Fixed index annuities
Fixed index annuities provide the guarantees of fixed annuities, combined with the opportunity to earn interest based on changes in an external market index. But because you're not actually participating in the market, the money in your annuity (your "principal") is not at risk.
A fixed index annuity may be a good choice if you want the opportunity for accumulation, but don't want to risk losing money in the market.
Fixed index annuities can offer:
- Principal protection from market downturns
- Tax-deferred growth potential
- One or more index allocation options
- A choice of crediting methods
- Income options, including income for life
- Death benefit options
How do fixed index annuities work?
- You give the insurance company money in one or more payments.
- The insurance company then invests it on behalf of all annuity owners to support the benefits of the contract
- During the accumulation phase, your annuity will earn a fixed rate of interest that is guaranteed by the insurance company or an interest rate based on the growth of an external index.
- You defer paying taxes on your contract’s interest until you receive money from the contract. Tax-deferred interest means the money in your contract can grow faster.
- After a period of time specified by your contract, you may then receive the amount allowed by your contract in a lump sum, over a set period of time, or as income for the rest of your life. This is known as the distribution phase.
Allianz fixed index annuities:
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.
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.
With the purchase of any additional-cost riders, the contracts values will be reduced by the cost of the rider. This may result in a loss of principal and interest in any year in which the contract does not earn interest or earns interest in an amount less than the rider charge.
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.
• 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 55469-0060. (C54370, C52575, 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.