1 Lifetime income is available through annuitization for no additional cost.
Important information on CDs, Treasuries and index annuities
CDs, Treasury bills and bonds have different objectives, risk tolerance levels and time horizons than index annuities. For example, CDs offer a fixed rate of return and FDIC insurance backed by the full faith and credit of the U.S. government. Earnings from a CD are subject to ordinary income tax. U.S. government bonds and Treasury bills are guaranteed by the U.S. government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value. Interest from Treasury bills and U.S. government bonds is exempt from state and local income taxes, but may be subject to federal income tax. Earnings from index annuities are not taxed until withdrawn. Clients should consult with their financial professional or agent regarding these financial products and their individual circumstances.
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 appropriate for all individuals.
Withdrawals may be subject to federal and/or state income taxes. An additional 10% federal tax may apply if clients make withdrawals or surrender their annuity before age 59½. Clients should consult their tax advisor regarding their specific situation.
Lifetime Income Max is one of two guaranteed living benefit riders available in select Power Series Index Annuities for an annual fee of 1.0% of the Income Base. Only one rider may be elected per contract and cannot be changed after election. The Income Base is initially equal to the first eligible premium. The Income Base is adjusted for withdrawals (prior to activating the lifetime income benefit) and excess withdrawals (after activation and the first lifetime withdrawal) and is increased each time an eligible premium is made. Eligible premiums are all premiums made in the first 30 days of the contract. On each contract anniversary, the Income Base is set to equal the greater of 1) the contract value; or 2) the Income Base increased by any available income credit.
Guaranteed lifetime withdrawals are a percentage of the Income Base. This percentage varies from 2.90% to 5.75% based on the number of individuals covered under Lifetime Income Max and their age at the time of activation and first lifetime withdrawal.
All contract and 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.
The Power Series of Index Annuities are issued by American General Life Insurance Company (AGL), Houston, Texas or The Variable Annuity Life Insurance Company (VALIC), Houston, Texas. AGL and VALIC are member companies of American International Group, Inc. (AIG). AGL and VALIC are member companies of American International Group, Inc. (AIG). The underwriting risks, financial and contractual obligations and support functions associated with the annuities issued by AGL or VALIC are its responsibility. Guarantees are backed by the claims-paying ability of the issuing insurance company. AGL does not issue products in the state of New York. Annuities and riders may vary by state and are not available in all states.
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