POLARIS FOR THOSE WHO WANT MORE

Transcription

1 POLARIS FOR THOSE WHO WANT MORE

2 WHEN YOUR GOALS ARE Accumulation Tax-advantaged investing Professionally managed investments Polaris Select Investor VARIABLE ANNUITY Variable annuities are long-term investments designed for retirement purposes. Variable annuities work in two phases. In the accumulation phase, they can help you build assets on a tax-deferred basis. In the income phase, they can provide you with guaranteed income through annuitization. Variable annuities are subject to costs that include a separate account fee, a contract maintenance fee, expenses related to the operation of the variable portfolios and the costs associated with any optional features. Retirement plans and accounts, such as IRAs and 401(k)s, defer payment of taxes on earnings until withdrawn. If you are considering funding a retirement plan or account with an annuity, you should know that an annuity does not provide any additional tax-deferred treatment of earnings beyond the treatment provided by the plan or account itself. In addition, while other variable annuities may provide more robust insurance benefits, such as optional guaranteed living benefits and optional enhanced death benefits, the Polaris Select Investor s insurance benefits are limited to the optional Return of Purchase Payment Death Benefit and standard annuitization options. You should fully discuss the decision to fund a retirement plan or account with the Polaris Select Investor Variable Annuity with your financial advisor. 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 (AGL) except in New York, where they are issued by The United States Life Insurance Company in the City of New York (US Life). 2

3 In recent years, planning for the financial aspect of retirement has become increasingly important. And, for many, the impact of taxes on assets being set aside for retirement is growing in significance. Polaris Select Investor Variable Annuity brings together the benefits of tax deferral with diverse investment choices and leading money managers to help you reach your long-term goals. Polaris Select Investor offers you More Control, More Choice, and More Experience More Control. You ll have more control over when you pay taxes on your earnings through tax-deferred accumulation and tax-free transfers between investment options giving you a potentially more tax-efficient way to invest. More Choice. You can choose from over 90 investment options covering diverse asset classes, plus professionally designed asset allocation models. More Experience. Money is invested by more than 30 professional, experienced money managers with long track records of performance. Of course, past performance is no guarantee of future results. Earnings are taxed upon withdrawal. Withdrawals of taxable amounts are subject to ordinary income tax, and if taken prior to age 59½, an additional 10% federal tax may apply. 1

4 Polaris Principles for Retirement Investing Leverage the power of tax deferral Taxes can have a big impact on long-term investment returns. The highest marginal income tax rate now stands at 39.6% up from 35% in The dividends and capital gains tax rate has increased to 20% for investors in the highest tax bracket. And there are new Medicare taxes on net investment income and earned income, not to mention the phase-out of itemized deductions, for high income individuals. Position your assets to your advantage While you may have committed to accumulating assets for use later during your retirement years, you may not have considered the importance of positioning different types of assets in different types of accounts (called asset location). Asset location can have a substantial effect on the overall return of your investments. By placing your least tax-efficient investments in a tax-deferred account (such as an IRA or annuity), you can potentially reduce your current income tax liability and control when you have to pay for the taxes on gains, distributions, and dividends. Keep in mind, retirement plans and accounts already defer payment of taxes on earnings until withdrawal and funding a retirement plan or account with an annuity does not provide any additional tax-deferred treatment of earnings. You should fully discuss the decision to fund a retirement plan or account with the Polaris Select Investor Variable Annuity with your financial advisor. Asset classes have different tax consequences More Tax Efficient Less Tax Efficient Municipal Bonds U.S. Large Growth Stocks International Stocks Emerging Markets Stocks U.S. Mid Cap Stocks U.S. Large Value Stocks Balanced Funds U.S. Small Cap Stocks Taxable Bonds World Bond Real Estate Corporate Bond Commodities High Yield Bonds 2 Source: Morningstar, Based on Morningstar 10-year average tax cost ratio for major Morningstar categories as of 9/30/16.

5 Polaris Select Investor VARIABLE ANNUITY Taxable vs. tax-deferred In a rising tax environment, it may make sense to complement your existing investments, especially those in taxable accounts, with tax-deferred investments. Annuities are intended as long-term investments designed for retirement, so your investment can grow tax-deferred and benefit from the compounding of investment earnings. With Polaris Select Investor, you can also reallocate between different investment options without triggering immediate tax consequences. Because investment gains within a variable annuity are not taxed until a withdrawal is taken, you have more control over when you pay taxes on your earnings. $600,000 Tax deferral for greater potential growth Hypothetical $100,000 investment currently taxable vs. tax-deferred over 25 years $500,000 $542,743 $400,000 $300,000 $200,000 $341,875 $418,775 $100,000 $100,000 Initial Investment Without Tax Deferral Tax-deferred Investment (after taxes) Tax-deferred Investment (before taxes) This chart shows the hypothetical value of $100,000 earning a 7% gross return in a currently taxable investment and a comparable hypothetical tax-deferred investment over 25 years with no withdrawals. The rate of return will fluctuate and is not guaranteed. Both investments assume a 28% federal income tax rate. No state income tax is included. This chart is for illustrative purposes only. Upon withdrawal, the value of the tax-deferred investment would be reduced by income taxes on the investment gains. This example does not reflect the actual performance of the Polaris Select Investor Variable Annuity or any particular investment, nor the fees and charges associated with any investment. If shown, these fees and charges would reduce the results of the tax-deferred investment. Tax rates and tax treatment of earnings may impact comparative results. Capital gains and dividends in the taxable investment may be taxed at a rate that is lower than the income tax rate, which could increase the taxable return and reduce the difference in performance between the investments. Withdrawals of taxable amounts are subject to ordinary federal income tax and if taken before age 59½, an additional 10% federal tax may apply. Withdrawals are also subject to state tax. Talk to your financial advisor about your investment time horizon and income tax brackets, both current and anticipated, when making an investment decision. There is no guarantee that an investment in Polaris Select Investor will keep pace with inflation. 3

6 Retirement Investing Consider the long-term growth potential of stocks Stocks historically have outperformed other types of investments over long periods of time, as illustrated below. And while past performance is not a guarantee of future results, it s important to consider the long-term wealth-building opportunity an investment in stocks may provide. Of course, an investment in stocks is subject to risk and market fluctuation. Stocks can help provide long-term growth potential Growth of $100,000 in various asset classes over the 30-year period ended 12/31/15 $2,000,000 Stocks $1,931,771 $1,500,000 $1,000,000 $500,000 Bonds $709,376 T-Bills $299,639 $ Source: Wilshire Compass, This chart is for illustrative purposes only and does not represent any particular investment. Performance for any specific investment is available from your financial advisor. Past performance is not a guarantee of future results. Stocks are represented by the S&P 500 Index, a representative sample of leading companies in key industries that reflect the U.S. stock market. Stocks are often subject to significant price fluctuations and, therefore, you may have a gain or loss in principal when shares are sold. Bonds are represented by the Barclays U.S. Aggregate Bond Index, which covers the U.S. investment grade fixed-rate bond market with index components for government and corporate, mortgage pass-through and asset-backed securities. T-bills are represented by the BofA Merrill Lynch 91-Day Treasury Bill Index. Government bonds and Treasury bills 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 and credit risks. Stocks and bonds are not subject to the separate account fees, administration charges and potential withdrawal charges associated with an investment in a variable annuity. Underlying investment options in a variable annuity are subject to portfolio operating expenses. Indexes are unmanaged; you cannot invest directly in any index. The appropriateness of particular types of investments depends on your time horizon, risk tolerance and individual circumstances, such as your current and anticipated tax brackets.

7 Polaris Select Investor VARIABLE ANNUITY Diversification may help reduce risk and lower volatility While stocks have outperformed other investments and historically have provided an effective hedge against inflation over the long term, diversification within your portfolio may help offset short-term volatility. As the chart below shows, a mix of asset classes can provide opportunity for growth with potentially less volatility. A case for diversification Int l 26.35% Value 22.21% Small Cap 18.35% S&P 500 Index 15.81% Diversified Portfolio 14.08% High Yield Bond 11.72% Growth 9.08% Cash 4.76% Bonds 4.33% Growth 11.82% Int l 11.18% Bonds 6.96% S&P 500 Index 5.49% Diversified Portfolio 5.09% Cash 4.74% High Yield Bond 2.21% Value -0.17% Small Cap -1.55% Bonds 5.24% Cash 1.80% Diversified Portfolio % High Yield Bond % Small Cap % Value % S&P 500 Index % Growth % Int l % High Yield Bond 57.50% Growth 37.21% Int l 31.78% Small Cap 27.19% S&P 500 Index 26.47% Diversified Portfolio 25.74% Value 19.69% Bonds 5.93% Cash 0.16% Small Cap 26.85% Growth 16.72% Value 15.51% High Yield Bond 15.19% S&P 500 Index 15.06% Diversified Portfolio 12.97% Int l 7.75% Bonds 6.54% Cash 0.13% Bonds 7.84% High Yield Bond 4.38% Growth 2.63% S&P 500 Index 2.11% Value 0.39% Diversified Portfolio 0.14% Cash 0.08% Small Cap -4.17% Int l % Value 17.50% Int l 17.31% Small Cap 16.34% S&P 500 Index 16.06% High Yield Bond 15.58% Growth 15.26% Diversified Portfolio 12.79% Bonds 4.22% Cash 0.07% Small Cap 38.82% Growth 33.49% Value 32.54% S&P 500 Index 32.39% Int l 22.78% Diversified Portfolio 20.68% High Yield Bond 7.42% Cash 0.05% Bonds -2.02% S&P 500 Index 13.69% Value 13.45% Growth 13.05% Diversified Portfolio 6.09% Bonds 5.97% Small Cap 4.89% High Yield Bond 2.50% Cash 0.05% Int l -4.90% Growth 5.67% S&P 500 Index 1.38% Bonds 0.55% Cash 0.03% Diversified Portfolio -0.76% Int l -0.81% Value -3.83% Small Cap -4.41% High Yield Bond -4.64% HIGHEST Annual Returns LOWEST International Stocks: MSCI EAFE Index. Growth: Russell 1000 Growth Index. Value: Russell 1000 Value Index. S&P 500 Index. Small Cap: Russell 2000 Index. High Yield Bond: BofA Merrill Lynch High Yield Master II Index. Bonds: Barclays U.S. Aggregate Bond Index. Cash: Citigroup Global Markets 3-Month T-Bill Index. Diversified Portfolio: equal annual investments in the eight different market segments noted. Source: Wilshire Compass, Diversification does not ensure a profit or protect against market loss. There is no assurance that a diversified portfolio will outperform a non-diversified portfolio. Past performance is not a guarantee of future results. 5

8 Design Your Investment Tap the expertise of respected money managers Polaris Select Investor offers you the benefits of professional money management and time-tested investment techniques to help you diversify your investment and potentially maximize long-term growth potential. Polaris money managers have been selected for their extensive experience managing retirement assets, as well as for their investment management style, investment process and track record of attractive performance over time. Of course, past performance is not a guarantee of future results Additional information 1 American Funds SAST Portfolios and the VCP Managed Asset Allocation SAST Portfolio invest in the American Funds Insurance Series, which has the same investment manager (Capital Research and Management Company) as American Funds.

9 Polaris Select Investor VARIABLE ANNUITY Diversify your investment across asset classes In addition to a wide selection of experienced money managers, Polaris Select Investor has over 90 investment options from which you can choose. Working with your financial advisor, you can create a strategy that feels comfortable to you by diversifying your investment across multiple asset classes to help meet your objectives for any number of goals including income, volatility control, and inflation protection. Polaris Select Investor also offers you the opportunity to invest in alternative asset classes and alternative strategies. Traditionally, alternatives have been widely available to institutional investors and include portfolios that invest in real assets (such as real estate, natural resources and infrastructure) and commodities. They provide an alternative to investing in traditional fixed income (bond) and equity (stock) investments and may help create a stabilizing effect on a portfolio as they may have low correlation with traditional investments. This low correlation may provide added portfolio diversification and has the potential to enhance a portfolio s risk/return profile. Choose from these asset classes Equity Fixed Income/Cash Asset Allocation Large Growth Money Market Traditional Large Core Short-Term Bond Income Oriented Large Value Inflation Protected Securities Risk Managed Small and Mid-Cap Growth Corporate/Govt. Bond Tactical Small and Mid-Cap Core High-Yield Bond Multi-Alternatives Small and Mid-Cap Value Multi-Cap Foreign and Global Bond Multi-Sector/Non-Traditional Bond Specialty Foreign and Global Stock Emerging Markets Additional information 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. 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 and VALIC, are not affiliated with AGL, US Life or American International Group, Inc. (AIG). Please refer to the product and trust prospectuses for more information about the contract and the variable portfolios. Please see back cover for additional information about investing in the variable portfolios. There is no guarantee that an investment in Polaris Select Investor will keep pace with inflation. 7

10 Design Your Investment Choose your investing approach With Polaris Select Investor, you have the flexibility to choose one of these investment approaches: 1 Build your own allocation You and your financial advisor can select from a wide range of over 90 portfolios and designate percentage allocations to help meet your diversification and investment goals. We encourage you to meet with your financial advisor periodically to review your investments to ensure they align with your goals. 2 Choose an asset allocation model designed by Morningstar Investment Management LLC Polaris Portfolio Allocator models are developed exclusively by Morningstar Investment Management LLC a recognized leader in asset allocation for more than three decades. Polaris Portfolio Allocator models are designed to help you take advantage of the potential benefits of asset allocation. You can use a model and its allocation as a guide when designing your investment allocation. Keep in mind, 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. Polaris Portfolio Allocator models developed by Morningstar Investment Management LLC Model 1 Model 2 Model 3 Model 4 50% Stocks 50% Fixed Income 60% Stocks 40% Fixed Income 70% Stocks 30% Fixed Income 90% Stocks 10% Fixed Income Lower Risk/Reward Potential Higher 8 Please see back cover for additional information on Morningstar Investment Management LLC

11 Polaris Select Investor VARIABLE ANNUITY 3 Choose a Select Strategy that includes alternative investments Select Strategies offer you an easy way to add alternatives to your investment. Designed by SunAmerica Asset Management, LLC (SAAMCo) specifically for Polaris Select Investor Variable Annuity, the Select Strategies combine a pre-selected allocation of six alternative investments with a Polaris Portfolio Allocator model. Each Select Strategy allows you to invest 70% of your investment in one of four Polaris Portfolio Allocator models and 30% in pre-selected alternative investments to further diversify your risk and return potential. When alternative asset classes are chosen within your variable annuity, the usual complex tax filings are not required (for example, K-1s) and earnings will be taxed as ordinary income upon withdrawal. These funds expect to invest in positions that emphasize alternative investment strategies and/or non-traditional asset classes and, as a result, are subject to special risks. Alternative investment strategies may be riskier than traditional investment strategies and involve leverage or may use various complex hedging techniques, like options and derivatives. Additional information about Polaris Portfolio Allocator models and Select Strategies You may invest in only one model or Select Strategy at a time. If you attempt to invest in more than one model or Select Strategy at a time, your investment may no longer be consistent with the intended investment objective. While certain Polaris portfolios may be included in a Polaris Portfolio Allocator model or Select Strategy, this does not mean that these portfolios are superior to any other portfolio not included in a model or Select Strategy. Polaris Portfolio Allocator models and Select Strategies are not intended to provide investment advice. They should not be relied upon as providing individualized investment recommendations. The models and Select Strategies are considered static because the portfolios and the percentages of contract value allocated to each portfolio within a model or Select Strategy will not be changed by us. To maintain the target asset allocation of a model or Select Strategy, you can elect to have your investment rebalanced quarterly, semi-annually, or annually. Please note that due to market returns and other factors, over time the asset allocation models and Select Strategies 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 or Select Strategy you have selected is still appropriate for you. We reserve the right to change or cancel these programs at any time. Please see back cover for additional information. For more details on the individual investment options, Polaris Portfolio Allocator models, and Select Strategies, please see the Polaris Select Investor Investment Guide. 9

12 Protecting Your Family Choose the protection that s right for you and your family A choice of death benefits The Standard Death Benefit is automatically included in your contract at no additional cost. It provides the beneficiaries you name on your contract with the contract value at time of death. The optional Return of Purchase Payment Death Benefit is available for an additional fee. This feature provides your beneficiaries with the greater of the contract value or purchase payments, reduced proportionately for withdrawals. Additional protection with the optional Return of Purchase Payment Death Benefit Initial investment Additional investment Contract Value Return of Purchase Payment Death Benefit provides the greater of contract value or purchase payments (adjusted for withdrawals) Year Hypothetical example is for illustrative purposes only to show how the optional Return of Purchase Payment Death Benefit may work. You may only elect the optional Return of Purchase Payment death benefit at the time you purchase your contract and you cannot change your election thereafter at any time. Hypothetical contract value assumes an initial purchase payment at contract issue and one additional purchase payment. The example does not reflect the actual performance of any particular investment. For more information about Polaris Select Investor Variable Annuity performance, please ask your financial advisor. 10 The Return of Purchase Payment Death Benefit may not be available in all firms or all states. In certain firms, it may be required with certain purchases. Please check with your financial advisor.

13 Polaris Select Investor VARIABLE ANNUITY Protect assets for your loved ones Flexibility for your spouse and continued protection for your family If your spouse is the joint owner or sole beneficiary, the spousal continuation option allows your spouse to continue the contract rather than take the death benefit distribution. This option is available at no additional cost. The death benefit paid upon the death of the continuing spouse varies depending on the death benefit elected by the original owner of the contract, the age of the continuing spouse at the time of spousal continuation and the date all paperwork is received in good order. Please see the prospectus for details. Consider assets that are protected from probate Certain assets such as life insurance policies and annuities allow you to designate beneficiaries to receive payment upon your death. Because these assets pass outside of the probate process, your beneficiaries have access to the funds more quickly. In addition, these assets are not included in public records along with other details of your estate settlement. Annuities may also offer additional options in terms of controlling how your beneficiaries receive payments. See the following page for information on Extended Legacy and Guided Legacy details. 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. 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. If you are a spouse age 76 or older continuing a contract under spousal continuation, the contract s death benefit will be equal to contract value. 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 select. Please see the prospectus for more information about the available annuity payout options. When selecting your beneficiaries be sure to consider Spousal Continuation, Extended Legacy, and Guided Legacy. Your financial advisor can help you understand these features. 11

14 Protecting Your Family How can you leave a lasting legacy? You may want to leave a legacy for your family. When it comes to your variable annuity, you have options that make it possible to provide income for multiple generations and to maintain control of the beneficiary s inheritance through Legacy Planning options. Stretch assets across generations with Extended Legacy With Extended Legacy, you can create a tax-advantaged plan that not only helps reduce the tax burden on your beneficiaries but may also stretch the life of your annuity assets for your spouse, children, and grandchildren. Use Extended Legacy from AIG to help you stretch your legacy to: Provide income for your children (beneficiaries) in the future, over a longer period of time. And your grandchildren (your beneficiary s beneficiary) can potentially stretch distributions over any remaining life expectancy of the first beneficiary. Minimize the annual tax burden of the beneficiaries since each distribution is taxed at the time of withdrawal, while the remaining variable annuity assets grow tax-deferred. Keep the potential for tax-deferred growth even as the beneficiaries withdraw annual income. Guided Legacy can help you maintain control With Guided Legacy, you have the power to say how and when untapped variable annuity assets will be passed on, whether or not you choose to use the Extended Legacy concept. This control can be important for: Making sure your money is passed on in the way you desire Beneficiaries who may not know how to manage a sizeable lump-sum inheritance. You can tailor different distribution plans for different beneficiaries, depending upon the needs of each. 12 Extended Legacy Planning is not a variable annuity product in and of itself. Stretch strategies involve lengthy distribution periods and are subject to additional risks and considerations. The Extended Legacy and Guided Legacy concepts should be presented in conjunction with a complete variable annuity kit, including a prospectus, that explains the full features and benefits of the variable annuity that you may be considering in order to put Extended Legacy Planning to work for you.

15 Polaris Select Investor VARIABLE ANNUITY Polaris. For Those Who Want More Today, planning for your retirement is a priority and you want to make sure your investments are working hard to help you reach your goals. For over two decades, Polaris Variable Annuities have been helping investors address their long-term retirement needs. Your financial advisor can help you design your Polaris Select Investor Variable Annuity so that it s uniquely suited to your retirement goals and objectives.

16 Important risks and additional information about investing in the variable portfolios 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. Investments that concentrate on one economic sector or geographic region are generally subject to greater volatility than more diverse investments. Portfolios that invest in technology companies are subject to additional risks and may be affected by short product cycles, aggressive pricing, competition from new market entrants and obsolescence of existing technology. Portfolio returns may be considerably more volatile than a portfolio that does not invest in technology companies. Portfolios that invest in small and mid-size company stocks are generally riskier and more volatile than portfolios that invest in larger, more established companies. Portfolios that invest in high-yield bonds may be subject to greater price swings than portfolios that invest in higher-rated bonds. The payment of interest and principal is not assured. Portfolios that invest in real estate investment trusts (REITs) involve risks such as refinancing, economic conditions in the real estate industry, changes in property values, dependency on real estate management, and other risks associated with a concentration in one sector or geographic region. Investments in securities related to gold and other precious metals and minerals are speculative and impacted by a host of worldwide economic, financial and political factors. 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. You may withdraw money from your model or Select Strategy 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 unless you direct us differently. If you make a withdrawal from specific portfolios in a model or Select Strategy that changes the existing percentages, your investment may no longer be consistent with the intended objective. Asset allocation models and Select Strategies may not be appropriate if you are interested in directing your own investments. Often, alternative asset classes are not registered under the U.S. securities laws or similar laws in other countries, and therefore, are subject to less regulation and have additional risks than securities that are registered in the U.S. Each fund s prospectus has information on that fund s investment strategies and risks. Additional information about the 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 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 LLC. 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. All contract and optional benefit guarantees, including any fixed account crediting rates or annuity rates, are backed by the claims-paying ability of the issuing insurance company. They are not backed by the broker/dealer from which this annuity is purchased, by the insurance agency from which this annuity is purchased or any affiliates of those entities and none makes any representations or guarantees regarding the claims-paying ability of the issuing insurance company. This material was prepared to support the marketing of annuities issued by American General Life Insurance Company (AGL) and The United States Life Insurance Company in the City of New York (US Life). Please keep in mind that AGL, US Life, and their distributors and representatives may not give tax, accounting or legal advice. Any tax statements in this material are not intended to suggest the avoidance of U.S. federal, state or local tax penalties. Such discussions generally are based upon the company s understanding of current tax rules and interpretations. Tax laws are subject to legislative modification, and while many such modifications will have only a prospective application, it is important to recognize that a change could have retroactive effect as well. Please seek the advice of an independent tax advisor or attorney for more complete information concerning your particular circumstances and any tax statements made in this material. The purchase of an annuity is not required for and is not a term of the provision of any banking service or activity. Polaris Select Investor Variable Annuity, form number AG-803 (7/13), is issued by American General Life Insurance Company (AGL). In New York, Polaris Select Investor Variable Annuity, form number US-803 (12/15) and US-803-PSI-C (12/15), are issued by The United States Life Insurance Company in the City of New York (US Life). Distributed by AIG Capital Services, Inc. (ACS), Member FINRA, Oxnard Street, Suite 750, Woodland Hills, CA , AGL, US Life and ACS are members of American International Group, Inc. (AIG) American International Group, Inc. Polaris is a registered trademark. All rights reserved. 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 aig.com/annuities R5450CON.4 (10/16)

17 Product Summary (B-Share) Base contract Optional Return of Purchase Payment Death Benefit Maximum issue ages 1 Minimum initial investment % annualized fee deducted from the average daily ending net asset value allocated to the variable portfolios. $50 contract maintenance fee ($30 in NM). Currently waived if contract value is $75,000 or more on contract anniversary. 0.30% annualized fee deducted from the average daily ending net asset value allocated to the variable portfolios. 85 with Account Value Death Benefit. 75 with optional Return of Purchase Payment Death Benefit. $25,000 (Qualified & Non-Qualified); Additional: $500 (Qualified & Non-Qualified); $100 if Automatic Payment Plan is used. Professional money management Total annual portfolio operating expenses range from 0.34% to 7.24% 3,4 as of 12/31/2015. Dollar cost averaging 5 Transfers between variable portfolios Automatic asset rebalancing Free withdrawals during the withdrawal charge period Withdrawal charges Systematic withdrawals Nursing home waiver Choose from two Dollar Cost Averaging (DCA) fixed accounts: 6 month or 1 year. 15 free transfers per contract year; $25 thereafter (PA and TX, $10). Quarterly, semi-annual or annual available. 10% of purchase payments not yet withdrawn each contract year and still subject to withdrawal charges. Note: if you are taking your contract s Required Minimum Distribution (RMD), any withdrawal charges applicable to such withdrawals are currently waived. 5-year declining withdrawal charge (applies to each purchase payment): %. Minimum withdrawal amount is $100. Available on a monthly, quarterly, semi-annual, or annual basis. Waives withdrawal charges for certain withdrawals (not available in CA). Annuitization Latest annuity date: 95th birthday. Upon annuitization, the death benefit will no longer apply. Please contact us prior to reaching age 95 to discuss options. 1 If jointly owned, age is based on the older owner. 2 Additional purchase payments will not be accepted on or after the 86th birthday. 3 Maximum expense shown is subject to a contractual waiver of 3.98%, through 12/31/19, that reduces the fee to 3.26%. 4 Deducted from the underlying funds of the applicable trust. 5 Dollar cost averaging does not ensure a profit or protect against loss. You should consider your ability to sustain investments during periods of market downturns. Any fixed rates paid will be paid on a declining balance. Additional state variations may apply. Product and features may not be available in all states. Please see the prospectus for details. Firm restrictions may apply; please check with your financial advisor.

18 This material must not be used without the Polaris Select Investor product brochure; it cannot be used alone. Polaris Select Investor Variable Annuity is 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. Annuities are long-term investments designed for retirement. Early withdrawals may be subject to withdrawal charges. Partial withdrawals may reduce benefits available under the contract, as well as the amount available upon a full surrender. Withdrawals of taxable amounts are subject to ordinary income tax and, if taken prior to age 59½, an additional 10% federal tax may apply. All contract and optional benefit guarantees, including any fixed account crediting rates or annuity rates, are backed by the claims-paying ability of the issuing insurance company. They are not backed by the broker/dealer from which this annuity is purchased, by the insurance agency from which this annuity is purchased or any affiliates of those entities and none makes any representations or guarantees regarding the claims-paying ability of the issuing insurance company. This material was prepared to support the marketing of annuities issued by American General Life Insurance Company (AGL) and The United States Life Insurance Company in the City of New York (US Life). Please keep in mind that AGL, US Life, and their distributors and representatives may not give tax, accounting or legal advice. Any tax statements in this material are not intended to suggest the avoidance of U.S. federal, state or local tax penalties. Such discussions generally are based upon the company s understanding of current tax rules and interpretations. Tax laws are subject to legislative modification, and while many such modifications will have only a prospective application, it is important to recognize that a change could have retroactive effect as well. Please seek the advice of an independent tax advisor or attorney for more complete information concerning your particular circumstances and any tax statements made in this material. The purchase of an annuity is not required for and is not a term of the provision of any banking service or activity. Polaris Select Investor Variable Annuity, form number AG-803 (7/13), is issued by American General Life Insurance Company (AGL). In New York, Polaris Select Investor Variable Annuity, form number US-803 (12/15) is issued by The United States Life Insurance Company in the City of New York (US Life). Distributed by AIG Capital Services, Inc. (ACS), Member FINRA, Oxnard Street, Suite 750, Woodland Hills, CA , AGL, US Life and ACS are members of American International Group, Inc. (AIG). 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 R5450CNB.3 (9/16) aig.com/annuities

19 Polaris Select Investor VARIABLE ANNUITY INVESTMENT GUIDE

20 Investment Guide Design Your Investment With Polaris Select Investor Variable Annuity, you can seek to meet your investment objectives by choosing from a wide array of investment options using one of these different approaches: 1 Build your own allocation With over 90 investment choices, you can select from a wide range of investments from more than 30 experienced money managers and more than 20 different asset classes. 2 Choose an asset allocation model The Polaris Portfolio Allocator models are designed by Morningstar Investment Management LLC to help you take advantage of the potential benefits of asset allocation. 3 Choose a Select Strategy that includes alternative investments Select Strategies offer you a simple way to add alternatives to your portfolio. The Select Strategies, designed by SunAmerica Asset Management, LLC (SAAMCo), combine a pre-selected allocation of six alternative portfolios with a corresponding Polaris Portfolio Allocator model. Professional money management Polaris Select Investor Variable Annuity offers you the benefits of professional money management to help you diversify your investment and maximize long-term growth potential. 1 2 Money managers and portfolios are subject to change. Please see the prospectus. Additional information 1 American Funds SAST Portfolios and the VCP Managed Asset Allocation SAST Portfolio invest in the American Funds Insurance Series, which has the same investment manager (Capital Research and Management Company) as American Funds. 2 A Waddell & Reed investment management company.

21 1 Build your own allocation from these available portfolios in Polaris Select Investor Variable Annuity ASSET CLASS POLARIS PORTFOLIO MONEY MANAGER EQUITIES Large Growth Large Core Large Value Small and Mid- Cap Growth Small and Mid- Cap Core Small and Mid- Cap Value American Funds Growth SAST 3,4 Blue Chip Growth Capital Growth Fundamental Growth Invesco V.I. American Franchise Fund Growth SA AB Growth SA Columbia Focused Growth SA Janus Focused Growth Stock BlackRock ishares Equity Appreciation V.I. Fund Equity Opportunities Lord Abbett Fundamental Equity Lord Abbett Growth and Income SA MFS Massachusetts Investors Trust VALIC Company I Stock Index Fund American Funds Growth-Income SAST 3,4 Dogs of Wall Street Growth-Income Invesco V.I. Comstock Fund Invesco V.I. Growth and Income Fund Value SA Columbia Focused Value SA Legg Mason BW Value Aggressive Growth Growth Opportunities Mid-Cap Growth Mid Cap Growth Small Cap VALIC Company I Mid Cap Index Fund VALIC Company I Small Cap Index Fund Mid Cap Value Small & Mid Cap Value Small Company Value Capital Research and Management Company Massachusetts Financial Services Company The Boston Company Asset Management, LLC Wells Capital Management Incorporated Invesco Advisers, Inc. Goldman Sachs Asset Management, L.P., Janus Capital Management LLC, SunAmerica Asset Management, LLC AllianceBernstein L.P. Columbia Management Investment Advisers, LLC Janus Capital Management, LLC T. Rowe Price Associates, Inc. BlackRock Advisors, LLC OppenheimerFunds, Inc. Lord, Abbett & Co. LLC Lord, Abbett & Co. LLC Massachusetts Financial Services Company SunAmerica Asset Management, LLC Capital Research and Management Company SunAmerica Asset Management, LLC J.P. Morgan Investment Management Inc. Invesco Advisers, Inc. Invesco Advisers, Inc. American Century Investment Management, Inc., SunAmerica Asset Management, LLC, Wellington Management Company LLP Columbia Management Investment Advisers, LLC Brandywine Global Investment Management, LLC Wells Capital Management Incorporated Invesco Advisers, Inc. J.P. Morgan Investment Management Inc. American Century Investment Management, Inc., SunAmerica Asset Management, LLC, Wellington Management Company LLP J.P. Morgan Investment Management Inc., PNC Capital Advisors, LLC, SunAmerica Asset Management, LLC SunAmerica Asset Management, LLC SunAmerica Asset Management, LLC Goldman Sachs Asset Management, L.P., Massachusetts Financial Services Company, SunAmerica Asset Management, LLC AllianceBernstein L.P. Franklin Advisory Services, LLC Please see page 8 for important risks and additional information about asset classes. 1

22 Investment Guide ASSET CLASS POLARIS PORTFOLIO MONEY MANAGER EQUITIES Multi-Cap Specialty Foreign and Global Stock Emerging Markets Capital Appreciation Growth Natural Resources Real Estate Technology Telecom Utility Morgan Stanley UIF Global Infrastructure Portfolio VALIC Company I Global Social Awareness Fund VALIC Company I Nasdaq-100 Index Fund American Funds Global Growth SAST 3,4 Foreign Value Global Equities International Diversified Equities International Equity International Growth and Income VALIC Company I International Equities Index Fund Emerging Markets Wellington Management Company LLP Wellington Management Company LLP Wellington Management Company LLP FIAM LLC Columbia Management Investment Advisers, LLC Massachusetts Financial Services Company Morgan Stanley Investment Management Inc. SunAmerica Asset Management, LLC SunAmerica Asset Management, LLC Capital Research and Management Company Templeton Investment Counsel, LLC J.P. Morgan Investment Management Inc. Morgan Stanley Investment Management Inc. Janus Capital Management LLC, SunAmerica Asset Management, LLC, T. Rowe Price Associates, Inc. Putnam Investment Management, LLC SunAmerica Asset Management, LLC J.P. Morgan Investment Management Inc. FIXED INCOME/CASH 2 Money Market Goldman Sachs VIT Government Money Market Fund Goldman Sachs Asset Management, L.P. Columbia Variable Portfolio Limited Duration Short-Term Bond Credit Fund Columbia Management Investment Advisers, LLC Lord Abbett Short Duration Income Lord, Abbett & Co. LLC Inflation Protected Securities Real Return Wellington Management Company LLP Corporate Bond Federated Investment Management Company PineBridge Investments LLC, Wellington Management Diversified Fixed Income Company LLP Corporate/ Government and Quality Bond Wellington Management Company LLP Govt. Bond JP Morgan Investment Management Inc., Massachusetts SA JPMorgan MFS Core Bond Financial Services Company Ultra-Short Bond Portfolio Dimensional Fund Advisors LP High-Yield Bond High-Yield Bond PineBridge Investments LLC Foreign and Global Bond Multi-Sector/ Non Traditional Bond Columbia Variable Portfolio Emerging Markets Bond Fund Global Bond PIMCO Emerging Markets Bond Portfolio BlackRock ishares Dynamic Fixed Income V.I. Fund Franklin Strategic Income VIP Fund Goldman Sachs VIT Strategic Income Fund Lord Abbett Bond Debenture PIMCO Unconstrained Bond Portfolio Columbia Management Investment Advisers, LLC Goldman Sachs Asset Management International Pacific Investment Management Company LLC BlackRock Advisors, LLC Franklin Advisers, Inc. Goldman Sachs Asset Management, L.P. Lord, Abbett & Co. LLC Pacific Investment Management Company LLC

23 ASSET CLASS POLARIS PORTFOLIO MONEY MANAGER American Funds Asset Allocation SAST 3,4 Capital Research and Management Company Asset Allocation Edge Asset Management, Inc. Asset Allocation: Diversified Growth Putnam Investment Management, LLC Balanced J.P. Morgan Investment Management Inc. Traditional Asset Allocation Franklin Founding Funds Allocation VIP Fund Managed Allocation Balanced Managed Allocation Growth Franklin Templeton Services, LLC SunAmerica Asset Management, LLC SunAmerica Asset Management, LLC Managed Allocation Moderate SunAmerica Asset Management, LLC Managed Allocation Moderate Growth SunAmerica Asset Management, LLC SA BlackRock Multi-Asset Income Portfolio BlackRock Investment Management, LLC SA MFS Total Return Massachusetts Financial Services Company ASSET ALLOCATION Income Oriented Asset Allocation Risk Managed Asset Allocation American Funds Capital Income Builder Franklin Income VIP Fund BlackRock Global Allocation V.I. Fund Invesco V.I. Balanced-Risk Allocation Fund SA BlackRock VCP Global Multi Asset Portfolio SA Schroders VCP Global Allocation Portfolio SA T. Rowe Price VCP Balanced Portfolio SunAmerica Dynamic Allocation Portfolio Capital Research and Management Company Franklin Advisers, Inc. BlackRock Advisors, LLC Invesco Advisers, Inc. BlackRock Investment Management, LLC Schroder Investments Management North America Inc. T. Rowe Price Associates, Inc. SunAmerica Asset Management, LLC, AllianceBernstein L.P. SunAmerica Dynamic Strategy Portfolio SunAmerica Asset Management, LLC, AllianceBernstein L.P. VCP Managed Asset Allocation SAST Portfolio 4,5 Capital Research and Management Company VCP Total Return Balanced Portfolio Pacific Investment Management Company LLC VCP Value Portfolio Invesco Advisers, Inc. BlackRock ishares Dynamic Allocation V.I. Fund BlackRock Advisors, LLC Tactical Asset Allocation Goldman Sachs VIT Global Trends Allocation Fund Ivy Funds VIP Asset Strategy Goldman Sachs Asset Management, L.P. Waddell & Reed Investment Management Company PIMCO All Asset Portfolio Pacific Investment Management Company LLC BlackRock ishares Alternative Strategies V.I. Fund BlackRock Advisors, LLC Multi- Alternatives Goldman Sachs VIT Multi-Strategy Alternatives Portfolio Goldman Sachs Asset Management, L.P. Neuberger Berman AMT Absolute Return Multi-Manager Portfolio NB Alternative Investment Management LLC Certain portfolios are not available in some firms. Please check with your financial advisor. 3 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. 4 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 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. Please see page 8 for important risks and additional information about asset classes. 3

24 Investment Guide 2 Choose a Polaris Portfolio Allocator Model Take advantage of the potential benefits of asset allocation with professionally designed asset allocation models. Polaris Portfolio Allocator models are developed by Morningstar Investment Management LLC, a recognized leader in asset allocation strategies. You can use a model and its allocation as a guide when designing your investment allocation or you may build your own allocation with the help of your financial advisor. Keep in mind, 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. 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 Polaris Portfolio Allocator models are 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. 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. If you attempt to invest in more than one model at a time, your investment may no longer be consistent with the model s investment objectives. 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 unless you direct us differently. If you make a withdrawal from specific portfolios in a model that changes the existing percentages, your investment may no longer be consistent with the model s intended objectives. 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. Please see back cover for more information on Morningstar Investment Management LLC Morningstar Investment Management LLC.

25 Model 1 Model 2 Model 3 Model 4 Target Allocation: Stocks/Fixed Income 50%/50% 60%/40% 70% /30% 90% /10% Blue Chip Growth (Massachusetts Financial Services Company) 2% 3% 4% 4% Capital Growth (The Boston Company Asset Management, LLC) 2% 3% 3% 4% SA AB Growth Portfolio 1% 1% 1% 2% SA Janus Focused Growth 0% 1% 1% 2% Equity Opportunities (OppenheimerFunds, Inc.) 3% 4% 4% 6% SA MFS Massachusetts Investors Trust 6% 6% 7% 8% American Funds Growth-Income SAST 3,4 1% 4% SA Legg Mason BW Value 4% 4% 4% 5% Dogs of Wall Street (SunAmerica Asset Management, LLC) 3% 3% 3% 5% 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% 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 3,4 2% 3% 4% 6% Foreign Value (Templeton Investment Counsel, LLC) 3% 3% 3% 4% International Diversified Equities (Morgan Stanley) 3% 3% 4% 5% Emerging Markets (J.P. Morgan Investment Management Inc.) 1% 2% 2% Real Return (Wellington Management Company LLP) 5% 3% 2% Corporate Bond (Federated Investment Management Company) 10% 8% 7% 1% Government and Quality Bond (Wellington Management Company LLP) 8% 8% 7% 2% SA JPMorgan MFS Core Bond 17% 13% 10% 5% Ultra-Short Bond Fund (Dimensional Fund Advisors LP) 2% 1% High-Yield Bond (PineBridge Investments LLC) 4% 3% 2% Global Bond (Goldman Sachs Asset Management International) 4% 4% 2% 2% Actual allocation may differ from the target allocation. Please see page 3 for additional information. Lower Risk/Reward Higher Potential 5

26 Investment Guide 3 Choose a Select Strategy Designed especially for Polaris Select Investor Variable Annuity, a Select Strategy provides an easy way to add alternatives to your portfolio. Each Select Strategy combines a Polaris Portfolio Allocator model with a pre-set allocation of alternative investments to offer additional diversification opportunities. When you choose this option, your contract is automatically allocated with 70% invested in one of the Polaris Portfolio Allocator models of your choosing and 30% invested in the pre-selected combination of alternative funds. Select Strategy 1 Portfolio Allocator Model 1 Select Strategy 2 Portfolio Allocator Model 2 Select Strategy 3 Portfolio Allocator Model 3 Select Strategy 4 Portfolio Allocator Model 4 SELECT STRATEGIES ALLOCATION Polaris Portfolio Allocator Model (one of four) 70% BlackRock ishares Alternative Strategies V.I. Fund 6% Select Strategy Example Goldman Sachs VIT Multi-Strategy Alternatives Portfolio Morgan Stanley UIF Global Infrastructure Portfolio Neuberger Berman AMT Absolute Return Multi-Manager Portfolio 6% 5% 6% Alternatives 30% 70% Polaris Portfolio Allocator Model PIMCO Unconstrained Bond Portfolio 4% Real Estate (FIAM LLC) 3% 6 Select Strategies are not intended to provide investment advice. You may invest in only one Select Strategy at a time. If you attempt to invest in more than one Select Strategy at a time, your investment may no longer be consistent with the intended investment objectives. You may withdraw money from your Select Strategy 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 unless you direct us differently. If you make a withdrawal from specific portfolios that changes the existing percentages, your investment may no longer be consistent with the intended objectives. A Select Strategy may not be appropriate if you are interested in directing your own investments or do not want exposure to alternative funds. While certain Polaris portfolios may be included in a Select Strategy, this does not mean that these portfolios are superior to any other portfolio not included in a Select Strategy. Please see back cover for more information on Morningstar Investment Management LLC.

27 Alternative investments included in the Select Strategies Your overall portfolio may be further diversified with these funds included in each Select Strategy. These alternative investments were chosen to create a mix of strategies that offers potential diversification benefits beyond traditional equity-fixed income allocations. BlackRock ishares Alternative Strategies V.I. Fund Goldman Sachs VIT Multi-Strategy Alternatives Portfolio Morgan Stanley UIF Global Infrastructure Portfolio Neuberger Berman AMT Absolute Return Multi-Manager Portfolio PIMCO Unconstrained Bond Portfolio Real Estate Portfolio (FIAM LLC) This fund of ishares ETFs offers exposure to alternative investments, which may include emerging market debt, commodities, U.S. and international REITs, global equities with minimum volatility, and preferred stocks. A portfolio which invests across various alternative strategies, as well as non-traditional asset classes such as global infrastructure, real estate, and commodities, through differentiated investment styles and strategies. This fund invests in equity securities of global infrastructure companies with exposure to all major economic infrastructure sectors, such as energy, transportation, communication and others. Using a multi-strategy approach that provides investors with access to high-quality alternatives managers, this portfolio may include strategies commonly used by hedge funds such as merger arbitrage, equity and credit long/short and restructurings. With a flexible approach to capturing global opportunities and managing risk through defensive capabilities and a wide duration range (-3 to +8 years), this fund s goal is to deliver positive absolute returns independent of the market environment. The U.S. REIT team applies bottom-up, fundamental research and seeks to identify real estate companies with attractive long-term capital growth potential. These funds expect to invest in positions that emphasize alternative investment strategies and/or non-traditional asset classes and, as a result, are subject to special risks. Alternative investment strategies may be riskier than traditional investment strategies and involve leverage or may use various complex hedging techniques, like options and derivatives. Diversification does not ensure a profit or protect against market loss. There is no assurance that a diversified portfolio will outperform a non-diversified portfolio. Past performance is not a guarantee of future results. The performance of these types of strategies may not be highly correlated with traditional investments in debt or equities and the correlation of returns may not be stable over time. This means that when the value of traditional investments is decreasing, the value of alternative asset classes may be increasing or decreasing or be relatively unchanged. Often, alternative asset classes are not registered under the U.S. securities laws or similar laws in other countries, and therefore, are subject to less regulation and have additional risks than securities that are registered in the U.S. Each fund s prospectus has information on that fund s investment strategies and risks. 7

28 Investment Guide Important risks and 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 and VALIC, 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. Investments that concentrate on one economic sector or geographic region are generally subject to greater volatility than more diverse investments. Portfolios that invest in technology companies are subject to additional risks and may be affected by short product cycles, aggressive pricing, competition from new market entrants and obsolescence of existing technology. Portfolio returns may be considerably more volatile than a portfolio that does not invest in technology companies. Portfolios that invest in small and mid-size company stocks are generally riskier and more volatile than portfolios that invest in larger, more established companies. Portfolios that invest in high-yield bonds may be subject to greater price swings than portfolios that invest in higherrated bonds. The payment of interest and principal is not assured. Portfolios that invest in real estate investment trusts (REITs) involve risks such as refinancing, economic conditions in the real estate industry, changes in property values, dependency on real estate management, and other risks associated with a concentration in one sector or geographic region. Investments in securities related to gold and other precious metals and minerals are speculative and impacted by a host of worldwide economic, financial and political factors. 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. 8

29 Polaris Select Investor VARIABLE ANNUITY Today, planning for your long-term goals such as retirement may be a priority. You ll want to make sure your investments are working hard to help you reach your goals. For over two decades, Polaris Variable Annuities have been helping investors address their long-term investment needs. Your financial advisor can help you design your Polaris Select Investor Variable Annuity so that it s uniquely suited to your retirement goals and objectives. 9