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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 choice between two death benefits (one optional, for an additional fee) during the accumulation phase, three variable options, and multiple 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 multiple index strategies. Each index option is the combination of a crediting method, also called 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 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 If you take a partial withdrawal during an index year, the withdrawn amount will not receive a performance credit on the next Index Anniversary.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. Buffers cannot change for a contract after they are established.

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, contract maintenance charges and, if applicable, the rider fee 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 PRECISION Strategy is a crediting method that provides a level of protection for your principal, while maintaining the opportunity for predetermined upside performance potential.

If the annual index return is zero or positive, which means the value of the index remained the same or increased, you’ll receive an annual performance credit equal to the Precision Rate. If you take a partial withdrawal during an index year, the withdrawal amount will not receive a performance credit on the next 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. Buffers cannot change for a contract after they are established.

Precision Rates are 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. Precision Rates are subject to significant change annually on the Index Anniversary, and will never be less than 1.50%. Precision Rates 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. Precision Rates and buffers can also be different for each index. Deductions for the annual product fee of 1.25%, withdrawal charges, contract maintenance charges and, if applicable, the rider fee may result in a loss of principal or previously earned performance credits, and will not receive a performance credit on the next Index Anniversary.

Availability restrictions may apply to in-force contracts. Please refer to the prospectus for additional details.

The Index PROTECTION Strategy1 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 zero or positive, which means the value of the index remained the same or increased, 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. DPSCs are 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 zero, nothing is credited.

Keep in mind that the amount of the DPSCs are subject to significant change annually on the Index Anniversary and will never be less than 1.50%. DPSCs 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. Deduction of the annual product fee of 1.25%, withdrawal charge, contract maintenance charges, and if applicable, the rider fee may result in a loss of principal or previously earned DPSCs, and will not receive a DPSC on the next Index Anniversary.

The Index GUARD Strategy 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. Floors for a contract cannot change after they are established.

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, contract maintenance charges and, if applicable, the rider fee 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, Precision Rates, buffers, floors, and DPSCs, 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, Index Guard Strategy, Index Precision Strategy, and Index Protection Strategy include:
S&P 500® Index
Russell 2000® Index
Nasdaq-100® Index
EURO STOXX 50®

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. Availability restrictions may apply to in-force contracts. Please refer to the prospectus for additional details.

Variable options available:
AZL® Government Money Market Fund5,6,7
AZL® MVP Balanced Index Strategy Fund6,7,8
AZL® MVP Growth Index Strategy Fund6,7,8

Annual operating expense of variable options are:

  • Minimum 0.67%
  • Maximum 0.87%

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 four 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

Death benefit

You can choose between two death benefit options both available only during the accumulation phase upon the first death of an owner named at issue. The Traditional Death Benefit is the greater of the contract value or total purchase payments, adjusted for withdrawals. The Maximum Anniversary Value Death Benefit (available for an additional 0.20% rider fee issued between ages 0-75) is the greater of contract value or Maximum Anniversary Value (highest contract value on any Index Anniversary prior to age 91 adjusted for subsequent purchase payments and withdrawals). Changing ownership on the contract can reduce or eliminate these death benefits.

1The Index Protection Strategy is not currently available to contracts issued in Missouri or Washington.

2Purchase payments can only be allocated to the index options on the Index Effective Date and subsequent Index Anniversaries.

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.

5You 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.

6The 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.

7This 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.

8This 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. 

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 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?

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.

The S&P® Index is comprised of 500 stocks representing major U.S. industrial sectors.

S&P® is a registered trademark of Standard & Poor’s Financial Services LLC (“S&P”). This trademark has been licensed for use by S&P Dow Jones Indices LLC and its affiliates. S&P® and S&P 500® are trademarks of S&P. These trademarks have been sublicensed for certain purposes by Allianz Life Insurance Company of North America (“Allianz”). The S&P 500 is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by Allianz. Allianz products are not sponsored, endorsed, sold, or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, or their respective affiliates and neither S&P Dow Jones Indices LLC, Dow Jones, S&P, or their respective affiliates make any representation regarding the advisability of investing in such product..

Allianz products are not sponsored, endorsed, sold, or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, or any of their respective affiliates (collectively, “S&P Dow Jones Indices”). S&P Dow Jones Indices make no representation or warranty, express or implied, to the owners of the Allianz products or any member of the public regarding the advisability of investments generally or in Allianz products particularly or the ability of the Index to track general market performance. S&P Dow Jones Indices’ only relationship to Allianz with respect to the Index is the licensing of the Index and certain trademarks, service marks, and/or trade names of S&P Dow Jones Indices and/or its third-party licensors. The Index is determined, composed, and calculated by S&P Dow Jones Indices without regard to Allianz or the products. S&P Dow Jones Indices have no obligation to take the needs of Allianz or the owners of the products into consideration in determining, composing, or calculating the Index. S&P Dow Jones Indices are not responsible for and have not participated in the design, development, pricing, and operation of the products, including the calculation of any interest payments or any other values credited to the products. S&P Dow Jones Indices have no obligation or liability in connection with the administration, marketing, or trading of products. There is no assurance that investment products based on the Index will accurately track index performance or provide positive investment returns. S&P Dow Jones Indices LLC and its subsidiaries are not investment advisors. Inclusion of a security or futures contract within an index is not a recommendation by S&P Dow Jones Indices to buy, sell, or hold such security or futures contract, nor is it considered to be investment advice. Notwithstanding the foregoing, CME Group Inc. and its affiliates may independently issue and/or sponsor financial products unrelated to products currently being issued by Allianz, but which may be similar to and competitive with Allianz products. In addition, CME Group Inc., an indirect minority owner of S&P Dow Jones Indices LLC, and its affiliates may trade financial products which are linked to the performance of the Index. It is possible that this trading activity will affect the value of the products.

S&P DOW JONES INDICES DO NOT GUARANTEE THE ADEQUACY, ACCURACY, TIMELINESS, AND/OR THE COMPLETENESS OF THE INDEX OR ANY DATA RELATED THERETO OR ANY COMMUNICATION, INCLUDING BUT NOT LIMITED TO, ORAL OR WRITTEN COMMUNICATION (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT THERETO. S&P DOW JONES INDICES SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS, OR DELAYS THEREIN. S&P DOW JONES INDICES MAKE NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIM ALL WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE OR AS TO RESULTS TO BE OBTAINED BY ALLIANZ, OWNERS OF THE PRODUCTS, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE INDEX OR WITH RESPECT TO ANY DATA RELATED THERETO. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL S&P DOW JONES INDICES BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME, OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE. THERE ARE NO THIRD-PARTY BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN S&P DOW JONES INDICES AND ALLIANZ OTHER THAN THE LICENSORS OF S&P DOW JONES INDICES.

The Russell 2000® Index is an equity index that measures the performance of the 2,000 smallest companies in the Russell 3000® Index, which is made up of 3,000 of the biggest U.S. stocks. The Russell 2000® Index is constructed to provide a comprehensive and unbiased small-cap barometer and is completely reconstituted annually to ensure larger stocks do not affect the performance and characteristics of the true small-cap index.

The Russell 2000® Index (the “Index”) is a trademark of Frank Russell Company (“Russell”) and has been licensed for use by Allianz Life Insurance Company of North America (“Allianz”). Allianz products are not in any way sponsored, endorsed, sold or promoted by Russell or the London Stock Exchange Group companies (“LSEG”) (together the “Licensor Parties”) and none of the Licensor Parties make any claim, prediction, warranty or representation whatsoever, expressly or impliedly, either as to (i) the results to be obtained from the use of the Index (upon which the Allianz product is based), (ii) the figure at which the Index is said to stand at any particular time on any particular day or otherwise, or (iii) the suitability of the Index for the purpose to which it is being put in connection with the Allianz product. None of the Licensor Parties have provided or will provide any financial or investment advice or recommendation in relation to the Index to Allianz or to its clients. The Index is calculated by Russell or its agent. None of the Licensor Parties shall be (a) liable (whether in negligence or otherwise) to any person for any error in the Index or (b) under any obligation to advise any person of any error therein.

The Nasdaq-100 Index® includes 100 of the largest domestic and international non-financial securities listed on The NASDAQ Stock Market® based on market capitalization.

NASDAQ®, and Nasdaq-100 Index®, are registered trademarks of Nasdaq, Inc. (which with its affiliates is referred to as the “Corporations”) and are licensed for use by Allianz Life Insurance Company of North America. The Product(s) have not been passed on by the Corporations as to their legality or suitability. The Product(s) are not issued, endorsed, sold, or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE PRODUCT(S).

The EURO STOXX 50®, Europe's leading Blue-chip index for the Eurozone, provides a blue-chip representation of supersector leaders in the Eurozone. The index covers 50 stocks from 11 Eurozone countries: Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain.

The EURO STOXX 50® is the intellectual property (including registered trademarks) of STOXX Limited, Zurich, Switzerland (“STOXX”), Deutsche Börse Group or their licensors, which is used under license. Allianz products are neither sponsored nor promoted, distributed or in any other manner supported by STOXX, Deutsche Börse Group or their licensors, research partners or data providers and STOXX, Deutsche Börse Group and their licensors, research partners or data providers do not give any warranty, and exclude any liability (whether in negligence or otherwise) with respect thereto generally or specifically in relation to any errors, omissions or interruptions in the EURO STOXX 50 or its data.

• 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, 5701 Golden Hills Drive, Minneapolis, MN  55416-1297 and are distributed by its affiliate, Allianz Life Financial Services, LLC, member FINRA, 5701 Golden Hills Drive, Minneapolis, MN 55416-1297. (L40538)

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

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