How universal life works for you

There are two basic types of Aviva universal life insurance policies: the single premium policy and a traditional yearly premium policy. The biggest difference between the two is in how you fund them. Otherwise both types of universal life policies give you many of same benefits with a few other differences.

The single premium

An Aviva 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

A traditional Aviva 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.

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.

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