[Narrator] How is my income determined? With Allianz Lifetime Income+ Fixed Index Annuity and its lifetime income benefit, the amount of income you can withdraw in retirement is determined by your Lifetime Income Value, which includes the total premiums you've paid plus any interest credits you've earned. But that's not all. Your interest credits are augmented by two special features.
First, there's our Income Accelerator. Each year, any interest you've earned, whether indexed or fixed interest, is multiplied by 150% and added to your lifetime income value. Second, with the Income Builder, your total Lifetime Income Value receives an annual 2% interest credit, and this happens whether or not you've received any interest from your allocations. The Income Builder begins when you reach age 50 and continues until you're ready to start receiving lifetime withdrawals. So total premiums paid, plus earned interest, plus Income Accelerator credits, plus Income Builder credits, minus any withdrawals you've made equals your Lifetime Income Value. This is the amount we use to calculate your initial lifetime withdrawals.
You cannot take your Lifetime Income Value as a lump sum.
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At that point, we take your Lifetime Income Value, then multiply it by your Personal Lifetime Withdrawal Percentage, which is based on your age at the time of election and lifetime withdrawal percentages that were in effect whenever you made a contribution. The higher the rate, the more income you will receive.
We will establish Lifetime Withdrawal Percentages for each contribution. You can view the current Lifetime Withdrawal Percentages in the "Guide to Current Rates."
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The result is your starting annual lifetime income, and that income can increase over time, because even while taking payments, you can continue to earn interest and get the 150% Income Accelerator bonus. This will increase your annual lifetime withdrawals.
Please note, while your Lifetime Income Value can't be taken as a lump sum, you do have the option of accessing the annuity's full Accumulation Value. However, this value will be lower than your Lifetime Income Value because it won't include the Income Builder or Income Accelerator credits. Also, any withdrawals from your Accumulation Value will lower your Lifetime Income Value proportionately. So to maximize your retirement income potential, we recommend using your Allianz Lifetime Income+ Annuity for annual lifetime withdrawals.
Fixed index annuities are designed to meet long-term needs for retirement income. They provide guarantees against the loss of principal and credited interest, tax-deferred accumulation potential, and the reassurance of a death benefit for beneficiaries.
Increasing income potential if offered through an income benefit at no additional cost.
The Income Builder credit and the Income Accelerator credits are credited only to the Lifetime Income Value (LIV). To receive the LIV, including the Income Builder and Accelerator credits, you must be at least age 60, and lifetime income withdrawals must be taken. The LIV is not available as a lump sum. You will not receive the Income Builder and Accelerator credits if the contract is fully surrendered or if traditional annuitization payments are taken. If it is partially surrendered the LIV will be reduced proportionally, which could result in a partial loss of the interest credits. Income withdrawals are considered partial withdrawals and are subject to ordinary income tax and, if take prior to age 59½, a 10% federal additional tax.
Any distributions are subject to ordinary income tax and, if take prior to age 59½, a 10% federal additional tax.
Guarantees are backed solely by the financial strength and claims-paying ability of Allianz Life Insurance Company of North America (Allianz).
• 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. (C64712-MVA)
Product and feature availability may vary by state and retirement plan
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