Allianz Life Insurance Company of North America has released a new indexed variable annuity (IVA), dubbed as Index Advantage, suitable for consumers willing to trade some potential gains from market growth in exchange for protection from down markets.

According to the company, the Index Advantage offers unique balance of growth potential, some downside protection, death benefit, tax deferral, and protection.

Allianz Life Financial Services president Robert DeChellis said that traditional investors, who are focused on accumulating assets for retirement, face a dilemma due to current low interest rates on fixed investments.

"Index Advantage offers a way to help manage this dilemma with unique growth opportunities and a level of protection for people willing to accept some downside risk in exchange for additional growth potential," DeChellis added.

Contrary to the current variable annuities with Guaranteed Minimum Accumulation Benefits that need waiting periods of up to 10 years, the new Index Advantage product offers benefits to be protected every year.

Providing safety from the first 10% of losses per year, the IVA boosts the amount of return potential by having much higher limits on the interest credit coming from the growth of an equity index in exchange for less protection.

At present, the IVA product is available for consumers in 42 states of the US. Products are distributed by its affiliate, Allianz Life Financial Services.