Polaris Platinum III

Transcription

1 Polaris Platinum III

2 Polaris: The Total Retirement Package A Polaris Platinum III Variable Annuity combines growth potential, family protection features and optional retirement income choices to help you address today s most challenging planning needs while you re accumulating assets and when you are ready to draw on those assets for retirement income. Polaris Platinum III offers the flexibility to design an investment that s right for you. n Performance for the growth potential you need Respected money managers and professionally designed asset allocation strategies. n Protection for the sense of security you want A choice of optional income protection features and an enhanced death benefit option. n Strength for enduring stability The life insurance companies that issue Polaris Variable Annuities are dedicated to supporting your needs today, and in the years ahead. Contract and optional benefit guarantees are backed by the financial strength and claims-paying ability of American General Life Insurance Company (AGL) except in New York, where they are backed by The United States Life Insurance Company in the City of New York (US Life). 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 Customize Your Variable Annuity Polaris Platinum III Costs and other important information Issue ages 1 n Base contract with standard death benefit 1.30% 2 $50 annual contract administration charge. * Currently waived for contracts Up to 85 of $75,000+. Minimum initial investment: $10,000 (NQ); $4,000 (Q); additional: $500 (NQ and Q); $100 if Automatic Payment Plan is used. 3 n Professional money management Total portfolio operating expenses range from 0.72% to 1.48% 4 as of 12/31/14 and 1/31/15, respectively. n Dollar cost averaging n Transfers between variable portfolios Choose from two Dollar Cost Averaging (DCA) Fixed Accounts: 6-month or 1-year 5 15 free per contract year $25 thereafter. * n Automatic asset rebalancing n Free withdrawals during the withdrawal charge period n Withdrawal charges n Systematic withdrawals Quarterly, semiannual or annual available. (Quarterly required with income protection features.) Greater of: 10% of purchase payments not yet withdrawn each contract year or, if an income protection option is elected, the maximum annual withdrawal amount. 7-year declining withdrawal charge (applies to each payment): %. After 7 full years, withdrawal charges no longer apply to a payment. Minimum withdrawal amount is $100. Available on a monthly, quarterly, semiannual or annual basis. n Nursing home waiver Waives withdrawal charges for certain withdrawals. * n 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. Income Protection You may choose one income protection feature n Polaris Income Plus Initial: +1.10% Single Life 6 * +1.35% Joint Life 6 * n Polaris Income Builder Initial: +1.10% Single Life 6 * +1.35% Joint Life 6 * 45/80 (Min/Max) 7 65/80 (Min/Max) 7 Investment requirements apply. Fee rate for these features is guaranteed for one year. After one year, fee rate will be adjusted quarterly based on a predetermined, non-discretionary formula. Minimum annual fee rate is 0.60%. Maximum annual fee rate for the life of the contract is 2.20% for Single Life; 2.70% for Joint Life. Enhanced family protection You may choose the following death benefit n Maximum Anniversary Value Death Benefit +0.25% 2 Up to 80 1 If jointly owned, age is based on older owner unless otherwise indicated. 2 Annualized fee deducted from the average daily ending net asset values allocated to the variable portfolios. 3 Additional purchase payments will not be accepted on or after the 86th birthday. 4 Deducted from the underlying funds of the applicable trust. 5 Dollar cost averaging does not ensure a profit or protect against a 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. 6 Annualized fee calculated as a percentage of the Income Base, deducted from contract value quarterly. The maximum annualized fee rate decrease or increase is 0.25% each quarter. This means the fee rate can decrease or increase by no more than % each quarter (0.25%/4). 7 Single Life: Age is based on older individual if jointly owned. Joint Life: Age is based on younger individual. Please see a prospectus for more detailed information about age requirements. Maximum issue age may be lower if certain death benefits and/or income protection features are selected. Please check with your financial advisor for more information. * See back cover for state variations. Additional state variations may apply. Features may not be available in all states. Summary information only. Please see the prospectus for details.

4 State variations for features described n In California, the Nursing Home Waiver is not available. n In New York, Oregon, Texas and Washington, the annual contract administration charge and the fee for Income Builder and Income Plus are deducted from the variable portfolios only. n In New Mexico, the annual contract administration charge is $30. n In Pennsylvania and Texas, any transfer over the limit of 15 transfers between variable portfolios and/or the fixed account (if available) will incur a $10 transfer fee. This material must not be distributed without a Polaris product brochure; it cannot be used alone. Polaris Platinum III 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. An investment in Polaris Platinum III involves investment risk, including possible loss of principal. The contract, when redeemed, may be worth more or less than the total amount invested. The purchase of Polaris Platinum III is not required for, and is not a term of, the provision of any banking service or activity. 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 representation or guarantees regarding the claims-paying ability of the issuing insurance company. Polaris Platinum III Variable Annuity, form number AG-803 (7/13), is issued by American General Life Insurance Company (AGL). In New York, Polaris Platinum III Variable Annuity, form number FS-993-PPIII (12/10), 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) American International Group, Inc. Polaris is a registered trademark. All rights reserved. aig.com/annuities R5171CCN.11 (9/15)

5 The Total Retirement Package When your goals are performance protection strength

6 Polaris: The Total Retirement Package Polaris Variable Annuities allow you and your insurance-licensed financial advisor to design a customized income solution for a portion of your retirement portfolio. performance for the growth potential you need Maximize the long-term growth potential of your retirement income with these powerful performance features: n Experienced money managers n Actively managed portfolios that use a risk management process n Tax deferral protection for the sense of security you want Safeguard your retirement assets with a choice of valuable features designed to help insure against market volatility and generate lifetime income: n Lifestyle protection n Family protection Certain protection features are optional you can choose not to elect them and you won t be charged for them. PAGE 06 Performance for the growth potential you need 08 Volatility Control Portfolios 15 Secure lifetime income for retirement with Polaris Income Plus 22 Secure lifetime income for retirement with Polaris Income Builder 24 Protect assets for your loved ones To learn about the specific Polaris Variable Annuity you may be considering, please see the enclosed product summary brochure. 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 (AGL) except in New York, where they are issued by The United States Life Insurance Company in the City of New York (US Life). 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

7 strength for enduring stability American General Life and US Life are each strong and established insurance companies: Pioneers in the development of innovative retirement income solutions Committed to supporting your needs today, and in the years ahead 1

8 Today s priorities for retirement Retirement today involves new challenges living longer, losing ground to rising prices over time, and relying more on personal investments in an up-and-down stock market. Make these new priorities part of your planning now and you ll be one step closer to a more comfortable retirement. Plan for a long retirement. 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 Maintain your lifestyle. With inflation, retirement may also cost more than you think. Over the past 80 years, inflation has averaged 3.65% annually. And while that may not seem like a lot, over time, the impact of even moderate inflation can be dramatic. In fact, assuming the same rate of inflation experienced over the past 30 years approximately 2.7% retirement expenses would more than double over the next 30 years! 25% chance that one spouse will live to age 97 Hypothetical Expenses Source: Society of Actuaries 2012 Individual Annuitant Mortality Tables. Assumes a couple, both age 65 $133,824 $60, Source: Wilshire Compass,

9 Participate in market 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. 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. Growth of a $1 Investment, Stock Market Volatility Since $5,316 Dips (5% or more) Corrections (10% or more) Bear Markets (20% or more) per year per year 3 Once every 3 years 3 $24 $126 T-Bills Bonds Stocks Market volatility is to be expected over time. That s why it s important to look for ways to reduce downside risk. 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 91-day T-Bills. Bonds are represented by the US Core Bond Index. Stocks are represented by the US Large Cap Core Stocks Index. The US Core Bond Index and the US Large Cap Core Stocks Index are a proxy of the bond and equity markets. The indices have been constructed by Wilshire with data from various sources to provide a historical track record back to 12/31/1925. 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, 1/2/ /31/ Average for period shown. 3

10 Polaris Variable Annuity: A versatile investment for your retirement A Polaris Variable Annuity is a long-term investment that combines growth potential, protection features for your family and optional retirement income choices. Polaris is designed to help you address today s most challenging planning needs while you re building assets in the accumulation phase and when you are ready to draw on those assets during the income phase. Polaris offers a combination of benefits not typically found in other types of investments. 4

11 Key product features Variable Annuities Fixed Annuities Mutual Funds Stocks Bonds Tax advantages including tax deferral and tax-free rebalancing (tax deferral) (may be tax-free) Participation in the growth potential of the stock market Protection features that can insure against market risk for an additional fee 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: U.S. 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 long-term 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. * 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. Your financial advisor can help you determine which investments may be right for you. Be sure to talk to your financial advisor about your particular situation before you invest. 5

12 Performance for the growth potential you need Polaris offers you the benefits of professional money management, tax deferral and time-tested investment techniques to help you diversify your investment and maximize long term growth potential Additional information n n 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, are not affiliated with American General Life, US Life or American International Group, Inc. (AIG). 4 These money managers may be available through the SunAmerica Dynamic Allocation Portfolio, the SunAmerica Dynamic Strategy Portfolio, and the Managed Allocation Portfolios (MAPs) offered in Polaris. More information about individual investment options, including MAPs and Portfolio Allocator models, is available in the Polaris Additional Investment Options brochure. 6

13 Performance Benefit from the power of tax deferral Taxes can have a big impact on long-term investment returns. While the S&P 500 Index had an average annual return of 10.1% from 1926 through 2014, the after-tax return was 8.1%. 5 With a tax-deferred variable annuity like Polaris, the money that might otherwise go to pay current taxes remains invested in your variable annuity for greater growth potential. Of course, if you use your variable annuity to fund a retirement plan or account, such as an IRA or 401(k), there is no additional tax deferral benefit because these plans already enjoy tax-deferred status. However, a variable annuity does offer other insurance features and benefits that you pay for through what s called the separate account charge, plus the cost for any optional features you elect. Keep in mind, tax deferral is not the same as tax-free when you withdraw money from your variable annuity, you will be taxed on the earnings. And, because deferring taxes is a benefit the federal government extends to encourage long-term savings, if you make a withdrawal before age 59½, an additional 10% federal tax may apply. Early withdrawal charges may also apply. It s important to know that some variable annuity benefits are based on the amount of money you have invested, and withdrawals may reduce the value of those benefits, including the guaranteed death benefit and the amount available upon a full surrender. Use a systematic investing strategy One way to invest is with dollar cost averaging, an automatic monthly investment program. With dollar cost averaging, you buy more units if the price is lower, fewer if the price is higher potentially resulting in a lower average cost per unit. Polaris offers you specially designed Dollar Cost Averaging fixed accounts that provide a competitive rate of return on your money as it is systematically transferred into selected investment options over a specific time period. Ask your financial advisor for available DCA fixed account terms. Keep in mind, dollar cost averaging cannot guarantee a profit or protect against a market loss. You should consider your ability to continue to invest during periods of market volatility. Additional information n Any fixed rates credited to DCA fixed accounts will be paid on a declining balance. Money in these accounts is automatically transferred out on a monthly basis over the specified period (6 months or 1 year), depending on which DCA fixed account you select. The availability of DCA fixed account terms varies by state. n Automated transfers that are part of the Dollar Cost Averaging features do not count against your 15 free transfers per year. 5 Source: Ibbotson Associates, Inc., Federal income tax is calculated using the historical marginal and capital gains tax rates for a single taxpayer earning $100,000. No state income tax is included. Past performance is not a guarantee of future results. 7

14 Help grow and protect your money with Volatility Control Portfolios Volatility Control Portfolios take advantage of risk management processes that have been successfully used by institutional investors. n Investing in stocks 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), and preserve long-term return potential. As a result, a volatility control approach may provide more consistent performance without giving up long-term growth potential. Of course, by investing in a portfolio that is designed to control volatility, you may have less risk from market downturns, but may also have less opportunity to benefit from market gains. n Each of the Volatility Control Portfolios offers you the benefits of professional money management for long-term growth potential, diversification across asset classes, and risk management. Volatility Control Portfolios n SunAmerica Dynamic Allocation Portfolio n SunAmerica Dynamic Strategy Portfolio n VCP Managed Asset Allocation SAST Portfolio n VCP Total Return Balanced Portfolio n 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 12 for important risks and additional information. 8

15 If you elect an optional income protection feature, there are multiple ways to invest using our Volatility Control Portfolios The following investment requirements apply if you elect Polaris Income Plus (Income Option 1, 2 or 3) or Polaris Income Builder. Both features are described later in this brochure. Performance Your Investment Choices 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% may be invested in one of six Check the Box options: Invest in a combination of: Invest in a combination of: Invest in a combination of: SunAmerica Dynamic Allocation Portfolio SunAmerica Dynamic Strategy Portfolio VCP Managed Asset Allocation SAST Portfolio VCP Total Return Balanced Portfolio VCP Value Portfolio SunAmerica Dynamic Allocation Portfolio SunAmerica Dynamic Strategy Portfolio VCP Managed Asset Allocation SAST Portfolio VCP Total Return Balanced Portfolio VCP Value Portfolio SunAmerica Dynamic Allocation Portfolio VCP Managed Asset Allocation SAST Portfolio VCP Total Balanced Portfolio VCP Value Portfolio 30% 30% 10% 10% 10% 18% 18% 18% 18% 18% 30% 20% 20% 20% Invest equally in: SunAmerica Dynamic Allocation Portfolio SunAmerica Dynamic Strategy Portfolio 45% 45% Invest in: SunAmerica Dynamic Allocation Portfolio 90% Invest in: SunAmerica Dynamic Strategy Portfolio 90% Or a total of 90% may be invested in any combination of the following portfolios: SunAmerica Dynamic Allocation Portfolio SunAmerica Dynamic Strategy Portfolio 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 JPMorgan MFS Core Bond (J.P. Morgan Investment Management Inc., Massachusetts Financial Services Company) Cash Management (BofA Advisors, LLC) A maximum of 50% may be allocated to any of these portfolios: VCP Managed Asset Allocation SAST Portfolio (Capital Research and Management Company) VCP Total Return Balanced Portfolio (Pacific Investment Management Company LLC) VCP Value Portfolio (Invesco Advisers, Inc.) n 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. n If you elect an optional income protection feature, 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. n 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 Additional Investment Options brochure to learn more. 9

16 Take advantage 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 current income and moderate capital appreciation while managing portfolio volatility 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 component will generally be divided among growth equity and value equity portfolios, drawing on research provided by Wilshire Funds Management. 6 SunAmerica Dynamic Strategy Portfolio (SDSP): The fund-of-funds component will generally invest a greater portion of its assets in value equity portfolios than growth equity portfolios, drawing on research provided by Ibbotson Associates, Inc. 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. 10 Additional information n 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. n 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 12 for important risks and additional information.

17 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.* Universe of Underlying Portfolios Asset Class ** Portfolio Money Manager(s) SDAP SDSP Large Core Large Growth Large Value Small and Mid Cap Growth Small and Mid Cap Value Small Blend Specialty International Developed Markets International Emerging Markets Equity Index SunAmerica Asset Management, LLC SA MFS Massachusetts 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 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 Marsico Focused Growth Marsico Capital Management, LLC Growth-Income J.P. Morgan Investment Management Inc. Large Cap Value T. Rowe Price Associates, Inc., Wellington Management Company LLP, SunAmerica Asset Management, LLC SA Columbia Focused Value Columbia Management Investment Advisers, LLC Dogs of Wall Street SunAmerica Asset Management, LLC SA Legg Mason BW Large Cap Value Brandywine Global Investment Management, LLC Growth Opportunities Invesco Advisers, Inc. Mid-Cap Growth J.P. Morgan Investment Management Inc. Mid Cap Growth T. Rowe Price Associates, Inc., Wellington Management Company LLP, SunAmerica Asset Management, LLC Aggressive Growth Wells Capital Management Incorporated Mid Cap Value Goldman Sachs Asset Management, L.P., Massachusetts Financial Services Company, SunAmerica Asset Management, LLC Small Company Value Franklin Advisory Services, LLC Small & Mid Cap Value AllianceBernstein L.P. Small Cap ClearBridge Investments, LLC, J.P. Morgan Investment Management Inc., SunAmerica Asset Management, LLC Real Estate Pyramis Global Advisors, LLC Natural Resources Wellington Management Company LLP Technology Columbia Management Investment Advisers, LLC Telecom Utility Massachusetts Financial Services Company Foreign Value Templeton Investment Counsel, LLC International Equity Janus Capital Management LLC, T. Rowe Price Associates, Inc., SunAmerica Asset Management, LLC International Growth and Income Putnam Investment Management, LLC International Diversified Equities Morgan Stanley Investment Management Inc. 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 High-Yield Bonds High-Yield Bond PineBridge Investments, LLC Inflation Protected Securities Real Return Wellington Management Company LLP Performance Money Market Cash Management BofA Advisors, LLC 6 Wilshire Funds Management is the global investment unit of Wilshire Associates Incorporated. * 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. 11

18 Important risks and additional information Volatility Control Portfolios n While Volatility Control Portfolios employ risk management processes that seek to manage volatility with 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. n 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. n 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. n 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. n 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. n 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 below. VCP Managed Asset Allocation SAST Portfolio n 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 indices, 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%. n 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 n 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. n 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 n The Portfolio s target volatility level is not a total return performance target. Total return performance is not expected to be within any specified target range. n The Portfolio s 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. n Although the Portfolio seeks investments in undervalued companies, judgments that a particular security is undervalued may prove incorrect. Additional Risks n There is no assurance that a Portfolio s investment process will achieve its specific investment objectives. n 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. n 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. n 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. n 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. n 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. n 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. n 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 Cash Management portfolio is subject to potential loss of principal; unlike certain money market instruments, it does not seek to maintain a net asset value of $1. 12

19 Additional Volatility Control Portfolios VCP Managed Asset Allocation SAST Portfolio Performance 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. n 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 n Portfolio Management: Capital Research and Management Company 7 (investment adviser 8 ); 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). n Investment goals: Seeks capital appreciation and income while managing portfolio volatility n 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. n Investment goals: Seeks current income and moderate capital appreciation while managing portfolio volatility n Portfolio Management: SunAmerica Asset Management, LLC (investment adviser); Invesco Advisers, Inc. (subadviser) 7 Capital Research and Management Company is the investment manager of the American Funds. 8 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 and the Underlying Fund. Please see additional information below concerning the Portfolio s structure. 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 in a portfolio that invests directly in securities. Please see the prospectus for more information regarding the master-feeder fund structure and related expenses. Milliman Financial Risk Management LLC is not an affiliate or member of Capital Research and Management Company or The Capital Group Companies. 13

20 Protection for the sense of security you want Polaris offers ways to insure your retirement assets against market uncertainty whether your goal is to grow and protect your investment for lifetime income or protect your investment for your family. Your objective Your Polaris strategy Grow and secure income including rising lifetime income to help protect your retirement lifestyle n Polaris Income Plus (age 45-80) n Polaris Income Builder (age 65-80) Protect your beneficiaries from investment loss in a down market n Optional enhanced death benefit These optional protection features are available for an additional fee and subject to restrictions and limitations. Optional features must be elected at the time of purchase and, once elected, may not be changed. Not all features are available in all states. You may choose only one income protection option. The guarantees associated with Polaris protection features are backed by the financial strength and claims-paying ability of the issuing insurance company. Are you 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? 14

21 Secure lifetime income for retirement with Polaris Income Plus Protection Protected lifetime income that can go up even after withdrawals begin Polaris Income Plus can help you secure your retirement income no matter how the market performs. It offers you the assurance of guaranteed lifetime income, the opportunity for rising income, and income that is protected from market volatility. n The opportunity for rising income. Income Plus locks in the greater of your investment gains or an annual income credit of up to 6% on each contract anniversary during the first 12 contract years (called the income credit period ) for future income. The full 6% income credit is available in years withdrawals are not taken. n 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. n Income that s guaranteed to last. Count on a guaranteed stream of lifetime income for as long as you or you and your spouse are living. If you select this feature, investment requirements apply. Please see page 9 for more information. 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 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 enclosed product summary brochure and a 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. 15

22 Polaris with Income Plus is designed to offer you more while you re accumulating money for your retirement 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 n Hypothetical illustrations are not to scale and are intended solely to depict how 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. Terms used in this section n Income Credit: The amount that may be added to your Income Base, calculated as a percentage of your Income Credit Base. n Income Base: The amount on which guaranteed withdrawals and the fee 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 eligible purchase payment. On each contract anniversary, the Income Base is set to equal the greater of (a) the anniversary value, if greater than all previous anniversary values, 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 16

23 ACCUMULATION The 6% income credit is added on top of the current Income Base, which may include investment gains locked in on prior contract anniversaries. This is known as stacking. What s more, 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 credit Investment gains 6% income credit stacks on high anniversary values Income Base Locks in greater of investment gains or a 6% income credit Contract Value Age Assumed age at contract issue: 60 Income Plus ACCUMULATION An Income Base that can DOUBLE after 12 years If you choose not to take any withdrawals during the first 12 contract years, your Income Base is guaranteed to be at least 200% of your eligible first-year purchase payments on the 12th contract anniversary (the Minimum Income Base) regardless of market performance. Income Base doubles on 12th contract anniversary Income Base Contract Value Age Income credit Assumed age at contract issue: 53 Annuity Date (95th birthday). On the 12th contract anniversary, the Income Base may be increased to the Minimum Income Base (200% of eligible first-year purchase payments) if no withdrawals have been taken from the contract. The Income Base will be increased each time an eligible purchase payment is made and adjusted for excess withdrawals. n 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 eligible 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 an eligible purchase payment is made and adjusted for excess withdrawals. n 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. n 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. 17

24 When you are ready to take income, Polaris with Income Plus offers valuable protection and growth opportunities 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 a liquidation value, nor is it available as a lump sum. Income Base Downside protection at all times 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 of taxable amounts are subject to ordinary income tax and, if taken prior to age 59½, an additional 10% federal tax may apply. Early withdrawals may be subject to withdrawal charges if they exceed certain parameters. Additional terms used in this section and important information n Eligible Purchase Payments: Purchase payments received in the first contract year only; all other purchase payments are ineligible. Income credits and spousal continuation contributions are not included in the calculation of eligible purchase payments. n Anniversary Value: The contract value on your contract anniversary (including any spousal continuation contributions), less ineligible purchase payments. n The opportunity for rising income (including guaranteed rising income during the first 12 contract years) ends if the contract value is completely depleted. 18

25 INCOME If the Income Base steps up from investment gains on a contract anniversary in a rising market, so does your income. Opportunity to lock in investment gains for rising income Guaranteed lifetime income increases whenever the Income Base steps up Income Plus 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. (Of course, 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, 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% are taken Income Base Contract Value Age Income credit Assumed age at contract issue: 65 n 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 20 for additional information, including important information concerning withdrawals. 19

26 Additional information about optional income protection features Withdrawals n 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. 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. n 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. n 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 or Income Builder and your contract value is completely depleted due to market volatility and/or withdrawals taken within the feature s MAWA, you will receive the Protected Income Payment as indicated on pages 21 and 23. As a result, the amount available for lifetime income will decrease. If you select Income Plus Income Option 3 and your contract value is completely depleted due to market volatility 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. n 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. n 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 n 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. n 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. Only certain purchase payments received in the first contract year are included in the Income Base. Latest Annuity Date n 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 n 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 Cash Management portfolio. After cancellation, additional purchase payments will no longer be automatically allocated to the SVA. 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 n 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. n Joint Life option: In the event of a death, spousal continuation 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. n Please see the prospectus for additional information about what happens in the event of divorce or other changes affecting the contract owners or beneficiaries. n 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. n 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. 20

27 A choice of income options Income Plus offers you a choice of income options so you can secure an income stream that s right for you Income Plus Withdrawals beginning at age 65 or later Income Options Maximum Annual Withdrawal Amount (as a percentage of your Income Base) Protected Income Payment (as a percentage of your Income Base) Income Option 1 6% (5.5% Joint Life) 4% Income Option 2 7% (6.5% Joint Life) 3% Income Option 3 5% for life (4.5% for life Joint Life) 5% for life (4.5% for life Joint Life) Withdrawals beginning before age 65 Income Options Maximum Annual Withdrawal Amount (as a percentage of your Income Base) Protected Income Payment (as a percentage of your Income Base) Income Option 1 5.5% (5% Joint Life) 3%* Income Option 2 5.5% (5% Joint Life) 3%* Income Option 3 4% for life (3.5% for life Joint Life) 4% for life (3.5% for life Joint Life) * 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. The protected income payment will be paid in the event the contract value is completely depleted due to market volatility and/or withdrawals taken within the feature s parameters. Additional terms used in this section and important information n 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. 21

28 Secure lifetime income for retirement with Polaris Income Builder Predictable lifetime income with the opportunity for an income credit 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. n A guaranteed annual 6% increase for up to 12 years. Income Builder locks in the greater of your investment gains or an annual 6% income credit on each contract anniversary during the first 12 contract years (called the income credit period ) for future income. The 6% income credit is available in years that withdrawals are not taken. The income credit is calculated as a percentage of the Income Credit Base. n 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. n The opportunity for a 200% retirement income guarantee. If you do not take any withdrawals during the first 12 contract years, you can count on a floor for retirement income that s guaranteed to be at least 200% of your eligible first-year purchase payments on the 12th contract anniversary (the Minimum Income Base ). If you select this feature, the investment requirements described on page 9 will apply. To realize the feature s benefits, withdrawals must be taken within the feature s parameters. Withdrawals of taxable amounts are subject to ordinary income tax and, if taken prior to age 59½, an additional 10% federal tax may apply. Early withdrawals may be subject to withdrawal charges if they exceed certain parameters. Terms used in this section n 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. n Income Base: The amount on which guaranteed withdrawals and the fee 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 eligible purchase payment. On each contract anniversary, the Income Base is set to equal the greater of (a) the anniversary value, if greater than all previous anniversary values, 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 eligible first-year purchase payments) if no withdrawals have been taken from the contract. The Income Base will be increased each time an eligible purchase payment is made and adjusted for excess withdrawals. n 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 eligible 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 22

29 Income Builder Access up to 5.5% withdrawals when you re ready for income Income Builder Maximum Annual Withdrawal Amount (as a percentage of your Income Base) Protected Income Payment (as a percentage of your Income Base) 5.5% (5% Joint Life) 5.25% (4.75% Joint Life) The protected income payment will be paid in the event the contract value is completely depleted due to market volatility and/or withdrawals taken within the feature s parameters. 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 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 enclosed product summary brochure and a 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 20 for additional information, including important information concerning withdrawals. Base steps up due to the addition of the income credit. The Income Credit Base will be increased each time an eligible purchase payment is made and adjusted for excess withdrawals. n 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. n Eligible Purchase Payments: Purchase payments received in the first contract year only; all other purchase payments are ineligible. Income credits and spousal continuation contributions are not included in the calculation of eligible purchase payments. n Anniversary Value: The contract value on your contract anniversary (including any spousal continuation contributions), less ineligible purchase payments. n 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 6% 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. 23

30 Protect assets for your loved ones with Family protection Choose the protection that s right for you and your family 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 greater of contract value or purchase payments (adjusted for withdrawals). If you would like to provide enhanced protection for the beneficiaries you ve named, you can select the Maximum Anniversary Value Death Benefit that is available for an additional fee. n Lock in investment gains with the Maximum Anniversary Value Death Benefit option. The maximum issue age for this option is 80. It is available for an additional fee rate of 0.25%. The Maximum Anniversary Value Death Benefit provides your family with the greatest of: 1. contract value; or 2. purchase payments (adjusted for withdrawals); or 3. the highest value of your contract on any contract anniversary prior to your 83rd birthday (adjusted for withdrawals and increased by purchase payments since that anniversary). When calculating either of these death benefits, adjustments are made to account for additional purchase payments, withdrawals, and any charges applicable to withdrawals. The calculation will differ if an income protection option is elected. Please see additional information section below for details. Flexibility for your spouse and continued protection for your family n Spousal continuation: 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 about the contract s death benefit and income protection feature limitations if spousal continuation is elected. Additional information about death benefits, including definitions n Contract value: The value of the contract at the time all required paperwork, including proof of death, is received. n Anniversary value: The contract value on each contract anniversary. n 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. n 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. n 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. n If you elect an income protection option 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 option (or you elect an income protection option 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 option. n 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. 24

31 Strength 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, together with their sister life insurance company, are leading providers of variable annuities in the U.S. Together, these companies rank among the top six variable annuity issuers in the U.S. (Source: Morningstar. Ranking based on assets as of 6/30/15.) Your financial advisor can help you determine if Polaris is right for you. 25