If you want a more in-depth picture of how the Allianz 222 annuity really works before you actually sign on the dotted line, then it is important that you carefully read over the product’s Statement of Understanding, as well as the product illustration that you are given by your financial advisor (or the rep who is offering to sell you this annuity).
Unlike the fancy glossy product brochures or other marketing materials that discuss this annuity and all that it may be able to do for you, the Statement of Understanding for the Allianz 222 will provide you with much more in-depth detail on how this particular annuity actually operates.
What is an Annuity Statement of Understanding?
An annuity Statement of Understanding is an outline that discusses key items regarding the annuity you are considering, and how it works. It provides more comprehensive detail on items such as:
- The type of annuity it is (such as fixed, fixed indexed, variable, etc.)
- How your money can grow
- How the credits are calculated and applied to your annuity (for index contracts)
- If and/or how the threshold credit rates may be changed
- If and/or how the annuity’s value could go down due to losses in the index(es) that are chosen
- The guaranteed minimum value of the annuity
- Any other factors that could have an impact on the value of the annuity
- The annuitization value
- The cash surrender value and how you may receive it if you choose to cancel the contract
- A number of penalty-free withdrawals that you may access
- How you may receive the annuity’s full annuitization value
- Your option(s) for receiving annuity payments
- How any other benefits that are associated with the annuity work (such as a terminal illness and/or a nursing home benefit)
- What happens to your funds if the annuitant and/or annuity owner passes away
What is an Annuity Statement of Understanding?
An annuity’s Statement of Understanding is typically presented to you, along with a product illustration, before you buy an annuity. You can access an example of the Allianz 222 annuity illustration by going here.
With regard to the Allianz 222 annuity illustration, this information shows how index performance could affect the contract values over an extended period of time. It is important to keep in mind, though, that this is still just an illustration of hypothetical figures.
In fact, it is clearly stated within the document that, “This illustration is not intended to serve as a projection or prediction of future values, and the values shown are not guaranteed (unless specified as guaranteed).”
So, even though the returns could reflect how the annuity may perform, there is no guarantee. In addition, neither the statement of understanding nor the illustration is not an actual annuity contract.
It is only after you do decide to move forward with the purchase of the Allianz 222 annuity that you will be issued an actual contract with your annuity. In order to move forward with the purchase, it is required that you sign the illustration.
Then, both the Statement of Understanding and the Illustration are (or should be) submitted to the insurance company by your insurance or financial advisor as a part of the overall annuity application.
Factors to Consider About the Allianz 222 Annuity Statement of Understanding
Even with an in-depth description of what a Statement of Understanding and annuity illustration is and how they work, it can generally be even more helpful to take a good hard look at an actual example so you know what to expect.
In this example of the Allianz 222 annuity Personalized Annuity Hypothetical Illustration, you may notice that it shows how the changes in an external market index could affect the values, as well as the benefits, of the Allianz 222 annuity over a period of years.
So, in carefully looking over the information on these documents, it can be extremely beneficial in helping you to determine whether or not this annuity is right for you.
Just like when you read the brochure and/or other product materials that you may have been presented by your financial advisor, it is key to take note of both the large and the small print on the Statement of Understanding, as well as on the illustration.
In our Allianz 222 illustration example here, if you scroll down to the very bottom of each page, you will see that the fine print states that, “Values shown are not guaranteed (unless specified as guaranteed values). Caps, spreads, annual fixed rates, and annuity payout rates are subject to change. Actual values may be higher or lower than the hypothetical values shown.”
It also goes on to state that the illustration is not valid without all 10 pages and the Statement of Understanding. So when you’re reviewing the product information, it is important to be sure that all of the necessary pages are there and intact.
Still Confused About the Allianz 222 Annuity? Have Any Additional Questions?
While the fine print that is presented with any product is meant to provide you with more specific details, reading through it can be about as exciting as getting a root canal – and equally as painful.
So, if you’re considering the purchase of the Allianz 222 annuity – or any annuity for that matter – and you’d like a not-so-dry explanation of how the product works, as well as how it may (or may not) actually work for you, you can rely on the Annuity Gator Team to provide you with a clear (and unbiased) explanation.
Just simply click here on our secure contact form and let us know what additional information you would like, and our expert annuity geeks will do their best to make sure that you are able to make a confident and well-informed decision.
The Annuity Gator
P.S. We included a few more related links to the Allianz 222 below that you might find useful:
- Allianz 222 Annuity Complaints
- Barclays U.S. Dynamic Balance Index ll
- Independent, Objective Review of the Allianz 222 Annuity – [July 2019 Update]
P.P.S If you would like to read more of our Allianz annuity reviews here’s some links to check out:
- Allianz MasterDex X with Simple Income Rider Annuity
- Allianz MasterDex X Index Annuity
- Allianz Retirement Pro Variable Annuity
- Allianz Vision Variable Annuity
- Allianz Life 360 Annuity
- Allianz Life Core Income 7 Annuity
- Allianz Life Allianz Endurance Plus Annuity
- Allianz Master Dex 10 Annuity