CORE INCOME 7® ANNUITY
Your allocation options With Core Income 7®, you can earn fixed interest – or choose to base potential indexed interest on changes in several external market indexes.
Fixed interest allocation Core Income 7 ® Annuity lets you earn interest at a fixed rate, if you wish. Allianz calculates and credits fixed interest daily, based on the rate we establish at the beginning of each contract year. Indexed interest allocations You can also choose to earn potential interest based on changes in your choice of several external market indexes: 1 • Benchmark indexes – S&P 500 ® Index
• If the ending index value is higher than the beginning index value, a cap, spread, or participation rate (see the “components” section for more details) is applied to determine the amount of indexed interest your contract will receive. • If the value is lower, your contract won’t receive 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. • Spread is an amount subtracted from an index’s gain during 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. Flexibility Core Income 7 ® Annuity lets you choose from one or more allocations. In addition, you can change your allocation options. Allocation changes must be received within 21 days after the contract anniversary to be in effect for the next crediting period. Ask your financial professional which allocations are currently available.
– Russell 2000 ® Index – Nasdaq-100 ® Index • Exclusive benchmark indexes
– Bloomberg US Dynamic Balance Index II – Bloomberg US Dynamic Balance II ER Index
Crediting methods We use crediting methods to track the performance of your index(es). Core Income 7 ® offers two crediting methods:
• Annual point-to-point • 2-year point-to-point
These crediting methods use the index value from only two points in time. So they may be a good choice if you want to minimize the effects of market volatility between these points in time. How these crediting methods work: • On your applicable contract anniversary, the index value from the beginning of the crediting period is compared to the index value from the end of the crediting period. • The percentage of change in the index is calculated.
1 The indexes available within the contract are constructed to keep track of diverse segments of the U.S. or international markets, or specific market sectors. These indexes are benchmarks only. Indexes can have different constituents and weighting methodologies. Some indexes have multiple versions that can weight components or may track the impact of dividends differently. Although an index may affect your interest credited, you cannot buy, directly participate in, or receive dividend payments from any of them through the contract. 6
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