How Index Advantage Income ADV® works

Allianz Index Advantage Income ADV® Variable Annuity offers lifetime income with a new balance of performance potential and a level of protection, designed to help your assets work harder when it's time to start taking income. It includes a choice between two death benefits (one optional, for an additional fee) during the accumulation phase, multiple innovative index strategies, and an income benefit (for an additional fee) which provides a choice between consistent, level income, or increasing income potential (for an additional fee) to help meet your needs.

Contract options

Index Advantage Income ADV® provides multiple index options, which are the combination of a crediting method, also called an index strategy, the index, the time period for measuring Index Performance (term), and a 10% or 20% buffer or a -10% floor. An allocation to the index options is not a purchase of shares of any stock or index fund or a direct investment in an index. No single index option consistently delivers the most return under all market conditions.

Your contract has a 0.25% annual product fee calculated as a percentage of the charge base, which is the contract value on the preceding quarterly contract anniversary, adjusted for subsequent purchase payments and withdrawals. Refer to the product brochure for more information on definitions of terms.

Index Options

MULTI-YEAR TERM STRATEGIES:

Index Performance Strategy: 6-Year Term with a 10% buffer
Index Performance Strategy: 3-Year Term with a 10% buffer
Index Performance Strategy: 3-Year Term with a 20% buffer

  • A longer term provides the greatest performance potential
  • Provides a level of protection with a buffer that absorbs a certain percentage of negative index performance
  • These strategies, also with a Participation Rate, may perform best in a longer period of market growth with a level of protection from large index losses

    Index Performance Strategy: Multi-Year Term details

1-YEAR TERM STRATEGIES:

Index Performance Strategy

  • Provides greater performance potential, based on a cap, among 1-year term strategies
  • Provides a level of protection with a buffer that absorbs the first 10% of negative index performance
  • This strategy may perform best in a strong market with protection from smaller index losses

    Index Performance Strategy: 1-Year Term details

Index Precision Strategy

  • Offers the same level of protection and 10% buffer as the Index Performance Strategy
  • Credits an annual predetermined Precision Rate if the change in the annual index value is zero or positive
  • This strategy may perform best in a low growth environment with protection from smaller index losses

    Index Precision Strategy details

Index Guard Strategy

  • Offers upside potential that may be matched or exceeded only by the Index Performance Strategy
  • Provides a level of protection with a floor which means you assume the first 10% negative index loss and no more
  • This strategy may perform best in a strong market with protection from large index losses

    Index Guard Strategy details

Index Protection Strategy with cap and Index Protection Strategy with Declared Protection Strategy Credit (DPSC)

Once income payments begin, allocations are limited to the Index Protection Strategy with DPSC or Index Protection Strategy with cap.

Issue age and minimum

You must be between the ages of 0-80 in order to purchase Index Advantage Income ADV®.

The minimum initial purchase payment is $5,000 for qualified and nonqualified contracts. Minimum subsequent purchase payment is $501,2,3 and maximum purchase payment is $3,000,000; larger cases require approval.

Rates

For more information on current caps, Precision Rates, and DPSCs, please consult your financial professional or click on the link below.

View current rates for Index Advantage Income ADV®

Allocation options

You’ll need to work with your financial professional to design an investment portfolio that aligns with your long-term retirement goals.

Indexes available with the 1-year term strategies: Index Performance Strategy, Index Guard Strategy, Index Precision Strategy, Index Protection Strategy with cap, and Index Protection Strategy with DPSC:

S&P 500® Index
Russell 2000® Index
Nasdaq-100® Index
EURO STOXX 50®
iShares® MSCI Emerging Markets ETF

3-year and 6-year Term Index Options:
S&P 500® Index
Russell 2000® Index

These unmanaged indexes are not intended to represent specific mutual funds. Individual results may vary according to transaction costs and taxes. Investors cannot invest directly in an index. Availability restrictions may apply to inforce contracts. Please refer to the prospectus for additional details.

Income benefit

Beginning at age 45, Index Advantage Income ADV® provides a guaranteed income percentage increase in each of your Lifetime Income Percentages for each year you wait before beginning income payments after a minimum waiting period of one index year. When it’s time to start receiving income, the amount you receive is determined by your current contract value and one of two income payment options to suit your income needs. You can choose between Level Income (consistent, dependable income for life) or Increasing Income (guaranteed income for life – plus an opportunity for payment increases).4

The Income Benefit rider fee is 0.70% accrued daily and deducted on each quarterly contract anniversary, calculated as a percentage of the charge base. The Income Benefit is automatically included in the contract at issue and cannot be added to a contract after issue.

Income Multiplier Benefit

After a minimum wait period of five contract years,5 this automatically included benefit allows you to withdraw up to twiced your annual maximum income payment (the income multiplier factor) if you can’t perform at least two of the six Activities of Daily Living (eating, bathing, getting dressed, toileting, transferring, and continence) or if you become confined to a qualified hospital, nursing facility, or assisted living facility for at least 90 days in a consecutive 120-day period. Refer to the prospectus for more details on the Income Multiplier Benefit.

Market value adjustment (MVA)

An increase or decrease to contract value based on changes in interest rates if within seven Index Years of the establishment of an Annual Contribution Amount you take a withdrawal, begin Annuity Payments, or if we pay a death benefit. We establish Annual Contribution Amounts on the Index Effective Date and subsequent Index Anniversaries. We base each Annual Contribution Amount on Purchase Payments adjusted for withdrawals. We do not apply an MVA to MVA-Free Withdrawals, to amounts we withdraw for Contract fees and expenses, or to amounts that you choose to have us deduct from this contract to pay advisory fees. MVA-Free Withdrawals include Income Payments, withdrawals you take under the free withdrawal privilege, and RMD payments you take under our minimum distribution program. The maximum MVA is +/- 10% of the contract value if you take a full withdrawal, begin Annuity Payments, or if we pay a death benefit. On a partial withdrawal, the maximum MVA is +/- 10% of the amount withdrawn. Refer to the prospectus for more details on the MVA.

Access your money

All withdrawals are subject to ordinary income tax and, if taken prior to age 59½, may be subject to a 10% federal additional tax. If you need access to your money, you can withdraw up to 10% of your purchase payments each contract year without any MVA applied. Any unused portion does not carry from one year to the next. On a full withdrawal, the free withdrawal privilege is not available and amounts previously withdrawn under the free withdrawal privilege may be subject to an MVA as described in the prospectus. All withdrawals are subject to ordinary income tax and, if taken prior to age 59½, may be subject to a 10% federal additional tax. Transfers to index options are allowed on every Term End Date. After a Term Start Date, you cannot transfer into an established multi-year term Index Option until the Term End Date; instead we will add this transfer to a new multi-year term Index Option with a new Term Start Date.

Annuity payout options

You have several options for your annuity payout:

  • Guaranteed period
  • Life
  • Life with a guaranteed period
  • Joint and survivor
  • Joint and 2/3 survivor

Standard contract features

  • Required minimum distribution program

Death benefit

You can choose between two death benefit options, both available only during the accumulation phase upon the first death of an owner named at issue. The Traditional Death Benefit is the greater of the contract value (less final product and rider fees and any applicable contract maintenance charges), cash value (contract value less final product and rider fees and any applicable contract maintenance charge, and any MVA), or total purchase payments adjusted for withdrawals. The Maximum Anniversary Value Death Benefit available for issue age 0-75 (optional for an additional 0.20% rider fee, accrued daily and deducted on each quarterly contract anniversary, calculated as a percentage of the charge base) is the greater of contract value, cash value, or Maximum Anniversary Value (highest contract value on any Index Anniversary prior to age 91 adjusted for subsequent purchase payments and withdrawals). Changing ownership on the contract can reduce or eliminate these death benefits.

Current MVA reference rate: 5.39 % as of 3/30/2023

Uses the yield of the Bloomberg US Long Corporate Bond Index

Historical MVA reference rates

Estimate your income potential

Now that you’ve seen how Index Advantage Income ADV® works, use our calculator to estimate how much initial annual retirement income you could potentially create.

Explore your options

See how a specified combination of allocations to the index strategies can help you target the accumulation potential and level of protection that may be appropriate for you.

InformationInformation

Ready to take the next step?

Because annuities are complex products, Index Advantage Income ADV® is available exclusively through licensed 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 registered representative to see if Index Advantage Income ADV® Variable Annuity is appropriate for you. Here are some questions they can help answer:

  1. Are your purchase payments protected?
  2. How can this product fit into my overall portfolio?
  3. Are there guarantees available with this product?
  4. What else should I consider that might impact my retirement?
tile-azl-woman-talking-to-people

1 Purchase payments can move into index options on the Index Effective Date or an Index Anniversary.

2 Allianz reserves the right to decline any or all purchase payments at any time on a nondiscriminatory basis.

3 Purchase payments received on days other than the Index Effective Date or an Index Anniversary will be placed in the AZL® Government Money Market Fund until the Index Effective Date or next Index Anniversary. At the Index Effective Date or Index Anniversary we will transfer those allocations in the AZL Government Money Market Fund to the applicable index options.

4 Assumes you don’t take more than the annual maximum income payment.

5 We establish the terms for the Income Multiplier Benefit wait period and the income multiplier factor on the date you sign your application, which may differ from the terms stated here. Current terms for new business contracts are included in the Income Benefit Term Sheet Supplement available at www.allianzlife.com/indexincomeadvrates.

You could experience a loss during an index period if the index declines more than the level of downside protection. You may not be able to participate fully in a market recovery due to the capped upside potential in subsequent index periods.

Investing in an index variable annuity may be the answer for part of your overall retirement strategy. An index variable annuity offers a unique combination of features, including market participation through a variety of allocation options; tax-deferred growth opportunities; and optional protection benefits that can provide certain income and beneficiary guarantees for an additional cost.

Index variable annuities are subject to investment risk, including loss of principal, and contract values typically fluctuate daily.

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.

Withdrawals will reduce the contract value and the value of any protection benefits. Withdrawals may be subject to a market value adjustment. All withdrawals are subject to ordinary income tax and, if taken prior to age 59½, may be subject to a 10% federal additional tax.

For more complete information about Allianz index variable annuities and any available variable options, call your financial professional or Allianz Life Financial Services, LLC at 800.624.0197 for a prospectus. The prospectuses contain details on investment objectives, risks, fees, and expenses, as well as other information about the index variable annuities and any available variable options, which you should carefully consider. Please read the prospectuses thoroughly before sending money.

Guarantees are backed by the financial strength and claims-paying ability of Allianz Life Insurance Company of North America (Allianz) and do not apply to the performance of the variable subaccounts, which will fluctuate with market conditions.

You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.

The Bloomberg US Long Corporate Bond Index measures the investment grade, fixed-rate, taxable corporate bond market whose maturity is 10 years or longer. It includes USD denominated securities publicly issued by US and non-US industrial, utility and financial issuers.

“Bloomberg®” and Bloomberg US Long Corporate Bond Index are service marks of Bloomberg Finance L.P. and its affiliates, including Bloomberg Index Services Limited (“BISL”), the administrator of the index (collectively, “Bloomberg”), and have been licensed for use for certain purposes by Allianz Life Insurance Company of North America (“Allianz”). Bloomberg is not affiliated with Allianz, and Bloomberg does not approve, endorse, review, or recommend the Allianz product. Bloomberg does not guarantee the timeliness, accurateness, or completeness of any data or information relating to the Allianz product.

Standard & Poor’s 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 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® Index 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 (the “Index”) is a trademark of Frank Russell Company (“Russell”) and has been licensed for use by Allianz Life Insurance Company of North America (“Allianz”). Allianz products are not in any way sponsored, endorsed, sold, or promoted by Russell or the London Stock Exchange Group companies (“LSEG”) (together the “Licensor Parties”) and none of the Licensor Parties make any claim, prediction, warranty, or representation whatsoever, expressly or impliedly, either as to (i) the results to be obtained from the use of the Index (upon which the Allianz product is based), (ii) the figure at which the Index is said to stand at any particular time on any particular day or otherwise, or (iii) the suitability of the Index for the purpose to which it is being put in connection with the Allianz product. None of the Licensor Parties have provided or will provide any financial or investment advice or recommendation in relation to the Index to Allianz or to its clients. The Index is calculated by Russell or its agent. None of the Licensor Parties shall be (a) liable (whether in negligence or otherwise) to any person for any error in the Index or (b) under any obligation to advise any person of any error therein.

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 EURO STOXX 50®, Europe's leading blue-chip index for the Eurozone, provides a blue-chip representation of supersector leaders in the Eurozone. The index covers 50 stocks from 11 Eurozone countries: Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal, and Spain.

The EURO STOXX 50® is the intellectual property (including registered trademarks) of STOXX Limited, Zurich, Switzerland (“STOXX”), Deutsche Börse Group, or their licensors, which is used under license. Allianz products are neither sponsored nor promoted, distributed or in any other manner supported by STOXX, Deutsche Börse Group or their licensors, research partners, or data providers and STOXX, Deutsche Börse Group and their licensors, research partners, or data providers do not give any warranty, and exclude any liability (whether in negligence or otherwise) with respect thereto generally or specifically in relation to any errors, omissions, or interruptions in the EURO STOXX 50 or its data.

The iShares® MSCI Emerging Markets ETF is distributed by BlackRock Investments, LLC. iShares®, BLACKROCK®, and the corresponding logos are registered trademarks of BlackRock, Inc. and its affiliates (“BlackRock”) and are used under license. These trademarks have been licensed for certain purposes by Allianz Life Insurance Company of North America ("Allianz") and its wholly-owned subsidiaries. Products offered by Allianz or its wholly-owned subsidiaries are not sponsored, endorsed, sold or promoted by BlackRock, and purchasers of such products do not acquire any interest in the iShares® MSCI Emerging Markets ETF nor enter into any relationship of any kind with BlackRock. BlackRock makes no representations or warranties, express or implied, to the owners of any products offered by Allianz or its wholly-owned subsidiaries or any member of the public, regarding the advisability of purchasing a product from Allianz or its wholly-owned subsidiaries. BlackRock has no obligation or liability for any errors, omissions, interruptions or use of the iShares MSCI Emerging Markets ETF or any data related thereto, or with the operation, marketing, trading or sale of any products or services offered by Allianz and its wholly-owned subsidiaries.

• 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, and are distributed by its affiliate, Allianz Life Financial Services, LLC, member FINRA, 5701 Golden Hills Drive, Minneapolis, MN 55416-1297. (L40538-IADV)

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