How Does IUL Work Policy Loans Policies issued

How Does IUL Work? Policy Loans Policies issued by American General Life Insurance Company (AGL), The United States Life Insurance Company in the City of New York (US Life) FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC

Benefits of policy loans Tax-free income* Potential for positive interest earnings on loaned money Fast access to cash when needed No repayment plan required *Assuming policy is not a MEC and does not lapse FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC 2

Policy loan types Loan Type Details Interest Credited Interest Charged STANDARD § Available in any policy year, as long as there is positive cash surrender value § Fixed § Non-participating § 2% interest § Fixed § Known in advance § 3% rate PREFERRED § Available in years 11+ § Limited to 10% of the accumulation vale at the beginning of the policy year § Fixed § Non-participating § 2% interest § Fixed § Known in advance § 2% rate PARTICIPATING § Available in any policy year, as long as there is positive cash surrender value § Index Interest § Participating § Declared § 5% rate (can be changed after policy issue) 3 FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC

How it works PREFERRED LOAN Index Interest Account Starting Cash Value $200, 000 4 FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC

How it works PREFERRED LOAN Index Interest Account $20, 000 Loan amount is removed from cash value $180, 000 Remaining Cash Value 5 FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC

How it works PREFERRED LOAN Index Interest Account Loan amount is removed from cash value LOAN $20, 000 Loan $180, 000 Remaining Cash Value 6 FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC

How it works PREFERRED LOAN Index Interest Account $180, 000 Remaining Cash Value Loan amount is removed from cash value 2% Credited - 2% Charged LOAN $20, 000 Loan = 0% Net Cost 7 FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC

How it works PARTICIPATING LOAN Index Interest Account $200, 000 Cash Value 8 FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC

How it works PARTICIPATING LOAN Index Interest Account $20, 000 Loan amount still in account – full cash value remains $200, 000 Cash Value 9 FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC

How it works PARTICIPATING LOAN Index Interest Account Loan amount still in account – full cash value remains $20, 000 Loan $200, 000 Cash Value Index Interest Credited - Fixed Charge 5% = Net Cost Positive or Negative 10 FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC

Participating loan examples A B C Hypothetical Index Interest Credited Current Loan Interest Charged A – B = Interest spread 1% 1% 5% 5% 4% Charge 5% 5% 0% 0% 8% 8% 5% 5% 3% Credit 11% 5% 6% Credit 11 FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC

Additional information § Loan option is chosen at time of request, not issue § Only one loan type is available at a time § Client has the ability to switch from a Standard Loan to a Participating Loan, or vice versa § Maximum of 3 times during the life of the contract § Entire loan balance switches 12 FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC

Additional information about AIG can be found at www. aig. com You. Tube: www. youtube. com/aig | Twitter: @AIG_Latest. News Linked. In: http: //www. linkedin. com/company/aig 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. 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. Policies issued by American General Life Insurance Company (AGL), Houston, TX except in New York, where issued by The United States Life Insurance Company in the City of New York (US Life Issuing companies AGL and US Life are responsible for financial obligations of insurance products and are members of American International Group, Inc. (AIG). Guarantees are backed by the claims-paying ability of the issuing insurance company. Products may not be available in all states and product features may vary by state. Please refer to your policy. © AIG 2018. All rights reserved. AGLC 111490 FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC