How Laurie and Jon could use indexed universal life*

This is Laurie and John, and they have an 8-year-old daughter at home. Laurie won’t tell us exactly how old she is, but let’s assume she and Jon are 42.

Their topics of conversation
Like many their age, they had children a little later in life and are looking at both ends of the boomer squeeze: a young child at home and aging parents nearby. They want to fund an education, a retirement and still do their favorite pastime, travel.

Their solution
Laurie and Jon are well suited for an Aviva indexed universal life insurance policy. It’s one of the most flexible financial tools they can own, providing dollars when they are needed most. An indexed universal life policy also has the potential for building substantial cash value by eliminating the downside risk of investing directly in the markets.

Results
An annual premium of $4,000 until he’s 65 gets Laurie and Jon an initial death benefit of $253,026, access to funds as cash or as collateral for a loan, and it also gives them an income stream of $23,228 they can use from the age of 66 to 100.

At age 66, the policy projects a maximum annual variable loan of $23,228, which Laurie and Jon could take each year to supplement his retirement income to age 100. If they live to age 100, this creates a potential cash flow of $812,971 from $92,000 in premiums paid—a very healthy return.

At age 100, the policy has more than $730,000 of projected cash value and death benefit.

Benefits of indexed universal life
• Credited interest linked to S&P 500 Index
• Upside potential, downside protection
• Use policy as collateral with outside lending
• Use cash value for education, emergencies and retirement

How you could use indexed universal life

Laurie and Jon’s situation is just one example of what you can accomplish with an indexed universal policy from Aviva in your financial portfolio. What’s important is how it could work for you and your loved ones. A local Aviva agent can help identify ways to make Aviva indexed universal life insurance work for you.

*This case study is for illustrative purposes only and is not guaranteed. This example uses values for Lifetime Builder II (form #2ECI06). Aviva does not authorize its agents, employees, or representatives to give legal, tax or accounting advice. The information on this website reflects our understanding of current laws as they relate to insurance products. These laws are subject to change in the future. Please consult your personal advisor for any needed legal, tax or accounting advice.

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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