The Allianz Index Advantage® New York Variable Annuity offers a different risk/return consideration from traditional accumulation products and is designed to complement your portfolio. It includes a death benefit during the accumulation phase, traditional variable options, and multiple innovative index options to help meet your needs.
Death benefit
Prior to receiving your entire contract value or annuitizing your contract, your beneficiaries will receive the greater of your contract value or purchase payments adjusted for withdrawals upon the first death of an owner named at issue. Changing ownership on the contract can reduce or eliminate these death benefits.
Issue age and minimum
You must be from age 0-85 in order to purchase Allianz Index Advantage® New York Variable Annuity.
The minimum initial purchase payment is $10,000 for qualified and nonqualified contracts. Minimum subsequent purchase payment is $501,2,3 and maximum purchase payment is $10,000,000.
Allocation options
You’ll need to work with your financial professional to design an investment portfolio that aligns with your long-term retirement goals.
Index options available:
No product fee for the index options
Indexes available with the Index Performance Strategy include:
S&P 500® Index
Russell 2000® Index
Nasdaq-100® Index
EURO STOXX 50®
Indexes available with the Index Protection NY Strategy include:
S&P 500® Index
Russell 2000® Index
Nasdaq-100® Index
EURO STOXX 50®
Although an index or indexes will affect your Index Option Values, the Index Options do not directly participate in any stock or equity investment and are not a direct investment in an index.
Variable options available:
AZL® Government Money Market Fund*,4
AZL® MVP Balanced Index Strategy Fund4,5
AZL® MVP Growth Index Strategy Fund4,5
Annual operating expense of variable options are:
Minimum 0.65%
Maximum 0.71%
Mortality and expense (M&E) risk charge:
1.25% on variable options only (assessed against variable options' net asset value)
Net expenses include contract fee waivers and expense reimbursements.
Contract options
The Allianz Index Advantage® New York Variable Annuity provides a combination of traditional variable options along with multiple index options. Each index option is the combination of a crediting method, also called an index strategy, the index, the time period for measuring index performance (term), and buffer amount. An allocation to the index options is not a purchase of shares of any stock or index fund or a direct investment in an index. Transfers to the index option are allowed every Index Anniversary. After a Term Start Date, you cannot transfer into an established multiyear term index option until the Term End Date; instead we will add this transfer to a new multi-year term index option with a new Term Start Date. Transfers from the index option to the variable options are allowed every sixth Index Anniversary.
The Index PERFORMANCE Strategy is a crediting method that provides upside potential with a level of protection. This may be a good option if you are willing to take on some level of risk with the opportunity to grow your assets.
This is accomplished by applying a performance credit on the Term End Date, which is the return your contract may receive when allocated to an index option, equal to the index return, up to a limit called the cap, if the index return is positive. If you are taking a partial withdrawal during an index year, the withdrawn amount will not receive a performance credit on the next Term End Date. If the index return is negative, you may receive a negative performance credit, but only when the loss is greater than a specified percentage called the buffer, currently 10% or 20% depending on the index option. This helps provide a level of protection by absorbing the first 10% or 20% of negative index return in any given year. Losses in excess of the buffer will reduce your contract value. The buffer cannot change for a contract after it is established. However, we can change the buffer rates for new business at any time.
The initial caps are determined on the Index Effective Date and they are subject to significant change annually on each Term Start Date, and will never be less than 5.00% for 1-year terms, 12.00% for 3-year terms, and 30% for 6-year terms. Participation rates cannot be less than 100%.
Caps and buffers can be different for newly issued and inforce contracts, and they can be different between inforce contracts issued on different days and in different years. Caps and buffers can also be different for each index and option.
Deduction of withdrawal charges and contract maintenance charges may result in loss of principal and performance credits, which is the annual return you may receive when you allocate money to an index option.
The Index PROTECTION NY Strategy with a 30% buffer is a crediting method that provides less growth potential in return for additional protection from negative index performance. That means you can help protect what you’ve earned while still having growth opportunities.
If the annual index return is positive, you’ll receive an annual performance credit equal to that return, up to a limit called a cap. If you take a partial withdrawal during an index year, the withdrawn amount will not receive a performance credit on the next index anniversary. The caps will be lower than those offered on the Index Performance Strategy, in return for a greater level of protection.
If the annual index return is negative, you may receive an annual negative performance credit – but only when the loss is greater than a specified percentage called the buffer, currently 30%. This helps provide a level of protection by absorbing the first 30% of negative index return in any given year. Losses in excess of 30% will reduce your contract value. The 30% current buffer cannot change for a contract after it is established. However, we can change the buffer rates for new business at any time. The Index Protection NY Strategy buffer will be greater than what is available with the Index Performance Strategy.
The cap for the Index Protection NY Strategy, just like the Index Performance Strategy, is declared on the Index Effective Date, which is the first date your money has the opportunity to be allocated to an index option, and on each Index Anniversary thereafter. The cap is subject to significant change annually on the Index Anniversary, and will never be less than 3.00%.
Remember that you have the flexibility to allocate into multiple index options in the same year. It is important to know that the two index strategies have different risk and return potentials. The Index Performance Strategy has higher caps in exchange for a lower buffer (i.e., in exchange for higher risk). The Index Protection NY Strategy provides more protection and has a higher buffer in exchange for lower caps. Please consult with your financial professional to determine your appropriate mix of performance potential and protection.
Caps and buffers can be different for newly issued and inforce contracts, and they can be different between inforce contracts issued on different days and in different years. Caps and buffers can also be different for each index option.
Deductions for withdrawal charges and contract maintenance charges may result in a loss of principal or previously earned performance credits, and will not receive a performance credit on the next Index Anniversary.
Rates
For more information on current caps and buffers, please consult your financial professional.
Your contract includes a six-year withdrawal charge schedule on each purchase payment, and if taken prior to age 59½, may be subject to a 10% federal additional tax.
Twelve charge-free transfers per year are allowed among variable options only ($25 thereafter). Transfers to index options are allowed on every Index Anniversary, which is the anniversary of the Index Effective Date (the first date your money had the opportunity to be allocated to any index option). Transfers from index options to the variable options are allowed every sixth Index Anniversary.
If you need access to your money, you can withdraw up to 10% of your purchase payments each contract year without a withdrawal charge. Any unused portion does not carry from one year to the next. On a full withdrawal, the free withdrawal privilege is not available and amounts previously withdrawn under the free withdrawal privilege may be subject to the withdrawal charge. All withdrawals are subject to ordinary income tax and, if taken prior to age 59½, may be subject to a 10% federal additional tax.
1 Additional purchase payments received after the Index Effective Date can only be allocated to the index options on the Index Anniversary.
2 Allianz reserves the right to decline additional purchase payments at any time on a nondiscriminatory basis.
3 Additional purchase payments allocated to an index option between Index Anniversaries will be placed in the AZL® Government Money Market Fund until the next Index Anniversary. At the Index Anniversary we will transfer those allocations in the AZL Government Money Market Fund to the applicable index option.
4 This investment option is subadvised. The subadvisor may have a public mutual fund with an investment objective that is similar to that of this investment option. These are separate portfolios that will have different performance due to differing fees, expenses, relative cash flows, portfolio sizes, and other factors.
5 This investment option invests in derivative instruments such as futures, options, and swap agreements. Derivatives can increase the investment option’s share price volatility and could magnify losses. Certain derivative instruments also involve costs that could reduce returns. Certain derivatives may involve risk of default.
Manager Allocation Risk: The risk refers to the possibility that the manager could allocate assets in a manner that will cause the funds to underperform other funds with similar investment objectives. The manager may have a potential conflict of interest in allocating assets among and between the permitted underlying funds because the subadvisory fee rate it pays to the subadvisors of the permitted underlying funds is different.
Generally under normal conditions, 5% (up to 20%) of the investment option is invested in the MVP risk management overlay. When overall market volatility is generally moderate or low, the MVP risk management process will look to participate with the market using derivatives equal to the risk of the investment options and minimize its protection aspect. During periods of higher market volatility, the MVP risk management process will seek to reduce volatility using derivatives with the goal to minimize extreme negative outcomes. Derivatives are contracts used as underlying assets and play an important role in hedging risk. They limit the need to buy or sell assets within the underlying funds in periods of volatility. They also include the risks related to futures and options, which may be different from and greater than the risks of direct investments in securities or other traditional investments. The MVP process does not ensure a profit or protect against losses. Success of the hedging strategy or fund objectives cannot be guaranteed.
Each AZL® MVP fund utilizes the MVP risk management process, which could cause the equity exposure of the funds to fluctuate, but equity exposure will generally not be lower than 10%.
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* You could lose money by investing in the AZL® Government Money Market Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.
Registered index-linked annuities (RILAs) provide indexed return potential with the opportunity for varying levels of protection through multiple index options available prior to receiving income, tax-deferred growth potential, a variety of lifetime annuity payout options, and a death benefit during the accumulation phase.
Variable annuities are subject to investment risk, including loss of principal, and contract values fluctuate daily. Investment returns and principal value will fluctuate with market conditions so that units, upon distribution, may be worth more or less than the original cost.
Withdrawals will reduce the contract value and the value of any potential protection benefits. Withdrawals taken within the contract withdrawal charge schedule will be subject to a withdrawal charge. All withdrawals are subject to ordinary income tax and, if taken prior to age 59½, may be subject to a 10% federal additional tax.
For more complete information about Allianz Index Advantage® New York Variable Annuity and the variable options, call your financial professional or 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 and index-linked annuity and variable options, which you should carefully consider. Please read the prospectuses thoroughly before sending money.
Guarantees are backed by the financial strength and claims-paying ability of Allianz Life Insurance Company of New York and do not apply to the performance of the variable subaccounts, which will fluctuate with market conditions.
The Nasdaq-100 Index® includes 100 of the largest domestic and international non-financial securities listed on the NASDAQ Stock Market® based on market capitalization.
NASDAQ®, and Nasdaq-100 Index®, are registered trademarks of Nasdaq, Inc. (which with its affiliates is referred to as the “Corporations”) and are licensed for use by Allianz Life Insurance Company of New York. The Product(s) have not been passed on by the Corporations as to their legality or suitability. The Product(s) are not issued, endorsed, sold, or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE PRODUCT(S).
The Russell 2000® Index is an equity index that measures the performance of the 2,000 smallest companies in the Russell 3000® Index, which is made up of 3,000 of the biggest U.S. stocks. The Russell 2000® Index is constructed to provide a comprehensive and unbiased small-cap barometer and is completely reconstituted annually to ensure larger stocks do not affect the performance and characteristics of the true small-cap index.
The Russell 2000® Index (the “Index”) is a trademark of Frank Russell Company (“Russell”) and has been licensed for use by Allianz Life Insurance Company of New York (“Allianz Life of NY”). Allianz Life of NY products are not in any way sponsored, endorsed, sold or promoted by Russell or the London Stock Exchange Group companies (“LSEG”) (together the “Licensor Parties”) and none of the Licensor Parties make any claim, prediction, warranty or representation whatsoever, expressly or impliedly, either as to (i) the results to be obtained from the use of the Index (upon which the Allianz Life of NY product is based), (ii) the figure at which the Index is said to stand at any particular time on any particular day or otherwise, or (iii) the suitability of the Index for the purpose to which it is being put in connection with the Allianz Life of NY product. None of the Licensor Parties have provided or will provide any financial or investment advice or recommendation in relation to the Index to Allianz Life of NY or to its clients. The Index is calculated by Russell or its agent. None of the Licensor Parties shall be (a) liable (whether in negligence or otherwise) to any person for any error in the Index or (b) under any obligation to advise any person of any error therein.
The EURO STOXX 50® provides a blue-chip representation of supersector leaders in the Eurozone. The index covers 50 stocks from 11 Eurozone countries: Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain.
The EURO STOXX 50® is the intellectual property (including registered trademarks) of STOXX Limited, Zurich, Switzerland (“STOXX”), Deutsche Börse Group or their licensors, which is used under license. Allianz Life Insurance Company of New York (“Allianz Life of NY”) products are neither sponsored nor promoted, distributed or in any other manner supported by STOXX, Deutsche Börse Group or their licensors, research partners or data providers and STOXX, Deutsche Börse Group and their licensors, research partners or data providers do not give any warranty, and exclude any liability (whether in negligence or otherwise) with respect thereto generally or specifically in relation to any errors, omissions or interruptions in the EURO STOXX 50 or its data.
The S&P 500® Index (S&P 500®) is comprised of 500 stocks representing major U.S. industrial sectors.
S&P® is a registered trademark of Standard & Poor’s Financial Services LLC (“S&P”). This trademark has been licensed for use by S&P Dow Jones Indices LLC and its affiliates. S&P® and S&P 500® are trademarks of S&P. These trademarks have been sublicensed for certain purposes by Allianz Life Insurance Company of New York (“Allianz Life of NY”). The S&P 500 is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by Allianz Life of NY. Allianz Life of NY products are not sponsored, endorsed, sold, or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, or their respective affiliates and neither S&P Dow Jones Indices LLC, Dow Jones, S&P, or their respective affiliates make any representation regarding the advisability of investing in such product.
• 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 New York, 1633 Broadway, 42nd Floor, New York, NY 10019-7585, and distributed by its affiliate, Allianz Life Financial Services, LLC, member FINRA, 5701 Golden Hills Drive, Minneapolis, MN 55416-1297. (L40538-NY03)
Product and features are available only in New York and may vary by broker/dealer.
