Allianz Endurance Plus Annuity - Annuityexpertadvice

A choice of crediting methodsCrediting methods determine how much interest your annuity earns,based on the changes in an external index. Allianz Endurance Plusgives you a choice of three crediting methods.This is a general discussion of how creditingmethods work.Monthly sum creditingWhich creditingMAKESSENSE FORYOUR GOALS?methodTalk to your financialprofessional.For this crediting method, on the last business daybefore your contract anniversary each month (as wellas the business day before your contract is issued),we’ll compare the index value to the prior month’svalue. We’ll divide this monthly change by the priormonth’s value to get the monthly percent of change.Positive monthly changes are subject to a monthlycap, or maximum; however, negative changes are notlimited by the cap. We can raise or lower the cap eachyear, but it will never be less than 0.50%. At the end ofthe contract year, we’ll add up these monthly increasesand decreases to calculate your indexed interest rate.If the sum is negative, you’ll receive zero indexedinterest for that year.Annual point-to-point creditingFor this crediting method, we will compare the indexvalue on the last business day before your contractanniversary (as well as the last business day beforeyour contract is issued) to the index value on the lastbusiness day at the end of the contract year. We’ll thendivide this change by the index value at the beginningof the contract year to get the percent of change.Next we apply your contract’s annual cap, or maximum.We may raise or lower the cap annually, but it will neverbe less than 0.25%. If the positive percent of changeexceeds your annuity’s annual cap, the indexed interestrate will be the annual cap percentage. If the percentof change is negative, the indexed interest rate forthat year will be zero – but your contract’s valuewill be protected.Monthly average creditingFor this crediting method, we’ll capture the index valueon the last business day before your contract’s monthlyanniversary (monthiversary), including the last businessday before your contract is issued. At the end of yourcontract year, we’ll add those index values together andthen divide them by 12 to determine the average. We’llthen subtract the starting index value from the averageand divide it by the starting index value to determinethe percentage of change. There is no cap on theamount of indexed interest growth possible with thiscrediting method. However, there is an annual spreadthat is deducted from the percent change. We mayraise or lower the spread annually, but it will never begreater than 12%. If the result is positive, your contractwill be credited with indexed interest. If the result isnegative, the indexed interest rate for that year will bezero – but your contract’s value will be protected.5Page 7 of 16

Allianz Endurance Plus AnnuityParticipation rateFor each of these three crediting methods, yourcontract has a 100% participation rate. What thismeans is that we use the entire percentage of indexchange when we calculate the indexed interest rate.Please keep in mind that your indexed interest rategenerally will not equal 100% of any increase in theindex, since a cap or spread may limit the amount ofindexed interest you receive.Select Index AllocationsFor an additional cost, there are optional Select IndexAllocations that may offer a higher annual cap ormonthly cap than the Standard Index Allocations.Keep in mind that with the Select Index Allocations,in any given year the allocation charge can be greaterthan the indexed interest rate, resulting in a reductionto your contract values. Ask your financial professionalfor current allocation option availability.Although external indexes mayaffect your contract values, a marketdownturn cannot reduce your creditedinterest or principal. The contractdoes not directly participate inany stock, bond, or investments.You are not buying any bonds, sharesof stocks, or shares of an index. Themarket index value does not includethe dividends paid on the stocksunderlying a stock index. These stockdividends are also not reflected in theinterest credited to your contract.Change your mind? No problem.Shortly after your contract anniversary each year,we’ll notify you that you can change your allocationsand crediting method. If we receive your change inwriting within 21 days after your contract anniversary,it will go into effect during that contract year. But if wereceive your crediting method change more than 21days after your contract anniversary, it won’t take effectuntil the following contract year.6Page 8 of 16

Retirement income optionsAfter 10 years you can start an income withdrawal stream based onyour EWB value. You can choose one of two income withdrawal optionsto fit your individual needs. No matter which option you choose, yourpayments will increase following each year your contract earns interest.Traditional annuity payments are also available.Choose fromTWOincome withdrawaloptions to fit your needs.Option I: Scheduled withdrawalsOption II: Lifetime withdrawalsUnder this option, you may take up to 10% of your EWBvalue each contract year. After each year your chosenallocations earn interest, your maximum withdrawalcan grow with enhanced interest.You can access your annuity’s EWB value in paymentsthat last as long as you live. The amount of yourpayments will be determined based upon the agewhen you start your lifetime income stream.If you choose this option and request the maximumannual distribution, after exactly 10 years of incomepayments, you will have received your annuity’s fullEWB value, and the contract will terminate. Thisincludes the 20% EWB bonus plus any enhancedinterest credited over the entire life of the annuity.Your initial payment will equal a percentage of yourEWB value. After each subsequent year your selectedallocations earn interest, your lifetime income paymentwill grow with enhanced interest.With this option, you can suspend or restart payments,or revise your payment amount, as long as you don’texceed the maximum in any contract year. You can alsoswitch the remaining EWB value into Option II or cancelyour contract and receive the remaining accumulationvalue as a lump sum.You must be at least 60 but no older than 90 yearsof age to elect this option.Single lifepaymentJoint %5.50%AgeJoint life payment percentages are based on the ageof the younger owner.Although you cannot suspend payments, revise yourpayment amount, or switch the remaining EWB valueto Option I, you are free at any time to cancel yourcontract and receive your remaining accumulationvalue as a lump sum or to begin annuity paymentsbased on the remaining accumulation value.EWB withdrawals will be subject to ordinary income tax and, if taken prior to age 59½, a 10% federal additional tax.Page 9 of 167

Allianz Endurance Plus AnnuityTraditional annuitizationIf you utilize a traditional annuitization option, yourannuity payments are based on your accumulationvalue (which does not include the EWB bonus orenhanced interest reflected in your EWB value). Theseannuity options can have certain tax advantages. Aslong as you keep your contract for at least five years,you can choose to receive annuity payments in anyof the following ways:Interest only – You have the option to receiveinterest-only annuity payments for five years. Interestwill be paid as earned based on the amount of youraccumulation value. After five years of interest-onlypayments, you can take your full accumulation valueas a lump-sum payment.Installments for a selected amount – You mayreceive annuity payments in equal installments ofan amount that you choose, as long as the paymentslast for at least 10 years. Payments continue until youraccumulation value is gone.Joint and survivor – You can have equal installmentspaid until your death, then continue to be paid to yoursurvivor. In this case, you can select 100%, 2 3, or ½ ofyour payment amount to be paid to your survivor untilhis/her death.The payout rate used to determine your annuitypayments depends on the age of your contract, the ageof the annuitant, and the payout option selected. Theinterest rate in payout is guaranteed to be at least 1%.Installments for a guaranteed period – Youcan choose to receive annuity payments in equalinstallments for a period from 10 to 30 years.Each installment would consist of part principaland part interest.Installments for life – You have the option to receiveannuity payments in equal installments for the restof your life. Payments end upon your death.Installments for life with a guaranteed period –You can choose to receive annuity payments in equalinstallments for the rest of your life. Upon your death,annuity payments will be paid to your beneficiary forthe balance of a guaranteed period you select, from 10to 30 years, the same way as you previously selected.8Page 10 of 16

Access your money if a need arises.WithdrawalsAfter the first contract year, you can take up to 10% of your contract’s paid premium each year in one or more withdrawalswithout surrender charges. The first 5% you take out in a contract year will reduce your accumulation value and EWB value by the amount of thewithdrawal. You are eligible to receive indexed interest on this withdrawal at the end of the contract year based onthe rate and length of time that withdrawal amount remained in the contract.The second 5% you take out in a contract year will reduce your EWB value by the same percentage that it reduces youraccumulation value. You are eligible to receive indexed interest on this withdrawal at the end of the contract year basedon the rate and length of time that withdrawal amount remained in the contract.If you take out more than 10% in a contract year, a partial surrender charge will apply to the amount above 10% (the excesspartial withdrawal), and your EWB value will be reduced by the same percentage your accumulation value was reduced.If you fully surrender your contract or add premium, we will retroactively recalculate any withdrawals you took within the samecontract year as if they were all excess withdrawals. This may result in the loss of all or part of your bonus and interest you haveearned, and a partial loss of principal.9Page 11 of 16

Allianz Endurance Plus AnnuityRequired minimum distributionsAfter 10 contract years,YOU HAVEACCESSto your fullaccumulation value.Required minimum distributions from a tax-qualifiedplan (IRA, SEP, etc.) will not be subject to surrendercharges if taken annually in December or monthlythroughout the year. Contract values will be reducedby the amount of the distribution(s).Note: The money you takeout may be taxable.Your contract values grow tax-deferred. However,any distributions from your contract, includingwithdrawals, partial withdrawals, EWB payments,and required minimum distributions, may be taxableas ordinary income. Because annuities are meant to beused for long-term purposes, if you are under age 59½when a distribution is taken, it may be subject to a 10%federal additional tax.Allianz Endurance Plusgives you: Potential for indexed interest based onyour choice of several allocation optionsand crediting methods Guarantees to your principal andcredited interest A 20% bonus and potential enhancedinterest credited to the EWB value Several different options for takingretirement incomeAll withdrawals decrease the values of thecontract and its death benefit.10Purchasing an annuity within a retirement plan that provides tax deferral under sections of the Internal RevenueCode results in no additional tax benefit. An annuity should be used to fund a qualified plan based upon theannuity’s features other than tax deferral. All annuity features, risks, limitations, and costs should be consideredprior to purchasing an annuity within a tax-qualified retirement plan.Page 12 of 16

The appeal of the AllianzEndurance Plus AnnuityAllianz Endurance Plus fixed index annuity offers you accumulationpotential and flexibility to help you build a retirement strategy that suitsyour changing needs.Is the Allianz Endurance Plus Annuity the right choice for yourretirement plans? It can be a powerful financial tool, offering potentialindexed interest plus retirement income options.With the versatile Allianz Endurance Plus: Each year during accumulation and distribution under an Enhanced Withdrawal Benefit (EWB)option, you may receive indexed interest based on annual changes in one or more marketindexes, subject to a cap or spread. Once credited, any interest is locked in, and can never be lost due to market index changes. You receive a 20% bonus on premium received in the first three years, credited to the EWB value.The EWB value may also earn enhanced interest. In order to receive the EWB value, you musthold your contract for at least 10 years and then select one of the two EWB income options andreceive payments for at least 10 additional years.11Page 13 of 16

Allianz Endurance Plus AnnuityFinancial professional nameLicense numberThe Barclays Capital U.S. Aggregate Bond Index is comprised of U.S. investmentgrade, fixed-rate bond market securities, including government agency, corporate,and mortgage-backed securities. Barclays Capital and Barclays Capital U.S.Aggregate Bond Index are trademarks of Barclays Capital Inc. (“Barclays Capital”).Allianz products are not sponsored, endorsed, sold, or promoted by Barclays Capital.Barclays Capital makes no representation or warranty, express or implied, to theowners of Allianz products or any member of the public regarding the advisabilityof investing in securities generally or in Allianz products particularly or the abilityof the Barclays Capital indices, including without limitation, the Barclays CapitalU.S. Aggregate Bond Index, to track general bond market performance. BarclaysCapital’s only relationship to Allianz Life Insurance Company of North America andits affiliates (“Allianz”) is the licensing of the Barclays Capital U.S. Aggregate BondIndex which is determined, composed, and calculated by Barclays Capital withoutregard to Allianz or Allianz products. Barclays Capital has no obligation to take theneeds of Allianz or the owners of Allianz products into consideration in determining,composing, or calculating the Barclays Capital U.S. Aggregate Bond Index. BarclaysCapital is not responsible for and has not participated in the determination ofthe timing of, prices of, or quantities of Allianz products to be issued or in thedetermination or calculation of the equation by which Allianz products are to beconverted into cash. Barclays Capital has no obligation or liability in connection withthe administration, marketing, or trading of Allianz products.BARCLAYS CAPITAL DOES NOT GUARANTEE THE QUALITY, ACCURACY, AND/OR THE COMPLETENESS OF THE BARCLAYS CAPITAL INDICES, OR ANY DATAINCLUDED THEREIN, OR OTHERWISE OBTAINED BY ALLIANZ, OWNERS OF ALLIANZPRODUCTS, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE BARCLAYSCAPITAL INDICES, INCLUDING WITHOUT LIMITATION, THE BARCLAYS CAPITALU.S. AGGREGATE BOND INDEX, IN CONNECTION WITH THE RIGHTS LICENSEDHEREUNDER OR FOR ANY OTHER USE. BARCLAYS CAPITAL MAKES NO EXPRESSOR IMPLIED WARRANTIES, AND HEREBY EXPRESSLY DISCLAIMS ALL WARRANTIESOF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITHRESPECT TO THE BARCLAYS CAPITAL INDICES, INCLUDING WITHOUT LIMITATION,THE BARCLAYS CAPITAL U.S. AGGREGATE BOND INDEX, OR ANY DATA INCLUDEDTHEREIN. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALLBARCLAYS CAPITAL HAVE ANY LIABILITY FOR ANY SPECIAL, PUNITIVE, INDIRECT, ORCONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS), EVEN IF NOTIFIED OF THEPOSSIBILITY OF SUCH DAMAGES.The FTSE 100 Index comprises 100 of the most highly capitalized blue chipcompanies in the United Kingdom (UK), representing approximately 80% of theUK’s market capitalization. FTSE 100 Index companies are all traded on the LondonStock Exchange. The FTSE 100 is considered to be the most widely used UK stockmarket indicator. The FTSE 100 Index is one of several indexes in the FTSE UK IndexSeries. The UK Series is designed to represent the performance of UK companies,providing investors with a comprehensive and complementary set of indices thatmeasure the performance of all capital and industry segments of the UK. “FTSE,”“FT-SE,” “Footsie,” “FTSE4Good,” and “techMARK” are trademarks jointly owned bythe London Stock Exchange Plc and the Financial Times and are used by the FTSEInternational Limited (“FTSE”) under license. “All-World,” “All-Share,” and “All-Small”are trademarks of FTSE. The FTSE 100 is calculated by FTSE. FTSE does not sponsor,endorse, or promote this product and is not in any way connected to it and does notaccept any liability in relation to its issue, operation, and trading.The Nasdaq-100 Index includes 100 of the largest domestic and international nonfinancial securities listed on The Nasdaq Stock Market, based on capitalization. TheNasdaq-100 , Nasdaq-100 Index, Nasdaq , and OMX are registered trademarksof NASDAQ OMX Group, Inc. (which with its affiliates are the Corporations) and arelicensed 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. Theproduct(s) are not issued, endorsed, sold, or promoted by the Corporations. THECORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECTTO THE PRODUCT(S).Russell 2000 Index is an equity index that measures the performance of the 2,000smallest companies in the Russell 3000 Index, which is made up of 3,000 of thebiggest U.S. stocks. The Russell 2000 is constructed to provide a comprehensive andunbiased small-cap barometer and is completely reconstituted annually to ensurelarger stocks do not affect the performance and characteristics of the true small-cap12index. The Russell 2000 Index is a trademark of Russell Investments and has beenlicensed for use by Allianz Life Insurance Company of North America. The product is notsponsored, endorsed, sold, or promoted by Russell Investments and Russell Investmentsmakes no representation regarding the advisability of investing in the product.Standard & Poor’s 500 Index (S&P 500 ) is comprised of 500 stocks representingmajor U.S. industrial sectors. The Dow Jones Industrial Average is a popular indicatorof the stock market, based on the average closing prices of 30 active U.S. stocksrepresentative of the overall economy. S&P is a registered trademark of Standard& Poor’s Financial Services LLC (“S&P”) and Dow Jones is a registered trademarkof Dow Jones Trademark Holdings LLC (“Dow Jones”). These trademarks have beenlicensed for use by S&P Dow Jones Indices LLC. S&P marks are trademarks of S&Pand Dow Jones marks are trademarks of Dow Jones. These trademarks have beensublicensed for certain purposes by Allianz Life Insurance Company of North America(“Allianz”). The S&P 500 Index (“the Index”) and Dow Jones Industrial AverageSM(“the DJIA”) are products of S&P Dow Jones Indices LLC and/or its affiliates and havebeen licensed for use by Allianz.Allianz products are not sponsored, endorsed, sold, or promoted by S&P Dow JonesIndices LLC, Dow Jones, S&P, or any of their respective affiliates (collectively, “S&P DowJones Indices”). S&P Dow Jones Indices make no representation or warranty, express orimplied, to the owners of the Allianz products or any member of the public regardingthe advisability of investments generally or in Allianz products particularly or the abilityof the Index and Average to track general market performance. S&P Dow Jones Indices’only relationship to Allianz with respect to the Index and Average is the licensing ofthe Index and Average and certain trademarks, service marks, and/or trade namesof S&P Dow Jones Indices and/or its third-party licensors. The Index and Average aredetermined, composed, and calculated by S&P Dow Jones Indices without regard toAllianz or the products. S&P Dow Jones Indices have no obligation to take the needs ofAllianz or the owners of the products into consideration in determining, composing, orcalculating the Index and Average. S&P Dow Jones Indices are not responsible for andhave not participated in the design, development, pricing, and operation of the products,including the calculation of any interest payments or any other values credited to theproducts. S&P Dow Jones Indices have no obligation or liability in connection with theadministration, marketing, or trading of

Allianz Endurance Plus Annuity basics Allianz Endurance Plus is a fixed index annuity that offers a choice of fixed interest and/or indexed interest options. Indexed interest is based on changes in these indexes: S&P 500 Nasdaq-100 FTSE 100 A blended index that is comprised of Dow Jones