Allianz Essential Income 7
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Highlights
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
|
Type
|
Fixed Index |
|---|---|
| Purpose | Lifetime Income |
|
Term
|
7 Years |
|
Surrender schedule
|
8.5%8%7%6%5%4%3% |
|
Free withdrawal
|
1st year: 0% 2nd+ year: 10% |
|
Market value adjustment
|
|
|
Return of premium
|
|
|
Minimum contribution
|
$10,000 |
|
Maximum contribution
|
$1,000,000 |
|
Max Age Qualified
|
80 |
|
Types of funds
|
Non-Qualified, 401k, IRA, Spousal IRA, IRA Rollover, IRA Transfer, SEP IRA, IRA-Roth, and TSP |
Brochure
|
Open brochure |
Find out if the Allianz Essential Income 7 is the right product for you.
Premium Notes
Essential Income 7 Annuity is designed to help you accumulate savings for retirement. That's why we give you the flexibility of making additional premium payments during the first contract year or until you begin taking income, whichever comes first. Flexible premium Payments available via lump sump or systematic payments during funding window (monthly, quarterly, semiannually or annually).
Note
Note
- Allianz takes TSP (Traditional savings plans) as a direct rollover to an IRA.
- Allianz accepts Roth IRA conversions:
While a Roth IRA conversion does create ordinary income in the year of conversion, as long as the distributions from the Roth IRA are qualified, all growth after that is income-tax-free. Generally, if the taxpayer anticipates being subject to higher tax rates in the future than the taxpayer is subject to today, Roth IRA conversions might help the client ultimately have a source of income that is free from income taxes in retirement. Converting a qualified plan or Traditional IRA to a Roth IRA is a taxable event.
Withdrawal Provisions
Tax deferral
Under current federal income tax law, any interest earned in your fixed index annuity contract is tax-deferred. You don't have to pay ordinary income taxes on any taxable portion until you begin receiving money from your contract. Withdrawals are taxed as ordinary income and, if taken prior to age 59 1/2, a 10% federal additional tax may apply.
Free Withdrawals
With penalty-free withdrawal option, after the first contract year, up to 10% of the contract's premium paid can be withdrawn each contract year, as long as the money is withdrawn after the contract anniversary following the most recent premium payment; maximum is cash surrender value.
Cumulative withdrawal amount
Once you begin taking Lifetime income payments under the Essential Income Benefit, you can choose to take less than your maximum withdrawal amount. We keep track of the amount that's "left over." The amount that is left over is called the cumulative withdrawal amount. This feature allows you to take any or all of that remainder anytime after you have taken your maximum annual income payment in a contract year.
Under current federal income tax law, any interest earned in your fixed index annuity contract is tax-deferred. You don't have to pay ordinary income taxes on any taxable portion until you begin receiving money from your contract. Withdrawals are taxed as ordinary income and, if taken prior to age 59 1/2, a 10% federal additional tax may apply.
Free Withdrawals
With penalty-free withdrawal option, after the first contract year, up to 10% of the contract's premium paid can be withdrawn each contract year, as long as the money is withdrawn after the contract anniversary following the most recent premium payment; maximum is cash surrender value.
Cumulative withdrawal amount
Once you begin taking Lifetime income payments under the Essential Income Benefit, you can choose to take less than your maximum withdrawal amount. We keep track of the amount that's "left over." The amount that is left over is called the cumulative withdrawal amount. This feature allows you to take any or all of that remainder anytime after you have taken your maximum annual income payment in a contract year.
Allocation Accounts
| Name | Type | Rates |
|---|---|---|
| 1-Year Fixed Account |
Fixed
|
3.6%
Fixed
|
| 1-Year Bloomberg Dynamic Balance II PTP Cap |
Point to Point
Annual
|
5.5%
Cap
|
| 1-Year S&P 500 PTP Cap |
Point to Point
Annual
|
5.5%
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) |
| Essential Income Benefit Option 1 (DE) | Yes | 1.05% annually (2.00% max) |
| Essential Income Benefit Option 2 (DE) | Yes | 1.05% annually (2.00% max) |
Waivers
No Waivers for Allianz Essential Income 7 annuity.
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