What steps can I take today to seek advantages in future tax environments?

[Narrator] Question: How can I take steps today to seek advantages in future tax environments? Allianz Answers.

National debt is rising in America. And, in time, you may expect your income taxes to rise too. Given the potential impact that could have on your accessible assets, it's wise to seek products with tax advantages that can help provide financial flexibility now and in the future.

One way to gain flexibility is through tax diversification. When you mix a variety of three basic tax categories using various financial vehicles within your financial portfolio.

Income-taxable vehicles may include a checking or savings account, stocks, bonds, or mutual funds.

[On-screen disclosure] Interest, dividends, and/or capital gains may be taxable each year. [End of on-screen disclosure]

Income-tax-deferred vehicles may include traditional IRAs, pensions, or nonqualified annuities.

[On-screen disclosure] Earnings grow tax-deferred each year. [End of on-screen disclosure]

And income-tax-free may include a Roth IRA or Roth 401K.

[On-screen disclosure] Earnings may be income-tax-free when certain requirements are met. [End of on-screen disclosure]

But what can make an income-tax diversified strategy worth considering? For one thing, it can help you manage your taxable income in retirement. For another, you could discover flexibility in other financial vehicles that you may have overlooked, like cash-value life insurance.

One such vehicle is fixed index universal life insurance, or FIUL. FIUL can provide valuable death benefit protection for your beneficiaries as well as the opportunity for additional benefits that can complement a tax-diversification strategy. FIUL also offers a combination of three tax advantages:

A death benefit that is generally income-tax-free. Tax-deferred cash value accumulation potential. And the opportunity for income-tax-free loans and withdrawals from any available cash value accumulation, which you can use for a variety of purposes, such as helping to supplement your sources of income and retirement.

[On-screen disclosure] Policy loans and withdrawals will reduce the available cash value and death benefit and may cause the policy to lapse, or affect guarantees against lapse. Withdrawals in excess of premiums paid will be subject to ordinary income tax. Additional premium payments may be required to keep the policy in force. In the event of a lapse, outstanding policy loans in excess of unrecovered cost basis will be subject to ordinary income tax. If a policy is a modified endowment contract (MEC), policy loans and withdrawals will be taxable as ordinary income to the extent there are earnings in the policy. If any of these features are exercised prior to age 59½ on a MEC, a 10% federal additional tax may be imposed. Tax laws are subject to change and you should consult a tax professional. [End of on-screen disclosure]

FIUL can help add financial flexibility during your retirement too. Because, you can choose to access more or less from your policy based on the tax environment and your retirement income sources. For instance, you may decide to access more from non-taxable sources such as your FIUL policy if you are in a higher tax rate environment in retirement than when you were paying premium into your policy. Conversely, if you are in a lower tax rate environment in retirement than when you were paying into your policy, you could access less from the FIUL policy and more from sources that provide taxable income, like a traditional IRA or 401(k). Keep in mind that how you fund your policy and other factors may affect how the loans and withdrawals are taxed.

[On-screen disclosure] FIUL does not provide a source of guaranteed income in retirement. Your policy must have sufficient cash value available, and you should monitor your policy values carefully to ensure against the policy lapsing. [End of on-screen disclosure]

FIUL insurance could be a good choice to help diversify your retirement strategy and potentially benefit you in retirement in any environment.

For more information about FIUL insurance, download our Understanding Fixed-Index Universal Life Insurance brochure. Talk to your financial professional and tax advisor to find out more about how FIUL can provide tax advantages for today and tomorrow.

[On-screen disclosures]

This content is for general educational purposes only. It is not intended to provide fiduciary, tax, or legal advice and cannot be used to avoid tax penalties; nor is it intended to market, promote, or recommend any tax plan or arrangement. Allianz Life Insurance Company of North America, its affiliates, and their employees and representatives do not give legal or tax advice. Customers are encouraged to consult with their own legal, tax, and financial professionals for specific advice or product recommendations.

Policy loans and withdrawals will reduce the available cash value and death benefit and may cause the policy to lapse, or affect guarantees against lapse. Withdrawals in excess of premiums paid will be subject to ordinary income tax. Additional premium payments may be required to keep the policy in force. In the event of a lapse, outstanding policy loans in excess of unrecovered cost basis will be subject to ordinary income tax. If a policy is a modified endowment contract (MEC), policy loans and withdrawals will be taxable as ordinary income to the extent there are earnings in the policy. If any of these features are exercised prior to age 59½ on a MEC, 10% federal additional tax may be imposed. Tax laws are subject to change and you should consult a tax professional.

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

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

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

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Allianz Life Insurance Company of North America

[End of on-screen disclosures]