Portfolio Director<sup>SM</sup> Fixed and Variable Annuity

Portfolio Director^SM Fixed and Variable Annuity

Product Overview

Considering you might spend as much as one-third of your life in retirement, outliving your income may be a real concern. If that’s a concern, you are right to be thinking about the steps you may need to take now. The Portfolio Director® Fixed and Variable Annuity (Portfolio Director) combines a wide array of competitively priced and professionally managed investment options, convenience and flexibility to help you reach your retirement goals. By offering a wide array of investment options that cover the major asset categories and classes, Portfolio Director provides you with the opportunity to develop a suitably diversified portfolio.

Portfolio Director provides that flexibility through two proven investment approaches: the stability of fixed options and the potential for greater return with variable options. Some options seek growth; some seek to maximize current income; and others seek the preservation of capital. Guarantees are backed by the claims-paying ability of The Variable Annuity Life Insurance Company (VALIC).

Our products like Portfolio Director are built on extensive market knowledge and supported by the financial strength of AIG, a Fortune 10 company and a global industry leader with more than 85 years of experience. With Portfolio Director, financial advisors are equipped with the tools and expertise to craft a financial plan right for you, one that manages assets, has the potential to grow income and helps provide a secure retirement.

Annuities are long-term investments. Income taxes are payable upon withdrawal. Federal withdrawal restrictions and tax penalties may apply to early withdrawals. Investment values will fluctuate so that your investment units when redeemed can be worth more or less than their original cost. Annuity contracts typically include limitations, exclusions and expense charges. Fees may apply, including Separate Account Annual Expenses, which are annualized at 0.35% to 1.25% and Annual Net Fund Expenses, which range from 0.35% to 1.16% based on the investment option selected. The current Annual Net Fund Expense is the Total Annual Fund Expense less any expense waivers or reimbursement. Fees and expense waivers or reimbursements are subject to change.

Features & Benefits

Savings compound at a faster rate. With a Portfolio Director annuity, unlike investments in a taxable account, you won’t pay current taxes on any interest or investment gains until money is withdrawn. Money that otherwise would have gone toward federal income taxes stays in your account, earning interest.

Investment options offer flexibility. As a Portfolio Director investor, you have access to well known institutional fund managers and to funds that are only available through Portfolio Director. Many of the 60 variable annuity investment options available within Portfolio Director are VALIC subadvised funds. For other funds, VALIC is the adviser for the funds, and we hire subadvisers to manage the portfolios. We select subadvisers on the basis of their investment style and expertise with specific asset classes. In addition, Portfolio Director also offers a selection of well-known publicly traded funds.

A guaranteed death benefit is standard. Some annuity contracts offer an optional death benefit. But a guaranteed death benefit comes standard with Portfolio Director.

Multiple retirement income options. Portfolio Director offers annuity payout options that can transform your account balance into regularly distributed income for as long as you live — guaranteed.

Optional benefits. You can add on a living benefit option that will allow you to step up and lock in market gains, which provides the potential for higher retirement payments. And another optional benefit allows you to receive asset management provided by the independent financial expertise of Ibbotson Associates, Inc.

All guarantees are backed by the claims-paying ability of The Variable Annuity Life Insurance Company.

To obtain a contract and underlying fund prospectuses, click here or call 1-800-448-2542. The prospectuses contain the investment objects, risks, charges, expenses and other information about the respective investment company that you should consider carefully before investing. Please read the prospectuses carefully before investing or sending money.

Policy Form series UIT-194, UITG-194 and UITG-194P, a group fixed and variable annuity issued and guaranteed by The Variable Annuity Life Insurance Company (VALIC), Houston, Texas.

Important Notice about Purchasing a VALIC 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.

Annuities and insurance products are offered by The Variable Annuity Life Insurance Company (VALIC), AIG Annuity Insurance Company, AIG-affiliated insurance companies or other approved companies. Each underwriting company is financially responsible for its own insurance products.

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

AIG Retirement is the marketing name for the group of companies comprising AIG Retirement Advisors, Inc.; AIG Retirement Services Company; and The Variable Annuity Life Insurance Company (VALIC); each of which is a subsidiary of American International Group, Inc.

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. For legal or tax advice concerning your situation, consult your attorney or professional tax advisor.