|
4
|
||
|
11
|
||
|
|
11
|
|
|
|
11
|
|
|
|
14
|
|
|
|
15
|
|
|
17
|
||
|
24
|
||
|
31
|
||
|
|
31
|
|
|
NOTE: Cross references in this Summary
Prospectus are to the sections of the Statutory Prospectus where you
can find more detailed information.
|
|
|
FEES, EXPENSES,
AND ADJUSTMENTS
|
Prospectus
Location
|
||
|
Are There
Charges or
Adjustments
for Early
Withdrawals?
|
Yes, your Contract may be subject to charges for early withdrawals. If you withdraw money
within seven years after we establish an Annual Contribution Amount, an MVA based on
changes in interest rates will apply. An MVA may be
positive, negative, or equal to zero. The
maximum negative MVA is -10% (as a percentage of Contract Value for a full
withdrawal, or
as a percentage of the amount withdrawn for a partial
withdrawal). For example, if you take
a $100,000 withdrawal during the period the MVA applies,
you could lose up to $10,000 due
to a negative MVA. This loss will be greater if there is a
negative Daily Adjustment, income
taxes, or tax penalties.
In addition, if you take a full or partial withdrawal from
an Index Option on a date other than
the Term End Date, a Daily Adjustment will apply to the
Index Option Value available for
withdrawal. The Daily Adjustment also applies if before the
Term End Date you take Income
Payments, you execute a Performance Lock, you annuitize the
Contract, we pay a death
benefit, or we deduct Contract fees, expenses, or
investment advisory fees you authorize
your Financial Professional’s firm to receive from the
Contract. The Daily Adjustment may
be negative depending on the applicable Crediting Method.
You will lose money if the Daily
Adjustment is negative.
●Index Dual Precision Strategy, Index Precision Strategy, Index Guard Strategy,
and Index Performance Strategy. Daily Adjustments under these Crediting Methods
may be positive, negative, or equal to zero. A negative
Daily Adjustment will result in a
loss, and could result in a loss beyond the protection of
the 10%, 20%, or 30% Buffer;
or -10% Floor, as applicable. The maximum potential loss
from a negative Daily
Adjustment is: -99% for the Index Dual Precision Strategy,
Index Precision Strategy,
and Index Performance Strategy; and -35% for the Index
Guard Strategy. For
example, if you allocate $100,000 to a 1-year Term Index
Option with 10% Buffer and
later withdraw the entire amount before the Term has
ended, you could lose up to
$99,000 of your investment. This loss will be greater if
you also are subject to a
negative MVA, income taxes, and tax penalties.
●Index Protection Strategy with Trigger and Index Protection Strategy with Cap.
Daily Adjustments under these Crediting Methods may be
positive or equal to zero, but
cannot be negative.
|
Fee Tables
7. Expenses and
Adjustments
Appendix C –
Daily
Adjustment
|
||
|
Are There
Transaction
Charges?
|
No. Other than negative MVAs and Daily Adjustments that may apply to withdrawals and
other transactions under the Contract, there are no other
transaction charges.
|
Not Applicable
|
||
|
|
FEES, EXPENSES,
AND ADJUSTMENTS
|
Prospectus
Location
|
||
|
Are There
Ongoing Fees
and
Expenses?
|
Yes, there are ongoing fees and expenses. The table below describes the fees and
expenses that you may pay each year, depending on the options
you choose. Please refer
to your Contract specifications page for information about
the specific fees you will pay
each year based on the options you have elected. These ongoing fees and expenses do
not reflect any investment advisory fees paid to a
Financial Professional from your Contract
Value or other assets of the Owner. If such charges were
reflected, these ongoing fees and
expenses would be higher.
There is an implicit ongoing fee on Index
Options to the extent that your participation
in Index gains is limited by us through a
Cap or Trigger Rate. This means that your
returns may be lower than the Index’s returns. In return
for accepting this limit on Index
gains, you will receive some protection from Index losses.
This implicit ongoing fee is not
reflected in the tables below. Additionally, if we add Index Options with a guaranteed
minimum Participation Rate less than 100%,
the Participation Rate would be an
implicit ongoing fee and limit Index
gains.
|
Fee Tables
1. The Contract –
Investment
Advisory Fees
7. Expenses and
Adjustments
Appendix A –
Investment
Options Available
Under the
Contract
|
||
|
Annual Fee
|
Minimum
|
Maximum
|
||
|
Base Contract(1)
|
0.96%
|
1.81%
|
||
|
Investment Options(2)
(Fund fees and expenses)
|
0.66%
|
0.66%
|
||
|
Optional Benefits Available for an Additional
Charge(3)
(for a single optional benefit, if elected)
|
0.20%
|
0.20%
|
||
|
|
(1)
Base Contract fee is comprised of two charges referred to
as the “product fee” and the “rider fee(s)” for your
selected income benefit. You are required to select one of
the income benefit riders at issue. As a percentage
of the Charge Base, plus an amount attributable to the
contract maintenance charge.
|
|
||
|
|
(2)
As a percentage of the AZL Government Money Market Fund's
average daily net assets.
|
|
||
|
|
(3)
As a percentage of the Charge Base. This is the current
charge for the Maximum Anniversary Value Death
Benefit.
|
|
||
|
|
Because your Contract is customizable, the
choices you make affect how much you will
pay. To help you understand the cost of owning your
Contract, the following table shows the
lowest and highest cost you could pay each year, based on current charges.
This estimate
assumes that you do not take withdrawals from the Contract,
which could add a negative
Daily Adjustment and/or negative MVA that
could substantially increase costs.
|
|
||
|
|
Lowest Annual Cost:
$1,506
|
Highest Annual Cost:
$[XXX]
|
|
|
|
|
Assumes:
●Investment of $100,000 in the Variable
Option (even though you cannot select
the Variable Option for investment)
●5% annual appreciation
●0.70% Income Benefit rider fee
●Traditional Death Benefit
●No additional Purchase Payments,
transfers, or withdrawals
●No investment advisory fees
●No Daily Adjustment
|
Assumes:
●Investment of $100,000 in the Variable
Option (even though you cannot select
the Variable Option for investment)
●5% annual appreciation
●1.55% Legacy+TM Income Benefit rider
fees
●No additional Purchase Payments,
transfers, or withdrawals
●No investment advisory fees
●No Daily Adjustment
|
|
|
|
|
RISKS
|
Prospectus
Location
|
||
|
Is There a Risk
of Loss from
Poor
Performance?
|
Yes, you can lose money by investing in the Contract, including loss of principal and
previous earnings.
The maximum amount of loss that you could
experience from negative Index Return,
after taking into account the current
limits on Index loss provided under the
Contract, is: -90% with a 10% Buffer; -80%
with a 20% Buffer; -70% with a 30% Buffer;
-10% with the Floor; and 0% with the Index
Protection Strategy with Cap and Index
Protection Strategy with Trigger.
The limits on Index loss offered under the
Contract may change from one Term to the
next if we add an Index Option or
discontinue accepting new allocations into an
Index Option. However, at least one Index
Option with a Buffer no lower than 5% or
Floor no lower than -25%, or an Index
Option that provides complete protection from
Index losses, will always be available for
renewal under the Contract.
|
Principal Risks of
Investing In the
Contract
4. Index Options
6. Valuing Your
Contract –
Calculating
Performance
Credits
|
||
|
Is This a
Short-Term
Investment?
|
• No, this Contract is not a short-term investment and is not appropriate if
you need ready
access to cash.
• Considering the benefits of tax deferral, long-term income, and living benefit guarantees,
the Contract is generally more beneficial to investors
with a long investment time horizon.
• Withdrawals are subject to income taxes, and may also be subject to a 10% additional
federal tax for amounts withdrawn before age 59 1∕2.
• If, within seven years after we establish an Annual Contribution Amount, you take a full or
partial withdrawal or begin Annuity Payments, or we pay a
death benefit, an MVA will
apply. An MVA is an adjustment based on changes in
interest rates and may be positive,
negative, or equal to zero. An MVA will be negative if the
corporate bond yield on the date
of deduction is higher than the corporate bond yield on
the date that the Annual
Contribution Amount was established. If you take a full
withdrawal or begin Annuity
Payments, or if we pay a death benefit, the maximum
negative MVA is -10% of Contract
Value. On a partial withdrawal, we limit the maximum
negative MVA to -10% of the
amount withdrawn.
• Amounts invested in an Index Option must be held in the Index Option for the full Term
before they can receive a Performance Credit. We apply a
Daily Adjustment if, before the
Term End Date, you take a full or partial withdrawal, you
take Income Payments, you
execute a Performance Lock, you annuitize the Contract, we
pay a death benefit, or we
deduct Contract fees, expenses, or investment advisory
fees that you authorize your
Financial Professional’s firm to receive from the
Contract.
• The Daily Adjustment may be negative with the Index Dual Precision Strategy, Index
Precision Strategy, Index Guard Strategy, and Index
Performance Strategy. You will lose
money if the Daily Adjustment is negative.
• Withdrawals and other deductions from an Index Option prior to a Term End Date will
result in a proportionate reduction to your Index Option
Base. The proportionate reduction
could be greater than the amount withdrawn or deducted.
Reductions to your Index
Option Base will result in lower Index Option Values for
the remainder of the Term and
lower gains (if any) on the Term End Date.
• On the Term End Date, you can transfer assets invested in an Index Option by changing
your allocation instructions. If you do not change your
allocation instructions, you will
continue to be invested in the same Index Option with a
new Term Start Date. The new
Term will be subject to the applicable renewal Trigger
Rate, Cap, and/or Participation
Rate.
|
Principal Risks of
Investing In the
Contract
4. Index Options
6. Valuing Your
Contract
7. Expenses and
Adjustments
Appendix C –
Daily Adjustment
|
||
|
|
RISKS
|
Prospectus
Location
|
||
|
What are the
Risks
Associated
with the
Investment
Options?
|
• An investment in the Contract is subject to the risk of poor investment performance and
can vary depending on the performance of the Variable
Option and the Index Options
available under the Contract.
• The Variable Option and each Index Option have their own unique risks.
• You should review the Fund’s prospectus and disclosures, including risk factors, before
making an investment decision.
• Caps and Trigger Rates will limit positive Performance Credits (e.g., limited upside). This
may result in earning less than the Index
Return.
– For example, if at the end of a 1-year Term, the Index Return is 25% and the Cap is
15%, we apply a Performance Credit of 15%, meaning your
Contract Value allocated
to that Index Option will increase by 15% since the Term
Start Date. If at the end of the
Term, the Index Return is 6% and the Trigger Rate is 3%,
we apply a Performance
Credit of 3%, meaning your Contract Value allocated to
that Index Option will increase
by 3% since the Term Start Date.
• The Buffer or Floor will limit negative Performance Credits (e.g., limited protection in the
case of Index decline). However, you bear the risk for all Index losses that exceed
the Buffer. You also bear the risk for
Index losses down to the Floor.
– For example, if at the end of a Term, the Index Return is -25% and the Buffer is 10%,
we apply a Performance Credit of -15%, meaning your
Contract Value allocated to that
Index Option will decrease by 15% since the Term Start
Date. If the Index Return is
-25% and the Floor is -10%, we apply a Performance Credit
of -10%, meaning your
Contract Value allocated to that Index Option will
decrease by 10% since the Term
Start Date.
• The Indexes are price return indexes, not total return indexes. This means that the Index
Options do not receive any dividends payable on these
securities. The Index Options also
do not directly participate in the returns of the Indexes
or the Indexes’ component
securities. This will reduce the Index Return and may
cause the Index to underperform a
direct investment in the securities composing the Index.
|
Principal Risks of
Investing In the
Contract
|
||
|
What are the
Risks Related
to the
Insurance
Company?
|
An investment in the Contract is subject to the risks
related to us. All obligations,
guarantees or benefits of the Contract, including those
relating to the Index Options, are the
obligations of Allianz Life and are subject to our
claims-paying ability and financial strength.
More information about Allianz Life, including our
financial strength ratings, is available
upon request by visiting https://www.allianzlife.com/about/financial-ratings, or
contacting us
at (800) 624-0197.
|
Principal Risks of
Investing In the
Contract
|
||
|
|
RESTRICTIONS
|
Prospectus
Location
|
||
|
Are There
Restrictions on
the Investment
Options?
|
Yes, there are limits on the Investment Options.
• Certain Index Options may not be available under your Contract (see Appendix A).
• The availability of Investment Options may vary depending on the broker-dealer through
which the Contract is sold (see Appendix H).
• We can add new Index Options to your Contract in the future.
• You cannot allocate Purchase Payments to the Variable Option. The sole purpose of the
Variable Option is to hold Purchase Payments until they
are transferred to your selected
Index Options.
• We restrict additional Purchase Payments during the Accumulation Phase. Each Index
Year before the Income Period, you cannot add more than
your initial amount (i.e., the
total of all Purchase Payments received before the first
Quarterly Contract Anniversary of
the first Contract Year) without our prior approval.
• We do not accept additional Purchase Payments during the Income Period (which is part
of the Accumulation Phase) or the Annuity Phase.
• We typically only allow assets to move into the Index Options on the Index Effective Date
and on subsequent Index Anniversaries as discussed in
section 3, Purchasing the
Contract – Allocation of Purchase Payments and Contract
Value Transfers. However, if
you execute an Early Reallocation, we will move assets
into an Index Option on the
Business Day we receive your Early Reallocation request in
Good Order.
• You can typically transfer Index Option Value only on Term End Dates. However, you can
transfer assets out of an Index Option before the Term End
Date by first executing a
Performance Lock and then either requesting an Early
Reallocation with new allocation
instructions or changing your allocation instructions
before the next Index Anniversary.
For more information, see section 6, Valuing Your Contract
– Performance Locks and
Early Reallocations.
• We do not allow assets to move into an established Index Option until the Term End Date.
If you request to allocate a Purchase Payment into an
established Index Option on an
Index Anniversary that is not a Term End Date, we will
allocate those assets to the same
Index Option with a new Term Start Date.
• We reserve the right to substitute the Fund in which the Variable Option invests. We also
reserve the right to close Index Options to new Purchase
Payments and transfers, and to
substitute Indexes either on a Term Start Date or during a
Term.
• We may terminate your ability to make additional Purchase Payments during the
Accumulation Phase because we reserve the right to decline
any or all Purchase
Payments at any time on a nondiscriminatory basis.
• Caps, Trigger Rates, and Participation Rates will change from one Term to the next
subject to their contractual minimum guarantees.
• The 10%, 20%, and 30% Buffers, and -10% Floors for the currently available Index
Options do not change. However, if we add a new Index
Option to your Contract after the
Issue Date, we establish the Buffer or Floor for it on the
date we add the Index Option to
your Contract. For a new Index Option, the minimum Buffer
is 5% and the minimum Floor
is -25%.
|
Overview of the
Contract
Principal Risks of
Investing In the
Contract
3. Purchasing the
Contract –
Allocation of
Purchase
Payments and
Contract Value
Transfers
4. Index Options
5. The Variable
Option's
Underlying Fund
6. Valuing Your
Contract
11. Income
Benefits
Appendix A –
Investment
Options Available
Under the
Contract
Appendix H –
Financial
Intermediary
Variations
|
||
|
|
RESTRICTIONS
|
Prospectus
Location
|
||
|
Are There Any
Restrictions on
Contract
Benefits?
|
Yes, there are restrictions on Contract benefits.
• The availability of Contract benefits may vary depending on the broker-dealer through
which the Contract is sold (see Appendix H)
• We do not allow Performance Locks to occur on Term End Dates. We will not execute
your request for a Performance Lock on Index Protection
Strategy with Trigger or Index
Protection Strategy with Cap Index Options if the Daily
Adjustment is zero. This may limit
your ability to take advantage of the benefits of the
Early Reallocation feature. We do not
accept Early Reallocation requests within 14 calendar days
before an Index Anniversary.
You are limited to 24 Early Reallocation requests each
Index Year.
• We reserve the right to discontinue or modify the Minimum Distribution Program and
Investment Advisory Fees program.
• Deductions we make for investment advisory fees reduce your Contract Value (and
therefore Cash Value) by the amount withdrawn on a dollar
for dollar basis. This Contract
Value reduction also decreases your initial annual maximum
Income Payment which is
based on Contract Value. As Contract Value is one of the
components we use to calculate
RMD payments, these deductions may also reduce your RMD
payments. These
deductions also reduce the following proportionately by
the percentage of Contract Value
withdrawn: Charge Base, Index Option Base, Index Option
Value, and Variable Account
Value.
• The death benefits and your selected income benefit are only available during the
Accumulation Phase. Upon annuitization, these benefits
will end.
• The Income Benefit and Legacy+TM
Income Benefit terms stated in the Income Benefit
Supplement may be modified before issue. A minimum waiting
period applies before
Income Payments may be taken under either income benefit.
In addition, even if the
waiting period has expired, Income Payments cannot begin
before age 50. During the
Income Period, only the Index Options with the Index
Protection Strategy with Trigger and
Index Protection Strategy with Cap are available to you.
Withdrawals will reduce the initial
annual maximum Income Payment. Withdrawals that exceed
limits specified by the terms
of your selected income benefit (including Excess
Withdrawals and Legacy Withdrawals,
if applicable) will reduce your future annual maximum
Income Payment. These reductions
may be greater than the value withdrawn and could end the
benefit. After the Issue Date,
your selected income benefit may terminate under certain
circumstances as stated in
section 11, Income Benefits.
• The Traditional Death Benefit may not be modified, but it will terminate if you take
withdrawals (including Income Payments) that reduce both
the Contract Value and
Guaranteed Death Benefit Value to zero. Withdrawals may
reduce the Traditional Death
Benefit’s Guaranteed Death Benefit Value by more than the
value withdrawn and could
end the Traditional Death Benefit.
• The Maximum Anniversary Value Death Benefit is not available if you select the
Legacy+TM
Income Benefit. The optional Maximum Anniversary Value Death Benefit may
not be modified. Withdrawals (including Income Payments)
may reduce the Maximum
Anniversary Value Death Benefit’s Guaranteed Death Benefit
Value by more than the
value withdrawn and will end the Maximum Anniversary Value
Death Benefit if the
withdrawals reduce both the Contract Value and Guaranteed
Death Benefit Value to zero.
|
6. Valuing Your
Contract –
Performance
Locks and Early
Reallocations
10. Benefits
Available Under
the Contract
11. Income
Benefits
12. Death Benefit
Appendix H –
Financial
Intermediary
Variations
|
||
|
|
TAXES
|
|
||
|
What are the
Contract’s Tax
Implications?
|
• Consult with a tax professional to determine the tax implications of an investment in and
withdrawals from or payments received under the Contract.
• If you purchased the Contract as an individual retirement annuity or through a custodial
individual retirement account, you do not get any
additional tax benefit under the
Contract.
• Generally, earnings under a Non-Qualified Contract are taxed at ordinary income rates
when withdrawn, and may also be subject to a 10%
additional federal tax for amounts
withdrawn before age 59 1∕2.
• Generally, distributions from Qualified Contracts are taxed at ordinary income tax rates
when withdrawn, and may also be subject to a 10%
additional federal tax for amounts
withdrawn before age 59 1∕2.
|
13. Taxes
|
||
|
|
CONFLICTS OF
INTEREST
|
Prospectus
Location
|
||
|
How are
Investment
Professionals
Compensated?
|
We do not pay sales commissions in connection with sales of
the Contracts. Rather, you
pay an investment advisory fee to your Financial
Professional. We do not set your
investment advisory fee or receive any part of it. However,
Financial Professionals and their
managers may be eligible for benefits from us or our
wholly-owned subsidiary distributor,
such as production incentive bonuses, insurance benefits,
and non-cash compensation
items. We and/or our wholly owned subsidiary distributor
may also make marketing support
payments to certain selling firms for marketing services
and costs associated with Contract
sales. This conflict of interest may influence your
Financial Professional to recommend this
Contract over another investment.
|
1. The Contract –
Investment
Advisory Fees
|
||
|
Should I
Exchange my
Contract?
|
Whether to exchange your existing Contract for a new
contract is a decision that each
investor should make based on their personal circumstances
and financial objectives.
However, in making this decision you should be aware that
some Financial Professionals
may have a financial incentive to offer you a new contract
in place of one you already own.
You should only exchange your Contract if you determine,
after comparing the features,
risks, and fees of both contracts, including any fees or
penalties to terminate your existing
Contract, that it is better for you to purchase the new
contract rather than continue to own
your existing Contract.
|
14. Other
Information –
Distribution
|
||
|
Standard Benefits
|
|||
|
Name of
Benefit
|
Purpose
|
Maximum
Fee
|
Brief Description of
Restrictions/Limitations
|
|
Free
Withdrawal
Privilege
|
Allows you to withdraw up to 10% of your total
Annual Contribution Amounts each Index Year
without incurring an MVA.
|
None
|
• Only available during the Accumulation
Phase.
• Not available during the Income Period.
• Not available upon a full withdrawal.
• Upon a full withdrawal, an MVA may apply
against amounts previously withdrawn under
the free withdrawal privilege.
• Unused free withdrawal amounts not
available in future years.
• Program withdrawals may be subject to
negative Daily Adjustments.
• Program withdrawals are subject to income
taxes, and may also be subject to a 10%
additional federal tax for amounts withdrawn
before age 59 1∕2.
|
|
Minimum
Distribution
Program
|
Allows you to automatically take withdrawals to
satisfy the required minimum distribution
requirements (RMD) imposed by the Internal
Revenue Code.
|
None
|
• Only available during the Accumulation
Phase.
• Only available to IRA or SEP IRA Contracts.
• Program withdrawals count against the free
withdrawal privilege.
• Program withdrawals may be subject to
negative Daily Adjustments.
• Program withdrawals are subject to income
taxes.
• Program withdrawals may be monthly,
quarterly, semi-annual or annual, unless you
have less than $25,000 in Contract Value, in
which case only annual payments are
available.
• We reserve the right to discontinue or modify
the program subject to the requirements of
law.
|
|
Standard Benefits
|
|||
|
Name of
Benefit
|
Purpose
|
Maximum
Fee
|
Brief Description of
Restrictions/Limitations
|
|
Investment
Advisory Fees
|
We designed the Contract for persons who are
receiving ongoing investment advice from a
Financial Professional. You can instruct us to
automatically withdraw investment advisory
fees from your Contract to pay your Financial
Professional’s firm.
|
None
|
• Only available during the Accumulation
Phase.
• Investment advisory fees are in addition to
the Contract’s fees and expenses.
• Program withdrawals may be subject to
negative Daily Adjustments.
• If you and your Financial Professional do not
agree to our requirements we will not pay
investment advisory fees from this Contract
to your Financial Professional’s firm.
• Our requirements limit investment advisory
fee withdrawals to 1.5% of Contract Value
each Contract Year, require the fees to be
solely for advisory services provided with
respect to the Contract, and require the
Contract to be the sole source of payment.
• Deductions we make for investment advisory
fees reduce your Contract Value (and
therefore Cash Value) dollar for dollar by the
amount withdrawn. This Contract Value
reduction also decreases your initial annual
maximum Income Payment which is based
on Contract Value. As Contract Value is one
of the components we use to calculate RMD
payments, these deductions may also reduce
your RMD payments. These deductions also
reduce the following proportionately by the
percentage of Contract Value withdrawn:
Charge Base, Index Option Base, Index
Option Value, and Variable Account Value.
For more information regarding the impact of
paying advisory fees with money in the
Contract, including an example of how
deduction of investment advisory fees
impacts the Contract, see section 1, The
Contract – Investment Advisory Fees.
|
|
Standard Benefits
|
|||
|
Name of
Benefit
|
Purpose
|
Maximum
Fee
|
Brief Description of
Restrictions/Limitations
|
|
Income
Benefit
|
Guaranteed lifetime withdrawal benefit
providing for yearly Income Payments until the
death of the Covered Person(s) if conditions
are satisfied.
We base the initial Income Payment on the
Lifetime Income Percentage and Contract
Value. If you choose the Level Income payment
option and meet the age requirements stated in
section 11, we guarantee your initial annual
maximum Income Payment will be at least the
Level Income Guarantee Payment Percentage
multiplied by your total Purchase Payments
adjusted for withdrawals.
The automatic annual payment increase
feature may increase payments after the
Income Benefit Date.
If you elect Level Income, payments increase if
Contract Value increases from one Income
Benefit Anniversary to the next and you took
the maximum permitted payment during the
prior Income Benefit Year.
Includes the Income Multiplier Benefit for no
additional charge that can increase income to
help pay for needed care.
Section 11 includes examples of the Lifetime
Income Percentage Calculation, Excess
Withdrawals, Income Payment increases, and
the Income Multiplier Benefit.
|
0.70%
(as a
percentage of
the Charge
Base)
This rider fee
is part of the
Base Contract
Expenses in
the Fee
Tables.
|
• At issue, you may select either this benefit or
the Legacy+TM Income Benefit.
• Benefit cannot be removed from the
Contract.
• See the Income Benefit Supplement for
current terms. Please see Appendix F for
historical information on the terms for
previous versions of the Income Benefit.
• Benefit only available during the
Accumulation Phase.
• Investment restrictions limit available Index
Options during Income Period.
• Income Period cannot begin until after the
waiting period and reaching age 50. Income
Period must begin no later than age 100.
• Early and Excess Withdrawals may
significantly reduce or end the benefit as
indicated in section 11.
• A full Excess Withdrawal and certain
partial Excess Withdrawals
will cause
Income Payments to stop
and the
Contract and all of its benefits to end.
• On the Income Benefit Date, we execute
Performance Locks on Index Options for
which this day is not a Term End Date, and in
such case the Index Option Value will be
subject to the Daily Adjustment. We then
reallocate the total Contract Value, including
amounts in the Variable Option, into the
Index Protection Strategy with Trigger and/or
Index Protection Strategy with Cap Index
Options according to allocation instructions
you provide, and begin your Income
Payments.
• Income Payments are subject to income
taxes, and may also be subject to a 10%
additional federal tax for amounts withdrawn
before age 59 1∕2.
• No additional Purchase Payments during the
Income Period.
• No Income Percentage Increase before age
45.
• Availability of joint Income Payments is
subject to age restrictions.
• The Income Multiplier Benefit is not available
in all states as indicated in Appendix G.
• Must establish eligibility to exercise the
Income Multiplier Benefit (e.g., that you are
confined for care or unable to perform two
activities for daily living) and must
re-establish eligibility each year thereafter.
• Annuitizing the Contract will end the benefit,
but we may convert your Income Payments
to Annuity Payments on the maximum
Annuity Date.
• State variations may apply.
|
|
Standard Benefits
|
|||
|
Name of
Benefit
|
Purpose
|
Maximum
Fee
|
Brief Description of
Restrictions/Limitations
|
|
Legacy+TM
Income Benefit
|
Lifetime withdrawal benefit providing for yearly
Income Payments until the death of the
Covered Person(s) if conditions are satisfied.
We base the initial Income Payment on the
Lifetime Income Percentage and Contract
Value. If you choose the Level Income payment
option and meet the age requirements stated in
section 11, we guarantee your initial annual
maximum Income Payment will be at least the
Level Income Guarantee Payment Percentage
multiplied by your total Purchase Payments
adjusted for withdrawals.
The automatic annual payment change feature
may increase or decrease payments after the
Income Benefit Date.
If you elect Level Income, payments increase if
your Contract Value multiplied by the Lifetime
Income Percentage as of the Income Benefit
Date results in a higher annual maximum
Income Payment and you took the maximum
permitted payment during the prior Income
Benefit Year.
If you elect Dynamic Income, the annual
maximum Income Payment will change based
on Index Option performance. Negative Index
Option performance may significantly reduce
the annual maximum Income Payment if you
allocate to the Index Dual Precision Strategy,
Index Precision Strategy, Index Guard Strategy,
or Index Performance Strategy Index Options.
Includes the Income Multiplier Benefit for no
additional charge that can increase income to
help pay for needed care.
Includes the Legacy+TM Benefit that during the
Income Period provides a guaranteed Legacy
Value that is accessible through Legacy
Withdrawals, or as a death benefit upon the
death of the last surviving Covered Person.
Unlike the Guaranteed Death Benefit Value,
which decreases with each Income Payment,
the Legacy Value will never decrease unless
you take an Excess Withdrawal or Legacy
Withdrawal. Once your Contract Value is
reduced to zero, the Legacy Value will increase
on an Income Benefit Anniversary by the
amount of any remaining unpaid annual
maximum Income Payment from the previous
Income Benefit Year.
Section 11 includes examples of the Lifetime
Income Percentage Calculation, Excess
Withdrawals, Legacy Withdrawals, automatic
annual Income Payment changes, and the
Income Multiplier Benefit.
|
1.55%
(as a
percentage of
the Charge
Base)
These rider
fees are part
of the Base
Contract
Expenses in
the Fee
Tables.
|
• At issue, you may select either this benefit or
the Income Benefit.
• Benefit cannot be removed from the
Contract.
• See the Income Benefit Supplement for
current terms. Please note that the terms can
differ between the Income Benefit and the
Legacy+TM
Income Benefit.
• Legacy+TM Income Benefit has all the same
restrictions/limitations as the Income Benefit
with the following exceptions:
– Legacy Withdrawals may significantly
reduce or end the benefit as indicated in
section 11.
– A full Legacy Withdrawal and certain
partial Legacy
Withdrawals will cause
Income Payments to stop
and the
Contract and all of its
benefits to end.
– If you die before taking Income
Payments, or before the
Contract Value
is less than the Legacy
Value, you will
have paid additional
rider fees without
receiving the advantages
of the
Legacy+TM Benefit.
|
|
Standard Benefits
|
|||
|
Name of
Benefit
|
Purpose
|
Maximum
Fee
|
Brief Description of
Restrictions/Limitations
|
|
Traditional
Death Benefit
|
Provides a death benefit equal to the greatest
of the Contract Value, Cash Value, or
Guaranteed Death Benefit Value. The
Guaranteed Death Benefit Value is total
Purchase Payments adjusted for withdrawals.
An example of the death benefit provided by
the Traditional Death Benefit is included in
section 12, Death Benefit.
An example of how deduction of investment
advisory fees impact the death benefit is
included in section 1.
The impact of an Excess Withdrawal on the
death benefit is included in section 11.
|
None
|
• Benefit only available during the
Accumulation Phase.
• Withdrawals, including any negative Daily
Adjustments and negative MVAs, may
significantly reduce the benefit as indicated in
the Investment Advisory Fee Deduction
Example in section 1, The Contract, and in
the Excess Withdrawal example in section
11, Income Benefits.
• Restrictions on Purchase Payments may limit
the benefit.
• Annuitizing the Contract will end the benefit.
|
|
Standard Benefits
|
|||
|
Name of
Benefit
|
Purpose
|
Maximum
Fee
|
Brief Description of
Restrictions/Limitations
|
|
Performance
Lock and Early
Reallocations
|
Performance Lock allows you to capture the
current Index Option Value during the Term for
an Index Option. Performance Lock can help
eliminate doubt about future Index performance
and possibly limit the impact of negative
performance. Early Reallocation allows you to
transfer out of a locked Index Option on days
other than an Index Anniversary, or a Term End
Date.
A Performance Lock example is included in
section 6, Valuing Your Contract —
Performance Locks and Early Reallocations.
|
None
|
• Available during the Accumulation Phase.
Only available during the Annuity Phase if
you select Increasing Income and we convert
your Income Payments to Annuity Payments
on the maximum Annuity Date.
• Performance Locks must be executed
before the Term End Date.
• If a Performance Lock is executed, the
locked Index Option will no longer participate
in Index performance (positive or negative)
for the remainder of the Term, and will not
receive a Performance Credit on the Term
End Date.
• You will not know your locked Index Option
Value in advance.
• The locked Index Option Value will reflect a
Daily Adjustment.
• If a Performance Lock is executed when the
Daily Adjustment has declined, it will lock in
any loss.
• A Performance Lock can be executed only
once each Term for each Index Option.
• Cannot execute a Performance Lock for only
a portion of the Index Option Value.
• Early Reallocation requests are not accepted
within 14 calendar days before an Index
Anniversary.
• You are limited to 24 Early Reallocation
requests each Index Year.
• Deductions (e.g. withdrawals, fees) decrease
the locked Index Option Value.
• Cannot transfer locked Index Option Value
until the next Index Anniversary that occurs
on or immediately after the Lock Date unless
you execute an Early Reallocation.
• We will not provide advice or notify you
regarding whether you should execute a
Performance Lock or Early Reallocation
or the optimal time for doing so, if any.
• We will not warn you if you execute a
Performance Lock or Early Reallocation at
a sub-optimal time.
• We are not responsible for any losses
related to your decision whether or not to
execute a Performance Lock or Early
Reallocation.
|
|
Optional Benefits
|
|||
|
Name of
Benefit
|
Purpose
|
Maximum
Fee
|
Brief Description of
Restrictions/Limitations
|
|
Maximum
Anniversary
Value Death
Benefit
|
Provides a death benefit equal to the greatest of
the Contract Value, Cash Value, or Guaranteed
Death Benefit Value. The Guaranteed Death
Benefit Value is the Maximum Anniversary Value.
An example of the death benefit provided by the
Maximum Anniversary Value Death Benefit, and
calculation of the Maximum Anniversary Value is
included in section 12, Death Benefit.
An example of how deduction of investment
advisory fees impact the death benefit is
included in section 1.
The impact of an Excess Withdrawal on the
death benefit is included in section 11.
|
0.20%
(as a
percentage of
the Charge
Base)
|
• Must be age 75 or younger to elect.
• Can only be added to a Contract at issue.
• The Maximum Anniversary Value Death
Benefit is not available if you select the
Legacy+TM
Income Benefit.
• Replaces the Traditional Death Benefit if
elected.
• Benefit cannot be removed from the Contract.
• Only available during the Accumulation Phase.
• Withdrawals, including any negative Daily
Adjustment and negative MVA, may
significantly reduce the benefit as indicated in
the Investment Advisory Fee Deduction
Example in section 1, The Contract, and in the
Excess Withdrawal example in section 11,
Income Benefits.
• Withdrawals reduce the likelihood of receiving
increases to the Maximum Anniversary Value.
• Investment restrictions during the Income
Period may limit the benefit.
• Restrictions on Purchase Payments may limit
the benefit.
• Annuitizing the Contract will end the benefit.
|
|
● Withdrawals are subject to an MVA (which can be negative), income taxes, and may also be subject to a 10%
additional federal tax for amounts withdrawn before age 59 1∕2. The amount of Contract Value available for
withdrawal may also be affected by the Daily Adjustment (which can be negative).
|
|
● Joint Owners: We send each Joint Owner a check for half of the withdrawal
amount, and we tax report to each Joint
Owner individually. Tax reporting to each Joint Owner individually can create a discrepancy in taxation if only
one Joint Owner is under age
59 1∕2 because that Joint Owner may be subject to the 10% additional federal tax.
|
|
● We may be required to provide information about you or your Contract to government regulators. We may also be
required to stop Contract disbursements and thereby refuse any
transfer requests and refuse to pay any withdrawals
(including a full withdrawal), or death benefits until we
receive instructions from the appropriate regulator. If,
pursuant to SEC rules, the AZL Government Money Market Fund
suspends payment of redemption proceeds in
connection with a fund liquidation, we will delay payment of
any transfer, full or partial withdrawal, or death benefit
from the Variable Option until the Fund is liquidated.
|
|
|
Index Protection Strategy
with Trigger
and
Index Protection Strategy
with Cap
|
Index Dual Precision Strategy,
Index Precision Strategy,
and
Index Performance Strategy
|
Index
Guard
Strategy
|
|
Daily Adjustment Maximum Potential Loss
|
0%
|
99%
|
35%
|
|
(as a percentage of Index Option Value, applies for
distributions from an Index Option before any Term
End Date)(1)
|
|
|
|
|
|
Upon full or partial withdrawal, Annuity Payments, or death benefit payment
|
|
MVA Maximum Potential Loss(1)
|
10%(3)
|
|
(as a percentage of each Annual Contribution
Amount)(2)
|
|
|
|
Income Benefit
|
Legacy+TM
Income Benefit
|
|
Administrative Expenses (or contract maintenance
charge)(1)
(per year)
|
$50
|
$50
|
|
Base Contract Expenses(2)
(as a percentage of the Charge Base)
|
0.95%
|
1.80%
|
|
Optional Benefit Expenses – Maximum Anniversary
Value Death Benefit
(as a percentage of the Charge Base)
|
0.20%
|
N/A
|
|
(expenses that are deducted from Fund assets, including management fees,
distribution and/or service (12b-1) fees, and other expenses)
|
0.66%
|
|
|
1 Year
|
3 Years
|
5 Years
|
10 Years
|
|
(1) If you surrender your Contract (take a full withdrawal) at the end of
the applicable time period:
|
$X,XXX
|
$X,XXX
|
$X,XXX
|
$XX,XXX
|
|
(2) If you annuitize your Contract at the end of the applicable time
period.
|
N/A*
|
$X,XXX
|
$X,XXX
|
$XX,XXX
|
|
(3) If you do not surrender your Contract.
|
$X,XXX
|
$X,XXX
|
$X,XXX
|
$XX,XXX
|
|
Investment Objective
|
Fund and
Adviser/Subadviser
|
Current
Expenses
|
Average Annual Total Returns
(as of December 31, 2025)
|
||
|
1 Year
|
5 Years
|
10 Years
|
|||
|
Current income consistent with
stability of principal
|
AZL® Government Money
Market Fund(1)
Adviser: Allianz Investment
Management LLC
Subadviser: BlackRock
Advisors, LLC
|
0.65%
|
3.70%
|
2.62%
|
1.57%
|
|
Index
|
Index Type
|
Crediting
Period
(Term
Length)
|
Index
Crediting
Methodology
|
Current Limit on
Index Loss
(if held until
Term End Date)
|
Minimum Limit on Index Gain
(for the life of the Index
Option)
|
|
Index Protection Strategy with Trigger
• During the Income Period, this is one of the two Crediting Methods available to you.
|
|||||
|
S&P 500® Index(1)
|
U.S. large-cap equities
|
1-year Term
|
Point-to-point
with step-up
|
100% downside
protection
|
0.50% minimum Trigger Rate
|
|
Russell 2000® Index(1)
|
U.S. small-cap equities
|
||||
|
Nasdaq-100® Index(1)
|
U.S. & international
non-financial large-cap
equities
|
||||
|
EURO STOXX 50®(1)
|
Eurozone large-cap equities
|
||||
|
iShares® MSCI Emerging
Markets ETF(2)
|
International emerging
markets equities
|
||||
|
Index Protection Strategy with Cap
• During the Income Period, this is one of the two Crediting Methods available to you.
|
|||||
|
S&P 500® Index(1)
|
U.S. large-cap equities
|
1-year Term
|
Point-to-point
with Cap
|
100% downside
protection
|
0.50% minimum Cap
|
|
Russell 2000® Index(1)
|
U.S. small-cap equities
|
||||
|
Nasdaq-100® Index(1)
|
U.S. & international
non-financial large-cap
equities
|
||||
|
EURO STOXX 50®(1)
|
Eurozone large-cap equities
|
||||
|
iShares® MSCI Emerging
Markets ETF(2)
|
International emerging
markets equities
|
||||
|
Index Dual Precision Strategy
• For Contracts issued before October [DD], 2026, all 1-year Term Index Options listed below are available. Additionally, only the
3-year Term with 10%,
20%, and 30% Buffers for the S&P 500® Index
and Russell 2000® Index are available, and only the 6-year Term with 10%, 20%, and 30% Buffers for the
S&P 500® Index and Russell 2000® Index are
available.
• For Contracts issued since October [DD], 2026, all 1-year, 3-year, and 6-year Term Index Options listed below are available.
|
|||||
|
S&P 500® Index(1)
|
U.S. large-cap equities
|
1-year Term
|
Point-to-point
with step-up
|
• 10% Buffer
• 20% Buffer
• 30% Buffer
|
3% minimum Trigger Rate
|
|
Russell 2000® Index(1)
|
U.S. small-cap equities
|
||||
|
Nasdaq-100® Index(1)
|
U.S. & international
non-financial large-cap
equities
|
||||
|
EURO STOXX 50®(1)
|
Eurozone large-cap equities
|
||||
|
iShares® MSCI Emerging
Markets ETF(2)
|
International emerging
markets equities
|
||||
|
S&P 500® Index(1)
|
U.S. large-cap equities
|
3-year Term
|
Point-to-point
with step-up
|
• 10% Buffer
• 20% Buffer
• 30% Buffer
|
4% minimum Trigger Rate
|
|
Russell 2000® Index(1)
|
U.S. small-cap equities
|
||||
|
Nasdaq-100® Index(1)
|
U.S. & international
non-financial large-cap
equities
|
||||
|
S&P 500® Index(1)
|
U.S. large-cap equities
|
6-year Term
|
Point-to-point
with step-up
|
• 10% Buffer
• 20% Buffer
• 30% Buffer
|
8% minimum Trigger Rate
|
|
Russell 2000® Index(1)
|
U.S. small-cap equities
|
||||
|
Nasdaq-100® Index(1)
|
U.S. & international
non-financial large-cap
equities
|
||||
|
Index
|
Index Type
|
Crediting
Period
(Term
Length)
|
Index
Crediting
Methodology
|
Current Limit on
Index Loss
(if held until
Term End Date)
|
Minimum Limit on Index Gain
(for the life of the Index
Option)
|
|
Index Precision Strategy
|
|||||
|
S&P 500® Index(1)
|
U.S. large-cap equities
|
1-year Term
|
Point-to-point
with step-up
|
10% Buffer
|
3% minimum Trigger Rate
|
|
Russell 2000® Index(1)
|
U.S. small-cap equities
|
||||
|
Nasdaq-100® Index(1)
|
U.S. & international
non-financial large-cap
equities
|
||||
|
EURO STOXX 50®(1)
|
Eurozone large-cap equities
|
||||
|
iShares® MSCI Emerging
Markets ETF(2)
|
International emerging
markets equities
|
||||
|
Index Guard Strategy
|
|||||
|
S&P 500® Index(1)
|
U.S. large-cap equities
|
1-year Term
|
Point-to-point
with Cap
|
-10% Floor
|
3% minimum Cap
|
|
Russell 2000® Index(1)
|
U.S. small-cap equities
|
||||
|
Nasdaq-100® Index(1)
|
U.S. & international
non-financial large-cap
equities
|
||||
|
EURO STOXX 50®(1)
|
Eurozone large-cap equities
|
||||
|
iShares® MSCI Emerging
Markets ETF(2)
|
International emerging
markets equities
|
||||
|
Index Performance Strategy
• For Contracts issued before October [DD], 2026, all 1-year Term Index Options listed below are available. Additionally, only the
3-year Term with 10%,
20%, and 30% Buffers for the S&P 500® Index
and Russell 2000® Index are available; and only the 6-year Term with 10%, 20%, and 30% Buffers for the
S&P 500® Index and Russell 2000® Index are
available.
• For Contracts issued since October [DD], 2026, all 1-year, 3-year, and 6-year Term Index Options listed below are available.
|
|||||
|
S&P 500® Index(1)
|
U.S. large-cap equities
|
1-year Term
|
Point-to-point
with Cap
|
• 10% Buffer
• 20% Buffer
• 30% Buffer
|
3% minimum Cap(3)
|
|
Russell 2000® Index(1)
|
U.S. small-cap equities
|
||||
|
Nasdaq-100® Index(1)
|
U.S. & international
non-financial large-cap
equities
|
||||
|
EURO STOXX 50®(1)
|
Eurozone large-cap equities
|
||||
|
iShares® MSCI Emerging
Markets ETF(2)
|
International emerging
markets equities
|
||||
|
S&P 500® Index(1)
|
U.S. large-cap equities
|
3-year Term
|
Point-to-point
with Cap and
enhanced
upside
|
• 10% Buffer
• 20% Buffer
• 30% Buffer
|
• 5% minimum Cap(3)
• 100% minimum Participation
Rate
|
|
Russell 2000® Index(1)
|
U.S. small-cap equities
|
||||
|
Nasdaq-100® Index(1)
|
U.S. & international
non-financial large-cap
equities
|
||||
|
Index
|
Index Type
|
Crediting
Period
(Term
Length)
|
Index
Crediting
Methodology
|
Current Limit on
Index Loss
(if held until
Term End Date)
|
Minimum Limit on Index Gain
(for the life of the Index
Option)
|
|
S&P 500® Index(1)
|
U.S. large-cap equities
|
6-year Term
|
Point-to-point
with Cap and
enhanced
upside
|
• 10% Buffer
• 20% Buffer
• 30% Buffer
|
• 10% minimum Cap(3)
• 100% minimum Participation
Rate
|
|
Russell 2000® Index(1)
|
U.S. small-cap equities
|
||||
|
Nasdaq-100® Index(1)
|
U.S. & international
non-financial large-cap
equities
|