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Transcript of For agent use only – not for use with the public Mission: Allianz Life is the leading innovator of...
For agent use only – not for use with the publicMission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
Allianz Life Insurance Company of North America
Allianz Life Insurance TrainingGENDEX MOMENTUM
For agent use only – not for use with the public
For agent use only – not for use with the publicMission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
Allianz LIFE Products
Term 10 – 20 - 30 year (ROP)Generation Planner – Low cost UL
Legacy Planner – Simplified Underwriting GenDex Momentum – Cash Value GenDex Survivor – Second to Die
For agent use only – not for use with the publicMission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
Allianz LIFE Products
Term 10 – 20 - 30 year (ROP)Generation Planner – Low cost UL
Legacy Planner – Simplified Underwriting GenDex Momentum – Cash Value GenDex Survivor – Second to Die
For agent use only – not for use with the publicMission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
GenDex MomentumSM Life Insurance Policy
• Crediting Methods
• Policy specs
• Six case studies
• Software
Agenda
For agent use only – not for use with the publicMission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
What makes FIUL different?
For agent use only – not for use with the publicMission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
What makes FIUL different?
Other “moving parts”:Participation rate
- 10% index increase x 100% participation = 10% return
- 10% index increase x 50% participation = 5% return
- 10% index increase x 230% participation = 23% return
Cap- 10% index increase with an 8% cap = 8% return
- 10% index increase with a 14% cap = 10% return
Fees- 10% index increase with a 3% fee = 7% return
For agent use only – not for use with the publicMission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
What makes FIUL different?
Three words: Indexed interest potential
Cash value earns interest based on external index(es).
Universal Life Policy
Fixed Interest 5.25%
S&P 500
NASDAQ 100
EUROSTOXX 50
Blended Index
For agent use only – not for use with the publicMission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
What makes FIUL different?
Three words: Indexed interest potential. Positive index return is credited to policy1
Gains are locked in each yearNegative index return equals 0% return on policy.
For agent use only – not for use with the publicMission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
What makes FIUL different?
Crediting interest
4 Crediting Methods- Annual point-to-point
No single crediting method is best in all situations
For agent use only – not for use with the publicMission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
The hypothetical example is used to illustrate the crediting method only. It does not represent any specific product or past performance. Actual performance will vary. This is not a guarantee of future results.
930940950960970980990
1000
1010
1020
1030
1040
1050
1060
1070
1080
1090
1100
1110
Annual point-to-point
End Year 1
1083
1000
What makes FIUL different?
For agent use only – not for use with the publicMission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
What makes FIUL different?
Crediting interest
4 Crediting Methods- Annual point-to-point- Monthly sum- Monthly average- Fixed interest
No single crediting method is best in all situations
For agent use only – not for use with the publicMission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
The hypothetical example is used to illustrate the crediting method only. It does not represent any specific product or past performance. Actual performance will vary. This is not a guarantee of future results.
930940950960970980990
1000
1010
1020
1030
1040
1050
1060
1070
1080
1090
1100
1110
Monthly point-to-point
End Year 1
What makes FIUL different?
For agent use only – not for use with the publicMission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
Monthly sumAssumed cap is 3.40%
MonthHypotheticalmonthly index change
Cappedmonthly change
1 5.27 +3.402 -2.00 -2.003 2.00 +2.004 -1.50 -1.50
10 -4.00 -4.009 -3.00 -3.00
5 4.61 +3.406 2.50 +2.507 3.87 +3.408 0.25 +0.25
11 4.43 +3.4012 2.25 +2.25
(The sum of capped monthly changesequals the year’s indexed interest.) +10.10%
What makes FIUL different?
The hypothetical example is used to illustrate the crediting method only. It does not represent any specific product or past performance. Actual performance will vary. This is not a guarantee of future results.
For agent use only – not for use with the publicMission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
What makes FIUL different?
Crediting interest
4 Crediting Methods- Annual point-to-point- Monthly sum- Monthly average- Fixed interest
No single crediting method is best in all situations
For agent use only – not for use with the publicMission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
The hypothetical example is used to illustrate the crediting method only. It does not represent any specific product or past performance. Actual performance will vary. This is not a guarantee of future results.
930940950960970980990
1000
1010
1020
1030
1040
1050
1060
1070
1080
1090
1100
1110
Monthly Average
End Year 1
1020
1000
What makes FIUL different?
10451025
1015
985
997
1023
1027
1055
1050
1060
1081
1020
1000
1045
1025
1015
985
997
1023
1027
1055
1050
1060
1081
For agent use only – not for use with the publicMission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
What makes FIUL different?
Hypothetical example used to illustrate crediting method only. Does not represent any specific product or past performance. Actual performance will vary. Not a guarantee of future results.
Monthly average
For agent use only – not for use with the publicMission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
What makes FIUL different?
Crediting interest
4 Crediting Methods- Annual point-to-point- Monthly sum- Monthly average- Fixed interest
No single crediting method is best in all situations
For agent use only – not for use with the publicMission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
Allianz GenDex MomentumSM Life Insurance Policy
The Dow Jones EURO STOXX 50 Index's stated objective is to provide a blue-chip representation of leading corporations in the Eurozone. The index covers 50 stocks from 12 Eurozone countries: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain.
The Dow Jones Euro STOXX 50® is the intellectual property (including registered trademarks) of Stoxx Limited, Zurich, Switzerland and/or Dow Jones & Company, Inc., a Delaware corporation, New York, USA, (the "Licensors"), which is used under license. The financial instruments based on the Index are in no way sponsored, endorsed, sold or promoted by the Licensors and neither of the Licensors shall have any liability with respect thereto.
The Dow Jones Industrial Average is a popular indicator of the stock market based on the average closing prices of 30 active U.S. stocks representative of the overall economy.
Lehman Brothers Aggregate Bond Index is a market value-weighted index of investment-grade fixed-rate debt issues, including government, corporate, asset-backed and mortgage securities, with maturities of one year or more.
Russell 2000® Index is an equity index representing 2,000 of the smallest companies within the larger Russell 3000® Index. Often looked at as one benchmark for small stock investors. Russell 2000 is a registered service mark of Frank Russell Company.
Blended indexDow Jones Industrials (35%), Lehman Aggregate Bond
(35%), Euro STOXX 50 (20%), Russell 2000 (10%)
For agent use only – not for use with the publicMission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
YearBlended
Index – no caps, no floor
Blended Index 215% par. rate & 0% floor
Blended Index 25% par. rate & 0% floor
Dec 1988 15.75% 20.89% 2.43%
Dec 1989 21.45% 26.65% 3.10%
Dec 1990 -4.90% 0.00% 0.00%
Dec 1991 20.37% 27.89% 3.24%
Dec 1992 6.36% 7.93% 0.92%
Dec 1993 17.65% 20.15% 2.34%
Dec 1994 -2.16% 0.00% 0.00%
Dec 1995 23.62% 26.91% 3.13%
Dec 1996 16.41% 16.24% 1.89%
Dec 1997 20.72% 27.95% 3.25%
This example is provided for illustrative purposes only. Past performance is not an indication of future results.
Based on actual blended index returns. Assumes GenDex Momentum was available in 1988.
YearBlended
Index – no caps, no floor
Blended Index 215% par. rate & 0% floor
Blended Index 25% par. rate & 0% floor
Dec 1998 14.73% 19.12% 2.22%
Dec 1999 19.85% 17.04% 1.98%
Dec 2000 0.95% 0.00% 0.00%
Dec 2001 -3.48% 0.00% 0.00%
Dec 2002 -11.90% 0.00% 0.00%
Dec 2003 17.97% 12.46% 1.45%
Dec 2004 5.70% 2.34% 0.27%
Dec 2005 5.23% 2.94% 0.34%
Dec 2006 11.94% 11.58% 1.35%
Dec 2007 5.77% 9.32% 1.08%
Protection with potential: monthly average crediting with allocation to blended index
The chart below illustrates the performance of GenDex Momentum over the past 20 years using monthly average crediting of the blended index. The columns indicate the year sampled, actual historical index performance for that year, and corresponding GenDex Momentum annualized monthly average credits based on an assumed 175% participation rate, 0% floor, and a 10-year death benefit guarantee. Also illustrated are the credits using the 25% minimum guaranteed participation rate.
For agent use only – not for use with the publicMission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
Annualpoint-to-point
Monthly average
Monthly sum
S&P 500 Yes N/A YesNasdaq 100 Yes N/A YesEuro STOXX 50 Yes N/A YesBlended Index Yes Yes N/A
Allianz GenDex MomentumSM Life Insurance Policy
Added flexibilityCan reallocate on every contract anniversary
Allocations can be made in 1% increments
For agent use only – not for use with the publicMission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
GenDex Momentum provides:
A death benefit to the beneficiaries
NEW! Index choices (230% par. rate on monthly average!)
Higher caps and illustrated rates
Higher target premium (25%-30%)
Shorter surrender periods
Enhanced Early Liquidity
For agent use only – not for use with the publicMission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
The GenDex Series can help provide solutions for:
#1 - Supplemental Retirement Income
#2 - Family Planning Strategies
#3 - Universal Life Insurance Policy Rescue Strategy
#4 - College Funding
#5 - Wealth Transfer (single premium)
#6 - Business Planning Strategies- Executive Bonus Plan
#7 - Charitable Giving
#8 - Business Succession Planning Strategies - Buy/Sell
For agent use only – not for use with the publicMission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
Case Study #1: Supplemental Retirement Income
Jim and Lori, both are healthy and 45 years old
Two children
Jim recently got a promotion at work
Their total annual income is now $180,000
Jim & Lori each used to contribute $4,000/yr to Roth IRAs
They just recently purchased a new home with a $300,000 mortgage
This hypothetical example is provided for illustrative purposes only. Characters are fictional and are not actual Allianz clients.
Allianz GenDex MomentumSM Life Insurance Policy
For agent use only – not for use with the publicMission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
Here is an example of how GenDex Momentum could be a good fit for Supplemental Retirement Income
Assumptions:
45 year old male Preferred Plus Non-Tobacco Risk Class
Face amount = $300,000
Over fund the policy with $8,000 of annual premium- Target annual premium $5,023.50
- Max non-MEC premium is $14,230.58
Pay to age 65 and then take retirement income 66-85
This hypothetical example is provided for illustrative purposes only. Characters are fictional and are not actual Allianz clients.
Allianz GenDex MomentumSM Life Insurance Policy
For agent use only – not for use with the publicMission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
Case Study #2: Family Planning Strategies
Dave and Katie are both healthy and 35 years old
They have one child with another on the way
Katie is a stay at home mom
Dave’s annual income is $110,000
Dave and Katie currently own a home with about $150,000 left on their mortgage
This hypothetical example is provided for illustrative purposes only. Characters are fictional and are not actual Allianz clients.
Allianz GenDex MomentumSM Life Insurance Policy
For agent use only – not for use with the publicMission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
Here’s an example of how GenDex Momentum could be a good fit for Family Planning StrategiesAssumptions: 35 year old male Super Preferred Non-Tobacco Risk Class Face amount=$250,000 Add Additional Term Rider1 of $250,000 for 30 years to give Dave extra
death benefit at a more reasonable cost than with traditional cash value insurance
Add Child Term Rider1 ($10,000) to cover children Add Other Insured Term Rider1 for $250,000 to provide life insurance
coverage for Katie (Super Preferred Non-Tobacco)
1 Riders are available at an additional cost.This hypothetical example is provided for illustrative purposes only. Characters are fictional and are not actual Allianz clients.
Allianz GenDex MomentumSM Life Insurance Policy
For agent use only – not for use with the publicMission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
Case Study #3: Universal Life Insurance Policy Rescue Strategy Edward is 50 years old in good health He purchased $200,000 current interest UL policy 15 years ago from
ABC Insurance Company - paying $200/month. Originally interest rate = 10% Current interest rate = 4% Cash surrender value = $25,000 If Edward continues to pay $200/month, his policy will lapse at age 70
based on the current 4% interest. Edward’s goal is to have a policy build cash value and run to age 100.
This hypothetical example is provided for illustrative purposes only. Characters are fictional and are not actual Allianz clients.
Allianz GenDex MomentumSM Life Insurance Policy
For agent use only – not for use with the publicMission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
Here’s an example of how GenDex Momentum would be a good fit for a
Universal Life Insurance Policy Rescue Strategy
Assumptions:
50 year old male Preferred Plus Non-Tobacco
Face amount of $200,000
1035 exchange of $25,000 into GenDex Momentum
Continue to pay $200/month
GenDex Momentum will help accomplish Edward’s goals by utilizing an FIUL policy with potential cash value accumulation
This hypothetical example is provided for illustrative purposes only. Characters are fictional and are not actual Allianz clients.
Allianz GenDex MomentumSM Life Insurance Policy
For agent use only – not for use with the publicMission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
Case Study #4: College FundingPatty is a single mother 30 years old, very healthy.Has a 2 year old daughter named Emma.Patty would like to provide college funding for Emma when
Emma turns age 18.Her budget allows her to contribute $5,000/year for life
insurance coverage and college savings. Patty anticipates Emma will be in college for 5 years
This hypothetical example is provided for illustrative purposes only. Characters are fictional and are not actual Allianz clients.
Allianz GenDex MomentumSM Life Insurance Policy
For agent use only – not for use with the publicMission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
Case Study #5: Wealth Transfer
Arthur is 60 years old and in average health.He has $500,000 that he would like to pass on to his
beneficiaries. It is important that the $500,000 continues to accumulate
before he passes it on. Arthur would like to be able to access that $500,000 in case
he needs extra cash for emergencies, LTC, retirement, etc.
This hypothetical example is provided for illustrative purposes only. Characters are fictional and are not actual Allianz clients.
Allianz GenDex MomentumSM Life Insurance Policy
For agent use only – not for use with the publicMission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
Here’s an example of how GenDex Momentum could be a good fit for Wealth Transfer
Assumptions:
60 year old male Standard Nontobacco
Single pay premium of $500,000 (MEC)
Minimize death benefit to potentially increase accumulation potential
Initial death benefit = $1,055,000 (minimum face)
The LTC Rider can be added at an additional costThis hypothetical example is provided for illustrative purposes only. Characters are fictional and are not actual Allianz clients.
Allianz GenDex MomentumSM Life Insurance Policy
For agent use only – not for use with the publicMission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
Here’s an example of how GenDex Momentum could be a good fit for College Funding
Assumptions:
30 year old female Preferred Plus Non-Tobacco Risk Class
Face amount=$250,000
Pay $5,000 for 15 yrs (until Emma turns 18)
Take income from yrs 16-20 (for five years of college)
This hypothetical example is provided for illustrative purposes only. Characters are fictional and are not actual Allianz clients.
Allianz GenDex MomentumSM Life Insurance Policy
For agent use only – not for use with the publicMission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
Case Study #6: Business Planning Strategies
XYZ Company uses Executive Bonus (Section 162) Plans to attract, motivate, and retain key employees
Roger, a 45 year old key executive of XYZ Company, has elected to participate in the Executive Bonus Plan.
When XYZ hits their goals each year, they agreed to contribute $100,000 into Roger’s plan.
Roger needs life insurance to protect his family and to help him save for retirement.
This hypothetical example is provided for illustrative purposes only. Characters are fictional and are not actual Allianz clients.
Allianz GenDex MomentumSM Life Insurance Policy
For agent use only – not for use with the publicMission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
Here’s an example of how GenDex Momentum would be a good fit for Executive Bonus (section 162) Business Planning
Assumptions:
45 year old male Preferred Plus Nontobacco
XYZ Company plans to pay $100,000/year to Roger’s age 65
Roger will take retirement income from ages 66-85
Roger needs $6,000,000 in life insurance
This hypothetical example is provided for illustrative purposes only. Characters are fictional and are not actual Allianz clients.
Allianz GenDex MomentumSM Life Insurance Policy
For agent use only – not for use with the publicMission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
Thank you for your time.Allianz Life Insurance Company of North America
For agent use only – not for use with the public