Allianz Core Income 7 Annuity Reviewed
The Allianz Core Income 7 is a seven-year fixed index annuity with a Guaranteed Lifetime Withdrawal Benefit (for a fee). Most indexed annuities have an optional income rider that can be added. However, when considering the Allianz Core Income 7, you should note that the Core Income Benefit Rider is not optional; it is included in the product for 1.25%.
The cost of the Core Income Benefit Rider is 1.25% and is charged annually and deducted from the account value. The rider cost will begin at age 45 and is charged until the point at which the lifetime income begins.
All indexed annuities provide principal protection – meaning your account value can never decrease due to market performance. However, if your account is credited with zero interest in a year, your account value would decrease (by 1.25%).
Allianz Core Income 7 at a Glance
| Feature | Details |
|---|---|
| Purpose | Guaranteed lifetime income with a 7-year surrender period |
| Carrier | Allianz Life Insurance Company of North America[1] (AM Best A+) |
| Surrender schedule | 7 years: 8.5%, 8%, 7%, 6%, 5%, 4%, 3% |
| Premium | Add-ons allowed in the first contract year |
| Free withdrawal | 10% of premium a year after year 1; RMDs count as free |
| Income rider | Core Income Benefit Rider, required, 1.25% a year |
| Income start | Any contract anniversary from age 50 to 100 |
| Income options | Level or increasing, single or joint, chosen when income starts |
| Death benefit | Lump sum or annuity payments to beneficiaries |
How Much Income Does the Allianz Core Income 7 Pay?
- Payout rises as you wait: the withdrawal percentage increases each year you delay income, starting at age 45.
- Level or increasing: level pays more up front; increasing starts lower but can rise with credited interest.
- Cumulative withdrawal benefit: take less than your maximum, and the unused amount can be taken in a later year.
- Get current numbers: the chart above is from an earlier illustration. Use our income rider calculator or the live quote below.
How Much Guaranteed Lifetime Income Can You Buy?
Live quotes from today’s carrier feedHypothetical Historical Rate of Return
An earlier illustration put 100% in the Bloomberg US Dynamic Balance II ER index at a 50% participation rate.
| 10-year window | Average annual return |
|---|---|
| Highest (also most recent at the time) | 6.70% |
| Lowest (2007 to 2016) | 4.37% |
- Dated figures: participation rates have changed since that illustration; ask for today’s rate sheet.
- Fee drag: the 1.25% rider fee means a 0% index year lowers your account value.
- Index menu: S&P 500, Russell 2000, Nasdaq-100, Bloomberg US Dynamic Balance II and a fixed rate. Compare current fixed index annuity rates.
- MYGA benchmark: At today's top 7-year rate of 7.10% (simple interest), $100,000 grows to about $149,700 over 7 years, a gain of $49,700. See current MYGA rates.
Get your Allianz Core Income 7 illustration for your age and state
Send us your premium amount, your state, and when you need the money. We will come back with current numbers on this contract and comparable ones from the 90+ top annuity companies on our platform, in writing.
Allianz Core Income 7 Strengths and Red Flags
What it does well
- Decide later: choose single or joint, and level or increasing, only when income starts.
- Shorter term: a 7-year surrender period, versus 10 years on many income annuities.
- Cumulative withdrawal benefit: unused income carries forward to later years.
Red flags
- Mandatory 1.25% rider fee: you pay it even if you never take income.
- Wrong tool for growth: savers who won’t use the rider should skip it.
- 8.5% year-one charge: on withdrawals above the 10% free amount.
- Dated public numbers: current payout and crediting rates need a fresh illustration.
Final verdict: the Allianz Core Income 7 is built for lifetime income with a 7-year commitment. It earns our 3.3 rating for buyers who will use the rider. For pure growth, the Allianz Accumulation Advantage+ fits better than the Allianz Core Income 7.
Compare live rates on 137 fixed index annuities or visit our annuity review database.
This review is for educational purposes only and is not a recommendation or an offer to sell any annuity. Product features, index options, and rates can and do vary by state, and this product is not available for sale in every state. Always request a carrier illustration and work with a licensed annuity agent before you buy.
Frequently Asked Questions
Is the income rider on the Allianz Core Income 7 optional?
No. The Core Income Benefit Rider is built in and costs 1.25% a year, whether or not you start income.
When can I start income from the Allianz Core Income 7?
On any contract anniversary between ages 50 and 100. The withdrawal percentage rises for each year you wait.
What is the surrender period on the Allianz Core Income 7?
Seven years, with charges of 8.5%, 8%, 7%, 6%, 5%, 4% and 3%. You can withdraw 10% of premium each year free after year 1.
