AG Secure Lifetime GUL® II with AG Asset ProtectorSM

AG Secure Lifetime GUL® II with AG Asset ProtectorSM
Life insurance you don't have to die to use AG Secure Lifetime GUL® II with AG Asset ProtectorSM Live Longer. Retire Stronger. Accelerated Access Solution® Lifestyle Income Solution® Policies issued by American General Life Insurance Company, a member company of AIG

Agenda I’d like to describe how
American General Life is revolutionizing the way life insurance is bought and sold By showing how you can turn illiquid death benefits into a liquid pool of money your clients can use to protect their portfolio assets from the costs of severe illness and the risk of outliving their assets Here is what is on the agenda for today’s discussion. I’d like to describe how American General Life is revolutionizing the way life insurance is bought and sold. By showing how you can turn illiquid death benefits into a liquid pool of money your clients can use to protect their portfolio assets from the costs of severe illness and the risk of outliving their assets. So they can achieve a higher sense of financial security during their retirement. So they can achieve a higher sense of financial security during their retirement.

Outlive Retirement Assets
One of Three Things Will Likely Happen Die Too Soon Become Seriously Ill Outlive Retirement Assets During the ownership of a universal life insurance policy one of three things will likely happen to the policy owner/insured. They will die too soon, become seriously ill, or potentially outlive their retirement assets.

What the Statistics Say
Here let’s look at some statistics. If we look at a married couple there is a 50% chance that one of them will live to age 92 and there is a 10% chance that one will live to 104. Chances of survival to age X for one spouse of a couple Prepared by Ernst & Young Insurance and Actuarial Advisory Services practice. The analysis uses the Annuity 2000 mortality table with Scale G2 mortality improvements.

Financial Life Spectrum
Building Assets Protecting Assets Extending Assets Die Too Soon Get Sick Along The Way Live Too Long Here is the financial life spectrum. Most people go through three phases. They are either building assets, protecting assets or trying to extend their assets. Now with American General Life’s AG Asset Protector we can mitigate all three potential risks during each of these phases of the financial life spectrum. Whether that be dying too soon, getting sick along the way or living too long. Let’s look at the first prong of protection of the AG Asset Protector which is Life Insurance which is designed to protect an individual from dying too soon. Life Insurance Chronic Illness Longevity Protection

AG Secure Lifetime GUL II
100% ROP at Age 85 50% ROP at Policy Year 20 The first aspect of the AG Asset Protector is the AG Secure Lifetime GUL II. This is the life insurance policy that provides protection against dying too soon. Above and beyond just the life insurance protection this policy also provides some other benefits. First both the death and premium amounts are guaranteed. Which means the life insurance policy will not lapse as long as the client pays the required guaranteed premium. Additionally this policy also builds up guaranteed cash value that the client can access if needed. Built into the AG Secure Lifetime GUL II policy is a no-cost rider called the enhanced surrender value rider. This rider allows the insured to surrender their policy at the end of the 20th policy year and receive back 50% of their premiums paid. The AG Asset Protector also has a 100% return of premium option beginning at the age of 85 which I will explain in more detail a little later in the presentation. Guaranteed Cash Value Guaranteed Premiums and Death Benefits

Hypothetical information for illustrative purposes only.
50% ROP at Year 20 Returned premiums are more than 4x the guaranteed cash surrender value! Here is a snapshot of quote for the AG Secure Lifetime GUL II which shows the amount of the ROP available for this client in the 20th policy year. In this example the returned premiums are more than 4x the guaranteed cash surrender value/ Hypothetical information for illustrative purposes only.

Building Assets Protecting Assets Extending Assets Die Too Soon Get Sick Along The Way Live Too Long The next prong of protection the AG Asset Protector provides is the chronic illness rider which can protect the assets of an insured if they get sick along the way due to a chronic illness. Life Insurance Chronic Illness Longevity Protection

Benefits of Accelerated Access Solution: Chronic Illness
101(g) No LTC license necessary 2-out-of-6 ADLs; or Severe Cognitive Impairment Deemed to be Permanent Indemnity Benefit No Receipts Spend benefits on anything Let’s look at some of the benefits of the Accelerated Access Solution. Accelerated Access was filed as a rider under IRC section 101(g). That primarily means that: No LTC license is required for you to be able to sell the Accelerated Access Solution as part of an AG Secure Lifetime GUL II policy. Your Life Insurance and Accident & Health licensing is all that’s necessary from a licensing standpoint. It also means that the primary triggers for Chronic Illness benefits are either (1) inability to perform 2-out-of-6 Activities of Daily Living (ADL’s); or (2) severe cognitive impairment. Regardless of which of the two triggers applies, the benefit will only be available if the impairment is deemed to be permanent. The benefit was filed as an Indemnity benefit. That’s completely different than the alternative – the Reimbursement benefit. With Reimbursement, you must file a claim and provide copies of all invoices. Your claim is reviewed and, eventually, you receive a reimbursement in an amount the insurance company deems appropriate based on your receipts. With American General Life’s Indemnity version, you don’t need to provide an receipts or file any claims regarding your treatments. American General Life will send your benefit checks every month, regardless of whether you’ve incurred any costs at all, and regardless of what those costs were. You meet the criteria for ADLs or severe cognitive impairment, file your claim and satisfy the 90-day waiting period, and American General Life begins sending the checks. Then you have two decisions to make: your aggregate benefit and your monthly benefit. Aggregate Benefit: Your aggregate benefit must be at least $50,000, and cannot be less than half of your total Death Benefit. So, for a $100,000 death benefit, your Accelerated Access benefit must be at least $50,000. For a $500,000 policy, the Accelerated Access benefit must be at least $250,000. Your aggregate benefit can also be no greater than your death benefit, and is subject to a maximum Accelerated Access benefit of $1,500,000. So, if your death benefit is $900,000, your maximum Accelerated Access Solution benefit is $900,000. If your death benefit is $1,800,000, your maximum aggregate Accelerated Access Solution benefit is limited to $1,500,000. Flexible Benefit Base Benefit = 50% up to 100% of Death Benefit $50,000 minimum up to $1,500,000 maximum 10

Benefits of Accelerated Access Solution: Chronic Illness
Flexible Monthly Benefit IRS Per Diem capped at 2% per month IRS Per Diem capped at 4% per month IRS Per Diem with No Cap! Max. Monthly Benefit = Total Benefit ÷ 12 Monthly benefit: American General Life will always pay up to the maximum IRS monthly Per Diem benefit, but you have a choice of three different caps on the maximum monthly benefit American General Life will pay. 2% of the AAS Benefit Base. With this option, if you had an Accelerated Access Solution aggregate benefit of $500,000, your monthly maximum benefit would be the lesser of: (a) the IRS monthly Per Diem; or (b) $10,000 per month. 4% of the AAS Benefit Base. With this option, if you had an Accelerated Access Solution aggregate benefit of $500,000, your monthly maximum benefit would be the lesser of: (a) the IRS monthly Per Diem; or (b) $20,000 per month. If you don’t choose to cap your monthly benefit at 2% or 4%, and assuming the same aggregate $500,000 Accelerated Access Solution benefit, the maximum monthly benefit will be the lesser of: (a) the IRS monthly Per Diem; or (b) $500,000 divided by 12 months = $41,666 per month. So, choose your aggregate benefit, and your monthly cap, and you’ll be ready to go! IRS caps the maximum daily rate each year. The 2014 maximum is $330/day or $9,900/month. Subsequent years may be higher. 11

Supplemental Application for Accelerated Access Solution
I’m often asked how this is underwritten. . . Are there any morbidity questions or health underwriting? Well, there is a new 3 page supplemental application will be required to be completed when adding the Accelerated Access Solution to assess morbidity risk. The first pop-up shows where they make their two primary choices: their monthly cap and their aggregate benefit. In the second pop-up you can see specific medical and physical-capability questions they must answer. Point out section 2, A and B. Cover a few questions in section 3 just to give an example of the types of questions. 12

Building Assets Protecting Assets Extending Assets Die Too Soon Get Sick Along The Way Live Too Long The third and final prong of protection the AG Asset Protector provides is protection against living too long and potentially running out of money during retirement and not being able to extend ones assets as long as necessary. This is achieved by utilizing the Lifestyle Income Solution rider which provides a type of longevity protection. Life Insurance Chronic Illness Longevity Protection

The Case for Lifestyle Income Solution: Longevity Insurance
The positive aspects of living longer come with some financial concerns 48% of Americans age 45–70 have no financial plans in place to protect themselves against outliving their assets and the rising cost of health care should they live longer than expected.1 In fact, retirees in America are so afraid of running out of money that a recent survey said that 61% of them fear running out of money more they fear dying! But, more interestingly, in spite of the intense fear of running out of money, 48% of Americans have done NOTHING to protect themselves against this contingency. Today, you have an opportunity to change that. 1 State of the Insured Retirement Industry: 2012 Recap and a 2013 Outlook, Insured Retirement Institute.

Think about what may contribute to
the possibility of outliving your retirement income. Do any of these issues concern your clients? Debt Social Security Uncertainty Historically Low Interest Rates Health Care Expenses Stock Market Corrections Didn’t Save Enough Rising Income Tax Rates Political Uncertainty As you ponder the financial concerns of retirement with your clients, surface the multitude of issues that can disrupt – or even destroy – their ability to have their assets last as long as they do. Here is just a small sampling of the financial concerns that weigh heavy on the minds of your clients as they approach retirement. Unfortunately, most clients struggle enough just to save adequate money for retirement’s basic needs: “food, shelter and clothing.” Many times they go into retirement attempting to ignore these issues, hoping they don’t actually happen. If any of them do – especially if more than one happen – their retirement resources are suddenly at serious risk.

Think about what may contribute to
the possibility of outliving your retirement income. Do any of these issues concern you? Debt Social Security Uncertainty Historically Low Interest Rates Health Care Expenses Stock Market Corrections Didn’t Save Enough Rising Income Tax Rates Political Uncertainty This slide is identical to the prior slide, but reveals information that is covered by animations on the prior slide. As you ponder the financial concerns of retirement with your clients, surface the multitude of issues that can disrupt – or even destroy – their ability to have their assets last as long as they do. Here is just a small sampling of the financial concerns that weigh heavy on the minds of your clients as they approach retirement. Unfortunately, most clients struggle enough just to save adequate money for retirement’s basic needs: “food, shelter and clothing.” Many times they go into retirement attempting to ignore these issues, hoping they don’t actually happen. If any of them do – especially if more than one happen – their retirement resources are suddenly at serious risk.

Lifestyle Income Solution: Longevity Insurance
Accelerate up to 10% of DB per year Primary requirement: Live to age 85 Tax-free up to basis; ordinary income after The Lifestyle Income Solution: provides a type of longevity insurance. With this rider the insured/policyowner has the ability to accelerate up to 10% of their death benefit per year. The primary requirements is that they live to age 85. It is a tax free return of their cost basis “100% ROP” and the rest is taxed as ordinary income. Choosing to exercise rights under the Lifestyle Income Solution can impact cash available under the Accelerated Access Solution. Please speak with your American General Life Insurance Company representative for more information.

100% ROP at Age 85 2.6x more! Premiums Returned! Here an example of the output on the quote for the Lifestyle Income Solution. At the age of 85 this client starts to accelerate their death benefit at a rate of roughly 10% per year. The total premium paid into this policy totals $438,781 which is 2.6x more than the guaranteed cash value at the age of 85. By age 90 the client has received back all of their premium by utilizing the Lifestyle Income Solution. Hypothetical information for illustrative purposes only.

American General Life is…
Revolutionizing the way YOU sell life insurance! “Telling The Story” The more you learn about these riders, and the ability to combine them into a package, the more you’ll see that you can revolutionize the way you sell life insurance. Let’s look at some story-telling ideas you can use to help convey your message – and the importance – of purchasing a complete package rather than an ordinary life insurance policy. 19

Risk Protection Spectrum
Age 65 – 70 Income Replacement Reduced Social Security Income $ $ Mortgage Payoff Health Care Costs Kids to College This graphic depicts some of the risks Americans face before and during retirement. Earlier in life there are 3 major risks that individuals and families face, but each risk tends to get smaller over time. Those 3 major risks are: Paying off the mortgage, Income replacement due to the death of a primary breadwinner and The cost of college savings for children. As we get older and these risks decline, a few other risks emerge, and they tend to become more daunting over time: The multitude of financial risks….the possibility of living too long, interest rates, stock market, political instability, rising tax rates, house repairs, etc., The rising cost of health care, and The potential reduction of social security income due to the death of a spouse Let’s talk about these in a little more detail and provide an all-encompassing solution. Financial Risks 20-40 Years Prior to Retirement Retirement Years 3 big risks get smaller over time. 3 other big risks get larger over time. 20

The Illustration Says It All!
Hypothetical information for illustrative purposes only.

Change the way you sell life insurance: Term Life Insurance Sales
Turn your Term Life Insurance Sales Into Permanent UL Sales! Now you can see that American General Life’s Secure Lifetime GUL II, combined with Accelerated Access Solution and Lifestyle Income Solution can change the way you sell life insurance by turning your Term life insurance sales into Permanent UL sales. How? You can’t purchase this package of benefits on a Term life insurance policy. If your client wants their assets to be protected from the diverse risks they face – both before and after retirement – they need to step-up to Universal Life. 22

Clients are Protected Whether They: Outlive Retirement Assets
Sell The Value: Clients are Protected Whether They: Die Too Soon Become Seriously Ill Outlive Retirement Assets Remember to sell the value. As it’s often said: price only matters in the absence of value. Demonstrate to your clients the impact of this value – how they can protect their assets, and their loved ones – by spending a little more to get such high-quality financial security. Remember, money is the source of some of retirees greatest fears. Surveys indicate that they are more afraid of running out of money than they are of dying. You are now equipped and empowered to provide asset protection. If financial security is the key to sleeping restfully, then your clients will sleep better because of the package of financial security you have provided. 23

AG Asset Protector: Is It Really Worth The Extra Premium?

“Ordinary” GUL vs. AG Asset Protector Male, 55, Standard-Plus $1,000,000 DB Hypothetical information for illustrative purposes only.

GUL vs. AG Asset Protector
GUL to A100 GUL to A85 AG Asset Protector To A85 Premium $13,751 $14,478 $18,073 Savings vs AG Asset Protector $4,322 $3,595 A85 $290,000* $240,000* $1,000,000 Pre-Tax Equiv. Return = $1M 14.04% 15.18% 10-Year After-Tax Distributions $35,485* $29,370* $100,000 So you ask: “Is it worth it to spend the extra premium?” If you simply chose to purchase a GUL policy, guaranteed to age 100, your annual premium will be $13,751. For only $727 more per year, you could spend $14,478 per year and have your policy paid-up at age 85. Over that 30-year period to age 85 you’d pay an extra total of $21,810 of premium, and you’d break-even and be ahead when you spend your age 87 premium. Each year after that you’d save $13,751 per year. If longevity is on your side, this is definitely worth considering. If you wanted to step-up to the comprehensive coverage of AG Asset Protector, you’d increase your premiums to $18,073. And you’re asking yourself if it’s worth it to spend the extra premium. Well, if you chose to purchase a GUL with premiums to age 100 instead of AG Asset Protector, you’d save $4,322 per year. What are you going to do with that savings? If you want to compete with AG Asset Protector, you have to flip a coin and decide which you want to protect against: Do you want to spend it on LTC premiums? If you do, and if you reach age 85 and you’re still in good health, your biggest concern may now be your portfolio’s ability to provide your income. But if you spent all of your savings on LTC premiums, you have nothing saved to support you in good health. Do you want to invest your savings? If so, your savings becomes your only resource for chronic illnesses AND supporting your portfolio if you live a long time. Let’s assume you chose to invest the savings. If you invested $4,322 per year for 30 years at a 6% growth rate in a 20% tax rate, at age 85 it would be worth only $290,000. If you wanted it to grow to be worth $1,000,000 you would have needed a pre-tax compound-annual-return averaging more than 14%. Good luck with that. What if you chose to purchase the GUL with premiums that pay-up the policy at age 85? Now your savings is only $3,595 per year. Invested at 6% in a 20% tax rate would only grow to $240,000 at age 85. If you wanted it to grow to be worth $1,000,000 you would have needed a pre-tax compound-annual-return averaging more than 15%. Good luck with that, too. If you decided that you wanted your savings to provide you with additional cash flow at age 85, what could you expect? Again, based on our growth assumptions of 6% in a 20% tax rate: If you bought the GUL with premiums to Age 100, your $290,000 savings would generate only $35,485 after-tax cash flow per year. If you bought the GUL with premiums to Age 85, your $240,000 savings would generate only $29,370 per year. AG Asset Protector would provide you with $100,000 per year, and it would be completely tax-free during the first 5 ½ years. Hopefully you can see from this analysis that it can make a lot of sense to purchase AG Asset Protector rather than trying to save the premiums and hope to solve your problems some other way. Illustration Assumptions: GUL to A100: Male 55 Standard Plus $1 million DB Premiums to age 100 Guaranteed to age 100 GUL to A85: Premiums to age 85 AG Asset Protector: * 6% growth, 20% tax rate, 4.8% net return; results rounded down for simplicity. Hypothetical information for illustrative purposes only. 26

GUL to A100 GUL to A85 AG Asset Protector To A85 Premium $13,751 $14,478 $18,073 Savings vs AG Asset Protector $4,322 $3,595 A85 $290,000* $240,000* $1,000,000 Pre-Tax Equiv. Return = $1M 14.04% 15.18% 10-Year After-Tax Distributions $35,485* $29,370* $100,000 This slide is identical to the prior slide but shows the chart that is covered in the prior slide due to Slide Show animations. So you ask: “Is it worth it to spend the extra premium?” If you simply chose to purchase a GUL policy, guaranteed to age 100, your annual premium will be $13,751. For only $727 more per year, you could spend $14,478 per year and have your policy paid-up at age 85. Over that 30-year period to age 85 you’d pay an extra total of $21,810 of premium, and you’d break-even and be ahead when you spend your age 87 premium. Each year after that you’d save $13,751 per year. If longevity is on your side, this is definitely worth considering. If you wanted to step-up to the comprehensive coverage of AG Asset Protector, you’d increase your premiums to $18,073. And you’re asking yourself if it’s worth it to spend the extra premium. Well, if you chose to purchase a GUL with premiums to age 100 instead of AG Asset Protector, you’d save $4,322 per year. What are you going to do with that savings? If you want to compete with AG Asset Protector, you have to flip a coin and decide which you want to protect against: Do you want to spend it on LTC premiums? If you do, and if you reach age 85 and you’re still in good health, your biggest concern may now be your portfolio’s ability to provide your income. But if you spent all of your savings on LTC premiums, you have nothing saved to support you in good health. Do you want to invest your savings? If so, your savings becomes your only resource for chronic illnesses AND supporting your portfolio if you live a long time. Let’s assume you chose to invest the savings. If you invested $4,322 per year for 30 years at a 6% growth rate in a 20% tax rate, at age 85 it would be worth only $290,000. If you wanted it to grow to be worth $1,000,000 you would have needed a pre-tax compound-annual-return averaging more than 14%. Good luck with that. What if you chose to purchase the GUL with premiums that pay-up the policy at age 85? Now your savings is only $3,595 per year. Invested at 6% in a 20% tax rate would only grow to $240,000 at age 85. If you wanted it to grow to be worth $1,000,000 you would have needed a pre-tax compound-annual-return averaging more than 15%. Good luck with that, too. If you decided that you wanted your savings to provide you with additional cash flow at age 85, what could you expect? Again, based on our growth assumptions of 6% in a 20% tax rate: If you bought the GUL with premiums to Age 100, your $290,000 savings would generate only $35,485 after-tax cash flow per year. If you bought the GUL with premiums to Age 85, your $240,000 savings would generate only $29,370 per year. AG Asset Protector would provide you with $100,000 per year, and it would be completely tax-free during the first 5 ½ years. Hopefully you can see from this analysis that it can make a lot of sense to purchase AG Asset Protector rather than trying to save the premiums and hope to solve your problems some other way. Illustration Assumptions: GUL to A100: Male 55 Standard Plus $1 million DB Premiums to age 100 Guaranteed to age 100 GUL to A85: Premiums to age 85 AG Asset Protector: * 6% growth, 20% tax rate, 4.8% net return; results rounded down for simplicity. Hypothetical information for illustrative purposes only. 27

GUL to A100 AG Asset Protector To A85 Premium $13,751 $18,073 Savings vs AG Asset Protector $4,322 A85 $290,000* $1,000,000 Pre-Tax Equiv. Return = $1M 14.04% 10-Year After-Tax Distributions $35,485* $100,000 So you ask: “Is it worth it to spend the extra premium?” If you simply chose to purchase a GUL policy, guaranteed to age 100, your annual premium will be $13,751. For only $727 more per year, you could spend $14,478 per year and have your policy paid-up at age 85. Over that 30-year period to age 85 you’d pay an extra total of $21,810 of premium, and you’d break-even and be ahead when you spend your age 87 premium. Each year after that you’d save $13,751 per year. If longevity is on your side, this is definitely worth considering. If you wanted to step-up to the comprehensive coverage of AG Asset Protector, you’d increase your premiums to $18,073. And you’re asking yourself if it’s worth it to spend the extra premium. Well, if you chose to purchase a GUL with premiums to age 100 instead of AG Asset Protector, you’d save $4,322 per year. What are you going to do with that savings? If you want to compete with AG Asset Protector, you have to flip a coin and decide which you want to protect against: Do you want to spend it on LTC premiums? If you do, and if you reach age 85 and you’re still in good health, your biggest concern may now be your portfolio’s ability to provide your income. But if you spent all of your savings on LTC premiums, you have nothing saved to support you in good health. Do you want to invest your savings? If so, your savings becomes your only resource for chronic illnesses AND supporting your portfolio if you live a long time. Let’s assume you chose to invest the savings. If you invested $4,322 per year for 30 years at a 6% growth rate in a 20% tax rate, at age 85 it would be worth only $290,000. If you wanted it to grow to be worth $1,000,000 you would have needed a pre-tax compound-annual-return averaging more than 14%. Good luck with that. What if you chose to purchase the GUL with premiums that pay-up the policy at age 85? Now your savings is only $3,595 per year. Invested at 6% in a 20% tax rate would only grow to $240,000 at age 85. If you wanted it to grow to be worth $1,000,000 you would have needed a pre-tax compound-annual-return averaging more than 15%. Good luck with that, too. If you decided that you wanted your savings to provide you with additional cash flow at age 85, what could you expect? Again, based on our growth assumptions of 6% in a 20% tax rate: If you bought the GUL with premiums to Age 100, your $290,000 savings would generate only $35,485 after-tax cash flow per year. If you bought the GUL with premiums to Age 85, your $240,000 savings would generate only $29,370 per year. AG Asset Protector would provide you with $100,000 per year, and it would be completely tax-free during the first 5 ½ years. Hopefully you can see from this analysis that it can make a lot of sense to purchase AG Asset Protector rather than trying to save the premiums and hope to solve your problems some other way. Illustration Assumptions: GUL to A100: Male 55 Standard Plus $1 million DB Premiums to age 100 Guaranteed to age 100 GUL to A85: Premiums to age 85 AG Asset Protector: * 6% growth, 20% tax rate, 4.8% net return; results rounded down for simplicity. Hypothetical information for illustrative purposes only. 28

GUL to A100 AG Asset Protector To A85 Premium $13,751 $18,073 Savings vs AG Asset Protector $4,322 A85 $290,000* $1,000,000 Pre-Tax Equiv. Return = $1M 14.04% 10-Year After-Tax Distributions $35,485* $100,000 This slide is identical to the prior slide but shows the chart that is covered in the prior slide due to Slide Show animations. So you ask: “Is it worth it to spend the extra premium?” If you simply chose to purchase a GUL policy, guaranteed to age 100, your annual premium will be $13,751. For only $727 more per year, you could spend $14,478 per year and have your policy paid-up at age 85. Over that 30-year period to age 85 you’d pay an extra total of $21,810 of premium, and you’d break-even and be ahead when you spend your age 87 premium. Each year after that you’d save $13,751 per year. If longevity is on your side, this is definitely worth considering. If you wanted to step-up to the comprehensive coverage of AG Asset Protector, you’d increase your premiums to $18,073. And you’re asking yourself if it’s worth it to spend the extra premium. Well, if you chose to purchase a GUL with premiums to age 100 instead of AG Asset Protector, you’d save $4,322 per year. What are you going to do with that savings? If you want to compete with AG Asset Protector, you have to flip a coin and decide which you want to protect against: Do you want to spend it on LTC premiums? If you do, and if you reach age 85 and you’re still in good health, your biggest concern may now be your portfolio’s ability to provide your income. But if you spent all of your savings on LTC premiums, you have nothing saved to support you in good health. Do you want to invest your savings? If so, your savings becomes your only resource for chronic illnesses AND supporting your portfolio if you live a long time. Let’s assume you chose to invest the savings. If you invested $4,322 per year for 30 years at a 6% growth rate in a 20% tax rate, at age 85 it would be worth only $290,000. If you wanted it to grow to be worth $1,000,000 you would have needed a pre-tax compound-annual-return averaging more than 14%. Good luck with that. What if you chose to purchase the GUL with premiums that pay-up the policy at age 85? Now your savings is only $3,595 per year. Invested at 6% in a 20% tax rate would only grow to $240,000 at age 85. If you wanted it to grow to be worth $1,000,000 you would have needed a pre-tax compound-annual-return averaging more than 15%. Good luck with that, too. If you decided that you wanted your savings to provide you with additional cash flow at age 85, what could you expect? Again, based on our growth assumptions of 6% in a 20% tax rate: If you bought the GUL with premiums to Age 100, your $290,000 savings would generate only $35,485 after-tax cash flow per year. If you bought the GUL with premiums to Age 85, your $240,000 savings would generate only $29,370 per year. AG Asset Protector would provide you with $100,000 per year, and it would be completely tax-free during the first 5 ½ years. Hopefully you can see from this analysis that it can make a lot of sense to purchase AG Asset Protector rather than trying to save the premiums and hope to solve your problems some other way. Illustration Assumptions: GUL to A100: Male 55 Standard Plus $1 million DB Premiums to age 100 Guaranteed to age 100 GUL to A85: Premiums to age 85 AG Asset Protector: * 6% growth, 20% tax rate, 4.8% net return; results rounded down for simplicity. Hypothetical information for illustrative purposes only. 29

Cumulative Premium Comparison
GUL: A100 Here we show the cumulative premiums if you purchased the stripped-down GUL policy with premiums to age 100, guaranteed to age 100 (using Secure Lifetime GUL II). From age 55 to age 100 you’ll spend over $600,000 in cumulative premiums. Hypothetical information for illustrative purposes only. 30

GUL: A100 GUL: A85 This takes it one step further and shows the premium for “pay to age 85, guaranteed to age 100” for Secure Lifetime GUL II with no additional riders. You pay slightly more in cumulative premiums by the time you reach age 85, but by age 86 you’ve reached break-even, and cumulative premiums are less in every year after that. Hypothetical information for illustrative purposes only. 31

GUL: A100 AG Asset Protector Now let’s look at the AG Asset Protector premiums. To get the Secure Lifetime GUL II with AAS and LIS, guaranteed to age 100 with premiums to age 85, you can see that by the time you reach age 85 your cumulative premiums are a bit more. However, at age 85 let’s assume you accelerate your death benefit for a full return of premiums. By age 91 your cumulative premium cost is now ZERO, and you still have a residual death benefit of $450,000 guaranteed to age 100 with no additional premiums required. And, if you want the remaining $450,000 of death benefit before you die, you can certainly continue the withdrawals. Compared to the other two funding alternatives, if you live beyond age 100 your cumulative premiums are about $430,000 less than the stripped-out, pay-to-age-85 scenario, and over $600,000 less than the pay-to-age-100 scenario. If you die after age 100 with either stripped-down version, you have no death benefit left. You’ve paid the premiums, and have gotten nothing back. With AGAP, your cumulative premiums are ZERO by age 91, and you can get all of your death benefit back (nearly twice your total premiums) if you choose to withdraw the rest of the death benefit. Residual Asset Protector DB: Approx. $450,000 Hypothetical information for illustrative purposes only. 32

GUL: A100 GUL: A85 AG Asset Protector Now let’s look at the AG Asset Protector premiums. To get the Secure Lifetime GUL II with AAS and LIS, guaranteed to age 100 with premiums to age 85, you can see that by the time you reach age 85 your cumulative premiums are a bit more. However, at age 85 let’s assume you accelerate your death benefit for a full return of premiums. By age 91 your cumulative premium cost is now ZERO, and you still have a residual death benefit of $450,000 guaranteed to age 100 with no additional premiums required. And, if you want the remaining $450,000 of death benefit before you die, you can certainly continue the withdrawals. Compared to the other two funding alternatives, if you live beyond age 100 your cumulative premiums are about $430,000 less than the stripped-out, pay-to-age-85 scenario, and over $600,000 less than the pay-to-age-100 scenario. If you die after age 100 with either stripped-down version, you have no death benefit left. You’ve paid the premiums, and have gotten nothing back. With AGAP, your cumulative premiums are ZERO by age 91, and you can get all of your death benefit back (nearly twice your total premiums) if you choose to withdraw the rest of the death benefit. Residual Asset Protector DB: Approx. $450,000 Hypothetical information for illustrative purposes only. 33

Invested Premium Savings – Premiums to A100
Even at age 100 you’d be over $300,000 short Need extra cash at age 85? $290,000* or $1,000,000? Need extra cash at age 85? $290,000* or $1,000,000? Chronic Illness at age 80? About $210,000* Chronic Illness at age 75? Less than $150,000 This graph represents the after-tax investment value of the “saved premiums” resulting from purchasing the less-expensive of the two alternative premiums (premiums to age 100 for stripped-down GUL vs. AG Asset Protector paid to age 85), and investing the savings to age 85 at a 6% growth rate after applying 20% tax rate, resulting in a 4.8% net rate of return. If you encountered a chronic illness at age 75, would you rather have $150,000 (non-guaranteed) or access to $1,000,000? If you incur a chronic illness at age 80, would you rather have access to $210,000 (non-guaranteed) or $1,000,000? At age 85, if your investments are beginning to dwindle, do you want $290,000 (non-guaranteed) or access to $1,000,000? Even if you continue saving until age 100, you’re still over $300,000 short of the liquidity you can access from AG Asset Protector. * 6% growth, 20% tax rate, 4.8% net return; results rounded down for simplicity. Hypothetical information for illustrative purposes only. 34

Invested Premium Savings – Premiums to A100
If you accelerate your entire AG Asset Protector DB starting at age 85, and invest it at 6% in a 20% tax rate, at age 100 it would be worth almost $1,600,000! Assumes AG Asset Protector distributions in excess of basis are taxed as ordinary income. Projected value = $1,594,075 This slide is identical to the prior slide, but with a different text box. Some will suggest that “If I died at age 99, I would get the $600,000 PLUS the $1,000,000 death benefit, for a total of around $1.6 million, right?” Well, as with all life insurance purchase decisions, if you can tell me when you’re going to die, I can tell you the best policy to buy! However, consider this: If, at age 85, you accelerate 100% of your $1,000,000 death benefit, and pay taxes on the entire amount of the death benefit in excess of the cost basis (premiums paid) at the 20% tax rate, and continued to reinvest the accelerated death benefit at 6% in a 20% tax rate, by the time you reached age 100 your after-tax investment value would be approximately $1.6 million. . . Essentially identical to what you would have with the stripped-down GUL plus invested premium savings. * 6% growth, 20% tax rate, 4.8% net return; results rounded down for simplicity. Hypothetical information for illustrative purposes only. 35

Summary: The level of liquidity created by the additional AG Asset Protector premium can’t be created any other way. If you’ve made the decision to buy permanent UL, about the only reason you wouldn’t buy AG Asset Protector is because you simply can’t afford it. If you can afford it, what else can you do with the money to generate this kind of liquidity and value? Read Slide 36

They’ll never want to own life insurance any other way!
Summary: When clients – especially premium payers – realize that they can spend their entire Death Benefit while they’re still alive. . . They’ll never want to own life insurance any other way! AG Asset Protector provides an unmatched level of financial security, especially during retirement, whether you: Read Slide Die Too Soon Become Seriously Ill Outlive Retirement Assets 37

AG Asset Protector: It Really IS Worth It!
Read Slide

Become a part of the next generation of life insurance!
American General Life is revolutionizing why people buy life insurance, and how it’s sold. Become a part of the next generation of life insurance! Read Slide

Bring On Tomorrow! Read Slide

Questions? For additional information, please contact your American General Life Companies representative or visit our producer web site at National Sales Desk can be reached at Or visit RetireStronger.com Does anyone have any questions about anything we’ve covered tonight?

Important Information
Policies issued by: American General Life Insurance Company (AGL), Policy Form Number 13460, ICC , Rider Form Number 13972, 13600, ICC Issuing company AGL is responsible for financial obligations of insurance products and is a member of American International Group, Inc. (AIG). AGL does not solicit business in the state of New York. Policies and riders not available in all states. These product specifications are not intended to be all-inclusive of product information. State variations may apply. Please refer to the policy for complete details. There may be a charge for each rider selected. See the rider for details regarding the benefit descriptions, limitations and exclusions. Guarantees are backed by the claims-paying ability of the issuing insurance company. AGLC107915 ©2014. All rights reserved. Here are some important notes about products and riders we’ve discussed, as well as information about AIG. At AIG we hope to continue to provide you with the products, the people and the services that have become the hallmark of AIG. Bring on tomorrow!

AG Secure Lifetime GUL® II with AG Asset ProtectorSM
Life insurance you don't have to die to use AG Secure Lifetime GUL® II with AG Asset ProtectorSM Live Longer. Retire Stronger. Accelerated Access Solution® Lifestyle Income Solution® Because of you, your clients have the opportunity to live longer and retire stronger using the complete solution comprised of: AG Secure Lifetime GUL II + Accelerated Access Solution + Lifestyle Income Solution. Now you can make a difference in peoples’ lives. Policies issued by American General Life Insurance Company, a member company of AIG

AG Secure Lifetime GUL® II with AG Asset ProtectorSM

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