Premium enhancements are subject to a 10-year recapture schedule. If the contract is annuitized or surrendered, or if withdrawals in excess of the 10% Free Withdrawal Amount are taken prior to the end of the 10-year period, a portion of the premium enhancement will be recaptured on a pro-rata basis. Pro-rata means that the premium enhancement will be reduced by the same percentage that the withdrawal in excess of the Free Withdrawal Amount reduced the contract value.

Additional Information on the ML Strategic Balanced IndexTM

The ML Strategic Balanced Index™ (the “Index”) embeds an annual index cost in the calculations of the change in index value. This “embedded index cost” will reduce any change in index value, and it funds certain operational and licensing costs for the Index. Since it will affect the return of the Index, it may also impact the amount of interest credited to an index annuity or life product; however, it is not a fee paid by clients or received by American General Life Insurance Company (AGL). AGL’s licensing relationship with Merrill Lynch, Pierce, Fenner & Smith Incorporated for use of the ML Strategic Balanced Index™ and for use of certain service marks includes AGL’s purchase of financial instruments for purposes of meeting its interest crediting obligations. Some portion of those instruments will, or may be, purchased from Merrill Lynch, Pierce, Fenner & Smith Incorporated or its affiliates.

Merrill Lynch, Pierce, Fenner & Smith Incorporated and its affiliates (“BofA Merrill Lynch”) indices and related information, the name “BofA Merrill Lynch”, and related trademarks, are intellectual property licensed from BofA Merrill Lynch, and may not be copied, used, or distributed without BofA Merrill Lynch’s prior written approval. The products of licensee American General Life Insurance Company have not been passed on as to their legality or suitability, and are not regulated, issued, endorsed, sold, guaranteed, or promoted by BofA Merrill Lynch. BOFA MERRILL LYNCH MAKES NO WARRANTIES AND BEARS NO LIABILITY WITH RESPECT TO ANY INDEX, ANY RELATED INFORMATION, ITS TRADEMARKS, OR THE PRODUCT(S) (INCLUDING WITHOUT LIMITATION, ITS QUALITY, ACCURACY, SUITABILITY AND/OR COMPLETENESS).

The Index is the property of Merrill Lynch, Pierce, Fenner & Smith Incorporated, which has contracted with S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC) to calculate and maintain the Index. The Index is not sponsored by S&P Dow Jones Indices or its affiliates or its third party licensors (collectively, “S&P Dow Jones Indices”). S&P Dow Jones Indices will not be liable for any errors or omissions in calculating the Index. “Calculated by S&P Dow Jones Indices” and the related stylized mark(s) are service marks of S&P Dow Jones Indices and have been licensed for use by Merrill Lynch, Pierce, Fenner & Smith Incorporated.
Index annuities are long-term products designed for retirement. Early withdrawals may be subject to withdrawal charges. Withdrawals of taxable amounts are subject to ordinary income tax and, if taken prior to age 59½, an additional 10% federal tax may apply. Index annuities are not a direct investment in the stock market. Guarantees are backed by the claims-paying ability of the issuing insurance company. They provide the potential for interest to be credited based on the elected index interest account, which is based in part on the performance of a specified index, and/or a fixed interest account, without the risk of loss of premium due to market downturns or fluctuations. Index Interest accounts are subject to Participation Rates, Index Rate Caps, or Annual Spreads that can decrease or limit the amount of interest credited. Index annuities may not be suitable or appropriate for all individuals.

Index annuities are issued by American General Life Insurance Company (AGL), 2727-A Allen Parkway, Houston, Texas 77019. AGL is a member of American International Group, Inc. (AIG). The underwriting risks, financial and contractual obligations and support functions associated with the annuities and policies issued by AGL are its responsibility. AGL does not solicit business in the state of New York. Contracts and riders may vary by state and are not available in all states. AIG and its member companies are not affiliated with Market Synergy Group.