Allianz MasterDex 5 Plus is a flexible premium deferred fixed index annuity. It can offer you guarantees while it helps you reach your financial goals. With Allianz MasterDex 5 Plus:
- Each year, you may receive indexed interest based on changes in an external market index, subject to a cap or spread.
- You earn a bonus on the premium received in the first five contract years.
- Any indexed interest is locked in once a year and can never be lost due to market index declines.
- After 10 contract years, you can take your annuity’s full accumulation value.
A solid retirement plan considers both phases of retirement:
- accumulation – when you’re saving for retirement
- and distribution, when you start receiving retirement income.
A fixed index annuity can help you prepare for both.
Buying an annuity is one way to build your retirement assets.
Annuities offer principal protection and potential interest to help you accumulate money for your retirement.
The money in your annuity can grow tax-deferred, which may help your savings accumulate faster.
Annuities also offer valuable guarantees and death benefit protection.
If you surrender your contract, you’ll receive at least a guaranteed minimum value.
And because annuities are insurance products, they can give you the reassurance of knowing that your beneficiaries will get a death benefit if you pass away before you start receiving annuity payments.
Finally, annuities give you several income options once you’re ready:
- You can receive income as a single payment,
- as regular payments over a specific period of time,
- or even as income for life.
These are just a few of the reasons why many people rely on annuities to help them achieve their long-term financial goals.
Fixed index annuities offer additional benefits
In addition to the benefits we’ve just discussed, a fixed index annuity has the potential to earn interest based on changes in an external index.
This is different from traditional fixed annuities, in which credit interest calculated at a fixed rate set in the contract.
Because the chosen index varies daily and is not predictable, the interest you earn through a fixed index annuity could be more or less than the interest from a traditional fixed annuity.
Many fixed index annuities also let you allocate premium to a traditional fixed interest option, where interest is credited at a fixed rate.
Regardless of whether you choose a fixed interest, indexed interest, or a combination of both, an annuity’s benefits can make it a valuable part of your overall retirement strategy.
Allianz MasterDex 5 Plus Benefits and Features
Protection
Allianz MasterDex 5 Plus protects your principal and bonus from index declines.
Your principal and bonus are never subject to market index risk.
A downturn in the market index(es) cannot reduce your contract values.
We guarantee it.
Allianz MasterDex 5 Plus locks in any annual indexed interest automatically.
Once any indexed interest, fixed interest, or bonus is credited to your annuity’s values, it can never be lost due to market index changes.
Accumulation
Allianz MasterDex 5 Plus lets you benefit when the market index is heading up.
When the market is headed up, the value of your Allianz MasterDex 5 Plus can also increase.
Your interest is subject, however, to a cap or spread.
Allianz MasterDex 5 Plus offers you choices.
The Allianz MasterDex 5 Plus gives you several choices for calculating the potential indexed interest for your contract:
- monthly sum,
- monthly average,
- or annual point-to-point.
Flexibility
If you need cash, Allianz MasterDex 5 Plus gives you access.
After the contract anniversary following your most recent premium payment, you may annually withdraw up to 10% of your total premiums paid – without a surrender charge.
After 10 years it’s your choice: stay, or take the money.
Anytime after your 10th contract year, you can leave your money in the annuity so it continues to benefit from potential indexed/fixed interest and tax deferral.
You also have the option to take your annuity’s full accumulation value (minus any loans or withdrawals).
Allianz MasterDex 5 Plus Annuity basics
Allianz MasterDex 5 Plus is a fixed index annuity that offers a choice of fixed interest and/or indexed interest options.
Indexed interest is based on changes in these indexes:
- S&P 500®
- Nasdaq-100®
- FTSE 100
- A blended index that credits interest based on the performance of the Barclays Capital U.S. Aggregate Bond Index (35%), Dow Jones Industrial Average (35%), FTSE 100 Index (20%), and Russell 2000® Index (10%)
Allianz MasterDex 5 Plus offers a premium bonus.
The bonus and any interest it has earned will be applied only to your accumulation value.
So, to receive the bonus, you will need to hold your contract for at least 10 years, after which time your entire accumulation value is available as a lump sum or you can hold your contract for at least five years and take an annuity payout for a minimum of 10 years.
You can add money at any time during the first five contract years and receive a bonus on it.
Additional premium payments made during a contract year, and any bonus, are credited to your contract’s interim interest account and earn fixed interest until the following contract anniversary when the value in the interim interest allocation is transferred to your selected allocations.
Choose from a variety of options to receive steady, predictable income.
Several annuity payment options are available to you.
If you keep your contract for at least five years, you can choose to receive annuity payments, which are the payments we make back to you over a period of time, based on your accumulation value in any of the following ways:
Interest-only
You have the option to receive interest-only annuity payments for five years.
Interest will be paid as earned based on the amount of your accumulation value.
After five years of interest-only payments, you can take your full accumulation value as a lump-sum payment.
Installments for a guaranteed period
You can choose to receive annuity payments in equal installments for a period from 10 to 30 years.
Each installment would consist of part principal and part interest.
Installments for life
You have the option to receive annuity payments in equal installments for the rest of your life.
Payments end upon your death.
Installments for life with a guaranteed period
You can choose to receive annuity payments in equal installments for the rest of your life.
Upon your death, annuity payments will be paid to your beneficiary for the balance of the guaranteed period, the same way as you previously selected.
Installments for a selected amount
You may receive annuity payments in equal installments of an amount that you choose, as long as the payments last for at least 10 years.
Payments continue until your accumulation value is gone.
Joint and survivor
You can have equal installments paid until your death, then continue to be paid to your survivor.
In this case, you can select 100%, 2/3, or ½ of your payment amount to be paid to your survivor until his/her death.
Payout Factors
The payout rate used to determine the annuity payments depends on the age of your contract, the age of the annuitant and the payout option selected. The interest rate in payout is guaranteed to be at least 1%.
Allianz MasterDex 5 Plus offers you a death benefit.
The Allianz MasterDex 5 Plus Annuity provides a death benefit payable to your named beneficiary.
Regardless of whether your beneficiary(ies) select to receive the death benefit as a lump-sum payment, or as annuity income payments, they will receive the greater of the contract’s accumulation value or guaranteed minimum value.
This applies only to contracts that have not yet been annuitized.
The death benefit, paid to a properly designated beneficiary (other than the estate), will pass without the costs and delays of probate.
Allianz MasterDex 5 Plus gives you several ways to access your money.
Take free withdrawals.
In each contract year that you haven’t made a premium payment, you can take up to 10% of your contract’s paid premium in one or more free withdrawals with no surrender charge applied.
If, within the same contract year of a free withdrawal, the contract is surrendered or additional premium is added, we will retroactively apply a surrender charge to any withdrawals taken that contract year.
This could result in a loss of bonus, indexed interest and fixed interest, and a partial loss of principal.
Withdrawals will decrease the value of the contract and its death benefit.
A free withdrawal is eligible to receive indexed interest at the end of the contract year.
The amount of indexed interest is based on the applicable indexed interest rate and the length of time during that contract year that the free withdrawal amount remained in the allocation.
Take a contract loan.
A contract loan may be taken for up to 50% of the cash surrender value (maximum of ,000).
The loan interest rate is 7.4% annually in advance.
Loans are not available with IRA, SEP, or some other qualified plans.
Unpaid loans will be treated as partial surrenders, subject to surrender charges, and will decrease the value of the contract and its death benefit.
Take required minimum distributions.
Required minimum distributions from a tax-qualified plan (IRA, SEP, etc.) will qualify as free withdrawals if taken annually in December or monthly throughout the year.
Contract values and the amount available for other free withdrawals throughout the contract year will be reduced by the amount of the distribution(s).
The money you take out may be taxable.
Your contract values grow tax-deferred.
However, any distributions from your contract, including free withdrawals, partial withdrawals, loans, and required minimum distributions, may be taxable as ordinary income.
Because annuities are meant to be used for long-term purposes, if you are under age 59½ when a distribution is taken, it may be subject to a 10% federal additional tax.
The Allianz MasterDex 5 Plus Annuity offers a combination of insurance guarantees and benefits.
It may be right for you if:
- You want a long-term vehicle offering potential tax-deferred interest on your retirement assets.
- You want the opportunity for indexed interest based on changes in recognized market indexes.
- You want to protect your principal, bonus, locked-in indexed interest, and fixed interest if the market declines.
- You want flexible annuity payment options.
- You want a death benefit for your beneficiaries before annuity payments begin.
- You would appreciate receiving a bonus to help you accumulate money for retirement.
