The name Allianz is relatively well known, but usually for its annuities and retirement solutions.
You may be surprised to learn the industry giant also offers a number of life insurance policies.
Whether or not Allianz is the right fit for you depends on a few key factors.
The company you choose, the price you pay, and the quality of life insurance you buy are all tied together.
In this review, we’ll help you to decide whether or not you should insure your family with Allianz by looking at its history, financial performance, and the products at its core.
Our Allianz Life Insurance Company Review
As we continue to explore the best life insurance carriers in the nation, we’ll start our review of Allianz with its history.
For twelve decades, Allianz has been helping consumers to plan their futures and mitigate their financial risks.
Born of the global company Allianz SE, which was founded in 1890, Allianz Life 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 company has also exhibited a commitment to community, giving over $2 million in grants and charitable gifts in 2017 and clocking in more than 16,000 volunteer hours.
Moreover, they have set high ESG standards, with firm environmental, social, and governance criteria in place.
Financial Strength and Ratings
One of the most crucial tests of a life insurance company involves assessing its financial strength.
To do so, we can look to their annual performance as well as their ratings.
The Allianz Life Insurance division alone has more than $159 billion in assets.
The strong financial institution behind Allianz Life, as well as its focus on success, has allowed the company to be awarded “A” ratings from three of the four major credit rating agencies:
Each of these ratings suggests Allianz is capable and likely to uphold its financial commitments both now and in the future.
The Better Business Bureau is another strong indicator of a company’s financial strength.
Unlike many companies in the industry, Allianz Life Insurance Company of North America is BBB-accredited, and it holds an “A+” rating from the organization.
Because of its hyper-focus on accumulation and retirement planning, Allianz Life isn’t like most other life insurance carriers.
The type of life insurance products they offer reflects the distinction, as well.
Allianz focuses primarily on universal life, namely their fixed indexed universal life product.
But before we dive into the intricacies of their universal coverage, here’s a quick overview of their term life insurance.
While Allianz does offer a term life option (the Term Pro+), it’s important to note the product is 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 $5,000,000 in total coverage
There is an Accelerated Death Benefit Rider, as with almost every company.
However, you can only exchange the term product for a more permanent solution in the 2nd through 5th policy years, which is not as flexible as many other providers.
Allianz offers three universal life products, which aim to provide two main aspects: a death benefit and cash accumulation.
Allianz Life Pro+ Elite
Allianz Pro+ Elite is a tax-advantaged policy which gives you access to the cash value and provides your beneficiaries a death benefit.
The death benefit can range anywhere from $100,000 to $65,000,000 in some cases, and coverage is available to applicants between ages 0 and 80.
It also comes with access to accelerated death benefit riders for chronic and terminal illnesses.
Other options include:
- Inflation Protection
- Waiver of Premium (rider details)
- Children’s Rider (rider details)
- Liquidity and Loan Riders
- and more.
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.
Note that you will be responsible for the following fees and charges:
- a 4-8% 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.
On the investment side, consumers have choices between the S&P 500 Index, Barclays US Dynamic Balance Index II, and other blended index options.
Allianz Life Pro+ Advantage
The Pro+ Advantage product is a fixed IUL product that protects you from losing money due to market volatility.
With its Index Lock feature, you can lock in indexed interest and avoid the risk of getting zero interest credit.
While the investment model differs, the rates, limits, and fees are the same for both policies.
This policy could be ideal for individuals looking to secure indexed interest.
Allianz Life Pro+ Survivor
Last but not least, Life Pro+ Survivor protects not just you, but your partner.
When both you and the other insured individual pass away, the death benefit is issued to your beneficiary.
This type of coverage can be a more affordable solution for couples looking to invest with their life insurance policies.
If one of the insured passes away first due to illness, the other insured individual can access a portion of the death benefit.
These policies can be taken out between ages 30 and 80 and come with a 12-year no-lapse guarantee.
Whether you’re looking to compare other companies’ term life and IUL products or purchase a different type of policy altogether, you have plenty of options.
It’s well worth your time to educate yourself on multiple companies and get quotes from a number of providers.
Take a look at the alternatives to Allianz below to get started:
- Haven Life: Consider Haven Life for affordable term life insurance with an easy online application and instant decision on coverage up to $3 million.
- Protective: If you want to compare more universal products, consider Protective. They offer four universal policies, with variable and indexed options.
- Northwestern Mutual: While Allianz lacks a whole life product, Northwestern Mutual excels at offering whole life policies with riders, conversion credits, and more.
As you can see, there are several benefits to partnering with Allianz for your life insurance needs.
Here’s a quick recap of some of the company’s most advantageous attributes:
- Credibility: Allianz is a company you can count on, with a phenomenal track record, strong credit ratings, and solid financial performance. If their past and present are any indicators, your life insurance is in good hands with Allianz.
- Products: Allianz’s life insurance, annuities, and retirement tools pair well together, allowing you to work towards securing you and your loved ones’ futures via several products.
- Universal policies: While many companies fail to offer universal life insurance, it is Allianz’s specialty.
- Transparency: Providers are often vague about the details of their policies, but Allianz lays out its terms, policy limits, eligibility requirements, and pricing clearly on its site, potentially saving you from a phone call or unnecessary meeting.
You should also consider some of the cons of purchasing life insurance from Allianz:
- Term life: While Allianz can connect you with a term life insurance policy, you aren’t actually getting your life insurance through Allianz, and you may find lower rates by getting a policy directly.
- Cost: Similarly, Allianz may not be the most cost-effective solution to your life insurance needs. It’s aimed at individuals prepared to spend money for their retirement rather than general life insurance shoppers looking to save money.
- Life insurance selection: While the company offers a variety of universal products, they lack the other basic life insurance policies many shoppers look to for protection.
A trusted name and brand, Allianz lends itself to the market as a financially strong life insurance company.
Of course, size alone does not mean a company is worthy of your business.
You should be absolutely sure they offer the best value and most suitable policy to meet your family’s needs.
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 need with Allianz Life Insurance Company.
Regardless of what type of policy you’re looking for, take a few moments to get quotes from other top life insurance companies.