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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 three innovative index strategies to help meet your needs.

Contract options

The Allianz Index Advantage Variable Annuity provides a combination of traditional variable options along with the three index strategies. Each index option is the combination of a crediting method, also called 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 potential for higher performance with a level of protection from smaller index losses. This may be a good option if you are looking for a level of protection for your principal, while maintaining the potential for growth opportunities. This is accomplished by applying a performance credit based on the index return.

If the annual index return is positive, you’ll receive an annual performance credit equal to that return, up to a limit called the cap. If you take a partial withdrawal during an index year, the withdrawn amount will not receive a performance credit on the next Index Anniversary.

If the annual index return is negative, you may receive an annual negative performance credit – but only when the loss is greater than a specified percentage called the buffer. This helps provide a level of protection by absorbing the first 10% of negative index return in any given year. Losses in excess of 10% will reduce your contract value. The buffer is declared on the issue date and will never change after we issue your contract. The buffer will never be less than 5%.

The initial cap is declared on the Index Effective Date, which is the first date your money has the opportunity to be allocated to an index option and on each Index Anniversary thereafter. The cap is subject to significant change annually on the Index Anniversary, and will never be less than 1.50%. Caps can be different between newly issued contracts and in-force contracts, and they can be different between in-force contracts issued on different days and in different years. Caps and buffers can also be different for each index. Deductions for the annual product fee of 1.25%, withdrawal charge, and contract maintenance charges may result in a loss of principal or previously earned performance credits, and will not receive a performance credit on the next Index Anniversary.

The Index PROTECTION Strategy is a crediting method that offers principal protection with the potential for some growth.

The Index PROTECTION Strategy offers consistency. Only two outcomes are possible each Index Anniversary:

If the annual index return is flat or positive, you’ll receive the Declared Protection Strategy Credit (DPSC), which is the amount of potential annual return that may be credited in any given year, no more and no less. The DPSC is declared on the Index Effective Date, which is the first date your money has the opportunity to be allocated to an index option, and on each Index Anniversary thereafter and is locked in for that index year.

If the annual index return is negative, nothing is credited. Keep in mind that the amount of the DPSC is subject to significant change annually on the Index Anniversary and will never be less than 1.50%. The DPSC can be different between newly issued contracts and in-force contracts, and it can be different between in-force contracts issued on different days and in different years. Deduction of the annual product fee of 1.25%, withdrawal charge, and contract maintenance charges may result in a loss of principal or previously earned DPSCs, and will not receive a DPSC on the next Index Anniversary.

The Index Protection Strategy is not currently available to new contracts in Delaware, Missouri, and Washington.

The Index GUARD Strategy1 is a crediting method that may be a good option if you are looking for a level of protection from more severe index losses while maintaining the potential for higher performance.

If the annual index return is positive, you’ll receive an annual performance credit equal to that return, up to a limit called the cap. If you take a partial withdrawal during an index year, the withdrawn amount will not receive a performance credit on the next Index Anniversary.

If the annual index return is negative, you will receive a negative performance credit, but the negative performance credit will never be less than a specified percentage called the floor. This floor helps provide a level of protection by limiting any negative index return to no less than -10%. Negative index returns beyond the -10% floor will not reduce your contract value. The floor will never change after we issue your contract. The minimum floor is -25%.

The cap is declared on the Index Effective Date, the first date your money has the opportunity to be allocated to an index option and on each Index Anniversary thereafter. The cap is subject to significant change annually on the Index Anniversary, and will never be less than 1.50%. Caps can be different between newly issued contracts and in-force contracts, and they can be different between in-force contracts issued on different days and in different years. Caps and floors can also be different for each index. Deductions for the annual product fee of 1.25%, withdrawal charge, and contract maintenance charges may result in a loss of principal or previously earned performance credits, and will not receive a performance credit on the next Index Anniversary.

Issue age and minimum

You must 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. Minimum subsequent purchase payment is $502,3,4 and maximum purchase payment is $1,000,000.

Rates

For more information on current caps, buffer, floor, and DPSC, please consult your financial professional or click on the link below.

Allocation options

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 and Index Guard Strategy5 include:
S&P 500® Index
Russell 2000® Index
Nasdaq-100® Index
EURO STOXX 50®5

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 is:
S&P 500® Index

Variable options available:
AZL® Government Money Market Fund6
AZL® MVP Balanced Index Strategy Fund7,8
AZL® MVP Growth Index Strategy Fund7,8

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.

Payout options

You have several options for your annuity payout:

  • life
  • 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

Death 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 contract can reduce or eliminate these death benefits.

1The AZL investment options are managed by an affiliate of Allianz Life Insurance Company of North America and Allianz Life Financial Services, LLC. All are affiliated companies. 

2Additional purchase payments can only be allocated to the index options on the Index Anniversary.

3Allianz Life Insurance Company of North America (Allianz) reserves the right to decline additional purchase payments at any time on a nondiscriminatory basis.

4Additional purchase payments allocated to an index option between Index Anniversaries will be placed in the AZL® Government Money Market Fund until the next Index Anniversary. At the Index Anniversary we will transfer those allocations in the AZL Government Money Market Fund to the applicable index option.

5The Index Guard Strategy and EURO STOXX 50® is not available to in-force contracts issued before August 24, 2015.

6You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.

7The AZL investment options are managed by an affiliate of Allianz Life Insurance Company of North America and Allianz Life Financial Services, LLC. All are affiliated companies.

This 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.

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.

8Manager 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 minimizing its 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 strategy or 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%.


Next steps:

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:

  1. Are the annuity income or purchase payments protected?
  2. How can this product fit into my overall portfolio?
  3. Are there guarantees available with this product?
  4. What else should I consider that might impact my retirement?

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