How Allianz 222® Annuity works
If you're concerned about saving for retirement – but you also want the potential for income increases – Allianz 222 Annuity may be a good choice.
Allianz 222 Annuity provides the typical features of fixed index annuities – including principal protection, the potential for tax-deferred growth, options for lifetime retirement income, and a death benefit for your beneficiaries.
While you're saving for retirement, Allianz 222 Annuity can help by giving you two ways to get a bonus to your Protected Income Value:
- a 20% bonus on any premium you put into your annuity in the first three contract years, and
- an interest bonus equal to 50% of any interest you earn from your chosen allocations.
And when you're ready to start receiving income, your lifetime income withdrawals can increase based on any interest you've earned, in addition to the 50% interest bonus. Plus, you can double your annual maximum withdrawal under qualifying circumstances.
Allianz 222 Annuity also gives your beneficiaries two ways to get a death benefit:
- they can receive your annuity's full accumulation value in a lump sum, if they wish, or
- instead, your beneficiaries can receive the full protected income value as annuity payments over at least five years.
Bonus annuities may include higher surrender charges, longer surrender periods, lower caps, higher spreads, or other restrictions that are not included in similar annuities that don't offer a bonus.
Issue age and minimum
The minimum initial premium payment is $20,000 for qualified and nonqualified money.
Allianz 222 Annuity offers two ways to receive a bonus on the protected income value of your contract. You’ll receive a 20% premium bonus on any premium you place in your annuity in the first three contract years. You’ll also receive an interest bonus equal to 50% of any fixed and/or indexed interest – for as long as you live.
To receive the protected income value, including any premium bonuses and interest bonuses, you must hold your annuity in deferral for at least 10 years and begin receiving lifetime withdrawals between the ages of 60 and 100. You will not receive the premium bonus or potential interest bonuses if the contract is partially or fully surrendered, if traditional annuity payments are taken, or if the protected income value rider is terminated.
The participation rate is 100% guaranteed for the life of the contract. This means we use the entire percentage of index change when we calculate the indexed interest rate. Caps or spreads would still apply. The cap is the maximum percentage of index change we use for a specified time period to determine how much interest we credit to your annuity in a given contract year. A spread is the amount we subtract from the percentage of change calculated for an index to determine how much interest we credit to your annuity in a contract year.
Call your Allianz financial professional for current caps, spreads, and interest rates.
Monthly sum: S&P 500® Index, Nasdaq-100® Index, Russell 2000® Index
Annual point-to-point with a cap: S&P 500® Index, Nasdaq-100® Index, Russell 2000® Index, Barclays US Dynamic Balance Index II, PIMCO Tactical Balanced Index, blended index
Annual point-to-point with a spread: Barclays US Dynamic Balance Index II, PIMCO Tactical Balanced Index
Monthly average: Blended index
The blended index is comprised of Dow Jones Industrial Average (35%), Barclays US Aggregate Bond Index (35%), EURO STOXX50® Index (20%), and Russell 2000 Index (10%).
A fixed interest allocation is also available.
Income or accumulation benefits
As described above, Allianz 222 Annuity offers two ways to receive a bonus on the Protected Income Value of your contract — a value in your annuity that is specifically designed for lifetime income withdrawals.
Once you start receiving income from your Protected Income Value, we'll increase your lifetime income withdrawals based on the interest rate credited to your allocations, including the interest bonus.
You can also double your annual maximum withdrawal with the Allianz Income Multiplier Benefit Rider, if you qualify due to hospitalization or confinement in an eligible nursing home or assisted living facility.
To receive the Allianz Income Multiplier Benefit, you must be confined to a qualified hospital, nursing facility, or assisted living facility for at least 90 days in a consecutive 120-day period. Confinement must occur after the first contract year and either during the contract year before the start of lifetime income withdrawals or at any time thereafter.
Access your money
After the first contract year, up to 10% of the contract's premium paid, minus withdrawals, can be withdrawn each contract year without incurring surrender charges or market value adjustment (MVA) or penalties as long as the money is withdrawn after the contract anniversary following the most recent premium payment; maximum is cash surrender value.
10-year surrender period (10%, 10%, 10%, 8.75%, 7.50%, 6.25%, 5.00%, 3.75%, 2.50%, 1.25%, 0%); beginning in contract year 4, the surrender charge decreases 1.25% on each contract anniversary. At the beginning of the 11th contract year, the surrender charge will be zero. The surrender charge and surrender charge period apply to the accumulation value, which does not include the premium bonus or the interest bonus. These surrender charges may vary by state.
Market Value Adjustment (MVA): If the contract is partially or fully surrendered (not including 10% free withdrawals and Required Minimum Distributions), it will be subject to an MVA during the surrender charge period. An MVA will also apply if the contract is annuitized prior to the sixth contract year or if annuity payments are taken over a period of less than 10 years. The MVA reference rate is a component used to calculate the MVA. For additional information on MVAs and their calculation, see the contract Statement of Understanding.
When you are ready to begin income withdrawals (anytime after 10 contract years), you can access your protected income value in the form of payments that last as long as you live. The initial annual maximum amount is a percentage of your protected income value and is based on your age when payments begin. You can choose to take lifetime income withdrawals beginning at age 60.
After your lifetime withdrawals begin, your income payments will have the opportunity to increase following each year your contract earns interest, including the 50% interest bonus. Also, as long as you don’t take other withdrawals, your payment is guaranteed to never decrease.
And if you should later be confined to an eligible nursing home, hospital, or assisted living facility, you can receive up to double your annual maximum income withdrawal with the Allianz Income Multiplier Benefit rider.
Prior to annuitization, Allianz 222 Annuity gives you two death benefit options. Your beneficiary(ies) can receive the greater of the accumulation value, guaranteed minimum value, or cumulative withdrawal amount as a lump sum (this option doesn't include any bonuses). Or, they can receive the Protected Income Value – including the premium and interest bonuses – in payments over a minimum of five years.
At death of the contract owner, beneficiaries receive the greater of the accumulation value, guaranteed minimum value, or cumulative withdrawal amount as a lump sum (no bonuses).
Current MVA reference rate: 2.82 % as of 3/30/2017
Uses the yield of the Barclays US Intermediate Corporate Bond Index.
Talk to your financial professional to see if Allianz 222 Annuity is appropriate for you. Here are some questions they can help answer:
- How are the annuity’s principal and any credited interest protected?
- How can this product provide income for life and assist with the rising cost of living?
- What backs up any guarantees available with this product?
- What else should I consider that might impact my retirement?
Purchasing an annuity within a retirement plan that provides tax deferral under sections of the Internal Revenue Code results in no additional tax benefit. An annuity should be used to fund a qualified plan based upon the annuity’s features other than tax deferral. All annuity features, risks, limitations, and costs should be considered prior to purchasing an annuity within a tax-qualified retirement plan.
Any distributions are subject to ordinary income tax and, if taken prior to age 59½, a 10% federal additional tax.
During the first 10 years, a surrender 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, interest bonus, 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.
The S&P 500® Index 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 Average℠, 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 Nasdaq-100 Index® includes 100 of the largest domestic and international non-financial securities listed on The Nasdaq Stock Market, based on capitalization. The Nasdaq-100®, Nasdaq-100 Index®, Nasdaq®, and OMX® are registered trademarks of NASDAQ OMX Group, Inc. (which with its affiliates are the Corporations) and are licensed for use by Allianz Life Insurance Company of North America. 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 PIMCO Tactical Balanced Index is comprised of the S&P 500® Index, a bond component comprised of the PIMCO Synthetic Bond Index and a duration overlay, and cash, and shifts weighting between them daily based on historical realized volatility of the components. The PIMCO Synthetic Bond Index is comprised of a small number of derivative instruments designed to provide exposure to U.S. Investment-grade and Treasury bond markets.
“The “PIMCO Tactical Balanced Index” is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”) and Pacific Investment Management Company LLC (“PIMCO”), and has been licensed for use by Allianz Life Insurance Company of North America (“Allianz”). Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Allianz. PIMCO’s Trademark(s) are trademarks of PIMCO and have been licensed for use by SPDJI and Allianz. Allianz products are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, or PIMCO and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the PIMCO Tactical Balanced Index.
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 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 is a trademark of Russell Investments and has been licensed for use by Allianz Life Insurance Company of North America. Allianz products are not sponsored, endorsed, sold or promoted by Russell Investments and Russell Investments makes no representation regarding the advisability of investing in Allianz products.
The Barclays US Dynamic Balance Index II is comprised of the Barclays US Aggregate RBI® Series 1 Index and the S&P 500® Index and shifts weighting daily, up to 3%, between them based on realized market volatility. The Barclays US Aggregate RBI® Series 1 Index is comprised of a portfolio of derivative instruments plus cash that are designed to track the Barclays US Aggregate Bond Index. The Barclays US Aggregate Bond Index is comprised of Barclays US investment-grade, fixed-rate bond market securities, including government agency, corporate, and mortgage-backed securities. Barclays Risk Analytics and Index Solutions Limited and its affiliates ("Barclays") is not the issuer or producer of any Allianz products and Barclays has no responsibilities, obligations or duties to investors in respect of the Barclays US Aggregate Bond Index, the Barclays US Aggregate RBI® Series 1 Index or the Barclays US Dynamic Balance Index II. The Barclays US Aggregate Bond Index, the Barclays US Aggregate RBI® Series 1 and the Barclays US Dynamic Balance Index II are trademarks owned by Barclays, and the Barclays US Aggregate Bond Index and the Barclays US Dynamic Balance Index II are licensed for use by Allianz Life Insurance Company of North America as the Issuer of the Allianz product. While Allianz may for itself execute transaction(s) with Barclays in or relating to the Barclays US Aggregate Bond Index, the Barclays US Aggregate RBI® Series 1 Index or the Barclays US Dynamic Balance Index II with Allianz products, investors acquire Allianz products from Allianz Life Insurance Company of North America and investors neither acquire any interest in the Barclays US Aggregate Bond Index, the Barclays US Aggregate RBI® Series 1 Index or the Barclays US Dynamic Balance Index II nor enter into any relationship of any kind whatsoever with Barclays upon making an investment in any Allianz product. The Allianz products are not sponsored, endorsed, sold or promoted by Barclays and Barclays makes no representation regarding the advisability of any Allianz product or use of the Barclays US Aggregate Bond Index, the Barclays US Aggregate RBI® Series 1 Index or the Barclays US Dynamic Balance Index II or any data included therein. Barclays shall not be liable in any way to the Issuer, investors or to other third parties in respect of the use or accuracy of the Barclays US Aggregate Bond Index, the Barclays US Aggregate RBI® Series 1 Index or the Barclays US Dynamic Balance Index II or any data included therein.
The EURO STOXX 50® provides a blue-chip representation of supersector leaders in the Eurozone. The index covers 50 stocks from 12 Eurozone countries: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain.
The EURO STOXX 50® is the intellectual property (including registered trademarks) of STOXX Limited, Zurich, Switzerland. Allianz products based on the Index are in no way sponsored, endorsed, sold or promoted by STOXX and shall not have any liability with respect thereto.
• 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. (C54370-MVA, R95352-MVA)
In the state of New York, only Allianz Life Insurance Company of New York is authorized to offer annuities and life insurance. www.allianzlife.com/new-york
Product and feature availability may vary by state and broker/dealer.