AIG American General Announces Next Generation ROP Term Product

Business Wire, May 20, 2008

Industry-First Product Offers Unparalleled Flexibility and the Opportunity to Recoup Premium When Term Expires

HOUSTON -- AIG American General announced today AIG ROP Select-a-Term(SM), a groundbreaking new term life insurance product underwritten by American General Life Insurance Company and The United States Life Insurance Company in the City of New York, subsidiaries of American International Group, Inc. (AIG). AIG ROP Select-a-Term enables policy owners to choose the term duration that best meets their needs -- and, if they live to the end of the level-term period, have their base policy premiums returned.

"AIG ROP Select-a-Term is the first term product of its kind on the market that offers both term duration customization and a guarantee that base policy premiums will be returned if the death benefit isn't used," said Leigh Harrington, vice president and term product manager for AIG American General. "Not only does an AIG ROP Select-a-Term policy allow a consumer to have the security of affordable life insurance, but it can also be a financial tool since the premiums returned at the conclusion of the policy term can be used for a myriad of purposes that are completely at the discretion of the policy owner."

With AIG ROP Select-a-Term, applicants can choose from 17 term durations, which include a 15-year term or any length from 20 through 35 years. This combination of security and flexibility allows consumers to link their term policy to specific life events, while simultaneously saving money on premiums by only buying as much insurance as they need.

In addition to the refund of premium at the end of the term, policy owners can borrow1 from the cash value accrued in their policy and still keep their coverage in force. Policy owners also have the option of converting their term policy to a permanent life insurance policy.2

AIG ROP Select-a-Term also has many additional features and riders that provide consumers extra security in the case of unforeseen circumstances3:

* Accidental Death Benefit - pays in case of death resulting from accidental injuries.

* Child Rider - policy owners can extend the coverage to all of their eligible children.

* Disability Income Rider4- pays a monthly benefit for up to two years if the insured is unable to work because of an illness or injury.

* Terminal Illness Rider4 - if the insured is diagnosed with a terminal illness, he or she will have the option of drawing on part of the policy benefit to help cover expenses.

For more information on AIG ROP Select-a-Term, visit www.aigag.com/ROPselect-a-term.> 1 The loan interest rate is 8.00% per year, payable in arrears.

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AIG American General, www.aigag.com, is the marketing name for the insurance companies and affiliates comprising the domestic life operations of American International Group, Inc., including American General Life Insurance Company and The United States Life Insurance Company in the City of New York. AIG American General-branded companies offer a broad spectrum of fixed and variable life insurance, annuities and accident and health products to serve the financial and estate planning needs of its customers throughout the United States.

American International Group, Inc. (AIG), a world leader in insurance and financial services, is the leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG's common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Ireland and Tokyo.