FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION CriticalCare Plus ® Coverage to help fill a critical gap Presented by… Policies issued

FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION

CriticalCare Plus®

Coverage to help fill a critical gap

Presented by…

Policies issued by American General Life Insurance Company, a member company of AIG


Are your clients asking questions about health care?

This conversation is top of mind.

Maybe it’s time to revisit some ideas and solutions that can help address these concerns with your clients…


New Sales OpportunitiesCritical Illness insurance can give clients piece of mind by

providing funds for what’s best for their health and to help

preserve their wealth. It can also be used by small business

owners to protect the business continuity from one generation/

partner to another in the case of illness.

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Life Insurance is a Key Component to Any Financial Plan

But What If You Don’t Die?Tremendous breakthroughs in medical technology have vastly improved survival rates

Life expectancy – People are living longer!

– In 2050, the number of Americans age 65 and older is projected to be 88.5 million,

more than double its projected population of 40.2 million in 2010.1

– For a married couple age 65, there is a 50% chance that at least one spouse will live

to 94, and a 10% chance that one will live to 104.2

Medicine saves people, but quality health care does not come cheap

Let’s look at some eye opening statistics!

1 The Next Four Decades, The Older Population in the United States: 2010 to 2050 U.S. Department of Commerce, Economics and Statistics Administration, U.S. Census Bureau. Issued May 2010, P25-1138.

2. Prepared by Ernst & Young Insurance and Actuarial Advisory Services practice. The analysis uses the Annuity 2000 mortality table with Scale G2 mortality improvements.

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Eye Opening Stats

83.6 million Americans are living with cardiovascular diseases1

75% of people who suffer a heart attack survive at least three years2

About 6.8 million Americans over age 20 had a stroke1

70% of people who suffer a stroke survive at least three years3

1American Heart Association, Heart Disease and Stroke Statistics – 2013 Update2American Heart Association, Heart Disease and Stroke Statistics – 2011 Update3American Heart Association, Heart Disease and Stroke Statistics – 2010 Update

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Eye Opening Stats

Between 50% and 70% of stroke survivors regain functional

independence, but 15% to 30% are permanently disabled, and 20%

require institutional care at 3 months after onset1

In 2013, 1.66 million Americans were expected to be diagnosed with

cancer2

68% were expected to survive at least five years2

Average out-of-pocket cost for cancer patients is $1,266 per month3

1American Heart Association, Heart Disease and Stroke Statistics – 2011 Update2American Cancer Society, Cancer Facts & Figures, 2013 update32011 ASCO Annual Meeting, Yousuf Zafar, MD, MHS, Assistant Professor of Medicine,Duke Cancer Institute. https://meetinglibrary.asco.org/content/58992

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What if They Don’t Die?

They may have to direct monies that they had planned to use to save for

retirement or pay their life insurance premiums

If they lapse their life insurance policy they may not be able to get it back!

Help protect your clients with another insurance solution!

– Life insurance can protect your clients from an untimely death

– Critical Care Insurance can protect your clients from an untimely diagnosis

Don’t leave your clients exposed!

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Your Client’s Should Be Aware

If they become seriously ill they may have out

of pocket liabilities

The medical networks that your clients can

utilize are getting smaller and smaller

The likelihood of your client having to go to an

out of network facility is increasing everyday

– Out of network = potentially more money out of

their pocket

How are they going to pay for these additional

expenses?

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Flexibility

With a Critical Care Insurance Policy if the client gets diagnosed with a

qualifying illness they can use the policy proceeds to help with whatever they

want

The money goes directly to the insured policy owner

– Use the money for medical expenses

– Pay other bills

– Still pay life insurance premiums

– Pay out of network costs

Basically any expense they have!

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Costs not Covered by Traditional Health Insurance

Direct Costs Indirect Costs

Deductibles Lost Income

Co-Pays Lifestyle Changes

Policy Exclusions(Such as experimental

treatment)

Increased Financial Responsibility

Out of Network Medical Costs

Transportation and Lodging for Non-Local

Treatment


Who are the prospects?

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Target Markets

Individuals in blue collar occupations

High “wage earning” professionals

Individuals with certain medical conditions

Knee problems

Situational depression

Clients with life insurance coverage

Single working parents

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Target Markets

Individuals not eligible for disability income

insurance

Individuals in high risk occupations

Stay at home parent’s

Individuals with back problems

Individuals with situational depression or

other disqualifying health issues

Small business owners without an

established level of income

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Strengthen clients’financial resources andcreate new incomestreams for your business

CriticalCare Plus

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Key Benefits and Features

With the option to secure a lump-sum critical illness

coverage up to $500,000, benefits include:

Immediate payment to the insured upon diagnosis of a

qualifying illness

Tax-free payment to policyowner1

Freedom to use the policy payout as needed-

To replace lost income, cover deductibles, co-pays or out-of-

network expenses

Pays in addition to other insurance

Loss of Independent Living Benefit included

1Based on current federal income tax laws.

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Make Decisions Based on Health not Wealth

Benefits Provide the Freedom to help:

Choose the best hospitals and physicians

Elect treatments or services not covered by traditional health insurance

Pay mortgage, debts, or outstanding bills

Seek experimental drugs or therapies

Modify a home for special needs

Stay home from work until you are ready to return

CriticalCare Plus

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Policy Specifications

$10,000 minimum

$500,000 maximum

Issued in $1,000 increments

Spouse coverage not to exceed primary insured’s coverage;

not to exceed 50% for non-working spouse

Insured child limit of $50,000 (not to exceed primary insured’s

coverage)

Issue Limits

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Policy Specifications

Male or Female

Age 18-64 for all non-tobacco plans

except the 10-year term plan

Age 18-59 for the 10-year term

plan and all tobacco plans

Nicotine or Non-nicotine

Three rate bands

– $10,000 to $50,000

– $50,001 to $100,000

– $100,001 to $500,000

Rates & Riders

Benefit Extension Rider (optional)

Medical Personnel HIV Benefit

Rider (optional; medical personnel

only)

Accidental Death and

Dismemberment (optional)

UNOS Listing Advance Benefit

for Major Organ Transplant

(no additional charge)

Issue age tobacco and non-tobacco in Pennsylvania is 18-55.

BER is not available in AR, CT, GA, ID, TX, UT, VA, and WA

Medical Personnel HIV Rider is not available in California, Georgia, Pennsylvania or South Dakota

The Benefit Extension Rider is only available on plans with cancer coverage included.

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Qualifying Events1

1All benefits payable are subject to the terms and conditions of the policy, including benefit durations, limitations and exclusions. Benefits, coverage and coverage options, riders, issue ages, limitations and exclusions vary by state. Please consult the policy and rider forms and outline of coverage for details.

Cancer Major Organ Transplant

Paralysis (100% for Quadriplegia or

50% for Paraplegia or Hemiplegia)

Kidney (Renal) FailureLoss of Sight, Speech or

Hearing Cancer In Situ

(25% up to $25,000)

Heart AttackLoss of Independent

LivingUp to $50 per Year

Health Screening Benefit

Severe BurnsCoronary Artery Bypass (25%, up to a maximum of $50,000, one-time benefit)

Stroke

Coma

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Loss of Independent Living

Loss of Independent Living is defined as permanent loss of two

or more of the six activities of daily living, with an elimination

period of 180 days:

LOIL – Unique qualifying event to CriticalCare Plus

Bathing Dressing Toileting

Transferring Continence Eating

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CriticalCare Plus

Full benefit is payable through age 70

No reduction at age 65

After age 70; Loss of Independent Living remains the sole covered

condition with full benefits for life

Other key product features include:

Preventative Care Benefit

Return of Premium

Pays named beneficiary 100% of all paid premiums, minus any benefits paid, upon

death of the insured.

Return of Premium is not available in Iowa, Pennsylvania, Texas and Virginia.

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Costs that can be Covered by CriticalCare Plus

Blood test for triglycerides Mammography

Breast ultrasound Pap test

Chest X-Ray PSA (blood test for prostate cancer)

Colonoscopy Serum cholesterol to determine HDL and LDL

Electrocardiogram Serum protein electrophoresis

(blood test for myeloma)

Fasting blood glucose Stress test

Flexible sigmoidoscopy Hemocult stool analysis

In addition pays up to $50 for health screening tests during each calendar year

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The only critical illness with term options:

In addition to the Lifetime Plan, CriticalCare Plus is also available as: –10-Year Term–15-Year Term–20-Year Term–30-Year Term

Why would I purchase a critical illness insurance for a specified coverage period?–To provide coverage until the children graduate college–To provide coverage for the balance of the mortgage–To provide coverage for the period of an outstanding loan or any

other limited financial obligation–Succession planning – business continuity


Underwriting

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Underwriting

CriticalCare Plus is a fully underwritten product.

Face amount of $100,000 and under require non-medical

underwriting. Face amounts over

$100,000 require medical underwriting.

Face Amount Ages 18-40 Ages 41-50 Ages 51-64

$100,001-249,999 PM, B/U PM, B/U PM, B/U, EKG

$250,000-500,000 PM, B/U PM, B/U, PHI, APS

PM, B/U, PHI, APS, EKG

PM = Paramedical exam to include height and weight, blood pressure, and pulseB/U = Full blood profile and urinalysisEKG= Resting EKGPHI = Person History Interview typically performed by a paramedical examinerAPS = Attending Physician Statement


How to Build the Policy…

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How Much Coverage do they need?

Questions to think about…

What is their disposable income?

What is their budget?

This product protects against a short term need vs a long term

need

There is normally an expectation of recovery

6-12 months on average

Is the client single?

Is the client a business owner?


eMail: A&[email protected]

Web: www.americangeneral.com/illness

Call: 877-399-7747, prompt 1

To get startedToday, contact:

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These product specifications are not intended to be all inclusive of product information. State variations may apply. Please refer to the policy for complete details.

Policies issued by:

Policies issued by: American General Life Insurance Company (AGL), Policy Form Number 05130, Rider Form Numbers 05137, 05138, 05139. Issuing company AGL is responsible for financial obligations of insurance products and is a member of American International Group, Inc. (AIG). AGL does not solicit business in the state of New York. Policies and riders not available in all states.

Comprehensive medical coverage may be required in order to apply for or maintain this policy.

Guarantees are backed by the claims-paying ability of the issuing insurance company

Important: Prior to soliciting business, be certain that you are appropriately licensed and appointed with the insurer and that the product has been approved for sale by the insurer in that state. If uncertain, contact your American General Life Insurance Company representative for assistance.

AGLC107914

© 2014 American International Group, Inc. All rights reserved.

American International Group, Inc. (AIG) is a leading international insurance organization serving customers in more than 130 countries.. AIG companies serve commercial, institutional, and individual customers through one of the most extensive worldwide property-casualty networks of any insurer. In addition, AIG companies are leading providers of life insurance and retirement services in theUnited States. AIG common stock is listed on the New York Stock Exchange and the Tokyo Stock Exchange.

Additional information about AIG can be found at www.aig.com | YouTube: www.youtube.com/aig | Twitter: @AIG_LatestNews | LinkedIn: http://www.linkedin.com/company/aig

AIG is the marketing name for the worldwide property-casualty, life and retirement, and general insurance operations of American International Group, Inc. For additional information, please visit our website at www.aig.com. All products and services are written or provided by subsidiaries or affiliates of American International Group, Inc. Products or services may not be available in all countries, and coverage is subject to actual policy language. Non-insurance products and services may be provided by independent third parties. Certain property-casualty coverages may be provided by a surplus lines insurer. Surplus lines insurers do not generally participate in state guaranty funds, and insureds are therefore not protected by such funds.

Documents

FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION CriticalCare Plus ® Coverage to help fill a critical gap Presented by… Policies issued