Accelerated Access Solution

Transcription

1 Accelerated Access Solution Optional Living Benefit Rider for AG Secure Lifetime GUL II, Value+ IUL and Elite Index II California residents should be provided the California Resident Supplemental Information flyer on the Accelerated Access Solution (AGLC108547) Policies issued by: American General Life Insurance Company, a member of American International Group, Inc. (AIG)

2 A New Life Insurance Solution Provides Access to Death Benefits While LIVING How? Purchase an AG Secure Lifetime GUL II, Value+ IUL or Elite Index II life insurance policy that includes the Accelerated Access Solution (AAS) rider. When the health impairment criteria is met, policy owners can access a portion of their death benefit every month for as long as the criteria is met, or until the AAS death benefit amount is exhausted, whichever occurs first. Accelerated Access Solution may be perfect for consumers: Who know they need life insurance to protect them and their families Who have experienced a recent health care event with a family member or friend, and realize how expensive it can be Who realize that they need an additional financial safety net in the event of an unexpected chronic illness Who are generally in good health but want options in the event their health deteriorates later in life About 91% of older adults have at least one chronic condition, and 73% have at least two. 3

3 Accelerated Access Solution Benefits Multiple benefit payment options three options available for monthly benefit payments: IRS maximum per diem amount at time claim begins (the 2015 rate is $330/day or $9,900/month) 2% of the AAS benefit per month, or 4% of the AAS benefit per month. Waiver of monthly deduction all policy deductions stop for base policy and all riders for as long as policy owner meets the chronic illness requirement Flexible options with total benefit amount select any amount between 50% -100% of the base policy death benefit amount Care coordination services available variety of optional and free support services available to the insured at time of claim No receipts required benefits paid irrespective of actual costs incurred Dollar-for-dollar death benefits payout Know the benefit to be received at the time of rider purchase - no discount applied at time of claim 9 Not a use or lose it policy benefits are paid no matter what either when the chronic illness requirement is met or via death benefits Control over how money is spent up to the policy holder how the funds are used, not restricted via the policy No waiting period chronic illness benefits are available as soon as policy is issued (90 day elimination period applies) 10 Activation To activate the rider, one of the following health impairment criteria must be met: The insured is unable to perform, without substantial assistance from another person, two of the Activities of Daily Living (ADLs) Bathing Eating Continence Toileting Dressing Transferring 2. The insured requires substantial supervision from threats to health and safety due to a severe cognitive impairment (similar to Alzheimer s and other forms of irreversible dementia) that is measured by clinical evidence and standardized tests measuring: Short-term or long-term memory Orientation as to people, places or time, and Deductive or abstract reasoning Once criteria is met and the 90 day elimination period is satisfied, monthly benefits begin. 10 How it Works: The Accelerated Access Solution must be added to the life insurance policy at the time of purchase. 12 The monthly cost of the rider will vary based on the Accelerated Access Solution benefit amount selected, issue age, gender and underwriting class. Once the insured meets the health impairment criteria, benefits are approved and the 90-day elimination period has been satisfied, the following will occur: 1. Monthly deductions are waived for as long as policy owner meets the chronic illness requirements 2. The death benefit is reduced by the Accelerated Access Solution benefit amount paid to the policy owner 3. Accelerated Access Solution benefits is designed to be received income-tax-free 1 4. At death, the remaining death benefit is paid to policy beneficiaries income-tax-free 1

4 Example A $250,000 AG Secure Lifetime GUL II policy is purchased with a $250,000 Accelerated Access Solution benefit. The premiums paid are structured to guarantee death benefits until reaching age 100. The Accelerated Access Solution can be purchased with any of the 3 available benefits per month: 13 2% of the Accelerated Access Solution benefit per month, or 4% of the Accelerated Access Solution benefit per month, or The IRS maximum per diem amount in effect at the time claim begins. When policy owner meets the chronic illness criteria of the Accelerated Access Solution, policy owner is eligible to receive monthly benefits in the manner selected at time of policy purchase. For the three benefit options, here s what the monthly benefits would look like for a $250,000 AAS benefit: 2% of the AAS benefit per month maximum of $5,000 per month. Benefits continue until policy owner receives the entire $250,000 which would be four years and two months. 4% of the AAS benefit per month maximum of $10,000 per month. In any year where the maximum monthly IRS per diem benefit is greater than $10,000, the $10,000 monthly benefits would be paid until policy owner receives the entire $250,000 which would be two years and one month. Per diem amount at time claim begins The IRS updates the maximum per diem benefit annually. If this option is selected and the claim doesn t begin until 20 years later, the IRS per diem limit may be much higher. If the maximum per diem benefit is $20,000 per month at the time claim begins, the policy owner is eligible to receive $20,000 per month until the entire $250,000 is paid which would be 12.5 months. For all three benefit scenarios, any amounts unused/unpaid to the policy owner will be available to be paid to the beneficiary at the time of the insured s death. Hypothetical Monthly Benefit Options: $250,000 Death Benefit $ Year 1 Year 10 Year 20 Year 30 Note: IRS caps the maximum daily rate each year. For 2015, the maximum per diem is $330/day or $9,900/month. Projections based on IRS 2015 per diem in year 1, and increasing 4% each year thereafter. Hypothetical representation for illustrative purposes only $0 2% Benefit 4% Benefit Per Diem Benefit

5 Think life insurance only pays out at death? Not anymore. Access life insurance death benefits while living. By adding the Accelerated Access Solution rider to a new life insurance policy, policy owners can access income tax-free death benefits if diagnosed with a chronic illness. 1,2 The funds can be used to help pay for: Adult daycare Assisted living Family care Nursing home care Virtually any expense, even those unrelated to the illness Did you know? Every 34 seconds an American has a coronary event 4 75% of people who suffer a heart attack survive at least three years 5 Every 40 seconds an American has a stroke 4 70% of people who suffer a stroke survive at least three years 6 Healthcare costs for an average 65-year old couple retiring now equal $220,000 for out-of-pocket medical expenses throughout retirement 7 73% of respondents to a recent survey say serious health problems are their major worry about living to 100 8

6 Life Insurance You Don't Have to Die To Use AG Asset Protector, available on AG Secure Lifetime GUL II policies, provides a unique package of living benefits that allow access to death benefits while living. The AG Asset Protector product suite includes two riders: the Accelerated Access Solution which allows income tax free access to death benefits if diagnosed with a chronic illness, plus the Lifestyle Income Solution which allows access to your death benefit for any reason after age 85. Speak to your American General Life representative about how life insurance can help you plan for the unexpected. 1 Based on current federal income tax laws, policy owners should consult a qualified tax advisor. 2 Insured must be certified as chronically ill by a licensed physician and meet all eligibility requirements. 3 National Council on Aging: American Heart Association, Heart Disease and Stroke Statistics 2013 Update 5 American Heart Association, Heart Disease and Stroke Statistics 2011 Update 6 American Heart Association, Heart Disease and Stroke Statistics 2010 Update 7 Fidelity Benefits Consulting study, The 2Q11 SunAmerica Retirement Re-Set SM Study conducted by Harris Interactive surveyed a national sample of adults age Subject to the $1.5MM lifetime cap consecutive days must expire before the Insured becomes eligible for Accelerated Benefit payments. Note that AAS is not available to foreign nationals. See outline of coverage for details. 11 Condition must be expected to last for the rest of the insured s life. 12 The free Terminal Illness Rider must be added to the policy in addition to the Accelerated Access Solution rider. 13 Monthly benefit option is selected at time of rider purchase. California residents should be provided the California Resident Supplemental Information flyer on the Accelerated Access Solution (AGLC108547) 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 13460, ICC , 13717, ICC ; Rider Form Numbers 13600, ICC ,13601, 13972, 82001, CA WMDR Rev0914. 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. 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. AIG All rights reserved AGLC REV0715