Allianz Life Pro+ FIUL Policy Adds New Allianz True Balance Index
October 5, 2016 by Allianz Life Insurance Company of North America
MINNEAPOLIS, Oct. 4, 2016 – Allianz Life Insurance Company of North America (Allianz Life®) today announced the addition of the Allianz True BalanceSM index to its Allianz Life Pro+® Fixed Index Universal Life Insurance (FIUL) Policy. Along with helping agents provide income-tax-free death benefit protection for beneficiaries, Allianz Life Pro+ now offers an additional way to potentially accumulate cash value within the policy that leverages the company’s experience and expertise with indexing.
The Allianz True Balance index – one of a variety of index allocation options available with Allianz Life Pro+ – was created for those seeking a balance of equity and bond indexes that make up their allocation – 50% S&P 500® Index and 50% Barclays US Aggregate RBI® Series I Index. The new index provides a stable balance of two well-established benchmark indexes for the U.S. equities and U.S. bond markets. Other unique index allocation options include the Blended index, which may diversify risk and help smooth out market volatility, and the Barclays US Dynamic Balance Index II, which manages volatility by shifting between an equity and bond index.
The annual sum crediting method available with the Allianz True Balance Index is launching with a 200% guaranteed participation rate1 and 7% current cap2. This index allocation option is a strong value proposition for clients seeking accumulation potential.
“Because indexes perform differently in various environments, it’s important that people have the opportunity to diversify the index exposure within their FIUL policy,” said Jason Wellmann, senior vice president of Life Insurance Sales for Allianz Life. “The Allianz True Balance Index provides an innovative new method to achieve this diversification that gives policyholders the benefit of equal prominence of both bond and equity index performance.”
In addition to the new Allianz True Balance index, Allianz Life has new tools available to help financial professionals discuss the importance of life insurance with their clients. A short video available at allianzlife.com – “Life’s A Journey” – explores the many benefits of fixed index universal life insurance, including the death benefit, which is provided income-tax-free to beneficiaries, and other needs that can be addressed with an FIUL policy. Another new feature is an interactive life insurance calculator that can help clients determine how much coverage they may need via a series of simple questions.*
Launched in 2011, some advantages of Allianz Life Pro+ include:
- Tax advantages, including income-tax-free death benefit to beneficiaries, potential to build cash value on a tax-deferred basis, and policy loans from any available cash value accumulation that are income-tax-free while the policy remains in force.3
- Chronic Illness Accelerated Benefit Rider4 – Clients can accelerate a portion of their death benefit if they become chronically ill or cognitively impaired (under specific criteria). This feature is included with the policy at issue, and can help clients prepare financially should they become chronically ill.
- Premium Deposit Fund (PDF) Rider5 allows clients to fund the optional PDF Rider at issue with a single lump-sum amount, and have annual planned premiums automatically transferred from the PDF Rider to the life insurance policy.
- Cash value accumulation potential that can earn interest based on a variety of index allocations that include an exclusive blended index, the Barclays US Dynamic Balance Index II, and the S&P 500® Index for newly issued policies. A fixed interest allocation is also available. With the built-in annual reset feature, any indexed interest credited from positive index performance is locked in 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. Certain fees and expenses will reduce cash value.
- Policy loans and withdrawals4 – including a low 5% guaranteed indexed loan interest rate – that can help supplement retirement income, supplemental college funding, financial emergencies, or business succession planning and more. The annual 5% indexed loan rate is guaranteed for the life of the policy, and among some of the most competitive indexed loan rates available within the life insurance industry.
Keep in mind that most life insurance policies require health underwriting and financial underwriting. Life insurance involves certain fees and expenses. Individuals should discuss with their financial professional whether a life insurance policy meets their needs.
No single index or crediting method produces the best results in all market conditions. Although an external index may affect the interest credited, the policy does not directly participate in any equity or fixed income investments. Clients are not buying shares in an index.
*Information provided by the life insurance calculator is an estimate only and not an offer of insurance coverage. Please consult with your financial professional to determine the amount of life insurance protection that may be appropriate for you.
1Participation rate is declared at issue and guaranteed for the life of the policy, and may be changed on newly issued policies.
2Cap is subject to change on an annual basis but will never be less than the minimum guaranteed cap of 0.10%.
3 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 unrecovered cost basis will be subject to ordinary income tax. Tax laws are subject to change. You should consult a tax professional.
4 Subject to certain age and underwriting requirements, and available at an additional cost at the time the rider is exercised. Not available in all states.
5 Minimum number of planned premium transfers is three, and the maximum number of premium transfers is 10.
Guarantees are backed by the financial strength and claims-paying ability of the issuing company.
Contract P95472 is issued by Allianz Life Insurance Company of North America. Product and feature availability may vary by state and broker/dealer.
About Allianz Life Insurance Company of North America
Allianz Life Insurance Company of North America, one of FORTUNE’s 100 Best Companies to Work For in 2016, 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. In 2015, Allianz Life provided a total of $2.4 billion in benefit payments that supported policyholders’ financial objectives. 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 in more than 70 countries worldwide. More than 85 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.
