Allianz 360?

[taz]

I want the good, bad, and ugly. I am not a huge fan of Allianz, but I know they have some good products. This is one of the top FIA's on the market from what I hear. I want someone to disagree and tell me why.

 

[Tahoe Ray]

I want the good, bad, and ugly. I am not a huge fan of Allianz, but I know they have some good products. This is one of the top FIA's on the market from what I hear. I want someone to disagree and tell me why.

It really depends on what your client is trying to do. For income, it is very competitive.

The good: Annual banding, 50bp cut on joint, increase in income for delaying, optional increasing income (income goes up with income credits). It has an uncapped index with 100% paticipation.

Downsides include a large spread (3.15%...max of 12), 10 year surrender, 1.05 rider fee, and it requires an explanation of their speciaized index.

It can be great for the right clients, but there may be better options for others (death bene needs, certain ages for guaranteed income, pure accumulation etc.)

It is also one of the top FIAs due to the carrier's massive distribution model.

 

[scagnt83]

Its an income rider product. For income, especially joint income, it is hard to beat. The catch is that the Income Base is based off of Account Value growth, there is no set increase each year. But just the guaranteed values often compete with other product just because the payout rate is higher than most, so even moderate growth will outperform most products out there in many cases.

Allianz has a good renewal history so the possible large spread does not bother me that much.

The Dynamic Balance Index is a S&P 500/Bond mix that reallocates based on the vix. It is a fairly steady performer historically.

I like it for creating an income stream. But if pure accumulation is your goal there are obviously better choices.

 

[Josh Landis]

It really depends on what your client is trying to do. For income, it is very competitive.

The good: Annual banding, 50bp cut on joint, increase in income for delaying, optional increasing income (income goes up with income credits). It has an uncapped index with 100% paticipation.

Downsides include a large spread (3.15%...max of 12), 10 year surrender, 1.05 rider fee, and it requires an explanation of their speciaized index.

It can be great for the right clients, but there may be better options for others (death bene needs, certain ages for guaranteed income, pure accumulation etc.)

It is also one of the top FIAs due to the carrier's massive distribution model.

I agree with Tahoe Ray's assessment. However, I would add the following.

The bad is the spread is 3.15%, however you get a 25% bonus to any index gains...also one of the things that Allianz has done a good job at is their renewal rates. 91% of their renewal rates are within 75% - 125% of the initial rate. On the income side, it doesn't have a guarantee, but based on the payout %, it beats a lot of carriers with guaranteed roll ups.

The good thing about Allianz is that it is uncapped, and most importantly and the biggest benefit in my opinion is that it's got the increasing income. There isn't really another product available that has the increasing income option like Allianz, although I prefer the 222 with no rider fee and lower spread. If the index continues to perform, the client gets that increase even after the income rider is activated.

However, if I were looking at accumulation only, I would look at something like Americo uncapped 80% allocated to the S&P. I prefer the 222 product from Allianz.

 

[scagnt83]

The bad is the spread is 3.15%, however you get a 25% bonus added back to your PIV or income value...

I think you are confusing the 360 with the 222. The 360 does not have a PIV value or a 25% bonus, it uses the normal accumulation value for the income rider value.

But what we have all forgotten to add, is that the 360 gives a 50% increase to the yearly gain. So if the index return is 4%, you get 6% Credited.

 

[Josh Landis]

I think you are confusing the 360 with the 222. The 360 does not have a PIV value or a 25% bonus, it uses the normal accumulation value for the income rider value.

But what we have all forgotten to add, is that the 360 gives a 50% increase to the yearly gain. So if the index return is 4%, you get 6% Credited.

You're right, I just corrected myself. I was thinking about the 222 when I wrote PIV value. However, the bonus on the 360 is now 25% not 50%.

 

[scagnt83]

However, the bonus on the 360 is now 25% not 50%.

Well that sucks. When did that drop?

 

[Josh Landis]

Well that sucks. When did that drop?

Dropped it about a month ago.

 

[LauderdaleBAUS]

Ive had 360 returns come back 10, 14, 15 and 20% returns the past 12 months using the S&P 500 M2M allocation. The worst one of my probably 80 clients with the 360 has done is around 6%. Its a great product and the lifetime income can be significant if they defer taking money for a few years. My favorite FIA so far.

 

[scagnt83]

Ive had 360 returns come back 10, 14, 15 and 20% returns the past 12 months using the S&P 500 M2M allocation. The worst one of my probably 80 clients with the 360 has done is around 6%. Its a great product and the lifetime income can be significant if they defer taking money for a few years. My favorite FIA so far.

Be careful. Monthly point 2 point is great in a bull market. But it is the weakest and most inconsistent option in a volatile market or a low market.

Personally, I would never allocate 100% to that option for any situation. It is just too inconsistent if you look at historical lookbacks throughout market history. jmo

Also, if you like that crediting option, there are higher MP2P caps out there.... of course the 25% (formerly 50%) crediting increase helps a lot... but then there is a mandatory fee and rider too.

The 360 is great if you want income. IMO it is not a product to sell for accumulation though.