AIG American General Announces Next Generation ROP Term Product

Industry-First Product Offers Unparalleled Flexibility and the
Opportunity to Recoup Premium When Term Expires
HOUSTON--(Business Wire)--
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 borrow(1) 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
circumstances(3):

-- 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 Rider(4 )- pays a monthly benefit for up to
two years if the insured is unable to work because of an
illness or injury.

-- Terminal Illness Rider(4) - 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.

(2) Convertibility feature extends to the earlier of the end of
the level-premium period or the insured's attainment of age 70.

(3) See rider for complete details. There may be a charge for each
rider you select.

(4 )Not available on the United States Life policy (Policy Form
08701N)

-0-
*T
Policies issued by:
American General Life Insurance Company, 2727-A Allen Parkway,
Houston, Texas 77019
Policy Form Number 06001; Accidental Death Benefit Rider 79002;
Terminal Illness Endorsement 91401; Child Rider 79410; Waiver of
Premium Rider 79001; and Disability Income Rider 06301

The United States Life Insurance Company in the City of New York
New York, New York
Policy Form Number 08701N; Accidental Death Benefit Rider ADB79-1E;
Child Rider CI79-1E; and Waiver of Premium Rider WP79-1E

Subsidiaries of American International Group, Inc. (AIG)
*T

The underwriting risks, financial and contractual obligations, and
support functions associated with the products issued by American
General Life Insurance Company and The United States Life Insurance
Company in the City of New York are each insurer's responsibility. AIG
does not underwrite any insurance policy referenced herein. Guarantees
are subject to the claims-paying ability of the issuing insurance
company. United States Life Insurance Company is authorized to do an
insurance business in New York. Policies and riders are not available
in all states.

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.

AIG American General
Stasa Cushman, 713-831-6414
Director, Communications
stasa_cushman@aigag.com

Copyright Business Wire 2008