AIG’s Polaris Select Investor is a variable annuity that brings together tax-deferral, diverse investment choices, and top money managers, among other benefits. Contract buyers can select from 90 investment options, and their money is managed by over 30 reputable money managers. This product is issued by the American General Life Insurance Company. However, in the state of New York, it’s issued by the United States Life Insurance Company.
Polaris Select Investor Annuity Facts
Costs and Fees
- 1.10% annual fee is deducted from your net asset value. There’s also an annual contract maintenance fee of $50, which is waived if the contract value exceeds $75,000 at contract anniversary.
- The minimum allowed investment is $25,000. Investors are allowed 15 free transfer between variable portfolios each year. Any other transfer above that is charged $25.
- Since your funds are professionally managed, an annual operating expense ranging between 0.34% and 7.24% is applicable.
Maximum Issue Ages
The Maximum Issue Age for the Polaris Select Investor is 85 years with the Account Value Death Benefit (automatically-included), or 75 years with the optional Return of Purchase Payment Death Benefit.
Withdrawal Charges
If you’re taking your contract’s RDP (Required Minimum Distribution), any withdrawal charges are currently waived.
The minimum withdrawal amount is $100, available monthly, quarterly, semi-yearly, or yearly. There’s a 5-year declining withdrawal charge schedule that’s as follows.
| Contract Year | 1 | 2 | 3 | 4 | 5 | 6+ |
| Withdrawal Charge (in percentage) | 7 | 7 | 6 | 6 | 5 | 0 |
Nursing Home Waiver
Withdrawal charges are waived for certain withdrawals. However, note that this waiver is not available in CT, CA, PA, and PA.
Latest Annuity Date
The latest annuity date is the 95th birthday. Keep in mind that upon annuitization, the death benefit no longer applies. It’s important to contact your annuity product specialist to discuss options if you’re nearing the age of 95 years.
Tax Deferral
Obviously, taxes can have a significant impact on long-term investment returns. Polaris Select Investor variable annuity from AIG makes it possible for you to reallocate between various investment options without attracting tax consequences. Your investment in this variable annuity will not be taxed until you start taking withdrawals.
Build your own allocation
Polaris Select Investor annuity product allows investors to build their own allocations with available portfolios such as American Funds growth, Blue Chip Growth, Invesco V.I. American Franchise Fund, and others. Investors can also design their investments by choosing an asset class across diverse industries.
Family Protection
The Standard Death Benefit is automatically included with the contract cost-free. It provides appointed beneficiaries with the Contract Value in the event of your demise. There’s also an optional Return of Purchase Payment Death Benefit that comes at a small annual fee (0.30%). This feature provides your named beneficiaries with the greater contract value upon your death.
Potential Benefits
- Enhanced flexibility – this contract offers enhanced investment flexibility. Investors have got various ways to invest, and can build customized asset allocation models.
- Family protection – there’s an optional Return of Purchase Payment Death Benefit (available at an additional annual fee) makes it possible for the investor to make his investment to family members (appointed beneficiaries) upon his or her demise.
- More control – investors can benefit from tax-free transfers between various portfolios, tax-deferred growth, and tax-free rebalancing of investment earnings over the long term.
Important
Variable annuities are only sold by prospectus, which contains lots of information including investment objectives, fees, risks, charges, expenses, etc. All this information should be carefully considered. If you’re not well versed in all the nooks and crannies of purchasing a variable annuity, contact one of our financial advisers here. You will also obtain the prospectus from your financial adviser.
