Polaris Platinum III

Transcription

Polaris: The Total
Retirement Package
®
A Polaris Platinum III Variable Annuity combines growth potential, family protection features
and optional retirement income choices to help you address today’s most challenging planning
needs—while you’re accumulating assets and when you are ready to draw on those assets for
retirement income.
Polaris Platinum III offers the flexibility to design an investment that’s right for you.
Performance for the growth potential you need
n
Respected money managers and professionally designed asset allocation strategies.
n
Protection for the sense of security you want
A choice of optional income protection features and an enhanced death benefit option.
n
Strength for enduring stability
The life insurance companies that issue Polaris Variable Annuities are dedicated to supporting
your needs today, and in the years ahead.
Contract and optional benefit guarantees are backed by the financial
strength and claims-paying ability of American General Life
Insurance Company (AGL) except in New York, where they are
backed by The United States Life Insurance Company in the
City of New York (US Life).
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
Customize Your Variable Annuity
Costs and other important information
Issue ages1
1.30%2
nBase contract
$50 annual contract administration charge.* Currently waived for contracts
of $75,000+. Minimum initial investment: $10,000 (NQ); $4,000 (Q); additional:
$500 (NQ and Q); $100 if Automatic Payment Plan is used.3
Up to 85
nProfessional money
Total portfolio operating expenses range from 0.72% to 1.48%4 as of 12/31/14
and 1/31/15, respectively.
—
nDollar cost averaging
Choose from two Dollar Cost Averaging (DCA) Fixed Accounts:
6-month or 1-year 5
—
nTransfers between
15 free per contract year
with standard death benefit
management
variable portfolios
$25 thereafter.*
—
nAutomatic asset rebalancing
Quarterly, semiannual or annual available.
(Quarterly required with income protection features.)
—
nFree withdrawals during the
Greater of: 10% of purchase payments not yet withdrawn each contract year
or, if an income protection option is elected, the maximum annual withdrawal
amount.
—
withdrawal charge period
nWithdrawal 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.
—
nSystematic withdrawals
Minimum withdrawal amount is $100. Available on a monthly, quarterly,
semiannual or annual basis.
—
nNursing home waiver
Waives withdrawal charges for certain withdrawals.*
—
nAnnuitization
Latest annuity date: 95th birthday. Upon annuitization, the death benefit will no
longer apply. Please contact us prior to reaching age 95 to discuss options.
—
Income Protection—You may choose one income protection feature
n Polaris Income Plus®
Initial: +1.10% Single Life6 *+1.35% Joint Life6 *
n Polaris Income Builder ®
Initial: +1.10% Single Life6 *+1.35% Joint Life6 *
45/80
(Min/Max)7
65/80
(Min/Max)7
Investment requirements apply. Fee rate for these features is guaranteed for one year. After one year, fee rate will be adjusted quarterly
based 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.
Enhanced family protection—You may choose the following death benefit
n Maximum Anniversary
Value Death Benefit
1
2
3
4
5
6
7
+0.25%2
Up to 80
If jointly owned, age is based on older owner unless otherwise indicated.
Annualized fee deducted from the average daily ending net asset values allocated to the variable portfolios.
Additional purchase payments will not be accepted on or after the 86th birthday.
Deducted from the underlying funds of the applicable trust.
Dollar 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.
Annualized fee calculated as a percentage of the Income Base, deducted from contract value quarterly. 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).
Single 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.
Maximum issue age may be lower if certain death benefits and/or income protection features are selected. Please check with your financial advisor for
more information.
*See back cover for state variations. Additional state variations may apply. Features may not be available in all states.
Summary information only. Please see the prospectus for details.
State variations for features described
In California, the Nursing Home Waiver is not available.
In New York, Oregon, Texas and Washington, the annual contract administration charge and the fee for Income Builder and
Income Plus are deducted from the variable portfolios only.
n In New Mexico, the annual contract administration charge is $30.
n In Pennsylvania and Texas, any transfer over the limit of 15 transfers between variable portfolios and/or the fixed account
(if available) will incur a $10 transfer fee.
n n This material must not be distributed without a Polaris product brochure; it cannot be used alone. Polaris Platinum III
Variable Annuity is 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 Platinum III 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 Platinum III 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 Platinum III Variable Annuity, form number AG-803 (7/13), is issued by American General Life Insurance Company
(AGL). In New York, Polaris Platinum III Variable Annuity, form number FS-993-PPIII (12/10), is 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).
© 2015 American International Group, Inc. Polaris® is a registered trademark. All rights reserved.
aig.com/annuities
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The Total Retirement Package
When your goals are
performance
protection
strength
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Polaris: The Total
Retirement Package
®
Polaris Variable Annuities allow you and your insurance-licensed financial advisor to
design a customized income solution for a portion of your retirement portfolio.
performance
protection
for the growth potential you need
for the sense of security you want
Maximize the long-term growth potential of
your retirement income with these powerful
performance features:
Safeguard your retirement assets with a choice of
valuable features designed to help “insure” against
market volatility and generate lifetime income:
n
Experienced money managers
n Actively
managed portfolios that use
a risk management process
n
Tax deferral
n
Lifestyle protection
n
Family protection
Certain protection features are optional—you can choose
not to elect them and you won’t be charged for them.
PAGE
06 Performance for the growth potential
you need
15 Secure lifetime income for retirement with
Polaris Income Plus®
08 Volatility Control Portfolios
22 Secure lifetime income for retirement with
Polaris Income Builder ®
24 Protect assets for your loved ones
To learn about the specific Polaris Variable Annuity you may be considering, please see the enclosed product summary
brochure. 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 (AGL)
except in New York, where they are issued by The United States Life Insurance Company in the City of New York (US Life).
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strength
for enduring stability
American General Life and US Life are each strong
and established insurance companies:
■ Pioneers
in the development of innovative
retirement income solutions
■ Committed
to supporting your needs today,
and in the years ahead
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Today’s priorities
for retirement
Retirement today involves new challenges—living longer, losing ground to rising prices over time,
and relying more on personal investments in an up-and-down stock market. Make these new
priorities part of your planning now and you’ll be one step closer to a more comfortable retirement.
Plan for a long retirement.
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
will live to age 97
Maintain your lifestyle.
With inflation, retirement may also cost more than
you think.
Over the past 80 years, inflation has averaged
3.65% annually. And while that may not seem
like a lot, over time, the impact of even moderate
inflation can be dramatic. In fact, assuming the
same rate of inflation experienced over the past 30
years—approximately 2.7%—retirement expenses
would more than double over the next 30 years!
Hypothetical Expenses
Source: Society of Actuaries 2012 Individual Annuitant
Mortality Tables. Assumes a couple, both age 65
$133,824
$60,000
2015
Source: Wilshire Compass, 2015.
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2045
Participate in market 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.
Growth of a $1 Investment, 1926–20141
$5,316
$126
Bonds
Stock Market Volatility Since 1900
2
Dips
Corrections
Bear Markets
(5% or more)
(10% or more)
(20% or more)
390
123
32
3.4
per year 3
1.1
per year 3
Once every
3 years3
Market volatility is to be expected over time.
That’s why it’s important to look for ways to reduce
downside risk.
$24
T-Bills
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.
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, 2015. T-Bills are represented by 91-day T-Bills. Bonds are represented by the US Core Bond Index. Stocks are
represented by the US Large Cap Core Stocks Index. The US Core Bond Index and the US Large Cap Core Stocks Index are a proxy of the bond and
equity markets. The indices have been constructed by Wilshire with data from various sources to provide a historical track record back to 12/31/1925.
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.
1
2
Source: Ned Davis Research, Inc., based on Dow Jones Industrial Average, daily closes, 1/2/1900–12/31/2014.
3
Average for period shown.
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Polaris Variable Annuity:
A versatile investment
for your retirement
A Polaris Variable Annuity is a long-term investment that combines growth potential, protection
features for your family and optional retirement income choices.
Polaris is designed to help you address today’s most challenging planning needs—while you’re
building assets in the accumulation phase and when you are ready to draw on those assets
during the income phase. Polaris offers a combination of benefits not typically found in other
types of investments.
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Key product
features
Variable
Annuities
Tax advantages—including tax deferral and
tax-free rebalancing
Fixed
Annuities
Mutual
Funds
(tax deferral)
Stocks
Bonds
(may be tax-free)
Participation in the growth potential
of the stock market
Protection features that can “insure” against
market risk for an additional fee
Professional money management
Asset allocation program
(sometimes)
Opportunity for a fixed rate of return
Beneficiary protection
Flexible income options
Predictable income stream
Guaranteed lifetime income
Liquidity
Subject to limitations*
Subject to limitations*
• 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.
•B
onds: U.S. 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.
•V
ariable 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.
•F
ixed 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.
•M
utual funds are different from variable annuities in a number of ways. For example, mutual funds serve various short and long-term
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.
Your financial advisor can help you determine which investments may be right for you. Be sure to talk to your financial advisor about your particular
situation before you invest.
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Performance for the growth
potential you need
Polaris offers you the benefits of professional money management, tax deferral and
time-tested investment techniques to help you diversify your investment and maximize
long term growth potential.
4
4
4
Additional information
n
n
4
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. 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).
These money managers may be available through the SunAmerica Dynamic Allocation Portfolio, the SunAmerica Dynamic Strategy Portfolio, and
the Managed Allocation Portfolios (MAPs) offered in Polaris. More information about individual investment options, including MAPs and Portfolio
Allocator models, is available in the Polaris Additional Investment Options brochure.
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Performance
Benefit from the power of tax deferral
Taxes can have a big impact on long-term investment returns. While the S&P 500® Index had
an average annual return of 10.1% from 1926 through 2014, the after-tax return was 8.1%.5
With a tax-deferred variable annuity like Polaris, the
money that might otherwise go to pay current taxes
remains invested in your variable annuity for greater
growth potential.
Of course, if you use your variable annuity to fund a
retirement plan or account, such as an IRA or 401(k),
there is no additional tax deferral benefit because these
plans already enjoy tax-deferred status. However, a
variable annuity does offer other insurance features
and benefits that you pay for through what’s called the
separate account charge, plus the cost for any optional
features you elect.
Keep in mind, tax deferral is not the same as tax-free—
when you withdraw money from your variable annuity,
you will be taxed on the earnings. And, because
deferring taxes is a benefit the federal government
extends to encourage long-term savings, if you make a
withdrawal before age 59½, an additional 10% federal
tax may apply. Early withdrawal charges may also apply.
It’s important to know that some variable annuity benefits
are based on the amount of money you have invested,
and withdrawals may reduce the value of those benefits,
including the guaranteed death benefit and the amount
available upon a full surrender.
Use a systematic investing strategy
One way to invest is with dollar cost averaging, an
automatic monthly investment program. With dollar
cost averaging, you buy more units if the price is lower,
fewer if the price is higher—potentially resulting in a
lower average cost per unit.
Polaris offers you specially designed Dollar Cost
Averaging fixed accounts that provide a competitive
rate of return on your money as it is systematically
transferred into selected investment options over a
specific time period. Ask your financial advisor for
available DCA fixed account terms.
Keep in mind, dollar cost averaging cannot guarantee
a profit or protect against a market loss. You should
consider your ability to continue to invest during
periods of market volatility.
Any fixed rates credited to DCA fixed accounts will be paid on a declining balance. Money in these accounts is automatically
transferred out on a monthly basis over the specified period (6 months or 1 year), depending on which DCA fixed account you select.
The availability of DCA fixed account terms varies by state.
n Automated transfers that are part of the Dollar Cost Averaging features do not count against your 15 free transfers per year.
n
Source: Ibbotson Associates, Inc., 2015. Federal income tax is calculated using the historical marginal and capital gains tax rates for a single
taxpayer earning $100,000. No state income tax is included. Past performance is not a guarantee of future results.
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7
Help grow and protect your money with
Volatility Control Portfolios
Volatility Control Portfolios take advantage of risk management processes that have been
successfully used by institutional investors.
n
Investing in stocks 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), and preserve long-term
return potential. As a result, a volatility control approach
may provide more consistent performance without
giving up long-term growth potential.
Of course, by investing in a portfolio that is designed
to control volatility, you may have less risk from market
downturns, but may also have less opportunity to
benefit from market gains.
n
Each of the Volatility Control Portfolios offers you
the benefits of professional money management for
long-term growth potential, diversification across asset
classes, and risk management.
n
SunAmerica Dynamic Allocation Portfolio®
n
SunAmerica Dynamic Strategy Portfolio®
n
VCP Managed Asset Allocation SAST Portfolio®
n
VCP Total Return Balanced® Portfolio
n
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.
Please see page 12 for important risks and additional information.
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Performance
If you elect an optional income protection feature, there are multiple
ways to invest using our Volatility Control Portfolios
The following investment requirements apply if you elect Polaris Income Plus (Income Option 1, 2 or 3) or Polaris
Income Builder. Both features are described later in this brochure.
Your Investment Choices
10% of 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% may be invested in one of six “Check the Box” options:
Invest in a
combination of:
•
•
•
•
•
SunAmerica Dynamic Allocation Portfolio
SunAmerica Dynamic Strategy Portfolio
VCP Managed Asset Allocation SAST Portfolio
VCP Total Return Balanced Portfolio
VCP Value Portfolio
30%
30%
10%
10%
10%
Invest in a
combination of:
•
•
•
•
•
VCP Value Portfolio
18%
18%
18%
18%
18%
Invest in a
combination of:
•
•
•
•
VCP Total Balanced Portfolio
VCP Value Portfolio
30%
20%
20%
20%
Invest equally in:
• SunAmerica Dynamic Allocation Portfolio
• SunAmerica Dynamic Strategy Portfolio
45%
45%
Invest in:
90%
Invest in:
90%
Or a total of 90%may be invested in any combination of the following portfolios:
•C
orporate Bond (Federated Investment
Management Company)
•S
A JPMorgan MFS® Core Bond (J.P. Morgan
Investment Management Inc., Massachusetts
Financial Services Company)
• Cash Management (BofA Advisors, LLC)
•G
lobal Bond (Goldman Sachs Asset
Management International)
A maximum of 50% may be allocated to
any of these portfolios:
•G
overnment and Quality Bond
(Wellington Management Company LLP)
•V
CP Managed Asset Allocation SAST Portfolio
(Capital Research and Management Company)
•R
eal Return (Wellington Management
Company LLP)
•V
CP Total Return Balanced Portfolio
(Pacific Investment Management Company LLC)
• VCP Value Portfolio (Invesco Advisers, Inc.)
n
n
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 an 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.
n
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
Additional Investment Options brochure to learn more.
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Take advantage 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 current income and moderate capital appreciation while managing portfolio volatility
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 component will generally
be divided among growth equity and value equity portfolios, drawing on research provided by
Wilshire Funds Management.6
SunAmerica Dynamic Strategy Portfolio (SDSP): The fund-of-funds component will generally
invest a greater portion of its assets in value equity portfolios than growth equity portfolios,
drawing on research provided by Ibbotson Associates, Inc.
Risk
Management
Process
• W
hen the equity market is expected to experience high levels of volatility, the Portfolio’s
overall level of equity exposure (“net equity exposure”) may be decreased through the overlay
component to help protect against potential declines. When the equity market is expected to
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%
Target 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.
n 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.
n 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.
10
Please see page 12 for important risks and additional information.
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Universe of Underlying Portfolios
Asset Class**
Large Core
Portfolio
Money Manager(s)
Equity Index
SA MFS® Massachusetts
Investors Trust
Growth and Income
Equity Opportunities
Growth
SunAmerica Asset Management, LLC
Massachusetts Financial Services Company
International Growth and Income
International Diversified Equities
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.
T. Rowe Price Associates, Inc., Wellington Management Company LLP,
Brandywine Global Investment Management, LLC
Invesco Advisers, Inc.
T. Rowe Price Associates, Inc., Wellington Management Company LLP, SunAmerica Asset Management, LLC
Goldman Sachs Asset Management, L.P., Massachusetts Financial
Services Company, SunAmerica Asset Management, LLC
Franklin Advisory Services, LLC
ClearBridge Investments, LLC, J.P. Morgan Investment Management
Inc., SunAmerica Asset Management, LLC
Pyramis Global Advisors, LLC
Templeton Investment Counsel, LLC
Janus Capital Management LLC, T. Rowe Price Associates, Inc.,
Putnam Investment Management, LLC
Morgan Stanley Investment Management Inc.
International—
Emerging Markets
Emerging Markets
Global
Global Equities
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
SA Columbia Focused Value
“Dogs” of Wall Street
SA Legg Mason BW Large Cap Value
Growth Opportunities
Mid-Cap Growth
Mid Cap Growth
Aggressive Growth
Small and
Mid Cap Value
Small Blend
Specialty
International—
Developed
Markets
Investment
Grade Bonds
Mid Cap Value
Small Company Value
Small & Mid Cap Value
Small Cap
Real Estate
Natural Resources
Technology
Telecom Utility
Foreign Value
International Equity
Corporate Bond
Federated Investment Management Company
Diversified Fixed Income
PineBridge Investments, LLC, Wellington Management Company LLP
Global Bond
Goldman Sachs Asset Management International
Government and Quality Bond
SA JPMorgan MFS Core Bond
®
SDAP SDSP
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
J.P. Morgan Investment Management Inc., Massachusetts Financial
Services Company
High-Yield Bonds
High-Yield Bond
PineBridge Investments, LLC
Inflation Protected
Securities
Real Return
Money Market
Cash Management
BofA Advisors, LLC
Wilshire Funds Management is the global investment unit of Wilshire Associates Incorporated.
*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.
6
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Performance
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.*
Important risks
and additional information
n While Volatility Control Portfolios employ risk management processes that seek to manage volatility with 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.
n 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.
n 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.
n 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.
n 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.
n 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 below.
n 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 indices, 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%.
n 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.
n 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.
n 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
n The Portfolio’s target volatility level is not a total return performance target. Total return performance is not expected to be within any specified
target range.
n The Portfolio’s 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.
n Although the Portfolio seeks investments in undervalued companies, judgments that a particular security is undervalued may prove incorrect.
Additional Risks
n There is no assurance that a Portfolio’s investment process will achieve its specific investment objectives.
n 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.
n 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.
n 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.
n 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.
n 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.
n 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.
n 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 Cash Management
portfolio is subject to potential loss of principal; unlike certain money market instruments, it does not seek to maintain a net asset value of $1.
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Performance
Additional Volatility Control Portfolios
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.
n
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
n
Portfolio Management: Capital Research and Management Company7 (investment adviser8);
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).
n
Investment goals: Seeks capital appreciation and income while managing portfolio volatility
n
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.
7
n
Investment goals: Seeks current income and moderate capital appreciation while managing
portfolio volatility
n
Portfolio Management: SunAmerica Asset Management, LLC (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” and the “Underlying Fund.” Please see additional information below
concerning the Portfolio’s structure.
8
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 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. 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 and related expenses.
Milliman Financial Risk Management LLC is not an affiliate or member of Capital Research and Management Company or The
Capital Group Companies.
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Protection for the sense of
security you want
Polaris offers ways to “insure” your retirement assets against market uncertainty—whether
your goal is to grow and protect your investment for lifetime income or protect your investment
for your family.
Your objective
Grow and secure income—including
rising lifetime income to help protect your
retirement lifestyle
Protect your beneficiaries from
investment loss in a down market
These optional protection features are available for an
additional fee and subject to restrictions and limitations.
Optional features must be elected at the time of
purchase and, once elected, may not be changed. Not
all features are available in all states.
Are you 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?
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Your Polaris strategy
n
Polaris Income Plus® (age 45-80)
n
Polaris Income Builder ® (age 65-80)
n
O
ptional enhanced death benefit
You may choose only one income protection option. The
guarantees associated with Polaris protection features
are backed by the financial strength and claims-paying
ability of the issuing insurance company.
Secure lifetime income for retirement with
Polaris Income Plus
Protection
®
Protected lifetime income that can
go up—even after withdrawals begin
Polaris Income Plus can help you secure your retirement income—no matter how the market
performs. It offers you the assurance of guaranteed lifetime income, the opportunity for rising
income, and income that is protected from market volatility.
n
The opportunity for rising income. Income Plus
“locks in” the greater of your investment gains or an
annual income credit of up to 6% on each contract
anniversary during the first 12 contract years (called
the “income credit period”) for future income. The full
6% income credit is available in years withdrawals
are not taken.
n
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.
n
Income that’s guaranteed to last. Count on a
guaranteed stream of lifetime income for as long as
you—or you and your spouse—are living.
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 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 enclosed
product summary brochure and a 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.
If you select this feature, investment requirements
apply. Please see page 9 for more information.
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Polaris with Income Plus is designed to offer you more while
you’re accumulating money for your retirement
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
Age
Income credit
60
61
62
63
64
65
Assumed age at contract issue: 60
Important information about the hypothetical illustrations shown
n Hypothetical illustrations are not to scale and are intended solely to depict how 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
n Income Credit: The amount that may be added to your Income Base, calculated as a percentage of your Income Credit Base.
n Income Base: The amount on which guaranteed withdrawals and the fee 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 eligible purchase payment. On each contract anniversary, the Income Base
is set to equal the greater of (a) the anniversary value, if greater than all previous anniversary values, 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
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Income Plus
6% income credit “stacks” on high anniversary values
ACCUMULATION
The 6% income credit is added on
top of the current Income Base, which
may include investment gains locked
in on prior contract anniversaries. This
is known as stacking. What’s more,
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
If you choose not to take any withdrawals during the first 12 contract years, your Income Base is guaranteed to
be at least 200% of your eligible first-year purchase payments on the 12th contract anniversary (the Minimum
Income Base)—regardless of market performance.
Income Base doubles on
12th contract anniversary
Income Base
Contract Value
Age
Income credit
n
n
n
53
54
55
56
57
58
59
60
61
62
63
64
65
Annuity Date (95th birthday). On the 12th contract anniversary, the Income Base may be increased to the Minimum Income Base
(200% of eligible first-year purchase payments) if no withdrawals have been taken from the contract. The Income Base will be
increased each time an eligible purchase payment is made and adjusted for excess withdrawals.
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 eligible 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 an eligible purchase
payment is made and 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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When you are ready to take income, Polaris with Income Plus
offers valuable protection and growth opportunities
INCOME
An Income Base protected from market volatility
Downside protection at all times
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 a liquidation value, nor is
it available as a lump sum.
Income Base
Contract Value
Age
65
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 of
taxable amounts are subject to ordinary income tax
and, if taken prior to age 59½, an additional 10% federal
tax may apply. Early withdrawals may be subject to
withdrawal charges if they exceed certain parameters.
Additional terms used in this section and important information
n Eligible Purchase Payments: Purchase payments received in the first contract year only; all other purchase payments are ineligible.
Income credits and spousal continuation contributions are not included in the calculation of eligible purchase payments.
n Anniversary Value: The contract value on your contract anniversary (including any spousal continuation contributions), less ineligible
purchase payments.
n 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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Income Plus
Opportunity to “lock in” investment gains for rising income
INCOME
Guaranteed lifetime income increases
whenever the Income Base “steps up”
If the Income Base “steps up” from
investment gains on a contract
anniversary in a rising market, so
does your income.
Income Base
Contract Value
65
Age
Investment gains
66
67
68
69
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. (Of course, 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% are taken
Income Base
Contract Value
Age
Income credit
n
65
66
67
68
69
70
71
72
73
74
75
76
77
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 20 for additional information,
including important information concerning withdrawals.
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Additional information about
optional income protection features
Withdrawals
n 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. 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.
n 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.
n 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 or
Income Builder 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 pages 21 and 23. As a result, the amount available for lifetime
income will decrease. If you select Income Plus 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.
n 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.
n 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.
n 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. Only certain purchase payments received in the first contract year are included in the
Income Base.
n
Latest Annuity Date
n
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
n
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 Cash Management portfolio. After cancellation, additional purchase payments
will no longer be automatically allocated to the SVA. 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.
n Joint Life option: In the event of a death, spousal continuation 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.
n Please see the prospectus for additional information about what happens in the event of divorce or other changes affecting the
contract owners or beneficiaries.
n 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.
n These features may be automatically terminated under certain circumstances, such as when the contract is annuitized or surrendered.
Other circumstances may also apply.
n
Please see the prospectus for complete details, including limitations and restrictions.
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Income Plus
A choice of income options
Income Plus offers you a choice of income options so you
can secure an income stream that’s right for you
Withdrawals beginning at age 65 or later
Maximum Annual
Withdrawal Amount
Income Options
(as a percentage of your Income Base)
Protected Income Payment
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
Income Option 1
5.5% (5% Joint Life)
3%*
Income Option 2
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.
Additional terms used in this section and important information
n 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.
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Secure lifetime income for retirement with
Polaris Income Builder
®
Predictable lifetime income with the
opportunity for an income credit
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.
n
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.
n
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.
n
The opportunity for a 200% retirement income
guarantee. If you do not take any withdrawals during
the first 12 contract years, you can count on a floor
for retirement income that’s guaranteed to be at least
200% of your eligible first-year purchase payments
on the 12th contract anniversary (the “Minimum
Income Base”).
If you select this feature, the investment requirements
described on page 9 will apply. To realize the feature’s
benefits, withdrawals must be taken within the feature’s
parameters. Withdrawals of taxable amounts are subject
to ordinary income tax and, if taken prior to age 59½, an
additional 10% federal tax may apply. Early withdrawals
may be subject to withdrawal charges if they exceed
certain parameters.
Terms used in this section
n
n
n
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 Base: The amount on which guaranteed withdrawals and the fee 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 eligible purchase payment. On each contract anniversary, the Income
Base is set to equal the greater of (a) the anniversary value, if greater than all previous anniversary values, 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 eligible first-year purchase payments) if no withdrawals have been taken from the contract. The Income Base will be
increased each time an eligible purchase payment is made and adjusted for excess withdrawals.
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 eligible 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
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Income Builder
Access up to 5.5% withdrawals when you’re ready for income
Income Builder
Maximum Annual
Withdrawal Amount
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.
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 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,
n
n
n
n
5.25% (4.75% Joint Life)
non-discretionary formula. The minimum issue age for this
feature is 65 and the maximum issue age is 80. Please see
the enclosed product summary brochure and a 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 20 for additional information, including
important information concerning withdrawals.
Base steps up due to the addition of the income credit. The Income Credit Base will be increased each time an eligible purchase
payment is made and 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.
Eligible Purchase Payments: Purchase payments received in the first contract year only; all other purchase payments are ineligible.
Income credits and spousal continuation contributions are not included in the calculation of eligible purchase payments.
Anniversary Value: The contract value on your contract anniversary (including any spousal continuation contributions), less ineligible
purchase payments.
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.
23
R5165CON.18 (9/15)
Protect assets for your loved ones with
Family protection
Choose the protection that’s right for you and your family
The Standard Death Benefit is automatically included
in your contract 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).
If you would like to provide enhanced protection for the
beneficiaries you’ve named, you can select the Maximum
Anniversary Value Death Benefit that is available for an
additional fee.
n
“Lock in” investment gains with the Maximum
Anniversary Value Death Benefit option. The
maximum issue age for this option is 80. It is available
for an additional fee rate of 0.25%.
The Maximum Anniversary Value Death Benefit provides
your family with the greatest of:
1. contract value; or
2. purchase payments (adjusted for withdrawals); or
3. the highest value of your contract on any contract
anniversary prior to your 83rd birthday (adjusted
for withdrawals and increased by purchase
payments since that anniversary).
When calculating either of these death benefits,
adjustments are made to account for additional purchase
payments, withdrawals, and any charges applicable
to withdrawals. The calculation will differ if an income
protection option is elected. Please see “additional
information” section below for details.
Flexibility for your spouse and continued protection for your family
n
Spousal continuation: 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 about the
contract’s death benefit and income protection feature
limitations if spousal continuation is elected.
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.
n 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.
n 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.
n 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.
n If you elect an income protection option 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 option (or you elect an income
protection option 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 an income protection option.
n 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.
n
n
24
R5165CON.18 (9/15)
Strength
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, together with their sister life insurance company,
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 6/30/15.)
Your financial advisor can help you determine if Polaris is
right for you.
25
R5165CON.18 (9/15)
This material must not be used without a Polaris product summary brochure; it cannot be used alone. 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.
Additional information about the SunAmerica Dynamic Allocation Portfolio
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.
n Additional information about the SunAmerica Dynamic Strategy Portfolio
Ibbotson provides consulting services to SunAmerica Asset Management, LLC but is not acting in the capacity of advisor to individual
investors. The Ibbotson name and logo are either trademarks or service marks of Ibbotson Associates, Inc. Ibbotson Associates is not
affiliated with SunAmerica Asset Management, LLC or the insurance companies listed below.
n 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) except in New York, where they 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).
Contract form numbers:
AGL: AG-803 (7/13)
US Life: FS-993-PPIII (12/10), FS-993 (12/10),
FS-993-PPS4/PPS7 (12/10)
aig.com/annuities
R5165CON.18 (9/15)
R5165CON.18 (9/15)
Additional Investment Options
& Investor Questionnaire
Available if an income protection feature is not elected
R5165CN1.9 (9/15)
Leading Money Managers
Polaris offers you access to leading money managers, a broad range of individual
variable portfolios and professionally designed asset allocation strategies.
n
The investment choices described in this brochure
are available if you do not elect an optional income
protection feature. Your financial advisor can help
you choose an investment allocation that’s right for
you and your retirement needs.
n
ou may also use the Investor Questionnaire
Y
included in this brochure to help identify a Polaris
Portfolio Allocator model consistent with your time
horizon and tolerance for risk.
1
2
2
2
Additional information about investing in the variable portfolios
n
n
n
n
n
n
n
n
n
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.
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 Cash Management
portfolio is subject to potential loss of principal; unlike certain money market instruments, the portfolio does not seek to maintain a net asset
value of $1.
R5165CN1.9 (9/15)
Asset
Class
Polaris
Portfolio
Money
Manager
Large Growth
SA AB Growth
American Funds Growth SAST 3, 4
Blue Chip Growth
Capital Growth
Fundamental Growth
Capital Research and Management Company
Marsico Capital Management, LLC
The Boston Company Asset Management, LLC
Large Core
SA MFS® Massachusetts Investors Trust
Equity Opportunities
OppenheimerFunds, Inc.
Large Value
SA Legg Mason BW Large Cap Value
American Funds Growth-Income SAST 3, 4
Invesco V.I. Comstock Fund 5
Invesco V.I. Growth and Income Fund 5
Growth-Income
Lord Abbett Growth and Income6
“Dogs” of Wall Street
Brandywine Global Investment Management, LLC
Lord, Abbett & Co. LLC
Small and
Mid Cap
Small & Mid Cap Value
Small Company Value
Growth Opportunities
Mid-Cap Growth
Aggressive Growth
Franklin Advisory Services, LLC
Multi Cap
Invesco V.I. American Franchise Fund 5
Capital Appreciation
Growth
Specialty
Technology
Telecom Utility
Real Estate
Natural Resources
Pyramis Global Advisors, LLC
Foreign and
Global Stock
American Funds Global Growth SAST 3, 4
Global Equities
International Diversified Equities
International Growth and Income
Foreign Value
Morgan Stanley Investment Management Inc.
Putnam Investment Management, LLC
Templeton Investment Counsel, LLC
Emerging Markets
Emerging Markets
Balanced
American Funds Asset Allocation SAST 3, 4
VCP Managed Asset Allocation SAST Portfolio® 4,7
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
Managed Allocation Balanced
Managed Allocation Growth
Managed Allocation Moderate
Managed Allocation Moderate Growth
SunAmerica Dynamic Allocation Portfolio® 8
SunAmerica Dynamic Strategy Portfolio® 8
Edge Asset Management, Inc.
Franklin Advisers, Inc.
Franklin Templeton Services, LLC
Pacific Investment Management Company LLC
Corporate Bond
Global Bond
SA JPMorgan MFS® Core Bond
Government and Quality Bond
Real Return
Federated Investment Management Company
Goldman Sachs Asset Management International
J.P. Morgan Investment Management Inc./Massachusetts
Financial Services Company
High-Yield Bond
High-Yield Bond
PineBridge Investments, LLC
Money Market
Cash Management
BofA Advisors, LLC
Corporate/
Govt. Bond
American 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. 2 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.
3
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. 4 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. 5 AIM Variable Insurance Funds (Invesco Variable Insurance Funds)—Series II Shares. 6 Lord Abbett Series Fund, Inc. 7 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 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. 8 The 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
R5165CN1.9 (9/15)
Investor Questionnaire
Assess your time horizon and tolerance for risk
n
The
following Investor Questionnaire is educational in nature and designed to help you evaluate
investment considerations, including your time horizon and tolerance for risk.
use the questionnaire, developed by Ibbotson
To
Associates, Inc.—a recognized leader in asset
allocation for more than three decades—simply answer
each question and total your scores where indicated.
n
Investment Time Horizon Section — 2 Questions
POINTS
1. In how many years will you begin to withdraw funds from this account?
a. Less than 1 (0 points)
c. 3–4 (3 points)e. 8–10 (9 points)
b. 1– 2 (1 point)
d. 5–7 (6 points)f. 11 years or more (11 points)
2. Once you start taking funds out of your account, over how many years will you continue to withdraw funds?
a. Lump sum withdrawal (0 points) c. 5–7 (4 points)
e. More than 11 (6 points)
b. 1– 4 (2 points)
d. 8 –10 (5 points) Investment Time Horizon Score
Risk Tolerance Section—8 Questions
POINTS
1. B
y 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?
a. My main goal is to avoid loss, even though I may only keep pace with inflation. (0 points)
b. My main goal is to earn slightly more than inflation, while taking on a low level of risk. (5 points)
c. 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)
d. 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.
$30,000
$30,000
$27,500
$25,000
$26,000
$27,000
$28,000
$22,500
$20,000
Dashed
line
represents
Average
Outcome
$17,500
$15,000
$15,000
$13,500
$12,500
$12,500
$10,500
$10,000
A
B
C
D
The initial investment into each portfolio was $20,000. Which portfolio would you be most comfortable owning?
a. Portfolio A (0 points) b. Portfolio B (4 points) c. Portfolio C (7 points) d. Portfolio D (12 points)
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?
a. I would immediately change my portfolio. (0 points)
b. I would wait at least 6 months before adjusting my portfolio. (3 points)
c. I would wait at least 1 year before adjusting my portfolio. (6 points)
d. I would not change my investment strategy. (10 points)
R5165CN1.9 (9/15)
POINTS
4. T
he following table presents the probable chance of experiencing a loss and probable dollar gain for a $100,000
investment in four hypothetical portfolios over a one-year holding period. Based on the information provided
below, which of the following portfolios would you select for your account?
Portfolio A
Chance of Experiencing a Loss (%)
Probable Dollar Gain ($)
a. Portfolio A (0 points)
Portfolio B
Portfolio C
Portfolio D
29%
31%
32%
34%
$5,000
$6,000
$7,000
$8,000
b. Portfolio B (4 points)
c. Portfolio C (7 points)
d. Portfolio D (12 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?
Portfolio A
% Return
60%
Portfolio B
60%
40%
40%
40%
20%
20%
20%
0%
0%
0%
-20%
-20%
-20%
-40%
-40%
1 Year
Portfolio C
60%
-40%
1 Year
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
5%
9
-16%
Portfolio B
6%
10
-18%
Portfolio C
7%
11
-22%
Portfolio D
8%
12
-28%
d. Portfolio D (12 points)
7. Investment decisions are generally determined by a risk-return tradeoff. 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
a.
Strongly
Agree
(0 points)
b.
Agree
(4 points)
c.
Risk & Return are
equally important
(8 points)
d.
Disagree
(11 points)
e.
Strongly
Disagree
(14 points)
Primary
concern is
maximizing return
8. T
he 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?
a. Little—I would rather have small returns than risk losing any money. (0 points)
b. S
ome—I would like to achieve higher returns over time and can withstand an occasional, large
downturn in the value of my portfolio. (6 points)
c. 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 You can use the table on the next page to identify the Polaris Portfolio Allocator model that best matches your two
total scores.
R5165CN1.9 (9/15)
Investor Questionnaire: Results
Find the strategy that matches your score
n
Enter your scores from the Investor Questionnaire
on the lines below. Follow the column and row
to where your two scores meet to find the asset
allocation strategy that best matches your score. The
number identified refers to the corresponding Polaris
Portfolio Allocator model.
n
Polaris Portfolio Allocator model can serve as a
A
guide when designing your investment allocation.
The models generally comprise a mix of stock and
fixed income asset classes.
Your Total Time Horizon Score:
Your Total Risk
Tolerance Score:
(Circle the appropriate
range on the right)
(Circle the appropriate range below)
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: Fixed Income/Stocks
n
n
Model 1: 50%/50%
n
Model 2: 40%/60%
your time horizon score is less than 3 or your risk
If
tolerance score is less than 15, a more conservative
approach may be appropriate. Your financial advisor
can help you evaluate the Polaris Portfolio Allocator
model, or alternative choices, to help ensure that it
meets your specific financial situation.
n
n
Model 3: 30%/70%
n
Model 4: 10%/90%
hese situations are different for each client and
T
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 Polaris Portfolio Allocator models
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.
n You may make additional investments in other portfolios if they are not included in the model you’ve selected.
n 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 proportionally 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.
n Asset allocation models may not be appropriate if you are interested in directing your own investments.
n 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.
n Polaris Portfolio Allocator models are 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 the 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, semiannually, 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.
n R5165CN1.9 (9/15)
Polaris Portfolio Allocator Models
Take advantage of the potential benefits of asset allocation
n
Polaris Portfolio Allocator models are developed
by Ibbotson Associates, Inc. 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.
n
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.
American Funds Growth 100
Marsico Focused Growth 80
Capital Growth 50
MFS ® Massachusetts Investors Trust 100
Small Company Value 75
Mid-Cap Growth (J.P. Morgan) 30
Multi-Cap Growth 75
Real Estate (Davis) 100
International Diversified Equities (Van Kampen) 75
Growth-Income (J.P. Morgan) 40
Lord Abbett Growth and Income N/A
“Dogs” of Wall Street (SAAMCO) 30
Small & Mid Cap Value (AllianceBernstein) 100
Growth Opportunities (Invesco) 50
Capital Appreciation (Wellington) 100
Multi-Cap Growth 75
Multi-Cap Growth 75
Multi-Cap Growth 75
American Funds Global Growth SAST 100
Foreign Value (Templeton) 50
Emerging Markets (Putnam)
Total Return Bond (PIMCO) 60 Emerging Markets (Putnam)
Corporate Bond (Federated) 100
Global Bond (Goldman Sachs) 80
Total Return Bond (PIMCO) 60 Total Return Bond (PIMCO) 60 Government and Quality Bond (Wellington) 40
Real Return 20
High-Yield Bond (AIG SunAmerica Asset Mgmt) 100
American Funds Growth-Income SAST 100
Davis Venture Value 85
Invesco Van Kampen V.I. Comstock 70
Invesco Van Kampen V.I. Growth and Income 55
Equity Opportunities 75
Capital Growth 50
Blue Chip Growth 65
Capital Growth 50
Blue Chip Growth 65
Blue Chip Growth 65
Capital Growth 50
Blue Chip Growth 65
Total Return Bond (PIMCO) 60 Government and Quality Bond (Wellington) 40
Government and Quality Bond (Wellington) 40
Government and Quality Bond (Wellington) 40
Real Return 20
Real Return 20
Real Return 20
Model 1
Model 2
Model 3
Model 4
50% / 50%
40% / 60%
30% / 70%
10% / 90%
American Funds Growth SAST 3, 4
2%
2%
2%
2%
1%
2%
3%
4%
Blue Chip Growth (Massachusetts Financial Services Company)
2%
2%
2%
4%
Capital Growth (The Boston Company Asset Management, LLC)
2%
3%
3%
4%
SA MFS Massachusetts Investors Trust
7%
7%
7%
8%
Equity Opportunities (OppenheimerFunds, Inc.)
2%
3%
4%
6%
4%
4%
4%
5%
Suggested Target Allocation: Fixed Income/Stocks
®
SA Legg Mason BW Large Cap Value (Brandywine Global
Investment Management, LLC)
American Funds Growth-Income SAST 3, 4
—
—
1%
5%
Invesco V.I. Comstock Fund 5
6%
6%
7%
8%
Invesco V.I. Growth and Income Fund 5
6%
7%
8%
8%
Growth-Income (J.P. Morgan Investment Management Inc.)
5%
6%
7%
8%
“Dogs” of Wall Street (SunAmerica Asset Management, LLC)
3%
3%
3%
5%
Small & Mid Cap Value (AllianceBernstein L.P.)
2%
2%
2%
2%
Small Company Value (Franklin Advisory Services, LLC)
—
2%
2%
1%
Capital Appreciation (Wellington Management Company LLP)
2%
3%
4%
5%
Real Estate (Pyramis Global Advisors, LLC)
—
—
—
1%
American Funds Global Growth SAST 3, 4
2%
2%
3%
6%
2%
2%
3%
3%
Foreign Value (Templeton Investment Counsel, LLC)
2%
3%
3%
3%
Emerging Markets (J.P. Morgan Investment Management Inc.)
—
1%
2%
2%
Corporate Bond (Federated Investment Management Company)
10%
8%
7%
1%
Global Bond (Goldman Sachs Asset Management International)
4%
4%
2%
2%
SA JPMorgan MFS Core Bond
15%
12%
10%
5%
Government and Quality Bond (Wellington Management Company LLP)
10%
9%
7%
2%
International Diversified Equities (Morgan Stanley Investment
Management Inc.)
®
Real Return (Wellington Management Company LLP)
7%
4%
2%
—
High-Yield Bond (PineBridge Investments, LLC)
4%
3%
2%
—
Actual allocation may differ
from the target allocation.
Lower
R5165CN1.9 (9/15)
Risk/Reward
Higher
This material must not be used without a Polaris Variable Annuity product brochure; it cannot be used alone. 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.
Additional information about the Investor Questionnaire and Polaris Portfolio Allocator models
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 models and Investor Questionnaire are designed and licensed by Ibbotson Associates, Inc. (“Ibbotson”). These
materials are provided for educational purposes only and should not be considered investment advice. Ibbotson does not endorse and/or
recommend specific financial products that may be used in conjunction with the models and questionnaire. Please consult your financial advisor
for assistance in developing a portfolio specific to your needs and objectives before investing.
n The Investor Questionnaire is not approved for use with participants in group retirement plans governed by ERISA.
n 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 or the insurance companies listed below.
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.
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 numbers FS-993-PPIII (12/10), FS-993 (12/10) and FS-993-PPS4/PPS7 (12/10), 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).
© 2015 Ibbotson Associates, Inc.
1-800-445-7862
aig.com/annuities
R5165CN1.9 (9/15)
R5165CN1.9 (9/15)

Polaris Platinum III

Transcription

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