Polaris® Variable Annuities

Transcription

Polaris
Variable
Annuities
®
Polaris Choice IV
Polaris Platinum III
POLARIS
FOR THOSE WHO WANT MORE®
This material must not be distributed without a Polaris product brochure; it cannot be used alone.
Polaris Choice IV
Base contract
with Standard Death Benefit
Maximum issue age: 85 1
1.65%²; $50 contract maintenance fee (in NM: $30); currently waived if contract value is
$75,000 or more on contract anniversary.
Minimum initial investment: $25,000 (Non-Qualified and Qualified); additional: $500
(Non-Qualified and Qualified); $100 if Automatic Payment Plan is used.3
Professional money management
Total portfolio operating expenses range from 0.72% to 1.48% 4 as of 12/31/14 and
1/31/15, respectively.
Dollar cost averaging
Choose from two Dollar Cost Averaging (DCA) fixed accounts: 6-month or 1-year 5
Transfers between variable
portfolios
15 free transfers per contract year, $25 thereafter (in PA and TX: $10)
Automatic asset rebalancing
Quarterly, semiannual or annual available. (Quarterly required with income protection feature)
Withdrawal charges
4-year declining withdrawal charge (applies to each payment): 8-7-6-5-0%.
After 4 full years, withdrawal charges no longer apply to a payment.
Free withdrawals during the
withdrawal charge period
Greater of: 10% of purchase payments not yet withdrawn each contract year or, if an income
protection feature is elected, the maximum annual withdrawal amount. Note: If you are taking
your contract’s Required Minimum Distribution (RMD), any withdrawal charges applicable to
such withdrawals are currently waived.
Systematic withdrawals
Minimum amount: $100. (Available monthly, quarterly, semiannually or annually)
Nursing home waiver
Waives withdrawal charges for certain withdrawals. (Not available in California)
Annuitization
Latest annuity date: 95th birthday. Upon annuitization, the death benefit will no longer apply.
Please contact us prior to your 95th birthday to discuss options.
Optional Features
Income Protection—You may choose one income protection feature
Polaris Income Plus DailySM
7
7
Min. issue age: 45/Max. issue age: 806 Initial: +1.10% Single Life ; +1.35% Joint Life
Fee rate is guaranteed for one year. After one year, fee rate will be adjusted quarterly based
Polaris Income Plus®
on a predetermined, non-discretionary formula.
Min. issue age: 45/Max. issue age: 806
Minimum annual fee rate is 0.60%. Maximum annual fee rate for the life of the contract is
Polaris Income Builder®
2.20% for Single Life; 2.70% for Joint Life.
Family Protection—You may choose the following enhanced death benefit
Maximum Anniversary
Value Death Benefit
Max. issue age: 80 1
+0.25%2
If jointly owned, age is based on older owner unless otherwise indicated. 2Annualized fee deducted from the average daily ending net asset values allocated
to the variable portfolios. 3Additional purchase payments will not be accepted on or after the 86th birthday. However, if an income protection feature is elected,
additional purchase payments will not be accepted on or after the first contract anniversary, regardless of age. 4Deducted from the underlying funds of the applicable
trusts. 5Dollar cost averaging does not ensure a profit or protect against a loss. You should consider your ability to sustain investments during periods of market
downturns. Any fixed rates paid will be paid on a declining balance. 6Single Life: Age is based on older individual if jointly owned. Joint Life: Age is based on younger
individual. Please see a prospectus for more detailed information about age requirements. 7Annualized fee calculated as a percentage of the Income Base, deducted
1
Polaris Platinum III
Base contract
with Standard Death Benefit
Maximum issue age: 85 1
1.30%2; $50 contract maintenance fee (in NM: $30); currently waived if contract value is
$75,000 or more on contract anniversary.
Minimum initial investment: $10,000 (Non-Qualified); $4,000 (Qualified); additional: $500
(Non-Qualified and Qualified); $100 if Automatic Payment Plan is used.3
Total portfolio operating expenses range from 0.72% to 1.48% 4 as of 12/31/14 and
1/31/15, respectively.
Dollar cost averaging
Choose from two Dollar Cost Averaging (DCA) fixed accounts: 6-month or 1-year 5
Transfers between variable
portfolios
15 free transfers per contract year, $25 thereafter (in PA and TX: $10)
Automatic asset rebalancing
Quarterly, semiannual or annual available. (Quarterly required with income protection feature)
Withdrawal charges
7-year declining withdrawal charge (applies to each payment): 8-7-6-5-4-3-2-0%.
After 7 full years, withdrawal charges no longer apply to a payment.
Free withdrawals during the
withdrawal charge period
Greater of: 10% of purchase payments not yet withdrawn each contract year or, if an income
protection feature is elected, the maximum annual withdrawal amount. Note: If you are taking
your contract’s Required Minimum Distribution (RMD), any withdrawal charges applicable to
such withdrawals are currently waived.
Systematic withdrawals
Minimum amount: $100. (Available monthly, quarterly, semiannually or annually)
Nursing home waiver
Waives withdrawal charges for certain withdrawals. (Not available in California)
Annuitization
Latest annuity date: 95th birthday. Upon annuitization, the death benefit will no longer apply.
Please contact us prior to your 95th birthday to discuss options.
Optional Features
Income Protection—You may choose one income protection feature
Polaris Income Plus DailySM
7
7
Min. issue age: 45/Max. issue age: 806 Initial: +1.10% Single Life ; +1.35% Joint Life
Fee rate is guaranteed for one year. After one year, fee rate will be adjusted quarterly based
Polaris Income Plus®
on a predetermined, non-discretionary formula.
Minimum annual fee rate is 0.60%. Maximum annual fee rate for the life of the contract is
2.20% for Single Life; 2.70% for Joint Life.
Family Protection—You may choose the following enhanced death benefit
Maximum Anniversary
Value Death Benefit
Max. issue age: 80 1
+0.25%2
from contract value quarterly. (In certain states, this fee will be deducted pro-rata from the variable portfolios only.) The maximum annualized fee rate decrease or
increase is 0.25% each quarter. This means the fee rate can decrease or increase by no more than 0.0625% each quarter (0.25%/4). Please see prospectus for details.
Maximum issue age may be lower if certain optional features are selected. Please check with your financial advisor for more information.
In New York, Oregon, Texas and Washington, the annual contract administration charge and the fee for Income Builder, Income Plus and Income Plus Daily are
deducted from the variable portfolios only.
Features may not be available in all states and additional state variations may apply. Please see the prospectus for more information.
Polaris Variable Annuities are sold by prospectus only. The prospectus contains the investment objectives, risks, fees,
charges, expenses and other information regarding the contract and underlying funds, which should be considered
carefully before investing. Please contact your insurance-licensed financial advisor or call 1-800-445-7862 to
obtain a prospectus. Please read the prospectus carefully before investing.
Annuities are long-term investments designed for retirement. Early withdrawals may be subject to withdrawal charges. Partial withdrawals may
reduce benefits available under the contract, as well as the amount available upon a full surrender. Withdrawals of taxable amounts are subject
to ordinary income tax and, if taken prior to age 59½, an additional 10% federal tax may apply. An investment in Polaris involves investment risk,
including possible loss of principal. The contract, when redeemed, may be worth more or less than the total amount invested. The purchase of
Polaris is not required for, and is not a term of, the provision of any banking service or activity.
All contract and optional benefit guarantees, including any fixed account crediting rates or annuity rates, are backed by the claims-paying ability
of the issuing insurance company. They are not backed by the broker/dealer from which this annuity is purchased, by the insurance agency from
which this annuity is purchased or any affiliates of those entities and none makes any representation or guarantees regarding the claims-paying
ability of the issuing insurance company.
Polaris Variable Annuities, form number AG-803 (7/13), are issued by American General Life Insurance Company (AGL). In New York,
Polaris Variable Annuities, form number US-803 (12/15), are issued by The United States Life Insurance Company in the City of New York
(US Life). Distributed by AIG Capital Services, Inc. (ACS), Member FINRA, 21650 Oxnard Street, Suite 750, Woodland Hills, CA 91367-4997,
1-800-445-7862. AGL, US Life and ACS are members of American International Group, Inc. (AIG).
© 2016 American International Group, Inc. Polaris® is a registered trademark. All rights reserved.
Not FDIC or NCUA/NCUSIF Insured
May Lose Value • No Bank or Credit Union Guarantee
Not a Deposit • Not Insured by any Federal Government Agency
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aig.com/annuities
Polaris
Variable
Annuity
®
POLARIS
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Offering Optional Income Protection
with Polaris Income Plus® and
WHEN YOUR GOALS ARE
Performance
Protection
Strength
Polaris Variable Annuity
This material must not be used without a Polaris product summary brochure. Polaris Variable Annuities are sold
by prospectus only. The prospectus contains the investment objectives, risks, fees, charges, expenses and other
information regarding the contract and underlying funds, which should be considered carefully before investing.
Please contact your insurance-licensed financial advisor or call 1-800-445-7862 to obtain a prospectus. Please
read the prospectus carefully before investing.
A Polaris Variable Annuity is a long-term investment that combines growth potential, protection features for your
family and optional retirement income choices. It can help you while you are building assets in the accumulation
phase and when you are ready to draw upon those assets during the income phase. Annuities are insurance products
whose gains accumulate tax-deferred and are taxed as ordinary income when withdrawn. Withdrawals of taxable
amounts are subject to ordinary income tax and if taken before age 59½, an additional 10% federal tax may apply.
Contract and optional benefit guarantees are backed by the financial strength and claims-paying ability of
the issuing insurance company. Polaris Variable Annuities are issued by American General Life Insurance
Company (American General Life) except in New York, where they are issued by The United States Life
Insurance Company in the City of New York (US Life).
2
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Polaris
VARIABLE ANNUITY
It all begins with you.
Planning today for the comfortable retirement you want
tomorrow usually starts with these three priorities:
1 Plan for a long retirement
2 Maintain your lifestyle
3 Participate in market gains, while helping to reduce risk
Address all three, and you may have the foundation for a solid retirement plan.
Sound overwhelming? It doesn’t have to be. A Polaris Variable Annuity can
help you secure lifetime income for your retirement—wherever it takes you.
With Polaris, you and your insurance-licensed financial advisor can design
a customized income solution for a portion of your retirement portfolio.
CONTENTS
RETIREMENT PRIORITIES
2
POLARIS INCOME PLUS
7
POLARIS INCOME BUILDER
14
INVESTMENT OPTIONS
16
FAMILY PROTECTION
23
1
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Today’s Priorities
for Retirement
1 Plan
for a long retirement 2 Maintain
your lifestyle
Retirement may last longer than you think. With many
Americans retiring in their early 60s, it’s easy to see
how retirement can last for 30 years or more.
Consider the probability of how long a couple,
both age 65, may live:
50% chance that at least one spouse
will live to age 93
25% chance that one spouse
With inflation, retirement may also cost more
than you think.
Over the past 80 years, inflation has averaged about
3.62% annually. And while that may not seem like a
lot, over time, the impact of even moderate inflation
can be dramatic. Assuming the same rate of inflation
experienced over the past 30 years—approximately
2.6%—potential expenses could more than double
over the next 30 years!
Hypothetical expenses
will live to age 97
Source: Society of Actuaries 2012 Individual Annuitant
Mortality Tables. Assumes a couple, both age 65.
$129,970
(if history
repeats itself)
$60,000
2016
Source: Wilshire Compass, 2016.
2
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2046
Polaris
VARIABLE ANNUITY
3 Participate
in potential gains, while reducing downside risk
Stocks historically have outperformed other types of
investments over long periods of time. Of course, past
performance is not a guarantee of future performance.
1
Growth of a $1 Investment, 1986–2015
While the long-term trend of the stock market has been
positive, there have been periods of significant price
declines, such as the market downturn in 2008, which
can come at the wrong time for your retirement.
Market volatility is to be expected over time.
That’s why it’s important to look for ways to reduce
downside risk.
$19
Stock Market Volatility Since 19002
1/2/1900–12/31/2015
$7
$3
T-Bills
Bonds
Dips
Corrections
Bear Markets
(5% or more)
(10% or more)
(20% or more)
391
124
32
3.4
per year 3
1.1
per year 3
Once every
3.6 years3
Stocks
Your financial advisor can help you
address today’s retirement priorities
as you plan for your retirement.
The chart above is hypothetical and for illustrative purposes only and does not represent any particular investment. Performance illustrated is
not indicative of future results. Performance for specific investments is available from your financial advisor. Your financial advisor can help you
determine what type of investments may be appropriate for you.
Source: Wilshire Compass, 2016. T-Bills are represented by the T-Bill Index. Bonds are represented by the US Core Bond Index. Stocks are
represented by the US Large Cap Core Stocks Index. The T-Bill Index, US Core Bond Index and the US Large Cap Core Stocks Index are
a proxy of the treasury bill market, bond market and equity market. The indices have been constructed by Wilshire with data from various
sources to provide a historical track record. T-Bills and government bonds are subject to interest rate risk, but they are backed by the full faith
and credit of the U.S. Government if held to maturity. The repayment of principal and interest of a corporate bond is guaranteed by the issuing
company, and subject to default, credit and interest rate risk. Stocks are subject to risk, including stock market fluctuation. Keep in mind, you
cannot invest directly in an index; indexes are unmanaged.
2
Source: Ned Davis Research, Inc., based on Dow Jones Industrial Average, daily closes.
3
Average for period shown.
1
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3
Key Questions
to Consider
How will your income needs change
in retirement?
When it comes to planning for retirement income, it’s often assumed that expenses will
remain the same throughout retirement—or possibly even rise due to inflation. However,
research shows that overall expenditures actually decline throughout retirement, so you
may need the most income early in retirement—and less later on.
As you can see illustrated in this table, total expenditures for those age 75+ are 35% less
than those age 55-64.
Total annual expenditures by age
Age
55-64
Age
65-74
Age
75+
Annual Spending
$56,267
$48,885
% Change
55–75+
$36,673
$1,789
$1,417
$683
-62%
Entertainment
2,852
2,988
1,626
-43%
Food & Alcohol
7,257
6,758
4,568
-37%
Healthcare
4,958
5,956
5,708
+15%
18,006
15,838
13,375
-26%
Transportation
9,321
8,338
5,091
-45%
Miscellaneous & Other
4,986
4,430
4,582
-8%
Personal Insurance & Other
7,098
3,160
1,040
-85%
$56,267
$48,885
$36,673
-35%
Apparel & Services
Housing
Total Expenditures
Source: U.S. Department of Labor, Bureau of Labor Statistics, Consumer Expenditure Survey, September 2015
4
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Polaris
VARIABLE ANNUITY
What if you retire at the “wrong” time?
When planning for your retirement income, it’s important to consider the order in which you
encounter positive and negative investment returns, also known as the “sequence of returns.”
During the accumulation years, when income is not being withdrawn, the sequence of returns
has no impact on ending values over time. For example, if an investor with a $100,000
investment earned an average return of 4.9%* over an accumulation period of 10 years,
it makes no difference whether strong returns or negative returns are encountered early on.
The ending value would be $140,146 in either case.
However, once you begin taking withdrawals from your investment, the sequence of returns
can have a long lasting impact on one’s ability to draw income down the road. In the example
below, the average return over ten years for both investors is 4.9%.* But when $5,000 is
withdrawn each year from an initial investment of $100,000, the investor who experienced
negative returns in the early years of retirement was left with $58,419 after 10 years. That’s
$38,631 or 40% less than the investor who encountered strong returns in the early years of
retirement and had $97,050 after 10 years.
The Sequence of Returns Matters
Year
Investor A: Experiences Early Gains
Investor B: Experiences Early Losses
Return
$100,000
Withdrawal
Return
$100,000
Withdrawal
1
27%
$122,000
$5,000
2%
$97,000
$5,000
2
16%
$136,520
$5,000
-29%
$63,870
$5,000
3
21%
$160,189
$5,000
-14%
$49,928
$5,000
4
-10%
$139,170
$5,000
17%
$53,416
$5,000
5
8%
$145,304
$5,000
11%
$54,292
$5,000
6
11%
$156,287
$5,000
8%
$53,635
$5,000
7
17%
$177,856
$5,000
-10%
$43,272
$5,000
8
-14%
$147,956
$5,000
21%
$47,359
$5,000
9
-29%
$100,049
$5,000
16%
$49,936
$5,000
10
2%
$97,050
$5,000
27%
$58,419
$5,000
Average Return
4.9%*
Average Return
4.9%*
*Note: Return shown is the arithmetic average return.
The above illustrations are hypothetical. They are not intended to be indicative of the performance of a specific investment option. The
examples above do not take into consideration any annual fees or taxes, which if shown, would lower results illustrated. Performance
illustrated is not indicative of future results.
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5
Protect Your
Retirement Income
Choose an optional income protection feature
If you’re concerned about market volatility impacting your retirement income, consider an
optional income protection feature. Polaris offers you a choice of income protection features
that are available for an additional annual fee and designed to help you grow and protect your
retirement income—no matter how the market performs.
•Polaris Income Plus (issue ages 45–80)
®
•Polaris Income Builder (issue ages 65–80)
®
Polaris Income Plus and Polaris Income Builder offer you the opportunity to participate in potential
market gains with the assurance of guaranteed lifetime income that is protected from market
volatility. While you’re accumulating money for retirement, these features offer you the opportunity
to receive an income credit to your Income Base for future income. When you’re ready to retire,
you can count on a guaranteed income stream for as long as you—or you and your spouse—live.
Polaris income protection features must be elected at the time of purchase and, once elected, may
not be changed. You may choose only one income protection feature. If you elect Income Plus or
Income Builder, certain investment requirements apply. Please see page 17 for more information.
As an alternative to an optional income protection feature, you can annuitize your contract and
receive income payments for life at no additional cost. Contract and optional benefit guarantees
are backed by the claims-paying ability of the issuing insurance company.
Please note, in certain states and firms, an additional income protection feature with different
parameters may be available. Check with your financial advisor for more information.
Is your retirement income protected
against market volatility?
To help protect against the unexpected, you insure
what’s important to you—whether it’s your home,
your car or even your life. Shouldn’t you consider
doing the same with your retirement income?
6
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Polaris
INCOME PLUS®
Secure lifetime income for retirement with
Polaris Income Plus
®
Polaris Income Plus offers:
•The opportunity for rising income. Income Plus “locks in” to your Income Base the
greater of your investment gains or an annual income credit of up to 6% (calculated as
a percentage of your Income Credit Base) on each contract anniversary during the first
12 contract years (called the “income credit period”). The Income Base is the amount
on which guaranteed withdrawals and the feature’s fee are based. The full 6% income
credit is available in years withdrawals are not taken. A partial income credit is available
during the first 12 contract years provided withdrawals are less than 6%, do not exceed
the maximum annual withdrawal amount, and contract value remains.
•An Income Base that can double after 12 years. On the 12th contract anniversary,
if you have not taken any withdrawals during the first 12 contract years, your Income
Base is guaranteed to be at least 200% of your purchase payments received in the first
contract year. This is referred to as the Minimum Income Base.
•Income that can continue to rise with the market. After the first 12 contract years,
income credits are no longer available. However, your income will continue to have
the opportunity to increase from investment gains on contract anniversaries, provided
contract value remains. Please see the prospectus for complete details.
Depending on investment performance and your income needs, you may not need to rely on
this optional insurance feature, which is available at contract issue for an additional initial fee
rate of 1.10% of the Income Base (Single Life) or 1.35% (Joint Life). The fee rate is guaranteed
for one year. After that time, it will be adjusted quarterly and may decrease or increase based
on a predetermined, non-discretionary formula. The minimum issue age for this feature is 45
and the maximum issue age is 80. Please see the prospectus for details regarding minimum
and maximum fees, age restrictions and other limitations.
7
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Polaris Income Plus
While you’re accumulating
money for retirement
Polaris Income Plus is designed to offer you the potential for more retirement
income by locking into your Income Base the greater of an annual income
credit or investment gains during the first 12 contract years.
ACCUMULATION
A 6% income credit for up to 12 years
A full 6% income credit is
available on each contract
anniversary during the first
12 contract years, in years that
withdrawals are not taken. This
ensures a rising Income Base
for future income—no matter
how the market performs.
Locks in an annual
6% income credit
Income Base
Contract Value
60
Age
Income credit
61
62
63
64
65
Assumed age at contract issue: 60
Important information about the hypothetical illustrations shown
•Hypothetical illustrations are not to scale and are intended solely to depict how Polaris Income Plus can work. The “Accumulation Phase”
examples assume no withdrawals are taken during the period illustrated. Annual market returns illustrated are hypothetical. Hypothetical
contract value assumes an initial purchase payment at contract issue and no additional purchase payments. Illustrations do not reflect
the actual performance of any particular investment. For more information about Polaris Variable Annuity performance, please ask your
financial advisor.
Terms used in this section
8
•Income Base: The amount on which guaranteed withdrawals and the annual fee for the feature are based. It is not a liquidation value nor is
it available as a lump sum. The Income Base is initially equal to the first purchase payment. Purchase payments received in the first contract
year only will be included in the Income Base. We will not accept purchase payments on or after the first contract anniversary if an income
protection feature is elected. On each contract anniversary, the Income Base is set to equal the greater of (a) the highest anniversary value,
or (b) the Income Base plus the income credit amount (if eligible) during the income credit period. The Income Base is automatically evaluated
on contract anniversaries while the contract value is greater than zero and the feature is still in effect, provided you have not reached the
Latest Annuity Date (95th birthday). On the 12th contract anniversary, the Income Base may be increased to the Minimum Income Base
(200% of purchase payments received in the first contract year) if no withdrawals have been taken from the contract. The Income Base will be
increased each time a purchase payment is made during the first contract year. The Income Base will be adjusted for excess withdrawals.
•Income Credit: The amount that may be added to your Income Base, calculated as a percentage of your Income Credit Base.
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Polaris
INCOME PLUS®
An Income Base that automatically increases
ACCUMULATION
On each contract anniversary
during the first 12 contract
years, the Income Base
increases from the greater
of investment gains or a 6%
income credit. When the
Income Base increases from
investment gains, the Income
Credit Base is also increased
to this amount, which in turn
increases the amount of the
6% income credit available in
future years.
Locks in greater of investment gains
or a 6% income credit
Income Base
Contract Value
60
Age
61
62
63
64
65
Income credit
Investment gains
An Income Base that can DOUBLE after 12 years
ACCUMULATION
On the 12th contract anniversary, if you have not taken any withdrawals during the first 12 contract years,
your Income Base is guaranteed to be at least 200% of your purchase payments received in the first contract
year–regardless of market performance. This is referred to as the Minimum Income Base.
Income Base doubles on
12th contract anniversary
Income Base
Contract Value
53
Age
54
55
56
57
58
59
60
61
62
63
64
65
Income credit
•Income Credit Base: A component of the feature that is used to calculate the income credit. Initially, the Income Credit Base is equal to the
first purchase payment. If the Income Base steps up to your highest anniversary value on a contract anniversary, your Income Credit Base
will also step up to this amount. Please note that the Income Credit Base is not increased if your Income Base steps up due to the addition
of the income credit. The Income Credit Base will be increased each time a purchase payment is made during the first contract year. The
Income Credit Base will be adjusted for excess withdrawals.
•Income Credit Period: The period of time over which an income credit may be added to the Income Base. It begins on the contract issue
date and ends 12 years later.
•Note: If you use this contract to fund a retirement plan or account and plan on taking Required Minimum Distributions (RMDs) during the first
12 contract years, you will not be eligible for the Minimum Income Base if any withdrawals are taken prior to the 12th contract anniversary.
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9
Polaris Income Plus
When you’re ready to
take income
Once you begin taking withdrawals for retirement income, Polaris Income
Plus offers you valuable protection from market declines, along with the
opportunity for growth.
INCOME
Your withdrawals are
calculated as a percentage of
the Income Base, an amount
that is protected for life for
income—no matter how the
market performs. Keep in
mind, the Income Base is not
the same as your contract
value. The Income Base is not
a liquidation value, nor is it
available as a lump sum.
An Income Base protected from market volatility
Downside protection at all times
Income Base
Contract Value
65
Age
66
67
68
69
To realize the benefits of Income Plus, you will need to take withdrawals within the parameters of the
feature and income option elected. Withdrawals that exceed the feature’s parameters are known as excess
withdrawals. There is no assurance that withdrawal amounts will keep up with inflation. Withdrawals of taxable
amounts are subject to ordinary income tax and, if taken prior to age 59½, an additional 10% federal tax may
apply. Withdrawals may be subject to withdrawal charges if they exceed certain parameters.
Additional terms used in this section and important information
10
•Excess Withdrawal: Any withdrawal, or portion of a withdrawal, that exceeds the maximum annual withdrawal amount, which then
reduces the Income Base and Income Credit Base proportionately. Please see “Withdrawals” on page 13 for more information.
•Anniversary Value: The contract value on your contract anniversary (including any spousal continuation contributions).
•Highest Anniversary Value: The current anniversary value that is greater than: 1) all previous anniversary values, and 2) purchase
payments received prior to the first contract anniversary.
•The opportunity for rising income (including guaranteed rising income during the first 12 contract years) ends if the contract value is
completely depleted.
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Polaris
INCOME PLUS®
Opportunity to “lock in” investment gains for rising income
INCOME
If the Income Base “steps up” from
investment gains on a contract
anniversary in a rising market, so
does your income.
Guaranteed lifetime income increases
whenever the Income Base “steps up”
Income Base
Contract Value
65
Age
66
67
68
69
Investment gains
Guaranteed rising income
INCOME
Regardless of which Income Plus income option you choose, if you take withdrawals of less than 6% of the
Income Base within the feature’s parameters during the first 12 contract years, you can receive a partial
income credit for guaranteed rising income—even if the market is flat or down. (In a rising market, Income
Plus locks in the greater of investment gains or the available income credit on your contract anniversary.)
During the first 12 contract years, the available 6% income credit is simply reduced by the percentage of
the Income Base withdrawn. For example, if you withdraw 5% in a given year, the available income credit
on the next contract anniversary will be 1% (6% - 5%).
6% - 5% = 1%
Locks in a partial income credit when withdrawals of less
than 6% and within the feature’s parameters are taken
Income Base
Contract Value
Age
65
66
67
68
69
70
71
72
73
74
75
76
77
Income credit
•Required Minimum Distributions (RMDs): If your variable annuity is funding a retirement plan or account, such as an IRA, and you
take a withdrawal to meet your contract’s RMD, you will still be eligible for a partial income credit provided the RMD is less than 6% of
the Income Base. If your contract’s RMD exceeds the feature’s maximums, your Income Credit Base and Income Base will not be reduced,
provided RMDs are set up on the company’s systematic withdrawal program. Please see page 13 for additional information, including
important information concerning withdrawals.
R5544CON.2 (5/16)
11
Polaris Income Plus
A choice of income options
Polaris Income Plus offers you a choice of income options so you can secure
an income stream that’s right for you. At the time of purchase, you can choose
Income Option 1, 2 or 3.
Withdrawals beginning at age 65 or later
Income Options
Maximum Annual Withdrawal
Amount
Protected Income
Payment
(as a percentage of your Income Base)
Income Option 1
6%
(5.5% Joint Life)
4%
Income Option 2
7%
(6.5% Joint Life)
3%
Income Option 3
5% for life
(4.5% for life – Joint Life)
5% for life
Withdrawals beginning before age 65
Income Options
Maximum Annual Withdrawal
Amount
Protected Income
Payment
Income Option 1
5.5%
(5% Joint Life)
3%*
Income Option 2
5.5%
(5% Joint Life)
3%*
Income Option 3
4% for life
4% for life
*If withdrawals begin before age 65 and your Income Base increases due to investment gains on a contract anniversary on or after
your 65th birthday, the protected income payment will automatically increase to 4% of your Income Base.
The protected income payment will be paid in the event the contract value is completely depleted due to
market volatility and/or withdrawals taken within the feature’s parameters.
12
•Age at time of first withdrawal: When determining the maximum annual withdrawal amount percentage, as well as the feature’s
protected income payment percentage, the age at the time of first withdrawal is based on the age of the older individual if the contract is
jointly owned for the Single Life option; age of younger individual for the Joint Life option. This age criteria is also used when evaluating
eligibility for an increase to the protected income payment percentage, if applicable.
R5544CON.2 (5/16)
Polaris
VARIABLE ANNUITY
Additional information about Polaris Income Plus and Polaris Income Builder
Withdrawals
•Annual withdrawals of up to the maximum annual withdrawal amount (MAWA) do not reduce the Income Base and the Income Credit
Base (if applicable). If you take a withdrawal that exceeds the MAWA (known as an “excess withdrawal”), your Income Base and Income
Credit Base will be reduced proportionately by the amount in excess of the MAWA. In addition, with Income Plus, an income credit will not
be available on the next contract anniversary. (Note: with Income Builder, an income credit is not available in years any withdrawals are
taken.) Excess withdrawals that reduce the Income Base and the Income Credit Base also reduce the MAWA that can be withdrawn under
the feature.
•If an excess withdrawal reduces the contract value to zero, the feature will terminate and you will no longer be eligible to take withdrawals
or receive lifetime income payments.
•The amount available for withdrawals may change over time. It may increase on contract anniversaries if the Income Base increases,
or decrease if you take an excess withdrawal that reduces your Income Base. If you select Income Plus Income Option 1 or 2 and your
contract value is completely depleted due to market volatility and/or withdrawals taken within the feature’s MAWA, you will receive the
protected income payment as indicated on page 12. As a result, the amount available for lifetime income will decrease. If you select
Income Plus Income Option 3 or Income Builder and your contract value is completely depleted due to market volatility and/or withdrawals
taken within the feature’s MAWA, the annual amount of lifetime income will not change; annual income paid to you after this point is simply
referred to as the protected income payment.
•If you have elected an income protection feature, withdrawals up to the MAWA are free of withdrawal charges. Withdrawals that exceed
the MAWA may be subject to a withdrawal charge. Please see the enclosed product summary brochure for the withdrawal charge
schedule associated with the variable annuity you may be considering.
•Partial withdrawals reduce other benefits available under the contract, such as the death benefit, as well as the amount available upon
surrender. If you elect Income Plus and take withdrawals during the first 12 contract years that reduce or eliminate the available income
credit, future income may be lower than if a partial or full income credit was added to your Income Base. If you elect Income Builder and
take withdrawals during the first 12 contract years, future income may be lower than if you had waited to take withdrawals and an income
credit was added to your Income Base.
Retirement Plans and Accounts
•If you use this contract to fund a retirement plan or account and you plan on taking Required Minimum Distributions (RMDs), please see
the prospectus for more information and consult with a tax advisor concerning your particular circumstances. Keep in mind, an investment
in a variable annuity within a retirement plan or account provides no additional tax-deferred benefit beyond that provided by the plan
or account.
•These features may not be appropriate for use with contributory IRAs (IRA, Roth and SEP) or retirement plans and accounts (401 and 457) if
you plan to make ongoing contributions. Purchase payments received in the first contract year only are included in the Income Base. We will
not accept purchase payments on or after the first contract anniversary if an income protection feature is elected.
Latest Annuity Date
•If the contract value and the Income Base are greater than zero on the Latest Annuity Date (95th birthday), you will need to select one
of these annuity options: 1) Annuitize the contract value under the contract’s annuity provisions. 2) Annuitize the contract and receive
payments equal to the MAWA at the Latest Annuity Date for a fixed period. The duration of the fixed period will be determined by dividing
the contract value at the Latest Annuity Date by the current MAWA. As long as the covered person(s) is living, this amount will continue for
the specified period after which time the protected income payment amount will be paid until the death(s) of the covered person(s). 3) Elect
any payment option that is mutually agreeable between you and the issuing insurance company. Please see a prospectus for details.
Cancellation
•These features may be cancelled on the 5th contract anniversary or any contract quarter anniversary after that. Amounts allocated to the
Secure Value Account (SVA) will be automatically transferred to the 1-year fixed account, if available. If the 1-year fixed account is not
available, the amounts will be transferred to the Ultra Short Bond Portfolio. Once the cancellation becomes effective, the associated fee
will no longer be charged going forward. These features cannot be re-elected following cancellation.
Other Considerations
•When the Income Base is increased, it may have the effect of increasing the dollar amount of the fee. When the Income Base is decreased
due to excess withdrawals, it may have the effect of reducing the dollar amount of the fee.
•Joint Life option: In the event of a death, spousal continuation of the contract must be elected to provide guaranteed income for the lifetime
of the remaining spouse. The fee for the Joint Life option will continue to be charged. The Joint Life option will automatically be cancelled
if a death benefit is paid and the contract is not continued by the spouse, or if the surviving original spouse dies. The Single Life option will
automatically be cancelled if a death benefit is paid or if the covered person dies.
•Please see the prospectus for additional information about what happens in the event of divorce or other changes affecting the contract
owners or beneficiaries.
•If you decide not to take withdrawals under one of these features, or you surrender the contract, you will not receive the benefit of the
feature. You may pay for the added assurance of one of these features and not need to use it. Fees are non-refundable.
•These features may be automatically terminated under certain circumstances, such as when the contract is annuitized or surrendered.
Other circumstances may also apply.
Please see the prospectus for complete details, including limitations, restrictions and state variations.
13
R5544CON.2 (5/16)
Polaris Income Builder
Predictable lifetime income with
®
If you are 65 or older at the time of purchase, Polaris Income Builder offers guaranteed
lifetime income, along with the opportunity to grow future income if you wait to take
withdrawals.
•A guaranteed annual 6% increase for up to 12 years. Income Builder “locks in”
the greater of your investment gains or an annual 6% income credit on each contract
anniversary during the first 12 contract years (called the “income credit period”) for
future income.
The 6% income credit is available in years that withdrawals are not taken. The income
credit is calculated as a percentage of the Income Credit Base. There is no partial
income credit available with Polaris Income Builder.
•Income that can continue to rise with the market. After the first 12 contract years,
your income will continue to have the opportunity to increase from investment gains on
contract anniversaries, provided contract value remains.
•An Income Base that can double after 12 years. On the 12th contract anniversary,
if you have not taken any withdrawals during the first 12 contract years, your Income
Base is guaranteed to be at least 200% of your purchase payments received in the first
contract year. This is referred to as the Minimum Income Base.
If you elect this feature, the investment requirements described on page 17 will apply. To
realize the feature’s benefits, withdrawals must be taken within the feature’s parameters.
Withdrawals that exceed the feature’s parameters are known as excess withdrawals. There
is no assurance that withdrawal amounts will keep up with inflation. Withdrawals of taxable
amounts are subject to ordinary income tax and, if taken prior to age 59½, an additional
10% federal tax may apply. Withdrawals may be subject to withdrawal charges if they
exceed certain parameters.
Are you retired or nearing retirement?
The optional Polaris Income Builder feature is
available to clients who are age 65 or older. Your
financial advisor can help you choose the income
protection feature that’s right for you.
14
R5544CON.2 (5/16)
Polaris
INCOME BUILDER®
Access up to 5.4% withdrawals when
you’re ready for income
Maximum Annual Withdrawal Amount (MAWA)
Age at time of first withdrawal
Single Life
(one covered person)
Joint Life
(two covered people)
65 or later
5.4% for life
4.9% for life
Once withdrawals begin, your percentage rate will not change.
Depending on investment performance and your income needs, you may not need to rely on
this optional insurance feature, which is available at contract issue for an additional initial fee
rate of 1.10% of the Income Base (Single Life) or 1.35% (Joint Life). The fee rate is guaranteed
for one year. After that time, it will be adjusted quarterly and may decrease or increase based
on a predetermined, non-discretionary formula. The minimum issue age for this feature is 65
and the maximum issue age is 80. Please see the prospectus for details regarding minimum
and maximum fees, age restrictions and other limitations. Contract and optional benefit
guarantees are backed by the claims-paying ability of the issuing insurance company.
Please see page 13 for additional information, including important information concerning withdrawals.
Terms used in this section
•Income Base: The amount on which guaranteed withdrawals and the annual fee for the feature are based. It is not a liquidation value
nor is it available as a lump sum. The Income Base is initially equal to the first purchase payment. Purchase payments received in the first
contract year only will be included in the Income Base. We will not accept purchase payments on or after the first contract anniversary
if an income protection feature is elected. On each contract anniversary, the Income Base is set to equal the greater of (a) the highest
anniversary value, or (b) the Income Base plus the income credit amount (if eligible) during the income credit period. The Income Base is
automatically evaluated on contract anniversaries while the contract value is greater than zero and the feature is still in effect, provided
you have not reached the Latest Annuity Date (95th birthday). On the 12th contract anniversary, the Income Base may be increased to
the Minimum Income Base (200% of purchase payments received in the first contract year) if no withdrawals have been taken from the
contract. The Income Base will be increased each time a purchase payment is made during the first contract year. The Income Base will be
adjusted for excess withdrawals.
•Income Credit: The amount that may be added to your Income Base, calculated as a percentage of your Income Credit Base. With
Income Builder, the income credit is only available in years that you do not take withdrawals. Partial income credits are not available.
•Income Credit Base: A component of the feature that is used to calculate the income credit. Initially, the Income Credit Base is equal to the
first purchase payment. If the Income Base steps up to your highest anniversary value on a contract anniversary, your Income Credit Base
will also step up to this amount. Please note that the Income Credit Base is not increased if your Income Base steps up due to the addition
of the income credit. The Income Credit Base will be increased each time a purchase payment is made during the first contract year. The
Income Credit Base will be adjusted for excess withdrawals.
•Income Credit Period: The period of time over which an income credit may be added to the Income Base. It begins on the contract issue
date and ends 12 years later.
•Excess Withdrawal: Any withdrawal, or a portion of a withdrawal, that exceeds the maximum annual withdrawal amount, which then
reduces the Income Base and Income Credit Base proportionately. Please see “Withdrawals” on page 13 for more information.
•Anniversary Value: The contract value on your contract anniversary (including any spousal continuation contributions).
•Highest Anniversary Value: The current anniversary value that is greater than: 1) all previous anniversary values, and 2) purchase
payments received prior to the first contract anniversary.
•Required Minimum Distributions (RMDs): If your variable annuity is funding a retirement plan or account, such as an IRA, and you take
a withdrawal that exceeds the Maximum Annual Withdrawal Amount to meet your contract’s RMD, your Income Credit Base and Income
Base will not be reduced provided RMDs are set up on the company’s systematic withdrawal program. Keep in mind, if you plan on taking
RMDs during the first 12 contract years, you will not be eligible for the annual 6% income credit in years withdrawals are taken. In addition,
you will not be eligible for the Minimum Income Base if any withdrawals are taken prior to the 12th contract anniversary.
R5544CON.2 (5/16)
15
Investment Options
Volatility Control Portfolios offer growth potential
plus risk management
•Investing in the market can be bumpy. Volatility Control Portfolios can help provide
a “smoother” ride. Portfolios that employ a volatility control approach seek to manage
volatility within the portfolio, reduce the incidence of extreme outcomes (including the
probability of large losses or gains), and preserve long-term return potential. As a
result, a volatility control approach may provide more consistent performance with less
risk from market downturns. However, the risk management strategies used by these
portfolios could limit the upside participation in strong, increasing markets as compared
to a portfolio without such a strategy.
•Volatility Control Portfolios offer you the benefits of professional money management
for long-term growth potential, the opportunity for diversification, and risk management.
Volatility Control Portfolios
•SunAmerica Dynamic Allocation Portfolio®
•SunAmerica Dynamic Strategy Portfolio®
•SA BlackRock VCP Global Multi Asset Portfolio
•SA Schroders VCP Global Allocation Portfolio
•SA T. Rowe Price VCP Balanced Portfolio
•VCP Managed Asset Allocation SAST Portfolio®
•VCP Total Return Balanced® Portfolio
•VCP Value® Portfolio
Volatility is a statistical measure of the frequency and level of changes in the Portfolio’s returns over time without regard to the direction of
those changes. Volatility is not a measure of investment performance. It is possible for a Portfolio to maintain its volatility at or under its target
volatility level while having negative performance returns. There is no assurance that a Portfolio’s investment goal will be met or that investment
decisions made in seeking to manage a Portfolio’s volatility will achieve the desired results.
While diversification and asset allocation are both proven investment strategies, they cannot guarantee greater or more consistent returns over
time and they cannot protect against loss.
16
Please see page 22 for important risks and additional information.
R5544CON.2 (5/16)
Polaris
INVESTMENT REQUIREMENTS
Multiple Ways to Invest
If you elect an optional income protection feature, there are multiple ways you can invest your money
to meet the associated investment requirements.
10% o f your initial and additional investments will automatically be allocated to the
Secure Value Account. The Secure Value Account is a fixed account with a one-year term.
90% of your investment can be invested in one of the following ways.
1. Choose a “Check the Box” Option
SunAmerica Dynamic Strategy Portfolio
SA BlackRock VCP Global Multi Asset Portfolio
VCP Managed Asset Allocation SAST Portfolio
30%
30%
30%
SA T. Rowe Price VCP Balanced Portfolio
VCP Total Return Balanced Portfolio
SA Schroders VCP Global Allocation Portfolio
30%
30%
30%
SunAmerica Dynamic Allocation Portfolio
VCP Value Portfolio
30%
30%
30%
30%
20%
20%
20%
2. Or Build a Customized Allocation
You may choose among these options to meet the 90% total allocation:
•SA BlackRock VCP Global Multi Asset Portfolio
•SA Schroders VCP Global Allocation Portfolio
•SA T. Rowe Price VCP Balanced Portfolio
•VCP Managed Asset Allocation SAST Portfolio
(Capital Research and Management Company)
•VCP Total Return Balanced Portfolio (PIMCO)
•VCP Value Portfolio (Invesco Advisers, Inc.)
The allocation to the options above may not
exceed 50% per individual portfolio.
•SunAmerica Dynamic Allocation Portfolio
•SunAmerica Dynamic Strategy Portfolio
•Bond Portfolios: Corporate Bond (Federated Investment
Management Company); Global Bond (Goldman Sachs
Asset Management International); Government and
Quality Bond (Wellington Management Company LLP);
Real Return (Wellington Management Company LLP);
SA JP Morgan MFS® Core Bond (Multi-managed);
Ultra Short Bond Portfolio (Dimensional Fund Advisors LP)
•Goldman Sachs VIT Government Money Market Fund
•You may use a Dollar Cost Averaging (DCA) fixed account to systematically invest in the investment choices available. Your target
DCA instructions must follow the investment requirements described.
•If you elect the optional income protection feature, participation in quarterly automatic asset rebalancing is also required. Amounts
allocated to the Secure Value Account will not be rebalanced and are not available for transfer as long as the feature is in effect. Keep
in mind, because rebalancing resets the allocation among variable portfolios, it may have a positive or negative impact on performance.
•The investment requirements may reduce the need to rely on an income protection guarantee because they allocate your investment
across asset classes and potentially limit exposure to market volatility. Of course, if you decide not to elect optional income protection,
you may invest in any of the investment options offered in Polaris. Please see the Polaris investments brochure to learn more.
R5544CON.2 (5/16)
17
A choice of actively managed funds-of-funds
The SunAmerica Dynamic Allocation Portfolio (SDAP) and the SunAmerica Dynamic Strategy Portfolio
(SDSP) are actively managed funds-of-funds that draw on the expertise of many leading Polaris money managers.
SDAP and SDSP At-A-Glance
Investment Goals: Seeks capital appreciation and current income while managing net equity exposure
Portfolio
Management
SunAmerica Asset Management, LLC (investment adviser);
AllianceBernstein L.P. (subadviser to the overlay component of each Portfolio)
Investment
Style
SunAmerica Dynamic Allocation Portfolio (SDAP): The fund-of-funds’ equity component
will generally be divided among growth and value portfolios. The Portfolio draws on research
provided by Wilshire Funds Management.
SunAmerica Dynamic Strategy Portfolio (SDSP): The fund-of-funds’ equity component will
generally invest a greater portion of its assets in value portfolios than growth portfolios. The
Portfolio draws on research provided by Morningstar Investment Management LLC.
•When the equity market is expected to experience high levels of volatility, the Portfolio’s
Risk
overall level of equity exposure (“net equity exposure”) may be decreased through the overlay
Management
component to help protect against potential declines. When the equity market is expected to
Process
experience lower levels of volatility, the overall level of equity exposure may be increased to
take advantage of potential return opportunities. Such changes do not increase or decrease the
Portfolio’s interest rate risk.
•The overlay component will generally invest in S&P 500® equity index futures contracts and
options to manage the Portfolio’s net equity exposure.
•The overall level of equity exposure will range from a minimum of 25% to a maximum of 100%.
Over the long term, the average level of equity exposure is expected to be approximately 60%
to 65%
Target Asset Allocation
Overlay
Component
20%
Fund-of-Funds
Component
80%
Target Asset Allocation
Overlay
Component
20%
Fund-of-Funds
Component
80%
T arget asset allocation does not take into account equity exposure that may be obtained through the use of S&P 500 ® equity index futures
and options or other investments in the overlay component. Fund-of-funds allocation shown is a sample.
Additional information
•For each Portfolio, the overall level of exposure to the equity market may be increased or decreased through investments made in both the
fund-of-funds component and the overlay component. These investments are subject to certain risks including stock market and interest rate
fluctuations, as well as additional risks associated with investments in certain asset classes.
•The portfolio operating expenses for a fund-of-funds are typically higher than those of a traditional portfolio because you pay the
expenses of that portfolio and indirectly pay a proportionate share of the expenses of the underlying portfolios.
18
Please see page 22 for important risks and additional information.
R5544CON.2 (5/16)
The fund-of-funds component of the SunAmerica Dynamic Allocation Portfolio (SDAP) and the
SunAmerica Dynamic Strategy Portfolio (SDSP) may invest in the portfolios shown below.*
ASSET CLASS**
Large Core
MONEY MANAGER(S)
Equity Index
SA MFS® Massachusetts
Investors Trust
Growth and Income
Equity Opportunities
Growth
SunAmerica Asset Management, LLC
●
●
Massachusetts Financial Services Company
●
●
Wellington Management Company LLP
OppenheimerFunds, Inc.
Goldman Sachs Asset Management, L.P., Janus Capital
Management LLC, SunAmerica Asset Management, LLC
Wells Capital Management Incorporated
Columbia Management Investment Advisers, LLC
T. Rowe Price Associates, Inc.
The Boston Company Asset Management, LLC
AllianceBernstein L.P.
Marsico Capital Management, LLC
J.P. Morgan Investment Management Inc.
American Century Investment Management, Inc., SunAmerica Asset
Management, LLC, Wellington Management Company LLP
●
—
—
●
●
●
●
●
●
—
—
—
—
—
Large Cap Growth
Large Growth
Blue Chip Growth
Capital Appreciation
Fundamental Growth
SA Columbia Focused Growth
Stock
Capital Growth
SA AB Growth
SA Marsico Focused Growth
Growth-Income
Large Cap Value
Large Value
Small and
Mid Cap Growth
Small and
Mid Cap Value
Small Blend
Specialty
International—
Developed
Markets
International—
Emerging Markets
Global
Investment
Grade Bonds
SA Columbia Focused Value
“Dogs” of Wall Street
SA Legg Mason
BW Large Cap Value
Growth Opportunities
Mid-Cap Growth
Brandywine Global Investment Management, LLC
Invesco Advisers, Inc.
SunAmerica Asset Management, LLC, T. Rowe Price Associates, Inc.,
Mid Cap Growth
Aggressive Growth
Goldman Sachs Asset Management, L.P., Massachusetts Financial
Mid Cap Value
Services Company, SunAmerica Asset Management, LLC
Small Company Value
Franklin Advisory Services, LLC
Small & Mid Cap Value
J.P. Morgan Investment Management Inc., PNC Capital Advisors, LLC,
Small Cap
Real Estate
FIAM LLC
Natural Resources
Technology
Telecom Utility
Foreign Value
Templeton Investment Counsel, LLC
Janus Capital Management LLC, SunAmerica Asset Management, LLC,
International Equity
International Growth and Income Putnam Investment Management, LLC
International Diversified Equities Morgan Stanley Investment Management Inc.
●
●
●
●
—
—
—
●
●
●
●
●
●
●
●
●
—
●
—
●
●
●
●
●
●
●
●
—
●
●
●
●
—
●
●
●
●
●
●
●
—
—
—
●
●
●
●
●
●
●
●
—
Emerging Markets
●
—
Global Equities
Corporate Bond
Diversified Fixed Income
Global Bond
Government and Quality Bond
●
●
●
●
●
●
●
●
●
●
●
●
Ultra Short Bond
High-Yield Bond
Federated Investment Management Company
PineBridge Investments, LLC, Wellington Management Company LLP
Goldman Sachs Asset Management International
J.P. Morgan Investment Management Inc., Massachusetts Financial
Services Company
Dimensional Fund Advisors LP
PineBridge Investments, LLC
●
●
●
●
Real Return
●
●
SA JPMorgan MFS® Core Bond
High-Yield Bonds
Inflation Protected
Securities
SDAP SDSP
PORTFOLIO
* Portfolios will not normally invest in every underlying portfolio at any particular time. The universe of underlying portfolios
and associated money managers is subject to change.
** Primary asset class as determined by SunAmerica Asset Management, LLC.
19
R5544CON.2 (5/16)
Additional Volatility Control Portfolios
The SA BlackRock VCP Global Multi Asset Portfolio is a global tactical asset
allocation strategy that actively controls volatility to seek a more consistent
investment experience.
•Investment goals: Seeks capital appreciation and income while
managing portfolio volatility
•Portfolio management: SunAmerica Asset Management, LLC (investment
adviser); BlackRock Investment Management, LLC (subadviser)
The SA Schroders VCP Global Allocation Portfolio actively invests across
markets and asset classes with the aim to provide growth potential and
control volatility.
•Portfolio management: SunAmerica Asset Management, LLC
(investment adviser); Schroder Investment Management North America Inc.
(subadviser)
The SA T. Rowe Price VCP Balanced Portfolio is a broadly diversified balanced
portfolio, combining the value added from the firm’s expertise in portfolio
design, asset allocation and active management with an integrated approach
for stabilizing the portfolio’s volatility.
(investment adviser); T. Rowe Price Associates, Inc. (subadviser)
20
R5544CON.2 (5/16)
Polaris
INVESTMENT REQUIREMENTS
The VCP Managed Asset Allocation SAST Portfolio is a balanced portfolio that
provides access to American Funds and diversification among equities (stocks),
fixed income (bonds) and money market instruments through the underlying fund
in which the Portfolio invests, while managing volatility.
•Investment goals: Seeks high total return (including income and capital
gains) consistent with the preservation of capital over the long term while
seeking to manage volatility and provide downside protection
•Portfolio management: Capital Research and Management Company
(investment adviser); Milliman Financial Risk Management LLC (subadviser
to the Portfolio’s risk-management overlay)
The VCP Total Return Balanced Portfolio is a balanced portfolio that leverages
the fixed income and equity investment expertise of Pacific Investment
Management Company LLC (PIMCO), with volatility management.
•Portfolio management: SunAmerica Asset Management, LLC (investment
adviser); Pacific Investment Management Company LLC (subadviser)
VCP Value Portfolio
The VCP Value Portfolio is a balanced portfolio that capitalizes on the value
style investing expertise of Invesco Advisers, Inc., while managing volatility.
•Investment goals: Seeks current income and moderate capital
appreciation while managing portfolio volatility
(investment adviser); Invesco Advisers, Inc. (subadviser)
Capital Research and Management Company is the investment manager of the American Funds. SunAmerica Asset Management, LLC serves
as investment adviser to the “Feeder Fund”; Capital Research and Management Company serves as investment adviser to the “Master Fund”.
The VCP Managed Asset Allocation SAST Portfolio (“Feeder Fund”) does not invest directly in individual securities; instead it invests in shares
of the American Funds Insurance Series® Managed Risk Asset AllocationSM Fund (the “Master Fund”). In turn, the Master Fund invests in shares
of an underlying fund, the American Funds Insurance Series® Asset Allocation Fund (the “Underlying Fund”), hedge instruments (primarily
exchange-traded futures) and cash or cash equivalents. Investing in a Feeder Fund will result in higher fees and expenses than investing in a
portfolio that invests directly in securities. Please see the prospectus for more information regarding the master-feeder fund structure.
Milliman Financial Risk Management LLC is not an affiliate or member of Capital Research and Management Company or
The Capital Group Companies.
R5544CON.2 (5/16)
21
Important risks and additional information about Volatility Control Portfolios
•While Volatility Control Portfolios employ risk management processes that seek to manage volatility within the Portfolio, volatility may result from rapid
or dramatic price swings. A Portfolio could experience high levels of volatility in both rising and falling markets. Due to market conditions or other factors,
the actual or realized volatility of a Portfolio for any particular period of time may be materially higher or lower than the target level. Efforts to manage a
Portfolio’s volatility could limit a Portfolio’s gains in rising markets, may expose the Portfolio to costs to which it would otherwise not have been exposed,
and if unsuccessful may result in substantial losses.
•Each Portfolio is subject to derivative and leverage risks. These investment strategies may be riskier than other investment strategies and may result in gains
or losses substantially greater than the cost of the position. While these strategies can be useful and inexpensive ways of reducing risk, they are sometimes
ineffective due to unexpected changes in the market, exchange rates or other factors. When a Portfolio uses derivatives for leverage, the Portfolio will tend
to be more volatile, resulting in larger gains or losses in response to the fluctuating prices of the Portfolio’s investments.
•Each Portfolio is subject to other risks including short sales risk and counterparty risk. Losses from short sales are potentially unlimited, whereas losses
from purchases can be no greater than the total amount invested. Counterparty risk is the risk that a counterparty will not perform its obligations. Small
movements in interest rates (both increases and decreases) may quickly and significantly reduce the value of certain mortgage-backed securities. These
securities are also subject to risk of default, particularly during periods of economic downturn. Credit risk (i.e., the risk that an issuer might not pay interest
when due or repay principal at maturity of the obligation) could affect the value of the investments in the Portfolio.
•Each Portfolio is subject to risk of conflict with insurance company interests given certain aspects of portfolio management are intended to mitigate the
financial risks the insurer faces in connection with optional income protection guarantees.
•Certain Portfolios and their underlying portfolios (if applicable) may engage in frequent trading of portfolio securities to achieve their investment goals.
Active trading may result in high portfolio turnover and correspondingly greater transaction costs.
•Investments are subject to certain risks including stock market and interest rate fluctuations, as well as additional risks associated with investments in certain
asset classes. Please see back cover.
•The Portfolio’s volatility management strategy may adjust the composition of the Portfolio’s riskier assets, such as equity and below investment grade fixed
income securities, and/or may allocate assets away from riskier assets into cash or short-term fixed income securities.
•In selecting equity and fixed income investments, judgments that evaluate the attractiveness of countries and sectors may prove incorrect.
•The value of the Portfolio’s foreign investments may fluctuate due to changes in currency exchange rates.
•The Portfolio may make substantial use of derivatives. As a result, performance could be primarily dependent on securities the Portfolio does not own.
•In selecting equity and fixed income investments, judgments that evaluate the attractiveness of countries and sectors may prove incorrect.
•The Portfolio’s approach for stabilizing volatility may not produce the desired results.
•Hedge assets include cash and liquid transparent financial futures contracts that are tailored to the underlying holdings in the American Funds Insurance
Series Asset Allocation Fund. Futures contracts on major equity, U.S. Treasury bonds, and currencies are typically used. Futures contracts are used only to
reduce risk relative to a long-equity portfolio. In situations of extreme market volatility, the exchange-traded futures could potentially reduce the Master
Fund’s net economic exposure to equity securities to 0%.
•The Portfolio is subject to the risk that the strategy that will be used to stabilize the volatility of the Master Fund and reduce its downside exposure may not
produce the desired result. In addition, the use of the risk-management overlay may cause the Master Fund’s return to lag that of the underlying fund in
certain rising market conditions.
•The Portfolio may invest a significant portion of its assets in derivatives. As a result, performance could be primarily dependent on securities the Portfolio
does not own.
•The Portfolio will generally achieve equity exposure by investing in derivatives rather than through direct investments in equity securities. The Portfolio may
also invest directly in equity securities and ETFs to achieve its goal.
VCP Value Portfolio
•Target volatility level is not a total return performance target. Total return performance is not expected to be within any specified target range.
•The ability to achieve current income may be adversely affected if dividends on the Portfolio’s equity securities are reduced or discontinued or
if prevailing interest rates on the Portfolio’s debt securities decline.
•Although the Portfolio seeks investments in undervalued companies, judgments that a particular security is undervalued may prove incorrect.
Please see back cover for additional risks associated with the variable portfolios.
22
R5544CON.2 (5/16)
Valuable Protection
for Your Family
Choose the protection that’s right for you and your family
The Standard Death Benefit is automatically included at no additional cost. It provides the beneficiaries you
name on your contract with the greater of contract value or purchase payments (adjusted for withdrawals).
The Maximum Anniversary Value Death Benefit provides enhanced protection by locking in investment gains
for your family. This optional feature is available for an additional fee rate of 0.25%. The maximum issue age is 80.
This death benefit provides the beneficiaries you’ve named with the greatest of:
•Contract value; or
•Purchase payments (adjusted for withdrawals); or
•The highest value of your contract on any contract anniversary prior to your 83rd birthday
(adjusted for withdrawals and purchase payments since that anniversary).
When calculating either death benefit, adjustments are made to account for additional purchase payments,
withdrawals, and any charges applicable to withdrawals. The calculation will differ if Polaris Income Plus or
Polaris Income Builder is elected. Please see “additional information” below for details.
The spousal continuation option. If your spouse is the joint owner or sole beneficiary of your contract,
the spousal continuation option allows your spouse to continue the contract rather than take the death benefit
distribution. This option is available with either of the death benefits at no additional cost. If the spousal
continuation option is chosen, the contract value is “stepped up” to equal the death benefit value that would
have been paid. Additionally, the death benefit available to the surviving spouse may continue to provide
valuable protection for beneficiaries, depending on the spouse’s age at the time of spousal continuation.
Please see the prospectus to learn more.
Additional information about death benefits, including definitions
•Contract value: The value of the contract at the time all required paperwork, including proof of death, is received.
•Anniversary value: The contract value on each contract anniversary.
•Purchase payments: The money you invest in your variable annuity, as well as any additional money you invest after your initial purchase.
No additional purchase payments are accepted on or after your 86th birthday. However, if an income protection feature is elected, additional
purchase payments will not be accepted on or after the first contract anniversary, regardless of age.
•Your age at the time your contract is issued will determine the availability of the Maximum Anniversary Value Death Benefit. Once elected,
this death benefit option may not be changed or cancelled.
•If you are a spouse age 86 or older continuing a contract under spousal continuation, the contract’s death benefit will be equal to contract value.
•If you elect the Polaris Income Plus or Polaris Income Builder income protection feature and take withdrawals before your 81st birthday that
are within the maximum annual withdrawal amount, the death benefit will be reduced by the amount withdrawn. If you do not elect an income
protection feature (or you elect one and take withdrawals on or after your 81st birthday), the death benefit is reduced for withdrawals in the
same proportion that the withdrawal reduced the contract value on the date of your withdrawal. Please see the prospectus for additional details,
including the adjustment for excess withdrawals taken with Polaris Income Plus and Polaris Income Builder.
•If your variable annuity contract is annuitized, the death benefit no longer applies. However, if you die during the annuity payout phase,
your beneficiary may receive any remaining guaranteed income payments, depending upon which annuity payout option you selected.
R5544CON.2 (5/16)
23
A Powerful Combination
of Benefits
Key product
features
Variable
Annuities
Fixed
Annuities
Tax advantages—including tax deferral
and tax-free rebalancing
●
Participation in the growth potential
of the stock market
●
Protection features that can “insure”
against market risk for an additional fee
●
●
Asset allocation program
●
Opportunity for a fixed rate of return
●
●
Beneficiary protection
●
●
Flexible income options
●
●
Predictable income stream
●
●
Guaranteed lifetime income
●
●
Subject to limitations*
Subject to limitations*
Liquidity
Mutual
Funds
Stocks
Bonds
●
●
(tax deferral)
(may be tax-free)
●
●
●
●
(sometimes)
●
●
●
●
●
• Investments in stocks, mutual funds and variable annuities are subject to risk, including possible loss of principal. The variable
annuity contract, when redeemed, may be worth more or less than the total amount invested.
• Bonds: Government bonds and Treasury bills are subject to interest rate risk, but they are guaranteed by the U.S. Government as
to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value. Interest
from Treasury bills and U.S. Government bonds is exempt from state and local taxes, but may be subject to federal income tax. The
repayment of principal and interest of a corporate bond is guaranteed by the issuing company, and subject to default, credit and
interest rate risk.
• Variable annuities, unlike other types of investments, offer insurance features (such as a guaranteed death benefit and annuity
income options) that you pay for through what is called a separate account fee. Variable annuities are subject to additional fees,
including a contract maintenance fee, costs for optional features (if elected), and the expenses related to the operation of the variable
portfolios. You can annuitize your contract and receive annuity income payments for life for no additional fee, or you may choose an
optional income protection feature. Optional protection features are available for an additional fee. Restrictions and limitations apply.
Guarantees, including optional benefits, are backed by the claims-paying ability of the insurer. Any investment in a retirement plan or
account (such as an IRA) automatically receives the benefit of tax deferral. An investment in a variable annuity provides no additional
tax-deferred benefit beyond that provided by the retirement plan or account. Annuities are insurance products whose gains accumulate
tax-deferred and are taxed as ordinary income when withdrawn.
• Fixed annuities offer a fixed rate of return guaranteed by the issuing insurance company. They generally offer a range of income
options, including guaranteed lifetime income through annuitization.
• Mutual funds are different from variable annuities in a number of ways. For example, mutual funds serve various short and longterm financial needs, while variable annuities are designed specifically for long-term retirement savings. Mutual funds are investment
products whose gains are generally taxable for the year in which they are earned. Mutual funds earn money for an investor in several
ways, which can be taxed at different rates. Capital gains and dividends may be taxed at a rate that is lower than the income tax rate;
interest is generally taxed at income tax rates.
*Early withdrawal charges apply if withdrawals exceed the contract’s free withdrawal provisions during the withdrawal charge period. Withdrawals
of taxable amounts are subject to ordinary income tax, and if taken prior to age 59½, an additional 10% federal tax may apply.
Be sure to talk to your financial advisor about your particular situation and which investments may be right for you before you invest.
24
R5544CON.2 (5/16)
Polaris.
For Those Who Want More
®
For more than two decades, Polaris Variable Annuities have been
helping investors address their long-term retirement needs.
The life insurance companies that issue Polaris Variable Annuities
are leading providers of variable annuities in the U.S. Together these
companies rank among the top six variable annuity issuers in the U.S.
(Source: Morningstar. Ranking based on assets as of 9/30/15.)
Your financial advisor can help you determine if Polaris is right for you.
25
R5544CON.2 (5/16)
Additional risks associated with the variable portfolios
•There is no assurance that a Portfolio’s investment process will achieve its specific investment objectives.
•Portfolios that invest in stocks and bonds are subject to risk, including stock market and interest rate fluctuations. Portfolios that invest in
bonds are subject to changes in their value when prevailing interest rates change. Portfolios that invest in non-U.S. stocks and bonds,
including emerging market investments, are subject to additional risks such as political and social instability, differing securities
regulations and accounting standards, limited public information, plus special risks that may include foreign taxation, currency risks,
risks associated with possible differences in financial standards, and other monetary and political risks associated with future political
and economic developments.
•Investments that concentrate on one economic sector or geographic region are generally subject to greater volatility than more diverse
investments. Portfolios that invest in technology companies are subject to additional risks and may be affected by short product cycles,
aggressive pricing, competition from new market entrants and obsolescence of existing technology. Portfolio returns may be considerably
more volatile than a portfolio that does not invest in technology companies.
•Portfolios that invest in small and mid-size company stocks are generally riskier and more volatile than portfolios that invest in larger,
more established companies.
•Portfolios that invest in high-yield bonds may be subject to greater price swings than portfolios that invest in higher-rated bonds.
The payment of interest and principal is not assured.
•Portfolios that invest in real estate investment trusts (REITs) involve risks such as refinancing, economic conditions in the real estate industry,
changes in property values, dependency on real estate management, and other risks associated with a concentration in one sector or
geographic region.
•Investments in securities related to gold and other precious metals and minerals are speculative and impacted by a host of worldwide
economic, financial and political factors.
•Money market instruments generally offer stability and income, but an investment in these securities, like investments in other portfolios, is
not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. An investment in the Goldman
Sachs VIT Money Market Fund is subject to potential loss of principal; however, the portfolio seeks to maintain a net asset value of $1.
Additional information about the SunAmerica Dynamic Portfolios
•Wilshire Funds Management is the global investment unit of Wilshire Associates Incorporated. Wilshire is a registered service mark of
Wilshire Associates Incorporated, Santa Monica, California. All other trade names, trademarks, and/or service marks are the property
of their respective holders. Wilshire is not an affiliate of SunAmerica Asset Management, LLC or the insurance companies listed below.
•Morningstar Investment Management LLC provides consulting services to SunAmerica Asset Management, LLC but is not acting in the
capacity of advisor to individual investors. The Morningstar name and logo are either trademarks or service marks of Morningstar.
Morningstar is not affiliated with SunAmerica Asset Management, LLC or the insurance companies listed below.
AllianceBernstein L.P. is not an affiliate of SunAmerica Asset Management, LLC or the insurance companies listed below.
Money managers, with the exception of SunAmerica Asset Management, LLC, are not affiliated with American General Life, US Life or
American International Group, Inc. (AIG).
This material was prepared to support the marketing of Polaris Variable Annuities. Please keep in mind that American General Life Insurance
Company, The United States Life Insurance Company in the City of New York, and their distributors and representatives may not give tax,
accounting or legal advice. Any tax statements in this material are not intended to suggest the avoidance of U.S. federal, state or local tax
penalties. Such discussions generally are based upon the company’s understanding of current tax rules and interpretations. Tax laws are
subject to legislative modification, and while many such modifications will have only a prospective application, it is important to recognize
that a change could have retroactive effect as well. Please seek the advice of an independent tax advisor or attorney for more complete
information concerning your particular circumstances and tax statements made in this material.
An investment in Polaris involves investment risk, including possible loss of principal. The contract, when redeemed, may be worth more or
less than the total amount invested. The purchase of Polaris is not required for, and is not a term of, the provision of any banking service or
activity. Products and features may vary by state and may not be available in all states. We reserve the right to modify or no longer offer the
features described in this brochure. However, once your contract is issued, these features will not change, except as described here and in
the prospectus.
All contract and optional benefit guarantees, including any fixed account crediting rates or annuity rates, are backed by the claims-paying
ability of the issuing insurance company. They are not backed by the broker/dealer from which this annuity is purchased, by the insurance
agency from which this annuity is purchased or any affiliates of those entities and none makes any representation or guarantees regarding the
claims-paying ability of the issuing insurance company.
Polaris Variable Annuities are issued by American General Life Insurance Company (AGL). In New York, Polaris Variable Annuities are
issued by The United States Life Insurance Company in the City of New York (US Life). Distributed by AIG Capital Services, Inc.
(ACS), Member FINRA, 21650 Oxnard Street, Suite 750, Woodland Hills, CA 91367-4997, 1-800-445-7862. AGL, US Life and ACS are
members of American International Group, Inc. (AIG).
©2016 American International Group, Inc. Polaris® is a registered trademark. All rights reserved.
Policy form numbers:
AGL: AG-803 (7/13)
US Life: U
S-803 (12/15)
R5544CON.2 (5/16)
R5544CON.2 (5/16)
1-800-445-7862
aig.com/annuities
Polaris Variable Annuity Optional Income Protection Feature Comparison
If you are considering an income protection feature with a Polaris Variable Annuity, please review the table below for an overview of the key differences
and similarities. Please see the enclosed marketing materials and a prospectus for a complete discussion of each of these features, including a definition of
key terms and restrictions and limitations.
Polaris Income Plus
Issue Ages
®
®
Polaris Income Plus Daily
SM
45-80
65-80
45-80
Opportunity to lock in to the Income
Base greater of annual investment gains
or an Income Credit
for guaranteed lifetime income
Base greater of annual investment gains
or an Income Credit
Base daily investment gains
Annual
on contract anniversary
Annual
on contract anniversary
Daily
Note: After withdrawals begin,
captures daily step-up values on
contract anniversary
6%
6%
Not available
Partial Income Credit
Available during income credit period
in years withdrawals are taken that in
total are less than the 6% income credit
and within the parameters of
the income option elected
Not available
Not available
Income Credit Period
First 12 contract years
First 12 contract years
Not available
Income Base doubles when
no withdrawals are taken during the first
12 contract years
Income Base doubles when
no withdrawals are taken during the first
12 contract years
Not available
Feature Overview
Income Base Step-up
Frequency
Income Credit
(Available during income credit period
in years withdrawals are not taken)
Doubling of Income Base
3 Income Options
Available Income Options
Available Investment Options
Initial Fee Rate*
(Calculated as a percentage of Income
Base. Guaranteed for first year.)
3 Income Options
1 Income Option
(Note: If withdrawals begin before the earlier
of age 68 or 5th contract anniversary, amount
available under feature is lower)
Specified Bond Portfolios
Specified Bond Portfolios
Four Asset Allocation Models
24 Individual Portfolios
10% Allocation to
Secure Value Account required
10% Allocation to
10% Allocation to
1.10% (Single Life)
1.35% (Joint Life)
1.10% (Single Life)
1.35% (Joint Life)
1.10% (Single Life)
1.35% (Joint Life)
*The fee rate is guaranteed for one year. After that time, it will be adjusted quarterly and may decrease or increase based on a predetermined, non-discretionary formula.
Guarantees are backed by the claims-paying ability of the issuing insurance company.
This document must be used in conjunction with a Polaris Variable Annuity product brochure; it cannot be used alone.
The Income Base is the amount on which guaranteed withdrawals and the annual fee for the feature are based. It is not a liquidation value nor is it available as a lump sum.
The Secure Value Account is an interest-earning fixed account with a one-year term.
Polaris Variable Annuities are sold by prospectus only. The prospectus contains the investment objectives, risks, fees, charges, expenses and other
information regarding the contract and underlying funds, which should be considered carefully before investing. Please contact your insurance-licensed
financial advisor or call 1-800-445-7862 to obtain a prospectus. Please read the prospectus carefully before investing.
Annuities are long-term investments designed for retirement. Early withdrawals may be subject to withdrawal charges. Partial withdrawals may reduce benefits available under the contract, as
well as the amount available upon a full surrender. Withdrawals of taxable amounts are subject to ordinary income tax and, if taken prior to age 59½, an additional 10% federal tax may apply.
An investment in Polaris involves investment risk, including possible loss of principal. The contract, when redeemed, may be worth more or less than the total amount invested. The purchase of
Polaris is not required for, and is not a term of, the provision of any banking service or activity. Products and features may vary by state and may not be available in all states.
All contract and optional benefit guarantees, including any fixed account crediting rates or annuity rates, are backed by the claims-paying ability of the issuing insurance company. They are
not backed by the broker/dealer from which this annuity is purchased, by the insurance agency from which this annuity is purchased or any affiliates of those entities and none makes any
representation or guarantees regarding the claims-paying ability of the issuing insurance company.
Polaris Variable Annuities are issued by American General Life Insurance Company (AGL). In New York, Polaris Variable Annuities are issued by The United States Life Insurance
Company in the City of New York (US Life). Distributed by AIG Capital Services, Inc. (ACS), Member FINRA, 21650 Oxnard Street, Suite 750, Woodland Hills, CA 91367-4997,
1-800-445-7862. AGL, US Life and ACS are members of American International Group, Inc. (AIG).
AGL: AG-803 (7/13)
US Life: US-803 (12/15)
This document must be used in conjunction with a Polaris Variable Annuity product brochure; it cannot be used alone.
R5544INC (5/16)
Introducing
Polaris
Income Plus
Daily
An optional income protection feature
available in Polaris Variable Annuities
POLARIS
Polaris Income Plus Daily is available at contract issue for an additional annual fee in select Polaris Variable Annuities. Guarantees are backed by
the claims-paying ability of the issuing insurance company. This brochure must be used in conjunction with the Polaris Variable Annuity
product brochure; it cannot be used alone.
SM
Secure lifetime income for retirement with
Looking to participate in the long-term growth potential of the market? Polaris Income Plus
Daily offers you powerful growth and protection opportunities for your retirement income:
•“Lock in” potential investment gains to your Income Base daily. Before you take your first
withdrawal, your Income Base automatically steps up every time your daily contract value is higher than
your current Income Base. (This is referred to as your Step-up Value.) After you begin taking withdrawals,
your Income Base can continue to step up on each contract anniversary to lock in your highest daily value
during the prior contract year.*
The Income Base is the amount on which guaranteed withdrawals and the annual fee for the feature are
based. It is not the same as your contract value; it is not a liquidation value nor is it available as a lump sum.
•Take advantage of annual withdrawal rates as high as 7%. Income Plus Daily offers you a choice of
three income options, including one that offers annual withdrawals of up to 7%, depending on your age
and when you begin taking withdrawals. With certain income options, the amount available for lifetime
income is reduced if your contract value is completely depleted due to market volatility and/or withdrawals
taken within the feature’s parameters. See page 8 for more information about the available income options.
•Secure income that’s guaranteed to last. With a choice of Single Life and Joint Life income options, you
can secure guaranteed lifetime income for as long as you—or you and your spouse—live.
To realize the feature’s full benefits, withdrawals must be taken within certain parameters. Withdrawals that
exceed the feature’s parameters are known as excess withdrawals. There is no assurance that withdrawal
amounts will keep up with inflation. Withdrawals of taxable amounts are subject to ordinary income tax and, if
taken prior to age 59½, an additional 10% federal tax may apply. Withdrawals may be subject to withdrawal
charges if they exceed certain parameters. Minimum issue age for this feature is 45; maximum issue age is 80.
*If you take an excess withdrawal, Income Plus Daily locks in the highest daily value since the time of your excess withdrawal on your next
contract anniversary.
Terms used in this section and important information
•Step-up Value: This is a value used to determine the Income Base. It is equal to the current contract value if the contract value is higher than
the current Income Base. The Step-up Value (if any) is redetermined each day.
•Income Base: The amount on which guaranteed withdrawals and the annual fee for the feature are based. It is not a liquidation value nor is
it available as a lump sum. The Income Base is initially equal to the first purchase payment. We will not accept purchase payments on or after
the first contract anniversary if an income protection feature is elected. If no withdrawals have been taken from the contract, the Income Base
is increased daily to the Step-up Value (if any). After the first withdrawal has been taken, the Income Base is increased on the next contract
anniversary looking back to the Step-Up Value (if any) on each day since the first withdrawal. (This is referred to as the “first look-back.”)
After the first look-back, the Income Base is increased on each contract anniversary looking back to the Step-Up Value on each day since
the last contract anniversary. If the contract value has been reduced to zero, the Income Base will no longer be recalculated. The Income
Base will be increased each time a purchase payment is made during the first contract year. The Income Base will be adjusted for excess
withdrawals.
•If you begin taking withdrawals before the earlier of age 68 or your 5th contract anniversary, the maximum amount available for lifetime
income under the feature is lower. Please see pages 8 and 9 for complete details.
•Guarantees are backed by the claims-paying ability of the issuing insurance company.
Polaris
INCOME PLUS DAILY
Lock in your highest daily value for future income
With daily step-ups, you have the opportunity to capture investment gains for future retirement income
every day.
•Prior to your first withdrawal, your Income Base automatically steps up daily if the current contract value
is higher than your current Income Base.
•When the Income Base steps up, it locks in your Step-up Value for future income purposes. You will
have the confidence of knowing that your Income Base is protected from market volatility and will not
go down, provided you take withdrawals within the feature’s parameters. (Of course, your contract
value will continue to go up and down based on investment performance.)
Before withdrawals begin
ACCUMULATION
Your Income Base can automatically step up daily
Locks in new Income Base when the daily contract value is higher than your current Income Base
Income Base
Daily Contract Value Over 1 Year
New Income Base
Assumptions for hypothetical illustrations shown here and on the next page: Hypothetical illustrations are not to scale and are
intended solely to depict how Polaris Income Plus Daily can work. The “Accumulation” example assumes no withdrawals are taken during
the period illustrated. Hypothetical contract value assumes an initial purchase payment at contract issue and no additional purchase
payments. Illustrations do not reflect the actual performance of any particular investment. For more information about Polaris Variable Annuity
performance, please ask your financial advisor.
This feature can offer you income protection for different types of markets. In a rising market, it may offer you the
benefit of a step-up to your Income Base. In a flat, declining or extended down market, you may not receive the
benefit of a step-up, but your Income Base will remain protected for guaranteed lifetime income. Depending on
investment performance and your income needs, you may not need to rely on this optional insurance feature,
which is available at contract issue for an additional initial fee rate of 1.10% of the Income Base (Single Life) or
1.35% (Joint Life). The fee rate is guaranteed for one year. After that time, it will be adjusted quarterly and may
decrease or increase based on a predetermined, non-discretionary formula. If the Income Base is increased,
it may have the effect of increasing the dollar amount of the feature’s fee. Please see the prospectus for details
regarding minimum and maximum fees, age restrictions and other limitations.
1
Step-ups can continue after withdrawals begin
Your Income Base can automatically increase on each contract anniversary to lock in your highest daily value
for rising income.
•After you begin taking withdrawals, your Income Base can step up on each contract anniversary to lock
in your highest Step-up Value achieved during the prior contract year.* When your Income Base increases
on your contract anniversary, so does your maximum annual withdrawal amount—providing you with the
opportunity for even more guaranteed lifetime income.
As a reminder, your Step-up Value is redetermined each day, even though the Income Base is not increased
until the next contract anniversary after withdrawals begin.
After withdrawals begin
Locks in highest daily value on next contract anniversary
INCOME
Highest daily value
during contract year
Highest daily value
since the first withdrawal
tra
Income Base is protected from market volatility
in down markets
Income Base
in the year
withdrawals
begin
First
Withdrawal
Taken
New Income Base
Contract
Contract
Value
Value
Contract Anniversary
This optional feature must be elected at the time of purchase and once elected, it may not be changed. If you elect
this feature, you will need to choose from the available investment options described. Additional income protection
features with different parameters are also available. As an alternative to electing an optional income protection
feature, you can annuitize your contract value and receive income payments for life at no additional cost.
*Note: On the contract anniversary that immediately follows your first withdrawal, we look back at the Step-up Value achieved since the time
of your first withdrawal, if any.
2
•Excess Withdrawal: Any withdrawal, or portion of a withdrawal, that exceeds the maximum annual withdrawal amount, which then
reduces the Income Base. Please see “Withdrawals” on page 9 for more information.
•Required Minimum Distributions (RMDs): If your variable annuity is funding a retirement plan or account, such as an IRA, and you take
a withdrawal to meet your contract’s RMD and your withdrawal exceeds the feature’s maximums, your Income Base will not be reduced,
provided RMDs are set up on the company’s systematic withdrawal program. Please see page 9 for additional information, including
important information concerning withdrawals.
Polaris
INCOME PLUS DAILY
Investment flexibility and control
Polaris Income Plus Daily offers you investment flexibility with a choice of investment options. You can build a
customized allocation using any combination of certain portfolios, including Managed Allocation Portfolios, or
you can choose a Polaris Portfolio Allocator model designed by Morningstar Investment Management LLC.
With Polaris Income Plus Daily, you remain in control of your investment’s allocation and you have the flexibility
to change your mix of investments at any time, provided you choose from the available investment options
described. Participation in quarterly automatic asset rebalancing is also required. Your initial and additional
investments can be allocated as follows:
10%
Secure Value Account—an interest-earning fixed account with a one-year term
Polaris Portfolio Allocator Model
90%
(Model 1, Model 2, Model 3, or Model 4)
-OR-
Build Your Customized Allocation using one or any combination of portfolios
listed on page 6
You may use a Dollar Cost Averaging (DCA) fixed account to systematically invest in the investment choices
available with Polaris Income Plus Daily. Your target DCA instructions must follow the investment requirements
described. Amounts allocated to the Secure Value Account will not be rebalanced and are not available for
transfer as long as the feature is in effect. Keep in mind, because rebalancing resets the allocation among
variable portfolios, it may have a positive or negative impact on performance.
The available investment options may reduce the need to rely on an income protection guarantee because they
allocate your investment across asset classes and potentially limit exposure to market volatility. Of course, if you
decide not to elect an optional income protection feature, you may invest in any of the investment options offered
in Polaris. Please see the Polaris investments brochure to learn more.
Additional information about investing in the variable portfolios
•While certain Polaris portfolios may be similar to other funds managed by the same investment adviser, this does not mean that a portfolio’s
investment results will be comparable to the investment results of other similar funds, including other funds with the same investment adviser.
There may be material differences between similar funds and the Polaris portfolios, such as fees and expenses, portfolio management,
portfolio holdings and the timing of cash flows. The portfolios’ investment results will likely differ, and may be higher or lower than the
investment results of other similar funds.
•Money managers, with the exception of SunAmerica Asset Management, LLC, are not affiliated with American General Life, US Life or
•Portfolios that invest in stocks and bonds are subject to risk, including stock market and interest rate fluctuations. Portfolios that invest in
bonds are subject to changes in their value when prevailing interest rates change. Portfolios that invest in non-U.S. stocks and bonds,
including emerging market investments, are subject to additional risks such as political and social instability, differing securities regulations
and accounting standards, limited public information, plus special risks that may include foreign taxation, currency risks, risks associated
with possible differences in financial standards, and other monetary and political risks associated with future political and economic
developments.
3
Choose a Polaris Portfolio Allocator Model
With Polaris Income Plus Daily, you have the flexibility to choose a professionally designed asset allocation
model. You may invest 90% of your investments in one of the four models: Model 1, Model 2, Model 3
or Model 4.
•Polaris Portfolio Allocator models automatically diversify your investment among a mix of professionally
managed portfolios that cross a range of asset classes and investment styles.
•Polaris Portfolio Allocator models have a 13-year track record of performance. (Of course, past
performance is not a guarantee of future results.)
While diversification and asset allocation are both proven investment strategies, they can’t guarantee greater
or more consistent returns and they can’t protect against loss. Keep in mind, Polaris Portfolio Allocator models are
not actively managed portfolios.
Model 1
50% Stocks
50% Fixed Income
Lower
Model 2
60% Stocks
40% Fixed Income
Model 3
70% Stocks
30% Fixed Income
Risk/Reward
Potential
Model 4
90% Stocks
10% Fixed Income
Higher
Additional information about Polaris Portfolio Allocator Models
4
•Polaris Portfolio Allocator models are provided for educational purposes only and not intended to provide investment advice. They should
not be relied upon as providing individualized investment recommendations. The models are considered “static” because the portfolios and
percentages of contract value allocated to each portfolio within a model will not be changed by us. To maintain the target asset allocation
of a model, you can elect to have your investment rebalanced quarterly, semi-annually, or annually. If you elect Polaris Income Plus Daily,
quarterly automatic asset rebalancing is required. Please note that due to market returns and other factors, over time the asset allocation
models may no longer align with their original investment objective. You should consult your financial advisor from time to time to review
whether the model allocation you have selected is still appropriate for you. We reserve the right to change or cancel this program at any time.
•You may invest in only one model at a time.
•You may withdraw money from your model according to the provisions of your Polaris contract. Early withdrawals may be subject to
withdrawal charges and an additional 10% federal tax may apply to amounts withdrawn prior to age 59½. The amount you request will be
proportionately withdrawn from each of the allocations in your contract.
•Asset allocation models may not be appropriate if you are interested in directing your own investments.
•While certain Polaris portfolios may be included in a Polaris Portfolio Allocator model, this does not mean that these portfolios are superior
to any other portfolio not included in a model.
Polaris
INCOME PLUS DAILY
Model 1
Model 2
Model 3
Model 4
50%/50%
60%/40%
70%/30%
90%/10%
SA AB Growth (AllianceBernstein L.P.)
1%
1%
1%
2%
—
1%
1%
2%
Blue Chip Growth (Massachusetts Financial Services Company)
2%
3%
4%
4%
Capital Growth (The Boston Company Asset Management, LLC)
2%
3%
3%
4%
SA MFS Massachusetts Investors Trust
6%
6%
7%
8%
Equity Opportunities (OppenheimerFunds, Inc.)
3%
4%
4%
6%
SA Legg Mason BW Large Cap Value
4%
4%
4%
5%
American Funds Growth-Income SAST
—
—
1%
4%
Invesco V.I. Comstock Fund
5%
5%
6%
8%
Invesco V.I. Growth and Income Fund
6%
7%
8%
8%
Growth-Income (J.P. Morgan Investment Management Inc.)
6%
7%
8%
8%
“Dogs” of Wall Street (SunAmerica Asset Management, LLC)
3%
3%
3%
5%
Small & Mid Cap Value (AllianceBernstein L.P.)
1%
1%
1%
2%
Small Company Value (Franklin Advisory Services, LLC)
—
2%
2%
1%
Capital Appreciation (Wellington Management Company LLP)
3%
3%
4%
5%
Real Estate (FIAM LLC)
—
—
—
1%
American Funds Global Growth SAST
2%
3%
4%
6%
International Diversified Equities (Morgan Stanley Investment Management Inc.)
3%
3%
4%
5%
Foreign Value (Templeton Investment Counsel, LLC)
3%
3%
3%
4%
Emerging Markets (J.P. Morgan Investment Management Inc.)
—
1%
2%
2%
Ultra Short Bond Fund (Dimensional Fund Advisors LP)
2%
1%
—
—
Corporate Bond (Federated Investment Management Company)
10%
8%
7%
1%
Global Bond (Goldman Sachs Asset Management International)
4%
4%
2%
2%
17%
13%
10%
5%
Government and Quality Bond (Wellington Management Company LLP)
8%
8%
7%
2%
Real Return (Wellington Management Company LLP)
5%
3%
2%
—
High-Yield Bond (PineBridge Investments LLC)
4%
3%
2%
—
TARGET ALLOCATION: STOCKS/FIXED INCOME
®
1,2
Actual allocation may differ from the target allocation.
©2016 Morningstar Investment Management LLC.
Lower
Risk/Reward
Potential
Higher
Please see the back cover for additional information about the American Funds Growth-Income SAST Portfolio and American Funds Global
Growth SAST Portfolio.
Additional information about Polaris Portfolio Allocator Models
•The Polaris Portfolio Allocator models are designed and licensed by Morningstar Investment Management LLC. The models are provided for
educational purposes only and should not be considered investment advice. Morningstar Investment Management does not endorse and/or
recommend specific financial products that may be used in conjunction with the models. Please consult your financial advisor for assistance in
developing a portfolio specific to your needs and objectives before investing. Morningstar Investment Management is not affiliated with AIG
or any of its member companies.
5
Build your customized allocation
As an alternative to choosing a Polaris Portfolio Allocator model, you can invest in one or any combination
of portfolios listed below, including individual portfolios and actively managed funds-of-funds.
Individually Managed Asset Allocation Portfolios
American Funds Asset Allocation SAST Portfolio
Capital Research and Management Company
Asset Allocation
Edge Asset Management, Inc.
Balanced
SA BlackRock Multi-Asset Income
BlackRock Investment Management, LLC
SA MFS Total Return
®
Actively Managed Funds-of-Funds
Managed Allocation Balanced
Managed Allocation Moderate
Managed Allocation Moderate Growth
Managed Allocation Growth
Actively Managed Funds-of-Funds with Volatility Control
Fixed Income and Money Market Portfolios
Corporate Bond
Global Bond
Goldman Sachs VIT Government Money Market Fund
Goldman Sachs Asset Management, L.P.
Real Return
SA JPMorgan MFS Core Bond Portfolio
JP Morgan Investment Management Inc./
Ultra Short Bond Portfolio
®
Schroder Investment Management North America Inc.
Pacific Investment Management Company LLC
VCP Value Portfolio
Please see the back cover for additional information about the American Funds Asset Allocation SAST Portfolio, Managed Allocation
Portfolios, SunAmerica Dynamic Allocation Portfolio, SunAmerica Dynamic Strategy Portfolio, VCP Managed Asset Allocation SAST Portfolio,
and Goldman Sachs VIT Government Money Market Fund.
6
SunAmerica Asset Management, LLC is affiliated with the insurance companies that issue Polaris Variable Annuities.
Polaris
INCOME PLUS DAILY
Managed Allocation Portfolios—Actively Managed Funds-of-Funds
As part of the Build Your Customized Allocation option, you can allocate your money to one or a
combination of Managed Allocation Portfolios (MAPs). You may also invest in a MAP (or several MAPs)
in combination with the individual portfolios listed on page 6.
•MAPs are actively managed funds-of-funds that are invested in a variety of institutionally
managed portfolios.
•From time to time, the manager may increase or decrease a MAP’s allocation to certain asset classes.
These short-term shifts in asset allocation policy may have the potential to enhance a MAP’s return
without dramatically changing the long-term risk profile.
•By investing in a MAP, you can diversify your money across asset classes, money managers and
investment styles.
While diversification and asset allocation are both proven investment strategies, they can’t guarantee
greater or more consistent returns and they can’t protect against loss.
Managed Allocation Managed Allocation Managed Allocation Managed Allocation
Balanced
Moderate
Moderate Growth
Growth
ALLOCATION TARGETS:
STOCKS/FIXED INCOME
40%/60%
55%/45%
65%/35%
80%/20%
Large Cap Growth
12.6%
15.2%
17.6%
20.0%
Large Cap Value
11.2%
13.5%
15.6%
17.8%
Mid-Cap Growth
2.6%
4.5%
4.8%
6.5%
Mid-Cap Value
2.2%
3.8%
4.0%
5.5%
Small Cap
2.0%
3.6%
3.8%
5.1%
12.3%
16.7%
20.9%
26.1%
Bonds
51.4%
38.4%
30.0%
17.1%
5.7%
4.3%
3.3%
1.9%
Inflation-Protected Securities
Actual allocation may differ
from the target allocation.
Lower
Risk/Reward
Potential
Higher
Allocation targets are subject to change without notice. Additional asset classes may be used. Allocation targets as of 7/29/15.
Additional information about Managed Allocation Portfolios (MAPs)
•Each Managed Allocation Portfolio is structured as a fund-of-funds, which means that it pursues its investment goal by investing in a
combination of underlying portfolios rather than investing directly in stocks, bonds, cash and other investments.
•It is important to keep in mind that there is no assurance that any strategy or investment will achieve specific investment objectives.
•The Managed Allocation Portfolios’ investment adviser, SunAmerica Asset Management, LLC (“SAAMCo”), has chosen Wilshire Funds
Management to serve as a consultant to the Managed Allocation Portfolios. Wilshire Funds Management is the global investment unit of
Wilshire Associates Incorporated. Wilshire® is a registered service mark of Wilshire Associates Incorporated, Santa Monica, California.
Wilshire is not an affiliate of SunAmerica Asset Management, LLC, the insurance companies listed on the back cover or American
International Group, Inc.
7
A choice of income options
At the time of purchase, you can choose Income Option 1, 2 or 3. Different withdrawal rates apply depending
on your age and when you begin taking withdrawals.
If you begin taking withdrawals on or after your 5th contract anniversary and you are at least
age 65, OR if you are age 68 or older, the following withdrawal rates apply:
Income Options
Maximum Annual Withdrawal Amount
Protected Income Payment
Income Option 1
6% Single Life (5.5% Joint Life)
4%
Income Option 2
3%
Income Option 3
5% for life—Single Life (4.5%– Joint Life)
If you begin taking withdrawals on or after your 5th contract anniversary and you are
younger than age 65, the following withdrawal rates apply:
Income Options
Income Option 1
5.5% Single Life (5% Joint Life)
3%*
Income Option 2
3%*
Income Option 3
4% for life—Single Life (3.5% –Joint Life)
The protected income payment will be paid in the event the contract value is completely depleted due to
market volatility and/or withdrawals taken within the feature’s parameters.
*If withdrawals begin before age 65 and your Income Base increases to a new Step-up Value on a contract anniversary on or after your 65th
birthday, the protected income payment will automatically increase to 4% of your Income Base (3.5% if withdrawals begin prior to the 5th
contract anniversary and you are younger than age 65).
8
•Age at time of first withdrawal: When determining the maximum annual withdrawal percentage, as well as the feature’s protected income
payment percentage, the age at the time of first withdrawal is based on the age of the older individual if the contract is jointly owned for the
Single Life option; age of younger individual for the Joint Life option. This age criteria is also used when evaluating eligibility for an increase
to the protected income payment percentage, if applicable.
If withdrawals begin before your 5th contract anniversary and you are age 65 to age 67,
the following withdrawal rates apply:
Income Options
Income Option 1
3.5%
Income Option 2
2.5%
Income Option 3
4.5% for life—Single Life (4%—Joint Life)
If withdrawals begin before your 5th contract anniversary and you are younger than age 65,
the following withdrawal rates apply:
Income Options
Income Option 1
2.5%*
Income Option 2
2.5%*
Income Option 3
Additional information about Polaris Income Plus Daily
Withdrawals
• Annual withdrawals of up to the maximum annual withdrawal amount (MAWA) do not reduce the Income Base. If you take a withdrawal that exceeds
the MAWA (known as an “excess withdrawal”), your Income Base will be reduced proportionately by the amount in excess of the MAWA.
• If an excess withdrawal reduces the contract value to zero, the feature will terminate and you will no longer be eligible to take withdrawals or receive
lifetime income payments.
• The amount available for withdrawals may change over time. It may increase if the Income Base increases, or decrease if you take an excess
withdrawal that reduces your Income Base. If you select Income Option 1 or 2 and your contract value is completely depleted due to market volatility
and/or withdrawals taken within the feature’s MAWA, you will receive the protected income payment as indicated on page 8 and above. As a result,
the amount available for lifetime income will decrease. If you select Income Option 3 and your contract value is completely depleted due to market
volatility and/or withdrawals taken within the feature’s MAWA, the annual amount of lifetime income will not change; annual income paid to you
after this point is simply referred to as the protected income payment.
• If you have elected this income protection feature, withdrawals up to the MAWA are free of withdrawal charges. Withdrawals that exceed the
MAWA may be subject to a withdrawal charge. Please see the enclosed product summary brochure for the withdrawal charge schedule associated
with the variable annuity you may be considering.
• Partial withdrawals reduce other benefits available under the contract, such as the death benefit, as well as the amount available upon surrender.
Retirement Plans and Accounts
• If you use this contract to fund a retirement plan or account and you plan on taking Required Minimum Distributions (RMDs), please see the
prospectus for more information and consult with a tax advisor concerning your particular circumstances. Keep in mind, an investment in a variable
annuity within a retirement plan or account provides no additional tax-deferred benefit beyond that provided by the plan or account.
• This feature may not be appropriate for use with contributory IRAs (IRA, Roth and SEP) or retirement plans and accounts (401 and 457) if you plan to
make ongoing contributions. Purchase payments received in the first contract year only are included in the Income Base. We will not accept purchase
payments on or after the first contract anniversary if an income protection feature is elected.
Latest Annuity Date
• If the contract value and the Income Base are greater than zero on the Latest Annuity Date (95th birthday), you will need to select one of these
annuity options: 1) Annuitize the contract value under the contract’s annuity provisions. 2) Annuitize the contract and receive payments equal to the
MAWA at the Latest Annuity Date for a fixed period. The duration of the fixed period will be determined by dividing the contract value at the Latest
Annuity Date by the current MAWA. As long as the covered person(s) is living, this amount will continue for the specified period after which time the
protected income payment amount will be paid until the death(s) of the covered person(s). 3) Elect any payment option that is mutually agreeable
between you and the issuing insurance company. Please see a prospectus for details.
Cancellation
• This feature may be cancelled on the 5th contract anniversary or any contract quarter anniversary after that. Amounts allocated to the Secure Value
Account (SVA) will be automatically transferred to the 1-year fixed account, if available. If the 1-year fixed account is not available, the amounts
will be transferred to the Goldman Sachs VIT Government Money Market Fund. Once the cancellation becomes effective, the associated fee will no
longer be charged going forward. This feature cannot be re-elected following cancellation.
Other Considerations
• When the Income Base is increased, it may have the effect of increasing the dollar amount of the fee. When the Income Base is decreased due to
excess withdrawals, it may have the effect of reducing the dollar amount of the fee.
• Joint Life option: In the event of a death, spousal continuation of the contract must be elected to provide guaranteed income for the lifetime of the
remaining spouse. The fee for the Joint Life option will continue to be charged. The Joint Life option will automatically be cancelled if a death benefit is
paid and the contract is not continued by the spouse, or if the surviving original spouse dies. The Single Life option will automatically be cancelled if a
death benefit is paid or if the covered person dies.
• Please see the prospectus for information about what happens in the event of divorce or other changes affecting the contract owners or beneficiaries.
• If you decide not to take withdrawals under this feature, or you surrender the contract, you will not receive the benefit of the feature. You may pay for
the added assurance of this feature and not need to use it. Fees are non-refundable.
• This feature may be automatically terminated under certain circumstances, such as when the contract is annuitized or surrendered. Other
circumstances may also apply.
Please see the prospectus for complete details, including limitations and restrictions.
9
Additional Information
American Funds Asset Allocation SAST Portfolio/American Funds Growth-Income SAST/American Funds Global Growth SAST
• The American Funds SunAmerica Series Trust (“SAST”) portfolios (“Feeder Funds”) do not invest directly in individual securities; instead they
invest all of their assets in corresponding funds (“Master Funds”) of the American Funds Insurance Series. Investing in a Feeder Fund will result in
higher fees and expenses than investing directly in a Master Fund. Please see the prospectus and Statement of Additional Information for more
information regarding the master-feeder fund structure.
SunAmerica Dynamic Allocation Portfolio/SunAmerica Dynamic Strategy Portfolio/Managed Allocation Portfolios
• The portfolio operating expenses for a fund-of-funds are typically higher than those of a traditional portfolio because you pay the expenses of
that portfolio and indirectly pay a proportionate share of the expenses of the underlying portfolios.
SunAmerica Dynamic Allocation Portfolio/SunAmerica Dynamic Strategy Portfolio
• T hese portfolios employ a volatility control approach that seeks to manage volatility within the portfolio, reduce the incidence of extreme
outcomes (including the probability of large losses or gains), and preserve long-term return potential. As a result, a volatility control approach
may provide more consistent performance with less risk from market downturns. However, the risk management strategies used by these
portfolios could limit the upside participation in strong, increasing markets as compared to a portfolio without such a strategy.
• The VCP Managed Asset Allocation SAST Portfolio (“Feeder Fund”) does not invest directly in individual securities; instead it invests in shares of
the American Funds Insurance Series® Managed Risk Asset Allocation Fund SM (the “Master Fund”). In turn, the Master Fund invests in shares of an
underlying fund, the American Funds Insurance Series® Asset Allocation Fund (the “Underlying Fund”), hedge instruments (primarily exchangetraded futures) and cash or cash equivalents. Investing in a Feeder Fund will result in higher fees and expenses than investing directly in a Master
Fund. Please see the prospectus and Statement of Additional Information for more information regarding the master-feeder fund structure.
Goldman Sachs VIT Government Money Market Fund
• Money market instruments generally offer stability and income, but an investment in these securities, like investments in other portfolios, is not
insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. An investment in the Goldman Sachs VIT
Government Money Market Fund is subject to potential loss of principal; however, the portfolio seeks to maintain a net asset value of $1.
carefully before investing. Please contact your insurance-licensed financial advisor or call 1-800-445-7862 to obtain
a prospectus. Please read the prospectus carefully before investing.
accounting or legal advice. Any tax statements in this material are not intended to suggest the avoidance of U.S. federal, state or local tax penalties.
Such discussions generally are based upon the company’s understanding of current tax rules and interpretations. Tax laws are subject to legislative
modification, and while many such modifications will have only a prospective application, it is important to recognize that a change could have
retroactive effect as well. Please seek the advice of an independent tax advisor or attorney for more complete information concerning your
particular circumstances and tax statements made in this material.
Polaris is not required for, and is not a term of, the provision of any banking service or activity. Products and features may vary by state and may not
be available in all states.
All contract and optional benefit guarantees, including any fixed account crediting rates or annuity rates, are backed by the claims-paying ability of
the issuing insurance company. They are not backed by the broker/dealer from which this annuity is purchased, by the insurance agency from which
this annuity is purchased or any affiliates of those entities and none makes any representation or guarantees regarding the claims-paying ability of
the issuing insurance company.
Polaris Variable Annuities are issued by American General Life Insurance Company (AGL). In New York, Polaris Variable Annuities are issued
by The United States Life Insurance Company in the City of New York (US Life). Distributed by AIG Capital Services, Inc. (ACS), Member
FINRA, 21650 Oxnard Street, Suite 750, Woodland Hills, CA 91367-4997, 1-800-445-7862. AGL, US Life and ACS are members of American
International Group, Inc. (AIG).
AGL: AG-803 (7/13)
US Life: U
S-803 (12/15)
R5544CLB (5/16)
1-800-445-7862
aig.com/annuities
Polaris
Variable
Annuity
®
Investment choices available
if an income protection feature
is not elected
POLARIS
This material must not be used without the Polaris Variable Annuity product brochure; it cannot be used alone.
Design Your Investment
Polaris Variable Annuities offer you access to leading money managers, a broad range
of individual variable portfolios and professionally designed asset allocation strategies.
1
Build your own allocation
With over 50 investment choices, you can select from a wide range of investments from experienced
money managers.
2
Choose a Managed Allocation Portfolio (MAP)
The Managed Allocation Portfolios are funds-of-funds managed by SunAmerica Asset Management, LLC
(SAAMCo), drawing on research provided by Wilshire Funds Management.
3
Choose an asset allocation model
The Polaris Portfolio Allocator models are designed by Morningstar Investment Management LLC to
help you take advantage of the potential benefits of asset allocation.
The investment choices described in this brochure are available if you do not elect a Polaris optional income
protection feature. Your financial advisor can help you choose an investment allocation using one of the
approaches described above.
Polaris Variable Annuities are issued by American General Life Insurance Company (AGL) except in New York,
where they are issued by The United States Life Insurance Company in the City of New York (US Life).
SAAMCo is affiliated with AGL and US Life.
Polaris
VARIABLE ANNUITY
Choose from a broad range of portfolios that cross the asset class spectrum
ASSET CLASS
Large Growth
Large Core
Large Value
Small and
Mid Cap
PORTFOLIO
MONEY MANAGER(S)
SA AB Growth
American Funds Growth SAST 1,2
Invesco V.I. American Franchise Fund
Blue Chip Growth
Capital Growth
Fundamental Growth
SA MFS® Massachusetts Investors Trust
Equity Opportunities
American Funds Growth-Income SAST 1,2
Growth-Income
Lord Abbett Growth and Income
“Dogs” of Wall Street
Small & Mid Cap Value
Small Company Value
Growth Opportunities
Mid-Cap Growth
Aggressive Growth
Capital Appreciation
Growth
Technology
Real Estate
Telecom Utility
Natural Resources
American Funds Global Growth SAST 1,2
Global Equities
International Diversified Equities
International Growth and Income
Foreign Value
Emerging Markets
SA BlackRock Multi-Asset Income Portfolio
American Funds Asset Allocation SAST 1,2
VCP Managed Asset Allocation SAST Portfolio ® 2,3
Asset Allocation
Franklin Income VIP Fund
Franklin Founding Funds Allocation VIP Fund
VCP Value ® Portfolio
Balanced
SA MFS® Total Return
VCP Total Return Balanced® Portfolio
SunAmerica Dynamic Allocation Portfolio ®4
SunAmerica Dynamic Strategy Portfolio ®4
Ultra Short Bond Portfolio
Corporate Bond
Global Bond
Marsico Capital Management, LLC
The Boston Company Asset Management, LLC
OppenheimerFunds, Inc.
Brandywine Global Investment Management, LLC
Lord, Abbett & Co. LLC
Franklin Advisory Services, LLC
Multi Cap
FIAM LLC
Specialty
Foreign and
Morgan Stanley Investment Management Inc.
Global Stock
Putnam Investment Management, LLC
Templeton Investment Counsel, LLC
Emerging Markets
Edge Asset Management, Inc.
Franklin Advisers, Inc.
Franklin Templeton Services, LLC
Asset Allocation
Pacific Investment Management Company LLC
Schroder Investment Management North America Inc.
Corporate/Govt. Bond
JP Morgan Investment Management Inc./
Real Return
High-Yield Bond
PineBridge Investments, LLC
High-Yield Bond
Goldman Sachs VIT Government Money Market Fund Goldman Sachs Asset Management, L.P.
Money Market
The American Funds SunAmerica Series Trust (“SAST”) portfolios (“Feeder Funds”) do not invest directly in individual securities; instead they invest all of their assets
in corresponding funds (“Master Funds”) of the American Funds Insurance Series. 2Investing in a Feeder Fund will result in higher fees and expenses than investing
directly in a Master Fund. Please see the prospectus and Statement of Additional Information for more information regarding the master-feeder fund structure. 3The
VCP Managed Asset Allocation SAST Portfolio (“Feeder Fund”) does not invest directly in individual securities; instead it invests in shares of the American Funds
Insurance Series® Managed Risk Asset Allocation FundSM (the “Master Fund”). In turn, the Master Fund invests in shares of an underlying fund, the American Funds
Insurance Series® Asset Allocation Fund (the “Underlying Fund”), hedge instruments (primarily exchange-traded futures) and cash or cash equivalents. 4The overall
portfolio’s average level of exposure to the equity market is expected to be approximately 60% to 65% over the long term. However, the exposure will range from a
minimum of 25% to a maximum of 100%. Please refer to the Polaris product brochure, along with the trust prospectus, for more information.
1
Polaris Money Managers
Additional information about investing in the
variable portfolios
6
5
5
5
•While certain Polaris portfolios may be similar to other funds
managed by the same investment adviser, this does not
mean that a portfolio’s investment results will be comparable
to the investment results of other similar funds, including
other funds with the same investment adviser. There may be
material differences between similar funds and the Polaris
portfolios, such as fees and expenses, portfolio management,
portfolio holdings and the timing of cash flows. The portfolios’
investment results will likely differ, and may be higher or lower
than the investment results of other similar funds.
•Money managers, with the exception of SunAmerica Asset
Management, LLC, are not affiliated with American General
Life, US Life or American International Group, Inc. (AIG).
•Portfolios that invest in stocks and bonds are subject to risk,
including stock market and interest rate fluctuations. Portfolios
that invest in bonds are subject to changes in their value
when prevailing interest rates change. Portfolios that invest
in non-U.S. stocks and bonds, including emerging market
investments, are subject to additional risks such as political
and social instability, differing securities regulations and
accounting standards, limited public information, plus special
risks that may include foreign taxation, currency risks, risks
associated with possible differences in financial standards,
and other monetary and political risks associated with future
political and economic developments.
•Investments that concentrate on one economic sector or
geographic region are generally subject to greater volatility
than more diverse investments. Portfolios that invest in
technology companies are subject to additional risks and
may be affected by short product cycles, aggressive pricing,
competition from new market entrants and obsolescence of
existing technology. Portfolio returns may be considerably
more volatile than a portfolio that does not invest in
technology companies.
•Portfolios that invest in small and mid-size company stocks are
generally riskier and more volatile than portfolios that invest
in larger, more established companies.
•Portfolios that invest in high-yield bonds may be subject to
greater price swings than portfolios that invest in higher-rated
bonds. The payment of interest and principal is not assured.
•Portfolios that invest in real estate investment trusts (REITs)
involve risks such as refinancing, economic conditions in the
real estate industry, changes in property values, dependency
on real estate management, and other risks associated with a
concentration in one sector or geographic region.
•Investments in securities related to gold and other precious
metals and minerals are speculative and impacted by a host
of worldwide economic, financial and political factors.
•Money market instruments generally offer stability and
income, but an investment in these securities, like investments
in other portfolios, is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government
agency. An investment in the Goldman Sachs VIT Government
Money Market Fund is subject to potential loss of principal;
however, the portfolio seeks to maintain a net asset value of $1.
These money managers may be available through the
SunAmerica Dynamic Allocation Portfolio, the SunAmerica
Dynamic Strategy Portfolio, and the Managed Allocation
Portfolios offered in Polaris. 6American Funds SAST Portfolios
and the VCP Managed Asset Allocation SAST Portfolio invest
in the American Funds Insurance Series, which has the same
investment manager (Capital Research and Management
Company) as American Funds.
5
4
Polaris
MANAGED ALLOCATION PORTFOLIO
Choose a Managed
Allocation Portfolio (MAP)
Managed Allocation Portfolios (MAPs) are actively managed funds-of-funds, invested in a variety of
institutionally-managed portfolios. By investing in a single MAP, you can diversify your money across asset
classes, money managers and investment styles.
SunAmerica Asset Management, LLC (“SAAMCo”) handles the day-to-day management of each MAP and
draws on research provided by Wilshire Funds Management. From time to time, SAAMCo may increase or
decrease a MAP’s allocation to certain asset classes. These short-term shifts in asset allocation policy may have
the potential to enhance a MAP’s return without dramatically changing the long-term risk profile.
Keep in mind, while diversification and asset allocation are both proven investment strategies, they can’t
guarantee greater or more consistent returns and they can’t protect against loss.
Balanced
Moderate
Moderate Growth
Growth
40%/60%
55%/45%
65%/35%
80%/20%
Large Cap Growth
12.6%
15.2%
17.6%
20.0%
Large Cap Value
11.2%
13.5%
15.6%
17.8%
Mid-Cap Growth
2.6%
4.5%
4.8%
6.5%
Mid-Cap Value
2.2%
3.8%
4.0%
5.5%
Small Cap
2.0%
3.6%
3.8%
5.1%
12.3%
16.7%
20.9%
26.1%
Bonds
51.4%
38.4%
30.0%
17.1%
5.7%
4.3%
3.3%
1.9%
ALLOCATION TARGETS:
STOCKS/FIXED INCOME*
Inflation-Protected Securities
Actual allocation may differ
from the target allocation.
Lower
Risk/Reward
Potential
Higher
Additional information about Managed Allocation Portfolios
•Each Managed Allocation Portfolio is structured as a fund-of-funds, which means that it pursues its investment goal by investing in a
combination of underlying portfolios rather than investing directly in stocks, bonds, cash and other investments.
•The portfolio operating expenses for a fund-of-funds are typically higher than those of a traditional portfolio. If you are invested in a
Managed Allocation Portfolio, you pay the expenses of that portfolio and indirectly pay a proportionate share of the expenses of the
underlying portfolios.
•It is important to keep in mind that there is no assurance that any strategy or investment will achieve specific investment objectives.
• The Managed Allocation Portfolios’ investment adviser, SunAmerica Asset Management, LLC (“SAAMCo”), has chosen Wilshire Funds
Management to serve as a consultant to the Managed Allocation Portfolios. Wilshire Funds Management is the global investment unit of
Wilshire Associates Incorporated. Wilshire® is a registered service mark of Wilshire Associates Incorporated, Santa Monica, California.
Wilshire is not an affiliate of SunAmerica Asset Management, LLC, the insurance companies listed on the back cover or American
International Group, Inc.
*Subject to change without notice. Additional asset classes may be used. Allocation targets as of 7/29/15.
5
Choose a Polaris Portfolio
Allocator Model
Take advantage of the potential benefits of asset allocation with professionally designed
asset allocation models.
•Polaris Portfolio Allocator models are developed by Morningstar Investment Management LLC,
a recognized leader in asset allocation strategies. You can use a model and its allocation as a guide
when designing your investment allocation or you may build your own allocation with the help of
your financial advisor.
•Keep in mind, while diversification and asset allocation are both proven investment strategies,
they can’t guarantee greater or more consistent returns and they can’t protect against loss.
Model 1
50% Stocks
50% Fixed Income
Lower
Model 2
60% Stocks
40% Fixed Income
Model 3
70% Stocks
30% Fixed Income
Risk/Reward
Potential
Model 4
90% Stocks
10% Fixed Income
Higher
Additional information about Polaris Portfolio Allocation Models
• Polaris Portfolio Allocator models are provided for educational purposes only and not intended to provide investment advice. They should
not be relied upon as providing individualized investment recommendations. The models are considered “static” because the portfolios and
percentages of contract value allocated to each portfolio within a model will not be changed by us. To maintain the target asset allocation
of a model, you can elect to have your investment rebalanced quarterly, semi-annually, or annually. Please note that due to market returns
and other factors, over time the asset allocation models may no longer align with their original investment objective. You should consult your
financial advisor from time to time to review whether the model allocation you have selected is still appropriate for you. We reserve the right to
change or cancel this program at any time.
• You may invest in only one model at a time. If you attempt to invest in more than one model at a time, your investment may no longer be
consistent with the model’s investment objectives.
•You may make additional investments in other portfolios if they are not included in the model you’ve selected.
• You may withdraw money from your model according to the provisions of your Polaris contract. Early withdrawals may be subject to
withdrawal charges and an additional 10% federal tax may apply to amounts withdrawn prior to age 59½. The amount you request will be
proportionately withdrawn from each of the allocations in your contract unless you direct us differently. If you make a withdrawal from specific
portfolios in a model that changes the existing percentages, your investment may no longer be consistent with the model’s intended objectives.
• Asset allocation models may not be appropriate if you are interested in directing your own investments.
• While certain Polaris portfolios may be included in a Polaris Portfolio Allocator model, this does not mean that these portfolios are superior to
any other portfolio not included in a model.
Polaris
PORTFOLIO ALLOCATOR MODEL
Model 1
Model 2
Model 3
Model 4
50%/50%
60%/40%
70%/30%
90%/10%
SA AB Growth (AllianceBernstein L.P.)
1%
1%
1%
2%
—
1%
1%
2%
Blue Chip Growth (Massachusetts Financial Services Company)
2%
3%
4%
4%
Capital Growth (The Boston Company Asset Management, LLC)
2%
3%
3%
4%
SA MFS Massachusetts Investors Trust
6%
6%
7%
8%
Equity Opportunities (OppenheimerFunds, Inc.)
3%
4%
4%
6%
4%
4%
4%
5%
American Funds Growth-Income SAST
—
—
1%
4%
5%
5%
6%
8%
6%
7%
8%
8%
Growth-Income (J.P. Morgan Investment Management Inc.)
6%
7%
8%
8%
“Dogs” of Wall Street (SunAmerica Asset Management, LLC)
3%
3%
3%
5%
Small & Mid Cap Value (AllianceBernstein L.P.)
1%
1%
1%
2%
Small Company Value (Franklin Advisory Services, LLC)
—
2%
2%
1%
Capital Appreciation (Wellington Management Company LLP)
3%
3%
4%
5%
Real Estate (FIAM LLC)
—
—
—
1%
American Funds Global Growth SAST
2%
3%
4%
6%
International Diversified Equities (Morgan Stanley Investment Management Inc.)
3%
3%
4%
5%
Foreign Value (Templeton Investment Counsel, LLC)
3%
3%
3%
4%
Emerging Markets (J.P. Morgan Investment Management Inc.)
—
1%
2%
2%
Ultra Short Bond Fund (Dimensional Fund Advisors LP)
2%
1%
—
—
Corporate Bond (Federated Investment Management Company)
10%
8%
7%
1%
Global Bond (Goldman Sachs Asset Management International)
4%
4%
2%
2%
17%
13%
10%
5%
Government and Quality Bond (Wellington Management Company LLP)
8%
8%
7%
2%
Real Return (Wellington Management Company LLP)
5%
3%
2%
—
High-Yield Bond (PineBridge Investments LLC)
4%
3%
2%
—
TARGET ALLOCATION: STOCKS/FIXED INCOME
®
1,2
1,2
Actual allocation may differ from the target allocation.
©2016 Morningstar Investment Management LLC.
Lower
Risk/Reward
Potential
Higher
Polaris Portfolio Allocator models are designed and licensed by Morningstar Investment Management LLC. Morningstar Investment Management
does not endorse and/or recommend specific financial products that may be used in conjunction with the models. Morningstar is not affiliated
with AIG or any of its member companies.
7
The Pyramis Global Advisors’ logo is a registered service mark of FMR LLC. Used with permission. FIAM LLC does business as Pyramis Global
Advisors.
accounting or legal advice. Any tax statements in this material are not intended to suggest the avoidance of U.S. federal, state or local tax
penalties. Such discussions generally are based upon the company’s understanding of current tax rules and interpretations. Tax laws are subject
to legislative modification, and while many such modifications will have only a prospective application, it is important to recognize that a change
could have retroactive effect as well. Please seek the advice of an independent tax advisor or attorney for more complete information concerning
your particular circumstances and tax statements made in this material.
Polaris is not required for, and is not a term of, the provision of any banking service or activity. Products and features may vary by state and may
not be available in all states.
issued by The United States Life Insurance Company in the City of New York (US Life). Distributed by AIG Capital Services, Inc. (ACS),
Member FINRA, 21650 Oxnard Street, Suite 750, Woodland Hills, CA 91367-4997, 1-800-445-7862. AGL, US Life and ACS are members of
AGL: AG-803 (7/13)
US Life: U
S-803 (12/15)
R5544CN1.1 (5/16)
aig.com/annuities
Investor
Questionnaires
Assess your time
horizon and
tolerance for risk
•Portfolio
•Managed
Allocator Models
Allocation Portfolios
POLARIS
Use this questionnaire if you are considering a Portfolio Allocator Model.
Answer each question and total your scores for both sections
Time Horizon Questions 1. In how many years will you begin to withdraw funds from this account?
• Less than 1 year (0 POINTS)
• 1–2 years (1 POINT)
• 3–4 years (3 POINTS)
• 11 years or more (11 POINTS)
POINTS
2. Once you start taking funds out of your account, over how many years will you continue to withdraw
funds?
• Lump-sum withdrawal (0 POINTS)
• More than 11 years (6 POINTS)
POINTS
Investment Time Horizon Score
Risk Tolerance Questions 1. By keeping pace with inflation, investors can maintain the purchasing power of their money over time.
This means that your money will be able to purchase the same basket of goods year after year, even
though prices have increased. Generally, higher returns can only be achieved by accepting greater risk.
Which of the following choices best reflects your attitude toward inflation and risk?
• My main goal is to avoid loss, even though I may only keep pace with inflation. (0 POINTS)
POINTS
• My main goal is to earn slightly more than inflation, while taking on a low level of risk. (5 POINTS)
• My main goal is to increase my portfolio’s value. Therefore, I am willing to accept short-term losses, but I am
not comfortable with extreme performance shifts that may be experienced in the most aggressive investment
options. (9 POINTS)
• My main goal is to maximize my portfolio value, and I am willing to take on extreme levels of risk
and performance shifts in my portfolio to do so. (14 POINTS)
2. The following chart shows the possible outcomes (best, average, and worst) of year-end account values
(net of fees) of four hypothetical investment portfolios. The initial investment into each portfolio was
$20,000. Which portfolio would you be most comfortable owning?
$27,500
POINTS
$30,000
$30,000
$26,000
$27,000
$28,000
$25,000
$22,500
Dashed
line
represents
Average
Outcome
$20,000
$17,500
$15,000
$15,000
$13,500
$12,500
$12,500
$10,500
$10,000
2
Portfolio A
Portfolio B
Portfolio C
Portfolio D
(0 POINTS)
(4 POINTS)
(7 POINTS)
(12 POINTS)
Polaris
PORTFOLIO ALLOCATOR MODELS
3. M
arkets have experienced large price swings and extended price drops throughout history. Suppose you
owned a portfolio that fell by 20% over a 3-month period. Assuming you still have 10 years until you
begin making withdrawals from this account, how would you react?
POINTS
• I would immediately change my portfolio. (0 POINTS)
• I would wait at least 6 months before adjusting my portfolio. (3 POINTS)
• I would wait at least 1 year before adjusting my portfolio. (6 POINTS)
• I would not change my investment strategy. (10 POINTS)
4. The following table presents the probable chance of experiencing a loss and probable dollar gain
for a $100,000 investment in four hypothetical portfolios over a one-year holding period. Based on
the information provided below, which of the following portfolios would you select for your account?
Portfolio A (0 PTS)
Portfolio B (4 PTS)
Portfolio C (7 PTS)
Portfolio D (12 PTS)
29%
31%
32%
34%
$5,000
$6,000
$7,000
$8,000
Chance of Experiencing a Loss (%)
Probable Dollar Gain ($)
POINTS
5. Investors must be comfortable with the amount of risk associated with short periods (i.e., one year), even
if they have a long investment horizon. The following three hypothetical graphs represent three different
ways in which your money can be invested. The graphs show the returns of each investment from year to
year. Which investment would you choose?
% Return
60%
Portfolio A (0 POINTS)
60%
Portfolio B (7 POINTS)
60%
40%
40%
40%
20%
20%
20%
0%
0%
0%
-20%
-20%
-20%
-40%
1 Year
-40%
Portfolio C (14 POINTS)
-40%
1 Year
POINTS
1 Year
6. The table below shows the characteristics of four hypothetical portfolios over the next 30 years.
Given your investment objectives, in which of these hypothetical portfolios would you feel most
comfortable investing?
Probable Average
Annual Return
Probable Number of Years with
Negative Returns
Potential Worst
Annual Return
Portfolio A (0 POINTS)
5%
9
-16%
Portfolio B (4 POINTS)
6%
10
-18%
Portfolio C (7 POINTS)
7%
11
-22%
Portfolio D (12 POINTS)
8%
12
-28%
POINTS
7. Investment decisions are generally determined by a risk-return trade-off. Risk is any possibility of loss
to the value of your portfolio. Return is the amount earned or profit on an investment. How would you
respond to the following statement?
Protecting my portfolio from loss is more important to me than achieving high returns.
Primary
concern is
minimizing risk
Strongly
Agree
Agree
Risk & Return are
Equally Important
Disagree
Strongly
Disagree
(0 POINTS)
(4 POINTS)
(8 POINTS)
(11 POINTS)
(14 POINTS)
POINTS
Primary
concern is
maximizing return
3
Risk Tolerance Questions (continued)
8. The degree to which the value of a portfolio rises and falls is called volatility. Generally, assets that exhibit
higher volatility also have higher returns. Investments are risky, however, because there is no guarantee
that the upturns in your portfolio will be greater than the downturns. Which of the following best describes
how you feel about the amount of volatility you are willing to accept?
POINTS
• Little—I would rather have small returns than risk losing any money. (0 POINTS)
• Some—I would like to achieve higher returns over time and can withstand an occasional, large downturn in the
value of my portfolio. (6 POINTS)
• Considerable—My main goal is to achieve high returns over time and I can endure substantial losses in order
to do so. (12 POINTS)
Risk Tolerance Score
Find the model that matches your score
Enter your scores from the questionnaire on the lines below. Follow the column and row to where your two scores meet to
find the model that best matches your score. A model can serve as a guide when designing your investment allocation.
Your Total Time Horizon Score
CIRCLE THE APPROPRIATE RANGE BELOW
Your Total Risk
Tolerance Score
CIRCLE THE APPROPRIATE
RANGE ON THE RIGHT
3–5
6–7
8–10
11+
15–37
1
1
1
1
38–60
1
2
2
2
61–83
1
2
3
3
84–100
1
2
3
4
Target Allocations: Stocks/Fixed Income
Model 1 50%/50%
Model 2 60%/40%
Model 3 70%/30%
Model 4 90%/10%
If your time horizon score is less than 3 or your risk tolerance score is less than 15, a more conservative approach
may be appropriate. Your financial advisor can help you evaluate the model or other investments to help ensure that it
meets your specific financial situation. These situations are different for each client and should not be taken as a direct
recommendation. Your needs and the suitability of an annuity product should be carefully considered prior to investing.
Additional information about the Polaris Portfolio Allocator Investor Questionnaire
4
•The Investor Questionnaire is intended to assist you in identifying your general attitude towards investment risk based on your responses to the
questions. It does not consider other important factors, such as your financial resources, personal situation, investment goals, tax situation and other
relevant factors. The portfolios used in the questionnaire are hypothetical; they are not based on an actual investment in a specific portfolio. The
portfolios are for illustrative purposes only and do not represent past or future performance of any specific investment or portfolio.
•The Polaris Portfolio Allocator Investor Questionnaire is designed and licensed by Morningstar Investment Management LLC. This material is provided
for educational purposes only and should not be considered investment advice. Morningstar Investment Management does not endorse and/or
recommend specific financial products that may be used in conjunction with the questionnaire. Please consult your financial advisor for assistance in
developing a portfolio specific to your needs and objectives before investing. Morningstar Investment Management is not affiliated with AIG or any
of its member companies.
•The Investor Questionnaire is not approved for use with participants in group retirement plans governed by ERISA.
Polaris
MANAGED ALLOCATION PORTFOLIOS
Use this questionnaire if you are considering a Managed Allocation Portfolio.
Answer each question and total your scores for both sections
Time Horizon Questions 1. My current age is:
• Over 70 (2 POINTS)
• 60–70 (4 POINTS)
• 46–59 (7 POINTS)
• 44 or younger (10 POINTS)
POINTS
2. Your variable annuity may offer you access to certain cash benefits.
When do you anticipate taking regular cash distributions from your account value?
POINTS
• Less than 5 years (2 POINTS) • 6–9 years (5 POINTS)
• More than 15 years, or I do not
anticipate taking cash distributions (10 POINTS)
Time Horizon Score
Risk Tolerance Questions 3. Your risk tolerance describes your willingness to accept fluctuation in your
account value in order to achieve the long-term objective of your retirement savings.
Which statement best describes your tolerance for risk?
• Avoiding loss in my account value is more important to me than experiencing long-term growth
POINTS
(1 POINT)
• I desire long-term growth of my account value, but I am more concerned with avoiding losses
(4 POINTS)
• I am concerned with avoiding losses, but this is outweighed by my desire to achieve long-term growth
(7 POINTS)
• To maximize the chance of experiencing high long-term growth, I am willing to accept losses
(10 POINTS)
4. While riskier than bond investments, stock investments offer the potential of higher
long-term investment returns. What is your feeling about investing a portion of your money in
stock investments?
• I am concerned that stock investments are too risky and would prefer a higher allocation to bonds
POINTS
(1 POINT)
• I understand there is additional risk with stock investments and would consider a more balanced
allocation to stocks and bonds (5 POINTS)
• I understand there may be some additional risks in stock investing, but the opportunity to achieve
long-term growth with a higher allocation to equities is worth serious consideration (9 POINTS)
• I understand the risks, but recognize there are growth opportunities in stock markets, and would
like to maximize those opportunities (12 POINTS)
5
Risk Tolerance Questions (continued)
5. Given the volatility of the capital markets, your account value will fluctuate over time.
The three choices below show potential account value ranges after a three-year investment
period. If you were to invest $50,000, which portfolio would you select?
POINTS
• Account value range of $48,000–$53,000 (2 POINTS)
6. Given the portfolio risk/return patterns described below, in which portfolio would you
choose to invest?
Portfolio 1
Portfolio 2
% Return
Average Return = 6.69%
Portfolio 3
30%
30%
30%
20%
20%
20%
10%
10%
10%
0%
0%
0%
-10%
-10%
-10%
-20%
(2 POINTS)
-20%
(6 POINTS)
-20%
POINTS
(10 POINTS)
7. It is important to consider the investment in your contract in relation to your other financial assets.
Your investment experience can help determine your attitude toward investments you purchase.
Most of your other assets are invested in:
POINTS
• I don’t know how my savings is invested (0 POINTS)
• My pension plan and Social Security only (1 POINT)
• CDs, savings accounts and other FDIC-insured accounts (1 POINT)
• A mix of stocks and bonds, including stock and bond mutual funds (2 POINTS)
• Stocks or stock mutual funds (5 POINTS)
8. Describe your experience and comfort level in making investment decisions:
•I am uncomfortable with selecting from available investments and the risks associated with
stock investing (2 POINTS)
•I am reasonably comfortable, but concerned with high account value fluctuation
(5 POINTS)
•I am very comfortable with making investment decisions and the risks associated with
stock investing (10 POINTS)
Risk Tolerance Score
6
POINTS
Polaris
MANAGED ALLOCATION PORTFOLIOS
Find the MAP that matches your score
Enter your scores from the questionnaire on the lines below. Follow the column and row to where your two scores
meet to find the Managed Allocation Portfolio (MAP) that best matches your score.
Your Total Time Horizon Score
CIRCLE THE APPROPRIATE RANGE BELOW
Your Total Risk
Tolerance Score
CIRCLE THE APPROPRIATE
RANGE ON THE RIGHT
4–6
7 – 11
12 – 17
18+
8 – 13
1
1
1
1
14 – 29
1
2
2
2
30 – 43
1
2
3
3
44 – 57
1
2
3
4
Managed Allocation Portfolios (MAP)
1 MAP–Balanced
2 MAP–Moderate
3 MAP–Moderate Growth
4 MAP–Growth
Additional information about the Managed Allocation Portfolios Investor Questionnaire
• The Investor Questionnaire is intended to assist you in identifying your general attitude towards investment risk based on your responses
to the questions. It does not consider other important factors, such as your financial resources, personal situation, investment goals, tax
situation and other relevant factors. The portfolios used in the questionnaire are hypothetical; they are not based on an actual investment in a
specific portfolio. The portfolios are for illustrative purposes only and do not represent past or future performance of any specific investment
or portfolio. The Investor Questionnaire is designed and licensed by Wilshire Associates, Inc. (“Wilshire”). Materials are provided for
educational purposes only and should not be considered investment advice. Wilshire does not endorse and/or recommend specific
financial products that may be used in conjunction with the questionnaire. Please consult your financial advisor for assistance in developing
a portfolio specific to your needs and objectives before investing.
•The Investor Questionnaire is not approved for use with participants in group retirement plans governed by ERISA.
7
Polaris is not required for, and is not a term of, the provision of any banking service or activity. Products and features may vary by state and may
not be available in all states.
issued by The United States Life Insurance Company in the City of New York (US Life). Distributed by AIG Capital Services, Inc. (ACS),
Member FINRA, 21650 Oxnard Street, Suite 750, Woodland Hills, CA 91367-4997, 1-800-445-7862. AGL, US Life and ACS are members of
AGL: AG-803 (7/13)
US Life: U
S-803 (12/15),
US-803-PSI-C (12/15)
R5544RTQ (5/16)
aig.com/annuities

Polaris® Variable Annuities

Transcription

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