• If the ending index value at the end of your crediting period is lower, you won’t receive indexed interest. • You also have the opportunity to activate an index lock one time at any point during the crediting period (described later). Monthly sum: Monthly sum is the most volatility- sensitive crediting method. It can provide interest in steady “up” markets, but it can be adversely affected by large monthly decreases. How it works: • On your contract anniversary each month, the index value is compared to the prior month’s value, and the percentage of change is calculated. • At the end of the year, the monthly index increases and decreases are added up. The increases may be subject to a cap; however, decreases are not limited by the cap. • If the final sum is positive, you’ll receive that amount as indexed interest. • If the sum is negative, you’ll receive no indexed interest. COMPONENTS Crediting methods have certain components that can affect how much indexed interest you receive: • Cap is the maximum interest rate the annuity can earn in a crediting period. • Participation rate determines what percentage of the index increase will be used to calculate your indexed interest.
Keep in mind that the rates associated with these components are declared at issue and are guaranteed for the length of the crediting period. At the end of the crediting period, they may change for the subsequent crediting period (for example, caps may be raised or lowered). Ask your financial professional for current and minimum rates. ENJOY AN INTEREST BONUS. The 360 Benefit offers an interest bonus. Put simply, we add a bonus to your contract that will result in a credit of 105% of the interest earned. So, if your allocations earned 4% interest for the year, we would actually credit 4.20% to your accumulation value. (4% x 5% = 0.20%; 4% + 0.20% = 4.20%).
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Allocation interest earned Interest bonus
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Allocation interest earned
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The interest bonus will continue for both fixed and indexed interest allocations and until you surrender your contract for a lump sum or take income, either as lifetime withdrawals or as annuity payments. Regardless of the allocation option(s) you choose, Allianz will credit the interest bonus each crediting period in which your allocation earns interest.
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