A flexible investment approach for balancing risk and return

Transcription

1 Allianz Index Advantage Variable Annuity Allianz Life Insurance Company of North America A flexible investment approach for balancing risk and return (R-10/2015) Creating a balance of performance potential with a level of protection Our survey found that 82% of consumers believe they should have some FROM LOSS when investing. 1 We designed the Allianz Index Advantage Variable Annuity to help you meet your long-term financial goals. This index variable annuity provides tax deferral, 2 a variety of lifetime payout options, and a built-in death benefit during the accumulation phase. The contract allows you to allocate among three variable options and three innovative crediting methods (or as we call them, index strategies) the Index Protection Strategy, Index Performance Strategy, and Index Guard Strategy. Protection from all index losses Index Protection Strategy is a crediting method that offers principal protection from any amount of index loss due to negative index performance. That means you can help protect what you ve earned, while still having growth opportunities if annual s are flat or positive. Protection from small index losses Index Performance Strategy is a crediting method that provides upside potential with a level of protection from smaller index losses. This may be a good option if you are willing to take on some level of risk along with the opportunity to grow your assets, but does not fully protect against more significant index declines. Protection from big index losses Index Guard Strategy 3 is a crediting method that provides upside potential with a level of protection from more severe index losses, but does not protect against smaller index losses. This may be a good option if you have less tolerance for incurring a large loss, but still want the opportunity to grow your assets. 1 Allianz Investor Market Perceptions Survey, GfK KnowledgePanel TM, May This survey was commissioned by Allianz Life Insurance Company of North America. 2 Withdrawals will reduce the contract value and the value of any protection benefits. Withdrawals taken within the contract withdrawal charge schedule will be subject to a withdrawal charge. All withdrawals are subject to ordinary income tax and, if taken prior to age 59½, may be subject to a 10% federal additional tax. 3 The Index Guard Strategy is not available to contracts issued before August 24, This material must be preceded or accompanied by the Index Advantage client brochure (IXA-002) and a current prospectus (IXA-003). For more complete information about variable options, contact Allianz Life Financial Services, LLC at for a prospectus. The prospectuses contain details on investment objectives, risks, fees, and expenses, as well as other information about the variable annuity and variable options, which you should carefully consider. Please read the prospectuses thoroughly before sending money. Product and feature availability may vary by state and broker/dealer. IXA-059 Page 1 of 6

2 Three innovative index strategies offering different levels of protection NO DOWNSIDE Index Protection Strategy offers principal protection from any amount of index loss due to negative index performance with the potential for some growth with a Declared Protection Strategy Credit (DPSC). KNOW YOUR RISK KNOW YOUR DOWNSIDE Index Performance Strategy provides upside potential to the cap, with a level of protection. The level of protection defends against smaller index losses up to the buffer. This is helpful for smaller losses, but does not fully protect against more significant index declines. Index Guard Strategy provides upside potential to the cap, with a level of protection. The level of protection defends against larger index losses that fall below the floor. This is helpful for severe negative s, but does not protect against smaller index losses. DPSCs and caps are subject to significant change annually on the Index Anniversary. DPSCs, caps, buffers, and the floors can vary between indexes, between newly issued contracts and in-force contracts, and between in-force contracts issued on different days and in different years. DPSCs and caps will never be less than 1.5%. The buffers will never be less than 5%. The floor will never be less than -25%. Page 2 of 6

3 Flexibility to protect in different markets These hypothetical examples show how a specified combination of allocations to the Index Protection Strategy, Index Performance Strategy, and Index Guard Strategy could react to a hypothetical using an assumed 10% cap, 10% current buffer, -10% current floor, and 3.5% DPSC. The results are hypothetical and are not intended to represent any recommended allocation or actual product or index performance or predict future results. These examples show only a few examples of different allocations. Actual allocations can be selected in increments of 1%. These scenarios are not valid when the buffer and floor are not equal, if the percentage allocated to each strategy is different from the percentage allocations shown, and if the index selected across the strategies is not the same. These examples do not take into account any allocations to the variable options. Results would be different if allocated to the variable options. The annual product fee of 1.25%, withdrawal charges, and contract maintenance charges are not reflected and, if deducted, would lower the results shown. You should consider all of a product s features and benefits and consult with a financial professional regarding your investment objectives and risk tolerance before purchasing a variable annuity. INDEX Protection from all index losses no downside singleyear DPSC 100% INDEX 100% If the annual is zero or positive, you will receive the Declared Protection Strategy Credit (DPSC), which is the amount of potential annual return that may be credited in any given year, no more and no less. If the annual is negative, there are no losses due to negative index performance and nothing is credited. 20% 3. 15% 3. 10% 3. 5% 3. 0% 3. -5% 0.00% -10% 0.00% -15% 0.00% -20% 0.00% -25% 0.00% -30% 0.00% INDEX Protection from small index losses know your risk singleyear performance credit 100% INDEX 100% If the annual is positive, you will receive a performance credit based on the (subject to an upper limit called the cap). If the annual is negative, you may receive a negative performance credit but only when the loss is greater than the buffer. The buffer absorbs the first 10% of a negative in any given year. Losses in excess of the buffer will reduce the contract value by the amount that exceeds the buffer. 20% 10.00% 15% 10.00% 10% 10.00% 5% 5.00% 0% 0.00% -5% 0.00% -10% 0.00% -15% -5.00% -20% % -25% % -30% % INDEX GUARD Protection from big index losses know your downside singleyear performance credit 100% INDEX GUARD 100% If the annual is positive, you will receive a performance credit based on the (subject to an upper limit called the cap). If the annual is negative, you will receive a negative performance credit, but the negative performance credit will never be less than the floor. The floor limits any negative to no less than -10%. Negative s beyond the -10% floor will not reduce your contract value. Page 3 of 6 20% 10.00% 15% 10.00% 10% 10.00% 5% 5.00% 0% 0.00% -5% -5.00% -10% % -15% % -20% % -25% % -30% %

4 By blending more than one index strategy, you can adjust the level of protection and performance potential that s appropriate for you. Define your risk INDEX INDEX Define your downside INDEX GUARD INDEX Cut your downside in half INDEX INDEX GUARD Define your risk by blending these two index strategies. 1 Define your downside by blending these two index strategies. 1 Cut your downside in half by blending these two index strategies to make all losses smaller. 20% 6.75% 15% 6.75% 10% 6.75% 5% 4.25% 0% 1.75% -5% 0.00% -10% 0.00% -15% % -5.00% -25% % % 20% 6.75% 15% 6.75% 10% 6.75% 5% 4.25% 0% 1.75% -5% % -5.00% -15% -5.00% -20% -5.00% -25% -5.00% -30% -5.00% 20% 10.00% 15% 10.00% 10% 10.00% 5% 5.00% 0% 0.00% -5% % -5.00% -15% % % -25% % % 1 The Index Protection Strategy only offers the S&P 500 Index. Therefore, the index strategies used in this example would need to be allocated to the S&P 500 Index for these scenarios to be valid. Page 4 of 6

5 Customize your allocation 34% 33% 33% 33% INDEX 34% INDEX 33% INDEX GUARD Customize your allocation by blending all three index strategies. 1 20% 7.86% 15% 7.86% 10% 7.86% 5% 4.51% 0% 1.16% -5% -1.65% -10% -3.30% -15% -5.00% -20% -6.70% -25% -8.40% -30% % To create a blend that helps meet your needs and to see how Allianz Index Advantage Variable Annuity may perform in a single year, go to our Index Advantage calculator at For information on the DPSC and caps currently offered, please consult your financial professional or visit 1 The Index Protection Strategy only offers the S&P 500 Index. Therefore, the index strategies used in this example would need to be allocated to the S&P 500 Index for these scenarios to be valid. The S&P 500 Index 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 have 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. Although an external market index or indexes will affect your Index Option Values, the Allianz Index Advantage Variable Annuity index options do not directly participate in any stock or equity investments. An allocation to the index options is not a purchase of shares of any stock or index fund, or a direct investment in an index. The external market index value does not include the dividends paid on the stocks underlying a stock index. You can lose money you allocate to the Index Performance Strategy or Index Guard Strategy as a result of index fluctuations, and that loss could be substantial. If the annual is 0%, you could lose money as a result of the deduction of any applicable contract fees and charges. Page 5 of 6

6 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 2.6 million contracts issued, Allianz helps 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. All annuity contract and rider guarantees, or annuity payout rates, are backed by the claims-paying ability of the issuing insurance company. They are not backed by the broker/dealer from which this annuity is purchased, by the insurance agency from which this annuity is purchased, or any affiliates of those entities, and none makes any representations or guarantees regarding the claims-paying ability of Allianz Life Insurance Company of North America (Allianz). Guarantees do not apply to the performance of the variable subaccounts, which will fluctuate with market conditions. Not FDIC insured May lose value No bank or credit union guarantee Not a deposit Not insured by any federal government agency or NCUA/NCUSF Product and feature availability may vary by state and broker/dealer. Products are issued by: Products are 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 ML: L40538 Page 6 of 6