American General: Income for Life without winning the lottery

With the Income for Life rider, your cash values can be used to produce a guaranteed stream of lifetime payments to you with optional annual adjustments to help offset cost of living increases. There is no additional cost to add this rider to the policy, only a one-time charge deducted from the account value.

The Income for Life rider is an innovative feature that offers guaranteed income when there is cash value in the policy. The ability to lock in a guaranteed income stream for the rest of your life may be very attractive for those in retirement or nearing retirement.

After activating this feature, the guaranteed income stream will continue for your lifetime and never decrease—even in the face of declining values elsewhere—and the policy will retain a life insurance benefit, a feature other guaranteed income instruments may not provide. Plus with a built-in “step-up” feature, the income amount may increase if your index interest crediting does well. On each policy anniversary, the step-up feature will increase the guaranteed income amount if your account value performance exceeds a target level set in your policy.

A trade-off in activating the Income for Life rider is that the guaranteed income amount may be less than the policy values that might have been produced longterm, but that potential growth in policy values is not guaranteed. The choice of whether or not to activate this feature is up to you.


• Issue Ages: 0-75

• Must have had policy in force for no less than 10 years

• Rider can be exercised when you are between ages 55 and 85

• To exercise the rider, you must not have received any benefit payments from the chronic illness rider (Accelerated Access Solution®)

• To activate the rider, the resulting income amount must not be less than a minimum level set in your policy.

• Optional annual adjustments for cost of living increases: 0%, 1%, 2%, or 3% options

• After the rider is activated, there will always be a life insurance benefit payable to the beneficiaries

• Step up: guaranteed lifetime income amount can increase if index performance exceeds a certain level

• Certain distributions may be taxable if the policy is terminated

• The amount of the one-time charge is non-guaranteed and may change before rider activation, but it will never exceed a guaranteed maximum charge.

• Generally, the Company does not intend to report the benefits as taxable income based on the Company’s current interpretation of tax law. However, under specific scenarios the benefits may be taxable to the recipient. The tax reporting may change based on future IRS guidance. You should consult your personal tax advisor to assess the impact of the benefits on your particular circumstances

AIG is one of the world’s largest insurance organizations and serves more than 18 million customers across America. For nearly a century, we have been dedicated to providing innovative solutions to help our customers secure and enhance their financial futures.