Allianz Benefit Control Plus Fixed Indexed Annuity Review

How does the Allianz Benefit Control+ Fixed Indexed Annuity policy work?

An annuitant (maximum age at the time of policy issue: 80) can purchase the Allianz Benefit Control+ Fixed Indexed Annuity with a minimum initial purchase amount of $20,000, and in return, they will earn market index returns (calculated through a formula that we will discuss shortly) without having to incur the risk of the market downside, credited as per the chosen crediting period. Apart from the regular crediting period, there are various events that may trigger earnings credit: On free withdrawals, for a long-term care event or terminal illness or injury event, or when a death benefit is payable.

The Allianz Benefit Control+ Fixed Indexed Annuity establishes two types of accounts during the annuity setup.

1. Protected Income Value (PIV)

Specifically designed for taking enhanced lifetime income withdrawals. The PIV account is only used to determine your lifetime withdrawal amount, and you can’t take this value as a lump sum.

Allianz establishes the PIV on the day your contract is issued, and it equals 100% of the initial premium you pay into your annuity. In addition, the PIV can be credited with two types of bonuses: a premium bonus and an income bonus. Please note that the PIV is only available for lifetime income withdrawals after you have held your contract for at least 10 contract years.

Protected Income Value Premium Bonus: The company credits your PIV with a bonus of 30% on all premiums you place in your contract in the first 18 months. 

Protected Income Value Interest Bonus: The Allianz Benefit Control+ plan also offers an interest bonus. The company offers two options for taking an interest bonus.

Option 1: After determining your allocation interest, it is multiplied by the 250% interest bonus factor and credited to your Protected Income Value. So, if your allocations earned 3% interest for the year, the company would actually credit 7.5% interest to your PIV (3% × 250% = 7.5%). However, your accumulated value account is credited with just 50% of the allocation interest. More on this shortly.

Option 2: After determining your allocation interest, it is multiplied by the 150% interest bonus factor and credited to your Protected Income Value. So, if your allocations earned 3% interest for the year, the company would actually credit 4.5% interest to your PIV (3% × 150% = 4.5%). However, your accumulated value account is credited by 100% of the allocation interest vs. 50% in option 1. More on this shortly.

2. Accumulation Value - Regular Accumulation Value Offered by Most Annuities

Accumulation value is the amount you can take out of your annuity as a lump sum (adjusted for withdrawals, any applicable allocation charges, and surrender charges) and adjusted by any Market Value Adjustments. 

Option 1 vs Option 2 - Which One is Better?

The first question that you need to answer while selecting one of the options is whether you want a series of lifetime payments that you can’t outlive or if you plan to withdraw the entire amount as a lump sum. Generally speaking, if you are looking for lifetime payments, option 1 is more suitable, while if you plan to withdraw the entire accumulated value as a lump sum, option 2 is more suitable.

Option 1, also known as the "Accelerated PIV interest bonus option," is a strategy that aggressively pursues income savings goals. It uses a 250% protected income value (PIV) interest bonus factor and a 50% accumulation value interest factor. In this approach, any interest earned is multiplied by 2.5 and credited to your PIV. For instance, a 4% interest rate would result in a 10% credit to your PIV. However, only half of any indexed interest is credited to your accumulation value while you're saving, meaning a 4% indexed interest would result in just a 2% interest credit to your accumulation value. This option is only beneficial if you plan to take lifetime income withdrawals in the future, as these would be based on the PIV.

Option 2, referred to as the "Balanced PIV interest bonus option," is described as a more balanced approach to pursuing your annuity values. This option uses a 150% PIV interest bonus factor and a 100% accumulation value interest factor. This means that one and one-half times any interest you earn is credited to your protected income value (PIV). For example, if the interest is 4%, it would be multiplied by 1.5, resulting in a 6% credit to your PIV. Additionally, all of the interest you earn is credited to your accumulation value while you're saving. For example, a 4% interest would result in a 4% interest credit to your accumulation value. With this option, your PIV's growth is modest in comparison to option 1, but your accumulation value is a lot higher when compared to option 1. This could be a good choice if you need to take your annuity's value as a lump sum down the road, because the lump sum would be based on the accumulation value.

Interest Indexing Options

The Allianz Benefit Control+ Fixed Indexed Annuity offers the annuitant the ability to choose from one or more of the five indexes 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 Benefit Control+ 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: In addition to allocating the funds in the following indexes, the annuitant also has the option to allocate funds at a fixed interest. These Fixed Rates tend to change from time to time. The Fixed Value Rate at the time of writing this article was 2.70%, which I feel is low compared to other plans that offer similar annuities. 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 Benefit Control+ 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. The formula to calculate the earnings credited is:

For Strategies with Participation: (Participation Rate % X 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 Benefit Control+ Fixed Index Annuity rate sheet (as of September 2025) to understand how the earnings are determined.

We already discussed PIV in an earlier part of this article. Allianz establishes the PIV on the day your contract is issued, and it equals 100% of the initial premium you pay into your annuity. In addition, the PIV can be credited with two types of bonuses: a premium bonus (bonus on all premiums you place in your contract in the first 18 months) and an income bonus (regular interest credit multiplied by income bonus multiplier). The current premium bonus rate is 30%, and the PIV interest bonus rate depends upon the interest bonus option you choose (discussed earlier in this article). Please note that the PIV is only available as lifetime income withdrawals after you have held your contract for at least 10 contract years. From the above rate chart, you will notice that there are 18 interest crediting options (1 fixed and 17 indexed). Let’s have a look at the different terms that are used by Allianz in the Benefit Control+ chart rate:

Participation Rate (PR): The participation rate represents the percentage of an index’s return that is credited to the annuitant over a specified period. For example, if the participation rate is 120%, and the index returned 5% over the agreed time (suppose 1 year point-to-point). 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. For example, if an index returns 12% over the agreed time 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 1-year fixed rate on this policy at the time of writing this article was 2.70%, which is not that good compared to other FIA’s fixed-rate offerings.

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.

Among the available strategies, I would favor the annual and multi-year point-to-point strategies with participation rates, as they typically offer higher participation opportunities. Given that Allianz tends to offer lower cap rates, I would not prefer cap-based strategies within the Allianz Benefit Control+ FIA. Also, the Allianz Benefit Control+ annuity might be a decent annuity only if you consider its PIV account by opting for lifetime income withdrawals (after you have held your contract for at least 10 contract years). For the regular accumulation account, there are other players, such as Athene and F&G, that offer better growth opportunities.

Index Lock Feature

With both annual point-to-point and multi-year 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 the option to manually lock index gains once per strategy term. It means you can lock in index gains when you feel that the index has 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 Allianz Benefit Control+ 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 Benefit Control+ Fixed Index Annuity product for select states. For complete details about each state, you may visit the product’s page here.

The surrender charge of Allianz Benefit Control+ 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

Prior to annuitization, Allianz Benefit Control+ Annuity gives you two death benefit options. Your beneficiary(s) can receive the greater of the accumulation value, guaranteed minimum value, or cumulative withdrawal amount as a lump sum (this option doesn't include any bonuses). Or, they can receive the Protected Income Value – including the premium and interest bonuses – in payments over a minimum of five years.

Riders

The Allianz Benefit Control+ Fixed Indexed Annuity comes with a free, built-in Income Multiplier Rider. The Allianz Income Multiplier Benefit rider allows you to withdraw up to double your annual maximum if you become confined to a qualified hospital, nursing facility, or assisted living facility for at least 90 days in a consecutive 120-day period or if you are unable to perform at least two of the six activities of daily living (ADLs).

In an earlier part of the article, we discussed that Allianz creates two accounts when you sign up for the Allianz Benefit Control+ Fixed Indexed Annuity. One is a regular accumulation account, while the other is the Protected Income Value (PIV) account. 

Suppose you want to withdraw your money in lump sum or through a traditional annuitization route. In that case, you will be entitled to withdraw from your accumulated value (account without any premium or interest bonus). In contrast, if you withdraw your money as a lifetime income payment, you will be entitled to withdraw from your PIV account (with interest and premium bonus).

Income Increase Opportunity through the Lifetime Payments Method

When you are ready to begin income withdrawals (anytime after 10 contract years), you can access your PIV in the form of payments that last as long as you live. The initial annual maximum amount is a percentage of your Protected Income Value and is based on your age when payments begin.

After your lifetime withdrawals begin, your income payments will have the opportunity to increase following each year your contract earns interest, including the 150% interest bonus factor. As long as you don’t take other withdrawals, your payment is guaranteed to never decrease.

Income Flex Benefit

The Income Flex Benefit is designed to provide flexibility once you begin lifetime income withdrawals. It allows you to choose between increasing your future lifetime withdrawal amount or taking an additional withdrawal (the “Income Flex Benefit Amount”) in years when you earn an interest credit. This feature can be especially helpful for managing unexpected expenses while maintaining long-term income security.

To understand how it works, let’s look at an example:

Suppose you begin with an accumulation value of $200,000 and an initial lifetime withdrawal of $15,000 in Year 1.

In Year 2, your account earns a 6% interest credit. At this point, you have two choices:

Choice 1 (Default): Increasing Income - Your lifetime withdrawal amount increases by 9% (6% × 150% interest bonus). This raises your annual income from $15,000 to $16,350, which then becomes your new baseline lifetime withdrawal starting in Year 3.

Choice 2: Income Flex Benefit - Instead of increasing your future withdrawal base, you can elect to take an additional withdrawal of $18,000 (calculated as $200,000 × 9%). Combined with your prior $15,000 lifetime withdrawal, this gives you a total withdrawal of $33,000 in Year 2. Your baseline lifetime withdrawal in Year 3 would remain at the original $15,000 since you opted for the additional withdrawal instead of the income increase.

Here’s the visual breakdown:

From Year 3 onward, if you earn another interest credit, you’ll again have the same choice between increasing your lifetime withdrawal or taking an additional Income Flex Benefit withdrawal. This cycle can repeat, giving you flexibility in how you use your income credits over time.

Which Choice Might Be Better?

Choosing between increasing income (Choice 1) and taking the Income Flex Benefit (Choice 2) depends largely on your financial situation and goals at the time.

Choice 1 (Increasing Income): This option is generally the better long-term strategy for those who want to maximize guaranteed lifetime income. By locking in a higher baseline withdrawal amount, you ensure that your income keeps pace with growth over time, which can be critical for covering rising expenses in retirement.

Choice 2 (Income Flex Benefit): This option may be useful if you face unexpected expenses such as medical costs, home repairs, or helping a family member, or simply need extra liquidity in a given year. However, it comes at the cost of forfeiting the permanent income increase, which means your guaranteed lifetime withdrawals will remain lower in future years.

In most cases, building a higher lifetime income through Choice 1 provides greater long-term security, but Choice 2 offers short-term flexibility when immediate cash flow needs outweigh the benefits of compounding future income.

Contract/Administrative Charge

The Allianz Benefit Control+ Fixed Index Annuity levies no annual contract or administrative fees.

What Makes this Product Stand Out?

Although Allianz Benefit Control+ Annuity might not offer the best indexing options, it still offers some features that not many fixed-indexed annuities offer. The ones that I like the most are

Multiple Index Options: The Allianz Benefit Control+ Annuity offers the annuitant to select from five market indexes.

Free Manual and Auto Lock-in Feature: As this is a Fixed Indexed Annuity, you are naturally protected from market downturns. But 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 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 the index has peaked.

Premium and Interest Bonus if you opt for Lifetime Payments

Income Flex Benefit for Unexpected Liquidity Needs

Free Income Multiplier Rider to double your withdrawals in case you are confined to a qualified hospital, nursing facility, or assisted living facility.

No Annual Contract, Mortality & Expense, or Administrative Fees

What I Don’t Like

I don’t like a few things about the Allianz Benefit Control+ Fixed Index Annuity. Most of them are those that limit the income-earning capacity of an annuitant. 

The accumulated value option is not lucrative in terms of interest-earning potential.

Indexes offered come with a volatility control mechanism: It must be kept in mind that, except for the S&P 500, all the indexes offered by the Allianz Benefit Control+ are volatility control indexes that limit the true return-earning potential of the index.

Low realistic returns: You might have known by now that this is a conservative policy that focuses more on income protection rather than income growth. As a conservative policy, the realistic return expectations are pretty average. It is not the best policy for someone who is looking only for growth and accumulation.

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 regularly been in the top ten Fixed Indexed Annuity Sales. Allianz SE is a Fortune 500 company.

It is rated as follows by the rating agencies:

Allianz Life Company has managed to maintain decent ratings for many years. It is considered to be strong and stable financially. 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 the advancements in healthcare and technology, the average American today lives longer than ever. So, it’s very important to have a stream of income that can grow safely and steadily and have the ability to provide a guaranteed income during the retirement years. This not only helps you to mitigate the risk of outliving your income but also ensures that you continue to live a decent life even in your retirement.

The Allianz Benefit Control+ Fixed Indexed Annuity is a decent product when it comes to lifetime income withdrawals, offering a few unique features like premium/interest bonuses and Index-locking. However, it may not be the ideal fixed-indexed policy if you are looking for income growth and lump-sum withdrawal. It has a low-income earning potential, and almost all the indexes have low cap and participation rates.

As Allianz is one of the strongest life insurance companies in the world, it may prove to be an ideal policy for a very conservative annuitant who is looking for income protection above anything.

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 dive deeper into our extensive reviews, click here.