Power up your clients’ financial future with Allianz Accumulation Advantage+™ Annuity – the newest innovation in the bonus accumulation marketplace

Over the past decade, the fixed index annuity (FIA) industry has seen a significant shift from income- to accumulation-focused solutions. Recent sales and market reports from Wink¹ show that nearly 70% of consumers now prioritize accumulation over income-focused solutions. At the same time, bonus accumulation FIAs have surged in popularity. Heidi Vanderkloot, SVP and Head of FMO Distribution for Allianz Life Insurance Company of North America (Allianz), discussed with INN how Allianz is adapting to meet evolving consumer demand.

What motivated the development of Allianz Accumulation Advantage+™ Annuity, and what makes it competitive in the current market?

Vanderkloot: Allianz has been a leader in income-focused FIAs since we launched
Allianz 222® Annuity in 2013. But as consumer preferences have shifted, we’ve shifted our aspirations to be a leader in both the income and accumulation spaces. With competitive rate offerings, diverse product structures, and innovative features, Allianz Accumulation
Advantage+™ — our new bonus accumulation FIA, which we launched in March —
is our answer to this growing demand for accumulation-focused FIAs.  

How does Allianz Accumulation Advantage+™ stand out in the bonus accumulation FIA marketplace, and why do these differentiators matter to financial professionals and clients?

Vanderkloot: Allianz Accumulation Advantage+™ has lots of additional advantages that offer clients a combination of flexibility, control, and enhanced growth opportunities with one product. For starters, it goes beyond traditional FIA features by
offering a competitive bonus on all premiums.²

If you look at accumulation opportunity, we’ve included both volatility- and nonvolatility-controlled index options to help clients diversify depending on the economic environment. We’ve also added a new Performance Trigger crediting method that gives clients a predetermined credit if the change in index value is 0% or better. 

Another big differentiator for Allianz is our Index Lock feature, which can help guarantee an indexed interest credit by letting clients lock in a positive index value once each crediting period. 

And let’s not forget about rates. Our standard rates are already competitive, but we offer clients the opportunity to purchase even higher, enhanced rates for a charge — for even more accumulation opportunity.   

We’ve also added another advantage when it comes to flexible access to penalty-free withdrawals. In addition to 10% annual free withdrawals,³ clients can now carry over any unused free withdrawal percentage to the following year, up to 20%. 

Combined, all of these differentiators set Allianz apart in the bonus accumulation marketplace.

Who is the ideal client for Allianz Accumulation Advantage+™?

Vanderkloot: We designed this product for someone who wants to grow their retirement savings while minimizing risk. Individuals who are getting close to retirement often want to lessen market exposure while still having the opportunity for growth. Those who have recently faced financial setbacks may find the bonus appealing, because for some clients it may help offset losses. The current favorable interest rate environment also presents a compelling value proposition for clients who want to capitalize on stronger growth potential. 

How does the new accumulation-focused FIA suite from Allianz integrate with its existing portfolio? 

Vanderkloot: Our new suite of accumulation-focused FIAs fits perfectly within our broader offerings. 

Allianz has been a dominant player for decades in the income FIA space, and we are committed to continuing this industry leadership; now, we’re bullish on bringing our indexing experience and innovative features into the accumulation space.

The first product in our accumulation FIA suite, Allianz Accumulation Advantage® Annuity, brought us into the accumulation space with competitive rates, multiple index allocation options to diversify with, and innovative features like Index Lock. More recently, we launched additional innovations with an enhanced first-year fixed interest rate. And for those with a shorter time horizon, Allianz Accumulation Advantage 7™ Annuity offers cutting-edge solutions, such as equity-
only allocation options and increasing participation rates combined with our Index Lock feature; additionally, it allows issue ages up to age 85.

We’re all-in on accumulation FIAs, not only because they complement our product portfolio, but also because it’s where the market’s going. Our aspiration is to be the leading provider of index solutions across multiple product platforms to meet the evolving needs of financial professionals and their clients — and our suite of accumulation FIAs are a key part of achieving that goal.

To learn more about what makes the Allianz Accumulation Advantage+^™ Annuity a competitive option in the bonus accumulation space, click here.

1. Wink’s Sales & Market Report, 3Q 2023.
2. Bonus annuities may include higher withdrawal charges, longer withdrawal charge periods, lower caps, lower participation rates, or other restrictions that are not included in similar annuities that don’t offer a premium bonus feature.
3. Penalty-free withdrawals available any contract year after a premium payment is made.

Fixed indexed annuities are designed to meet long-term needs for retirement income. They provide guarantees against the loss of principal and credited interest, tax-deferred accumulation potential, and the reassurance of a death benefit for beneficiaries. Exercising an Index Lock may result in an interest credit higher or lower than if the lock was not exercised.

Products are issued by Allianz Life Insurance Company of North America (Allianz), 5701 Golden Hills Drive, Minneapolis, MN 55416-1297. www.allianzlife.com

C64997-MVA, ICC23C64997-MVA

Guarantees are backed by the financial strength and claims-paying ability of Allianz Life Insurance Company of North America (Allianz).

Any distributions are subject to ordinary income tax and, if taken prior to age 59½, a 10% federal additional tax.