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. 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 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 If you are taking a partial withdrawal during an index year, the withdrawn amount will not receive a Performance Credit on the next Index Anniversary.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 will change annually on each Index Anniversary, and will never be less than 1.50%. The buffer will never change after we issue your contract. Caps can be different between newly issued contracts and inforce contracts, and they can be different between inforce contracts issued in different years. Caps can also be different between indices.
The Index PROTECTION Strategy 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 (or if the return is zero), you receive the Declared Protection Strategy Credit, which is the amount of potential annual interest that may be credited in any given year, no more and no less.
When the index return is negative, nothing is credited. 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 (DPSC) is determined on the Index Effective Date and it will change annually on each Index Anniversary and will never be less than 1.50% for the life of the contract. DPSC can be different between newly issued contracts and inforce contracts, and they can be different between inforce contracts issued in different years.
Issue age and minimum
You must be age 80 or younger to purchase Allianz Index Advantage Variable Annuity.
The minimum initial purchase payment is $10,000 for qualified and nonqualified money.
For more information on current caps, buffers, and Declared Protection Strategy Credit, please consult your financial professional.
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
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.
Index available with the Index Protection Strategy include:
S&P 500® Index
Variable options available:
AZL® Money Market Fund
AZL® MVP Balanced Index Strategy Fund
AZL® MVP Growth Index Strategy Fund
Annual operating expense of variable options are:
- Minimum .66%
- Maximum .87%
Net expenses include contract fee waivers and expense reimbursements.
Access your money
Your contract includes a six-year withdrawal charge schedule on each purchase payment, 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). 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. 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
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.
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?