Full accumulation value: You can choose to receive your full accumulation value without penalty or MVA any time after seven contract years. If you cancel your contract during the first seven years, you will receive the cash value, which is equal to the accumulation value minus the full withdrawal charge and adjusted by the full MVA.
Start of contract year
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2
3
4
5
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7
8+
Withdrawal charge %
8.50% 8.00% 7.00% 6.00% 5.00% 4.00% 3.00% 0.00%
What is the market value adjustment (MVA)? An MVA is a calculation we use to adjust your values according to the interest rate environment when you take your withdrawal. The MVA may increase or decrease your contract’s cash value. However, the MVA can never cause your contract’s cash value to be less than the guaranteed minimum value or more than the accumulation value.
In general, if corporate bond yields at the time of the withdrawal are:
Then the cash value will be:
Less than when you added the premium Higher
Equal to when you added the premium Unaffected
Greater than when you added the premium Lower
What is indexed interest? Your annuity gives you the potential to earn interest based on changes in an external index. Allianz tracks the performance of the index(es) you choose, and if the return is positive, we credit your contract with indexed interest (based on the crediting method). But you don’t lose anything if the return is negative, because you’re not actually buying shares in the index or participating in the market. However, with the purchase of any additional- cost riders, the contract’s values will be reduced by the cost of the rider. This may result in a loss of principal and interest in any year the contract does not earn interest or earns interest in an amount less than the rider charge. What if I have to take required minimum distributions (RMDs)? If your Allianz annuity is held within a tax-qualified plan (IRA, SEP, etc.), required minimum distributions from your annuity will qualify as free partial withdrawals. The accumulation value and the amount available for free withdrawals will be reduced by the amount of the distribution(s). Can I annuitize my contract? Yes, after the first contract anniversary, but not later than the maximum annuity date. If annuity payments begin on or after the fifth contract anniversary, we use the accumulation value to calculate annuity payments. If annuity payments begin before the fifth contract anniversary, annuity payments are calculated using the cash value. What happens to my annuity if I die? If you die before receiving annuity payments, your beneficiary(ies) will receive a death benefit. The death benefit will be the greatest of your annuity’s accumulation value, guaranteed minimum value, or your premium minus any withdrawals and corresponding withdrawal charges, adjusted by any MVAs (net premium).
ASK YOUR FINANCIAL PROFESSIONAL about how Allianz Accumulation Advantage 7 tm Fixed Index Annuity can help you with your retirement goals.
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