Understanding the Performance Lock feature
If you’re seeking the risk/reward balance of the Allianz Index Advantage® New York Variable Annuity, Performance Lock can help you gain added flexibility and a level of control in market conditions of all kinds. Watch the video to learn how.
[On-screen disclosure] Exploring the Allianz Index Advantage New York Variable Annuity, which includes information about Allianz Index Advantage® New York is a prerequisite to this video on Performance Lock. 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] Planning for market volatility isn't getting any easier, but with Allianz Index Advantage® New York Variable Annuity, you have an innovative opportunity to potentially lock in index gains and limit losses. It's called Performance Lock, and it's available for Allianz Index Advantage® New York Variable Annuity with both index strategies. Let's explore what this feature does, when you can use it, and how it can help offer added control while targeting performance potential with a level of protection.
As a hypothetical example, let's say you want to accumulate assets for retirement. You purchase Allianz Index Advantage® New York, and choose to allocate to an index strategy that makes sense for your objectives and includes the Performance Lock feature. Here, we'll demonstrate with the Index Performance Strategy one-year term. Whether you select a single- or multi-year term, Performance Lock offers you the ability to potentially capture index option value increases or potentially limit losses on each index option once per term.
[On-screen disclosure] You could experience a loss during a 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 a capped index option in subsequent terms. [End of on-screen disclosure]
So, imagine you're working with your financial professional, keeping track of how your index option value is performing. If and when you're comfortable with the current return on your index option value, Performance Lock offers you the opportunity to potentially capture gains for the remainder of your one-year term. That means you're no longer subject to external index performance through the end of the term, even if the actual index return ends lower after the lock is in place.
Of course, it is possible that by locking an index option value, you could miss a potential opportunity to use Performance Lock at a later date during the term, should the index option value further increase during the term. But if you want the reassurance of knowing you have the opportunity to potentially capture gains no matter what happens for the remainder of the term, then the added level of control of Performance Lock may be for you. Keep in mind, when you use Performance Lock prior to the term end date, it's important to know you will no longer participate in any financial gains or losses for the rest of the term based on the performance of an index.
[On-screen disclosure] The hypothetical example is provided to show how the Performance Lock works and is not intended to reflect the performance of Allianz Index Advantage® New York. The example does not take into consideration any withdrawals or contract expense deducations, which will reduce index option values. Locked index option values do not recieve the Cap or Buffer at the time of the lock or on the next Index Anniversary following a Performance Lock. [End of on-screen disclosure]
[On-screen disclosure] Executing a Performance Lock may result in you receiving less than the Performance Credit you would have recieved had you not locked the Index Option. It is possible to lock in a negative return. We will not provide advice or notify yoou regarding whether you should execute a Performance Lock, the optimal time to do so, or if you execute a Performance Lock at a sub-optimal time. We are not responsible for any losses related to your decision whether or not to execute a Performance Lock. [End of on-screen disclosure]
Now that you've seen what you can achieve with this feature, there's one more thing to know. Performance Lock is available to you as shown in our example by requesting it through your financial professional. Or you can set upper and lower targets that, if met, will automatically engage Performance Lock to potentially capture gains or limit losses.
[On-screen disclosure] Locked index option values do not receive the Cap or Buffer at the time of the lock or on the next Index Anniversary following a Performance Lock. As with all Performance Locks, note that the daily adjustment at the end of the business day on the lock date could be greater than or less than the target. [End of on-screen disclosure]
No matter which way you choose, those who take advantage of this feature can achieve a greater level of control and the ability to help mitigate ongoing volatility for the remainder of the term. Talk to your financial professional to learn how Performance Lock can help you achieve a greater level of control while targeting performance potential with a level of protection.
[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.
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.
L40538-NY03
INY-201
[End of on-screen disclosures]
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Executing a Performance Lock may result in you receiving less than the Performance Credit you would have received had you not locked the Index Option. It is possible to lock in a negative return. We will not provide advice or notify you regarding whether you should execute a Performance Lock, the optimal time to do so, or if you execute a Performance Lock at a sub-optimal time. We are not responsible for any losses related to your decision whether or not to execute a Performance Lock.
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.