Power Select Builder and Power Select Plus Income product updates

American General is continually analyzing the market to offer clients products that help them protect and plan for their retirement.  Recent drops in interest rates have an impact on those decisions.  The following changes will go into effect January 5, 2015:

  • New graduating Maximum Annual Withdrawal Amount (MAWA) structure, including Age Bands starting at 55 — This can provide for greater income planning flexibility by allowing lifetime income to begin at age 55 and MAWA percentages that increase each year starting at 58.  This provides for more customized and competitive income at specific ages versus 5 year age bands.  Attached is updated Product Comparison Guide with the new MAWA table.
  • Premium Enhancement reduction — the Premium Enhancement rates will reduce to 5% for premium levels $100,000 or greater and to 2% for premium levels less than $100,000.

Transition Rules: In order to accommodate business that was sold prior to January 5, 2015, American General will adhere to the following rules for contracts to be issued.

  • Cash with application: Paper applications must be signed no later than Sunday, 1/4/2015. Paper applications and the initial premium must be received in good order by the American General Annuity Service Center no later than Monday, 1/12/2015.
  • 1035 or transfer business: Both the application and transfer paperwork must be signed no later than Sunday, 1/4/2015 and be received in good order by the American General Annuity Service Center no later than Monday, 1/12/2015. The initial premium must be received no later than Friday, 3/13/2015.

In addition, American General has modified and enhanced the Client Profile Form to improve suitability review and help reduce the number of Not In Good Order (NIGO) cases attributed to incomplete Client Profile Forms. The new Client Profile Form will be available on January 26, 2015.

Recent American General rate changes:

If you should have any questions on these changes, please contact your CreativeOne team at 800.992.2642.

FOR FINANCIAL PROFESSIONAL USE ONLY.  NOT FOR DISTRIBUTION TO THE PUBLIC. 13960 - 2015/1/5 |  I5396AM1 (12/14) Please see the next page for important disclosure Important Notes: Index annuities are not a direct investment in the stock market. They are long-term insurance products with guarantees backed by the claims-paying ability of the issuing insurance company. They provide the potential for interest to be credited based in part on the performance of the specified index, without the risk of loss of premium due to market downturns or fluctuations. Index annuities may not be suitable or appropriate for all clients. Early withdrawals may be may be subject to withdrawal charges. Withdrawals of taxable amounts are subject to ordinary income tax and, if taken prior to age 59½, an additional 10% federal tax may apply. Index annuities are issued by American General Life Insurance Company (AGL).  AGL is a member of the American International Group, Inc. (AIG) family of financial services companies. The underwriting risks, financial and contractual obligations and support functions associated with the annuities issued by AGL are its responsibility. Guarantees are subject to the claims-paying ability of AGL. AGL does not solicit business in the state of New York. Annuities and riders may vary by state and are not available in all states.

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