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.
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 1.0% of the income base. Only one rider may be issued per contract and the rider selected cannot be changed thereafter.
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.
This index interest account offers you the opportunity to earn interest based on the PIMCO Global Optima Index™, which dynamically blends global equities (including small-cap, international and emerging market stocks) with U.S. fixed income markets to help deliver upside growth potential.
This index interest account offers you the opportunity to earn interest based in part on the performance of the Russell 2000® index, which is comprised of U.S. small-cap stocks with market capitalization that average $2 billion.
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.
This index interest account offers you the opportunity to earn interest based on the MSCI EAFE index, designed to represent international stocks, excluding the U.S. and Canada.
With this guaranteed living benefit rider, your income base1 – the amount from which lifetime withdrawals are calculated – is guaranteed to rise by up to 7.5 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 provides income for life and offers income raises equal to Double (x2) the interest earned (if any) before withdrawals and Matches (x1) the interest earned (if any) after the first withdrawal.
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, no income credit will be applied to the rider’s Income Base for that year.
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 cannot provide tax, accounting, legal, financial or investment advice or recommendation, and do not serve in any fiduciary capacity in our relationship with you. This material is intended to help you, with your financial advisor, make the best long-term decisions for your future. 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.
Contract and optional guarantees are backed by the claims-paying ability of the issuing insurance company. Lifetime Income Plus FlexSM or Lifetime Income Plus Multiplier FlexSM is available at contract issue for an annual fee of 1.0% of the Income Base. Restrictions and limitations apply. Only one rider may 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 withdrawals prior to rider activation and excess withdrawals after activation 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 Flex, the income credit is 7.5% of the Income Credit Base in the first 10 contract years from issue prior to activating the rider. After activating the rider, 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 Flex, prior to activating the rider, the income credit is equal to the interest credited rate mulitplied by 200% ("the 200% Multiplier"). After activating the rider and the first withdrawal is taken, the adjusted multiplier is 100% for the remainder of the income credit period. 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 only exception is for Lifetime Income Plus Multiplier Flex. On the contract anniversary after activating the rider and the first withdrawal, the Income Credit Base for Lifetime Income Plus Multiplier Flex will step up to equal the value of the Income Base (including previously applied income credits) and will remain equal to it thereafter. 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.
AG Choice Index 10 Modified Single Premium Deferred Fixed Index Annuity (Single Premium Only in Oregon), Contract Number AG-801 (12/12); Market Value Adjustment (MVA) Rider, Form Number AGE-8000 (12/12); Lifetime Income Plus Optional Guaranteed Living Benefit Rider, Form Number AGE-8002 (9/13); Annual Point-to-Point Index Interest Account Rider, Form Number AGE-8003 (12/12); Terminal Illness Rider, Form Number AGE-8007 (12/12); Extended Care Rider, Form Number AGE-8008 (12/12); Activities of Daily Living Rider, Form Number AGE-8009 (12/12); Annual Point-to-Point, Annual Point-to-Point with Annual Spread and 2-Year Point-to-Point Index Interest Account Riders, Form Number AGE-8028 (4/14); and Lifetime Income Plus Multiplier Optional Guaranteed Living Benefit Rider, Form Number AGE-8034 (4/15).
The S&P 500® Index is a product of S&P Dow Jones Indices LLC (“SPDJI”), and has been licensed for use by American General Life Insurance Company and affiliates. Standard & Poor’s,® S&P,® and S&P 500® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by American General Life Insurance Company and affiliates. American General Life Insurance Company and affiliates’ products are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or their respective affiliates, and none of such parties make any representation regarding the advisability of purchasing such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500® Index.
MSCI EAFE: The product referred to herein is not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any suchproduct or any index on which such product is based. The contract contains a more detailed description of the limited relationship MSCI has withLicensee and any related product.RUSSELL 2000®: The index annuity product to which this disclosure applies (the “Product”) has been developed solely by American General LifeInsurance Company (“AGL”). The “Product” is not in any way connected to or sponsored, endorsed, sold or promoted by the London Stock ExchangeGroup plc and its group undertakings (collectively, the “LSE Group”). FTSE Russell is a trading name of certain of the LSE Group companies.All rights in the Russell 2000® Index (the “Index”) vest in the relevant LSE Group company which owns the Index. “Russell®”, “Russell 2000®”, “FTSE®”“Russell®”, and “FTSE Russell®” are trade mark(s) of the relevant LSE Group companies and are used by any other LSE Group company under license.“TMX®” is a trade mark of TSX, Inc. and used by the LSE Group under license.The Index is calculated by or on behalf of FTSE International Limited or its affiliate, agent or partner. The LSE Group does not accept any liabilitywhatsoever to any person arising out of (a) the use of, reliance on or any error in the Index or (b) the purchase of or operation of the “Product”. The LSEGroup makes no claim, prediction, warranty or representation either as to the results to be obtained from the “Product” or the suitability of the Index forthe purpose to which it is being put by AGL.
The PIMCO Global Optima Index™ (the "Index") is a comprehensive equity and bond index, offering exposure to global equity and U.S. fixed income markets. The Index is a trademark of Pacific Investment Management Company LLC ("PIMCO") and has been licensed for use for certain purposes by AGL with the Power Series of Index Annuities (the "Product"). The Index is the exclusive property of PIMCO and is made and compiled without regard to the needs, including, but not limited to, the suitability or appropriateness needs, as applicable, of AGL, the Product, or owners of the Product. The Product is not sold, sponsored, endorsed or promoted by PIMCO or any other party involved in, or related to, making or compiling the Index. PIMCO does not provide investment advice to AGL with respect to the Product or to owners of the Product.
Neither PIMCO nor any other party involved in, or related to, making or compiling the Index has any obligation to continue to provide the Index to AGL with respect to the Product. Neither PIMCO nor any other party involved in, or related to, making or compiling the Index makes any representation regarding the Index, Index information, performance, annuities generally or the Product particularly.
PIMCO disclaims all warranties, express or implied, including all warranties of merchantability or fitness for a particular purpose or use. PIMCO shall have no responsibility or liability whatsoever with respect to the Product.
The Licensed PIMCO Index is comprised of a number of constituents, some of which are owned by entities other than PIMCO. The Licensed PIMCO Indices rely on a variety of publically available data and information and licensable equity and fixed income sub-indices. All disclaimers referenced in the Agreement relative to PIMCO also apply separately to those entities that are owners of the constituents of the Licensed PIMCO Indices. The constituents of the Licensed PIMCO Indices include: MSCI Inc., FTSE International Limited, FTSE TMX Global, Debt Capital Markets, Inc., Frank Russell Company and certain ETFs.
The ML Strategic Balanced Index® (“the Index”) provides systematic, rules-based access to the blended performance of the S&P 500® (without dividends), which serves to represent equity performance, and the Merrill Lynch 10-year U.S. Treasury Futures Total Return Index, which serves to represent fixed income performance. To help manage overall return volatility, the Index may also systematically utilize cash performance in addition to the performance of these two underlying indices.
American General Life Insurance Company’s licensing relationship with Merrill Lynch, Pierce, Fenner & Smith Incorporated for use of the Index and for use of certain service marks includes American General Life Insurance Company’s purchase of financial instruments for purposes of meeting its interest crediting obligations. Some portion of those instruments will, or may be, purchased from Merrill Lynch, Pierce, Fenner & Smith Incorporated or its affiliates.
Merrill Lynch, Pierce, Fenner & Smith Incorporated and its affiliates (“BofA Merrill Lynch”) indices and related information, the name “BofA Merrill Lynch”, and related trademarks, are intellectual property licensed from BofA Merrill Lynch, and may not be copied, used, or distributed without BofA Merrill Lynch’s prior written approval. The products of licensee American General Life Insurance Company have not been passed on as to their legality or suitability, and are not regulated, issued, endorsed, sold, guaranteed, or promoted by BofA Merrill Lynch. BOFA MERRILL LYNCH MAKES NO WARRANTIES AND BEARS NO LIABILITY WITH RESPECT TO ANY INDEX, ANY RELATED INFORMATION, ITS TRADEMARKS, OR THE PRODUCT(S) (INCLUDING WITHOUT LIMITATION, ITS QUALITY, ACCURACY, SUITABILITY AND/OR COMPLETENESS).
The Index is the property of Merrill Lynch, Pierce, Fenner & Smith Incorporated, which has contracted with S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC) to calculate and maintain the Index. The Index is not sponsored by S&P Dow Jones Indices or its affiliates or its third party licensors (collectively, “S&P Dow Jones Indices”). S&P Dow Jones Indices will not be liable for any errors or omissions in calculating the Index. “Calculated by S&P Dow Jones Indices” and the related stylized mark(s) are service marks of S&P Dow Jones Indices and have been licensed for use by Merrill Lynch, Pierce, Fenner & Smith Incorporated.
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.