QoL. Product Comparison Guide. QoL Index Plus II QoL Guarantee Plus QoL Performer Plus QoL Flex Term

Transcription

1 Product Comparison Guide QoL Index Plus II QoL Guarantee Plus QoL Performer Plus QoL Flex Term QoL For Financial Professional use only Not for public distribution.

2 Quality of Life Insurance Product Comparison Guide QoL Index Plus II QoL Guarantee Plus Product Design Universal Life with one or more Index Interest crediting options designed primarily for consumers and business owners with multiple objectives of life insurance and potential supplemental retirement income with tax-preferred distributions using Preferred Standard Loans (Zero Spread Loans) or Choice Loans. Includes ABR protection. Universal Life designed primarily to provide a guaranteed death benefit. Established Baby Boomers (ages 48-65) that have funded their retirement and 401Ks may desire the attractiveness of affordable premium and guaranteed death benefit life insurance. May be quoted with single or limited pay scenarios, including guaranteed death benefit to the age desired by the applicant. Includes ABR protection. POLICY FEATURES Issue Ages Issue Amounts $50,000 and up $50,000 and up Death Benefit Options Guaranteed Death Benefit* Protected Money Level (Option A) Increasing (Option B) Yes - with the optional Extended Guarantee which provides a guaranteed death benefit to the lesser of 25 years or age 80. Yes, for the first 5 years all money from all sources (except credits from term conversions) above the monthly required Benchmark Premium are Protected from the application of surrender charges and premium expense charges. Level (Option A) Only Guarantee to up to age 121 No Maturity Age 121 Age 121 Premium Payment Options ABC: Monthly, Q, S/A, A and ABC-W. PNO: Q, S/A and A. Salary Savings, Payroll Deduction and GA ABC: Monthly, Q, S/A, A and ABC-W. PNO: Q, S/A and A. Salary Savings, Payroll Deduction and GA UNDERWRITING Underwriting Class Preferred Non-Tobacco (Face amount $100,000 and above) Standard Non-Tobacco Preferred Tobacco Standard Tobacco Substandard to Table P Ages may apply for Standard classes with non-med underwriting up to $99,999 face amount Ages may apply for Standard classes with non-med underwriting up to $49,999 face amount Preferred Non-Tobacco (Face amount $100,000 and above) Standard Non-Tobacco Preferred Tobacco Standard Tobacco Substandard to Table P Ages may apply for Standard classes with non-med underwriting up to $99,999 face amount Ages may apply for Standard classes with non-med underwriting up to $49,999 face amount CHANGES Increases In Death Benefit Minimum increase $10,000 No Decreases In Coverage To the policy minimum To the policy minimum Increases Subject To A New Surrender Charge Yes, a new schedule of surrender charges and monthly expense charges will apply to the increase *Guarantees are subject to the claims-paying ability of the issuing insurer.

3 QoL Performer Plus QoL Flex Term Universal Life designed primarily for more established Generation Xers (ages 31-47) and Ys (ages 22-30) younger Baby Boomers (ages 48-65) seeking to accomplish multiple insurance objectives while having ABR protection with one policy. An attractive choice for cost-conscious consumers who require a modest premium, temporary protection, and living benefits. A competitively priced Term Life Insurance policy with 22 level premium durations, subject to age and tobacco usage , Max issue age varies by term duration $15,000 and up Level (Option A) Increasing (Option B) Yes - with the optional Extended Guarantee which provides a guaranteed death benefit to the lesser of 25 years or age 80. Ages 0-19: $50,000 and up Ages 20 and over: $100,000 and up Level Only Yes - up to term duration Yes, for the first 5 years all money from all sources (except credits from term conversions) above the monthly required Benchmark Premium are "Protected" from the application of surrender charges and premium expense charges. Age 121 Expiration date age 95 ABC: Monthly, Q, S/A, A and ABC-W. PNO: Q, S/A and A. monthly, for amounts less than $50,000. Salary Savings, Payroll Deduction and GA ABC: Monthly, Q, S/A, A and ABC-W. PNO: Q, S/A and A. Salary Savings, Payroll Deduction and GA. Preferred Non-Tobacco (Face amount $100,000 and above) Standard Non-Tobacco Preferred Tobacco Standard Tobacco Substandard to Table P Ages may apply for Standard classes with non-med underwriting up to $99,999 face amount Ages may apply for Standard classes with non-med underwriting up to $49,999 face amount Preferred Plus Preferred Non-Tobacco Standard Plus Standard Non-Tobacco Preferred Tobacco Standard Tobacco Substandard to Table H Ages may apply for Standard classes with non-med underwriting up to $99,999 face amount Ages may apply for Standard classes with non-med underwriting up to $49,999 face amount Minimum increase $10,000 To the policy minimum No, increases are subject to a one year expense charge, and will cause a new layer of Monthly Expense Charges at the attained age, underwriting, and band of the increase. FOR FINANCIAL PROFESSIONAL USE ONLY NOT FOR PUBLIC DISTRIBUTION.

4 QoL Index Plus II QoL Guarantee Plus CREDITING RATES Guaranteed Crediting Rate Current Crediting Rate* (These illustrated rates are subject to change) Current Interest Crediting Rate Bonus (Subject to change) Declared Account 2%, Index Interest Accounts.25% Declared Account 3.25%, Index Cap Account 6.62% Participation Rate Account 6.62% Note: subject to the performance of the S&P 500 2% 2% PREMIUM Monthly Guarantee Premium (MGP), Grace Period Processing 5 Years (MGP) Extended Guarantee up to Age 85 The Policy will not enter the Grace Period if both tests are satisfied: (1) MGPs due have been paid, and (2) Accumulation Value is sufficient to provide for the next monthly deduction As long as the CG Account Value is equal to or greater than zero, the policy will not enter grace period processing. Benchmark Premium Maximum, Commissionable Premium, Determines the amount of Protected Money Maximum, Commissionable Premium Monthly Admin Fee* $7.50 Guaranteed $5.00 Current $20.00 Guaranteed $7.70 Current POLICY FEES Premium Payment Fee, Premium Expense Charge* 17.25% Guaranteed Policy Years 1-5: 15% Current Policy Years 6+: 7% Current 10% Guaranteed 7.5% Current Monthly Expense Charge First 5 Policy Years Lifetime Policy Fee $72.60 Annual Cost Of Insurance The Cost of Insurance is banded as follows: Band 1: $50,000 to $99,999 Band 2: $100,000 to $249,999 Band 3: $250,000+ The Cost of Insurance is banded as follows: $50,000 - $99,999 $100,000 and up* Surrender Charge Period 14 Years 19 Years Standard Loans Yes, 8% annual interest rate. Amount of loan balance portion of Accumulation Value credited at the guaranteed rate 2% Yes, 8% annual interest rate. Amount of loan balance portion of Accumulation Value credited interest at the guaranteed rate 2% LOAN PROVISIONS Preferred Standard Loans Choice Loans Yes, available after the 10 th policy year. Interest on a preferred loan accrues at an annual rate of 2%. The portion of the Accumulation Value equal to the preferred loan will be credited interest at an annual rate of 2% (Zero Spread Loans) Yes, starting in the 4th policy year. When a Choice Loan is made, the amount of the loan will not be removed from the accounts and will still be eligible for indexed or excess interest. 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%. 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. Yes, available after the 10 th policy year. Preferred loans receive a higher crediting rate than the rate used to credit other policy loans Overloan Protection Yes No *As of August 28, 2015

5 QoL Performer Plus QoL Flex Term 4% first 5 years, 2.25% thereafter 4.25% on amounts of $15,000-$24, % on amounts of $25,000-$99, % on amounts of $100,000 & greater An additional.125% is added to the current rate in the 6th and subsequent policy years and an additional.125% is added at the beginning of the 11th and subsequent policy years 5 Years (MGP) As long as the MGP is paid through the 5 Year MGP and no loans or withdrawals are made, the policy will not enter Grace Period Processing Maximum, Commissionable Premium, Determines the amount of Protected Money $7.50 Guaranteed $5.00 Current 17.25% Guaranteed (all amounts, all years) 17.25%, Current on amounts of $15,000-$24,999, years %, Current on amounts of $15,000-$24,999, years %, Current on amounts of $15,000-$24,999, years %, Current on amounts of $25,000 and up, years %, Current on amounts of $25,000 and up, years %, Current on amounts of $25,000 and up, years 11+ First 5 Policy Years $6.05 per month $72.60 Annual The Cost of Insurance is banded as follows: $15,000-$24,999 $25,000-$99,999 $100,000-$249,999 $250,000 and up $75.00 Annual 19 Years Yes, 8% annual interest rate. Amount of loan balance portion of Accumulation Value credited interest at the guaranteed rate of 4% for the first 5 Policy Years, then 2.25% thereafter Yes, available after the 10 th policy year. Interest accrues at an annual rate of 2.25%. The portion of the accumulation value equal to the preferred loan will be credited at 2.25%. (Zero spread loan) Yes FOR FINANCIAL PROFESSIONAL USE ONLY NOT FOR PUBLIC DISTRIBUTION.

6 QoL Index Plus II QoL Guarantee Plus Policy Riders (See Rider Definitions Below) ABR, ADB, AIO, AIR, CTR, MER, MGPR, Overloan Protection Rider, WMDR, WSPR ABR, ADB, CTR, DIR, MER, WSPR Select Choice ABR Yes, Qualifying Critical, Chronic, Terminal Illness Yes, Qualifying Critical, Chronic, Terminal Illness CustomerChoice SM Lifestyle Income Solution Issue Ages Policy must be inforce for 15 years and paid up to age 100 before benefits begin. Additional Insured Rider (AIR) $15,000 and up for non-preferred, $100,000 for preferred, not to exceed base life insurance Accidental Death Rider (ADB) Yes Yes Monthly Guarantee Premium Rider (MGPR) Yes. The rider (MGPR) provides a no-lapse guarantee to extend the guarantee of the policy to the lesser of 25 years or to age 80, not to be less than 5 years for policies on Option A with issue ages less than or equal to 74. The MGPR is not available on Option B policies or on issue ages greater than 74. The no-lapse period begins on the Date of Issue and continues to the first policy anniversary on or following the lesser of 25 years or to age 80 not to be less than 5 years. This rider is automatically available for policies that fit within the limitations outlined above at no cost. RIDERS Childrens Term Rider (CTR) $5,000 - $25,000, not to exceed base insured, convertible at any time. May be converted up to 2X CTR if the conversion is received within 31 days of the child s 25 th birthday, the child s marriage or death of the base insured. May be added to a base insured age 60 and younger $5,000 - $25,000, not to exceed base insured, convertible at any time. May be converted up to 2X CTR if the conversion is received within 31 days of the child s 25 th birthday, the child s marriage or death of the base insured. May be added to a base insured age 60 and younger Disability Income Rider (DIR) No Yes Waiver Of Monthly Deduction Rider (WMDR) Yes. Waives the MGP during the MGPP, after the MGPP waives all COIs, fees, expense charges, etc. Waiver Of Specified Premium Rider (WSPR) Waives - 1/12 th of the annualized planned periodic premium at issue, but not less than $10, or the monthly Benchmark premium or an amount up to $2,000 Waives - 1/12 th of the annualized planned periodic premium at issue, but not less than $10, or the monthly Benchmark premium or an amount up to $2,000 Maturity Extension Rider (MER) Provides the option to leave the death benefit with the company if the insured is living on the maturity date (insureds age 121) Provides the option to leave the death benefit with the company if the insured is living on the maturity date (insureds age 121) Additional Insurance Option Rider (AIO) 25, 50 or 100% of the insured s life insurance, subject to a maximum of $100,000

7 QoL Performer Plus QoL Flex Term ABR, MGPR, ADB, AIO, AIR, CTR, MER, WMDR, or WSPR CTR, PW, ABR Yes, Qualifying Critical, Chronic, Terminal Illness Yes, Qualifying Critical, Chronic, Terminal Illness $15,000 and up for non-preferred, 100K for preferred, not to exceed base life insurance Yes Yes. The rider (MGPR) provides a no-lapse guarantee to extend the guarantee of the policy to the lesser of 25 years or to age 80, not to be less than 5 years for policies on Option A with issue ages less than or equal to 74. The MGPR is not available on Option B policies or on issue ages greater than 74. The no-lapse period begins on the Date of Issue and continues to the first policy anniversary on or following the lesser of 25 years or to age 80 not to be less than 5 years. This rider is automatically available for policies that fit within the limitations outlined above at no cost. $5,000 - $25,000, not to exceed base insured, convertible at any time. May be converted up to 2X CTR if the conversion is received within 31 days of the child s 25 th birthday, the child s marriage or death of the base insured. May be added to a base insured age 60 and younger $5,000 - $25,000, not to exceed base insured, convertible at any time. May be converted up to 2X CTR if the conversion is received within 31 days of the child s 25th birthday, the child s marriage or death of the base insured. May be added to a base insured age 60 and younger. No Waives the MGP during the MGPP, after the MGPP waives all COIs, fees, expense charges, etc. Waives - 1/12 th of the annualized planned periodic premium at issue, but not less than $10, or the monthly Benchmark premium or an amount up to $2,000 Waives the premium in the event the insured becomes totally disabled. The premiums to be waived are those that come due after the insured has been totally disabled for 6 months. Any premiums paid during the 6 month total disability period will be refunded. Provides the option to leave the death benefit with the company if the insured is living on the maturity date (insured s age 121) 25, 50 or 100% of the insured s life insurance, subject to a maximum of $100,000 FOR FINANCIAL PROFESSIONAL USE ONLY NOT FOR PUBLIC DISTRIBUTION.

8 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. Benefits payable under an accelerated benefit rider may be taxable. If so, you may incur a tax obligation. 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. 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. There may be an additional charge for each rider selected. See the rider for details regarding the benefit descriptions, limitations, charges and exclusions AIG. All rights reserved. 8532G-PP REV0915 FOR FINANCIAL PROFESSIONAL USE ONLY NOT FOR PUBLIC DISTRIBUTION.