QoL Performer Plus SM. Life Insurance + Optionality = Opportunities that Can Last a Lifetime!

Transcription

1 QoL Performer Plus SM Life Insurance + Optionality = Opportunities that Can Last a Lifetime!

2 This is what happens when you think about life insurance differently. You create powerful, permanent life insurance that can change and grow with the needs of each individual policy holder. LIFE INSURANCE QoL Performer Plus is an affordable universal life insurance policy that can provide a guaranteed 1 death benefit for 25 years or up to age 80, whichever comes sooner plus the opportunity for significant cash accumulation. The policy pays competitive current interest, with guaranteed minimum interest crediting of 4 percent for the first five years. It can be well-suited for those starting out on their financial journey, since it can efficiently change and grow over the course of their lifetimes. It also helps to create a base from which other tactical financial options can be elected quickly, easily and in some cases, automatically. Middle-agers and those later in life will also appreciate the policy s guarantees and flexibility, plus the opportunity to grow and access cash for supplemental retirement income or any other purpose. QoL Performer Plus is designed to serve and help protect you and your family, whatever the future may bring. 2 1 Guarantees are backed by the claims-paying ability of the issuing insurer.

3 It s life insurance you don t have to die to use! As part of our Quality of Life...Insurance suite of products, Performer Plus can pay a portion of the base life insurance benefit if you have a major heart attack, stroke, cancer or other qualifying illness or condition at no additional premium cost to you. You can use the money to cover the costs of treatment, recoup lost income or for any other purpose. If you decide to take advantage of this benefit, the balance of your life insurance coverage remains in place. American General Life Insurance Company is a recognized leader in accelerated benefits. For more information about Quality of Life...Insurance, contact your agent or visit + Add term life coverage for your children. + OPTIONALITY Flexible features, benefits and riders you can tailor to your needs whenever! The one constant in life is change. That s why Performer Plus is designed to provide you with tactical options and advantages you can use throughout your lifetime. You have the option to add and subtract what you want, when you want it (subject to underwriting and policy requirements) while taking advantage of lower premiums, volume discounts and other fee reductions. Go ahead! You have the power. Change your coverage amount. After year one, as your needs, family and income grow, you can increase your coverage amount. If you ve chosen to add the Additional Insurance Option to your policy, then at certain ages and life events, the ability to apply for additional coverage is guaranteed. You can also decrease your coverage amount, though surrender charges may apply. Add tactical term life coverage for any purpose and any duration from10-35 years. Cover the cost of your mortgage for 22 years. Protect the cost of a college education for Billy in 13 years, Susie in 11 years and your new baby in 18 years. You pick the term. You pick the purpose. You pick the amount. And we ll bundle it in with all the discounts you ve earned. Term life coverage for children is inexpensive. Coverage from $5,000 to $25,000 is available for each child. And the rider is guaranteed convertible to permanent coverage up to age 25. Put extra money to work. Any money deposited into your policy during the first five years that is above benchmark premium 2 is placed into a protected account, not subject to charges or fees. This feature provides policy holders extra flexibility with their money, subject to policy terms and conditions. The protected money feature can be especially appealing for someone purchasing a Performer Plus policy via a 1035 exchange. (Consult your professional tax advisor regarding withdrawals of protected money from a 1035 exchange.) Add term life coverage for your spouse. Buy an associated policy for an amount up to your Performer Plus coverage amount. Fee and volume discounts can make this coverage appealing to you and your wallet. Build supplemental retirement income. Regularly funding your Performer Plus policy may help you create the potential for significant additional income for retirement. Your agent can provide what-if illustrations to help you decide on an appropriate funding level and timetable. Please note, any additional products and/or riders offered with Performer Plus are subject to policy terms and conditions as well as applicable underwriting requirements. 2 Benchmark premium is the maximum first-year premium, and is determined at issue. The benchmark premium is defined so that any funds contributed to the policy above this amount will be credited to the policy holder s protected money account. 3

4 QoL Performer Plus Life Insurance + Optionality It could be the first policy you buy. QoL Performer Plus offers a great opportunity for younger adults to lock-in permanent life insurance coverage at affordable rates. Later, when you marry, have kids, get a mortgage or start thinking about retirement, you can bundle in the additional coverages and solutions you need. It could be the last policy you buy. QoL Performer Plus helps to bring security, affordability and flexibility to policy holders at older ages too. In addition to the optional extended guarantee death benefit and the opportunity to supplement retirement income, it provides for accelerated death benefits that are part of Quality of Life...Insurance, helping to provide needed cash should you suffer a qualifying illness or condition. 4

5 QoL Performer Plus in action: Henry suffers a heart attack, takes early retirement income and still leaves a substantial death benefit for his family. 3 Problem: At age 49, Henry is a husband and father in good health. But he s seen, firsthand, how a critical illness can adversely affect a family s financial plan. His brother Ed had a stroke a few years back. And while Ed s condition has improved, the high costs of care forced him and his family to seriously spend down their assets. Henry wants to provide long-term life insurance protection for his family. But he also wants to have a source of ready cash if he should suffer a critical illness. He wonders if there s a way he could satisfy both objectives with a single product. Solution: Working with his financial professional, Henry decides that a $350,000 QoL Performer Plus policy will help him achieve his goals. His agent explains that since this product is part of the QoL product suite, it contains the SelectChoice Accelerated Benefit Rider, which allows for all or part of the life insurance benefit to be accelerated if he suffers a qualifying illness. SelectChoice offers a Flexible Accelerated Benefit (FAB) with every policy. However, Henry could choose to purchase an optional Defined Accelerated Benefit (DAB), which is also available under the SelectChoice ABR. Henry decides to add a DAB of $40,000. This amount would be payable to Henry upon approval of a future claim, regardless of the change in his life expectancy. 4 Results: At age 64, Henry survives a heart attack, but his health forces him to retire a year earlier than planned. To help replace some of his income for that year, he takes his DAB and receives $40,000 as a lump sum, leaving a $310,000 life insurance benefit in the policy. In the future: At age 65, Henry begins taking income as planned from his retirement savings and Social Security. His life insurance policy continues to earn interest. And when he dies at age 82, the remaining $310,000, plus his policy s cash value 5, passes to his wife and children. Because Performer Plus has built-in minimum interest rate crediting, Henry s policy s cash value could be substantial. 3 Not an actual case. This is a hypothetical representation for illustrative purposes only. 4 See Quality of Life Insurance consumer brochure for more information regarding how the SelectChoice Accelerated Benefit Rider works. 5 Henry chose Option B, which allows for the death benefit in the policy to increase as the accumulation value grows. He would receive the remaining Specified Amount policy value of $310,000, plus the portion of Accumulation Value earned that would be available to be added to the death benefit. Both of Henry s objectives are achieved thanks to a single, efficient and flexible product. 5

6 Build your financial future with a world leader. For more than 90 years, AIG companies have protected clients and their families from the unexpected and helped them safeguard their futures. We have become one of the world s largest insurance organization, with 63,000 associates serving 88 million customers in more than 130 countries. We reported $541 billion in total assets as of December 31, Our mission is to be the premier provider of protection, retirement income and investment solutions for our clients. And we re looking forward to working with you. 6

7 Are you prepared for life s uncertainties? Though we all want to live a long and healthy life, the possibility of being diagnosed with a critical, chronic or terminal illness is a real concern. The SelectChoice Accelerated Benefit Rider helps protect against the financial issues that serious illnesses often bring. Even with the best plans, the unexpected can happen such as a critical illness or a permanent chronic illness or condition. The costs associated with treatment, as well as possible income lost if you are unable to work, can seriously threaten your quality of life. Quality of Life...Insurance is designed to let you use your life insurance benefits when you need them most. This innovative and affordable life insurance policy can help pay the direct costs of treatment for qualifying illnesses or conditions or any other indirect expenses. If you have an illness such as a major heart attack, invasive cancer, or a stroke, you can accelerate some or all of your life insurance benefit. If you accelerate your policy, you receive a portion of your life insurance benefits now, before your death which reduces your life insurance coverage and policy values. 6 Yet any remaining life insurance is still in place. For instance, if you accelerated $100,000 of a $250,000 policy, you would still have $150,000 of life insurance coverage in place. 6 Individual benefits, if any, will vary. Quality of Life... Insurance is life insurance you don t have to die to use. It can be extremely helpful to you and your family should you suffer a qualifying Critical, Chronic or Terminal illness or condition. You can learn more about Quality of Life Insurance by watching a video or reviewing the consumer information brochure. Please ask your agent for details or visit 7

8 The SelectChoice Accelerated Benefit Rider will be included on eligible QoL Performer Plus policies if available in your state. Ask your agent for details. The following information generally describes the Qualifying Events under the SelectChoice Accelerated Benefit Rider (see the rider for full definitions, limitations, and other applicable terms): Qualifying Chronic Illness 7 A Qualifying Chronic Illness is an illness or physical condition Certified as a Chronic Illness by a licensed healthcare practitioner, which Certification was effective no more than 12 months prior to AGL s receipt of such Certification and permanently affects the Insured Person so that he or she: Is unable to perform at least two of the six Activities of Daily Living (ADLs*) without substantial assistance; or Requires substantial supervision by another person to protect the Insured Person from threats to health and safety due to severe cognitive impairment; and for which the Insured Person is under a plan of care prescribed by a licensed health care practitioner. * ADLs: Bathing, Dressing, Toileting, Transferring, Continence, Eating Qualifying Critical Illness 7 The following critical illnesses or conditions are Qualifying Critical Illnesses under the rider: Major Heart Attack Major Organ Transplant Coronary Artery Bypass End Stage Renal Failure Stroke Paralysis Invasive Cancer Coma Blood Cancers: Leukemia, Severe Burn Lymphoma, and Multiple Myeloma Qualifying Terminal Illness 7 A Qualifying Terminal Illness is an illness or physical condition that is certified by a licensed physician to be reasonably expected to result in the insured s death within 24 months from the date of certification. If a benefit under an Accelerated Benefit Rider is payable, the Company will provide the Owner with one (1) opportunity to elect a Flexible Accelerated Benefit and/or a Defined Accelerated Benefit, if applicable, under a Policy. The Owner must complete an election form and return it to AGL within 60 days of receipt of the election form. The Company will not provide a later opportunity to elect a Flexible Accelerated Benefit and/or a Defined Accelerated Benefit, if applicable, under a Policy as to the same Qualifying Critical Illness or Qualifying Chronic Illness. The rider is designed to provide two types of accelerated benefits: an optional Defined Accelerated Benefit (DAB) and the Flexible Accelerated Benefit (FAB). Defined Accelerated Benefit (DAB) The DAB is an optional benefit which provides for payment of a predetermined portion of the applicable life insurance benefit upon the occurrence of a Qualifying Event. The DAB for the initial Qualifying Event, where a claim is made, is determined as a fixed percentage between 5%-15% of the maximum applicable life insurance benefit that can be accelerated under the policy. The DAB for a subsequent Qualifying Event is calculated using a reduced percentage (20% of the initial DAB percentage). There will be a charge for the rider if the DAB percentage is greater than zero. Flexible Accelerated Benefit (FAB) The FAB provides for acceleration of all or a portion of the remaining life insurance benefit that may be accelerated after any DAB is paid. Any portion of the life insurance benefit that is elected to be accelerated as a FAB is subject to an actuarial discount, administrative charge, and payment of any unpaid but due policy premiums and will always be less than the portion of the base life insurance benefit accelerated. The amount offered as a FAB will, in significant part, be dependent upon any change in mortality of the Insured Person in question between the time the applicable life insurance policy with the FAB was underwritten and the time any particular FAB claim is filed and considered. Changes in health and other factors will have varying effects on the mortality of different Insured Persons. Circumstances will vary among individual Insured Persons. The amount offered as a FAB is determined by the company after a claim is submitted and, when accepted, is payable to the Owner as a lump sum. 8 7 SelectChoice Accelerated Benefit Rider benefit and definitions may vary in some states and/or not be available in all states. The maximum amount of life insurance benefit that may be accelerated is subject to the Maximum Elected Death Benefit, which is the lesser of the current life insurance benefit or a lifetime maximum amount of $1,500,000. Benefit eligibility is subject to limitations and/or Waiting Period, Elimination Period and exclusion requirements. Please read the rider carefully for a complete definition of benefits and conditions applying to the rider.

9 Other Benefits and Riders: Extended Guarantee Rider You have the option to add an extended guarantee to your QoL Performer Plus policy. This rider is designed to guarantee the death benefit for either 25 years or to age 80, whichever comes first. Ask your agent for details. Waiver of Monthly Deduction Rider (WMDR) This rider waives the cost of insurance during the period the rider is in benefit. Issues Ages: 0-55 Termination Age: 65 If the Insured becomes totally disabled (as defined by the policy) before age 60, and if that total disability lasts six consecutive months during the continuation of the disability, the WMDR will: Waive the Monthly Guarantee Premium (MGP) during the Monthly Guarantee Premium Period (MGPP), or After the MGPP, waive the Monthly Deductions and other administrative charges If the Insured becomes totally disabled on or after the policy anniversary following age 60, but before coverage terminates, the Waiver of Monthly Deduction Rider waives: MGP during the MGPP, or After the MGPP, the Monthly Deductions and other administrative charges until the later of the Insured s age 65 or one year after the total disability began. The WMDR does not waive the Planned Periodic Premium. Waiver of Specified Premium Rider (WSPR) This rider pays a benefit into the policy each month during the total disability of the primary insured following a 180 day elimination period. Issue ages: Termination age: 60 The benefit exists to help fulfill the policy s purpose upon total disability of the insured. For example, if the intent of the insured is to provide supplemental income only, then the amount required to generate that number becomes the specified premium. Upon total disability qualification, the WSPR will fund the specified premium into the policy. The monthly benefit and premium is determined at issue. The WSPR may not maintain a policy in force over time. An applicant may elect either a Waiver of Monthly Deduction Rider (WMDR), or Waiver of Specified Premium Rider (WSPR), but not both. Accidental Death Benefit Rider This rider provides an additional death benefit if the insured s death results from an accident. Issue ages: Termination age: 70 Children s Term Life Insurance This rider provides a level amount of term insurance on each Insured Child with level premiums payable for the same period in which the coverage is provided. Issue ages for base Insured: Issue age for children: 7 days-17 years Expires at child s age 25, Insured s age 65 Issue amounts: $5,000 $25,000 This rider may be converted to a permanent plan at any time and may be converted for up to 2 times the amount of coverage if the application to convert is received within 31 days of the child s birthday, marriage or the base insured s death. PLEASE NOTE: The life insurance offered with SelectChoice Accelerated Benefit Rider is not stand-alone long term care insurance, disability income insurance or other insurance designed to cover specific costs associated with an illness or condition. Receiving benefits under the rider will reduce the amounts available for future acceleration under it and any other Accelerated Benefit Rider attached to the policy. It will also reduce the base life insurance benefit and the funds available to supplement retirement or other needs. In some cases, such reductions can result in policy termination. The benefits paid may be less than what is needed to cover all of the costs associated with an illness or condition. 9

10 Additional Insurance Option (AIO) This rider provides the option to increase the insured s coverage amount on specified option dates without evidence of insurability. Issue ages: 0 35 Regular option dates occur within 90 days before any of the following events: Policy anniversary following the insured s 27th, 30th, 33rd, 37th and 40th birthdays; marriage of the insured; live birth of a child of the insured; legal adoption of a child by the insured. Additional Insured Rider (AIR) This rider provides term life insurance coverage on the life of the base insured s spouse and includes the SelectChoice ABR. Issue Amounts: Minimum Coverage Amount $15,000-$99,999 for non-preferred rate classes $100,000+ for preferred rate classes This rider can be converted to any level premium or flexible premium life plan offered by the company. Maturity Extension Rider This rider allows the policyowner to extend coverage past the original maturity date of age 121, until the death of the insured. The death benefit during the extension period will be equal to the death benefit in effect on the day prior to the maturity date. Your death benefit may increase if your accumulation value increases, but it is guaranteed to never be less than the accumulation value. Issue Ages: Rate classes vary based on issue age. Please note these benefits are available for an additional premium. 10

11 Important Consumer Disclosures Regarding Accelerated Benefit Riders (1) When filing a claim for Qualifying Critical Illness, Qualifying Terminal Illness or Qualifying Chronic Illness under an Accelerated Benefit Rider, the claimant must provide to the Company a completed claim form (with Certification attached in the case of a Qualifying Chronic Illness) which must be received at its Administrative Center within the time frame specified in the Rider, if any. (2) If a benefit under an Accelerated Benefit Rider is payable, the Company will provide the Owner with one (1) opportunity to elect a Flexible Accelerated Benefit and/or a Defined Accelerated Benefit, if applicable, under a Policy. The Owner must complete an election form and return it to AGL within 60 days of receipt of the election form. The Company will not provide a later opportunity to elect a Flexible Accelerated Benefit and/or a Defined Accelerated Benefit, if applicable, under a Policy as to the same Qualifying Critical Illness or Qualifying Chronic Illness. (3) The failure to provide a required claim form and a required election form (with the requested attachments) within the periods set forth for each in a Policy may preclude payment of a benefit. (4) Benefits payable under an accelerated benefit rider may be taxable. Neither American General Life Insurance Company nor any agent representing it is authorized to give legal or tax advice. Please consult a qualified legal or tax advisor regarding questions concerning the information and concepts contained in this material. (5) Generally, we will send you an IRS Form 1099-LTC if you receive an accelerated death benefit on account of a Chronic Illness or a Terminal Illness. We will send you an IRS Form 1099-R if you receive an accelerated death benefit on account of a Critical Illness. The sum that will be included in Box 2 (Accelerated death benefits paid) of IRS Form 1099-LTC or in Box 1 (Gross distribution) of IRS Form 1099-R will be the actual sum you received by check or otherwise minus any refund of premium and/or loan interest included with our benefit payment plus any unpaid but due policy premium, if applicable, and/or pro rata amount of any loan balance. (6) See your policy for details. The insurance company may contest the policy from the date of policy issue, a reinstatement or an increase in coverage, during a period provided by applicable law and described in the policy, for the misstatement or misrepresentation of material fact on the application for such policy, reinstatement, or increase. If an Insured Person dies by suicide within the suicide period provided by applicable law and description in the policy, the death benefit will be limited as provided by the policy. Rider names, benefits and definitions may vary in some states and/or not be available in all states. Please consult a qualified legal or tax advisor regarding questions concerning the information and concepts contained in this material. Please note: The life insurance offered with the SelectChoice Accelerated Benefit Rider is not stand-alone long term care insurance, disability income insurance or other insurance designed to cover specific costs associated with an illness or condition. Receiving benefits under any rider will reduce the base life insurance benefit and the amounts available for future acceleration. It will also reduce the base life insurance benefit. In some cases, such reduction can result in policy termination. The benefits paid under the rider may be less than what is needed to cover all of the costs associated with an illness or condition. Your agent can provide you with details. Accelerate means to receive a portion of the base life insurance benefit early, while the Insured is still alive, in the event of a covered illness or condition. There are several factors to consider before deciding whether acceleration is right for you: Acceleration will reduce or eliminate the Insured Person s base life insurance benefit and policy values, if any. This means there will be less or no benefit paid when the Insured dies. The actual payment received will be less than the portion of the base life insurance benefit accelerated. This means you will not get the full amount you accelerate because 1) it is paid prior to death 2) it is subject to an actuarial discount, administrative charge and payment of any unpaid but due policy premiums. The amount of an Accelerated Benefit Rider benefit that may be offered is determined by the company when a claim is submitted and, when accepted, is payable to the owner in a lump sum. The amount of an offered benefit will, in significant part, be dependent upon any change in mortality of the Insured Person in question between the time the applicable life insurance policy with Accelerated Benefit Riders was underwritten and the time any particular Accelerated Benefit Rider claim is filed and considered. Changes in health and other factors will have varying effects on the mortality of different Insured Persons. Circumstances will vary among individual Insured Persons. If you are eligible, you will be offered the opportunity, when you receive your benefit election form, to purchase coverage to replace the amount accelerated. However, the costs of that coverage may be significantly higher. Your policy contract will have more information regarding how payment of benefits under the rider can impact your policy values. Please read it carefully. 11

12 Policies issued by American General Life Insurance Company (AGL). Issuing company 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 the issuing insurance company. 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. Please refer to your policy. For policy forms ICC , 14579, ICC10 AGLA ABR, AGLA ABR, ICC ,14012 ICC , 14018, ICC , 14390, AGLA 05AHC, AGLA EMD-DB, ICC , 14002, and state variations American International Group, Inc. (AIG). All rights reserved QOL-PUL-SCH (0714)