What will be covered in this review?
In this review, we’ll cover the following information on the Allianz Life Core Income 7 Annuity:
- Product Type
- Current Rates
- Realistic long term return expectations
- How It Is Used
- How It Is Most Poorly Used
We make the complex, simple.
If you’ve been considering a financial product that can provide you with principal protection, the opportunity for increased growth (as versus CDs or other fixed investments), and the ability to obtain a guaranteed, ongoing stream of income in retirement, then the Allianz Core Income 7 Annuity may be a good option for you.
But, before you move forward with purchasing this annuity – or for that matter, any annuity – it can be helpful for you to have a deeper understanding of how these financial vehicles work, and how they may or may not work for you and your specific financial related goals.
Throughout the past several years, annuities have become increasingly popular as a way to provide a guaranteed income stream in retirement – and because of that, the number of insurance and financial advisors who are offering them has expanded a great deal. However, this may not necessarily be a good thing for consumers, because even though advisors – for the most part – work to do the right thing for their clients, they may not always be offering you the best answers to what you need to know about buying a fixed indexed annuity.
In addition, due largely to their growing popularity, the list of annuity products that are available in the marketplace today is growing ever longer – and many of these annuities can be confusing to understand, even for well-educated consumers.
With that in mind, it is important that you have a deeper knowledge of what you are getting into, particularly because an annuity could involve a large chunk of your overall retirement savings. On top of that, all annuities should be considered a long-term endeavor, and once you have purchased one, you could face fees and/or penalties if you want to get out of it.
Annuity and Retirement Income Planning Information That You Can Trust
If this is this very first time that you have visited our website, we’d like to personally welcome you to AnnuityGator.com. We comprise a team of experienced financial professionals who are focused on offering you very comprehensive and unbiased annuity reviews. We have been offering these in-depth annuity reviews for many years on our website, and because of that, we have become a highly trusted source of information.
If you have been searching for any information regarding annuities on the Internet, then it is probable that you have run across some conflicting details about these financial products. This, however, is not entirely surprising, because there are many details floating around out there.
It is possible that you may also have recently attended a seminar on annuities, where you were provided with lunch or dinner, and listened to a presentation about the many benefits of fixed indexed annuities – which could have even led to making an appointment with the advisor who presents the program to you. This, in turn, could be what has prompted you to seek additional information online about an annuity that you are considering purchasing.
Even though there are many very good websites that are devoted to marketing their annuity products online, there are some sites that may try to “lure” you in and provide them with your contact information by offering various bold claims, such as:
- Highest annuity payouts
- Low fees
- Guaranteed income for life
- Top Rated Annuity Companies
- Get an Annuity Quote Now!
Even though these claims may sound great, it is imperative that, prior to making an annuity purchase, you seek out whether or not these are actually true. In order to do that, it may require you to wade through a seemingly endless array of “fine print” that in some instances, could make annuities even more confusing.
However, if you are here to find more information on the Allianz Life Core Income 7 annuity, then you have definitely come to the right place. In fact, dare we say that this particular website is the only place where you can find out all of the in-depth details – which don’t just include all the advantages, but the drawbacks of the annuity as well. Knowing this can help you in determining, then, whether or not the Allianz Core Income 7 is or is not the right annuity for you.
Often, insurance agents who sell fixed indexed annuities will tend to tout all of the product’s benefits, such as the opportunity for index-linked growth and protection of principal during volatile market times. But, they may end up leaving out the details that pertain to the drawbacks of the annuity. So, prior to moving a sizeable chunk of your hard earned retirement savings into one of these products, wouldn’t you like to know the whole story?
Just to reiterate, fixed indexed annuities can, in fact, have some great advantages – but this is only so if they fit into your overall financial plan. So, with that in mind, you not only need to know how an annuity can work but why you may choose it from a long list of other possible options.
This annuity review is here in order to assist you with better understanding all of the fixed indexed annuity’s small print. Knowing this can help you in making a yes or no decision regarding the Allianz Core Income 7 Annuity.
So, if you are ready to get started, let’s dive right in!
Allianz Core Income 7 Annuity
|Product Name||Core Income 7 Annuity|
|Type of Product||Fixed Indexed Annuity|
|Standard & Poor's Rating||AA|
|Phone Number||(800) 950-5872|
Opening Thoughts Regarding the Allianz Core Income 7 Fixed Indexed Annuity
Allianz Life Insurance Company has been in the business of offering wealth accumulation and protection products since 1890. With its long history in the insurance industry, the company has built up a strong foundation, as well as a reputation for attracting and retaining policyholders.
Today, the company has approximately 82 million clients in 70 countries around the globe, and it is considered to be one of the world’s strongest financial communities. Allianz has attained, and maintained, high ratings in both good and bad economic times. As of year-end 2015, the company was rated as an A+ by A.M. Best, an AA from S&P, and an A2 by Moody’s. It has also been an accredited company of the Better Business since 1972 and has a grade of A+ via the BBB.
Because of the constant ups and downs of the market over the past decade or so, the demand for fixed indexed annuities has grown significantly – primarily as a way for individuals to capture a higher potential return, while at the same time keeping principal safe.
But, even though this can at first sound like a “best of both worlds” scenario if it sounds too good to be true, it is essential to take some precautions prior to moving forward – as you don’t want to discover the drawbacks when it’s too late.
Before we get into the gritty details, there are some required legal disclosures here…..
This is an independent annuity product review. It is not a recommendation to purchase or to sell an annuity. Allianz Life Insurance Company has not endorsed this review in any way, nor do we receive any type of compensation for providing this review. This annuity review is meant solely to be an independent review at the request of our readers so that they may see our perspective when breaking down the positives and the negatives of this particular annuity. Prior to committing to the purchase of any type of insurance and/or investment vehicle, it is critical that you do your own due diligence, and that you also talk with a properly licensed professional if you have any questions that relate to your specific situation. All of the names, materials, and marks that have been used in compiling this annuity review are the property of their respective owners.
For additional information on how to compare fixed annuities so that you can decide which may be the best one for you, contact us in order to obtain our free annuity report.
How Allianz Life Insurance Company Describes the Core Income 7 Annuity
According to the Allianz website, the Core Income 7 Annuity provides principal protection from market downturns, the potential for tax-deferred growth, options for lifetime retirement income, and a death benefit for your beneficiaries.
The site goes on to state that while you are saving for retirement, the Core Income 7 Annuity offers you the following benefits:
- Simplified indexing with point-to-point crediting
- Powerful indexed interest potential through five index allocation options (including a fixed interest allocation option)
And, when you are ready to start receiving income from the Core Income 7 Annuity, the product’s built-in benefit rider can provide you with:
- Increasing lifetime withdrawal percentages every year until you begin withdrawals, and
- Guaranteed income for life via lifetime withdrawals.
How a Financial Advisor May “Pitch” this Annuity
The Allianz Core Income 7 Annuity is a fixed indexed annuity that can help you to build up your retirement savings via potential interest and protection of principal. As with other types of annuities, the funds that are in your account can grow on a tax-deferred basis, which can also help money in the annuity to accumulate faster.
A fixed indexed annuity can also provide you with a guaranteed lifetime income in retirement, regardless of how long you may live. Because of that, you are assured of a continued income stream throughout your retirement years.
If an insurance or financial professional has approached you about the Allianz Core Income 7 Annuity, it is possible that he or she keyed in on certain beneficial features of the annuity such as its guaranteed income and/or the opportunity it can provide you for growth.
In fact, by glancing at the bullet points above, it may be that you feel that the Allianz Core Income 7 Annuity is an ideal option for you. However, if you have been offered this product by a commissioned sales person, then it is likely that they are going to present it to you by highlighting all of its positive features.
But, when you take a much closer look, once you have gotten a bit deeper into all of the details, you may begin to realize that the product is not as “ideal” as it sounded at first. For example, while the Allianz Core Income 7 Annuity offers several methods of increasing your return that is based on market-related performance, the product will also “cap” this return at a certain amount. Therefore, even if the underlying index (or indexes) that your annuity is tracking have a stellar year, you won’t be able to fully take part in that growth.
Also, while you could help yourself to increase your retirement income down the road, the annuity’s built-in benefit rider has an additional cost on top of your regular premium amount, which could, in turn, have an impact on the amount of money that you actually receive. For example, according to the product’s brochure, the annual charge for the Core Income Benefit Rider is 1.05% of the contract’s accumulation value, deducted monthly from the accumulation value and guaranteed minimum value. With the purchase of any additional cost riders, the contract’s values will be reduced by the cost of the rider. This may result in a loss of principal and interest in any year in which the contract does not earn interest or earns interest in an amount that is less than the rider’s charge.
So, while safety of principal, the opportunity for growth, and a lifetime income guarantee are very key, the truth is that these features can also be found on any number of fixed indexed annuities and if you are able to find these features, but at the same time ensure that your return may not be impacted as much – then it could be worth taking a look at the possible alternatives.
In that case, if you are still not 100 percent positive of whether or not the Allianz Core Income 7 Annuity is the right product for you, and you also want to answers to any additional questions that you may have about this annuity, then please feel free to reach out to us via our secure contact form here.
We certainly understand that annuities can be challenging to understand – even for well-educated consumers. But, when trying to decide what to do with a large percentage of your retirement portfolio, it is critical that you know just exactly what you may be getting into.
So, if you would like to have any additional information, along with the assurance that you know what it really is that you are purchasing, click here now to download our free report on what you need to know prior to purchasing an annuity.
What About the Fees on the Allianz Core Income 7 Fixed Indexed Annuity
On top of knowing how your funds may perform in a fixed indexed annuity, it is also essential that you know what type of fees you may be charged, as well as how much and when. This is because fees can enter the picture both during the annuity’s accumulation phase, as well as after you have converted it to an income stream.
Just some of the fees that you can find on a fixed indexed annuity include a sales commission for the agent who sold it to you, as well as various administrative and/or annuity contract charges.
Also, if you opt to take out some or all of your money from the annuity during the first several years, you are also likely to run into surrender charges – on top of any tax that could be due. The surrender charge on the Allianz Core Income 7 Annuity has seven years of surrender charges. This means that if you want to withdraw any more than 10 percent of the money in your annuity contract, you will be charged a surrender fee. The surrender fee schedule is:
Source: Allianz Life (http://www.allianzlife.com/annuities/fixed-index-annuities/core-income-7/how-the-product-works)
The Annuity Gator’s End Take on the Allianz Core Income 7 Annuity
Where it works best:
This particular annuity will usually work the best for those who are looking for:
- Safety of principal
- The opportunity for index-linked growth
- Guaranteed lifetime income in retirement
Where it works the worst:
The Allianz Core Income 7 Fixed Indexed Annuity may not be an ideal fit for you if you are looking for:
- Access to most or all of your money within the first seven years
- Do not intend to use the lifetime income feature of the annuity
In order to truly get an idea of whether or not a fixed indexed annuity such as the Allianz Core Income 7 is right for you, click here so that you can access our free annuity buyer’s report.
There are many different criteria that need to be considered if you are determining which – if any – annuity may be right for you. In any case, annuities should also be considered to be long-term financial vehicles and because of that, it is essential that you feel confident of how this type of product may help you get closer to your intended retirement goals.
When you are considering a fixed indexed annuity, you can be comfortable in that your principal is safe from market fluctuations, as well as in that you can set it up to provide you with an ongoing retirement income. Given that, you can also attain the security that you won’t run out of income in the future.
With regard to the Allianz Core Income 7 annuity, there certainly can be some advantages available. However, this annuity may still also fall somewhat short, and quite honestly, there may very well be some better options that are out there for you – primarily if you are in search of guaranteed lifetime income, along with the opportunity for growth.
If you still have any unanswered questions about the Allianz Core 7 Annuity and whether or not it is the right annuity for you – or even if you just simply would like to get some additional assistance in guiding you in the right direction, then please feel free to contact us directly via our secure contact form here.
Any Additional Questions on the Allianz Core Income 7 Fixed Indexed Annuity?
We know that this annuity review of the Allianz Core Income 7 annuity may have been a tad bit longer than usual. But, we would much rather that you have too much information on this product than to not have enough. So, if you found this annuity review to be beneficial, please feel free to pass it on and to share it with other people who could also find value in it.
Also, we realize that annuity information can – and often times does – change on a regular basis. Therefore, if you happened to see any information in this review that may need to be revised or updated, please let us know and we will be happy to make any of the necessary corrections.
Likewise, if this review caused you to be more confused about annuities and how they work – or if by reading through the review, it prompted some additional questions, please click here and let us know that, as well.
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