Index Performance Strategy: Multi-Year Term (6 or 3 years)
These index strategies, also with a Participation Rate, have a longer term, which provides the greatest performance potential, plus a level of protection from index losses.
[On-screen disclosure] The introduction chapter video, which includes information about Allianz Index Advantage® New York Variable Annuity, is a prerequisite to this video on the Index Performance Strategy with a multi-year term. Allianz Index Advantage® New York is designed to help you reach your long-term financial goals by providing tax deferral, variable options, index options, and a death benefit during the accumulation phase. As with any investment vehicle, registered index-linked annuities are subject to risk, including possible loss of principal. Investment returns, index credits, and principal will fluctuate with market conditions so that contract values, upon distribution, may be worth more or less than the original cost. [End of on-screen disclosure]
[Narrator] By now, you're familiar with Allianz Index Advantage® New York Variable Annuity, the variable options it may offer, and how you can customize your annuity with the available index strategies, also called crediting methods. Let's focus on the Index Performance Strategy, which may be a good choice if you're looking for a level of protection for your principal while maintaining the potential for growth opportunities. What sets this index strategy apart is your choice of one- and multi-year term index options, each with different cap and buffer amounts, and with the multi-year term, also a participation rate.
The one-year term index option may be more favorable in a strong market with some protection from smaller losses, whereas a multi-year term index option may be more favorable in a longer period of market growth and provide some protection from large index losses. Yet both allow you the potential to receive a performance credit based on the performance of the annual index return while providing a level of protection from negative index returns.
[On-screen disclosure] You could experience a loss during the term if the index declines more than the level of downside proteciton. [End of on-screen disclosure]
It's important to know that you could experience a loss during the term if the index declines more than the level of downside protection, and you may not be able to participate fully in a market recovery if the index is capped due to the capped upside potential in subsequent terms. Although you may select a multi-year term option, which has a participation rate that may give you more than the cap. You can watch the Index Performance Strategy 1-Year Term video for more details on how a one-year term works.
To help give you an idea of how the Index Performance Strategy with six-year term or three-year term works, we'll use an example of the 3-Year Term Index Option that assumes hypothetical cap and participation rates, which may be different than current cap and participation rates. In reality, the six-year term and three-year term index options calculate performance credits using the same method, with the only difference being the length of the time period. For the Index Performance Strategy with three-year term, and a 20% buffer in this capped example, let's say the index return is positive, but it falls short of your declared cap. In this situation, you'd earn the same percentage that your chosen index earned with the index return being multiplied by the participation rate, what we call a performance credit.
Now, imagine the index return exceeds your cap. In this scenario, with the index return again being multiplied by the participation rate, you'd receive a performance credit equal to the cap amount. Suppose the index return is negative but falls within your buffer of 20%. You won't earn a negative performance credit if this happens, but if the index return is negative and exceeds the buffer, you'd receive a negative performance credit equal to the amount of negative index returns in excess of the buffer. In this case, negative 4%.
[On-screen disclosure] The hypothetical example shows conceptually how the Index Performance Strategy might work in different market index environments and assumes no change in the hypothetical cap or 20% buffer. The minimum cap is 12%. The example shows the minimum Participation Rate of 100%. It does not predict or project the actual performance of Allianz Index Advantage® New York Variable Annuity. Although an external market index or indexes will affect your Index Option Values, the index options do not directly participate in any stock or equity investments, and are not a direct investment in an index. This example also does not reflect the annual contract fees or charges. Buffers cannot change for a contract after they are established. Caps are declared on the Term Start Date, which is the first date your money has the opportunity to be allocated to an index option, and on each Term State Date thereafter. Caps are subject to change on each Term Start Date, and will never be less than the minimum cap. Caps can be different between newly issued contracts and inforce contracts, and they can be different between inforce contracts issued on different days and in different years. Caps and buffers can also be different for each index. [End of on-screen disclosure]
[On-screen disclosure] Current caps may be different from what is represented in the examples. You could experience a loss during the term if the index declines more than the level of downside protection. You may not be able to participate fully in a market recovery due to the capped upside potential in subsequent terms. [End of on-screen disclosure]
We currently have the following multi-year term options available, either three- or six-year terms with varying buffers.
[On-screen disclosure] All multi-year options have a Participation Rate. [End of on-screen disclosure]
How does the participation rate work if the index option is uncapped? As a hypothetical example, if the index option is uncapped and the index return is positive, a performance credit would be equal to the index return multiplied by the participation rate. Therefore, in any example with a participation rate greater than 100%, the performance credit would exceed the index return.
Are you seeking a strategy that can deliver performance potential with a level of protection? Talk to your financial professional to discuss how the Index Performance Strategy multi-year term with Allianz Index Advantage® New York could fit your objectives, and visit allianzlife.com/indexratesny to see current available caps and rates.
[On-screen disclosures]
This material must be preceded or accompanied by the Allianz Index Advantage® New York consumer brochure and a current prospectus for the Allianz Index Advantage® New York Variable Annuity. Refer to the product brochure for important information and index disclosures.
Call your financial professional or Allianz Life Financial Services, LLC, member FINRA, at 800.624.0197 to obtain a prospectus about any available variable options. The prospectuses contain details on investment objectives, risks, fees, and expenses, as well as other information about the variable annuity and available variable options, which you should carefully consider. Please read the prospectus thoroughly before sending money.
Index variable annuities are subject to risk, including possible loss of principal. Investment returns, index credits, and principal will fluctuate with market conditions, so that contract values, upon distribution, may be worth more or less than the original cost.
Amounts invested in the index strategy must be held for the full term before they can recieve a Performance Credit. A Daily Adjustment is applied if, before the Term End Date, you take a full or partial withdrawal, annuitze the Contract, execute a Performance Lock, a death benefit is paid, or Contract fees and expenses are deducted. The Daily Adjustment may cause you to lose principal and previous earnings even if Index performance is positive on that day or has been positive since the Term Start Date.
Although an index or indexes will affect your Index Option Values, the Index Options do not directly participate in any stock or equity investment and are not a direct investment in an index.
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.
All annuity contract and rider guarantees, or annuity payout rates, are backed by the claims-paying ability of the issuing insurance company. They are not backed by the broker/dealer from which this annuity is purchased, by the insurance agency from which this annuity is purchased, or any affiliates of those entities, and none makes any representations or guarantees regarding the claims-paying ability of Allianz Life Insurance Company of New York (Allianz Life of NY). Guarantees do not apply to the performance of the variable subaccounts, which will fluctuate with market conditions.
• 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 New York, 1633 Broadway, 42nd Floor, New York, NY 10019-7585. Variable products are distributed by its affiliate, Allianz Life Financial Services, LLC, member FINRA, 5701 Golden Hills Drive, Minneapolis, MN 55416-1297. 800.624.0197
Product and features are only availble in New York and may vary by broker/dealer.
INY-199
[End of on-screen disclosures]
Looking for more videos?
Registered index-linked annuities (RILAs) provide indexed return potential with the opportunity for varying levels of protection through multiple index options available prior to receiving income, tax-deferred growth potential, a variety of lifetime annuity payout options, and a death benefit during the accumulation phase.
RILAs are subject to investment risk, including possible loss of principal. 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.
Purchasing an annuity within a retirement plan that provides tax deferral under sections of the Internal Revenue Code results in no additional tax benefit. An annuity should be used to fund a qualified plan based upon the annuity’s features other than tax deferral. All annuity features, risks, limitations, and costs should be considered prior to purchasing an annuity within a tax-qualified retirement plan.
Withdrawals will reduce the contract value and the value of any potential 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 Index Advantage® New York Variable Annuity and the variable options, call your financial professional or Allianz Life Financial Services, LLC, member FINRA, 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 RILA and the variable options, which you should carefully consider. Please read the prospectuses thoroughly before sending money.
Guarantees are backed by the financial strength and claims-paying ability of Allianz Life Insurance Company of New York and do not apply to the performance of the variable subaccounts, which will fluctuate with market conditions.
• 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 New York, 1633 Broadway, 42nd Floor, New York, NY 10019-7585, and distributed by its affiliate, Allianz Life Financial Services, LLC, member FINRA, 5701 Golden Hills Drive, Minneapolis, MN 55416-1297. (L40538-NY03)
In the state of New York, only Allianz Life Insurance Company of New York is authorized to offer annuities and life insurance. www.allianzlife.com/new-york
Product and features are available only in New York and may vary by broker/dealer.