Index variable annuities

An index variable annuity may be a good choice if you're willing to take on some level of risk with the opportunity to grow your assets. It's a way to participate in market gains – with a level of protection against market drops.


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Index variable annuities can offer:

  • Performance potential through variable options and/or index options
  • A level of protection through index strategies
  • Tax-deferred growth
  • Income options
  • Death benefit options

How do index variable annuities work?

Index variable annuities are designed to help you accumulate assets for retirement and provide some protection for a portion of your retirement assets.

1. Customize your investment

You give the insurance company money in one or more payments. Some index variable annuities let you customize your annuity contract based on your individual accumulation objectives and risk tolerance – by choosing from traditional variable options and index options.

2. Accumulation phase

Your contract's value may increase - or decrease - depending on the performance of the investments you choose. Index variable annuities allow you to trade some potential gains from market growth in exchange for a level of protection from down markets.

3. Tax-deferred growth

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.

4. Distribution phase

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.

Annuities are complex products that include many features and factors. It is important to understand the balance between all features available with any annuity. You should consult with a financial professional to determine if an annuity is appropriate for your needs.

Need help finding a financial professional?

Allianz knows indexed solutions.

At Allianz, we have developed a tradition of market leadership in index-based solutions. In fact, we were among the first insurance companies to offer index strategies within fixed annuities and universal life insurance.

In addition, Allianz is one of the few insurance companies that can leverage the power of in-house hedging, which we’ve done since 1996. Hedging is the use of strategic investments to reduce risk. It allows us to deliver benefits to you – such as competitive caps and rates – in a cost-effective manner.

Our conservative investment management approach is designed to weather all market conditions and achieve long-term gains. With disciplined risk management strategies, we’re better able to keep the promises we make to our customers.

Why Allianz

Check the background of Allianz Life Financial Services, LLC on FINRA's BrokerCheck.

Investing in a variable annuity may be the answer for part of your overall retirement strategy. A variable annuity offers a unique combination of features, including market participation through a variety of investment options; tax-deferred growth opportunities; and optional protection benefits that can provide certain accumulation, income, and beneficiary guarantees for an additional cost. Please note that we no longer offer any variable life insurance products.

Variable annuities are subject to investment risk, including loss of principal, and contract values fluctuate daily. Investment returns and principal value will fluctuate with market conditions so that units, upon distribution, may be worth more or less than the original cost.

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.

Withdrawals will reduce the contract value and the value of any protection benefits. Withdrawals taken within the contract withdrawal charge schedule will be subject to a withdrawal charge. All withdrawals are subject to ordinary income tax and, if taken prior to age 59½, may be subject to a 10% federal additional tax.

For more complete information about variable annuities and variable options, call your financial professional or Allianz Life Financial Services, LLC at 800.624.0197 for a prospectus. The prospectuses contain details on investment objectives, risks, fees, and expenses, as well as other information about the variable annuity and variable options, which you should carefully consider. Please read the prospectuses thoroughly before sending money.

Guarantees are backed by the financial strength and claims-paying ability of the issuing company. Variable annuity guarantees do not apply to the performance of the variable subaccounts, which will fluctuate with market conditions.

• 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

In the state of New York, only Allianz Life Insurance Company of New York is authorized to offer annuities and life insurance.

Products are issued by Allianz Life Insurance Company of North America, 5701 Golden Hills Drive, Minneapolis, MN 55416-1297. In New York, products are issued by Allianz Life Insurance Company of New York, 28 Liberty Street, 38th Floor, New York, NY 10005-1422, and are distributed by their affiliate, Allianz Life Financial Services, LLC, member FINRA, 5701 Golden Hills Drive, Minneapolis, MN 55416-1297. (L40538, L40538-NF)

Product and feature availability may vary by state and broker/dealer.

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