Allianz Life of New York Launches New Index Variable Annuity
July 31, 2014 by Business Wire
MINNEAPOLIS–(Business Wire)–Allianz Life Insurance Company of New York (Allianz Life® of NY) announced the launch of the Allianz Index AdvantageNew York® Variable Annuity, a new Index Variable Annuity (IVA) that offers the combination of traditional variable options with an index strategy. Allianz Index Advantage New York takes its place among the emerging breed of IVAs available in the New York market. This innovative new product offers a balance of growth potential and a level of downside protection with a built-in death benefit.
“Allianz Index Advantage New York gives customers an opportunity to build a solid retirement foundation by offering balance for their portfolio,” said Allianz Life Chief Distribution Officer Tom Burns. “Our IVA is a significant addition to the New York variable annuity market because it offers unique opportunities for growth and protection.”
A key feature of Allianz Index Advantage New York is the innovative Index Performance Strategy. This crediting method offers customers a level of asset protection for the principal investment while maintaining the potential for higher performance. The Index Performance Strategy also gives accumulation-focused customers the flexibility to pursue the accumulation strategy that best suits them each year whether there is positive or negative performance.
During a year of positive performance, the customer will earn a credit that is equal to the annual index return, up to the annual cap. The cap is subject to significant change annually on the Index Anniversary and will never be less than 1.50%. Caps can be different for each index allocation and can differ on new business and in-force contracts. If the index return is negative, a buffer will be used. A negative credit is applied only when the loss is greater than the specified buffer percentage. Losses in excess of the buffer will reduce the contract value. The buffer is established when the contract is issued and will never change. The current buffer is 10% for all index allocation options. Clients are not buying any bonds, shares of stock, or directly investing in an index.
Allianz Index Advantage New York appeals to investors seeking higher upside potential than is typically available in similar products. With this new IVA, customers have the opportunity for a greater return than traditional fixed index annuities by offering higher limits (or caps). For the current annual product fee of 1.25%, Allianz Index Advantage New York offers potential index results and market participation through its variable options for the customer, a level of asset protection, tax deferral and a built-in death benefit. The annual product fee is 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 withdrawals1.
For more complete information about Allianz Index Advantage New York Variable Annuity and the variable options, call Allianz Life Financial Services, LLC at 800.542.5427 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 your clients should carefully consider. Encourage your clients to read the prospectuses thoroughly before sending money.
1 Withdrawals will reduce the contract value and the value of any protection benefits. Additional withdrawals taken during the withdrawal charge period will be subject to a withdrawal charge. All withdrawals are subject to ordinary income tax and, if taken prior to age 59 ½, may be subject to a 10% federal additional tax.
Guarantees are backed by the financial strength and claims-paying ability of the issuing company and do not apply to the performance of the variable subaccounts, which will fluctuate with market conditions.
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 New York, One Chase Manhattan Plaza, 38th Floor, New York, NY 10005-1423, and distributed by its affiliate, Allianz Life Financial Services, LLC, member FINRA, 5701 Golden Hills Drive, Minneapolis, MN 55416-1297. www.allianzlife.com/new-york (Contract L40538-NY01)
Product and features are available only in New York, and may vary by broker/dealer.
About Allianz Life of NY
Allianz Life® of NY is a wholly owned subsidiary of Allianz Life Insurance Company of North America (“Allianz”), a Minnesota insurance company. Allianz is in turn a wholly owned subsidiary of Allianz of America, Inc (“AZOA”), a Delaware holding company. The Company is part of Allianz SE, a global financial group that serves over 78 million customers across 70 countries, and is the world’s 31st largest company (Fortune Global 500, July 2013) and second largest money manager (P&I / Towers Watson World 500, October 2013).
