Allianz Life Announces 3-Year Term Index Options On Index VAs

MINNEAPOLIS – May 4, 2020 – To help clients address risk that market volatility can have on retirement security, Allianz Life Insurance Company of North America (Allianz Life®) has announced a new Index Performance Strategy with a 3-year term, available on Allianz Index Advantage® variable annuities1 with the S&P 500® Index and Russell 2000® Index.

With the new strategy, if the index return is positive over the term, clients may receive a positive performance credit equal to that index’s return, up to the cap. If an index return is negative over the term, clients still have a level of protection through the 20% buffer, but may receive a negative performance credit if the loss is greater than the buffer. Losses in excess of the buffer will reduce the contract value, and buffers cannot change after they are established for a contract.

“The 3-year term can be ideal for the extreme market environment we are currently in,” said Eric Thomes, chief distribution officer, Allianz Life. “It’s designed to help people benefit from a long-term strategy that provides performance potential with a level of protection from index losses.”

The new index strategy also allows for added flexibility in the short-term with a performance lock feature. This allows clients to lock in an index option value once in between index anniversaries, so the value would not fluctuate for the remainder of the term. On the next index anniversary, clients can reallocate and start a new term.

“Over half of Americans say they are worried the market hasn’t bottomed out yet*, so they may be looking for ways to stem the losses” said Thomes. “But it’s important to be able to still take advantage of any potential gains whenever the market begins to bounce back.”