What You Need to Know Before You Trust Allianz With Your Financial Future
Allianz has been in business since 1890 and is one of the largest and oldest insurance companies in the world. In the United States, they operate through Allianz Life Insurance Company of North America, headquartered in Minneapolis, Minnesota. They’re a well-capitalized insurer with strong financial ratings and decades of experience designing insurance and annuity products for Americans planning for financial security, legacy protection, and retirement income.
Our Professional Opinion
Allianz is a great insurance company, but most of its annuities are not our first choice. Allianz Life Insurance Company of North America has an A+ (Superior) rating from AM Best, which is well above our A− minimum. We are comfortable with the company’s financial strength; our concerns are with how many of its annuities grow and calculate future income.
What We Like
- Financial strength: Allianz is a great insurance company with a strong ability to meet its obligations.
- Lifetime income options: Some contracts can provide guaranteed income for life without requiring you to give up access to your remaining account value.
- Immediate income can be competitive: We would consider an Allianz annuity when income starts soon and its guaranteed payout compares well with other strong insurers.
What We Don’t Like
- Future income can depend on performance: Some income benefits grow based on interest the annuity actually earns. If you plan to start income years from now, we prefer comparing a rider that guarantees how your future income grows.
- Complicated indexes: Many strategies use engineered indexes that can be harder to understand. We generally prefer familiar indexes such as the S&P 500.
- Renewal terms can change: Allianz can lower caps or participation rates on some strategies, which can reduce future growth potential while your money remains committed.
- Bonuses can be misleading: A bonus added to an income calculation is not necessarily money you can withdraw or leave to your family.
If you already own an Allianz annuity, don’t assume you should replace it. Compare its guaranteed income, beneficiary benefits, and actual surrender value with the alternatives first.
Explore our individual Allianz annuity reviews using the links below to see what we like, what we don’t like, and which products may be worth considering.
Allianz Complaints
Most Allianz annuities are performance-based products, meaning the interest you earn depends on the performance of market indexes.
One of our biggest complaints about Allianz is how it structures its index crediting strategies. Allianz typically offers more upside potential through engineered or manufactured indexes with limited actual performance histories, while providing less upside potential through traditional, well-established indexes such as the S&P 500, Nasdaq 100, and Dow Jones Industrial Average.
Another major complaint is Allianz’s history of lowering cap rates and participation rates. These are the two primary factors that determine how much interest an annuity owner can earn each year. When Allianz lowers these rates at renewal, it reduces the contract’s future growth potential, regardless of how well the underlying index performs.
Where this becomes particularly problematic is with Allianz’s guaranteed lifetime withdrawal benefits (GLWBs).
Many Allianz income riders determine your future retirement income based on the interest credited to the annuity. In other words, your future lifetime income depends heavily on how well those indexes perform.
If the engineered or manufactured indexes don’t perform as well as projected in the original sales illustration, your actual retirement income could be substantially lower than what you were led to expect when purchasing the annuity.
This is a prime example of overpromising and underdelivering. Here’s a real complaint we’ve received about owning an Allianz annuity:
“I have recently turned 70 years old, and I am deeply distressed about my Allianz annuities, which comprise the bulk of my retirement funds. As a result, I have felt incredibly constrained in the early years of my retirement (the past 3 years). Here is the basic picture:
In 2016, my financial advisor (with whom I no longer work and against whom I have filed a complaint with FINRA) invested the bulk of my other retirement funds — approximately $558,000 out of a total portfolio of roughly $870,000, or almost 65% of my entire funds — in six separate Allianz 222 fixed index annuity accounts. I was far too uneducated and unsophisticated an investor to realize that investing such a large proportion of my retirement savings this way was a huge mistake. I did not really understand what an annuity was, nor did I realize that the financial advisor, despite presenting himself as a fiduciary, made commissions off of investing my funds in these products.
Each of these annuity contracts has a maturity date of 10 years, four of which were completed this past April and two will be completed later this month, July 2026. Together, these funds now have an accumulation value of $664,000 (as opposed to the higher “protected income value,” which I can only realize if I take lifetime income withdrawals of a maximum of 5% per year upon the maturity of the contracts). Thus, they have realized an average annual return of approximately 2.2% (accumulation value) over the course of the past nine years – not even keeping pace with inflation rates. By contrast, had the funds been invested in a retirement income index fund, I likely would have seen yields of 10-15%.
Because the annuity surrender charges seemed prohibitive, and also because I realized the necessity of maximizing my investment by allowing as much as possible to qualify for the higher “protected income value,” this investment has been largely illiquid to date. (Note: I did make one $15,000 withdrawal from two different annuity accounts in 2022, without penalty, but have tried to leave the funds otherwise untouched until their 10-year anniversary.) It has made my income stream very constrained over the past several years since I have stopped working.
I contacted Allianz by phone on several occasions earlier this year to talk about turning on the “protected income value” stream this year, so I could finally start generating some income. I learned that once I turned 70 years old, I could withdraw 5.5% of the value of the fund (as opposed to 5% if I was less than 70 years old). So when four of my contracts hit their anniversary in April, I decided to wait until my birthday in early July to ask for the income of 5.5% from these four accounts. When I called to do so last week, they told me that I cannot, in fact, make such a withdrawal since I did not do so within 21 days of the contract anniversary. Nowhere in the annual statements, nor in my phone conversations with Allianz, is this 21-day period mentioned.“
Allianz Products: What They Offer and Why It Matters
Allianz’s core product offerings include:
- Fixed Index Annuities (FIAs) – These annuities protect your principal from market losses while offering growth potential linked to a stock market index. Some contracts include guaranteed lifetime income through a GLWB (Guaranteed Lifetime Withdrawal Benefit) rider.
- Registered Index-Linked Annuities (RILAs) – RILAs offer more market exposure with some downside risk and potential for higher growth.
- Variable Annuities – These allow direct market investment with higher risk and higher reward potential.
- Immediate Annuities – Provide guaranteed income starting immediately, often used in retirement or settlement situations.
- Long-Term Care Annuities – Hybrid annuities that combine tax-deferred growth with enhanced benefits for long-term care expenses.
- Life Insurance – Allianz sells a limited lineup of permanent life insurance policies for wealth transfer and estate planning.
Allianz does not offer term life insurance or health insurance in the U.S.
Compare Allianz Whole Life Insurance Against 25+ Competitors
In the News
Why You Must Compare Interest Rates and Income Payouts First
Insurance companies are not all the same. Each annuity provider offers different rates, income payout factors, and crediting strategies. Two contracts with similar features can provide vastly different outcomes based on their:
- Participation rates, caps, and spreads (in fixed index annuities)
- Income payout percentages tied to age and deferral period (in GLWBs)
- 1-Year Fixed Account rates, which can act as a stable-growth option when the index performance is poor
- Fee structures, which affect your growth and income potential
Even if Allianz offers strong guarantees and a good reputation, that doesn’t automatically make them the best choice for your specific situation. You may find another insurer offers higher income or more efficient accumulation options.
Compare Allianz Annuity Income Payout Against 25+ Competitors
Pros and Cons of Allianz
Pros:
- Over 130 years in business and among the most recognized global insurance brands
- Strong financial ratings (A+ from A.M. Best, AA from S&P, Aa3 from Moody’s)
- Offers a range of annuity types, including fixed index, variable, and RILAs
- GLWB income riders are available for lifetime income without annuitizing
- Indexed annuities with competitive crediting options for principal protection and growth
Cons:
- Not all products offer the highest income payouts compared to other top carriers
- Some proprietary indexes may lack transparency or meaningful long-term performance history
- Their product lineup focuses more on annuities than life insurance or other insurance products
- Income riders cost extra, and some riders may include fees that reduce account growth
Who Needs Allianz Insurance and Annuities?
You may benefit from Allianz if you:
- Want a guaranteed income for life from an annuity without giving up control over your money
- Are seeking growth opportunities tied to indexes while protecting against market losses
- Prefer to work with a company that has a long-standing global track record and strong credit ratings
- Need a tax-deferred way to accumulate retirement savings with some liquidity flexibility
You may want to consider other insurers if you:
- Prioritize highest income payouts over brand reputation
- Want more traditional life insurance or term life coverage options
- Prefer annuities with no rider fees or simpler crediting structures
- Are uncomfortable with complex proprietary index options in annuity contracts
Other Insurance That Complements Allianz Annuities
If you’re considering an Allianz annuity with a GLWB, pairing it with a low-cost term or permanent life insurance policy can help protect your principal for your heirs. You may also want to consider:
- Medicare Supplement Insurance – To reduce out-of-pocket healthcare costs in retirement
- Long-Term Care Insurance – If you don’t choose a long-term care annuity, consider standalone coverage
- Final Expense Insurance – For covering burial and final costs without tapping into your annuity
Where Do Annuities From Allianz Fit In?
- Allianz annuities can be funded with non-qualified savings, IRA rollovers, Roth IRA transfers, or 401(k) rollovers.
- They offer tax-deferred growth regardless of funding source.
- Their FIAs include a 1-Year Fixed Account, which allows you to earn declared interest if you want to avoid index exposure for a year.
Our Allianz Annuity Reviews
- Allianz 222® Annuity
- Allianz 360 Fixed Index Annuity
- Allianz Accumulation Advantage Fixed Index Annuity
- Allianz Benefit Control Annuity
- Allianz Core Income 7® Annuity With Core Income Benefit Rider
- Allianz Essential Income 7 Fixed Index Annuity
- Allianz Index Advantage+ Variable Annuity
- Endurance Plus Annuity
- MasterDex Plus Annuity
- MasterDex X Annuity
- PowerDex Elite Annuity
- PremierDex Annuity
- Pro V1 Annuity
Bottom Line: Should You Choose Allianz?
Allianz is a reliable insurance company that can offer strong protection and guaranteed lifetime income solutions. However, their annuity rates and income payouts may not always be the most competitive in the market. While their history and financial strength are compelling, it’s critical to compare their annuities against other carriers side by side to avoid leaving money on the table.
Contact The Annuity Expert for Free Quotes. If you’re thinking about Allianz or want to compare it with other top-tier annuity providers, contact The Annuity Expert. We’ll give you unbiased recommendations, show you income comparisons, and help you select the best product for your needs. Get your free quotes today.
Book A Free Consultation
Get help from a licensed financial professional. This service is free of charge.
Let Us Answer Your Questions
Not quite ready for a meeting, but you have a question that needs answering? We’re happy to help. Leave an inquiry below, and one of our staff will respond via email.
Questions From Our Readers
What are the problems with annuities like the Allianz 222 and Allianz ABC?
Annuities like the Allianz 222 and ABC are heavily marketed because they show large projected income streams, but these figures are often misunderstood. The income projections are based on a phantom value called the income base, which is only used to calculate guaranteed lifetime withdrawals. It’s not money you can access or walk away with—it’s not your cash value.
The Allianz 222 offers bonuses and interest enhancements, but only if you don’t touch the money for 10 years and use it solely for lifetime income. The contract value itself may grow slowly, and you’ll likely see modest gains if you ever want to walk away or take a lump sum.
The ABC adds features like loyalty bonuses and income rider payouts, but these come with annual rider fees that reduce your real account value over time. Many people underestimate how much those fees affect long-term performance, especially if index returns are flat or capped.
Both products often rely on engineered indexes with complex crediting methods. These indexes aren’t traditional benchmarks like the S&P 500, and their performance can be unpredictable. Renewal caps and participation rates can also be lowered in later years, reducing upside potential.
The biggest drawbacks include long surrender periods (often 10+ years), lack of liquidity, and inflated marketing illustrations that assume strong index returns. These annuities can work for someone who wants lifetime income after a long deferral period—but they’re not ideal for anyone who may need flexibility, access to cash, or who doesn’t fully understand the difference between income value and real value.
They’re not scams, but they’re overly complex and often oversold. You’re better off comparing them to a simpler FIA with a no-fee GLWB and access to traditional indexes. Always read the fine print and know exactly what you’re giving up to get the bonus.