Protected income value (PIV): Your lifetime withdrawal amount is based on this value. You can’t take this value as a lump sum. Accumulation value (AV): This is the amount you can take out of your annuity as a lump sum, after the withdrawal charge period.
During the income phase, Megan can still get increases
F Even as Megan starts lifetime withdrawals, her withdrawal amount can still increase anytime her allocations earn interest. Megan’s allocation options earn a 3% interest credit during her first year taking income. With the 150% interest bonus, her income will increase by 4.5% from $8,979 to $9,383 when she is 66. Please note that her annuity will default to the balanced PIV interest bonus option because she has started income withdrawals.
J Once Megan recovers, her withdrawal amount the following year is reduced by half from $25,108 to $12,554. But her base withdrawal amount has increased from $11,843 (the amount it was prior to receiving the AIM benefit) – and Megan’s new, higher withdrawal amount is guaranteed for the rest of her life. K Megan's withdrawal amounts never go down – and when they do go up, they are locked in at the higher level. L After age 75, all of the accumulation value in Megan’s annuity has been distributed to her. However, she continues receiving income through guaranteed withdrawals as promised by her contract. M By the time she is 78, Megan has received $191,694 in lifetime withdrawals, based on the initial $100,000 she placed in her contract. If Megan were to continue earning an average of 3% indexed interest per year, and were to live to age 85 (the average life expectancy of a 65-year- old woman), Megan would have received a total of $320,726 in lifetime withdrawals.
G Her accumulation value will receive a 3% credit as well, increasing to $105,606.
H When she’s 70, Megan suffers an injury and is unable to perform two of the six Activities of Daily Living. Because her contract includes the Allianz Income Multiplier (AIM) benefit, beginning on her next contract anniversary, her withdrawal amount doubles from $11,843 to $23,686 for the two years it takes her to recover. Even if her contract never earned any interest, her guaranteed income would double from $5,312 to $10,624. I Megan’s contract is still eligible for increases during this time – and it does increase to $25,108 (Please see page 13 for more details.)
WHEN YOU START TAKING INCOME
$200,000
Accumulation value (AV) Lifetime withdrawals Total lifetime withdrawals
Income Multiplier Benefit
$150,000
G
M
$100,000
$50,000
H I
J
K L
F
AGE
65
66
67 68
69
70
71
72
73
74
75
76
77
78
9
This example is hypothetical in nature and does not predict or project actual results of a specific FIA.
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