AG ROP Select-a-Term Level-premium endowment term insurance

Transcription

1 AG ROP Select-a-Term Level-premium endowment term insurance Pricing effective April 26, 2010 Policies issued by: American General Life Insurance Company The United States Life Insurance Company in the City of New York Producer Guide FOR PRODUCER USE ONLY NOT FOR DISSEMINATION TO THE PUBLIC

2 The most flexible term insurance products in the market, from the name synonymous with innovation: American General Life Companies Much more than just return of premium AG ROP Select-a-Term offers clients term insurance that ends when and how they want it. Clients may choose to: n Surrender the policy for cash value, which is guaranteed to equal cumulative base premiums paid, at the end of the level premium period, less any outstanding policy loans n Convert to permanent life insurance coverage at any time during the level premium period to a maximum conversion age of 70 n Stop paying premiums during the level premium period, resulting in a reduced paid-up policy that will endow for the reduced face value at policy anniversary nearest insured s 95th birthday n Continue coverage beyond the level premium period by paying increasing annual premiums and continue to build cash value to the policy anniversary nearest insured s 95th birthday, at which time the policy will endow for the full face amount if the insured is then living Standing apart from the crowd American General Life Companies offer features unavailable from other carriers: n Not just 2 or 3, but 17 term durations for maximum customization, including up to 35 years (depending on issue age and tobacco use) n Extremely competitive premiums n Cash values beyond the level premium period n Proactive communication which provides policyowners ample opportunity to understand and evaluate their options before reaching the end of their level premium period n The opportunity to accept conversions from AG Select-a-Term policies during the first two years, with full commissions on the increase in premium* n Fast quotes, including internal rate of return calculations, from our convenient Web-based Rapid Rater * On specific AG Select-a-Term policies issued with conversion endorsement since July 2009.

3 AG ROP Select-a-Term offers a choice of 17 different durations of guaranteed term coverage combined with a cash value component which, at the end of the level premium period, is designed to equal total base premiums paid. 1 Redesigned to offer highly competitive prices in target markets, AG ROP Select-a-Term also offers more choices than ever before for clients who prefer term coverage with the option of cash back equal to the cumulative base premium paid, less any policy loans, if they survive to the end of the level premium period. AG ROP Select-a-Term remains a compelling solution for families and small businesses who want to liquidate debts, provide a source of income, replace a key employee or fund a Buy-Sell Agreement. Policy Form Numbers AGL and USL 10001N Underwriting Preferred Plus (Pref. Plus) Standard Nontobacco (Std. NT) Special Nontobacco (Spec. NT) Classifications Preferred Nontobacco (Pref. NT) Preferred Tobacco (Pref. T) Special Tobacco (Spec. T) Standard Plus (Std. Plus) Standard Tobacco (Std. T) Substandard Through Table H (applied to Special Nontobacco rates for nontobacco and Special Tobacco for tobacco users) See ratebook on Web site for rating factor for specifi c level-premium period Factors vary by term and table Run substandard quotes on Rapid Rater, Winfl ex or econnections Desktop No return of premium on substandard extra charges Minimum Death Benefit $100,000 Premium Face Band 1: Policy amounts from $100,000 to $149,999 Band 3: Policy amounts from $250,000 to $499,999 Amount Bands Band 2: Policy amounts from $150,000 to $249,999 Band 4: Policy amounts of $500,000 and higher Policy Fee None Premium Calculations Annual: Multiply the rate in the table by the number of thousands (NO additional charge for policy fee or paying other than annual) Semiannual: Multiply the annual premium by 0.50 Quarterly: Multiply the annual premium by 0.25 Monthly: Multiply the annual premium by (only available through the pre-authorized checking payment method) Loans 2 Loans are available on the cash value accrued on the policy Loan interest rate is 8 percent per year, payable in arrears Exchange Option (Conversion) Option on Premium Default Illustrations Product Specifications AG ROP Select-a-Term policies may be converted to ContinUL * and ContinUL Extend Plus SM * up to the 60th month of the term contract (prior to the fi fth policy anniversary), subject to the age limitations of the term policy s conversion provision. From the 6th policy year until the end of the conversion period, the policy holder may convert to Elite Transition UL Ṣ M * Policies may be converted during the conversion period without evidence of insurability. The conversion period for AG ROP Select-a-Term extends to the earlier of the end of the level-premium period or the insured s attainment of age 70 * Subject to change at the discretion of American General Life Companies As long as the policy has a cash value, a reduced paid-up policy will be provided should the policy owner stop making premium payments 3 A signed illustration is not required. Illustrations available on WinFlex, econnections (quoting premiums, cash values, and Reduced Paid Up face amounts) and Rapid Rater (does not show cash values).

4 Available Riders 4 Accidental Death Child Rider Terminal Illness Endorsement (not available for USL) Waiver of Premium Pays a death benefi t in addition to the death benefi t of the base policy if such death resulted from certain accidental injuries Maximum face amount is the lesser of $250,000 and the face amount of the base policy Available to individuals rated Standard or better AGL pays double the accidental death benefi t if death was the result of an injury sustained while a passenger in a public conveyance being operated for hire by a common carrier Coverage expires on the policy anniversary nearest the insured s 70th birthday for AGL, 75th birthday for USL This rider can be added after issue and can be dropped after issue See chart for issue ages in AG ROP Select-a-Term ratebook on Web site Pays a death benefi t to the insured parent upon the death of an insured child AGL available for children age 15 days or more but less than 19 years old and not substandard-rated USL available for children age 14 days or more but less than 22 years old and not substandard-rated For parents issue ages, see chart in AG ROP Select-a-Term ratebook on Web site Minimum death benefi t is 1/2 unit ($500) and the maximum death benefi t is 25 units ($25,000) Expires at the earlier of the policy anniversary nearest the child s age 25 or the parent s age 65 This rider can be added after issue and can be dropped after issue An accelerated death benefit rider is provided at no additional premium on all eligible AG ROP Select-a-Term plans, regardless of underwriting classification Terminal Illness benefit is a one-time acceleration of up to 50 percent of the death benefi t proceeds payable under the base policy, not to exceed $250,000 Insured may become eligible for this benefi t if diagnosed by a qualifi ed physician as having 12 months or fewer to live The amount received under this endorsement is reduced by an actuarial discount and a one-time administrative fee. The fee may not exceed $250. Payment of a terminal benefit will reduce the amount of any death benefi t that may be payable Not available in all states, and state variations may apply AGL waives premiums for the base policy and any attached riders upon the total disability of the insured after a six-month waiting period USL waives premiums for the base policy and any attached riders upon the total disability of the insured after a four-month waiting period Not available if the face amount of the base policy exceeds $5 million Available on policies through Table D AGL coverage expires after the policy anniversary nearest the insured s 65th birthday unless total disability has, on such date, existed continuously for more than five years USL coverage expires on the policy anniversary nearest the insured s 60th birthday This rider cannot be added after issue but may be dropped after issue See chart for issue ages in AG ROP Select-a-Term ratebook on Web site

5 Issue Ages Period Class Issue Ages AG ROP Select-a-Term 15 and AG ROP Select-a-Term AG ROP Select-a-Term AG ROP Select-a-Term AG ROP Select-a-Term AG ROP Select-a-Term AG ROP Select-a-Term AG ROP Select-a-Term AG ROP Select-a-Term AG ROP Select-a-Term AG ROP Select-a-Term Percent of total premiums paid Cash Values Cash values through the end of the level premium period are at least equal to the percentage of the accumulated base premiums paid (not including Substandard or rider premiums) shown on the adjacent table. Policies kept inforce with premium payments after the end of the level premium period will continue to have cash value increases. AG ROP Select-a-Term Year % 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 5 8% 4% 3% 3% 2% 2% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 6 26% 9% 7% 6% 4% 3% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1.5% 7 40% 15% 12% 10% 7% 5% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 8 51% 21% 17% 14% 10% 7% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 2.5% 9 60% 28% 23% 19% 14% 10% 5% 5% 5% 5% 5% 5% 5% 4% 4% 3% 3% 10 68% 35% 30% 24% 19% 14% 8.5% 8% 8% 8% 8% 8% 7% 6% 6% 5% 4% 11 75% 43% 37% 32% 26% 21% 15% 14% 14% 13% 13% 12% 11% 9% 8% 6% 5% 12 82% 51% 46% 40% 35% 29% 24% 22% 21% 19% 18% 16% 14% 12% 10% 8% 6% 13 87% 58% 53% 48% 42% 37% 32% 30% 27% 25% 22% 20% 17% 15% 12% 10% 7% 14 93% 65% 60% 55% 49% 44% 39% 36% 33% 30% 27% 24% 21% 18% 15% 12% 8.5% % 71% 66% 61% 56% 51% 46% 42% 39% 35% 32% 28% 24% 21% 17% 14% 10% 16 77% 72% 67% 62% 57% 52% 48% 44% 40% 36% 32% 28% 24% 20% 16% 12% 17 83% 78% 73% 68% 63% 58% 54% 49% 45% 40% 36% 32% 28% 23% 19% 15% 18 88% 83% 78% 73% 69% 64% 59% 54% 50% 45% 40% 36% 31% 27% 22% 18% 19 93% 88% 84% 79% 74% 70% 65% 60% 55% 50% 45% 40% 35% 31% 26% 21% % 93% 88% 84% 79% 75% 70% 65% 60% 55% 50% 45% 40% 35% 30% 25% % 93% 88% 85% 80% 75% 70% 65% 60% 55% 50% 45% 40% 35% 30% % 93% 89% 85% 80% 75% 70% 65% 60% 55% 50% 45% 40% 35% % 93% 89% 85% 80% 75% 70% 65% 60% 55% 50% 45% 40% % 93% 89% 85% 80% 75% 70% 65% 60% 55% 50% 45% % 93% 89% 85% 80% 75% 70% 65% 60% 55% 50% % 93% 89% 85% 80% 75% 70% 65% 60% 55% % 93% 89% 85% 80% 75% 70% 65% 60% % 93% 89% 85% 80% 75% 70% 65% % 93% 89% 85% 80% 75% 70% % 93% 89% 85% 80% 75% % 93% 89% 85% 80% % 93% 89% 85% % 93% 89% % 93% %

6 1 AG ROP Select-a-Term accumulates a cash value that starts no later than the fifth policy year. At the end of the level premium period, the cash value of the in-force policy equals the total of cumulative premiums paid, less any charges for substandard ratings and riders. If the client surrenders the policy, this amount is paid out, minus any outstanding loan balance. Alternatively, the same amount may be rolled into a permanent plan of insurance should the insured be eligible for and choose to exercise the conversion option. Coverage may also be continued beyond the level premium period by payment of increasing annual premiums, and the policy will continue to build cash value until the policy anniversary nearest the insured s 95th birthday when the cash value will equal the face amount of the policy. The cash value, minus any outstanding loan balance, will then be distributed as the endowment benefit if the policy is inforce and the insured is then living. The cash value and endowment benefit are subject to all terms and conditions detailed in the policy. 2 Policy owners should consult a tax professional to determine if transaction is a taxable event. 3 The amount of paid-up life insurance and the reduced endowment amount are based on how much the cash value will buy when applied as a net single premium at the insured s age on the date of default. 4 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. These product specifications are not intended to be all-inclusive of product information. State variations may apply. Please refer to the policy for complete details. Policies issued by: American General Life Insurance Company 2727-A Allen Parkway, Houston, Texas Policy Form Number 10001; Accidental Death Benefit Rider 79002; Child Rider 79410; Terminal Illness Endorsement 91401; Waiver of Premium Rider The United States Life Insurance Company in the City of New York 70 Pine Street, New York, New York Policy Form Number 10001N; Accidental Death Benefit Rider ADB79-1E; Child Rider CI79-1E; Waiver of Premium Rider WP79-1E The underwriting risks, financial and contractual obligations and support functions associated with products issued by American General Life Insurance Company (AGL) or The United States Life Insurance Company in the City of New York (USL) are each insurer s own responsibility. USL is authorized to conduct insurance business in New York. Policies and riders not available in all states. Guarantees are subject to the claims-paying ability of the issuing insurance company. American General Life Companies, is the marketing name for the insurance companies and affiliates comprising the domestic life operations of American International Group, Inc., including AGL and USL. Important: Prior to soliciting business, be certain that you are appropriately licensed and appointed with the insurer and that the product has been approved for sale by the insurer in that state. If uncertain, contact your American General Life Companies representative for assistance. FOR PRODUCER USE ONLY NOT FOR DISSEMINATION TO THE PUBLIC All rights reserved. AGLC104158