Allianz PremierDex Annuity is an equity-indexed, fixed annuity with “point-to-point” monthly crediting, a premier resource for your retirement.
Discover the benefits of the PremierDex Annuity from Allianz.
PremierDex can offer you safety while it helps you reach your financial goals. With PremierDex:
- Each year, you may receive indexed interest based on monthly changes of a market index, subject to a monthly cap.
- A high water design locks in any indexed interest, eliminating risk due to market index losses.
- After just seven years you can take your annuity’s full value.
A prudent wealth management 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.
Here’s how an annuity works.
An annuity is a contract between a contract owner and a life insurance company.
The annuity’s values and guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company.
As contract owner, you pay premium to the insurance company.
In exchange for your premium, the insurance company promises to make payments to you at some point in the future.
You may also receive the benefits listed on the following page.
You should not buy an annuity for short-term purposes.
You generally have to keep your premium in the annuity for a specified period of time to avoid the assessment of penalties, such as surrender charges.
Annuities offer important benefits.
Potential growth during the annuity’s accumulation phase:
During this initial phase, an annuity can be an ideal vehicle to help you accumulate money for your retirement.
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 an immediate, single payment.
Others may include income payments scheduled over a specific period of time, including your entire lifetime.
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 on your annuity’s growth 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 distribution may be subject to ordinary income taxes and, if taken prior to age 591/2, to a 10% federal tax penalty.
Death benefit protection for your beneficiaries:
As we noted earlier, annuities are life insurance products.
So it’s only natural that they can give you peace of mind, knowing your beneficiaries are protected if you pass away.
Equity-indexed annuities are different.
An equity-indexed annuity earns interest based on changes in an external equity index.
This is different from traditional annuities that 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 an equity-indexed annuity you own an insurance contract – you are not buying shares of any stock or index.
Many equity-indexed 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 equity index.
The value of an equity-indexed annuity will not drop below a guaranteed minimum specified in the contract.
This means that if you take money out of the contract or die, you (or your beneficiaries) are guaranteed to receive at least a minimum value.
To summarize, an equity-indexed annuity offers contract owners:
- The potential for growth by basing interest earned on the performance of an equity index or indexes (Interest earned on an equity-indexed annuity could be less than the interest earned in a traditional fixed annuity.)
- A guaranteed minimum
PremierDex locks in any annual indexed interest automatically.
Any indexed interest credited to your annuity’s high water value can never be lost due to index volatility.
PremierDex protects your principal from index losses.
Your principal is never subject to market index risk.
A downturn in the market index(es) cannot have a negative impact on your contract’s high water value.
We guarantee it.
PremierDex has a real difference. This sums it up.
PremierDex tracks point-to-point monthly changes (subject to a monthly cap) in the market index(es).
Once a year, those 12 months’ values are automatically added up and credited.
This sum, called the annual index rate, helps determine your annuity’s current value and high water value.
PremierDex lets you benefit when the market index is heading up.
When the market is headed up, the value of your PremierDex can also increase.
That’s because at the end of each year, you get full 100% participation in potential monthly gains subject, however, to an established maximum monthly cap.
If you need cash, PremierDex gives you access.
Beginning 12 months after your last premium is received, you may annually withdraw up to 10% of your total premiums paid-
- without a surrender charge or market value adjustment
- until 100% of your total premium has been withdrawn.
After seven years it’s your choice: take your money, or stay.
Anytime after your seventh contract year, you can walk away with your annuity’s full value (minus any loans or withdrawals).
Of course, you can leave your money in the annuity so it continues to benefit from potential indexed interest.
PremierDex automatically tracks a high water value for your index(es).
Here is how your annuity’s current value and high water value are determined.
Your contract’s current value is determined by increases and decreases in your selected index(es).
These changes are captured monthly, then totaled on your contract’s anniversary.
The highest current value achieved on any contract anniversary becomes your high water value.
If the annual index rate is negative, it will decrease your current value, but will not impact your high water value.
Note: If your current value decreases in a year, it must recover to match your high water value before your high water value can increase.
Here is an explanation of your contract’s accumulation value.
The accumulation value equals your premium paid plus any vested gains.
Gains are determined by subtracting your premium paid from your contract’s high water value.
Next, your gains are multiplied by a vesting percentage (see chart on this page), resulting in your vested gains.
Those vested gains are added to the premium paid to determine your annuity’s accumulation value.
Withdrawals will reduce the accumulation value.
You can earn fixed interest.
Traditional fixed interest is calculated and credited daily for both the fixed interest allocation and the interim interest account.
Interest credit rates are declared annually by Allianz.
We can raise or lower interest credit rates annually, but they will never be less than 1.5%.
Open your PremierDex today, then add money for years to come.
You can get all the benefits offered by the PremierDex with an initial premium amount of $25,000 or more.
You can add money at any time during the first three contract years.
Additional premium payments made during a contract year are credited to your contract’s interim interest account until the following contract anniversary.
There are no up-front fees or future sales charges.
There are never any asset fees or up-front sales charges.
100% of your premium is credited to your accumulation value.
However, surrender charges and market value adjustments do apply during the first seven contract years.
PremierDex tracks market index changes, then puts it all together. Here’s how.
With PremierDex, the value of your annuity reflects the monthly point-topoint fluctuations of the S&P 500 and the Nasdaq-100, two of America’s most recognized stock indexes.
Once each month, we capture the value of the index.
We compare that value to the index value from the previous month, and record the percentage change between the two as the monthly return.
Monthly returns may be positive or negative.
In any given month, a positive monthly return may exceed your annuity’s stated monthly cap percentage.
In that case, the capped value will be used to calculate the annual index rate.
Rely on PremierDex in good times and bad.
How does PremierDex perform when the going gets tough?
Simply stated, the market index may drop, but your high water value won’t.
Put all your eggs in one basket. Or two. Or three.
When you purchase your PremierDex, you can link your annuity’s growth exclusively to the S&P 500, the Nasdaq-100, or a fixed interest option.
If you’d prefer, you can divide your allocation (in 25% increments) between any two options – or among all three.
And you can even change your allocations each year.
Now THAT’S control!
Here’s how you can change your allocations.
Shortly after each contract anniversary, we’ll notify you that you can make changes.
If we receive your changes in writing within 21 days of your contract anniversary, they’ll be effective for that contract year.
If we receive the changes more than 21 days after your contract anniversary, the changes won’t take effect until your next contract anniversary.
After only five years, you can start a stream of steady income – or receive your full accumulation value in a lump sum after seven years.
Choose from several annuity payment options.
If you keep your contract in deferral for at least five years, you can choose to receive annuity payments based on accumulation value in any of the following ways without incurring surrender charges or market value adjustments:
You have the option to receive interest-only annuity payments for five years.
Interest will be paid as earned.
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, the balance of the guaranteed period, if any, will be paid to your beneficiary the same way as you previously selected.
Installments for a selected amount
You may select to 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 select to 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 1/2 of your payment amount to be paid to your survivor until his/her death.
The payout interest rate used to determine the income stream depends on the age of your contract and the payout option selected.
The minimum guaranteed interest rate in payout is 1%.
PremierDex offers you a death benefit.
If taken as annuity payments over at least five years, the annuity payments will be based on your contract’s full accumulation value.
If taken as a lump sum, the death benefit will equal the greater of the sum of premiums paid less any withdrawals or the cash surrender value (which is the accumulation value adjusted for a surrender charge and market value adjustment during the surrender charge period).
The death benefit paid to a properly designated beneficiary (other than the estate) will pass without the costs and delays of probate.
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 days out of a 35-consecutive-day period after the first contract year, you may take an accelerated distribution of your contract’s accumulation value over a period as short as five years.
If you don’t want your annuity proceeds to be a tax burden for your beneficiary, here’s a solution.
The optional Death Benefit Rider enables your beneficiary to receive a tax-free death benefit up to 28% of taxable gain.
It allows you to pass on more of your annuity’s value to your beneficiaries and reduces a possible tax obstacle for them.
Although the rate at which your beneficiaries will pay income tax at some future date is unknown, the Death Benefit Rider can offset a substantial portion – or all – of the federal income taxes due at the time of your death (state or local taxes may apply).
Please note: A Death Benefit Rider charge, which varies by contract, will apply; benefit only applies to nonqualified contracts where owner/ annuitant are the same.
PremierDex gives you the freedom to access your money in several ways.
Take free withdrawals.
You can take one free withdrawal of up to 10% of premiums every 12 months – without a surrender charge or market value adjustment – as long as:
- It occurs 12 months after the last premium is received
- No more than one withdrawal is taken within a 12-month period
- Total free withdrawals do not exceed 100% of premiums received
If, within 12 months of a free withdrawal, the contract is surrendered or annuitized, another withdrawal is taken, or additional premium is added, we will retroactively apply a surrender charge and market value adjustment (MVA) to that withdrawal.
This could result in a loss of 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 partial indexed interest at the end of the contract year.
Partial indexed interest is based on the annual indexed interest and the amount of time during that year before the free withdrawal was taken.
Take a contract loan.
A contract loan may be taken 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.
If you fully surrender your contract, unpaid loans will be subject to surrender charges and MVA.
Take required minimum distributions.
Required minimum distributions from a tax-qualified plan (IRA, SEP, etc.) will qualify as a free withdrawal if taken annually in December or monthly throughout the year.
Contract values and the amount available for free withdrawal will be reduced by the distribution amount withdrawn.
Surrender with lump-sum payout.
Walk away with your annuity’s full accumulation value at any time after seven contract years.
If you partially or fully surrender your contract before the seventh contract anniversary, the amount you receive will be reduced by a surrender charge and an MVA as shown in the charts on this page.
A surrender charge and an MVA will also apply if you annuitize prior to the sixth contract year or if annuitization payments are taken over a period of fewer than 10 years.
This could result in loss of indexed interest, fixed interest, and a partial loss of principal.
The cash surrender value, however, will never be less than the guaranteed minimum value as described in your contract.
A surrender charge and an MVA may also be applied upon death of the contract owner.
Note: The money you take out may be taxable.
Your contract values grow tax deferred.