What Should I Do With My MasterDex X Annuity?
The Allianz MasterDex X® Annuity was once a popular fixed index annuity offered by Allianz Life Insurance Company of North America. While this product is no longer being sold, existing contract owners may still benefit from its features and guarantees. If you currently own a MasterDex X annuity and are unsure of what to do with it, this guide will help you understand your options and how to make the most of your investment.
Key Features of the MasterDex X Annuity
1. Indexed Interest Potential
The MasterDex X annuity offers potential interest growth based on the performance of market indices, including:
- S&P 500
- Nasdaq-100®
- EURO STOXX 50
- A blended index combining various markets
Your interest is credited using one of three methods:
- Monthly Average
- Annual Point-to-Point
- Monthly Sum
The annuity guarantees that your credited interest will never be less than zero, meaning you’ll never lose money due to a market downturn.
2. Premium Bonus
A bonus was offered on all premium payments made during the first three contract years. This bonus becomes fully vested after 10 years, providing additional value if you hold the annuity for the long term.
3. Guaranteed Minimum Value
Even if the market underperforms, the MasterDex X annuity guarantees a minimum value of 87.5% of total premiums paid, minus withdrawals, with a minimum interest rate of 1.95% annually.
4. Surrender Charges
Surrender charges started at 10% and decrease over time. After 10 years, there are no surrender charges, allowing you to withdraw the full accumulation value without penalties.
5. Withdrawal Options
- Free Withdrawals: Each year, you can withdraw up to 10% of your paid premiums without incurring surrender charges.
- Emergency Access: Special provisions allow additional penalty-free withdrawals in case of unemployment or qualified medical expenses.
6. Income Options
You have several options for receiving income from your annuity:
- Interest-Only Payments for up to five years
- Fixed-Period Payments over 10 to 30 years
- Lifetime Income with or without a guaranteed period
- Joint and Survivor Income for couples
7. Death Benefit
The annuity includes a guaranteed death benefit for your beneficiaries, which can be paid as a lump sum or as income payments. An optional Death Benefit Rider may provide additional funds to help cover income taxes.
What Are My Options?
Since the MasterDex X annuity is no longer being sold, it’s important to understand your choices for managing your existing contract:
1. Keep Your Annuity
If your financial goals haven’t changed and you’re satisfied with the annuity’s performance, you can continue holding it to benefit from its guaranteed features, tax-deferred growth, and lifetime income options.
2. Begin Taking Income
You can start receiving income from your annuity by selecting one of the payout options offered. Depending on your age and financial needs, you may choose lifetime income, fixed-period payments, or another available option.
3. Withdraw Funds
If you need access to your money, you can withdraw up to 10% of your premiums annually without surrender charges. After 10 years, you can withdraw the full accumulation value without penalties.
4. Replace Your Annuity
If your financial situation or goals have changed, you might consider replacing your MasterDex X annuity with a new annuity that better suits your current needs. A new annuity may offer:
- Higher interest crediting potential
- Additional features, such as enhanced income riders
- Better flexibility for withdrawals
How We Can Help
At The Annuity Expert, we specialize in helping clients manage their annuities and make informed financial decisions. If you have questions about your MasterDex X annuity or are considering replacing it with a new annuity, we’re here to help. Our team can:
- Review your current annuity contract
- Explain your income and withdrawal options
- Compare your annuity with other available products
- Help you find a new annuity if you decide to replace your existing one
Our goal is to ensure you have the best solution for your retirement needs.
Contact Us
For assistance with your MasterDex X annuity, contact us at The Annuity Expert. Whether you need help understanding your contract, have questions about income options, or want to explore new annuity products, we’re here to guide you every step of the way.
Get started today – book a call with us for a free, no-obligation consultation!
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.