Lock in Your Highest Daily Value for Future Retirement Income

Lock in Your Highest Daily Value for Future Retirement Income Polaris Income Plus Daily SM Available in select Polaris Variable Annuities Polaris ...
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Lock in Your Highest Daily Value for Future Retirement Income

Polaris Income Plus Daily

SM

Available in select Polaris Variable Annuities

Polaris Income Plus Daily is an optional income protection feature that is only available with the purchase of a Polaris Variable Annuity. Guarantees are backed by the claims-paying ability of the issuing insurance company. M5600CN7.3 (12/16)

More Frequent Step-ups Can Mean More Opportunity Is there value in having daily step-ups to the Income Base? While no one can predict the market, daily step-ups can provide more opportunities to lock in investment gains to the Income Base.

Total step-up opportunities over 10 years 2,520

(252x per year*)

2,500

2,000

1,500

1,000

500

0

120

40

(1x per year)

(4x per year)

(12x per year)

Annual

Quarterly

Monthly

10

Participate in the growth potential of the market with a Polaris Variable Annuity

Daily

Polaris offers you market participation. Plus, by electing the Polaris Income Plus Daily income protection feature, you’ll have the opportunity to lock in potential investment gains to your Income Base every day for guaranteed lifetime income.

*Based on approximate number of trading days each year for the New York Stock Exchange. Note: Polaris Variable Annuities are long-term investments designed for retirement purposes. In the Accumulation phase, they can help you build assets on a tax-deferred basis. In the Income phase, they can provide you with guaranteed income through standard or optional features. Variable annuities are subject to costs that include a separate account fee, a contract maintenance fee, expenses related to the operation of the variable portfolios and the costs associated with any optional features elected. The Polaris Income Plus Daily optional feature is available at contract issue and is subject to additional fees, investment requirements and other limitations. Guarantees are backed by the claimspaying ability of the issuing insurer. 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. Investment involves risk, including the possible loss of principal. Your contract value when redeemed may be worth more or less than your original investment. If you fund your IRA or 401(k) with a variable annuity, you should realize that these retirement plans and accounts are already tax-deferred. A variable annuity provides no additional tax-deferred benefit beyond that provided by the retirement plan or account. You should only use a variable annuity in a retirement plan or account if you want to benefit from features other than tax deferral. Please consult with your financial representative and tax advisor regarding your individual situation. 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.

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The Potential For

More Retirement Income The Polaris Income Plus Daily

optional income protection feature can help you capture investment gains daily for future retirement income. SM

Annual withdrawal rates of up to 7% at age 65 Choose from three income options, including one that offers withdrawals of 7% at age 65 or 7.5% at age 72 (Single Life). The maximum annual withdrawal amount is based on the income option you select, choice of Single Life or Joint Life, and your age when withdrawals begin.1 With certain income options, the amount available for lifetime income is reduced if your contract value is completely depleted due to market volatility, deduction of fees and/or withdrawals taken within the feature’s parameters. Please see inside back cover for more information about the available income options.

Opportunity for daily step-ups to your Income Base Before you take your first withdrawal, your Income Base automatically steps up to lock in investment gains every time your daily contract value is higher than your current Income Base. (This is referred to as your Step-up Value.) After you begin taking withdrawals, your Income Base can continue to step up on each contract anniversary to lock in your highest daily value during the prior contract year for rising income.2 The Income Base is the amount on which guaranteed withdrawals and the annual fee for the feature are based. It is not the same as your contract value; it is not a liquidation value nor is it available as a lump sum.

Opportunity for up to 80% equity exposure Choose from four professionally designed asset allocation models—offering up to 80% equity exposure3, OR build a customized allocation using 25+ individual portfolios.

Guaranteed lifetime income With a choice of Single Life and Joint Life income options, you can secure guaranteed lifetime income for as long as you—or you and your spouse—live.

1

With Income Options 1, 2, and 3, withdrawal rates range from 2.75% to 7.5% of the Income Base, depending on whether one or two people are covered, and age at the time of the first withdrawal. Please see inside back cover for complete details.

2

If you take an excess withdrawal, Polaris Income Plus Daily locks in the highest daily value since the time of your excess withdrawal on your next contract anniversary.

Target equity exposure for Model 4 is 90%; 10% required allocation to the Secure Value Account results in 80% equity exposure. This feature can offer you income protection for different types of markets. In a rising market, it may offer you the benefit of a step-up to your Income Base. In a flat, declining or extended down market, you may not receive the benefit of a step-up, but your Income Base will remain protected for guaranteed lifetime income. Polaris Variable Annuities can also provide guaranteed income for life without purchasing an optional benefit by electing a lifetime income option when annuitizing the contract. Depending on investment performance and your income needs, you may not need to rely on this optional insurance feature. Please see Key Terms and Definitions for additional details about Polaris Income Plus Daily. 3

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Polaris Income Plus Daily Lock in your highest daily value for future income BEFORE WITHDRAWALS BEGIN: You have the opportunity to lock in investment gains for future retirement income 252 times every year!4

Your Income Base can automatically step up daily

ACCUMULATION

Locks in new Income Base when the daily contract value is higher than your current Income Base

Income Base

Daily Contract Value Over 1 Year New Income Base

Step-ups can continue after withdrawals begin AFTER WITHDRAWALS BEGIN: Your Income Base can automatically increase on each contract anniversary to lock in your highest daily value for rising income.

INCOME

Locks in highest daily value on next contract anniversary Highest daily value during contract year

Highest daily value since the first withdrawal Income Base in the year withdrawals begin

Income Base is protected from market volatility in down markets

First Withdrawal Taken New Income Base 4

Contract Value Contract Anniversary

Contract Anniversary

Contract Anniversary

Based on approximate number of trading days each year for the New York Stock Exchange.

Hypothetical illustrations are not to scale and are intended solely to depict how Polaris Income Plus Daily can work. The “Before withdrawals begin” example assumes no withdrawals are taken during the period illustrated. Hypothetical contract value assumes an initial purchase payment at contract issue and no additional purchase payments. Illustrations do not reflect the actual performance of any particular investment. For more information about Polaris Variable Annuity performance, please ask your financial representative.

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Key Terms and Definitions Age: When determining the withdrawal percentages for this feature, the age at the time of first withdrawal is based on the age of the older individual if the contract is jointly owned for the Single Life option; or the age of the younger individual for the Joint Life option. Cancellation: This feature may be cancelled on the 5th contract anniversary or any contract quarter anniversary after that. Once the cancellation becomes effective, the associated fee will no longer be charged going forward. This feature cannot be re-elected following cancellation. Excess Withdrawal: Any withdrawal, or portion of a withdrawal, that exceeds the maximum annual withdrawal amount, which then reduces the Income Base proportionately by the amount in excess of the maximum annual withdrawal amount. 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. 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. We will not accept purchase payments on or after the first contract anniversary if an income protection feature is elected. If no withdrawals have been taken from the contract, the Income Base is increased daily to the Step-up Value (if any). After the first withdrawal has been taken, the Income Base is increased on the next contract anniversary looking back to the Step-up Value (if any) on each day since the first withdrawal. (This is referred to as the “first look-back.”) After the first look-back, the Income Base is increased on each contract anniversary looking back to the Step-up Value on each day since the last contract anniversary. If the contract value has been reduced to zero, the Income Base will no longer be recalculated. 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. Investment Choices: If you elect Polaris Income Plus Daily, 10% of initial and additional purchase payments will need to be allocated to the Secure Value Account, an interest-earning fixed account with a one-year term. 90% of initial and additional purchase payments may be allocated to the available investment options. Participation in quarterly automatic asset rebalancing is also required. Issue Age: Polaris Income Plus Daily is available at contract issue to investors age 45-80. Maximum issue age may be lower. Please check with your financial representative and see the prospectus for complete details. Maximum Annual Withdrawal Amount (MAWA): The maximum income you can take each year. Protected Income Payment (PIP): The amount of annual income you will receive for life if your contract value is completely depleted due to market volatility, deduction of fees and/or withdrawals taken within the feature’s parameters. Both the MAWA and PIP are calculated as a percentage of the Income Base. Income Option 1

Income Option 2

Income Option 3

Age at 1st Withdrawal

Covered Persons

MAWA

45-59

Single Life Joint Life

3.75% 3.25%

2.75%* 2.75%*

3.75% 3.25%

2.75%* 2.75%*

3.00% for life 2.75% for life

60-64

Single Life Joint Life

4.75% 4.25%

2.75%* 2.75%*

4.75% 4.25%

2.75%* 2.75%*

3.50% for life 3.25% for life

65-71

Single Life Joint Life

6.00% 5.50%

4.00% 4.00%

7.00% 6.50%

3.00% 3.00%

5.00% for life 4.50% for life

72+

Single Life Joint Life

6.50% 6.00%

4.00% 4.00%

7.50% 7.00%

3.00% 3.00%

5.25% for life 4.75% for life

PIP

MAWA

PIP

MAWA/PIP

* With Income Options 1 and 2, if withdrawals begin before age 65 and the Income Base increases to a new Step-up Value on contract anniversary on or after the 65th birthday, the protected income payment will automatically increase to 4% of the Income Base. Protection Based Pricing: The pricing structure that is used to calculate the fee after the first year. The initial fee rate (1.10% of the Income Base for Single Life option; 1.35% for the Joint Life option) 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. If the Income Base is increased, it may have the effect of increasing the dollar amount of the feature’s fee. See prospectus for details regarding minimum and maximum fees. Retirement Plans and Accounts: IRAs and 401(k)s are examples of retirement plans and accounts. If you use this contract to fund a retirement plan or account and plan on taking Required Minimum Distributions (RMDs), please see the prospectus for more information and consult with a tax advisor concerning your particular circumstances. Polaris Income Plus Daily may not be appropriate for use with contributory IRAs or other retirement plans and accounts if you plan to make ongoing contributions. Purchase payments received in the first contact 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. Step-up Value: This is a value used to determine the Income Base. It is equal to the current contract value if the contract value is higher than the current Income Base. The Step-up Value (if any) is redetermined each day. For complete details regarding Polaris Income Plus Daily, including the Latest Annuity Date, please see a prospectus.

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Polaris 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 and securities licensed financial representative or call 1-800-445-7862 to obtain a prospectus. Please read the prospectus carefully before investing. This material was prepared to support the marketing of Polaris Variable Annuities. Please keep in mind that American General Life Insurance Company, The United States Life Insurance Company in the City of New York, and their distributors and representatives may not give 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, by the insurance agency from which this annuity is purchased or any affiliates of those entities and none makes any representation or guarantees regarding the claims-paying ability of the issuing insurance company. 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, 21650 Oxnard Street, Suite 750, Woodland Hills, CA 91367-4997, 1-800-445-7862. AGL, US Life 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

Policy form numbers: AGL: AG-803 (7/13) US Life: U  S-803 (12/15)

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1-800-445-7862 aig.com/annuities