A fixed index annuity may be a good choice if you want the opportunity to earn indexed interest, but don’t want to risk losing money in the market.
Your annuity can earn interest based on the growth of an external index (we call this “indexed interest”). You can also choose an annual fixed interest rate that is guaranteed by Allianz, or a combination of both fixed and indexed interest.
Give yourself a variety of index allocations to choose from – including some that are exclusive to Allianz – plus a fixed interest allocation. You’ll also get the principal and credited interest protection from market downturns that only a fixed index annuity can offer.
Many people buy annuities between ages 40 and 60, but the answer depends on your financial goals. If your main goal is saving enough for retirement, buying a fixed index annuity when you’re still a few years away from retirement may be a good choice. That’s because FIAs are designed to help the money in your contract grow tax-deferred over time. And the younger you are when you buy your annuity, the longer your money has to grow tax-deferred.
Fixed index annuities are designed to protect the money you place in the contract from market volatility. Although FIAs may credit interest based on changes in an external index, you’re not actually participating in the market – so the principal in your annuity is never at risk due to market losses. Fees and charges may still reduce your annuity’s value, however.
That depends on many factors, including whether you have started taking income from your annuity. Most annuities let you name a beneficiary. If you have not yet started taking regular income payments from your annuity (we call this “annuitization”), the money that’s left in your annuity will pass on to your beneficiary when you die. But some annuities may have different terms. That’s why it’s important to read and understand the contract before you buy any financial product, including an annuity.
It means the money in your fixed index annuity contract is not at risk due to market losses. Although FIAs may credit indexed interest based on changes in an external index, you’re not actually participating in the market – so the principal in your annuity is never at risk due to market losses. Fees and charges may still reduce your annuity’s value, however.
Simply put, it’s interest your contract earns based on positive changes in an external index. We track the performance of one or more indexes you select, and if the return is positive, you have the opportunity to earn indexed interest. But remember that with fixed index annuities you’re not actually participating in the market – so the principal in your annuity is never at risk due to market losses.
An allocation option is an index combined with a crediting method.
Indexed interest is determined through a combination of index allocation options and crediting methods. Every crediting period, you can place your cash value in one or more allocation options, which track the performance of an external index. If the external index has a positive result, we then use a crediting method – which is a formula to determine how much indexed interest your contract will earn. Because no single allocation or crediting method performs best in all situations, your financial professional can help you determine which combination may fit your financial goals.
RILAs offer a unique combination of features, including the opportunity to invest with the level of protection and growth potential that can help you achieve your overall financial goals.
1 Bonus annuities may include higher surrender charges, longer surrender periods, lower caps, higher spreads, or other restrictions that are not included in similar annuities that don’t offer a bonus. During the contract’s surrender period, we will apply a surrender charge if the contract is partially or fully surrendered. These charges may result in a loss of indexed interest and fixed interest, interest bonus, and a partial loss of principal (premium).
Annuities are complex products, and it’s important to understand the balance between all of their features and factors. A financial professional can help you decide whether an annuity is appropriate for your needs.
Any distributions are subject to ordinary income tax and, if taken prior to age 59½, a 10% federal additional tax.
With the purchase of any additional-cost riders, the contract's values will be reduced by the cost of the rider. This may result in a loss of principal and interest in any year in which the contract does not earn interest, or earns interest in an amount less than the rider charge.
Guarantees are backed by the financial strength and claims-paying ability of Allianz Life Insurance Company of North America.
• 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.
This content does not apply in the state of New York.
Product and feature availability may vary by state and broker/dealer.
