Allianz Life Insurance Company of North America talks about how it backs its indexed universal life (IUL) insurance product index options in filings for two new indexed universal life
The Golden Valley, Minnesota-based insurer recently added the Allianz Life Pro+ Elite and Allianz Asset Pro+ policies to its IUL product family.
Allianz Life has given the Allianz Life Pro+ Elite policy a longer menu of index options, and it has aimed that product at life agents who are used to selling IUL policies.
The company is aiming the Allianz Asset Pro+ product, which is simpler and has a shorter index option menu, at financial professionals who work with broker-dealers and are not as familiar with IUL products.
Like all IUL issuers, Allianz Life is responsible for backing its IUL product interest guarantees.
In filings for the new products, Allianz Life shows how serious it is about meeting those guarantees by describing its hedging strategy. In an Allianz Life Pro+ Elite rate filing, for example, the company notes that it uses call options, put options, futures and other derivatives to back the indexed benefits in the policy.
Allianz Life goes a step further and gives the name of the individual who will be overseeing the company’s hedging strategies: Mike Scriver.
“Mike Scriver, senior vice president of hedge design management, monitors and manages our derivatives and the various asset/liability risks for this policy,” Allianz Life says, in a version of the filing posted by District of Columbia insurance regulators. “Mr. Scriver has over 23 years in the financial services industry including over 20 years of experience in the insurance industry and over 15 years of experience working with derivatives.”
Allianz Life — an arm of Allianz S.E. of Germany — will issue the new policies in every jurisdiction except for New York state.
The product aimed at traditional agents, the Allianz Life Pro+ Elite policy, offers more index options than the company’s older Allianz Life Pro+ policy.
The Allianz Life Pro+ Elite index menu includes a fixed-interest option, the Bloomberg US Dynamic Balance Index II, the Allianz True Balance index and the PIMCO Tactical Balanced Index.
Customers can also choose between getting an interest bonus each year or getting gains based on the performance of the index allocation options.
The new product aimed at the broker-dealer market, the Allianz Asset Pro+ policy, offers fewer index options than the Allianz Life Pro+ Elite policy, but it does offer purchasers access to interest bonus features , Allianz Life says.
Jason Wellmann, senior vice president of life insurance sales at Allianz Life, said in a statement about the product launch that Allianz Life wants to help all financial professionals offer clients life insurance solutions with the appropriate combination of protection and accumulation potential.
Allianz Life has posted more information about the Allianz Life Pro+ Elite and Allianz Asset Pro+ products in electronic brochures on its website.
The brochures show that Allianz Life will be offering the policies to smokers ages 18 to 75, to nonsmokers ages 18 to 80, and to children ages 0 to 17. There are three underwriting classes for adult nonsmokers, and two for adult smokers.
The minimum death benefit is $100,000, and the minimum premium is $300 per year.
The maximum death benefit is $65 million.
Product designers have accounted for the possibility that some insureds could live to 120: When an insured turns 120, the death benefit will equal the accumulation value.
Correction: An earlier version of this article described the current market area for the new Allianz life products incorrectly. The products will be sold in every state except for New York state.
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