Variable Annuity Life Insurance Company Review

In this article...
  • Variable Annuity Life Insurance Company now operates as AIG Retirement Services, providing group retirement solutions. Explore what VALIC can offer employers.

Since 1955, Variable Annuity Life Insurance Company has provided financial services and solutions to nonprofits, public sector employers and other tax-exempt organizations. Now, doing business as AIG Retirement Services, VALIC continues to offer flexible investment plans that help workers plan and save for future needs.

About Variable Annuity Life Insurance Company

Under its parent company, AIG, the Variable Annuity Life Insurance Company family of businesses is now operating as AIG Retirement Services, which includes VALIC and its two subsidiaries: VALIC Financial Advisors and VALIC Retirement Services Company. Despite its new name, VALIC continues to sell products and services that help nonprofits, public sector employers and other businesses provide solutions that let employees plan for the future, delivering a combination of innovative technology, knowledgeable financial advisors and thought leadership.

In addition to providing interactive online financial wellness tools for plan participants, AIG Retirement Services also partners with Everfi to offer digital financial literacy education to children in the communities it serves. Through the FutureFIT Academy, kids of all ages can learn how to manage money, and the program covers topics such as budgeting, goal setting and starting a business. 

What Life Insurance Products Does Variable Annuity Life Insurance Company Offer?

Doing business as AIG Retirement Services, VALIC primarily provides portfolio management solutions and variable annuity products to nonprofits, public sector employers and other charitable organizations, including:

  • Health care providers
  • Government entities
  • Religious organizations
  • K-12 and higher education institutions

The company boasts an open-architecture platform, letting plan participants build a portfolio from more than 11,000 in-house and third-party investment funds, including many well-known mutual fund families. Participants can manage their portfolio using one of VALIC's easy-to-use digital tools, or they may seek assistance from the company's knowledgeable financial advisors. 

Fixed-Interest Options

VALIC offers participants a conservative fixed-interest option, which is designed to preserve investors' assets and safeguard against capital loss caused by market volatility. This option, which has competitive interest rates and a guaranteed minimum rate of return, is backed by VALIC.

The GuidedTarget Model

AIG Retirement Services also offers a GuidedTarget model, which provides workers with a managed investment solution based on a target retirement date. GuidedTarget models typically offer:

  • Lower fees
  • Mixed passive and active assets
  • Professional asset allocation
  • Automatic adjustments based on investment performance

GuidedTarget model funds typically shift from an aggressive strategy to a more conservative strategy as the investor’s target retirement date approaches.

Life Insurance

AIG Retirement Services primarily offers group retirement planning services, and its product selection doesn't include life insurance plans. However, individuals may purchase standalone life insurance policies, including term, universal and guaranteed-issue whole life plans, through its parent company, AIG. Through AIG Direct, individuals may also secure final expense insurance and accidental death coverage, and policies may be purchased 24/7 through its online portal.

The Pros and Cons of Variable Annuity Life Insurance Company

Doing business under the name AIG Retirement Services, VALIC offers several benefits to employers and organizations seeking group retirement planning services and products. The company’s flexible investment options let workers customize their annuities, and with the help of VALIC’s financial advisors, participants can create a unique portfolio by choosing among more than 11,000 available investment funds. The company also offers an array of digital tools, which include online financial wellness learning opportunities and a convenient mobile app that lets participants manage their account from their phone. In addition, VALIC has consistently received strong grades from independent ratings agencies such as Fitch and Standard & Poor’s, so participants can feel confident in its financial strength.

Because AIG Retirement Services specializes in group retirement planning solutions, the company’s major disadvantage is its lack of product range. Individuals interested in purchasing life insurance plans may have to seek coverage through its parent organization, AIG.

Variable Annuity Life Insurance Company Reviews: What People Are Saying

Reviewers who’ve done business with the VALIC family of companies have praised its financial advisors for making the investment process easy to understand and note the smooth setup process. However, some reviewers cite difficulties closing out accounts or rolling over funds.

Is a Variable Annuity Life Insurance Company Investment Right for You?

Employers who are looking to build a comprehensive portfolio of workplace benefits as a strategy for attracting top talent may benefit from partnering with the VALIC family of companies via AIG Retirement Services. The company’s flexible options, managed investments and innovative digital tools make it easy for participants to manage their accounts at their convenience, and VALIC’s financial advisors are always available to help investors meet their retirement goals. Employers may also appreciate the firm's comprehensive selection of online learning opportunities, which can help guide workers on the path to financial wellness.

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