An X factor for your retirement plans - Allianz MasterDex XSM Annuity A fixed index annuity with a premium bonus and flexible choices
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Allianz MasterDex X Annuity
SM
An X factor for your retirement plans
A fixed index annuity with a premium bonus and flexible choices
Allianz Life Insurance Company of North America
CB52575
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Allianz MasterDex XSM Annuity
From our global parent ...
We are part of Allianz SE, one of the world’s largest integrated financial
services organizations. Founded in 1890 in Germany, Allianz SE has more
than 80 million customers in about 70 countries, and is the world’s
14th largest company 1 and 3rd largest money manager. 2
... to our American family.
.As a leading provider of annuities, life insurance, and long term care insurance,
Allianz Life Insurance Company of North America (Allianz) has over 1.2 million customers
and has been rated A (Excellent) by A.M. Best.3
We’re proud to be associated with the other Allianz SE companies in North America,
including Fireman’s Fund® and Allianz Global Investors. Fireman’s Fund has been selling
insurance for more than 140 years, and Allianz Global Investors is a network
of companies that includes: PIMCO, Nicholas-Applegate Capital Management,
and Oppenheimer Capital.
Guarantees are backed solely by the financial strength and claims-paying ability
of Allianz Life Insurance Company of North America, the issuing company.
1
“Forbes Global 2000,” Forbes, April 21, 2008. Forbes’ ranking is based on a composite of sales, profits,
assets, and market value.
2
“The P&I/Watson Wyatt 500: World’s Largest Managers,” Pensions & Investments, October 13, 2008
(www.pionline.com).
3
The A.M. Best rating of A (Excellent) is the 3rd highest out of 16 possible ratings, and is effective as of
December 2008. These independent agency ratings are based on an analysis of financial results and
evaluation of management objectives and strategies. The ratings do not indicate approval by the
analysts and are subject to change.
Other information is accurate as of December 8, 2008.
1890 1895 1932 1972 1979 2000 Today
Founded in Listed on Establishes Enters North Acquires 80-year- Allianz SE added 14th largest
Germany Berlin Stock Allianz Center American market old business to to the New York corporation,
Exchange for Technology become Allianz Stock Exchange 3rd largest
Life Insurance money manager
Company of North
America (formerly
North American
Life & Casualty
Company)
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Allianz MasterDex XSM Annuity
Discover the MasterDex X
Annuity from Allianz.
A fixed index annuity from Allianz can be a valuable asset.
A prudent plan shouldn’t rely solely on future Social Security to pay for an individual’s retirement
years. One way to accumulate additional assets for retirement income is an annuity. The money
in an annuity has the potential to create an additional source of retirement income that can
supplement Social Security. Assets placed in an annuity can even provide a variety of income
streams. This is one reason many individuals use annuities to help them achieve their long-term
financial goals, including retirement income.
Annuities offer important benefits. Guaranteed death benefit protection for
your beneficiaries: Annuities are insurance
Potential interest during the annuity’s products, so it’s only natural that they
accumulation phase: During this initial can give you reassurance, knowing your
phase, an annuity may be an appropriate beneficiaries are protected if you pass
vehicle to help you accumulate money for away before you start receiving annuity
your retirement. income payments.
Guaranteed income for life and other
options during the retirement income Here’s how a deferred annuity works.
phase: When you are ready to start taking
A deferred annuity is a contract between
income, the annuity offers you a range of
a contract owner and a life insurance
payout options. Some options may offer an
company. As contract owner, you pay
immediate, single payment. Others may
premium to the insurance company.
include income payments scheduled over
In exchange for your premium, the
a specific period of time, including your
insurance company promises to make
entire lifetime.
regular income payments to you over a
Tax deferral that can help your money period of time, beginning at some point
grow: The money in your annuity can grow in the future. This is called annuitization.
tax-deferred. This means you don’t have You may also receive additional benefits,
to pay taxes until you begin to withdraw which we will discuss later.
money from the annuity. The power of tax
deferral, compounded over the life of your
annuity’s accumulation phase, may have a
positive impact on the value your annuity
generates for your retirement. Any money
taken from your annuity may be subject
to income taxes and, if taken prior to age
59½, a 10% federal tax penalty.
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Fixed index annuities are different. To summarize, a fixed index annuity
offers contract owners:
A fixed index annuity earns interest based
on changes in an external index. This is • The potential for growth by basing
different from traditional fixed annuities, interest earned on the performance
which credit interest calculated at a fixed of a nationally recognized index
rate set in the contract. The selected or indexes.
index varies from day to day and is not • A guaranteed minimum value
predictable. When you buy a fixed index
Interest earned on a fixed index annuity
annuity you own an insurance contract –
could be more or less than the interest
you are not buying shares of any index
earned in a traditional fixed annuity.
fund, any stock, or bond investments.
Our annuities are designed for long-term
Many fixed index annuities also permit
purposes. You generally have to keep your
contract owners to allocate premium to
premium in a deferred annuity such as
a traditional fixed interest option, where
the Allianz MasterDex XSM Annuity for a
interest is credited at a fixed rate of
specified period of time before you begin
interest not based on any external index.
receiving income payments to avoid
The value of a fixed index annuity will
the assessment of penalties, such as
not drop below a guaranteed minimum
surrender charges.
specified in the contract. This means that
if you surrender your contract or die, you
(or your beneficiaries) are guaranteed to
receive at least a minimum value.
Guarantees are backed by the financial strength and claims-paying ability of Allianz Life Insurance Company of North America.
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Allianz MasterDex X Annuity
Discover the X factor of
Allianz MasterDex X Annuity. SM
Consider the MasterDex X because it offers:
• The potential for indexed interest based on growth in a market index
• A bonus on premium received in the first three years 1
• Access to your full contract value, including your bonus, as a lump sum
– without surrender charges – after 10 years
• Free withdrawals of up to 10% based on your paid premium
• Flexible income options including lifetime income
1
The bonus is subject to a 10-year vesting schedule. 10% of the bonus will become vested on each
contract anniversary until the beginning of the 11th contract year, when 100% will be vested. If you
surrender your contract before the 11th contract year, you will receive the amount of vested bonus
as part of your surrender value. Bonus annuities may include higher surrender charges, longer
surrender charge periods, lower caps, higher spreads, or other restrictions that are not included in
similar annuities that don’t offer a premium bonus feature. During the first 10 contract years, we
will apply a surrender charge if you partially or fully surrender your contract. The same would apply
if you begin annuitization, which means receiving regular income payments over a specified period
of time, prior to the sixth contract year (or for fewer than 10 years). These charges may result in a
loss of bonus, indexed interest and fixed interest, and a partial loss of principal (your premium). Any
amounts taken from your contract may be subject to ordinary income taxes and, if taken prior to
age 59½, a 10% federal tax penalty.
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Allianz MasterDex XSM Annuity
Accumulation Flexibility
MasterDex X lets you benefit when If you need cash, MasterDex X gives
the market index is heading up. you access.
When the market is headed up, the value After the contract anniversary following
of your Allianz MasterDex X Annuity can your most recent premium payment, you
also increase. Your contract has a 100% may withdraw up to 10% each contract
participation rate. This means that we use year based on total premiums paid –
the entire index change when we calculate without a surrender charge.
the indexed interest rate. Keep in mind
that your indexed interest rate will not
necessarily equal 100% of any increase in
After 10 years, it’s your choice:
the index. The indexed interest rate will
stay, or take the money.
always be subject to a cap or spread which You can leave your money in the annuity
may limit the interest we credit. The indexed so it continues to benefit from potential
interest rate will never be less than zero. indexed/fixed interest and tax deferral
or start an income stream. Of course,
MasterDex X has a real difference.
anytime after your 10th contract
The Allianz MasterDex X Annuity gives you anniversary, you can take your annuity’s
several choices for calculating the indexed full value (minus any outstanding loans).
interest rate for your contract: monthly
sum, monthly average, or annual point-to-
point crediting methods.
Guarantees
MasterDex X locks in any credited
interest automatically.
Once any indexed interest, fixed interest,
or bonus is credited to your annuity’s
values, it can never be lost due to market
index volatility. Your premium and bonus
are never subject to market index loss.
A downturn in the market index(es) cannot
reduce your contract values. We guarantee
it. However, if you surrender your contract
before your 10th contract anniversary, we
will apply a surrender charge and unvested
bonus reduction.
The Allianz MasterDex X Annuity
offers you an X factor.
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Allianz MasterDex XSM Annuity
Allianz MasterDex X Annuity
tracks market index changes, then
puts it all together.
Here’s how. You can add money at any time during
the first three contract years and receive
MasterDex X is a fixed index annuity that a bonus on it. Additional premium
offers a premium bonus and a choice of payments made during a contract year,
fixed interest and/or indexed interest and bonus, are credited to your contract’s
options. The bonus will be credited interim interest allocation and earn
on all premium received in the first three fixed interest until the following contract
years. 10% of the bonus will become anniversary. At that time your additional
vested each contract anniversary until the premium will be applied to your contract
beginning of the 11th contract year, when values, based on your current premium
100% will be vested. Ask your financial allocations.
professional for the current bonus rate.
The indexed interest is based on growth
in these indexes:
• S&P 500
• Nasdaq-100®
• EURO STOXX 50
• A blended index that is comprised of
Dow Jones Industrial Average (35%),
Barclays Capital U.S. Aggregate Bond
Index (35%), EURO STOXX 50 (20%), and
Russell 2000 (10%).
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Allianz MasterDex XSM Annuity
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Allianz MasterDex XSM Annuity
Indexed interest crediting options
Any indexed interest is calculated based on your choice of four indexes
and three crediting method(s):
• Monthly sum crediting
• Monthly average crediting
• Annual point-to-point crediting
Monthly sum crediting: For this crediting one month could negate several monthly
method, we capture the current value increases. As a result, even if the market
of the market index on the last business index experienced an overall gain for the
day before your contract is issued, as year, your contract’s indexed interest rate
well as on the last business day before may be lower (or zero) if the market index
each contract “monthiversary.” So if experienced monthly decreases.
your contract is dated the seventh of the
Monthly average crediting: There is no cap
month, your monthiversary will be the
or limit on the amount of indexed interest
seventh day of every succeeding month
growth possible with this crediting
throughout the life of the contract.
method. There is an annual spread, which
Monthly changes are calculated by is a deduction that will reduce the indexed
subtracting the previous month’s index interest rate you receive.
value from the current month’s index value
We begin by capturing the current value
and then dividing the difference by the
of the market index on the last business
previous month’s index value.
day before your contract is issued, as well
In any given contract month, a positive as on the last business day before each
monthly change may exceed your annuity’s contract “monthiversary.” At the end of each
stated monthly cap. In that case, the contract year, we add up the individual
capped monthly change will be used in the monthly index values and determine
indexed interest calculation. We can raise an average by dividing the total by 12.
or lower the monthly cap each contract We then subtract that year’s starting
year but it will never be less than 0.50%. index value from the average to determine
the amount of positive or negative change
At the end of each contract year, the
in the index. This amount is divided
12 capped monthly changes are added
by the starting index value to determine
together to calculate your indexed interest
the percentage of change.
rate for that year. If the result is positive,
we will credit indexed interest to your To calculate your indexed interest rate for
accumulation value at this rate. If this the year, we subtract the annual spread
sum is negative, the indexed interest rate from the percentage of change. If the
for that year will be zero. result is positive we will credit indexed
interest to your accumulation value at this
Although there is a monthly cap on
rate. If the result is negative, the indexed
positive monthly returns, there is no
interest rate for that year will be zero. We
established limit on negative monthly
can raise or lower the spread annually, but
returns. Because of this, a decrease in
it will never be greater than 12%.
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Annual point-to-point crediting: For this In addition to the available options
crediting method, we capture the value for potential indexed interest, you can also
of the market index on the last business allocate some or all of your premium to
day before your contract is issued, as well a fixed interest option. You can allocate
as on the last business day before each premium in increments of 1% or more.
contract anniversary. We calculate the Now that’s flexibility!
annual change by subtracting that year’s
Although external indexes may affect your
starting index value from its ending index
contract values, the contract does not
value. If the change in the market index
directly participate in any stock or other
is positive, then we divide it by that
investments. You are not buying bonds,
contract year’s starting index value to get
shares of stocks, or shares of an index fund.
the percentage of change. If the change in
The indexes do not include the dividends
the market index is negative, the indexed
paid on the stocks underlying a stock index
interest rate for that year will be zero.
or interest paid on bonds underlying a bond
In any contract year, your contract’s index. Stock dividends and bond interest are
percentage of change may exceed its stated not reflected in the interest we credit
annual cap. In that case, the capped return to your contract.
is the indexed interest rate. We can raise or
lower the cap annually but it will never be
less than 1%.
Change your mind? No problem!
Shortly after your contract anniversary
each year, we’ll notify you that you can
You can also earn fixed interest.
change your allocations. Changes to your
Traditional fixed interest is calculated allocations must be submitted in writing.
and credited daily for both the fixed If we receive your changes within 21 days
interest allocation and the interim after your contract anniversary, they will be
interest allocation. Interest rates for these effective during that contract year.
allocations are declared for each contract
Allocation changes received more than
year by Allianz. We can raise or lower
21 days after your contract anniversary
interest rates annually, but they will never
won’t take effect until your next
be less than 0.50%.
contract anniversary.
Choose from a variety of allocation
options for flexibility.
When you purchase your MasterDex X
Annuity you can base your annuity’s
potential indexed interest exclusively
on several available index/crediting
methods. Ask your financial professional
for current allocation option availability.
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MasterDex X gives you a choice …
Make your choice(s) based on the potential of each.
This graph shows actual S&P performance from January 1, 1999 to December 31, 2008. We have highlighted 1999,
2004, and 2005 in the following illustrations to show how the different crediting methods would have calculated
indexed interest, had the Allianz MasterDex X Annuity been available during that time period.
1600
1500
Actual S&P 500 performance
1400
1300
1200
1100
1000
900
800
700
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
The following illustrations are not intended, and may not be used, to project or predict contract values. Index changes,
caps, and spreads may be higher or lower than those illustrated. The annual cap is guaranteed never to be less than 1%,
the monthly cap is guaranteed never to be less than 0.50%, and the annual spread is guaranteed never to be more than 12%.
As an Allianz MasterDex X Annuity contract owner, you do not invest directly in an index. The three years were
chosen to highlight the indexed interest rate for each crediting method, assuming Allianz MasterDex X Annuity had been
available during the years shown. Past performance does not guarantee future results. The monthly average crediting
method hypothetical example uses the blended index allocation option.
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… of three crediting methods.
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MasterDex X gives you several
ways to access your money.
Take free withdrawals. confined after the first contract year to
an eligible nursing facility, assisted living
In each contract year you can take up to facility, or hospital for 30 of 35 consecutive
10% of your contract’s paid premium in one days. This rider must be chosen at the time
or more free withdrawals. There will be no of application. There is an additional charge
surrender charge applied, and no impact for this rider.
on your unvested bonus as long as the
money is withdrawn after the contract
anniversary following your most recent Our Flexible Annuity Option Rider
premium payment. lets you access your contract
values sooner.
If, within the same contract year of a free
withdrawal, you fully surrender your contract The Flexible Annuity Option Rider1 allows
or add premium, we will retroactively you as the owner to receive annuity
recalculate the free withdrawal as if it were payments based on your accumulation
a partial surrender. Partial surrenders incur value (less any bonus and interest earned
surrender charges and a loss of unvested on that bonus) sooner. You may exercise
bonus that is proportionate to the amount this option anytime after the first contract
of cash surrender value you take. This may year but before the sixth contract year by
result in the loss of all or part of your bonus electing to receive annuity payments over
and interest you have earned, and a partial a period of 10 to 30 years. Depending on
loss of principal. your age, you may be able to receive this
value over fewer than 10 years. There is no
A free withdrawal is eligible to receive
additional charge for this rider.
indexed interest at the end of the contract
year. The amount of indexed interest is
based on the applicable indexed interest Access your money sooner to help pay
rate and the length of time during that for nursing home care.1
contract year that the free withdrawal
If you, as the contract owner, should enter
amount remained in the contract.
a nursing home, long term care facility,
Free withdrawals and partial surrenders will or hospital for at least 30 of 35 consecutive
decrease the value of the contract and its days after the first contract year, you may
death benefit. take an accelerated distribution of your
contract’s accumulation value over a period
as short as five years.
Access your money to help pay
qualified medical costs.
Take required minimum distributions.
The Flexible Withdrawal Rider1 is an optional
rider that gives you additional access to your If your annuity is tax-qualified, we will
money. This rider allows you a one-time treat the required minimum distributions
lump-sum payment, without surrender calculated for this annuity as free
charges, in any amount up to the contract’s withdrawals if you take them annually in
accumulation value, should you become December or monthly throughout the year.
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Required minimum distributions will select to receive the death benefit as a
reduce contract values, including the death lump-sum payment, or as annuity income
benefit, and the amount available for payments, they will receive the accumulation
free withdrawals. value, which includes both the vested
and any unvested bonus. This applies
Any amount taken from your contract may
only to contracts that have not yet been
be subject to ordinary income tax and, if
annuitized. The death benefit, paid to a
taken prior to age 59½, a 10% federal
properly designated beneficiary (other than
tax penalty.
the estate), may pass without the costs and
Purchasing an annuity within a retirement delays of probate.
plan that provides tax deferral under
sections of the Internal Revenue Code
Help your beneficiaries pay
results in no additional tax benefit. An
their taxes.
annuity should be used to fund a qualified
plan based upon the annuity’s features The optional Death Benefit Rider1 enables
other than tax deferral. All annuity features, your beneficiary to receive, tax-free, an
risks, limitations, and costs should be additional death benefit up to 28% of the
considered prior to purchasing an annuity taxable gain in your annuity. By providing
within a tax-qualified retirement plan. funds to pay some or all of the income
taxes due, it allows you to pass on more of
your annuity’s value to your beneficiaries
There are no up front fees.
and reduces a possible tax obstacle for
100% of your premium, plus the premium them. The Death Benefit Rider can offset
bonus, is credited to your accumulation a substantial portion – or possibly all – of
value on the day it is received. However, the federal income taxes due on your
surrender charges and a bonus vesting annuity at the time of your death (state
schedule apply during the first 10 contract or local taxes may apply). Please note: A
years. Surrender charges and the bonus Death Benefit Rider charge will apply; this
vesting schedule may result in the loss of all rider is available only on nonqualified
or part of your bonus and interest you have contracts where the owner and annuitant
earned, and a partial loss of principal. are the same. This rider must be selected
at time of application and is available at
an additional cost.
About the guaranteed minimum value
Your contract provides a guaranteed Take a contract loan.
minimum value that you’d receive if it were
higher than your contract’s cash surrender You may take a contract loan for up to 50%
value. The guaranteed minimum value of the cash surrender value (maximum
equals 87.5% of your total premium, minus of $50,000). The loan interest rate is
any withdrawals, growing at an annual 7.4% annually in advance. Loans are not
interest rate no less than 2.50%. available with IRA, SEP, or some other
qualified plans. Unpaid loans will be
treated as partial surrenders, subject to
Allianz MasterDex X Annuity offers you surrender charges and loss of unvested
a death benefit. bonus, and will decrease the value of the
The Allianz MasterDex X Annuity provides contract and its death benefit.
a death benefit payable to your beneficiary.
Regardless of whether your beneficiary(ies)
1
Not available in all states.
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After 10 contract years, you have access
to your money, including your bonus
Surrender your contract for A surrender charge and unvested bonus
a lump-sum payout. reduction will also apply if you annuitize
prior to the sixth contract year or if the
You can receive your annuity’s full annuity payments are taken over a period
accumulation value at any time after 10 of fewer than 10 years. This could result
contract years. If you take out all of your in loss of interest and bonus, and a partial
contract’s value before the 10th contract loss of principal. You could receive less
anniversary the value you will receive is than the amount of premium you put
equal to the accumulation value, less into the contract. However, the cash
unvested bonus, less surrender charges, surrender value will never be less than the
as shown in the chart. guaranteed minimum value as described
The surrender charge percentage starts in your contract.
at 10% on the date of contract issue.
Beginning in contract year four, the
surrender charge percentage will decrease
by 1.25% on each anniversary. On day one
of contract year 11, it will be zero.
Start of contract year 1 2 3 4 5 6 7 8 9 10 11+
Surrender charge percentage 10.00% 10.00% 10.00% 8.75% 7.50% 6.25% 5.00% 3.75% 2.50% 1.25% 0%
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Choose from a variety of options to
receive steady, predictable income.
Several annuity payment options are Installments for life – You have the option
available to you. to receive annuity payments in equal
installments for the rest of your life.
If you keep your contract for at least five Payments end upon your death.
years, you can choose to receive annuity
payments, which are the payments we Installments for life with a guaranteed
make back to you over a period of time, period – You can choose to receive annuity
based on your accumulation value payments in equal installments for the
(including the full bonus) in any rest of your life. Upon your death, annuity
of the following ways: payments will be paid to your beneficiary
for the balance of the guaranteed period,
Interest only – You have the option to receive the same way as you previously selected.
interest-only annuity payments for five
years. Interest will be paid as earned based Installments for a selected amount – You
on the amount of your accumulation value. may receive annuity payments in equal
After five years of interest-only payments, installments of an amount that you
you can take your full accumulation value choose, as long as the payments last for
as a lump-sum payment or choose another at least 10 years. Payments continue until
annuity payment option. your accumulation value is gone.
Installments for a guaranteed period – You Joint and survivor – You can have equal
can choose to receive annuity payments installments paid until your death, then
in equal installments for a period from 10 continue to be paid to your survivor. In
to 30 years. Each installment would consist this case, you can select 100%, 2⁄3, or 1⁄2
of part principal and part interest. of your payment amount to be paid to
your survivor until his or her death.
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Barclays Capital and Barclays Capital U.S. Aggregate Bond Index are trademarks of Barclays Capital Inc. (“Barclays Capital”). The product
is not sponsored or endorsed by Barclays Capital, and no representation or warranty to purchasers of the product is made regarding the
advisability of purchasing the product. Barclays Capital’s only relationship to Allianz Life Insurance Company of North America (“Allianz”)
is the licensing of the Barclays Capital indices which are determined, composed, and calculated by Barclays Capital without regard to
Allianz or the product. Barclays Capital does not guarantee the quality, accuracy, and/or completeness of the Barclays Capital indices, or
any data included therein, or otherwise obtained by Allianz, owners of their annuities, or any other person or entity from the use of the
Barclays Capital indices in connection with the right licensed hereunder or for any other use.
The Dow Jones EURO STOXX 50® Index, a blue-chip index for the Eurozone, provides a blue-chip representation of supersector leaders
in the Eurozone. The Dow Jones EURO STOXX 50 is the intellectual property (including registered trademarks) of Stoxx Limited, Zurich,
Switzerland and/or Dow Jones & Company, Inc., a Delaware corporation, New York, USA, (the “Licensors”), which is used under license.
The Allianz MasterDex X Annuity based on the Index is in no way sponsored, endorsed, sold, or promoted by the Licensors and neither of
the Licensors shall have any liability with respect thereto.
The Dow Jones Industrial AverageSM is a popular indicator of the stock market based on the average closing prices of 30 active U.S. stocks
representative of the overall economy. “Dow Jones” and “Dow Jones Industrial Average” are service marks of Dow Jones & Company, Inc.
and have been licensed for use for certain purposes by Allianz Life Insurance Company of North America. Allianz MasterDex X Annuity,
based on the Dow Jones Industrial Average, is not sponsored, endorsed, sold, or promoted by Dow Jones, and Dow Jones makes no
representation regarding the advisability of investing in such product(s).
Russell 2000® Index is an equity index representing 2,000 of the smallest companies within the larger Russell 3000® Index. It is often
looked at as one benchmark for small stock investors. Russell 2000 is a registered service mark of Frank Russell Company.
Standard & Poor’s 500 Index (S&P 500) is comprised of 500 stocks representing major U.S. industrial sectors. “Standard & Poor’s®,” “S&P®,”
“S&P 500®,” “Standard & Poor’s 500,” and “500” are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by
Allianz Life Insurance Company of North America. The product is not sponsored, endorsed, sold, or promoted by Standard & Poor’s and
Standard & Poor’s makes no representation regarding the advisability of purchasing the product.
The Nasdaq-100 Index® includes 100 of the largest domestic and international non-financial securities listed on The Nasdaq Stock Market,
based on capitalization. The Nasdaq-100®, Nasdaq-100 Index, Nasdaq®, and OMX® are registered trademarks of NASDAQ OMX Group, Inc.
(which with its affiliates are the Corporations) and are licensed for use by Allianz Life Insurance Company of North America. The product(s)
have not been passed on by the Corporations as to their legality or suitability. The product(s) are not issued, endorsed, sold, or promoted by
the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE PRODUCT(S).
16
Page 18 of 20Why should you consider the
Allianz MasterDex X Annuity
to help reach your financial goals?
Allianz MasterDex XSM Annuity offers you:
• The potential for indexed interest based on growth in a market index
• A bonus on premium received in the first three years
• Access to a lump sum including your bonus – without surrender charges – after 10 years
• Free withdrawals of up to 10% based on your paid premium
• Flexible income options including lifetime income
Consider MasterDex X as part
of your retirement strategy.
Agent name _________________________________________________________________
License number_______________________________________________________________
Email_______________________________________________________________________
Not FDIC insured • May lose value • No bank or credit union guarantee • Not a deposit
Not insured by any federal government agency or NCUA/NCUSIF
Product availability and features may vary by state.
20
Page 19 of 20The Allianz MasterDex X Annuity offers
SM
you an X factor for your retirement.
Financial solutions from A to Z. Allianz.
®
www.allianzlife.com
Issued by:
Allianz Life Insurance Company
of North America
PO Box 59060
Minneapolis, MN 55459-0060 C52575
800.950.1962 (R-4/2009)
Page 20 of 20Simple Income II Rider
Retirement income that’s simply predictable
Allianz Life Insurance Company of North America
CB91050 Must be used with Allianz MasterDex X® Annuity
consumer brochure CB52575
Page 1 of 8From our global parent ...
We are part of Allianz SE, one of the world’s largest integrated financial
services organizations. Founded in 1890 in Germany, Allianz SE has
approximately 75 million customers in about 70 countries, and is the
world’s 20th largest company 1 and 3rd largest money manager. 2
... to our American family.
As a leading provider of annuities, life insurance, and long term care insurance,
Allianz Life Insurance Company of North America (Allianz) has over 1.2 million
customers and has been rated A (Excellent) by A.M. Best.3
We’re proud to be associated with the other Allianz SE companies in North America,
including Fireman’s Fund® and Allianz Global Investors. Fireman’s Fund has been
selling insurance for more than 140 years, and Allianz Global Investors is a network
of companies that includes PIMCO, Nicholas-Applegate Capital Management,
and Oppenheimer Capital.
Guarantees are backed solely by the financial strength and claims-paying ability
of Allianz Life Insurance Company of North America, the issuing company.
1
“Fortune Global 500,” Fortune, August 2009. Fortune’s ranking is based on revenue.
2
“The P&I/Watson Wyatt 500: World’s Largest Managers,” Pensions & Investments, October 13, 2008
(www.pionline.com).
3
The A.M. Best rating of A (Excellent) is the 3rd highest out of 16 possible ratings, and was affirmed
December 2008. These independent agency ratings are based on an analysis of financial results
and evaluation of management objectives and strategies. The ratings do not indicate approval by
the analysts and are subject to change.
1890 1895 1932 1972 1979 2000 Today
Founded in Listed on Establishes Enters North Acquires Allianz SE added 20th largest
Germany Berlin Stock Allianz Center American market 80-year-old to the New York company,
Exchange for Technology North American Stock Exchange 3rd largest
Life & Casualty money manager
Company, which
becomes Allianz
Life Insurance
Company of
North America
Page 2 of 8Simple Income II Rider
How will you get paid in retirement?
The answer can be simple.
The assurance of steady income doesn’t Simplicity
have to stop when you retire. The Simple
Income II Rider is designed for people The beauty of the Simple Income II Rider
who want to receive lifetime income. lies in its simplicity. On the day your
It offers simplicity, flexibility, predictability contract is issued, your simple withdrawal
and the opportunity for increasing value equals 100% of the premium you
income payments. place in your annuity plus any premium
bonus from your base contract. At the
It’s simple because it credits a simple end of each contract year your simple
bonus to your simple withdrawal value withdrawal value will be rewarded with
at the end of each contract year. It’s also a “simple bonus.”
flexible because when you are ready to
start your lifetime income payments, you This simple bonus is equal to your
can choose between two payout options. adjusted premium multiplied by your
If you want the predictability of knowing simple bonus percentage. The adjusted
exactly how much each payment will be, premium is equal to the total premiums
you can choose income option 1. If you you have paid, reduced proportionally for
want the potential to see your income any withdrawals or surrenders you have
payments increase each year, you may taken. If you add money to your contract,
want to choose income option 2. the adjusted premium will increase at
the end of the next contract year by the
The Simple Income II Rider is optional dollar amount you add. Ask your financial
when you purchase an eligible Allianz professional for the current simple
annuity and is available for an annual cost bonus rate.
of 0.60% of the simple withdrawal value.
You will continue to receive a simple
bonus through the age of 90 or until you
begin taking lifetime income payments,
whichever comes first, because the bonus
percentage is guaranteed.
Note: If you begin
lifetime income
payments immediately,
you will not receive any
simple bonuses.
1
Page 3 of 8Simple Income II Rider
Flexibility
When you are ready to begin lifetime income you have the flexibility to decide between a steady, predictable income
payment or one that has the potential to grow. Income option 1 provides a predictable payment, so you know exactly
what your income payment will be for the rest of your life.
Income option 2 offers a smaller payment up front, but has the potential to increase each year by the interest rate
credited to your allocation options in your base contract. On every contract anniversary, your maximum withdrawal
amount (income payment) will be recalculated to reflect any positive changes in the selected allocations.
With either option, your maximum income payment is a percentage of your simple withdrawal value that is based on
your age when payments begin. Your payment is guaranteed for as long as you live.
Predictable payments – Income option 1
In this hypothetical example, let’s assume “Paul,” who is 60 years old, purchases an Allianz annuity. He adds the Simple Income II Rider,
which guarantees him a simple bonus at the end of every contract year until he starts taking income payments. Paul doesn’t plan on
taking income until he retires in five years at age 65.
Payments for the life of one person – based on age at the time income payments begin
Age 50-59 60-69 70-79 80-90
Pmt % 4.50% 5.00% 5.50% 6.00%
Payments for the joint lives of two spouses – based on the age of the younger spouse at
the time income payments begin
Age 50-59 60-69 70-79 80-90
Pmt % 4.00% 4.50% 5.00% 5.50%
Paul is ready to start his income payments five years later at age 65 and decides to choose income option 1. Let’s assume his
simple withdrawal value is $148,000. His payment would be based on $148,000 and he would receive $7,400 (5.0%) every year
for the rest of his life.
Years until Simple Age when income payments begin – annual maximum income payment
income withdrawal
payments begin value (50-59) (60-69) (70-79) (80-90)
5 $148,000 $6,660 $7,400 $8,140 $8,880
2
Page 4 of 8Simple Income II Rider
Payments that can increase – Income option 2
Payments for the life of one person – based on age at the time income payments begin Let’s take a look at another
hypothetical scenario using income
Age 50-59 60-69 70-79 80-90 option 2. Rose is 50 years old, and
she also purchases an Allianz annuity.
Pmt % 3.50% 4.00% 4.50% 5.00% Rose doesn’t need to start taking
income until she retires in 10 years at
Payments for the joint lives of two spouses – based on the age of the younger spouse at age 60. She selects income option 2
the time income payments begin
because it offers her the potential for
payment increases throughout
Age 50-59 60-69 70-79 80-90
her lifetime.
Pmt % 3.00% 3.50% 4.00% 4.50%
Rose starts her income payments 10 years after she buys her annuity, at age 60. Let’s assume her payment will start at $7,520, which
is 4% of a hypothetical $188,000 simple withdrawal value. On each contract anniversary, her annual maximum income payment will
be recalculated to reflect any positive changes in her selected allocations. This means Rose’s income payment has the potential to
increase every year for the rest of her life.
The following hypothetical illustration assumes:
• The annuity contract and Simple Income II Rider were available during the time period shown and both were issued on 1/1/1979
at the age of 50.
• The contract was held for 10 years before Rose started income payments and 100% of the money was allocated to the S&P 500
during the time period shown.
• The monthly sum crediting method was selected with a hypothetical monthly cap of 2.5%, and no withdrawals were taken prior
to starting lifetime income on 1/1/1989.
• These figures represent past performance of the S&P 500 index only, and may not be used to predict or project future results.
Actual results will vary by the current simple bonus, cap and/or spread, and the indexes and crediting method chosen.
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8dcigVXinZVgSimple Income II Rider
Additional features of the Simple Income II Rider
Withdrawals
If you need to take a withdrawal, including required minimum distributions (RMDs), you can do so according to
the terms of your base contract. Withdrawals will reduce your adjusted premium and simple withdrawal value by
the same percentage that they reduce your accumulation value. Your new simple bonus amount will be based on
your adjusted premium.
Cumulative withdrawals
Once you begin taking lifetime income payments, you can choose to take less than your maximum withdrawal
amount (income payment). We keep track of the amount that’s “left over.” The amount that is left over is called
the cumulative withdrawal value. This feature allows you to take any or all of that remainder at any time.
Should you pass away, your beneficiary will receive the cumulative withdrawal value if it is greater than the death
benefit in your base contract.
“Step-ups”
If, on any contract anniversary, your contract’s accumulation value exceeds your simple withdrawal value,
the simple withdrawal value will be “stepped up” to equal the accumulation value. Once you begin taking lifetime
income payments, if the accumulation value multiplied by your payment percentage exceeds your current
maximum withdrawal amount, your income payment automatically increases, as long as you took
the maximum withdrawal amount during the prior contract year.
Questions and answers
Can I add premium to my annuity?
If your base contract allows, you may add premium to your annuity. Your simple bonus will not be based on the
additional premium until the end of the following contract year, when the additional premium will have been in
your contract for a full contract year. You cannot add premium once you have begun lifetime income payments.
What if I want to surrender my contract?
Although your annuity may permit some penalty-free withdrawals, in order to avoid penalties you’re generally
required to leave your money in the annuity for a specified period of time, usually referred to as the surrender
charge period. If you fully surrender your annuity contract at any time, this rider will no longer be in force,
and you will receive your contract’s cash surrender value. The cash surrender value does not include any
of the simple bonus. See your annuity contract for more details.
How is the rider charge calculated for the Simple Income II Rider?
The annual cost of the rider is 0.60% of your simple withdrawal value. One-twelfth of this charge is automatically
deducted each month from your annuity’s accumulation value. The rider charge will continue for the life of
the contract, even if you have begun receiving lifetime income payments and are no longer receiving the
simple bonus.
Purchasing an annuity within a retirement plan that provides tax deferral under sections of the Internal Revenue Code
results in no additional tax benefit. An annuity should be used to fund a qualified plan based upon the annuity’s features
other than tax deferral. All annuity features, risks, limitations, and costs should be considered prior to purchasing an
annuity within a tax-qualified retirement plan.
4
Page 6 of 8Make planning for retirement a little easier
with a simple and flexible income rider.
The Simple Income II Rider may be a good choice if you want the simplicity of annual bonuses,
and the flexibility of choosing between a predictable lifetime income payment or one that has
the potential to increase year after year.
Talk to your financial professional about
the Simple Income II Rider and how it
can help meet your financial needs.
Guarantees are backed by the financial strength and claims-paying ability of Allianz Life Insurance Company of North America.
Standard & Poor’s 500® index (S&P 500®) is comprised of 500 stocks representing major U.S. industrial sectors. “Standard &
Poor’s®,” “S&P®,” “S&P 500,” “Standard & Poor’s 500,” and “500” are trademarks of The McGraw-Hill Companies, Inc. and have
been licensed for use by Allianz Life Insurance Company of North America. The product is not sponsored, endorsed, sold, or
promoted by Standard & Poor’s and Standard & Poor’s makes no representation regarding the advisability of purchasing
the product.
Agent name _____________________________________________________________________________________
License number __________________________________________________________________________________
Email ___________________________________________________________________________________________
Not FDIC insured • May lose value • No bank or credit union guarantee • Not a deposit • Not insured by any federal government
agency or NCUA/NCUSIF
Product availability and features may vary by state.
Page 7 of 8Allianz. Financial solutions from A – Z.®
www.allianzlife.com
Products are issued by:
Allianz Life Insurance Company
of North America
PO Box 59060
Minneapolis, MN 55459-0060 R91050-01
8
800.950.1962 (R-10/2009)
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