How Allianz Life Pro+ Survivor® Fixed Index Universal Life Insurance Policy Works
A cost-effective way to INSURE TWO PEOPLE – and the benefits don’t stop there.
Allianz Life Pro+ Survivor pays a death benefit after both insureds have passed away. Because the mortality risk is based on two insureds, it can be more cost-effective than purchasing two individual policies. You also have the option to add a death benefit when the first insured dies, by purchasing the First-to-Die Rider.1
Allianz Life Pro+ Survivor also gives you the potential to accumulate cash value tax-deferred in your policy, based on positive changes in an external index, or a fixed interest rate.
Your cash value can be accessed income-tax-free to help with a variety of financial needs. Using policy loans and withdrawals,2 you can access your cash value to help with needs like supplemental college funding or supplementing your retirement income.
After the first insured's death, the surviving spouse can have access to a part of the death benefit in the event of a chronic or terminal illness.
1The First-to-Die Rider is available at an additional cost when the policy is issued. The cost of the rider is based on age, gender, risk class, First-to-Die Rider death benefit amount, and policy duration.
2Policy 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.
Issue age and minimum
You must be ages 30-80 to purchase Allianz Life Pro+ Survivor.
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 30-80): Preferred Plus, Preferred, Standard
- Tobacco (ages 30-80): Preferred Tobacco, Standard Tobacco
Death benefitMinimum death benefit on the insured begins at $200,000, 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 is 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 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 12 policy years and do not take policy loans or withdrawals, your policy will be guaranteed not to lapse during that 12-year period.
The death benefit increases 10% if the beneficiary chooses to take the policy proceeds over 10 years or longer. The death benefit increase may be taxable.
At age 120
When the insured turns 120, the death benefit equals the accumulation value. All loans will be allocated to the fixed allocation and will be charged the preferred loan rate. No premium will be accepted after age 120, unless it’s necessary to keep the policy in force, and no deductions or charges will be assessed after the insured reaches age 120.
Accessing the death benefit
Chronic Illness Accelerated Benefit Rider3
Terminal Illness Accelerated Benefit
Benefits may be taxable. You should consult with your tax advisor.
3The Chronic Illness Accelerated Benefit Rider is available at an additional cost at the time the rider is exercised. If the rider is not exercised, there is no additional cost. The cost is based on the surviving spouse's age, gender, risk class, current cash value and current discount factor interest rate at the time of acceleration. The rider is not available in all states.
- Premium charge: A premium charge of 6% will be deducted as each premium is paid into the policy.
- 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, and risk class.
- Monthly policy charge: A policy charge of $7.50 per policy will be deducted every month on the monthly anniversary.
- Monthly expense charge: An expense charge will be deducted every month on the monthly anniversary and is based on age, gender, and risk class.
12-year decreasing surrender charge (based on age, gender, death benefit amount, and risk class).
Allocation optionsIndex allocation options
You may select your allocation options in increments of 1% and change your selections on every policy anniversary. Your options are:
- A blended index that is comprised of Dow Jones Industrial Average (35%), Bloomberg Barclays Capital U.S. Aggregate Bond Index (35%), EURO STOXX 50® Index (20%), and Russell 2000® Index (10%)
- S&P 500® index
- Bloomberg US Dynamic Balance Index II1
The following tables show the index options and crediting methods available.
|Annual point-to-point||Monthly average||Monthly sum||Trigger (annual point-to-point)|
|Bloomberg US Dynamic Balance Index II1||yes||no||no||no|
|Bloomberg US Dynamic Balance Index II with annual floor1||yes||no||no||no|
|Blended index with 2% floor||yes||yes||no||no|
|S&P 500® index||yes||no||yes||yes|
You may also select fixed interest for a portion of your policy values. Your fixed interest rate is guaranteed to never be less than .10%; ask your financial professional for the current 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 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 options are chosen, Allianz will establish the participation rate on each policy anniversary. This participation rate will be guaranteed to never be less than 5%. For the option with annual floor, the annual floor is set by Allianz at the start of the policy, and upon each policy anniversary, and is guaranteed to never be less than 0.5%.
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.
The annual floor depends on the index allocation option you choose. If the index performance is flat or negative, you will still receive credited interest equal to the annual floor.
A guaranteed annual bonus of 0.6% will be credited to the policy accumulation value starting in year 111.
Accessing the cash value
Life Pro+ Survivor provides flexibility and access to the cash value through policy loans and withdrawals2 while the insured is living. There are several ways to access your available cash value:
- Indexed loan
- Standard loan
- Preferred loan
- Withdrawals/partial surrenders
2Policy loans and withdrawals will reduce the available cash value and death benefit and may cause unintended consequences, including lapse or taxable events. Please see full loan and withdrawal disclosure within this material for detail.
Riders that may be available at an additional cost
- First-to-Die Rider
- Waiver of Specified Premium Rider
- Estate Protection Rider
- Enhanced Liquidity Rider
- Loan Protection Rider
Riders may not be available in all states.
1Available on policies issued on or after 8/4/15.
Talk to your financial professional to see if Life Pro+ Survivor 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?
Guarantees are backed by the financial strength and claims-paying ability of the issuing company.
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 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 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 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 is a trademark of Russell Investments and has been licensed for use by Allianz Life Insurance Company of North America. Allianz products are not sponsored, endorsed, sold or promoted by Russell Investments and Russell Investments makes no representation regarding the advisability of investing in Allianz products.
• 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. (P61843)
Product and feature availability may vary by state.