New Indexing Strategy Positions Buffered VA for a Market Drop
January 13, 2018 by Cyril Tuohy
A new crediting method for buffered variable annuities is designed for a low-market-growth scenario with the possibility of a correction, a product expert with Allianz Life Insurance Co. of North America said.
The crediting method, which Allianz branded Index Precision Strategy, guarantees a rate of 7.25 percent, whether the market index remains flat or stays in positive territory, said Matthew Gray, senior vice president of product innovation at Allianz.
Market downside protection of up to 10 percent, a staple of many buffered variable annuities, is absorbed by the insurer.
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