[Narrator] Question: How can I protect the money I'm counting on for my retirement? Allianz answers.
It's true, your company 401k plan, a personal IRA, or other personal savings are some of the most important assets you own because this money will help provide you with retirement income and the greater you can grow these assets the more likely it is you'll be able to afford the retirement you want. But, giving your assets the potential to grow also means exposing them to the potential for loss.
So, is there a way to have both growth potential and a level of protection? Well, let's look at some of the other important things in your life and how you protect them. Your car needs protection from the high cost of collision repair – that's why you own auto insurance. Your home and your possessions need protection from losses due to theft or fire – that's why people own homeowners or renters insurance. And then there's your health. Considering the high cost of emergency care and major medical treatments – that's why you own health insurance.
In each of these cases, you're transferring away some of you risk of loss to an insurance company. So, what about your retirement assets? In recent years, you've seen how their value can be at risk for market volatility and the closer any deep drops are to when you want to retire, the less time you'll have to rebuild those losses before you begin withdrawing your money.
But market risk isn't the only challenge to consider. There's also the risk of outliving your retirement assets or dying prematurely before you've had time to grow assets you can pass on to your loved ones. So, to help you achieve your financial goals, one solution may be to protect some of your assets the same way you protect your home, your car, and your health, by transferring away some of the risk of financial loss to an insurance company.
A fixed index annuity is an insurance product that offers the potential to build your money with protection from market downturns plus income payments during retirement and tax deferral and a death benefit during the accumulation years.
[On-screen disclosure] Any distributions are subject to ordinary income tax and, if taken prior to age 59½, a 10% federal additional tax. [End of on-screen disclosure]
There's also fixed index universal life insurance. Its primary purpose is financial protection for your loved ones through its death benefit. But it's cash value can also accumulate with a level of protection from market downturns, and you can access any available cash value to supplement your retirement income or other financial needs by using policy loans and withdrawals.
[On-screen disclosure] Policy loans and withdrawals will reduce the available cash value and death benefit and may cause unintended consequences including lapse or taxable events. Please see the full loan and withdrawal disclosure within this material for details. [End of on-screen disclosure]
You insure your car, you insure your home, you insure your health and now you can transfer some of the risk away from your retirement assets, too.
For help in protecting your retirement assets, contact your financial professional. You can also find out more about annuities and life insurance at allianzlife.com.
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Allianz Life Insurance Company of North America (Allianz)
For complete information about fixed index annuities or fixed index universal life insurance, ask your financial professional for a contract or Statement of Understanding or illustration that outlines the risks, fees, and expenses, as well as other information.
Annuities are designed to meet long-term needs for retirement income. They provide tax-deferred growth potential, the reassurance of a death benefit for beneficiaries during the accumulation phase, and a guaranteed stream of income at retirement.
Any transaction that involved a recommendation to liquidate a securities product, including those within an IRA, 401(k), or other retirement plan for the purchase of an annuity or for other similar purposes, can be conducted only by individuals currently affiliated with a properly registered broker/dealer or registered investment adviser. If your financial professional does not hold the appropriate registration, please consult with your own broker/dealer representative or investment adviser representative for guidance on your securities holdings.
Withdrawals or partial surrenders from your annuity may be subject to a surrender or withdrawal charge. Distributions are also subject to ordinary income tax and, if taken before 59½, a 10% federal additional tax may apply.
FIUL policies include surrender charges or other early withdrawal penalties, which may result in a loss of principal if you surrender your product prematurely.
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.
Please note that Allianz Life Insurance Company of North America (Allianz), its affiliated companies, and their representatives and employees do not give legal or tax advice. 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 the issuing company.
With the purchase of any additional-cost riders, values will be reduced by the cost of the rider. This may result in a loss of principal and interest (or gains) in any year in which the contract does not earn interest or earns interest in an amount less than the rider charge. Certain product fees and charges also will reduce values.
Products are issued by Allianz Life Insurance Company of North America, 5701 Golden Hills Drive, Minneapolis, MN 55416-1297. www.allianzlife.com
Only Allianz Life Insurance Company of New York is authorized to offer annuities and life insurance in the state of New York.
Product and feature availability may vary by state and broker/dealer.
USA-1976-N (12/2019)
• 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
Brought to you by:
Allianz Life Insurance Company of North America
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