Allianz Death Benefit Rider
Transfer your annuity value
to your beneficiaries.
Allianz Life Insurance Company of North America
M3480
This brochure must be accompanied by the annuity consumer brochure.
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Purchasing an Allianz annuity can be an effective way to accumulate money.
Make it a more effective way to transfer your annuity value to your beneficiaries.
The Death Benefit Rider
Annuities offer important benefits including
potential interest, tax deferral, income options, and
guaranteed death benefit protection before annuity
payments begin.
When you purchase an annuity, one of your goals is
to accumulate value. Successfully reaching that goal,
however, can present a new obstacle.
If you plan to pass on the value of your annuity to your
beneficiaries through the annuity’s death benefit,
your gift may create a substantial tax burden for those
you love. The Allianz Death Benefit Rider can help
you overcome this obstacle. This rider is designed to
provide additional funds to help your beneficiaries pay
a substantial portion – or all – of the income taxes on
the death benefit that will be due shortly after your
beneficiaries receive the death benefit. It provides an
income-tax-free lump-sum death benefit in addition
to your annuity’s death benefit.
The Death Benefit Rider provides a death benefit of
28% of the difference between your accumulation
value and your cost base. The cost base is your
premium in the first five years, and an amount
you choose thereafter. The flexibility to choose the
amount allows you to customize your death benefit
and the associated charge to fit your needs.
Illustrations of the Death Benefit Rider’s values1
In this hypothetical example, Justin, age 70, put $100,000 of nonqualified money into a MasterDex
5 PlusSM Annuity on January 1, 2001. After 10 years, his accumulation value would have increased to
$133,351. If Justin died on December 31, 2010, his beneficiaries would be taxed on the interest earned
in the contract, making the net amount of death benefit proceeds they receive $124,013 (assuming a
28% tax bracket). The Death Benefit Rider can provide an extra income-tax-free death benefit that can
increase the total amount his beneficiary receives.
Assumptions: Male age 70, death assumed at age 80, monthly sum with 2.00% monthly cap,100% allocation to the S&P
500 index, and MasterDex 5 Plus Annuity was available from January 1, 2001 – December 31, 2010.
$100,000
Cost base
$100,000
$100,000
Accumulation value
$133,351
$129,471
$33,351
$29,471
28%
$8,252
$9,338
28%
$124,013
$121,219
$0
$8,252
$124,013
$129,471
$100,000
Taxable interest
Assumed tax rate
Tax payable
Net to beneficiary
Tax-free death benefit
Total to beneficiary
$50,000
After-tax death benefit
$100,000
Accumulation value
Premium
$150,000
After-tax death benefit
Values with
the rider
Accumulation value
Values without
the rider
Without the
With the
Death Benefit Rider Death Benefit Rider
This hypothetical example is provided for illustrative purposes only and does not represent an actual Allianz client. Past performance
is no guarantee of future results.
1
Values in these examples are based on the MasterDex 5 Plus Annuity, contract C51261, offered by Allianz Life Insurance Company of
North America (Allianz). Similar tax benefits can be achieved by attaching the Death Benefit Rider to any nonqualified tax-deferred
annuity sold by Allianz where the owner and annuitant are the same person. Assumes a $100,000 cost base.
Bonus annuities may include higher surrender charges, longer surrender charge periods, lower caps, higher spreads, or other
restrictions that are not included in similar annuities that don’t offer a premium bonus. Not all Allianz products include a bonus.
Standard & Poor’s 500® index (S&P 500®) is comprised of 500 stocks representing major U.S. industrial sectors. “Standard & Poor’s®,” “S&P®,” “S&P
500,” “Standard & Poor’s 500,” and “500” are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by Allianz Life Insurance
Company of North America. The product is not sponsored, endorsed, sold, or promoted by Standard & Poor’s and Standard & Poor’s makes no
representation regarding the advisability of purchasing the product.
This brochure must be accompanied by the annuity consumer brochure.
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Answering your questions
What is the Allianz Death Benefit Rider?
Do I need a medical exam to purchase
the Death Benefit Rider?
The Death Benefit Rider is a term life insurance rider
providing an income-tax-free death benefit. This
optional rider is available at an additional cost.
No. There is no medical underwriting or
evidence of insurability required.
Is it available on all Allianz annuities?
What if I add money into my Allianz annuity ?
The Death Benefit Rider can only be issued with
nonqualified deferred annuities where the contract
owner and annuitant are the same individual.
Your cost base will increase by the amount of additional
premium you pay after the policy date.
What determines the cost of the Death
Benefit Rider?
What is the rider’s primary benefit?
The rider provides an amount of money to help offset
the tax burden your beneficiaries will confront when
they receive the death benefit from your Allianz annuity
upon your death.
The cost of the rider will depend upon your age and the
death benefit payable (28% of the difference between
your accumulation value and your cost base).
How do I pay for it?
Who determines how much money the
rider will provide to my beneficiaries?
This depends on when you, the contract owner,
pass away.
If you die within your annuity’s first five contract years,
the rider will provide 28% of the gain in
your annuity’s accumulation value. If you die after
contract year five, the rider will pay 28% of the difference
between your annuity’s accumulation value and
your specified cost base.
What’s a cost base?
The Death Benefit Rider’s cost base is simply a dollar
figure you specify when you purchase your annuity,
which could be lower than or equal to your initial
premium. For the first five years, the cost base will be
the total premium you put into the annuity. After the
fifth contract year has passed, the rider will pay your
beneficiaries based on the cost base you determined.
If a partial surrender reduces the accumulation value
below the cost base, the cost base will decrease to
equal the accumulation value after the partial
surrender is processed.
The rider’s cost will be treated as a penalty-free partial
surrender. We calculate an annual charge which is equal
to the death benefit payable multiplied by the applicable
mortality rate, and then deduct 1/12 of the annual
charge each month from the accumulation value.
Are there tax consequences involved
with the Death Benefit Rider?
The amount of the rider charges are subject to ordinary
income tax and, if the contract owner is younger than
59½ years old, a 10% IRS penalty may apply.
Can I cancel the Death Benefit Rider?
As contract owner, you can terminate your Death
Benefit Rider any time you choose. Keep in mind,
though, that once the rider has been terminated
it cannot be reinstated. The rider will terminate
automatically if the contract owner transfers ownership
of the annuity contract or changes the annuitant.
Do I have to choose a cost base when
I purchase my annuity?
No. If you select this rider and don’t specify
a cost base, it will be set at an amount equal
to your initial premium.
Learn more about how you can help offset the
tax burden for your beneficiaries.
What if I change my mind later? Can
my annuity’s cost base be revised?
Talk to your financial professional about
the Allianz Death Benefit Rider.
You may increase your cost base at any time (this
lowers the death benefit). You may not decrease your
cost base at any time.
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True to our promises … so you can be true to yours.
®
A leading provider of annuities and life insurance, Allianz Life Insurance Company of North America (Allianz)
bases each decision on a philosophy of being true: True to our strength as an important part of a leading
global financial organization. True to our passion for making wise investment decisions. And true to the
people we serve, each and every day.
Through a line of innovative products and a network of trusted financial professionals, and with over
2.2 million contracts issued, Allianz helps millions of people as they seek to achieve their financial and
retirement goals. Founded in 1896, Allianz is proud to play a vital role in the success of our global parent,
Allianz SE, one of the world’s largest financial services companies.
While we pride ourselves on our financial strength, we’re made of much more than our balance sheet.
We believe in making a difference with our clients by being true to our commitments and keeping
our promises. People rely on Allianz today and count on us for tomorrow – when they need us most.
Guarantees are backed solely by the financial strength and claims-paying ability of Allianz Life Insurance Company of North America.
www.allianzlife.com
Products are issued by:
Allianz Life Insurance Company
of North America
PO Box 59060
Minneapolis, MN 55459-0060
800.950.1962
Product and feature availability may vary by state.
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PR1023-ANV
PR1023-ACV
(R-3/2011)