Polaris Income Plus MORE INCOME. MORE CHOICE. MORE FLEXIBILITY.
MORE WAYS To Offer Clients an Income Advantage No single solution can meet the diverse income needs of your clients. Some need income today. Others are still building for tomorrow. And many clients want the flexibility to adjust their income plans to meet changing needs. Polaris Variable Annuities offer multiple ways to provide MORE INCOME including a broad range of options that provide MORE CHOICE and MORE FLEXIBILITY to design customized income solutions for your clients. MORE SOLUTIONS FOR YOUR CLIENTS. MORE OPPORTUNITIES FOR YOUR BUSINESS.
MORE INCOME Generate MORE Income with Polaris Income Plus The Income Plus feature, available in select Polaris Variable Annuities, offers a range of income options to help you design customized income solutions. What s more, Income Plus continues to offer the key advantages that have made Polaris Variable Annuities a leader in retirement income. 6% ANNUAL WITHDRAWALS as early as age 65 or 6.5% as early as age 72 (Income Option 1 Single Life) 7% ANNUAL WITHDRAWALS as early as age 65 or 7.5% as early as age 72 (Income Option 2 Single Life) 5% ANNUAL WITHDRAWALS FOR LIFE at age 65 plus guaranteed rising income during the first 12 contract years with a partial income credit of.5% (Income Option 3 Single Life) For LIFE! Joint Life options are also available. Withdrawal rates for Joint Life are lower than Single Life rates. Key Advantages Full 5.5% annual income credit during the first 12 contract years, in years withdrawals are not taken Opportunity for guaranteed rising income with a partial income credit in years withdrawals are taken, provided withdrawals are within the parameters of the income option elected and less than 5.5% Doubling of Income Base after 12 years (200% of first-year purchase payments) if no withdrawals are taken regardless of client s age at that time Opportunity for annual market step-ups from investment gains on contract anniversaries, provided contract value remains Income credits stack on market step-ups Income Plus locks in to the Income Base the greater of investment gains or an annual income credit of up to 5.5% (as defined in the prospectus) on contract anniversaries during the first 12 contract years. After 12 years, the Income Base can continue to increase from investment gains, provided contract value remains. The opportunity for guaranteed rising income during the first 12 contract years ends if the contract value is completely depleted. Income Plus is optional, available at contract issue for an additional fee and subject to restrictions and limitations. Investment requirements also apply. Contract and optional benefit guarantees are backed by the claims-paying ability of the insurer. See back cover for important information, including withdrawal parameters, fees and investment requirements.
MORE CHOICE Clients can receive MORE Income whether they need it today, tomorrow or down the road Here s a hypothetical illustration of how each income option can provide MORE INCOME for your clients. Of course, clients can always start, stop or adjust withdrawals (within the parameters of the income option elected) if income needs change in retirement. Build Customized Solutions with a Choice of Income Options Hypothetical illustration: Annual income at age 65 based on a $100,000 investment with a 0% net rate of return Age Year Option 1 Single Life Option 2 Single Life Option 3 Single Life 6% withdrawals at age 65 with Option 1 65 1 $6,000 $7,000 $5,000 66 2 $6,000 $7,000 $5,025 67 3 $6,000 $7,000 $5,050 More income sooner with Option 2 68 4 $6,000 $7,000 $5,075 69 5 $6,000 $7,000 $5,100 70 6 $6,000 $7,000 $5,125 71 7 $6,000 $7,000 $5,150 72 8 $6,000 $7,000 $5,175 73 9 $6,000 $7,000 $5,200 74 10 $6,000 $7,000 $5,225 75 11 $6,000 $7,000 $5,250 76 12 $6,000 $7,000 $5,275 77 13 $6,000 $7,000 $5,300 78 14 $6,000 $7,000 $5,300 79 15 $6,000 $7,000 $5,300 80 16 $6,000 $3,000 PIP $5,300 81 17 $6,000 $3,000 PIP $5,300 82 18 $4,000 PIP $3,000 PIP $5,300 In this Option 3 example, income grows with a partial income credit of.5%. After 12 years, income increases to the equivalent of 5.3% of the initial Income Base and continues for life. 83 19 $4,000 PIP $3,000 PIP $5,300 84 20 $4,000 PIP $3,000 PIP $5,300 Total Income $114,000 $120,000 $104,050 20 yrs For LIFE! Total Income 30 yrs $154,000 $150,000 $157,050 Note: This illustration is hypothetical and does not reflect the performance of any specific investment. Actual results may differ. With Income Option 1 and 2, the protected income payment (PIP) is paid and continues for life in the event the contract value is completely depleted due to market volatility and/or withdrawals taken within the feature s parameters. With Income Option 3, the contract value is completely depleted at age 84 in this hypothetical example, however, the income percentage is guaranteed for life. Amounts shown do not reflect any state or federal taxes that may be applicable. See back cover for important information, including withdrawal parameters, fees and investment requirements.
MORE FLEXIBILITY Offer clients the opportunity for MORE rising income even while taking withdrawals Clients have the flexibility to take withdrawals and still receive a partial income credit for guaranteed rising income. Income Plus can ensure rising income with a partial income credit during the first 12 contract years on contract anniversaries even while taking withdrawals, as long as withdrawals are less than 5.5%, within the parameters of the income option elected and contract value remains. The annual income credit is simply reduced by the percentage of the Income Base withdrawn. Opportunity for Rising Income with a Partial Income Credit Example: Option 3 (Single Life) - = 5.5% 5%.5% Income Credit Withdrawal Income Credit Of course, if the maximum annual withdrawal amount is less than 5.5%, clients can automatically receive a partial income credit for guaranteed rising income during the first 12 contract years, provided contract value remains. Now is the time to offer clients MORE with Income Plus! See back cover for important information, including withdrawal parameters, fees and investment requirements. Contact your AIG Annuities wholesaler or Sales Desk to order materials.
Polaris Income Plus (Available for issue ages 45-80) Income Option 1 Income Option 2 Income Option 3 Age at 1st Withdrawal Covered Persons MAWA PIP MAWA PIP MAWA/PIP 45-59 60-64 65-71 72+ Single Life 4.0% 3.0% * 4.0% 3.0% * 3.25% for life Joint Life 3.5% 3.0% * 3.5% 3.0% * 3.00% for life Single Life 5.0% 3.0% * 5.0% 3.0% * 3.75% for life Joint Life 4.5% 3.0% * 4.5% 3.0% * 3.50% for life Single Life 6.0% 4.0% 7.0% 3.0% 5.00% for life Joint Life 5.5% 4.0% 6.5% 3.0% 4.50% for life Single Life 6.5% 4.0% 7.5% 3.0% 5.25% for life Joint Life 6.0% 4.0% 7.0% 3.0% 4.75% for life The Maximum Annual Withdrawal Amount (MAWA) and the Protected Income Payment (PIP) are calculated as a percentage of the Income Base. With Income Option 3, maximum annual withdrawal percentage is guaranteed for life. * If the contract value is completely depleted due to market volatility and/or withdrawals taken within the feature s parameters, clients will receive the protected income payment (PIP). The PIP is calculated as a percentage of the Income Base. With Income Plus Income Options 1 and 2, if withdrawals begin before age 65 and the Income Base increases due to investment gains on a contract anniversary on or after the 65th birthday, the PIP automatically increases to 4%. To realize the benefits, clients must take withdrawals within the applicable parameters. Excess withdrawals reduce the Income Base and the Income Credit Base and also reduce the maximum annual withdrawal amount that can be withdrawn under the feature. This feature is available at contract issue in select Polaris Variable Annuities and subject to additional fees, age restrictions, investment requirements and other limitations. Only one income option may be elected. Age at time of first withdrawal is based on age of older individual if the contract is jointly owned for Single Life; age of younger individual for Joint Life. If withdrawals of 5.5% or more (when eligible) are taken or if withdrawals exceed the feature s parameters in a given year, an income credit will not be available on the next contract anniversary. The Income Base is 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. To realize the benefits of Income Plus, clients must take withdrawals within the feature s parameters. Annual withdrawals of up to the maximum annual withdrawal amount do not reduce the Income Base and the Income Credit Base. Excess withdrawals that reduce the Income Base and the Income Credit Base also reduce the maximum annual withdrawal amount that can be withdrawn under the feature. Depending on the performance of the investment, clients may never need to rely on the protection provided by an optional insurance feature. This feature may not be appropriate for use with contributory IRAs or other retirement plans and accounts if clients intend to make ongoing contributions. The initial fee rate is 1.10% Single Life; 1.35% Joint Life, and is guaranteed for one year. After one year, the fee rate will be adjusted quarterly based on a predetermined, non-discretionary formula. Minimum fee rate is 0.60%. Maximum fee rate for the life of the contract is 2.20% Single Life; 2.70% Joint Life. Please see the prospectus for complete details. Important information about the investment requirements Investment requirements apply, including a required allocation of the initial and additional purchase payments to the Secure Value Account (SVA), a fixed account with a one-year term. The remainder of purchase payments may be allocated among portfolios that meet the investment requirements of the feature and income option elected. By investing in a fund that is designed to reduce volatility risk, clients may have less risk from market downturns, but may also have less opportunity to benefit from market gains. Please see a prospectus for complete details. Annuities are designed for long-term retirement investing. 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 a variable annuity involves investment risk, including the possible loss of principal. The contract, when redeemed, may be worth more or less than the total amount invested. Retirement plans and accounts, such as IRAs and 401(k)s, can be tax-deferred (and subject to required minimum distributions) regardless of whether or not they are funded with an annuity. Products and features may vary by state and may not be available in all states. The purchase of a variable annuity 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 representations or guarantees regarding the claims-paying ability of the issuing insurance company. 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. A prospectus may be obtained by calling 1-800-445-7862. Clients should read the prospectus carefully before investing. 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). The Elite Series of Polaris Variable Annuities is issued by The Variable Annuity Life Insurance Company (VALIC). Distributed by AIG Capital Services, Inc. (ACS), Member FINRA. AGL, US Life, VALIC and ACS are members of American International Group, Inc. (AIG). Not FDIC or NCUA/NCUSIF Insured May Lose Value No Bank or Credit Union Guarantee Not a Deposit Not Insured by any Federal Government Agency M5167IP6.13 (8/16)