Already a recognized leader in the annuity space, Allianz Life Insurance Co. of North America has launched a new fixed index annuity, VersaDex. Allianz says the new product combines the long-term tax-deferred asset growth potential of traditional indexed annuities with distribution options that offer flexibility and versatility.
VersaDex offers traditional annuitization after five years, but it also has two income options available after seven years, based on the vale of an enhanced withdrawal benefit. Both EWB income options are taken as partial withdrawals and are subject to ordinary income taxes.
Option one is scheduled withdrawals. Contract owners can take up to 10 percent of EWB value in the first year of scheduled withdrawals. The option also allows the choice of suspending and restarting income payments from year to year, switching to lifetime income (option two) or receiving remaining contract value at any time.
Option two is lifetime income, an income that cannot be outlived. The initial payment amount is determined by two things: EWB value and age of the contract owner when the income stream begins.
Full accumulation withdrawal is available after seven years with no surrender charges. For additional information, visit www.allianzlife.com.