How does an Allianz life annuity work?


Quick Answer

An Allianz Life fixed index annuity involves payment to the insurance company, which then invests it on behalf of all annuity owners. A guaranteed fixed rate of interest is applied to the principal annuity that allows tax deferred growth as per the contract. After a specified time period, owners can receive the accumulated amount in a lump sum. Allianz Life offers different fixed annuity options, including Allianz 222, Allianz 360, Essential Income 7 and Allianz Endurance Plus, states Allianz.

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Full Answer

Allianz Life offers three types of annuity options: a fixed index annuity, a variable annuity and an index variable annuity, notes the company. Variable annuities offers greater potential return depending on the chosen variable index option. This type of annuity involves market risk that can lead to loss of money. The performance of an investment option determines the rate of growth on the contract’s value. Allianz offers two types of variable annuities: Allianz Vision and Allianz Connections.

Index variable annuities offer growth through market participation while protecting a portion of the accumulated assets. The Allianz Index Advantage variable annuity provides three traditional variable options and two indexing strategies. It also includes a death benefit during the accumulation phase. All annuity owners are advised to consult with a financial professional to work out a suitable investment portfolio and objectives, notes Allianz.

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