How Legacy by Design works

Help protect and enhance the financial legacy you leave to your beneficiaries.

Designed to protect and enhance your financial legacy, Allianz Legacy by DesignSM offers two companion annuities for a systematic and efficient way to help manage your unneeded required minimum distributions (RMDs) and avoid potential RMD penalties. The portion of these distributions from the qualified annuity you don’t need for current living expenses can be directed into the companion nonqualified annuity, which includes a Death Benefit Bonus for your beneficiaries.

Start by funding your Allianz Legacy PlannerSM Annuity contract with your qualified money.1 When it’s time, RMDs are withdrawn from your Legacy Planner, penalty-free. Since the RMDs are fully taxable, we give you the option to specify a portion to be withheld for taxes. You may also elect to receive a portion or all of the RMD sent to you. Any remaining amount not disbursed to you can transfer to your Allianz Legacy PlusSM Annuity.

Legacy Plus is designed to help you enhance your legacy for your beneficiaries. RMDs that you elect to move to Legacy Plus are immediately eligible for a Death Benefit Bonus of 25%, which can help offset the taxes you paid on your RMD and build more value for your beneficiaries.

Issue age

The issue ages are 0-80 and the minimum initial premium payment is $20,000 for Legacy Planner, which must be issued as an individual IRA or SEP IRA.

Bonus

Legacy Plus offers a Death Benefit Bonus designed to enhance the amount of money you pass on to your beneficiaries. RMDs that you elect to move to your Legacy Plus are immediately eligible for a Death Benefit Bonus of 25% of the accumulation value. This bonus is designed to help with the taxes you paid on your RMD, building more value for your beneficiaries.

The bonus is only eligible as a death benefit for beneficiaries and cannot be withdrawn or taken during the annuitant’s lifetime.

Rates

The participation rate for the annual point-to-point with a cap, annual point-to-point with a spread, and monthly sum crediting methods is 100% guaranteed for the life of the contract. This means we use the entire percentage of index change when we calculate the indexed interest rate. Caps 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 year. In other cases, we subtract a spread from the interest we credit. The participation rate for the annual point-to-point with a participation rate is declared annually.

Visit our Rates Page for current caps, participation rates, spreads, and interest rates which apply to both Legacy Planner and Legacy Plus.

Allocation options

Both Legacy Planner and Legacy Plus offer a variety of indexes and crediting methods to choose from, as well as a fixed interest allocation. This way, you have the potential to grow your annuity up to and through retirement.

Monthly sum: S&P 500® Index, Nasdaq-100® Index, Russell 2000® Index

Annual point-to-point with cap: S&P 500® Index, Nasdaq-100® Index, Russell 2000 Index, BlackRock iBLD Claria® Index, Bloomberg US Dynamic Balance Index II, PIMCO Tactical Balanced Index

Annual point-to-point with spread: BlackRock iBLD Claria® Index, Bloomberg US Dynamic Balance Index II, PIMCO Tactical Balanced Index

Annual point-to-point with a participation rate: Bloomberg US Dynamic Balance II ER Index, PIMCO Tactical Balanced ER Index, BlackRock iBLD Claria® ER Index

Income or accumulation benefits

Because Legacy Planner and Legacy Plus are fixed index annuities, they also offer standard annuity income options if you decide to take income from one or both of your contracts. You can choose to receive annuity payments based on your choice of several annuity options. If you use a standard annuitization option after five contract years, your annuity payments are based on your accumulation value. These annuity options can have certain tax advantages.

Note: By choosing an annuity income option, you remove the choice of a lump-sum death benefit for your beneficiaries and you forfeit the 25% Death Benefit Bonus available to your beneficiaries on your Legacy Plus Annuity. Once annuity payments start, you can no longer make additional RMD transfers into the Legacy Plus contract.

Access your money

If you need to access your money, Legacy by Design gives you several options.

You can take withdrawals from Legacy Plus at any time, penalty-free. However, withdrawals will reduce your contract’s accumulation value dollar for dollar and, proportionately, the Death Benefit Bonus.

RMDs are withdrawn from your Legacy Planner, penalty-free. Since the RMDs are fully taxable, we give you the option to specify a portion to be withheld for taxes. You may also elect to receive a portion or all of the RMD sent to you. Any remaining amount not disbursed to you transfers to your Legacy Plus.

Withdrawal charges and market value adjustments (MVAs) may apply if you take out more than your annual RMD from your Legacy Planner before the end of the withdrawal charge period.

Death benefit

Both Legacy Planner and Legacy Plus include a death benefit for designated beneficiaries prior to annuitization.

  • Legacy Planner is the greater of the accumulation value or guaranteed minimum value.
  • Legacy Plus is the greater of the accumulation value plus the 25% Death Benefit Bonus or guaranteed minimum value.

Current MVA reference rate: 2.52 % as of 10/18/2019

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

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Calculate your RMDs

Now that you’ve seen how Legacy by Design works, estimate your required minimum distributions (RMDs) with our handy calculator.
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Ready to take the next step?

Because annuities are complex products, Legacy by Design 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 Legacy by Design is appropriate for you. Here are some questions they can help answer:

  1. How are the annuity’s principal and any credited interest protected?
  2. How can this product provide income for life and assist with the rising cost of living?
  3. What backs up any guarantees available with this product?
  4. What else should I consider that might impact my retirement?
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Bonus annuities may include higher withdrawal charges, longer withdrawal charge periods, lower caps or participation rates, higher spreads, or other restrictions not included on nonbonus annuities.

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 is comprised of 500 stocks representing major U.S. industrial sectors. The Dow Jones Industrial Average is a popular indicator of the stock market based on the average closing prices of 30 active U.S. stocks representative of the overall economy.

S&P® is a registered trademark of Standard & Poor’s Financial Services LLC (“S&P”) and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”). These trademarks have 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 and Dow Jones®, Dow Jones Industrial Average, DJIA and The Dow are trademarks of Dow Jones. These trademarks have been sublicensed for certain purposes by Allianz Life Insurance Company of North America (“Allianz”). The S&P 500 and Dow Jones Industrial Average (DJIA) are products of S&P Dow Jones Indices LLC and/or its affiliates and have 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 BlackRock iBLD Claria® Index is comprised of an equity component, a bond component, and a cash component. It shifts weighting between them daily based on historical realized volatility of the components. Annually, BlackRock will set allocations to the ETFs within each of the equity component and the bond component. The equity component will be comprised of the following ETFs: iShares Russell 2000 ETF, iShares Core S&P 500 ETF, iShares MSCI EAFE ETF, iShares MSCI Emerging Markets ETF. The bond component will be comprised of the following ETFs: iShares 1-3 year Treasury Bond ETF, iShares 3-7 year Treasury Bond ETF, iShares 7-10 year Treasury Bond ETF. The cash component is represented by the 3 month LIBOR rate. The BlackRock iBLD Claria® ER Index is comprised of an equity component, a bond component, and a cash component. It shifts weighting between the components daily based on historical realized volatility of the components. The index tracks the return in excess of a benchmark rate. Annually, BlackRock will set allocations to the ETFs within each of the equity component and the bond component. The equity component will be comprised of the following ETFs: iShares Russell 2000 ETF, iShares Core S&P 500 ETF, iShares MSCI EAFE ETF, iShares MSCI Emerging Markets ETF. The bond component will be comprised of the following ETFs: iShares 1-3 year Treasury Bond ETF, iShares 3-7 year Treasury Bond ETF, iShares 7-10 year Treasury Bond ETF. The cash component is represented by the 3 month LIBOR rate.

The BlackRock iBLD Claria® Index and the BlackRock iBLD Claria® ER Index (the “Indices”) are products of BlackRock Index Services, LLC and have been licensed for use by Allianz Life Insurance Company of North America (“Allianz”). BlackRock®, BlackRock iBLD Claria® Index, BlackRock iBLD Claria® ER Index, and the corresponding logos are registered and unregistered trademarks of BlackRock. The Allianz product is not sponsored, endorsed, sold or promoted by BlackRock Index Services, LLC, BlackRock, Inc., or any of its affiliates, or any of their respective third party licensors (including the Indices calculation agent, as applicable) (collectively, “BlackRock”). BlackRock has no obligation or liability in connection with the administration or marketing of the Allianz product. BlackRock makes no representation or warranty, express or implied, to the owners of the Allianz product or any member of the public regarding the advisability of investing in the Allianz product or the ability of the Index to track general market performance. BlackRock does not guarantee the adequacy, accuracy, timeliness, and/or completeness of the Indices or any data or communication related thereto nor does it have any liability for any errors, omissions or interruptions of the Indices.

The Nasdaq-100 Index® includes 100 of the largest domestic and international non-financial securities listed on The Nasdaq Stock Market, based on capitalization. The Nasdaq-100®, Nasdaq-100 Index, Nasdaq®, and OMX® are registered trademarks of NASDAQ OMX Group, Inc. (which with its affiliates are 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 PIMCO Tactical Balanced Index is comprised of the S&P 500® Index, a bond component comprised of the PIMCO Synthetic Bond Index and a duration overlay, and cash, and shifts weighting between them daily based on historical realized volatility of the components. The PIMCO Synthetic Bond Index is comprised of a small number of derivative instruments designed to provide exposure to U.S. investment-grade and Treasury bond markets.

The “PIMCO Tactical Balanced Index” is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”) and Pacific Investment Management Company LLC (“PIMCO”), and has been licensed for use by Allianz Life Insurance Company of North America (“Allianz”). Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Allianz. PIMCO’s Trademark(s) are trademarks of PIMCO and have been licensed for use by SPDJI and Allianz. Allianz products are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, or PIMCO and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the PIMCO Tactical Balanced Index.

The PIMCO Tactical Balanced ER Index is comprised of the U.S. Equity Futures Custom Index, a bond component comprised of the PIMCO Synthetic Bond ER Index and a duration overlay, and shifts weighting between them daily based on historical realized volatility of the components. The U.S. Equity Futures Custom Index provides exposure to large cap U.S. stocks in excess of a benchmark rate. The PIMCO Synthetic Bond ER Index is comprised of a small number of derivative instruments designed to provide exposure to U.S. investment-grade and Treasury bond markets in excess of a benchmark rate.

The "PIMCO Tactical Balanced ER Index" (the "Index") is a rules-based index that tactically allocates across U.S. equity and fixed income markets using quantitative signals. The Index is a trademark of Pacific Investment Management Company LLC ("PIMCO") and has been licensed for use for certain purposes by Allianz Life Insurance Company of North America (the "Company" or “Allianz”) with respect to this Allianz product (the "Product"). The Index is the exclusive property of PIMCO and is made and compiled without regard to the needs, including, but not limited to, the suitability or appropriateness needs, as applicable, of the Company, the Product, or any Product owners. The Product is not sold, sponsored, endorsed or promoted by PIMCO or any other party involved in, or related to, making or compiling the Index.

Neither PIMCO nor any other party involved in, or related to, making or compiling the Index has any obligation to continue to provide the Index to the Company with respect to the Product. In the event that the Index is no longer available to the Product or Product owners, the Company may seek to replace the Index with another suitable index, although there can be no assurance that one will be available.

PIMCO disclaims all warranties, express or implied, including all warranties of merchantability or fitness for a particular purpose or use. PIMCO shall have no responsibility or liability with respect to the Product.

The Index is comprised of a number of constituents, some of which are owned by entities other than PIMCO. All disclaimers referenced in the Agreement relative to PIMCO also apply separately to those entities that are owners of the constituents of the Index.

• 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. (C64281-MVA-Q, C64281-NQ)

For financial professional use only – not for use with the public.

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