Allianz Life Insurance Company of North America, Minneapolis, has announced the launch of the Simple Income III Rider on the MasterDex X Fixed Index Annuity, making it the first FIA to offer a lifetime income withdrawal rider with an option for inflation-protected income payments. Simple Income III provides clients with three income payment options – level, indexed, and inflation-protected – to give them more flexibility in providing for their retirement income. With inflation-protected payments, increases in lifetime income are based on increases in the Consumer Price Index (CPI-U).
Inflation is the number one retirement risk, according to the 2009 Risks and Process of Retirement Survey Report from the Society of Actuaries. Furthermore, at an assumed average of 3% annual inflation, $100,000 of purchasing power decreases by 14% in five years and by 45% in 20 years. Simple Income III can help ensure that purchasing power remains strong if the cost of living increases.
The CPI-U-linked payment option protects purchasing power throughout the first 20 years of income, up to 10% per year. In addition, the optional Simple Income III Rider offers an 8% bonus added to the withdrawal value each year until income withdrawals begin or the client turns age 90, whichever comes first. It is available for an annual cost of 0.60% of the withdrawal value. The withdrawal value is only available as lifetime withdrawals and cannot be taken in a lump sum.
For more information, visit: www.allianzlife.com.