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 with a participation rate crediting methods, you have the ability to manually lock in an index value on any of your individual indexed interest 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 an index value, 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. Learn more about the details and business rules that apply.

If I request a manual index Lock, when will the index value be locked?
If you request an index lock prior to 4:00 p.m. Eastern time on a business day, the index will lock at the ending index value of that day. If you request the lock after 4:00 p.m. Eastern time 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 manual index lock request?
Your index lock request can only be canceled by calling our service team at 800.950.1962 before 4:00 p.m. Eastern time on the day the index value will be locked.

Auto Lock
As another option alongside our manual Index Lock capability, Auto Lock lets you set upper and lower index interest rate percentage targets during each crediting period. The index interest rate percentage target set will be equal to the amount of indexed interest earned after the participation rate is applied.

If the end-of-day index interest rate percentage meets or exceeds your upper target during a given crediting period, Auto Lock will automatically lock in that index value until the end of that crediting period. You also have the option to choose auto-renewal. This means the set target will continue from year to year for the length of the contract, unless it is changed or cancelled.

If a lower target is set and the end-of-day index interest rate percentage is less than or equal to your lower target during a given crediting period, Auto Lock will automatically lock in that index value until the end of that crediting period.¹

You also have the flexibility to adjust their target index interest rate percentage – either up or down – as many times as you wish, as long as an Auto Lock hasn’t been activated during that crediting period.²

Please note: When setting targets, the upper target must be greater and the lower target must be less than the current index return for the crediting period. Upper and lower targets do not have to be set at the same time. Because Auto Locks are activated based on end-of-day index interest rate percentages, you may end up with less than your lower target and greater than your upper target.

Setting targets authorizes Allianz to automatically activate an Index Lock once the target is reached, based on the index interest rate percentage at the end of the business day. Targets need to be renewed after each crediting period unless auto-renewal is active.

Activating Index Lock manually will cancel any current targets you have set for the current crediting period. If you decide to activate Index Lock manually – or if neither target has been reached at the end of the current crediting period – you will need to set new targets for the next crediting period unless auto-renewal is active.

Learn more about Index Lock and Auto Lock and the details and business rules that apply.

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 current annual Core Income Benefit rider charge is 1.25% of the contract's accumulation value and will be guaranteed for the first contract year. After the first contract year, the rider charge can change, but can only be increased when specific criteria are met and will never be greater than the maximum rider charge percentage of 1.25%. 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.

Level Income gives you predictable, dependable income for life. This option 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.

Increasing Income also provides income for life – plus an opportunity for payment increases. This option 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.