Chroic Illess Protectio Rider Access your death beefits while livig. Accelerated Access Solutio Optioal Livig Beefit Rider for Secure Lifetime GUL 3; Value+ Protector ; Max Accumulator+ Policies issued by: America Geeral Life Isurace Compay, a member of America Iteratioal Group, Ic. (AIG)
Put your life isurace to work What are the odds of actually havig a chroic illess? 91 % About 91% of older adults have at least oe chroic coditio, ad 73% have at least two. 2 Do t most people have health isurace or Medicare to pay for somethig like this by the time it happes? Idividuals may eed log-term support ad services at ANY age, ad Medicare ad most health isurace plas will NOT pay for them. 3 Ask yourself Do I eed life isurace to protect myself ad my family? Would I prefer those life isurace beefits available i life or death, istead of the additioal cost of a use it or lose it log-term care policy? After seeig a fried or family member suffer a health care evet, am I prepared for how expesive it ca be? If you became chroically ill which kid of treatmet would you wat: the cheapest available or the highest quality possible will you have the fiacial freedom to make the choice? $ 220 K OUT-OF-POCKET The average 65-year old couple retirig i 2014 ca expect $220,000 i out-of-pocket medical expeses through the duratio of their retiremet. 4 Am I i geerally good health, but wat possibilities for future care as I age ad my health deteriorates? If I am certified as chroically ill, would I like to tap ito my life isurace beefits for ecessary treatmet?
Chroic Illess Protectio Rider Thik life isurace oly pays out to your loved oes whe you die? Not aymore. Access your ow life isurace beefits while livig. By addig the Accelerated Access Solutio (AAS) chroic illess rider to a select life isurace policy, you ca access your icome tax-free life isurace beefits, if diagosed with a chroic illess. 1 Should a eligible chroic illess occur, you ca be paid mothly beefits util that illess improves or your AAS beefit is exhausted whichever happes first. See full rider for details 1 It s a good optio for cosumers who uderstad the value ad security of combiig death beefit ad chroic illess protectio ito oe. AAS Provides Freedom of choice Ulike may log-term care reimbursemet policies, it ca be used to pay for virtually ay expese eve those urelated to the illess: Adult daycare Assisted livig or ursig home Massage therapy Prescriptio drugs Home maiteace (law, hadyma, etc.) Home improvemets (ew furiture, upgraded shower, ramp istallatio, etc.) Gas for trasportatio to ad from treatmets Cash i the pocket of a fried or loved oe takig time off work to assist i your care
How it works Usig your beefit Multiple beefit paymet optios three optios available for mothly disbursemet: 2% of the AAS beefit per moth 4% of the AAS beefit per moth IRS maximum per diem amout at time claim begis (the 2016 rate is $340/day, which equates to $10,341.66/moth for a thirty-day moth) Waiver of mothly deductio if you file a approved chroic illess claim to access your moey via your AAS rider, the you will ot be resposible for payig policy deductios while you cotiue to access those beefits Flexible optios with total beefit amout select ay amout betwee 50%-100% of the base policy life isurace beefit amout 5 Care coordiatio services available variety of optioal ad free support services available to you at time of claim Cotrol how your ow claim moey is spet moey goes directly ito your pocket, ot the health provider or care facility You get what you pay for your potetial total AAS beefit matches the amout you select at time of purchase exactly, o eed to guess what your total payout might be after fees ad deductios. Not a typical use it or lose it log-term care policy beefits are paid o matter what either to the isured if they become chroically ill, or to your beeficiaries at the time of your death. 6 No receipts required you do t eed to show or tell us how you sped your moey No waitig period chroic illess beefits are available for activatio as soo as the policy is issued, subject to eligibility Becomig eligible To activate the rider, a isured perso must be certified by a licesed health care practitioer to be cosidered a chroically ill perso. Oe of the followig health impairmet criteria must be met for a period of at least 90 cosecutive days: 1. The isured is uable to perform, without substatial assistace from aother perso, at least two of the Activities of Daily Livig (ADLs): Bathig Eatig Cotiece Toiletig Dressig Trasferrig 2. The isured requires substatial supervisio from threats to health ad safety due to a severe cogitive impairmet (similar to Alzheimer s ad other forms of irreversible demetia) that is measured by cliical evidece ad stadardized tests measurig: Short-term or log-term memory Orietatio as to people, places or time, ad Deductive or abstract reasoig Oce all criteria are met, mothly beefits may begi. 7 Gettig paid Oce the isured meets the health impairmet criteria ad beefits have bee approved for paymet, the followig will occur i order: 1. Paymet of Accelerated Access Solutio beefits, which are desiged to be received icome-tax-free 8 will begi. 2. Mothly deductios will be waived for as log as the policy ower meets the chroic illess requiremets. 3. The life isurace beefit will be reduced by each Accelerated Access Solutio beefit amout paid to the policy ower. 4. At death, ay remaiig life isurace beefit will be paid to your policy beeficiary icome-tax-free. 8 Remember: AAS must be added to the life isurace policy at the time of purchase i order to be valid. 9 The mothly cost of the rider will vary based o the AAS beefit amout selected, issue age, geder ad uderwritig class. Chroic coditios do ot eed to be cosidered life-log or permaet i order to be eligible.
Before you buy Pick your payout With AAS you have three choices for mothly beefit payouts, but you must select which optio you prefer at the time of purchase: 2% of your AAS beefit 4% of your AAS beefit or the IRS per diem amout at the time of claim For all three chroic illess beefit scearios, ay life isurace beefit amouts uused/upaid to you after your chroic illess claim will be available to be paid to your beeficiary at the time of your death. 10 Our most uique feature i the AAS is the IRS per diem payout optio. It allows you to purchase just the amout of coverage eeded o more ad o less. AAS is the oly product curretly i the market providig the maximum mothly beefit allowable by law (the per diem) i a idemity policy with tax-free beefits. Hypothetical AAS Beefits for a $250,000 policy A $250,000 Secure Lifetime GUL 3 policy is purchased with a (100%) $250,000 Accelerated Access Solutio beefit. The premiums paid were structured to guaratee death beefits util reachig age 100 (Fig. 1). (Fig. 1) Example Payout Optio Rate* Type Mothly Payout Maximum Full $250,000 Beefit Realized 2% Fixed $5,000 4 years, 2 moths 4% Fixed $10,000 2 years, 1 moth IRS Per Diem Variable $20,833.33 1 year * All rates subject to the IRS Per Diem cap o the date of activatio. Faster access (Fig. 2) Speed of Total Payout The IRS per diem optio 2% Year 1 Year 2 potetially gives you the fastest access to more of your moey payig out 4% your total beefit (if Year 1 Year 2 eeded) i the shortest period of time. (Fig. 2) IRS Per Diem Year 1 MAX BENEFIT REACHED Year 3 Year 4 MAX BENEFIT REACHED MAX BENEFIT REACHED Higher payouts It is also the oly optio that could potetially icrease the mothly amout paid to you the loger you wait to activate it. (Fig. 3) (Fig. 3) Activatio at Years 1, 10, 20, 30 $20,000 15,000 10,000 5,000 $0 Yr 1 Yr 10 Yr 20 Yr 30 Yr 1 Yr 10 Yr 20 Yr 30 Yr 1 Yr 10 Yr 20 Yr 30 2% Beefit 4% Beefit Per Diem Beefit NOTE: IRS caps the maximum daily rate each year. For 2016, the maximum per diem is $340/day or $10,341.66/moth for a thirty-day moth. I Figure 3 (above), hypothetical per diem icreases based o IRS 2016 per diem i year 1, ad icreasig 4% each year thereafter. Whether or ot the IRS per diem limit will chage over time is ot guarateed. Hypothetical represetatio for illustrative purposes oly.
Life isurace you do t have to die to use Protect your loved oes, ad your ow right to choose. Add the optioal Accelerated Access Solutio to your Secure Lifetime GUL 3, Value+ Protector or Max Accumulator+ life isurace policy ad get icome tax free 11 access to your death beefits while livig, if diagosed with a chroic illess; remaiig life isurace policy beefits pay o, as plaed, after you die. 12 Two forms of protectio i oe powerful policy. 1 If the aual amout received by the policy ower for chroic illess beefits from all applicable sources exceeds the actual cost of care i a year or exceeds the IRS per diem exclusio limit aggregated for the portio of the year durig which the Isured Perso was certified as beig chroically ill, some of the beefits may be taxable. Policy owers should cosult their ow tax advisors regardig how receipt of the beefit will apply to their ow tax situatio. 2 Natioal Coucil o Agig: www.coa.org/improve-health/ceter-forhealthyagig/chroic-disease, 2014 3 Source: Medicare & You 2015, U.S. Departmet of Health ad Huma Services 4 Source: Fidelity Beefits Cosultig study, 2014 5 Isured must be certified as chroically ill by a licesed health care practitioer ad meet all eligibility requiremets. 6 Assumes all remaiig premiums are paid o time ad i full. 7 Isured must be certified as chroically ill by a licesed health care practitioer ad meet all eligibility requiremets. 8 Based o curret federal icome tax laws, policy owers should cosult a qualified tax advisor. 9 The free Termial Illess Rider must be added to the policy i additio to the Accelerated Access Solutio rider. 10 Assumes all remaiig premiums are paid o time ad i full. 11 Based o curret federal icome tax laws, policy owers should cosult a qualified tax advisor. Subject to IRS per diem limits 12 Assumes all remaiig premiums are paid o time ad i full. NOT A DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY MAY LOSE VALUE NO BANK OR CREDIT UNION GUARANTEE NOT FDIC/NCUA/NCUSIF INSURED Policies issued by: America Geeral Life Isurace Compay (AGL), Policy Form Numbers 13460, ICC13-13460, 13717, ICC13-13717, 15442, ICC15-15442, 15442-10 REV0815, 15646, ICC15-15646, 16760, ICC16-16760; Rider Form Numbers 13600, ICC13-13600, 13600-5; ICC15-15600; 15600, 13972, 82001, 82012, 82410, 88390, 15990,ICC15-15990, 15972, CA WMDR 82001-5 Rev0914. Issuig compay AGL is resposible for fiacial obligatios of isurace products ad is a member of America Iteratioal Group, Ic. (AIG). AGL does ot solicit busiess i the state of New York. Products may ot be available i all states ad product features may vary by state. Guaratees are backed by the claims-payig ability of the issuig isurace compay. This iformatio is geeral i ature, may be subject to chage, ad does ot costitute legal, tax or accoutig advice from ay compay, its employees, fiacial professioals or other represetatives. Applicable laws ad regulatios are complex ad subject to chage. Ay tax statemets i this material are ot iteded to suggest the avoidace of U.S. federal, state or local tax pealties. For advice cocerig your idividual circumstaces, cosult a professioal attorey, tax advisor or accoutat. 2016 AIG. All rights reserved. AGLC109820 REV0616