How Allianz Life Pro+® Fixed Index Universal Life Insurance Policy works
Custom-fit your coverage
Allianz Life Pro+ starts with an income-tax-free death benefit.1 Death benefit proceeds can be used to pay down debt, supplement college expenses, or help with business succession planning and/or final expenses. But the protection goes beyond life insurance and includes a death benefit, so you can address several of your financial concerns with one policy.
Allianz Life Pro+ may be a good fit if you need life insurance and like the opportunity to accumulate cash value for future needs. The potential cash value can be accessed income-tax-free through policy loans2 or withdrawals for various purposes, such as supplemental college funding or retirement income.
With Allianz Life Pro+, any cash value has the potential to accumulate tax-deferred based on positive changes in an external market index – and is guaranteed to never decrease due to market volatility (although certain fees and charges will decrease cash value). As an alternative to indexed interest, you have the option of allocating all or part of your money to a fixed interest account.
1 The death benefit is generally income-tax-free when passed on to beneficiaries.
2 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.
Issue age and minimum
You must be age 80 or younger to purchase Allianz Life Pro+ .1
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 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.
GuaranteesIf 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.
Survivor benefitThe death benefit increases 10% if the beneficiary chooses to take the policy proceeds over 10 years or longer.
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 Rider2
Terminal Illness Accelerated Benefit
- 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.
10-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:
- Barclays US Dynamic Balance Index II3
- A blended index that is comprised of Dow Jones Industrial Average (35%), Barclays Capital U.S. Aggregate Bond Index (35%), EURO STOXX 50® Index (20%), and Russell 2000® Index (10%)
- S&P 500® Index
- Allianz True BalanceSM 3
The following tables show the index options and crediting methods available.
|Annual point-to-point||Annual sum||Monthly average||Monthly sum||Trigger (annual point-to-point)|
|Barclays US Dynamic Balance Index II3||yes||no||no||no||no|
|S&P 500® Index||yes||no||no||yes||yes|
|Allianz True BalanceSM||no||yes||no||no||no|
You may also select fixed interest for a portion of your policy values. Your fixed interest rate is guaranteed to never be less than 0.1%; 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 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 Barclays 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.
An interest bonus will be credited beginning in policy year 11 and every policy year thereafter. The interest bonus is equal to 15% of any interest credited in that policy year.
Accessing the cash value
Allianz Life Pro+ provides flexibility and access to the cash value via policy loans and withdrawals while the insured is living. There are several ways to access your available cash value without incurring surrender charges:
- Indexed loan
- Standard loan
- Preferred loan
- Withdrawals/partial surrenders
Riders that may be available at an additional cost
- Convertible Term Rider
- Waiver of Specified Premium Rider
- Enhanced Liquidity Rider
- Additional Term Rider
- Other Insured Term Rider
- Child Term Rider
- Loan Protection Rider
Riders may not be available in all states and the name may vary by state.
1Issue age state-specifics (OR (18-70) and PA (18-80)).
2The 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 age, premium class, current cash value, and current discount factor interest rate at the time of acceleration. The rider is not available in all states.
3Available on policies issued on or after 5/24/16.
Talk to your financial professional to see if Allianz Life Pro+ 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 Allianz Life Insurance Company of North America.
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 Barclays US Dynamic Balance Index II is comprised of the 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 Barclays US Aggregate RBI® Series 1 Index is comprised of a portfolio of derivative instruments plus cash that are designed to track the Barclays US Aggregate Bond Index. The Barclays US Aggregate Bond Index is comprised of Barclays US investment-grade, fixed-rate bond market securities, including government agency, corporate, and mortgage-backed securities. Barclays Risk Analytics and Index Solutions Limited and its affiliates ("Barclays") is not the issuer or producer of any Allianz products and Barclays has no responsibilities, obligations or duties to investors in respect of the Barclays US Aggregate Bond Index, the Barclays US Aggregate RBI® Series 1 Index or the Barclays US Dynamic Balance Index II. The Barclays US Aggregate Bond Index, the Barclays US Aggregate RBI® Series 1 and the Barclays US Dynamic Balance Index II are trademarks owned by Barclays, and the Barclays US Aggregate Bond Index and the Barclays US Dynamic Balance Index II are licensed for use by Allianz Life Insurance Company of North America as the Issuer of the Allianz product. While Allianz may for itself execute transaction(s) with Barclays in or relating to the Barclays US Aggregate Bond Index, the Barclays US Aggregate RBI® Series 1 Index or the Barclays US Dynamic Balance Index II with Allianz products, investors acquire Allianz products from Allianz Life Insurance Company of North America and investors neither acquire any interest in the Barclays US Aggregate Bond Index, the Barclays US Aggregate RBI® Series 1 Index or the Barclays US Dynamic Balance Index II nor enter into any relationship of any kind whatsoever with Barclays upon making an investment in any Allianz product. The Allianz products are not sponsored, endorsed, sold or promoted by Barclays and Barclays makes no representation regarding the advisability of any Allianz product or use of the Barclays US Aggregate Bond Index, the Barclays US Aggregate RBI® Series 1 Index or the Barclays US Dynamic Balance Index II or any data included therein. Barclays shall not be liable in any way to the Issuer, investors or to other third parties in respect of the use or accuracy of the Barclays US Aggregate Bond Index, the Barclays US Aggregate RBI® Series 1 Index or the Barclays US Dynamic Balance Index II or any data included therein.
The EURO STOXX 50® provides a blue-chip representation of supersector leaders in the Eurozone. The index covers 50 stocks from 12 Eurozone countries: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain.
The EURO STOXX 50® is the intellectual property (including registered trademarks) of STOXX Limited, Zurich, Switzerland. Allianz products based on the Index are in no way sponsored, endorsed, sold or promoted by STOXX and shall not have any liability with respect thereto.
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. (P95472)
Product and feature availability may vary by state and broker/dealer.