AIG American General Introduces Next Generation of Index Interest Universal Life Products

HOUSTON--(BUSINESS WIRE)--Building on the success of its popular AIG Elite Global IUL^® index universal life product, AIG American General announced today the introduction of AIG Elite Global Plus^SM and AIG Elite Global Survivor^SM, each underwritten by American General Life Insurance Company (AGL) and The United States Life Insurance Company in the City of New York (USL), subsidiaries of American International Group, Inc. (AIG). With these enhanced offerings, consumers can now choose a single life policy or a survivor policy, creating more options to meet their specific needs and situation.

“When AIG Elite Global IUL was introduced in 2006, it was unmatched in the life insurance industry,” said Rod Rishel, vice president and universal life business leader for AIG American General. “The Plus and Survivor versions of this groundbreaking concept will help us maintain our competitive edge in the index universal life marketplace by offering the additional features our customers desire.”

Along with the popular global indexing feature, these two new products offer increased allocation options, greater case design flexibility, monthly index options, a no-lapse guarantee of 30 years or to age 90, and strong look-back illustrated rates.

An Elite Product

AIG Elite Global Plus and AIG Elite Global Survivor each provide death benefit protection, as well as the opportunity for cash value accumulation through index interest crediting based in part on the performance of three external global financial indices. Index interest is credited automatically and the two best-performing indices are overweighted. The value of each index is compared with the value at the beginning of that period. Index interest, if any, is calculated using 75 percent of the return of the best performing index after adjustment for the participation rate, plus 25 percent of the return of the second-best performing index after adjustment for participation rate. The third-best performing index over the period is not used in calculating the amount of index interest to be credited.

Increased Flexibility and Choice

New enhancements allow for policy owners to choose one of three allocation options, including a five-year index account, one-year index account or a declared interest account (five-year option not available on the USL products.) Policy owners can choose monthly index accounts to allow for premium payment flexibility. In addition, policy owners have the choice of purchasing a single life policy or a survivor policy which will create options for optimal funding strategies.

More Guarantees

AIG Elite Global Plus and AIG Elite Global Survivor also have additional guarantees for the policy owner. Regardless of the performance of the three indices, the policy’s cash surrender value will never be less than premium accumulated at 3 percent interest over the life of the policy (after loans, charges and withdrawals are deducted from premiums paid). A death benefit guarantee is automatically included at no additional charge; coverage is guaranteed not to lapse for 30 years or to age 90, if earlier. The company also offers a one-year monthly guarantee premium that allows the policy to be put in force while arranging premium financing or a 1035 exchange.

For more information about AIG Elite Global Plus and AIG Elite Global Survivor, visit www.aigag.com/EliteGlobal.

Policies issued by American General Life Insurance Company and The United States Life Insurance Company in the City of New York. AIG Elite Global Plus Policy Form Numbers 08444 and 08444N, AIG Elite Global Survivor Policy Form Numbers 08414 and 08414N.

Subsidiaries of American International Group, Inc. (AIG)

The underwriting risks, financial and contractual obligations, and support functions associated with the products issued by American General Life Insurance Company and The United States Life Insurance Company in the City of New York are each insurer's responsibility. AIG does not underwrite any insurance policy referenced herein. Guarantees are subject to the claims-paying ability of the issuing insurance company. USL is authorized to conduct insurance business in New York. Policies and riders are not available in all states.

About AIG American General

AIG American General, www.aigag.com, is the marketing name for the insurance companies and affiliates comprising the domestic life operations of American International Group, Inc., including American General Life Insurance Company and The United States Life Insurance Company in the City of New York. AIG American General-branded companies offer a broad spectrum of fixed and variable life insurance, annuities and accident and health products to serve the financial and estate planning needs of its customers throughout the United States.

About American International Group, Inc.

American International Group, Inc. (AIG), a world leader in insurance and financial services, is the leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG's common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Ireland and Tokyo.