If you're concerned about saving for retirement – and also want flexible retirement income options, including income for life – Allianz Endurance Plus Annuity may be a good choice.
Allianz Endurance Plus 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 Endurance Plus also gives you:
- a 20% bonus credited to the Enhanced Withdrawal Benefit (EWB)1 value on premium received in the first three years, and
- the potential to receive indexed interest based on positive changes in your choice of indexed interest allocation.
- a fixed interest allocation for steady, predictable interest.
And when you're ready to start receiving income, Allianz Endurance Plus offers:
- the flexibility to take 10% of your premium as penalty-free withdrawals in any year you don't place premium in your annuity, and
- access to the contract's accumulation value money through a surrender penalty-free, lump-sum withdrawal after 10 years (not including the premium bonus), and
- payments that will last your entire life, when you access your EWB value. (We determine the amount of the payments based on the age when you start the lifetime income stream. Available for ages 60-90.)
1 The bonus and enhanced interest are credited only to the Enhanced Withdrawal Benefit (EWB) value. To receive the EWB value, including the bonus, the contract must be held for at least 10 years, and then EWB payments must be taken over at least an additional 10 years under one of two EWB income options. You will not receive the bonus or enhanced interest if the contract is partially or fully surrendered or if traditional annuitization payments are taken. EWB payments are considered partial withdrawals and are subject to ordinary income tax and, if taken prior to 59½, a 10% federal additional tax. Because this is a bonus annuity, it 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.
Issue age and minimum
You must be age 80 or younger to purchase Allianz Endurance Plus Annuity.
The minimum initial premium payment is $10,000 for qualified and nonqualified money. You can add a mimimum of $25.00 (each month) in subsequent payments in the first three years of the contract.
Endurance Plus offers a 20% Enhanced Withdrawal Benefit (EWB) bonus1 on all of the premium you put in your annuity in the first three years. To take advantage of your Enhanced Withdrawal Benefit value, you must choose one of two EWB income options anytime after your 10th contract year.
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, FTSE 100 Index
Annual point-to-point: S&P 500® Index, Nasdaq-100® Index, FTSE 100 Index, blended index
Monthly average: Blended index
The blended index is comprised of Dow Jones Industrial Average (35%), Barclays Capital U.S. Aggregate Bond Index (35%), FTSE 100 (20%), and Russell 2000® Index (10%)
A fixed interest allocation is also available.
Income or accumulation benefits
The Enhanced Withdrawal Benefit (EWB) value is the total premium you've paid, plus a 20% EWB bonus1 on all of the premium you put in your annuity in the first three years. To take advantage of your Enhanced Withdrawal Benefit value, you must choose one of two EWB income options anytime after your 10th contract year.
Here's how it works: The Enhanced Withdrawal Benefit (EWB) value receives a 20% bonus based on all premiums received in the first three years. On top of that, anytime the accumulation value earns interest, the EWB value earns enhanced interest credited at a factor of 105% of what we credit to the accumulation value. For example, if your interest rate is 5%, your EWB value would earn 5.25% (5% x 105%). If the accumulation value does not earn interest, the EWB value will remain unchanged. Withdrawals (including EWB payments) will reduce the EWB value.
Access your money
With our free withdrawal option, after the contract anniversary following your most recent premium payment, up to 10% of the contract's paid premium, minus withdrawals, can be withdrawn each year in one or more withdrawals without surrender charges. Withdrawals reduce contract values and the value of any income and death benefits. The first 5% taken out in a contract year will reduce the accumulation value and EWB value by the amount of the withdrawal. You are eligible to receive indexed interest on this withdrawal at the end of the contract year based on the rate and length of time that withdrawal amount remained in the contract. The second 5% taken out in a contract year will reduce the accumulation value by the amount of the withdrawal and the EWB value will be reduced by the same percentage that it reduces the accumulation value. You are eligible to receive indexed interest on this withdrawal at the end of the contract year based on the rate and length of time that withdrawal amount remained in the contract. Free withdrawals are not available once EWB payments have begun. Any distributions are subject to ordinary income tax and, if taken prior to age 59½, a 10% federal tax penalty.
You can receive your annuity's full accumulation value at any time after 10 contract years.
If you surrender during the first 10 years, you will receive the cash surrender value. The cash surrender value is the accumulation value minus the full surrender charge. The cash surrender value could be less than the amount of premium you put into the contract but it will never be less than the guaranteed minimum value. Keep in mind the accumulation value does not include the EWB bonus or any enhanced interest.
Option 1 allows you to take scheduled withdrawals of up to 10% of your EWB value each contract year. After any year of positive interest, your maximum annual withdrawal will increase with enhanced interest. If you choose this option and request the maximum annual withdrawal, after exactly 10 years of income payments, you will have received your annuity's full EWB value and the contract would be exhausted. This includes the 20% EWB bonus plus any enhanced interest credited over the entire life of the annuity.
Option 2 gives you access to lifetime withdrawals through the EWB value in payments that will last your entire life. The amount of the payments will be determined based upon the age when you start the lifetime income stream. Available for ages 60-90.
Option 3 gives you traditional annuitization payments that are based on your accumulation value, which does not include the EWB bonus or enhanced interest reflected in your EWB value. As long as you keep your contract for at least five years, you can choose one of the following payout options:
- Interest only
- Installments for a guaranteed period
- Installments for life
- Installments for life with a guaranteed period
- Installments for a selected amount
- Joint and survivor
The payout rate used to determine your annuity payments depends on the age of your contract and the payout option selected. The interest rate in payout is guaranteed to be at least 1%.
Your beneficiary can receive the full accumulation value as lump sum, or the Enhanced Withdrawal Benefit value if taken as annuity payment over a period of at least 5 years.
Talk to your financial professional to see if Allianz Endurance Plus 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?