BonusDex Elite. Annuity. A flexible premium, equity indexed annuity CB50350-CT. page 1 of 8

® BonusDex Elite Annuity A flexible premium, equity indexed annuity CB50350-CT page 1 of 8 The BonusDex Elite Annuity A flexible premium, equity i...
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BonusDex Elite Annuity A flexible premium, equity indexed annuity

CB50350-CT page 1 of 8

The BonusDex Elite Annuity A flexible premium, equity indexed annuity from Allianz Life When planning for retirement, you look for things like security, stability, and financial independence. After all, no one wants to risk their future on a plan that doesn’t cover all the bases. What if you could: • See your money increase immediately? • Take advantage of monthly average market gains of the S&P 500 and the Nasdaq-100® to help you build an even bigger retirement income? • Avoid any risky moves that could cost you your money? Now you can enjoy flexibility and peace of mind in one product. ® The BonusDex Elite Annuity from Allianz Life® gives you the added value of a premium bonus, the freedom to choose how you build your nest egg, and guaranteed protection of your principal.

With BonusDex Elite, you can make the most of your retirement and take control of your hard-earned money.

“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 or promoted by Standard & Poor's, and Standard & Poor's makes no representation regarding the advisability of purchasing the product. “Nasdaq®,” “Nasdaq-100®” and “Nasdaq-100 Index®” are trademarks of The Nasdaq Stock Market, Inc. and have been licensed for use by Allianz Life Insurance Company of North America. The product has not been passed on by the Corporations as to its legality or suitability. The product is not sponsored, endorsed, sold or promoted by The Nasdaq Stock Market, Inc. THE NASDAQ STOCK MARKET, INC. MAKES NO REPRESENTATION REGARDING THE ADVISABILITY OF PURCHASING THE PRODUCT. Index Benefit increases, up to an annual maximum, are credited to your annuitization value at the end of each policy year. If the index performance is not sufficient to increase the annuitization value, no adjustment will be made. After the first year, current interest may fluctuate but will never fall below 3% for the Interest Earning Value while in deferral. Past performance does not guarantee future results. To receive the annuitization value, the policy must be held in deferral for a minimum of five years and annuity payments must be taken over a minimum of 10 years. If the policy is annuitized prior to the sixth year, if annuity payments are taken for less than 10 years, or if the policy is surrendered for cash; then the bonus will be forfeited, the Index Benefit will be lost, a 10% charge will be applied and a reduced rate of interest will be credited from the inception of the policy. The minimum guaranteed interest rate in payout is 1%. The payout rate depends on age of policy and payout option selected. BonusDex Elite Annuity issued by Allianz Life Insurance Company of North America (P50350-CT).

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BonusDex Elite Annuity

Enjoy peace of mind with these exceptional benefits Immediate premium bonus up to 10% plus guaranteed participation in stock market index gains The BonusDex Elite Annuity is a flexible $50,000 premium, tax-deferred annuity offering an immediate premium bonus on all premium paid during the first five policy years. Your initial premium determines the bonus on additional premium payments. An initial premium equal to or greater than $50,000 will receive a 10% bonus. An initial premium of less than $50,000 will receive a 5% bonus. In addition, the BonusDex Elite offers the potential to share in monthly average gains of the S&P 500 and the Nasdaq-100® guaranteed for the life of the policy, up to an annual maximum. An initial payment of $5,000 for nonqualified premium or $2,000 for qualified premium is required for issue. Premium of $500,000 or more may require prior Home Office approval.

Nursing Home Benefit If you, as the policyowner, should enter a nursing home, long-term care facility or hospital for at least 30 days out of a 35 consecutive day period after the first policy year, you may take an accelerated distribution of your policy’s annuitization value over a period as short as five to nine years. Payments under the Nursing Home Benefit will be based on your policy’s annuitization value.

Choices for building your retirement You can allocate your premium in 25% increments among three different choices: an interest earning account (called your Interest Earning Value), the S&P 500 Index, and the Nasdaq-100 Index. Additional premium payments made during a policy year are credited to the Interest Earning Value. On the next policy anniversary, you may reallocate your premium among your three choices – the S&P 500 Index, Nasdaq-100 Index, or fixed interest – in increments of 25%. If you submit changes to your allocations in writing within 21 days of a policy anniversary, they will be effective during that policy year. If changes are submitted more than 21 days after your policy anniversary, those changes will not take effect until your next policy anniversary.

Guaranteed tax-favored interest The BonusDex Elite Annuity helps you build a nest egg for retirement. Your policy values grow tax-deferred and no income taxes are payable until you receive a payment from your policy. If you are under the age of 591⁄2 when a withdrawal is made, an additional 10% penalty-tax may be imposed.

Your initial principal is never subject to market risk A downturn in the indexes cannot have a negative impact on your BonusDex Elite policy’s principal and bonus. We guarantee it.

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BonusDex Elite Annuity

Accessing your money Penalty-free withdrawals

Minimum distributions

You may take one penalty-free withdrawal of up to 5% of premiums every 12 months as long as:

A required minimum distribution from a tax-qualified plan (IRA, SEP, etc.) is available. The distribution is offered as a penalty-free withdrawal if taken annually in December or monthly throughout the year. Policy values will be reduced by the distribution amount withdrawn.

• It occurs 12 months after the last premium is received. • No more than one partial surrender is taken within a 12-month period. • Cumulative withdrawals do not exceed 25% of the sum of the premium received. If, within 12 months of a penalty-free withdrawal, the policy is annuitized, another withdrawal is taken, or additional premium is added, the annuitization and cash value will be reduced by 10% on the penalty-free withdrawal.

Systematic Withdrawal of Credits option Systematic Withdrawal of Credits allows you to keep your policy in deferral while receiving Interest Earning Value credits and Index Benefit credits. Your interest earning credits can be monthly, quarterly, semiannually, or annually. You can receive Index Benefit credits as they are applied. Payments will be based on credits applied to your policy after the request is received. To qualify for this option, your policy must be held at least five policy years and still be in deferral. You also must meet the $25 minimum payment.

Retirement income you cannot outlive Anytime after five policy years, you can receive a distribution of annuity values over a period as short as 10 years, or select an income stream guaranteed to continue as long as the annuitant is alive.

Policy loans A policy loan may be taken for up to 50% of the cash value (maximum of $50,000). The loan interest rate is 7.4% in advance. Loans are not available with IRA, SEP or some other qualified plans. Unpaid loans will be treated as a partial surrender.

Payment options A full range of settlement options is available including: period certain (over a period as short as 10 years), life with period certain, life only, and joint and survivor.

Interest only After five years, you may select an interestonly payout for 10 consecutive years. No Annual Index Benefit is credited during the interest-only period. No withdrawals may be taken during the interest-only period. At the end of the interest-only period, the annuitization value may be taken in a lump sum.

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BonusDex Elite Annuity

Accessing your money continued Receive index growth while you take annuity income payments

Distribution for less than 10 years or lump sum

The Systematic Withdrawal Benefit allows you to receive a percentage of your annuity as income while your remaining balance continues to participate in the index(es). After your fifth policy anniversary, you can choose to receive withdrawals from your policy’s annuitization value. You have the flexibility to stop receiving Systematic Withdrawal Benefit payments. Once suspended, your payments can be started again after two years have passed. If you restart your Systematic Withdrawal Benefit payments, the percentage of policy values available will be based on the policy year in effect when your payments are restarted. POLICY YEAR



Up to 5% per year


Up to 6.67% per year


Up to 10% per year

The S&P 500 Index The Nasdaq-100 Index® The S&P 500 Composite Stock Price Index (S&P 500 Index) is a market value-weighted index of 500 common stocks traded on every major U.S. stock exchange. The 500 companies tend to be leading companies from leading industries. Often used as a benchmark for economic growth, the S&P 500 is compiled daily by Standard & Poor’s, a division of The McGraw-Hill Companies.

While you are receiving Systematic Withdrawal Benefit payments, any interest or index credits will also be paid to you.

Options and definitions Annuitization value and how it works The annuitization value equals the sum of initial and additional premium(s), an immediate bonus on all premium during the first five policy years, all Index Benefit credits, and all interest earning credits, minus each partial surrender (multiplied by the proportional reduction factor at the time of surrender), minus any other Systematic Withdrawal of Credits payments.


You may take a distribution for a period of less than 10 years at any time, but the distribution will be based on the policy’s cash value. The cash value equals 90% of all premiums paid, minus each partial surrender, minus any Systematic Withdrawal of Credits (SWC) divided by the proportional reduction factor at the time of the SWC, accumulated at a guaranteed rate of no less than 1.5%. Under no circumstances will the cash value be less than the guaranteed minimum value.

The Nasdaq-100 Index includes the 100 largest nonfinancial market capitalization companies on The Nasdaq Stock Market across all nonfinancial market sectors. The Nasdaq-100 Index was rebalanced in 1998 to a modified market capitalization weighted index. Please note: Policy values are never exposed to market risk and are never reduced because of a market correction. Index Benefits, up to an annual maximum, are credited to your annuitization value at the end of each policy year. Benefit increases are based on the S&P 500 Index and/or Nasdaq-100 Index monthly average performance over each policy year, and according to your allocation percentages.

Until you have accessed all of your money and your policy value equals $0.

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BonusDex Elite Annuity

Options and definitions continued Principal not exposed to market fluctuation You only share in gains when assigning premium to either market index. Your premium will not be reduced because of a market fluctuation.

No initial sales charges There are never any asset fees or sales charges. 100% of the premium is credited to your annuitization value.

Participation rate The monthly averaging participation rate is guaranteed at 100% for all policy years.

Cap The BonusDex Elite Annuity features an annual maximum limit of the Index Benefit credited to the annuitization value. The cap for both the S&P 500 and Nasdaq-100® Indexes is guaranteed to remain unchanged for one policy year. Beginning in the second policy year, the cap is declared annually and is guaranteed for one policy year. The cap will never be less than 5%.

Index increases applied to policy value Index growth is measured monthly during each policy year. 100% of its average growth – up to an annual maximum (the cap) – is credited to the annuitization value at the end of each term. The S&P 500 and Nasdaq-100 Index values do not include dividends.

Annual reset of index values Market index values are reset each policy year, locking in only the previous year’s monthly average gains and never any losses. Monthly averaging calculations for each new term will be based on the newly reset value.

If death occurs The BonusDex Elite Annuity provides a death benefit payable to the named beneficiary. The death benefit will be equal to the annuitization value if taken over a minimum of five years. If taken either as a lump sum or over a period of less than five years, the death benefit will equal the greater of the cash value, or the sum of premiums paid less any withdrawals. The death benefits paid to a properly designated beneficiary (except for the estate) will pass without the costs and delays of probate.

The Death Benefit Rider The optional Death Benefit Rider enables the beneficiary to receive a tax-free death benefit equal to 28% of your annuity contract’s gain. It allows you to pass on more of your annuity’s full value to your beneficiaries. Although the rate at which your beneficiaries will pay income tax at some future date is unknown, the Death Benefit Rider may offset a substantial portion – or all – of the income taxes due at the time of your death. The Death Benefit Rider can only be issued with nonqualified annuities where the policyowner and annuitant are the same individual. Please note: A Death Benefit Rider charge will apply.

Thank you for choosing the BonusDex Elite Annuity.

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Hypothetical examples Hypothetical example of participation in growth of the S&P 500 or Nasdaq-100 Index® using the monthly averaging method. Assumes single $100,000 premium payment plus a 10% bonus, 100% participation rate, and 8% annual cap.

10-year yields $270,000 $240,000 $210,000 $180,000 $150,000 $120,000 $90,000 $60,000 $30,000 $0

S&P 500 hypothetical example

$174,556 $104,449

100% of premium allocated to the S&P 500.

5.73% 0.44% Annuitization value

Cash value

Actual S&P 500 Index performance during 1/1/1994 - 12/31/2003.

10-year yields $270,000 $240,000 $210,000 $180,000 $150,000 $120,000 $90,000 $60,000 $30,000 $0

Nasdaq-100 hypothetical example

$174,556 $104,449

100% of premium allocated to the Nasdaq-100.

5.73% 0.44% Annuitization value

Cash value

Actual Nasdaq-100 Index performance during 1/1/1994 - 12/31/2003.


Assumes BonusDex Elite Annuity has been available since 1994. Yields shown reflect annualized returns over 10 years only and assume all premium is held in policy for the full 10 years. Past performance does not guarantee future results.

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Our top priority is the safety of your money All policies are issued by Allianz Life Insurance Company of North America, a member of the Allianz Group. With over 700 subsidiaries in more than 70 countries, the Allianz Group is one of the world’s leading providers of integrated financial services. Our goal is to provide policyholders with wealth management products that can help meet today’s needs and financial objectives, with a product philosophy of offering fair and equitable values on each policy we issue. Foremost in our minds is the safety of the money you entrust to our care. Allianz Life® has consistently been assigned financial strength ratings by Standard & Poor’s and A.M. Best that are among the highest available. It is one of a select group of major insurance companies to receive such high ratings. These independent agency ratings are based on an analysis of financial results and evaluation of management objectives and strategies. The ratings do not indicate approval by the analysts and are subject to change. Innovative products, exceptional customer service, and sound financial strength make Allianz Life the place to turn to help meet your retirement objectives. Policies are issued by Allianz Life Insurance Company of North America (form number P50350-CT). Agent name:____________________________________________________________________ License number:__________________________________________________________

Allianz Life Insurance Company of North America PO Box 59060 Minneapolis, MN 55459-0060 800/950-1962

Product availability and benefits may vary by state page 8 of 8


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