Permanent Insurance Policy

Permanent Life Insurance Policies

There are three variations of permanent life insurance: traditional whole life, interest-sensitive whole life and universal life.

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Traditional Whole Life Back To Top

Level premiums and level death benefit
Cost usually higher than term insurance in early policy years, lower in later years

Portion of premium develops cash value over time that may be used for:
• Emergency funds
• Retirement income
• Purchase of a paid up policy

Interest sensitive Whole Life Back To Top

• Accumulations based on earnings credited to policy's general account

• Credits excess interest rate above guaranteed rate

• Marketed by stock companies

• Cost similar to traditional whole life policies

• Insured retains some portion of investment risk

Universal life Back To Top

• Has features of both term and permanent insurance

• Side investment fund earns at a current interest rate

• Cash values are credited with a higher current interest rate

• Guaranteed minimum rate

• Same loan provisions as other permanent policies. Loan features include:
o Borrowed cash values continue to receive guaranteed interest rate
o Loans generally not taxable

• Partial surrender provision
o Withdraw part of cash value without a repayment provision
o Interest portion of withdrawal is taxable
o Death benefit options
o Pays beneficiary face amount of policy
o Pays beneficiary policy's face amount plus accumulated values

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Important Notice about Purchasing an 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.

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

VALIC represents The Variable Annuity Life Insurance Company and its subsidiaries, VALIC Financial Advisors, Inc. and VALIC Retirement Services Company.

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. Any tax statements in this material are not intended to suggest the avoidance of U.S. federal, state or local tax penalties. For legal or tax advice concerning your situation, consult your attorney or professional tax advisor.