New FIUL Product Offers Inflation Protection Rider and Low Guaranteed Loan Rate

MINNEAPOLIS–(BUSINESS WIRE)– Allianz Life Insurance Company of North America (Allianz Life) today announced the launch of Allianz Life Pro+^SM Fixed Index Universal Life Insurance Policy (FIUL). As the newest addition to the Allianz Life line of FIUL products, Life Pro+ helps consumers protect their life, accumulation potential and purchasing power.

In addition to the death benefit, which is provided income-tax-free to beneficiaries, Life Pro+ offers an optional Inflation Protection Rider unique to the FIUL industry, which is available at an additional cost at the time it is exercised. There is no cost if the rider is not exercised. Currently available in 29 states, Life Pro+ also provides the policyholder access to the cash value income-tax-free via policy loans¹. The 5.3 percent fixed participating loan rate is guaranteed, and among the lowest participating loan rates available within the industry.

The Inflation Protection Rider can provide an annual credit to the policy based on positive changes in the Consumer Price Index for Urban Areas, U.S. City Average (unadjusted) (CPI-U Index). Inflation is the number one retirement risk among retirees, according to the 2009 Risks and Process of Retirement Survey Report of Findings sponsored by the Society of Actuaries. Furthermore, at an assumed average of 3 percent annual inflation, $100,000 of purchasing power decreases by 14 percent in five years and by 45 percent in 20 years.

“Life Pro+ provides consumers with life insurance options that protect their family while offering an alternative way of accumulating on a tax-deferred basis,” said Jason Wellmann, senior vice president of Life Insurance Sales for Allianz Life. “Whether you’re focused on providing for your loved ones in the event of a tragedy or simply need assistance with addressing financial concerns that lie ahead, Life Pro+ has the customizable options to help meet specific needs.”

Some of the advantages of Life Pro+ include:

• Tax advantages, including income-tax-free death benefit to beneficiaries, cash value that grows tax-deferred, and policy loans from the cash value that are income-tax-free while the policy remains in force¹.
• Cash value accumulation that can earn interest based on a variety of index allocations (including an exclusive blended index), fixed interest, or both. With the built-in annual reset feature, any indexed interest received is locked in and can never be lost due to market volatility, meaning the policy’s value is guaranteed to never decrease due to negative index changes.
• New Select Index Allocations that offer higher caps or participation rates (available at an additional cost).
• Complete customization via optional riders, including a unique Inflation Protection Rider that can help protect purchasing power.
• Flexible premium payments to help meet financial goals. Premiums can be paid at any time and in any amount (subject to some limits), as long as policy expenses and cost coverage are met.
• Policy loans¹ – including a low 5.3 percent guaranteed participating loan interest rate – that can help supplement retirement income, college funding, financial emergencies or business planning.

In addition to these benefits, Life Pro+ policyholders benefit from better caps and/or participation rates since all hedging associated with the product is performed in house. Allianz Life’s in-house static and dynamic hedging allows for reduced expenses, more risk control, and the ability to purchase higher-grade bonds – all measures resulting in reduced expenses which is an advantage that is passed on to the end customer.

For more information about Allianz Life and Allianz Life Pro+, visit: www.allianzlife.com.

About Allianz Life
Allianz Life Insurance Company of North America has been keeping its promises since 1896. Today, it carries on that tradition, helping Americans achieve their retirement income goals with a variety of annuities and life insurance products. As a leading provider of fixed index annuities, Allianz Life is part of Allianz SE, a global leader in the financial services industry with nearly 155,000 employees worldwide. Based on its revenue, Allianz SE is the 20th largest company in the world (Fortune Global 500, August 2010).

¹ Policy loans will reduce available cash values and death benefits, and may cause the policy to lapse or affect any guarantees against lapse. Additional premium payments may be required to keep the policy in force. In the event of a lapse, outstanding policy loans in excess of un-recovered cost basis will be subject to ordinary income tax. Tax laws are subject to change. You should consult a tax professional.

Allianz Life Insurance Company of North America
Laurie Bauer
763-765-6174
laurie.bauer@allianzlife.com

Source: Allianz Life Insurance Company of North America