How Allianz 360SM Annuity works
If you're concerned about saving enough for retirement – and you also want an opportunity for lifetime income withdrawal payment increases – Allianz 360 Annuity and its 360 Benefit rider may be a good choice.
Allianz 360 Annuity provides the typical features of fixed index annuities – including principal protection from market downturns, 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 360 Annuity and the 360 Benefit rider help you in three ways, by:
- providing the opportunity for indexed and/or fixed interest,
- giving you an interest bonus equal to 25% of the interest that is credited to your contract until withdrawals begin, and
- beginning at age 40, increasing your income withdrawal percentage with every year you hold your contract before starting income withdrawals.
And when you’re ready to start receiving income, the 360 Benefit rider lets you choose from two lifetime income withdrawal option, beginning at age 50:
- You can elect predictable income, or
- choose income that can increase each year.
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. The bonus is credited each year the selected allocations earn interest. During the first 10 contract years, we will apply a surrender charge 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).
Issue age and minimum
The minimum initial premium payment is $20,000 for qualified and nonqualified money.
We'll add a 25% interest bonus to any fixed or indexed interest earned, and credit it to the accumulation value of the 360 Annuity contract until you begin lifetime withdrawals, or until the 360 Benefit rider is terminated, whichever comes first. The interest bonus will be calculated after any cap or spread is applied. During the first 10 contract years, we will apply a surrender charge 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).
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, Bloomberg US Dynamic Balance Index II, PIMCO Tactical Balanced Index, blended index
Annual point-to-point with a spread: Bloomberg US Dynamic Balance Index II, PIMCO Tactical Balanced Index
Monthly average: Blended index
The blended index is comprised of Dow Jones Industrial Average (35%), Bloomberg 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
The 360 Benefit rider is issued with the Allianz 360 Annuity for an additional charge. It can help you address both halves of retirement: accumulating retirement savings and receiving income in the form of lifetime withdrawals. It offers an interest bonus and increasing income withdrawal percentages (beginning at age 40) until income payments begin. It also offers a choice of two income payment options beginning at age 50: predictable payments and payments with the opportunity to increase.
Beginning at age 40, the 360 Benefit rider lifetime withdrawal percentages will automatically increase each year you hold the contract, until income payments begin. The base payment percentage is determined by your age at the time you purchase the annuity. Starting at age 50 the base payout percentages increase 10 bps for every year of age at issue. (for example, payout option 1, age 50 base = 3.80%, age 51 base = 3.90%, etc.).
The annual cost of the rider is 1.15% of the accumulation value, deducted on a monthly basis from Allianz 360 Annuity's accumulation value and guaranteed minimum value (in most states). The rider charge will continue for the life of the contract even after lifetime income payments have begun.
You can cancel this rider at any time after the fifth contract year. Once the rider is canceled, it may not be reinstated. If the rider is canceled, you will no longer receive interest bonuses from that point forward and will lose the ability to take lifetime withdrawals. Annuitization, however, is still available. If the rider is cancelled, the only benefit of paying for the rider would be the interest bonuses that were credited up until the point the rider was cancelled.
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.
Payout option 1 offers predictable income payments, so you will have the reassurance of knowing exactly how much each payment will be for the rest of your life.
Payout option 2 offers the potential for income payment increases based on changes in fixed or indexed interest allocations. On every contract anniversary, the previous year’s income payment will be recalculated to reflect the interest rate from your chosen allocations, which means the income payment amount has the potential to increase every year. Income payments under option 2 will start out lower than income payments under option 1.
The contract’s accumulation value prior to annuitization, including credited interest bonus, is available as a lump sum or as annuity income payments over at least five years.
Current MVA reference rate: 2.64 % as of 6/26/2017
Uses the yield of the Bloomberg Barclays US Intermediate Corporate Bond Index.
Talk to your financial professional to see if Allianz 360 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 Bloomberg US Dynamic Balance Index II is comprised of the Bloomberg 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 Bloomberg Barclays US Aggregate RBI® Series 1 Index is comprised of a portfolio of derivative instruments plus cash that are designed to track the Bloomberg Barclays US Aggregate Bond Index. The Bloomberg Barclays US Aggregate Bond Index is comprised of Bloomberg Barclays US investment-grade, fixed-rate bond market securities, including government agency, corporate, and mortgage-backed securities.
The Bloomberg US Dynamic Balance Index II, the Bloomberg Barclays US Aggregate RBI® Series 1 Index and the Bloomberg Barclays US Aggregate Bond Index (collectively, the “Bloomberg Indices”) are the property of Bloomberg Index Services Limited. The Bloomberg US Dynamic Balance Index II 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 Indices.
BLOOMBERG is a trademark and service mark of Bloomberg Finance L.P. BARCLAYS is a trademark and service mark of Barclays Bank Plc, used under license. Bloomberg Finance L.P. and its affiliates (collectively, “Bloomberg”) or Bloomberg’s licensors own all proprietary rights in the Bloomberg Indices. Neither Bloomberg nor Barclays Bank Plc or Barclays Capital Inc. or their affiliates (collectively "Barclays") guarantee the timeliness, accuracy or completeness of any data or information relating to Bloomberg Indices or make any warranty, express or implied, as to the Bloomberg Indices or any data or values relating thereto or results to be obtained therefrom, and expressly disclaims all warranties of merchantability and fitness for a particular purpose with respect thereto. It is not possible to invest directly in an index. Back-tested performance is not actual performance. Past performance is not an indication of future results. To the maximum extent allowed by law, Bloomberg and its licensors, and their respective employees, contractors, agents, suppliers and vendors shall have no liability or responsibility whatsoever for any injury or damages - whether direct, indirect, consequential, incidental, punitive or otherwise - arising in connection with Bloomberg Indices or any data or values relating thereto - whether arising from their negligence or otherwise. This document constitutes the provision of factual information, rather than financial product advice. Nothing in the Bloomberg Indices shall constitute or be construed as an offering of financial instruments or as investment advice or investment recommendations (i.e., recommendations as to whether or not to “buy,” “sell,” “hold” or enter into any other transaction involving a specific interest) by Bloomberg or its affiliates or licensors or a recommendation as to an investment or other strategy. Data and other information available via the Bloomberg Indices should not be considered as information sufficient upon which to base an investment decision. All information provided by the Bloomberg Indices is impersonal and not tailored to the needs of any specific person, entity or group of persons. Bloomberg and its affiliates express no opinion on the future or expected value of any security or other interest and do not explicitly or implicitly recommend or suggest an investment strategy of any kind. In addition, Barclays is not the issuer or producer of the Bloomberg Indices and has no responsibilities, obligations or duties to investors in these indices. While Bloomberg may for itself execute transactions with Barclays in or relating to the Bloomberg Indices, investors in the Bloomberg Indices do not enter into any relationship with Barclays and Barclays does not sponsor, endorse, sell or promote, and Barclays makes no representation regarding the advisability or use of, the Bloomberg Indices or any data included therein. Customers should consider obtaining independent advice before making any financial decisions. © 2016 Bloomberg Finance L.P. All rights reserved.
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, R95316-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.