Allianz Life Insurance Training
GENDEX MOMENTUM
Allianz Life Insurance Company of North America
Foragent
agentuse
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Mission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
Allianz LIFE Products
Term 10 – 20 - 30 year (ROP)
Generation Planner – Low cost UL
Legacy Planner – Simplified Underwriting
GenDex Momentum – Cash Value
GenDex Survivor – Second to Die
For agent use only – not for use with the public
Mission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
Allianz LIFE Products
Term 10 – 20 - 30 year (ROP)
Generation Planner – Low cost UL
Legacy Planner – Simplified Underwriting
GenDex Momentum – Cash Value
GenDex Survivor – Second to Die
For agent use only – not for use with the public
Mission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
Agenda
GenDex MomentumSM Life Insurance Policy
• Crediting Methods
• Policy specs
• Six case studies
• Software
For agent use only – not for use with the public
Mission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
What makes FIUL different?
For agent use only – not for use with the public
Mission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
What makes FIUL different?
Other “moving parts”:
 Participation rate
- 10% index increase x 100% participation = 10% return
- 10% index increase x 50% participation = 5% return
- 10% index increase x 230% participation = 23% return
 Cap
- 10% index increase with an 8% cap = 8% return
- 10% index increase with a 14% cap = 10% return
 Fees
- 10% index increase with a 3% fee = 7% return
For agent use only – not for use with the public
Mission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
What makes FIUL different?
Three words: Indexed interest potential
Cash value earns interest based on external index(es).
NASDAQ 100
S&P 500
EUROSTOXX 50
Fixed Interest
5.25%
Blended Index
Universal Life Policy
For agent use only – not for use with the public
Mission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
What makes FIUL different?
Three words: Indexed interest potential.
Positive index return is credited to policy1
Gains are locked in each year
Negative index return equals 0% return on
policy.
For agent use only – not for use with the public
Mission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
What makes FIUL different?
Crediting interest
4 Crediting Methods
- Annual point-to-point
No single crediting method is best in all situations
For agent use only – not for use with the public
Mission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
What makes FIUL different?
Annual point-to-point
1110
1100
1083
1090
1080
1070
1060
1050
1040
1030
1020
1010
1000
990
980
970
960
950
940
930
1000
End Year 1
The hypothetical example is used to illustrate the crediting method only. It does not represent any
specific product or past performance. Actual performance will vary. This is not a guarantee of future
results.
For agent use only – not for use with the public
Mission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
What makes FIUL different?
Crediting interest
4 Crediting Methods
- Annual point-to-point
- Monthly sum
- Monthly average
- Fixed interest
No single crediting method is best in all situations
For agent use only – not for use with the public
Mission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
What makes FIUL different?
Monthly point-to-point
1110
1100
1090
1080
1070
1060
1050
1040
1030
1020
1010
1000
990
980
970
960
950
940
930
End Year 1
The hypothetical example is used to illustrate the crediting method only. It does not represent any
specific product or past performance. Actual performance will vary. This is not a guarantee of future
results.
For agent use only – not for use with the public
Mission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
What makes FIUL different?
Monthly sum
Assumed cap is 3.40%
Hypothetical
monthly index change
Month
1
2
3
4
5
6
7
8
9
10
11
12
Capped
monthly change
5.27
-2.00
2.00
-1.50
4.61
2.50
3.87
0.25
-3.00
-4.00
4.43
2.25
(The sum of capped monthly changes
equals the year’s indexed interest.)
+3.40
-2.00
+2.00
-1.50
+3.40
+2.50
+3.40
+0.25
-3.00
-4.00
+3.40
+2.25
+10.10%
The hypothetical example is used to illustrate the crediting method only. It does not represent
any specific product or past performance. Actual performance will vary. This is not a guarantee
of future results.
For agent use only – not for use with the public
Mission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
What makes FIUL different?
Crediting interest
4 Crediting Methods
- Annual point-to-point
- Monthly sum
- Monthly average
- Fixed interest
No single crediting method is best in all situations
For agent use only – not for use with the public
Mission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
What makes FIUL different?
1000
1020
Monthly Average
1110
1045
1081
1100
1090
1060
1080
1070
1045
1060
1050
1020
1030
1010
1000
990
980
970
960
950
940
930
985
1023
1040
1020
1015
1055
1025
997
1050
1015
1000
1025
1023
1027
1027
997
1055
985
1050
1060
1081
End Year 1
The hypothetical example is used to illustrate the crediting method only. It does not represent any
specific product or past performance. Actual performance will vary. This is not a guarantee of future
results.
For agent use only – not for use with the public
Mission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
What makes FIUL different?
Monthly average
Hypothetical example used to illustrate crediting method only. Does not represent any specific
product or past performance. Actual performance will vary. Not a guarantee of future results.
For agent use only – not for use with the public
Mission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
What makes FIUL different?
Crediting interest
4 Crediting Methods
- Annual point-to-point
- Monthly sum
- Monthly average
- Fixed interest
No single crediting method is best in all situations
For agent use only – not for use with the public
Mission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
Allianz GenDex MomentumSM Life Insurance Policy
Blended index
 Dow Jones Industrials (35%), Lehman Aggregate Bond
(35%), Euro STOXX 50 (20%), Russell 2000 (10%)
The Dow Jones EURO STOXX 50 Index's stated objective is to provide a blue-chip representation of leading corporations in the
Eurozone. The index covers 50 stocks from 12 Eurozone countries: Austria, Belgium, Finland, France, Germany, Greece,
Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain.
The Dow Jones Euro STOXX 50® is the intellectual property (including registered trademarks) of Stoxx Limited, Zurich,
Switzerland and/or Dow Jones & Company, Inc., a Delaware corporation, New York, USA, (the "Licensors"), which is used
under license. The financial instruments based on the Index are in no way sponsored, endorsed, sold or promoted by the
Licensors and neither of the Licensors shall have any liability with respect thereto.
The Dow Jones Industrial Average is a popular indicator of the stock market based on the average closing prices of 30 active
U.S. stocks representative of the overall economy.
Lehman Brothers Aggregate Bond Index is a market value-weighted index of investment-grade fixed-rate debt issues, including
government, corporate, asset-backed and mortgage securities, with maturities of one year or more.
Russell 2000® Index is an equity index representing 2,000 of the smallest companies within the larger Russell 3000® Index.
Often looked at as one benchmark for small stock investors. Russell 2000 is a registered service mark of Frank Russell
Company.
For agent use only – not for use with the public
Mission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
Protection with potential: monthly average
crediting with allocation to blended index
The chart below illustrates the performance of GenDex Momentum over the past 20 years using monthly
average crediting of the blended index. The columns indicate the year sampled, actual historical index
performance for that year, and corresponding GenDex Momentum annualized monthly average credits based
on an assumed 175% participation rate, 0% floor, and a 10-year death benefit guarantee. Also illustrated are
the credits using the 25% minimum guaranteed participation rate.
Year
Blended
Index – no
caps, no floor
Blended
Index 215%
par. rate &
0% floor
Blended
Index 25%
par. rate &
0% floor
Year
Blended
Index – no
caps, no floor
Blended
Index 215%
par. rate &
0% floor
Blended
Index 25%
par. rate &
0% floor
Dec 1988
15.75%
20.89%
2.43%
Dec 1998
14.73%
19.12%
2.22%
Dec 1989
21.45%
26.65%
3.10%
Dec 1999
19.85%
17.04%
1.98%
Dec 1990
-4.90%
0.00%
0.00%
Dec 2000
0.95%
0.00%
0.00%
Dec 1991
20.37%
27.89%
3.24%
Dec 2001
-3.48%
0.00%
0.00%
Dec 1992
6.36%
7.93%
0.92%
Dec 2002
-11.90%
0.00%
0.00%
Dec 1993
17.65%
20.15%
2.34%
Dec 2003
17.97%
12.46%
1.45%
Dec 1994
-2.16%
0.00%
0.00%
Dec 2004
5.70%
2.34%
0.27%
Dec 1995
23.62%
26.91%
3.13%
Dec 2005
5.23%
2.94%
0.34%
Dec 1996
16.41%
16.24%
1.89%
Dec 2006
11.94%
11.58%
1.35%
Dec 1997
20.72%
27.95%
3.25%
Dec 2007
5.77%
9.32%
1.08%
This example is provided for illustrative purposes only. Past performance is not an indication of future results.
Based on actual blended index returns. Assumes GenDex Momentum was available in 1988.
For agent use only – not for use with the public
Mission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
Allianz GenDex MomentumSM Life Insurance Policy
Annual
point-to-point
Monthly
average
Monthly sum
S&P 500
Yes
N/A
Yes
Nasdaq 100
Yes
N/A
Yes
Euro STOXX 50
Yes
N/A
Yes
Blended Index
Yes
Yes
N/A
Added flexibility
 Can reallocate on every contract anniversary
 Allocations can be made in 1% increments
For agent use only – not for use with the public
Mission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
GenDex Momentum provides:
 A death benefit to the beneficiaries
 NEW! Index choices (230% par. rate on monthly average!)
 Higher caps and illustrated rates
 Higher target premium (25%-30%)
 Shorter surrender periods
 Enhanced Early Liquidity
For agent use only – not for use with the public
Mission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
The GenDex Series can help provide solutions for:
 #1 - Supplemental Retirement Income
 #2 - Family Planning Strategies
 #3 - Universal Life Insurance Policy Rescue Strategy
 #4 - College Funding
 #5 - Wealth Transfer (single premium)
 #6 - Business Planning Strategies- Executive Bonus Plan
 #7 - Charitable Giving
 #8 - Business Succession Planning Strategies - Buy/Sell
For agent use only – not for use with the public
Mission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
Allianz GenDex MomentumSM Life Insurance Policy
Case Study #1: Supplemental Retirement Income
 Jim and Lori, both are healthy and 45 years old
 Two children
 Jim recently got a promotion at work
 Their total annual income is now $180,000
 Jim & Lori each used to contribute $4,000/yr to Roth IRAs
 They just recently purchased a new home with a $300,000
mortgage
This hypothetical example is provided for illustrative purposes only. Characters are fictional and are not
actual Allianz clients.
For agent use only – not for use with the public
Mission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
Allianz GenDex MomentumSM Life Insurance Policy
Here is an example of how GenDex Momentum could be a
good fit for Supplemental Retirement Income
Assumptions:
 45 year old male Preferred Plus Non-Tobacco Risk Class
 Face amount = $300,000
 Over fund the policy with $8,000 of annual premium
- Target annual premium $5,023.50
- Max non-MEC premium is $14,230.58
 Pay to age 65 and then take retirement income 66-85
This hypothetical example is provided for illustrative purposes only. Characters are fictional and are not
actual Allianz clients.
For agent use only – not for use with the public
Mission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
Allianz GenDex MomentumSM Life Insurance Policy
Case Study #2: Family Planning Strategies
 Dave and Katie are both healthy and 35 years old
 They have one child with another on the way
 Katie is a stay at home mom
 Dave’s annual income is $110,000
 Dave and Katie currently own a home with about $150,000
left on their mortgage
This hypothetical example is provided for illustrative purposes only. Characters are fictional and are not
actual Allianz clients.
For agent use only – not for use with the public
Mission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
Allianz GenDex MomentumSM Life Insurance Policy
Here’s an example of how GenDex Momentum could be a
good fit for Family Planning Strategies
Assumptions:
 35 year old male Super Preferred Non-Tobacco Risk Class
 Face amount=$250,000
 Add Additional Term Rider1 of $250,000 for 30 years to give Dave extra
death benefit at a more reasonable cost than with traditional cash value
insurance
 Add Child Term Rider1 ($10,000) to cover children
 Add Other Insured Term Rider1 for $250,000 to provide life insurance
coverage for Katie (Super Preferred Non-Tobacco)
1 Riders
are available at an additional cost.
This hypothetical example is provided for illustrative purposes only. Characters are fictional and are not
actual Allianz clients.
For agent use only – not for use with the public
Mission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
Allianz GenDex MomentumSM Life Insurance Policy
Case Study #3: Universal Life Insurance Policy Rescue
Strategy
 Edward is 50 years old in good health
 He purchased $200,000 current interest UL policy 15 years ago from
ABC Insurance Company - paying $200/month.
 Originally interest rate = 10%
 Current interest rate = 4%
 Cash surrender value = $25,000
 If Edward continues to pay $200/month, his policy will lapse at age 70
based on the current 4% interest.
 Edward’s goal is to have a policy build cash value and run to age 100.
This hypothetical example is provided for illustrative purposes only. Characters are fictional and are not actual Allianz clients.
For agent use only – not for use with the public
Mission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
Allianz GenDex MomentumSM Life Insurance Policy
Here’s an example of how GenDex Momentum would be a good fit for a
Universal Life Insurance Policy Rescue Strategy
Assumptions:
 50 year old male Preferred Plus Non-Tobacco
 Face amount of $200,000
 1035 exchange of $25,000 into GenDex Momentum
 Continue to pay $200/month
 GenDex Momentum will help accomplish Edward’s goals by utilizing an
FIUL policy with potential cash value accumulation
This hypothetical example is provided for illustrative purposes only. Characters are fictional and are not actual Allianz clients.
For agent use only – not for use with the public
Mission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
Allianz GenDex MomentumSM Life Insurance Policy
Case Study #4: College Funding
 Patty is a single mother 30 years old, very healthy.
 Has a 2 year old daughter named Emma.
 Patty would like to provide college funding for Emma when
Emma turns age 18.
 Her budget allows her to contribute $5,000/year for life
insurance coverage and college savings.
 Patty anticipates Emma will be in college for 5 years
This hypothetical example is provided for illustrative purposes only. Characters are fictional and are not
actual Allianz clients.
For agent use only – not for use with the public
Mission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
Allianz GenDex MomentumSM Life Insurance Policy
Case Study #5: Wealth Transfer
 Arthur is 60 years old and in average health.
 He has $500,000 that he would like to pass on to his
beneficiaries.
 It is important that the $500,000 continues to accumulate
before he passes it on.
 Arthur would like to be able to access that $500,000 in case
he needs extra cash for emergencies, LTC, retirement, etc.
This hypothetical example is provided for illustrative purposes only. Characters are fictional and are not actual Allianz clients.
For agent use only – not for use with the public
Mission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
Allianz GenDex MomentumSM Life Insurance Policy
Here’s an example of how GenDex Momentum could be a
good fit for Wealth Transfer
Assumptions:
 60 year old male Standard Nontobacco
 Single pay premium of $500,000 (MEC)
 Minimize death benefit to potentially increase accumulation
potential
 Initial death benefit = $1,055,000 (minimum face)
 The LTC Rider can be added at an additional cost
This hypothetical example is provided for illustrative purposes only. Characters are fictional and are not
actual Allianz clients.
For agent use only – not for use with the public
Mission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
Allianz GenDex MomentumSM Life Insurance Policy
Here’s an example of how GenDex Momentum could be a
good fit for College Funding
Assumptions:
 30 year old female Preferred Plus Non-Tobacco Risk Class
 Face amount=$250,000
 Pay $5,000 for 15 yrs (until Emma turns 18)
 Take income from yrs 16-20 (for five years of college)
This hypothetical example is provided for illustrative purposes only. Characters are fictional and are not
actual Allianz clients.
For agent use only – not for use with the public
Mission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
Allianz GenDex MomentumSM Life Insurance Policy
Case Study #6: Business Planning Strategies
 XYZ Company uses Executive Bonus (Section 162) Plans to
attract, motivate, and retain key employees
 Roger, a 45 year old key executive of XYZ Company, has
elected to participate in the Executive Bonus Plan.
 When XYZ hits their goals each year, they agreed to
contribute $100,000 into Roger’s plan.
 Roger needs life insurance to protect his family and to help
him save for retirement.
This hypothetical example is provided for illustrative purposes only. Characters are fictional and are not
actual Allianz clients.
For agent use only – not for use with the public
Mission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
Allianz GenDex MomentumSM Life Insurance Policy
Here’s an example of how GenDex Momentum would be a
good fit for Executive Bonus (section 162) Business Planning
Assumptions:
 45 year old male Preferred Plus Nontobacco
 XYZ Company plans to pay $100,000/year to Roger’s age 65
 Roger will take retirement income from ages 66-85
 Roger needs $6,000,000 in life insurance
This hypothetical example is provided for illustrative purposes only. Characters are fictional and
are not actual Allianz clients.
For agent use only – not for use with the public
Mission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional
Thank you for your time.
Allianz Life Insurance Company of North America
For agent use only – not for use with the public
For agent use only – not for use with the public
Mission: Allianz Life is the leading innovator of financial solutions for consumers who want protection, income, and the guidance of a trusted financial professional