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
Index annuities provide the opportunity for interest to be earned based partly on the performance of an index. The annuity has provisions, such as index rate caps, that may limit or reduce the interest earned during rising index performance. There may be years when no interest is earned. Only a portion of your retirement assets should be placed in an index annuity. Please note that withdrawals and/or fees will reduce the annuity’s contract value.
Index annuities are issued by American General Life Insurance Company (AGL) or by The Variable Annuity Life Insurance Company (VALIC), member companies of AIG. All guarantees are backed by the claims paying ability of the issuing insurance company, not AIG.
While diversification and asset allocation are both proven investment strategies, they cannot guarantee greater or more consistent returns over time and they cannot protect against loss. Volatility control measures can help lessen the impact of market downturns; however, they will also reduce the impact of market upturns.
AIG is a leading international insurance organization serving customers in more than 80 countries and jurisdictions. Its companies are among the nation’s top providers of property and casualty insurance, life insurance and retirement products. The underwriting risks, financial and contractual obligations and support functions associated with the annuities issued by AGL or VALIC are its responsibility, not AIG.
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 suitable or appropriate for all individuals.
Withdrawals may be subject to federal and/or state income taxes. An additional 10% federal tax may apply if you make withdrawals or surrender your annuity before age 59½. Consult your tax advisor regarding your specific situation.
This video was prepared to support the marketing of the Power Series. Please keep in mind that issuing insurance company and its 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 a retroactive effect as well. You should seek the advice of an independent tax advisor or attorney for more complete information concerning your particular circumstances and any tax statements made in this material.
The S&P 500® Index is a product of S&P Dow Jones Indices LLC (“SPDJI”), and has been licensed for use by American General Life Insurance Company and affiliates. Standard & Poor’s,® S&P,® and S&P 500® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by American General Life Insurance Company and affiliates. American General Life Insurance Company and affiliates’ products are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or their respective affiliates, and none of such parties make any representation regarding the advisability of purchasing such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500® Index.
The ML Strategic Balanced Index® provides systematic, rules-based access to the blended performance of the S&P 500® (without dividends), which serves to represent equity performance, and the Merrill Lynch 10-year U.S. Treasury Futures Total Return Index, which serves to represent fixed income performance. To help manage overall return volatility, the Index may also systematically utilize cash performance in addition to the performance of these two underlying indices.
American General Life Insurance Company’s (“AGL”) licensing relationship with Merrill Lynch, Pierce, Fenner & Smith Incorporated for use of the ML Strategic Balanced Index® (the “Index”) and for use of certain service marks includes AGL’s purchase of financial instruments for purposes of meeting its interest crediting obligations. Some portion of those instruments will, or may be, purchased from Merrill Lynch, Pierce, Fenner & Smith Incorporated or its affiliates.
Merrill Lynch, Pierce, Fenner & Smith Incorporated and its affiliates (“BofA Merrill Lynch”) indices and related information, the name “BofA Merrill Lynch”, and related trademarks, are intellectual property licensed from BofA Merrill Lynch, and may not be copied, used, or distributed without BofA Merrill Lynch’s prior written approval. The products of licensee AGL have not been passed on as to their legality or suitability, and are not regulated, issued, endorsed, sold, guaranteed, or promoted by BofA Merrill Lynch. BOFA MERRILL LYNCH MAKES NO WARRANTIES AND BEARS NO LIABILITY WITH RESPECT TO ANY INDEX, ANY RELATED INFORMATION, ITS TRADEMARKS, OR THE PRODUCT(S) (INCLUDING WITHOUT LIMITATION, ITS QUALITY, ACCURACY, SUITABILITY AND/OR COMPLETENESS).
The Index is the property of Merrill Lynch, Pierce, Fenner & Smith Incorporated, which has contracted with S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC) to calculate and maintain the Index. The Index is not sponsored by S&P Dow Jones Indices or its affiliates or its third party licensors (collectively, “S&P Dow Jones Indices”). S&P Dow Jones Indices will not be liable for any errors or omissions in calculating the Index. “Calculated by S&P Dow Jones Indices” and the related stylized mark(s) are service marks of S&P Dow Jones Indices and have been licensed for use by Merrill Lynch, Pierce, Fenner & Smith Incorporated.
Tax-qualified plans such as IRAs, 401(k)s or 403(b) plans are tax deferred regardless of whether or not they are funded with an annuity. If you use a Power Series Index Annuity to fund a tax-qualified plan, you should know that an annuity does not provide any additional tax-deferred treatment of interest beyond the treatment by the tax-qualified plan itself. You should only use an index annuity in a tax-qualified plan if you want to benefit from features other than tax deferral. If you intend to take Required Minimum Distributions (RMDs), please consult with a tax advisor concerning your particular circumstances. The Power Series may not be appropriate for use with contributory plans if you plan to make ongoing contributions. In addition, a Required Minimum Distribution under a qualified contract is a withdrawal and, as such, will prevent the application of the Minimum Income Base under the Lifetime Income Plus rider if it occurs during the first 10 contract years.
The Power Series Index Annuities® are issued by American General Life Insurance Company and Power Index Elite is issued by The Variable Annuity Life Insurance Company, 2727-A Allen Parkway, Houston, Texas 77019. Modified Single Premium Deferred Fixed Index Annuity (Single Premium Only in Oregon), Contract Numbers AG-800 (12/12), AG-801 (12/12), or V-800 (12/14). AGL does not solicit business in the state of New York. Annuities and riders may vary by state and are not available in all states.
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