American International Group, Inc. (NYSE: AIG) today announced the launch of Elite Index II ® cost-effective universal life insurance with simplified guarantees, an optional chronic illness accelerated benefit rider, increased cap rates (now at 13 percent), and higher participation rates (now at 70 percent), which provide greater opportunity for growth in a well-performing market.
Elite Index II is offered with the Accelerated Access Solution SM, an innovative rider that provides policy holders the option to accelerate the death benefit, income tax free (based on current tax laws), in the event of a chronic illness if all applicable criteria are met.
“We’ve designed Elite Index II to be not only a smart choice for our distribution partners to sell, but also a smart solution for many consumers to buy, as it offers upside potential and downside protection,” said James A. Mallon, President, Life Insurance, AIG Global Consumer Insurance. “Elite Index II offers an affordable death benefit and a simplified no-lapse guarantee for 20 years or until age 80, whichever comes first, as well as the potential for growth in policy value and the ability for clients to access the funds while still living. It is life insurance you don’t have to die to use.”
With Elite Index II, clients can choose from among three interest-crediting accounts to fit individual needs:
- A declared interest account with a 2 percent guaranteed minimum annual interest rate.
- A choice between two index interest accounts with interest crediting linked to the S&P 500 ® with a minimum annual guaranteed interest rate of 0.25 percent, regardless of index performance. These index accounts provide the potential for higher crediting interest rates when the index is up and the safety of a minimum guaranteed interest rate.
- Further flexibility is provided through a Choice Loan option, which allows Elite Index II policy holders to access their funds, but also have the loan collateral eligible for index interest.