ALLIANZ BENEFIT CONTROL® FIXED INDEX ANNUITY
A hypothetical example: How Allianz Benefit Control ® may work over the next 20 years Meet Megan, a hypothetical client. She is 58 years old and would like to start taking her retirement income at 65. Megan wants to make the most of the seven years before her targeted retirement age. Her financial professional recommends Allianz Benefit Control ® Annuity because its two bonuses can help her achieve that goal.
During the accumulation phase, Megan gets two bonuses
A When Megan places $100,000 in her annuity, the annuity immediately adds a 25% bonus to her protected income value (PIV). That means her available lifetime withdrawals would be based on
$12,500.) This brings her protected income value up to $137,500 in the first year.
D The index Megan selects doesn’t deliver a positive result, so her contract doesn’t earn indexed interest. But her accumulation value and protected income value never go down due to a drop in an index. (See pg. 10 for more details on PIV and AV.) E Megan is now 65 and wants to start taking lifetime withdrawals. At age 65, Megan's starting payout is 4.25% (see pg. 12) and because her protected income value has grown to $211,270, her lifetime withdrawals will begin at $8,979 ($211,270 × 4.25% = $8,979). Megan knows that as long as she doesn’t withdraw more than $8,979 per year, her lifetime withdrawals will never decline – and will continue for the rest of her life. If no interest was earned over
$125,000 right away. Megan chooses the Accelerated PIV interest bonus option.
B In our hypothetical example, Megan’s allocation earns 4%. Megan’s accumulation value will be credited with 2%. That’s half of the 4% her allocation earned, because an accumulation value interest factor of 50% applies when she chooses the Accelerated PIV bonus. This is a trade-off Megan understands and is willing to make, since she does not plan on taking a lump sum. (But Megan can change her bonus options at the end of each contract year, if her goals should change.) C Meanwhile, with the Accelerated PIV bonus, she will receive 250% of the 4% credit. (In other words, her PIV will be credited by an additional 10%, or
this time, her guaranteed lifetime withdrawals would be $5,312 ($125,000 × 4.25% = $5,312).
WHILE YOU'RE SAVING FOR RETIREMENT
$200,000
E
Accumulation value (AV)
Protected income value (PIV)
$150,000
D
C
A
$100,000
B
$50,000
AGE
58
59
60
61
62
63
64
65
8
This example is hypothetical in nature and does not predict or project actual results of a specific FIA.
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