New Term Conversion Product Coming March 2010

American General Life Companies is committed to providing attractive conversion options while offering competitive term pricing. In September 2008 (Bulletin 08-128), we announced a new term conversion strategy and previewed plans to introduce a conversion-only product in 2010 to accept conversions beyond the fifth year of the term policy. This bulletin previews the upcoming introduction of the new conversion-only product and provides an updated summary of our term conversion strategy.

Current Conversion Policy

During the first five years of term coverage, American General Life Companies insurers currently allow conversion to all single-life UL products, including our flagship guaranteed UL product, ContinUL Extend Plus. Conversions beyond policy year five are allowed to any single life UL product except ContinUL Extend Plus.

Conversion Policy Effective March 1, 2010

There will be no change to conversion options during the first five years of term coverage. All single life UL products, including ContinUL Extend Plus, remain available for conversions during that period. Beginning March 1, 2010, conversions beyond the fifth year of the term policy will only be allowed to our new conversion-only product-Elite Transition UL-and in certain situations to the American Elite Whole Life. We will formally introduce Elite Transition UL February 2010, with an effective date of March 1, 2010. It will be available only for term conversions and will not be part of our portfolio for new sales.

Elite Transition UL will offer:

• Strong death benefit protection
• High internal rate of return on the death benefit
• Competitive pricing for minimum-level premium sales
• Ten-year no-lapse guarantee (five-year for issue age above 70)*

Now is the time to meet with your clients to explain the new conversion policy and evaluate whether they wish to take advantage of moving up to a UL plan now, before the new rule takes effect and their conversion options narrow.

Look for more communication on Elite Transition UL in January 2010.

*Varies by state