Life Insurance

What is life insurance?

Life insurance is a contract that provides payment of a death benefit to a designated beneficiary upon the death of the insured. This death benefit provides family members or businesses with the funds needed to help secure their futures in the absence of that income earner or key employee.

Asset accumulation

Cash value life insurance policies offer the ability to accumulate cash values on a tax-deferred basis. Depending on the type of policy, the funds can grow at guaranteed fixed interest rates or at variable rates tied to the performance of selected investments. Assets that accumulate within a life insurance policy may be available to the policyowner during his or her lifetime through policy loans and withdrawals and may also increase the death benefit available to the beneficiary.

Estate planning

The death benefit proceeds of a life insurance policy provide the funds needed to pay estate taxes that may be due upon the death of the insured, thereby preserving the value of the estate that passes to the heirs. Life insurance death benefits may also be received tax free by the beneficiary, if properly structured — further enhancing the value of the estate.

Term life protection

Term life insurance is policy with a set duration limit on the coverage period, with a stated benefit upon the death of the policyowner provided that death occurs within a specific time period. Protection that, upon death, helps:

• Provide funds to pay off a mortgage loan

• Replace lost income

• Provide education funds

• Pay estate obligations

Variable universal life insurance

Variable universal life insurance is a policy which combines some features of universal life insurance, like premium and death benefit flexibility, with some features of variable life insurance, such as more investment choices. Protection that can help you:

• Protect the financial well-being of loved ones or accumulate wealth to fund retirement

• Preserve your wealth to help protect your family's standard of living against taxes and inflation

• Transfer your wealth, estate or business to the next generation

Your financial advisor can help you decide what is suitable for you.

Important Notice about Purchasing a VALIC Annuity From Us

To help the government fight the funding of terrorism and money-laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies each person who purchases certain annuity products. What this means for you: When you purchase certain annuity products from us, we will ask for your name, address, date of birth and other information that will allow us to identify you. We may ask to see your driver's license or other identifying documents.

Annuities and insurance products are offered by The Variable Annuity Life Insurance Company (VALIC), AIG Annuity Insurance Company, AIG-affiliated insurance companies or other approved companies. Each underwriting company is financially responsible for its own insurance products.

Securities and investment advisory services are offered by AIG Retirement Advisors, Inc., member FINRA, SIPC and an SEC-registered investment advisor.

AIG Retirement is the marketing name for the group of companies comprising AIG Retirement Advisors, Inc.; AIG Retirement Services Company; and The Variable Annuity Life Insurance Company (VALIC); each of which is a subsidiary of American International Group, Inc.

This information is general in nature and may be subject to change. Neither VALIC nor its financial advisors or other representatives give legal or tax advice. Applicable laws and regulations are complex and subject to change. For legal or tax advice concerning your situation, consult your attorney or professional tax advisor.