Exclusive Index Allocation Now Offered on Allianz Life Pro+ Fixed Index Universal Life Insurance Policy
March 25, 2014 by N/A
Popular Barclays US Dynamic Balance Index now available on innovative FIUL product
MINNEAPOLIS — Allianz Life Insurance Company of North America (Allianz Life) today announced the launch of a new index allocation on the Allianz Life Pro+® Fixed Index Universal Life (FIUL) Insurance Policy. Allianz Life Pro+ provides death benefit protection for beneficiaries, as well as the opportunity to build cash value through changes in a market index. The addition of the Barclays US Dynamic Balance Index, which is currently available exclusively to Allianz Life until 2015, provides new opportunities for Allianz Life Pro+ policies. The index also gives customers dynamic balance for their cash value accumulation because it changes based on market volatility.
“Now, Allianz Life Pro+ not only offers death benefit protection for our clients and their families, but it also provides additional options for cash value accumulation potential with the Barclays US Dynamic Balance Index,” said Allianz Life Senior Vice President of Life Insurance Sales, Jason Wellmann. “Allianz Life will continue to create innovative products that provide tax deferral, help address inflation and help build an overall retirement strategy.”
The death benefit, which is provided income-tax-free to beneficiaries, can address immediate needs that may include income replacement, a college funding strategy, paying down a mortgage or other debts, estate tax coverage, final expenses, and business succession. In addition to the death benefit, Allianz Life Pro+ provides the policyholder access to the available cash value income-tax-free via policy loans and withdrawals1.
Index Allocations
The Barclays US Dynamic Balance Index provides balance by shifting weight daily between the S&P 500® Index and the Barclays Capital U.S. Aggregate Bond Index based on realized market volatility. Available on Allianz Life Pro+ policies in 46 states, clients who choose this new index allocation option will have uncapped indexed interest potential with two participation rate choices. Clients can choose to have a 140% participation rate with a 0% floor2 or, a 100% participation rate with a 2% floor3.
In addition to the new index allocation on the Allianz Life Pro+ policy, clients have a choice of other index allocations. These are based on the performance of the S&P 500® Index or a blended index – comprised of the Dow Jones Industrial Average (35%), Barclays Capital U.S. Aggregate Bond Index (35%), EURO STOXX 50® Index (20%), and Russell 2000® (10%). Clients also have the choice of allocating part or all of their cash value in a fixed interest account as an alternative to having the potential to earn indexed interest through the index allocation options. All allocations can be changed each policy anniversary.
With a built-in annual reset feature, any indexed interest credited is locked in each year and can never be lost due to market volatility, meaning the policy’s cash value is guaranteed to never decrease due to negative index changes. Although, certain fees and expenses will reduce cash value.
Indexed interest is calculated based on the positive changes in a market index and one of the crediting methods. There are various crediting methods available based on the client’s indexing goals. The Barclays US Dynamic Balance Index is only available with the annual point-to-point crediting method. Another crediting method, a trigger method launched in 2013, determines potential indexed interest by tracking changes in the index from one policy anniversary to the next. This trigger crediting method is only available on the S&P 500® index allocation. Currently, the trigger method provides the opportunity for clients to earn 8.5% credited interest annually on their policy when the index experiences flat or positive performance.
Any change greater than or equal to zero will result in 8.5% (the Trigger Interest Rate) credited interest to the policy, which is subject to change on an annual basis, and guaranteed not to go below 2.50%. If the result is negative (less than zero), 0% will be credited to the policy. In years when the index return exceeds the Trigger Interest Rate, the potential credited interest would be capped at 8.5%.
Additional advantages of Allianz Life Pro+ include:
- Built-in Chronic Illness Accelerated Benefit Rider4 – Clients can access a portion of their death benefit if they become chronically ill. This feature is built-in and added to the policy at issue, and can help clients prepare financially should they become chronically ill.
- Additional Term Rider – Offers a more cost-effective option for additional death benefit protection.
- Tax advantages, including income-tax-free death benefit to beneficiaries, potential to build cash value on a tax-deferred basis, and the opportunity to take policy loans from the available cash value that are income-tax-free while the policy remains in force1.
- Optional Inflation Protection Rider that helps loan amounts address the effects of inflation, which is available at an additional cost (based on age, gender, risk class and death benefit) at the time it is exercised. There is no additional cost if the rider is not exercised.
- Flexible premium payments to help meet financial goals. Premiums can be paid at any time and in any amount (subject to some limits), as long as policy expenses and cost coverage are met.
- Policy loan options1 – including a 5.0% guaranteed participating loan interest rate – that can help supplement retirement income, supplemental college funding, financial emergencies or business succession planning. The 5.0% participating loan rate charged is guaranteed for the life of the policy (loan rate will not fluctuate from year-to-year)5, and your policy can still have the opportunity to receive indexed interest when you take a participating loan.
Keep in mind that most life insurance policies require health underwriting and, in some cases, financial underwriting. For more information on Allianz Life Pro+, visit www.allianzlife.com.
1 Policy loans and withdrawals will reduce available cash values and death benefits, and may cause the policy to lapse or affect any guarantees against lapse. Additional premium payments may be required to keep the policy in force. In the event of a lapse, outstanding policy loans in excess of un-recovered cost basis will be subject to ordinary income tax. Tax laws are subject to change. You should consult a tax professional.
2 Participation rate is guaranteed at issue and on each policy anniversary and will never be less than 20%. 0% floor may not be available in all states.
3 Participation rate is guaranteed at issue and on each policy anniversary and will not be less than 15%. Floor is guaranteed at issue and on each policy anniversary and will never be less than 1%.
4 Subject to certain age and underwriting requirements, and is available at an additional cost at the time the rider is exercised. Not available in all states.
5 When accessing policy loans, it’s important to consider that the available cash value and death benefit will be proportionately reduced, and that the loans may be taxable if the policy lapses or is surrendered. You should always consider the potential tax implications of talking policy loans and discuss them with your tax professional.
Although an external index may affect your interest credited, the contract does not directly participate in any equity or fixed income investments. You are not buying shares in an index.
Guarantees are backed by the financial strength and claims-paying ability of the issuing company.
Contract P54350 is issued by Allianz Life Insurance Company of North America.
Product and feature availability may vary by state.
The Barclays Capital U.S. Aggregate Bond Index is comprised of U.S. investment-grade, fixed-rate bond market securities, including government agency, corporate, and mortgage-backed securities. The Barclays US Dynamic Balance Index is comprised of the Barclays Capital U.S. Aggregate Bond Index and the S&P 500® and shifts weighting daily between them based on realized market volatility.
Allianz products are not sponsored, endorsed, sold, or promoted by Barclays Capital. Barclays Capital makes no representation or warranty, express or implied, to the owners of Allianz products or any member of the public regarding the advisability of investing in securities generally or in Allianz products particularly or the ability of the Barclays Capital Indices, including without limitation, the Barclays Capital U.S. Aggregate Bond Index and Barclays US Dynamic Balance Index, to track general bond market performance. Barclays Capital’s only relationship to Allianz Life Insurance Company of North America and its affiliates (“Allianz”) is the licensing of the Barclays Capital U.S. Aggregate Bond Index and Barclays US Dynamic Balance Index which is determined, composed, and calculated by Barclays Capital without regard to Allianz or Allianz products. Barclays Capital has no obligation to take the needs of Allianz or the owners of Allianz products into consideration in determining, composing or calculating the Barclays Capital U.S. Aggregate Bond Index and Barclays US Dynamic Balance Index. Barclays Capital is not responsible for and has not participated in the determination of the timing of, prices of, or quantities of Allianz products to be issued or in the determination or calculation of the equation by which Allianz products are to be converted into cash. Barclays Capital has no obligation or liability in connection with the administration, marketing, or trading of Allianz products.
BARCLAYS CAPITAL DOES NOT GUARANTEE THE QUALITY, ACCURACY AND/OR THE COMPLETENESS OF THE BARCLAYS CAPITAL INDICES, OR ANY DATA INCLUDED THEREIN, OR OTHERWISE OBTAINED BY ALLIANZ, OWNERS OF ALLIANZ PRODUCTS, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE BARCLAYS CAPITAL INDICES, INCLUDING WITHOUT LIMITATION, THE BARCLAYS CAPITAL U.S. AGGREGATE BOND INDEX AND BARCLAYS US DYNAMIC BALANCE INDEX, IN CONNECTION WITH THE RIGHTS LICENSED HEREUNDER OR FOR ANY OTHER USE. BARCLAYS CAPITAL MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND HEREBY EXPRESSLY DISCLAIMS ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE BARCLAYS CAPITAL INDICES, INCLUDING WITHOUT LIMITATION, THE BARCLAYS CAPITAL U.S. AGGREGATE BOND INDEX AND BARCLAYS US DYNAMIC BALANCE INDEX, OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL BARCLAYS CAPITAL HAVE ANY LIABILITY FOR ANY SPECIAL, PUNITIVE, INDIRECT, OR CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS), EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES.
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. S&P marks are trademarks of S&P and Dow Jones marks 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® Index (“the Index”) and Dow Jones Industrial AverageSM (“the 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 any of their respective affiliates (collectively, “S&P Dow Jones Indices”). S&P Dow Jones Indices make no representation or warranty, express or implied, to the owners of the Allianz products or any member of the public regarding the advisability of investments generally or in Allianz products particularly or the ability of the Index and Average to track general market performance. S&P Dow Jones Indices’ only relationship to Allianz with respect to the Index and Average is the licensing of the Index and Average and certain trademarks, service marks, and/or trade names of S&P Dow Jones Indices and/or its third-party licensors. The Index and Average are determined, composed, and calculated by S&P Dow Jones Indices without regard to Allianz or the products. S&P Dow Jones Indices have no obligation to take the needs of Allianz or the owners of the products into consideration in determining, composing, or calculating the Index and Average. S&P Dow Jones Indices are not responsible for and have not 31 (R-12/2013) participated in the design, development, pricing, and operation of the products, including the calculation of any interest payments or any other values credited to the products. S&P Dow Jones Indices have no obligation or liability in connection with the administration, marketing, or trading of products. There is no assurance that investment products based on the Index and Average will accurately track index performance or provide positive investment returns. S&P Dow Jones Indices LLC and its subsidiaries are not investment advisors. Inclusion of a security or futures contract within an index is not a recommendation by S&P Dow Jones Indices to buy, sell, or hold such security or futures contract, nor is it considered to be investment advice. Notwithstanding the foregoing, CME Group Inc. and its affiliates may independently issue and/or sponsor financial products unrelated to products currently being issued by Allianz, but which may be similar to and competitive with Allianz products. In addition, CME Group Inc., an indirect minority owner of S&P Dow Jones Indices LLC, and its affiliates may trade financial products which are linked to the performance of the Index and Average. It is possible that this trading activity will affect the value of the products.
S&P DOW JONES INDICES DO NOT GUARANTEE THE ADEQUACY, ACCURACY, TIMELINESS, AND/OR THE COMPLETENESS OF THE INDEX AND AVERAGE OR ANY DATA RELATED THERETO OR ANY COMMUNICATION, INCLUDING BUT NOT LIMITED TO, ORAL OR WRITTEN COMMUNICATION (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT THERETO. S&P DOW JONES INDICES SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS, OR DELAYS THEREIN. S&P DOW JONES INDICES MAKE NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIM ALL WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE OR AS TO RESULTS TO BE OBTAINED BY ALLIANZ, OWNERS OF THE PRODUCTS, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE INDEX AND AVERAGE OR WITH RESPECT TO ANY DATA RELATED THERETO. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL S&P DOW JONES INDICES BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME, OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE. THERE ARE NO THIRD-PARTY BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN S&P DOW JONES INDICES AND ALLIANZ OTHER THAN THE LICENSORS OF S&P DOW JONES INDICES.
The EURO STOXX 50® Index, 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 12 Eurozone countries: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, and Spain. The EURO STOXX 50 is the intellectual property (including registered trademarks) of STOXX Limited, Zurich, Switzerland. Allianz products based on the Index are in no way sponsored, endorsed, sold, or promoted by STOXX and shall not have any liability with respect thereto.
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. 35 (R-12/2013) stocks. The Russell 2000 is constructed to provide a comprehensive and unbiased smallcap barometer and is completely reconstituted annually to ensure larger stocks do not affect the performance and characteristics of the true small-cap index. Russell 2000 is a registered service mark of Frank Russell Company.
About Allianz Life
Allianz Life Insurance Company of North America, one of FORTUNE’s 100 Best Companies to Work For in 2014, has been keeping its promises since 1896. Today, it carries on that tradition, helping Americans achieve their retirement income and protection goals with a variety of annuities and life insurance products. As a leading provider of fixed index annuities, Allianz Life is part of Allianz SE, a global leader in the financial services industry with 142,000 employees worldwide. More than 78 million private and corporate customers rely on Allianz knowledge, global reach, and capital strength to help them make the most of financial opportunities.
Allianz Life Insurance Company of North America offers insurance and annuities in all states except New York. In New York, products are issued by Allianz Life Insurance Company of New York.
