Additional index features
INDEX LOCK With both annual point-to-point and MY point-to-point crediting methods, you have the ability to lock in an index value on any of your individual indexed interest allocation(s) one time at any point during the crediting period: • For the annual point-to-point crediting method, the indexed interest credit will be applied at the end of the crediting period based on the locked index value and the applicable participation rate. • For the MY point-to-point to crediting method, you don’t have to wait until the end of the crediting period. The indexed interest credit is calculated based on the locked index value and the corresponding participation rate for the contract year you activate an Index Lock. 1 Any indexed interest credit will be applied on the next contract anniversary. You will then have the opportunity to reallocate to new allocation options. If you choose to lock in an index value, the beginning index value for your next crediting period will be the index value at the end of the previous contract anniversary (not the chosen locked-in index value). Because the lock is executed at the end of the trading day, the index value used to determine interest credited may be higher or lower than the index value at the time of request. Note: An Index Lock can only be activated on index returns that are greater than 0% unless otherwise indicated.
ACTIVATE THE INDEX LOCK AUTOMATICALLY If you wish, an Index Lock can be activated automatically with our Auto Lock feature. Simply set the index interest rate percentage you wish to target. You can set both upper and lower targets, as long as you set them above (upper) or below (lower) the current index interest rate percentage. If your allocation option’s index interest rate percentage reaches your target at the end of the day, Auto Lock will automatically lock in the index value until the end of the next contract anniversary. 2 You’re also free to adjust your target index interest rate percentage – either up or down – as many times as you wish, as long as Auto Lock hasn’t been activated during that crediting period and your upper target is greater (or lower target is less than) the current index interest rate percentage. And it’s easy to administer: Just log in to your contract online to set or reset. 3
See CSI-504 for Index Lock details and business rules.
Index Lock example: In this hypothetical example, the index value rose to 111 in month 18, at which time the decision was made to lock in the index value. The beginning index value (100) is compared to the locked index value (111), resulting in a change of 11%. If the participation rate were 80%, the indexed interest for this crediting period would be 8.8% (80% of 11%). By using Index Lock, you are able to lock in the current index value and be assured a positive index credit for the crediting period – no matter what happens during the remaining months.
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1 Current participation rates for each contract year can be found in the Allianz 360 SM Guide to Current Rates (M-7266). 2 Setting targets authorizes Allianz to automatically activate an Index Lock once the target is reached, based on the index interest rate percentage at the end of the business day. Targets need to be renewed after each crediting period unless auto renew is active. 3 You may activate an Index Lock manually online at any time, as long as an Auto Lock hasn’t already been activated. Activating Index Lock manually will cancel any current targets you have set for the current crediting period. If you decide to activate Index Lock manually – or if neither target has been reached at the end of your current crediting period – you will need to set new targets for the next crediting period unless auto renew is active. 7
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