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Quality of Life…Insurance®
QoL Guarantee Plus
Presented by…
Trevor Keeble
Director of Product Training
Policies issued by American General Life Insurance Company
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
QoL Guarantee Plus
Offers GUARANTEED* death benefit protection
All you need to do to make sure coverage remains in
place is pay your premiums on time
Predictable protection: Even if interest rates change or
cost of insurance increases, you can be sure your
coverage will always be there
*Guarantees are based upon the claims-paying ability of the issuing insurance company.
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
QoL Guarantee Plus
Protection For Major Life Events
QoL Guarantee Plus helps provide guaranteed death benefit protection for:
Die too
soon



Income Replacement
Mortgage Payoff
Legacy
CustomerChoice® Lifestyle Income Rider helps provide protection
for:
Live too
long




Living longer than expected / didn’t save enough
Unexpected expenses (roof, furnace, A/C, auto repairs, etc.)
Return a portion of premium paid
And so much more!
Critical, Chronic & Terminal Illness ABRs helps provide protection
for:
Get sick
along the
way
 Health Care Costs from Critical, Chronic or Terminal Illness
 Expenses – medical and non-medical – related or unrelated to
diagnoses
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Product Features
Feature
Details
Issue Ages
0-80
No Lapse Guarantee
To Age 121 (or
specified length)
Death Benefit Option
Level only
Additional Information
To age 100 with Lifestyle
Income Rider
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Product Features
Feature
Details
Additional
Information
Guaranteed Interest Rate
2%
Compounded Annually
Minimum Face Amount
$50,000
$100,000
Standard Underwriting
Preferred Underwriting
Premium Banding
$50,000 to $99,999
$100,000 +
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Available Riders
•Accelerated Benefit Rider
•Children’s Term Life
•California
•Additional Insurance Option
•QoL® SelectChoice ABR
•All Other States
•Additional Insured
•Waiver of Specified Premium
Rider
•Maturity Extension
•Accidental Death Benefit
• CustomerChoice Lifestyle Income
Rider
Rider availability may vary by state.
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Living Benefits-Chronic, Critical, Terminal
Can accelerate all or part of death benefit
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
SelectChoiceSM Accelerated Benefit Rider Features
1
2
An illness or condition certified
within the last 12 months and
affects the insured person so that
he or she:
• Major Heart Attack
-
• Invasive Cancer
-
Is unable to perform at least
two of the six Activities of Daily
Living (ADLs) or
Requires substantial
supervision by another person
to protect the insured person
from threats to health and
safety due to severe cognitive
impairment
ADLs: Bathing, Dressing, Toileting,
Transferring, Continence, Eating
• Coronary Artery Bypass
• Stroke
• Blood Cancers: Leukemia,
Lymphoma and Multiple
Myeloma
3
An illness or physical condition
that is certified by a
physician to be reasonably
expected to result in the
insured’s death within 24
months from the date of
certification
• Major Organ Transplant
• End Stage Renal Failure
• Paralysis
• Coma
• Severe Burn
*SelectChoice not available in CA, CT, or MT.
With respect to any accelerated death benefit rider that is generally attached by the Company to a life insurance policy
automatically, you may instruct the Company not to include such rider in a policy issued to you.
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
SelectChoiceSM ABR Features
1. Flexible Accelerated Benefit:
•
No-cost Accelerated Benefits
•
Automatically added to all eligible Quality of Life…Insurance® UL and
term policies
•
Allows owner to accelerate some or all of the life insurance death
benefit in the event the insured is diagnosed with a Qualifying Event:
Critical, Chronic or Terminal illness
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
SelectChoiceSM ABR Features
2. Defined Accelerated Benefit (DAB)*:
•
Optional and may be purchased for an additional premium with
eligible Quality of Life…Insurance® UL and term policies
•
The DAB for the initial Qualifying Event, where a claim is made, is
determined by a fixed percentage between 5%-15%
•
The DAB for a subsequent Qualifying Event is calculated using a
reduced percentage: 20% of initial DAB percentage
•
Subject to underwriting approval (Up to Table D)
•
Allows the owner to accelerate a defined amount of the life
insurance death benefit in the event the insured is diagnosed with a
Qualifying Event: Critical, Chronic or Terminal illness
*Not available in CA, CT, or MT
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
How Does It Work?
 You purchases a $250,000 Quality of Life…Insurance product at age 40,
which includes the SelectChoice Accelerated Benefit Rider
 For an additional premium, you also purchase a 10% Defined Accelerated
Benefit
 Ten years later you suffer a major heart attack, but the prognosis for
recovery is excellent
 The medical costs associated with this event are substantial causing you to
consider your options. To help cover these expenses, you accelerate the
$25,000 Defined Accelerated Benefit for Critical Illness
 The remaining death benefit is $225,000 which could also be accelerated
under the Flexible Accelerated Benefit
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
How Does It Work?
 You then file a claim for another $25,000 under the Flexible Accelerated
Benefit
 AGL determines the benefit and makes an offer based on the severity of
your condition and how it will affect your life expectancy
 If you accepts this offer, the death benefit will be reduced by $25,000. You
will receive less than $25,000 because you are receiving a portion of the
death benefit today, rather than at the end of life expectancy (discounting)
 In this case, you received an offer from AGL for an amount of $11,222*. You
could elect to take all, part or none of the offer
 You decide to take the $11,222* today and now have a remaining death
benefit is $200,000
*Amount is hypothetical and actual payment will vary be individual case.
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
CustomerChoice® Lifestyle Income Rider
The next step in the evolution of Quality of Life…Insurance.
 Death
 Critical Illness
 Chronic Illness
Can turn your policy’s death benefit
 Terminal
Illness
into guaranteed
retirement income
 Longevity Risk
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
CustomerChoice® Lifestyle Income Rider
Issue Guidelines
• Issue Ages = 18 – 70
• Only available “At Issue”
• Only available on QoL Guarantee Plus
• No additional Underwriting requirements
• Available on Substandard to Table P
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Customer Choice® Lifestyle Income Rider
Issue Guidelines
Policy must be guaranteed to age 100
Policy must be paid up prior to taking benefits
Minimum Guaranteed Withdrawal Benefit =
$500/month
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Customer Choice® Lifestyle Income Rider
Eligibility Requirements
Guaranteed Withdrawal Benefit cannot begin prior to
the policy’s 15th anniversary
For full, undiscounted benefit age 85 is earliest age to
begin benefit payout
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Guaranteed Withdrawal Benefit
The standard benefit period is 120 months
(10 years), or longer
The owner may request to withdraw a lesser
amount (Could extend benefit period beyond 120 months)
Benefit payments can be stopped and restarted at any time
Benefit payments are tax free up to the cost basis. Excess
is taxable income in the year it is received
Benefit is guaranteed regardless of the Cash Surrender
Value of the policy
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Remainder Payment
120 payments of the
Guaranteed Withdrawal
Benefit amount may not equal
the Total Guaranteed Benefit
provided by the rider.
Any remaining amount after
the 120 equal Guaranteed
Withdrawal Benefit payments
will be disbursed as the 121st
payment.
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Early Withdrawal Benefits
• Benefits may begin before age 85 provided the policy
is paid up to age 100 and has been inforce at least 15
years
• The Adjusted Benefit Payment will be less than the full
Guaranteed Withdrawal Benefit
• The Death Benefit however will still be reduced by the
full “undiscounted” amount
• The Early Withdrawal factors vary by: Issue Age, Age
Benefits Begin
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Case Study
CustomerChoice® Lifestyle Income Rider
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Meet Jacob1, Age 55
– Planning for Retirement
• Has a need for $385,000 of life
insurance.
• Concerned that market volatility will
prevent him from meeting his
financial objectives.
• Goal is to maintain his standard of
living through retirement.
How can we help Jacob meet his
retirement needs?
1Illustrative
example. Not a real case.
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Recommendation
The representative offers Jacob a solution with:
• Guaranteed Universal Life Insurance to age 100
– Paid to age 85
– $7,659 annual premium ($229k total premium paid)
• Guaranteed Retirement Benefits
– Up to $3,195 of monthly Guaranteed Withdrawal
Benefit at age 85
– 120 months for the maximum Guaranteed
Withdrawal Benefit amount
How does this solution help meet Jacob’s goals?
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Age
55
Coverage Issued
$450,000
$400,000
$350,000
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$0
Age 55
Age 65
Age 85
Age 95
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Age
55
Age
85
Distributions
Begin
$450,000
$400,000
$350,000
$300,000
$250,000
$200,000
$150,000
$100,000
Monthly income
is paid and
reduces Death
Benefit
$2,500
a month
$50,000
$0
Age 55
Age 65
Age 85
Age 95
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Age
55
Age
85
Age
95
$450,000
$400,000
$350,000
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
Death Benefit is
reduced to
$85,000 by end of
the benefit period
Total Withdrawal
Benefits
$2,500
a month
Continue
or Stop benefits
$0
Age 55
Age 65
Age 85
Age 95
*Total premium paid = $229,000
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
QoL Guarantee Plus
GUL with Differentiated Living Benefits
Male, 50, Preferred Non-tobacco, Premium for $500,000 level DB, guaranteed/carried to Age 121. State of
Colorado.
Guaranteed
to Age
Annual
Premium
Chronic
Illness/LTC
Rider
Critical
Illness
Rider
North American Company
Custom Guarantee® (Gen 8)
121
$4,758
a
a
AGL
QoL Guarantee Plus
121
$4,920
a
a
Columbus Life Insurance Company
Voyager 2010 UL
120
$4,967
a
a
Prudential
PruLife® Universal Protector (2013)
120
$5,076
The Lincoln National Life Insurance Company
Lincoln LifeGuarantee® UL (2013)
120
$5,610
Pacific Life V
Versa-Flex NLG 2014
121
$6,519
Company/Product
Guaranteed
Cash
Values to
Age100
a
*Rates as of 08/20/2015. Note that Nacolah’s Custom Guarantee and Columbus Life Voyager 2010 UL max pay is to age 100 but guarantees to lifetime. PacLife
Versa-Flex 2014 is illustrated at Basic ar 50% and ARTR Coverage at 50%. Every attempt has been made to verify the accuracy of this information, but rates are
subject to change at any time. These carriers are peer group competitors.
** Riders that are paid through additional COIs and have dollar for dollar death benefit reduction at the time of claim.
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
QoL Guarantee Plus
GUL with Differentiated Living Benefits
Female, 40, Standard Non-tobacco, Premium for $500,000 level DB, guaranteed/carried to Age 121. State of
Colorado.
Guarantee
Chronic
Critical
d Cash
Illness/
Illness Rider Values to
LTC Rider
Age100
Guaranteed
to Age
Annual
Premium
North American Company
Custom Guarantee® (Gen 8)
With ABRs
121
$2,980
a
a
AGL
QoL Guarantee Plus
with ABRs
121
$3,529
a
a
Prudential
PruLife® Universal Protector (2013)
with BenefitAccess Rider**
120
$4,129
a
The Lincoln National Life Insurance Company
Lincoln LifeGuarantee® UL (2013)
With LifeEnhance Accelerated Benefits Rider**
120
$4,145
a
Pacific Life V
Versa-Flex NLG 2014
with Premier Living Benefits Rider
120
$4,392
a
Company/Product
a
*Rates as of 08/20/2015. Note that Nacolah’s Custom Guarantee max pay is to age 100 but guarantees to lifetime. PacLife Versa-Flex 2014 is illustrated at Basic ar
50% and ARTR Coverage at 50%. Every attempt has been made to verify the accuracy of this information, but rates are subject to change at any time. These
carriers are peer group competitors.
** Riders that are paid through additional COIs and have dollar for dollar death benefit reduction at the time of claim.
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
QoL Guarantee Plus
with Continued Innovation for Living Benefits (Lifestyle Income Rider)
Male, 55, Preferred Non-tobacco, Premium for $1,000,000 level DB, guaranteed/carried to Age 100. State of Colorado.
Company/Product
Pay To Age
Cumulative
Guarantee
Premiums to
to Age
Age 95
Annual
Premium
Chronic
Illness/
LTC Rider
QoL Guarantee Plus
with ABRs + Lifestyle Income Rider
85
100
$395,130
$13,171
a
Prudential
PruLife® Universal Protector (2013)
with BenefitAccess Rider**
100
100
$534,920
$13,373
a
MetLife
Secure Flex Universal Life SM
100
86
$535,480
$13,387
Pacific Life
Versa-Flex NLG 2014
with Premier Living Benefits Rider
100
100
$608,120
$15,203
a
Accordia Life
Life Assure
with Accelerated Access Rider
100
75
$631,680
$15,792
a
National Life
LSW Foundation UL*
with Accelerated Benefit Rider
100
84
$900,120
$22,503
a
Critical Guaranteed Guaranteed
Illness Cash Values Income At
Rider
to Age100
Age 85
a
a
a
*Rates as of 08/20/2015. Current Assumption UL Products illustrated at current rates: 4.50% for Accordia Life Assure, 4.7% for MetLife Secure Flex UL,
4.25% for LSW Foundation UL, ** Riders that are paid through additional COIs and have dollar for dollar death benefit reduction at the time of claim.
Every attempt has been made to verify the accuracy of this information, but rates are subject to change at any time. These carriers are peer group
competitors.
More protection for less total cost!
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
a
Disclaimer
The information presented herein is not a comprehensive analysis of the topic
presented, and the viewer should consult tax and legal advisors to understand all the
ramifications of the topics discussed.
No representation or warranty, express or implied, is made by AGL or its affiliates as
to the completeness of the information provided. All companies mentioned, their
employees, financial professionals and other representatives are not authorized to
give legal, tax or accounting advice. Applicable laws and regulations are subject to
change and individuals should consult an attorney, tax advisor or accountant. Any tax
statements in this material are not intended to suggest the avoidance of U.S. federal,
state or local tax penalties.
To ensure compliance with requirements imposed by U.S. Treasury Regulations, we
inform you that any tax advice contained in this presentation (including any
attachments) is not intended or written to be used, and cannot be used, for the
purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting,
marketing or recommending to another party any transaction or matter addressed
herein.
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Important Information
Policies issued by American General Life Insurance Company (AGL). Issuing company AGL is responsible for financial obligations of insurance products and is a
member of American International Group, Inc. (AIG). Guarantees are backed by the claims-paying ability of the issuing insurance company. AGL does not solicit
business in the state of New York. Policies issued by American General Life Insurance Company (AGL). Issuing company AGL is responsible for financial obligations of
insurance products and is a member of American International Group, Inc. (AIG). Guarantees are backed by the claims-paying ability of the issuing insurance company.
AGL does not solicit business in the state of New York. Products may not be available in all states and product features may vary by state. Please refer to your policy. For
policy forms ICC14-14579, 14579, Rider #s ICC10 AGL ABR, AGL ABR, ICC14-14012,14012 ICC14-14018, 14018, ICC14-14390, 14390, AGL 05AHC, AGL EMD-DB, ICC1414002, 14002, 14306 and state variations. © 2014 American International Group, Inc. (AIG). All rights reserved.
(1)When filing a claim for Qualifying Critical Illness, Qualifying Terminal Illness or Qualifying Chronic Illness under an Accelerated Benefit Rider, the claimant must
provide to the Company a completed claim form (with Certification attached in the case of a Qualifying Chronic Illness) which must be received at its Administrative
Center within the time frame specified in the Rider, if any.
(2) Under certain circumstances where an insured’s mortality (i.e., our expectation of the insured’s life expectancy) is not significantly changed by a Critical Illness or
Chronic Illness, the accelerated benefit may be zero.
(3) The failure to provide a required claim form and a required election form (with the requested attachments) within the periods set forth for each in a Policy, if any,
may preclude payment of a benefit.
(4) Benefits payable under an accelerated benefit rider may be taxable. Neither American General Life Insurance Company nor any agent representing it is authorized to
give legal or tax advice. Please consult a qualified legal or tax advisor regarding questions concerning the information and concepts contained in this material.
(5) Generally, we will send you an IRS Form 1099-LTC if you receive an accelerated death benefit on account of a Chronic Illness or a Terminal Illness. We will send you
an IRS Form 1099-R if you receive an accelerated death benefit on account of a Critical Illness.
The sum that will be included in Box 2 (Accelerated death benefits paid) of IRS Form 1099-LTC or in Box 1 (Gross distribution) of IRS Form 1099-R will be the actual sum
you received by check or otherwise minus any refund of premium and/or loan interest included with our benefit payment plus any unpaid but due policy premium, if
applicable, and/or pro rata amount of any loan balance.
(6) The maximum amount of life insurance death benefits that may be accelerated as to an Insured Person under all accelerated benefit riders is the lesser of the
existing amount of such death benefits or a lifetime maximum of $1,500,000.
(7) See your policy for details.
Disclosures Applicable to the Critical Illness Accelerated Benefit Rider and the Terminal Illness Accelerated Benefit Rider Only
Important: Prior to soliciting business, be certain that you are appropriately licensed and appointed with the insurer and that the product has
been approved for sale by the insurer in That state. If uncertain, contact your American General Life Companies representative for
assistance.
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
American International Group, Inc. (AIG) is a leading international insurance organization serving customers in more than 130 countries.. AIG companies serve commercial, institutional, and individual customers through
one of the most extensive worldwide property-casualty networks of any insurer. In addition, AIG companies are leading providers of life insurance and retirement services in the
United States. AIG common stock is listed on the New York Stock Exchange and the Tokyo Stock Exchange.
Additional information about AIG can be found at www.aig.com | YouTube: www.youtube.com/aig | Twitter: @AIG_LatestNews | LinkedIn: http://www.linkedin.com/company/aig
AIG is the marketing name for the worldwide property-casualty, life and retirement, and general insurance operations of American International Group, Inc. For additional information, please visit our website at
www.aig.com. All products and services are written or provided by subsidiaries or affiliates of American International Group, Inc. Products or services may not be available in all countries, and coverage is subject to actual
policy language. Non-insurance products and services may be provided by independent third parties. Certain property-casualty coverages may be provided by a surplus lines insurer. Surplus lines insurers do not generally
participate in state guaranty funds, and insureds are therefore not protected by such funds.
AGLC1109093
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION