How Core Income 7 works

If you're concerned about building an income foundation for the future – and also want to receive guaranteed income for life – Core Income 7® Annuity may be a good choice.

Core Income 7 Annuity provides the typical features of fixed index annuities – including principal protection from market downturns, the potential for tax-deferred growth, options for lifetime retirement income, and a death benefit for your beneficiaries.

While you’re saving for retirement, Core Income 7 offers:

  • simplified indexing with annual and 2-year point-to-point crediting, and
  • powerful indexed interest potential through index allocation options.

And when you’re ready to start receiving income, the Core Income 7 Annuity with its automatically issued Core Income Benefit rider (included at an additional cost):

  • gives you increasing lifetime withdrawal percentages every year until you begin withdrawals, and
  • guaranteed income for life through lifetime withdrawals.

Plus, Core Income 7 Annuity has a seven-year surrender charge period — so you can access the money in your contract without surrender charges after only seven years.

Issue age and minimum

You must be between the ages of 0-80 in order to purchase Core Income 7 Annuity.

The minimum initial premium payment is $10,000 for qualified and nonqualified money.

Rates

The participation rate is 100% for annual point-to-point with spread allocation options. This means we use the entire percentage of index change when we calculate the indexed interest rate. Caps or spreads would still apply. The cap is the maximum percentage of index change we use for a specified time period to determine how much interest we credit to your annuity in a given contract crediting period. A spread is the amount we subtract from the percentage of change calculated for an index to determine how much interest we credit to your annuity in a contract crediting period.

For annual point-to-point with a participation rate and 2-year point-to-point with a participation rate, we multiply the index change at the end of the crediting period by the participation rate to determine the indexed interest rate for the crediting period.

Call your Allianz financial professional for current caps, spreads, participation rates, and interest rates.

Allocation options

Annual point-to-point with a cap: S&P 500® Index, Nasdaq-100® Index, Russell 2000® Index, Bloomberg US Dynamic Balance Index II

Annual point-to-point with a spread: Bloomberg US Dynamic Balance Index II

Annual point-to-point with a participation rate: Bloomberg US Dynamic Balance II ER Index

2-year point-to-point with a participation rate: Bloomberg US Dynamic Balance II ER Index

A fixed interest allocation is also available.

Index lock

With both annual point-to-point and 2-year point-to-point crediting methods, you have the ability to lock in an index value on any of your individual indexed allocation(s) one time at any point during the crediting period. The indexed interest credit will be applied at the end of the crediting period based on the locked index value. If you choose to lock in a credited rate, the beginning index value for your next crediting period will be the index value at the end of the previous crediting period (not the chosen locked-in index value). The index value used to determine interest credited may be higher or lower than the index value at the time of request. See CSI-504 for full details and business rules.

If I request an index lock, when will the index value be locked?

If you request an index lock prior to 4:00 pm EST on a business day, the index will lock at the ending index value of that day. If you request the lock after 4:00 pm EST on a business day, the index will lock at the ending index value at the end of the following business day. Your locked index value is the index value at the end of the business day on the day the index is locked. A business day is defined as each day on which the New York Stock Exchange (NYSE) is open for trading. Our business day closes when regular trading on the NYSE closes.

Can I cancel my index lock request?

Your index lock request can only be cancelled by calling our service team at 800.950.1962 before 4:00 PM EST on the day the index value will be locked.

Income or accumulation benefits

The Core Income Benefit rider is included with the Core Income 7 Annuity for an additional charge. It offers increasing income withdrawal percentages (beginning at age 45) until lifetime withdrawals begin or annuitization is started. It also offers a choice of two lifetime income payment options: predictable payments and payments with the opportunity to increase. Once lifetime income withdrawals begin, access to penalty-free withdrawals is no longer available.

The annual cost of the Core Income Benefit rider is 1.05% of the accumulation value, deducted on a monthly basis from the accumulation value and the guaranteed minimum value (in most states). The rider charge will continue for the life of the contract even after lifetime income payments have begun.

Annual payout percentage increases apply to ages 45 and above. Lifetime benefit withdrawals cannot begin before age 50.

Access your money

With our penalty-free withdrawal option, after the first contract year, up to 10% of the contract’s premium paid can be withdrawn each contract year; maximum is cash surrender value.

Core Income 7 has a seven-year surrender charge period (8.5%, 8.0%, 7.0%, 6.0%, 5.0%, 4.0%, 3.0%, 0%). The surrender charge percentage will decrease 1/12 of 0.5% on each of the first 12 monthiversaries. On each subsequent monthiversary, the surrender charge will decrease by 1/12 of 1%. On day one of contract year 8, it will be zero.

Market Value Adjustment (MVA): If the contract is partially or fully surrendered (not including 10% free withdrawals and Required Minimum Distributions), it will be subject to an MVA during the surrender charge period. An MVA will also apply if the contract is annuitized prior to the sixth contract year or if annuity payments are taken over a period of less than 10 years.

The MVA reference rate is a component used to calculate the MVA. For additional information on MVAs and their calculation, see the contract Statement of Understanding.

MVA reference rate

Payout options

With the Core Income Benefit rider, beginning at age 45, the contract's lifetime withdrawal percentages will automatically increase each year until income payments begin. The base payment percentage is determined by your age at the time you purchase the annuity. Lifetime income withdrawals can begin as early as age 50.

Payout option 1 gives you predictable, dependable income for life. Income option 1 may be a good choice if you want the reassurance of knowing exactly how much income you'll receive, and if you want a guaranteed stream of income that you can't outlive.

Payout option 2 also provides income for life – plus an opportunity for payment increases. Income option 2 offers a smaller payment up front, but it has the potential to increase after each crediting period by the interest rate credited to your allocation options in your contract. After every crediting period, your annual maximum withdrawal amount (maximum income payment) will be recalculated to reflect the interest rate from selected allocations.

Death benefit

Your beneficiaries can receive the greatest of the full accumulation value, cumulative withdrawal amount, net premium, or the guaranteed minimum value as a lump sum or as annuity income payments over at least five years.

Current MVA reference rate: 2.50 % as of 12/8/2019

Uses the yield of the Bloomberg Barclays US Intermediate Corporate Bond Index.

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Ready to take the next step?

Because annuities are complex products, Core Income 7 is available exclusively through financial professionals. Ask your financial professional if it may be a good fit as part of your overall portfolio.

Questions to consider

Talk to your financial professional to see if Core Income 7 Annuity is appropriate for you. Here are some questions they can help answer:

  • How are the annuity’s principal and any credited interest protected?
  • How can this product provide income for life and assist with the rising cost of living?
  • What backs up any guarantees available with this product?
  • What else should I consider that might impact my retirement?
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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.

Any distributions are subject to ordinary income tax and, if taken prior to age 59½, a 10% federal additional tax.

Guarantees are backed by the financial strength and claims-paying ability of Allianz Life Insurance Company of North America.

The S&P 500® Index (S&P 500®) is comprised of 500 stocks representing major U.S. industrial sectors.

S&P® is a registered trademark of Standard & Poor’s Financial Services LLC (“S&P”). This trademark has been licensed for use by S&P Dow Jones Indices LLC and its affiliates. S&P® and S&P 500® are trademarks of S&P. These trademarks have been sublicensed for certain purposes by Allianz Life Insurance Company of North America (“Allianz”). The S&P 500 is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by Allianz. Allianz products are not sponsored, endorsed, sold, or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, or their respective affiliates and neither S&P Dow Jones Indices LLC, Dow Jones, S&P, or their respective affiliates make any representation regarding the advisability of investing in such product.

The Nasdaq-100 Index® includes 100 of the largest domestic and international non-financial securities listed on The NASDAQ Stock Market® based on market capitalization.

NASDAQ®, and Nasdaq-100 Index®, are registered trademarks of Nasdaq, Inc. (which with its affiliates is referred to as the “Corporations”) and are licensed for use by Allianz Life Insurance Company of North America. The Product(s) have not been passed on by the Corporations as to their legality or suitability. The Product(s) are not issued, endorsed, sold, or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE PRODUCT(S).

The Russell 2000® Index is an equity index that measures the performance of the 2,000 smallest companies in the Russell 3000® Index, which is made up of 3,000 of the biggest U.S. stocks. The Russell 2000 is constructed to provide a comprehensive and unbiased small-cap barometer and is completely reconstituted annually to ensure larger stocks do not affect the performance and characteristics of the true small-cap index.

The Russell 2000® Index is a trademark of Russell Investments and has been licensed for use by Allianz Life Insurance Company of North America. Allianz products are not sponsored, endorsed, sold or promoted by Russell Investments and Russell Investments makes no representation regarding the advisability of investing in Allianz products.

The Bloomberg US Dynamic Balance Index II is comprised of the Bloomberg Barclays US Aggregate RBI Series 1 Index and the S&P 500® Index and shifts weighting daily, up to 3%, between them based on realized market volatility. The Bloomberg Barclays US Aggregate RBI Series 1 Index is comprised of a portfolio of derivative instruments plus cash that are designed to track the Bloomberg Barclays US Aggregate Bond Index. The Bloomberg Barclays US Aggregate Bond Index is comprised of Bloomberg Barclays US investment-grade, fixed-rate bond market securities, including government agency, corporate, and mortgage-backed securities. The Bloomberg US Dynamic Balance II ER Index is comprised of the Bloomberg Barclays US Aggregate Custom RBI Unfunded Index and the Bloomberg US Equity Custom Futures ER Index and shifts weighting daily, up to 3%, between them based on realized market volatility. The Bloomberg Barclays US Aggregate Custom RBI Unfunded Index is comprised of a portfolio of derivative instruments that are designed to provide exposure to U.S. Investment-grade and Treasury bond markets in excess of a benchmark rate. The Bloomberg US Equity Custom Futures ER Index is designed to provide exposure to large-cap U.S. stocks in excess of a benchmark rate.

The Bloomberg US Dynamic Balance Index II (a “Bloomberg Index“) is the property of Bloomberg Index Services Limited and is derived and calculated based on the S&P 500 index under license from S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC) (“S&P Dow Jones Indices“). S&P® is a registered trademark of Standard & Poor's Financial Services LLC and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC. S&P 500® is a registered trademark of Standard & Poor's Financial Services LLC and has been licensed for use to Bloomberg Index Services Limited. Neither S&P Dow Jones Indices, its affiliates, nor their third party licensors sponsor or promote the Index and no such party shall have any liability in connection with the Bloomberg Index.

BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). BARCLAYS® is a trademark and service mark of Barclays Bank Plc (collectively with its affiliates, “Barclays”), used under license. Bloomberg or Bloomberg’s licensors, including Barclays as it relates to the Bloomberg Barclays Indices, own all proprietary rights in the Bloomberg US Dynamic Balance Index II and the Bloomberg Barclays Indices (collectively the “Indices”). Neither Bloomberg nor Barclays is affiliated with Allianz Life Insurance Company of North America (“Allianz”), and neither approves, endorses, reviews, or recommends the Allianz product. Neither Bloomberg nor Barclays guarantees the timeliness, accurateness or completeness of any data or information relating to the Indices, and neither shall be liable in any way to Allianz, investors in the Allianz product, or other third parties in respect of the use or accuracy of the Indices or any data included therein.

• 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. (C54370-MVA)

Product and feature availability may vary by state and broker/dealer.