Allianz Life Insurance Company of North America. Core Income 7 Fixed Index Annuity. Benefit rider C54370, R95374 # (R 10/2014)

Transcription

1 Allianz Life Insurance Company of North America Core Income 7 Fixed Index Annuity and Core Income Benefit rider # (R 10/2014) C54370, R95374

2 Agenda 1. Knowns and unknowns of retirement 2. Benefits of fixed index annuities (FIA) 3. Core Income 7 Annuity and Core Income Benefit rider¹ ¹The Core Income Benefit rider is included at an additional charge. 2

3 RETIREMENT KNOWNS AND UNKNOWNS 1 SOLUTIONS for retirement realities Planning for the knowns and unknowns of retirement

4 The knowns and unknowns of retirement RETIREMENT KNOWNS AND UNKNOWNS RETIREMENT KNOWNS RETIREMENT UNKNOWNS Increased life expectancies Inflation Managing taxes 4

5 The knowns and unknowns of retirement RETIREMENT KNOWNS AND UNKNOWNS RETIREMENT KNOWNS Increased life expectancies Inflation RETIREMENT UNKNOWNS Social Security Inflation and tax rates Managing taxes Market volatility 5

6 RETIREMENT KNOWNS AND UNKNOWNS Allianz We re more than one thing 6

7 RETIREMENT KNOWNS AND UNKNOWNS Allianz We re more than one thing Increasing income potential (may be available through additional cost riders) to assist with inflation 7

8 RETIREMENT KNOWNS AND UNKNOWNS Allianz We re more than one thing Increasing income potential (may be available through additional cost riders) to assist with inflation Asset protection to help preserve a portion of your retirement savings from market volatility Guarantees are backed by the financial strength and claims paying ability of the issuing insurer. 8

9 RETIREMENT KNOWNS AND UNKNOWNS Allianz We re more than one thing Increasing income potential (may be available through additional cost riders) to help you keep up with inflation Asset protection to help preserve a portion of your retirement savings from market volatility Tax control to help manage your assets with more efficiency and flexibility using several distribution options of your choice 9

10 2 Benefits of FIXED INDEX ANNUITIES

11 BENEFITS OF FIXED INDEX ANNUITIES Benefits of fixed index annuities TAX DEFERRAL INDEXED INTEREST POTENTIAL When clients begin receiving money from their nonqualified annuity contract, they pay ordinary income taxes only on the earnings. Withdrawals are taxed as ordinary income and, if taken before age 59½, a 10% federal additional tax may apply. PROTECTION Accumulation Guaranteed income Legacy Purchasing an annuity within a retirement plan that provides tax deferral under sections of the Internal Revenue Code results in no additional tax benefit. An annuity should be used to fund a qualified plan based upon the annuity s features other than tax deferral. Other benefits of using an annuity to fund a qualified plan or an IRA include lifetime income options and guaranteed death benefit payout options. All annuity features, risks, limitations, and costs should be considered prior to purchasing an annuity within a tax qualified retirement plan. 11

12 BENEFITS OF FIXED INDEX ANNUITIES Benefits of fixed index annuities TAX DEFERRAL INDEXED INTEREST POTENTIAL When clients begin receiving money from their nonqualified annuity contract, they pay ordinary income taxes only on the earnings. Withdrawals are taxed as ordinary income and, if taken before age 59½, a 10% federal additional tax may apply. PROTECTION Accumulation Guaranteed income Legacy Although an external index may affect your interest credited, the contract does not directly participate in any equity or fixed income investments. You are not buying shares in an index. 12

13 BENEFITS OF FIXED INDEX ANNUITIES Benefits of fixed index annuities TAX DEFERRAL INDEXED INTEREST POTENTIAL When clients begin receiving money from their nonqualified annuity contract, they pay ordinary income taxes only on the earnings. Withdrawals are taxed as ordinary income and, if taken before age 59½, a 10% federal additional tax may apply. PROTECTION Accumulation Guaranteed income Death benefit Purchasing an annuity within a retirement plan that provides tax deferral under sections of the Internal Revenue Code results in no additional tax benefit. An annuity should be used to fund a qualified plan based upon the annuity s features other than tax deferral. Other benefits of using an annuity to fund a qualified plan or an IRA include lifetime income options and guaranteed death benefit payout options. All annuity features, risks, limitations, and costs should be considered prior to purchasing an annuity within a tax qualified retirement plan. Guarantees are backed by the financial strength and claims paying ability of Allianz Life Insurance Company of North America. 13

14 BENEFITS OF FIXED INDEX ANNUITIES BENEFITS OF FIAs Protection benefits Three types: ACCUMULATION Principal and credited interest are protected, even if the markets go down. Surrender penalties may apply to early withdrawals, which may reduce principal and any earned interest. 14

15 BENEFITS OF FIXED INDEX ANNUITIES BENEFITS OF FIAs Protection benefits Three types: ACCUMULATION GUARANTEES Principal and credited interest are protected, even if the markets go down. Guaranteed income for life, locked in interest credits, and transfer of risk to insurance company. With the purchase of any additional cost riders, the contract's values will be reduced by the cost of the rider. This may result in a loss of principal and interest in any year in which the contract does not earn interest or earns interest in an amount less than the rider charge. Guarantees are backed by the financial strength and claims paying ability of Allianz Life Insurance Company of North America. 15

16 BENEFITS OF FIXED INDEX ANNUITIES BENEFITS OF FIAs Protection benefits Three types: ACCUMULATION GUARANTEES DEATH BENEFIT Principal and credited interest are protected, even if the markets go down. Guaranteed income for life, locked in interest credits, and transfer of risk to insurance company. A death benefit that can be passed on to beneficiaries (before annuity payments begin). With the purchase of any additional cost riders, the contract's values will be reduced by the cost of the rider. This may result in a loss of principal and interest in any year in which the contract does not earn interest or earns interest in an amount less than the rider charge. 16

17 3 Core Income 7 Annuity and Core Income Benefit rider

18 CORE INCOME 7 ANNUITY + CORE INCOME BENEFIT RIDER Core Income 7 Annuity and Core Income Benefit rider can help you accumulate money in three ways 1 INDEXED INTEREST Opportunity for indexed interest The annual charge for the Core Income Benefit rider is 1.05% of the contract s accumulation value and guaranteed minimum value (in most states). With the purchase of any additional cost riders, the contract's values will be reduced by the cost of the rider. This may result in a loss of principal and interest in any year in which the contract does not earn interest or earns interest in an amount less than the rider charge. 18

19 Your interest options CORE INCOME 7 ANNUITY + CORE INCOME BENEFIT RIDER FIXED INTEREST Earned interest at a fixed rate FOUR INDEX ALLOCATION OPTIONS S&P 500 Index Nasdaq 100 Index Russell 2000 Index Barclays US Dynamic Balance Index FLEXIBILITY Allocate in 1% increments and ability to change each contract anniversary Although an external index may affect your interest credited, the contract does not directly participate in any equity or fixed income investments. You are not buying shares in an index. The index value does not include the dividends paid on the equity investments underlying any equity index 19

20 CORE INCOME 7 ANNUITY + CORE INCOME BENEFIT RIDER Crediting methods at a glance Annual point to point with a cap Annual pointto point with a spread Ending index value Beginning index value Beginning index value = Annual percent of change Then, apply cap or subtract spread depending on crediting method 20

21 CORE INCOME 7 ANNUITY + CORE INCOME BENEFIT RIDER Core Income 7 Annuity and Core Income Benefit rider can help you accumulate money in three ways 1 2 INDEXED INTEREST Opportunity for indexed interest ANNUAL RESET This year s ending value becomes the next year s starting value. 21

22 CORE INCOME 7 ANNUITY + CORE INCOME BENEFIT RIDER Core Income 7 Annuity and Core Income Benefit rider can help you accumulate money in three ways INDEXED INTEREST Opportunity for indexed interest ANNUAL RESET This year s ending value becomes the next year s starting value. ACCUMULATION PROTECTION Principal and credited interest are PROTECTED, even if the markets go down. With the purchase of any additional cost riders, the contract's values will be reduced by the cost of the rider. This may result in a loss of principal and interest in any year in which the contract does not earn interest or earns interest in an amount less than the rider charge. Early withdrawals may result in loss of principal and credited interest due to surrender charges. 22

23 CORE INCOME 7 ANNUITY + CORE INCOME BENEFIT RIDER Opportunities for income increases The longer you wait, THE HIGHER YOUR INCOME WITHDRAWAL 1 PERCENTAGE A REWARD FOR WAITING 23

24 CORE INCOME 7 ANNUITY + CORE INCOME BENEFIT RIDER Two income withdrawal options OPTION 1: Predictable income dependability Income withdrawals can begin as early as age

25 CORE INCOME 7 ANNUITY + CORE INCOME BENEFIT RIDER Two income withdrawal options OPTION 1: Predictable income dependability OPTION 2: Increasing income opportunity Income withdrawals can begin as early as age

26 OPTION 1 CORE INCOME 7 ANNUITY + CORE INCOME BENEFIT RIDER You choose your income withdrawal option at the time you plan to use it Meet Cindy Age 55 Retiring in the next 10 years Lifelong saver Needs to build and protect lifetime income Financial goals Retirement strategy that provides a level of protection Maintain desired lifestyle Predictable income dependability Core Income Benefit rider fee is 1.05% of the contract s accumulation value and guaranteed minimum value (in most states), and cannot change once the contract is issued. This character is fictional and is not an actual Allianz customer. Your own decisions should be made in light of your own financial situations. 26

27 OPTION 1 CORE INCOME 7 ANNUITY + CORE INCOME BENEFIT RIDER Predictable income dependability Lifetime payout percentage increases every year contract is held before beginning income withdrawals, beginning at age 45. AGE AT ISSUE SINGLE PAYOUT BASE JOINT PAYOUT BASE ANNUAL PAYOUT PERCENTAGE INCREASE SINGLE PAYOUT BASE AFTER 10 YEAR DEFERRAL JOINT PAYOUT BASE AFTER 10 YEAR DEFERRAL % 3.50%.35% 7.50% 7.00% % 4.00%.40% 8.50% 8.00% % 4.50%.45% 9.50% 9.00% % 5.00%.50% 10.50% 10.00% % 5.50%.55% 11.50% 11.00% % 6.00%.60% 12.50% 12.00% % 6.50%.65% 13.50% 13.00% 27

28 OPTION 2 CORE INCOME 7 ANNUITY + CORE INCOME BENEFIT RIDER You choose your income withdrawal option at the time you plan to use it Meet Tom Age 55 Retiring in the next 10 years Not comfortable with savings Needs to build and protect lifetime income Financial goals Retirement strategy that provides a level of protection Maintain desired lifestyle Increasing income opportunity Rider fee is 1.05% and cannot change once the contract is issued. This character is fictional and is not an actual Allianz customer. Your own decisions should be made in light of your own financial situations. 28

29 OPTION 2 CORE INCOME 7 ANNUITY + CORE INCOME BENEFIT RIDER Increasing income opportunity Lifetime payout percentage increases every year contract is accumulating, beginning at age 45. AGE AT ISSUE SINGLE PAYOUT BASE JOINT PAYOUT BASE ANNUAL PAYOUT PERCENTAGE INCREASE SINGLE PAYOUT BASE AFTER 10 YEAR DEFERRAL JOINT PAYOUT BASE AFTER 10 YEAR DEFERRAL % 2.50%.35% 6.50% 6.00% % 3.00%.40% 7.50% 7.00% % 3.50%.45% 8.50% 8.00% % 4.00%.50% 9.50% 9.00% % 4.50%.55% 10.50% 10.00% % 5.00%.60% 11.50% 11.00% % 5.50%.65% 12.50% 12.00% 29

30 CORE INCOME 7 ANNUITY + CORE INCOME BENEFIT RIDER Payout percentages The percentage of income available for lifetime withdrawals increases every year prior to income beginning. AGE YEARS ACCUMULATING 30

31 CORE INCOME 7 ANNUITY + CORE INCOME BENEFIT RIDER Payout percentages The percentage of income available for lifetime withdrawals increases every year prior to income beginning. OPTION 2 Increasing income opportunity 3.5% 3.90% 4.30% 4.70% 5.10% 5.50% 5.90% 6.30% 6.70% 7.10% 7.50% AGE YEARS ACCUMULATING 31

32 CORE INCOME 7 ANNUITY + CORE INCOME BENEFIT RIDER Payout percentages The percentage of income available for lifetime withdrawals increases every year prior to income beginning. OPTION 1 Predictable income dependability OPTION 2 Increasing income opportunity 6.10% 5.70% 5.30% 4.90% 5.10% 4.5% 4.70% 4.30% 3.90% 3.5% 6.50% 5.50% 6.90% 5.90% 8.10% 7.70% 7.30% 7.10% 6.70% 6.30% 8.50% 7.50% AGE YEARS ACCUMULATING 32

33 CORE INCOME 7 ANNUITY + CORE INCOME BENEFIT RIDER Core Income 7 + the Core Income Benefit rider¹ A combination of features for your retirement. Indexed interest growth opportunity Increasing withdrawal percentages every year before income begins, beginning at age 45 Lifetime income withdrawal choices 1 There is an annual charge of 1.05% for the Core Income Benefit rider based on the contract s accumulation value. 33

34 Disclosures Allianz Life Insurance Company of North America (Allianz) Standard & Poor s 500 index (S&P 500 ) is comprised of 500 stocks representing major U.S. industrial sectors. S&P is a registered trademark of Standard & Poor s Financial Services LLC ( S&P ). This trademark has been licensed for use by S&P Dow Jones Indices LLC and its affiliates. S&P and S&P 500 are trademarks of S&P. These trademarks have been sublicensed for certain purposes by Allianz Life Insurance Company of North America ( Allianz ). The S&P 500 is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by Allianz. Allianz products are not sponsored, endorsed, sold, or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, or their respective affiliates and neither S&P Dow Jones Indices LLC, Dow Jones, S&P, or their respective affiliates make any representation regarding the advisability of investing in such product. 34

35 Disclosures Allianz Life Insurance Company of North America (Allianz) The Nasdaq 100 Index includes 100 of the largest domestic and international non financial securities listed on The Nasdaq Stock Market, based on capitalization. The Nasdaq 100, Nasdaq 100 Index, Nasdaq, and OMX are registered trademarks of NASDAQ OMX Group, Inc. (which with its affiliates are the Corporations) and are licensed for use by Allianz Life Insurance Company of North America. The product(s) have not been passed on by the Corporations as to their legality or suitability. The product(s) are not issued, endorsed, sold, or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE PRODUCT(S). Russell 2000 Index is an equity index that measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which is made up of 3,000 of the biggest U.S. stocks. The Russell 2000 is constructed to provide a comprehensive and unbiased small cap barometer and is completely reconstituted annually to ensure larger stocks do not affect the performance and characteristics of the true small cap index. The Russell 2000 Index is a trademark of Russell Investments and has been licensed for use by Allianz Life Insurance Company of North America. The product is not sponsored, endorsed, sold, or promoted by Russell Investments and Russell Investments makes no representation regarding the advisability of investing in the product. 35

36 Disclosures Allianz Life Insurance Company of North America (Allianz) The Barclays Capital U.S. Aggregate Bond Index is comprised of U.S. investment grade, fixed rate bond market securities, including government agency, corporate, and mortgage backed securities. The Barclays US Dynamic Balance Index is comprised of the Barclays Capital U.S. Aggregate Bond Index and the S&P 500 Index and shifts weighting daily between them based on realized market volatility. Allianz products are not sponsored, endorsed, sold, or promoted by Barclays Capital. Barclays Capital makes no representation or warranty, express or implied, to the owners of Allianz products or any member of the public regarding the advisability of investing in securities generally or in Allianz products particularly or the ability of the Barclays Capital Indices, including without limitation, the Barclays Capital U.S. Aggregate Bond Index and Barclays US Dynamic Balance Index, to track general bond market performance. Barclays Capital's only relationship to Allianz Life Insurance Company of North America and its affiliates ( Allianz ) is the licensing of the Barclays Capital U.S. Aggregate Bond Index and Barclays US Dynamic Balance Index which is determined, composed and calculated by Barclays Capital without regard to Allianz or Allianz products. Barclays Capital has no obligation to take the needs of Allianz or the owners of Allianz products into consideration in determining, composing or calculating the Barclays Capital U.S. Aggregate Bond Index and Barclays US Dynamic Balance Index. Barclays Capital is not responsible for and has not participated in the determination of the timing of, prices of, or quantities of Allianz products to be issued or in the determination or calculation of the equation by which Allianz products are to be converted into cash. Barclays Capital has no obligation or liability in connection with the administration, marketing or trading of Allianz products. BARCLAYS CAPITAL DOES NOT GUARANTEE THE QUALITY, ACCURACY AND/OR THE COMPLETENESS OF THE BARCLAYS CAPITAL INDICES, OR ANY DATA INCLUDED THEREIN, OR OTHERWISE OBTAINED BY ALLIANZ, OWNERS OF ALLIANZ PRODUCTS, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE BARCLAYS CAPITAL INDICES, INCLUDING WITHOUT LIMITATION, THE BARCLAYS CAPITAL U.S. AGGREGATE BOND INDEX AND BARCLAYS US DYNAMIC BALANCE INDEX, IN CONNECTION WITH THE RIGHTS LICENSED HEREUNDER OR FOR ANY OTHER USE. BARCLAYS CAPITAL MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND HEREBY EXPRESSLY DISCLAIMS ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE BARCLAYS CAPITAL INDICES, INCLUDING WITHOUT LIMITATION, THE BARCLAYS CAPITAL U.S. AGGREGATE BOND INDEX AND BARCLAYS US DYNAMIC BALANCE INDEX, OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL BARCLAYS CAPITAL HAVE ANY LIABILITY FOR ANY SPECIAL, PUNITIVE, INDIRECT, OR CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS), EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES Guarantees are backed by the financial strength and claims paying ability of Allianz Life Insurance Company of North America. Product and feature availability may vary by state and broker/dealer. 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 Any distributions are subject to ordinary income tax and, if taken prior to age 59 ½, a 10% federal additional tax. Core Income 7 Annuity, C54370, and it s Core Income Benefit rider, R95374, are issued by Allianz Life Insurance Company of North America. 36

37 If you re looking for strength and reliability, look to Allianz High ratings from independent rating agencies For a full description of how rating categories are assigned, please refer to the rating agencies websites: A.M. Best¹ Standard & Poor s² Moody s³ A (Excellent) AA (Very Strong) A2 (Good) ¹The A.M. Best rating of A (Excellent) is the 3rd highest of 16 possible ratings, and was affirmed July ²The Standard and Poor s rating of AA (Very Strong) is the 3rd highest of 21 possible ratings, and was affirmed February ³The Moody s rating of A2 (Good) is the 6th highest of 21 possible ratings, and was affirmed for March The ratings of independent rating agencies are a measure of financial strength and claims paying ability. The ratings are based on an analysis of financial results and evaluation of management objectives and strategies. The ratings do not pertain to investment options, which fluctuate with market conditions. The ratings do not indicate approval by the analysts and are subject to change. 37

38 Allianz Life Insurance Company of North America is part of the global financial powerhouse of Allianz SE 31 st largest company¹ 2 nd largest money manager² 2 nd largest company in the diversified insurance industry, based on sales 3 2 nd largest company in the diversified insurance industry, based on assets 3 1 Fortune Global 500, Fortune, July, 2013 Fortune s ranking is based on revenue. ² Allianz SE: P&I/Towers Watson World 500, October Ranked by total AUM. ³Data from Forbes Global 2000: The World s Biggest Public Companies, Forbes, April Guarantees are backed by the financial strength and claims paying ability of Allianz Life Insurance Company of North America. Products are issued by Allianz Life Insurance Company of North America 5701 Golden Hills Drive, Minneapolis, MN

39 What is the next step? Ask your financial professional if Core Income 7 may be a good fit for your overall retirement strategy. 39

40 OUR MISSION: Allianz Life Insurance Company of North America is the trusted authority in insured retirement solutions for consumers working with a financial professional.