AG Choice Index 10® Annuity
Market volatility, longer life expectancies, and rising healthcare costs can create retirement uncertainty.
With AG Choice Index 10, you can generate a predictable income stream for retirement, while avoiding the risk of losing principal in a down market. Optional riders can be added to guarantee* lifetime income to help you better plan your finances during retirement
* Guarantees are backed by the claims-paying ability of the issuing insurance company.
Benefits of AG Choice Index 10
Protect your principal from market downturns1, while growing your assets with potential interest earnings from your choice of interest-crediting strategies.
Choose from two guaranteed living benefit riders that provide retirement income you won’t outlive. One option can guarantee rising income for up to 10 contract years, while the other offers the potential to grow your income throughout retirement.2
1 Principal will decline with withdrawals and/or fees. Please see the Owner Acknowledgment and Disclosure Statement for more information.
2 Each rider has an annual fee of 0.95% of the income base. Only one rider may be issued per contract and the rider selected cannot be changed thereafter.
Your Choice of Index Interest Accounts
Two index interest accounts are available based in part on the performance of the S&P 500® (without dividends): annual point-to-point and annual point-to-point participation rate.
You can choose between two index interest accounts – annual and two-year point-to-point options – based in part on the performance of the ML Strategic Balanced Index®, a hybrid index that tracks positions in equity and fixed income indices along with cash.
Help Potentially Generate More Income for Life
With this guaranteed living benefit rider, your income base1 – the amount from which lifetime withdrawals are calculated – is guaranteed to rise by up to 7.0 percent for the first 10 contract years. Plus, it has the potential to double if no withdrawals are taken until the tenth contract anniversary.
This guaranteed living benefit rider offers the potential for rising income based on any interest earned in your annuity. Before you start withdrawals, your income base can grow by an annual income credit that equals the interest credited rate2 (if any) multiplied by 250 percent. This multiplier is adjusted to 150 percent, less any withdrawals, after you begin taking income.
1 The Income Base has no surrender value and is solely used to calculate the lifetime withdrawal amounts guaranteed by the rider and the rider’s fee. Annuity payout options are available with the base contract for no additional fee and payouts are based on the annuity contract value at the time of annuitization.
2 The interest credited rate is the rate of interest that you earn on your interest crediting options. It is adjusted for provisions such as index rate caps, participation rates and spread that may reduce or limit the amount of interest earned. It’s important to note that in a year when no interest is earned or a withdrawal is more than the income credit, no income credit will be applied to the rider’s Income Base for that year.
Talk to Your Financial Professional
Ask your insurance-licensed, FINRA-registered financial professional for more information about annuity solutions that can help you establish a reliable retirement income source.
Contract and optional guarantees are backed by the claims-paying ability of the issuing insurance company.
Annuities issued by American General Life Insurance Company (AGL) except the Power Index Elite index annuity, which is issued by The Variable Annuity Life Insurance Company (VALIC). AGL does not solicit business in the state of New York.
Products and riders may vary by state or may not be available in all states.
The aforementioned insurance company(ies) is(are) members of American International Group, Inc.
"AIG" is a marketing name for products issued by AGL and VALIC.
AGL/VALIC, its distributors and representatives are not authorized to give legal, tax or accounting advice. Applicable laws and regulations are complex and subject to change. Any tax statements in this material are not intended to suggest the avoidance of U.S. federal, state or local tax penalties. For advice concerning your situation, consult your professional attorney, tax advisor or accountant.
Index annuities are not a direct investment in the stock market. They are long-term insurance products with guarantees backed by the claims-paying ability of the issuing insurance company. They provide the potential for interest to be credited based in part on the performance of the specified index, without the risk of loss of premium due to market downturns or fluctuations. Index annuities may not be suitable or appropriate for all individuals. Withdrawals may be subject to federal and/or state income taxes. An additional 10% federal tax may apply if you make withdrawals or surrender your annuity before age 59½. Consult your tax advisor regarding your specific situation.
Lifetime Income Plus or Lifetime Income Plus Multiplier is available at contract issue for an annual fee of 0.95% of the Income Base. Restrictions and limitations apply. One rider must be elected at contract issue and cannot be changed after election. Contract and living benefit guarantees are backed by the claims-paying ability of American General Life Insurance Company. The Income Base is adjusted for excess withdrawals and is increased each time an eligible premium and corresponding premium enhancement (if any) is made. Eligible premiums are all premiums made in the first 30 days after contract issue. On each contract anniversary, the Income Base can increase to the greater of 1) the anniversary value, if it is higher than all previous anniversary values; or 2) the Income Base plus any available income credit.
For Lifetime Income Plus, the income credit is 7.0% of the Income Credit Base in years when no withdrawals are taken during the first 10 contract years. The annual income credit will be reduced by the percentage of the Income Base withdrawn in years when withdrawals are taken. On the 10th contract anniversary, the Income Base may be increased to the Minimum Income Base (200% of eligible premiums) if no withdrawals have been taken from the contract. For Lifetime Income Plus Multiplier, prior to withdrawals being taken, the income credit is equal to the interest credited rate times the 250% Multiplier. After the first withdrawal is taken, the adjusted multiplier is 150% for the remainder of the income credit period and the income credit percentage is reduced by the percentage of the Income Base withdrawn. The Income Credit Base is a component of the rider that is used solely to calculate the income credit. Initially, the Income Credit Base is equal to the first eligible premium and corresponding premium enhancement (if any). If the Income Base steps up to the anniversary value on a contract anniversary, the Income Credit Base will also step up to this amount. The Income Credit Base is not increased if the Income Base rises due to the addition of the income credit. The Income Credit Base is adjusted for excess withdrawals and is increased each time an eligible premium and corresponding premium enhancement (if any) is made.
Tax-qualified plans such as IRAs, 401(k)s or 403(b) plans are tax deferred regardless of whether or not they are funded with an annuity. If you use an annuity to fund a tax-qualified plan, you should know that an annuity does not provide any additional tax-deferred treatment of interest beyond the treatment by the tax-qualified plan itself. You should only use an index annuity in a tax-qualified plan if you want to benefit from features other than tax deferral.
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.