Allianz Life Launches New Indexed Variable Annuity Allianz Index Advantage Offers Unique Balance of Growth Potential, Death Benefit, Tax Deferral, and Protection Business Wire MINNEAPOLIS -- September 16, 2013 Allianz Life Insurance Company of North America (Allianz Life) today announced the launch of Allianz Index Advantage^SM, a new Indexed Variable Annuity (IVA) that leverages Allianz Life’s market leadership in fixed index annuities with traditional variable options, resulting in an entirely new breed of variable annuity offering a balance of growth potential and some downside protection. The new product may fit consumers who are willing to trade some potential gains from market growth in exchange for a level of protection from down markets. “Conservative investors focused on accumulating assets for retirement face a dilemma due to current low interest rates on fixed investments. They either keep money on the sidelines, or take on the additional risk needed to achieve higher returns in a continuing volatile market,” said Allianz Life Financial Services, LLC President Robert DeChellis. “Index Advantage offers a way to help manage this dilemma with unique growth opportunities and a level of protection for people willing to accept some downside risk in exchange for additional growth potential.” Unlike today’s variable annuities with Guaranteed Minimum Accumulation Benefits that require waiting periods of up to 10 years, the new Index Advantage product provides opportunity for benefits to be protected every year. Compared to Fixed Index Annuities (FIAs), the IVA increases the amount of return potential by having much higher limits (or caps) on the interest credit coming from the growth of an equity index in exchange for less protection. IVAs offer protection from the first 10% of losses per year versus guarantees of no losses from a traditional FIA, although some IVAs will offer that option in exchange for less upside potential. This is a fundamental shift for accumulation choices among variable annuities. Index Advantage, currently approved in 43 states, provides flexibility through two unique strategies – the Index Performance Strategy and the Index Protection Strategy – and unlike existing products within the IVA category, in addition to tax deferral^i, Index Advantage also includes built-in death benefit protection. Available indexes for Index Advantage include the S&P 500^® Index, Nasdaq-100^® Index and Russell 2000^® Index. Consumers may allocate funds to either or both index strategies based on their specific goals. Transfers to/between index options can occur on every Index Anniversary. Variable options include the AZL^® Money Market Fund, AZL^® MVP Balanced Index Strategy Fund and AZL^® MVP Growth Strategy Fund. Transfers to the variable options are allowed every sixth Index Anniversary. This sophisticated IVA offers these features without the use of additional cost riders. Index Performance Strategy The Index Performance Strategy offers a level of protection for the principal investment while maintaining the potential for higher performance. The index options available through this strategy give consumers the flexibility to pursue the accumulation strategy that best suits them each year. This strategy was designed to appeal to investors seeking higher upside potential than is typically available in these types of products due to the presence of a buffer that absorbs the first 10% of a negative index return in any given year. Losses in excess of 10% will reduce the contract value. The cap for in-force contracts is subject to change annually on the Index Anniversary, and may fluctuate significantly. The cap will never be less than 1.50%. The buffer will never change after the contract is issued. Caps for new business are set monthly, with the following caps effective at launch: *S&P 500^® Index Option – 13% *Nasdaq-100^® Index Option – 11% *Russell 2000^® Index Option – 14% Index Protection Strategy The Index Protection Strategy offers principal protection with the potential for some growth and may be ideal for more conservative clients. When the index return is flat or positive at the Index Anniversary, the client receives the amount of potential annual interest that may be credited during that year (the Declared Protection Strategy Credit). When the index return is negative, nothing is credited, however the contract value is reduced by an annual product fee. The amount of the credit is subject to change annually on the Index Anniversary and will never be less than 1.50%. At launch, the Declared Protection Strategy Credit is 4%. “The flexibility offered by Index Advantage allows clients to customize their contract based on their individual accumulation objectives and risk tolerance, helping people to build their retirement savings with more confidence,” added DeChellis. “The product offers a possible solution for those seeking a potential middle ground between their timeline and goals.” The current annual product fee is 1.25% calculated as a percentage of the charge base, which is the contract value on the preceding quarterly contract anniversary, adjusted for subsequent purchase payments and withdrawals. Index Advantage has a 6 year withdrawal charge schedule, with all withdrawals subject to ordinary income tax and, if taken prior to age 59^1/2, may be subject to a 10% federal additional tax. For more complete information about Allianz Index Advantage Variable Annuity and the variable options, call Allianz Life Financial Services, LLC at 800.542.5427 for a prospectus. The prospectuses contain details on investment objectives, risks, fees, and expenses, as well as other information about the variable annuity and variable options, which your clients should carefully consider. Encourage your clients to read the prospectuses thoroughly before sending money. Not FDIC insured ●May lose value ●No bank or credit union guarantee ●Not a deposit ●Not insured by any federal government agency or NCUA/NCUSIF. Products are issued by Allianz Life Insurance Company of North America and distributed by its affiliate, Allianz Life Financial Services, LLC, member FINRA, 5701 Golden Hills Drive, Minneapolis, MN 55416-1297. 800.542.5427 www.allianzlife.com The Nasdaq-100 Index^® includes 100 of the largest domestic and international non-financial securities listed on the Nasdaq Stock Market, based on capitalization. Russell 2000^® Index is an equity index that measures the performance of the 2,000 smallest companies in the Russell 3000^® Index. Standard & Poor's 500^® Index (S&P 500^®) is comprised of 500 stocks representing major U.S. industrial sectors. The S&P 500^® Index is a product of S&P Dow Jones Indices LLC. Full disclosure language for each Index can be found at www.allianzlife.com/annuities/variable_annuities/index_advantage.aspx. About Allianz Life Allianz Life Insurance Company of North America, one of FORTUNE’s 100 Best Companies to Work For in 2013, has been keeping its promises since 1896. Today, it carries on that tradition, helping Americans achieve their retirement income and protection goals with a variety of annuities and life insurance products. As a leading provider of fixed index annuities, Allianz Life is part of Allianz SE, a global leader in the financial services industry with 142,000 employees worldwide. More than 78 million private and corporate customers rely on Allianz knowledge, global reach, and capital strength to help them make the most of financial opportunities. Allianz Life Insurance Company of North America offers insurance and annuities in all states except New York. In New York, products are issued by Allianz Life Insurance Company of New York. ^i Withdrawals will reduce the contract value and the value of any protection benefits. Additional withdrawals taken during the withdrawal charge period will be subject to a withdrawal charge. All withdrawals are subject to ordinary income tax and, if taken prior to age 59 ½, may be subject to a 10% federal additional tax. Contact: Allianz Life Insurance Company of North America Media Contact: Sara Thurin Rollin, 763-765-6703 email@example.com
Allianz Life Launches New Indexed Variable Annuity
Press spacebar to pause and continue. Press esc to stop.