Is the Allianz Benefit Control Annuity Any Good?

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Our Allianz Benefit Control Annuity Review

The Allianz Benefit Control annuity is a fixed-indexed annuity offered by Allianz Life of North America. It is designed for conservative investors prioritizing safety and security in their retirement goals. The annuity’s performance is linked to selected market indexes, such as the S&P 500 or the Russell 2000. It offers the potential for gains based on positive changes in these indexes while protecting against market downturns. The annuity also provides various benefits, including flexible contributions, tax-deferred growth, and the option for guaranteed retirement income through annuitization or an income rider.

It is important to carefully consider the terms and features of the Allianz Benefit Control annuity before deciding, as surrender charges and market value adjustments may apply.

Key Takeaways:

  • The Allianz Benefit Control annuity is a fixed-indexed annuity for conservative investors.
  • It offers the potential for gains based on the performance of selected market indexes.
  • The annuity provides flexible contributions, tax-deferred growth, and retirement income options.
  • It is important to carefully consider surrender charges and market value adjustments.
  • The annuity can suit those seeking safety and security in their retirement goals.

What to Consider Before Investing in the Allianz Benefit Control Annuity

Before investing in the Allianz Benefit Control annuity, it is crucial to evaluate several important factors. Firstly, the annuity has a 10-year term, so investors should be comfortable committing their money for this duration.

Additionally, surrender charges are associated with excess withdrawals made before the term ends. Furthermore, early withdrawals might be subjected to a market value adjustment. Therefore, it is essential to assess whether there is a possibility of needing access to the invested funds during the annuity term.

Regarding returns, it is important to note that the Allianz Benefit Control annuity offers a fixed-income type of return, which differs from market-like returns. Based on the market conditions and the performance of the selected indexes, a realistic return for this annuity is estimated to be around 2-6% over the term.

It is highly advisable to comprehensively compare the Allianz Benefit Control annuity with other index annuities available in the market. Additionally, seeking independent advice from financial professionals is highly recommended to ensure informed decision-making.

Allianz Benefit Control Annuity Review

Who Should Consider the Allianz Benefit Control Annuity?

The Allianz Benefit Control annuity is an ideal investment option for conservative investors who prioritize their principal’s safety and seek an alternative to traditional fixed-income investments like bank CDs and bonds. With its stable and predictable returns, this annuity provides a reliable source of income, making it an attractive option for those who value security in their financial planning.

For conservative investors looking to diversify their portfolio, the Allianz Benefit Control annuity offers a compelling alternative to bonds. While bond yields are currently at historic lows, this annuity provides the potential for reasonable returns with tax-deferred growth. By investing in this annuity, conservative investors can enjoy the benefits of steady growth while minimizing the volatility associated with other investment options.

Furthermore, the Allianz Benefit Control annuity provides flexible contribution options, allowing investors to add money over time and customize their investment strategy. This feature appeals to individuals who want to gradually build their retirement savings and have control over their investment allocations. In addition, this annuity offers estate planning benefits such as avoiding probate and potential creditor protection, making it an excellent choice for long-term financial planning.

Allianz Benefit Control Annuity vs. Bonds

Allianz Benefit Control AnnuityBonds
Potential ReturnsReasonable returns with tax-deferred growthLower yields due to historically low interest rates
RiskLower yields due to historically low-interest ratesExposure to interest rate and credit risk
FlexibilityFlexible contribution options and investment allocationsFixed investment duration and limited flexibility
Estate Planning BenefitsAvoids probate and offers potential creditor protectionNo specific estate planning benefits

By choosing the Allianz Benefit Control annuity, conservative investors can enjoy stable and tax-efficient growth while having the flexibility to customize their investment strategy. With its attractive returns and estate planning advantages, this annuity offers a compelling alternative to traditional fixed-income investments like bonds.

Allianz Benefit Control Annuity

What We Like

  • Established Credibility: Allianz Benefit Control boasts a strong history since its founding in 1896, enhancing its trustworthiness. This is further bolstered by its high ratings from notable agencies: an A+ from A.M. Best, Aa3 from Moody’s, and AA from Standard & Poor’s.
  • Flexible Rider Options: The policy offers various rider options, providing customizable coverage to suit diverse needs.
  • Supportive Benefits for Confinement: Specific benefits are designed to assist policyholders confined to a nursing home, hospital, or assisted living facility for a significant period or those unable to perform at least two of the six activities of daily living (ADLs). This feature offers peace of mind and practical support in challenging times.

What We Don’t Like

  • Non-Lump Sum Bonus Withdrawal: Policyholders cannot withdraw the bonus in a lump sum, which may limit financial flexibility.
  • Complex Annuity Structure: The complexity of the annuity might be overwhelming or confusing for some, making it less accessible.
  • Performance-Based Lifetime Income Payouts: The reliance on performance for determining lifetime income payouts adds an element of uncertainty.
  • Use of Complicated Indexes: Allianz employs complex indexes, with limited use of common household indexes. This can impact the growth of an owner’s income in ways that might be difficult to predict or understand.

Our Recommendations

  • Seek Simpler Options: Given Allianz Benefit Control’s complexity and performance-based nature, we recommend prospective annuity buyers explore options with clearer, more straightforward terms.
  • Consider Better Guaranteed Income Riders: For those prioritizing stable, predictable income, it is advisable to look for annuities with stronger guaranteed income rider options. This ensures better protection of interests, especially for future financial planning.
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Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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