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What's Covered in this Allianz 222 Annuity Review?

In today'due south review, we'll be covering the Allianz 222 Fixed Index Annuity with Protected Income Value.

The Allianz 222 is a fixed index annuity with available riders that provide lifetime income guarantees/death benefits and a few other bells and whistles.

If you've been pitched this annuity and are looking for all the info – good, bad, ugly and even a 35-minute video that shows exactly how to make up one's mind the REAL returns you might earn with this annuity – y'all're in the right place!

(Notation: Because this insurance company'due south name sounds so much like the word "alliance," information technology is sometimes referenced by those seeking more information equally Alliance annuities – or in this particular case, Alliance 222 annuity).

Why practice we specify real returns? One of the most concerning things about annuity sales today is the way these fiscal products are sometimes presented by financial salespeople.

Annuities provide benefits that a bourgeois retiree might find desirable, but they are sometimes sold with the promise of returns and potential fund performance that may not be entirely true.(But keep in mind that there are various charges on many annuity contracts that could lower the overall render, too. Some of these may crave y'all to contribute an additional corporeality of premium).

Also, considering the market place tends to motility up and down regularly, an index-linked annuity such every bit the Allianz 222 may have a improve return in some years over others.

For instance, a xxx% driblet like the one incurred during the Coronavirus outbreak tin can literally happen overnight. In this example, the marketplace was at an all-time loftier in mid-Feb 2020, only to incur daily 3- and four-effigy losses consistently throughout the following weeks. Ouch!

And as always, it'south of import to continue in mind that past performance is definitely no guarantee of the time to come results that you'll receive in most any fiscal vehicle.

This is peculiarly the example when it comes to your life savings.

Before you buy, information technology'south important you understand the savings and income components of the annuity, along with the divergence betwixt what financial salespeople say, and how the production actually works, so y'all can make up one's mind if the annuity is a good fit for you.

Be peculiarly careful if the financial salesperson tries to use this annuity every bit a replacement for an existing annuity you already own, only that still has surrender penalties and charges.

As the long-time sweetheart of the annuity industry, the Allianz 222 offers buyers a rather big bonus which tin sound attractive, but which you'll acquire presently is far from a costless tiffin.

Annuity and Retirement Income Planning Pedagogy You lot Can Actually Trust

A popular manner people are getting introduced to this annuity is through free local dinner seminars where fiscal salespeople send out thousands of direct mail pieces to invite folks generally ages 50 to 75 to a local restaurant for fiscal education and a free dinner.

Attendees are told nearly the how each of the annuity's components – taxation-deferred growth and income – could benefit them both before and subsequently retirement.

After the seminar presentation, the annuity sales agent encourages the seminar attendees to sign up for a free consultation where the Allianz 222 may be proposed as a possible choice for their retirement financial needs.

There are also a ton of annuity marketing websites advertisement either education on annuities or making bold claims that are also responsible for introducing many people to the Allianz 222.

For readers who have plant this website for the starting time time and don't know much near united states, we are an independent annuity enquiry house comprised of licensed annuity agents, researchers and self-proclaimed math geeks that accept joined forces to revolutionize the annuity industry.

We started AnnuityGator.com to publish the most comprehensive, independent annuity reviews on the web; and have been doing then longer than any of the (at present many) copycat sites out there.

If you stumble upon other "independent" "unbiased" or "impartial" annuity review websites, you lot'll know what we're talking nigh. 😉

We firmly believe that the financial industry has gotten too expensive, too complicated, and besides out of touch with actually helping people reach their goals.

We desire to alter the status quo and kickoff a loftier quality, low price, results-driven retirement planning revolution.

Now that we're acquainted, let's dig in!

Opening Thoughts On The Allianz 222 Annuity With Protected Income Value

For most 125 years, Allianz Life Insurance Company of North America has been helping Americans fix for their financial future. The visitor is a leading provider of retirement solutions – including annuities – which tin provide an income stream for life.

The company is a subsidiary of Allianz SE, a global financial services group that is based in Munich, Frg. The consistently high ratings earned past Allianz reflects the visitor'south financial stability and stiff residual sail. These include a(due north):

• A+ (Superior) from A.Grand. Best
• A1 from Moody'due south Investor Services
• AA (Very strong) from Standard & Poor'southward

In fact, you lot can check out the company'due south historical ratings that go all the way back to 2002 Hither.

When information technology comes to the Allianz 222 annuity, you might say that the Allianz 222 is like a Swiss Army Pocketknife – information technology does a lot of things okay, but it doesn't exercise any one affair really well.

In the by, people bought index annuities considering they were pitched as a manner to get market linked upside with no market downside.

At present that interest rates are super low, withal, the upside may exist somewhat limited.

Every bit a result, many insurance companies have pivoted to make their products more than nearly lifetime income guarantees. In terms of index annuities, many have done this by calculation "riders" that add together an income benefit to the base production.

While nigh insurance companies aren't fond of the term, there are quite a few agents that employ the term "hybrid annuity" when describing this updated version of the original alphabetize annuity. Be careful, though, with this term.

"Hybrid Annuity" is just a marketing term. It'due south null special, and in reality, annuities (for the most part) have e'er been hybrid in nature because they exercise more than than just one matter. (They tin abound money and pay out income).

One other really interesting feature of the Allianz 222 is one of its crediting methods (which is the way y'all actually make coin with an indexed annuity). Allianz has added the Barclays The states Dynamic Remainder Index every bit a way of demonstrating its "superior returns".

Nosotros'll embrace this more in a few minutes – only buyer beware that some annuity sales agents depend on their hypothetical illustrations in order to sell the 222 to investors.

When the Barclays Usa Dynamic Index I didn't perform too as they wanted it to, they pulled a switcheroo and changed the alphabetize. How about them apples?

Please be aware that these returns are non based on what IS guaranteed, only rather on what MIGHT exist guaranteed.

Some of the hot-selling annuity products like the Allianz 222 may do their all-time to paint a rosy picture WITHOUT showing you the function with the thorns.

In fact, it is possible that you lot recently attended a dinner seminar or an online webinar where the annuity sales agent went to great pains pointing out all of the Allianz 222 annuity's high points, but neglected to discuss the possible drawbacks.

Simply if you're planning to put a sizable chunk of your coin into this annuity, the possible drawbacks is something you need to know about!

You'll find out when we dig deeper into some super-nerdy analysis that the returns offered past this annuity actually aren't a large deal, nor is it that great of an alphabetize.

But the sales folks may talk it upwardly pretty good – so exist certain to stay tuned so you can learn how much value this new interest crediting method tin really add.

In order to truly go an idea of whether or non a stock-still indexed annuity such as the Allianz 222 annuity is correct for you, click here and so that you can admission our free annuity heir-apparent'south guide.

In the instance of the Allianz 222 product, its name actually implies what information technology does:

two Means to get a bonus to your Protected Income Value

1. Allianz 222 offers a 15% bonus (as of August 2020) on whatever premium y'all put into your annuity in the first 18 months.
2. You besides receive an involvement bonus equal to 50% of any interest y'all earn from your allocations (more on this later).

2 Ways to get an income increase from your Protected Income Value

1. Once you start receiving income, your lifetime income withdrawals can increment based on any involvement you've earned, in improver to the above-mentioned bonus
2. And, yous can double your annual maximum withdrawal under sure infirmary / nursing care / assisted living situations.

2 Ways to become a Death Do good

1. Your beneficiaries can receive your annuities full accumulation value (very different than the fancy income values from in a higher place).
2. Or, they can go the total protected income value every bit annuity payments spread out over five years.

For more info on the Allianz annuity bonuses yous can go directly to the source here.

Before we get into the gritty details, here are some legal disclosures…

This is an contained product review, not a recommendation to buy or sell an annuity.  Allianz Life Insurance Company of North America has non endorsed this review in any way nor do we receive any bounty for this review.  This review is meant to be an independent review at the asking of readers so they could see our perspective when breaking down the positives and negatives of this particular model annuity.  Earlier purchasing any investment product exist sure to do your own due diligence and consult a properly licensed professional should you have specific questions as they relate to your individual circumstances.  All names, marks, and materials used for this review are the property of their corresponding owners.

How Allianz Life Insurance Company of N America Describes the 222 Annuity

Per the 222 brochure, here are some key points as to how it's marketed and sold:

• Principal protection / no loss of principal in whatever type of market place environment
• Valuable guarantees and death benefit protection
• Income tax deferral / revenue enhancement-deferred growth
• Several income options, including an option for guaranteed lifetime income / lifetime income withdrawals
• More than one option for market indexes to runway
• Flexible interest crediting options and death benefit

There are a few more bells and whistles, simply those are the basics.  If you're looking for the full brochure, you tin find it here.

Because the Allianz 222 isn't a variable annuity, there isn't an actual prospectus to review. However, if you're still wanting more than information on this item annuity straight from the source which includes more details on the annuity's withdrawal charges and surrender charge period, you lot can go Hither to check out an overview, and fifty-fifty a short video that provides even more in-depth details from Allianz.

How Financial Advisors Might "Pitch" This Annuity

The Allianz 222 is a lot like other annuities that brokers/agents telephone call a hybrid annuity. In the past few years, insurance agents have fallen in love with the term "hybrid annuity."

Even though the insurance companies don't seem to like the term a whole lot, we guess the cool sounding name makes it easier to sell annuities, and so it'southward defenseless on nonetheless.

When sales agents use the term "hybrid," they are referring to an annuity that has multiple annuity features rolled into a single product.

In the case of the 222 Annuity from Allianz Life Insurance Company of Due north America, it combines a lifetime income guarantee or other payout options with the possibility of college returns based on market-linked credit methods; so whether Allianz likes information technology or non – some annuity sales agents may call it a hybrid annuity.

If you hear it described as a "hybrid annuity" – there are a few different ways information technology might exist pitched.

Our experience, however, is that most sales agents will cling to these main components:

1. The protection from market losses combined with higher return potential
2. The guaranteed income for life via the Protected Income Value (PIV)
3. The render potential via the Barclays US Dynamic Rest Alphabetize

While those are true statements, this annuity is not perfect (nor all bad). It can work okay when used correctly but has shortcomings just like any other financial production.  One of the biggest problems we've meet is that some insurance sales agents may misrepresent how this annuity will actually perform. This may even include leaving out the details about the surrender accuse catamenia.

That'due south a problem.

From the many people nosotros've talked to personally about their feel working with financial salespeople , frequently people accept been told this annuity will perform "amend" than other annuities.

The sales people seem to actually tout the large bonus, along with the guaranteed income potential of the Protected Income Value feature.

Is all of that true?  Eh, not exactly.

If your agent/advisor/salesperson explains this annuity correctly, yous may never go the impression yous'll earn more than 2% to half dozen%. Information technology could produce a return of less than 1%, and if surrendered early on you could actually lose coin.

If y'all are being sold bigger hypothetical returns than that in your agent's sales pitch – run, don't walk, to notice a more honest financial advisor.

It can also be really helpful if you know how – and how much – the advisor who is offer you this annuity is getting paid. Unfortunately, fifty-fifty though the majority of insurance and financial services representatives work hard to do what is best for their clients, money definitely all the same talks – and if a deputed salesperson is weighing the odds betwixt being able to swallow steak or mac and cheese, they're more than than likely going to push hard to make a auction.

Some Important Info on the Barclays Dynamic Rest Index Returns

A characteristic that has started to come with many of the newest fixed index annuities are proprietary indexes for determining the returns (or index credits) of the annuity. In the case of the Allianz, many of their newest products (like the 222, 365, and 365i) include the Barclays Dynamic Rest Index.

When nosotros start wrote this review, we warned investors that the Dynamic Balance I Index was new.

It shows a history going back to 1989, only that is about all back-tested. Dorsum-testing is done to show how the formula used to create the index WOULD Accept measured upwardly in by market weather.

Nosotros all need to be extremely conscientious when nosotros look at back-tested data as it is done with the benefit of hindsight. In other words, pretty much anyone can create a special "formula" that would take picked all the best investments and times to be in the market.

Just because something back-tests well does NOT hateful it volition perform the same in the future.

Example in point: we now have a new development to study…

Prior to 2015, the Alliance 222 used the Barclay The states Dynamic Remainder I Alphabetize in club to give investors a hypothetical illustration of returns. Now, they are using the Barclays US Dynamic Balance Ii Index, which has only been in existence since April fourteen, 2015.

We really spoke with an internal sales consultant and asked why they inverse from the Barclays I to the Barclays Two, and were told,"because this one dorsum tested higher than the other."

Have a expect for yourself at the difference. Here's the disclosure directly from the Barclays website indicating the back-tested data and its limitations (reddish box and lines added by AnnuityGator.com):

This is the OLD index used prior to 2015:

Here is a link to the near current Allianz 222 annuity alphabetize rates.

These rates are guaranteed for one year. They are declared at the time of event and on each contract ceremony. To check out the most up-to-appointment Allianz 222 annuity rates and index crediting methods, go here.

(Note here that the returns can differ, depending on your state of residence). Yous can as well have a look at the chart beneath, which also shows the motion of this index through March 2021.

Source: world wide web.bloomberg.com/quote/BXIIUDB2:IND

Accessed: August 11, 2020

Accessed: March 31, 2021. Remember, some fiscal sales folks may depend on these hypothetical illustrations to make their pitch look impressive.

Here again, there are actually 2 versions with different caps and spreads on the crediting methods used by the Allianz 222 depending on what state you lot alive in.

If yous watch the video beneath, we break this down in particular using data directly from Barclays. If you didn't picket the video, then but allow this text exist your caution.

If the Barclays Dynamic Residual I Index was new, then the Barclays Dynamic Residual II is in its infant stage, non even crawling yet.

We'd caution against putting any real weight on the validity of these hypothetical returns. Plus, there are other items, such as surrender charges, that could also have an impact on the overall render that you receive.

At that place are other potential items that tin can reduce the amount of net spendable income that you receive. For instance, yous will incur ordinary income tax on withdrawals. For case, in a non-qualified account, taxes would be due on the gains, but non the amount that is considered a return of your premium. But if you've "rolled" money over from an account funded with pre-tax dollars – such every bit a traditional IRA or 401(k) – and then you would owe ordinary income taxation on the entire amount of your withdrawals.

Plus, you could also accept to pay a 10% early on withdrawal charge to the IRS if y'all make withdrawals earlier you turn age 59 1/2 – even if you lot do so later on the give up catamenia has elapsed).

The Annuity Gator's Finish Accept on the Allianz 222 Annuity with Protected Income Value (PIV):

Where information technology works all-time:

• For producing a reliable, "alimony-like" guaranteed income stream / lifetime withdrawals (although in that location are other annuities with higher guaranteed income at this time)
• For producing lifetime income payments / an income for life that cannot exist outlived past a surviving spouse
• For investors who have a family history of longevity
• For investors that take no need for their coin or generating large returns, but want it to grow safely until transferred to their beneficiaries
• For investors willing to defer income payments from the annuity for 10 years or longer in order to get maximum benefit from the PIV (protected income value)

Where it works worst:

• For those that do not program on using the Protected Income Value (PIV) feature
• For those seeking maximum long-term growth
• For those looking for a good "worst case scenario" annuity
• For those who don't want to incur surrender charges if they need to make withdrawals in the early on years

We should also note that we only tested a few of the many ways this annuity can be structured. It has other indexes the interest tin can be calculated against, different options on the income passenger, and nearly importantly – the returns will vary based on each unique persons' circumstances.

In general, though, this is a fairly comprehensive review that will hopefully help many people better empathize how the Allianz 222 Annuity really works.

And, like with almost any other production or service out there in the market, there has been a fair share of Allianz 222 annuity complaints. You can take a peek at how this annuity has performed for other investors by reading the Allianz 222 annuity testimonials here.

Despite Allianz beingness a reputable company, based on our review of the Allianz 222 complaints, it appears thatsome of the folks that bought this product may not accept been properly educated about its features.

Given the fact that the Allianz 222 – or any annuity, for that thing – can be somewhat confusing (peculiarly indexed products) – information technology is all the more of import to review the Allianz 222 statement of agreement before y'all move forward and commit to this product.

As you can see in the statement of agreement example that is linked here, there is a lot more detailed information – which may or may not e'er mirror exactly what your fiscal advisor has touted.

In Summary

Ane of the about important things for investors to sympathize is that the "Protected Income Value" is not the actual render, nor is the "income per centum" the actual return.We're having a difficult time seeing it produce the 5% to 8% return numbers a lot of uneducated financial salespersons toss around when trying to get you to purchase information technology.

Equally noted in the video review below, a couple both age threescore with a 30-year life expectancy could realistically expect to earn somewhere between 2% and 6% over the next 30 years – depending on which options they select and how long they defer taking income.

You lot should know that you can ameliorate your income situation by as much as x% annually if you work with a financial professional person who knows how to employ a strategy with these income creation tools.

These annuity optimization strategies may lock in a greater guaranteed income for life.

Well-nigh financial salespeople who are only interested in selling products (and fee-based advisors who can't sell annuities) typically don't know how to employ these creative and mathematically optimized strategies, so investors are left on their own to figure it out.

For someone strictly looking for guaranteed income with no market adventure, the Allianz 222 tin do the job, there may be improve options available.

For someone looking for an investment that cannot get down, is content with low / mid-to-single digit returns, and wants the transfer of chance annuities are really good at – this might be a good fit, though we've reviewed other annuities nosotros think do that better.

Besides, we're withal convinced someagents don't realize what the real returns are, and may significantly over-promise what's realistic – so be specially wary of anyone who suggests this annuity will work better than how we illustrated it here.

If the agents are being upfront and honest, you'll detect their explanations will match very closely (if non exactly) as described in this review.  When that happens, you accept an agent y'all can trust.

Allianz has done a very practiced task of producing easy to understand literature that in no style misrepresents their production. They can't, withal, control every word that comes out of every insurance sales agent'southward rima oris – so just always be careful out there!

As a recap to the video below (for those that don't have 35+ minutes to watch it), the Allianz 222 Annuity may not actually requite a 7% render. Nor will it likely return half-dozen%, and it's possible the real returns will exist 5% or less (possibly fifty-fifty 2% or less).

When fiscal advisors use the bigger numbers, they are referring to percentages used to calculate the income guarantee.

In summary, the Allianz 222 has skilful attributes – it'south backed past a quality company, it has the potential for growth, and yous do take some access to money. Merely information technology may fall short on guaranteed income.

People oftentimes buy lifetime guaranteed income annuities for what they WILL provide, non for what they MIGHT provide. Allianz is large on the might, and it might not be every bit mighty as other annuities out there.

If you want to see if there are other annuities that can go upwardly confronting the mighty Allianz 222, you can reach us via the Free Annuity Help form below.

We tin show you lot what your other options are so that you can compare and indicate you in the right direction.

Lesser Line: While we certainly sympathise that the Allianz 222 annuity has both pros and cons, we've establish that there may however really be some better alternatives out there.

Actually, though, the only way to know if this annuity is a good fit for you is to have it tested. We do this free at AnnuityGator.com, and so just get in touch with the states using the form below and we'll run our proprietary annuity review software based on your scenario.

This procedure allows yous to compare i annuity against the other then you can come across for yourself what gives your dollar the best benefits and highest income guarantees.

If your agent was honest with y'all, so you won't be surprised by the numbers, and if they don't match up, well then you might desire to reconsider who you lot are working with.

We've worked with many wealthy people who were agape to spend a dime during retirement because all their coin was in the marketplace. They were agape to spend it because they knew that in today'southward global economy, annihilation can happen. The money could be gone tomorrow based on the latest news cycle.

The Allianz 222 can get y'all a guaranteed income, just dollar for dollar, at that place may exist other annuities we have seen that can to provide yous with more than income.

When you choose what we call "high-performance annuities" and combine them with a mathematically optimized plan, you tin can become the maximum effect and benefit out of every dollar saved.

Have Questions on the Allianz 222 or whatever other Allianz Annuity? Did You See Any Mistakes in this Allianz 222 Annuity Review?

Annuities tin be complex. That'southward where having an Annuity Investigator who loves math comes in. We make the complex, simple.

Annuities can exist complex. That'due south where having an Annuity Investigator who loves math comes in. We make the complex, uncomplicated

If y'all have questions please let us know. [You tin can accomplish me via the Free Annuity Help class here]

We realize that annuities can be complex and confusing and a lot of financial salespeople are pushing investors hard to buy them.

Merely y'all need to know the real facts to make certain if you go that route, you don't end up regretting information technology afterwards.

After all, annuities are long-term investment vehicle with contracts, give up penalties, etc. For some people, they won't make sense at all, but for some, they might.

That'south where having an Annuity Investigator who loves math comes in. We make the complex simple.

If y'all know anyone who has an annuity or is thinking of buying one, please share this mail service with them. Nosotros know a lot of people are getting very conflicting information and our goal in writing this review and making the video was to educate in an objective way.

If you have a Facebook account you lot can click on the fiddling "Facebook" icon and share this commodity.  That way more people will exist able to find information technology and hopefully, more people will benefit.

Thanks for bearing with united states of america on this rather long post. We hope you found it beneficial in your research. Lastly, like all humans – nosotros practice make mistakes. If you lot see one on this review please accomplish out and let u.s.a. know.

We are always more than happy to make corrections and give credit where information technology is due. If y'all're an investor and this review causes confusion and creates questions, experience free to reach out equally well.

We tin't always go back correct abroad but usually, nosotros can articulate up those questions within a day or two.

Best,

The Annuity Gator

P.S. Nosotros included a few more related links to the Allianz 222 below that you lot might observe useful:

• Allianz 222 Annuity Complaints
• Allianz 222 Annuity Statement of Understanding
• Barclays U.S. Dynamic Balance Index ll

P.P.Southward If you would like to read more than of our Allianz annuity reviews here are some links to check out:

• Allianz MasterDex 10 with Simple Income Passenger Annuity
• Allianz MasterDex X Alphabetize Annuity
• Allianz Retirement Pro Variable Annuity
• Allianz Vision Variable Annuity
• Allianz Life 360 Annuity
• Allianz Life Core Income vii Annuity
• Allianz Life Allianz Endurance Plus Annuity
• Allianz Chief Dex 10 Annuity

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Source: https://www.annuitygator.com/annuity-review/independent-objective-review-of-the-allianz-222-annuity/

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