The Gift of Protection Index Universal Life Insurance

The Gift of Protection Index Universal Life Insurance with the Qo. L Max Accumulator+ II [Name] [Title, Business Unit Name] Title 2 AIG Policies issued by American General Life Insurance Company (AGL), Houston, TX, member of American International Group, Inc. (AIG).

DISCLAIMER Advanced Sales is a marketing unit of American General Life Insurance Company (AGL), and a member of American International Group, Inc. (AIG). No representation or warranty, express or implied, is made by AGL or its affiliates as to the completeness of the information provided. All companies mentioned, their employees, financial professionals and other representatives are not authorized to give legal, tax or accounting advice. Applicable laws and regulations are subject to change and individuals should consult an attorney, tax advisor, or accountant. Policies issued by American General Life Insurance Company (AGL), Houston, TX. Policy ICC 19 -19646, 19646; Rider ICC 15 -15600, ICC 18 -18012, ICC 16 -16420, 14306, 07620. Issuing company AGL is responsible for financial obligations of insurance products and is a member of American International Group, Inc. (AIG). Guarantees are backed by the claims-paying ability of the issuing insurance company. AGL does not solicit business in the state of New York. Products may not be available in all states and product features may vary by state. Please refer to your policy. 2

Establish a Legacy Most parents have the desire to provide financially for their children and grandchildren. Let’s explore a tax efficient method of accomplishing this by providing the gift that keeps on giving. 3

Gifting Efficiently The Annual Gift Tax Exclusion The 2019 annual federal gift tax exclusion is $15, 000, the amount of money any one person can give another person without incurring gift taxes. * Parents can give their children a total of $30, 000 per year and still fall under this zero tax rule by utilizing the exemption for each parent. We are going to explore a strategy utilizing this tax free gift to establish life insurance protections for generations to come. *Source: https: //www. irs. gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-taxes 4

Meet Kevin and Hetal Rajan Legacy Planning Timeframe • Kevin and Hetal have recently retired. Considering Future Generations • They have one daughter (Sara) who is the single parent of their 5 -year-old granddaughter (Lucy). 3 Major Objectives • Protecting Lucy if something happens to Sara. • Providing an education benefit for Lucy. • Providing future tax-efficient supplemental income for Sara. This hypothetical example is for illustrative purposes only. 5

How it Works 1 Kevin and Hetal gift a total of $30, 000 to Sara each year for 13 years. Sara uses this $30, 000 to purchase a Qo. L Max Accumulator+ II Life Insurance Policy. Upon approval, Sara is covered for $1, 094, 304 of death benefit. Sara pays this $30, 000 premium until Lucy is 18 years old and ready for college. Starting in year 14, Sara starts taking supplemental benefits from the Qo. L Max Accumulator+ II policy. 1 Not an actual case, and is a hypothetical representation for illustrative purposes only. Assumes 40 -year-old female, preferred, non-tobacco. $30, 000 annual premiums paid from policy year 1 – 13. No premiums paid policy year 14+. Solve for initial minimum non-med death benefit, with a reduction in death benefit in year 14. 6. 0% assumed rate of return with 100% premium allocation to blend participation rate account (utilizing MLSB Index). Rates based on illustration from 10/07/2019. 6

The Benefits 2 Education Funding • Lucy age 19 -22 • $50, 000 per year for 4 years • +Not limited to qualified expenses! 2 Annual, variable-rate loans taken to receive tax free cash withdrawals. Variable rate loans incur interest and reduce the death benefit of the life insurance policy. This hypothetical example is for illustrative purposes only. Not an actual case and intended solely to depict how the product features might work. It does not reflect the value of any specific Policy. Restrictions and limitations apply. Estate and gift tax planning should be undertaken with consultation of a legal, financial, or tax advisor. For non-Modified Endowment Policies, life insurance loans are generally federally income tax free, are against the cash value, and will reduce the cash value & death benefits proportionately. Gifts in excess of the annual gift tax exclusion may require a gift tax return and incur gift taxes or require the utilization of a portion of the lifetime credit. 7

The Benefits 2 New House Down Payment • Lucy age 25 • $100, 000 Income Tax Free! 2 Annual, variable-rate loans taken to receive tax free cash withdrawals. Variable rate loans incur interest and reduce the death benefit of the life insurance policy. This hypothetical example is for illustrative purposes only. Not an actual case and intended solely to depict how the product features might work. It does not reflect the value of any specific Policy. Restrictions and limitations apply. Estate and gift tax planning should be undertaken with consultation of a legal, financial, or tax advisor. For non-Modified Endowment Policies, life insurance loans are generally federally income tax free, are against the cash value, and will reduce the cash value & death benefits proportionately. Gifts in excess of the annual gift tax exclusion may require a gift tax return and incur gift taxes or require the utilization of a portion of the lifetime credit. 8

The Benefits 2 Sara’s Supplemental Retirement Income • Sara age 68 -87 • $90, 000/yr income tax free 2 Annual, variable-rate loans taken to receive tax free cash withdrawals. Variable rate loans incur interest and reduce the death benefit of the life insurance policy. This hypothetical example is for illustrative purposes only. Not an actual case and intended solely to depict how the product features might work. It does not reflect the value of any specific Policy. Restrictions and limitations apply. Estate and gift tax planning should be undertaken with consultation of a legal, financial, or tax advisor. For non-Modified Endowment Policies, life insurance loans are generally federally income tax free, are against the cash value, and will reduce the cash value & death benefits proportionately. Gifts in excess of the annual gift tax exclusion may require a gift tax return and incur gift taxes or require the utilization of a portion of the lifetime credit. 9

The Benefits 2 Lasting Legacy • Year 48+ • $750, 000 death benefit still remains! • Legacy Continues 2 Annual, variable-rate loans taken to receive tax free cash withdrawals. Variable rate loans incur interest and reduce the death benefit of the life insurance policy. This hypothetical example is for illustrative purposes only. Not an actual case and intended solely to depict how the product features might work. It does not reflect the value of any specific Policy. Restrictions and limitations apply. Estate and gift tax planning should be undertaken with consultation of a legal, financial, or tax advisor. For non-Modified Endowment Policies, life insurance loans are generally federally income tax free, are against the cash value, and will reduce the cash value & death benefits proportionately. Gifts in excess of the annual gift tax exclusion may require a gift tax return and incur gift taxes or require the utilization of a portion of the lifetime credit. 10

Let’s summarize… • Total Premiums in…. $390, 000 • Educational funding…. $200, 000 • Down payment on a house…. $100, 000 • Supplemental Retirement Benefits…. $1. 6 M • Legacy Death Benefit…. $750, 000 • Total benefit…. $2. 26 M This hypothetical example is for illustrative purposes only. Not an actual case and intended solely to depict how the product features might work. It does not reflect the value of any specific Policy. Restrictions and limitations apply. Estate and gift tax planning should be undertaken with consultation of a legal, financial, or tax advisor. For non-Modified Endowment Policies, life insurance loans are generally federally income tax free, are against the cash value, and will reduce the cash value & death benefits proportionately. Gifts in excess of the annual gift tax exclusion may require a gift tax return and incur gift taxes or require the utilization of a portion of the lifetime credit. 11

Policies issued by: American General Life Insurance Company (AGL), Houston, TX. Policy Form Numbers: ICC 19 -19646, 19646; Rider Form Numbers: ICC 15 -15600, ICC 18 -18012, ICC 16 -16420, 14306, 07620, ICC 14 -14002, 15996, 15997, ICC 18 -18004, ICC 15 -15602, ICC 15 -15603, ICC 1515604, 15604. Issuing company AGL is responsible for financial obligations of insurance products and is a member of American International Group, Inc. (AIG). All guarantees and benefits of the insurance policy are backed by the claims-paying ability of the issuing insurance company. AGL does not solicit business in the state of New York. Products may not be available in all states and product features including rates may vary by state. Please refer to your policy. © AIG 2019. All rights reserved. This information is general in nature, may be subject to change, and does not constitute legal, tax or accounting advice from any company, its employees, financial professionals or other representatives. Applicable laws and regulations are complex and subject to change. Any tax statements in this material are not intended to suggest the avoidance of U. S. federal, state or local tax penalties. For advice concerning your individual circumstances, consult a professional attorney, tax advisor or accountant. AGLC 112652 -QOL REV 1019 12