5 Ways the Allianz Life Pro+ Elite Will Strengthen Your Client’s Portfolio

5 Ways the Allianz Life Pro+ Elite Will Strengthen Your Client’s Portfolio

Allianz kick-started 2018 with the launch of two new life insurance products: Allianz Asset Pro+ and Allianz Life Pro+ Elite.

The Life Pro+ Elite product replaced the Life Pro+ (version 7) product. Life Pro+ (version 7) will only be available for premium finance cases going forward, with the exception of any state that has not yet approved the Life Pro+ Elite product.

5 Key Benefits of Allianz’ New FIUL Product:

1. 15% guaranteed bonus starting policy Year 1

2. High cap rates in excess of 20%

3. New index allocation providing higher returns during periods of rising interest rates

4. Lower expense charges (also called per unit or per thousands)

5. Up to 10 times base supplemental term rider

1. 15% guaranteed bonus starting policy Year 1

A guaranteed interest bonus (available on certain index allocation options) will be credited beginning in policy Year 1 on the first policy anniversary and every policy year thereafter. The interest bonus is guaranteed to be equal to 15% of any interest credited in that policy year and is guaranteed for the life of the policy. This does not, however, guarantee a bonus credit each year because it is based on the growth of an index. The bonus credit is spread across all allocations.

A distinguishing factor of the bonus is that it is applied to loaned as well as unloaned values. This means that the entire accumulation value will be credited a bonus, instead of only the unloaded portion, assuming your client has chosen an index allocation that includes the bonus.

2. High cap rates in excess of 20%

The new Life Pro+ Elite will have higher cap rates than its predecessor versions thanks to an elimination of the expense spread between what Allianz earns on their general portfolio and what they provide to the client in form of a fixed interest credit or what they use to purchase options. The current cap rate on the Blended Index Annual Point to Point is increasing from 15% on the current Life Pro+ to 20% on the new Life Pro+ Elite. In addition, the client would also receive the 15% guaranteed interest bonus starting policy Year 1. The client may choose to go with the standard un-bonused Blended Index which has an even higher cap rate of 24%.

The Allianz Life Pro+ Elite also offers two uncapped index options with current participation rates of 135%.

3. New index allocation providing higher returns during periods of rising interest rates

A new addition to the Allianz indexed allocation line up is the Pimco Tactical Balanced Index. This new index is comprised of three separate components: 1) S&P 500 Index 2) PIMCO Synthetic Bond Index 3) Cash. Similar to the Bloomberg US Dynamic Balance Index, the Pimco Tactical Balanced Index is volatility controlled to provide smoother growth by limiting 0% returns and maximizing returns in bull equity markets. What sets the new Pimco Tactical Balanced Index apart is the duration overlay on the bond component which allows for varied bond durations based on increases or decreases in interest rates. This may provide a great amount of value in a rising interest rate environment when compared to other volatility control index options on the market.

4. Lower expense charges (also called per unit or per thousands)

The monthly expense charge is a per $1,000 charge of your policy's specified amount, and is based on factors such as the insured's gender, age, specified amount, and risk class. The expense charge is calculated at the time of policy issue. The expense charge is deducted from the Current Accumulation Value for the forst 12 policy years, and from the Guaranteed Accumulation Value for the life of the policy.

While the expense charges are going down, the Allianz Life Pro+ Elite will have higher premium loads years 1-9 when compared to the current Life Pro+ IUL. In addition the expense charges will last for 12 years rather than 10 years. Lastly the surrender charge period is also going up from 10 years to 12 years.

5. Up to 10 times base supplemental term rider

The Supplemental Term Rider will add extra term insurance up to 10 times the base death benefit amount of the policy. The additional coverage is convertible into base coverage within the first 10 policy years or until age 75, whichever is sooner.

  • Issue age for this rider: 0-80
  • Must be elected at issue
  • Minimum rider specified amount: $25,000
  • No underwritting is required
  • Rider is not commissionable

Click the links below to read more about Allianz Life Pro+ Elite:

LifePro LogoAllianz Life Pro+ Elite Agent Guide

LifePro LogoAllianz Life Pro+ Elite Consumer Guide

LifePro LogoAllianz Life Pro+ Elite Positioning Piece

LifePro LogoAllianz Life Pro+ Elite Rates

LifePro LogoAllianz Life Pro+ Elite State Approval Guide

About Allee Marchini

Allee Marchini is a Marketing Coordinator at LifePro. She works with financial professionals on strategic marketing and branding campaigns to deliver relevant and timely content to their community.

View all posts by Allee Marchini

Disclaimer

This information is meant for educational purposes only.