Elite Global Plus II Fixed index interest universal life insurance

Transcription

1 Elite Global Plus II Fixed index interest universal life insurance Product Guide Protection plus growth opportunity with a global index option Policies issued by: American General Life Insurance Company The United States Life Insurance Company in the City of New York

2 No other product is as effective as life insurance when it comes to protecting your loved ones. But did you know that life insurance is also one of the most versatile financial products available? Life insurance can be used to address a wide range of family and business needs, including: Replacing income lost due to the death of a family wage earner Providing liquidity at the appropriate time to pay estate settlement costs. Transferring wealth free of income taxes to benefit your heirs in succeeding generations 1 Funding charitable giving Funding buy-sell arrangements to maintain business continuity Funding non-qualified executive bonus plans and deferred compensation plans Supplementing retirement income Selecting the right policy The market offers thousands of life insurance products that will help take care of your beneficiaries when you die. The key factors that distinguish one policy from another include: The policy s guarantees and benefits The policy s underlying values and charges The policy s interest crediting mechanism(s) The level of flexibility to meet your specific needs The financial strength of the life insurance company, which determines its ability to meet future commitments

3 The index advantage Fixed index universal life ( IUL ) insurance uses an index interest crediting methodology based in part on the performance of one or more external financial indices such as the S&P Interest is calculated based on changes in the index (without dividends) and credited at the end of the index interest crediting term. Because returns are based in part on a specific index s performance, IUL insurance may offer a greater potential for cash value growth. However, if the external index performs poorly, the index interest credited to your policy may be less than interest credited under life insurance policies that provide declared interest rates, and in some or all years, you might receive no index interest. Important considerations Fixed index universal life insurance is not an investment A universal life insurance policy should be purchased only if you have a long-term need for permanent life coverage While index interest credited to the policy is based in part on the performance of the external index or indices, the policy does not directly participate in the index or in any stock or equity investment. You are not buying shares of any index or stock. The actual amount of index interest, if any, credited to a fixed index universal life insurance policy will vary based on the performance of those indices and on the Participation Rate and Cap Rate. The Participation Rate applies to the 5-year index account only. It is the percentage of index interest growth (if any) the policy owner receives as actual index interest credited to the policy in the year in which crediting occurs. The Cap Rate is the maximum point-topoint index interest growth (if any) you can receive as actual index interest credited to the policy. The insurance company sets, and may change, the Participation Rate and Cap Rate based on reasons such as: the interest rate environment the cost of options other economic factors There may be substantial variation in the amount of index interest credited over the life of the policy, reflecting the underlying changes in the measured index or indices as well as the participation rate and the cap rate. Illustrations of a fixed index universal life insurance policy are simply examples demonstrating how the policy may work, and assume possible values based on many variables that are not guaranteed It is important to view illustrations of a fixed index universal life insurance policy over a broad range of scenarios before you purchase the policy to ensure you are making an informed decision To know if a fixed index universal life insurance policy is meeting your needs, you need to review the policy s values at least annually The market indices do not reflect the dividends paid on the underlying stocks Index life insurance offers a fresh approach for today s consumers Recent research* tells us that today s families have specific needs when it comes to their future, especially in retirement. Index universal life insurance ( IUL ) provides specific benefits that address those needs. *From the 2011 Retirement Re-Set Study by American General Life, as part of SunAmerica Financial Group, with Harris Interactive and Age Wave. Financial need: Provide income to your family if you die or become disabled Different ways to protect assets Diversify your investments Guaranteed to not lose value Insurance does that 4 The objective of all life insurance is to provide cash at death, which can generate income 4 The cash values within IUL are protected against the downside of the equity market 4 By tying the IUL cash value to an index, such as the S&P 500, diversification is automatic 4 IUL has a built-in guaranteed minimum rate, so that it cannot lose money 2

4 Elite Global Plus II Index strategies for growth and opportunity 5-year Index Interest Account option Elite Global Plus II provides death benefit protection and an opportunity to realize growth in cash value accumulation based in part on the performance of as many as three global indices the S&P 500, the EURO STOXX 50 Index 3 (Western Europe), and the Hang Seng Index 4 (Hong Kong). Elite Global Plus II features a 5-year Index Interest Account option which uses these three indices and weights the two best-performing when calculating index interest to be credited. Important Note: This 5-year option featuring the EURO STOXX 50 and Hang Seng indices is not available in New York. 5 1-year Index Interest Account with a Cap Rate You may also choose the 1-year Index Interest Account with a Cap Rate. Its formula is based on the 1-year point-to-point growth of the S&P 500, subject to a cap rate. It provides an annual guaranteed interest rate of 0.25 percent (1.0% for New York), regardless of index performance. The Cap Rate is the maximum point-to-point index interest growth (if any) you can receive as actual index interest credited to the policy. For both the 5-year and 1-year account options, your indexed interest percentage will never be less than zero percent. For additional security, you also have the option to allocate all or a portion of each premium to a declared interest account. The interest rate may be subject to change periodically, but will ever be less than 2.00 percent. 3

5 Policy highlights Death benefit protection Two death benefit options (level and increasing) Flexible allocation choices declared interest and/or two index interest options Tracking multiple global indices in index interest accounts provides diversification: S&P 500 EURO STOXX 50 5 Hang Seng Index 5 Index interest based on the best-performing two out of three indices where an overweighting formula may produce higher crediting rates than either an equal weighting or a single index approach (5-year account option only) 5 Index interest credited based on either 5-year period point-to-point (not available in New York) or 1-year period point-to-point period subject to a cap rate Overloan Protection Rider ensures the policy won t lapse because of large outstanding loan balance Ability to allocate premiums and policy values to multiple interest crediting options allows efficient repositioning of existing assets Policy s high early cash values allow for business applications or use for collateral purposes Safety and security Purchasing life insurance typically involves a long term financial commitment. Many potential customers are concerned about two specific issues: How do I know the policy will be in force when I need it? Will there be some value available to me in case of financial emergency after I have paid premiums for many years? Elite Global Plus II is designed with a Monthly Guarantee Premium feature which addresses these specific concerns. Monthly Guarantee Premiums Two Monthly Guarantee Premiums are identified on the policy Schedule pages for Elite Global Plus II. The Monthly Guarantee Premium for First Year establishes a premium that if paid timely guarantees the policy will not lapse in the first policy year. The Monthly Guarantee Premium for 10 years establishes a premium that if paid timely guarantees the policy will not lapse up to 10 years from the issue date (5 years for issue ages 71 and over). 4

6 How an index account is created As the policy owner, you have the ability to select from among three interest accounts and determine the amount to be allocated to these accounts. The policy s net premium (after deduction of the premium load) is allocated to the 1-Year Index Interest Account, 5-Year Index Interest Account, 5 and/or declared interest account based on the premium allocation percentage you specify. All net premiums received after the beginning of the policy year to be allocated to one or both of the index interest accounts will be temporarily deposited into the interim account until the next monthly allocation day. The interim account will be credited with a minimum annual interest rate of 2.00 percent. On the next monthly allocation day, the balance of the interim account, combined with the net premium received (allocated to one or both of the index interest accounts), will be deposited into one or both of the index interest accounts in the manner the policy owner has elected. The policy allows allocation of net premiums (as directed by the policy owner) to a series of index interest accounts. Each of these accounts renews based on the account elected (i.e. 1-year or 5-year). 5 At the end of each term the values will roll into a new index interest account and start a new index period (1-year or 5-year), 5 unless the policy owner decides on a different allocation. The policy s accumulation value equals the sum of the amounts in each account. Changing interest crediting At the end of each index account period, the policy owner may change the allocation among the 1-Year Index Account, the 5-Year Index Account, 5 and/or the Declared Interest Account. Once the allocation election is made, the amount allocated to the index account must remain in that index account until the end of the account period (1-year or 5-year). If the policy owner does not elect to change the allocation at the end of the index account period, the account will be credited with interest and rolled into a new index account of the same duration. Policy values allocated to the declared interest account may be reallocated to either index account at any time and an index account will be established according to the rider terms. 5

7 Premium received Minus premium expense charge Index Interest Account Monthly, over a 1- or 5-year period 5 Minus monthly administration fee, monthly expense charge, cost of insurance, and withdrawals 6 Plus guaranteed interest Accumulation value Credit index interest, if any, at end of 1-year and/or 5-year term 5 (based on accounts selected) Net premiums Total policy accumulation Declared Interest Account Monthly Minus monthly administration fee, monthly expense charge, cost of insurance, and withdrawals Plus current interest Accumulation value 6

8 1-Year Point-to-Point Fixed Index Interest Account with Index Cap The 1-Year Index Account with Index Cap is an annual point-to-point fixed index interest account with an index cap. The company may declare a new index cap that will apply to each new 1-Year Index Account and which may be higher or lower than the initial index cap. 6 Index interest will vary from year to year and will depend on the cap rate and changes in the S&P 500. Guaranteed interest rate equivalent to 0.25 percent annually (1.0% in New York) will be credited to each index account at the end of each month. The index interest crediting rate is calculated at the end of each account year by taking the lesser of the applicable cap rate for the index account or the percentage increase in the S&P 500, excluding dividends, then subtracting the annual guaranteed interest rate of 0.25 percent. The index crediting rate cannot be less than zero. 7

9 The Index Interest Account with Index Cap is a rider attached to the base policy when the policy is issued. The cap rate is the maximum percentage amount used to set the index interest percentage for each index account. If the actual annual growth in the S&P 500, excluding dividends, exceeds the cap rate, the cap rate is used to calculate the index interest percentage There will be a unique cap rate for each index account The cap rate determined at the beginning of each index account period (12 months) is applicable for that year s index interest only The cap rate declared at the beginning of each index account will be guaranteed for the entire account period A guaranteed monthly interest rate equivalent to 0.25 percent annually (1.0% in New York) will be credited to each Cap Rate Index Account at the end of each month The index interest percentage is calculated at the end of each index account by subtracting the 0.25 percent (1.0% in New York) guaranteed interest rate from any percentage increase in the S&P 500 (excluding dividends), but not exceeding the cap rate The index interest percentage can never be less than zero 9 Here are three hypothetical examples to help you understand how index interest is credited to the policy in Cap Rate Index Accounts. Each example assumes the cap rate is percent, and the guaranteed interest rate is 0.25 percent. The cap rate is subject to change on each index account as it is established. (Cap rates shown at right are hypothetical; Cap rates may vary.) Example 1 Anniversary-to-anniversary hypothetical growth in the S&P 500 is percent, which is greater than the percent assumed cap rate. Guaranteed interest credited during the year 0.25% Index interest credited at the end of the year (Difference between percent cap rate and 0.25 percent guaranteed interest credited during the index account year) 9.75% Total Interest crediting rate during the index account year (less policy charges, loans, withdrawals) 10.00% Example 2 Anniversary-to-anniversary hypothetical growth in the S&P 500 is 9.00 percent, which is less than the percent assumed cap rate. and greater than the guaranteed interest rate Guaranteed interest credited during the year 0.25% Index interest crediting rate at the end of the year (Difference between 9.00 percent growth and 0.25 percent guaranteed interest credited during the index account year) 8.75% Total Interest crediting rate during the index account year (less policy charges, loans, withdrawals) 9.00% Example 3 Anniversary-to-anniversary hypothetical growth in the S&P 500 is percent, which is less than the guaranteed interest rate. Guaranteed interest credited during the year 0.25% No index interest due 0.00% Total Interest crediting rate during the index account year (less policy charges, loans, withdrawals) 0.25% 8

10 5-Year Point-to-Point Multiple Fixed Index Interest Account with Participation Rate 5 The 5-Year Index Account with Participation Rate is a 5-year point-topoint fixed index interest account with a participation rate. The company may declare a new participation rate that will apply to each new 5-Year Index Account and which may be higher or lower than the initial participation rate. 7 This feature is automatically added as a rider at policy issue. The index interest calculation will depend in part on the participation rate and changes in the S&P 500, the EURO STOXX 50 Index, and the Hang Seng Index. At the end of each 5-year index account, the closing value of each index is compared with the closing value at the beginning of that index account. Index interest, if any, is calculated as percent of the return of the bestperforming index plus percent of the return of the second-best performing index, multiplied by the Participation Rate and reduced by the guaranteed interest rate factor. The poorest (thirdbest) performing index over the period is not used when determining if index interest is to be credited (see Example 1). If the result of the index interest calculation is less than zero, then no index interest is to be credited (see Example 2). The index crediting rate cannot be less than zero. All participation rates shown on the next page are hypothetical; Participation rates may vary. 9

11 5-year option Step 1 Formula Example 1 Example 2 AGL declares the Participation Rate applicable to a new 5-Year Index Account. Each index interest account has a 5-year duration. Once an index interest account begins, the Participation Rate is guaranteed for the 5-year term of the account. Assume the Participation Rate is 60% Assume the Participation Rate is 60% Step 2 During the 5-year term, policy charges are deducted, as well as any loans or withdrawals, from the index interest account. For this example, assume no loans or withdrawals are taken. The equivalent of 0% guaranteed annual interest is credited monthly. For this example, assume no loans or withdrawals are taken. The equivalent of 0% guaranteed annual interest is credited monthly. Step 3 At the end of the 5-year term, determine the point-to-point return for each index. Assume the point-to-point returns are as follows: S&P % EURO STOXX...-28% Hang Seng % Assume the point-to-point returns are as follows: S&P % EURO STOXX % Hang Seng % Step 4 With the point-to-point returns from Step 3, calculate the adjusted index return by multiplying the highest index return by 75% and the second highest by 25%, then adding the result. This result will never be less than zero (a negative number will not be applied). Hang Seng 120% x 75%.=...90% S&P % x 25%. = % Index Return... = % Adjusted Index Return... = % S&P % x 75%...= % EURO STOXX -15% x 25%...= % Index Return...= % Adjusted Index Return...=... 0% Step 5 Calculate the index interest percentage by multiplying the adjusted index return by the Participation Rate and then subtracting the guaranteed interest. The index interest cannot be less than 0%. 105% Adjusted Index Return x 60% Participation Rate - 0% Guaranteed interest rate for 5 years = 63% Index return to be credited to this 5-year index account. 0% Adjusted index return x 60% Participation Rate - 0% Guaranteed interest rate for 5 years = 0% Index return to be credited to this 5-year index account 10

12 Loans and withdrawals As policy cash values accumulate over the years, amounts will be available for loans and withdrawals, and can then be used to supplement retirement income, provide business capital or fill a wide variety of other personal and business needs. Refer to the policy for the annual loan rate for loans taken on the policy, and applicable charges for withdrawals. Of course, loans and withdrawals reduce the death benefit and cash value and could reduce the duration of insurance coverage. Additionally, there may be tax consequences associated with loans and withdrawals. Access cash through withdrawals and loans There are two types of loans available with Elite Global Plus II whenever there is a positive amount available for new loans. 8 Changing policy loan types The policy owner can switch between Standard and Choice Loans two times during the life of the policy. When going from Choice to Standard, the Choice Loan amount is eliminated and the loan amount is deducted on a proportional basis from all accounts in the same manner as a new Standard Loan. When going from Standard to Choice, the amount of the loan is allocated to new interest crediting accounts using the current premium allocation percentage then in effect. Standard Loan Standard Loan amounts are removed from the index, declared interest and interim accounts proportionally based on the accumulation value in each account. Loan interest due will accrue daily at a fixed rate. The effective annual loan rate is 4.00 percent (payable in advance at the rate of 3.85 percent). Unpaid loan interest will be added to the loan amount. The amount of the accumulation value offset by a policy loan will earn interest at a rate of 3.00 percent. Choice Loan Choice Loan amounts are added to the loan amount against the policy but the amounts are not deducted from any of the accounts and still remain eligible for index or declared interest. The initial annual effective interest rate on a Choice Loan is 6.00 percent. Unpaid loan interest will be added to the loan amount. A Choice Loan offers the opportunity to reduce out-of-pocket costs while maintaining the ability to credit the account(s) with index interest or fixed interest. However, there is a possibility that the amount credited from the index interest or fixed interest accounts will be less than the interest charged on a Choice Loan. As a result, there is the risk that if the policy performance is less than the interest charged on the Choice Loan, the policy could lapse unless additional premium or loan interest payments are made. For example, if the index interest credited to the policy is 8.00 percent and the interest charged on the policy loan is 6.00 percent, the result is a net gain of 2.00 percent. However, if the account value earns only the guaranteed 1.00 percent, and the interest charged on the policy loan is 6.00 percent, the net cost of the Choice Loan is 5.00 percent. In this case, the Choice Loan will provide less income potential and could result in policy lapse if poor index performance is sustained or additional premium or loan interest payments are not made. See the policy illustration for numeric examples. 11

13 Available riders 10 and options Terminal Illness Rider provides the option for an accelerated death benefit (living benefit) when the insured is diagnosed with a terminal illness (12 months or less to live). This rider is not available in New York. Waiver of Monthly Deductions Rider waives monthly deductions as they are due while the insured is totally disabled Overloan Protection Rider guarantees that the base policy will not lapse due to a large outstanding loan Maturity Extension Option allows the policy owner to elect to extend the coverage under the policy beyond the original maturity date (insured s age 121) Term Life Insurance Benefit Rider is used to enhance cash surrender value in the policy s early years and may reduce collateral needs in premium financing situations or benefit a balance sheet when the policy is business-owned (available only at policy issue). This rider is not available in New York. Additional information Policy charges Percentage of Premium Load Current charge of 7.00 percent of all premiums Maximum charge of percent Monthly deductions Current monthly administration fee of $5.00 (maximum charge of $20.00) Five-year monthly expense charge per $1,000 of specified amount of base policy Ten-year monthly expense charge per $1,000 of Term Life Insurance Benefit rider death benefit Current cost of insurance based on net amount at risk Rider charges may apply Surrender charges There is a nine-year surrender charge schedule. For increases of the specified amount, an additional surrender charge schedule will apply to the amount of the increase during the first nine years after the increase. Partial withdrawals are subject to a current charge of $25 and the maximum charge of $50 and additional surrender charges based on the withdrawal date. Death benefit options The policy offers two death benefit options: Option 1 (Level): The death benefit is the level specified amount* Option 2 (Increasing): The death benefit is the specified amount plus the accumulation value* * To the extent that declared and/or excess interest builds more accumulation value in the policy the beneficiary may receive a higher death benefit upon the insured s death. 12

14 Important: The purchase of the Elite Global Plus II, which is a fixed index universal life insurance policy, is not an investment nor a means of participating in any specific securities, stocks, any stock market, a stock market index, or S&P 500, EURO STOXX 50, or Hang Seng Index. 1 Under current federal income tax law. 2 The S&P 500 is a product of S&P Dow Jones Indices LLC and has been licensed for use by American General Life Insurance Company (AGL). The life insurance products underwritten and issued by AGL are not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, any of their respective affiliates (collectively, S&P Dow Jones Indices ) or their respective third party licensors. Neither S&P Dow Jones Indices nor its third party licensors make any representation or warranty, express or implied, to the owners of AGL s products or any member of the public regarding the advisability of paying premiums for AGL s products particularly or the ability of the S&P 500 to track general stock market performance. S&P Dow Jones Indices and its third party licensors only relationship to AGL with respect to the S&P 500 is the licensing of the S&P 500 and certain trademarks, service marks and/or trade names of S&P Dow Jones Indices and/or its third party licensors. The S&P 500 is determined, composed and calculated by S&P Dow Jones Indices or its third party licensors without regard to AGL or its products. S&P Dow Jones Indices and its third party licensors have no obligation to take the needs of AGL or the owners of its products into consideration in determining, composing or calculating the S&P 500. S&P Dow Jones Indices and its third party licensors are not responsible for and have not participated in the determination of the prices, and amount of AGL s products or the timing of the issuance or sale of AGL s products or in the determination or calculation of the equation by which AGL s products may be cash surrendered or may pay an insurance benefit. S&P Dow Jones Indices and its third party licensors have no obligation or liability in connection with the administration or marketing of AGL s products. There is no assurance that insurance products based in whole or in part on the S&P 500 will accurately track index performance or provide positive investment returns. S&P Dow Jones Indices LLC is not an investment advisor. Inclusion of a security within an index is not a recommendation by S&P Dow Jones Indices to buy, sell, or hold such security, nor is it considered to be investment advice. NEITHER S&P DOW JONES INDICES NOR ITS THIRD PARTY LICENSORS GUARANTEES THE ADEQUACY, ACCURACY, TIMELINESS AND/OR THE COMPLETENESS OF THE S&P 500 OR ANY DATA INCLUDED THEREIN OR ANY COMMUNICATIONS, INCLUDING BUT NOT LIMITED TO, ORAL OR WRITTEN COMMUNICATIONS (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT THERETO. S&P DOW JONES INDICES AND ITS THIRD PARTY LICENSORS SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS, OR DELAYS THEREIN. S&P DOW JONES INDICES AND ITS THIRD PARTY LICENSORS MAKE NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIM ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE OR AS TO RESULTS TO BE OBTAINED BY AGL, OWNERS OF ITS PRODUCTS, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE MARKS, THE S&P 500 OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL S&P DOW JONES INDICES OR ITS THIRD PARTY LICENSORS BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY OR OTHERWISE. THERE ARE NO THIRD PARTY BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN S&P DOW JONES INDICES AND AGL, OTHER THAN THE LICENSORS OF S&P DOW JONES INDICES. Standard & Poor s, S&P, and S&P 500 are registered trademarks of Standard & Poor s Financial Services LLC, and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC ( Dow Jones ). The trademarks have been licensed to S&P Dow Jones Indices LLC and have been sublicensed for use for certain purposes by AGL. 3 STOXX and its licensors (the Licensors ) have no relationship to American General Life Companies and affiliates, other than the licensing of the EURO STOXX 50 and the related trademarks for use in connection with the policy. STOXX and its Licensors do not: Sponsor, endorse, sell or promote the policy. Recommend that any person invest in the policy or any other securities. Have any responsibility or liability for or make any decisions about the timing, amount or pricing of policies. Have any responsibility or liability for the administration, management or marketing of the policy. Consider the needs of the policy or the owners of the policy in determining, composing or calculating the EURO STOXX 50 or have any obligation to do so. STOXX and its Licensors will not have any liability in connection with the policy. Specifically, STOXX and its Licensors do not make any warranty, express or implied and disclaim any and all warranty about: The results to be obtained by the policy, the owner of the policy or any other person in connection with the use of the EURO STOXX 50 and the data included in the EURO STOXX 50 ; The accuracy or completeness of the EURO STOXX 50 and its data; The merchantability and the fitness for a particular purpose or use of the EURO STOXX 50 and its data; STOXX and its Licensors will have no liability for any errors, omissions or interruptions in the EURO STOXX 50 or its data; Under no circumstances will STOXX or its Licensors be liable for any lost profits or indirect, punitive, special or consequential damages or losses, even if STOXX or its Licensors knows that they might occur. The licensing agreement between American General Life Companies and affiliates and STOXX is solely for their benefit and not for the benefit of the owners of the policy or any other third parties. 4 The Hang Seng Index (the Index ) is published and compiled by Hang Seng Indexes Company Limited pursuant to a license from Hang Seng Data Services Limited. The mark and name Hang Seng Index are proprietary to Hang Seng Data Services Limited. Hang Seng Indexes Company Limited and Hang Seng Data Services Limited have agreed to the use of, and reference to, the Index by American General Life Insurance Company (American General Life) in connection with American General Life s products (the Product ), BUT NEITHER HANG SENG INDEXES COMPANY LIMITED NOR HANG SENG DATA SERVICES LIMITED WARRANTS OR REPRESENTS OR GUARANTEES TO ANY BROKER OR HOLDER OF THE PRODUCT OR ANY OTHER PERSON (i) THE ACCURACY OR COMPLETENESS OF ANY OF THE INDEX(ES) AND ITS COMPUTATION OR ANY INFORMATION RELATED THERETO; OR (ii) THE FITNESS OR SUITABILITY FOR ANY PURPOSE OF ANY OF THE INDEX(ES) OR ANY COMPONENT OR DATA COMPRISED IN IT; OR (iii) THE RESULTS WHICH MAY BE OBTAINED BY ANY PERSON FROM THE USE OF ANY OF THE INDEX(ES) OR ANY COMPONENT OR DATA COMPRISED IN IT FOR ANY PURPOSE, AND NO WARRANTY OR REPRESENTATION OR GUARANTEE OF ANY KIND WHATSOEVER RELATING TO ANY OF THE INDEX(ES) IS GIVEN OR MAY BE IMPLIED. The process and basis of computation and compilation of any of the Index(es) and any of the related formula or formulae, constituent stocks and factors may at any time be changed or altered by Hang Seng Indexes Company Limited without notice. TO THE EXTENT PERMITTED BY APPLICABLE LAW, NO RESPONSIBILITY OR LIABILITY IS ACCEPTED BY HANG SENG INDEXES COMPANY LIMITED OR HANG SENG DATA SERVICES LIMITED (i) IN RESPECT OF THE USE OF AND/OR REFERENCE TO ANY OF THE INDEX(ES) BY AMERICAN GENERAL LIFE IN CONNECTION WITH THE PRODUCT; OR (ii) FOR ANY INACCURACIES, OMISSIONS, MISTAKES OR ERRORS OF HANG SENG INDEXES COMPANY LIMITED IN THE COMPUTATION OF ANY OF THE INDEX(ES); OR (iii) FOR ANY INACCURACIES, OMISSIONS, MISTAKES, ERRORS OR INCOMPLETENESS OF ANY INFORMATION USED IN CONNECTION WITH THE COMPUTATION OF ANY OF THE INDEX(ES) WHICH IS SUPPLIED BY ANY OTHER PERSON; OR (iv) FOR ANY ECONOMIC OR OTHER LOSS WHICH MAY BE DIRECTLY OR INDIRECTLY SUSTAINED BY ANY BROKER OR HOLDER OF THE PRODUCT OR ANY OTHER PERSON DEALING WITH THE PRODUCT AS A RESULT OF ANY OF THE AFORESAID, AND NO CLAIMS, ACTIONS OR LEGAL PROCEEDINGS MAY BE BROUGHT AGAINST HANG SENG INDEXES COMPANY LIMITED AND/OR HANG SENG DATA SERVICES LIMITED in connection with the Product in any manner whatsoever by any broker, holder or other person dealing with the Product. Any broker, holder or other person dealing with the Product does so therefore in full knowledge of this disclaimer and can place no reliance whatsoever on Hang Seng Indexes Company Limited and Hang Seng Data Services Limited. For the avoidance of doubt, this disclaimer does not create any contractual or quasi-contractual relationship between any broker, holder or other person and Hang Seng Indexes Company Limited and/or Hang Seng Data Services Limited and must not be construed to have created such relationship. Limited and must not be construed to have created such relationship. 5 Elite Global Plus II offered by The United States Life Insurance Company in the City of New York does not provide for a 5-Year Multiple Index Interest Participation Rate Account. The 5-Year Account may not be available in all other states. 6 The Index Cap will never be less than 0 percent. 7 The Participation Rate will never be less than 15 percent. 8 Policy loans and partial withdrawals will reduce the death benefit and cash value, and could reduce the duration of coverage. Partial withdrawals may be taxed as regular earnings. Different rules apply to taxation of distribution from policies that are classified as Modified Endowment Contracts. This information is based on current federal income tax laws. Policy owners should consult a qualified tax advisor to determine if a transaction is a taxable event. 9 The Rider form contains more detailed information regarding when index interest is calculated and when it is credited. See the rider form for additional information. 10 See the riders for complete details. There may be a charge for each rider selected. Adding or deleting riders and increasing or decreasing coverage under existing riders can have tax consequences. Policy owners should consult a qualified tax advisor prior to electing such changes. 13

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16 NOT A DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY MAY LOSE VALUE NO BANK OR CREDIT UNION GUARANTEE NOT FDIC/NCUA/NCUSIF INSURED Policies issued by: American General Life Insurance Company (AGL), Policy Form Numbers 12967, ICC ; Rider Form Numbers 91401, 82001, 07620, 10691, 12231, ICC , 12262, ICC except in New York, where issued by The United States Life Insurance Company in the City of New York (US Life), Policy Form Number 12967N; Rider Form Numbers 82001N, 07620N, 12262N. Issuing companies AGL and US Life are responsible for financial obligations of insurance products and are members of American International Group, Inc. (AIG). Products may not be available in all states and product features may vary by state. Guarantees are backed by the claims-paying ability of the issuing insurance company. AGLC REV AIG. All rights reserved.