Additional information about the SunAmerica Dynamic Portfolios

Transcription

1 Additioal iformatio about the SuAmerica Dyamic Portfolios While diversificatio ad asset allocatio are both prove ivestmet strategies, they caot guaratee greater or more cosistet returs over time ad they caot protect agaist loss. By ivestig i a fud that is desiged to reduce volatility risk, you may have less risk from market dowturs, but may also have less opportuity to beefit from market gais. The Portfolios are subject to derivative ad leverage risks. These ivestmet strategies may be riskier tha other ivestmet strategies ad may result i gais or losses substatially greater tha the cost of the positio. While these strategies ca be useful ad iexpesive ways of reducig risk, they are sometimes ieffective due to uexpected chages i the market, exchage rates or other factors. Whe the Portfolios use derivatives for leverage, the Portfolios will ted to be more volatile, resultig i larger gais or losses i respose to the fluctuatig prices of the Portfolios ivestmets. The Portfolios are subject to couterparty risk (i.e., the risk that a couterparty will ot perform its obligatios) ad short sales risk. Losses from short sales are potetially ulimited, whereas losses from purchases ca be o greater tha the total amout ivested. Small movemets i iterest rates (both icreases ad decreases) may quickly ad sigificatly reduce the value of certai mortgage-backed securities. These securities also are subject to risk of default, particularly durig periods of ecoomic dowtur. Credit risk (i.e., the risk that a issuer might ot pay iterest whe due or repay pricipal at maturity of the obligatio) could affect the value of the ivestmets i the Portfolios. There is o assurace that a Portfolio s ivestmet process will achieve its specific ivestmet objectives. Additioal iformatio about ivestig i variable portfolios Portfolios that ivest i stocks ad bods are subject to risk, icludig stock market ad iterest rate fluctuatios. Portfolios that ivest i bods are subject to chages i their value whe prevailig iterest rates chage. Portfolios that ivest i o-u.s. stocks ad bods, icludig emergig market ivestmets, are subject to additioal risks such as political ad social istability, differig securities regulatios ad accoutig stadards, limited public iformatio, plus special risks that may iclude foreig taxatio, currecy risks, risks associated with possible differeces i fiacial stadards, ad other moetary ad political risks associated with future political ad ecoomic developmets. Ivestmets that cocetrate o oe ecoomic sector or geographic regio are geerally subject to greater volatility tha more diverse ivestmets. Portfolios that ivest i techology compaies are subject to additioal risks ad may be affected by short product cycles, aggressive pricig, competitio from ew market etrats ad obsolescece of existig techology. Portfolio returs may be cosiderably more volatile tha a portfolio that does ot ivest i techology compaies. Portfolios that ivest i small ad mid-size compay stocks are geerally riskier ad more volatile tha portfolios that ivest i larger, more established compaies. Portfolios that ivest i high-yield bods may be subject to greater price swigs tha portfolios that ivest i higher-rated bods. Paymet of iterest ad pricipal is ot assured. Portfolios that ivest i real estate ivestmet trusts (REITs) ivolve risks such as refiacig, ecoomic coditios i the real estate idustry, chages i property values, depedecy o real estate maagemet, ad other risks associated with a cocetratio i oe sector or geographic regio. Ivestmets i securities related to gold ad other precious metals ad mierals are speculative ad impacted by a host of worldwide ecoomic, fiacial ad political factors. Moey market istrumets geerally offer stability ad icome, but a ivestmet i these securities, like ivestmets i other portfolios, is ot isured or guarateed by the Federal Deposit Isurace Corporatio or ay other govermet agecy. A ivestmet i the Cash Maagemet portfolio is subject to potetial loss of pricipal; ulike certai moey market istrumets, the portfolio does ot seek to maitai a et asset value of $1. While certai Polaris portfolios may be similar to other fuds maaged by the same ivestmet adviser, this does ot mea that a portfolio s ivestmet results will be comparable to the ivestmet results of other similar fuds, icludig other fuds with the same ivestmet adviser. The portfolios ivestmet results will likely differ, ad may be higher or lower tha the ivestmet results of other similar fuds. Polaris Variable Auities are sold by prospectus oly. The prospectus cotais the ivestmet objectives, risks, fees, charges, expeses ad other iformatio regardig the cotract ad uderlyig fuds, which should be cosidered carefully before ivestig. Please cotact your isurace-licesed fiacial advisor or call to obtai a prospectus. Please read the prospectus carefully before ivestig. This material was prepared to support the marketig of Polaris Variable Auities. Please keep i mid that America Geeral Life Isurace Compay (America Geeral Life), SuAmerica, ad their distributors ad represetatives may ot give tax, accoutig or legal advice. Ay tax statemets i this material are ot iteded to suggest the avoidace of U.S. federal, state or local tax pealties. Such discussios geerally are based upo the compay s uderstadig of curret tax rules ad iterpretatios. Tax laws are subject to legislative modificatio, ad while may such modificatios will have oly a prospective applicatio, it is importat to recogize that a chage could have retroactive effect as well. Please seek the advice of a idepedet tax advisor or attorey for complete iformatio cocerig your particular circumstaces ad ay tax statemets made i this material. All cotract ad optioal beefit guaratees, icludig ay fixed accout creditig rates or auity rates, are backed by the claims-payig ability of America Geeral Life. They are ot backed by the broker/dealer from which this auity is purchased, by the isurace agecy from which this auity is purchased or ay affiliates of those etities ad oe makes ay represetatios or guaratees regardig the claims-payig ability of America Geeral Life. A ivestmet i Polaris ivolves ivestmet risk, icludig possible loss of pricipal. The cotract, whe redeemed, may be worth more or less tha the total amout ivested. The purchase of Polaris is ot required for, ad is ot a term of, the provisio of ay bakig service or activity. Polaris Variable Auities, form umbers AS-992C (12/10) ad AS-993 (12/10), are issued by America Geeral Life Isurace Compay. Products are marketed by SuAmerica, The Retiremet Specialist. Products ad features may ot be available i all states. State variatios may apply. We reserve the right to modify or o loger offer the features described i this brochure. However, oce your variable auity cotract has bee issued, these features will ot chage, except as described i this brochure ad i the prospectus. Distributed by SuAmerica Capital Services, Ic Oxard Street, Suite 750, Woodlad Hills, CA , Not FDIC or NCUA/NCUSIF Isured May Lose Value No Bak or Credit Uio Guaratee Not a Deposit Not Isured by ay Federal Govermet Agecy R4962CBR.6 (10/13)

2 Polaris Variable Auities are issued by America Geeral Life Isurace Compay. Products are marketed by SuAmerica, The Retiremet Specialist.

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4 Today s priorities for retiremet Retiremet today ivolves ew challeges livig loger, losig groud to risig prices over time, ad relyig more o persoal ivestmets i a up-ad-dow stock market. To help overcome the challeges, cosider makig these priorities part of your plaig today. You ll be oe step closer to a more comfortable retiremet. Pla for a log retiremet. Retiremet may last loger tha you thik. With may Americas retirig i their early 60s, it s easy to see how retiremet ca last for 30 years or more. Cosider the probability of how log a couple, both age 65, may live. Will you outlive your retiremet assets? Average life expectacy of a healthy 65-year-old retired couple Maitai your lifestyle. With iflatio, retiremet may also cost more tha you thik. Over the past 80 years, iflatio has averaged 3.65% aually. Ad while that may ot seem like a lot, over time, the impact of eve moderate iflatio ca be dramatic. I fact, assumig the same rate of iflatio experieced over the past 30 years approximately 2.9% retiremet expeses would more tha double over the ext 30 years! 50% Chace that at least oe spouse will live beyod 92! 25% Chace that at least oe spouse will live beyod 97! Hypothetical Expeses $141,041 Source: Society of Actuaries Auity 2000 Mortality Table. $60, Source: Wilshire Compass,

5 Participate i market gais, while reducig dowside risk. To help geerate retiremet icome that has the potetial to keep up with risig costs ad today s loger life expectacies, it s importat to iclude the log-term growth potetial of stocks i your retiremet portfolio. Stocks historically have outperformed other types of ivestmets over log periods of time, as illustrated below. Of course, past performace is o guaratee of future results ad a ivestmet i stocks ca be subject to periods of sigificat fluctuatio. Stocks ca help provide the log-term growth potetial you eed Growth of $100,000 i various asset classes over the 30-year period eded 12/31/12 $2,500,000 $2,000,000 Dot-Com Bubble Ecoomic Crisis Stocks $2,167,410 $1,500,000 $1,000,000 Bods $1,035,654 $500,000 CDs $417,026 T-Bills $393,934 $ Source: Wilshire Compass ad Federal Reserve, Stocks are represeted by the S&P 500 Idex, a represetative sample of leadig compaies i key idustries that reflect the U.S. stock market. Stocks are ofte subject to sigificat price fluctuatios ad, therefore, you may have a gai or loss i pricipal whe shares are sold. Bods are represeted by the Barclays U.S. Aggregate Bod Idex, which covers the U.S. ivestmet grade fixed-rate bod market with idex compoets for govermet ad corporate, mortgage pass-through ad asset-backed securities. T-bills are represeted by the BofA Merrill Lych 91-Day Treasury Bill Idex. Govermet bods ad Treasury bills are subject to iterest rate risk, but they are backed by the full faith ad credit of the U.S. Govermet if held to maturity. The repaymet of pricipal ad iterest of a corporate bod is guarateed by the issuig compay, ad subject to default ad credit risks. CDs are represeted by 6-moth CDs, a average of dealer bid rates o atioally traded CDs (quoted as a aualized retur usig a 360- day year). CDs offer a fixed-rate retur ad Federal Deposit Isurace Corporatio (FDIC) isurace. CDs that offer loger maturities may offer higher rates of retur. Stocks, bods ad CDs are ot subject to the separate accout fees, admiistratio charges ad potetial withdrawal charges associated with a ivestmet i a fixed or variable auity. Uderlyig ivestmet optios i a variable auity are subject to portfolio operatig expeses. This chart is for illustrative purposes oly ad does ot represet ay particular ivestmet. Performace for ay specific ivestmet is available from your fiacial advisor. Past performace is ot a guaratee of future results. Idexes are umaaged; you caot ivest directly i ay idex. The appropriateess of particular types of ivestmets depeds o your time horizo, risk tolerace ad idividual circumstaces, such as your curret ad aticipated tax brackets. 3

6 Pla for chagig icome eeds How will your spedig chage i retiremet? May ew retirees have a very full list of thigs they wat to do ad places they wat to go, which ca icrease iitial icome eeds. I these early years, it s likely you ll sped cosiderably more o lifestyle-related expeses ad possibly the care of elderly parets. However, i retiremet s middle ad later years, most expeses geerally decrease. The Early Years The Middle Years The Later Years Retiremet Icome Need: High Retirees may eed more icome i this stage whe they are typically the most active. With more time for leisure, ewly retired people may have higher expeses, such as: travel etertaimet vacatio home gifts for childre ad gradchildre Carig for elderly parets ca also icrease expeses i the early years. Retiremet Icome Need: Moderate The secod stage of retiremet is a time whe retirees typically slow dow. Durig this stage, retirees may dowsize their home, travel less frequetly, ad geerally decrease overall spedig as they settle ito retiremet. Retiremet Icome Need: Low May retirees i this stage geerally do t travel or sped o etertaimet or meals out. They typically prefer to stay closer to home. I the later years, retiree healthcare costs may icrease, although certai types of isurace ca help retirees maage these costs. Other lifestyle-related expeses typically cotiue to go dow. 4

7 You may eed the most icome early i retiremet Whe it comes to plaig for retiremet icome, it s ofte assumed that expeses will remai the same throughout retiremet or possibly eve rise due to iflatio. However, research shows that expeditures actually declie throughout retiremet, so you may eed more icome shortly after you retire ad less later o. Total Aual Expeditures by Age $70,000 50,000 $53,616 $44,646 30,000 $32,688 10,000 AGE Aual Spedig AGE AGE AGE 75+ % Chage Apparel & Services $1,719 $1,195 $1,052-39% Etertaimet 2,769 2,493 1,437-48% Food & Alcohol 6,988 6,226 4,649-33% Healthcare 4,048 5,038 4, % Housig 17,713 15,105 12,046-32% Trasportatio 8,991 6,962 4,309-52% Miscellaeous 4,613 4,670 3,921-15% Persoal Isurace & Pesios 6,775 2, % Total Expeditures $53,616 $44,646 $32,688-39% As you ca see illustrated i this table, total expeditures for those age 75+ are 39% less tha those age Source: U.S. Departmet of Labor, Bureau of Labor Statistics, Cosumer Expediture Survey, September

8 Polaris ca help you participate i market gais, while reducig risk Polaris offers a powerful combiatio of Performace, Protectio ad Stregth for your retiremet icome portfolio performace for the growth potetial you eed Polaris Variable Auities are desiged to help you maximize the log-term growth potetial of your retiremet ivestmet with: Respected moey maagers Professioally desiged asset allocatio strategies Portfolios that cross the asset class spectrum protectio for the sese of security you wat Polaris offers you a choice of valuable features both stadard ad optioal that are desiged to help protect agaist market ucertaity: Protect your retiremet icome Protect your family stregth for edurig stability Whe you choose Polaris ad SuAmerica, you are parterig with a recogized idustry leader with the experiece ad resources to support your eeds today ad i the years ahead. Variable auities are log-term ivestmets desiged for retiremet. They offer tax deferral ad the opportuity to participate i the upside potetial of the stock market with protectio features that may help reduce risk, although they ca t elimiate it altogether. Variable auities are subject to a separate accout fee, admiistrative charges ad portfolio operatig expeses associated with the uderlyig ivestmet portfolios. Early withdrawals may be subject to withdrawal charges. Partial withdrawals may reduce beefits available uder the cotract, as well as the amout available upo a full surreder. Withdrawals of taxable amouts are subject to ordiary icome tax ad, if take prior to age 59½, a additioal 10% federal tax may apply. If your ivestmet is tax-qualified (such as a IRA), there is o additioal tax-deferred beefit. Ivestig i the market ivolves risk, ad that meas you could ed up with less moey tha whe you started. Cotract ad optioal beefit guaratees are backed by the claimspayig ability of the issuig isurace compay. Icome protectio features ad ehaced death beefits are optioal ad available for a additioal cost. Age restrictios ad limitatios apply. Ivestmet requiremets ad withdrawal parameters also apply if a icome protectio feature is elected. As a alterative to a icome protectio feature, you ca auitize your cotract ad receive icome paymets for life at o additioal cost. 6

9 Put Polaris to work for you Polaris ca help you while you re buildig assets i preparatio for retiremet ad whe you re ready to draw o those assets durig retiremet. A ivestmet i a Polaris Variable Auity from SuAmerica offers you growth potetial, risk protectio features ad guarateed lifetime icome to help you address today s retiremet plaig priorities. A Polaris Variable Auity ca help you secure a portio of your retiremet assets for your retiremet icome ad for your family. Here s how Polaris with optioal protectio features for icome ad family ca work. There are essetially three core compoets to your Polaris ivestmet. Polaris Variable Auity Cotract Value Icome Base Death Beefit This is the curret value of your ivestmet. It ca icrease or decrease based o the performace of the ivestmet optios selected. If you elect a optioal icome protectio feature, the Icome Base is the amout o which your icome withdrawals are based. It ca icrease from ivestmet gais or a icome credit, if greater. The opportuity for a icome credit is oly available for the first 12 cotract years. The Icome Base is protected from market volatility, provided withdrawals are take withi the feature s parameters. This is the amout paid to your beeficiaries i the evet of death. It is protected from market volatility. If you choose a ehaced death beefit, this amout may icrease from ivestmet gais. The death beefit is adjusted for withdrawals. Please see a prospectus for more iformatio about the available death beefits. 7

10 Secure protected lifetime icome for your retiremet A Polaris Variable Auity with the optioal SuAmerica Icome Plus feature ca help you secure: Icome that s guarateed to last for as log as you live. Cout o a guarateed stream of lifetime icome for as log as you or you ad your spouse are livig. Icome that s protected from market dowturs. Durig the first 12 cotract years, Icome Plus locks i the greater of ivestmet gais or a aual icome credit of up to 6% o cotract aiversaries for lifetime icome. The full 6% icome credit is available i years that withdrawals are ot take. Icome that ca cotiue to rise over time. After the first 12 cotract years, your icome will cotiue to have the opportuity to icrease from ivestmet gais o cotract aiversaries, provided cotract value remais. Polaris with Icome Plus is desiged to offer you more while you re accumulatig moey for retiremet, ad whe you re ready to take it out. Cotract ad optioal beefit guaratees are backed by the claims-payig ability of the issuig isurace compay. ACCUMULATION A 6% icome credit for up to 12 years A full 6% icome credit is available o each cotract aiversary durig the first 12 cotract years, i years that withdrawals are ot take. This esures a risig Icome Base for future icome o matter how the market performs. Icome Base Locks i a aual 6% icome credit Cotract Value Age Assumed age at cotract issue: 60 Additioal iformatio about SuAmerica Icome Plus Icome Base is iitially equal to the first eligible purchase paymet. O each cotract aiversary, the Icome Base is set to equal the greater of (a) the aiversary value, if greater tha all previous aiversary values, or (b) the curret Icome Base plus the icome credit amout (if eligible) durig the cotract s first 12 years. The Icome Base is automatically evaluated o cotract aiversaries while the cotract value is greater tha zero ad the feature is still i effect, provided you have ot reached the Latest Auity Date (95 th birthday). The Icome Base is adjusted for excess withdrawals ad icreased each time a eligible purchase paymet is made. The aiversary value is the cotract value o the cotract aiversary (icludig ay spousal cotiuatio cotributios), less ieligible purchase paymets. Icome Credit is the amout that may be added to your Icome Base i each of the cotract s first 12 years. Whe withdrawals are take that reduce the available icome credit, future icome may be lower tha if a full icome credit were received. A icome credit is ot available o the ext cotract aiversary if you take a excess withdrawal. Icome Credit Base is a compoet of the feature that is used to calculate the aual icome credit. Iitially, the Icome Credit Base is equal to the first eligible purchase paymet. If the Icome Base steps up to your aiversary value o a cotract aiversary, your Icome Credit Base will also step up to this amout. The Icome Credit Base is ot icreased if your Icome Base rises due to the 8

11 ACCUMULATION 6% icome credit stacks o high aiversary values The 6% icome credit is added o top of the curret Icome Base, which may iclude ivestmet gais locked i o prior cotract aiversaries. This is kow as stackig. What s more, whe the Icome Base icreases from ivestmet gais, the Icome Credit Base is also icreased to this amout, which i tur icreases the amout of the 6% icome credit available i future years. Icome credit Ivestmet gais Icome Base Locks i greater of ivestmet gais or a 6% icome credit Cotract Value Age Assumed age at cotract issue: 60 ACCUMULATION A Icome Base that ca DOUBLE after 12 years If you choose ot to take ay withdrawals durig the first 12 cotract years, your Icome Base is guarateed to be at least 200% of your eligible first-year ivestmets o the 12th cotract aiversary (the Miimum Icome Base) regardless of market performace. Icome Base doubles o 12th cotract aiversary Icome Base Cotract Value Age Assumed age at cotract issue: 53 additio of the icome credit. The Icome Credit Base is adjusted for excess withdrawals ad icreased each time a eligible purchase paymet is made. Icome Credit Period is the period of time over which a icome credit may be added to the Icome Base. It begis o the cotract issue date ad eds 12 years later. Importat iformatio about the illustratios show i this brochure: Illustratios are ot to scale ad are iteded solely to depict how the SuAmerica Icome Plus icome protectio feature ca work. The Accumulatio examples show assume o withdrawals are take durig the period illustrated. Aual market returs illustrated are hypothetical. Hypothetical cotract value assumes a iitial purchase paymet ad o additioal purchase paymets. The illustratios do ot reflect the actual performace of ay particular ivestmet. For more iformatio about Polaris Variable Auity performace, please ask your fiacial advisor. 9

12 Whe you are ready to take icome, Polaris with SuAmerica Icome Plus offers valuable protectio ad growth opportuities. INCOME A Icome Base protected from market volatility Your withdrawals are calculated as a percetage of the Icome Base, a amout that is protected for life for icome o matter how the market performs. Keep i mid, the Icome Base is ot a liquidatio value, or is it available as a lump sum. Icome Base Dowside protectio at all times Cotract Value Age Assumed age at cotract issue: 65 To realize the beefits of SuAmerica Icome Plus, you will eed to take withdrawals withi the feature s parameters. Withdrawals of taxable amouts are subject to ordiary icome tax ad, if take prior to age 59½, a additioal 10% federal tax may apply. Early withdrawals may be subject to withdrawal charges. Additioal iformatio about SuAmerica Icome Plus Eligible Purchase Paymets equal all ivestmets received i the first cotract year oly; all other purchase paymets are ieligible. Icome credits ad spousal cotiuatio cotributios are ot icluded i the calculatio of Eligible Purchase Paymets. Excess withdrawals are withdrawals that exceed the maximum aual withdrawal amout. Excess withdrawals will reduce the Icome Base ad Icome Credit Base i the same proportio by which the cotract value is reduced by the excess withdrawal. The fee is calculated as a percetage of the Icome Base, deducted from the cotract value quarterly. Miimum aual fee rate: 0.60%. Maximum aual fee rate for life of cotract: 2.20% (Sigle Life); 2.70% (Joit Life). The maximum aualized fee rate decrease or icrease is 0.25% each quarter. This meas the fee rate ca decrease or icrease by o more tha % each quarter (0.25%/4). 10

13 INCOME Opportuity to lock i ivestmet gais for risig icome If the Icome Base steps up from ivestmet gais o a cotract aiversary i a risig market, so does your icome. Guarateed lifetime icome icreases wheever the Icome Base steps up Icome Base Cotract Value Age Ivestmet gais Assumed age at cotract issue: 65 INCOME Guarateed risig icome Regardless of which Icome Plus icome optio you choose, if you take withdrawals of less tha 6% of the Icome Base withi the feature s parameters durig the first 12 cotract years, you ca receive a partial icome credit for guarateed risig icome eve if the market is flat or dow. (Of course, i a risig market, Icome Plus locks i the greater of ivestmet gais or the available icome credit o your cotract aiversary.) The available 6% icome credit is simply reduced by the percetage of the Icome Base withdraw. For example, if you withdraw 5% i a give year, the available icome credit o the ext cotract aiversary will be 1% (6% - 5%). 6% - 5% = 1% Locks i a partial icome credit whe withdrawals of less tha 6% are take Icome Base Cotract Value Age Icome credit Assumed age at cotract issue: 65 Depedig o ivestmet performace ad your icome eeds, you may ot eed to rely o this optioal isurace feature, which is available at cotract issue for a additioal fee rate of 1.10% (Sigle Life) or 1.35% (Joit Life). The fee rate is guarateed for oe year. After that time, it will be adjusted quarterly ad may decrease or icrease based o a predetermied, o-discretioary formula. Please see additioal iformatio below for details. The opportuity for risig icome (icludig guarateed risig icome durig the first 12 cotract years) eds if the cotract value is completely depleted. Whe determiig the maximum aual withdrawal percetage for SuAmerica Icome Plus Icome Optio 1, 2 ad 3, as well as the feature s protected icome paymet percetage, the age at the time of first withdrawal is based o the age of the older idividual if the cotract is joitly owed for Sigle Life; age of youger idividual for Joit Life. This age criteria is also used whe evaluatig eligibility for a icrease to the protected icome paymet percetage uder Icome Optio 1 ad 2. A additioal icome feature that is ot described i this brochure is also available. Please see a prospectus for complete details. 11

14 Tailor lifetime icome to meet your specific eeds ad goals SuAmerica Icome Plus offers you a choice of icome optios so you ca secure a icome stream that s right for you. Withdrawals begiig at age 65 or later Icome Optios Maximum Aual Withdrawal Amout (as a percetage of your Icome Base) Protected Icome Paymet (as a percetage of your Icome Base) Applies i the evet cotract value is completely depleted due to market volatility ad/or withdrawals take withi the feature s parameters Icome Optio 1 5.5% (5% Joit Life) 4% Icome Optio 2 6.5% (6% Joit Life) 3% Icome Optio 3 5% for life (4.5% for life Joit Life) 5% for life (4.5% for life Joit Life) Withdrawals begiig before age 65 Icome Optios Maximum Aual Withdrawal Amout (as a percetage of your Icome Base) Protected Icome Paymet (as a percetage of your Icome Base) Applies i the evet cotract value is completely depleted due to market volatility ad/or withdrawals take withi the feature s parameters Icome Optio 1 5% (4.5% Joit Life) 3%* Icome Optio 2 5% (4.5% Joit Life) 3%* Icome Optio % for life (3.25% for life Joit Life) 3.75% for life (3.25% for life Joit Life) * If withdrawals begi before age 65 ad your Icome Base icreases due to ivestmet gais o a cotract aiversary o or after your 65th birthday, the protected icome paymet will automatically icrease to 4% of your Icome Base. 12

15 Ivestmet requiremets If you elect SuAmerica Icome Plus, you will eed to follow these ivestmet requiremets. 20% of your iitial ad additioal ivestmets will automatically be allocated to the Secure Value Accout (a fixed accout with a oe-year term). The balace of your ivestmet (80%) may be ivested i oe of four Check the Box optios: Ivest i a combiatio of: SuAmerica Dyamic Allocatio Portfolio 30% SuAmerica Dyamic Strategy Portfolio 30% VCP SM Maaged Asset Allocatio SAST Portfolio 6% VCP Total Retur Balaced SM Portfolio 7% VCP SM Value Portfolio 7% Ivest equally i: SuAmerica Dyamic Allocatio Portfolio 40% SuAmerica Dyamic Strategy Portfolio 40% Ivest i: SuAmerica Dyamic Strategy Portfolio 80% Ivest i: SuAmerica Dyamic Allocatio Portfolio 80% Or a total of 80% may be ivested i ay combiatio of the followig portfolios: SuAmerica Dyamic Allocatio Portfolio SuAmerica Dyamic Strategy Portfolio Corporate Bod (Federated Ivestmet Maagemet Compay) Global Bod (Goldma Sachs Asset Maagemet Iteratioal) Govermet ad Quality Bod (Welligto Maagemet Compay, LLP) Real Retur (Welligto Maagemet Compay, LLP) Total Retur Bod (Pacific Ivestmet Maagemet Compay LLC) Cash Maagemet (BofA Advisors, LLC) A maximum of 10% may be allocated to each of these portfolios: VCP SM Maaged Asset Allocatio SAST Portfolio (Capital Research ad Maagemet Compay) VCP Total Retur Balaced SM Portfolio (Pacific Ivestmet Maagemet Compay LLC) VCP SM Value Portfolio (Ivesco Advisers, Ic.) The umber of moey maagers ad uderlyig portfolios icluded i each of the SuAmerica Dyamic Portfolios will vary over time. Asset classes ad ivestmet styles show i the table o page 14 may ot be represetative of the curret or future ivestmets of the SuAmerica Dyamic Allocatio Portfolio or the SuAmerica Dyamic Strategy Portfolio. I additio, moey maager represetatio, as well as asset class ad ivestmet style exposure, may vary betwee the two SuAmerica Dyamic Portfolios. Additioal iformatio You may use a Dollar Cost Averagig (DCA) fixed accout to systematically ivest i the ivestmet choices available. Your target DCA istructios must follow the ivestmet requiremets described. If you elect a optioal icome protectio feature, participatio i quarterly automatic asset rebalacig is also required. Amouts allocated to the Secure Value Accout will ot be rebalaced ad are ot available for trasfer as log as the feature is i effect. Keep i mid, because rebalacig resets the allocatio amog variable portfolios, it may have a positive or egative impact o performace. The ivestmet requiremets may reduce the eed to rely o a icome protectio guaratee because they allocate your ivestmet across asset classes ad potetially limit exposure to market volatility. 13

16 SuAmerica Dyamic Portfolios Whe you ivest i the SuAmerica Dyamic Portfolios, your moey is automatically ivested amog professioally maaged portfolios that cross a wide variety of asset classes ad ivestmet styles. Built to Offer Broad Diversificatio Opportuities Large Core Mid Cap Growth Specialty Natural Resources Iteratioal Large Core Bods Large Growth Mid Cap Value Specialty REIT Iteratioal Large Growth High-Yield Bods Large Value Small Growth Specialty Utility Iteratioal Large Value Iflatio Protected Securities Small Bled Specialty Techology Iteratioal Emergig Markets Small Value Global The SuAmerica Dyamic Portfolios employ a dyamic asset allocatio techique desiged to help maage equity exposure ad the effects of volatile equity markets, while providig the potetial for capital appreciatio ad curret icome. A target of 80% of Portfolio assets is ivested i a diverse mix of professioally maaged portfolios (the fud-offuds compoet). Withi this allocatio i the SuAmerica Dyamic Allocatio Portfolio, 70% will be targeted toward equity (stock) portfolios ad 30% will be targeted toward fixed icome portfolios. Withi this allocatio i the SuAmerica Dyamic Strategy Portfolio, 80% will be targeted toward equity portfolios ad 20% will be targeted toward fixed icome portfolios. These allocatios will chage over time i respose to market coditios. The SuAmerica Dyamic Allocatio Portfolio s fud-offuds compoet will geerally be divided amog growth equity ad value equity portfolios. The SuAmerica Dyamic Strategy Portfolio s fud-of-fuds compoet will geerally ivest a greater portio of its assets i value equity portfolios tha growth equity portfolios. A target of 20% of Portfolio assets is ivested i the overlay compoet. The overlay compoet is desiged to maage the overall level of exposure to the equity market, which impacts the portfolio s overall volatility ad retur potetial. This compoet geerally ivests i S&P 500 equity idex futures ad other derivative istrumets to help maage overall volatility, as well as U.S. Treasuries ad short-term ivestmets (e.g. cash) to geerate icome. Additioal iformatio about the SuAmerica Dyamic Portfolios The overall level of exposure to the equity market may be icreased or decreased through ivestmets made i both the fud-of-fuds compoet ad the overlay compoet of the Portfolios. Chages made through the overlay compoet do ot icrease or decrease each Portfolio s iterest rate risk. These ivestmets are subject to certai risks icludig stock market ad iterest rate fluctuatios, as well as additioal risks associated with ivestmets i certai asset classes. (Please see the back cover.) The Portfolios ad their uderlyig portfolios may egage i frequet tradig of portfolio securities to achieve their ivestmet goals. Active tradig may result i high portfolio turover ad correspodigly greater trasactio costs for the Portfolios ad uderlyig portfolios. The portfolio operatig expeses for a fud-of-fuds are typically higher tha those of a traditioal portfolio because you pay the expeses of that portfolio ad idirectly pay a proportioate share of the expeses of the uderlyig portfolios. The Portfolios are subject to risk of coflict with isurace compay iterests give certai aspects of portfolio maagemet are iteded to mitigate the fiacial risks the isurer faces i coectio with optioal icome protectio guaratees. Please see the back cover for additioal iformatio. 14

17 Uiverse of Uderlyig Portfolios Shared by Both SuAmerica Dyamic Portfolios Portfolio Cash Maagemet Corporate Bod Diversified Fixed Icome Equity Idex Focus Value Foreig Value Global Bod Global Equities Govermet ad Quality Bod Growth Growth-Icome Growth Opportuities High-Yield Bod Iteratioal Equity Iteratioal Growth & Icome Large Cap Growth Large Cap Value MFS Massachusetts Ivestors Trust Mid-Cap Growth Mid Cap Growth Mid Cap Value Real Estate Real Retur Small Cap Small Compay Value Total Retur Bod Moey Maager(s) BofA Advisors, LLC Federated Ivestmet Maagemet Compay PieBridge Ivestmets, LLC/ Welligto Maagemet Compay, LLP/SuAmerica Asset Maagemet Corp. SuAmerica Asset Maagemet Corp. Norther Trust Ivestmets, Ic./Third Aveue Maagemet, LLC/J.P. Morga Ivestmet Maagemet Ic. Templeto Ivestmet Cousel, LLC Goldma Sachs Asset Maagemet Iteratioal J.P. Morga Ivestmet Maagemet Ic. Welligto Maagemet Compay, LLP Welligto Maagemet Compay, LLP J.P. Morga Ivestmet Maagemet Ic. Ivesco Advisers, Ic PieBridge Ivestmets, LLC Jaus Capital Maagemet, LLC/Lord, Abbett & Co. LLC/PieBridge Ivestmets, LLC Putam Ivestmet Maagemet, LLC Goldma Sachs Asset Maagemet, L.P./Jaus Capital Maagemet, LLC/ SuAmerica Asset Maagemet Corp. T. Rowe Price Associates, Ic./Welligto Maagemet Compay, LLP/SuAmerica Asset Maagemet Corp. Massachusetts Fiacial Services Compay J.P. Morga Ivestmet Maagemet Ic. T. Rowe Price Associates, Ic./Welligto Maagemet Compay, LLP/SuAmerica Asset Maagemet Corp. Goldma Sachs Asset Maagemet, LP/Lord, Abbett & Co. LLC/SuAmerica Asset Maagemet Corp. Pyramis Global Advisors, LLC Welligto Maagemet Compay, LLP ClearBridge Advisors, LLC/J.P. Morga Ivestmet Maagemet Ic./SuAmerica Asset Maagemet Corp. Frakli Advisory Services, LLC Pacific Ivestmet Maagemet Compay LLC Portfolio Uderlyig Portfolios Specific to the SuAmerica Dyamic Allocatio Portfolio Moey Maager(s) Portfolio Uderlyig Portfolios Specific to the SuAmerica Dyamic Strategy Portfolio Moey Maager(s) Aggressive Growth Wells Capital Maagemet Icorporated Alliace Growth AlliaceBerstei L.P. Blue Chip Growth Massachusetts Fiacial Services Compay Capital Growth OppeheimerFuds, Ic. Capital Appreciatio Welligto Maagemet Compay, LLP Davis Veture Value Davis Advisors Emergig Markets J.P. Morga Ivestmet Maagemet Ic. Dogs of Wall Street SuAmerica Asset Maagemet Corp. Focus Growth Fudametal Growth Growth ad Icome Iteratioal Diversified Equities Jaus Capital Maagemet, LLC/Marsico Capital Maagemet, LLC Wells Capital Maagemet Icorporated Welligto Maagemet Compay, LLP Morga Staley Ivestmet Maagemet Ic. Equity Opportuities Marsico Focused Growth Small & Mid Cap Value Telecom Utility OppeheimerFuds, Ic. Marsico Capital Maagemet, LLC AlliaceBerstei L.P. Massachusetts Fiacial Services Compay Natural Resources Welligto Maagemet Compay, LLP Stock T. Rowe Price Associates, Ic. Techology Columbia Maagemet Ivestmet Advisers, LLC The SuAmerica Dyamic Portfolios fud-of-fuds compoets may ivest i ay or all of the uderlyig portfolios as idicated above, but they will ot ormally ivest i every uderlyig portfolio at ay particular time. The uiverse of uderlyig portfolios ad moey maagers is subject to chage. 15

18 A combiatio of beefits ot typically foud i other ivestmets Key product features Variable Auities Fixed Auities Mutual Fuds Stocks Bods Tax advatages icludig tax deferral ad tax-free rebalacig (tax deferral) (may be tax-free) Participatio i the growth potetial of the stock market Protectio features that ca isure agaist market risk for a additioal fee Professioal moey maagemet Asset allocatio program (sometimes) Beeficiary protectio Flexible icome optios Predictable icome stream Guarateed lifetime icome Liquidity Subject to limitatios Subject to limitatios Ivestmets i stocks, mutual fuds ad variable auities are subject to risk, icludig possible loss of pricipal. Bods: U.S. Govermet bods ad Treasury bills are guarateed by the U.S. Govermet as to the timely paymet of pricipal ad iterest ad, if held to maturity, offer a fixed rate of retur ad fixed pricipal value. Iterest from Treasury bills ad U.S. Govermet bods is exempt from state ad local taxes, but may be subject to federal icome tax. The repaymet of pricipal ad iterest of a corporate bod is guarateed by the issuig compay, ad subject to default ad credit risk. Variable auities, ulike other types of ivestmets, offer isurace features (such as a guarateed death beefit ad auity icome optios) that you pay for through what is called a separate accout fee. Variable auities are subject to additioal fees, icludig a cotract maiteace fee, costs for optioal features (if elected), expeses related to the operatio of the variable portfolios, ad early withdrawal charges. You ca auitize your cotract ad receive auity icome paymets for life for o additioal fee, or you may choose a optioal icome protectio feature. Optioal protectio features are available for a additioal fee. Restrictios ad limitatios apply. Cotract ad optioal beefit guaratees are backed by the claims-payig ability of the isurer. Ay ivestmet i a tax-qualified pla (such as a IRA) automatically receives the beefit of tax deferral. A ivestmet i a variable auity provides o additioal tax-deferred beefit beyod that provided by the pla. Auities are isurace products whose gais accumulate tax-deferred ad are taxed as ordiary icome whe withdraw. Withdrawals of taxable amouts are subject to ordiary icome tax, ad if take prior to age 59½, a additioal 10% federal tax may apply. The variable auity cotract, whe redeemed, may be worth more or less tha the total amout ivested. Fixed auities offer a fixed rate of retur guarateed by the issuig isurace compay. They geerally offer a rage of icome optios, icludig guarateed lifetime icome through auitizatio. Withdrawal charges ad/or restrictios may apply to early withdrawals. Mutual fuds are differet from variable auities i a umber of ways. For example, mutual fuds serve various short ad logterm fiacial eeds, while variable auities are desiged specifically for log-term retiremet savigs. Mutual fuds are ivestmet products whose gais are geerally taxable for the year i which they are eared. Mutual fuds ear moey for a ivestor i several ways, which ca be taxed at differet rates. Capital gais ad divideds may be taxed at a rate that is lower tha the icome tax rate; iterest is geerally taxed at icome tax rates. Your fiacial advisor ca help you determie which ivestmets may be right for you. Be sure to talk to your fiacial advisor about your particular situatio before you ivest. 16

19 2

20 Additioal iformatio about the SuAmerica Dyamic Portfolios While diversificatio ad asset allocatio are both prove ivestmet strategies, they caot guaratee greater or more cosistet returs over time ad they caot protect agaist loss. By ivestig i a fud that is desiged to reduce volatility risk, you may have less risk from market dowturs, but may also have less opportuity to beefit from market gais. The Portfolios are subject to derivative ad leverage risks. These ivestmet strategies may be riskier tha other ivestmet strategies ad may result i gais or losses substatially greater tha the cost of the positio. While these strategies ca be useful ad iexpesive ways of reducig risk, they are sometimes ieffective due to uexpected chages i the market, exchage rates or other factors. Whe the Portfolios use derivatives for leverage, the Portfolios will ted to be more volatile, resultig i larger gais or losses i respose to the fluctuatig prices of the Portfolios ivestmets. The Portfolios are subject to couterparty risk (i.e., the risk that a couterparty will ot perform its obligatios) ad short sales risk. Losses from short sales are potetially ulimited, whereas losses from purchases ca be o greater tha the total amout ivested. Small movemets i iterest rates (both icreases ad decreases) may quickly ad sigificatly reduce the value of certai mortgage-backed securities. These securities also are subject to risk of default, particularly durig periods of ecoomic dowtur. Credit risk (i.e., the risk that a issuer might ot pay iterest whe due or repay pricipal at maturity of the obligatio) could affect the value of the ivestmets i the Portfolios. There is o assurace that a Portfolio s ivestmet process will achieve its specific ivestmet objectives. Additioal iformatio about ivestig i variable portfolios Portfolios that ivest i stocks ad bods are subject to risk, icludig stock market ad iterest rate fluctuatios. Portfolios that ivest i bods are subject to chages i their value whe prevailig iterest rates chage. Portfolios that ivest i o-u.s. stocks ad bods, icludig emergig market ivestmets, are subject to additioal risks such as political ad social istability, differig securities regulatios ad accoutig stadards, limited public iformatio, plus special risks that may iclude foreig taxatio, currecy risks, risks associated with possible differeces i fiacial stadards, ad other moetary ad political risks associated with future political ad ecoomic developmets. Ivestmets that cocetrate o oe ecoomic sector or geographic regio are geerally subject to greater volatility tha more diverse ivestmets. Portfolios that ivest i techology compaies are subject to additioal risks ad may be affected by short product cycles, aggressive pricig, competitio from ew market etrats ad obsolescece of existig techology. Portfolio returs may be cosiderably more volatile tha a portfolio that does ot ivest i techology compaies. Portfolios that ivest i small ad mid-size compay stocks are geerally riskier ad more volatile tha portfolios that ivest i larger, more established compaies. Portfolios that ivest i high-yield bods may be subject to greater price swigs tha portfolios that ivest i higher-rated bods. Paymet of iterest ad pricipal is ot assured. Portfolios that ivest i real estate ivestmet trusts (REITs) ivolve risks such as refiacig, ecoomic coditios i the real estate idustry, chages i property values, depedecy o real estate maagemet, ad other risks associated with a cocetratio i oe sector or geographic regio. Ivestmets i securities related to gold ad other precious metals ad mierals are speculative ad impacted by a host of worldwide ecoomic, fiacial ad political factors. Moey market istrumets geerally offer stability ad icome, but a ivestmet i these securities, like ivestmets i other portfolios, is ot isured or guarateed by the Federal Deposit Isurace Corporatio or ay other govermet agecy. A ivestmet i the Cash Maagemet portfolio is subject to potetial loss of pricipal; ulike certai moey market istrumets, the portfolio does ot seek to maitai a et asset value of $1. While certai Polaris portfolios may be similar to other fuds maaged by the same ivestmet adviser, this does ot mea that a portfolio s ivestmet results will be comparable to the ivestmet results of other similar fuds, icludig other fuds with the same ivestmet adviser. The portfolios ivestmet results will likely differ, ad may be higher or lower tha the ivestmet results of other similar fuds. Polaris Variable Auities are sold by prospectus oly. The prospectus cotais the ivestmet objectives, risks, fees, charges, expeses ad other iformatio regardig the cotract ad uderlyig fuds, which should be cosidered carefully before ivestig. Please cotact your isurace-licesed fiacial advisor or call to obtai a prospectus. Please read the prospectus carefully before ivestig. This material was prepared to support the marketig of Polaris Variable Auities. Please keep i mid that America Geeral Life Isurace Compay (America Geeral Life), SuAmerica, ad their distributors ad represetatives may ot give tax, accoutig or legal advice. Ay tax statemets i this material are ot iteded to suggest the avoidace of U.S. federal, state or local tax pealties. Such discussios geerally are based upo the compay s uderstadig of curret tax rules ad iterpretatios. Tax laws are subject to legislative modificatio, ad while may such modificatios will have oly a prospective applicatio, it is importat to recogize that a chage could have retroactive effect as well. Please seek the advice of a idepedet tax advisor or attorey for complete iformatio cocerig your particular circumstaces ad ay tax statemets made i this material. All cotract ad optioal beefit guaratees, icludig ay fixed accout creditig rates or auity rates, are backed by the claims-payig ability of America Geeral Life. They are ot backed by the broker/dealer from which this auity is purchased, by the isurace agecy from which this auity is purchased or ay affiliates of those etities ad oe makes ay represetatios or guaratees regardig the claims-payig ability of America Geeral Life. A ivestmet i Polaris ivolves ivestmet risk, icludig possible loss of pricipal. The cotract, whe redeemed, may be worth more or less tha the total amout ivested. The purchase of Polaris is ot required for, ad is ot a term of, the provisio of ay bakig service or activity. Polaris Variable Auities, form umbers AS-992C (12/10) ad AS-993 (12/10), are issued by America Geeral Life Isurace Compay. Products are marketed by SuAmerica, The Retiremet Specialist. Products ad features may ot be available i all states. State variatios may apply. We reserve the right to modify or o loger offer the features described i this brochure. However, oce your variable auity cotract has bee issued, these features will ot chage, except as described i this brochure ad i the prospectus. Distributed by SuAmerica Capital Services, Ic Oxard Street, Suite 750, Woodlad Hills, CA , Not FDIC or NCUA/NCUSIF Isured May Lose Value No Bak or Credit Uio Guaratee Not a Deposit Not Isured by ay Federal Govermet Agecy R4962CBR.6 (10/13)