Allianz Life Of New York Launches New Index Variable Annuity
MINNEAPOLIS--Allianz Life Insurance Company of New York (Allianz Life® of NY) announced the launch of the Allianz Index Advantage New York® Variable Annuity, a new Index Variable Annuity (IVA) that offers the combination of traditional variable options with an index strategy. Allianz Index Advantage New York takes its place among the emerging breed of IVAs available in the New York market. This innovative new product offers a balance of growth potential and a level of downside protection with a built-in death benefit.
“Allianz Index Advantage New York gives customers an opportunity to build a solid retirement foundation by offering balance for their portfolio,” said Allianz Life Chief Distribution Officer Tom Burns. “Our IVA is a significant addition to the New York variable annuity market because it offers unique opportunities for growth and protection.”
A key feature of Allianz Index Advantage New York is the innovative Index Performance Strategy. This crediting method offers customers a level of asset protection for the principal investment while maintaining the potential for higher performance. The Index Performance Strategy also gives accumulation-focused customers the flexibility to pursue the accumulation strategy that best suits them each year whether there is positive or negative performance.
During a year of positive performance, the customer will earn a credit that is equal to the annual index return, up to the annual cap. The cap is subject to significant change annually on the Index Anniversary and will never be less than 1.50%. Caps can be different for each index allocation and can differ on new business and in-force contracts. If the index return is negative, a buffer will be used. A negative credit is applied only when the loss is greater than the specified buffer percentage. Losses in excess of the buffer will reduce the contract value. The buffer is established when the contract is issued and will never change. The current buffer is 10% for all index allocation options. Clients are not buying any bonds, shares of stock, or directly investing in an index.
Allianz Index Advantage New York appeals to investors seeking higher upside potential than is typically available in similar products. With this new IVA, customers have the opportunity for a greater return than traditional fixed index annuities by offering higher limits (or caps). For the current annual product fee of 1.25%, Allianz Index Advantage New York offers potential index results and market participation through its variable options for the customer, a level of asset protection, tax deferral and a built-in death benefit. The annual product fee is calculated as a percentage of the charge base, which is the contract value on the preceding quarterly contract anniversary, adjusted for subsequent purchase payments and withdrawals1.
1 Withdrawals will reduce the contract value and the value of any protection benefits. Additional withdrawals taken during the withdrawal charge period will be subject to a withdrawal charge. All withdrawals are subject to ordinary income tax and, if taken prior to age 59 ½, may be subject to a 10% federal additional tax.