Income Builder. An optional income protection feature available in Polaris Variable Annuities

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1 Polaris Income Builder An optional income protection feature available in Polaris Variable Annuities Polaris Income Builder is available at contract issue for an additional annual fee in select Polaris Variable Annuities. Guarantees are backed by the claims-paying ability of the issuing insurance company. This brochure must be used in conjunction with the Polaris Variable Annuity product brochure; it cannot be used alone.

2 Predictable lifetime income with Polaris Income Builder If you are 65 or older at the time of purchase, Polaris Income Builder offers guaranteed lifetime income, along with the opportunity to grow future income if you wait to take withdrawals. A guaranteed annual 5% increase for up to 12 years. Income Builder locks in the greater of your investment gains or an annual 5% income credit on each contract anniversary during the first 12 contract years (called the income credit period ) for future income. The 5% income credit is available in years that withdrawals are not taken. The income credit is calculated as a percentage of the Income Credit Base. There is no partial income credit available with Income Builder. Income that can continue to rise with the market. After the first 12 contract years, your income will continue to have the opportunity to increase from investment gains on contract anniversaries, provided contract value remains. An Income Base that can double after 12 years. On the 12th contract anniversary, if you have not taken any withdrawals during the first 12 contract years, your Income Base is guaranteed to be at least 200% of your purchase payments received in the first contract year. This is referred to as the Minimum Income Base. Access up to 5.4% withdrawals when you re ready for income Age at time of first withdrawal Maximum Annual Withdrawal Amount (MAWA) (as a percentage of your Income Base) Single Life (one covered person) Joint Life (two covered people) 65 or later 5.4% for life 4.9% for life Once withdrawals begin, your percentage rate will not change. If you elect this feature, investment requirements will apply. To realize the feature s benefits, withdrawals must be taken within the feature s parameters. Withdrawals that exceed the feature s parameters are known as excess withdrawals. There is no assurance that withdrawal amounts will keep up with inflation. Withdrawals of taxable amounts are subject to ordinary income tax and, if taken prior to age 59½, an additional 10% federal tax may apply. Withdrawals may be subject to withdrawal charges if they exceed certain parameters. This material is intended only for educational purposes to help you, with the guidance of your financial advisor, make informed decisions. We are not a fiduciary and do not provide investment advice or recommendations. 1

3 Investment Options If you elect Polaris Income Builder, certain investment requirements apply. 10% of your initial and additional investments will automatically be allocated to the Secure Value Account. The Secure Value Account is a fixed account with a one-year term. 90% of your investment can be invested in one or a combination of these portfolios: SunAmerica Dynamic Allocation Portfolio SunAmerica Dynamic Strategy Portfolio Bond Portfolios: Corporate Bond (Federated Investment Management Company); Global Bond (Goldman Sachs Asset Management International); Government and Quality Bond (Wellington Management Company LLP); Real Return (Wellington Management Company LLP); SA JP Morgan MFS Core Bond (Multi-managed); Ultra Short Bond Portfolio (Dimensional Fund Advisors LP) Goldman Sachs VIT Government Money Market Fund (The allocation to the options below may not exceed 50% per individual portfolio.) SA BlackRock VCP Global Multi Asset Portfolio SA Schroders VCP Global Allocation Portfolio SA T. Rowe Price VCP Balanced Portfolio VCP Managed Asset Allocation SAST Portfolio (Capital Research and Management Company) VCP Total Return Balanced Portfolio (PIMCO) VCP Value Portfolio (Invesco Advisers, Inc.) You may use a Dollar Cost Averaging (DCA) fixed account to systematically invest in the investment choices available. Your target DCA instructions must follow the investment requirements described. If you elect 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. The investment requirements may reduce the need to rely on an income protection guarantee because they allocate your investment across asset classes and potentially limit exposure to market volatility. Of course, if you decide not to elect optional income protection, you may invest in any of the investment options offered in Polaris. Please see the Polaris investments brochure to learn more. Depending on investment performance and your income needs, you may not need to rely on this optional insurance feature, which is available at contract issue for an additional initial fee rate of 1.10% of the Income Base (Single Life) or 1.35% (Joint Life). The fee rate is guaranteed for one year. After that time, it will be adjusted quarterly and may decrease or increase based on a predetermined, non-discretionary formula. The minimum issue age for this feature is 65 and the maximum issue age is 80. Please see the prospectus for details regarding minimum and maximum fees, age restrictions and other limitations. Contract and optional benefit guarantees are backed by the claims-paying ability of the issuing insurance company. 2

4 Terms used in this section Income Base: The amount on which guaranteed withdrawals and the annual fee for the feature are based. It is not a liquidation value nor is it available as a lump sum. The Income Base is initially equal to the first purchase payment. Purchase payments received in the first contract year only will be included in the Income Base. We will not accept purchase payments on or after the first contract anniversary if an income protection feature is elected. On each contract anniversary, the Income Base is set to equal the greater of (a) the highest anniversary value, or (b) the Income Base plus the income credit amount (if eligible) during the income credit period. The Income Base is automatically evaluated on contract anniversaries while the contract value is greater than zero and the feature is still in effect, provided you have not reached the Latest Annuity Date (95th birthday). On the 12th contract anniversary, the Income Base may be increased to the Minimum Income Base (200% of purchase payments received in the first contract year) if no withdrawals have been taken from the contract. The Income Base will be increased each time a purchase payment is made during the first contract year. The Income Base will be adjusted for excess withdrawals. Income Credit: The amount that may be added to your Income Base, calculated as a percentage of your Income Credit Base. With Income Builder, the income credit is only available in years that you do not take withdrawals. Partial income credits are not available. Income Credit Base: A component of the feature that is used to calculate the income credit. Initially, the Income Credit Base is equal to the first purchase payment. If the Income Base steps up to your highest anniversary value on a contract anniversary, your Income Credit Base will also step up to this amount. Please note that the Income Credit Base is not increased if your Income Base steps up due to the addition of the income credit. The Income Credit Base will be increased each time a purchase payment is made during the first contract year. The Income Credit Base will be adjusted for excess withdrawals. Income Credit Period: The period of time over which an income credit may be added to the Income Base. It begins on the contract issue date and ends 12 years later. Excess Withdrawal: Any withdrawal, or a portion of a withdrawal, that exceeds the maximum annual withdrawal amount, which then reduces the Income Base and Income Credit Base proportionately. Please see Withdrawals on next page for more information. Anniversary Value: The contract value on your contract anniversary (including any spousal continuation contributions). Highest Anniversary Value: The current anniversary value that is greater than: 1) all previous anniversary values, and 2) purchase payments received prior to the first contract anniversary. Required Minimum Distributions (RMDs): If your variable annuity is funding a retirement plan or account, such as an IRA, and you take a withdrawal that exceeds the Maximum Annual Withdrawal Amount to meet your contract s RMD, your Income Credit Base and Income Base will not be reduced provided RMDs are set up on the company s systematic withdrawal program. Keep in mind, if you plan on taking RMDs during the first 12 contract years, you will not be eligible for the annual 5% income credit in years withdrawals are taken. In addition, you will not be eligible for the Minimum Income Base if any withdrawals are taken prior to the 12th contract anniversary. Are you retired or nearing retirement? The optional Polaris Income Builder feature is available to clients who are age 65 or older. Your financial advisor can help you choose the income protection feature that s right for you. 3

5 Additional information about Polaris Income Builder Withdrawals Annual withdrawals of up to the maximum annual withdrawal amount (MAWA) do not reduce the Income Base and the Income Credit Base (if applicable). If you take a withdrawal that exceeds the MAWA (known as an excess withdrawal ), your Income Base and Income Credit Base will be reduced proportionately by the amount in excess of the MAWA. Excess withdrawals that reduce the Income Base and the Income Credit Base also reduce the MAWA that can be withdrawn under the feature. If an excess withdrawal reduces the contract value to zero, the feature will terminate and you will no longer be eligible to take withdrawals or receive lifetime income payments. The amount available for withdrawals may change over time. It may increase on contract anniversaries if the Income Base increases, or decrease if you take an excess withdrawal that reduces your Income Base. If you have elected Polaris Income Builder, 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 withdrawal charge schedule in the Polaris product brochure. 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 Builder and take withdrawals during the first 12 contract years, future income may be lower than if you had waited to take withdrawals and an income credit was added to your Income Base. Retirement Plans and Accounts If you use this contract to fund a retirement plan or account and you plan on taking Required Minimum Distributions (RMDs), please see the prospectus for more information and consult with a tax advisor concerning your particular circumstances. Keep in mind, an investment in a variable annuity within a retirement plan or account provides no additional tax-deferred benefit beyond that provided by the plan or account. This feature may not be appropriate for use with contributory IRAs (IRA, Roth and SEP) or retirement plans and accounts (401 and 457) if you plan to make ongoing contributions. Purchase payments received in the first contract year only are included in the Income Base. We will not accept purchase payments on or after the first contract anniversary if an income protection feature is elected. Latest Annuity Date If the contract value and the Income Base are greater than zero on the Latest Annuity Date (95th birthday), you will need to select one of these annuity options: 1) Annuitize the contract value under the contract s annuity provisions. 2) Annuitize the contract and receive payments equal to the MAWA at the Latest Annuity Date for a fixed period. The duration of the fixed period will be determined by dividing the contract value at the Latest Annuity Date by the current MAWA. As long as the covered person(s) is living, this amount will continue for the specified period after which time the protected income payment amount will be paid until the death(s) of the covered person(s). 3) Elect any payment option that is mutually agreeable between you and the issuing insurance company. Please see a prospectus for details. Cancellation This feature may be cancelled on the 5th contract anniversary or any contract quarter anniversary after that. Amounts allocated to the Secure Value Account (SVA) will be automatically transferred to the 1-year fixed account, if available. If the 1-year fixed account is not available, the amounts will be transferred to the Ultra Short Bond Portfolio. (State variations may apply.) Once the cancellation becomes effective, the associated fee will no longer be charged going forward. These features cannot be re-elected following cancellation. Other Considerations When the Income Base is increased, it may have the effect of increasing the dollar amount of the fee. When the Income Base is decreased due to excess withdrawals, it may have the effect of reducing the dollar amount of the fee. Joint Life option: In the event of a death, spousal continuation of the contract must be elected to provide guaranteed income for the lifetime of the remaining spouse. The fee for the Joint Life option will continue to be charged. The Joint Life option will automatically be cancelled if a death benefit is paid and the contract is not continued by the spouse, or if the surviving original spouse dies. The Single Life option will automatically be cancelled if a death benefit is paid or if the covered person dies. Please see the prospectus for additional information about what happens in the event of divorce or other changes affecting the contract owners or beneficiaries. If you decide not to take withdrawals under this feature, or you surrender the contract, you will not receive the benefit of the feature. You may pay for the added assurance of the feature and not need to use it. Fees are non-refundable. This feature may be automatically terminated under certain circumstances, such as when the contract is annuitized or surrendered. Other circumstances may also apply. Please see the prospectus for complete details, including limitations and restrictions. 4

6 Additional risks associated with the variable portfolios and other information There is no assurance that a Portfolio s investment process will achieve its specific investment objectives. Portfolios that invest in stocks and bonds are subject to risk, including stock market and interest rate fluctuations. Portfolios that invest in bonds are subject to changes in their value when prevailing interest rates change. Portfolios that invest in non-u.s. stocks and bonds, including emerging market investments, are subject to additional risks such as political and social instability, differing securities regulations and accounting standards, limited public information, plus special risks that may include foreign taxation, currency risks, risks associated with possible differences in financial standards, and other monetary and political risks associated with future political and economic developments. Investments that concentrate on one economic sector or geographic region are generally subject to greater volatility than more diverse investments. Portfolios that invest in technology companies are subject to additional risks and may be affected by short product cycles, aggressive pricing, competition from new market entrants and obsolescence of existing technology. Portfolio returns may be considerably more volatile than a portfolio that does not invest in technology companies. Portfolios that invest in small and mid-size company stocks are generally riskier and more volatile than portfolios that invest in larger, more established companies. Portfolios that invest in high-yield bonds may be subject to greater price swings than portfolios that invest in higher-rated bonds. The payment of interest and principal is not assured. Portfolios that invest in real estate investment trusts (REITs) involve risks such as refinancing, economic conditions in the real estate industry, changes in property values, dependency on real estate management, and other risks associated with a concentration in one sector or geographic region. Investments in securities related to gold and other precious metals and minerals are speculative and impacted by a host of worldwide economic, financial and political factors. Money market instruments generally offer stability and income, but an investment in these securities, like investments in other portfolios, is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. An investment in the Goldman Sachs VIT Government Money Market Fund is subject to potential loss of principal; however, the portfolio seeks to maintain a net asset value of $1. 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). Variable annuities are sold by prospectus only. The prospectus contains the investment objectives, risks, fees, charges, expenses and other information regarding the contract and underlying funds, which should be considered carefully before investing. Please contact your insurance-licensed financial advisor or call to obtain a prospectus. Please read the prospectus carefully before investing. This material was prepared to support the marketing of Polaris Variable Annuities. American General Life Insurance Company and the United States Life Insurance Company in the City of New York, and their distributors and representatives, cannot provide tax, accounting, or legal advice. Any tax statements in this material are not intended to suggest the avoidance of U.S. federal, state or local tax penalties. Such discussions generally are based upon the company s understanding of current tax rules and interpretations. Tax laws are subject to legislative modification, and while many such modifications will have only a prospective application, it is important to recognize that a change could have retroactive effect as well. Please seek the advice of an independent tax advisor or attorney for more complete information concerning your particular circumstances and tax statements made in this material. An investment in Polaris 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 is not required for, and is not a term of, the provision of any banking service or activity. Products and features may vary by state and may not be available in all states. We reserve the right to modify or no longer offer the features described in this brochure. However, once your contract is issued, these features will not change, except as described here and in the prospectus. 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. 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). 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. Policy form numbers: AGL: AG-803 (7/13) US Life: US-803 (12/15) aig.com/annuities R5544CIB (2/17)