Allianz Life has issued longer-term index options on its Index Advantage variable indexed annuity, with a 20% downside buffer and cumulative caps on appreciation of as much as 80% over three years.
Investors can choose to link their accounts to the performance of either the large-cap S&P 500 Index or the small-cap Russell 2000 Index. The three-year crediting rate limits are 75% and 80%, respectively, according to a May 4 product rate sheet. The current rates expire June 1, 2020.
On the upside, clients have a one-time opportunity between contract anniversaries to lock in a gain in the value of the contract for the rest of the term. The contract can lose value if the three-year term ends with a cumulative loss of more than 20%.
The product has a 1.25% annual contract fee, a $50 annual maintenance free on contracts worth less than $100,000, and (if applicable) a maximum anniversary value death benefit fee of 20 basis points.
The one-year index option of the Index Advantage has different indexes, crediting rate limits, and buffers or floors, as shown in the chart below.
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