Variable annuities are a type of investment product that can provide you with income in retirement.
They are offered by insurance companies, such as the Variable Annuity Life Insurance Company (VALIC)
In this article, we will explain what variable annuities are, what are the benefits and risks of investing in them.
We will also compare variable annuities with other types of annuities and life insurance products
What is a Variable Annuity Life Insurance Company?
The Variable Annuity Life Insurance Company, or VALIC, is an insurance corporation that specializes in tax-qualified retirement plans
VALIC was founded in 1955 and is based in Texas.
The company is a major provider of group retirement plan services to schools, government agencies, hospitals, and other not-for-profit entities.
It provides annuities and life insurance to more than 25,000 client groups (representing some 2 million individuals) throughout the United States
VALIC is part of Corbridge Financial (formerly AIG Life & Retirement), which is a leading provider of life insurance
What is an Annuity from a Life Insurance Company?
An annuity is a contract between you and an insurance company, in which you pay a lump sum or a series of payments to the insurer, and in return, the insurer agrees to pay you a regular income for a specified period or the rest of your life.
An annuity can help you create a steady stream of income in retirement, protect you from outliving your savings, and provide tax benefits
There are different types of annuities, such as fixed, variable, and indexed.
A fixed annuity pays you a guaranteed amount of income, regardless of market conditions.
A variable annuity allows you to invest your money in subaccounts, such as mutual funds
An indexed annuity pays you a minimum guaranteed income, plus a potential bonus based on the performance of a market index
What is an Annuity from an Insurance Company?
An annuity from an insurance company is the same as an annuity from a life insurance company
An insurance company that offers annuities is regulated by the state insurance department and must meet certain financial and ethical standards.
An insurance company that offers annuities is also required to participate in a state guaranty association
Who are Variable Annuities Registered With?
Variable annuities are registered with the Securities and Exchange Commission (SEC) and are considered securities under federal law.
This means that variable annuities are subject to the same disclosure and regulatory requirements as other securities, such as stocks and bonds.
Variable annuities are also regulated by the state insurance department and the Financial Industry Regulatory Authority (FINRA), which oversee the sales practices and suitability of variable annuities5.
Variable Annuity Life Insurance Company Phone Number
If you want to contact the Variable Annuity Life Insurance Company, you can call their toll-free number at (800) 445-7862.
You can also visit their website at www.corebridgefinancial.com, where you can access your account, view your statements, make changes to your investments, and request a quote or a prospectus
Variable Annuity Life Insurance Company Example
To illustrate how a variable annuity works, let’s look at an example from the Variable Annuity Life Insurance Company.
Suppose you are 55 years old and you want to invest $100,000 in a variable annuity from VALIC.
According to the prospectus, the annual fee for the American Legacy Target Date Annuity is 0.90%
The annual fee does not include the underlying fund expenses, which range from 0.10% to 0.80%, depending on the subaccounts
The minimum premium for this annuity is $10,000, and the surrender charge is 7% in the first year, declining by 1% each year
If your investments perform poorly you can still receive the same amount of income as long as you do not withdraw more than 5% of your account value
However, if you withdraw more than that, your guaranteed income base will be reduced proportionally, and you may receive less income in the future
Variable Annuity Life Insurance Company Class Action Lawsuit
In 2018, a class action lawsuit was filed against the Variable Annuity Life Insurance Company
The lawsuit claimed that VALIC charged participants up to 2.3% in annual fees which reduced their retirement saving
It also alleged that VALIC failed to disclose the fees and commissions to participants
The lawsuit sought to recover the losses suffered by participants, as well as injunctive and declaratory relief
The class action lawsuit was certified by a federal judge in 2019, and it covered more than 24,000 participants
The lawsuit was settled in 2020, with VALIC agreeing to pay $20 million to the plaintiffs, without admitting any wrongdoing.
The settlement also required VALIC to make several changes to its retirement plans
Variable Annuity Life Insurance Company AIG
It was formerly a subsidiary of American International Group (AIG
AIG acquired VALIC in 1997 and integrated it into its life and retirement division.
However, in 2008, AIG faced a severe financial crisis due to its exposure to the subprime mortgage market
As part of its restructuring plan, AIG sold some of its assets and businesses, including VALIC
In 2020, AIG announced that it would spin off its life and retirement division, which included VALIC
The spin-off was completed in 2021, and Corbridge Financial became an independent public company
Corbridge Financial stated that its mission was to help people achieve financial security and well-being
The Variable Annuity Life Insurance Company Amarillo, TX Phone Number
It has a regional office in Amarillo, Texas
The Variable Annuity Life Insurance Company 205 E 10th Ave Amarillo, TX 79101 (806) 373-2731
You can call this number if you have any questions or concerns about your annuity or life insurance policy
You can also visit the office in person, but you may need to make an appointment in advance.
The Variable Annuity Life Insurance Company Amarillo Texas
The Variable Annuity Life Insurance Company Amarillo Texas is the same as that of Amarillo, TX.
It is the regional office of the company that provides customer service and support to its clients.
You can find more information about the office in the previous section.
The Variable Annuity Life Insurance Company Houston
The Variable Insurance Company Houston is the headquarters of the company, where it conducts its main operations
The address and phone number of the headquarters are:
The Variable Life Insurance Company 2929 Allen Pkwy Houston, TX 77019 (713) 831-3600
You can call this number if you want to contact the executive team or the corporate department of the company
You can also visit the headquarters in person, but you may need to make an appointment in advance.
In this article, we covered the main aspects of the Variable Annuity Life Company
We have also explained what variable annuities are, how they work, and what are the benefits and risks of investing in them.
This article has provided you with useful and relevant information about the Variable Annuity Company
If you are interested in purchasing a variable annuity from the Variable Annuity Life Insurance Company visit their website at [www.corebridgefinancial.com
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