Index annuities are not a direct investment in the stock market. They are long-term insurance products with guarantees backed by the claims-paying ability of the issuing insurance company. They provide the potential for interest to be credited based in part on the performance of a specified index, without the risk of loss of premium due to market downturns or fluctuations. Index annuities may not be appropriate for all individuals. There are no guarantees that income will keep up with or outpace inflation. In flat or down markets, you may not earn index interest. Principal can be reduced due to fees and withdrawals. Lifetime income features are generally optional and available at contract issue for an annual fee. To realize the benefits of the optional feature, you must take withdrawals within the parameters of the feature.
Income credits are added to the Income Base, the amount from which lifetime withdrawals are calculated. The Income Base is not the contract value and cannot be taken in part or as a lump sum.
Policy form numbers:
AGL: AG-800 (12/12) and AG-801 (12/12)
VALIC: V-800 (12/14)