Investment Protector. Allianz Vision SM Variable Annuity. Get protection with growth potential. Allianz Life Insurance Company of North America

Transcription

1 Allianz Life Insurance Company of North America Investment Protector Get protection with growth potential. Allianz Vision SM Variable Annuity VSN-103 Page 1 of 12

2 Build it. Use it. Pass it on. This brochure is designed to provide you with an overview of the optional Investment Protector rider (05.10) available with Allianz Vision deferred variable annuity. This material must be preceded or accompanied by the client product overview and a current prospectus for Allianz Vision SM Variable Annuity. Call your financial professional or Allianz Life Financial Services, LLC, member FINRA, at to obtain a prospectus about Allianz variable investment options. The prospectuses contain details on investment objectives, risks, fees, and expenses, as well as other information about the variable annuity and variable investment options, which you should carefully consider. Please read the prospectuses thoroughly before sending money. Guarantees are backed by the financial strength and claims-paying ability of Allianz Life Insurance Company of North America (Allianz) and do not apply to the performance of the variable subaccounts, which will fluctuate with market conditions. Products are issued by Allianz Life Insurance Company of North America and distributed by its affiliate, Allianz Life Financial Services, LLC, member FINRA. Not FDIC insured May lose value No bank or credit union guarantee Not a deposit Not insured by any federal government agency or NCUA/NCUSIF Product and feature availability may vary by state and broker/dealer. Page 2 of 12

3 Are you ready for life s financial turning points? Build it. Use it. Pass it on. Retirement has changed and so has your role in preparing for it. The erosion of traditional sources of retirement income pensions and Social Security coupled with a longer life expectancy (and potentially more years in retirement) places a greater responsibility on you to provide the funding for the lifestyle you want. And with this new responsibility comes new concerns: the effects of a volatile market on your accumulated assets and the potential impact of inflation on your future purchasing power. So as you move through life s financial turning points from building assets, to using them to fund a long-term retirement, to passing on a legacy to your loved ones meeting your financial goals requires more planning and commitment than ever before. 1 Page 3 of 12

4 Investment Protector Investment Protector rider at a glance The Investment Protector rider is an accumulation benefit that provides a level of protection for the principal you invest while locking in your highest annual contract value for a specific date 10 or more years in the future. Issue age May be selected up to the older owner s attained age 80, with the latest initial Target Value Date to age Annual rider charge Current charge at issue is 0.90%. The charge is a percentage of the Target Value (deducted quarterly) and is subject to change on each quarterly anniversary. It will never be less than the minimum of 0.35%, or greater than the maximum of 2.50%. The rider charge cannot increase or decrease more than 0.35% in any 12-month period. Purchase payments Allowed during the first three years (including with Automatic Investment Plan) Additional purchase payments after the first quarter are subject to an annual contribution limit. Build it. Accumulate enough assets to retire the way you want. Selecting a Target Value Date You select an Initial Target Value Date at the time you add the Investment Protector to your contract. The earliest date you can select is 10 years after you add the rider. The latest date you can select is the rider anniversary that occurs before the older owner s 91 st birthday. Additional Target Value Dates will occur every fifth rider anniversary after the initial Target Value Date. Establishing your Target Value On the last business day before your Target Value Date, your contract value is guaranteed to be equal to or greater than your Target Value. If the Investment Protector is selected at issue, your Target Value is the greater of: 100% of your total purchase payments (adjusted for withdrawals) 100% of your Rider Anniversary Value (highest locked-in annual contract value) Rider Anniversary Value On each rider anniversary, your contract value is locked in if it is higher than the previously locked-in value. Your contract value may be higher between rider anniversary dates, but will not be locked in. Once the Rider Anniversary Value is established, it can never decrease, unless you take a withdrawal. Withdrawals include any applicable withdrawal charge and partial annuitizations. Resetting the initial Target Value Date You can request a reset within 30 days following any rider anniversary prior to age 81, and before the initial Target Value Date, as long as the contract value is at least equal to the current Target Value. You can choose any initial Target Value Date as long as it s a rider anniversary that s at least 10 years from the reset anniversary, and no later than the rider anniversary before the older owner s 91 st birthday. Your allocation rules will also reset to align with your new initial Target Value Date. 2 Page 4 of 12

5 Use it. Retire with choices and use your assets for a specific goal. Money credited to your contract On the last business day before each Target Value Date, if your contract value is lower than the Target Value that was locked in on a prior rider anniversary, we will add money to your contract to equal the locked-in value. Choices on your Target Value Date Once money has been added to your contract, you can keep the Investment Protector working, create a retirement income stream, or access the entire amount. Please keep in mind that your contract value will be subject to market fluctuations on and after the Target Value Date. If you decide not to fully withdraw your money, additional Target Value Dates will occur on every fifth rider anniversary while the Investment Protector is in effect, and you will have the opportunity to lock in new Target Values. This will not change your most recent investment allocation rules, which are covered in the next section. Taking withdrawals reduces the Target Value, the contract value, and the value of any death benefits. Withdrawals are taxed as ordinary income and, if taken prior to age 59 ½, a 10% federal tax penalty may apply. Withdrawals, for tax purposes, are deemed to come first from any gains. 1 In Massachusetts, the Investment Protector must be selected on the day you purchase your Allianz Vision SM contract. 3 Page 5 of 12

6 Investment Protector 4 Investment Protector provides protection and access Level of principal protection: Guaranteed return of purchase payments after a minimum of 10 years. Lock-in of your Rider Anniversary Value: On the rider anniversary, if your contract value is higher than the previous locked-in value, the higher value is locked in. Money credited to your contract: On the last business day before the Target Value Date, money will be added to your contract value to equal the Target Value. Access to your contract value: Once money has been added to your contract value, you can access the entire amount. Example: Gains locked in automatically and money credited to your contract These hypothetical examples are provided to show how your Rider Anniversary Value is locked in and then how money is credited on the last business day before your Target Value Date. These examples do not predict or project the actual performance of Allianz Vision SM Variable Annuity or its investment options. These examples assume you select the Investment Protector at issue and take no withdrawals before the initial Target Value Date. Build it. Principal protection combined with the opportunity to lock in the Rider Anniversary Value can help you add a level of certainty to your retirement goals. Rider Anniversary Value after 8 th anniversary Rider Anniversary Value after 4 th anniversary Protect your purchase payments while locking in gains. Rider Anniversary Value after 1 st anniversary Original Target Value ($100,000) $100,000 purchase payment Years Initial Target Value Date Page 6 of 12

7 Investment Protector Use it. You have the flexibility to retire with choices and use your assets for a specific goal. Money added to the contract value to equal the Target Value, which is the greater of 100% of the locked-in Rider Anniversary Value or the purchase payments adjusted for withdrawals. Target Value Contract value $100,000 purchase payment Years Money credited to your contract. Initial Target Value Date You will have the following options once money has been added to your contract value: Keep the Investment Protector working Create a retirement income stream Access your money 5 Page 7 of 12

8 Investment Protector Initial allocation rules are based on your initial Target Value Date. The percentages of your contract value allowed or required in your three investment option groups are based on the number of years until your initial Target Value Date. Years until your initial Target Value Date Maximum % of contract value you are allowed to allocate to Groups A, and B/X Maximum % of contract value you are allowed to allocate to Group A Minimum % of contract value you are required to allocate to Group Y 17 or more 95% 30% 5% 16 90% 30% 10% 15 85% 25% 15% 14 80% 25% 20% 13 75% 20% 25% 12 70% 20% 30% 11 65% 15% 35% 10 60% 15% 40% 6 Page 8 of 12

9 Investment Protector More conservative allocations as your initial Target Value Date nears. With each passing year, a minimum of 5% moves into the most conservative group. For more detailed information, see the Investment Option Allocation, Transfer, and Quarterly Rebalancing section of the prospectus. Example: Investment option allocations over time This hypothetical illustration is provided to show how investment option allocations vary with respect to time. It does not show how allocations vary with respect to changes in contract value. The initial Target Value Date selected is 10 years. The initial investment option allocation selected is 15% in Group A, 45% in Groups B/X, and 40% in Group Y. 10 years to Target Value Date 8 years to Target Value Date 4 years to Target Value Date Target Value Date A 15% B/X 45% Y 40% A 10% B/X 40% Y 50% A 5% B/X 25% Y 70% A 5% B/X 5% Y 90% More conservative allocations if your contract value decreases. On each quarterly anniversary, your contract value is compared to the guaranteed Target Value. For each 6% by which the contract value is lower than the Target Value, an additional 5% moves into the most conservative group (Group Y). However, over any 12-month period, the amount required in Group Y will not increase by more than 15%, and is guaranteed never to be more than 90%. See the Investment Option Allocation, Transfer, and Quarterly Rebalancing section of the prospectus for detailed information. Once your allocation rules become more conservative, they will never become more aggressive unless you choose to reset the initial Target Value Date. Example: Investment option allocations with declining contract value This hypothetical illustration, using the same initial investment option allocations above, reflects what would have happened at the first contract anniversary if the contract value had remained the same or had decreased as compared to the Target Value. 9 years even 9 years down 7% 9 years down 13% 9 years down 19% A 10% B/X 45% Y 45% A 10% B/X 40% Y 50% A 5% B/X 40% Y 55% A 5% B/X 40% Y 55% 7 Page 9 of 12

10 Investment Protector Your investment options When you select the optional Investment Protector, allocation rules apply to support the guarantees provided by this rider. Allocation of your contract value to aggressive investment options will be limited. This may limit the downside risk and the upside potential to your contract. Group A investment options Fund of Funds AZL Fusion SM Growth Fund Equity Small cap AZL Allianz AGIC Opportunity Fund AZL Columbia Small Cap Value Fund AZL Franklin Small Cap Value Fund AZL Small Cap Stock Index Fund AZL Turner Quantitative Small Cap Growth Fund Specialty AZL Morgan Stanley Global Real Estate Fund AZL Schroder Emerging Markets Equity Fund Franklin Templeton VIP Founding Funds Allocation Fund PIMCO VIT Commodity RealReturn Strategy Portfolio Group Y investment options Fixed Income High Yield Bond PIMCO VIT High Yield Portfolio Intermediate Term Bond Franklin U.S. Government Fund PIMCO VIT Global Advantage Strategy Bond Portfolio PIMCO VIT Real Return Portfolio PIMCO VIT Total Return Portfolio Templeton Global Bond Securities Fund Cash Equivalent AZL Money Market Fund Specialty PIMCO VIT Unconstrained Bond Portfolio Group B/X investment options Fund of Funds AZL Balanced Index Strategy Fund AZL Fusion SM Balanced Fund AZL Fusion SM Conservative Fund AZL Fusion SM Moderate Fund AZL Growth Index Strategy Fund Fidelity VIP FundsManager 50% Portfolio Fidelity VIP FundsManager 60% Portfolio Equity Mid Cap AZL Columbia Mid Cap Value Fund AZL Mid Cap Index Fund AZL Morgan Stanley Mid Cap Growth Fund Large Growth AZL BlackRock Capital Appreciation Fund AZL Dreyfus Equity Growth Fund International Equity AZL International Index Fund AZL Invesco International Equity Fund AZL JPMorgan International Opportunities Fund PIMCO EqS Pathfinder Portfolio Templeton Growth Securities Fund Large Blend AZL JPMorgan U.S. Equity Fund AZL MFS Investors Trust Fund AZL S&P 500 Index Fund Large Value AZL Davis NY Venture Fund AZL Eaton Vance Large Cap Value Fund AZL Invesco Growth and Income Fund Mutual Shares Securities Fund Specialty AZL Franklin Templeton Founding Strategy Plus Fund AZL Gateway Fund AZL Invesco Equity and Income Fund BlackRock Global Allocation V.I. Fund Franklin Income Securities Fund PIMCO VIT All Asset Portfolio PIMCO VIT Global Multi-Asset Portfolio Allianz Life Insurance Company of North America, Allianz Life Financial Services, LLC, Allianz Investment Management, LLC, Allianz Global Investors, and PIMCO are affiliated companies. 8 Page 10 of 12

11 Build it, use it, pass it on: Investment Protector helps make it possible. Every quarter, Allianz will automatically rebalance your assets to maintain your investment allocations, based on your most recent choices for future purchase payments and any changes to the allowed maximum and required minimum group allocations. You can choose to have your contract value rebalanced quarterly even if you don t select the Investment Protector. See the Allianz Vision SM Variable Annuity prospectus for more details. Please note: We may add or remove investment options from your contract in the future. If we do, we will provide written notice regarding additions or deletions to the investment option group. See the prospectus for the most current list of investment options available in each group. Page 11 of 12

12 True to our promises so you can be true to yours. A leading provider of annuities and life insurance, Allianz Life Insurance Company of North America (Allianz) bases each decision on a philosophy of being true: True to our strength as an important part of a leading global financial organization. True to our passion for making wise investment decisions. And true to the people we serve, each and every day. Through a line of innovative products and a network of trusted financial professionals, and with over 2.2 million contracts issued, Allianz helps millions of people as they seek to achieve their financial and retirement goals. Founded in 1896, Allianz is proud to play a vital role in the success of our global parent, Allianz SE, one of the world s largest financial services companies. While we pride ourselves on our financial strength, we re made of much more than our balance sheet. We believe in making a difference with our clients by being true to our commitments and keeping our promises. People rely on Allianz today and count on us for tomorrow when they need us most. Guarantees are backed solely by the financial strength and claims-paying ability of Allianz Life Insurance Company of North America and do not apply to the performance of the variable subaccounts, which will fluctuate with market conditions. Allianz Vision SM Variable Annuity Allianz Vision Variable Annuity is issued by: is distributed by: Allianz Life Insurance Company Allianz Life Financial Services, LLC of North America 5701 Golden Hills Drive 5701 Golden Hills Drive Minneapolis, MN Minneapolis, MN Member FINRA L40529, L40530 (R-5/2011) Page 12 of 12