Allianz Life has launched the Signature 7, a fixed indexed annuity with three index options—the S&P500, the Russell 200 and Barclays U.S. Dynamic Balance Index—as well as a fixed interest option. There’s a seven-year surrender period.
Signature 7 offers an annual reset that locks in earned interest each year. The annuity is available to Allianz Preferred broker-dealers, insurance marketing organizations. It is approved in 41 states.
This is an accumulation stage product, not an income product. Like most FIAs, it’s designed for retail investors who are looking for a safe return that’s higher than they can get from fixed income products. Although the product is described as intended for broker-dealers, the seven-year surrender period may be longer than many broker-dealers would like to sell.
The Signature 7 offers a monthly sum crediting strategy and a spread of 1.7% on the Barclays index. Any return above 1.7% will be credited to the policy on the anniversary in this index.
The new product complements Allianz’s recently launched Core Income 7 annuity, which has a guaranteed lifetime withdrawal benefit option. With the Signature 7 annuity, a policyholder must annuitize to receive lifetime income.
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