Q:

Are Allianz Life Insurance annuities a good investment for retirement?

A:

Quick Answer

Allianz Life Insurance annuities are a good investment for retirement. The annuities offer tax-deferred growth when people are investing for retirement and dependable income after retirement, Allianz Life Insurance Company claims. It states that the annuities provide lifetime income, principal protection and death benefit.

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Full Answer

Allianz offers annuities that meet the unique needs of different clients. The money clients invest in annuities grows tax-deferred. Annuities allow people to save a large amount of money and defer paying tax. When an investor withdrawals the money, the amount contributed is exempt from taxation, but the earnings are taxed at the income tax rate of the investor, as stated by the IRS. Annuities have no contribution limit. All the money invested compounds every year without taxation.

Allianz offers three types of annuities: indexed, variable and fixed. Index variables annuities have features of insurance products and securities. They let the investor participate in market gains and offer protection if the market drops. The return on the investment is based on the stock market's performance, as stated by Allianz Life Insurance Company.

Variable annuities allow investors to choose different investment options. There is a possibility of greater returns based on the investment options the client chooses, but they could lose their principal and returns if the market goes down, according to Forbes.

Fixed index annuities offer a fixed amount of periodic payments and a minimum rate of interest without participating in the stock market, as stated by Entrepreneur.

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