Allianz Benefit Control ABC Annuity Review

The hypothetical historical performance provided herein showcases the annualized return of allocation strategies, representing the investment's annual growth rate considering compounding effects. Similar analyses can be found for each account in official fixed index annuity illustrations provided by insurance carriers.

What's not reflected:
The annualized return does not encompass rider charges, strategy fees, or applicable premium bonuses.

Notes on rates:
The information presented assumes the annuities' current caps, spreads, participation rates, and other related rates, without guarantee.

No guarantees:
These actual elements are subject to change over time, resulting in potentially higher or lower outcomes. Additionally, no single index consistently outperforms in every scenario. It is advisable to consult with a properly licensed and educated annuity professional before making any decisions.

With the Allianz ABC annuity, what you see is what you get – the company doesn't impose any additional fees.

With Allianz Benefit Control, you can allocate your contract's funds to various external indexes, such as the S&P 500, and your contract earns indexed interest based on the performance of these indexes.

The best part is your money is not directly invested in stocks or shares of the indexes; instead, the indexes are tracked, which means your principal is protected even if the stock market experiences a downturn.

Crediting methods are the means by which indexed interest is calculated and credited to your Allianz Benefit Control annuity contract based on the performance of the indexes you've chosen. The available crediting methods offer different ways to measure index performance and determine the interest earned to select the method that best fits your goals.

As is common with annuities, the Allianz Benefit Control Annuity imposes surrender charges for withdrawals that exceed the free withdrawal amount or for surrendering the contract entirely during the first 10 years. These charges, expressed as a percentage of the withdrawn amount, gradually decrease over time until they reach zero at the end of the surrender charge period, as detailed in the table below.

These are the unique features that set Allianz Benefit Control apart from other annuities.

The Bonus Control benefit is a unique feature of the ABC whereby you get to control how interest is credited between the two primary values in your account: the protected income value (PIV) and the accumulation value. Each contract year, you can choose between two options based on your financial goals.

Option One - Accelerated PIV Bonus Rider
 

• Aggressively pursue your income savings goals
• 250% PIV interest bonus factor
• 50% accumulation value interest factor

How it works:

• 2.5 times any earned interest is credited to your PIV
• Half of any indexed interest is credited to your accumulation value

Ideal if you plan to take income withdrawals in the future, as withdrawals are based on the PIV.

Option Two - Balanced PIV Bonus Rider

• Take a more balanced approach to pursuing your annuity values
• 150% PIV interest bonus factor
• 100% accumulation value interest factor

How it works:

• 1.5 times any earned interest is credited to your PIV
• All earned interest is credited to your accumulation value

PIV's growth is more modest when compared to Option one, but after seven years, the accumulation value is higher.

The Allianz Income Multiplier (AIM) is a unique feature that allows you to withdraw up to twice your annual maximum if you meet certain health-related conditions.
To qualify for the AIM benefit, you must have owned your annuity for at least five years and either:

• Be unable to perform at least two of the six Activities of Daily Living (ADLs) without assistance or
• Be confined to a qualified hospital, nursing facility, or assisted living facility for a minimum of 90 days within a 120-day period.

Activities of Daily Living (ADLs) are essential tasks that most adults can perform independently, including eating, bathing, getting dressed, etc.

The Allianz Benefit Control annuity offers a triumvirate of flexibility, control, and stability, making it an attractive option for retirees seeking to secure their financial future. With its diverse index options, crediting methods, and customizable benefits like the Bonus Control Benefit and Allianz Income Multiplier, the ABC annuity is a well-rounded solution, if not a little conservation solution, for those who want to balance growth potential and security in their retirement portfolio.