Allianz Life Insurance Company Review

Allianz Life Insurance Company Review

When individuals and families are planning for the future, issues like college funding and retirement planning rank at the top of the list. It makes good financial sense anytime you can combine your investment strategy along with your financial protection needs and highly-rated life insurers will certainly be a big part of that picture.

As an independent insurance brokerage, we feel the more our customers know about the insurance carriers we represent and recommend, their comfort level increases when they are making a purchase decision of any financial product. Here, we’ll drill down into the Allianz Life Insurance Company of North America in our attempt to inform and advise.

But first, how is Allianz pronounced?

Allianz Life Insurance Company

Established over 115 years ago, Allianz Life Insurance Company has grown its footprint to over 85 million clients worldwide and are currently ranked in the top 50 life insurance companies in the world. As far as their financial products are concerned, Allianz has grown to take the number three spot for money management and ranks number two in diversified insurance products. To top those accolades off, the company collected over $11 billion in insurance premiums in 2015.

Allianz offers a complete portfolio of insurance products and investment products and is recognized worldwide as a premier insurance and financial product provider.

Allianz Life Insurance Company Financial Ratings

The most direct method of determining whether your insurer will be able to pay claims and operating expenses on a long-term basis is to review the company’s ratings with the nationally know rating services. Additionally, knowing the company’s ratings over a decade certainly can’t hurt. Here are Allianz’s ratings since 202:

Allianz Life Insurance ratings

A.M. Best’s A+ (Superior) rating is their second-highest out of 16 possible ratings.

Moody’s A1 rating is their fifth-highest out of 21 possible ratings.

Standard & Poor’s AA (Very Strong) rating is the third-highest of 21 possible ratings.

Allianz Life Insurance Products

Allianz logo

Allianz offers several very competitive products in the Indexed Universal Life and Term Insurance categories. Both products are extremely useful as components for financial planning for individuals, families, and businesses so it is essential to discuss them in our Allianz life insurance review.

What is Indexed Universal Life Insurance?

Indexed Universal Life Insurance (IUL) is an insurance policy that provides a guaranteed death benefit combined with a cash value component that the policyholder can invest a portion of their periodic premium in. The IUL allows the policyholder to allocate cash to either a fixed account or an equity index account like the Nasdaq 100 or S&P 500. Although these accounts earn interest, it’s important to note that the policy funds are invested in equity positions which is an important component in the Allianz IUL

Be sure that you get a comparison from all of the top life insurance companies before you purchase an Indexed life policy.  In addition to Allianz life, here are some additional carriers offering indexed universal life insurance:

What is indexed universal life? Allianz IUL insurance policies offer the policyholder tax-deferred cash accumulation while also providing a guaranteed death benefit and the accumulated cash value can be used as an income stream when needed (usually for retirement income). Although IULs have a”cap”  on the maximum amount of interest that can be credited to the policy, it also has a “floor” which means the account will never lose value during a crediting period.

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Allianz Life Pro+ Elite

The Life Pro+ Elite policy is a Fixed Index Universal Life policy, that allows the policyholder the flexibility to change premiums and coverage to accommodate life events that almost everyone will experience in their lifetime which is why we are compelled to mention it in this Allianz Life insurance review.

When you decide to purchase Life Pro+ Elite you have the option to select one or more index allocation options. These index options are tracked by the insurer and then according to the crediting method, if there is indexed interest due to you, it is credited to your policy’s cash account on a yearly basis. The accounts you can choose to invest in are as follows:

  • Allianz True Balance
  • Blended Index
  • PIMCO Tactical Balanced Index
  • PIMCO Tactical Balanced ER Index
  • S&P 500 Index
  • Bloomberg US Dynamic Balance Index II
  • Bloomberg US Dynamic Balance II ER Index

Policyholders also have the option to allocate all or a portion of your cash value to a fixed interest allocation. The policy also provides the flexibility for you to change your allocations each policy year and choose whether or not to participate in bonused index allocation or standard index allocation options.

Policy Riders

 There are two important that will automatically be included in your Allianz IUL:

  1. Loan Protection Rider – This rider offers protection from a policy lapse that could result from an unpaid policy loan. This important rider can be triggered if you are between 75 and 120 years old.
  2. Waiver of New Charges Benefit – This rider provides for the insurance company to waive surrender and expense charges and the Enhanced Liquidity Rider charges for any increased coverages in policy years eleven and later.

Allianz Life Pro+

The Life Pro+ fixed index universal life policy starts with a tax-free death benefit that is paid to your beneficiary in the event of your death. The policy also offers the ability for you to accumulate cash value that is based on positive changes in the market index linked to the policy.

Life Pro+ is available to applicants from age 0 to 80-years old and offers several risk classifications. Since this is a fully underwritten policy, a medical exam will be needed.  A few of the rate classes available include:

  • Juvenile – ages 0 to 17
  • Smoker – ages 18 to 75
  • Non-smoker – ages 18 – 80

Available face amounts are $100,000 (minimum) up to $65 million (maximum). The death benefit can also be structured with several options:

  • Level Option – with the level option, the amount of the death benefit will remain level throughout the policy’s life.
  • Increasing Option – When this option is chosen, the death benefit is equal to a specific amount of coverage plus the accumulated cash value.
  • Return of Premium – With the return of premium option, the death benefit equals a specified amount plus the sum of the payments that have been paid into the policy.

Available Indexes for Allianz Life Pro+

Life Pro+ can earn indexed interest as a result of the growth of one or more of the following indexes:

  • S&P 500
  • Bloomberg US Dynamic Balance Index II
  • Blended Index (contains a blend of five indexes)
  • Allianz True Balance – (contains a blend of the S&P 500 and Bloomberg Barclays US Aggregate RBI Series 1 index)

Life Pro+ policyholders also have the option to allocate a portion or all of the cash value to a fixed indexed account.

Allianz Life Pro+ Advantages to the Policyholder

Life Pro+ policy owners have several tax advantages that include the income-tax-free death benefit, cash accumulation on a tax-deferred basis, and income-tax-free policy loans while your policy stays in force.

Also, since this policy is a Universal Life policy, the policyholder can adjust the periodic premium payments to accommodate your financial circumstances. Life Pro+ also comes with a Chronic Illness benefit rider and a Terminal Illness benefit rider built-in.

Allianz Life Pro+ Survivor

The Pro+ Survivor policy is an excellent method to insure two individuals simultaneously. Since the death benefit is paid upon the death of the second insured person, this policy is an excellent method for estate preservation without the costs of two separate policies.

Life Pro+ Survivor comes with all the bells and whistles included in the Life Pro+ product along with index options and the Chronic Illness and Terminal Illness Accelerated benefit rider.

Allianz Life Asset Pro+

The Allianz Asset Pro+ product is an Indexed Universal Life policy designed to provide asset protection for the policyholder. Asset Pro+ helps individuals and families protect other assets through diversification and the Asset Pro+ comes with the options and benefits provided with Allianz’s other indexed universal life products.

Having the Asset Pro+ insurance policy in place with a sufficient death benefit allows surviving loved ones to continue to fund other financial vehicles if you are no longer available to support long-term financial goals.

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Optional Riders for Allianz Indexed Universal Life

Allianz understands that people have different needs that can change during an individual’s lifetime. To accommodate Allianz policyholders, Allianz Insurance Company offers various optional riders that allow the policyholder to customize their policy to meet their individual needs:

Supplemental Term RiderThis rider allows the applicant to add term insurance up to ten times the face amount and is convertible to permanent insurance.
Child Term RiderThe child term rider allows the applicant to purchase insurance coverage for their children of up to $10,000 and includes the conversion option.
Enhanced Liquidity RiderThis rider provides for the insurer to waive a percentage of surrender charges when the cash value is accessed in the early years of the policy.
Other Insured RiderThis rider allows the applicant to add up to four other people to the policy with term insurance of up to four times the face amount of the policy.
Premium Deposit Fund RiderAllows the policy owner to deposit lump sum amounts to pay multiple years of coverage at a discount.
Waiver of Specified Premium RiderThis rider provides for the Allianz Insurance Company to waive a specified amount of premium if the insured becomes totally disabled.

Allianz Life Insurance Term Pro+

For consumers who are interested in temporary insurance at very affordable prices, Allianz insurance company offers their Term Pro+ product. The Term Pro+ is an affordable solution for individuals who need temporary life insurance coverage up to $10 million. We think that even Dave Ramsey and Zander life insurance would approve of Allianz Term Pro+.  The highlights for the Term Pro+ are as follows:

Pro+ Term infographic

For more information about Allianz Life Insurance products and a free and confidential quote, contact the professionals at InsuranceQuotes2Day during normal business hours at (800) 712-8519 or contact us through our website at your convenience.

Frequently asked Questions

Does Allianz have good financial ratings?

Allianz life insurance

Allianz is one of the highly-rated companies that have been rated “A” or better since 2002. They are rated A+ with A.M. Best, the most well-known rating company.

Does Allianz offer survivorship life insurance?

Life Pro+ Survivor comes with all the bells and whistles included in the Life Pro+ product along with index options and the Chronic Illness and Terminal Illness Accelerated benefit rider.

Does Allianz offer optional riders with Indexed Universal Life Insurance?

indexed universal life vs 401k

Allianz understands that people have different needs that can change during an individual’s lifetime. To accommodate Allianz policyholders, the insurer offers various optional riders that allow the policyholder to customize their policy to meet their individual needs.

Can I choose from several indices if I buy IUL for Allianz?

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Yes, there are several indices to choose from. Here are the most popular ones:
S&P 500
Bloomberg US Dynamic Balance Index II
Blended Index (contains a blend of five indexes)
Allianz True Balance – (contains a blend of the S&P 500 and Bloomberg Barclays US Aggregate RBI Series 1 index)