How Allianz Life Pro+ EliteSM Fixed Index Universal Life Insurance Policy works
Protect what’s important.
Allianz Life Pro+ Elite provides your beneficiaries with a death benefit that’s generally income-tax-free. The death benefit will help your family maintain their way of life when you pass away, help them keep a business going, or give a gift to a favorite charity.
Adapt your coverage for future needs.
Allianz Life Pro+ Elite is designed to provide affordable additional term coverage today that can be converted as your needs and lifestyle change in the future, when you add the Supplemental Term Rider* to your policy.
Build resources for the future.
Allianz Life Pro+ Elite offers the potential to accumulate cash value tax-deferred without losses due to market volatility† – with an interest bonus‡ (available on certain index allocation options) you can choose to help increase accumulation potential.
Flexible options to meet future financial needs
Allianz Life Pro+ Elite offers flexible choices that give you access to your cash value when you want – for what you want. Loans or withdrawals from any available cash value can be used to supplement a retirement or college funding strategy or other financial needs.§ Allianz Life Pro+ Elite also allows you to adjust your premium payments to fit your financial goals.
A resource for the unexpected
Allianz Life Pro+ Elite lets you accelerate a portion of the death benefit in the event of a chronic or terminal illness.
Issue age and minimum
You must be age 80 or younger to purchase Allianz Life Pro+ Elite.
The minimum initial premium payment is based on age, gender, risk class, death benefit, and riders, but is never less than $25/month or $300/year.
Available risk classes include:
- Nontobacco (ages 18-80): Preferred Plus, Preferred, Standard
- Tobacco (ages 18-75): Preferred Tobacco, Standard Tobacco
- Juvenile: (ages 0-17)
Minimum death benefit on the insured begins at $100,000, with a $65,000,000 maximum death benefit (subject to limitations).
Death benefit options
You have the flexibility to choose which death benefit option best suits your needs. Because your needs and goals may change, you also have the opportunity to change your death benefit option after the first policy year.
- Death benefit option A (level): Your death benefit will be equal to the specified amount.
- Death benefit option B (increasing): Your death benefit will be equal to the specified amount plus the accumulation value.
- Death benefit option C (return of premium): Your death benefit will be equal to the specified amount plus the premium you have paid into the policy. This option can only be elected at issue.
Premium payment options
Available payment options include:
- Premium Deposit Fund (PDF) Rider – combines all of the advantages of life insurance with the simplicity of a single lump-sum payment. By submitting a lump-sum amount to the PDF, we're able to automatically transfer your annual premium payments into your life insurance policy for you. This feature is available at no additional cost, but is not available in all states. The funding period can be designated between 3-10 policy years.
If you pay the required minimum premium for the first 10 policy years and do not take policy loans or withdrawals, your policy will be guaranteed not to lapse during that 10-year period or until you hit age 75, whichever is earlier, but not less than five policy years.
The death benefit increases 10% if the beneficiary chooses to take the policy proceeds over 10 years or longer. The death benefit increase is taxable.
At age 120
When the insured turns 120, the death benefit equals the accumulation value.
Accessing the death benefit
- Chronic Illness Accelerated Death Benefit Rider1,2
- Terminal Illness Accelerated Death Benefit Rider2
Please refer to the Allianz Life Pro+ Elite consumer brochure for details on these benefits, which may be taxable. You should consult with your tax advisor.
- Premium charge: Premium charges are deducted from both the current accumulation value and guaranteed accumulation value for each premium payment made to the policy. The premium charge for the current accumulation value is 8% in policy years 1-9 and 4% in policy years 10+; the premium charge for the guaranteed accumulation value is 8% in all years.
- Monthly insurance cost charge: An insurance cost charge will be deducted every month on the monthly anniversary and is based on factors such as age, gender, risk class, and death benefit amount.
- Monthly policy charge: A policy charge of $7.50 per policy will be deducted every month on the monthly anniversary.
- Monthly expense charge: The expense charge is a per $1,000 charge of your policy’s specified amount, and is based on factors such as the insured’s gender, age, specified amount, and risk class. The expense charge is calculated at the time of policy issue. The expense charge is deducted from the current accumulation value for the first 12 policy years, and from the guaranteed accumulation value for the life of the policy
- Surrender charge: 12-year decreasing surrender charge (based on age, gender, death benefit amount, and risk class).
The following table shows the index options and crediting methods available that you may select in 1% increments. You may change your selections on any policy anniversary.
You can choose between index allocation options that include an interest bonus each year, or index allocation options that do not include an interest bonus. Caps and/or participation rates will vary depending on the option selected. The chart below represents available index allocations.
Bonused index allocations
|Annual point-to-point||Annual sum||Monthly average||Monthly sum||Trigger (annual point-to-point)|
|Allianz True BalanceSM||no||yes||no||no||no|
|S&P 500® Index||yes||no||no||yes||yes|
|Bloomberg US Dynamic Balance Index II||yes||no||no||no||no|
|PIMCO Tactical Balanced Index||yes||no||no||no||no|
Bonus 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.
Standard index allocations
|Annual point-to-point||Annual sum||Monthly sum|
|Allianz True BalanceSM||no||yes||no|
|S&P 500® Index||yes||no||yes|
Allianz True Balance is comprised of: S&P 500® Index (50%) and Bloomberg Barclays US Aggregate RBI Series 1 Index (50%).
Blended index is comprised of Dow Jones Industrial Average (35%), Bloomberg Barclays US Aggregate Bond Index (35%), EURO STOXX 50® (20%), and Russell 2000® Index (10%).
PIMCO Tactical Balanced Index is comprised of S&P 500® Index, PIMCO Synthetic Bond Index, and a cash component
No single index allocation option will be most effective in all market environments. Index allocation options may be subject to a cap and/or participation rate.
Fixed interest allocation
You may also select fixed interest for all or a portion of your policy values. The fixed interest rate is guaranteed to never be less the 0.1%. Ask your financial professional for the current interest rate.
The participation rate will vary depending on which crediting method you choose. The participation rate determines how much of the percentage of indexed growth for an index option we use to calculate any indexed interest we credit to a life insurance policy.
- If you choose the monthly sum or annual point-to-point crediting method, which include caps on indexed interest, Allianz will guarantee a 100% participation rate over the life of the policy.
- If you choose the annual sum crediting method, Allianz will establish the cap on each policy anniversary. The participation rate is set at issue and is guaranteed for the life of the policy.
- If you choose the monthly average crediting method, Allianz will establish the participation rate on each policy anniversary. The participation rate is guaranteed to never be less than 5%.
- If the Bloomberg US Dynamic Balance Index II option is chosen, Allianz will establish the participation rate on each policy anniversary. This participation rate will be guaranteed to never be less than 5%.
How much indexed interest your policy can earn may be limited by a cap. The cap is the maximum percentage of index change we use for a specified time period to determine how much interest we credit to your policy in a given contract year. Ask your financial professional for the current cap.
You can choose between index allocation options that offer a bonus each year and index allocation options that do not offer a bonus. For allocation options with a bonus, a guaranteed interest bonus will be credited beginning in policy year 1 and every policy year thereafter. The interest bonus is equal to 15% of any interest credited in that policy year on the policy anniversary, and is guaranteed for the life of the policy. This does not, however, guarantee a bonus credit each year because it is based on the growth of an index.
Bonus 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.
Accessing the cash value
Allianz Life Pro+ Elite provides flexibility and access to the cash value via policy loans and withdrawals3 while the insured is living. There are several ways to access your available cash value without incurring surrender charges:
- Indexed loan
- Fixed interest loans
- Withdrawals/partial surrenders
Additional riders and benefits
May not be available in all states and the name may vary by state.
- Waiver of Specified Premium Rider
- Enhanced Liquidity Rider
- Additional Term Rider
- Other Insured Term Rider
- Child Term Rider
- Loan Protection Rider
- Supplemental Term Rider
- Waiver of New Charges Benefit
1The Chronic Illness Accelerated Death Benefit Rider is included with the policy, subject to age and underwriting requirements. There is a fee charged as a discount factor against every accelerated payment if the rider is exercised. The discount factor is based on age, premium class, current cash value of the policy, and current discount factor interest rate at that time. The maximum discount factor is determined by the life expectancy of the insured and the discount factor at the time of acceleration.
2May not be available in all states and the name may vary by state.
3Policy 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.
Talk to your financial professional to see if Allianz Life Pro+ Elite is right for you. Here are some questions they can help answer:
- How can the policy provide your beneficiaries with financial reassurance?
- How does the policy provide opportunities for tax-deferred accumulation?
- Can the policy help me address other financial needs?
*Rider is available at policy issue at an additional cost and is based on the amount of the additional term coverage. Please ask your producer for an illustration that shows you these costs based on your individual needs.
†Fees and expenses will reduce the cash value.
‡Bonus 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.
§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.
The S&P 500® Index is comprised of 500 stocks representing major U.S. industrial sectors. The Dow Jones Industrial Average is a popular indicator of the stock market based on the average closing prices of 30 active U.S. stocks representative of the overall economy.
S&P is a registered trademark of Standard & Poor’s Financial Services LLC(“S&P”) and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”). These trademarks have 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 and Dow Jones®, Dow Jones Industrial Average℠, DJIA and The Dow are trademarks of Dow Jones. These trademarks have been sublicensed for certain purposes by Allianz Life Insurance Company of North America (“Allianz”). The S&P 500 and Dow Jones Industrial Average (DJIA) are products of S&P Dow Jones Indices LLC and/or its affiliates and have 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.
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 Bloomberg US Dynamic Balance Index II is comprised of the Bloomberg Barclays US Aggregate RBI® Series 1 Index and the S&P 500® Index and shifts weighting daily, up to 3%, between them based on realized market volatility. The Bloomberg Barclays US Aggregate RBI® Series 1 Index is comprised of a portfolio of derivative instruments plus cash that are designed to track the Bloomberg Barclays US Aggregate Bond Index. The Bloomberg Barclays US Aggregate Bond Index is comprised of Bloomberg Barclays US investment-grade, fixed-rate bond market securities, including government agency, corporate, and mortgage-backed securities.
The Bloomberg US Dynamic Balance Index II, the Bloomberg Barclays US Aggregate RBI® Series 1 Index and the Bloomberg Barclays US Aggregate Bond Index (collectively, the "Bloomberg Indices") are the property of Bloomberg Index Services Limited. The Bloomberg US Dynamic Balance Index II is derived and calculated based on the S&P 500® Index under license from S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC) ("S&P Dow Jones Indices"). S&P® is a registered trademark of Standard & Poor's Financial Services LLC and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC. S&P 500® is a registered trademark of Standard & Poor's Financial Services LLC and has been licensed for use to Bloomberg Index Services Limited. Neither S&P Dow Jones Indices, its affiliates nor their third party licensors sponsor or promote the Index and no such party shall have any liability in connection with the Bloomberg Indices.
BLOOMBERG is a trademark and service mark of Bloomberg Finance L.P. BARCLAYS is a trademark and service mark of Barclays Bank Plc, used under license. Bloomberg Finance L.P. and its affiliates (collectively, "Bloomberg") or Bloomberg’s licensors own all proprietary rights in the Bloomberg Indices. Neither Bloomberg nor Barclays Bank Plc or Barclays Capital Inc. or their affiliates (collectively "Barclays") guarantees the timeliness, accuracy or completeness of any data or information relating to Bloomberg Indices or makes any warranty, express or implied, as to the Bloomberg Indices or any data or values relating thereto or results to be obtained therefrom, and expressly disclaims all warranties of merchantability and fitness for a particular purpose with respect thereto. It is not possible to invest directly in an index. Back-tested performance is not actual performance. Past performance is not an indication of future results. To the maximum extent allowed by law, Bloomberg and its licensors, and their respective employees, contractors, agents, suppliers and vendors shall have no liability or responsibility whatsoever for any injury or damages – whether direct, indirect, consequential, incidental, punitive or otherwise – arising in connection with Bloomberg Indices or any data or values relating thereto – whether arising from their negligence or otherwise. This document constitutes the provision of factual information, rather than financial product advice. Nothing in the Bloomberg Indices shall constitute or be construed as an offering of financial instruments or as investment advice or investment recommendations (i.e., recommendations as to whether or not to "buy," "sell," "hold" or enter into any other transaction involving a specific interest) by Bloomberg or its affiliates or licensors or a recommendation as to an investment or other strategy. Data and other information available via the Bloomberg Indices should not be considered as information sufficient upon which to base an investment decision. All information provided by the Bloomberg Indices is impersonal and not tailored to the needs of any specific person, entity or group of persons. Bloomberg and its affiliates express no opinion on the future or expected value of any security or other interest and do not explicitly or implicitly recommend or suggest an investment strategy of any kind. In addition, Barclays is not the issuer or producer of the Bloomberg Indices and has no responsibilities, obligations or duties to investors in these indices. While Bloomberg may for itself execute transactions with Barclays in or relating to the Bloomberg Indices, investors in the Bloomberg Indices do not enter into any relationship with Barclays and Barclays does not sponsor, endorse, sell or promote, and Barclays makes no representation regarding the advisability or use of the Bloomberg Indices or any data included therein. Customers should consider obtaining independent advice before making any financial decisions. © 2016 Bloomberg Finance L.P. All rights reserved.
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.
The PIMCO Tactical Balanced Index is comprised of the S&P 500® Index, a bond component comprised of the PIMCO Synthetic Bond Index and a duration overlay, and cash, and shifts weighting between them daily based on historical realized volatility of the components. The PIMCO Synthetic Bond Index is comprised of a small number of derivative instruments designed to provide exposure to U.S. Investment-grade and Treasury bond markets.
“The “PIMCO Tactical Balanced Index” is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”) and Pacific Investment Management Company LLC (“PIMCO”), and has been licensed for use by Allianz Life Insurance Company of North America (“Allianz”). Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Allianz. PIMCO’s Trademark(s) are trademarks of PIMCO and have been licensed for use by SPDJI and Allianz. Allianz products are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, or PIMCO and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the PIMCO Tactical Balanced Index.
Guarantees are backed by the financial strength and claims-paying ability of Allianz Life Insurance Company of North America.
• 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, PO Box 59060, Minneapolis, MN 55459-0060. (P64163)
Product and feature availability may vary by state and broker/dealer.