A variable annuity is a contract between you and an insurance company that can turn your assets into a protected retirement income that lasts your lifetime.
Talk with a financial professional today about the important role that a variable annuity could play to protect your income as part of your retirement strategy.
When selecting long-term investments for variable annuity and variable life insurance products, many investors choose contracts that offer American Funds Insurance Series funds.
American Funds Insurance Series funds are only available in insurance company products. For more information, please see the provider information below or contact your financial professional.
Variable annuities are long-term investment products designed for retirement purposes and are subject to market fluctuation, investment risk, and possible loss of principal. Variable annuities contain both investment and insurance components and have fees and charges, including mortality and expense, administrative, and advisory fees. Optional features are available for an additional charge. The annuity's value fluctuates with the market value of the underlying investment options, and all assets accumulate tax deferred. Withdrawals of earnings are taxable as ordinary income and, if taken prior to age 59½, may be subject to an additional 10% federal tax. Withdrawals will reduce the death benefit and cash surrender value. Guarantees, including optional benefits, are subject to the claims-paying ability of the issuing insurance company.
Allocations may not achieve investment objectives. The portfolios' risks are directly related to the risks of the underlying funds as described below.
Investing outside the United States involves risks such as currency fluctuations, periods of illiquidity and price volatility, as more fully described in the prospectus. These risks may be heightened in connection with investments in developing countries. Small-company stocks entail additional risks, and they can fluctuate in price more than larger company stocks.
The return of principal for bond funds and funds with significant underlying bond holdings is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings. Lower rated bonds are subject to greater fluctuations in value and risk of loss of income and principal than higher rated bonds. Income from municipal bonds may be subject to state or local income taxes and/or the federal alternative minimum tax. Certain other income, as well as capital gain distributions, may be taxable.
1 Simfund VA, Capital Group. As of 12/31/22.