Allianz Life Insurance Company of North America traces its roots to 1896. Based in Minnesota, the company currently has an “A+” (superior) rating with A.M. Best.
Now a subsidiary of Allianz SE, a large, Munich, Germany-based global financial firm, Allianz Life is best known in the United States for its fixed index universal life policies. Allianz also issues simpler term life policies.
Soccer fans may recognize the company’s logo from a series of sports stadiums around the world, including a stadium now under construction for a Major League Soccer team in Minneapolis.
Allianz Life may be a good fit for your life insurance needs, especially if you want your policy to serve several purposes in your future financial planning. Let’s take a closer look at the company to get a better idea.
Allianz Life Insurance Review: A Big Picture Approach to Coverage
One of Allianz’s most popular products is a fixed index universal life insurance policy. These whole life policies will accrue cash value over time, and the cash value can grow depending on the performance of specific market indices.
I recommend working with a personal financial advisor if you would like to unlock the potential of this kind of policy. You can learn a lot online, but only a personal advisor can help you weigh options as they relate specifically to your future plans.
Allianz Life’s fixed index universal coverage comes in two forms:
Option 1: Allianz Life Pro+
Allianz life Pro+ offers an income tax-free death benefit, like most other kinds of life insurance policies. Since it’s a whole life policy that accrues cash value over time, you can also use it as a vehicle for savings.
This cash value can also grow or decline along with the stock market which technically can make the policy a vehicle for investing.
The policy — which is available for people 80 and younger (75 or younger for tobacco users) — also allows riders that can help you customize the coverage to your specific needs.
The face value must be at least $100,000, but because of the investment component, the policy can grow in value.
The relationship between the death benefit and the policy’s invested cash value component can fluctuate with these kinds of policies, which is another reason to work with a professional advisor.
If you’re looking for simple, term life coverage, this isn’t the policy for you, but Allianz may still be a good fit as we’ll see below.
An Allianz Life Pro+ policyholder can choose to connect the policy’s cash value to several indices which include:
- Barclay’s U.S. Dynamic Balance Index ll
- Barclay’s Capital U.S. Aggregate Bond Index
- The S&P 500 Index
- A blended index that includes the Dow Jones Industrial Average (DJIA)
- Russell 2000 Index
- Euro Stoxx 50 Index.
Option 2: Allianz Life Pro+ Survivor
This policy can help insure two people at once. The death benefit would be paid after both policyholders have died.
This kind of policy appeals to couples who can save money compared to buying two separate policies. They work well if the policy’s beneficiary is someone other than one of the two policyholders.
To add some flexibility, these policies can be amended to allow for partial accelerated payout if one of the two policyholders is diagnosed with a terminal illness.
People from age 30 to 80 can apply. Like Allianz Life Pro+, the policy requires at least $100,000 in face value, but the added cash value can increase or decline based on market performance.
Both of these policies offer income tax-free death benefits, and the added cash value can be accessed for living expenses or loans later in life.
Because of the fluctuating cash value, payout options with these policies can vary, making them even more flexible:
- Level: The level option is the payout will be the specific amount that was listed on the policy when you purchased it regardless of what happens with the cash value. (You could still access the cash value, but its performance wouldn’t affect the death benefit.)
- Increasing: The increasing option allows your coverage amount to grow over time. This growth would be funded by the performance of the cash component.
- ROP: You can also choose a return-of-premium option which pays out the face value plus the premiums you have paid. This return of premium is also funded by the cash value portion of the policy.
Allianz offers these options to give its customers the flexibility to change their coverage as time passes and life changes.
Allianz’s Basic Term Life Coverage
Many of our life insurance clients need a simpler solution. Specifically, they want coverage in case they die unexpectedly, leaving behind family members who depend on them financially.
Term life insurance exists to fill this need. Term life does not include any added cash value or an investment component. You can simply pay your premiums and, in exchange, have coverage in force for a specific amount of time, also known as a term.
Allianz works with Banner Life, which is one of the top life insurance companies in the nation, to provide its Term Pro+ policies, which are available in every state except New York.
Life Insurance and Why It Matters
Allianz Life Insurance offers excellent products, but it won’t be the best fit for every shopper. Finding the right life insurance coverage can be tricky which is why independent agencies like ours exist.
We keep up with the market and the nuances of different insurers to help match you with the right coverage.
More and more people are searching for good life insurance, especially since most of would leave behind debt and other financial challenges for our loved ones to sift through if we died unexpectedly.
A life insurance payout is tax free and can provide a sense of security amidst the uncertainty of the future.
Calculating Your Life Insurance Requirements
Realizing your need for life insurance will be the first step.
After that, you’ll have to decide whether to get a simple term policy or something more elaborate like the Allianz universal policies we’ve discussed in this post.
Determining your coverage amount also matters. Your coverage will help set your premium, and more importantly, it’s the amount your beneficiary would receive if you died while the policy is in force.
A life insurance beneficiary can use the coverage amount as he or she chooses, but most people plan for their coverage to:
- Pay off debt, including the mortgage or auto loans.
- Replace income for living expenses.
- Plan for future expenses such as college tuition.
- Fund savings accounts or trust funds for dependents.
- Fund estate giving plans for things like scholarship funds or legacy gifts.
We recommend calculating all the things you’d want your insurance payout to cover as you decide on a coverage amount.
It’s not uncommon to have $1 million or $2 million in coverage, especially if you’re young and healthy and haven’t had time to save much money. It’s also common to have only $25,000 in coverage to pay for final expenses.
Allianz Life Insurance Company has provided quality insurance products for decades. In most cases, life insurance is much more affordable than applicants think.
If you have ever been denied life insurance from a company, don’t assume that you can’t get the coverage that you and your family deserve. The best term life insurance companies like Allianz and many others work to give life insurance to applicants in all forms of health and ages.
Even if you have health complications like diabetes, we can find a company that will give you the perfect policy for your needs.
Your health doesn’t have to keep you from getting the protection and peace of mind you and your family need.