What Should I Do With My PremierDex Annuity?
The PremierDex™ Annuity from Allianz Life Insurance Company of North America was a popular equity-indexed, fixed annuity that provided principal protection, potential for indexed interest growth, and flexible income options. However, this product is no longer being sold. If you currently own a PremierDex Annuity, you may be wondering what steps to take next. Here’s a guide to help you understand your options and make informed decisions.
Understanding the PremierDex Annuity
Key Features of the PremierDex Annuity:
- Principal Protection: Your original investment is protected from market losses.
- Indexed Interest: Interest is credited based on monthly point-to-point changes in the S&P 500 and Nasdaq-100 indexes, subject to a monthly cap.
- High Water Value: The highest value reached on any contract anniversary is locked in, ensuring gains are preserved.
- 7-Year Vesting Schedule: Indexed gains are fully vested over seven years, starting at 0% in the first year and increasing by 15% annually.
- Tax-Deferred Growth: The annuity grows tax-deferred, meaning you won’t owe taxes on any gains until you start making withdrawals.
- Flexible Payout Options: You can choose from several income options, including lifetime income, fixed-period installments, and joint survivor payments.
- Death Benefit: A death benefit is payable to your beneficiaries, ensuring that the greater of your total premiums paid or the cash surrender value is passed on without probate delays.
Options for Your PremierDex Annuity
Since the PremierDex Annuity is no longer available for new purchases, your primary considerations should focus on how to manage your current annuity. Here are a few options:
1. Keep the Annuity and Continue Earning Interest
If you are satisfied with the performance of your PremierDex Annuity, you can choose to keep it. Since the annuity offers principal protection and potential indexed interest, it may still serve your retirement goals effectively.
2. Start Taking Income
If you’ve held the annuity for at least five years, you can begin receiving income without incurring surrender charges. You can select from multiple payout options, including:
- Interest-Only Payments
- Installments for a Guaranteed Period (10 to 30 years)
- Lifetime Income Payments
- Joint and Survivor Payments
3. Withdraw the Full Value After Seven Years
Once you’ve passed the 7-year surrender charge period, you can withdraw the full accumulation value without penalties. This may be a good option if you need a lump sum for a significant expense or if you want to reinvest the funds.
4. Consider Replacing Your Annuity
Since the PremierDex Annuity is no longer being sold, there may be newer annuities on the market with better features, higher participation rates, or more flexible options. Replacing your current annuity could help you:
- Increase your potential for growth.
- Access more competitive withdrawal benefits.
- Take advantage of modern features like Guaranteed Lifetime Withdrawal Benefits (GLWBs).
Note: Before replacing your annuity, it’s essential to consider potential surrender charges, market value adjustments, and tax implications.
Need Help? Contact The Annuity Expert
If you need help managing your PremierDex Annuity, have questions about your options, or are considering replacing it with a new annuity, we’re here to assist you. At The Annuity Expert, we specialize in helping individuals make the most of their retirement savings.
Our services include:
- Answering your questions about existing annuities.
- Providing personalized annuity comparisons.
- Helping you find the best annuity options for your goals.
Contact us today to speak with one of our knowledgeable agents. Whether you’re looking to optimize your current annuity or explore new opportunities, we offer free, no-obligation consultations.
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