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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 If you are taking a partial withdrawal during an index year, the withdrawn amount will not receive a performance credit on the next Index Anniversary.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?
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