How Allianz Endurance® Plus Annuity works
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 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 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 allocations,
- a fixed interest allocation for steady, predictable interest, and
- enhanced interest credited to the EWB value when your selected allocations earn 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 through a surrender penalty-free, lump-sum withdrawal after 10 years (not including the premium bonus), and
- the option for 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 fully surrendered or if traditional annuitization payments are taken. If it is partially surrendered the EWB value will be reduced, which could result in a partial loss of bonus and enhanced interest. 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 between the ages of 0-80 in order to purchase Allianz Endurance Plus Annuity.
The minimum initial premium payment is $10,000 for qualified and nonqualified money. You can add a minimum 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, Select S&P 500® Index, Nasdaq-100® Index, FTSE 100 Index
Annual point-to-point: S&P 500® Index, Select 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?
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.
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 FTSE 100 Index comprises 100 of the most highly capitalized blue chip companies in the United Kingdom (UK), representing approximately 80% of the UK's market capitalization. FTSE 100 Index companies are all traded on the London Stock Exchange. The FTSE 100 is considered to be the most widely used UK stock market indicator. The FTSE 100 Index is one of several indexes in the FTSE UK Index Series. The UK Series is designed to represent the performance of UK companies, providing investors with a comprehensive and complementary set of indices that measure the performance of all capital and industry segments of the UK. “FTSE”, “FT-SE”, “Footsie”, “FTSE4Good”, and “techMARK” are trademarks jointly owned by the London Stock Exchange Plc and the Financial Times and are used by the FTSE International Limited (“FTSE”) under license. “All-World”, “All-Share”, and “All-Small” are trademarks of FTSE. The FTSE 100 is calculated by FTSE. FTSE does not sponsor, endorse, or promote this product and is not in any way connected to it and does not accept any liability in relation to its issue, operation, and trading.
The Barclays Capital U.S. Aggregate Bond Index is comprised of U.S. investment-grade, fixed-rate bond market securities, including government agency, corporate, and mortgage-backed securities.
Allianz products are not sponsored, endorsed, sold, or promoted by Barclays Capital. Barclays Capital makes no representation or warranty, express or implied, to the owners of Allianz products or any member of the public regarding the advisability of investing in securities generally or in Allianz products particularly or the ability of the Barclays Capital Indices, including without limitation, the Barclays Capital U.S. Aggregate Bond Index, to track general bond market performance. Barclays Capital's only relationship to Allianz Life Insurance Company of North America and its affiliates (“Allianz”) is the licensing of the Barclays Capital U.S. Aggregate Bond Index and Barclays US Dynamic Balance Index which are determined, composed and calculated by Barclays Capital without regard to Allianz or Allianz products. Barclays Capital has no obligation to take the needs of Allianz or the owners of Allianz products into consideration in determining, composing or calculating the Barclays Capital U.S. Aggregate Bond Index. Barclays Capital is not responsible for and has not participated in the determination of the timing of, prices at, or quantities of Allianz products to be issued or in the determination or calculation of the equation by which Allianz products are to be converted into cash. Barclays Capital has no obligation or liability in connection with the administration, marketing or trading of Allianz products.
BARCLAYS CAPITAL DOES NOT GUARANTEE THE QUALITY, ACCURACY AND/OR THE COMPLETENESS OF THE BARCLAYS CAPITAL INDICES, OR ANY DATA INCLUDED THEREIN, OR OTHERWISE OBTAINED BY ALLIANZ, OWNERS OF ALLIANZ PRODUCTS, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE BARCLAYS CAPITAL INDICES, INCLUDING WITHOUT LIMITATION, THE BARCLAYS CAPITAL U.S. AGGREGATE BOND INDEX, IN CONNECTION WITH THE RIGHTS LICENSED HEREUNDER OR FOR ANY OTHER USE. BARCLAYS CAPITAL MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND HEREBY EXPRESSLY DISCLAIMS ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE BARCLAYS CAPITAL INDICES, INCLUDING WITHOUT LIMITATION, THE BARCLAYS CAPITAL U.S. AGGREGATE BOND INDEX, OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL BARCLAYS CAPITAL HAVE ANY LIABILITY FOR ANY SPECIAL, PUNITIVE, INDIRECT, OR CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS), EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES.
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.
• 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. (C50915)
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.