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Daily Coverage

Long-Term Care Insurance policies pay a daily amount towards home care, assisted living, or nursing home. Home care is the most common claim, with 75% of claims starting at home.

Plan Duration

Average claim: 2.9 years. Assuming you don’t have a crystal ball, you don’t know how long you’ll need Long Term Care for. The chance of needing Long Term Care is 1 in 2, but the chance of needing it for over five years is much smaller. Like any insurance, you may buy this and never use it, so finding a balance is key.

Return of Premium

Add this option and you’ll be able to leave your beneficiary the total sum of all of your premiums paid, less any claims you’ve made. If the thought of buying this and never using it bothers you, guarantee a return of funds with Return of Premium.

Home Health Care on Day 1

Coverage for care at home is available with no waiting period. This 10-15% extra option is the most popular add-on rider.

Shared Coverage

Women make longer claims than men, on average. Hedge your risk with your spouse by adding a Shared Care rider to your policy.

Inflation Protection

If you're buying this thinking of using in the future, include inflation protection.

AIG’s Polaris Select Investor

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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.

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AIG Polaris Platinum III Annuity

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