Allianz Accumulation Advantage Plus Fixed Indexed Annuity In-depth Review

How does the Allianz Accumulation Advantage+ Fixed Indexed Annuity policy work?

An annuitant (maximum age at the time of policy issue: 80) can purchase the Allianz Accumulation Advantage+ Fixed Indexed Annuity with a minimum initial purchase amount of $20,000, and in return, they earn a part of market index interest credits (calculated through a formula that we will discuss shortly), credited as per the chosen crediting period. Apart from the regular crediting period, various events may trigger earnings credits, including free withdrawals, long-term care events, terminal illnesses, injury events, or when a death benefit is payable.

As soon as the annuitant makes a premium payment, an “Accumulation Account” is created, equal to the total premium paid plus any interest earned from chosen allocations, less withdrawals, any applicable allocation charges and surrender charges, and adjusted by any Market Value Adjustments (MVAs).

Interest Indexing Options

The Allianz Accumulation Advantage+ Fixed Indexed Annuity offers the annuitant to choose from one or more of the five indexes (S&P 500 Index, Blended Futures Index, Bloomberg US Dynamic Balance Index III ER Index, PIMCO Tactical Balanced ER Index, Morgan Stanley Strategic Trends 10 ER Index) to determine their earnings crediting formula. Each index offers multiple indexing strategies, and you can choose one or multiple allocation strategies based on your preference. The plan also offers a fixed-rate guaranteed interest strategy to choose from. We will discuss each available index briefly:

S&P 500 Index: The S&P 500 index is one of the most popular and oldest indexes in the world. It tracks 500 large-cap publicly traded stocks listed in the United States. It is a reliable index and has often succeeded in the test of time. It is very important to note that the Allianz Accumulation Advantage+ plan consists of cap/participation rates for the S&P 500 index, meaning that you will be credited only a part of the S&P 500 return to your annuity. These rates tend to change frequently; I will discuss the rates in detail shortly.

Bloomberg US Dynamic Balance Index III ER Index: The Bloomberg US Dynamic Balance III ER Index is a volatility-aware, futures-based equity rotation index. It’s constructed from an “equity basket” made up of three sub-indices: large-cap U.S. equities, small-cap equities, and technology sector equities (intended weights being roughly 80%, 10%, and 10%, respectively), rebalanced daily. The Bloomberg US Dynamic Balance Index III ER Index uses an excess return methodology and targets a low annualized realized volatility, which limits both the risk and the upside return potential of the index.

PIMCO Tactical Balanced ER Index: The PIMCO Tactical Balanced ER Index is a rules-based, dynamic benchmark designed to balance exposure between equities, bonds, and cash. It adjusts its allocations daily based on market volatility, favoring equities when market swings are low, shifting toward bonds when volatility rises, and even moving into cash during periods of extreme uncertainty. The index uses an excess return methodology and targets a low annualized realized volatility, which limits both the risk and the upside return potential of the index.

Blended Futures Index: The Blended Futures Index is constructed with a 60/40 blend of equity and bond futures exposure. Its components include the Bloomberg US 10-year Note Custom Futures ER Index (bonds), S&P 500 Futures ER (large-cap equities), plus allocations to small-cap and international equity futures. The index uses an excess return methodology and targets a low annualized realized volatility, which limits both the risk and the upside return potential of the index.

Morgan Stanley Strategic Trends 10 ER Index: The Morgan Stanley Strategic Trends 10 ER Index targets around 10% realized volatility and combines exposure between NASDAQ-100 futures and 10-year U.S. Treasury futures. Allocation between these two components shifts depending on macroeconomic interest rate trends—whether rates are trending up, down, or stable—and also based on realized volatility. The index uses an excess return methodology and targets a low annualized realized volatility, which limits both the risk and the upside return potential of the index.

Note: It must be kept in mind that, except for the S&P 500, all these indexes are volatility control indexes, which limit the true return-earning potential of the index.

In addition to allocating the funds in the following indexes, the annuitant also has the option to allocate funds at a fixed interest rate. These Fixed Rates tend to change from time to time. The base fixed value rate at the time of writing this article was 2.90%. This rate may change from time to time and can vary from state to state. You can check the latest rates on the company’s website.

Rates and Costs associated with the Allianz Accumulation Advantage+ Fixed Index Annuity

The earnings crediting formula

The earnings crediting formula is the most important part of this annuity discussion. It is important to know that we don’t simply get the index return credited to our annuity. There are a few rate-limiting mechanisms (in the form of participation rates, caps, and triggers) that the company has in place that affect our earnings. These rates tend to change over time, and the updated rates can always be checked on the company’s website. 

The formula to calculate the earnings credited for some of the crediting strategies is:

For Strategies with Participation: (Participation Rate % * Index Return) 

For Strategies with Caps: Index return over a given crediting period, with a maximum potential of earning the cap rate

Let’s have a look at the Allianz Accumulation Advantage+ Fixed Index Annuity rate sheet (as of September 2025) to understand how the earnings are determined.

The first thing to note is that we have an option to choose between five indices, and each index has multiple strategies. All in all, it gives us an option to allocate our contract to a maximum of 16 strategies (15 index-based and one fixed). Let’s have a look at the different terms that are used by Allianz in the Accumulation Advantage+ chart rate:

Premium Bonus: The Premium Bonus instantly enhances your contract by adding a percentage of your premium to the account value. Currently, the bonus is 14%, although this rate is subject to change at the company’s discretion. The bonus is applied upfront but is subject to a 10-year vesting schedule (meaning 10% of the bonus vests each contract year, until it is fully vested in year 11). If you surrender or annuitize the contract before the bonus is fully vested, you may lose a portion of the unvested bonus. Additionally, bonus annuities may carry trade-offs such as longer withdrawal charge periods, lower participation rates, or reduced caps compared to similar products that do not offer a bonus feature.

Participation Rate (PR): The participation rate describes the annuitant’s participation percentage in the return of an index. For example, suppose the participation rate is 120%, and the index returned 5% over the agreed time. In that case, the annuitant will be eligible for 120% of the return, i.e., 6%.

Cap Rates: This refers to the rate at which your interest-earning capacity is capped over the agreed term. For example, if an index returns 12% but the contract’s cap rate is 6%, the annuitant will be eligible for an interest credit of 6% only. It doesn’t matter how much the index goes above the cap rate; the maximum interest that can be earned is the cap rate.

Monthly Sum: The indexed interest rate for a term year is based on monthly index changes. A monthly index change is determined by comparing the closing index value at the end of that month to the closing value at the beginning of that month. A positive monthly change in a term year is adjusted by applying the monthly cap for that term year. The indexed interest rate for a term year is the sum of the 12 adjusted monthly index changes for that term year. The credited rate will never be less than 0%.


Performance Trigger: A flat or positive index return triggers the declared interest rate to be credited to the contract value. If the index return is negative, no interest is credited, but there will be no loss, and the contract value will remain the same. The declared interest rate is set at contract issue and applies for the 1-year indexed term. In this case, the performance-triggered rate for the S&P 500 Index is 4.25%. It means that if the S&P 500 Index doesn’t go negative for a given 1-year period (even if the growth is 0% and not negative), the interest credited will be 4.25% irrespective of the S&P 500's actual return. 

Fixed Account Rates: If you opt for a fixed account rate, you simply earn the fixed rates for a particular period specified by the company before your policy begins. These rates usually tend to be low compared to other fixed avenues, such as CDs and MYGAs, so you should avoid fixed rates in a general scenario. The year 1 fixed rate on this policy at the time of writing this article was 2.90%.

Enhanced Rate Option: The Enhanced Rate Option allows annuitants to access higher caps, participation rates, and performance-trigger rates compared to the standard crediting methods. By electing this option, the potential for earning interest credits is improved, which can make a meaningful difference in accumulation over time. However, this benefit comes with an allocation charge. The charge is currently 0.95% annually, deducted from the contract accumulation value.

In my opinion, the S&P 500, Bloomberg US Dynamic Balance Index III ER, and the PIMCO Tactical Balanced Index are among the better index options to consider. The S&P 500 stands out because it offers a reasonable cap rate on the monthly-sum option (not the most competitive in the market, but still acceptable), while the other two provide uncapped strategies with comparatively higher participation rates. That said, it’s important to note that, except for the S&P 500, these are volatility control indexes, which naturally limit their true return-earning potential. Even the S&P 500 Futures Daily Risk Control 5% Index falls into this category and should not be mistaken for the traditional S&P 500.

You may notice that the rates offered in the Allianz Accumulation Advantage+ FIA are somewhat lower than those available in other Allianz indexed annuities. This is the natural trade-off for the upfront premium bonus that the contract provides. While the bonus gives your account an immediate boost and enhances long-term accumulation potential, it typically comes at the expense of lower caps or participation rates on the indexing strategies. For investors committed to holding the annuity for the long term, the bonus can offset these lower rates by providing an early advantage that compounds over time.

Index Lock Feature

With both annual point-to-point and 2-year MY point-to-point with participation rate crediting methods, you have the ability to manually lock in an index value on any of your individual indexed interest allocation(s) one time at any point during the crediting period.

You may have a high chance of missing out on some of the one-off index gains between the two earnings crediting points. This is where the Optional Free Lock-in features come in handy. 

Generally, Index gains are automatically locked in at the end of the strategy term, but this feature gives you an option to manually lock in index gains once per strategy term. It means you can lock in index gains when you feel that index is peaked. The following explains the feature graphically.

In this hypothetical example, the index value rose to 111 in month 18, at which time the decision was made to lock in the index value. The beginning index value (100) is compared to the locked index value (111), resulting in a change of 11%. If the participation rate were 80%, the indexed interest for this crediting period would be 8.8% (80% of 11%). By using Index Lock, you are able to lock in the day’s ending index value and be assured a positive index credit for the crediting period - no matter what happens during the remaining months.

This free built-in feature is one of the most liked features of Allianz Fixed Indexed Annuities.

Auto Lock

As another option alongside the manual Index Lock capability, Auto Lock lets you set upper and lower index interest rate percentage targets during each crediting period. The index interest rate percentage target set will be equal to the amount of indexed interest earned after the participation rate is applied.

Accessing your Money

Each year, you are allowed a 10% free withdrawal of your contract value without incurring charges, fees, or penalties.

Should your needs change unexpectedly, and you need to take an excess withdrawal (a withdrawal that is above the free withdrawal amount available in a given contract year), you may be entitled to access additional monies; although, certain charges and penalties may apply. Any amount withdrawn in excess of the remaining free withdrawal amount is subject to a Surrender Charge. Below is the Surrender Charge schedule for the Allianz Accumulation Advantage+ Fixed Index Annuity.

In case you need to surrender your policy, a Market Value Adjustment (MVA) will be applied to the portion of the withdrawal or surrender that exceeds the free withdrawal amount during the withdrawal charge period.

Note that this surrender charge schedule is only valid for the Allianz Accumulation Advantage+ Fixed Index Annuity product for select states. For complete details about each state, you may visit the product’s brochure here.

The surrender charge of Allianz Accumulation Advantage+ Fixed Index Annuity is pretty much in line with all the other annuity issuers.

Once the surrender charge period ends, you can typically access your full contract value without fees. However, any withdrawal reduces both your contract value and, if applicable, the income base tied to optional riders, which may impact future guaranteed income.

An annuitant can also convert the contract into a stream of guaranteed income, known as annuitization. They can choose from various payout options designed to meet different needs.

Life Only – Provides income for as long as you live.

Joint and Survivor Life – Continues payments over two lifetimes, often used by couples.

Life with Period Certain (up to 30 years) – Pays income for life, but guarantees payments for a minimum period even if death occurs earlier.

Period Certain (up to 30 years) – Provides guaranteed payments for a set number of years, regardless of lifespan.

Single Life or Joint Life with Cash Refund – Ensures that if the annuitant(s) pass away before receiving payments equal to the original premium, the difference is refunded to beneficiaries.

Single Life or Joint Life with Installment Refund – Similar to the cash refund, but any remaining balance is paid out over time in installments.

These options allow flexibility in balancing lifetime income needs with legacy goals, offering a way to customize how and when funds are accessed in retirement.

Death Benefit

Upon the annuitant’s death, the beneficiary(s) will receive the greatest of the annuity’s accumulation value, guaranteed minimum value, or the premium minus any withdrawals and corresponding withdrawal charges, adjusted by any Market Value Adjustments (net premium)

Riders

The Allianz Accumulation Advantage+ is a plain-vanilla annuity that does not offer any optional paid riders. In my opinion, this actually appeals to many people who don’t understand or do not want to dive deep into the complex methodologies the riders often come up with. However, one aspect that I believe could be improved is the inclusion of waivers for nursing home care and terminal illness. While most annuities typically offer these waivers for free, I was unable to find any mention of them in the annuity's marketing materials.

Contract/Administrative Charge

The Allianz Accumulation Advantage+ Fixed Index Annuity levies no annual contract or administrative fees.

What Makes this Product Stand Out?

The Allianz Accumulation Advantage+ Fixed Indexed Annuity offers a few features that make a favorable case for this annuity. The ones that I like the most are

Upfront Premium Bonus: The plan offers a premium bonus (currently 14%, though subject to change), which immediately enhances your contract value and gives your accumulation a strong head start. This makes it especially attractive for long-term investors who can benefit from the full vesting schedule.

Free Manual and Auto Lock-in Feature: Generally, Index gains are automatically locked in at the end of the strategy term, but this feature gives you an option to manually lock in index gains once per strategy term. It means you can lock in index gains when you feel that the index has peaked.

No annual contract, mortality & expense, or administrative fees

What I Don’t Like

This product is a decent option for individuals seeking growth and safety; however, there are some features that I believe could add more value for the annuitant. Some of the features that I don’t like about the policy are:

Although the annuity offers multiple strategies on the S&P 500 Index, I don’t like the other indexes that the company offers. These indices have a volatility control mechanism that limits the overall return of the index. However, at the time of writing this article, the company is offering a good participation rate on those indexes to compensate for the low potential return.

The crediting rates on this product are lower than those on many other Allianz FIAs. That said, this trade-off can be reasonable given the upfront premium bonus, which provides an immediate boost to contract value and helps offset the lower growth potential from caps and participation rates.

The company does not offer free withdrawals in cases of terminal illness or nursing home confinement, a feature commonly included in most other Fixed Indexed Annuities.

Company Details

You must always keep in mind that, unlike CDs, annuities are not guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other federal insurance agency. An annuity's "guarantee" is only as strong as the insurance company that issues the annuity, so it is always important to assess the issuing company before buying an annuity.

Allianz Life Company

Allianz Life Company has been in business since 1896. It is a subsidiary of Allianz SE, one of the oldest financial services and insurance companies, and has been in the business for over 13 decades. It has been one of the largest providers of fixed and fixed-indexed annuities in the US for many years and has consistently ranked in the top ten for Fixed Indexed Annuity Sales. Allianz SE is a Fortune 500 company.

It is rated as follows by the rating agencies:

Allianz Life Company has consistently maintained decent ratings for many years. It is considered to be financially strong and stable. As of year-end 2024, some of the other financial highlights for Allianz SE include its:

EUR 17.8 billion in total sales / direct written premium

EUR 43.1 billion of total stockholders’ equity

EUR 7.8 billion in net operating income

EUR 137.1 billion in total assets

Thus, going by the operating history and financial numbers, we can safely gauge that you can trust your savings with Allianz Annuity Life Company.

Conclusion

With advancements in healthcare and technology, the average American today lives longer than ever. Consequently, it's crucial to have a source of income that grows safely and steadily, and can provide a guaranteed income during retirement years. This strategy not only mitigates the risk of outliving your income but also ensures a decent standard of living in retirement.

The Allianz Accumulation Advantage+ Fixed Indexed Annuity is designed primarily for accumulation-focused investors who want the benefits of tax-deferred growth, downside protection, and an upfront premium bonus. The availability of multiple index options gives investors flexibility in tailoring their allocations. At the same time, traditional options such as the S&P 500 remain available for those who prefer more familiar benchmarks.

However, as with most bonus annuities, this product involves trade-offs. The current premium bonus of 14% can provide a meaningful head start, but it comes at the cost of lower participation rates and caps compared to other Allianz FIAs without a bonus feature. This makes it better suited for individuals who plan to hold the contract long term and can allow the bonus to fully vest. In addition, unlike many other indexed annuities, I could not find a nursing home or confinement waiver mentioned in the available marketing material, which slightly limits the built-in flexibility for accessing funds in case of health-related emergencies.

We understand that choosing the right annuity can be a complex decision, influenced by a myriad of factors such as market conditions, individual financial goals, and evolving life circumstances. To better serve you in this critical decision-making process, we regularly conduct in-depth reviews of various annuity products, examining features, costs, and potential benefits. To delve deeper into our extensive reviews, click here.