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Essential Income 7® Annuity

If you’re concerned about covering your essential expenses in retirement, Essential Income 7® Annuity and its Essential Income Benefit (included at an additional cost)1 may be a good choice. Essential Income 7® Annuity rewards you for waiting while you’re saving for retirement: Beginning at age 45, the lifetime withdrawal percentage is guaranteed to increase each year until you begin lifetime income withdrawals. It also gives you two options for receiving lifetime income withdrawals, including an opportunity for increasing income.

Help cover essential expenses, with options for taking income

Essential Income 7® Annuity is designed to help you accumulate for retirement and provide a steady stream of guaranteed income after you retire. Because it’s a fixed index annuity (FIA), it offers tax-deferred growth potential, protects your principal and credited interest from market downturns, and provides a death benefit for beneficiaries.

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Features of Essential Income 7® Annuity

Before you take income

Beginning at age 45, Essential Income 7® Annuity automatically increases your annual withdrawal percentage until you start taking lifetime income withdrawals. This means that the higher your withdrawal percentage is, the higher your income will be.

Turning on income

You can start taking lifetime withdrawals from your annuity immediately after buying your contract if you’re at least age 50, or at the start of any contract year once you turn 50.2 Essential Income 7® Annuity and the Essential Income Benefit give you two different lifetime income withdrawal options. Option 1 gives you predictable income for the rest of your life, while Option 2 starts lower – but gives you an opportunity for income increases down the road every time your selected allocation earns interest. And after seven years – if you haven’t yet started annuity payments – you also have the option of withdrawing some or all of your money in a lump sum.

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Allocation options

An allocation option is the combination of an index (such as the S&P 500® Index) and a crediting method. Essential Income 7® Annuity lets you choose among the following allocation options:

Crediting methods

Crediting methods are simply mathematical formulas that determine how much indexed interest your annuity receives based on changes in an index during a given timeframe (“crediting period”).

Current MVA reference rate: 5.13 % as of 7/12/2024

Uses the yield of the Bloomberg US Intermediate Corporate Bond Index

Historical MVA reference rates

Withdrawal charge schedule

Start of contract year

1

2

3

4

5

6

7

8

Withdrawal charge %

8.5%

8.0%

7.0%

6.0%

5.0%

4.0%

3.0%

0%

1 The annual benefit charge for the Essential Income Benefit is a percentage of the accumulation value, deducted monthly from the accumulation value and guaranteed minimum value (in most states). The annual benefit charge percentage for the guaranteed minimum value is 1.05% for all contract years. The annual benefit charge percentage for the accumulation value is 1.05% for the first contract year. It can change each year during the next six contract years, but will not be more than 2.50%. After the seventh contract year, the annual benefit charge percentage will be 1.05% for all remaining contract years. The benefit charge will continue for the life of the contract even after lifetime income payments have begun.

2 You can start taking lifetime withdrawals from your annuity immediately or on any monthly anniversary after age 50 – but remember that you may be subject to a 10% federal early withdrawal penalty if you take withdrawals before age 59½. These lifetime withdrawal payments will last as long as you live.

Standard & Poor’s 500® index (S&P 500®) is comprised of 500 stocks representing major U.S. industrial sectors. The Dow Jones Industrial Average is a popular indicator of the stock market based on the average closing prices of 30 active U.S. stocks representative of the overall economy.

S&P® is a registered trademark of Standard & Poor’s Financial Services LLC (“S&P”) and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”). These trademarks have 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 and Dow Jones®, Dow Jones Industrial AverageSM, DJIA, and The Dow are trademarks of Dow Jones. These trademarks have been sublicensed for certain purposes by Allianz Life Insurance Company of North America (“Allianz”). The S&P 500 and Dow Jones Industrial Average (DJIA) are products of S&P Dow Jones Indices LLC and/or its affiliates and have been licensed for use by Allianz. Allianz 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.

The Bloomberg US Dynamic Balance Index II is comprised of the Bloomberg US Aggregate RBI Series 1 Index, the S&P 500® Index, and cash, and shifts weighting daily between them based on realized market volatility. The Bloomberg US Aggregate RBI Series 1 Index is comprised of a portfolio of derivative instruments plus cash that are designed to track the Bloomberg US Aggregate Bond Index. The Bloomberg US Aggregate Bond Index is comprised of Bloomberg US investment-grade, fixed-rate bond market securities, including government agency, corporate, and mortgage-backed securities.

The Bloomberg US Dynamic Balance Index II (a "Bloomberg Index") is the property of Bloomberg Index Services Limited and is derived and calculated based on the S&P 500 Index under license from S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC) ("S&P Dow Jones Indices"). S&P® is a registered trademark of Standard & Poor's Financial Services LLC and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC. S&P 500® is a registered trademark of Standard & Poor's Financial Services LLC and has been licensed for use to Bloomberg Index Services Limited. Neither S&P Dow Jones Indices, its affiliates nor their third party licensors sponsor or promote the Index and no such party shall have any liable in connection with the Bloomberg Index.

“Bloomberg®” and Bloomberg US Dynamic Balance II ER Index are service marks of Bloomberg Finance L.P. and its affiliates, including Bloomberg Index Services Limited (“BISL”), the administrator of the index (collectively, “Bloomberg”) and have been licensed for use for certain purposes by Allianz Life Insurance Company of North America ("Allianz"). Bloomberg is not affiliated with Allianz Life Insurance Company of North America ("Allianz"), and Bloomberg does not approve, endorse, review, or recommend the Allianz product. Bloomberg does not guarantee the timeliness, accurateness, or completeness of any data or information relating to the Allianz product.

The Bloomberg US Dynamic Balance II ER Index is comprised of the Bloomberg US Aggregate Custom RBI Unfunded Index and the Bloomberg US Equity Custom Futures ER Index and shifts weighting daily between them based on realized market volatility. The Bloomberg US Aggregate Custom RBI Unfunded Index is comprised of a portfolio of derivative instruments that are designed to provide exposure to U.S. Investment-grade and Treasury bond markets in excess of a benchmark rate. The Bloomberg US Equity Custom Futures ER Index is designed to provide exposure to large cap U.S. stocks in excess of a benchmark rate.

Any distributions are subject to ordinary income tax and, if taken prior to age 59½, a 10% federal additional tax.

During the first 7 years, a withdrawal charge and MVA will apply if the contract is partially or fully surrendered. These charges may result in a loss of indexed interest and fixed interest and a partial loss of principal (premium).

Guarantees are backed by the financial strength and claims-paying ability of Allianz Life Insurance Company of North America.

This content does not apply in the state of New York.

• 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, PO Box 59060, Minneapolis, MN 55459-0060. (C61892-02-MVA)

Product and feature availability may vary by state and broker/dealer.

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