American General Reintroduces AG Horizon Index Annuity

Contact: 

Rhonda Sloan
Corporate Communications
American General Life Companies
(713) 831-8687
[email protected]

FOR IMMEDIATE RELEASE

American General Reintroduces AG Horizon Index Annuity

Enhanced Bonus, Renewed Focus

HOUSTON, June 8, 2009 — American General Life Companies (AGLC) announced the relaunch of the Horizon Index Annuity, issued by American General Life Insurance Company, as of June 1, 2009. The relaunch features a 66 percent increase in the premium bonus on the 12-year version and a 100 percent increase on the nine-year version of the product, as well as a renewed marketing focus on the two-year, point-to-point crediting methodology.

• The bonus on the nine-year version of the product has been increased from two percent to four percent, a 100-percent improvement, while the bonus on the 12-year version of the product has moved from three percent to five percent, a 66-percent higher rate. The bonuses are credited and vested immediately (but subject to surrender charge). Annuitization is never required.
• The two-year, point-to-point crediting methodology, currently with a 20 percent cap, is the focus of a reinvigorated marketing campaign to underscore the inherent value of that feature in this market.
“The two-year, point-to-point crediting option, with the current 20 percent cap, offers tremendous value and opportunity to consumers who realize the markets and economy may be at a critical inflection point,” said Larry Nisenson, senior vice president of sales for AGLC’s annuity business. “While limiting downside risk has always been a key draw of index annuities, capturing upside opportunities is also critically important. We think this crediting method can position clients well in this market environment in which a face-off remains among bulls and bears. Sweetening the premium bonus, which credits and is vested immediately, adds further value to the customer in an environment where value is being scaled back in many cases.”

Annuities, whether used as a retirement savings vehicle or to create a steady stream of income, can be used as a complete financial solution in and of themselves, or as part of an overall diversification of assets. Because an index annuity pays interest based in part on the performance of financial indices, it offers the potential to earn more interest than traditional fixed deferred annuities.1 An index annuity may be a solution for consumers who are:

• Wary of market risks and want principal protection, but are looking for a potential inflation hedge
• Already contributing the maximum to their 401(k) and are seeking additional tax-deferred options (based on current federal income tax laws)

 

For more information about the AG Horizon Index, Annuity Series, visit www.aglife.com or send an e-mail to [email protected].

1 The annuity owner does not purchase interests or otherwise directly participate in any stock market index, mutual fund, stock or other investment in securities.

Guarantees are subject to the claims-paying ability of the issuing insurance company. This contract is not insured by the FDIC, the Federal Reserve Board or any similar agency. The contract is not a deposit or other obligation of, nor is it guaranteed or endorsed by, any bank or depository institution. If surrendered during the withdrawal charge period, amount received may be less than premium paid. Withdrawals may be subject to Federal and /or State income taxes. A 10% Federal penalty tax may apply if you make withdrawals or surrender your annuity before age 59-1/2. Consult your tax advisor regarding your specific situation.

Annuities issued by:
American General Life Insurance Company
2727-A Allen Parkway, Houston, Texas 77019
Annuity Contract Number 04367, Extended Care Rider Number 04049 or 03049

The underwriting risks, financial and contractual obligations and support functions associated with the annuities issued by American General Life Insurance Company (AGL) are its responsibility. AGL does not solicit business in the state of New York. Annuities and riders may vary by state and are not available in all states. Guarantees are subject to the claims-paying ability of AGL.

American General Life Companies, www.americangeneral.com, is the marketing name for the insurance companies and affiliates comprising the domestic life operations of American International Group, Inc. including AGL. American General-branded companies offer a broad spectrum of fixed and variable life insurance, annuities and accident and health products to serve the financial and estate planning needs of its customers throughout the United States.