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American General Life Companies 

NEW BUSINESS 

UPDATE 

March 11, 2009 

Rebranded Applications Now Available in Forms Depot 

Bulletin 09-040 

O.NB.F.B/PR.G 

The insurers of American General Life Companies are pleased to announce that applications and many of our 

forms have been rebranded with the American General Life Companies logo. This is the first wave of an on-going 

project and we will continue to communicate additional form changes as they are made. 

There are no formal transition rules for use of these forms, however, we encourage you to destroy any supplies 

of existing forms and begin using these immediately. 

Following is a list of the rebranded forms now available in Forms Depot. They will soon be available in 

FastFormsWeb. Nationwide AND state-specific versions (if applicable) have been updated. 

Form Name Form Number Notes 

Term Life Application AGLC100240 

Common Life Application AGLC100565 

Part B Application 

AGLC100566 

Child Rider Attachment AGLC100241 

HIPAA Authorization 

AGLC100633 

Included in all term and common life application 

packets 

Included in all term and common life application 

Notices to Proposed Insured(s) AGLC102112 

packets 

Note: New street address and Web URL for MIB 

Included in the term and common life application 

Terminal Illness Rider 

AGLC103096 

packets for AL, AR, CT, DC, IN, KS, LA, MA, MI, 

Instruction Sheet 

MN, MS, NC, OH, OK, OR, TX, VA and WA 

Disclosure of Accelerated 

Death Benefits (also known as 

Terminal Illness Rider) 

Disclosure of Accelerated 

Benefits – MA version 

New Business Checklist for 

USL Applications 

Replacement Tip Sheet for 

non-NY 

AGLC102084 

AGLC101954-MA 

AGLC103546 

AGLC103176 

Deferred Annuity Application AGLC101493-2005 Generic version 

Deferred Annuity Application AGLC101493-FL Florida version 

Deferred Annuity Application AGLC101493-ME Maine version 

Deferred Annuity Application AGLC101493-MA Massachusetts version 

Deferred Annuity Application AGLC101493-NY New York version 

Immediate Annuity Application AGLC0354-2001 Generic version 

Immediate Annuity Application 

AGLC0354-2001 

(REV0605) 

Oregon version 

Immediate Annuity Application AGLC0354-FL Florida version 

Immediate Annuity Application AGLC0354-NC North Carolina version 

Immediate Annuity Application USL0354-33 New York version 


packets for AL, AR, CT, DC, IN, KS, LA, MI, MN, 

MS, NC, OH, OK, OR, TX, VA and WA 


packets for MA 

New form replaces AGLC102216, 

AGLC102216 Rev0508, and AGLC101330. 


packets for all states except NY (no changes 

were made to NY version – AGLC103399) 

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 

American General Life Insurance Company and The United States Life Insurance Company in the City of New York. 

FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC


MARKETING 

UPDATE 

March 11, 2009 

Rebranded UL Marketing Materials 

Now Available in Forms Depot and on eStation 


S.L.OT.B/PR.G 

The insurers of American General Life Companies are pleased to announce that many of our UL marketing 

materials have been rebranded with the American General Life Companies logo. 

Following is a list of the rebranded materials now available in Forms Depot and on the product pages of the 

producer Web site, http://eStation.aigag.com. They will soon be available in FastFormsWeb. 

PRODUCT Form Name Form Number Notes 

ContinUL Extend ® Rolling Targets Producer Flyer 

AGLC103373 Rev0209 

AGL only; 

customizable 

Producer Guide AGLC103075 Rev0109 AGL & USL 

Consumer Brochure AGLC101924 Rev0109 AGL & USL 

Product Highlights Sheet – Producer Use AGLC101925 Rev0109 AGL & USL 

Better by a Dozen Producer Flyer AGLC103115 Rev0109 

AGL & USL; 

customizable 

Term Conversion to ContinUL Extend 

Producer Flyer 

AGLC103365 Rev0109 

AGL & USL; 

customizable 

Global Indexing Revealed Producer Flyer AGLC103272 Rev0209 

AGL & USL; 

customizable 

Survivor SM Product Highlights AGLC103211 Rev0209 AGL & USL 

Elite Global Plus SM 

AGL & USL; 

Great Heights Producer Flyer 

AGLC103223 Rev0209 

& 

customizable 

Elite Global Producer Guide AGLC103103 Rev0209 AGL & USL 

Consumer Guide AGLC103074 Rev0309 AGL & USL 

Index Interest Crediting Explanation AGLC103234 Rev0309 AGL & USL 

Elite Index SM Producer Guide AGLC103337 Rev0209 AGL & USL 

Consumer Brochure AGLC103336 Rev0209 AGL & USL 

Elite Survivor Consumer Brochure AGLC103437 Rev0209 AGL & USL 

Index SM Producer Guide AGLC103439 Rev0309 AGL & USL 

Elite Universal Life G 

Generic or 

Multi Purpose 

Product Highlights Sheet – Producer Use AGLC100409 Rev1208 AGL only 

Consumer Brochure AGLC100412 Rev0209 AGL only 

Overloan Protection Rider Spec Sheet – 

Producer Use 

Elite Survivor Index / Elite Global Survivor 

Leaving a Legacy Producer Flyer 

The Bouncer “Expanded Standard Class” 

Producer Flyer 

ContinUL Extend / Protection Advantage 

VUL All-Seasons Choices Producer Flyer 

AGLC102449 Rev0209 

AGLC103452 

AGLC103241 Rev0209 

AGLC103341 Rev0209 

AGL & USL 

AGL & USL; 

customizable 

AGL & USL; 

customizable 

AGL & USL 





ContinUL Extend ® 

Flexible Premium, Adjustable Death 

Benefit Universal Life Insurance 

with Secondary Guarantee Provisions 

Protection with 

flexibility for your future 

PRODUCER GUIDE 

For Producer Use Only— 

Not for Dissemination to the Public 

Policies issued by: 

American General Life 

Insurance Company 

The United States Life Insurance 

Company in the City of New York

ContinUL Extend ® universal life insurance 1 offers 

your clients a unique combination of 

affordable death benefit protection, options to 

customize their coverage guarantees to fit 

their needs, and flexibility to adapt as those 

needs change. Providing the security of a 

flexible guarantee period—up to a lifetime— 

makes ContinUL Extend the right choice. 

Family Needs 

The flexible death benefit 

guarantee of ContinUL Extend 

makes it an excellent choice for 

income replacement coverage 

and a host of other family needs. 

With the option to guarantee a 

death benefit for life, ContinUL 

Extend is also an excellent estate 

planning tool to fund estate 

settlement costs, or replace 

assets gifted to charity. ContinUL 

Extend can provide the resources 

and liquidity to meet estate 

obligations when they arise. 

Business Needs 

Life insurance can be a powerful 

tool to ensure business continuity 

at the death of a business owner 

or key employee. ContinUL 

Extend can be a source of this 

capital for continuation of 

a business. 

Key Features 

With ContinUL Extend, your 

client’s death benefit coverage 

can be guaranteed—regardless 

of the policy cash value—as long 

as sufficient premium has been 

paid to maintain the guaranteed 

death benefit. 1,2 This provision 

frees your clients from worries 

about their coverage lapsing. 

The value of the continuation 

guarantee account is determined 

in a similar calculation to the 

actual policy value. Its charges 

and interest rates are fixed and 

do not change during the life of 

the policy. While this continuation 

guarantee account does not provide 

any additional policy values, it is 

a reference value that is used to 

determine whether the no-lapse 

guarantee is in effect at any 

point in time. 

With this continuation guarantee 

account, your clients can 

determine in advance the specific 

amount of premium needed to 

be paid to guarantee their policy’s 

death benefit coverage, without 

being concerned about changing 

interest rates or other variables 

that could impact the policy’s cash 

value. Coverage will continue as 

long as enough premium is paid 

to guarantee the death benefit. 1 

Your clients are also free to choose 

the duration of their no-lapse 

guarantee, so they won’t be 

paying for a longer period of 

protection than they desire. 

ContinUL Extend offers the 

flexibility to choose the number of 

years or age to which your client 

wants the death benefit to be 

guaranteed, regardless of how 

the policy performs, as long as 

the premium associated with 

that guarantee is paid. 

Your clients also have the 

flexibility to structure a premium 

payment plan that meets their 

needs. They can pay premiums 

continuously over the life of 

the policy or pay additional 

premium to shorten the payment 

period and pre-fund the 

coverage guarantee. 

Your clients can increase their 

death benefit amount at any time 

(subject to satisfactory evidence 

of insurability), or decrease that 

amount at any time after the first 

policy year. 2,3 ContinUL Extend 

allows for a maturity date up 

to age 121, so you can extend 

premiums to age 121, making it 

an extremely competitive choice 

for the key 50-75 age market. 

Consumer-Friendly 

Features 

Because it is not always possible 

for your clients to make premium 

payments when they are due, 

ContinUL Extend contains 

consumer-friendly features: 

■ Late Payments: Premium 

payments received within a 

28-day window after a due date 

will be credited as if received on 

that due date for the purpose 

of maintaining the death 

benefit guarantee 

■ 1035 Exchanges: 4 Proceeds 

from 1035 exchanges received 

within a 12-month window after 

policy issue will be treated as if 

received on the issue date for 

the purpose of maintaining the 

death benefit guarantee 

A wide variety of features adds 

flexibility to ContinUL Extend 

– Affordable protection 

– Adjustable guarantee periods 

– Flexible premium payment periods 

– Consumer-friendly features 

– Preferred Plus underwriting class 

– Base/Supplemental blending 

If your clients are looking for more 

from their insurance coverage, 

ContinUL Extend offers a unique 

array of options and features to 

meet their needs—and exceed 

their expectations. 

3

Product Highlights 

Key Benefits 

5 

• Option to extend coverage beyond the maturity date is included in the policy 

• Your clients select the duration of the death benefit coverage guarantee according to their needs and 

structure the premium payment period to meet their needs 

• Your clients can “catch-up” the no-lapse guarantee by paying the required additional funds as long as the 

policy is still in force 

Continuation Guarantee • Allows policy owner to select a year or age to which the death benefit can be guaranteed, if the premium 

(CG) 

associated with that guarantee is paid 2 

• Can prevent policy from lapsing even if the cash surrender value of the policy falls to zero, as long as the terms 

and conditions of this guarantee and the policy are satisfied 

Issue Ages 

• 18–80 Preferred Plus No Tobacco 

• 18–90 Preferred No Tobacco, Standard Plus No Tobacco, Standard No Tobacco 

• 18–90 Preferred Tobacco, Standard Tobacco (USL version) 

• 18–90 Preferred Tobacco, Standard Tobacco (AGL version) 

• 0–17 Juvenile Rates (AGL version) 

Underwriting 

• Preferred Plus No Tobacco 

Classifications 

• Preferred No Tobacco 

6 

• Standard Plus No Tobacco 

• Standard No Tobacco 

• Preferred Tobacco 

• Standard Tobacco 

• Flat Extras 

Minimum Death Benefit $100,000 

Changes to the 

• Increases available at any time before age 100, subject to satisfactory evidence of insurability 

Specific Amount 

3,7 

• Decreases available at any time after first policy year and before age 100 

Premiums 

• Planned periodic premiums cannot be less than $300 annually ($25 monthly) 

• A two-year minimum premium may be required in some cases (see illustration) 

Base/Supplement Blending • Ability to blend by designating percentage of coverage as Supplemental 

• Supplemental coverage will have no target premium, per unit monthly expense charges, or surrender charges 

• Current cost of insurance charges for the Base coverage will be lower than the cost of insurance charges for 

Supplemental coverage 

Load and Expenses • Current monthly administration fee of $5 ($7 guaranteed) 

• Five year monthly expense charge based on amount of base coverage 

• Percentage of premium load is 6.5 percent (7.5 percent guaranteed) 

Surrender Charges • Decreasing 19-year surrender charge schedule 

• Charges vary by issue age, gender and underwriting class 

Death Benefit Options • Option 1 (Level)—Death benefit equal to the specified amount 

• Option 2 (Increasing)—Death benefit equal to the specified amount plus the accumulation value 

• Option 3 (Return of premium)—Death benefit equal to the specified amount plus the sum of all premiums paid 

(must be elected at issue) 

• Changes from Option 1 to Option 2, from Option 2 to Option 1, and from Option 3 to Option 1 are permitted 

at any time. No other option changes are permitted. 

Loans 7 

Interest rate of 3.85 percent payable in advance 

Preferred Loans 7 

• Available after 10 policy years 

• Credited rate currently equals the loan rate 

• Restricted to policy earnings 

Interest Rates 

• Guaranteed interest rate: 3.00 percent 

• Current interest rate: Credited monthly and subject to change 

Withdrawals 7 

(Partial Surrenders) 

Accidental Death 

Benefit (ADB) 

Children’s Insurance 

Benefit (CIB) 

Spouse/Other 

Insured Term Rider 9 

(ART) 

Terminal Illness Rider 9 

Waiver of Monthly 

Deduction 


• Available any time, after the first policy year and before insured’s age 100 

• Death benefit cannot be reduced below $100,000 as a result of the withdrawal 

• Current charge of $25 for each withdrawal (maximum contractual charge of $50 for each withdrawal) 

• Applicable pro rata surrender charges are deducted from each withdrawal 

Available Riders 8 

• Provides an additional death benefit if death is accidental 

• Double ADB is paid if the death is sustained while a fare-paying passenger on a licensed public conveyance 

• Minimum: $25,000 

• Maximum: The lesser of $200,000 or the initial sum insured under the policy 

• Provides term insurance on the dependent children—up to but not including age 19—of the base insured 

• Minimum: 1 unit 

• Maximum: 10 units 

• Provides level term insurance on the insured’s spouse 

• Minimum: $10,000 

• Maximum: Two times the base policy 

• Provides an accelerated death benefit (living benefit) when the insured is diagnosed with a terminal illness 

(12 months or less to live) 

• One-time acceleration benefit of up to 50.00 percent of the base policy death benefit (less policy loans and excluding riders) 

• Maximum: $250,000 

• Subject to an administrative fee 

• Some states require a signed disclosure form at time of application 

• Waives the monthly deduction while the insured is disabled after six months of disability 

• Premiums are based on the insured’s attained age and increase annually 

• Rider not available for face amounts greater than $5 million 

1 

Guarantees are subject to the claims-paying ability of the issuing insurance company. 

2 

Subject to the policy’s terms and conditions. 

3 

A change in the policy will not be permitted if the change would result in the policy not meeting the definition of life insurance under Section 7702 of the Internal Revenue Code. 

Policy owner should consult a tax advisor to determine the effect of these provisions. 

4 

Internal Revenue Code Section 1035 and associated rules are complex in nature. Policy owners may incur surrender charges from their previous policy, be subject to new sales and 

surrender charges and other limitations with the new policy. It is highly recommended that policy owners consult a tax advisor prior to exchanging their policy. 

5 

The potential tax consequences of extending the maturity date beyond the age 121 are unclear. Policy owners should consult a tax advisor to determine the effect of this provision. 

6 

Standard Plus No Tobacco underwriting class is not available in all states. 

7 

Policy owners should consult a tax advisor to determine if these transactions trigger a taxable event. 

8 

See the riders for complete details. There may be a charge for each rider selected. Adding or deleting riders and increasing or decreasing coverage under existing riders can have tax 

consequences. Policy owners should consult a qualified tax advisor prior to electing such changes. 

9 

This rider is not available in the state of New York. 

4 5

Q. Where does it say that the 

death benefit is guaranteed? 

A. In two separate places: 

— In the Policy: The policy 

outlines the requirements of 

the continuation guarantee 

provision. While the methodology 

used to calculate the continuation 

guarantee is complex, the 

provision stipulates that the 

policy will not lapse as long as 


is in effect. 

— On the Illustration: 

The signature page of the 

illustration shows how the 

policy performs on a guaranteed 

and non-guaranteed basis over 

several years. As long as the 

illustrated premium is paid 

each year, the illustration may 

show a guaranteed death 

benefit even if the cash 

surrender value is zero. 

Q. What is meant by “guarantee 

premium”? 

A. The guarantee premium is the 

premium required to guarantee 

coverage for the duration 

specified. ContinUL Extend 

offers your client the flexibility 

to choose the length of time 

he or she wants the guarantee 

to last, be it 20 or 30 years — 

or any other period of time. 

Q. Can the company cause the 

continuation guarantee to 

be lost? 

A. No. 

6 

Frequently Asked 

Questions (FAQ’s) About 

ContinUL Extend 

Q. Can the continuation guarantee 

ever be lost? 

A. Certain actions by the 

policy owner can cause the 

continuation guarantee to be 

shortened or lost. For instance: 

— Not paying the premiums 

when they are due. The timing 

of payments is important in 

calculating the value of the 

continuation guarantee account. 

Late or skipped payments affect 

the value of the continuation 

guarantee account. (See the 

section on late payments.) 

— Taking loans or withdrawals 

from the policy, as these affect 


account value 

— Making policy changes such 

as increasing the death benefit 

or adding a rider, as these 

can affect the continuation 

guarantee account value. In 

these cases, the continuation 

guarantee can be maintained 

as long as corresponding 

changes to the amount of 

premium being paid are also 

made. ContinUL Extend offers 

the flexibility to design the 

product that best meets your 

clients’ needs and that can 

change with their changing 

circumstances. 

Q. What are the requirements of 

the guarantee provision? 

A. To guarantee that the 

policy will not lapse under 


provision, the continuation 

guarantee account value must 

be greater than or equal to 

zero. To ensure this, (1) the 

guarantee premiums required 

must be applied when they are 

due (see the section on page 3 

describing late payments), 

(2) there can be no loans or 

withdrawals, and (3) no policy 

changes such as increasing the 

death benefit or adding riders 

can be made. These factors 

may affect the calculation of 


account value and can cause 

it to fall below zero. 

Q. How is the continuation 

guarantee value calculated? 

A. The continuation guarantee 

value is calculated in the same 

way as the actual policy value, 

but using different charges and 

interest rates. Unlike the actual 

policy value, the charges and 

interest rates in this alternate 

policy value calculation are 

guaranteed not to change. The 

guaranteed rates and charges 

for the continuation guarantee 

calculation are shown on the 

policy’s schedule page. 

Q. Why is this type of 

continuation guarantee account 

sometimes referred to as a 

“shadow” account? 

A. It is sometimes referred to as 

a “shadow” account because, 

while it has many of the 

characteristics of a policy value 

account (rates are credited to 

it, charges are deducted from 

it and a value is calculated), 

there is no actual value to the 

account. It does not provide 

additional policy value or 

death benefit proceeds. It is 

simply a reference value used 

to determine whether or not 


is in effect. 

Q. Can the premium needed for 

the guarantee ever go up? 

A. The premium required for the 

guarantee can increase due 

to actions taken by the policy 

owner. Actions that affect the 

continuation guarantee include, 

but are not limited to: (1) not 

paying the guarantee premiums 

when they are due; (2) taking 

loans or withdrawals; and (3) 

making policy changes such 

as increasing the death benefit 

or adding riders. For instance, 

if the policy owner increases 

the death benefit amount, the 

guarantee premium he or she 

has been paying may not be 

sufficient to guarantee the new 

higher death benefit for the 

same length of time. In order 

to maintain the continuation 

guarantee for the new death 

benefit, a larger guarantee 

premium may be required. 

Q. Can the premium needed for 

the guarantee ever go down? 

A. Yes. Certain actions by the 

policy owner can cause the 

guarantee premium amount to 

decrease. For instance, if the 

policy owner decreases the 

death benefit amount, the 

premium necessary to 

guarantee the new lower death 

benefit may also decrease. 

Q. What if the policy owner 

makes a late payment or 

skips a payment? 

A. Late Payments: Because we 

know that from time to time 

policy owners may send a 

late payment, we will credit 

payments received within 

28 days of the due date as if 

received on time for the 

purposes of calculating the 

value of the continuation 

guarantee account. Payments 

applied beyond the 28-day 

window may shorten the 

duration or cause the loss of 

the continuation guarantee. 

Skipped Payments: A skipped 

payment may shorten the 

duration or cause loss of the 

continuation guarantee because 

it affects the calculation of the 

continuation guarantee 

account value. If such a 

situation occurs, ContinUL 

Extend gives policy owners the 

option to “catch up” in order 

to preserve the guarantee. In 

general, the best course of 

action is to pay the minimum 

guarantee premium and pay it 

on time. 

Q. Is the continuation guarantee 

affected by the timing of 1035 

exchanges? 

A. The company will credit 1035 

exchange proceeds received 

within a 12-month window 

after policy issue as if received 

on the issue date for purposes 

of calculating the value of 


account. 

Q. How long does the guarantee 

premiums have to be paid and 

how long does the guarantee 

last? 

A. The policy owner can choose 

how long he or she wants the 

guarantee to last, be it 20 or 30 

years, or any length of time up 

to the insured’s age 121. The 

illustration software allows you 

to select the duration of the 

guarantee and will calculate the 

guarantee premium required 

for the length of time chosen. 

In addition, policy owners 

can choose to pre-fund the 

guarantee by selecting the 

number of years over which 

they want to pay premiums. 

Q. If interest rates rise and there 

is enough cash value in the 

policy to carry it to maturity 

(age 121), do the guarantee 

premiums still need to be paid? 

A. No. The guarantee premium 

is only needed if the policy’s 

cash values fall to zero and the 

policy would otherwise lapse. 

The continuation guarantee 

stipulates that as long as the 

guarantee premium is paid, the 

policy will not lapse even if the 

cash value falls to zero (as long 

as the conditions of the 

continuation guarantee have 

been met). 

Q. Can a loan be taken from the 

ContinUL Extend policy and 

how does a loan affect the 

continuation guarantee? 

A. Yes, a policy owner may borrow 

from the policy at any time as 

long as the policy is in force 

and the amount borrowed 

is equal to or less than the 

policy’s loan value (cash value 

less any outstanding loans and 

interest due on the amount 

to be borrowed). Taking a loan 

from the policy can cause the 

continuation guarantee to be 

shortened or lost. 

Q. Is backdating allowed for 

ContinUL Extend? 

A. Yes, backdating is allowed 

within normal company rules. 

The illustration needs to be 

run from the home office.


American General Life Insurance Company 

2727-A Allen Parkway, Houston, Texas 77019 

Policy Form Number 05337 

Accidental Death Benefit Rider Form Number 82012; Children’s Insurance Benefit Rider Form Number 82410; 

Spouse/Other Insured Term Rider Form Number 88390; Terminal Illness Rider Form Number 91401; Waiver of 

Monthly Deduction Rider Form Number 82001 

The United States Life Insurance Company in the City of New York 

70 Pine Street, New York, New York 10270 

Policy Form Number 05337N 

Accidental Death Benefit Rider Form Number ADB791E; Children’s Insurance Benefit Rider Form Number CI791E1; 

Waiver of Monthly Deduction Rider Form Number 82001N 

The underwriting risks, financial and contractual obligations and support functions associated with the 

products issued by American General Life Insurance Company (AGL) or The United States Life Insurance 

Company in the City of New York (USL) are each insurer’s own responsibility. USL is authorized to conduct 

insurance business in New York. 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 and USL. These 

product specifications are not intended to be all inclusive of product information. State variations may apply. 

Please refer to the policy for complete details. 

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. 

For Producer Use Only—Not for Dissemination to the Public 

© 2009 American International Group, Inc. All rights reserved. 

AGLC103075 REV0109

About ContinUL Extend 

With ContinUL Extend, your death benefit 

coverage can be guaranteed, regardless of 

what happens to interest rates or the policy 

value, if you’ve paid enough premium to 

maintain the guaranteed death benefit. 1,2 

You can put your policy to use as part of 

your present financial plan without the 

usual worries about your coverage lapsing. 

Additionally, the duration of the guarantee 

is your choice—so you won’t pay for more 

than you want. 

Discover the advantages of American 

General Life’s and United States Life’s 

ContinUL Extend today. It’s protection that 

will be guaranteed 

to be there when 

you—and the ones 

you love—need it. 

1 

Guarantees are subject to the claims-paying ability of the issuing 

insurance company. 

2 

Assuming interest rates remain sufficient to sustain policy values, 

limiting premium payments to the amount of the monthly 

guarantee premium may reduce your ability to build a higher 

accumulation value. 

3 

Evidence of insurability acceptable to the insurer is required. 

4 

See the riders for complete details. There may be a charge for 

each rider you select. Adding or deleting riders and increasing or 

decreasing coverage under existing riders can have tax consequences. 

Policy owners should consult a qualified tax advisor. 

5 

Subject to the rider’s terms and conditions. 

6 

1035 rules are complex in nature. You may incur surrender 

charges from the previous policy, be subject to new sales and 

surrender charges for the new policy, a new contestability and 

suicide clause, and you should consult with a tax advisor prior 

to exchanging a policy. 


Flexible Premium, Adjustable 

Death Benefit Universal Life Insurance 

Protection with flexibility 

for your future 

Policies Issued by: 




Accidental Death Benefit Rider Form Number 82012 

Children’s Insurance Benefit Rider Form Number 82410 

Spouse/Other Insured Term Rider Form Number 88390 

Terminal Illness Rider Form Number 91401 

Waiver of Monthly Deduction Rider Form Number 82001 

The United States Life Insurance Company in the City of New York, 



Accidental Death Benefit Rider Form Number ADB791E 

Children’s Insurance Benefit Rider Form Number CI791E1 


The underwriting risks, financial and contractual obligations and support 

functions associated with the products issued by American General Life 

Insurance Company (American General Life) or The United States Life 

Insurance Company in the City of New York (United States Life) are each 

insurer’s own responsibility. United States Life is authorized to conduct 

insurance business in New York. 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 

American General Life and United States Life. 


AGLC101924 REV0109 






More Than Protection. Flexibility. 

When you’re selecting a life insurance policy 

as part of your financial plan, you look for much 

more than just a death benefit. You look for 

flexible features that let your policy work for 

you, options that give you the power to 

customize your coverage, and guarantees that 

can keep your policy in force when you need it. 

ContinUL Extend ® offers you the options you 

need to custom-tailor your policy — plus the 

ability to exercise those options as your needs 

change. ContinUL Extend even allows you to 

determine the length of your death benefit 

coverage guarantee. 1 

Policy Benefits 

With ContinUL Extend you select the amount 

of coverage, the duration of the policy’s death 

benefit coverage guarantee, and the length 

of time you want to pay premiums based on 

your individual needs. Your coverage remains 

in force as long as sufficient premium is 

paid to guarantee the death benefit. And, 

the continuation guarantee offers important 

flexibility in funding your policy. You will always 

know the specific amount needed to guarantee 

the death benefit, without being concerned 

about changes in interest rates or other factors 

that could impact the policy’s cash value. 

You can select when to pay your premiums 

and you have the option to pay additional 

premiums to build more Accumulation Value. 2 

You can increase 3 or decrease your death 

benefit to fit your changing needs and select 

a premium payment plan that fits your financial 

needs and goals 


Bradford Wilson, 45, has been working with his 

financial advisor. He wants the maximum lifetime 

coverage guarantee, but only wants to pay premiums 

until his retirement at 68. He schedules 23 annual 

premium payments which are sufficient to guarantee 

coverage for life. If in the future cost becomes a 

concern, he can decrease his annual outlay by paying 

premiums over a longer period of time. Or, if he 

decides that a shorter guarantee would better meet 

his needs, he could shorten his coverage guarantee, 

for example to age 90. 

With ContinUL Extend, Mr. Wilson has the option to 

select the amount and duration of his premiums, and 

the length of his coverage guarantee—flexibility to 

choose what is best for him and his family. 

A selection of riders 4 lets you both further enhance 

your own coverage and extend it to your family. 5 

— Accidental Death Benefit: Provides up to 

$200,000 in additional benefit if the insured’s 

death is accidental 

— Children’s Insurance Benefit: Provides term 

insurance on dependent children up to age 19 

— Spouse/Other Insured Rider: Provides level term 

insurance, up to two times the base policy’s 

death benefit, on the insured’s spouse (this rider 

is not available in the state of New York) 

— Terminal Illness Rider: Provides an 

accelerated death benefit if the insured 

is diagnosed with a terminal illness (this 

rider is not available in the state 

of New York) 

— Waiver of Monthly Deduction: Waives the 

monthly deduction for face amounts up 

to $5 million should the insured become 

totally disabled 

Consumer-Friendly Features 

Because it is not always possible to make 

premium payments when they are due, 

ContinUL Extend allows you to make 

premium payments within a 28-day 

window after the due date and still have 

the death benefit guarantee credited as 

if it were timely received. If you are using 

proceeds from a 1035 exchange, 6 you have a 

12-month window to have the funds treated 

as if received on the issue date of the policy 

for the purpose of maintaining your death 

benefit guarantee. 

About Us 

Just as your family turns to you for security 

and peace of mind, millions of Americans 

turn to American General Life Insurance 

Company or The United States Life 

Insurance Company in the City of New York 

to help protect their families and heirs 

against financial hardships. 

n The most prominent independent rating 

agencies continue to recognize each 

insurer individually in terms of insurer 

financial strength. For detailed information 

about each insurer’s ratings, please visit 

www.americangeneral.com/ratings. 

n Each company’s hallmark is a steadfast 

commitment to our clients and the 

advisors who help safeguard your security


Policy Type 

Key Benefits 

Continuation Guarantee 

(CG) 

Supplemental Coverage 

Flexible premium, adjustable death benefit universal life insurance contract with secondary guarantee provisions 

• The flexible Continuation Guarantee allows policy owners to select their guarantee period and premium funding period 

• Rolling target premiums (AGL version only) 

• New Standard Plus Underwriting Class 

• Consumer-friendly features: for purposes of maintaining death benefit guarantees, premium payments received within 

28 days of a due date are treated as received on time; 1035 exchanges received during the first 12 months after policy 

issue are treated as if received on the issue date 

• Maximum issue age of 90 and best underwriting class available to issue age 80 

• Ability to blend supplemental coverage 

• Allows policy owner to select a year or age to which the death benefit can be guaranteed, if the premium associated 

with that guarantee is paid (subject to the policy’s terms and conditions) 

• Can prevent policy from lapsing even if the cash surrender value of the policy falls to zero, as long as the terms and 

conditions of this guarantee and the policy are satisfied 

• Resulting secondary guarantee premium is lower 

• No 5-year monthly expense charge 

• No surrender charge 

• Higher current cost of insurance than base coverage 

• Supplemental coverage premium does not count toward target 

Minimum Death Benefit $100,000 

Issue Ages 

• 18–80 Preferred Plus No Tobacco underwriting class 

• 18–90 Preferred No Tobacco, Standard Plus No Tobacco, Standard No Tobacco underwriting classes 

• 18–90 Preferred Tobacco, Standard Tobacco underwriting classes (USL version) 

• 18–90 Preferred Tobacco, Standard Tobacco underwriting classes (AGL version) 

• 0–17 Juvenile Rates (AGL version) 

Underwriting 

• Preferred Plus (exceptional mortality risk and non-use of tobacco) 

Classifications 

• Preferred No Tobacco (significantly better than average mortality risk and non-user of tobacco) 

1 

• Standard Plus No Tobacco (better than average mortality risk and non-user of tobacco) 

• Standard No Tobacco (average mortality risk and non-user of tobacco) 

• Preferred Tobacco (better than average mortality risk and user of tobacco) 

• Standard Tobacco (average mortality risk and user of tobacco) 

• Substandard tables up to Table 16 

Death Benefit Options • Option 1 (Level): Death benefit equal to the specified amount 

•Option 2 (Increasing): Death benefit equal to the specified amount plus the accumulation value 

•Option 3 (Return of Premium): Death benefit equal to the specified amount plus the sum of all premiums paid 

(must be elected at issue) 

•Changes from Option 1 to Option 2, from Option 2 to Option 1, and from Option 3 to Option 1 are permitted at any time, 

no other option changes are permitted 

Changes to the 

Specific Amount 

Premiums 

Percent of Premium Load 


• Increases available at any time before age 100, subject to satisfactory evidence of insurability 

2, 3 

• Decreases available at any time after first policy year and before age 100 

• Planned periodic premium cannot be less than $300 annually or $25 monthly 

• A two-year minimum premium may be required in some cases (see illustration) 

• Current charge of 6.50 percent of all premiums (maximum charge of 7.50 percent) 

• Charges vary by issue age, gender and underwriting class 

Monthly Deductions • Current monthly administration fee of $5 (maximum charge of $7) 

• Five-year monthly expense charge per $1,000 of base coverage 

• Current cost of insurance based on net amount at risk 

Surrender Charges Decreasing 19-year surrender charge schedule for base coverage 

Loans 2 

Interest rate of 3.85 percent, payable in advance, or annual effective rate of 4.00 percent 

Preferred Loans 2 

• Available after 10 policy years 

• Credited rate currently equals the loan rate 

• Restricted to policy earnings 

For Producer Use Only— 

Not for Dissemination to the Public 






Withdrawals 

(Partial Withdrawals) 3 

Interest Rates 

Accidental Death 

Benefit (ADB) 

Children’s Insurance 

Benefit (CIB) 

Spouse/Other 

Insured Rider 5 (ART) 

Terminal Illness Rider 5 

Waiver of Monthly 

Deduction 

• Available any time, before insured’s age 100, after the first policy year 

• Death benefit can not be reduced below $100,000 as a result of the withdrawal 

• Current charge of $25 (maximum contractual charge of $50) 

• Applicable pro rata surrender charges are deducted from each withdrawal 

• Guaranteed Interest Rate: 3.00 percent 

• Current Interest Rate: Credited monthly and subject to change 

Available Riders 4 

• Provides an additional death benefit if death is accidental 

• Double ADB is paid if the death is sustained while a fare-paying passenger on a licensed public conveyance 

• Minimum: $25,000 

• Maximum: The lesser of $200,000 or the initial sum insured under the policy 

• Provides term insurance on the dependent children—up to but not including age 19—of the base insured 

• Minimum: 1 unit 

• Maximum: 10 units 

• Provides level term insurance on the insured’s spouse 

• Minimum: $10,000 

• Maximum: Two times the base policy 

• Provides an accelerated death benefit (living benefit) when the insured is diagnosed with a terminal illness (12 months or less to live) 

• One-time acceleration benefit of up to 50.00 percent of the base policy death benefit (less policy loans and excluding riders) 

• Maximum: $250,000 

• Subject to an administrative fee 

• Some states require a signed disclosure form at time of application 

• Waives the monthly deduction while the insured is disabled after six months of disability 

• Premiums are based on the insured’s attained age and increase annually 

• Rider not available for face amounts greater than $5 million 

1 

This underwriting class is not available in all states. 

2 

Policy owners should consult a tax advisor to determine if these transactions trigger a taxable event. 

3 

A change in the policy will not be permitted if the change would result in the policy not meeting the definition of life insurance under Section 7702 of the Internal Revenue Code. Policy owner 

should consult a tax advisor to determine the effect of these provisions. 

4 

See the riders for complete details. There may be a charge for each rider you select. Adding or deleting riders and increasing or decreasing coverage under existing riders may have tax 

consequences. Policy owners should consult a qualified tax advisor. 

5 

This rider is not available in the state of New York. 





Accidental Death Benefit Rider Form Number 82012 

Children’s Insurance Benefit Rider Form Number 82410 

Spouse/Other Insured Term Rider Form Number 88390 

Terminal Illness Rider Form Number 91401 

Waiver of Monthly Deduction Rider Form Number 82001 




Accidental Death Benefit Rider Form Number ADB791E 

Children’s Insurance Benefit Rider Form Number CI791E1 


The underwriting risks, financial and contractual obligations and support functions associated with the products issued by American General Life Insurance Company (AGL) or The United 

States Life Insurance Company in the City of New York (USL) are each insurer’s own responsibility. Guarantees are subject to the claims-paying ability of the issuing insurance company. 

USL is authorized to conduct insurance business in New York. 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 and USL. 

These product specifications are not intended to be all-inclusive of product information. State variations may apply. Please refer to the policy for complete details. 

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. 

FOR PRODUCER USE ONLY—NOT FOR DISSEMINATION TO THE PUBLIC 


AGLC101925 REV0109


Flexible Premium, 

Adjustable Death Benefit 

Universal Life Insurance 

Rolling targets 

maximize 

flexible 

guarantees 

ContinUL Extend ® has a 24-month rolling target premium. So whether your client 

chooses to guarantee to age 90, 121, or somewhere in between—you can still receive 

full target. Consider the example below: 

$1,000,000 ContinUL Extend Male 55* 

Guarantee Period 

Preferred Plus 

Annual Premiums 

Preferred 

No Tobacco 

Standard Plus 

No Tobacco 

Standard 

No Tobacco 

Age 121 11,024 11,995 14,606 15,733 

Age 90 8,544 9,400 12,180 12,888 

Target $13,320 $14,010 $17,170 $18,120 

Good news for producers 

Unlike many others in the guaranteed UL market, ContinUL Extend has a 24-month 

rolling target premium. If the premium paid is less than full target in the first year, you 

have year 2 to get that target filled and receive first year compensation. So where 

your client elects to pay less than the target in the first-year, the first-year commission 

potential is not lost. Rather, it is merely deferred to the second year. 

*Based on illustration dated 10/1/08 for the state of Texas. 

For more information: 

Agency: 

Address: 

Telephone: 

E-mail: 

In the example above, with a Preferred Plus rating and a guarantee to age 90, the 

annual premium is $8,544, but your compensation is based on the $13,320 target. 

Premium Paid 

Available for First Year 

Compensation 

Available for Renewal 

Compensation 

Year 1 $8,544 $8,544 N/A 

Year 2 $8,544 $4,776 $3,768 

In year 2, you can see that more than half the annual premium will result in 

commission paid at first-year rates. From a planning perspective, your client may 

select a longer guarantee such as age 95 or 100. The rolling target advantage is 

available when your client chooses a guarantee best for him! 

Your client can elect a shorter guarantee, and the rate of first-year compensation paid 

is extended over 2 years. It’s just another reason ContinUL Extend should be your 

favorite guaranteed UL. 

Rolling targets not available on ContinUL Extend product issued in New York by The United States Life 

Insurance Company in the City of New York. 

FOR PRODUCER USE ONLY—NOT FOR DISSEMINATION TO THE PUBLIC





Accidental Death Benefit Rider Form Number 82012; Children’s Insurance Benefit Rider Form Number 

82410; Spouse/Other Insured Term Rider Form Number 88390; Terminal Illness Rider Form Number 

91401; Waiver of Monthly Deduction Rider Form Number 82001 

The underwriting risks, financial and contractual obligations and support functions associated with the 

products issued by American General Life Insurance Company (AGL) is the insurer’s own responsibility. 

AGL is not authorized to conduct an insurance business in New York. 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. (AIG), including AGL. 

These product specifications are not intended to be all-inclusive of product information. State variations 

may apply. Please refer to the policy for complete details. 

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. 

FOR PRODUCER USE ONLY—NOT FOR DISSEMINATION TO THE PUBLIC 


AGLC103373 REV0209


It’s better 

by a dozen 

With affordable death 

benefit protection, options 

to customize coverage 

guarantees to fit your client’s 

needs, and flexibility to 

adapt as needs change, 

ContinUL Extend offers a 

dozen reasons that benefit 

both you and your clients: 

For more information: 

Agency: 

Address: 

Telephone: 

E-mail: 

1. Now offering four Nontobacco Underwriting Classes—because not all 

policy owners can be grouped into the “three sizes fit all” category 

2. Allows for maturity date up to age 121 

3. Competitive premiums across all Nontobacco Underwriting Classes 

for the key 50-70 age market 

4. Broader Standard Underwriting Class now available (through age 70) 

5. Flexible guarantee 1,2 allows policy owners to select their guarantee period 

6. Continuation guarantee allows premium design flexibility 

7. Attractive target premiums 

8. Consumer-friendly account processing reduces the impact of late arrival of 

either 1035 money or scheduled premium payments on coverage guarantee 

9. Premiums are commissionable up to the scheduled target for 2 years 

10. Maximum issue age of 90, best underwriting class available to issue age 80 

11. Return of Premium Death Benefit available 

12. Ability to blend supplemental coverage 

So whether for family needs or business needs, there are a dozen good 

reasons why ContinUL Extend is a great choice. 

1 

Guarantees are subject to the claims-paying ability of the issuing insurance company. 

2 

Subject to the policy’s terms and conditions. 

Policies issued by: American General Life Insurance Company, 2727-A Allen Parkway, Houston, Texas 77019. Policy Form Number 05337; Accidental Death Benefit Rider Form Number 82012; 

Children’s Insurance Benefit Rider Form Number 82410; Spouse/Other Insured Term Rider Form Number 88390; Terminal Illness Rider Form Number 91401; Waiver of Monthly Deduction Rider Form 

Number 82001. The United States Life Insurance Company in the City of New York, 70 Pine Street, New York, New York 10270. Policy Form Number 05337N; Accidental Death Benefit Rider Form 

Number ADB791E; Children’s Insurance Benefit Rider Form Number C1791E1; Waiver of Monthly Deduction Rider Form Number 82001N. Subsidiaries of American International Group, Inc. (AIG) 

The underwriting risks, financial and contractual obligations and support functions associated with the products issued by American General Life Insurance Company (AGL) or The United States Life 

Insurance Company in the City of New York (USL) are each insurer’s own responsibility. United States Life is authorized to conduct insurance business in New York. Policies are 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 and USL. 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. 

© 2009 American International Group, Inc. All rights reserved. AGLC103115 REV0109 

For Producer Use Only—Not for Dissemination to the Public 






You asked 

for it ... 

Now you’ve 

got it! 

Term Conversions to 

ContinUL Extend ® ! 

Your persistence pays off! American General Life Companies insurers now 

allow term conversions to our most competitive and flexible guaranteed UL 

plan: ContinUL Extend. Term plans that have been in force for 60 months or 

less may now be converted to our best-selling UL plan as well as most other 

UL plans except for survivorship policies. Conversions to ContinUL Extend 

are not allowed after the first 60 months. There’s no change in compensation 

rules — full compensation will be paid after the first 12 months.* 

Agent Name 

Agency 

Address 

Phone 

E-mail 

Web site 

COMING UP > Beginning January 1, 2010, conversions that occur past the 

first 60 months of the term policy will be allowed ONLY to a special plan 

that is currently in development — meaning conversions to ContinUL 

Extend and most other UL plans will be allowed only during the first 60 

months and not after. This gives you plenty of time to meet with your clients 

and explain the new conversion rule and see if they wish to take advantage 

of moving up to a UL plan now, before the new rule kicks in and their 

conversion options narrow.** 

Contact us today for information on term conversions and 

ContinUL Extend. 




Company in the City of New York 

* Commissions on conversions for the first 12 months are paid only on the increase in premium. After 12 months, normal first-year commissions are paid. 

** Normal conversion requirements as outlined in the term policy being converted will apply. American General Life Insurance Company and The United States Life Insurance Company 

in the City of New York reserve the right, at each insurer’s sole discretion, to add, change or remove the permanent products available for conversion if the policy owner exercises the 

conversion provision. 

Policies issued by American General Life Insurance Company, 2727 Allen Parkway, Houston, TX 77019 and The United States Life Insurance Company in the City of New York, 

70 Pine Street, New York, NY 10270. Subsidiaries of American International Group, Inc. ContinUL Extend Policy Form Number: 05337, 05337N. 

The underwriting risks, financial and contractual obligations and support functions associated with the products issued by American General Life Insurance Company (AGL) or The United States 

Life Insurance Company in the City of New York (USL) are each insurer’s own responsibility. USL is authorized to conduct insurance business in New York. Policies and riders not available in all 

states. Guarantees are subject to the claims-paying ability of the issuing insurance company. 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 and USL. IMPORTANT: Prior to soliciting business, be certain that 

you are appropriately licensed and appointed with the insurer and the product has been approved for sale by the insurer in that state. If uncertain, contact your American General Life Companies 

representative for assistance. 

© 2009 American International Group, Inc. All rights reserved. FOR PRODUCER USE ONLY - NOT FOR DISSEMINATION TO THE PUBLIC. 

AGLC103499 Rev0109

Not everyone 

can get into 

Preferred. 

That’s why 

American General 

Life Companies insurers 

have improved 

Standard classes 

on the updated 

UL Products 1 ! 

1 

Excludes Elite Universal Life G and survivorship UL plans 

Learn more about the 

new and improved 

UL Products, contact: 

Open the door to our expanded 

Standard underwriting classes 

In case you missed it, American General Life Companies insurers have added a new 

Standard Plus No Tobacco class — ideal for the client that just misses getting into 

Preferred. With Standard Plus, the premium jump from Standard to Preferred is now 

more like a hop than a leap. 

We’ve also expanded our Standard classes, both Tobacco and No Tobacco, for clients 

under age 70 to now automatically include cases that are rated through table 2. 

For substandard / rated cases, we still use Special classes for the base rate. This 

Special rate often meets or beats other companies offering a lower underwriting 

classification. Don’t just look at the rating — look at the price, too. 

Better rates for non-preferred are available on the following products: our 

guaranteed UL, ContinUL Extend; our current assumption Elite UL product; our 

multi-global index Elite Global Plus; or our single index with optional lifetime 

guarantee, Elite Index UL. Great prices and great options for your clients, no 

matter what class they are. 

Our Preferred rates are great, but if you aren’t quoting our UL products on your 

less-than-preferred cases, you may be leaving business out on the sidewalk. Give 

everybody a chance to come in! 

Policies issued by: American General Life Insurance Company, 2727-A Allen Parkway, Houston, Texas 77019 

ContinUL Extend Policy Form Number 05337, Elite UL Policy Form Number 03325, 

Elite Global Plus Policy Form Number 08444, Elite Index Policy Form Number 08326 

The United States Life Insurance Company in the City of New York, 70 Pine Street, New York, New York 10270 

ContinUL Extend Policy Form Number 05337N, Elite UL Policy Form Number 03325N, 

Elite Global Plus Policy Form Number 08444N, Elite Index Policy Form Number 08326N 

The underwriting risks, financial and contractual obligations and support functions associated with products issued by 

American General Life Insurance Company (AGL) or The United States Life Insurance Company in the City of New York 

(USL) are each insurer’s own responsibility. USL is authorized to conduct insurance business in New York. Policies and riders 

are not available in all states. 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 AGL or USL representative for assistance. 

© 2009 American International Group, Inc. All rights reserved. AGLC103241 REV0209 

FOR PRODUCER USE ONLY - NOT FOR DISSEMINATION TO THE PUBLIC.

Our All-Seasons Life Portfolio is All About CHOICES 

American General Life Companies insurers now offer two highly competitive permanent life insurance 

products with long-term death benefit guarantees: ContinUL Extend ® and AIG Protection Advantage VUL SM . 

To help you work more effectively with your clients, we wanted to provide you with some broad guidelines 

about when to use which product. The following chart may help you match these products with client needs. 

ContinUL Extend 

• Target ages: 60 years plus, conservative, less 

willing to accept some risk 

• Insurance assets held as part of insurer’s general 

account assets 

• Minimal cash value (CV) throughout life of policy 

• Lower premium structure 

• Rolling targets 

• Dial-a-guarantee period flexibility 

• Known guaranteed death benefit* 

• SNT to Table 2 class available 

AIG Protection Advantage VUL 

• Target ages: 35-60 years, moderate, more 

willing to accept some risk 

• Insurance assets can be invested in the market 

• Potential for greater CV over life of policy 

• Slightly higher premium 

• Rolling targets 

• Dial-a-guarantee period flexibility 

• Reset feature with Guaranteed Minimum Death 

Benefit Rider (GMDB) – potential to capture 

upside market performance 

• Current death benefit might exceed guaranteed 

death benefit* 

To better understand the bushel of opportunities that are yours for 

the picking with ContinUL Extend and AIG Protection Advantage VUL, 

contact your American General Life Companies representative today! 

*To guarantee that the policy will not lapse under the continuation guarantee and GMDB rider, the continuation guarantee account value must be greater than or equal to zero. To ensure this, (1) 

the guarantee premiums required must be applied when they are due (see the section of the policy describing late payments), (2) there can be no loans or withdrawals, and (3) no policy changes 

such as increasing the death benefit or adding riders can be made. These factors may affect the calculation of the continuation guarantee account value and can cause it to fall below zero. 

THE POLICY AND FUND PROSPECTUSES ARE AVAILABLE ONLINE AT www.aigag.com/VUL. BEFORE INVESTING OR SENDING MONEY, PLEASE READ BOTH THE POLICY AND UNDERLYING FUND 

PROSPECTUSES, CAREFULLY CONSIDERING THE FUNDS’ INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES, AS THESE FACTORS WILL AFFECT FUTURE RETURNS. 

Policies issued by: American General Life Insurance Company (AGL), 2727-A Allen Parkway, Houston, Texas 77019. ContinUL Extend Policy Form Number 05337. AIG Protection Advantage VUL 

Policy Form Number 07921. GMDB Rider Form Number 05270. The United States Life Insurance Company in the City of New York (USL), 70 Pine Street, New York, New York 10270. ContinUL 

Extend Policy Form Number 05337N. AIG Protection Advantage VUL Policy Form Number 07921N. GMDB Rider Form Number 05270N. The underwriting risks, financial and contractual obligations, 

and support functions associated with the products issued by AGL or USL are each insurer’s own responsibility. American International Group, Inc. does not underwrite any insurance policy referenced 

herein. USL is authorized to conduct insurance business in New York. Policies, riders and underwriting classes not available in all states. These product specifications are not intended to be all-inclusive 

of product information. State variations may apply. Please refer to the policy and riderfor complete details. Guarantees are subject to the claims-paying ability of the issuing insurance company. 

Variable universal life insurance policies issued by AGL and USL are distributed by American General Equity Services Corporation, member FINRA and a subsidiary of American International Group, 

Inc. 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 and USL. 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. 

© 2009 American International Group, Inc. All rights reserved. FOR REGISTERED REPRESENTATIVE USE ONLY - NOT FOR DISSEMINATION TO THE PUBLIC. 

AGLC103341 Rev0209


PRODUCT 

UPDATE 

March 6, 2009 


S.L.PC/OT.B/PR.H 

Pricing Changes for AG ROP Select-a-Term SM 

Our industry continues to operate in unprecedented financial times that require prudent, often tough decisions. 

As communicated to you in January, we are now announcing pricing changes to the very popular AG ROP 

Select-a-Term SM product issued by American General Life Insurance Company and The United States Life 

Insurance Company in the City of New York. 

Given current statutory reserving requirements, AG ROP Select-a-Term requires substantial amounts of capital 

support. The cost of obtaining this capital support has risen dramatically in the past year. Thus, in general, the 

new premium rates are substantially higher. The updated AG ROP Select-a-Term product is also designed to 

comply with proposed NAIC Guideline CCC and as a result, will have different cash values than the existing 

product (generally higher, occasionally lower). This, too, affects premium rates, but enhances our ability to gain 

widespread regulatory approval of the product and reflects our commitment to provide state-of-the-art products 

to our customers. As a result, we are pleased to announce that AG ROP Select-a-Term is now approved in Utah. 

American General Life the first company with an approved return of premium term product in Utah. 

Other product features and benefits will not change. AG ROP Select-a-Term will continue to offer 17 different 

guaranteed level term durations (15 years and 20 through 35 years), with a guaranteed return of base premiums 

if the insured survives and maintains the policy to the end of the term period. 

Compensation on AGL 31-35 Year Plans 

We think it is important to continue to offer ultra-long guarantee products (31- through 35-year) to our customers 

in these uncertain economic times despite the cost of capital situation. However, compensation on the 31-through 

35-year plans issued by American General Life is reduced slightly – to the same level as the 30-year plan. There 

are no changes to compensation on the 15 or 20- through 30-year plans. There are also no compensation 

changes to any of the plans in the United States Life version of the product. 

We are attaching a summary of the rate changes with this notice. These new rates will be activated in our 

illustration and quoting systems on Monday, March 9. We have also provided the new rates to iPipeline, 

Compulife, VitalTerm and other term quoting vendors. 

Transition Rules 

We cannot accept applications or issue policies for the new rates prior to March 9. Transition rules will be as 

follows. 

■ Applications received on or before Friday, April 10, 2009, will receive the 2008 rates unless the new 2009 

rates are specifically requested. 

■ 

■ 

Applications received after April 10, 2009, will be issued with the new March 2009 rates if approved in the 

state of issue. 

Any state that has not approved the new product as of March 6, 2009, will receive a 30-day transition period 

once it is approved. 

Continued on the next page 





State Approvals 

As of March 6, 2009, the new 2009 rates for AG ROP Select-a-Term are approved in all states EXCEPT 

Connecticut, Maryland, Massachusetts, New Jersey and Oregon. The 2008 rates will remain available in these 

states until the 2009 rates are approved. 

In addition, AG ROP Select-a-Term is not currently available in Pennsylvania. We have re-filed the product in 

Pennsylvania and are awaiting approval. 

We will update you on the approval status in all of these states via our weekly newsletters and producer 

Web site – http://eStation.aigag.com. 

Rapid Rater 

During the transition period, we will maintain two versions of the Rapid Rater term quoting tool on our Web 

site so that you can run either the 2008 or 2009 AG ROP Select-a-Term rates. You can access Rapid Rater at 

http://eStation.aigag.com. 

Marketing Materials 

Marketing materials have been developed and are available for order through Forms Depot. 

ITEM 

AG ROP Select-a-Term Producer Guide (AGL & USL) 

AG ROP Select-a-Term Consumer Guide (AGL & USL) 

FORM NUMBER 

AGLC103111 REV0309 

AGLC103112 REV0109 

Promotional Materials 

Several flyers have been developed to help you promote the new product to the producers in your downline and 

to customers. These flyers contain a customizable area into which your contact information can be inserted. 

They are available for download from our secured Web site for producers. Watch our weekly e-newsletter for 

notice of additional promotional materials as they are developed. 

ITEM 

AG ROP SAT Money Back Producer Flyer (AGL & USL) 

AG ROP SAT Green Producer Flyer (AGL & USL) 

AG ROP SAT Term With A Twist Producer Flyer (AGL & USL) 

AG ROP SAT Look After Future Consumer Flyer (AGL & USL) 

AG ROP SAT Build a Business Consumer Flyer (AGL & USL) 

AG ROP SAT Get Rewarded Consumer Flyer (AGL & USL) 

FORM NUMBER 

AGLC103117 REV0309 

AGLC103202 REV0309 

AGLC103149 REV0309 

AGLC103118 REV0309 

AGLC103119 REV0309 

AGLC103105 REV0209 

The insurers of American General Life Companies have been the term life market leader for many years and we 

remain firmly committed to leading the industry. 

We appreciate your business and your continued trust in American General Life Companies. Please contact your 

regional sales team with any questions. 

Continued on the next page 





AG ROP Select-a-Term accumulates a cash value that starts no later than the fifth policy year. At the end of the level term period, 

the cash value of the in force policy provides an endowment benefit equal to the total of cumulative premiums paid, less any 

charges for substandard ratings, riders and any outstanding loan balance. If needs change and your client surrenders the policy 

or converts it to our permanent insurance they will receive the cash value that has built up in relation to the age of the policy, minus 

any outstanding loan balance. Convertibility feature extends to the earlier of the end of the level-premium period or the insured’s 

attainment of age 70 (age 75 in Florida). 31 to 35-year term periods are not available in the state of Washington. 

Premium rates current as of March 9, 2009; rates may vary by state. Premiums available for other rate classes, ages and payment 

plans. Premium charges depend on evidence of insurability. Premiums increase at the end of the guaranteed term if policy is 

renewed. Death benefit remains level. 



2727-A Allen Parkway, Houston, TX 77019 

Policy Form Number 06001; Accidental Death Benefit Rider 79002; Terminal Illness Endorsement 91401; Child Rider 79410; 

Waiver of Premium Rider 79001; and Disability Income Rider 06301 


70 Pine Street, New York, NY 10270 

Policy Form Number 08701N; Accidental Death Benefit Rider ADB79-1E; 

Child Rider CI79-1E; and Waiver of Premium Rider WP79-1E 

The underwriting risks, financial and contractual obligations and support functions associated with the products issued by 

American General Life Insurance Company (AGL) and The United States Life Insurance Company in the City of New York (USL) 

are each insurer’s own responsibility. USL is authorized to conduct insurance business in the state of New York. Policies and riders 

are not available in all states. Guarantees are subject to the claims-paying ability of the issuing insurance company. These product 

specifications are not intended to be all-inclusive of product information. Please refer to the policy for complete details. 

Important: Prior to soliciting business, be certain that you are properly 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. 






AG ROP Select-a-Term 

Rate Comparison* 

Male, Age 35, $250,000, Annual Premiums 

Preferred Plus Preferred NT Standard NT 

Duration Old New Old New Old New 

20 years 470.00 687.50 602.50 910.00 910.00 1,500.00 

25 years 522.50 690.00 637.50 850.00 1,442.50 1,442.50 

30 years 445.00 610.00 550.00 735.00 812.50 1,067.50 

35 years 580.00 710.00 647.50 822.50 945.00 1,147.50 




20 years 600.00 897.50 775.00 1,165.00 1,225.00 1,932.50 

25 years 687.50 922.50 857.50 1,132.50 1,920.00 1,920.00 

30 years 600.00 842.50 755.00 1,005.00 1,150.00 1,445.00 

35 years 817.50 980.00 922.50 1,120.00 1,330.00 1,535.00 




20 years 862.50 1,300.00 1,125.00 1,720.00 1,795.00 2,547.50 

25 years 1,022.50 1,367.50 1,222.50 1,655.00 2,480.00 2,480.00 

30 years 872.50 1,232.50 1,070.00 1,447.50 1,790.00 2,025.00 

35 years 1,157.50 1,440.00 1,392.50 1,627.50 2,270.00 2,270.00 




20 years 1,307.50 2,050.00 1,662.50 2,472.50 2,625.00 3,642.50 

25 years 1,357.50 1,995.00 1,790.00 2,385.00 3,462.50 3,462.50 

30 years 1,260.00 1,852.50 1,632.50 2,150.00 2,602.50 2,877.50 

35 years NA NA NA NA NA NA 

*New rates effective March 2009 

FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC. 

continued on next page






20 years 800.00 1,160.00 995.00 1,410.00 1,610.00 2,430.00 

25 years 835.00 1,105.00 1,130.00 1,405.00 2,805.00 2,805.00 

30 years 720.00 1,040.00 955.00 1,270.00 1,500.00 1,900.00 

35 years 1,095.00 1,260.00 1,230.00 1,480.00 1,780.00 2,090.00 




20 years 1,070.00 1,510.00 1,370.00 1,955.00 2,340.00 3,485.00 

25 years 1,205.00 1,580.00 1,560.00 2,035.00 3,660.00 3,660.00 

30 years 1,070.00 1,505.00 1,385.00 1,855.00 2,165.00 2,705.00 

35 years 1,575.00 1,815.00 1,785.00 2,125.00 2,535.00 2,920.00 




20 years 1,555.00 2,225.00 2,005.00 2,910.00 3,375.00 4,445.00 

25 years 1,875.00 2,465.00 2,325.00 3,080.00 4,770.00 4,770.00 

30 years 1,610.00 2,295.00 2,025.00 2,755.00 3,525.00 3,895.00 

35 years 2,255.00 2,740.00 2,660.00 3,150.00 4,320.00 4,320.00 




20 years 2,335.00 3,500.00 3,110.00 4,390.00 5,000.00 6,485.00 

25 years 2,545.00 3,730.00 3,465.00 4,555.00 6,540.00 6,540.00 

30 years 2,385.00 3,560.00 3,150.00 4,170.00 5,145.00 5,595.00 







Female, Age 35, $250,000, Annual Premiums 



20 years 455.00 560.00 512.50 622.50 750.00 1,175.00 

25 years 435.00 612.50 545.00 720.00 930.00 1,170.00 

30 years 367.50 535.00 455.00 617.50 625.00 985.00 

35 years 452.50 600.00 515.00 675.00 710.00 1,022.50 




20 years 520.00 665.00 630.00 855.00 1,005.00 1,712.50 

25 years 630.00 877.50 702.50 1,035.00 1,102.50 1,642.50 

30 years 510.00 772.50 590.00 895.00 810.00 1,387.50 

35 years 612.50 855.00 680.00 965.00 1,037.50 1,422.50 




20 years 745.00 1,065.00 880.00 1,292.50 1,312.50 2,207.50 

25 years 775.00 1,262.50 902.50 1,480.00 1,587.50 2,332.50 

30 years 652.50 1,102.50 775.00 1,270.00 1,145.00 1,935.00 

35 years 835.00 1,245.00 1,040.00 1,407.50 1,662.50 1,987.50 




20 years 1,077.50 1,552.50 1,305.00 1,817.50 1,925.00 3,010.00 

25 years 1,057.50 1,817.50 1,335.00 2,122.50 2,645.00 3,267.50 

30 years 967.50 1,647.50 1,217.50 1,892.50 1,745.00 2,742.50 










20 years 650.00 750.00 810.00 915.00 1,340.00 2,085.00 

25 years 735.00 955.00 940.00 1,150.00 1,770.00 1,955.00 

30 years 615.00 890.00 780.00 1,040.00 1,050.00 1,730.00 

35 years 845.00 1,035.00 940.00 1,180.00 1,245.00 1,845.00 




20 years 905.00 1,105.00 1,130.00 1,490.00 1,800.00 2,940.00 

25 years 1,090.00 1,485.00 1,235.00 1,840.00 1,960.00 2,985.00 

30 years 890.00 1,365.00 1,050.00 1,635.00 1,500.00 2,590.00 

35 years 1,170.00 1,560.00 1,300.00 1,815.00 1,790.00 2,700.00 




20 years 1,340.00 1,820.00 1,640.00 2,330.00 2,525.00 3,905.00 

25 years 1,415.00 2,250.00 1,650.00 2,725.00 2,940.00 4,380.00 

30 years 1,190.00 2,030.00 1,425.00 2,395.00 2,255.00 3,690.00 

35 years 1,605.00 2,360.00 1,955.00 2,710.00 2,780.00 3,855.00 




20 years 1,820.00 2,535.00 2,425.00 3,410.00 3,735.00 5,470.00 

25 years 1,935.00 3,360.00 2,345.00 4,015.00 4,135.00 6,250.00 

30 years 1,795.00 3,140.00 2,200.00 3,660.00 3,430.00 5,315.00 



FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC.

SM 


Insurance 

Buy yourself 

a little 

more time 

For more information, contact: 

As you’ve heard, the new AG ROP Select-a-Term SM rates take effect 

March 9, 2009. However, our transition guidelines call for allowing 

applications RECEIVED in the home office by APRIL 10, 2009 to use 

the old (2008) rates. So, there’s still time to lock in the 2008 rates on 

AG ROP Select-a-Term, but the meter is running. 

Go to www.estation.aigag.com and click on the Rapid Rater icon. You’ll 

find both sets of rates for AG ROP Select-a-Term – 2008 and 2009. 

Check them out for yourself, then get in gear! 

Policies issued by: American General Life Insurance Company, 2727-A Allen Parkway, Houston, Texas 77019 

AG ROP Select-a-Term Policy Form Number 06001 

The United States Life Insurance Company in the City of New York, 70 Pine Street, New York, New York 10270 

AG ROP Select-a-Term Policy Form Number 08701N 

The underwriting risks, financial and contractual obligations and support functions associated with products issued by 

American General Life Insurance Company (AGL) or The United States Life Insurance Company in the City of New York 

(USL) are each insurer’s own responsibility. 

USL is authorized to conduct business in New York. Policies and riders are not available in all states. 

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. 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 and USL. 

© 2009 American International Group, Inc. All rights reserved. AGLC103542 

FOR PRODUCER USE ONLY — NOT FOR DISSEMINATION TO THE PUBLIC

Vol. II, Issue 3, March 2009 

Advanced Sales 

strategies 

For more information, contact: 

Loan Regime Split-Dollar with Elite Global Plus SM 

Split-dollar life insurance funding arrangements between employers and employees are effective 

tools to create value for employees and function as “golden handcuffs.” 

• The business funds premiums for life insurance coverage on an employee 

• Provides low cost benefit to the employee during time of low interest rates 

• Effective for C Corporations, S Corporations and various other business forms including LLCs and partnerships 

• Employee owns policy and continues ownership after termination of arrangement 

A Loan Regime Split-Dollar Arrangement is structured with the insured employee owning the policy. The annual 

premiums are paid by the employer and premium payments are treated as loans, in the form of either demand 

loans or term loans. Interest on demand loans adjusts each year, while term loans are a series of loans with a fixed 

rate for a specified time period. 

Typically the loan is a formal written document with a collateral assignment of the policy to the employer. Upon 

death of the employee or termination of the Split-Dollar Arrangement, the employer recovers the outstanding loan 

balance. Recovery can be from the death benefit, cash value of the policy, or the employee paying off the loan 

from other resources. 

The interest rate charged on each annual loan installment should be specified in the contract. If the interest rate is 

not provided, it will be assumed to be the Applicable Federal Rate (AFR) for the specific type of loan. The imputed 

loan interest will be treated as compensation to the employee. The imputed interest will then be treated as being 

paid back from the employee to the employer, as loan interest income to the employer. 

Case Study 

Phil Baker, 50, is an executive, preferred non-smoker. Yukon Steel Corporation wishes to provide him with a Loan 

Regime Split-Dollar life insurance policy as part of his benefits package. 

• Yukon desires to provide life insurance with annual premiums of $100,000 on Mr. Baker’s life using the 

Elite Global Plus SM index universal life insurance policy. 1 

• Under the loan regime scenario, Mr. Baker is considered the borrower and Yukon is considered the lender. 2 

• Mr. Baker will be the owner of the policy, and Yukon will pay the premiums until he retires at age 65. During his 

employment with Yukon, Mr. Baker will assign the benefits of the policy to Yukon up to the total amount of 

premiums paid. At retirement, the loan pay back amount will be $1,500,000. EOY 

EOY Death Benefi t 

Cumulative Loan** 

Net of Loans 

• Each premium payment is a demand loan between Mr. Baker and Yukon which contains no stated interest rate. 3 

With no stated interest rate in the loan, interest will be imputed to the loan at the Applicable Federal Rate (AFR). 4 

The AFR used for demand loans is typically the blended annual rate. 5 

1 

Illustration values based on male, 50, preferred no tobacco underwriting class. Illustration dated February 12, 2009, for the policy to be placed in the state of Texas. 

2 

Treas. Reg. §1.7872-15(a)(2). 

3 

A split dollar demand loan is any split dollar loan that is payable in full at any time on the demand of the lender (or within a reasonable time after the lender’s demand). 

Treas. Reg. §1.7872-15(b)(2). 

4 

Treas. Reg. §1.7872-15(e)(1)(i). 

5 

I.R.C. § 7872(e)(2); Rev. Rul. 86-17, 1986-1 C.B. 377. The imputed interest amounts will be different each year depending on the AFR of the year in question. The July 2008 – 

June 2009 blended AFR rate of 2.80% is used throughout the illustration only to show that the employee is incurring tax liability according to the above facts. 

continued on next page 



strategies 

• The imputed interest is considered compensation-related for Mr. Baker and will be treated as taxable income 

to him. 6 For Yukon, the interest amount will be treated as a payment of compensation for services and 

will be deductible. 7 

• The imputed interest will then be treated as being paid back from Mr. Baker to Yukon as a loan interest payment. 8 

The paid back interest will be considered interest income to Yukon and nondeductible personal interest to Mr. 

Baker for payment of life insurance. 9 

• For Yukon, the deduction created by the transfer of imputed interest will be offset by the imputed receipt of 

interest income from Mr. Baker. 

• At age 65, Mr. Baker can pay back Yukon the loan amount of $1,500,000 from the cash values in the policy or 

other sources. No more premium payments will be made by Yukon and he can maintain the policy for the 

remainder of his life. 10 

• Based on current interest rate assumptions, at age 66 Mr. Baker can receive annual distributions of $95,000 from 

the cash values of the policy until age 80 while projecting that the policy will remain in force without lapsing 

up to age 121. 10 

• Mr. Baker’s net cash flow from the arrangement (not including the death benefit) is the total amount of income 

tax paid on imputed interest of $117,600, less the total amount of distributions of $1,425,000 taken out until 

age 80, which equals a net cash flow of $1,307,400. 

• The only cost to Yukon is the amount of forgone interest income that could have been earned on the money that 

was used to pay the insurance premiums. 

Premium 

Outlay 

Pay back 

Loan to 

employer 

Year 

Age 

Annual Policy 

Outlay 

Yukon 

Employer 

Surrender 

Value 

Amount Paid 

to Employer 

at Death 

Imputed 

Loan 

Interest 

Annual 

Out-of- 

Pocket 

Mr. Baker 

1 51 $100,000 $54,882 $100,000 $2,800 $0 $0 $980 $980 $0 $1,980,882 

5 55 $100,000 $392,855 $500,000 $14,000 $0 $0 $4,900 $4,900 $0 $1,932,855 

10 60 $100,000 $1,000,000 $1,000,000 $28,000 $0 $0 $9,800 $9,800 $149,426 $2,149,426 

15 65 $100,000 $1,500,000 $1,500,000 $42,000 $0 $0 $14,700 $14,700 $735,085 $2,735,085 

16 66 -$1,500,000 $0 $0 $0 -$95,000 $0 $0 -$95,000 $818,532 $2,616,296 

21 71 $0 $0 $0 $0 -$95,000 $0 $0 -$95,000 $765,891 $1,993,271 

26 76 $0 $0 $0 $0 -$95,000 $0 $0 -$95,000 $548,736 $1,271,063 

30 80 $0 $0 $0 $0 -$95,000 $0 $0 -$95,000 $268,368 $606,635 

50 100 $0 $0 $0 $0 $0 $0 $0 $0 $190,739 $190,739 

Annual 

Bonus 

Income 

Tax 

Due 

Net 

Out-of- 

Pocket 

Exec Cash 

Surrender 

Value 

Values as of 2/12/08. Values which appear above as “Imputed Interest” are based on the blended “Applicable Federal Rate”. Both the 

“imputed Interest” and “Income Tax Due” amounts are provided solely to illustrate that the Split-Dollar participant (Mr. Baker) may incur 

tax liability. A tax advisor should be consulted regarding this issue. Assumed index interest crediting rate is 8.87 percent for all years. 

Exec 

Death 

Benefi t 

Imput 

Interest 

Policy 

Loan 

Important Note: Policy’s actual index interest credited may vary widely from case study’s illustrated rate of return (8.87 percent) depending on policy’s 

performance. The combination of lower than illustrated policy performance and higher than illustrated loan interest rates may adversely affect anticipated results. 

It is highly recommended that you request your client to carefully review the policy illustration and consult with his/her personal tax, legal and financial advisors. 

Not an actual case; presented for illustrative purposes only. 

6 

Treas. Reg. §1.7872-15(e)(1)(i); A 35% tax rate is used in the provided illustration to determine the income tax amount due. 

7 

I.R.C. § 162(a)(1). 

8 

I.R.C. § 7872(a)(1). 

9 

I.R.C. § § 61(a)(4) and 163(h). 

10 

Example based on policy’s interest credit rate of 8.87 percent. 

continued on next page 



strategies 

Loan Regime Split-Dollar Case Study 

(2) Baker gives Yukon a 

demand note with no 

stated interest and a 

collateral assignment of 

policy benefi ts. 

Yukon Steel 

C Corporation 

Phil Baker 

(1) Baker purchases 

Elite Global Plus policy 

with an initial death benefi t 

of $2 million. 

(3) Yukon pays $100,000 

annually for Baker’s 

split-dollar premiums 

until retirement. 

American General 

Life Insurance Co. 

(4) Imputed interest not paid to Yukon is 

deductible for Yukon as compensation and 

taxable as income to Baker. 

(5) After imputed interest is transferred 

to Baker, it is retransferred from Baker to 

Yukon and characterized as income 

to Yukon. 

(6) At retirement, Yukon Steel is paid back 

accumulated loan amounts of $1,500,000 

from policy cash value. The policy is no 

longer encumbered by the assignment 

and is maintained by Baker. Baker may 

take distributions of $95,000 annually 

until age 80, based on assumed interest 

crediting rate of 8.87 percent. 

Benefits 

The Loan Regime Split-Dollar Arrangement allows employers to provide a benefit to key employees at a relatively 

low cost to the employee while interest rates remain low. Employers have a great deal of flexibility in structuring 

the split-dollar arrangement and can choose who will be covered, the terms, and the benefit levels without 

restrictions found in other benefit arrangements. In addition, the use of a demand loan gives the employer the 

ability to quickly call the note if needed. 

Other Considerations 

This is not a cost free benefit to the employee. Imputed interest will be included in the employee’s gross income. 

If applicable Federal Rates increase, then the cost of the benefit to the employee also increases. 

Use of an Elite Global Plus policy is subject to the proposed insured’s evidence of insurability and other 

underwriting considerations. 

The Split-Dollar Arrangement must be designed and drafted to avoid the application of Internal Revenue Code 

Section 409A, which addresses deferred compensation. Section 409A will apply if any portion of the loan is 

waived, cancelled, or forgiven. 11 No deduction will be allowed in a corporation-shareholder arrangement. 

Arrangements created with pass-through entities will create taxable income to the individual shareholders, partners, 

or members when the imputed interest is treated as being paid back from the employee to the employer. 

11 

2007-17 I.R.B. 998. 

This document does not include an exhaustive list of possible advantages and disadvantages for the Loan Regime Split-Dollar Arrangement. These materials are for agent use 

only; not for use with the public. The materials included in this document are provided solely as educational information and are for general informational purposes only. Each 

agent should verify the accuracy and reliability of the information (federal gift and income tax statutes, rulings, and regulations contained in this material may have changed 

since the publication of this brochure). American General Life Insurance Company (AGL) shall not be liable for any loss or damage caused by the use of, or reliance on, the tax 

and legal items contain in this material. AGL is solely a provider of the insurance product. AGL, its employees, its representatives, and its agents do not provide tax, legal, 

financial, or valuation advice. A change in the status of the insurance product under federal securities laws could adversely affect the availability of premium financing. 





The underwriting risks, financial and contractual obligations and support functions associated with the policies issued by American General Life Insurance Company (AGL) are the 

insurer’s own responsibility. AGL is not authorized to conduct insurance business in the state of New York. Guarantees are subject to the claims-paying ability of the issuing insurance 

company. Policies and riders not available in all states. State variations apply. 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. 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. Do not imply that the purchase of Elite Global Plus is like an investment or a means of participating in “securities,” “markets,” “stocks,” “stock market 

index,” or “S&P 500 Index.” 

FOR PRODUCER USE ONLY — NOT FOR DISSEMINATION TO THE PUBLIC. 

© 2009 American International Group, Inc. All rights reserved 

AGLC 103451


L&C 

UPDATE 

February 27, 2009 


O.L/C.OT.B/PR.H 

Termination of Non-Producing Agents: New Guidelines 

Background: From time to time, we review agent records to identify agents who have not produced any new 

business over a certain period of time. Those agents identified as “non-producing” are notified that their contract 

and/or appointment is being terminated for lack of production. To prevent confusion and encourage agents to 

regularly submit new business, the following guidelines are being introduced. 

Beginning March 23, 2009, American General Life Companies will mail notification to agents whose contract or 

appointment terminations meet the following criteria. 

Agent Contract Termination: Agent contracts will be terminated if no new business has been placed in the 

last three years. Note: For agents with multiple agent contracts, only those contracts under which no 

production occurred will be terminated. Other contracts with current production will remain active. 

State Appointment Termination: Agents who have not sold a policy in a given state in the past three 

years will be notified that state appointment in those “no production” specific states will be terminated. 

The state appointment termination will not impact renewal commissions, as specified by your producer 

contract. Note: Only state appointments will be terminated. The agent sales contract and state appointments 

will remain active in all states where business was sold in the past three years. 

IMOs/IAG MGAs: A list of agents pending termination will be available on our Web site, eStation.aigag.com, 

for the upline to view beginning Monday, March 9, 2009. This is a preliminary list and will be refreshed prior to 

the March 23 mailing. The list can be accessed via the Agent Lookup functionality within the L&C tab. Please 

note that both the “Download regardless of Agent Status” and “Pending Terminations (Lack of Production only)” 

buttons must be selected to obtain the list. IAG MGAs must also enter their 10-digit agent code. 

Attn IAG MGAs: 

Please note that you must 

use your 10-digit agent code, 

not the 5-digit agency code. 

A letter will be sent notifying the agent of the pending termination; however, no paper correspondence will be 

sent out to the upline hierarchy. 

If business is submitted during the pending termination period, the agent will remain active. 

We require full paperwork for agents desiring appointments after being terminated. 

If you have any questions, please contact our Licensing call center. 






COMPLIANCE 

UPDATE 

March 9, 2009 


o.cop.p/ot.b/pr.g 

Reminder of Company Policy: 

Approval and Use of Producer-Generated Sales Material 

A quick review of the Agency Agreement and the Compliance Manual will remind you the Company must 

approve all producer-generated sales material, including materials distributed or posted on the Internet, prior 

to its use for soliciting or recruiting. Agents and Agencies must also resubmit advertising material if it is to be 

used more than 12 months after the date of the initial or subsequent approval, or if any aspect of the content, 

audience, format or distribution of the material has changed. There are no exceptions to this policy. Note 

the approval is only effective for the purpose for which approval was sought and will expire 12 months from 

the date of approval or sooner if the item is rendered obsolete by Company changes with respect to the 

subject of the sales material. 

For a complete description of what is included as “sales material” and further information concerning 

Company policy for use and approval of sales material and Internet advertising, please refer to the Compliance 

Manual. 

1. Forward your sales material to following: 

American General Life Companies For Faster Service: 

Compliance Department Fax: 414-212-0368 

1200 N. Mayfair Road E-mail: Suzanne_Burow@aigag.com 

Suite 300 

Milwaukee, WI 53226 

2. Required Documentation. In your submission cover note, tell us: 

• How the material will be distributed (newspaper, video, periodical, Internet - including Web site 

address, flyer, mailer, etc.) 

• State(s) where the material will be distributed 

• Frequency of distribution and duration of use 

• Target audience (producer recruiting or consumer) 

• Publication deadlines 

3. Plan Ahead. Submit materials sufficiently in advance (at least one week) to allow for the complete 

review process. 

4. Internet Web Sites. The same guidelines that apply to advertisements in other media apply to those 

found on Internet Web sites. However, the disclosures set forth below must also be included. 

• “Products and agency services may not be available in all states.” 

• “(Name of producer) is licensed for life and health products in (those states where the producer is 

properly licensed).” 

The disclosures should be positioned on the first page of the site if the system is non-interactive, or on 

a separate page (i.e., pop-up screen) if the system is partially interactive. The “pop-up” page must 

appear prior to any actual rates shown. 

Continued on next page 





If the site is interactive, it must have a disclosure notice appear each time the applicant inputs his or her 

state of residence (e.g., applicant inputs state of residence as “Utah,” and the producer is not licensed 

there or the product is not available in that state, then a disclosure must appear which informs the 

applicant of this fact and terminates the process.) Thus, no rates will be shown until the site logic 

determines that the product is available and the producer is properly licensed. 

Under no circumstances should pages be made available to print from a Web site without the above 

referenced disclosures. 

5. American General Life Companies Logo Usage. 

The following guidelines apply when using the American General Life Companies logo. 

• The American General Life Companies logo may be used only on (1) a producer only use/recruiting print 

advertising; or (2) a producer public Web site, provided the American General Life Companies logo is 

hyperlinked to the American General Life Companies Web site, (www.americangeneral.com). 

• For printed advertising distributed for public use, the American General Life Companies logo should be 

relegated to text form only. 

6. Advertising Checklist. 

Please refer to the attached checklist to aid you in the development of advertising materials. 





Sales Material Compliance Checklist 

______ 1. Is the advertising truthful and not misleading in fact or by implication or omission? 

______ 2. Is the form and content accurate, clear and complete so as to avoid deception or the capacity 

or tendency to mislead or deceive? 

______ 3. Is the advertisement free of the following terms: founder’s plan, charter plan, expansion plan, 

profit, profits, profit sharing, deposit, deposit premium, interest plan, savings, savings plan, 

retirement plan, vanish, vanishing premium, pension plan, free, no cost, magical and any other 

misleading or confusing terms? 

______ 4. Does the product marketing name indicate the contract is an annuity or life insurance policy, or 

is the product clearly disclosed as an annuity contract or life insurance policy, as applicable? 

______ 5. Is the product marketing name clear and not confusing or misleading? 

______ 6. Is the full name of the insurer prominently displayed on the front of the material? 

______ 7. Is the use of the terms investment, investment plan or rate of return used only in connection 

with a variable product? 

______ 8. Is the policy form number included? 

______ 9. Does the agency’s name used in the sales material differ from the agency’s licensed name? 

Illustrations 

(and depiction of rates) 

______ 10. Does the policy form that is being advertised allow the use of illustrations or rate depictions in 

its marketing? 

______ 11. Does the illustration or rate depiction contain the required disclosures applicable to the subject 

company and product being marketed? 

______ 12. Is the statistical information accurate, and if applicable, is the source cited? 

______ 13. If for a cash value product, does the advertisement contain appropriate information about 

non-guaranteed elements? 

______ 14. Do the illustrated rates or rate depictions contain and/or disclose all the fees (e.g., surrender 

charges)? 

Tax Effects 

______ 15. If the tax liability is postponed or deferred, does the advertisement clearly and accurately 

describe the nature of the tax effect as tax-deferred rather than tax-free or tax-exempt, and 

are the tax consequences on surrenders disclosed? 

______ 16. For tax-deferred annuities, is the 10% federal tax penalty fully disclosed? 

______ 17. For tax-deferred products, does the advertisement indicate there are no current taxes and 

that taxes will be paid upon withdrawal?

______ 18. Is the following included when tax effects are discussed? 

“Statements made are based on general understanding of current federal tax laws. Such laws and 

interpretation by the Internal Revenue Service may change, and applicable state laws should be 

considered. You should seek qualified legal and tax advice, since (insert name of insurance company) and 

its producers do not give tax or legal advice.” 

Bank Checklist 

(if bank product) 

______ 19. Bank Box included? - no bank or federal agency guarantee/not a deposit/not FDIC insured 

(variable product/may lose money) 

______ 20. Does the piece contain the mandatory disclosure boxes, or is it bulleted? 

______ 21. Is the type size of the disclosure equal to or greater than the predominant type? 

______ 22. Is the disclosure on the front page or the beginning page prior to the introductory text? 

______ 23. Is the relationship between the agency, or insurance company, and the depository institution 

disclosed? 

______ 24. If the bank logo is used, does it appear smaller than that of the agency or insurance company, 

as applicable? 

______ 25. Does the piece clearly indicate that the life insurance policy or annuity is not a bank product? 

______ 26. Are surrender charges accurately described? 

______ 27. Are tax implications clearly described? For example, a 10% federal tax penalty may apply to 

distributions made prior to age 59½. 

______ 28. Does the piece clearly communicate the nature of the product to customers? 

______ 29. Does the piece state that the insurance company, and not the depository institution, stands 

behind the insurance or annuity product? 

Letterhead, Business Cards and Titles 

______ 30. Are the following titles and terms avoided in relation to sale of insurance and annuity instruments: 

financial planner, investment advisor, financial consultant, investment planner, CFP, financial 

counseling, investment counseling, and similar terms or titles? 

______ 31. Does the title reflect no more than the producer’s actual role and proper license? 

______ 32. For bank producers, is the mandatory bank disclosure contained on the card? 

______ 33. For variable producers, is the broker/dealer disclosed along with any required information? 

______ 34. Is the appropriate insurance agency disclosed? 

______ 35. Does it meet company requirements as to use of logos and identification of company?

Endorsements and Testimonials 

(can only be used with non-variable products) 

______ 36. Is the product to be marketed with an endorsement or testimonial of a non-variable product? 

______ 37. Does the endorsement or testimonial state the current view of the speaker? 

______ 38. Has the documentation about the endorsement or testimonial been maintained in the 

appropriate advertising file? 

______ 39. Is the speaker’s relationship to the company disclosed? 

______ 40. If there is consideration paid to the speaker, is it revealed? 

______ 41. Is the endorsement or testimonial accurately stated? 

______ 42. If there is any consideration paid to the endorsing entity, is it disclosed? 

Competitors 

______ 43. Is there any information about competitors? 

______ 44. Is the information about competitors and their products accurate, complete, fair and not 

disparaging? 

Internet and Home Page 

______ 45. Does the advertisement have appropriate disclaimer language regarding sale to U.S. residents 

and product not available in all states? 

______ 46. Has a search been conducted on the Internet for unauthorized communication about this 

product? 

______ 47. Does the Web site avoid attempting to communicate with individuals residing in states where 

the producer is not licensed and appointed by the insurance company and where the products 

to be advertised are not available? 

Gifts 

______ 48. Is there any information about gifts in the advertisement? 

______ 49. Is the value of the gift allowed in the state where the advertisement or solicitation will be made? 

Telemarketing/Telephone Solicitation 

______ 50. Is the producer aware of the federal and applicable state restrictions and prohibitions on 

telemarketing and telephone solicitation, including “do-not-call” requirements? 

______ 51. Does the producer subscribe to the company’s “do-not-call” compliance program? 

______ 52. Does the insurance producer’s telemarketing or telephone solicitation script identify him or 

her as an insurance producer, the purpose of the call, and the type of insurance or annuity 

being offered? 

______ 53. Has any sales material that the producer plans to send out after making a telephone solicitation 

been reviewed for compliance with advertising statutes in the relevant states?


SOFTWARE 

UPDATE 

March 6, 2009 

AGLC Logo on Illustrations Took Effect March 9, 2009 


s.L/A/A&H.OT.b/pr.G 

In our ongoing effort to rebrand marketing materials and other items that reach the client, we’re pleased to 

announce that the American General Life Companies logo appears on product illustrations as of Monday, March 

9, 2009. Updated product names (eliminating the AIG prepend) were also contained in the March 9 update of 

the illustration software. (Two VUL products – AIG Protection Advantage VUL SM and AIG Income Advantage 

Select SM – will continue to carry the AIG prepend until the products are refreshed in May at the same time as 

the annual prospectus updating.) 

Here is a snapshot of the first illustration page showing the new logo and marketing name disclaimers. This graphic 

shows an American General Life illustration; similar changes can be found on United States Life illustrations, too. 

Be sure to run an Internet update on WinFlex to activate these changes. 





SOFTWARE 

UPDATE 

March 11, 2009 

WinFlex Company Version 6.87.01 

The new WinFlex company version is available to all users at this time. 

Please NOTE: 

► 

This download includes .NET dependency files, so it will be VERY large. 

This update includes: 

► 

► 

► 

► 


AG ROP Select-a-Term SM : New product including new rates 

Logo and product name change on the following products: 

■ Accident Expense Plus ■ Select-a-Term SM January 2008 (AGL & USL) 

■ CriticalCare Plus ■ Select-a-Term March 2008 

■ Secure Income Plus ■ Elite Global Plus SM 

■ CancerCare Plus ■ Elite Global Survivor SM 

■ AG HorizonMYG SM ■ ContinUL Extend ® 

■ AG HorizonSelect ® ■ Elite Index SM (logo only) 

■ AG HorizonSecure ■ Elite Survivor Index SM (logo only) 

■ AG HorizonPlus ■ Elite UL SM (logo only) 

■ AG HorizonFlex ® ■ Income Advantage Select SM (AGL & USL, logo only) 

■ AG HorizonChoice ® ■ Survivor Advantage SM (logo only) 

■ AG HorizonVM ■ AG Protection Advantage VUL SM (logo only) 

■ SecurityPlus 

Signature line print change for the following products: 

■ Elite Global Plus 

■ Elite Global Survivor 

■ ContinUL Extend 

NY index print disclosure for the following products: 

■ Elite Global Plus ■ Elite Index 

■ Elite Global Survivor ■ Elite Survivor Index 



► 

► 

ContinUL Extend: WinFlex software message stating that term conversions are not allowed has been 

changed to: 

FOR TERM CONVERSION AVAILABILITY, PLEASE CONTACT YOUR MARKETING DEPARTMENT 

State activations: 

■ Survivor Advantage VUL: Activate MA 

■ Income Advantage Select: Activate NJ 

Internet Update Through WinFlex 

Users with Internet access can easily get this update by selecting “Options > Check for Internet Updates...” 

from their WinFlex menu list. 






SOFTWARE 

UPDATE 

March 11, 2009 

eConnections Desktop Update as of March 9, 2009 



The latest eConnections Desktop update includes: 

► 

► 

► 

► 

Logo and product name change on the following products: 

■ Elite Global Plus SM 

■ Elite Global Survivor SM 

■ Elite Index SM (logo only) 

■ Elite Survivor Index SM (logo only) 

■ Elite UL SM (logo only) 

■ Income Advantage Select SM (AGL & USL, logo only) 

■ Survivor Advantage SM (logo only) 

■ AG Protection Advantage VUL SM (logo only) 

Signature line print change for the following products: 



■ ContinUL Extend 

■ Platinum Universal Life 

■ SI/GI Elite Global Plus 

NY index print disclosure for the following products: 



■ SI/GI Elite Global Plus 

■ Elite Index 

■ Elite Survivor Index 

State activations: 

■ Survivor Advantage VUL: Activate MA 

■ Income Advantage Select: Activate NJ 






WEB SITE 

UPDATE 

Recent Updates to eStation 

March 13, 2009 


O.OT.B/PR.G 

In order to better serve you, we have recently made several exciting updates to our Web site, 

eStation.aigag.com! 

eAppointment: Complete and submit agent appointment paperwork right online – without a scanner or 

start up fees! For complete details, please see bulletin 09-020 (“eAppointment of Agents Coming Soon to 

eStation.aigag.com!” – dated February 20, 2009) 

Termination Letters: Copies of pending termination letters are now available in Agent Lookup for all of the upline 

to view. For more information, see bulletin 09-021 (“Termination of Non-Producing Agents: New Guidelines” – 

dated February 27, 2009). 

Informals: You can now view additional information on your informals, such as the offer made and face amount. 

See below for a sample screen shot. 

E-mail address popup: You no longer need to go into My Account to update your e-mail address. It is now 

captured when site registration is completed! Users will automatically be prompted every 90 days to update their 

e-mail address upon log-in, and will be taken directly to the My Account section to make any changes. Simple! 

You can also help us target our communication by indicating your role in the office. You will be notified by e-mail 

– in a new HTML format – when new commission statements and web messages are received, a pending case 

changes status, etc. Staying informed is effortless! Note: If you prefer not to receive these notifications, you may 

go into the My Account/E-mail Options to discontinue them. 

Please contact your sales Vice President with any questions about eStation.aigag.com.

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