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
How indexed universal life works for you
It functions just like other universal life insurance policies. It can also protect your loved ones, supplement your retirement income and help you leave money to your children and grandchildren. The difference is in how interest is calculated.
How the interest is calculated
An Aviva indexed universal insurance life policy earns interest based in part on the upward movement of major stock market indices, such as the S&P 500*. This gives you greater potential for growth compared to other universal life policies where the interest rate is declared by the insurance company.
How you’re protected
You also get a guaranteed minimum interest rate with an Aviva indexed universal life policy. While you’re taking advantage of the market going up, you’ll never suffer loses 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.
Two types
The two basic types of Aviva indexed universal life policies have to do with how you pay the premiums. One is a large single premium type policy and the other requires the traditional yearly installments. Otherwise both types of policy give you many of the same benefits with a few minor differences.
The single premium
An Aviva indexed single premium policy simply means that your premium or payment is in one lump sum. It’s designed for older people who may have a lump sum of money and don’t currently need it for income but may need access to it in the future.
How much you pay
A lump sum minimum of $10,000 can be transferred from a bank savings account, a bank certificate of deposit (CD), an IRA and many other places including an annuity.
A few key features
• Tax-free death benefit
• Guaranteed minimum interest rate
• Efficient transfer to heirs
• No medical exams needed
• Benefits for nursing home and terminal illness
• Income stream with withdrawals starting in year 2
The flexible premium
An Aviva indexed universal life policy is generally purchased in yearly or monthly premium payments. This flexible premium policy from Aviva is ideal for a person of any age who would like to build the value of the policy over a long period of time.
How much you pay
The important thing to remember is that you decide how much your premium is, and you can change that throughout the life of the policy. The death benefit and interest credited to your policy is then determined by your premium amount, your age, and any riders you’ve chosen for customizing your policy. Your health is also a factor, as you’ll need to take a physical exam. Your health can also work in your favor; the Wellness for Life rider can lower your cost of insurance if you stay healthy.
A few key features
• Tax-free death benefit
• Free withdrawals up to 20%
• Efficient transfer to heirs
• Guaranteed minimum interest rate
• Flexibility of customizing coverage and premium payments
How much insurance do you need
This can be answered by working with a local Aviva agent to understand your circumstances and your priorities. You’ll want to consider what the beneficiary of your life insurance policy may need to cover: mortgage, credit card debt, consumer loans, childcare, college education for dependents and funeral costs. Also consider the replacement of your income if others depend on it and for how long it would need to be replaced.
Your beneficiary
The beneficiary is the person or persons who receive the benefits (the value) of the insurance policy upon your death. You will name those persons when you purchase the policy, and you can change or add them as needed.
*"Standard & Poor’s ©", "S&P©7", "S&P 500©", "Standard & Poor’s 500©" and "500©" are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by Aviva. Our Indexed UL products are not sponsored, endorsed, sold or promoted by Standard & Poor’s, and Standard & Poor’s makes no representation regarding the advisability of these products.
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.
