a single-premium fixed annuity offering multiple-year … · the next chapter for your retirement...

The next chapter for your retirement –steady, predictable interest.Allianz Life Insurance Company of North America

Allianz Dominator PlusSM Annuity A single-premium fixed annuity offering multiple-year rate guarantees

CB52121

From our global parent ...

As a leading provider of annuities, life insurance, and long term care insurance, Allianz Life Insurance Company of North America (Allianz) has over 1.2 millioncustomers and has been rated A (Excellent) by A.M. Best.3

We’re proud to be associated with the other Allianz SE companies in North America,including Fireman's Fund® and Allianz Global Investors. Fireman's Fund has beenselling insurance for more than 140 years, and Allianz Global Investors is a network of companies that includes: PIMCO, Nicholas-Applegate Capital Management, and Oppenheimer Capital.

Guarantees are backed solely by the financial strength and claims-paying ability of Allianz Life Insurance Company of North America, the issuing company.

1 “Forbes Global 2000,” Forbes, April 21, 2008. Forbes’ ranking is based on a composite of sales, profits, assets, and market value.

2 “The P&I/Watson Wyatt 500: World’s Largest Managers,” Pensions & Investments, October 1, 2007(www.pionline.com).

3 The A.M. Best rating of A (Excellent) is the 3rd highest out of 15 possible ratings, and is effective as ofOctober 4, 2007. These independent agency ratings are based on an analysis of financial results andevaluation of management objectives and strategies. The ratings do not indicate approval by the analysts and are subject to change.

Other information is accurate as of 5/5/2008.

1890 1895 1932 1972 1979 2000 Today

Founded in Germany

Listed onBerlin StockExchange

EstablishesAllianz Centerfor Technology

Enters NorthAmerican market

Acquires 80-year-old business tobecome AllianzLife InsuranceCompany of NorthAmerica (formerlyNorth AmericanLife & CasualtyCompany)

Allianz SE addedto the New YorkStock Exchange

14th largestcorporation,5th largestmoney manager

We are part of Allianz SE, one of the world’s largest integrated financialservices organizations. Founded in 1890 in Germany, Allianz SE has more than 80 million customers in about 70 countries, and is the world’s:

• 14th largest company 1

• 2nd largest company in the insurance industry 1

• 5th largest money manager 2

... to our American family.

Dominator Plus Annuity from Allianz Life Insurance Company of North America

A fixed deferred annuity fromAllianz can be a valuable asset.

Let’s take a closer look at the Allianz Dominator Plus Annuity.

A prudent plan shouldn’t rely solely onSocial Security to pay for your retirementyears. One way to accumulate additionalassets for retirement income is an annuity.

The money in an annuity has thepotential to create an additional source ofretirement income that can supplementSocial Security. Assets placed in anannuity can even provide a variety ofincome streams. This is one reason manypeople use annuities to help them achievetheir long-term financial goals, includingretirement income.

Here’s how a deferred annuity works.

A deferred annuity is a contract betweena contract owner and a life insurancecompany. As contract owner, you paypremium to the insurance company.In exchange for your premium, theinsurance company promises to makeregular income payments to you over aperiod of time, beginning at some pointin the future. This is called annuitization.You may also receive additional benefits,which we’ll discuss later.

You should not buy an annuity for short-term purposes. You generally have to keepyour premium in a deferred annuity suchas the Allianz Dominator PlusSM Annuityfor a specified period of time before youbegin receiving income payments, toavoid the assessment of penaltiessuch as surrender charges.

Annuities offer important benefits.

Potential interest during the annuity’saccumulation phase: During this initialphase, an annuity may be an ideal vehicleto help you accumulate money for your retirement.

Income for life and other options duringthe retirement income phase: Whenyou are ready to start taking income,the annuity offers you a range of payoutoptions. Some options may offer animmediate, single payment. Others mayinclude income payments scheduled overa specific period of time, including yourentire lifetime.

Tax deferral that can help your moneygrow: The money in your annuity cangrow tax-deferred. This means you don’thave to pay taxes until you begin towithdraw money from the annuity. Thepower of tax deferral, compounded overthe life of your annuity’s accumulationphase, may have a positive impact on thevalue your annuity generates for yourretirement. Any distribution will be subjectto ordinary income tax and, if taken priorto age 591⁄2, a 10% federal tax penalty.

Death benefit protection for yourbeneficiaries: As we noted earlier,annuities are insurance products. So it’s only natural that they can give youreassurance, knowing your beneficiariesare protected if you pass away before youstart receiving annuity income payments.

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With the Allianz Dominator PlusSM Annuity, you receive guaranteed interest based on two choices you make:1. You determine how much money you

wish to place in the annuity. Based onthree premium bands, the higher your initial premium, the higher your initial interest rate may be.

2. You select how long you want your money to accumulate. Choose a shorter,guaranteed interest rate (GIR) period ifyou feel rates may be heading up. Or lockin a longer GIR period and your annuitycan deliver more predictable interest.

Allianz Dominator Plus Annuitygives you choices now – and aguaranteed rate that lasts for years!

Additionally, you can choose anotherguaranteed interest rate period when theoriginal period is completed. Select anyavailable guaranteed period, includingjust one additional year, if you wish.

Allianz Dominator Plus includes a variety offeatures and options. Please review them todetermine whether this Allianz fixed annuitycan help you reach your financial goals.

Guarantees are backed by the financialstrength and claims-paying ability of AllianzLife Insurance Company of North America.

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Here are some of the benefits the Allianz Dominator Plus Annuity offers.

Interest rates linked to yourinitial premium

If you are between ages 0 and 85, you canpurchase your Allianz Dominator PlusSM

Annuity with a single premium paymentof at least $2,000 qualified/$5,000nonqualified. Premium amounts of$25,000 to $99,999 and $100,000 or morequalify for higher initial interest rates.Maximum premium is $10 million, butpremium of $1 million or more mayrequire Home Office approval.

A choice of guaranteed-rate periods

You can choose any initial guaranteedinterest rate period available. After theinitial guarantee period, the currentinterest rate may fluctuate, but weguarantee it will never fall below 1.5%while the contract is in deferral – that is,before you start receiving annuitypayments from your contract.

30 days to receive your annuity’s full value

Following completion of your initialguaranteed interest rate period, you havea 30-day “window” during which you canterminate your annuity and take yourcontract’s full accumulation value.Surrender charges and the market valueadjustment (MVA), both of which aredefined later in this brochure, will notbe applied during this 30-day window.

Optional or automatic continuation of your contract

After the first GIR period, you can leaveyour money in your Allianz DominatorPlus annuity to allow it to continue toaccumulate interest for one or morecontract years.

If you do not contact us within 30 daysafter the end of any GIR period, the contractwill renew annually. We will establish andlock in the guaranteed interest rate thatwill be in effect each year. This interestrate may be higher or lower than yourinitial guaranteed interest rate.

Note: the surrender charge will still applyif you renew for less than four years.

Purchasing an annuity within a retirementplan that provides tax deferral undersections of the Internal Revenue Coderesults in no additional tax benefit.All annuity features, risks, and costsshould be considered prior to purchasingan annuity within a tax-qualifiedretirement plan.

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Take free withdrawals.

Beginning immediately, you can take upto 10% of your contract’s paid premiumeach contract year in one or more freewithdrawals. No surrender charge is applied.

If, within the same contract year of a freewithdrawal, the contract is surrendered,we will retroactively apply a surrendercharge to any withdrawals taken thatcontract year. This could result in aloss of fixed interest, and a partial lossof principal.

Take a contract loan.

You can take a contract loan for up to 50%of your cash surrender value (up to amaximum of $50,000). The loan interestrate is 7.4% annually in advance. Loans arenot available with IRA, SEP, or some otherqualified plans. Unpaid loans will betreated as partial surrenders, subject tosurrender charges and taxes, and willdecrease the value of the contract and its

death benefit. Loans from nonqualifiedcontracts may be subject to ordinaryincome tax in the year that they are taken.

Take required minimumdistributions.

Required minimum distributions from atax-qualified plan (IRA, SEP, etc.) willqualify as free withdrawals if taken annuallyin December or monthly throughout theyear. Contract values and the amountavailable for free withdrawal will bereduced by the amount of the distribution(s).

Any amounts you receive from yourcontract will be subject to ordinary incometaxes and, if taken prior to age 591⁄2, a 10%federal tax penalty.

Allianz Dominator PlusSM Annuity givesyou several ways to access your money.


Want steady, predictable income from your annuity? Allianz Dominator PlusSM gives you options.

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If you keep your contractin deferral for at least one year,your accumulation value is availableto you in the following annuitypayment options:

• Installments for a guaranteed period –You can choose to receive annuitypayments in equal installments fora period from 10 to 30 years. Eachinstallment would consist of partprincipal and part interest.

• Installments for life – You have the optionto receive annuity payments in equalinstallments for the rest of your life.Payments end upon your death.

• Installments for life with a guaranteedperiod – You can choose to receiveannuity payments in equal installmentsfor the rest of your life. Upon your death,annuity payments will be paid to yourbeneficiary for the balance of aguaranteed period of five, 10, 15, 20, 25,or 30 years.

• Installments of a selected amount –You may receive annuity payments inequal installments of an amount thatyou choose, as long as the payments lastfor at least 10 years and no more than 30years. Payments continue until youraccumulation value is gone.

• Joint and survivor – You can have equalinstallments paid until your death, thencontinue to be paid to your survivor. In this case, you can select 100%, 2⁄3, or 1⁄2 of your payment amount to be paidto your survivor until his/her death.

If you keep your contract indeferral for at least five years,your accumulation value isavailable to you in the followingannuity payment option:

• Interest only – You have the option toreceive interest-only annuity paymentsfor five years. Interest will be paid asearned based on the amount of youraccumulation value. After five yearsof interest-only payments, you cantake your full accumulation valueas a lump-sum payment.

The payout rate used to determine theincome stream depends on the age ofyour contract, the age of the annuitant,and the annuity payment option selected.The payout rate is guaranteed to be atleast 1%.

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Access your money sooner to help payfor nursing home care.1

If you, as the contract owner, should entera nursing home, long term care facility,

or hospital for at least 30 days out of a35-consecutive-day period after the firstcontract year, you may take an accelerateddistribution of your contract’s accumulationvalue through annuity payments over aperiod as short as five years.

Access your money to help pay for qualified medical costs.

The Flexible Withdrawal Rider1 is an optionalrider that gives you additional access to yourmoney. This rider allows you a one-timelump-sum payment in any amount up tothe contract’s accumulation value, shouldyou become confined, after the first contractyear, to an eligible nursing home, assistedliving facility or hospital for 30 of 35consecutive days. This rider must be chosenat the time of application and there is anadditional cost for it.

Dominator Plus offersyou a death benefit.

Allianz Dominator PlusSM Annuity provides a death benefit payable to your namedbeneficiary. Regardless of whether yourbeneficiary(ies) select to receive the deathbenefit as a lump-sum payment, or asannuity income payments, they will receivethe greater of the contract’s accumulationvalue or guaranteed minimum value. The death benefit, when paid to a properlydesignated beneficiary (other than theestate), will pass without the costs anddelays of probate. The death benefit ispayable only if you have not yet annuitizedyour contract.

Help your beneficiaries pay their taxes.

The optional Death Benefit Rider1 enablesyour beneficiary to receive, tax-free, anadditional death benefit up to 28% of thetaxable gain in your annuity. It allows youto pass on more of your annuity’s value toyour beneficiaries and reduces a possibletax obstacle for them. Although the rate atwhich your beneficiaries will pay incometax at some future date is unknown, theDeath Benefit Rider can offset a substantialportion – or all – of the federal incometaxes due on your annuity’s value at thetime of your death (state or local taxes mayapply). Please note: A Death Benefit Ridercharge will apply; benefit only applies tononqualified contracts where the ownerand annuitant are the same.

Our Flexible Annuity Option Rider lets you access your contract values sooner.

The Flexible Annuity Option Rider1 allowsyou, as the owner, to begin receivingpayments based on your accumulationvalue anytime after the first contractyear for less than 10 years, dependingon your age. There is no additional costfor this rider.

Customize your annuity to meet your needs.

1 Not available in all states.

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Surrender charges

You may request full surrender of yourannuity at any time before you beginreceiving annuity payments from thecontract. The surrender request must be written. If you fully surrender yourcontract during the first 10 contractyears, you will receive the cash surrender value of your contract instead of theaccumulation value, with one exception:during the 30-day window thatimmediately follows your initial GIRperiod, you will receive the fullaccumulation value. The cash surrendervalue equals the greater of the guaranteedminimum value, or the accumulationvalue less applicable surrender chargesplus or minus the MVA. Surrender chargesstart at 9% on the date of contract issue,

and decrease by .075% each month over thefirst 10 contract years. Surrender chargesdo not start over each time a newguaranteed interest rate period begins.

Market value adjustment

The market value adjustment (MVA) onlycomes into play if you decide to take all or part of your money out of your annuityoutside of the 30-day window thatimmediately follows each GIR period. The market value adjustment is notapplicable during any one-year GIR period.Based on interest rate fluctuations, yourannuity’s value may vary if you take moneyout during a GIR period. If interest rates goup during the GIR period, your annuity’svalue may be less. If interest rates go down,your annuity’s value may be adjustedupward. (See the Statement ofUnderstanding for an example.)

Minimum guaranteed interest rate

The current interest rate is locked in for the initial GIR period you select. The newdeclared rate for any subsequent GIRperiod may be higher or lower than theguaranteed interest rate for the initial GIR period, but will never be less than 1.5% in deferral and 1% in annuity payout.

No initial sales charges

There are no up front fees or sales charges,ever. 100% of the premium is credited toyour accumulation value. (Surrendercharges and a market value adjustmentmay apply to full or partial surrenders,however, and may cause the amount you receive to be less or more than thepremium you put into the annuity).

Important contract definitions, features, and options

Surrender charge percentages

Start of Surrender contract year charge %

1 9.00%

2 8.10%

3 7.20%

4 6.30%

5 5.40%

6 4.50%

7 3.60%

8 2.70%

9 1.80%

10 0.90%

11 0.00%

Agent name ______________________________________________________________________________________

License number ___________________________________________________________________________________

Email ____________________________________________________________________________________________

Not FDIC insured • May lose value • No bank or credit union guaranteeNot a deposit • Not insured by any federal government agency or NCUA/NCUSIF

Product availability and features may vary by state.

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www.allianzlife.com

Issued by:

Allianz Life Insurance Company of North AmericaPO Box 59060Minneapolis, MN 55416-1297800.950.1962

C52121(12/2008)

Assured interest with a locked-in interest rate.

Talk to your financial professionalabout Allianz Dominator PlusSM Annuity.

a single-premium fixed annuity offering multiple-year … · the next chapter for your retirement...

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