Fixed index annuity review and rates

Allianz Essential Income 7

Essential Income 7 Annuity offers you principal protection from market loss, potential indexed interest, and the potential for tax-deferred growth. Plus, with a simple design that features one contract value, an easy-to-understand crediting method, and a built-in Income Benefit (at an additional cost), Essential Income 7 Annuity also provides:
  • two index allocation options,
  • an option for potentially increasing lifetime withdrawal percentages, and
  • choices for receiving lifetime income withdrawals.
Income or accumulation benefits
  • The Essential Income Benefit is included with the Essential Income 7 Annuity for an additional charge. It offers increasing income withdrawal percentages (beginning at age 45) until lifetime withdrawals begin or annuitization is started. It also offers a choice of two-income payment options: predictable payments and payments with the opportunity to increase. Once lifetime income withdrawals begin, access to penalty-free withdrawals is no longer available.
  • Lifetime benefit withdrawals cannot begin before age 50.
  • The annual benefit charge for the Essential Income Benefit is a percentage of the accumulation value, deducted monthly from the accumulation value, and guaranteed minimum value (in most states). The annual benefit charge percentage for the guaranteed minimum value is 1,05% for all contract years. The annual benefit charge percentage for the accumulation value is 1,05% for the first contract year. It can change each year during the next six contract years, but will not be more than 2.50%. After the seventh contract year, the annual benefit charge percentage will be 1,05% for all remaining contract years. The benefit charge will continue for the life of the contract even after lifetime income payments have begun.
Available in states: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, and WY

Allocation Accounts

Name Type Rates
1-Year Fixed Account
Fixed
3.7% Fixed
1-Year Bloomberg Dynamic Balance II PTP Cap
Point to Point
Annual
8% Cap
1-Year S&P 500 PTP Cap
Point to Point
Annual
7.25% Cap

Surrender schedule

Year 1 2 3 4 5 6 7
Penalty 9% 8% 7% 6% 5% 4% 3%

Riders

Name Inbuilt Fee
Essential Income Benefit Option 1 Yes 1.05% annually (2.50% max)
Essential Income Benefit Option 2 Yes 1.05% annually (2.50% max)
Allianz Life Insurance Company of North America
Founded: 1896
A.M. Best: A+
S&P: A+
Moody's: A1
Carrier details
Free withdrawal
1st year: 0%
2nd+ year: 10%
Surrender schedule
7 years
Return of premium
Market value adjustment
Minimum contribution
$10,000
Types of funds
Non-Qualified, 401k, IRA, Spousal IRA, IRA Rollover, IRA Transfer, SEP IRA, IRA-Roth, and TSP