The Allianz Index Advantage Variable Annuity offers a different risk/return consideration from traditional accumulation products and is designed to complement your portfolio. It includes a death benefit during the accumulation phase, three variable options, and two innovative index strategies to help meet your needs.
The Allianz Index Advantage Variable Annuity provides a combination of traditional variable options along with the two index strategies. Each index option is the combination of an index strategy and the index. An allocation to the index options is not a purchase of shares of any stock or index fund or a direct investment in an index. No single index option consistently delivers the most return under all market conditions. Transfers to any index options are allowed every Index Anniversary. Transfers from index options to the variable options are allowed every sixth Index Anniversary.
Your contract has a 1.25% annual product fee calculated as a percentage of the charge base, which is the contract value on the preceding quarterly contract anniversary, adjusted for subsequent purchase payments and withdrawals. Refer to the product brochure for more information on definitions of terms.
The Index PERFORMANCE Strategy is a crediting method that provides upside potential with a level of downside protection. This may be a good option if you are willing to take on some level of risk with the opportunity to grow your assets.
This is accomplished by annually applying a Performance Credit equal to the index return, up to a limit called the cap, if the index return is positive. If you are taking a partial withdrawal during an index year, the withdrawn amount will not receive a Performance Credit on the next Index Anniversary. If the index return is negative, you may receive a negative Performance Credit, but only when the loss is greater than a specified percentage called the buffer.
The initial caps are determined on the Index Effective Date and they are subject to significant change annually on each Index Anniversary, and will never be less than 1.50%. The buffer will never change after we issue your contract. The minimum buffer is 5%. Caps can be different between newly issued contracts and inforce contracts, and they can be different between inforce contracts issued on different days and in different years. Caps can also be different between indices.
The Index PROTECTION Strategy is a crediting method that offers growth opportunities in positive years, but no market loss during negative years. That means you can protect what you've earned, while still having the potential for growth. When the index return is zero or positive, you receive the Declared Protection Strategy Credit (DPSC), which is the return that may be credited in any given year, no more and no less.
When the index return is negative, you do not receive the DPSC. However, your Index Option Value cannot lose principal due to negative index performance. Deduction of the withdrawal charge, product fee, and contract maintenance charge may result in loss of principal and credits, which is the annual return you may receive when you allocate money to an index option. The initial Declared Protection Strategy Credit is determined on the Index Effective Date and is subject to significant change annually on each Index Anniversary and will never be less than 1.50% for the life of the contract. The DPSC can be different between newly issued contracts and inforce contracts, and it can be different between inforce contracts issued and on different days and in different years.
Issue age and minimum
You should be between the ages of 0-80 in order to purchase Allianz Index Advantage Variable Annuity.
The minimum initial purchase payment is $10,000 for qualified and nonqualified contracts.
For more information on current caps, buffers, and DPSC, please consult your financial professional or click on the link below.
You’ll need to work with your financial professional to design an investment portfolio that aligns with your long-term retirement goals.
Indexes available with the Index Performance Strategy include:
S&P 500® Index
Russell 2000® Index
EURO STOXX 50®1
These unmanaged indexes are not intended to represent specific mutual funds. Individual results may vary according to transaction costs and taxes. Investors cannot invest directly in an index.
Indexes available with the Index Guard Strategy1 include:
S&P 500® Index
Russell 2000® Index
EURO STOXX 50®
Index available with the Index Protection Strategy is:
S&P 500® Index
Variable options available:
AZL® Money Market Fund*2
AZL® MVP Balanced Index Strategy Fund3
AZL® MVP Growth Index Strategy Fund3
Annual operating expense of variable options are:
- Minimum 0.65%
- Maximum 0.74%
Net expenses are before contract fee waivers and expense reimbursements.
Access your money
Your contract includes a six-year withdrawal charge schedule on each purchase payment. All withdrawals are subject to ordinary income tax and, if taken prior to age 59½, may be subject to a 10% federal additional tax.
Twelve charge-free transfers per year are allowed among variable options only ($25 thereafter). Transfers to index options are allowed on every Index Anniversary, which is the anniversary of the Index Effective Date (the first date your money had the opportunity to be allocated to any index option among the three index strategies and available indexes). Transfers from index options to the variable options are allowed every sixth Index Anniversary.
If you need access to your money, you can withdraw up to 10% of your purchase payments each contract year without a withdrawal charge. Any unused portion does not carry from one year to the next. On a full withdrawal, the free withdrawal privilege is not available and amounts previously withdrawn under the free withdrawal privilege may be subject to the withdrawal charge as described in the prospectus. All withdrawals are subject to ordinary income tax and, if taken prior to age 59½, may be subject to a 10% federal additional tax.
You have several options for your annuity payout:
- life with period certain
- joint and last survivor
- joint and last survivor with period certain
- refund life
Standard contract features
- Systematic withdrawals
- Required minimum distribution program
- Waiver of withdrawal charge benefit
Prior to receiving your entire contract value or annuitizing your contract, your beneficiaries will receive the greater of your contract value, or purchase payments adjusted for withdrawals upon the first death of an owner named at issue. Changing ownership on the contact can reduce or eliminate these death benefits.
1The EURO STOXX 50® is not available to in-force contracts issued before August 24, 2015.
2The AZL investment options are managed by an affiliate of Allianz Life Insurance Company of New York and Allianz Life Financial Services, LLC. All are affiliated companies.
This investment option invests in derivative instruments such as futures, options, and swap agreements. Derivatives can increase the investment option’s share price volatility and could magnify losses. Certain derivative instruments also involve costs that could reduce returns. Certain derivatives may involve risk of default.
3This investment option is subadvised. The subadvisor may have a public mutual fund with an investment objective that is similar to that of this investment option. These are separate portfolios that will have different performance due to differing fees, expenses, relative cash flows, portfolio sizes, and other factors.
Manager Allocation Risk: The risk refers to the possibility that the manager could allocate assets in a manner that will cause the funds to underperform other funds with similar investment objectives. The manager may have a potential conflict of interest in allocating assets among and between the permitted underlying funds because the subadvisory fee rate it pays to the subadvisors of the permitted underlying funds is different.
Generally under normal conditions, 5% (up to 20%) of the investment option is invested in the MVP risk management overlay. When overall market volatility is generally moderate or low, the MVP risk management process will look to participate with the market using derivatives equal to the risk of the investment options and minimizes it protection aspect. During periods of higher market volatility, the MVP risk management process will seek to reduce volatility using derivatives with the goal to minimize extreme negative outcomes. Derivatives are contracts used as underlying assets and play an important role in hedging risk. They limit the need to buy or sell assets within the underlying funds in periods of volatility. They also include the risks related to futures and options, which may be different from and greater than the risks of direct investments in securities or other traditional investments. The MVP process does not ensure a profit or protect against losses. Success of the hedging strategyor fund objectives cannot be guaranteed.
Each AZL® MVP fund utilizes the MVP risk management process, which could cause the equity exposure of the funds to fluctuate, but equity exposure will generally not be lower than 10%.
Talk to your registered representative to see if Allianz Index Advantage Variable Annuity is appropriate for you. Here are some questions they can help answer:
- Are the annuity income or purchase payments protected?
- How can this product fit into my overall portfolio?
- Are there guarantees available with this product?
- What else should I consider that might impact my retirement?