NU Online News Service, Oct. 21, 2003, 3:49 p.m. EDT – Allianz Life Insurance Company of North America, Minneapolis, has responded to consumer confusion about investment returns by introducing the 5% Bonus PowerDex Elite Annuity.
The product is a flexible-premium, deferred, equity indexed annuity.
The annuity credits an immediate 5% premium bonus to all premiums received during the first five policy years.
Annuity holders can share in some of the gains of the S&P 500 stock index by earning interest credits linked to the performance of the index. Allianz Life, a unit of Allianz A.G., Munich, says it will use its financial strength to protect holders from losing principal if the value of the S&P 500 falls.
Allianz Life is appealing to older consumers by offering an idea Benefit feature that can increase monthly annuity payments by as much as 60% for holders who choose to receive a form of life income, then lose the ability to perform certain activities of daily living.