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bpaselectannuity™

fixed indexed deferred annuity12

G u a r a n t e e s G r o w t h F l e x i b i l i t y W e a l t h Tr a n s f e r

There was a time when planning forretirement was a fairly straightforwardprocess. A generation ago, thoseAmericans that were able to retiregenerally relied upon a pension, socialsecurity, and some personal savings tomake it through a retirement that mayhave lasted only about 10 years.

Since then, planning for retirement hasbecome substantially more complicated.Out of necessity, Americans have beenforced to become increasingly responsiblefor their own retirement income aspensions and lifetime healthcare coveragehave, in many instances, become thingsof the past. Further, longevity has becomea significant issue. Medical advances andhealthier lifestyles mean that Americansare living longer than ever before. In fact,according to the U.S. Census Bureau,people age 85 and older are the fastestgrowing segment of the population.1 Notsurprisingly, for a couple who are bothage 65 today, there is a more than 60

percent chance that one of them will liveto age 90.2 As a result, many Americanswill spend as much as a third of their livesin retirement.

To compound matters, rising costs ofliving, healthcare costs, taxes, inflation,and market volatility all work to reducethe amount of income available to live onduring retirement. Time and experiencehave shown us the best way to overcomethese challenges is to strike a balancebetween keeping retirement savingssecure and, at the same time, maximizingthe amount of income generated fromthem.

Traditional solutions to achieving abalance between these conflicting goalshave produced mixed results. Fortunately,there are choices available today that canreduce the guess work and address theseretirement issues more effectively thanever before.

Finding a balance+

If a couple is 65 today, there is amore than 60 percent chance thatone of them will live to age 902

1 U.S. Census Bureau. Internet release on population projections, January 2000.2 Society of Actuaries RP-2000 table.

The BPASelect Annuity™ 12The BPASelect Annuity™ 12, is a fixed annuity that has been developed specifically to bean integral part of a sound, long-term retirement plan and to help turn your vision ofretirement into a reality by offering:

• The guarantees and security you need for your retirement savings;

• The opportunity for long-term accumulation of your principal;

• Flexibility to access your retirement savings, and;

• The opportunity to create a guaranteed lifetime of income.


1A crucial aspect of any sound long-termfinancial plan is to make sure your retirementsavings are available when you need them.Fixed annuity products—like the BPASelectAnnuity 12—can be an excellent choice tomeet this goal because they—by design—offer a level of safety, security and guaranteeswhich can make them a cornerstone of acomprehensive financial plan. To that end, theBPASelect Annuity 12 offers you a series ofguarantees to help you meet your long-termretirement goals and objectives. Guaranteesare based on the stability and claims payingability of American Investors Life InsuranceCompany, Inc.

Principal GuaranteeWith the BPASelect Annuity 12, yourannuity is guaranteed to never loseprincipal, provided the contract is notsurrendered and no early withdrawals aretaken in excess of your contract’s freewithdrawal amount. Withdrawals in excessof the free withdrawal amount may incur aWithdrawal Charge which could cause youto receive less than your original principal.

Minimum Guaranteed Contract ValueThe BPASelect Annuity 12 offers you thesecurity of a Minimum Guaranteed ContractValue that ensures—regardless of marketconditions—that you will receive a minimuminterest crediting rate on a percentage ofyour premium while the contract is in force.This important guarantee offers you thepeace of mind of knowing that you canreceive no less than 114 percent of yourpremium by the end of your contract’s Withdrawal Charge period.

Excess Interest Guarantee Your Minimum Guaranteed Contract Valueis bolstered by an Excess Interest guarantee.This guarantee ensures that at the end ofyour contract’s Withdrawal Charge period,the interest credited to your Minimum

Guaranteed Contract Value will be at leastequal to the interest credited to yourAccumulation Value. Simply put, theAccumulation Value of your contract isequal to your premium plus interest, lessany withdrawals.

Here’s how the Excess Interest guaranteeworks: If, at the end of your contract’s 12-year Withdrawal Charge period, theinterest credited to your AccumulationValue is greater than the interest credited tothe Minimum Guaranteed Contract Value,the Excess Interest guarantee willautomatically increase the amount ofinterest credited to the MinimumGuaranteed Contract Value to an amountequal to the interest credited to theAccumulation Value.

From that point forward, this new MinimumGuaranteed Contract Value will earninterest at the minimum interest creditingrate. Again, this provides you with an addedlevel of security against market volatilitybecause—regardless of market conditions—the value of your contract can never fallbelow this new Minimum GuaranteedContract Value. Excess Interest, if any, willbe credited at the end of the WithdrawalCharge period and at the end of every four-year Term thereafter.

Lifetime Income The BPASelect Annuity 12 containsannuitization options that offer you theability to create a guaranteed lifetime ofincome, ensuring that your retirementsavings will last as long as your retirement.The amount of the payments will be basedon the annuitization option you choose andthe current annuitization interest rates atthe time of your selection. In no case willthe interest rate used to calculate thepayments be less than an effective annualinterest rate of 2.00 percent.

You can have the peace of mind of knowing the retirementsavings allocated to the BPASelect Annuity are safe and secure

Strong Guarantees

$100k

$200k

$300k

$400k

$500k

$600k

This chart assumes a 33 percent ordinary income tax assessed yearly on taxable savings and at period end on tax-deferred savings. A $100,000 initial premium compounded at 6 percent annually over 30 years grows to $574,349with taxes deferred. Once taxes are paid on the lump sum distribution, the amount received is $417,814—still much morethan the $326,216 earned on a taxable product over the same time frame. This illustration is hypothetical and is not anindication of the annuity’s past or future performance. These numbers will vary based on the owner’s tax bracket.

The BPASelect Annuity 12 is a single premium fixed annuity that enables your money togrow on a tax-deferred basis. The interest credited to your contract, if any, will compoundyear-after-year free of current federal income tax. This can be a benefit3 because you donot have to pay taxes on the interest from an annuity until it is actually withdrawn ordistributed to you. That means your money may grow faster in an annuity than it wouldin many other retirement saving products.

$326,216After Tax

$417,814After Tax

$574,349Pre-Tax

Tax-Deferred Financial Vehicle Taxable Financial Vehicle

3 Savings in IRAs and Qualified Retirement Plans already grow on a tax-deferred basis. Thus, if you are considering allocating thesetypes of savings into an annuity, you need to understand there is no additional tax benefit.


The BPASelect Annuity 12 provides thesafety of a traditional fixed annuity, butoffers the potential for better long-termaccumulation. This potential is derivedfrom an innovative Balanced AllocationStrategy™. The Balanced AllocationStrategy determines your interest earningsusing a predetermined blend of twoelements—an index allocation and adeclared rate allocation. The indexallocation is linked to the performance ofthe S&P 500® (excluding dividends) andthe declared rate allocation is linked to arate declared by American Investors Life

Insurance Company, Inc. These twoelements are added together less anyapplicable charges to determine 100percent of the appreciation of theBalanced Allocation Strategy.

The Balanced Allocation Strategy providesyour retirement savings the opportunityfor long-term accumulation without all ofthe downside risks associated withinvesting directly in the stock market. Seethe BPASelect Annuity 12 product insertfor information regarding the minimumallocations and rates.

2A Balanced Approach

Balanced Allocation Strategy™

4 This product has a patent pending.5 Standard & Poor’s®, S&P®, S&P 500®, Standard & Poor’s 500, and 500 are trademarks of The McGraw-Hill Companies, Inc. and have

been licensed for use by American Investors Life Insurance Company. The BPASelect Annuity 12 is not sponsored, endorsed, sold, orpromoted by Standard & Poor’s and Standard & Poor’s makes no representation regarding the advisability of purchasing this product.

The S&P 500 Index does not include dividends paid on the underlying stocks, and therefore does not reflect the total return of theunderlying stocks. Past performance is no guarantee of future performance or values of the BPASelect Annuity 12.

Ensuring that your savings are safe at all times whileplacing no caps on your upside interest earnings potential

A predetermined blend of two elements

The “S&P 500®” Index Allocation+ The Declared Rate Allocation

– Applicable Charges

Interest Earnings Under theBalanced Allocation Strategy

Your Premium +

Interest Earned =

AccumulationValue

BalancedAllocationStrategy

••

3

The Balanced Allocation Strategy wasspecifically developed to keep your retirementsavings safe at all times while enhancing theopportunity for long-term accumulation.

The BPASelect Annuity 12 keeps yourretirement savings secure by guaranteeing thatyour premium and the interest that is creditedto your contract—less early WithdrawalCharges and any Market Value Adjustments(MVA)—can never be lost, regardless of marketconditions. (The MVA is not applicable in allstates, including Delaware, Indiana, Minnesota,Missouri, Oregon, Pennsylvania, Utah andWashington.) At the same time, there are nocaps placed on the upside earnings potential ofthe Balanced Allocation Strategy. Ultimately,this provides you with the opportunity torealize above average long-term accumulationcompared to other common financial products(i.e., savings accounts, bank CDs, etc.). All thisplus the peace of mind that comes fromknowing your annuity is fully backed by thefinancial strength of American Investors LifeInsurance Company, Inc.

The chart at right illustrates the best and theworst hypothetical Accumulation Values theBPASelect Annuity 12 would have producedduring its initial 12 contract years had it beenavailable for the 30-year period endingDecember 31, 2006. Assuming an initialpremium of $100,000, the Accumulation Valuewould have grown to $320,410 during its best12-year period and grown to $184,573 duringits worst 12-year period.

Advantages ofa Balanced Approach

BEST12-Year Period

WORST12-Year Period

12-YearGuarantee

$320,410

$184,573

$114,279

$250k

$300k

$200k

$150k

$100k

$50k

$0k

This hypothetical illustration assumes a new contract was issued each business dayover the last 30 years utilizing the closing price of the S&P 500® Index on those days.It also assumes that the contract was then held for 12 years with no withdrawals orsurrenders; a 50 percent Index Allocation; and a 50 percent Declared Rate Allocationthat utilizes a rate of 2.50 percent for all years. These allocation percentages andrates are not guaranteed; the use of alternate rate assumptions would producesignificantly different results. Although this product was not available for the periodof time referenced above, actual historical prices of the S&P 500® Index have beenused in this example. This illustration is intended solely for comparative values and isnot an indication of the annuity’s past or future performance. In no case will yourcontract’s cash surrender value be less than the Minimum Guaranteed Contract Valueaccumulated with interest, which is equal to 2.25 percent in this illustration.


4

One key to making important decisionsabout your long-term retirement plan ishaving access to important informationwhen you need it. To that end, the BPASelect Annuity 12 offers significantadvantages not commonly found in fixedannuity products.

First among these advantages is the factthat the patent-pending BalancedAllocation Strategy allows for the trackingof contract values on a daily basis—a firstfor a fixed indexed annuity product.

Lock-In Your InterestThe ability to track contract values dailyallows the BPASelect Annuity 12 to giveyou the flexibility to calculate and lock-inthe value of the Balanced AllocationStrategy at any time during a Term. Thislock-in of interest can be elected only onceduring a Term. Once earnings arecalculated and locked-in, they can never belost as a result of a change in marketconditions!

You have the flexibility to lock-inthe value on any day you choose

Convenience and flexibility

Should you decide to calculate and lock-inyour interest earnings before the end of aTerm, the total interest for the Term will becalculated and a proportional6 amount willbe credited to your contract at that time.The remaining interest will be credited as aguaranteed interest rate over theremainder of the Term (or to the date youterminate your contract if earlier).

The BPASelect Annuity 12 uses a specificperiod or Term to measure the change invalue of the Balanced Allocation Strategy.This appreciation in value represents theinterest earnings that are credited to yourcontract’s Accumulation Value. TheBPASelect Annuity 12 will automaticallycalculate and lock-in any interest earningsfor you at the end of each Term, which isequal to four years.

6 The proportional amount of interest will be equal to the total calculated interest for the Term multiplied by the percentage of the Termthat has expired. For example, if a lock-in is elected on the third anniversary of a four-year Term, ¾ or 75 percent of the total interestfor the Term will be credited to the contract at that time.

BPA provides you with the flexibility to track your values daily and the ability to lock-in and protect your interest at any time

Year 1 Year 2 Year 3 Year 4

This hypothetical illustration assumes a new contract was issued each business day over the last 30 years utilizing the closing price of the S&P500® Index on those days. It also assumes that the contract was then held for 4 years with no withdrawals or surrenders; a 50 percent IndexAllocation; and a 50 percent Declared Rate Allocation that utilizes a rate of 2.50 percent for all years. These allocation percentages and ratesare not guaranteed; the use of alternate rate assumptions could produce significantly different results. Although this product was not availablefor the period of time referenced above, actual historical prices of the S&P 500® Index have been used in this example. This illustration isintended solely for comparative values and is not an indication of the annuity’s past or future performance. In this illustration, the contract’sAccumulation Value is guaranteed to never be less than the initial premium of $100,000. Your principal is protected provided that yourcontract stays in force.

* Surrendering your contract prior to the end of the Withdrawal Charge period could cause you to receive less than your original principal.

$188,693

$100,000

$180k

$160k

$140k

$120k

$100k

The chart below illustrates the best and worst hypothetical Accumulation Values theBPASelect Annuity 12 would have produced during its initial four-year Term had it beenavailable during the 30-year period ending December 31, 2006. Assuming an initialpremium of $100,000, the Accumulation Value of the contract would have grown by anannualized rate of more than 17 percent during the best four-year Term. During the worstperforming four-year Term, your annuity would not have received any interest, but yourpremium would have been protected inside of the contract and remained intact.*

•Best 4-Year Production

•Worst Case - BPASelect Protects Your Premium


5

By Checkbook WithdrawalFor your convenience, CheckbookWithdrawals are available. You mayorder a draftbook and write up to twodrafts per contract year without acharge. Each draft must be a minimumof $500 and must be made payable toyou or your financial institution.

Systematic WithdrawalsYou also have the ability to have yourwithdrawal amounts automaticallydeposited into your bank account on amonthly, quarterly, semiannual, orannual basis.

Substantially Equal Periodic PaymentsIf you have a need to access the money inyour annuity prior to reaching age 59½,there is usually a 10 percent tax penaltyimposed by the IRS. However, the InternalRevenue Code may allow you to avoidthis penalty by taking substantially equalperiodic payments. Consult your agent ortax advisor to determine if this optioncould be appropriate for you.

Accessing your money

If your needs should change unexpectedly,it’s reassuring to know that you haveaccess to the money in your annuity. Youmay withdraw the greater of 10 percentof your annuity’s Accumulation Value orthe Required Minimum Distribution7 eachcontract year—including the first year—without incurring an early WithdrawalCharge or Market Value Adjustment(MVA).8 The MVA is not applicable in allstates, including Delaware, Indiana,Minnesota, Missouri, Oregon,Pennsylvania, Utah and Washington.

In the event you need access to more thanthe free withdrawal amount, you are

always entitled to access any amount youdeem necessary up to the full surrendervalue.

Any amount withdrawn in excess of thefree withdrawal amount is subject to aWithdrawal Charge and a Market ValueAdjustment.9 See the BPASelect Annuity12 product insert for the WithdrawalCharges and information relating to theMVA. The MVA may adjust the amountpayable—up or down—depending uponthe interest rate conditions at the time ofdistribution. Specific rules and formulasare used to calculate the MVA. The MVAdoes not apply in all states.

Free WithdrawalsAccess your money in case of life’s emergencies

7 For qualified contracts only—the IRS requires that you annually withdraw at least a minimum amount—known as a RequiredMinimum Distribution—from your qualified retirement accounts beginning in the year you turn age 70½. Determining how much youare required to withdraw is an important issue in retirement planning. Consult with your tax advisor to determine your RequiredMinimum Distributions.

8 Withdrawals and surrenders may be subject to federal and state income tax. Similarly, except under certain circumstances, grosswithdrawals may be subject to an IRS penalty if taken prior to age 59½. If your annuity is a tax-sheltered annuity, the IRS does not,except under certain circumstances, permit withdrawals or surrenders prior to an annuitant’s age 59½.

9 Withdrawals in excess of the free amount prior to a Lock-in Date will not realize any interest for the current Term.

Should the need arise, the BPASelect Annuity 12 provides a number of ways to access your money:

Annuitization FeatureYou have the opportunity on thecontract’s Annuity Date to convert thevalue of your annuity into a guaranteedstream of income that will last as long asyour retirement. There are a variety ofsettlement “payout” options that can betailored to meet your needs. After thefirst contract year, and at the company’sdiscretion, you have the option toexchange your contract for a singlepremium immediate annuity withoutincurring Withdrawal Charges or MarketValue Adjustments. Consult your agentfor complete details and limitations.

Terminal Illness and ConfinementWaivers:10

After your contract has been in force forone year, if you are diagnosed with aTerminal Illness, or in the event that illnessor serious accident necessitates a stay in aqualified care facility for a minimum of 60

consecutive days, you can withdraw up to100 percent of your annuity’s value as aFree Withdrawal. Additional limitationsmay apply.

Access Your Information OnlineFor your added convenience, you have 24-hour online access to valuableinformation about your annuity contract.

By registering at www.avivausa.com,you will be able to log on and gain accessto this information 365 days a year. Inaddition, you will receive annualstatements providing detailed informationthat will include the current value of yourannuity contract.

10 In Massachusetts, the Terminal Illness and Confinement Waivers are not available; in Texas, the Terminal Illness and ConfinementWaivers do not require a one-year exclusion period; and in Pennsylvania, the Terminal Illness Waiver is referred to as the TerminalCondition Waiver.

Should you, as the annuitant, pass awaybefore you begin receiving payouts fromyour annuity, the full value of yourannuity will be payable to yourdesignated beneficiary(ies). The deathbenefit will be equal to the greater ofyour contract’s Cash Surrender Value orthe Accumulation Value, plus interest notyet credited for the Term. The deathbenefit will never be an amount less thanthat required to comply with anyapplicable laws of the state in which your

contract is issued. Neither WithdrawalCharges nor a Market Value Adjustmentwill be applied to the death benefit paid.Furthermore, this direct paymentgenerally avoids the expense, delays, andfrustration of probate. Under certaincircumstances, spousal beneficiaries maybe able to continue the contract as theirown and continue to enjoy tax-deferredaccumulation.

Guarantee and protect the legacy you leave your beneficiaries


6

If one of your goals is to leave a legacyfor your loved ones, you may elect to addthe Family Endowment Rider™11 to yourcontract. The Family Endowment Rider isreferred to in your contract as theEnhanced Death Benefit Rider. The FamilyEndowment Rider can help protect yourinterest against market volatility andpotentially increase the overall value ofthe annuity for your beneficiaries.

The Family Endowment Rider guaranteesa death benefit floor for your contract. Ifyou elect the rider, the death benefit paidto your beneficiary(ies) will be the higherof the contract’s calculated death benefit(including all interest to date) or therider’s floor amount. The rider benefit

Death Benefit Guaranteeamount shall be equal to your premiumaccumulated at an effective annualinterest rate of 5 percent until themaximum age or the date the contract isterminated for any reason, whicheveroccurs first. After the maximum age, therider benefit will not grow any further butwill continue to be in place. Separatecharges apply. The Family EndowmentRider is not available in all states. See theFamily Endowment Rider Insert for details.

11 The Family Endowment Rider is not life insurance and any benefit payable under the rider will be taxable. Once the rider has been issued, the owner may not elect to terminate the rider for any reason. This rider is not available in all states.

Leave a legacy for your loved ones

$0

$100k

$200k

$300k

$400k

30 Years

This example is hypothetical and assumes contract issued prior to age 55 and that nowithdrawals were taken during the time period indicated.

The values illustrated are intended to show how the death benefit operates. Such values are notintended to be a projection or prediction of current or future performance,

$100,000BPA Initial Premium

Family Endowment Rider5% GuaranteedMinimum Interest

$432,194

Customer Service

If you have any questions about your annuity you maycall your agent, or the Customer Service Department atAmerican Investors Life Insurance Company, toll-free at888-ANNUITY (888-266-8489). For your addedconvenience, you can access information about yourannuity on the American Investors secure website atwww.avivausa.com.

American Investors Life Insurance Company,Inc. was founded in 1965 and is a whollyowned subsidiary of Aviva plc. Aviva has astrong tradition and experience that comeswith a corporate lineage that dates backover 300 years. Aviva is the world’s fifth-largest insurance group (based on grossworldwide premiums for the year endedDecember 31, 2006).

Strength, security, long-term commitmentand growth are important financialcharacteristics when planning for yourretirement. We are dedicated to providingthese to you through quality products andsound asset management. Our strength hasbeen recognized by independent insurancerating agencies as shown at right.

Standard & Poor’sA+ (Strong) for financial strength. Thisrepresents the fifth-highest rating ofStandard & Poor’s 24 rating categories.

A.M. BestA+ (Superior) for financial strength and theability to meet obligations to contractholders. This represents the second-highestrating of Best’s 15 rating categories.

Moody’sA1 (Good) for overall financial strength.This represents the fifth-highest rating ofMoody’s 28 rating classes.

This brochure contains highlights only. Please refer to your annuity contract for a full explanation of your annuityand any charges or limitations.

Guarantees provided by annuities are subject to the financial strength of the issuing insurance company.

Neither American Investors Life Insurance Company, Inc. nor its representatives offer legal or tax advice. You should consult your own personal tax advisor on any tax matters.

The BPASelect Annuity™ 12 [form BPASEL12 (10/07) or state variation] is issued and administered by American Investors Life Insurance Company, Inc., 555 South Kansas Avenue, Topeka, Kansas 66603.

^kkburpG R O U P

™

T H E

distributed exclusively by

© 2007 The Annexus GroupBalancePlus Annuity™, BPASelect Annuity™, BPABonus Annuity™, Balanced Allocation Strategy™, andFamily Endowment Rider™ are registered trademarks of The Annexus Group. All rights reserved.

bpaselect annuity™ 12

BPASEL12 (11/07) • 57124

In addition to the ten percent up-front bonus, by electing this Rider you will also receive aGuaranteed Minimum Death Benefit. This combination offers you the ability to enhance your annuity’s growth potential and protect the minimum value that can be passed on to your beneficiary.

The Guaranteed Minimum Death Benefit, also known as the Family Endowment Rider, creates aguaranteed death benefit floor that—at a minimum—guarantees the amount paid to the beneficiary upon the death of the annuitant will be at least equal to the premium accumulated atan effective annual interest rate of five percent. Interest will be credited until the earlier of the RiderPremium Completion Date or the date the contract is terminated. See Rider for complete details.

The BPASelect Bonus Annuity™ 12 enhances your premium with a ten percent extra credit, givingyour contract value an instant boost. You receive the credit when you need it most—at the beginning of your contract.

P R E M I U M B O N U S R I D E R W I T H E N H A N C E D D E AT H B E N E F I T

BPASelect Bonus Annuity™ 12Extra Credit 10%Premium Bonus

Recapture Charge

GuaranteedMinimum

Death Benefit

Leave a legacyfor your loved ones

If one of your goals is toleave a legacy for your lovedones, the Family Endowment

Rider can help protect yourinterest against market

volatility and potentiallyincrease the overall value of

the annuity for your beneficiary.

$100,000 Initial Premium+ 10,000 10% Premium Bonus

$110,000 Working for you on day one!

BPASelect AnnuityInitial Premium$100,000

$0

$100k

30 Years

$200k

$300k

$400k$432,194

$100,000

Family Endowment Rider5% Guaranteed Minimum Interest$432,194

PLUS 10

This example is hypothetical andassumes contract issued prior to age 60, an initial premium

amount of $100,000, and that nowithdrawals were taken during the

time period indicated.

The BPASelect Bonus Annuity 12 includes a ten percent premium bonus which is credited immediately and will vest throughout the Withdrawal Charge period on the following schedule:

Withdrawals in excess of the contract’s Free Withdrawal amount will incur a Recapture Chargeequal to 10 percent of the Accumulation Value, less the vested portion of the bonus.

Contract Years Years 1-4 Years 5-8 Years 9-12 12+

Bonus Amount Vested* 0% +4% +7% +10%

555 South Kansas AvenueP.O. Box 2039

Topeka, Kansas 66601-2039

BPASEL12 B10 Insert (11/07)57126

*As a percentage of the Accumulation Value.

The Family Endowment Rider can help you generate retirement income and, at the same time, preserve an amount equal to your entire initial premium for your beneficiaries. The chart below is astraightforward hypothetical illustration of how much money can be withdrawn over time while preserving the initial premium as a death benefit. Take note that only a percentage of theAccumulation Value (AV) can be withdrawn each year. The following values below are before theeffects of income taxes.

Client Data

Annual BPANet Appreciation of

0 Percent


6 Percent

Any withdrawals made will reduce the death benefit floor. The amount of the reduction will bebased on the withdrawal amount. The first five percent of the Accumulation Value withdrawn inany contract year will reduce the death benefit floor on a dollar-for-dollar basis. Withdrawals inexcess of five percent will reduce the death benefit floor by the same percentage that such excesswithdrawal reduces the contract’s Accumulation Value.

Withdrawals

This illustration is a hypothetical example of how the five percent Family Endowment Rider™ can protect the death benefit when values arewithdrawn from the contract. The appreciation is based on net interest earnings assumed to be equal to the percentage specified. Actualinterest credited will vary. The Family Endowment Rider will only guarantee the death benefit is equal to the initial premium provided nomore than the lesser of five percent of the initial premium or Accumulation Value is withdrawn at the end of any given contract year. TheAccumulation Value does not reflect the benefit of the Minimum Guaranteed Contract Value.

Withdrawals and surrenders may be subject to federal and state income tax. Similarly, except under certain circumstances, gross withdrawals may be subject to an IRS penalty if taken prior to age 59½. If your annuity is a tax-sheltered annuity, the IRS does not, exceptunder certain circumstances, permit withdrawals or surrenders prior to an annuitant’s age 59½.

The Family Endowment Rider is not life insurance and any benefit payable under the rider will be taxable. There is a charge for the rider thatis guaranteed to never exceed 1.05 percent of the contract’s Accumulation Value per year. The charge is reflected in the Net Appreciationshown above. Once issued, the owner may not elect to terminate the rider for any reason.

The Family Endowment Rider [PBDBR12HB (10/07) or state variation] and the BPASelect Annuity™ 12 [BPASEL12 (10/07) or state variation]are issued by American Investors Life Insurance Company, Inc., Topeka, KS. The Family Endowment Rider is not available in all states.

The cost for this rider is guaranteed to never exceed 1.05 percent of the contract’s AccumulationValue per year. The cost is automatically deducted from the interest in your contract. Additional limitations may apply.

Rider Cost

Premium • $100,000 Client age at issue • 60 years

Income through age • 85 years Death Benefit interest rate • 5%

Contract AV After Withdrawal Total DeathYear Age Withdrawal Paid to Client Income Benefit

1 61 $105,283 $5,000 $5,000 $111,600

25 85 $186,588 $5,000 $125,000 $197,783

12 72 $136,992 $5,000 $60,000 $136,992

8 68 $125,836 $5,000 $40,000 $125,836

4 64 $116,999 $5,000 $20,000 $116,999


1 61 $105,000 $5,000 $5,000 $105,000

25 85 $30,736 $1,618 $79,264 $168,944

12 72 $59,874 $3,151 $50,126 $111,382

8 68 $73,509 $3,869 $36,491 $103,759

4 64 $90,250 $4,750 $19,750 $100,250

PLUS 10

0-75 Owner and Annuitant on tax-qualified and non tax-qualified funds.Issue Ages


BPASelect Bonus Annuity™ 12


This illustration assumes $5,000 is withdrawn at the end of each contract year.

In addition to the six percent up-front bonus, by electing this Rider you will also receive aGuaranteed Minimum Death Benefit. This combination offers you the ability to enhance your annuity’s growth potential and protect the minimum value that can be passed on to your beneficiary.

The Guaranteed Minimum Death Benefit, also known as the Family Endowment Rider, creates aguaranteed death benefit floor that—at a minimum—guarantees the amount paid to the beneficiary upon the death of the annuitant will be at least equal to the premium accumulated atan effective annual interest rate of five percent. Interest will be credited until the earlier of the RiderPremium Completion Date or the date the contract is terminated. See Rider for complete details.

The BPASelect Bonus Annuity™ 12 enhances your premium with a six percent extra credit,giving your contract value an instant boost. You receive the credit when you need itmost—at the beginning of your contract.

The BPASelect Bonus Annuity 12 includes a six percent premium bonus which is credited immediately and will vest throughout the Withdrawal Charge period on the following schedule:

Withdrawals in excess of the contract’s Free Withdrawal amount will incur a Recapture Chargeequal to 6 percent of the Accumulation Value, less the vested portion of the bonus.

Contract Years Years 1-4 Years 5-8 Years 9-12 12+

Bonus Amount Vested* 0% +2% +4% +6%


BPASelect Bonus Annuity™ 12Extra Credit 6%Premium Bonus

Recapture Charge

GuaranteedMinimum

Death Benefit


If one of your goals is toleave a legacy for yourloved ones, the FamilyEndowment Rider can

help protect your interestagainst market volatilityand potentially increasethe overall value of the

annuity for yourbeneficiary.

This example is hypothetical andassumes contract issued prior to age 60, an initial premium

amount of $100,000, and that nowithdrawals were taken during the

time period indicated.BPASelect AnnuityInitial Premium$100,000

0

100k

30 Years

200k

300k

400k$432,194

$100,000


$100,000 Initial Premium+ 6,000 6% Premium Bonus

$106,000 Working for you on day one!

PLUS 6




*As a percentage of the Accumulation Value.


Client Data


0 Percent


6 Percent


Withdrawals



The Family Endowment Rider is not life insurance and any benefit payable under the rider will be taxable. There is a charge for the rider thatis guaranteed to never exceed 0.65 percent of the contract’s Accumulation Value per year. The charge is reflected in the Net Appreciationshown above. Once issued, the owner may not elect to terminate the rider for any reason.

The Family Endowment Rider [PBDBR12LB (10/07) or state variation) and the BPASelect Annuity™ 12 [BPASEL12 (10/07) or state variation]are issued by American Investors Life Insurance Company, Inc., Topeka, KS. The Family Endowment Rider is not available in all states.

The cost for this rider is guaranteed to never exceed 0.65 percent of the contract’s AccumulationValue per year. The cost is automatically deducted from the interest in your contract. Additional limitations may apply.

Rider Cost




1 61 $101,283 $5,000 $5,000 $107,360

25 85 $170,931 $5,000 $124,842 $181,186

12 72 $129,211 $5,000 $59,842 $129,211

8 68 $119,672 $5,000 $39,842 $119,672

4 64 $112,117 $5,000 $19,842 $112,117


1 61 $101,000 $5,000 $5,000 $101,000

25 85 $29,506 $1,553 $76,494 $174,472

12 72 $57,479 $3,025 $48,521 $113,442

8 68 $70,569 $3,714 $35,431 $104,969

4 64 $86,640 $4,560 $19,360 $100,650

0-80 Owner and Annuitant on tax-qualified and non tax-qualified funds.Issue Ages


BPASelect Bonus Annuity™ 12PLUS 6



You may access up to 10 percent of your Accumulation Value (or 100 percent of aRequired Minimum Distribution amount) free of a withdrawal charge and Market ValueAdjustment each year, including the first year of the contract. In the event you need accessto more than the free withdrawal amount, you are always entitled to access any amountyou deem necessary up to the full surrender amount. Any amount withdrawn in excess ofthe free withdrawal amount will be subject to the following charges:

Contract Year: 1 2 3 4 5 6 7 8 9 10 11 12

% Deduction: 13.5 13 12.5 12 11 10 9 8 7 6 5 3

A D D I T I O N A L I N F O R M A T I O N • B P A S E L 1 2 ( 1 0 / 0 7 )

Annuity Statementsand Online Access

Issue Ages

Minimum Initial Premium

Market ValueAdjustment

Death Benefit

Access to Your Annuity*

BPASelect Annuity™ 12

Statements will be sent to you annually. For your added convenience, you have access tovaluable information about your annuity contract 24-hours a day online at the AmericanInvestors Life Insurance Company website. By simply registering at www.avivausa.comyou will be able to log on and gain access to this information 365 days a year.

0-80 Owner and Annuitant on tax-qualified and non tax-qualified funds.

$5,000 on tax-qualified and non tax-qualified funds.

The Market Value Adjustment (MVA) feature only applies during the withdrawal charge periodto withdrawals in excess of the contract’s free withdrawal amount. The adjustment can increaseor decrease the amount deducted from the annuity. Therefore, it is important for you to knowthat an MVA feature exists and how it may affect your annuity values.

This adjustment measures the impact a change in interest rates has on the value of the company’s assets. This change is based on a comparison of the interest rate conditions at thetime of the withdrawal to the interest rate conditions at the time the premium was originallycredited to the annuity. An increase in interest rates generally results in a negative MVA, whilea decrease in interest rates generally results in a positive MVA.

A death benefit will be paid to the beneficiary upon the death of the annuitant. The benefit paid will be equal to the greater of the Balanced Allocation Value (AccumulationValue plus any interest earnings for the current Term) or the Cash Surrender Value. Neithera withdrawal charge nor a Market Value Adjustment will be applied to the amount paid.

See back for more information on MVA formula.

* Withdrawals and surrender may be subject to federal and state income tax and, except under certain circumstances, will be subject to an IRS penalty if taken prior to age 59½. If your annuity is a tax-sheltered annuity, the IRS does not, except under certain circumstances, permit withdrawals or surrenders prior to anannuitant reaching the age of 59½.

The BPASelect Annuity™ 12 [BPASEL12 (10/07) or state variation] is issued by American Investors Life InsuranceCompany, Inc., Topeka, KS.

If the MVA is negative, it will decrease your surrender value, but it can never decrease thesurrender value of the annuity to an amount less than the premium paid, plus 25 percentof the interest credited, less gross withdrawals of any type. If the MVA is positive, it willincrease your surrender value, but it can never increase the surrender value to an amountgreater than the Accumulation Value of the surrender or withdrawal amount.

The MVA is based on changes in the 10-Year Constant Maturity Treasury Series rate published by the Federal Reserve.

How does theMVA work?

Balanced AllocationStrategy Options

The BPASelect Annuity 12 offers three different Balanced Allocation Strategy Options foryou to choose from. There is a fee associated with some of the available Options. This fee is automatically deducted from the appreciation in the Balanced Allocation Strategy in determining the amount of interest to credit to your contract. Please refer to the currentBPASelect Allocation Option inserts for more information regarding these options.



BPASEL12 SFER Insert (11/07)57125

Note: An MVA may increase or decrease your annuity’s values and it is in addition to the withdrawal charge. In noevent will the MVA exceed the Maximum MVA as defined in your contract. These sample calculations and allassumptions are purely hypothetical and are not an indication of the annuity’s past or future activity.

What is the MVAformula?

MVA Examples

What do youneed to know

about the MVA?

In calculating the MVA applicable to any withdrawal in excess of the free withdrawal amount, AmericanInvestors Life Insurance Company will multiply the withdrawal amount that is subject to the MVA by theapplicable Market Value Adjustment Factor.

The Market Value Adjustment Factor shall be equal to 0.50 x (A - B) x N/12, where:

A = The beginning 10-Year Constant Maturity Treasury Series rate assigned to the premium and/orinterest that is withdrawn from the contact.

B = The closing 10-Year Constant Maturity Treasury Series rate two (2) days before the surrender orwithdrawal is processed by American Investors Life Insurance Company, plus 0.25 percent.

N = The number of complete contract months remaining before the withdrawal charge periodexpires, calculated from the date the surrender or withdrawal is processed by AmericanInvestors Life Insurance Company.

The hypothetical examples below illustrate how an MVA would impact your annuity's values based on thefollowing assumptions:

Initial Premium $37,500

Accumulation Value at the time of surrender $50,000

Free Withdrawal Amount $5,000

Amount subject to an MVA $45,000

Withdrawal Charge Period 12 Years

Time of Surrender Beginning of 8thContract Year

Complete number ofmonths left until withdrawal

charge expires 60

Constant Maturity Treasury Rate For the Contract Date 6.5%

ASSUMPTIONS EXAMPLE 1

EXAMPLE 2

MVA is Negative. Interest rates have increased.Constant Maturity Treasury Rate Increased to 7.50%

MVA Factor: .50 x [6.5% - (7.5% + .25%)] x 60/12 = -.03125

Actual MVA: $45,000 x -.03125 = -$1,406.25

MVA is Positive. Interest Rates have decreased.Constant Maturity Treasury Rate Decreased to 5.00%

MVA Factor: .50 x [6.5% - (5.0% + .25%)] x 60/12 = .03125

Actual MVA: $45,000 x .03125 = 1,406.25

The BPASelect Annuity can be an integral part of a sound retirement plan and has been designed specifically to assist individuals in their long-term retirement planning.

If you do not access more than the contract’s free withdrawal amount and do not surrender the contract before the withdrawal charge period expires, the MVA will have no effect on your annuity.

If your needs are short-term or if you will need access to more than the contract’s free withdrawalamount, the BPASelect Annuity may not be appropriate for your particular financial situation. Consultwith your financial advisors and carefully consider your financial situation prior to purchasing.

BPASEL12 SFER Insert (11/07)57125

BPASelect Annuity™ 12 (10/07)



BPASEL12FER Insert (11/07)57128

Family Endowment Rider™

The BalancePlus Annuity™ is the FIRST fixed annuity on the market to offer a Guaranteed

Minimum Death Benefit (GMDB)—called the Family Endowment Rider™.

The Family Endowment Rider creates a guaranteed death benefit floor that—at a minimum—

guarantees the amount paid to the beneficiary upon the death of the annuitant will be at least

equal to the premium accumulated at an effective annual interest rate of five percent. Interest will

be credited until the earlier of the Rider Premium Completion Date or the date the contract is

terminated. See Rider for complete details.

This example is hypothetical andassumes contract issued prior to

age 60, an initial premiumamount of $100,000, and that no

withdrawals were taken duringthe time period indicated.

BPASelect AnnuityInitial Premium$100,000

$0

$100k

30 Years

$200k

$300k

$400k$432,194

$100,000



If one of your goals is to leavea legacy for your loved ones,the Family Endowment Rider

can help protect your interestagainst market volatility and

potentially increase the overall value of the annuity

for your beneficiary.

The cost for this rider is automatically deducted from the interest in your contract and is

guaranteed to never exceed .60 percent of the contract’s Accumulation Value per year. Additional

limitations may apply. The Family Endowment Rider is not available in all states.

Rider Cost



Client Data


0 Percent


6 Percent

Withdrawals



The Family Endowment Rider is not life insurance and any benefit payable under the rider will be taxable. There is a charge for the rider thatis guaranteed to never exceed one-half of one percent of the contract’s Accumulation Value per year. The charge is reflected in the NetAppreciation shown above. Once issued, the owner may not elect to terminate the rider for any reason.

The Family Endowment Rider [DBR-BPA (Rev. 10/07) or state variation] and the BPASelect Annuity™ 12 [BPASEL12 (10/07) or state variation]are issued by American Investors Life Insurance Company, Inc., Topeka, KS. The Family Endowment Rider is not available in all states.

BPASelect Annuity™ 12 (10/07)

Family Endowment Rider™

BPASEL12FER Insert (11/07)57128





1 61 $95,283 $5,000 $5,000 $101,000

30 90 $149,017 $5,000 $124,114 $157,958

12 72 $118,320 $5,000 $59,114 $118,320

8 68 $111,046 $5,000 $39,114 $111,046

4 64 $105,114 $5,000 $19,316 $105,114


1 61 $95,240 $4,760 $4,760 $100,002

30 90 $23,152 $1,157 $76,848 $100,060

12 72 $55,697 $2,784 $44,303 $100,024

8 68 $67,695 $3,383 $32,305 $100,016

4 64 $82,277 $4,112 $17,723 $100,008

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