Allianz MasterDex X Annuity offered by Allianz

Type of Product Indexed Annuity
Product NameAllianz MasterDex X Annuity
Offered byAllianz
Company Info

Founded in 1896 and based i... read more

Contact Information
Company OfferingAllianz
Company TypeInsurance Company
Phone Number800-950-5872
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Reviews and Ratings
Average Review

4.666665/5 from 3 Reviews

Product Ratings and Reviews

Average: 5 (1 vote)

Is it possible that Allianz has pulled-off something that most or all of the variable annuity providers have been unable to achieve with their living benefit riders?

It may in fact be the case because the Simple Income III optional rider seems to provide an inflation adjusted lifetime income option.

Simple Income III is an option available to owners of the Masterdex X indexed annuity.

There are 3 options available through the Simple Income III rider.  The third option ("Income Option 3") allows the withdrawals or income payments to increase up to 10 percent each year.

The potential increase in the income level is based on the consumer price index (CPI).  

Not entirely sure if there is a 1-to-1 relationship between any rise in the consumer price index and the increase in income payments.

Income payments can last up to 20 years from the date that they begin.

Not entirely perfect, but inflation adjusted lifetime income is certainly a step in the right direction.

3,652 reads
Average: 4 (1 vote)

A response to the earlier review praising the Simple III income rider.

The income guarantees come, of course, at a cost.

The rider costs 75 basis points or .75 percent.  This is pretty significant given the levels of income that are involved.

For example, there are caps on the allowable withdrawal percentages that seem to vary based on age and whether payments are being made to an individual or to a couple (joint and survivor).

In previous versions of the rider, these caps ranged from 4 percent to 6 percent.

Not entirely sure how the inflation adjusted option that the other reviewer describes works, but recent CPI levels have been around 2 percent or so. Assuming that the contract owner received the full CPI index credit, you're talking about a 2 - 2.5 percent gross credit at a cost of 75 basis points.  

This seems to leave a net income level of less than 2 percent?

Come to think of it, the inflation adjusted income option will always lag the CPI-based level of inflation due to the 75 basis point cost.  This could add up over a decade or so.

1,968 reads
Average: 5 (1 vote)

Some feedback in light of the review that criticizes the Masterdex X annuity based on cost.

75 basis points for a lifetime income rider is actually pretty reasonable on a comparative basis.

Many of the variable annuity products on the market right now have living benefit riders that cost as much as 1.25 - 1.5 percent.

.75 percent for various forms of lifetime income guarantees is not out of line.

I'm always amazed by people who think these insurance / lifetime income guarantees should be free or next to free.  Of course it costs something to contractually guarantee income for the remaining lifetime of an individual or couple.

If it was so simple and inexpensive then everyone in the financial services industry would be providing these guarantees.  This would create the "race to the bottom" that exists in the mutual fund and ETF business.

You get what you pay for and the market is not completely irrational. Actively managed mutual funds should cease to exist and passive funds should be offered for less than 20 basis points.

Providing lifetime income at 20 basis points may well be in the cards in the future, but the market is just not there yet.

2,082 reads

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