Allianz 360 Independent Review | Fixed Index Annuity

Allianz 360 Independent Review | Fixed Index Annuity

You might remember the recent independent review we did of the Allianz 222 Fixed Index Annuity. Well, today we are going to look at another product offered by Allianz. I am going to break it down into some simple steps for you today as we look at the Allianz 360 fixed index annuity.

I know there are a lot of annuities out there, and it is easy to get frustrated trying to figure out which one is the right choice for your needs. Believe me, I was confused and frustrated the first time I started breaking down all of these different annuities. I can’t tell you how many times I felt like a complete idiot trying to figure out the pros and cons of all the different annuities. So, don’t worry if you are feeling a little overwhelmed. You have come to the right place to get all of your questions answered.

Step 1. So you have this one down. You are here seeking an independent review.  Step 2. Now you have to decide what type of annuity you need. Do you need a fixed annuity, fixed-indexed annuity or a variable annuity? (Hopefully, if you have gotten to this page you have already decided that you want to learn about a fixed-indexed annuity) Which leads us to Step 3, product Information. Today, I will be talking about the Allianz 360 annuity from Allianz Life Insurance Company. But first, let me take you through a brief background on the company itself.

Allianz Life Insurance Company has received some of the highest financial strength ratings available from Standard & Poor’s, A.M. Best, and Moody’s. They have been in business since 1890 and continue to power on. I will say that Allianz has one of the most meticulous suitability departments that I have seen. They don’t approve just anyone to get new business through the front doors, which in my opinion is a good thing.

Allianz 360 Fixed Index Annuity

Now let’s talk about the actual product. The Allianz 360 is a fixed-indexed annuity authorized for producers under the Allianz Preferred platform. Allianz Preferred is an exclusive sales platform that is available only to select financial advisors, agent, reps and planners. Allianz 360 is an exclusive product that is only available to their leading producers.

What is a Fixed Indexed Annuity?

Let’s have a mental refresher of a fixed indexed annuity. As the index goes up, the client benefits. If the index goes down, the client has absolutely no loss. With the Allianz 360, the client will get to choose from several index strategies of which they want to follow. For this example I will use the Barclays US Dynamic Balance Index, which might I add has NO CAP and is only offered under the Preferred platform. So, if the index were to magically increase by 34%, the client would be credited for 32% (34% minus a 2% spread is the cost for the 360 annuity). This uncapped strategy has limitless growth potential, and if the reverse was to happen and the index went “POOF” down -34%, the client’s rate would only go to 0% or no loss.

What are the qualifications for this annuity? The minimum premium for this annuity is $20,000 for Qualified or Non-Qualified money. This is a 10 year annuity with a decreasing surrender schedule, which means at the end of 10 years there will be no surrender charge. The premium is flexible for the first 3 years so additional premiums can be added at any time within the first 3 years. But, what if I wanted to add premiums for the next 10 years? Sorry Charlie, this is not the annuity for you. Remember what I said about the suitability department? Yeah, not only does Allianz want to ensure that this annuity fits your exact wants and needs, hopefully so does the person who you call your adviser or agent.

Included Riders and benefits:

  • The Allianz 360 allows a 10% free withdrawal on total premiums paid. For instance, if you put $100,000 in this annuity in year 1, year 2 you can withdraw up to $10,000 penalty free (Withdrawals would still be subject to IRS rules and you would have to check with your adviser if you are not familiar with them).
  • Nursing Home Benefit states that if the owner enters a nursing home or hospital, for 30 out of 35 consecutive days, the owner can take the accumulation value as an annuity payment over at least 5 years.

Additional Riders (For an additional cost):

The Allianz 360 also includes a Benefit Rider which allows the client to benefit from a combination of income building features.

  • A 50% interest bonus will be added to ANY interest earned, and credited to the accumulation value until lifetime withdrawals begin.
  • At age 40, the contract’s lifetime withdrawal percentages will increase each year the client holds the contract, until income payments begin.

What does this mean? Pretty much, the longer you defer to take income or withdrawals from this annuity, the more money you will end up accruing on the interest bonus.

  • This rider does cost 1.05% of the accumulation value per year but is deducted on a monthly basis.
  • The rider CAN be cancelled any time after the 5th contract year.

As long as the 360 Benefit Rider is in effect, the death benefit is equal to the highest of either the contract’s accumulation value, cumulative withdrawal amount, net premium (amount you paid in), or the guaranteed minimum value.

  • Flexible Withdrawal Benefit Rider allows you a one-time lump sum payment in any amount up to the contract’s accumulation value if you should be confined to an eligible nursing home, assisted living facility or hospital for 30 of 35 consecutive days.
  • The rider must be chosen at the time of application and there is an additional cost.

Now for Step 4. If you are still reading this and are interested or just curious, shoot me an e-mail and I would be happy to answer any questions that you may have. You can also check out our Allianz 360 Annuity Calculator.

2 Comments

  1. What would you consider the downside, or negative details of this annuity? Compared to a variable annuity, what are the major pros and cons in comparison?

    Reply
    • John,
      Great questions. There’s not much to speak of regarding negatives on this annuity. It is an excellent one. That being said, three features that one should definitely be aware of are these:

      1) It has a 3.4% spread (Allianz recently announced a small increase due to lethargic Treasuries market). While this is still better than a cap, IMO, it means that your money won’t grow until the index gets above 3.4%

      2) It has a 1% income rider. This is standard for the industry and not punitive at all. However, if you want the satisfaction of paying 0% fees, the Allianz 222 will be more to your liking.

      3) Finally, this is for conservative money. Think of this as repositioning the bond component of your current strategy into a vehicle with similar returns but no possibility of loss. For an aggressive investor, hoping for 12% returns over the long haul, this will not achieve that.

      I hope this helps. Please let me know if you have any other questions.

      Reply

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