Allianz Product Overview: Life Pro+

On Tuesday, May 24 th, 2016, Allianz released an improved version of Life Pro+, an accumulation-focused product. The new iteration benefits from a guaranteed index multiplier of 15% beginning in year 11 that replaces the product’s previous guaranteed interest bonus of 60 basis points. With the improvements in accumulation patterns due to the multiplier, Life Pro+ launches itself into the upper echelon of distribution-oriented products, particularly as the illustrated rate climbs higher.

Life Pro+ was already a top-tier offering for clients 50 and over, but its competitive positioning suffered dramatically with younger clients. The new index multiplier addresses this, as distributions rank well within the top quartile for nearly all clients and at or near the top when illustrated at 6% or higher.

Even before the multiplier takes effect in year 11, cash accumulation improves roughly 2-3% at year 10. The multiplier really shows its force at higher illustrated rates, though. At 5%, younger clients’ cash value at retirement improves by 2-4%. At the maximum illustrated rate of 7.09%, the improvement is as dramatic as 13%.

The mechanics of the 15% multiplier resemble those of Nationwide’s IUL Accumulator. If the index returns a 5% growth, the multiplier adds an additional 75 basis points, crediting the policy at 5.75% (5% x 1.15 = 5.75%). By the same token, however, a 0% index growth now returns a 0% credit as opposed to the 0.6% credit per the erstwhile interest bonus. Unlike Nationwide, the bonus is capped at 1%, which means illustrations at the maximum illustrated rate of 7.09% are credited at 8.09% after year 10.

Targets saw slight improvements for many non-smokers and dramatic improvements for most smokers but still ranked among the bottom half of competitors.

A new level ten-year term conversion rider was also added to Life Pro+.

Rates were uploaded to the LifeTrends website on Friday, May 27 th, 2016.