All You Need to Know about MasterDex 10 Annuities – The Good Bad and Ugly!

Allianz Masterdex 10 plus Annuity: A Sound Investment

Annuities, as offered by companies and providers, have hundreds of variations. Their differences are many, some are subtle, and some are not so subtle. The challenge for potential buyers eyeing a steady income after reaching their retirement age is to know which type of annuity best suits their needs and also falls in line with their financial capabilities at the time of their purchase.

A flexible premium deferred annuity is one type of annuity. It is an annuity that is designed for funding not by a single, but through several payments. It is basically a tool for retirement preparation and exhibits flexibility not possessed by other annuities. Allianz’s Masterdex 10 Annuity is one example of a flexible premium deferred annuity offered by a leading name in the insurance industry.

The Masterdex 10 Plus Annuity by Allianz is specifically meant for delivering steady and substantial annuity payments for its holders’ retirement security. It provides stability that is compatible with most people’s further financial plans, especially of retirees. The flexibility really comes into play in the options given by the product to the holders who choose it over others.

Since the Masterdex 10 Plus Annuity is a deferred flexible index annuity, it is locked in at least one time each year. This gives it security against any falls in the market index. In the event of positive events in the market, indexed interest is available once a year, but still dependent on the market index differences.

Within five years, holders can earn so-called bonus annuities of up to 10 percent. These annuities are based on premium received in that span of time and could include lower caps and other premium necessities. Also, five years is the time when a holder can start receiving payments for the full annuity value.

The initial premium, and subsequent ones, is inclusive in the product’s annuitization value. This also includes fixed or indexed interest, and any bonuses earned. The annuitization value has several requirements that need to be met, like a five year deferral and 10 years of annuity payments. Failure to meet these will only yield the cash surrender value of a particular contract. This is a major disadvantage of this product.

Only getting the cash surrender value may not be a bad thing, but it is not the point of an investment product. You want growth. The various earnings that the contract might have earned will not be in there, nor will any bonuses, fixed or indexed interests. Cash surrender value only includes 87.5 percent of the premium, and an annual interest rate of 1.5 percent. A lot can be charged against the failure to meet the annuitization requirements. So really, is this all that good a deal?

The Masterdex 10 Plus Annuity is just one way to prepare for a life beyond retirement. There are still plenty of other options that can ensure financial security beyond being employed. It can lead to increased value and equity an individual’s financial standing.