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Diversify allocation options to help smooth volatility


Diversification is an important strategy in a fixed index universal life (FIUL) insurance policy

An FIUL policy from Allianz Life Insurance Company of North America (Allianz) starts with a death benefit that is generally income-tax-free to beneficiaries. But it also provides your clients the opportunity to build accumulation value based on positive changes in external market indexes.

However, different index allocation options react differently depending on the economic environment.

Because it’s impossible to predict future market environments and which index allocation option (or fixed allocation) could provide the best result in a given year, having multiple allocation options can help your clients seek more consistent results.

Diversification can help reduce risk, smooth out volatility, and potentially help clients avoid receiving a zero interest credit from their index allocations.

Diversification can work – the proof is in the numbers


Average interest earned on policies with 2+ allocations


Average likelihood of receiving a zero interest credit with 2+ allocations

Results are based on 11,847 Allianz Life Pro+® Advantage Fixed Index Universal Life Insurance Policies issued from August 2019 – December 2020. Past results are not a guarantee of future results.

What allocation options may be suitable for your client?

Each allocation includes choices on indexes, crediting method, and bonus opportunities (although not all combinations are available in every area). With the variety of allocation options we offer, it can be tough to know what may be suitable for your client’s situation.

Use the following resources to help educate your clients on the potential benefits of diversification and how to choose allocation options.


Allocation Insights Tool

Use the tool below to help determine which allocation options your clients may want to consider based on answers about how markets, volatility, and interest rates will react over the next year.

Allianz FIUL policies also offer these options for added flexibility

Index Lock and Auto Lock
You can lock in a positive index credit anytime once during a crediting period.
Money ExchangeMoney Exchange
Reallocation option
You can reallocate to different indexes every new crediting period.
Volatility-controlled indexes
These index allocations are designed to help stabilize risk and volatility through a balanced approach.

Start creating a diversified FIUL strategy

Contact the Life Case Design Team at 800.950.7372 for additional help in talking to your clients about the potential benefits of a diversified approach.

Bonused products may include higher surrender charges, longer surrender periods, lower caps, or other restrictions that are not included in similar products that don’t offer a bonus. The index allocations that offer the interest bonus will generally have lower caps and participation rates. Not all bonuses guarantee that a policy will be credited with an interest bonus every year as some are based on the growth of an index.

Diversifying within an FIUL does not ensure that a policy will be credited with interest in any given year.

FIUL requires qualification through health and financial underwriting.

Although an external index may affect the interest credited, the policy does not directly participate in any equity or fixed income investments. Your clients are not buying shares in an index.

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

Guarantees are backed by the financial strength and claims-paying ability of Allianz Life Insurance Company of North America.

Product P64339 is issued by Allianz Life Insurance Company of North America, 5701 Golden Hills Drive, Minneapolis, MN 55416-1297. 800.950.1962.