[Narrator] Imagine that planning your retirement is like planning a road trip. Just like planning a trip, retirement requires careful preparation and choosing an appropriate path to reach your destination. Think of a registered index-linked annuity, also called a RILA, as a potential vehicle for this journey. RILAs offer a variety of features to help provide a smooth ride like tax-deferred growth potential, a variety of annuity options, and a death benefit during the accumulation phase.
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RILAs have associated annual fees, expenses, and charges that are deducted from the contract. Refer to the specific product brochure for more information.
RILAs are subject to investment risk, including possible loss of principal. Investment returns and principal value will fluctuate with market conditions so that contract value, upon distribution, may be worth more or less than the original cost.
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So what can RILAs do for you? Well, that depends on what your needs are. For example, some of our RILAs come with an income benefit that is automatically included in the contract for an additional annual rider fee. The income benefit can provide an income stream for life. And as you can imagine, that could be very helpful on your retirement journey. But as with any road trip, there can be bumps along the way.
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Assumes all terms of the contract are followed and no more than the annual maximum iincome payment is taken. Once established, the annual maximum income payment can only decrease if an excess withdrawal is taken. Excess withdrawals reduce the contract value, income payments, and any guaranteed death benefit.
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Similar to navigating through detours or unpredictable weather conditions, the market's ups and downs can affect your journey. But we offer features to customize your level of protection and growth potential through various index options. So what is an index option? An index option is a combination of an index strategy, also called a crediting method, an index, the term, which is the time period for measuring index performance, and an upside feature paired with a level of protection.
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Although an index or indexes will affect the index options values, the index options do not directly participate in any stock or equity investments and are not a direct investment in an index. The indexes are price return indexes, not total return indexes. This means that the index options do not receive any dividends payable on these securities.
Diversifying allocations within a registered index-linked annuity does not ensure a positive performance credit.
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Our index options are like choosing between scenic routes and highways, each offering a unique risk-return trade-off to help address market volatility. Whether you're feeling adventurous or cautious, you can find a path to help suit your financial goals and objectives. So how can a RILA help get you to your destination? Making progress on your road trip is like accumulating growth in an annuity. Each mile you travel brings you closer to your final stop. Each opportunity to earn a positive performance credit or growth potential in your annuity helps bring you closer to your financial goals for retirement.
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You could experience a loss during a term if the index declines more than the level of downside protection of the buffer or for negative returns within the floor. You may not be able to participate fully in a market recovery due to cap, participation rate or trigger rate limits on positive index returns in subsequent terms. Negative returns in excess of the buffer will reduce the contract value.
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There are three ways to receive positive performance credits depending on your index option.
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You could experience a loss during a term if the index declines more than the level of downside protection of the buffer or for negative returns within the floor. Negative returns in excess of the buffer or within the floor will reduce the contract value.
Deductions for applicable contract charges and costs may result in a loss of principal or previously earned performance credits and will not receive a performance credit on the next Term End Date.
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If the index return is positive, you have the potential to receive a performance credit. One, equal to the index return up to the cap. Two, equal to a predetermined trigger rate if the index return is greater than or equal to 0% or within the buffer, depending on the crediting method. Or three, equal to the index return multiplied by a participation rate if the index option is uncapped.
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Participation rates do not apply to uncapped I-year term index options.
You may not be able to participate fully in a market recovery for prior losses due to cap, participation rate, or trigger rate limits on positive index returns in subsequent terms.
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But what about protection? Helping mitigate risk with a RILA is similar to preparing for and protecting yourself from detours or unpredictable weather on a road trip. Index options can help shield your RILA contract from market ups and downs by offering varying levels of protection. Index options do this through index strategies, which absorb all or a certain percentage of negative index returns. There are three ways index strategies absorb loss. One, a floor that absorbs market loss below the floor. Two, a buffer that absorbs market loss within the buffer. It's important to note that you'll receive negative performance credits for negative index returns beyond the buffer or within the floor. The third way is to select 100% protection options where all market loss is absorbed.
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You could experience a loss during a term if the index declines more than the level of downside protection of the buffer or for negative returns within the floor. Negative returns in excess of the buffer or within the floor will reduce the contract value.
Deductions for applicable contract charges and costs may result in a loss of principal or previously earned performance credits and will not receive a performance credit on the next Term End Date.
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We just talked about levels of protection from loss, but what about the potential to help protect your gains? Our innovative performance lock feature can act like cruise control along your route, allowing you the opportunity to lock in potential gains and help limit losses on each index option during the term, helping ensure you stay on track toward your retirement goals.
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By executing a Performance Lock, the locked index option will no longer participate in any potential index gains or losses or get the daily adjustment for the rest of the index year, or get a performance credit.
Executing a Performance Lock may result in receiving less than what the performance credit would have been had a Performance Lock not been exercised. We will not provide advice or notification regarding whether a Performance Lock or Early Reallocation (also known as "get back in") should be executed, the optimal time to do so, or if a Performance Lock or Early Reallocation is exercised at a suboptimal time. We are not responsible for any losses related to executing a Performance Lock or Early Reallocation. Early Reallocation rates received may be less than the Early Reallocation rates that become available later in the index year, or the renewal rates available on the next Index Anniversary.
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No matter your destination, consider making an Allianz RILA part of your journey. Talk to your financial professional about how you can customize Allianz RILAs in your overall portfolio to help fit your needs. It's your retirement journey. Make it the one you want with help from Allianz.
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NOTE THAT RILAS ARE SUBJECT TO INVESTMENT RISK, including possible loss of principal. Investment returns and principal value will fluctuate with market conditions so that contract value, upon distribution, may be worth more or less than the original cost.
This material must be preceded or accompanied by a current prospectus for registered index-linked annuities (RILAs) and any applicable consumer materials. 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(s). The prospectuses contain details on investment objectives, risks, fees, and expenses, as well as other information about the RILA, index options, and any available variable option(s), which you should carefully consider. Please read the prospectuses thoroughly before sending money.
Executing a Performance Lock may result in receiving less than what the performance credit would have been had a Performance Lock not been exercised. We will not provide advice or notification regarding whether a Performance Lock or Early Reallocation (also known as "get back in") should be executed, the optimal time to do so, or if a Performance Lock or Early Reallocation is exercised at a suboptimal time. We are not responsible for any losses related to executing a Performance Lock or Early Reallocation. Early Reallocation rates received may be less than the Early Reallocation rates that become available later in the index year, or the renewal rates available on the next Index Anniversary.
Withdrawals will reduce contract values (including any cash value) and the value of any potential protection benefits. Withdrawals taken within the period stated in the prospectus will be subject to a withdrawal charge or a market value adjustment (MVA), depending on the product. All withdrawals are subject to ordinary income tax and, if taken prior to age 59½, may be subject to a 10% federal additional tax.
Guarantees are backed solely by the financial strength and claims-paying ability of the issuing insurance company and do not apply to the performance of the variable subaccount(s), 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 North America (Allianz) and distributed by its affiliate, Allianz Life Financial Services, LLC, member FINRA, 5701 Golden Hills Drive, Minneapolis, MN 55416-1297. 800.542.5427 www.allianzlife.com
This content does not apply in the state of New York.
Product and feature availability may vary by state and broker/dealer.
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