How Allianz 365i® Annuity works
If you're concerned about saving enough for retirement – and you also want several options for receiving retirement income – Allianz 365i Annuity may be a good choice.
Allianz 365i 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 365i Annuity also gives you:
- the potential to receive indexed interest based on changes in an external market index,
- a 4% premium bonus on any money you place in your annuity in the first three contract years, and
- access to your full accumulation value – including the bonus – as a lump sum after 10-year surrender charge period.
And when you’re ready to start receiving income, Allianz 365i Annuity offers several flexible income options, including income you can’t outlive. Plus, when you add the optional Income Maximizer rider (available at extra cost), Allianz 365i annuity can help provide opportunities for lifetime income withdrawal payment increases.
Issue age and minimum
The minimum initial premium payment is $20,000 for qualified and nonqualified money.
We’ll add a 4% premium bonus to any money you place in your annuity within the first three years, and will credit the bonus to your annuity’s accumulation value. The bonus is subject to a 10-year vesting schedule. 10% of the bonus will become vested on each contract anniversary until the beginning of the 11th contract year, when 100% will be vested. If you surrender your contract before the 11th contract year, you will lose the unvested bonus. During the first 10 contract years, we will apply a surrender charge and unvested bonus reduction if you partially or fully surrender your contract. The same would apply if you begin annuitization, which means receiving regular annuity payments over a specified period of time, prior to the sixth contract year (or for fewer than 10 years). These charges may result in a loss of bonus, indexed interest and fixed interest, and a partial loss of principal (your premium). Bonus annuities may include higher surrender charges, longer surrender charge periods, lower caps, higher spreads, or other restrictions that are not included in similar annuities that don’t offer a premium bonus feature.
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, blended index, PIMCO Tactical Balanced Index
Annual point-to-point with a spread: Barclays US Dynamic Balance 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
The Income Maximizer Rider is issued with the Allianz 365i 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.
While you're saving for retirement, it offers guaranteed interest – plus an opportunity for additional interest, based on the clients chosen allocations too. The interest is credited to the protected income value every year until withdrawals or annuitization begins.
And when you're ready to start receiving income it provides income for as long as you live, and gives you three payment options (predictable payments, the potential for increasing income payments, or inflation-adjusted payments).
The Income Maximizer Rider is optional when you purchase the Allianz 365i Annuity and is available in most states for an additional cost of 1.20% of the protected income value, which we deduct monthly from the accumulation value and the guaranteed minimum value. The protected income value is only available as a stream of income. It is not available as a lump sum or if the contract is annuitized or surrendered.
You can cancel the rider any time after the fifth contract year. However, you will no longer receive protected income value credits and your protected income value will no longer be available for lifetime withdrawals. Once the rider is terminated, it cannot be reinstated.
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 penalties as long as the money is withdrawn after the contract anniversary following the most recent premium payment; not to exceed cash surrender value. If, in the same contract year as one or more free withdrawals, additional premium is paid or the contract is surrender, we will retroactively assess the surrender charge.
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 includes any premium bonus.
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.
The Allianz 365i Annuity with the Income Maximizer Rider offers three lifetime income withdrawal options that can help you address the most common retirement-income concerns.
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 payments start out smaller but offer the potential to increase your income any year that we credit indexed interest to your Allianz 365i Annuity.
Payout option 3 can help address the eroding effects of inflation on your purchasing power. Your Inflation-protected payments will start out smaller. But because this option is tied to the Consumer Price Index (CPI-U), your income can increase when the cost of living goes up. Increases are capped at 10% per year and are limited to the first 20 contract years after inflation-protected payments begin.
The greater of the contract’s accumulation value or guaranteed minimum value (GMV), including premium bonus, is available prior to the annuitization as a lump sum or as annuity income payments over at least five years.
In addition to the contract’s accumulation value as a death benefit, beneficiaries can receive a potential death benefit enhancement amount equal to 25% of all fixed and indexed interest credited throughout the life of your Allianz 365i contract.
Current MVA reference rate: 2.27 % as of 9/25/2016
Uses the yield of the Barclays US Intermediate Corporate Bond Index.
Talk to your financial professional to see if Allianz 365i 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?