MINNEAPOLIS--(BUSINESS WIRE)--Allianz Life Insurance Company of North America (Allianz Life) today launched an enhancement to the Allianz Life Pro+® Fixed Index Universal Life Insurance (FIUL) Policy, adding a new blended index allocation option with a 2% annual floor, which is designed to offer more choice and flexibility for policyholders who want to grow the cash value of their policy. The blended index allocation is made up of the Dow Jones Industrial Average, EuroSTOXX 50®, Russell 2000® and Barclays Capital U.S. Aggregate Bond Index, with a 2% annual floor that provides another level of protection against market volatility.
“With this enhancement, Life Pro+ now provides consumers with the death benefit protection they desire through life insurance, but also more options for growing and protecting their cash value,” said Jason Wellmann, senior vice president of Life Insurance Sales for Allianz Life. “The ability to customize Life Pro+ to help meet specific needs is the key behind this product’s rising popularity and something we’ll continue to enhance to meet consumer demand.”
With the new blended index allocation option, if the index performance is positive, consumers can receive credited interest up to the current 11% cap1. If the index performance is flat or negative, the annual floor means clients still receive 2%2 credited interest. The annual reset locks in all credited interest each year – so it can never be lost due to negative index performance. Keep in mind that certain fees and expenses will reduce cash value.
Life Pro+ became the third best-selling FIUL product at the end of the first quarter 2012 (AnnuitySpecs.com, Indexed Sales & Market Report 1st Quarter, 2012). The death benefit, which is provided income-tax-free to beneficiaries, can address immediate needs that may include income replacement, a college funding strategy, paying down a mortgage or other debts, estate tax coverage, final expenses, and business succession. In addition to the death benefit, Life Pro+ provides the policyholder access to the available cash value income-tax-free via policy loans and withdrawals3. The 5.3% fixed participating loan rate is guaranteed, and among the most competitive participating loan rates available within the industry.
Optional Inflation Protection Rider
Life Pro+ also offers an innovative optional Inflation Protection Rider, which is available at an additional cost (based on age, gender, risk class and death benefit) at the time it is exercised. There is no additional cost if the rider is not exercised.
Launched in the second quarter of 2011, other advantages of Life Pro+ include:
- Tax advantages, including income-tax-free death benefit to beneficiaries, cash value that grows tax-deferred, and policy loans from the available cash value that are income-tax-free while the policy remains in force3.
- Cash value accumulation potential that can earn credited interest based on a variety of index allocations that include the S&P 500®, Nasdaq-100®, and an exclusive blended index. With the built-in annual reset feature, any indexed interest credited is locked in and can never be lost due to market volatility, meaning the policy’s cash value is guaranteed to never decrease due to negative index changes.
- Select index allocation options that offer higher caps or participation rates (available at an additional cost of 1%).
- Complete customization via optional riders, including an Inflation Protection Rider that can help protect purchasing power.
- Flexible premium payments to help meet financial goals. Premiums can be paid at any time and in any amount (subject to some limits), as long as policy expenses and cost coverage are met.
- Policy loans3 – including a low 5.3 % guaranteed participating loan interest rate – that can help supplement retirement income, supplemental college funding, financial emergencies or business succession planning.
Keep in mind that most life insurance policies require health underwriting and, in some cases, financial underwriting.
For more information about Life Pro+, visit www.allianzlife.com.
1 Cap is guaranteed on an annual basis and will never be less than 2.50%
2 Annual floor is guaranteed on an annual basis and will never be less than 1%.
3 Policy loans will reduce available cash values and death benefits, and may cause the policy to lapse or affect any guarantees against lapse. Additional premium payments may be required to keep the policy in force. In the event of a lapse, outstanding policy loans in excess of un-recovered cost basis will be subject to ordinary income tax. Tax laws are subject to change. You should consult a tax professional.
About Allianz Life
Allianz Life Insurance Company of North America, one of FORTUNE’s 100 Best Companies to Work For in 2012, has been keeping its promises since 1896. Today, it carries on that tradition, helping Americans achieve their retirement income and protection goals with a variety of annuities and life insurance products. As a leading provider of fixed index annuities, Allianz Life is part of Allianz SE, a global leader in the financial services industry with 142,000 employees worldwide. More than 78 million private and corporate customers rely on Allianz knowledge, global reach, and capital strength to help them make the most of financial opportunities.
Allianz Life Insurance Company of North America offers insurance and annuities in all states except New York. In New York, products are issued by Allianz Life Insurance Company of New York.