"With Summit II, Allianz offers them an opportunity to increase the value of their annuity even when the blended index is down."

Summit II can create a win-win situation for the consumer. The amount of indexed interest a Summit II annuity earns during the first 10 contract years is determined through 5-year point-to-point crediting. For this method, Allianz captures the value of the blended index the day before the first day in the five-year period and on the last day during that same period.

If the index change during the five year crediting period is positive, then it is multiplied by the upside participation rate to get the indexed interest rate. In other words, if the blended index gains 20% and the participation rate is 100%, then the indexed interest credited to the annuity would be 20%.


Index Annuities