Allianz Life Insurance Company of North America has introduced a variable annuity contract that may appeal to consumers who want exposure to the stocks of a wide range of European companies and smaller U.S. companies, as well to the stocks of the biggest publicly traded U.S. companies.
The Golden Valley, Minnesota-based unit of Allianz SE offers access to extra diversification through the new Allianz Index Advantage Income Variable Annuity contract.
The new contract gives purchasers a choice of four contract value investment allocations, or “strategies,” that put some of the contract value in fixed-income securities, and some in instruments tied to the performance of the S&P 500 Index, the Russell 2000 Index, the Nasdaq-100 Index, and the Euro Stoxx 50.
Annuity holders who are willing to accept market-drop risk can get higher maximum returns than holders who want Allianz Life to protect all of their contract value.
Allianz Life is offering several payout options: life, life with period certain, joint and last survivor, joint and last survivor with period certain, and refund life.
Allianz Life has designed the contract to reward purchasers who put off collecting retirement income. Starting at age 45, the company guarantees the contract lifetime income percentage to increase each year the holder defers collecting income payments.
Holders who have waited a year, are at least age 50 and want to retire can choose either level payment options or income payment options set to increase, Allianz Life says.
Allianz Life is offering the contract to purchasers ages 0 to 80, according to a summary description on the company’s website.
The minimum initial purchase payment is $10,000.
The maximum purchase payment is $1 million.
Because the new contract is a variable annuity, and is registered as a security, agents and purchasers can see a contract prospectus.