Indexed Life Insurance
AVIVA'S INDEXED LIFE PRODUCTS OFFER:
- 100% guaranteed minimum Participation Rate for the life of the policy
- Basic 5-year and 15-year no-lapse premium guarantees
- Lifetime rolling target premium. Premiums paid up to the first-year target provide first- year commissions regardless of when the premiums are received.
- Values illustrated beyond age 100
- Accessibility to cash values through withdrawal and loan options
- Multiple underwriting classifications
- High commissionable target premiums with strong cash value performance available with Lifetime Builder
- Account value enhancement beginning in the 10th policy year available with Vision Builder and Lifetime Builder
- Choice of variable rate or annually declared (fixed rate) policy loans
- Advantage Builder offers an incredible extended death benefit guarantee for the lifetime of the insured when the No Lapse Guarantee Rider is added
Aviva/AmerUs Life's Indexed Universal Life portfolio consists of several flexible premium universal life plans with an index feature that can help your clients build a solid foundation of financial protection for their families, businesses or estates.
Lifetime Builder: Designed for cash accumulation and retirement income. Provides the highest target premiums of any product in the IUL portfolio.
Vision Builder: Designed for cash accumulation and retirement income. Provides highest account value enhancement on any product in the IUL portfolio.
Liberty Builder: Designed for cash accumulation, retirement income and death benefit protection. Provides higher early year cash values and has more competitive premiums at older issue ages.
Advantage Builder: Designed to provide low-cost death benefit protection. Guaranteed death benefit available with the incredible No Lapse Guarantee Rider. Strong cash accumulation potential (w/o NLG Rider).
“Indexed Life products are currently without comparison”
Indexed Universal Life policies from Aviva/AmerUs Life Insurance Company are fixed, permanent life insurance plans. They combine the features of traditional universal life with the potential to earn interest based on the upward movement of a stock market index. With this unique combination of benefits, indexed life has become popular among financial consumers.
The major difference between traditional universal
life and indexed universal life is the way interest
is credited. While a traditional UL policy generates
a fixed interest rate determined by the insurer, an
indexed UL policy earns interest based on the movement
of a stock market index. We believe that an indexed
life product has the potential for greater interest
crediting than the more traditional products. Consequently,
this could mean more cash value and more retirement
income, as well as the option of having lower total
premiums if you wish to use the policy cash value to
support the internal expenses. An indexed life product
also provides the potential for reward with a guard
against market risks. While indexed products credit
interest based on the upward movement of an index,
these products are not securities. Purchasing an indexed
life policy is not the same as making an investment
directly in the stock market.
Aviva's Indexed Universal
Life policies offer
five indexed interest crediting strategies that credit
interest based on the movement of an index. Three
different indices are used, varying by strategy:
Standard & Poors 500 Composite Stock Price Index: This index is often regarded as the standard for broad stock market performance. It is used to measure the average stock price changes of the 500 most widely held companies representing over 100 specific industry groups. The S&P 500 represents approximately 70 percent of the total domestic U.S. equity market’s capitalization.
NASDAQ-100 Index: This index represents 100 of the largest domestic and international nonfinancial companies listed on the NASDAQ Stock Market based on market capitalization. It reflects companies across major industry groups, including computer hardware and software, telecommunications, retail/wholesale trade and biotechnology.
Dow Jones Industrial Average: This index is probably the best-known and most widely followed index in the world. It consists of 30 of the largest publicly traded firms in the U.S., including retailers, oil, technology, pharmaceutical and entertainment companies. The DJIA accounts for approximately 29 percent of the investable U.S. market, as measured by Dow Jones.
In addition, the indexed strategies include the following features:
Interest Lock-In
Excess dollars directed to the indexed strategies (other
than the Two-Year Point-to-Point) creates a new five-year
segment. Interest is calculated and credited every
12 months on the funds in a segment. In effect, we
lock in any interest every 12 months within a segment
and protect it from potential future downturns in
the index. Excess dollars directed to the Two-Year
Point-to-Point Strategy creates a new six-year segment.
Interest, if any, is calculated and credited each
24 months on the funds in a segment. Interest is
locked in every 24 months within a segment and protected
from potential future downturns in the index. Excess
dollars directed to a new indexed strategy will result
in a newly created indexed segment with a new starting
point, participation rate, and cap, if applicable.
Over time, you will generally have a number of distinct
indexed segments within the policy.
Resetting the Index Measurement
One of the advantages of the indexed crediting methodology
is that the index is reset at regular intervals for
the purpose of measuring the movement in the index.
In the case of the One-Year Monthly Cap Strategy,
the index is reset at the beginning of every month
during the interest crediting period. For all other
indexed strategies, the index is reset at the beginning
of each interest crediting period. This means that
if the index declines over an interest crediting
period, you do not have to wait for the index to
return to its previous level before you start participating
in any subsequent index increases.
Aviva offers several indexed interest crediting strategies:
- One-Year Point-to-Point
- One-Year Monthly Average
- One-Year Monthly Cap
- One-Year Multi Index
- Two-Year Point-to-Point
With the exception of the Two-Year Point-to-Point, each of the strategies listed above has a five-year segment term. The measurement of the index(es) is noted periodically, according to strategy specifications, and any increases are locked in annually and any decreases are ignored. At the end of the five-year segment term, the strategy value will be increased, if needed, per the interest rate guarantee outlined below. The Two-Year Point-to-Point has a six-year segment term. The measurement of the index is noted every other segment year and the interest rate guarantee is applied at the end of the six-year period.
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