Indexed Universal Life Insurance | Aviva USA – Life and Annuities

Indexed Universal Life Insurance

Aviva indexed universal life insurance is the same as traditional universal life except for how interest is credited. It's based partly on the upward movement of a stock market index. We also offer Term Life and Universal Life.

  • Growth in policy value potentially higher
  • Interest based partly on a market index
  • Protected from the market's downside
  • Flexible coverage throughout your life

What it can do for you

Aviva indexed universal life insurance has the benefits of traditional universal life plus the potential for greater growth in your policy value.

Gives you upside potential

Aviva indexed universal life insurance policies credit interest based partly on the upward movement of a major stock market index, so when the market does well, so do you. Over the life of the policy, this could mean more cash value and more supplemental retirement income. And the tax-deferred benefits of a traditional universal life policy still apply.

Gives you downside protection

You also get a guaranteed minimum interest rate with an Aviva indexed universal life policy. So while you're taking advantage of the market going up, you'll never suffer loses due to the market going down.

With Aviva USA, you get protection from negative index performance. When the index falls, your contract value remains level.

What else it can do for you

An Aviva indexed universal life insurance policy gives you the same flexibility and safety of other universal life policies from Aviva.

Puts you in control

As your needs change, your policy can change, too. You can change the death benefit, increase or decrease your premiums, and add options or riders to fit your needs.

Transfers your wealth

Aviva indexed universal life can help you leave a legacy to pass on to your heirs by giving them as much of your estate as possible, while making sure your tax and other obligations are satisfied.

Builds your savings

Indexed universal life insurance provides a tax-deferred way of accumulating a cash value at competitive interest rates.

Gives you access to funds

You can make withdrawals or borrow against, the cash value in your policy. Your Aviva indexed universal life policy can also be used as collateral for securing an outside loan, letting you tap the equity in your policy for a variety of needs: education, retirement and emergencies.

Protects your family

The death benefit gives you peace of mind knowing that your loved ones will not face financial hardship should you die. And the value can grow with your family and your needs.

All tax related information contained herein is based on our current understanding of federal tax laws as they relate to life insurance or other subject matter discussed. These laws are subject to change in the future. Neither Aviva nor its representatives offer legal or tax advice. You should consult a personal tax advisor on any tax matters. In order to comply with certain U.S. Treasury regulations, please be advised of the following: Unless expressly stated otherwise, any U.S. Federal tax advice contained in these materials is not intended or written to be used, and cannot be used, by any person for the purpose of avoiding any penalties that may be imposed by the Internal Revenue Service. Products issued by and all policy benefits are the responsibility of Aviva Life and Annuity Company, and not that of any other insurer or company.

Indexed Universal Life Insurance

Lifetime Builder

A life insurance policy built for cash accumulation, retirement income and accessing cash value.

Download PDF: Lifetime Builder Indexed Universal Life

Advantage Builder

Offers cost-effective death benefit and an optional No-Lapse Guarantee Rider.

Download PDF: Advantage Builder Indexed Universal Life Guide

Aviva Survivorship Builder

Life insurance that works well for business, estate and charitable gift planning with coverage for two people.

Download PDF: Aviva Survivorship Builder Guide

Compare policies

This is a summary. Terms and conditions may vary by state. For details and to find out what's right for you, contact your local Aviva agent.

Lifetime Builder Advantage Builder Aviva Survivorship Builder
Issue Age 0-85 0-85 20-90
Minimum face value $25,000 ages 0-17
$50,000 ages 18+
$100,000 $250,000
Fixed or variable rate loans available Yes Yes Yes
Free withdrawals starting year 2 Yes, 20% Not applicable Not applicable
Guaranteed interest rate 2% 2% 2%
Policy split option Not applicable Not applicable Yes
Premiums Lifetime adjustable Lifetime adjustable Lifetime adjustable
Riders Available Full complement Full complement Full complement
Underwriting Premier available Premier available Available even if one life is uninsurable
Period of surrender charge 15 years 15 years 15 years
Summary Good for cash accumulation Good for low-cost death benefit Good for estate planning and heirs

All tax related information contained herein is based on our current understanding of federal tax laws as they relate to life insurance or other subject matter discussed. These laws are subject to change in the future. Neither Aviva nor its representatives offer legal or tax advice. You should consult a personal tax advisor on any tax matters. In order to comply with certain U.S. Treasury regulations, please be advised of the following: Unless expressly stated otherwise, any U.S. Federal tax advice contained in these materials is not intended or written to be used, and cannot be used, by any person for the purpose of avoiding any penalties that may be imposed by the Internal Revenue Service. Products issued by and all policy benefits are the responsibility of Aviva Life and Annuity Company, and not that of any other insurer or company.

Indexed Universal Life Insurance

Empire Solution

Offers cost-effective death benefit.

Download PDF: Empire Solution IV Agent Reference Guide

Life Builder

A life insurance policy built for cash accumulation and retirement income.

Download PDF: Life Builder III Agent Reference Guide

LifeStage UL

A traditional fixed universal life product with a higher guaranteed minimum interest rate.

Download PDF: Aviva LifeStage UL Guide

Compare policies

This is a summary. Terms and conditions vary by state.

Empire Solution IVLife Builder IIIAviva LifeStage UL
Issue Ages 0-85 (Age Nearest Birthday) 0-85 (Age Nearest Birthday) 0-85 (Age Nearest Birthday)
Minimum Face Amounts $100,000 $25,000 for issue ages 0-17
$50,000 for issue ages 18-85 standard
$100,000 for ages 18-85 (premier/preferred)
$25,000 for non-qualified internal replacements for standard underwriting
$25,000 for issue ages 0-17
$50,000 for issue ages 18-85 standard
$100,000 for ages 18-85 (premier/preferred)
$25,000 for non-qualified internal replacements for standard underwriting
Underwriting Classes

Premier Nontobacco age 18-75
Preferred Nontobacco age 18-85
Standard Nontobacco age 0-85
Preferred Tobacco age 18-85
Standard Tobacco age 18-85

Premier Nontobacco age 18-75
Preferred Nontobacco age 18-85
Standard Nontobacco age 0-85
Preferred Tobacco age 18-85
Standard Tobacco age 18-85
Premier Nontobacco age 18-75
Preferred Nontobacco age 18-85
Standard Nontobacco age 0-85
Preferred Tobacco age 18-85
Standard Tobacco age 18-85
Maximum Special Underwriting Class Table 16 Table 16 Table 16
Available in Qualified Plans Yes Yes Yes
Interest Crediting Based in part on the upward movement of a stock market index, with fixed (declared) rate strategies also available Based in part on the upward movement of a stock market index, with fixed (declared) rate strategies also available Fixed (Declared Rate)
Interest Rate Guarantee Provides a guaranteed minimum interest rate of 2%. On the fixed-term strategies, the policy guarantees the declared interest rate will never be less than 2%. On the indexed strategies, the policy guarantees that the interest credited will never be less than 2% compounded annually over the segment term. Provides a guaranteed minimum interest rate of 2%. On the fixed-term strategies, the policy guarantees the declared interest rate will never be less than 2%. On the indexed strategies, the policy guarantees that the interest credited will never be less than 2% compounded annually over the segment term. Provides a minimum annual effective interest rate guarantee of 3.5%.
Premiums Initial monthly premium must be at least equal to the minimum monthly premium. All future premiums are flexible. The monthly premium test will not be met unless sufficient premiums are paid. Initial monthly premium must be at least equal to the minimum monthly premium. All future premiums are flexible. The monthly premium test will not be met unless sufficient premiums are paid. Initial monthly premium must be at least equal to the minimum monthly premium. All future premiums are flexible. The monthly premium test will not be met unless sufficient premiums are paid.
Premium Banding N/A High band is face amounts greater than or equal to $100,000. Low band is for face amounts less than $100,000. High band is face amounts greater than or equal to $100,000. Low band is for face amounts less than $100,000.
Internal Revenue Code S. 7702 Compliance All three products offer Guideline Premium Test to meet the IRS definition of life insurance. All three products offer Guideline Premium Test to meet the IRS definition of life insurance. All three products offer Guideline Premium Test to meet the IRS definition of life insurance.
Basic No-Lapse Guarantee Period 5 years 5 years Based on issue age
Maturity Policies do not have a maturity age. Beginning at age 121, the following will occur: Premiums will no longer be accepted. Monthly deductions will be discontinued. The death benefit will continue until the insured’s death. Policies do not have a maturity age. Beginning at age 121, the following will occur: Premiums will no longer be accepted. Monthly deductions will be discontinued. The death benefit will continue until the insured’s death. Policies do not have a maturity age. Beginning at age 121, the following will occur: Premiums will no longer be accepted. Monthly deductions will be discontinued. The death benefit will continue until the insured’s death.
Death Benefit Options Level (Option 1): Greater of face amount and minimum death benefit.
Increasing (Option 2): Greater of face amount plus account value and minimum death benefit.
Level with Death Benefit Return of Premium Rider (Option 3): Greater of face amount plus accumulated premiums and minimum death benefit.
Level (Option 1): Greater of face amount and minimum death benefit.
Increasing (Option 2): Greater of face amount plus account value and minimum death benefit.
Level with Death Benefit Return of Premium Rider (Option 3): Greater of face amount plus accumulated premiums and minimum death benefit.
Level (Option 1): Greater of face amount and minimum death benefit.
Increasing (Option 2): Greater of face amount plus account value and minimum death benefit.
Level with Death Benefit Return of Premium Rider (Option 3): Greater of face amount plus accumulated premiums and minimum death benefit.
Face Amount Changes Face amount changes allowed after the first policy year.
Face Increases: Minimum face amount increase is $25,000. Evidence of insurability is required.
Face Decreases: Face reductions will reduce cost of insurance charges, but will not reduce minimum premiums, surrender charges, or the per $1,000 face amount charge.
Face amount changes allowed after the first policy year.
Face Increases: Minimum face amount increase is $25,000. Evidence of insurability is required.
Face Decreases: Face reductions will reduce cost of insurance charges, but will not reduce minimum premiums, surrender charges, or the per $1,000 face amount charge.
Face amount changes allowed after the first policy year.
Face Increases: Minimum face amount increase is $25,000. Evidence of insurability is required.
Face Decreases: Face reductions will reduce cost of insurance charges, but will not reduce minimum premiums, surrender charges, or the per $1,000 face amount charge.
Account Value Enhancement Beginning with the 10th policy year, Aviva will credit an annual increase to the Basic Interest Strategy based on the policy year’s average monthly account value (excluding outstanding loans and interest under the Annually Declared (Fixed) Loan Interest Option) for that year. The account value enhancement is guaranteed to be 0.5% per year. Beginning with the 10th policy year, Aviva will credit an annual increase to the Basic Interest Strategy based on the policy year’s average monthly account value (excluding outstanding loans and interest under the Annually Declared (Fixed) Loan Interest Option) for that year. The account value enhancement is guaranteed to be 0.6% per year. N/A
Available Riders Accidental Death Benefit
Additional Insured
Children’s Insurance Rider
Death Benefit Return of Premium
Guaranteed Purchase Option
Life Protector
Primary Insured
Wavier of Monthly Deductions
Waiver of Specified Premium
Waiver of Surrender Charges Due to Confinement – not available on Empire Solution IV
Early Cash Value—Available only on Life Builder III - (Available on corporate owned and premium finance cases only)
Accidental Death Benefit
Additional Insured
Children’s Insurance Rider
Death Benefit Return of Premium
Guaranteed Purchase Option
Life Protector
Primary Insured
Wavier of Monthly Deductions
Waiver of Specified Premium
Waiver of Surrender Charges Due to Confinement – not available on Empire Solution IV
Early Cash Value—Available only on Life Builder III - (Available on corporate owned and premium finance cases only)
Accidental Death Benefit
Additional Insured
Children’s Insurance Rider
Death Benefit Return of Premium
Guaranteed Purchase Option
Life Protector
Primary Insured
Wavier of Monthly Deductions
Waiver of Specified Premium
Waiver of Surrender Charges Due to Confinement – not available on Empire Solution IV
Early Cash Value—Available only on Life Builder III - (Available on corporate owned and premium finance cases only)
Surrender Charges 15-year declining schedule 15-year declining schedule 19-year declining schedule
Premium Load 5% on all premiums in all years.

In contract years 1-10, premium load is:
6% up to target
3% in excess of target
After the 10th contract year, the premium load is 3% on all premium.

5% on all premiums in all years.
Monthly Policy Charge $8 $8 $6
Expense Charges Monthly per thousand expense charge based on face amount issued, issue age, gender and underwriting class in all policy years. Monthly per thousand expense charge based on face amount issued, issue age, gender and underwriting class in during the first 10 policy years Monthly per thousand expense charge based on face amount issued, issue age, gender and underwriting class:
In policy years 1-10 on high bands
All years on low bands
Risk Charges Cost of insurance rates are charged on the net amount at risk. Cost of Insurance rates are charged on the net amount at risk. Banded at $100,000 Cost of Insurance rates are charged on the net amount at risk. Banded at $100,000

How Indexed Universal Life works for your client

It functions just like other universal life insurance policies. It can also protect loved ones, supplement client retirement income and help leave money to children and grandchildren. The difference is in how interest is calculated.

How the interest is calculated

An Aviva Indexed Universal Life insurance policy earns interest based in part on the upward movement of major stock market indices, such as the S&P 500®*. This provides greater potential for growth compared to other universal life policies where the interest rate is declared by the insurance company.

How Indexed Universal Life policies earn interest

The flexibility of Indexed Universal Life allows you to help your client determine which interest crediting strategy – or combination of strategies – to allocate premium dollars. The direction of the premium can be changed at any time for future payments and matured segments.

How your client is protected

They also get a guaranteed minimum interest rate with an Aviva Indexed Universal Life policy. While they are taking advantage of the market going up, they will never suffer losses due to the market going down. That’s because purchasing an indexed policy does not involve actually purchasing securities or stock, so it’s not the same as investing directly in the stock market.

Life insurance riders*

An Aviva life insurance rider is an addition or amendment to the life insurance policy. They provide different options and benefits that allow you to customize the policy for your client’s situation.

Wellness for Life Rider

Provides a reward for living a healthy lifestyle with a discount on your client’s premiums for those who qualify. They also receive a health-risk assessment as well as exclusive access to Mayo Clinic Health Services, including their 24-hour nurse line.

Accelerated Access Rider

Allows clients to accelerate a portion of their life insurance death benefit in the event they are diagnosed with a chronic illness that meets certain eligibility requirements. This rider has no cost until benefits are received.

No Lapse Guarantee Rider**

Guarantees a death benefit for life so clients are covered even if their premium payments lapse or fail to be current. Clients can also decide the length of their guaranteed period and premium payment period.

Life Protector Rider***

Allows for all of the premiums to be considered paid, making it a “paid-up policy.” No further premiums would be due when certain policy conditions are met. It also prevents the policy from lapsing (being discontinued) as a result of taking out a loan against the value of the policy.

Primary Insured Rider

Ensures a fixed premium amount that won’t change during the life of the insurance policy.

Additional Insured

Provides death benefit coverage on the lives of up to three family members. This premium is also a fixed amount.

Children’s Insurance

Lets clients extend a death benefit to a child’s life up to age 25 with a fixed premium amount.

Early Cash Value Rider

Designed for businesses, this provides a higher cash value in the early years of a policy. Should a client decide to terminate (surrender) the policy, surrender charges are waived and the first year’s premium is refunded.

Accidental Death Benefit

Adds coverage should the insured die from an accident.

Accelerated Death Benefit Rider

Speeds up the time in which benefits are paid should a client become terminally ill. A portion of the policy proceeds normally paid at death is paid while clients are living provided their life expectancy is 12 months or less.

Return of Premium Rider*

If a death benefit has not been paid on a life insurance policy, this rider will return the premiums, less any withdrawals, including accumulated interest. A fixed interest growth rate, from 0 to 6 percent, can be selected.

Waiver of Monthly Deductions Rider

All monthly deductions (for base policy, riders and policy charges) are waived should a client become totally disabled for at least 6 months. If clients become totally disabled before age 65, a lifetime benefit is payable.

Waiver of Premium Rider

The monthly premium specified under the rider is credited to the policy if clients become totally disabled for at least 6 months. If clients become totally disabled before age 65, a lifetime benefit is payable.

More riders available

Estate Protection Rider
Joint Term Rider
Waiver of Premium Plus
Policy Split Option
Waiver of Surrender Charge Due to Confinement Rider
Guaranteed Purchase Option Rider

*Rider availability varies by state and product. Riders are subject to certain limitations and my require additional charges unless otherwise specified. See terms of the riders for full details.

**The No-Lapse Guarantee Rider is called the "Extended Guarantee Rider" in Connecticut and the "Death Benefit Guarantee Rider" in Illinois. Certain policy changes can void the guarantee. See rider form for complete details. Charges for this rider apply.

***The tax treatment of this rider, if activated, is not well settled under current law. In particular, it is not clear whether the rider will result in a taxable event at the time it is activated. Anyone contemplating the purchase of the policy with this rider should consult a tax advisor as to the possible tax ramifications associated therewith.

 

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