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The Allianz Index Advantage New York Variable Annuity offers a different risk/return consideration from traditional accumulation products and is designed to complement your portfolio. It includes a death benefit during the accumulation phase three variable options, and two innovative index strategies to help meet your needs.

Contract options

The Allianz Index Advantage New York Variable Annuity provides a combination of traditional variable options along with two index strategies. Each index option is the combination of a crediting method, also called an index strategy, and the index. An allocation to the index options is not a purchase of shares of any stock or index fund or a direct investment in an index. Transfers to the index option are allowed every Index Anniversary. Transfers from the index option to the variable options are allowed every sixth Index Anniversary.

Your contract has a 1.25% annual product fee calculated as a percentage of the charge base, which is the contract value on the preceding quarterly contract anniversary, adjusted for subsequent purchase payments and withdrawals. Refer to the product brochure for more information on definitions of terms.

The Index PERFORMANCE Strategy is a crediting method that provides upside potential with a level of protection. This may be a good option if you are willing to take on some level of risk with the opportunity to grow your assets.

This is accomplished by annually applying a performance credit, which is the annual return your contract may receive when allocated to an index option, equal to the index return, up to a limit called the cap, if the index return is positive. If you are taking a partial withdrawal during an index year, the withdrawn amount will not receive a performance credit on the next Index Anniversary. If the index return is negative, you may receive a negative performance credit, but only when the loss is greater than a specified percentage called the buffer, currently 10%. This helps provide a level of protection by absorbing the first 10% of negative index return in any given year. Losses in excess of 10% will reduce your contract value. The buffer is declared on the issue date and will never change after we issue your contract. The buffer will never be less than 5%.

The initial caps are determined on the Index Effective Date and they are subject to significant change annually on each Index Anniversary, and will never be less than 1.50%. The buffer will never change after we issue your contract. However, we can change the buffer rates for new business at any time.

Caps and buffers can be different for newly issued and in-force contracts, and they can be different between in-force contracts issued on different days and in different years. Caps and buffers can also be different for each index and each index strategy.

Deduction of an annual 1.25% product fee, and any applicable withdrawal charges, and contract maintenance charges, may result in loss of principal and performance credits, which is the annual return you may receive when you allocate money to an index option.

The Index PROTECTION NY Strategy is a crediting method that provides less growth potential in return for additional protection from negative index performance. That means you can help protect what you’ve earned, while still have growth opportunities.

If the annual index return is positive, you’ll receive an annual performance credit equal to that return, up to a limit called a cap. If you take a partial withdrawal during an index year, the withdrawn amount will not receive a performance credit on the next anniversary. The caps will be lower than those offered on the Index Performance Strategy, in return for a greater level of protection.

If the annual index return is negative, you may receive an annual negative performance credit – but only when the loss is greater than a specified percentage called the buffer, currently 30%. This helps provide a level of protection by absorbing the first 30% of negative index return in any given year. Losses in excess of 30% will reduce your contract value. The buffer is declared on the issue date and will never change after we issue your contract. The buffer will never be less than 5%. The Index Protection NY Strategy buffer will always be greater than what is available with the Index Performance Strategy.

The cap for the Protection NY Strategy, just like the Index Performance Strategy is declared on the Index Effective Date, which is the first date your money has the opportunity to be allocated to an index option, and on each Index Anniversary thereafter. The cap is subject to significant change annually on the Index Anniversary, and will never be less than 1.50%.

Remember that you have the flexibility to allocate into both index strategies in the same year. It is important to know that the two index strategies have different risk and return potentials. The Index Performance Strategy has higher caps in exchange for a lower buffer (i.e., in exchange for higher risk). The Index Protection NY Strategy provides more protection and has a higher buffer in exchange for lower caps. Please consult with your financial professional to determine your appropriate mix of performance potential and protection.

Caps and buffers can be different for newly issued and in-force contracts, and they can be different between in-force contracts issued on different days and in different years. Caps and buffers can also be different for each index and each index strategy.

Deductions for the annual product fee of 1.25% and any applicable withdrawal charges, and contract maintenance charges, may result in a loss of principal or previously earned performance credits, and will not receive a performance credit on the next Index Anniversary.

Issue age and minimum

The minimum initial premium payment is $10,000 for qualified and nonqualified money.

Rates

For more information on current caps and buffers, please consult your financial professional.

Allocation options

You’ll need to work with your financial professional to design an investment portfolio that aligns with your long-term retirement goals.

Indexes available with the Index Performance Strategy include:
S&P 500® Index
Russell 2000® Index
EURO STOXX 50®1

Indexes available with the Index Protection NY Strategy2 include:
S&P 500® Index
Russell 2000® Index
Nasdaq-100® Index
EURO STOXX 50®1

These unmanaged indexes are not intended to represent specific mutual funds. Individual results may vary according to transaction costs and taxes. Investors cannot invest directly in an index.

Variable options available:

AZL® Government Money Market Fund*3
AZL® MVP Balanced Index Strategy Fund3,4
AZL® MVP Growth Index Strategy Fund3,4

Annual operating expense of variable options are:

  • Minimum 0.65%
  • Maximum 0.74%

Net expenses include contract fee waivers and expense reimbursements.

Access your money

Your contract includes a six-year withdrawal charge schedule on each purchase payment, and if taken prior to age 59½, may be subject to a 10% federal additional tax.

Twelve charge-free transfers per year are allowed among variable options only ($25 thereafter). Transfers to index options are allowed on every Index Anniversary, which is the anniversary of the Index Effective Date (the first date your money had the opportunity to be allocated to any index option). Transfers from index options to the variable options are allowed every sixth Index Anniversary.

If you need access to your money, you can withdraw up to 10% of your purchase payments each contract year without a withdrawal charge. Any unused portion does not carry from one year to the next. On a full withdrawal, the free withdrawal privilege is not available and amounts previously withdrawn under the free withdrawal privilege may be subject to the withdrawal charge. All withdrawals are subject to ordinary income tax and, if taken prior to age 59½, may be subject to a 10% federal additional tax.

Payout options

You have several options for your annuity payout:

  • life
  • life with period certain
  • joint and last survivor
  • joint and last survivor with period certain
  • refund life

Standard contract features

  • Systematic withdrawals
  • Required minimum distribution program
  • Waiver of withdrawal charge benefit

Death benefit

Prior to receiving your entire contract value or annuitizing your contract, your beneficiaries will receive the greater of your contract value, or purchase payments adjusted for withdrawals upon the first death of an owner named at issue. Changing ownership on the contract can reduce or eliminate these death benefits.

1The EURO STOXX 50® is not available to in-force contracts issued before August 24, 2015.

2The Index Protection NY Strategy is not available to in-force contracts issued before August 24, 2015.

3The AZL investment options are managed by an affiliate of Allianz Life Insurance Company of New York and Allianz Life Financial Services, LLC. All are affiliated companies.

This investment option invests in derivative instruments such as futures, options, and swap agreements. Derivatives can increase the investment option’s share price volatility and could magnify losses. Certain derivative instruments also involve costs that could reduce returns. Certain derivatives may involve risk of default.

4This investment option is subadvised. The subadvisor may have a public mutual fund with an investment objective that is similar to that of this investment option. These are separate portfolios that will have different performance due to differing fees, expenses, relative cash flows, portfolio sizes, and other factors.

Manager Allocation Risk: The risk refers to the possibility that the manager could allocate assets in a manner that will cause the funds to underperform other funds with similar investment objectives. The manager may have a potential conflict of interest in allocating assets among and between the permitted underlying funds because the subadvisory fee rate it pays to the subadvisors of the permitted underlying funds is different.

Generally under normal conditions, 5% (up to 20%) of the investment option is invested in the MVP risk management overlay. When overall market volatility is generally moderate or low, the MVP risk management process will look to participate with the market using derivatives equal to the risk of the investment options and minimizes it protection aspect. During periods of higher market volatility, the MVP risk management process will seek to reduce volatility using derivatives with the goal to minimize extreme negative outcomes. Derivatives are contracts used as underlying assets and play an important role in hedging risk. They limit the need to buy or sell assets within the underlying funds in periods of volatility. They also include the risks related to futures and options, which may be different from and greater than the risks of direct investments in securities or other traditional investments. The MVP process does not ensure a profit or protect against losses. Success of the hedging strategy or fund objectives cannot be guaranteed.

Each AZL® MVP fund utilizes the MVP risk management process, which could cause the equity exposure of the funds to fluctuate, but equity exposure will generally not be lower than 10%.


Next steps:

Talk to your registered representative to see if Allianz Index Advantage New York Variable Annuity is appropriate for you. Here are some questions they can help answer:

  1. Are your purchase payments protected?
  2. How can this product fit into my overall portfolio?
  3. Are there guarantees available with this product?
  4. What else should I consider that might impact my retirement?
*An investment in the fund is neither insured nor guaranteed by the FDIC or any other governmental agency. Although the fund seeks to preserve your $1.00 per share, it is possible to lose money in the fund.

Investing in a variable annuity may be the answer for part of your overall retirement strategy. A variable annuity offers a unique combination of features, including market participation through a variety of investment options; tax-deferred growth opportunities; and optional protection benefits that can provide certain accumulation, income, and beneficiary guarantees for an additional cost.

Variable annuities are subject to investment risk, including loss of principal, and contract values fluctuate daily. Investment returns and principal value will fluctuate with market conditions so that units, upon distribution, may be worth more or less than the original cost.

Withdrawals will reduce the contract value and the value of any protection benefits. Withdrawals taken within the contract withdrawal charge schedule will be subject to a withdrawal charge. All withdrawals are subject to ordinary income tax and, if taken prior to age 59½, may be subject to a 10% federal additional tax.

For more complete information about Allianz Life Insurance Company of New York (Allianz Life® of NY) variable annuities and variable options, call Allianz Life Financial Services, LLC at 800.624.0197 for a prospectus. The prospectuses contain details on investment objectives, risks, fees, and expenses, as well as other information about the variable and index-linked annuity and variable options, which your clients should carefully consider. Encourage your clients to read the prospectuses thoroughly before sending money.

Guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company and do not apply to the performance of the variable subaccounts, which will fluctuate with market conditions.

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 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.

The Nasdaq-100 Index® includes 100 of the largest domestic and international non-financial securities listed on The Nasdaq Stock Market, based on capitalization. The Nasdaq-100®, Nasdaq-100 Index®, Nasdaq®, and OMX® are registered trademarks of NASDAQ OMX Group, Inc. (which with its affiliates are the Corporations) and are licensed for use by Allianz Life Insurance Company of North America. The product(s) have not been passed on by the Corporations as to their legality or suitability. The product(s) are not issued, endorsed, sold, or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE PRODUCT(S).

• 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, 5701 Golden Hills Drive, Minneapolis, MN  55416-1297. In New York, products are issued by Allianz Life Insurance Company of New York, 28 Liberty Street, 38th Floor, New York, NY 10005-1422, and are distributed by their affiliate, Allianz Life Financial Services, LLC, member FINRA, 5701 Golden Hills Drive, Minneapolis, MN 55416-1297. (L40538-NY01)

Product and features are available only in New York and may vary by broker/dealer.

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