MINNEAPOLIS--(Allianz Life®) today launched the optional Premium Deposit Fund (PDF) Rider, available with the Allianz Life Pro+® Fixed Index Universal Life Insurance Policy for no additional cost, allowing clients to fund the PDF with a single payment and avoid creating a Modified Endowment Contract. After submitting a lump sum amount to the PDF1, Allianz Life will automatically transfer the client’s annual planned premium into their life insurance policy, and will also provide an annual 2.25% Premium Discount Rate as the premium is transferred from the PDF into the policy – helping to stretch dollars further2, 3.)--Allianz Life Insurance Company of North America (
“The Premium Deposit Fund Rider is another great addition to Life Pro+ because it is simple, predictable and helps maintain the tax advantages available through life insurance.”
“Life Pro+ has proven to be a popular choice for consumers in need of death benefit protection as well as tax-deferral and flexibility with any available cash value through policy loans,” said Jason Wellmann, senior vice president of Life Insurance Sales for Allianz Life. “The Premium Deposit Fund Rider is another great addition to Life Pro+ because it is simple, predictable and helps maintain the tax advantages available through life insurance.”
Clients start by making a lump-sum payment into their Premium Deposit Fund. Their first annual planned premium is deducted from that amount and transferred to their life insurance policy, giving them a disciplined premium payment approach and the reassurance it can provide. Each policy year, for the number of years they select for the Premium Deposit Fund period, their annual premium will be transferred from the PDF into their life insurance policy4. Every policy anniversary, the amount withdrawn from the PDF to pay the annual planned premium will have a Premium Discount Rate3 applied – creating the Discounted Premium Credit2, 5.
In July 2012, Allianz Life announced enhancements to Life Pro+, adding a new blended index allocation option with a 2% annual floor, which is designed to offer more choice and flexibility for policyholders who want to increase the potential for cash value accumulation in their policy. The death benefit, which is provided income-tax-free to beneficiaries, can address immediate needs that may include income replacement, a college funding strategy, paying down a mortgage or other debts, estate tax coverage, final expenses, and business succession. In addition to the death benefit, Life Pro+ provides the policyholder access to the available cash value income-tax-free via policy loans and surrenders6. The 5.3% fixed participating loan rate is guaranteed, and among some of the most competitive participating loan rates available within the life insurance industry.
Optional Inflation Protection Rider
Life Pro+ also offers an innovative optional Inflation Protection Rider, which is available at an additional cost (based on age, gender, risk class and death benefit) at the time it is exercised. There is no additional cost if the rider is not exercised.
Launched in the second quarter of 2011, advantages of Life Pro+ include:
- Tax advantages, including income-tax-free death benefit to beneficiaries, potential to build cash value on a tax-deferred basis, and policy loans from the available cash value that are income-tax-free while the policy remains in force6.
- Cash value accumulation potential that can earn credited interest based on a variety of index allocations that include the S&P 500®, Nasdaq-100®, and an exclusive blended index. With the built-in annual reset feature, any indexed interest credited is locked in and can never be lost due to market volatility, meaning the policy’s cash value is guaranteed to never decrease due to negative index changes.
- Select index allocation options that offer higher caps or participation rates (available at an additional cost of 1%).
- Complete customization via optional riders, including an Inflation Protection Rider that can help protect purchasing power.
- Flexible premium payments to help meet financial goals. Premiums can be paid at any time and in any amount (subject to some limits), as long as policy expenses and cost coverage are met.
- Policy loans6 – including a low 5.3 % guaranteed participating loan interest rate – that can help supplement retirement income, supplemental college funding, financial emergencies or business succession planning.
Keep in mind that most life insurance policies require health underwriting and, in some cases, financial underwriting.
For more information about Life Pro+, visit www.allianzlife.com.
1 Additional premium payments may be required to keep the
life insurance policy in force if the premium discount rate changes
2 Discount does not apply to first year premium.
3 The Premium Discount Rate is guaranteed on an annual basis and will never be less than 0.25%.
4 Minimum number of planned premium transfers is three, and the maximum number of premium transfers is 10.
5 The Discounted Premium Credit being transferred to the policy is considered interest paid to the policy holder and will generate a 1099-INT for the policy holder (Consult with a tax advisor).
6 Policy loans will reduce available cash values and death benefits, and may cause the policy to lapse or affect any guarantees against lapse. Additional premium payments may be required to keep the policy in force. In the event of a lapse, outstanding policy loans in excess of un-recovered cost basis will be subject to ordinary income tax. Tax laws are subject to change. You should consult a tax professional.
Guarantees are backed by the financial strength and claims-paying ability of the issuing company.
Contract P54350 is issued by Allianz Life Insurance Company of North America. Product and feature availability may vary by state.
About Allianz Life
Allianz Life Insurance Company of North America, one of FORTUNE’s 100 Best Companies to Work For in 2012, has been keeping its promises since 1896. Today, it carries on that tradition, helping Americans achieve their retirement income and protection goals with a variety of annuities and life insurance products. As a leading provider of fixed index annuities, Allianz Life is part of Allianz SE, a global leader in the financial services industry with 142,000 employees worldwide. More than 78 million private and corporate customers rely on Allianz knowledge, global reach, and capital strength to help them make the most of financial opportunities.
Allianz Life Insurance Company of North America offers insurance and annuities in all states except New York. In New York, products are issued by Allianz Life Insurance Company of New York.