MasterDex X is a fixed index annuity that offers a premium bonus and a choice of fixed interest and/or indexed interest options.
The bonus will be credited on all premium received in the first three years.
10% of the bonus will become vested each contract anniversary until the beginning of the 11th contract year, when 100% will be vested.
You can add money at any time during the first three contract years and receive a bonus on it.
Additional premium payments made during a contract year, and bonus, are credited to your contract’s interim interest allocation and earn fixed interest until the following contract anniversary.
At that time your additional premium will be applied to your contract values, based on your current premium allocations.
Consider the MasterDex X because it offers:
- The potential for indexed interest based on changes in a market index
- A bonus on premium received in the first three years
- Access to your full contract value, including your bonus, as a lump sum – without surrender charges – after 10 years
- Free withdrawals of up to 10% based on your paid premium
- Flexible income options including a guaranteed minimum income for life
A prudent plan shouldn’t rely solely on future Social Security to pay for an individual’s retirement years.
One way to accumulate additional assets for retirement income is an annuity.
The money in an annuity has the potential to create an additional source of retirement income that can supplement Social Security.
Assets placed in an annuity can even provide a variety of income streams.
This is one reason many people use annuities to help them achieve their long-term financial goals, including retirement income.
Annuities offer important benefits.
Potential interest during the annuity’s accumulation phase:
- During this initial phase, an annuity may be an appropriate vehicle to help you accumulate money for your retirement.
Guaranteed income for life and other options during the retirement income phase:
- When you are ready to start taking income, the annuity offers you a range of payout options.
- Some options may offer a single payment.
- Others may include income payments scheduled over a specific period of time, including your entire lifetime.
Guarantees for your contract values:
- If you surrender your contract, you are guaranteed to receive at least a minimum value.
Tax deferral that can help your money grow:
- The money in your annuity can grow tax-deferred.
- This means you don’t have to pay taxes until you begin to withdraw money from the annuity.
- The power of tax deferral, compounded over the life of your annuity’s accumulation phase, may have a positive impact on the value your annuity generates for your retirement.
- Any money taken from your annuity may be subject to income taxes and, if taken prior to age 59½, a 10% federal tax penalty.
Guaranteed death benefit protection for your beneficiaries:
- Annuities are insurance products, so it’s only natural that they can give you reassurance, knowing your beneficiaries are protected if you pass away before you start receiving annuity income payments.
Annuities are designed to help provide income in retirement.
Here’s how a deferred annuity works.
A deferred annuity is a contract between a contract owner and an insurance company.
As contract owner, you pay premium to the insurance company.
In exchange for your premium, the insurance company promises to make regular income payments to you over a period of time, beginning at some point in the future.
This is called annuitization.
You may also receive additional benefits, which we will discuss later.
Fixed index annuities are different.
A fixed index annuity has the potential to earn interest based on changes in an external index.
This is different from traditional fixed annuities, which credit interest calculated at a fixed rate set in the contract.
The selected index varies from day to day and is not predictable.
When you buy a fixed index annuity you own an insurance contract – you are not buying shares of any index fund, any stock, or bond investments.
Guarantees are backed by the financial strength and claims-paying ability of Allianz Life Insurance Company of North America.
Many fixed index annuities also permit contract owners to allocate premium to a traditional fixed interest option, where interest is credited at a fixed rate of interest not based on any external index.
Interest earned on a fixed index annuity could be more or less than the interest earned in a traditional fixed annuity.
Annuities are designed for long-term purposes.
You generally have to keep your premium in a deferred annuity such as the Allianz MasterDex X Annuity for a specified period of time before you begin receiving income payments to avoid the assessment of penalties, such as surrender charges.
Your premium, credited interest, and bonus are never subject to market index loss.
Accumulation
MasterDex X lets you benefit when the market index is heading up.
When the market is headed up, the value of your Allianz MasterDex X Annuity can also increase.
Your contract has a 100% participation rate.
This means that we use the entire percentage of index change when we calculate the indexed interest rate.
Keep in mind that your indexed interest rate generally will not equal 100% of any increase in the index.
The indexed interest rate will always be subject to a cap or spread which may limit the interest we credit.
The indexed interest rate will never be less than zero.
MasterDex X offers you choices
The Allianz MasterDex X Annuity gives you several choices for calculating the indexed interest rate for your contract: monthly sum, monthly average, or annual point-to-point crediting methods.
Guarantees
MasterDex X locks in any credited 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 volatility.
Your premium, credited interest, and bonus are never subject to market index loss.
A downturn in the market index(es) cannot reduce your contract values.
We guarantee it.
However, if you surrender your contract before your 10th contract anniversary, we will apply a surrender charge and you will also lose the portion of the bonus that is not vested.
Flexibility
If you need cash, MasterDex X gives you access.
After the contract anniversary following your most recent premium payment, you may withdraw up to 10% each contract year based on total premiums paid – without a surrender charge.
After 10 years, it’s your choice: stay, or take the money.
You can leave your money in the annuity so it continues to benefit from potential indexed/fixed interest and tax deferral or start an income stream.
Of course, anytime after your 10th contract anniversary, you can take your annuity’s full value (minus any outstanding loans).
MasterDex X gives you several ways to access your money.
Take free withdrawals.
In each contract year you can take up to 10% of your contract’s paid premium in one or more free withdrawals.
There will be no surrender charge applied, and no reduction to your unvested bonus as long as the money is withdrawn after the contract anniversary following your most recent premium payment.
If, within the same contract year of a free withdrawal, you fully surrender your contract or add premium, we will retroactively recalculate the free withdrawal as if it were a partial surrender.
Partial surrenders incur surrender charges and a loss of unvested bonus that is proportionate to the amount of cash surrender value you take.
This may result in the loss of all or part of your bonus and interest you have earned, and a partial loss of principal.
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 contract.
Free withdrawals and partial surrenders will decrease the value of the contract and its death benefit.
Access an additional free withdrawal if you become unemployed.
The Unemployment Benefit gives you additional access when you may need it most.
This benefit allows you, the contract owner, to receive an additional 10% of premium paid free of surrender charge.
This additional penalty-free withdrawal is available one time during the life of the contract, as long as the contract has been in effect for at least one year, you are under the age of 65 at the time of your request for the benefit, and have been approved for state Unemployment Assistance Payments.
You also need to have received an Unemployment Assistance Payment more than 30 days after your approval for them and request this benefit within 30 days of your most recent payment.
There is no additional charge for this benefit.
Access your money to help pay qualified medical costs.
The Flexible Withdrawal Rider is an optional rider that gives you additional access to your money.
This rider allows you a one-time lump-sum payment, without surrender charges, in any amount up to the contract’s accumulation value, should you become confined after the first contract year to an eligible nursing facility, assisted living facility, or hospital for 30 of 35 consecutive days.
This rider must be chosen at the time of application.
There is an additional charge for this rider.
Our Flexible Annuity Option lets you receive annuity payments sooner.
The Flexible Annuity Option Rider1 allows you as the owner to receive annuity payments based on your accumulation value (less any bonus and interest earned on that bonus) sooner.
You may exercise this option anytime after the first contract year but before the sixth contract year by electing to receive annuity payments over a period of 10 to 30 years.
Depending on your age, you may be able to receive this value over fewer than 10 years.
There is no additional charge for this rider.
Access your money sooner to help pay for nursing home care.
If you, as the contract owner, should enter a nursing home, long term care facility, or hospital for at least 30 of 35 consecutive days after the first contract year, you may take an accelerated distribution of your contract’s accumulation value as annuity payments over a period as short as five years. Not available in all states.
Any amount taken from your contract may be subject to ordinary income tax and, if taken prior to age 59½, a 10% federal tax penalty.
Take required minimum distributions.
If your annuity is tax-qualified, we will treat the required minimum distributions calculated for this annuity as free withdrawals if you take them annually in December or monthly throughout the year.
Required minimum distributions will reduce contract values, including the death benefit, and the amount available for free withdrawals at any other time during the year.
Purchasing an annuity within a retirement plan that provides tax deferral under sections of the Internal Revenue Code results in no additional tax benefit.
An annuity should be used to fund a qualified plan based upon the annuity’s features other than tax deferral.
All annuity features, risks, limitations, and costs should be considered prior to purchasing an annuity within a tax-qualified retirement plan.
Take a contract loan.
You may take a contract loan for up to 50% of the cash surrender value (maximum of $50,000).
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 loss of unvested bonus, and will decrease the value of the contract and its death benefit.
About the guaranteed minimum value
Your contract provides a guaranteed minimum value that you’d receive if it were higher than your contract’s cash surrender value.
The guaranteed minimum value equals 87.5% of your total premium, minus any withdrawals, crediting interest at an annual rate no less than 1.95%.
Allianz MasterDex X Annuity offers you a death benefit.
The Allianz MasterDex X Annuity provides a death benefit payable to your 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 accumulation value (or payments based on that value), which includes both the vested and any unvested bonus.
This applies only to contracts that have not yet been annuitized.
The death benefit, paid to a properly designated beneficiary (other than the estate), may pass without the costs and delays of probate.
Help your beneficiaries pay their taxes.
The optional Death Benefit Rider is a term life insurance rider that enables your beneficiary to receive, tax-free, an additional death benefit up to 28% of the taxable interest in your annuity.
By providing funds to pay some or all of the income taxes due, it allows you to pass on more of your annuity’s value to your beneficiaries and reduces a possible tax obstacle for them.
The Death Benefit Rider can offset a substantial portion – or possibly all – of the federal income taxes due on your annuity at the time of your death (state or local taxes may apply).
Please note: A Death Benefit Rider charge will apply; this rider is available only on nonqualified contracts where the owner and annuitant are the same. This rider must be selected at time of application and is available at an additional cost.
There are no upfront sales charges.
100% of your premium, plus the premium bonus, is credited to your accumulation value on the day it is received.
Withdrawals, rider charges, and any applicable surrender charges and unvested bonus reductions will decrease your contract’s accumulation value.
Surrender your contract for a lump-sum payout.
You can receive your annuity’s full accumulation value at any time after 10 contract years.
If you take out all of your contract’s value before the 10th contract anniversary, you will receive the cash surrender value – equal to the accumulation value, less unvested bonus, less any unpaid loans, and less any surrender charges as shown in the chart.
Partial surrenders incur surrender charges and a loss of unvested bonus that is proportionate to the amount of cash surrender value you take.
The surrender charge percentage starts at 10% on the date of contract issue.
Beginning in contract year four, the surrender charge percentage will decrease by 1.25% on each anniversary.
On day one of contract year 11, it will be zero.
Your annuity payments will be based on the cash surrender value if you annuitize prior to the sixth contract year or if the annuity payments are taken over a shorter time period than required. This could result in loss of interest and bonus, and a partial loss of principal. You could receive less than the amount of premium you put into the contract. However, the cash surrender value will never be less than the guaranteed minimum value as described in your contract.
Choose from a variety of options to receive steady, predictable income.
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 (including the full bonus) 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 or choose another annuity payment option.
Installments for a guaranteed period
You can choose to receive annuity payments in equal installments for a period from 10 to 30 years.
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 until his or her death.
Note* This annuity is no longer in production. For research purposes only.
