Allianz Life Insurance Company offers life insurance (both term and permanent) with a core focus on retirement solutions and income-producing policies.
Allianz has a conservative investment strategy involving diversification across asset classes. The aim is always long-term results in line with its focus on providing reliable retirement solutions.
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Insurer Ratings
It’s crucial to check that the company you’re planning to take out life insurance coverage with is in robust financial health.
With consistently high ratings over the past two decades, in 2017, Allianz was awarded A ratings from three of the leading independent rating agencies.
AM Best Company has 16 ratings, and the A+ (Superior) rating given to Allianz is the second highest of these. Standard and Poor’s rated Allianz as Very Strong (AA), their third-highest rating, while Moody’s A1 is the fifth highest of their 21 ratings.
These ratings are based on financial results along with management strategy. They don’t assess investment, nor do they indicate unconditional approval. What these ratings show, though, is that Allianz has potent characteristics of financial security.
Life Insurance Products Offered
Allianz doesn’t offer quite the same suite of life insurance coverage as the bulk of standard carriers.
The prime focus of these policies is for retirement and accumulation of cash value, so to this end, they specialize in universal life policies.
With this type of permanent life policy, you’ll get the protection of death benefits, and you’ll also have the chance to ensure the policy’s beneficiaries get a lump sum and tax-free income.
Allianz does offer term life coverage, but a subsidiary underwrites it.
Fixed Index Universal Life Insurance
With universal life policies, Allianz has two versions of fixed life universal coverage.
- Fixed Index Universal Life: Allianz Life Pro+
- Fixed Index Universal Life: Allianz Life Pro+ Survivor
Broadly similar, the primary difference between these policies is that Allianz Life Pro+ Survivor offers coverage for two lives.
With fixed IUL, you’ll get both death benefits and cash accumulation.
The Pro+ IUL is available at any age up to 80. Death benefits start at $100,000 and rise to a maximum of $65 million.
Death benefits can be structured as level throughout the policy, increasing (the death benefit equates to a specific amount with the accumulation value added) or a simple return of premium option where the value of premiums paid is returned.
There are several factors to consider carefully before committing to this fixed IUL coverage.
You’ll need to make payments for the first ten years with no lapses at all. You’ll also need to think about the fees. Each premium payment has a 5% charge deducted, while there’s also a standing monthly charge of $7.50. Beyond this, monthly costs depend on your gender, age, and health class.
Risk classes include juveniles to the age of 17, tobacco smokers from 18 to 75, and non-smokers from 18 to 80.
In the event of developing a chronic or terminal illness, early redemption is an option.
There’s a range of other riders from loan protection to enhanced liquidity.
There’s some choice when it comes to investment indexes. These include Barclays US Dynamic Balance II, the S&P 500, the Russell 2000, and other options of blended indices. You should check carefully for crediting and caps as well as participation rates.
If the insured makes it to the age of 120, no further premiums will be accepted by Allianz, and the death benefit is paid out in line with the accumulation value.
The LifePro+ Survivor allows you to cost-effectively insure yourself and your spouse with a payout occurring when the second policyholder dies. If one of the insured develops a terminal or chronic illness, a part of the benefits can be accessed early.
This IUL policy is available from the age of 30 to 80, with the same death benefits as the Pro+ ($100,000 to $65 million).
There are the same three options for death benefit structure (level, increasing, return of premium).
Term Life
The term life policy offered by Allianz comes underwritten by a subsidiary of Legal & General, Banner.
Terms span from 10 years to 30 years targeted at ages from 20 to 65.
Death benefits range from $100,000 to $10 million with separate categories for smokers and non-smokers.
During years two to five of the policy, you’ll have the chance to convert to permanent coverage, far less leeway than you’ll get with many insurance carriers. Many other term policies are much more generous in this regard, but Allianz aggressively promotes their retirement products, so this lack of leeway is calculated.
There’s an Accelerated Death Benefit rider available with this term life coverage.
Other Products Offered
Allianz offers products beyond life insurance.
As you would expect, you can choose from a wide array of retirement planning tools. There’s a wealth of educational material along with financial calculators.
Allianz caters for ongoing income by providing retirement annuities.
Fixed index annuities give returns based on the performance of a market index. These annuities allow the value of the account to grow up to a cap or a predetermined percentage. Poor performance does not result in a loss. Instead, you will have a 0% gain during that sub-par period. Growth is tax-deferred until the funds are withdrawn. There’s some flexibility over how the payout is made and for how long it’s made.
Variable annuities are riskier, with funds invested into sub-accounts with equity options like mutual funds.
Index variable annuities let policyholders benefit from potential gains in the market while remaining to some extent insulated from risk.
Company History
Allianz first started in 1896 as North American Casualty and was founded by Henry Little in Minneapolis. The company merged with North American Life Association, and the name was changed to NALAC (North American Life and Casualty).
Acquired by Allianz AG of Germany in 1979, the company became part of the Allianz Group.
The group was formed in 1890 and now operates as one of the world’s major financial services organizations offering life insurance along with asset management, health insurance, and a variety of banking services in more than 70 countries globally.
Rebranded as Allianz Life in 1993, today, Allianz Life, along with Allianz Life of New York, is the only group subsidiaries to offer life insurance in the USA.
Today, Allianz has more than 85 million customers, is the 31st largest company in the world, and has its US headquarters in Minneapolis, MN.
Allianz Life has assets totaling over $137 billion, and the focus on retirement planning and accumulation continues today. The company is far better known for this than for life insurance despite the company name.
Alternatives
Lincoln Heritage – One of the top insurers for no exam policies, Lincoln Heritage makes quick coverage available without a long underwriting process.
Colonial Penn – One of the few carriers to offer a guaranteed issue policy.
Accordia Life – Accordia offers a wide variety of term life insurance products, including annual renewable policies.
Pros
- Transparent – Policy details are clear and easy to understand
- Universal policies – Allianz has a focus on this type of policy while other companies avoid them
- Stability – A long track record and strong financial ratings make Allianz a reliabler company
Cons
- No Term policies – You can purchase your term life insurance through Allianz, but they aren’t really selling you the policy. Cheaper rates can be gotten elsewhere.
- Cost – The focus on universal policies makes Allianz a poor choice for the cost conscious.
Allianz Life Review Final Thoughts
Allianz targets customers who are looking for both life insurance coverage and retirement options.
While they are a well respected and financially stable company, their focus on retirement options means they are not the best company for everyone looking for a life insurance policy.
If Allianz offers the insurance product you need and is competitive on the price, then you can be sure that purchasing a policy through them is not a mistake.
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