How MasterDex X® Annuity works
If you're concerned about saving for retirement – and also want flexible retirement income options, including income for life – MasterDex X Annuity may be a good choice.
While you're saving for retirement, MasterDex X gives you:
- a 4% bonus on premium payments received in the first three years (subject to a 10-year vesting schedule), and
- the potential for fixed or indexed interest based on positive changes in several market indexes from allocation options chosen.
And when you're ready to start receiving income, MasterDex X 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 money in your contract through a penalty-free lump-sum withdrawal after 10 years, and
- flexible income options – including traditional annuity payments or lifetime income withdrawals from the optional Simple Income III Rider, available at an additional cost.
Issue age and minimum
You must be between the ages of 0-80 in order to purchase MasterDex X Annuity.
The minimum initial premium payment is $20,000 for qualified and nonqualified money.
MasterDex X offers a 4% premium bonus and a choice of fixed interest and/or indexed interest options. The bonus will be credited on all premium received in the first three years. None of the bonus is vested during the first contract year. 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.
If you surrender the contract before the beginning of the 11th contract year, you will receive the amount of vested bonus as part of your cash surrender value.
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, EURO STOXX 50® Index
Annual point-to-point: S&P 500® Index, Select S&P 500® Index, Nasdaq-100® Index, EURO STOXX 50® Index, blended 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
If you are interested in lifetime income withdrawals, consider adding the optional Simple Income III Rider to your MasterDex X Annuity, available at an additional annual cost of 0.95% of your simple withdrawal value which is deducted monthly from the accumulation value and the guaranteed minimum value (in most states).
It offers simplicity, flexibility, predictability, and the opportunity for increasing income payments.
- It's simple because it credits a simple bonus to your simple withdrawal value at the end of each contract year until you begin income withdrawal payments or turn age 90. Consult your Allianz financial professional for current simple bonus rate.
- It's also flexible because when you are ready to start your lifetime income withdrawal payments, you can choose from three payout options:
- Income option 1: With this option, you'll have the predictability of knowing exactly how much each payment will be.
- Income option 2: With this option, your income payments will start lower but have the potential to increase each year that your contract earns fixed or indexed interest.
- Income option 3: With this option, your income payments can increase up to 10% per year based on changes in the Consumer Price Index (CPI-U) for a period of 20 contract years after you begin income withdrawal payments.
Keep in mind that if you take immediate income, the contract won't benefit from the simple bonus each year. Once lifetime income withdrawals begin, free withdrawals can no longer be taken.
Access your money
After the first contract year you can take penalty-free withdrawals. In each contract year you can take up to 10% of your contract's paid premium in one or more free withdrawals. There will be no surrender charge applied, and no reduction to your unvested bonus as long as the money is withdrawn after the contract anniversary following your most recent premium payment. However, if you fully surrender your contract or add premium within the same contract year of a free withdrawal, a surrender charge will be assessed and an unvested bonus reduction will be made.
You can receive your annuity's full accumulation value at any time after 10 contract years. If you take out all of your contract's value before the beginning of the 11th contract year, the value you will receive is equal to the accumulation value, less unvested bonus, less surrender charges.
A surrender charge will also apply if you annuitize prior to the sixth contract year or if the annuity payments are taken over a period of fewer than 10 years. This could result in loss of interest and bonus, and a partial loss of principal. You could receive less than the amount of premium you put into the contract. However, the cash surrender value will never be less than the guaranteed minimum value as described in your contract.
The surrender charge percentage starts at 10% for the first three contract years and then, beginning on the fourth contract anniversary, decreases by 1.25% on each contract anniversary until the 11th contract anniversary, when the surrender charge will equal 0%.
Annuity payments, which are the payments we pay you over a period of time, are based on your accumulation value, and a variety of payout options are available from interest only to installments for life.
If you keep your contract for at least 10 years, you can choose to receive the full accumulation value, including the vested bonus, in a lump sum.
Or, if you prefer, after five years you can annuitize the full accumulation value, including the vested bonus, over a period of at least 10 years.
After the first contract year, you can also choose to annuitize the accumulation value, which does not include the bonus, over a period of 10 to 30 years via the Flexible Annuity Option Rider.
At higher ages, you may be able to take these payments over a period of fewer than 10 years.
Before annuitization, the contract's accumulation value is available as a lump sum or as annuity income payments over at least five years.
Talk to your financial professional to see if MasterDex X 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 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.
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. (C52575, R91077-01)
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.