Allianz Life introduces first FIA income rider to offer inflation-protected income payments

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.