Combines long-term growth potential with shorter-term control through a performance-lock feature
MINNEAPOLIS – May 4, 2020 – To help clients address risk that market volatility can have on retirement security, Allianz Life Insurance Company of North America (Allianz Life®) has announced a new Index Performance Strategy with a 3-year term, available on Allianz Index Advantage® variable annuities with the S&P 500® Index and Russell 2000® Index.
With the new strategy, if the index return is positive over the term, clients may receive a positive performance credit equal to that index’s return, up to the cap. If an index return is negative over the term, clients still have a level of protection through the 20% buffer, but may receive a negative performance credit if the loss is greater than the buffer. Losses in excess of the buffer will reduce the contract value, and buffers cannot change after they are established for a contract.
A Healthy New Strategy
“The 3-year term can be ideal for the extreme market environment we are currently in,” said Eric Thomes, chief distribution officer, Allianz Life. “It’s designed to help people benefit from a long-term strategy that provides performance potential with a level of protection from index losses.”
The new index strategy also allows for added flexibility in the short-term with a performance lock feature. This allows clients to lock in an index option value once in between index anniversaries, so the value would not fluctuate for the remainder of the term. On the next index anniversary, clients can reallocate and start a new term.
“Over half of Americans say they are worried the market hasn’t bottomed out yet*, so they may be looking for ways to stem the losses” said Thomes. “But it’s important to be able to still take advantage of any potential gains whenever the market begins to bounce back.”
About Allianz Life Insurance Company of North America
Allianz Life Insurance Company of North America, one of the FORTUNE 100 Best Companies to Work For® in 2020, has been keeping its promises since 1896 by helping Americans achieve their retirement income and protection goals with a variety of annuity and life insurance products. In 2019, Allianz Life provided additional value to its policyholders via distributions of more than $10.4 billion. As a leading provider of fixed index annuities, Allianz Life is part of Allianz SE, a global leader in the financial services industry with over 147,000 employees in more than 70 countries. Allianz Life is a proud sponsor of Allianz Field in St. Paul, Minnesota, home of Major League Soccer’s Minnesota United.
*Allianz Life conducted an online survey, the 2020 Q1 Allianz Life Quarterly Market Perceptions Study March 19-22, 2020 with a nationally representative sample of 1,003 respondents age 18+.
For more complete information about 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 variable annuity and variable options, which you should carefully consider. Please read the prospectuses thoroughly before sending money.