Allianz Launches Legacy+™ Income Benefit for Retirees
Allianz Life Insurance Company of North America has unveiled the Legacy+™ Income Benefit, a new feature in its registered index-linked annuity (RILA) offerings, aimed at retirees who wish to leave a financial legacy for their beneficiaries.
This option, which is available for an additional fee, guarantees a death benefit even if the annuity’s value depletes to zero, aligning with retirees' growing desire to balance legacy goals with retirement spending. According to the Allianz Center for the Future of Retirement’s 2026 Annual Retirement Study, 56% of Americans prioritize leaving a financial legacy over maximizing their own retirement funds. This represents a marked increase from 38% five years prior, underscoring shifting priorities among American retirees.
Key Features and Market Context
The Legacy+™ Income Benefit ensures a legacy value for beneficiaries equal to 50% of the contract's value at income distribution initiation, staying fixed regardless of payment duration. Although, accessing the amount earlier is possible, it may impact income distributions and cancel the benefit. Allianz Life, known for its commitment to innovative retirement solutions, integrates this option into its Index Advantage+ Select Income® Annuity and Income Advantage ADV® Annuity. These offerings tap into the RILA space, known for potential index-linked returns, various risk protection levels, and tax-deferred growth. However, they also come with investment risks, such as potential principal loss.
Implications for Insurance Professionals
For insurance professionals advising clients nearing retirement, Allianz's introduction of the Legacy+™ Income Benefit presents a compelling option. It highlights the need for personalized retirement planning strategies that address clients' educational needs regarding risk navigation and legacy planning. Furthermore, understanding the nuances of RILA products—conditioned by underlying market risks and guarantees reliant on Allianz Life's financial strength—is essential for guiding clients effectively.
| Benefit Feature | Description |
|---|---|
| Legacy Value Guarantee | 50% of initial contract value to beneficiaries |
| Rider Fees | 1.55% annually, including Legacy+™ and income benefit riders |
| Market Risks | Potential loss of principal with RILAs |
Conclusion
As retirees increasingly prioritize legacy over short-term financial security, products like the Legacy+™ Income Benefit become instrumental in meeting these evolving expectations. For insurance agents and advisors, staying informed on innovative options like Allianz's RILAs is crucial to providing comprehensive guidance to their clients. Allianz Life’s advisory encourages consultation with financial professionals to leverage the full potential of their annuity offerings.