A Dear John Letter without Financial Consequences
Being that it’s a fixed index annuity, the Allianz 222 basically offers a “best of both worlds” scenario. Here, you have the opportunity to obtain index-linked returns, based on the performance of the underlying index strategy you choose. But, if the market tanks, you don’t lose value in the account. In fact, the worst you can do is 0%, even in a down market. So, what’s the tradeoff here? One is that the 222 annuity from Allianz imposes a fairly long surrender period, along with a hefty surrender charge for the first several years. Because of that, you need to really be sure that this is the right annuity for you over the long term. If not, it’ll cost you!Allianz 222 Surrender Charges
Beginning Contract Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11+ |
---|---|---|---|---|---|---|---|---|---|---|---|
Charge % | 10 | 10 | 10 | 8.75 | 7.5 | 6.25 | 5 | 3.75 | 2.5 | 1.25 | 0 |