|HOUSTON (August 10, 2011) - American General Life Companies (American General) announces AG Lifetime Income BuilderSM, a new living benefit rider available on selected fixed index annuity contracts and available to those age 55 and older. Structured to provide future guaranteed lifetime income, the rider features a an income base that is guaranteed to grow at no less than six percent compounded annually for up 20 years, and a guaranteed lifetime income stream guaranteed to grow at no less than two percent per year if the income base is allowed to accumulate for at least 10 years and no excess withdrawals are taken. Both of these features can help offset the erosive impact of inflation over the long term.
"We developed AG Lifetime Income Builder to meet the growing need for insured retirement income solutions in the post-financial crisis world," said Jay Drucker, vice president and annuity line business leader. "In fact, according to the recently released SunAmerica Retirement Re-Set Study, 60% of Americans age 55 and older seek guaranteed retirement income that is protected from market loss. This rider helps answer that need."
Erik Baden, senior vice president and chief marketing officer, added, "The SunAmerica study also revealed that one third of Americans age 55 and older say their financial assets have not yet recovered to pre-recession levels, and almost all Americans in this age group say it's important to protect themselves against financial uncertainties. This rider can help position them for potential asset growth while also guaranteeing a predetermined baseline of future income. That kind of certainty regardless of economic conditions can make the planning process easier."
Available in twenty nine states as of July 25, the rider is an option on the following single premium index annuities: AG VisionMaximizer, AG Horizon Index 9 and 12, AG Global Bonus, and AG VisionAdvantage 7 and 9. At contract issue, the Income Base is equal to the Annuity Value, including any applicable premium bonus. The Income Base used to generate future income is guaranteed to grow at six percent compounded annually. Called the Roll-Up Rate, it increases the Income Base until the earliest of these three events: the 20th contract anniversary, the date the client begins the Income Withdrawal Phase, or the contract anniversary on or immediately following the client's 90th birthday. Each anniversary during both the Growth and Income Withdrawal Phases, if the Annuity Value is greater than the Income Base, the Income Base is "stepped up" to equal the Annuity Value. If the client allows the Income Base to accumulate for 10 years or more, before beginning the Income Withdrawal Phase, the client's Lifetime Income Withdrawal payments will increase by an additional two percent compounded annually each year.
There is an additional cost for this rider, and the client can turn Lifetime Income Withdrawals on or off at any time, take less than the calculated amount or surrender the contract and receive the guaranteed withdrawal value.
For more information about American General's new AG Lifetime Income Builder, call 1-888-438-6933 (Monday - Friday, 7 a.m. - 6 p.m. CT). For more information about eStation, visit http://eStation.americangeneral.com. Visit http://www.retirementreset.com for more information about the SunAmerica Retirement Re-set study.
Policies issued by:
American General Life Insurance Company
2727-A Allen Parkway, Houston, Texas 77019
Policy Form Number 11760
The underwriting risks, financial and contractual obligations and support functions associated with the products issued by American General Life Insurance Company (AGL) are its responsibility. Guarantees are subject to the claims-paying ability of the issuing insurance company. Policies and riders not available in all states.
American General Life Companies, www.americangeneral.com, is the marketing name for the insurance companies and affiliates comprising the domestic life operations of American International Group, Inc., including AGL. American General Life Companies insurers offer a full line of life insurance, annuities, accident & health products and worksite benefits to serve the financial and estate planning needs of its customers throughout the United States.