AG Global Bonus Index®Annuity - Business Underwriters Associates

AG Global Bonus Index ® Annuity
including
AG Lifetime Income Builder ® optional living benefit rider
Product Highlights
To uncover
prospects, ask
these questions:
n Would you like a premium bonus to jump start the growth of your
retirement savings
n Would you like the opportunity to participate in market growth while
protecting your principal and earnings
n Have you contributed the maximum to your employer 401(k) plan
and/or an IRA and want additional tax-deferred savings
n Want to defer paying taxes on your interest earnings
n Do you anticipate being in a lower income tax bracket when you retire
n Want your heirs to have assets that can avoid probate
n Want a long-term retirement solution to add to your portfolio
Yes answers mean an index annuity can help your clients
achieve their long-term financial goals.
n Want guaranteed growth that creates guaranteed lifetime income
Yes answer means they should consider an optional living
benefit rider, AG Lifetime Income Builder ® , on this index annuity.
Important Information About Selling Index Products
Although index annuity products
are considered to be fixed deferred
annuities and feature all the benefits
that fixed products have to offer, it’s
important that producers properly
position these products when selling
them to clients. Index annuities
are currently exempt from federal
and state securities registration
requirements, and it’s important to
understand that the way in which
a product is marketed can directly
impact the determination of whether
it is considered to be a security.
Therefore, all producers should be
aware of the following guidelines for
marketing index annuity products.
n Index products should be properly
positioned as an alternative to other
fixed deferred annuities
n They should not be marketed as a
substitute for equity investments
(such as mutual funds)
n The marketing and sales process
should speak to the guaranteed
features of the product without
overemphasizing the possibility of
high market-linked interest credits
or the aspect of linkage to equities
n The overall focus of any marketing,
including any sales presentations,
should be the long-term retirement
aspects, such as minimum
guaranteed surrender values,
annuity payout options and the
safety and stability of insurance
products in general
FOR PRODUCER USE ONLY — NOT FOR DISSEMINATION TO THE PUBLIC
NOT A DEPOSIT | NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY | MAY LOSE VALUE | NO BANK OR CREDIT UNION GUARANTEE | NOT FDIC/NCUA/NCUSIF INSURED

Contract Description
Issue Ages
Premium
Premium Bonus 5%
AG Lifetime
Income Builder SM
optional living
benefit rider
Account Options
AG Global Bonus Index ® Annuity Product Highlights
Index, single-premium, deferred annuity with premium bonus and market value adjustment (MVA)
Owner and annuitant, nonqualified and qualified:
0 – 80 (Minimum age 55 if AG Lifetime Income Builder is elected)
Minimum: $15,000 nonqualified & qualified. ($50,000 if AG Lifetime Income Builder is elected).
Maximum: $1 million without home office approval (age 75+, up to $500,000)
Guarantees annual Lifetime Income Withdrawals at specified level (Income Base x Payout %) or higher for
as long as the client lives, even if Annuity Value goes to zero (as long as no excess withdrawals).
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Initial Income Base. At contract issue, Income Base is equal to Annuity Value, including premium bonus.
■■
Roll Up Rate. 6% compounded annual guaranteed growth on Income Base used to create guaranteed
Lifetime Income Withdrawals. The Roll Up is credited to the Income Base until the earliest event: 20th
contract anniversary, client begins Income Withdrawal Phase, contract anniversary on or immediately
following the client’s 90th birthday.
■■
■■
Annual Step Up. Each anniversary (during 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
2% Increase in Income Each Year. If client builds up the Income Base for 10 years or more before
beginning the Income Withdrawal Phase, the client’s Lifetime Income Withdrawal payments will increase
by an additional 2% compounded annually each year (i.e., calculation is 102% of Income Base x ___%).
■■
Flexibility. Client can turn income withdrawals on or off at any time or take less than the calculated
amount. Client retains ability to surrender the contract and receive Withdrawal Value.
■■
Cost. See rate sheet for percentage of Income Base charged annually. Cost is deducted from Annuity Value
in arrears on each contract anniversary.
■■
Issue Ages. Minimum is age 55, Maximum is the max age for this index product
■■
Minimum Premium. $50,000
Income Payment Calculation: Income Base x ____% (see chart for applicable %)
Age* Individual Withdrawal Payment % Joint Withdrawal Payment %
56-64 4.00% 3.50%
*Age is the Age
at the beginning
65-69 4.50% 4.00%
of the Withdrawal
Phase. Joint age is
70-74 5.00% 4.50%
the average age of
75-79 5.50% 5.00%
spouses, rounded
80-90 6.00% 5.50%
down.
Stipulations:
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Rider must be elected when annuity is purchased and cannot be cancelled.
■■
Rider has one year waiting period before receiving the Lifetime Income Withdrawal payments.
■■
If Income Withdrawal Phase has not begun by the contract anniversary on or immediately following the
owner’s 90th birthday, the rider terminates.The factors (rates and years) in the optional rider are subject
to change at any time for new contracts. See Rate Sheet for current rates. However, once a contract is
issued, the factors (found on the Contract Schedule Page) do not change.
A variety of interest-crediting methodologies bring flexibility, strength and diversity. See riders for full details.
■■
Global Multiple Index Account ® with Cap: Annual point-to-point methodology using changes in three
global indices: S&P 500 ®1 , the Dow Jones EURO STOXX 50 ® (EURO STOXX) 2 and the Nikkei 225 SM3
(Nikkei SM ) up to a Cap. The Cap will be declared when the contract is issued and then again on every
anniversary. Annual credited interest is determined by adding the following three values 4 together and
then comparing the sum to the Cap:
50% of the calculated change in the index with the highest return during the year.
30% of the calculated change in the index with the 2nd highest return during the year.
20% of the calculated change in the index with the lowest return during the year.
Interest is credited annually on the contract anniversary and will never be less than zero percent.
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Annual Point-to-Point Account with Participation Rate: Annual credited interest is based on the
percentage calculated change in the S&P 500 over a contract year multiplied by a declared Participation
Rate. Participation Rate is declared when the contract is issued and then again on every anniversary.
While we have no intention of doing so, we reserve the right to add an index cap or spread if conditions
warrant. Interest is credited annually on the contract anniversary and will never be less than zero percent.
Monthly Additive Account with Cap: Annual credited interest will equal the sum of 12 monthly point-to
point S&P 500 value change percentages, with each month’s positive percentage subject to the declared
Cap. The Cap will be declared when the contract is issued and then again on every anniversary. Interest
is credited annually on the contract anniversary and will never be less than zero percent.
While we have no current intention of doing so, we reserve the right to do the following if conditions
warrant: add additional permitted moving parts to any index account (such as adding a Participation Rate
to the account with an Index Spread), or discontinue index account options at end of the withdrawal
charge period. See Rider for full details.

AG Global Bonus Index ® Annuity Product Highlights, continued
Account Options
continued
Guaranteed
Minimum
Withdrawal
Benefit †
(GMWB)
Annual Statement
Annual Reallocation
Death Benefit
Free Withdrawal
Provision
Minimum
Withdrawals
Required Minimum
Distribution (RMD)
Withdrawal Charges
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Fixed Interest Account: The crediting rate for the next year is declared and guaranteed annually at the
contract anniversary. All declared rates are guaranteed to be at least 1%. Annual reallocations can be made
into or out of the Fixed Interest Account. Fixed Interest is credited to the contract on a daily basis.
Through GMWB, clients maintain control of their account value, and can also have a guaranteed income stream. 5
There is no up-front charge for this rider, and it is included in all contracts (unless AG Lifetime Income Builder
is elected). Minimum Annuity Value at election is $50,000. Withdrawals up to a calculated maximum benefit
amount, based upon attained age and annuity value, may begin after the 1st contract year. The maximum
benefit amount is recalculated each year, and even if the result is a lower number due to a decrease in the
annuity value, we guarantee that the maximum benefit amount will never decrease from year to year so long
as no excess withdrawals are taken. Benefits can increase each year due to attained age reaching a higher
income percentage bracket, 6 as well as due to an increased annuity value. 7 Keep in mind, like all withdrawals,
GMWB withdrawals decrease the annuity value.
Attained Age* 55 – 59 60 – 64 65 – 69 70 – 74 75 – 79 80 – 84 85+
INCOME Single Owner Percent 4.5% 5.0% 5.5% 6.0% 6.5% 7.0% 7.5%
PERCENTAGE
TABLE Joint Owner Percent 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% 6.5%
* Age is the Age at the beginning of the Withdrawal Phase. Joint age is the average age of spouses, rounded down.
Once the GMWB begins, the client’s Index Caps, Participation Rate, and Fixed Interest rate will each have
a Rate Differential applied to it; Maximum Rate Differentials: 4% on Participation Rate, 0.4% on monthly
additive Cap, 1% on Annual Cap, 0.4% on Fixed Interest Credited Rate. Once set, Rate Differentials will not
change during the life of the contract. Example of Rate Differential: if an Index Cap is 7% and the
Rate Differential is 25bp, then the GMWB client would have an Index Cap of 6.75% (7.00% – 0.25%).
Combination annual statements and reallocation notices are mailed following each contract anniversary and
outline the relative distribution of the account value in all Account Options, including that year’s interest growth,
as of the contract anniversary. It will also include information for the next contract year (the Caps and/
or Participation Rate for the various Account Options and the interest-crediting rate for the Fixed Interest
Account) as well as available AG Lifetime Income Builder guaranteed Lifetime Income Withdrawals (if client
elected this rider) or GMWB and Rate Differentials.
Account values can be reallocated as of each contract anniversary among all available Account Options.
Withdrawal charges and MVAs are not applied on reallocations. If your client would like to designate new
allocation percentages for the available Account Options for the next contract year, they will need to complete and
return the reallocation form (received with annual statement) to the home office within 45 days following the
contract anniversary. If your client chooses to keep the same allocations, no response is required.
Upon the death of the owner (or first owner, if there are two owners), if the annuity value is greater than
zero, the beneficiary will receive the annuity value (withdrawal charges and MVA are not applied at death).
Beneficiary chooses to receive a single sum or an income plan. If the owner’s sole beneficiary is the
spouse, the surviving spouse may continue the contract as long as the contract has not been annuitized.
In all contract years, up to 10% of the annuity value, as of the previous contract anniversary (10% of the
initial premium in the first contract year), may be withdrawn without a withdrawal charge or MVA. 5 These
free withdrawals may be taken out as a one-time withdrawal, as part of a series of systematic withdrawals,
or a combination of the two. GMWB withdrawals and AG Lifetime Income Builder guaranteed Lifetime
Income Withdrawals are considered partial withdrawals; however, they are not subject to withdrawal
charges or MVA as long as no excess withdrawals are made in that year.
After a partial or systematic withdrawal, the minimum remaining annuity value must be no less than
$5,000. The minimum partial withdrawal is $250 with no minimum remaining value requirement in each
Account Option. Exception: Minimums do not apply when receiving AG Lifetime Income Builder guaranteed
withdrawals or GMWB. The minimum systematic withdrawal is $50 and may come from any combination
of Account Options. Interest-only systematic withdrawals must be based on the value in the Fixed Interest
Account. Systematic withdrawals may begin as soon as 30 days after the contract issue date; payments
may be monthly, quarterly, semiannual or annual.
Pertains only to qualified (pre-tax) contracts: No withdrawal charge on RMDs pertaining to this contract;
however, the RMD payments will count against the Free Withdrawal Provision in a given year. 5
Withdrawal charges are based on a percentage of the annuity value (before application of the MVA) that
exceeds the Free Withdrawal Provision. If your client surrenders their contract during the first six contract
years, it is possible they may receive less than their premium.
Year 1 2 3 4 5 6 7 8 9 10
Percent 10% 10% 10% 10% 10% 9% 8% 7% 6% 4%
Withdrawal charges are reduced in some states; see the annuity contract for details.
Continued on back

AG Global Bonus Index ® Annuity Product Highlights, continued
MVA
Guaranteed Minimum
Withdrawal Value
(GMWV)
Income Plan Options
Annutization
Extended Care Rider
Contract Issue Dates
The MVA may increase or decrease the withdrawal value when more than the amount available through
the Free Withdrawal Provision is withdrawn in a contract year (unless the withdrawal is for an RMD)
during the first ten contract years. The amount of the MVA is determined by a mathematical formula
included in the contract and reflects changes in the interest rate market since the contract’s issue date.
Owners will always receive at least 100% of premium, less prior withdrawals, growing at a rate of
at least 1.5% compounded annually reduced by withdrawal charges. Once a contract is issued, the
growth rate does not change. AG Lifetime Income Builder factors and GMWV growth rates are each set
periodically for new contracts. See Rate Sheet for current rates.
For the client who prefers a higher guaranteed income payment in lieu of retaining liquidity (available
with AG Lifetime Income Builder and GMWB): Client can turn the annuity value into a steady stream
of income following the fifth contract year. Prior to the fifth contract anniversary, the withdrawal value
(annuity value with withdrawal charge and MVA applied) can be converted into an income plan. Income
plan options include life contingency options and certain period options. See the contract regarding
annuitization for details. State variations may apply.
Waives withdrawal charges and MVA on withdrawals or surrenders if:
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Care begins at least one year after the date of issue of the contract
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Care is provided by a qualified institution for at least 90 consecutive days
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The owner is less than age 86
Included at no additional cost. See rider for full details.
Contracts are issued on the 5th, 12th, 20th and 28th of each month
These product specifications are not intended to be all-inclusive of product information. State variations may apply. Please refer to the reference
material on the American General Life Companies web site or the contract for complete details. Do not state or imply that the purchase of this
annuity is like an investment or a means of participating in“securities,” “markets,” “stocks,” “stock market index” or “S&P 500 ® .”
† Not available in Oregon.
1
AG Global Bonus Index is not sponsored, endorsed, sold or
promoted by Standard & Poor’s (“S&P”) or its third party
licensors. Neither S&P nor its third party licensors makes
any representation or warranty, express or implied, to the
owners of AG Global Bonus Index or any member of the
public regarding the advisability of investing in securities
generally or in AG Global Bonus Index particularly or the
ability of the S&P 500 (the “Index”) to track general stock
market performance. S&P’s and its third party licensor’s
only relationship to American General Life Companies
and its affiliates is the licensing of certain trademarks and
trade names of S&P and the third party licensors and of the
Index which is determined, composed and calculated by
S&P or its third party licensors without regard to American
General Life Companies and affiliates or AG Global Bonus
Index. S&P and its third party licensors have no obligation
to take the needs of American General Life Companies
and affiliates or the owners of AG Global Bonus Index into
consideration in determining, composing or calculating the
Index. Neither S&P nor its third party licensors is responsible
for and has not participated in the determination of the
prices and amount of AG Global Bonus Index or the timing
of the issuance or sale of AG Global Bonus Index or in the
determination or calculation of the equation by which the AG
Global Bonus Index is to be converted into cash. S&P has no
obligation or liability in connection with the administration,
marketing or trading of the AG Global Bonus Index. NEITHER
S&P, ITS AFFILIATES NOR THEIR THIRD PARTY LICENSORS
GUARANTEE THE ADEQUACY, ACCURACY, TIMELINESS OR
COMPLETENESS OF THE INDEX OR ANY DATA INCLUDED
THEREIN OR ANY COMMUNICATIONS, INCLUDING BUT
NOT LIMITED TO, ORAL OR WRITTEN COMMUNICATIONS
(INCLUDING ELECTRONIC COMMUNICATIONS) WITH
RESPECT THERETO. S&P, ITS AFFILIATES AND THEIR
THIRD PARTY LICENSORS SHALL NOT BE SUBJECT TO ANY
DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS
OR DELAYS THEREIN. S&P MAKES NO EXPRESS OR
IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL
WARRANTIES OF MERCHANTABILITY OR FITNESS FOR
A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE
MARKS, THE INDEX OR ANY DATA INCLUDED THEREIN.
WITHOUT LIMITING ANY OF THE FOREGOING, IN NO
EVENT WHATSOEVER SHALL S&P, ITS AFFILIATES OR THEIR
THIRD PARTY LICENSORS BE LIABLE FOR ANY INDIRECT,
SPECIAL, INCIDENTAL, PUNITIVE OR CONSEQUENTIAL
DAMAGES, INCLUDING BUT NOT LIMITED TO, LOSS OF
PROFITS, TRADING LOSSES, LOST TIME OR GOODWILL,
EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBILITY OF
SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT
LIABILITY OR OTHERWISE. S&P, S&P 500 and STANDARD
& POOR’S are registered trademarks of Standard & Poor’s
Financial Services LLC and have been licensed for use by
American General Life Companies and affiliates.
2
The Dow Jones EURO STOXX 50 ® is the intellectual property
of (including registered trademarks) Stoxx Limited, Zurich,
Switzerland and/or Dow Jones & Company, Inc., a Delaware
corporation, New York, USA, (the “Licensors”), which is
used under license. This product that is based on the Index
are in no way sponsored, endorsed, sold or promoted by the
Licensors and neither of the Licensors shall have any liability
with respect thereto.
3
The Nikkei Stock Average (“Index”) is an intellectual property
of Nikkei Inc. (formerly known as Nihon Keizai Shimbum,
Inc. Name changed on January 1,2007). “Nikkei”, “Nikkei
Stock Average”, and “Nikkei 225” are the service marks
of Nikkei Inc. Nikkei Inc. reserves all the rights, including
copyright, to the index. Nikkei Digital Media, Inc., a wholly
owned subsidiary of Nikkei Inc. calculates and dessiminates
the Index under exclusive agreement with Nikkei Inc. Nikkei
Inc. and Nikkei Digital Media Inc. are collectively “Index
Sponsor”. The Products are not in any way sponsored,
endorsed or promoted by the Index Sponsor. The Index
Sponsor does not make any warranty or representation
whatsoever, express or implied, either as to the results to
be obtained as to the use of the Index or the figure as which
the Index stands at any particular day or otherwise. The
Index is compiled and calculated solely by the Index Sponsor.
However, the Index Sponsor shall not be liable to any person
for any error in the Index and the Index Sponsor shall not
be under any obligation to advise any person, including a
purchaser or vendor of the Products, of any error therein. In
addition, the Index Sponsor gives no assurance regarding
any modification or change in any methodology used in
calculating the Index and is under no obligation to continue
the calculation, publication and dissemination of the Index.
4
The weighting percentages are set for the life of the contract
on the contract effective date. The company reserves the
right to change the percentages for new business. The sum
of the three percentages will always be at least 30%.
5
Withdrawals may be subject to Federal and/or State income
taxes. A 10% Federal penalty tax may apply if you make
withdrawals or surrender your annuity before age 59-1/2.
Beginning January 1, 2013, annuity income may be subject
to an additional tax of 3.8% under specific factual situations.
Consult your tax advisor regarding your specific situation.
6
Once the Income Percentage table is set for an in-force
contract, it will not be changed. The company reserves
the right to change the Income Percentage table for future
business; the guaranteed minimum Income Percentage is 1%
for both single and joint owner contracts.
7
Annuity value can increase due to interest earned.
Annuities issued by: American General Life Insurance Company, 2727-A Allen Parkway, Houston, Texas 77019. AG Global Bonus Index Annuity Contract Number 07109, AG Lifetime Income Builder
(Guaranteed Lifetime Income Benefit) optional Rider Form Number 11760, Extended Care Rider Form Number 04049 or 03049, Monthly Additive Account with Cap Rider Form Number 05200, Annual Point-to-Point
Account Rider Form Number 11201, Global Multiple Index Account with Cap Rider Form Number 11611, Guaranteed Minimum Withdrawal Benefit Rider Form Number 07760. 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. AGL does not solicit business in the state of New
York. Annuities and riders may vary by states and are not available in all states. Guarantees are subject to the claims-paying ability of AGL. American General Life Companies, www.americangeneral.com, is the
marketing name for a group of affiliated domestic life insurers including, AGL. . Important: Prior to soliciting business, be certain that you are appropriately licensed and appointed with the insurer and that the
product has been approved for sale by the insurer in that state. If uncertain, contact your American General Life Companies representative for assistance. ©2012. All rights reserved.
AGLC102951 REV0612
FOR PRODUCER USE ONLY — NOT FOR DISSEMINATION TO THE PUBLIC