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2021 Allianz Life Insurance Company Review

Allianz Life Insurance

Allianz Life Insurance Company Ratings

Allianz life insurance Allianz Life Insurance Company of North America
Comdex Score:94
A.M. Best Rating:A+ (Superior)
Standard and Poors:AA (Very Strong)
Year Established:1896
Top Products:Life Pro+ IUL
Allianz Life
5701 Golden Hills Drive
Minneapolis, MN 55416
Website and phone:
www.allianzlife.com
800-950-5872

Established over 115 years ago, Allianz Life Insurance Company of North America 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. 

Allianz offers a well rounded portfolio of  life insurance and fixed indexed annuities.  Allianz is recognized worldwide as a premier insurance and financial product provider.

 

Allianz offers one of the best indexed universal life insurance products available today.   In 2020 the Allianz Life Pro + Advantage indexed universal life ranked 2nd in volume sold.

Let’s get right to it. Our review will cover policy features, riders, pros and cons and of course expenses.

 

Allianz Life Pro+ Advantage 

Allianz Life currently offers only one life insurance policy, the Life Pro+ Advantage indexed universal life.  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.

First off, we need to point out that the Life Pro+ is life insurance.  This policy is built for more for cash growth and accumulation than death benefit.

Although Allianz offers only one IUL policy, they were #2 in sales among their peers.

Important: Watch before you buy Life Pro+

Index Allocations available

Life Pro+ Advantage offers many index allocation options to choose from. 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:

Available index selections for Life Pro+ Advantage 
Select Index Allocations – 40% Multiplier Bonus 1% Asset ChargeIllustrated Rate
Blended Index Annual PTP6.15
Bloomberg US Dynanic Balance II ER PTP6.15
PIMCO Tactical Balanced ER PTP6.15
Bonused Index Allocations – 15% Multiplier Bonus No Additional ChargeIllustrated Rate
Blended Index annual point-to-point 6.15
Bloomberg US Dynamic Balance II ER Index annual point-to-point6.15
PIMCO Tactical Balanced ER Index annual point-to-point 6.15
Classic – 0.90% Guaranteed Bonus No Additional ChargeIllustrated Rate
Blended Index annual point-to-point 5.78
Bloomberg US Dynamic Balance II ER Index annual point-to-point6.00
PIMCO Tactical Balanced ER Index annual point-to-point 6.00
Standard Allocations – No Bonus No Additional ChargeIllustrated Rate
S&P 500® Index annual point-to-point 6.15
S&P 500® Index monthly sum 6.15
S&P 500® Index trigger method 4.99
Blended Index annual point-to-point 6.15
Bloomberg US Dynamic Balance II ER Index annual point-to-point 6.15
PIMCO Tactical Balanced ER Index annual point-to-point 6.15
Fixed Allocation (Current Crediting Rate: 4.25 %) 4.25
Above index allocations available as of 1/31/2021

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, classic or standard index allocation options.

Index Lock Feature

One very important feature of the Allianz Life Pro+ Advantage policy is the ability to lock in your return before the end of your index period.  This could be useful when you have hit your index cap for the year.  Assuming that you hit your index cap midway through the year, you could lock in your rate and eliminate the risk of the market erasing your gains for the policy year.  The example below shows how index lock can help enhance your policy performance.

 

index lock  

 

Policy Riders

Many policy riders are available and some are automatically included with Allianz Life Pro+:

  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.
  3. Supplemental Term Rider – The insured may add up to 10 times the amount of the base insurance coverage in term life coverage.  This term rider is convertible into the base coverage prior to 10 years or age 75, whichever comes first.
  4. Child Term Rider – Allows insured to add term insurance protection for all children who are at least 15 days old to age 21. This rider is fully convertible to an Allianz IUL policy for the insured child.
  5. Waiver of Specified Premium Rider – If the insured is totally disabled for 6 months before turning age 65, Allianz will credit the policy in the amount the insured has specified.  This amount can be as low as $25 per month and as high as $150,000 per policy year.
  6. Enhanced Liquidity Rider – This rider waives all surrender charges beginning the first day of coverage.  This rider is great when premium financing like Kaizen is used to help in funding the policy.

Death Benefit 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.

Allianz Life Pros and cons

We feel that Allianz Life offers many advantages over other IUL companies. 

Lets start with the pros:

  • Easy application process done online through Apply Now.  Uses electronic signatures
  • Accelerated Underwriting:  Ages 25-65 may qualify for up to $3 Million without an exam
  • Low policy fees 
  • Fixed variable loan interest rate or no cost wash loans
  • May be used for premium finance such as Kaizen 
  • Index Rate Lock (exclusive to Allianz)
  • No cost Chronic and Terminal illness benefits

Now the Cons:

  • Doesn’t offer a term product
  • No coverage for Critical illness 
  • No longer offers the survivorship IUL (joint policy)
  • Policy cost are not waived during a chronic illness claim (this is minor but needed to be noted) 
  • If coverage has been recently applied for at another company, does not qualify for accelerated underwriting

Frequently asked Questions

Does Allianz have good financial ratings?

Allianz life insurance

Allianz is one of the highly-rated companies. They are rated A+ with A.M. Best, the most well-known rating company.

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?

woman with list graphic

Yes, there are several indices to choose from. Here are the most popular ones:
S&P 500
Bloomberg US Dynamic Balance Index II
PIMCO Tactical Balanced ER Index
Blended Index (contains a blend of five indexes)

One Response

  1. Hello,

    1) how is Allianz's claims paying history for IUL policies? How is it compared to North American?
    2) how are Allianz's policy charges for IUL compared to other companies? How does it rank?
    3) Is not having a critical care illness coverage a significant disadvantage with Allianz IUL?
    4) Is it generally true that Allianz product is more geared towards cash value accumulation and NorthAmerican towards Death Benefit and insurance benefits?

    Thank you for your time.
    -AJ

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