To help clients lock in gains and limit losses on their Allianz Life index variable annuities (IVAs), Allianz Life Insurance Company of North America (Allianz Life®) today announced a new automatic performance lock feature.
The new feature locks in the current value on any selected index option with a daily valuation, and gives clients the flexibility to capture increases and limit losses once each index year between index anniversaries. This enhancement is in addition to the manual performance lock feature that currently exists on Allianz Life IVAs.
Each index year, clients who opt in will have the opportunity to set targets above and/or below their current index option value which is determined using the daily adjustment. If that target is met, it will automatically initiate a performance lock for the respective index option on the next business day.1 Targets can be changed or removed for any unlocked index option anytime throughout the index year before the index option is locked. These targets expire on the last business day before the index anniversary, but can be reset for the new index year. The performance lock can be set at any time during the index year.
“This new strategy can help IVA clients who are looking for the opportunity for a level of protection and greater control over their annuity, but still want the potential for growth opportunities,” said Matt Gray, senior vice president, Product Innovation, Allianz Life. “The automatic performance lock can also help relieve financial professionals from constantly having to monitor index option values.”
New Index Option Unlocks International Markets
In addition, clients with Allianz Life IVAs have access to a new index available with crediting methods (also known as index strategies), the iShares® MSCI Emerging Markets ETF, in partnership with BlackRock®.
“With the new index, clients can now access greater global exposure and international diversification opportunities within their IVA,” said Gray.
1. Note that the Index Option Value determined by the Daily Adjustment on the Lock Date could be greater or less than the target reached on the prior Business Day. The locked Index Option Value will likely vary from the selected target.
BlackRock is not affiliated with Allianz Life Insurance Company of North America, Allianz Life Insurance Company of New York, Allianz Life Financial Services, LLC or any of their affiliated companies.
Variable annuities are subject to investment risk, including possible loss of principal. Investment returns and principal value will fluctuate with market conditions so that units, upon distribution, may be worth more or less than the original cost.
For more complete information about Allianz Life Insurance Company of North America index variable annuities and variable options, call Allianz Life Financial Services, LLC, at 800-542-5427 for a prospectus. The prospectuses contain details on investment objectives, risks, fees, and expenses, as well as other information about the index variable annuity and variable options, which clients should carefully consider. Clients should read the prospectuses thoroughly before sending money.
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.
Products are issued by Allianz Life Insurance Company of North America, 5701 Golden Hills Drive, Minneapolis, MN 55416-1297, and distributed by its affiliate, Allianz Life Financial Services, LLC, member FINRA, 5701 Golden Hills Drive, Minneapolis, MN 55416-1297. (L40538, L40538-NF, L40538-IAI)
For more information and index disclosure, visit: https://www.allianzlife.com/annuities/index-variable-annuities.