Variable Annuity POLARIS. Offering Optional Income Protection Features FOR THOSE WHO WANT MORE

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1 Polaris Variable Annuity POLARIS FOR THOSE WHO WANT MORE Offering Optional Income Protection Features

2 WHEN YOUR GOALS ARE Performance Protection Strength Polaris Variable Annuity This material must not be used without a Polaris product summary brochure. Polaris Variable Annuities are sold by prospectus only. The prospectus contains the investment objectives, risks, fees, charges, expenses and other information regarding the contract and underlying funds, which should be considered carefully before investing. Please contact your insurance-licensed financial advisor or call to obtain a prospectus. Please read the prospectus carefully before investing. A Polaris Variable Annuity is a long-term investment that combines growth potential, protection features for your family and optional retirement income choices. It can help you while you are building assets in the accumulation phase and when you are ready to draw upon those assets during the income phase. Annuities are insurance products whose gains accumulate tax-deferred and are taxed as ordinary income when withdrawn. Withdrawals of taxable amounts are subject to ordinary income tax and if taken before age 59½, an additional 10% federal tax may apply. Contract and optional benefit guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. Polaris Variable Annuities are issued by American General Life Insurance Company (American General Life) except in New York, where they are issued by The United States Life Insurance Company in the City of New York (US Life). 2 Not FDIC or NCUA/NCUSIF Insured May Lose Value No Bank or Credit Union Guarantee Not a Deposit Not Insured by any Federal Government Agency

3 Polaris VARIABLE ANNUITY It all begins with you. Planning today for the comfortable retirement you want tomorrow usually starts with these three priorities: 1 Plan for a long retirement 2 Maintain your lifestyle 3 Participate in market gains, while helping to reduce risk Address all three, and you may have the foundation for a solid retirement plan. Sound overwhelming? It doesn t have to be. A Polaris Variable Annuity can help you secure lifetime income for your retirement wherever it takes you. With Polaris, you and your insurance-licensed financial advisor can design a customized income solution for a portion of your retirement portfolio. CONTENTS RETIREMENT PRIORITIES 2 POLARIS INCOME PLUS DAILY SM 8 POLARIS INCOME PLUS 19 POLARIS INCOME BUILDER 26 FAMILY PROTECTION 35 1

4 Today s Priorities for Retirement 1 Plan for a long retirement 2 Maintain your lifestyle Retirement may last longer than you think. With many Americans retiring in their early 60s, it s easy to see how retirement can last for 30 years or more. Consider the probability of how long a couple, both age 65, may live: 50% chance that at least one spouse will live to age 93 25% chance that one spouse will live to age 97 With inflation, retirement may also cost more than you think. Over the past 80 years, inflation has averaged about 3.62% annually. And while that may not seem like a lot, over time, the impact of even moderate inflation can be dramatic. Assuming the same rate of inflation experienced over the past 30 years approximately 2.6% potential expenses could more than double over the next 30 years! Hypothetical expenses Source: Society of Actuaries 2012 Individual Annuitant Mortality Tables. Assumes a couple, both age 65. $60,000 $129,970 (if history repeats itself) Source: Wilshire Compass,

5 Polaris VARIABLE ANNUITY 3 Participate in potential gains, while reducing downside risk Stocks historically have outperformed other types of investments over long periods of time. Of course, past performance is not a guarantee of future performance. Growth of a $1 Investment, $19 While the long-term trend of the stock market has been positive, there have been periods of significant price declines, such as the market downturn in 2008, which can come at the wrong time for your retirement. Market volatility is to be expected over time. That s why it s important to look for ways to reduce downside risk. Stock Market Volatility Since /2/ /31/2015 $7 Dips (5% or more) Corrections (10% or more) Bear Markets (20% or more) $ per year per year 32 Once every 3.6 years 3 T-Bills Bonds Stocks Your financial advisor can help you address today s retirement priorities as you plan for your retirement. The chart above is hypothetical and for illustrative purposes only and does not represent any particular investment. Performance illustrated is not indicative of future results. Performance for specific investments is available from your financial advisor. Your financial advisor can help you determine what type of investments may be appropriate for you. 1 Source: Wilshire Compass, T-Bills are represented by the T-Bill Index. Bonds are represented by the US Core Bond Index. Stocks are represented by the US Large Cap Core Stocks Index. The T-Bill Index, US Core Bond Index and the US Large Cap Core Stocks Index are a proxy of the treasury bill market, bond market and equity market. The indices have been constructed by Wilshire with data from various sources to provide a historical track record. T-Bills and government bonds are subject to interest rate risk, but they are backed by the full faith and credit of the U.S. Government if held to maturity. The repayment of principal and interest of a corporate bond is guaranteed by the issuing company, and subject to default, credit and interest rate risk. Stocks are subject to risk, including stock market fluctuation. Keep in mind, you cannot invest directly in an index; indexes are unmanaged. 2 Source: Ned Davis Research, Inc., based on Dow Jones Industrial Average, daily closes. 3 Average for period shown. 3

6 Key Questions to Consider How will your income needs change in retirement? When it comes to planning for retirement income, it s often assumed that expenses will remain the same throughout retirement or possibly even rise due to inflation. However, research shows that overall expenditures actually decline throughout retirement, so you may need the most income early in retirement and less later on. As you can see illustrated in this table, total expenditures for those age 75+ are 35% less than those age Total annual expenditures by age Annual Spending Age $58,781 Age $49,477 Age 75+ $38,123 % Change Apparel & Services $1,596 $1,331 $698-56% Entertainment 3,323 3,005 1,728-48% Food & Alcohol 7,566 6,665 4,805-36% Healthcare 5,112 5,715 5, % Housing 18,188 16,465 14,253-22% Transportation 10,024 8,028 5,228-48% Miscellaneous & Other 5,308 4,582 4,172-21% Personal Insurance & Other 7,664 3,686 1,425-81% Total Expenditures $58,781 $49,477 $38,123-35% Source: U.S. Department of Labor, Bureau of Labor Statistics, Consumer Expenditure Survey, August

7 Polaris VARIABLE ANNUITY What if you retire at the wrong time? When planning for your retirement income, it s important to consider the order in which you encounter positive and negative investment returns, also known as the sequence of returns. During the accumulation years, when income is not being withdrawn, the sequence of returns has no impact on ending values over time. For example, if an investor with a $100,000 investment earned an average return of 4.9% * over an accumulation period of 10 years, it makes no difference whether strong returns or negative returns are encountered early on. The ending value would be $140,146 in either case. However, once you begin taking withdrawals from your investment, the sequence of returns can have a long lasting impact on one s ability to draw income down the road. In the example below, the average return over ten years for both investors is 4.9%. * But when $5,000 is withdrawn each year from an initial investment of $100,000, the investor who experienced negative returns in the early years of retirement was left with $58,419 after 10 years. That s $38,631 or 40% less than the investor who encountered strong returns in the early years of retirement and had $97,050 after 10 years. The Sequence of Returns Matters Year Investor A: Experiences Early Gains Investor B: Experiences Early Losses Return $100,000 Withdrawal Return $100,000 Withdrawal 1 27% $122,000 $5,000 2% $97,000 $5, % $136,520 $5,000-29% $63,870 $5, % $160,189 $5,000-14% $49,928 $5, % $139,170 $5,000 17% $53,416 $5, % $145,304 $5,000 11% $54,292 $5, % $156,287 $5,000 8% $53,635 $5, % $177,856 $5,000-10% $43,272 $5, % $147,956 $5,000 21% $47,359 $5, % $100,049 $5,000 16% $49,936 $5, % $97,050 $5,000 27% $58,419 $5,000 Average Return 4.9%* Average Return 4.9%* *Note: Return shown is the arithmetic average return. The above illustrations are hypothetical. They are not intended to be indicative of the performance of a specific investment option. The examples above do not take into consideration any annual fees or taxes, which if shown, would lower results illustrated. Performance illustrated is not indicative of future results. 5

8 Protect Your Retirement Income Choose an optional income protection feature If you re concerned about market volatility impacting your retirement income, consider an optional income protection feature. Polaris offers you a choice of income protection features that are available for an additional annual fee and designed to help you grow and protect your retirement income. Polaris Income Plus Daily SM offers you the opportunity to capture potential investment gains each day for future retirement income. Polaris Income Plus and Polaris Income Builder offer you the opportunity to capture potential investment gains annually for future income, with the opportunity to receive an income credit to your Income Base for future income while you re accumulating money for retirement. With Polaris Income Plus, you may also have the opportunity to receive a partial income credit after withdrawals begin. Regardless of which income protection feature you choose, you can count on income that s protected from market volatility and guaranteed to last for as long as you or you and your spouse live, depending your choice of a Single Life or Joint Life income option. Polaris income protection features must be elected at the time of purchase and, once elected, may not be changed. You may choose only one income protection feature. If you elect an income protection feature, certain investment requirements apply. As an alternative to an optional income protection feature, you can annuitize your contract and receive income payments for life at no additional cost. Contract and optional benefit guarantees are backed by the claims-paying ability of the issuing insurance company. Will you outlive your retirement assets? Polaris offers you a choice of income protection features to help you secure a stream of guaranteed lifetime income. 6

9 Polaris VARIABLE ANNUITY Polaris Variable Annuity Optional Income Protection Feature Comparison If you are considering an income protection feature with a Polaris Variable Annuity, please review the table below for an overview of the key differences and similarities. Please see the sections that follow and a prospectus for a complete discussion of each of these features, including a definition of key terms and restrictions and limitations. SM Polaris Income Plus Daily Polaris Income Plus Polaris Income Builder Issue Ages Feature Overview Income Base Step-up Frequency Opportunity to lock in to the Income Base daily investment gains for guaranteed lifetime income Daily Note: After first withdrawal, captures highest daily step-up values on contract anniversary Opportunity to lock in to the Income Base greater of annual investment gains or an Income Credit for guaranteed lifetime income Annual on contract anniversary Opportunity to lock in to the Income Base greater of annual investment gains or an Income Credit for guaranteed lifetime income Annual on contract anniversary Income Credit ( Available during income credit period in years Not available 6% 5% withdrawals are not taken) Partial Income Credit Not available Available during income credit period in years withdrawals are taken that in total are less than 6% Not available of the Income Base and within the parameters of the income option elected Income Credit Period Not available First 12 contract years First 12 contract years Doubling of Income Base Available Income Options Available Investment Options Not available Income Base doubles when no withdrawals are taken during the first 12 contract years Income Base doubles when no withdrawals are taken during the first 12 contract years 3 Income Options 3 Income Options 1 Income Option Four Asset Allocation Models 26 Individual Portfolios 10% Allocation to Secure Value Account required Volatility Control Portfolios Specified Bond Portfolios 10% Allocation to Secure Value Account required Volatility Control Portfolios Specified Bond Portfolios 10% Allocation to Secure Value Account required Initial Fee Rate* ( Calculated as a percentage of Income Base. Guaranteed for first year.) 1.10% (Single Life) 1.35% (Joint Life) 1.10% (Single Life) 1.35% (Joint Life) 1.10% (Single Life) 1.35% (Joint Life) * The fee rate is guaranteed for one year. After that time, it will be adjusted quarterly and may decrease or increase based on a predetermined, non-discretionary formula. Guarantees are backed by the claims-paying ability of the issuing insurance company. 7

10 Secure lifetime income for retirement with Polaris Income Plus DailySM Looking to participate in the long-term growth potential of the market? Polaris Income Plus Daily offers you powerful growth and protection opportunities for your retirement income: Lock in potential investment gains to your Income Base daily. Before you take your first withdrawal, your Income Base automatically steps up every time your daily contract value is higher than your current Income Base. (This is referred to as your Step-up Value.) After you begin taking withdrawals, your Income Base can continue to step up on each contract anniversary to lock in your highest daily value during the prior contract year.* The Income Base is the amount on which guaranteed withdrawals and the annual fee for the feature are based. It is not the same as your contract value; it is not a liquidation value nor is it available as a lump sum. Take advantage of annual withdrawal rates as high as 7% at age 65. An even higher withdrawal rate is available at older ages. Income Plus Daily offers you a choice of three income options. With certain income options, the amount available for lifetime income is reduced if your contract value is completely depleted due to market volatility, deduction of fees and/or withdrawals taken within the feature s parameters. See page 17 for more information about the available income options. Secure income that s guaranteed to last. With a choice of Single Life and Joint Life income options, you can secure guaranteed lifetime income for as long as you or you and your spouse live. To realize the feature s full benefits, withdrawals must be taken within certain parameters. Withdrawals that exceed the feature s parameters are known as excess withdrawals. There is no assurance that withdrawal amounts will keep up with inflation. Withdrawals of taxable amounts are subject to ordinary income tax and, if taken prior to age 59½, an additional 10% federal tax may apply. Withdrawals may be subject to withdrawal charges if they exceed certain parameters. Minimum issue age for this feature is 45; maximum issue age is 80. * If you take an excess withdrawal, Income Plus Daily locks in the highest daily value since the time of your excess withdrawal on your next contract anniversary. 8 Terms used in this section and important information Step-up Value: This is a value used to determine the Income Base. It is equal to the current contract value if the contract value is higher than the current Income Base. The Step-up Value (if any) is redetermined each day. Income Base: The amount on which guaranteed withdrawals and the annual fee for the feature are based. It is not a liquidation value nor is it available as a lump sum. The Income Base is initially equal to the first purchase payment. We will not accept purchase payments on or after the first contract anniversary if an income protection feature is elected. If no withdrawals have been taken from the contract, the Income Base is increased daily to the Step-up Value (if any). After the first withdrawal has been taken, the Income Base is increased on the next contract anniversary looking back to the Step-Up Value (if any) on each day since the first withdrawal. (This is referred to as the first look-back. ) After the first look-back, the Income Base is increased on each contract anniversary looking back to the Step-Up Value on each day since the last contract anniversary. If the contract value has been reduced to zero, the Income Base will no longer be recalculated. The Income Base will be increased each time a purchase payment is made during the first contract year. The Income Base will be adjusted for excess withdrawals. Guarantees are backed by the claims-paying ability of the issuing insurance company.

11 Polaris INCOME PLUS DAILY Lock in your highest daily value for future income With daily step-ups, you have the opportunity to capture investment gains for future retirement income every day. Prior to your first withdrawal, your Income Base automatically steps up daily if the current contract value is higher than your current Income Base. When the Income Base steps up, it locks in your Step-up Value for future income purposes. You will have the confidence of knowing that your Income Base is protected from market volatility and will not go down, provided you take withdrawals within the feature s parameters. (Of course, your contract value will continue to go up and down based on investment performance.) Before withdrawals begin ACCUMULATION Your Income Base can automatically step up daily Locks in new Income Base when the daily contract value is higher than your current Income Base Income Base Daily Contract Value Over 1 Year New Income Base Assumptions for hypothetical illustrations shown here and on the next page: Hypothetical illustrations are not to scale and are intended solely to depict how Polaris Income Plus Daily can work. The Accumulation example assumes no withdrawals are taken during the period illustrated. Hypothetical contract value assumes an initial purchase payment at contract issue and no additional purchase payments. Illustrations do not reflect the actual performance of any particular investment. For more information about Polaris Variable Annuity performance, please ask your financial advisor. This feature can offer you income protection for different types of markets. In a rising market, it may offer you the benefit of a step-up to your Income Base. In a flat, declining or extended down market, you may not receive the benefit of a step-up, but your Income Base will remain protected for guaranteed lifetime income. Depending on investment performance and your income needs, you may not need to rely on this optional insurance feature, which is available at contract issue for an additional initial fee rate of 1.10% of the Income Base (Single Life) or 1.35% (Joint Life). The fee rate is guaranteed for one year. After that time, it will be adjusted quarterly and may decrease or increase based on a predetermined, non-discretionary formula. If the Income Base is increased, it may have the effect of increasing the dollar amount of the feature s fee. Please see the prospectus for details regarding minimum and maximum fees, age restrictions and other limitations. 9

12 Polaris Income Plus Daily Step-ups can continue after withdrawals begin Your Income Base can automatically increase on each contract anniversary to lock in your highest daily value for rising income. After you begin taking withdrawals, your Income Base can step up on each contract anniversary to lock in your highest Step-up Value achieved during the prior contract year.* When your Income Base increases on your contract anniversary, so does your maximum annual withdrawal amount providing you with the opportunity for even more guaranteed lifetime income. As a reminder, your Step-up Value is redetermined each day, even though the Income Base is not increased until the next contract anniversary after withdrawals begin. After withdrawals begin INCOME Locks in highest daily value on next contract anniversary Highest daily value since the first withdrawal Income Base is protected from market volatility in down markets Highest daily value during contract year tra Income Base in the year withdrawals begin First Withdrawal Taken Contract Value Value New Income Base Contract Anniversary Contract Anniversary Contract Anniversary This optional feature must be elected at the time of purchase and once elected, it may not be changed. If you elect this feature, you will need to choose from the available investment options described. * Note: On the contract anniversary that immediately follows your first withdrawal, we look back at the Step-up Value achieved since the time of your first withdrawal, if any. 10 Additional terms used in this section and important information Excess Withdrawal: Any withdrawal, or portion of a withdrawal, that exceeds the maximum annual withdrawal amount, which then reduces the Income Base. Please see Withdrawals on page 18 for more information. Required Minimum Distributions (RMDs): If your variable annuity is funding a retirement plan or account, such as an IRA, and you take a withdrawal to meet your contract s RMD and your withdrawal exceeds the feature s maximums, your Income Base will not be reduced, provided RMDs are set up on the company s systematic withdrawal program. Please see page 18 for additional information, including important information concerning withdrawals.

13 Polaris INCOME PLUS DAILY Investment flexibility and control Polaris Income Plus Daily offers you investment flexibility with a choice of investment options. You can build a customized allocation using any combination of certain portfolios, including Managed Allocation Portfolios, or you can choose a Polaris Portfolio Allocator model designed by Morningstar Investment Management LLC. With Polaris Income Plus Daily, you remain in control of your investment s allocation and you have the flexibility to change your mix of investments at any time, provided you choose from the available investment options described. Participation in quarterly automatic asset rebalancing is also required. Your initial and additional investments can be allocated as follows: 10% Secure Value Account an interest-earning fixed account with a one-year term 90% Polaris Portfolio Allocator Model (Model 1, Model 2, Model 3, or Model 4) -OR- Build Your Customized Allocation using one or any combination of portfolios listed on pages 14 and 15 You may use a Dollar Cost Averaging (DCA) fixed account to systematically invest in the investment choices available with Polaris Income Plus Daily. Your target DCA instructions must follow the investment requirements described. Amounts allocated to the Secure Value Account will not be rebalanced and are not available for transfer as long as the feature is in effect. Keep in mind, because rebalancing resets the allocation among variable portfolios, it may have a positive or negative impact on performance. The available investment options may reduce the need to rely on an income protection guarantee because they allocate your investment across asset classes and potentially limit exposure to market volatility. Of course, if you decide not to elect an optional income protection feature, you may invest in any of the investment options offered in Polaris. Please see the Polaris investments brochure to learn more. Additional information about investing in the variable portfolios While certain Polaris portfolios may be similar to other funds managed by the same investment adviser, this does not mean that a portfolio s investment results will be comparable to the investment results of other similar funds, including other funds with the same investment adviser. There may be material differences between similar funds and the Polaris portfolios, such as fees and expenses, portfolio management, portfolio holdings and the timing of cash flows. The portfolios investment results will likely differ, and may be higher or lower than the investment results of other similar funds. Money managers, with the exception of SunAmerica Asset Management, LLC, are not affiliated with American General Life, US Life or American International Group, Inc. (AIG). Portfolios that invest in stocks and bonds are subject to risk, including stock market and interest rate fluctuations. Portfolios that invest in bonds are subject to changes in their value when prevailing interest rates change. Portfolios that invest in non-u.s. stocks and bonds, including emerging market investments, are subject to additional risks such as political and social instability, differing securities regulations and accounting standards, limited public information, plus special risks that may include foreign taxation, currency risks, risks associated with possible differences in financial standards, and other monetary and political risks associated with future political and economic developments. 11

14 Polaris Income Plus Daily Choose a Polaris Portfolio Allocator Model With Polaris Income Plus Daily, you have the flexibility to choose a professionally designed asset allocation model. You may invest 90% of your investments in one of the four models: Model 1, Model 2, Model 3 or Model 4. Polaris Portfolio Allocator models automatically diversify your investment among a mix of professionally managed portfolios that cross a range of asset classes and investment styles. Polaris Portfolio Allocator models have long track records of performance. (Of course, past performance is not a guarantee of future results.) While diversification and asset allocation are both proven investment strategies, they can t guarantee greater or more consistent returns and they can t protect against loss. Keep in mind, Polaris Portfolio Allocator models are not actively managed portfolios. Model 1 50% Stocks 50% Fixed Income Model 2 60% Stocks 40% Fixed Income Model 3 70% Stocks 30% Fixed Income Model 4 90% Stocks 10% Fixed Income Lower Risk/Reward Potential Higher 12 Additional information about Polaris Portfolio Allocator Models Polaris Portfolio Allocator models are provided for educational purposes only and not intended to provide investment advice. They should not be relied upon as providing individualized investment recommendations. The models are considered static because the portfolios and percentages of contract value allocated to each portfolio within a model will not be changed by us. To maintain the target asset allocation of a model, you can elect to have your investment rebalanced quarterly, semi-annually, or annually. If you elect Polaris Income Plus Daily, quarterly automatic asset rebalancing is required. Please note that due to market returns and other factors, over time the asset allocation models may no longer align with their original investment objective. You should consult your financial advisor from time to time to review whether the model allocation you have selected is still appropriate for you. We reserve the right to change or cancel this program at any time. You may invest in only one model at a time. You may withdraw money from your model according to the provisions of your Polaris contract. Early withdrawals may be subject to withdrawal charges and an additional 10% federal tax may apply to amounts withdrawn prior to age 59½. The amount you request will be proportionately withdrawn from each of the allocations in your contract. Asset allocation models may not be appropriate if you are interested in directing your own investments. While certain Polaris portfolios may be included in a Polaris Portfolio Allocator model, this does not mean that these portfolios are superior to any other portfolio not included in a model.

15 Polaris INCOME PLUS DAILY Model 1 Model 2 Model 3 Model 4 TARGET ALLOCATION: STOCKS/FIXED INCOME 50%/50% 60%/40% 70%/30% 90%/10% SA AB Growth (AllianceBernstein L.P.) 1% 1% 1% 2% SA Janus Focused Growth 1% 1% 2% Blue Chip Growth (Massachusetts Financial Services Company) 2% 3% 4% 4% Capital Growth (The Boston Company Asset Management, LLC) 2% 3% 3% 4% SA MFS Massachusetts Investors Trust 6% 6% 7% 8% Equity Opportunities (OppenheimerFunds, Inc.) 3% 4% 4% 6% SA Legg Mason BW Large Cap Value 4% 4% 4% 5% American Funds Growth-Income SAST 4 1% 4% Invesco V.I. Comstock Fund 5% 5% 6% 8% Invesco V.I. Growth and Income Fund 6% 7% 8% 8% Growth-Income (J.P. Morgan Investment Management Inc.) 6% 7% 8% 8% Dogs of Wall Street (SunAmerica Asset Management, LLC) 3% 3% 3% 5% Small & Mid Cap Value (AllianceBernstein L.P.) 1% 1% 1% 2% Small Company Value (Franklin Advisory Services, LLC) 2% 2% 1% Capital Appreciation (Wellington Management Company LLP) 3% 3% 4% 5% Real Estate (FIAM LLC) 1% American Funds Global Growth SAST 4 2% 3% 4% 6% International Diversified Equities (Morgan Stanley Investment Management Inc.) 3% 3% 4% 5% Foreign Value (Templeton Investment Counsel, LLC) 3% 3% 3% 4% Emerging Markets (J.P. Morgan Investment Management Inc.) 1% 2% 2% Ultra Short Bond Fund (Dimensional Fund Advisors LP) 2% 1% Corporate Bond (Federated Investment Management Company) 10% 8% 7% 1% Global Bond (Goldman Sachs Asset Management International) 4% 4% 2% 2% SA JPMorgan MFS Core Bond 17% 13% 10% 5% Government and Quality Bond (Wellington Management Company LLP) 8% 8% 7% 2% Real Return (Wellington Management Company LLP) 5% 3% 2% High-Yield Bond (PineBridge Investments LLC) 4% 3% 2% Actual allocation may differ from the target allocation Morningstar Investment Management LLC. Lower Risk/Reward Higher Potential 4 The American Funds SunAmerica Series Trust ( SAST ) portfolios ( Feeder Funds ) do not invest directly in individual securities; instead they invest all of their assets in corresponding funds ( Master Funds ) of the American Funds Insurance Series. Investing in a Feeder Fund will result in higher fees and expenses than investing directly in a Master Fund. Please see the prospectus and Statement of Additional Information for more information regarding the master-feeder fund structure. Additional information about Polaris Portfolio Allocator Models The Polaris Portfolio Allocator models are designed and licensed by Morningstar Investment Management LLC. The models are provided for educational purposes only and should not be considered investment advice. Morningstar Investment Management does not endorse and/or recommend specific financial products that may be used in conjunction with the models. Please consult your financial advisor for assistance in developing a portfolio specific to your needs and objectives before investing. Morningstar Investment Management is not affiliated with AIG or any of its member companies. 13

16 Polaris Income Plus Daily Build your customized allocation As an alternative to choosing a Polaris Portfolio Allocator model, you can invest in one or any combination of portfolios described in this section, managed by these respected names. 5 Individually Managed Asset Allocation Portfolios American Funds Asset Allocation SAST Portfolio 4 Asset Allocation Asset Allocation: Diversified Growth Balanced SA BlackRock Multi-Asset Income SA MFS Total Return Strategic Multi-Asset Portfolio Actively Managed Funds-of-Funds Managed Allocation Balanced 6 Managed Allocation Moderate 6 Managed Allocation Moderate Growth 6 Managed Allocation Growth 6 Capital Research and Management Company Edge Asset Management, Inc. Putnam Investment Management, LLC J.P. Morgan Investment Management Inc. BlackRock Investment Management, LLC Massachusetts Financial Services Company Wellington Management Company LLP SunAmerica Asset Management, LLC SunAmerica Asset Management, LLC SunAmerica Asset Management, LLC SunAmerica Asset Management, LLC 14 SunAmerica Asset Management, LLC is affiliated with the insurance companies that issue Polaris Variable Annuities. 4 Remember, the American Funds SunAmerica Series Trust ( SAST ) portfolios ( Feeder Funds ) do not invest directly in individual securities; instead they invest all of their assets in corresponding funds ( Master Funds ) of the American Funds Insurance Series. Investing in a Feeder Fund will result in higher fees and expenses than investing directly in a Master Fund. Please see the prospectus and Statement of Additional Information for more information regarding the master-feeder fund structure. 5 American Funds SAST Portfolios and the VCP Managed Asset Allocation Portfolio invest in the American Funds Insurance Series, which has the same investment manager (Capital Research and Management Company) as American Funds. 6 The portfolio operating expenses for a fund-of-funds are typically higher than those of a traditional portfolio because you pay the expenses of that portfolio and indirectly pay a proportionate share of the expenses of the underlying portfolios. 7 These portfolios employ a volatility control approach that seeks to manage volatility within the portfolio, reduce the incidence of extreme outcomes (including the probability of large losses or gains), and preserve long-term return potential. As a result, a volatility control approach may provide more consistent performance with less risk from market downturns. However, the risk management strategies used by these portfolios could limit the upside participation in strong, increasing markets as compared to a portfolio without such a strategy. 8 The VCP Managed Asset Allocation SAST Portfolio ( Feeder Fund ) does not invest directly in individual securities; instead it invests in shares of the American Funds Insurance Series Managed Risk Asset Allocation Fund SM (the Master Fund ). In turn, the Master Fund invests in shares of an underlying fund, the American Funds Insurance Series Asset Allocation Fund (the Underlying Fund ), hedge instruments (primarily exchange-traded futures) and cash or cash equivalents. Investing in a Feeder Fund will result in higher fees and expenses than investing directly in a Master Fund. Please see the prospectus and Statement of Additional Information for more information regarding the master-feeder fund structure. 9 Money market instruments generally offer stability and income, but an investment in these securities, like investments in other portfolios, is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. An investment in the Goldman Sachs VIT Government Money Market Fund is subject to potential loss of principal; however, the portfolio seeks to maintain a net asset value of $1.

17 Polaris INCOME PLUS DAILY Actively Managed Funds-of-Funds with Volatility Control SunAmerica Dynamic Allocation Portfolio 6,7 SunAmerica Asset Management, LLC SunAmerica Dynamic Strategy Portfolio 6,7 Volatility Control Portfolios SA BlackRock VCP Global Multi Asset Portfolio 7 SA Schroders VCP Global Allocation Portfolio 7 SA T. Rowe Price VCP Balanced Portfolio 7 VCP Managed Asset Allocation SAST Portfolio 7,8 VCP Total Return Balanced Portfolio 7 SunAmerica Asset Management, LLC BlackRock Investment Management, LLC Schroder Investment Management North America Inc. T. Rowe Price Associates, Inc. Capital Research and Management Company Pacific Investment Management Company LLC VCP Value Portfolio 7 Invesco Advisers, Inc. Fixed Income and Money Market Portfolios Corporate Bond Federated Investment Management Company Global Bond Goldman Sachs VIT Government Money Market Fund 9 Government and Quality Bond Real Return SA JPMorgan MFS Core Bond Portfolio Ultra Short Bond Portfolio Goldman Sachs Asset Management International Goldman Sachs Asset Management, L.P. Wellington Management Company LLP Wellington Management Company LLP JP Morgan Investment Management Inc./ Massachusetts Financial Services Company Dimensional Fund Advisors LP How will you allocate your Polaris investment? Your financial advisor can help you choose a mix of investment options. 15

18 Polaris Income Plus Daily Managed Allocation Portfolios Actively Managed Funds-of-Funds As part of the Build Your Customized Allocation option, you can allocate your money to one or a combination of Managed Allocation Portfolios (MAPs). You may also invest in a MAP (or several MAPs) in combination with the individual portfolios listed on pages 14 and 15. MAPs are actively managed funds-of-funds that are invested in a variety of institutionally managed portfolios. From time to time, the manager may increase or decrease a MAP s allocation to certain asset classes. These short-term shifts in asset allocation policy may have the potential to enhance a MAP s return without dramatically changing the long-term risk profile. By investing in a MAP, you can diversify your money across asset classes, money managers and investment styles. While diversification and asset allocation are both proven investment strategies, they can t guarantee greater or more consistent returns and they can t protect against loss. Managed Allocation Balanced Managed Allocation Moderate Managed Allocation Moderate Growth Managed Allocation Growth ALLOCATION TARGETS: STOCKS/FIXED INCOME 40%/60% 55%/45% 65%/35% 80%/20% Large Cap Growth/Value 22.5% 29.5% 33.5% 38.7% Mid-Cap Growth/Value 4.1% 6.4% 7.6% 10.5% Small Cap 1.9% 3.0% 3.5% 4.9% International Equity 11.5% 16.1% 20.4% 25.9% Investment Grade Bonds 50.4% 37.6% 29.1% 16.8% High Yield Bonds 5.0% 4.1% 3.4% 2.0% Inflation-Protected Securities 4.6% 3.3% 2.5% 1.2% Actual allocation may differ from the target allocation. Lower Risk/Reward Potential Higher Allocation targets are subject to change without notice. Additional asset classes may be used. Allocation targets as of 3/31/ Additional information about Managed Allocation Portfolios (MAPs) Each Managed Allocation Portfolio is structured as a fund-of-funds, which means that it pursues its investment goal by investing in a combination of underlying portfolios rather than investing directly in stocks, bonds, cash and other investments. It is important to keep in mind that there is no assurance that any strategy or investment will achieve specific investment objectives.

19 Polaris INCOME PLUS DAILY A choice of income options Polaris Income Plus Daily offers you a choice of income options to help you secure an income stream that s right for you. At the time of purchase, you can choose Income Option 1, 2 or 3. Maximum Annual Withdrawal Amount (MAWA) (as a percentage of your Income Base) Income Option 1 Income Option 2 Income Option 3 Age at 1st Withdrawal Covered Persons MAWA PIP MAWA PIP MAWA/PIP Single Life 3.75% 2.75%* 3.75% 2.75%* 3.00% for life Joint Life 3.25% 2.75%* 3.25% 2.75%* 2.75% for life Single Life 4.75% 2.75%* 4.75% 2.75%* 3.50% for life Joint Life 4.25% 2.75%* 4.25% 2.75%* 3.25% for life Single Life 6.0% 4.0% 7.0% 3.0% 5.00% for life Joint Life 5.5% 4.0% 6.5% 3.0% 4.50% for life Single Life 6.5% 4.0% 7.5% 3.0% 5.25% for life Joint Life 6.0% 4.0% 7.0% 3.0% 4.75% for life The protected income payment (PIP) will be paid in the event the contract value is completely depleted due to market volatility, deduction of fees and/or withdrawals taken within the feature s parameters, provided the Income Base is greater then zero. The PIP is calculated as a percentage of the Income Base. * With Income Options 1 and 2, if withdrawals begin before age 65 and your Income Base increases to a new Step-up Value on a contract anniversary on or after your 65th birthday, the protected income payment will automatically increase to 4% of your Income Base. Additional terms used in this section and important information Age at time of first withdrawal: When determining the maximum annual withdrawal percentage, as well as the feature s protected income payment percentage, the age at the time of first withdrawal is based on the age of the older individual if the contract is jointly owned for the Single Life option; age of younger individual for the Joint Life option. This age criteria is also used when evaluating eligibility for an increase to the protected income payment percentage, if applicable. 17

20 Additional information about Polaris Income Plus Daily Withdrawals Annual withdrawals of up to the maximum annual withdrawal amount (MAWA) do not reduce the Income Base. If you take a withdrawal that exceeds the MAWA (known as an excess withdrawal ), your Income Base will be reduced proportionately by the amount in excess of the MAWA. If an excess withdrawal reduces the contract value to zero, the feature will terminate and you will no longer be eligible to take withdrawals or receive lifetime income payments. The amount available for withdrawals may change over time. It may increase if the Income Base increases, or decrease if you take an excess withdrawal that reduces your Income Base. If you select Income Option 1 or 2 and your contract value is completely depleted due to market volatility, deduction of fees and/or withdrawals taken within the feature s MAWA, you will receive the protected income payment as indicated on page 17. As a result, the amount available for lifetime income will decrease. If you select Income Option 3 and your contract value is completely depleted due to market volatility, deduction of fees and/or withdrawals taken within the feature s MAWA, the annual amount of lifetime income will not change; annual income paid to you after this point is simply referred to as the protected income payment. If you have elected this income protection feature, withdrawals up to the MAWA are free of withdrawal charges. Withdrawals that exceed the MAWA may be subject to a withdrawal charge. Please see the enclosed product summary brochure for the withdrawal charge schedule associated with the variable annuity you may be considering. Partial withdrawals reduce other benefits available under the contract, such as the death benefit, as well as the amount available upon surrender. Retirement Plans and Accounts If you use this contract to fund a retirement plan or account and you plan on taking Required Minimum Distributions (RMDs), please see the prospectus for more information and consult with a tax advisor concerning your particular circumstances. Keep in mind, an investment in a variable annuity within a retirement plan or account provides no additional tax-deferred benefit beyond that provided by the plan or account. This feature may not be appropriate for use with contributory IRAs (IRA, Roth and SEP) or retirement plans and accounts (401 and 457) if you plan to make ongoing contributions. Purchase payments received in the first contract year only are included in the Income Base. We will not accept purchase payments on or after the first contract anniversary if an income protection feature is elected. Latest Annuity Date If the contract value and the Income Base are greater than zero on the Latest Annuity Date (95th birthday), you will need to select one of these annuity options: 1) Annuitize the contract value under the contract s annuity provisions. 2) Annuitize the contract and receive payments equal to the MAWA at the Latest Annuity Date for a fixed period. The duration of the fixed period will be determined by dividing the contract value at the Latest Annuity Date by the current MAWA. As long as the covered person(s) is living, this amount will continue for the specified period after which time the protected income payment amount will be paid until the death(s) of the covered person(s). 3) Elect any payment option that is mutually agreeable between you and the issuing insurance company. Please see a prospectus for details. Cancellation This feature may be cancelled on the 5th contract anniversary or any contract quarter anniversary after that. Amounts allocated to the Secure Value Account (SVA) will be automatically transferred to the 1-year fixed account, if available. If the 1-year fixed account is not available, the amounts will be transferred to the Goldman Sachs VIT Government Money Market Fund. Once the cancellation becomes effective, the associated fee will no longer be charged going forward. This feature cannot be re-elected following cancellation. Other Considerations When the Income Base is increased, it may have the effect of increasing the dollar amount of the fee. When the Income Base is decreased due to excess withdrawals, it may have the effect of reducing the dollar amount of the fee. Joint Life option: In the event of a death, spousal continuation of the contract must be elected to provide guaranteed income for the lifetime of the remaining spouse. The fee for the Joint Life option will continue to be charged. The Joint Life option will automatically be cancelled if a death benefit is paid and the contract is not continued by the spouse, or if the surviving original spouse dies. The Single Life option will automatically be cancelled if a death benefit is paid or if the covered person dies. Please see the prospectus for information about what happens in the event of divorce or other changes affecting the contract owners or beneficiaries. If you decide not to take withdrawals under this feature, or you surrender the contract, you will not receive the benefit of the feature. You may pay for the added assurance of this feature and not need to use it. Fees are non-refundable. This feature may be automatically terminated under certain circumstances, such as when the contract is annuitized or surrendered. Other circumstances may also apply. Please see the prospectus for complete details, including limitations and restrictions. 18

21 Secure lifetime income for retirement with Polaris Income Plus Polaris Income Plus offers: The opportunity for rising income. Income Plus locks in to your Income Base the greater of your investment gains or an annual income credit of up to 6% (calculated as a percentage of your Income Credit Base) on each contract anniversary during the first 12 contract years (called the income credit period ). The Income Base is the amount on which guaranteed withdrawals and the feature s annual fee are based. The full 6% income credit is available in years withdrawals are not taken. A partial income credit is available during the first 12 contract years provided withdrawals are less than 6%, do not exceed the maximum annual withdrawal amount, and contract value remains. An Income Base that can double after 12 years. On the 12th contract anniversary, if you have not taken any withdrawals during the first 12 contract years, your Income Base is guaranteed to be at least 200% of your purchase payments received in the first contract year. This is referred to as the Minimum Income Base. Income that can continue to rise with the market. After the first 12 contract years, income credits are no longer available. However, your income will continue to have the opportunity to increase from investment gains on contract anniversaries, provided contract value remains. Please see the prospectus for complete details. If you elect this feature, the investment requirements described on page 28 will apply. Depending on investment performance and your income needs, you may not need to rely on this optional insurance feature, which is available at contract issue for an additional initial fee rate of 1.10% of the Income Base (Single Life) or 1.35% (Joint Life). The fee rate is guaranteed for one year. After that time, it will be adjusted quarterly and may decrease or increase based on a predetermined, non-discretionary formula. The minimum issue age for this feature is 45 and the maximum issue age is 80. Please see the prospectus for details regarding minimum and maximum fees, age restrictions and other limitations. Is your retirement income protected against market volatility? To help protect against the unexpected, you insure what s important to you whether it s your home, your car or even your life. Shouldn t you consider doing the same with your retirement income? 19

22 Polaris Income Plus While you re accumulating money for retirement Polaris Income Plus is designed to offer you the potential for more retirement income by locking into your Income Base the greater of an annual income credit or investment gains during the first 12 contract years. ACCUMULATION A 6% income credit for up to 12 years A full 6% income credit is available on each contract anniversary during the first 12 contract years, in years that withdrawals are not taken. This ensures a rising Income Base for future income no matter how the market performs. Income Base Locks in an annual 6% income credit Contract Value Age Income credit Assumed age at contract issue: 60 Important information about the hypothetical illustrations shown Hypothetical illustrations are not to scale and are intended solely to depict how Polaris Income Plus can work. The Accumulation Phase examples assume no withdrawals are taken during the period illustrated. Annual market returns illustrated are hypothetical. Hypothetical contract value assumes an initial purchase payment at contract issue and no additional purchase payments. Illustrations do not reflect the actual performance of any particular investment. For more information about Polaris Variable Annuity performance, please ask your financial advisor. 20 Terms used in this section Income Base: The amount on which guaranteed withdrawals and the annual fee for the feature are based. It is not a liquidation value nor is it available as a lump sum. The Income Base is initially equal to the first purchase payment. Purchase payments received in the first contract year only will be included in the Income Base. We will not accept purchase payments on or after the first contract anniversary if an income protection feature is elected. On each contract anniversary, the Income Base is set to equal the greater of (a) the highest anniversary value, or (b) the Income Base plus the income credit amount (if eligible) during the income credit period. The Income Base is automatically evaluated on contract anniversaries while the contract value is greater than zero and the feature is still in effect, provided you have not reached the Latest Annuity Date (95th birthday). On the 12th contract anniversary, the Income Base may be increased to the Minimum Income Base (200% of purchase payments received in the first contract year) if no withdrawals have been taken from the contract. The Income Base will be increased each time a purchase payment is made during the first contract year. The Income Base will be adjusted for excess withdrawals. Income Credit: The amount that may be added to your Income Base, calculated as a percentage of your Income Credit Base.

23 Polaris INCOME PLUS ACCUMULATION An Income Base that automatically increases On each contract anniversary during the first 12 contract years, the Income Base increases from the greater of investment gains or a 6% income credit. When the Income Base increases from investment gains, the Income Credit Base is also increased to this amount, which in turn increases the amount of the 6% income credit available in future years. Income Base Income credit Locks in greater of investment gains or a 6% income credit Age Assumed age at contract issue: 60 Investment gains Contract Value ACCUMULATION An Income Base that can DOUBLE after 12 years On the 12th contract anniversary, if you have not taken any withdrawals during the first 12 contract years, your Income Base is guaranteed to be at least 200% of your purchase payments received in the first contract year regardless of market performance. This is referred to as the Minimum Income Base. Income Base doubles on 12th contract anniversary Income Base Contract Value Age Assumed age at contract issue: 53 Income credit Income Credit Base: A component of the feature that is used to calculate the income credit. Initially, the Income Credit Base is equal to the first purchase payment. If the Income Base steps up to your highest anniversary value on a contract anniversary, your Income Credit Base will also step up to this amount. Please note that the Income Credit Base is not increased if your Income Base steps up due to the addition of the income credit. The Income Credit Base will be increased each time a purchase payment is made during the first contract year. The Income Credit Base will be adjusted for excess withdrawals. Income Credit Period: The period of time over which an income credit may be added to the Income Base. It begins on the contract issue date and ends 12 years later. Note: If you use this contract to fund a retirement plan or account and plan on taking Required Minimum Distributions (RMDs) during the first 12 contract years, you will not be eligible for the Minimum Income Base if any withdrawals are taken prior to the 12th contract anniversary. 21

24 Polaris Income Plus When you re ready to take income Once you begin taking withdrawals for retirement income, Polaris Income Plus offers you valuable protection from market declines, along with the opportunity for growth. INCOME An Income Base protected from market volatility Your withdrawals are calculated as a percentage of the Income Base, an amount that is protected for life for income no matter how the market performs. Keep in mind, the Income Base is not the same as your contract value. The Income Base is not a liquidation value, nor is it available as a lump sum. Downside protection at all times Income Base Contract Value Age Assumed age at contract issue: 65 To realize the benefits of Income Plus, you will need to take withdrawals within the parameters of the feature and income option elected. Withdrawals that exceed the feature s parameters are known as excess withdrawals. There is no assurance that withdrawal amounts will keep up with inflation. Withdrawals of taxable amounts are subject to ordinary income tax and, if taken prior to age 59½, an additional 10% federal tax may apply. Withdrawals may be subject to withdrawal charges if they exceed certain parameters. 22 Additional terms used in this section and important information Excess Withdrawal: Any withdrawal, or portion of a withdrawal, that exceeds the maximum annual withdrawal amount, which then reduces the Income Base and Income Credit Base proportionately. Please see Withdrawals on page 25 for more information. Anniversary Value: The contract value on your contract anniversary (including any spousal continuation contributions). Highest Anniversary Value: The current anniversary value that is greater than: 1) all previous anniversary values, and 2) purchase payments received prior to the first contract anniversary. The opportunity for rising income (including guaranteed rising income during the first 12 contract years) ends if the contract value is completely depleted.

25 Polaris INCOME PLUS INCOME Opportunity to lock in investment gains for rising income If the Income Base steps up from investment gains on a contract anniversary in a rising market, so does your income. Guaranteed lifetime income increases whenever the Income Base steps up Income Base Contract Value Age Investment gains Assumed age at contract issue: 65 INCOME Guaranteed rising income Regardless of which Income Plus income option you choose, if you take withdrawals of less than 6% of the Income Base within the feature s parameters during the first 12 contract years, you can receive a partial income credit for guaranteed rising income even if the market is flat or down. (In a rising market, Income Plus locks in the greater of investment gains or the available income credit on your contract anniversary.) During the first 12 contract years, the available 6% income credit is simply reduced by the percentage of the Income Base withdrawn. For example, if you withdraw 5% in a given year, if eligible, the available income credit on the next contract anniversary will be 1% (6% - 5%). 6% - 5% = 1% Locks in a partial income credit when withdrawals of less than 6% and within the feature s parameters are taken Income Base Contract Value Age Assumed age at contract issue: 65 Income credit Required Minimum Distributions (RMDs): If your variable annuity is funding a retirement plan or account, such as an IRA, and you take a withdrawal to meet your contract s RMD, you will still be eligible for a partial income credit provided the RMD is less than 6% of the Income Base. If your contract s RMD exceeds the feature s maximums, your Income Credit Base and Income Base will not be reduced, provided RMDs are set up on the company s systematic withdrawal program. Please see page 25 for additional information, including important information concerning withdrawals. 23

26 Polaris Income Plus A choice of income options Polaris Income Plus offers you a choice of income options to help you secure an income stream that s right for you. At the time of purchase, you can choose Income Option 1, 2 or 3. Maximum Annual Withdrawal Amount (MAWA) (as a percentage of your Income Base) Income Option 1 Income Option 2 Income Option 3 Age at 1st Withdrawal Covered Persons MAWA PIP MAWA PIP MAWA/PIP Single Life 4.0% 3.0%* 4.0% 3.0%* 3.25% for life Joint Life 3.5% 3.0%* 3.5% 3.0%* 3.00% for life Single Life 5.0% 3.0%* 5.0% 3.0%* 3.75% for life Joint Life 4.5% 3.0%* 4.5% 3.0%* 3.50% for life Single Life 6.0% 4.0% 7.0% 3.0% 5.00% for life Joint Life 5.5% 4.0% 6.5% 3.0% 4.50% for life Single Life 6.5% 4.0% 7.5% 3.0% 5.25% for life Joint Life 6.0% 4.0% 7.0% 3.0% 4.75% for life The protected income payment (PIP) will be paid in the event the contract value is completely depleted due to market volatility, deduction of fees and/or withdrawals taken within the feature s parameters, provided the Income Base is greater then zero. The PIP is calculated as a percentage of the Income Base. * If withdrawals begin before age 65 and your Income Base increases due to investment gains on a contract anniversary on or after your 65th birthday, the protected income payment will automatically increase to 4% of your Income Base. 24 Additional terms used in this section and important information Age at time of first withdrawal: When determining the maximum annual withdrawal amount percentage, as well as the feature s protected income payment percentage, the age at the time of first withdrawal is based on the age of the older individual if the contract is jointly owned for the Single Life option; age of younger individual for the Joint Life option. This age criteria is also used when evaluating eligibility for an increase to the protected income payment percentage, if applicable.

27 Additional information about Polaris Income Plus and Polaris Income Builder Withdrawals Annual withdrawals of up to the maximum annual withdrawal amount (MAWA) do not reduce the Income Base and the Income Credit Base (if applicable). If you take a withdrawal that exceeds the MAWA (known as an excess withdrawal ), your Income Base and Income Credit Base will be reduced proportionately by the amount in excess of the MAWA. In addition, with Income Plus, an income credit will not be available on the next contract anniversary. (Note: with Income Builder, an income credit is not available in years any withdrawals are taken.) Excess withdrawals that reduce the Income Base and the Income Credit Base also reduce the MAWA that can be withdrawn under the feature. If an excess withdrawal reduces the contract value to zero, the feature will terminate and you will no longer be eligible to take withdrawals or receive lifetime income payments. The amount available for withdrawals may change over time. It may increase on contract anniversaries if the Income Base increases, or decrease if you take an excess withdrawal that reduces your Income Base. If you select Income Plus Income Option 1 or 2 and your contract value is completely depleted due to market volatility, deduction of fees and/or withdrawals taken within the feature s MAWA, you will receive the protected income payment as indicated on page 24. As a result, the amount available for lifetime income will decrease. If you select Income Plus Income Option 3 or Income Builder and your contract value is completely depleted due to market volatility, deductions of fees and/or withdrawals taken within the feature s MAWA, the annual amount of lifetime income will not change; annual income paid to you after this point is simply referred to as the protected income payment. If you have elected an income protection feature, withdrawals up to the MAWA are free of withdrawal charges. Withdrawals that exceed the MAWA may be subject to a withdrawal charge. Please see the enclosed product summary brochure for the withdrawal charge schedule associated with the variable annuity you may be considering. Partial withdrawals reduce other benefits available under the contract, such as the death benefit, as well as the amount available upon surrender. If you elect Income Plus and take withdrawals during the first 12 contract years that reduce or eliminate the available income credit, future income may be lower than if a partial or full income credit was added to your Income Base. If you elect Income Builder and take withdrawals during the first 12 contract years, future income may be lower than if you had waited to take withdrawals and an income credit was added to your Income Base. Retirement Plans and Accounts If you use this contract to fund a retirement plan or account and you plan on taking Required Minimum Distributions (RMDs), please see the prospectus for more information and consult with a tax advisor concerning your particular circumstances. Keep in mind, an investment in a variable annuity within a retirement plan or account provides no additional tax-deferred benefit beyond that provided by the plan or account. These features may not be appropriate for use with contributory IRAs (IRA, Roth and SEP) or retirement plans and accounts (401 and 457) if you plan to make ongoing contributions. Purchase payments received in the first contract year only are included in the Income Base. We will not accept purchase payments on or after the first contract anniversary if an income protection feature is elected. Latest Annuity Date If the contract value and the Income Base are greater than zero on the Latest Annuity Date (95th birthday), you will need to select one of these annuity options: 1) Annuitize the contract value under the contract s annuity provisions. 2) Annuitize the contract and receive payments equal to the MAWA at the Latest Annuity Date for a fixed period. The duration of the fixed period will be determined by dividing the contract value at the Latest Annuity Date by the current MAWA. As long as the covered person(s) is living, this amount will continue for the specified period after which time the protected income payment amount will be paid until the death(s) of the covered person(s). 3) Elect any payment option that is mutually agreeable between you and the issuing insurance company. Please see a prospectus for details. Cancellation These features may be cancelled on the 5th contract anniversary or any contract quarter anniversary after that. Amounts allocated to the Secure Value Account (SVA) will be automatically transferred to the 1-year fixed account, if available. If the 1-year fixed account is not available, the amounts will be transferred to the Ultra Short Bond Portfolio. (State variations may apply.) Once the cancellation becomes effective, the associated fee will no longer be charged going forward. These features cannot be re-elected following cancellation. Other Considerations When the Income Base is increased, it may have the effect of increasing the dollar amount of the fee. When the Income Base is decreased due to excess withdrawals, it may have the effect of reducing the dollar amount of the fee. Joint Life option: In the event of a death, spousal continuation of the contract must be elected to provide guaranteed income for the lifetime of the remaining spouse. The fee for the Joint Life option will continue to be charged. The Joint Life option will automatically be cancelled if a death benefit is paid and the contract is not continued by the spouse, or if the surviving original spouse dies. The Single Life option will automatically be cancelled if a death benefit is paid or if the covered person dies. Please see the prospectus for additional information about what happens in the event of divorce or other changes affecting the contract owners or beneficiaries. If you decide not to take withdrawals under one of these features, or you surrender the contract, you will not receive the benefit of the feature. You may pay for the added assurance of one of these features and not need to use it. Fees are non-refundable. These features may be automatically terminated under certain circumstances, such as when the contract is annuitized or surrendered. Other circumstances may also apply. Please see the prospectus for complete details, including limitations and restrictions. 25

28 Predictable lifetime income with Polaris Income Builder If you are 65 or older at the time of purchase, Polaris Income Builder offers guaranteed lifetime income, along with the opportunity to grow future income if you wait to take withdrawals. A guaranteed annual 5% increase for up to 12 years. Income Builder locks in the greater of your investment gains or an annual 5% income credit on each contract anniversary during the first 12 contract years (called the income credit period ) for future income. The 5% income credit is available in years that withdrawals are not taken. The income credit is calculated as a percentage of the Income Credit Base. There is no partial income credit available with Income Builder. Income that can continue to rise with the market. After the first 12 contract years, your income will continue to have the opportunity to increase from investment gains on contract anniversaries, provided contract value remains. An Income Base that can double after 12 years. On the 12th contract anniversary, if you have not taken any withdrawals during the first 12 contract years, your Income Base is guaranteed to be at least 200% of your purchase payments received in the first contract year. This is referred to as the Minimum Income Base. If you elect this feature, the investment requirements described on page 28 will apply. To realize the feature s benefits, withdrawals must be taken within the feature s parameters. Withdrawals that exceed the feature s parameters are known as excess withdrawals. There is no assurance that withdrawal amounts will keep up with inflation. Withdrawals of taxable amounts are subject to ordinary income tax and, if taken prior to age 59½, an additional 10% federal tax may apply. Withdrawals may be subject to withdrawal charges if they exceed certain parameters. Are you retired or nearing retirement? The optional Polaris Income Builder feature is available to clients who are age 65 or older. Your financial advisor can help you choose the income protection feature that s right for you. 26

29 Polaris INCOME BUILDER Access up to 5.4% withdrawals when you re ready for income Age at time of first withdrawal Maximum Annual Withdrawal Amount (MAWA) (as a percentage of your Income Base) Single Life (one covered person) Joint Life (two covered people) 65 or later 5.4% for life 4.9% for life Once withdrawals begin, your percentage rate will not change. Depending on investment performance and your income needs, you may not need to rely on this optional insurance feature, which is available at contract issue for an additional initial fee rate of 1.10% of the Income Base (Single Life) or 1.35% (Joint Life). The fee rate is guaranteed for one year. After that time, it will be adjusted quarterly and may decrease or increase based on a predetermined, non-discretionary formula. The minimum issue age for this feature is 65 and the maximum issue age is 80. Please see the prospectus for details regarding minimum and maximum fees, age restrictions and other limitations. Contract and optional benefit guarantees are backed by the claims-paying ability of the issuing insurance company. Please see page 25 for additional information, including important information concerning withdrawals. Terms used in this section Income Base: The amount on which guaranteed withdrawals and the annual fee for the feature are based. It is not a liquidation value nor is it available as a lump sum. The Income Base is initially equal to the first purchase payment. Purchase payments received in the first contract year only will be included in the Income Base. We will not accept purchase payments on or after the first contract anniversary if an income protection feature is elected. On each contract anniversary, the Income Base is set to equal the greater of (a) the highest anniversary value, or (b) the Income Base plus the income credit amount (if eligible) during the income credit period. The Income Base is automatically evaluated on contract anniversaries while the contract value is greater than zero and the feature is still in effect, provided you have not reached the Latest Annuity Date (95th birthday). On the 12th contract anniversary, the Income Base may be increased to the Minimum Income Base (200% of purchase payments received in the first contract year) if no withdrawals have been taken from the contract. The Income Base will be increased each time a purchase payment is made during the first contract year. The Income Base will be adjusted for excess withdrawals. Income Credit: The amount that may be added to your Income Base, calculated as a percentage of your Income Credit Base. With Income Builder, the income credit is only available in years that you do not take withdrawals. Partial income credits are not available. Income Credit Base: A component of the feature that is used to calculate the income credit. Initially, the Income Credit Base is equal to the first purchase payment. If the Income Base steps up to your highest anniversary value on a contract anniversary, your Income Credit Base will also step up to this amount. Please note that the Income Credit Base is not increased if your Income Base steps up due to the addition of the income credit. The Income Credit Base will be increased each time a purchase payment is made during the first contract year. The Income Credit Base will be adjusted for excess withdrawals. Income Credit Period: The period of time over which an income credit may be added to the Income Base. It begins on the contract issue date and ends 12 years later. Excess Withdrawal: Any withdrawal, or a portion of a withdrawal, that exceeds the maximum annual withdrawal amount, which then reduces the Income Base and Income Credit Base proportionately. Please see Withdrawals on page 25 for more information. Anniversary Value: The contract value on your contract anniversary (including any spousal continuation contributions). Highest Anniversary Value: The current anniversary value that is greater than: 1) all previous anniversary values, and 2) purchase payments received prior to the first contract anniversary. Required Minimum Distributions (RMDs): If your variable annuity is funding a retirement plan or account, such as an IRA, and you take a withdrawal that exceeds the Maximum Annual Withdrawal Amount to meet your contract s RMD, your Income Credit Base and Income Base will not be reduced provided RMDs are set up on the company s systematic withdrawal program. Keep in mind, if you plan on taking RMDs during the first 12 contract years, you will not be eligible for the annual 5% income credit in years withdrawals are taken. In addition, you will not be eligible for the Minimum Income Base if any withdrawals are taken prior to the 12th contract anniversary. 27

30 Polaris Income Plus and Polaris Income Builder Investment Options If you elect Polaris Income Plus or Polaris Income Builder, there are multiple ways you can invest your money to meet the associated investment requirements, including a wide range of Volatility Control Portfolios. 10% of your initial and additional investments will automatically be allocated to the Secure Value Account. The Secure Value Account is a fixed account with a one-year term. 90% of your investment can be invested in one of the following ways. 1. Choose a Check the Box Option OR 2. Build a Customized Allocation SunAmerica Dynamic Strategy Portfolio SA BlackRock VCP Global Multi Asset Portfolio VCP Managed Asset Allocation SAST Portfolio SunAmerica Dynamic Allocation Portfolio SA Schroders VCP Global Allocation Portfolio VCP Value Portfolio SA T. Rowe Price VCP Balanced Portfolio VCP Total Return Balanced Portfolio SA Schroders VCP Global Allocation Portfolio SunAmerica Dynamic Allocation Portfolio SA BlackRock VCP Global Multi Asset Portfolio VCP Total Return Balanced Portfolio SA T. Rowe Price VCP Balanced Portfolio 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 20% 20% 20% You may choose among these options to meet the 90% total allocation: SunAmerica Dynamic Allocation Portfolio SunAmerica Dynamic Strategy Portfolio Bond Portfolios: Corporate Bond (Federated Investment Management Company); Global Bond (Goldman Sachs Asset Management International); Government and Quality Bond (Wellington Management Company LLP); Real Return (Wellington Management Company LLP); SA JP Morgan MFS Core Bond (Multi-managed); Ultra Short Bond Portfolio (Dimensional Fund Advisors LP) Goldman Sachs VIT Government Money Market Fund (The allocation to the options below may not exceed 50% per individual portfolio.) SA BlackRock VCP Global Multi Asset Portfolio SA Schroders VCP Global Allocation Portfolio SA T. Rowe Price VCP Balanced Portfolio VCP Managed Asset Allocation SAST Portfolio (Capital Research and Management Company) VCP Total Return Balanced Portfolio (PIMCO) VCP Value Portfolio (Invesco Advisers, Inc.) 28 You may use a Dollar Cost Averaging (DCA) fixed account to systematically invest in the investment choices available. Your target DCA instructions must follow the investment requirements described. If you elect optional income protection features, participation in quarterly automatic asset rebalancing is also required. Amounts allocated to the Secure Value Account will not be rebalanced and are not available for transfer as long as the feature is in effect. Keep in mind, because rebalancing resets the allocation among variable portfolios, it may have a positive or negative impact on performance. The investment requirements may reduce the need to rely on an income protection guarantee because they allocate your investment across asset classes and potentially limit exposure to market volatility. Of course, if you decide not to elect optional income protection, you may invest in any of the investment options offered in Polaris. Please see the Polaris investments brochure to learn more.

31 Polaris INVESTMENT OPTIONS Volatility Control Portfolios offer growth potential plus risk management Investing in the market can be bumpy. Volatility Control Portfolios can help provide a smoother ride. Portfolios that employ a volatility control approach seek to manage volatility within the portfolio, reduce the incidence of extreme outcomes (including the probability of large losses or gains), and preserve long-term return potential. As a result, a volatility control approach may provide more consistent performance with less risk from market downturns. However, the risk management strategies used by these portfolios could limit the upside participation in strong, increasing markets as compared to a portfolio without such a strategy. Volatility Control Portfolios offer you the benefits of professional money management for long-term growth potential, the opportunity for diversification, and risk management. Volatility Control Portfolios SunAmerica Dynamic Allocation Portfolio SunAmerica Dynamic Strategy Portfolio SA BlackRock VCP Global Multi Asset Portfolio SA Schroders VCP Global Allocation Portfolio SA T. Rowe Price VCP Balanced Portfolio VCP Managed Asset Allocation SAST Portfolio VCP Total Return Balanced Portfolio VCP Value Portfolio Volatility is a statistical measure of the frequency and level of changes in the Portfolio s returns over time without regard to the direction of those changes. Volatility is not a measure of investment performance. It is possible for a Portfolio to maintain its volatility at or under its target volatility level while having negative performance returns. There is no assurance that a Portfolio s investment goal will be met or that investment decisions made in seeking to manage a Portfolio s volatility will achieve the desired results. While diversification and asset allocation are both proven investment strategies, they cannot guarantee greater or more consistent returns over time and they cannot protect against loss. Please see page 34 for important risks and additional information. 29

32 Volatility Control Portfolios A choice of actively managed funds-of-funds The SunAmerica Dynamic Allocation Portfolio (SDAP) and the SunAmerica Dynamic Strategy Portfolio (SDSP) are actively managed funds-of-funds that draw on the expertise of many leading Polaris money managers. SDAP and SDSP At-A-Glance Investment Goals: Seeks capital appreciation and current income while managing net equity exposure Portfolio Management Investment Style Risk Management Process SunAmerica Asset Management, LLC (investment adviser); AllianceBernstein L.P. (subadviser to the overlay component of each Portfolio) SunAmerica Dynamic Allocation Portfolio (SDAP): The fund-of-funds equity component will generally be divided among growth and value portfolios. SunAmerica Dynamic Strategy Portfolio (SDSP): The fund-of-funds equity component will generally invest a greater portion of its assets in value portfolios than growth portfolios. When the equity market is expected to experience high levels of volatility, the Portfolio s overall level of equity exposure ( net equity exposure ) may be decreased through the overlay component to help protect against potential declines. When the equity market is expected to experience lower levels of volatility, the overall level of equity exposure may be increased to take advantage of potential return opportunities. Such changes do not increase or decrease the Portfolio s interest rate risk. The overlay component will generally invest in S&P 500 equity index futures contracts and options to manage the Portfolio s net equity exposure. The overall level of equity exposure will range from a minimum of 25% to a maximum of 100%. Over the long term, the average level of equity exposure is expected to be approximately 60% to 65% SunAmerica Dynamic Allocation Portfolio Target Asset Allocation SunAmerica Dynamic Strategy Portfolio Target Asset Allocation Overlay Component 20% Fund-of-Funds Component 80% Overlay Component 20% Fund-of-Funds Component 80% Target asset allocation does not take into account equity exposure that may be obtained through the use of S&P 500 equity index futures and options or other investments in the overlay component. Fund-of-funds allocation shown is a sample. 30 Additional information For each Portfolio, the overall level of exposure to the equity market may be increased or decreased through investments made in both the fund-of-funds component and the overlay component. These investments are subject to certain risks including stock market and interest rate fluctuations, as well as additional risks associated with investments in certain asset classes. The portfolio operating expenses for a fund-of-funds are typically higher than those of a traditional portfolio because you pay the expenses of that portfolio and indirectly pay a proportionate share of the expenses of the underlying portfolios. Please see page 34 for important risks and additional information.

33 The fund-of-funds component of the SunAmerica Dynamic Allocation Portfolio (SDAP) and the SunAmerica Dynamic Strategy Portfolio (SDSP) may invest in the portfolios shown below.* ASSET CLASS** PORTFOLIO MONEY MANAGER(S) SDAP SDSP Equity Index SunAmerica Asset Management, LLC SA MFS Massachusetts Large Core Investors Trust Massachusetts Financial Services Company Growth and Income Wellington Management Company LLP Equity Opportunities OppenheimerFunds, Inc. Growth Wellington Management Company LLP Large Cap Growth Goldman Sachs Asset Management, L.P., Janus Capital Management LLC, SunAmerica Asset Management, LLC Blue Chip Growth Massachusetts Financial Services Company Capital Appreciation Wellington Management Company LLP Large Growth Fundamental Growth Wells Capital Management Incorporated SA Columbia Focused Growth Columbia Management Investment Advisers, LLC Stock T. Rowe Price Associates, Inc. Capital Growth The Boston Company Asset Management, LLC SA AB Growth AllianceBernstein L.P. SA Janus Focused Growth Janus Capital Management, LLC Growth-Income J.P. Morgan Investment Management Inc. Large Cap Value American Century Investment Management, Inc., SunAmerica Asset Management, LLC, Wellington Management Company LLP Large Value SA Columbia Focused Value Columbia Management Investment Advisers, LLC SA Legg Mason BW Large Cap Value Brandywine Global Investment Management, LLC Dogs of Wall Street SunAmerica Asset Management, LLC Growth Opportunities Invesco Advisers, Inc. Mid-Cap Growth J.P. Morgan Investment Management Inc. Small and Mid Cap Growth Mid Cap Growth SunAmerica Asset Management, LLC, T. Rowe Price Associates, Inc., Wellington Management Company LLP Aggressive Growth Wells Capital Management Incorporated Mid Cap Value Goldman Sachs Asset Management, L.P., Massachusetts Financial Small and Services Company, SunAmerica Asset Management, LLC Mid Cap Value Small Company Value Franklin Advisory Services, LLC Small & Mid Cap Value AllianceBernstein L.P. Small Blend Small Cap J.P. Morgan Investment Management Inc., PNC Capital Advisors, LLC, SunAmerica Asset Management, LLC Real Estate FIAM LLC Natural Resources Wellington Management Company LLP Specialty Technology Columbia Management Investment Advisers, LLC Telecom Utility Massachusetts Financial Services Company Foreign Value Templeton Investment Counsel, LLC International International Equity Janus Capital Management LLC, SunAmerica Asset Management, LLC, Developed T. Rowe Price Associates, Inc. Markets International Growth and Income Putnam Investment Management, LLC International Diversified Equities Morgan Stanley Investment Management Inc. International Emerging Markets Emerging Markets J.P. Morgan Investment Management Inc. Global Global Equities J.P. Morgan Investment Management Inc. Corporate Bond Federated Investment Management Company Diversified Fixed Income PineBridge Investments, LLC, Wellington Management Company LLP Investment Global Bond Goldman Sachs Asset Management International Grade Bonds Government and Quality Bond Wellington Management Company LLP SA JPMorgan MFS Core Bond J.P. Morgan Investment Management Inc., Massachusetts Financial Services Company Ultra Short Bond Dimensional Fund Advisors LP High-Yield Bonds High-Yield Bond PineBridge Investments, LLC Inflation Protected Securities Real Return Wellington Management Company LLP *Portfolios will not normally invest in every underlying portfolio at any particular time. The universe of underlying portfolios and associated money managers is subject to change. **Primary asset class as determined by SunAmerica Asset Management, LLC. 31

34 Volatility Control Portfolios Additional Volatility Control Portfolios SA BlackRock VCP Global Multi Asset Portfolio The SA BlackRock VCP Global Multi Asset Portfolio is a global tactical asset allocation strategy that actively controls volatility to seek a more consistent investment experience. Investment goals: Seeks capital appreciation and income while managing portfolio volatility Portfolio management: SunAmerica Asset Management, LLC (investment adviser); BlackRock Investment Management, LLC (subadviser) SA Schroders VCP Global Allocation Portfolio The SA Schroders VCP Global Allocation Portfolio actively invests across markets and asset classes with the aim to provide growth potential and control volatility. Investment goals: Seeks capital appreciation and income while managing portfolio volatility Portfolio management: SunAmerica Asset Management, LLC (investment adviser); Schroder Investment Management North America Inc. (subadviser) SA T. Rowe Price VCP Balanced Portfolio The SA T. Rowe Price VCP Balanced Portfolio is a broadly diversified balanced portfolio, combining the value added from the firm s expertise in portfolio design, asset allocation and active management with an integrated approach for stabilizing the portfolio s volatility. Investment goals: Seeks capital appreciation and income while managing portfolio volatility Portfolio management: SunAmerica Asset Management, LLC (investment adviser); T. Rowe Price Associates, Inc. (subadviser) 32

35 Polaris INVESTMENT OPTIONS VCP Managed Asset Allocation SAST Portfolio The VCP Managed Asset Allocation SAST Portfolio is a balanced portfolio that provides access to American Funds and diversification among equities (stocks), fixed income (bonds) and money market instruments through the underlying fund in which the Portfolio invests, while managing volatility. Investment goals: Seeks high total return (including income and capital gains) consistent with the preservation of capital over the long term while seeking to manage volatility and provide downside protection Portfolio management: Capital Research and Management Company (investment adviser); Milliman Financial Risk Management LLC (subadviser to the Portfolio s risk-management overlay) VCP Total Return Balanced Portfolio The VCP Total Return Balanced Portfolio is a balanced portfolio that leverages the fixed income and equity investment expertise of Pacific Investment Management Company LLC (PIMCO), with volatility management. Investment goals: Seeks capital appreciation and income while managing portfolio volatility Portfolio management: SunAmerica Asset Management, LLC (investment adviser); Pacific Investment Management Company LLC (subadviser) VCP Value Portfolio The VCP Value Portfolio is a balanced portfolio that capitalizes on the value style investing expertise of Invesco Advisers, Inc., while managing volatility. Investment goals: Seeks current income and moderate capital appreciation while managing portfolio volatility Portfolio management: SunAmerica Asset Management, LLC (investment adviser); Invesco Advisers, Inc. (subadviser) Capital Research and Management Company is the investment manager of the American Funds. SunAmerica Asset Management, LLC serves as investment adviser to the Feeder Fund ; Capital Research and Management Company serves as investment adviser to the Master Fund. The VCP Managed Asset Allocation SAST Portfolio ( Feeder Fund ) does not invest directly in individual securities; instead it invests in shares of the American Funds Insurance Series Managed Risk Asset Allocation SM Fund (the Master Fund ). In turn, the Master Fund invests in shares of an underlying fund, the American Funds Insurance Series Asset Allocation Fund (the Underlying Fund ), hedge instruments (primarily exchange-traded futures) and cash or cash equivalents. Investing in a Feeder Fund will result in higher fees and expenses than investing in a portfolio that invests directly in securities. Please see the prospectus for more information regarding the master-feeder fund structure. Milliman Financial Risk Management LLC is not an affiliate or member of Capital Research and Management Company or The Capital Group Companies. 33

36 Important risks and additional information about Volatility Control Portfolios Volatility Control Portfolios While Volatility Control Portfolios employ risk management processes that seek to manage volatility within the Portfolio, volatility may result from rapid or dramatic price swings. A Portfolio could experience high levels of volatility in both rising and falling markets. Due to market conditions or other factors, the actual or realized volatility of a Portfolio for any particular period of time may be materially higher or lower than the target level. Efforts to manage a Portfolio s volatility could limit a Portfolio s gains in rising markets, may expose the Portfolio to costs to which it would otherwise not have been exposed, and if unsuccessful may result in substantial losses. Each Portfolio is subject to derivative and leverage risks. These investment strategies may be riskier than other investment strategies and may result in gains or losses substantially greater than the cost of the position. While these strategies can be useful and inexpensive ways of reducing risk, they are sometimes ineffective due to unexpected changes in the market, exchange rates or other factors. When a Portfolio uses derivatives for leverage, the Portfolio will tend to be more volatile, resulting in larger gains or losses in response to the fluctuating prices of the Portfolio s investments. Each Portfolio is subject to other risks including short sales risk and counterparty risk. Losses from short sales are potentially unlimited, whereas losses from purchases can be no greater than the total amount invested. Counterparty risk is the risk that a counterparty will not perform its obligations. Small movements in interest rates (both increases and decreases) may quickly and significantly reduce the value of certain mortgage-backed securities. These securities are also subject to risk of default, particularly during periods of economic downturn. Credit risk (i.e., the risk that an issuer might not pay interest when due or repay principal at maturity of the obligation) could affect the value of the investments in the Portfolio. Each Portfolio is subject to risk of conflict with insurance company interests given certain aspects of portfolio management are intended to mitigate the financial risks the insurer faces in connection with optional income protection guarantees. Certain Portfolios and their underlying portfolios (if applicable) may engage in frequent trading of portfolio securities to achieve their investment goals. Active trading may result in high portfolio turnover and correspondingly greater transaction costs. Investments are subject to certain risks including stock market and interest rate fluctuations, as well as additional risks associated with investments in certain asset classes. Please see back cover. SA BlackRock VCP Global Multi Asset Portfolio The Portfolio s volatility management strategy may adjust the composition of the Portfolio s riskier assets, such as equity and below investment grade fixed income securities, and/or may allocate assets away from riskier assets into cash or short-term fixed income securities. In selecting equity and fixed income investments, judgments that evaluate the attractiveness of countries and sectors may prove incorrect. The value of the Portfolio s foreign investments may fluctuate due to changes in currency exchange rates. SA Schroders VCP Global Allocation Portfolio The Portfolio may make substantial use of derivatives. As a result, performance could be primarily dependent on securities the Portfolio does not own. In selecting equity and fixed income investments, judgments that evaluate the attractiveness of countries and sectors may prove incorrect. The value of the Portfolio s foreign investments may fluctuate due to changes in currency exchange rates. SA T. Rowe Price VCP Balanced Portfolio The Portfolio s approach for stabilizing volatility may not produce the desired results. The value of the Portfolio s foreign investments may fluctuate due to changes in currency exchange rates. VCP Managed Asset Allocation SAST Portfolio Hedge assets include cash and liquid transparent financial futures contracts that are tailored to the underlying holdings in the American Funds Insurance Series Asset Allocation Fund. Futures contracts on major equity, U.S. Treasury bonds, and currencies are typically used. Futures contracts are used only to reduce risk relative to a long-equity portfolio. In situations of extreme market volatility, the exchange-traded futures could potentially reduce the Master Fund s net economic exposure to equity securities to 0%. The Portfolio is subject to the risk that the strategy that will be used to stabilize the volatility of the Master Fund and reduce its downside exposure may not produce the desired result. In addition, the use of the risk-management overlay may cause the Master Fund s return to lag that of the underlying fund in certain rising market conditions. VCP Total Return Balanced Portfolio The Portfolio may invest a significant portion of its assets in derivatives. As a result, performance could be primarily dependent on securities the Portfolio does not own. The Portfolio will generally achieve equity exposure by investing in derivatives rather than through direct investments in equity securities. The Portfolio may also invest directly in equity securities and ETFs to achieve its goal. VCP Value Portfolio Target volatility level is not a total return performance target. Total return performance is not expected to be within any specified target range. The ability to achieve current income may be adversely affected if dividends on the Portfolio s equity securities are reduced or discontinued or if prevailing interest rates on the Portfolio s debt securities decline. Although the Portfolio seeks investments in undervalued companies, judgments that a particular security is undervalued may prove incorrect. Please see back cover for additional risks associated with the variable portfolios. 34

37 Valuable Protection for Your Family Choose the protection that s right for you and your family The Standard Death Benefit is automatically included at no additional cost. It provides the beneficiaries you name on your contract with the greater of contract value or purchase payments (adjusted for withdrawals). The Maximum Anniversary Value Death Benefit provides enhanced protection by locking in investment gains for your family. This optional feature is available for an additional fee rate of 0.25%. The maximum issue age is 80. This death benefit provides the beneficiaries you ve named with the greatest of: Contract value; or Purchase payments (adjusted for withdrawals); or The highest value of your contract on any contract anniversary prior to your 83rd birthday (adjusted for withdrawals and purchase payments since that anniversary). When calculating either death benefit, adjustments are made to account for additional purchase payments, withdrawals, and any charges applicable to withdrawals. The calculation will differ if an income protection feature is elected. Please see additional information below for details. The spousal continuation option. If your spouse is the joint owner or sole beneficiary of your contract, the spousal continuation option allows your spouse to continue the contract rather than take the death benefit distribution. This option is available with either of the death benefits at no additional cost. If the spousal continuation option is chosen, the contract value is stepped up to equal the death benefit value that would have been paid. Additionally, the death benefit available to the surviving spouse may continue to provide valuable protection for beneficiaries, depending on the spouse s age at the time of spousal continuation. Please see the prospectus to learn more. Additional information about death benefits, including definitions Contract value: The value of the contract at the time all required paperwork, including proof of death, is received. Anniversary value: The contract value on each contract anniversary. Purchase payments: The money you invest in your variable annuity, as well as any additional money you invest after your initial purchase. No additional purchase payments are accepted on or after your 86th birthday. However, if an income protection feature is elected, additional purchase payments will not be accepted on or after the first contract anniversary, regardless of age. Your age at the time your contract is issued will determine the availability of the Maximum Anniversary Value Death Benefit. Once elected, this death benefit option may not be changed or cancelled. If you are a spouse age 86 or older continuing a contract under spousal continuation, the contract s death benefit will be equal to contract value. If you elect an income protection feature and take withdrawals before your 81st birthday that are within the maximum annual withdrawal amount, the death benefit will be reduced by the amount withdrawn. If you do not elect an income protection feature (or you elect one and take withdrawals on or after your 81st birthday), the death benefit is reduced for withdrawals in the same proportion that the withdrawal reduced the contract value on the date of your withdrawal. Please see the prospectus for additional details, including the adjustment for excess withdrawals taken with an income protection feature. If your variable annuity contract is annuitized, the death benefit no longer applies. However, if you die during the annuity payout phase, your beneficiary may receive any remaining guaranteed income payments, depending upon which annuity payout option you selected. 35

38 A Powerful Combination of Benefits Key product features Variable Annuities Fixed Annuities Mutual Funds Stocks Bonds Tax advantages including tax deferral and tax-free rebalancing Participation in the growth potential of the stock market Protection features that can insure against market risk for an additional fee (tax deferral) (may be tax-free) Professional money management Asset allocation program (sometimes) Opportunity for a fixed rate of return Beneficiary protection Flexible income options Predictable income stream Guaranteed lifetime income Liquidity Subject to limitations* Subject to limitations* Investments in stocks, mutual funds and variable annuities are subject to risk, including possible loss of principal. The variable annuity contract, when redeemed, may be worth more or less than the total amount invested. Bonds: Government bonds and Treasury bills are subject to interest rate risk, but they are guaranteed by the U.S. Government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value. Interest from Treasury bills and U.S. Government bonds is exempt from state and local taxes, but may be subject to federal income tax. The repayment of principal and interest of a corporate bond is guaranteed by the issuing company, and subject to default, credit and interest rate risk. Variable annuities, unlike other types of investments, offer insurance features (such as a guaranteed death benefit and annuity income options) that you pay for through what is called a separate account fee. Variable annuities are subject to additional fees, including a contract maintenance fee, costs for optional features (if elected), and the expenses related to the operation of the variable portfolios. You can annuitize your contract and receive annuity income payments for life for no additional fee, or you may choose an optional income protection feature. Optional protection features are available for an additional fee. Restrictions and limitations apply. Guarantees, including optional benefits, are backed by the claims-paying ability of the insurer. Any investment in a retirement plan or account (such as an IRA) automatically receives the benefit of tax deferral. An investment in a variable annuity provides no additional tax-deferred benefit beyond that provided by the retirement plan or account. Annuities are insurance products whose gains accumulate tax-deferred and are taxed as ordinary income when withdrawn. Fixed annuities offer a fixed rate of return guaranteed by the issuing insurance company. They generally offer a range of income options, including guaranteed lifetime income through annuitization. Mutual funds are different from variable annuities in a number of ways. For example, mutual funds serve various short and longterm financial needs, while variable annuities are designed specifically for long-term retirement savings. Mutual funds are investment products whose gains are generally taxable for the year in which they are earned. Mutual funds earn money for an investor in several ways, which can be taxed at different rates. Capital gains and dividends may be taxed at a rate that is lower than the income tax rate; interest is generally taxed at income tax rates. 36 * Early withdrawal charges apply if withdrawals exceed the contract s free withdrawal provisions during the withdrawal charge period. Withdrawals of taxable amounts are subject to ordinary income tax, and if taken prior to age 59½, an additional 10% federal tax may apply. Be sure to talk to your financial advisor about your particular situation and which investments may be right for you before you invest.

39 Polaris. For Those Who Want More For more than two decades, Polaris Variable Annuities have been helping investors address their long-term retirement needs. The life insurance companies that issue Polaris Variable Annuities are leading providers of variable annuities in the U.S. Together these companies rank among the top seven variable annuity issuers in the U.S. (Source: Morningstar. Ranking based on assets as of 6/30/16.) Your financial advisor can help you determine if Polaris is right for you. 37