As we continue to review the best life insurance carriers in the nation, our focus today is on Allianz Life Insurance Company of North America. The name Allianz is relatively well known, but it’s not usually from a life insurance perspective, but rather for their focus on annuities and and retirement.
The truth is, their life insurance products fit snug within their own retirement and income planning, and can be used as one of their tools to utilize. However, this may be the only fit. Here is our Allianz Life Insurance Company review for this year. As always, remember to research thoroughly for the right company and the right policy for you and your family.
The company you choose, the price you pay, and the quality of life insurance you buy are all tied together. Let’s see if Allianz is right for you.
Our Allianz Life Insurance Company Review
For nearly twelve decades, Allianz has been helping consumers to plan their futures, and mitigate their risks financially. Born of the global company, Allianz SE, who was founded in 1890, Allianz is a part of one of the largest companies in the world. Allianz SE operates in more than a third of all countries worldwide, and assists more than 85 million customers.
The Allianz Life division alone has more than $137 billion in assets.
The strong financial institution behind it, as well as it’s focus on success has allowed the company to be awarded “A” ratings from three of the four major credit rating agencies. A.M. Best recently upgraded Allianz Life Insurance Company an “A+,” Standard and Poor’s has awarded them an “AA,” and Moody’s has given them an “A2” in their most recent poll.
Life Insurance Products Available
Because of it’s hyper focus on accumulation and retirement planning, Allianz Life isn’t like most other life insurance carriers. The products they offer reflect it, as well.
Allianz focuses primarily on universal life, namely their fixed indexed universal life product. The two main fixed IULs, the Allianz Life Pro+ and the Allianz Life Pro+ Survivor, aim to provide two main aspects:
- Death Benefit
- Cash Accumulation
The major difference between the two is the Survivor policy covers two lives, not just one.
The Pro+ is available for a wide range of applicants, from ages 0 up the age of 80. With death benefits ranging from as low as $100,000 and going has high as $65M, the products’ availability is widespread. But, don’t let this translate to you as it being a fit for everyone; this product is for accumulation, and fits a smaller, specific demographic.
The policy starts with a 10-year no lapse guarantee, meaning on time payments for the first 120 months guarantees an in-force policy over the same duration.
Because it doesn’t operate like a typical term policy, there are fees and charges you’ll need to be aware of. Included among those are:
- a 5% premium charge deducted at each month’s payment
- a $7.50 monthly charge
- both monthly insurance and expense charges based on your particular health class, gender, and age.
As with many kinds of policies from many different carriers, this policy also includes an early access to cash for chronic or terminal illnesses.
Other options include:
- Inflation Protection
- Waiver of Premium (rider details)
- Children’s Rider (rider details)
- Liquidity and Loan Riders
- and more.
On the investment side, consumers have choices between the S&P 500 Index, Barclays US Dynamic Balance Index II, and other blended index options. However, there is a limitation on changing funds, where an insured may only modify their positions on the policy anniversary.
As with any IUL, always check the products specifications for crediting styles, caps, participation rates and other fundamentals.
What About Term Life?
While Allianz does offer a Term Life option (the Term Pro+), it’s important to note it’s not actually underwritten by Allianz.
The Term Pro+ life insurance contract is underwritten by Banner, a subsidiary of Legal & General. Here are more details of the term product offered by Allianz Life Insurance Company of North America:
- Duration of 10 to 30 years
- Issue ages are from 20 – 65, with the exception of the 25 and 30 year options
- Distinct ratings for tobacco and non-tobacco applicants
- Death benefits from as little as $100,000, up to $10,000,000 in total coverage
The Accelerated Death Benefit rider is also available, as it is with most every company. However, only in the 2nd through 5th policy years can one exchange the term product for a more permanent solution, which is not as flexible as many other providers.
This, again, shows the urgency Allianz has in promoting their retirement focused life insurance products, rather than strict coverage options.
Final Thoughts on Allianz
A trust name and brand, Allianz Life lends itself to the market as being a financially strong life insurance company. Of course, size alone does not mean a company is worthy of your business, unless you are absolutely sure they are the best value, most suitable, and easily accessible both now and in the future.
For a very select group, Allianz Life provides a product with great potential for protection and growth. However, with a limited product line, many won’t find what they’re looking for in Allianz Life Insurance Company.
If term life is what you need, you’ll find very competitive rates by more term life focused carriers, and there are several other no exam companies who might be able to offer the same benefits with faster issuing times and less underwriting.
|Company Name (and Subsidiaries)||Allianz SE (Parent)|
Allianz Life Insurance Company of North America
Allianz Life Insurance Company of New York (NY Only)
Allianz Life Financial Services, LLC
|Company Ratings||A.M. Best (A+)|
Moody’s Investors Services (A2)
Standard & Poor’s (AA)
|Headquarters (Address, Phone, Web)||5701 Golden Hills Dr|
Minneapolis, MN 55416-1297
|Policy Types Available||Term|
Fixed Indexed Universal