Allianz Life Unveils Variable Annuity Rider with Increasing Income Payments [Professional Services Close – Up]

Proquest LLC

Allianz Life Insurance Company of North America, and in New York, Allianz Life Insurance Company of New York, announced the launch of the optional Income Focus rider on Allianz Vision, Allianz Vision New York and Allianz Connections variable annuities, a new way to offer clients increasing income in retirement.

According to a release, available in 48 states, the optional rider offers payment percentage increases of 1 percent every year the contract experiences positive performance, no matter the size of the increase. There is no limit on the number of income increases, up to age 91, whether the contract holder takes income today or in the future.

"With the current economic uncertainty, Americans' concerns about having sufficient income to maintain their standard of living in retirement has taken on a new urgency," said Robert DeChellis, president of Allianz Life Financial Services, LLC. "Whether people are looking for income now or later, our variable annuities with the optional Income Focus rider can change the way they plan for retirement income."

The company noted that the optional rider is designed for investors that seek a greater risk/reward tradeoff. Allianz said the Income Focus rider provides income that is not driven by how high the contract value grows, but by how many times it grows. Additionally, there are no guaranteed annual increases in accumulation, so with Income Focus, if you select at issue and make no additional purchase payments, you only need to keep track of two numbers - the amount put in (Total Income Value) and the payment percentage. The rider is powered by the Allianz Managed Volatility Portfolio (AZL MVP) of investment options, which are unique to Allianz Life and Allianz Life of NY.

In addition, the Company noted, the current annual cost of the Income Focus rider is 1.30 percent calculated on the purchase payments adjusted for withdrawals (Total Income Value) for both single and joint life payout, and is subject to change on each quarterly anniversary, but will never be less than the minimum charge of 0.50 percent or exceed the maximum of 2.75 percent for single or 2.95 percent for joint.

"Another great feature of the Income Focus rider is that the rider fees are always based on the purchase payments, so as the value of the contract goes up, the fees as a percentage of the contact value decrease," added DeChellis. This fee calculation can help lower the overall costs for this rider.