator+ policy and the Value+ Protector insurance product are available with a newly enhanced living benefit rider that’s now offered with some other policies available through AGL: the Accelerated Access Solution®. The optional rider offers the potential for the policy holder to accelerate a portion of the life insurance contract’s death benefit when diagnosed with a chronic illness and when the conditions of the rider have been met – even if the chronic illness is not expected to be permanent.
Additionally, both Max Accumulator+ and Value+ Protector offer an available Select Income Rider, which gives the policy holder the irrevocable right to convert all or a portion of the life insurance death benefit to installments for the beneficiaries. This feature, which decreases policy premiums, may also increase cash value in the policy.
For more information on the streamlined IUL product portfolio and additional educational resources available from AIG, visit www.RetireStronger.com.
Policies issued by American General Life Insurance Company (AGL), Policy Form Numbers 15646, ICC15-15646, 16760, ICC16-16760; Rider Form Numbers 07620, 13600, 13601, ICC13-13601, 14002, ICC14-14002, 14306, 15271, ICC15-15271, 15272, ICC15-15272, 15273, ICC15-15273, 15274, ICC15-15274, 15600, ICC15-15600, 15972, 15992, ICC15-15992, 15994, ICC15-15994, 15996, 15997, ICC15-15997, 16110, ICC16-16110, 82012, 82410 and 88390. AGL is responsible for financial obligations of insurance products and is a member of American International Group, Inc. (AIG). Guarantees are backed by the claims-paying ability of AGL. AGL does not solicit business in the state of New York. Products may not be available in all states and product features may vary by state. There may be a charge for each rider selected. See the rider for details regarding the benefit descriptions, limitations and exclusions. Riders are not available in all states. Please consult your financial professional or review the policy and outline of coverage for your state.
This information is general in nature and may be subject to change. The Company, its financial professionals and other representatives are not authorized to give legal, tax or accounting advice. 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 situation, consult your professional attorney, tax advisor or accountant.
American International Group, Inc. (AIG) is a leading global insurance organization. Founded in 1919, today we provide a wide range of property casualty insurance, life insurance, retirement products, mortgage insurance and other financial services to customers in more than 100 countries and jurisdictions. Our diverse offerings include products and services that help businesses and individuals protect their assets, manage risks and provide for retirement security. AIG common stock is listed on the New York Stock Exchange and the Tokyo Stock Exchange.
Additional information about AIG can be found at www.aig.com and www.aig.com/strategyupdate | YouTube: www.youtube.com/aig | Twitter: @AIGinsurance | LinkedIn: www.linkedin.com/company/aig. These references with additional information about AIG have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release.
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 www.aig.com. 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.