Allianz Alterity Variable Annuity offered by Allianz

Type of Product Variable Annuity
Product NameAllianz Alterity Variable Annuity
Offered byAllianz
Company Info

Founded in 1896 and based i... read more

Contract and Purchasing
Maximum Premium Payment1000000
Minimum Additional Premium Payment50
Ability to Select Asset AllocationYes
Total Number of Investment Options25 [Find annuities with more investment options]
Fixed Account
Features and Benefits
Free WithdrawalsYes
Free Withdrawal Limit12
Waiver of Withdrawal ChargesAvailable
Guaranteed Death BenefitAvailable
Are Telephone Transactions AllowedYes
Fees and Expenses
Minimum Total Fees and Expenses2.15 [Find annuities with lower fees and expenses]
Maximum Total Fees and Expenses4.09 [Find annuities with lower fees and expenses]
Minimum Mortality and Expense Risk Charge "M&E Fee"1.35 [Find annuities with lower mortality and expense fees]
Maximum Mortality and Expense Risk Charge "M&E Fee"2.3 [Find annuities with lower mortality and expense fees]
Administrative Fee40.00 [Find annuities with lower administrative fees]
Contract Maintenance Fee0.15 [Find annuities with lower contract maintenance fees]
Early Withdrawal Charges / Surrender Fees Request Access
Minimum Investment Management Fee0.65 [Find annuities with lower investment management fees]
Maximum Investment Management Fee1.64 [Find annuities with lower investment management fees]
Sales Compensation
Maximum Commissions7 [Find annuities with lower commissions] [Find annuities with higher commissions]
Contact Information
Company OfferingAllianz
Company TypeInsurance Company
Phone Number800-950-5872
Talk to a Financial Advisor
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Reviews and Ratings
Average Review

3.5/5 from 2 Reviews

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Product Ratings and Reviews

Average: 4 (1 vote)

The Alterity VA comes with a relatively high guaranteed annual increase that is part of the living benefit features.

Currently at 7 percent, the annual increase guarantee will effectively double your premium payments within a decade.

Not an insignificant feature as this minimum guarantee can serve as a sort of inflation hedge.

Other products in the market are generally below the 7 percent level with their guarantees.

Also, the "Prime Plus Reset" feature guarantees that if the value of contract is higher than what the 7 percent would provide (investment performance of the subaccounts exceeds 7 percent), then the value upon which the 7 percent increase applies will reset to the higher value.

3,321 reads
Average: 3 (1 vote)

The first review of the Allianz Alterity variable annuity highlights the benefits of the PRIME Plus living benefit option.

The problem with this living benefit feature--like almost all living benefit features--is that it is so darned expensive that it almost becomes irrelevant unless we return to 1990's style investment returns.

The 7 percent guaranteed annual increase is what it is.

For the PRIME Plus benefit to kick-in, net investment returns must presumably exceed 11 percent.

The reason is that the PRIME living benefit ranges in cost from a minimum of 2.2 percent to a maximum of 2.45 percent.  

Add investment costs to this (minimum .49 percent and max 2.53 percent) and total costs range from minimum of 2.69 percent to maximum of 4.98 percent.

The above does not even contemplate the 6 year surrender charge schedule that starts at 7 percent.

So, assuming middle of the road total expenses (and excluding surrender charges), gross investment returns would have to exceed 10.85 percent for the PRIME benefit to mean anything.  Good luck generating that return with a diversified portfolio.

3,390 reads

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