allianz life insurance company of north america … · vsn-103 allianz vision sm variable annuity...

VSN-103

Allianz VisionSM Variable Annuity

Allianz Life Insurance Company of North America

Investment Protector

Get protection with growth potential.

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This brochure is designed to provide you with an overview of the optional Investment Protector rider (05.10) available with Allianz Vision deferred variable annuity.

This material must be preceded or accompanied by

the client product overview and a current prospectus

for Allianz VisionSM Variable Annuity.

Call your financial professional or Allianz Life Financial

Services, LLC, member FINRA, at 800.624.0197 to obtain

a prospectus about Allianz variable investment

options. The prospectuses contain details on

investment objectives, risks, fees, and expenses, as

well as other information about the variable annuity

and variable investment options, which you should

carefully consider. Please read the prospectuses

thoroughly before sending money.

Build it.

Use it.

Pass it on.

Guarantees are backed by the financial strength and claims-paying ability of Allianz Life Insurance Company of North America (Allianz) and do not apply to the performance of the variable subaccounts, which will fluctuate with market conditions.

Products are issued by Allianz Life Insurance Company of North America and distributed by its affiliate, Allianz Life Financial Services, LLC, member FINRA.

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

Product and feature availability may vary by state and broker/dealer.

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Retirement has changed – and so has your role in preparing for it. The erosion of traditional sources of retirement income – pensions and Social Security – coupled with a longer life expectancy (and potentially more years in retirement) places a greater responsibility on you to provide the funding for the lifestyle you want.

And with this new responsibility comes new concerns: the effects of a volatile market on your accumulated assets and the potential impact of inflation on your future purchasing power.

Are you ready for life’s financial turning points?

Build it.

Use it.

Pass it on.

1

So as you move through life’s financial turning points – from building assets, to using them to fund a long-term retirement, to passing on a legacy to your loved ones – meeting your financial goals requires more planning and commitment than ever before.

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Investment Protector rider at a glanceThe Investment Protector rider is an accumulation benefit that provides a level of protection for the principal you invest – while locking in your highest annual contract value for a specific date 10 or more years in the future.

2


Build it.Accumulate enough

assets to retire the way you want.

Selecting a Target Value DateYou select an Initial Target Value Date at the time you add the Investment Protector to your contract. The earliest date you can select is 10 years after you add the rider. The latest date you can select is the rider anniversary that occurs before the older owner’s 91st

birthday. Additional Target Value Dates will occur every fifth rider anniversary after the initial Target Value Date.

Establishing your Target Value On the last business day before your Target Value Date, your contract value is guaranteed to be equal to or greater than your Target Value.

If the Investment Protector is selected at issue, your Target Value is the greater of:• 100% of your total purchase payments (adjusted

for withdrawals)• 100% of your Rider Anniversary Value (highest

locked-in annual contract value)

Annual rider charge

Purchase payments

Issue age

Current charge at issue is 0.90%.

The charge is a percentage of the Target Value (deducted quarterly) and is subject to change on each quarterly anniversary. It will never be less than the minimum of 0.35%, or greater than the maximum of 2.50%. The rider charge cannot increase or decrease more than 0.35% in any 12-month period.

Allowed during the first three years (including with Automatic Investment Plan)

Additional purchase payments after the first quarter are subject to an annual contribution limit.

May be selected up to the older owner’s attained age 80, with the latest initial Target Value Date to age 90.1

Rider Anniversary Value On each rider anniversary, your contract value is locked in if it is higher than the previously locked-in value. Your contract value may be higher between rider anniversary dates, but will not be locked in. Once the Rider Anniversary Value is established, it can never decrease, unless you take a withdrawal. Withdrawals include any applicable withdrawal charge and partial annuitizations.

Resetting the initial Target Value Date You can request a reset within 30 days following any rider anniversary prior to age 81, and before the initial Target Value Date, as long as the contract value is at least equal to the current Target Value. You can choose any initial Target Value Date as long as it’s a rider anniversary that’s at least 10 years from the reset anniversary, and no later than the rider anniversary before the older owner’s 91st birthday. Your allocation rules will also reset to align with your new initial Target Value Date.

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3

Use it.Retire with choices

and use your assets for a specific goal.

Money credited to your contractOn the last business day before each Target Value Date, if your contract value is lower than the Target Value that was locked in on a prior rider anniversary, we will add money to your contract to equal the locked-in value.

Choices on your Target Value DateOnce money has been added to your contract, you can keep the Investment Protector working, create a retirement income stream, or access the entire amount. Please keep in mind that your contract value will be subject to market fluctuations on and after the Target Value Date.

If you decide not to fully withdraw your money, additional Target Value Dates will occur on every fifth rider anniversary while the Investment Protector is in effect, and you will have the opportunity to lock in new Target Values. This will not change your most recent investment allocation rules, which are covered in the next section.

Taking withdrawals reduces the Target Value, the contract value, and the value of any death benefits. Withdrawals are taxed as ordinary income and, if taken prior to age 59 ½, a 10% federal tax penalty may apply. Withdrawals, for tax purposes, are deemed to come first from any gains.

1 In Massachusetts, the Investment Protector must be selected on the day you purchase your Allianz VisionSM contract.

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6


Years untilyour initial

Target Value Date

Maximum % of contract value you are allowed to

allocate to Groups A, and B/X

Maximum % of contract value you are allowed to

allocate to Group A

Minimum % of contract value you are required to

allocate to Group Y

17 or more 95% 30% 5%

16 90% 30% 10%

15 85% 25% 15%

14 80% 25% 20%

13 75% 20% 25%

12 70% 20% 30%

11 65% 15% 35%

10 60% 15% 40%

Initial allocation rules are based on your initial Target Value Date. The percentages of your contract value allowed or required in your three investment option groups are based on the number of years until your initial Target Value Date.

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More conservative allocations as your initial Target Value Date nears.With each passing year, a minimum of 5% moves into the most conservative group. For more detailed information, see the “Investment Option Allocation, Transfer, and Quarterly Rebalancing” section of the prospectus.

Example: Investment option allocations over time

This hypothetical illustration is provided to show how investment option allocations vary with respect to time. It does not show how allocations vary with respect to changes in contract value. The initial Target Value Date selected is 10 years. The initial investment option allocation selected is 15% in Group A, 45% in Groups B/X, and 40% in Group Y.

More conservative allocations if your contract value decreases.On each quarterly anniversary, your contract value is compared to the guaranteed Target Value. For each 6% by which the contract value is lower than the Target Value, an additional 5% moves into the most conservative group (Group Y). However, over any 12-month period, the amount required in Group Y will not increase by more than 15%, and is guaranteed never to be more than 90%. See the “Investment Option Allocation, Transfer, and Quarterly Rebalancing” section of the prospectus for detailed information.

Once your allocation rules become more conservative, they will never become more aggressive unless you choose to reset the initial Target Value Date.

Example: Investment option allocations with declining contract value

This hypothetical illustration, using the same initial investment option allocations above, reflects what would have happened at the first contract anniversary if the contract value had remained the same or had decreased as compared to the Target Value.

7

10 years toTarget Value Date

8 years toTarget Value Date

4 years toTarget Value Date Target Value Date

A – 15%B/X – 45%Y – 40%

A – 10%B/X – 40%Y – 50%

A – 5%B/X – 25%Y – 70%

A – 5%B/X – 5%Y – 90%

9 years – even 9 years – down 7% 9 years – down 13% 9 years – down 19%

A – 10%B/X – 45%Y – 45%

A – 10%B/X – 40%Y – 50%

A – 5%B/X – 40%Y – 55%

A – 5%B/X – 40%Y – 55%

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Allianz Life Insurance Company of North America, Allianz Life Financial Services, LLC, Allianz Investment Management, LLC, Allianz Global Investors, and PIMCO are affiliated companies.

Your investment options

8


When you select the optional Investment Protector, allocation rules apply to support the guarantees provided by this rider. Allocation of your contract value to aggressive investment options will be limited. This may limit the downside risk and the upside potential to your contract.

Group A investment options

Fund of Funds

■ AZL FusionSM Growth Fund

Equity

Small cap■ AZL® Allianz AGIC Opportunity Fund■ AZL® Columbia Small Cap Value Fund■ AZL® Franklin Small Cap Value Fund■ AZL® Small Cap Stock Index Fund■ AZL® Turner Quantitative Small Cap Growth Fund

Specialty

■ AZL® Morgan Stanley Global Real Estate Fund■ AZL® Schroder Emerging Markets Equity Fund■ Franklin Templeton VIP Founding Funds Allocation Fund■ PIMCO VIT Commodity RealReturn Strategy Portfolio

Group Y investment options

Fixed Income

High Yield Bond■ PIMCO VIT High Yield Portfolio

Intermediate Term Bond■ Franklin U.S. Government Fund■ PIMCO VIT Global Advantage Strategy Bond Portfolio■ PIMCO VIT Real Return Portfolio ■ PIMCO VIT Total Return Portfolio■ Templeton Global Bond Securities Fund

Cash Equivalent■ AZL® Money Market Fund

Specialty

■ PIMCO VIT Unconstrained Bond Portfolio

Group B/X investment options

Fund of Funds

■ AZL® Balanced Index Strategy Fund■ AZL FusionSM Balanced Fund■ AZL FusionSM Conservative Fund■ AZL FusionSM Moderate Fund■ AZL® Growth Index Strategy Fund ■ Fidelity VIP FundsManager 50% Portfolio■ Fidelity VIP FundsManager 60% Portfolio

Equity

Mid Cap■ AZL® Columbia Mid Cap Value Fund ■ AZL® Mid Cap Index Fund■ AZL® Morgan Stanley Mid Cap Growth Fund

Large Growth■ AZL® BlackRock Capital Appreciation Fund■ AZL® Dreyfus Equity Growth Fund

International Equity■ AZL® International Index Fund ■ AZL® Invesco International Equity Fund■ AZL® JPMorgan International Opportunities Fund ■ PIMCO EqS Pathfinder Portfolio■ Templeton Growth Securities Fund

Large Blend■ AZL® JPMorgan U.S. Equity Fund■ AZL® MFS Investors Trust Fund■ AZL® S&P 500 Index Fund

Large Value■ AZL® Davis NY Venture Fund■ AZL® Eaton Vance Large Cap Value Fund ■ AZL® Invesco Growth and Income Fund ■ Mutual Shares Securities Fund

Specialty

■ AZL® Franklin Templeton Founding Strategy Plus Fund ■ AZL® Gateway Fund■ AZL® Invesco Equity and Income Fund■ BlackRock Global Allocation V.I. Fund■ Franklin Income Securities Fund■ PIMCO VIT All Asset Portfolio■ PIMCO VIT Global Multi-Asset Portfolio

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Every quarter, Allianz will automatically rebalance your assets to maintain your investment allocations, based on your most recent choices for future purchase payments and any changes to the allowed maximum and required minimum group allocations. You can choose to have your contract value rebalanced quarterly even if you don’t select the Investment Protector. See the Allianz VisionSM Variable Annuity prospectus for more details.

Please note: We may add or remove investment options from your contract in the future. If we do, we will provide written notice regarding additions or deletions to the investment option group. See the prospectus for the most current list of investment options available in each group.

Build it, use it,

pass it on:


helps make it possible.

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L40529, L40530(R-5/2011)

Guarantees are backed solely by the financial strength and claims-paying ability of Allianz Life Insurance Company of North America and do not apply to the performance of the variable subaccounts, which will fluctuate with market conditions.

www.allianzlife.comAllianz VisionSM Variable Annuity Allianz Vision Variable Annuityis issued by: is distributed by:Allianz Life Insurance Company Allianz Life Financial Services, LLCof North America 5701 Golden Hills Drive5701 Golden Hills Drive Minneapolis, MN 55416-1297Minneapolis, MN 55416-1297 800.624.0197800.624.0197 Member FINRA

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 fi nancial 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.

True to our promises … so you can be true to yours.®

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allianz life insurance company of north america … · vsn-103 allianz vision sm variable annuity...

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