Indexed Single Premium Life Insurance
Aviva's Multi Choice Indexed
Single Premium Life product is designed to provide
your senior clients with a life insurance solution
that could help them pass on a larger legacy to their
heirs - with a death benefit that, in most cases, is
received income tax-free by the named beneficiary.
Description & Highlights
“picture the possibilities for you and your clients ”
-
Indexed Universal Life with a lifetime guaranteed death benefit for a single premium
Several choices of interest crediting strategies
- Safe and efficient 'Legacy Asset' that transfers to heirs
- Life insurance death benefit, in most cases, passes income TAX-FREE to the beneficiary
- Interest grows tax-deferred
- Simplified underwriting, no medical exams - standard through Table 4!
- 10% Beneficiary Settlement Option Enhancement
- Penalty-free withdrawals available beginning year two*
- Potentially increasing death benefit
- Nursing Home and Accelerated Death Benefit Riders give access to dollars when specific health conditions are met
Who Can Benefit from Single Premium Life?
- Your senior clients who have money that they hope to pass on to their family
- Customers who wish to boost their estate legacy and pass it to heirs in a tax-advantaged manner
- Clients who are in good health and don't need the money for income
- Clients with inforce deferred annuities from which they do not plan to take withdrawals, and they do not plan to annuitize**
- Your clients with dollars in various savings vehicles such as savings accounts, money market accounts and CDs that are not needed for current income
- Clients who have a favorite charity and want to leave a specified amount that is larger than their original contribution - the single premium may be tax-deductible
- Your customers with dollars in bonds, equities or IRAs/401(k)s who want to pass on an enhanced benefit upon death**
- Clients who own current life policies that may not be performing as expected or policies that do not include a guaranteed death benefit**
Product Specifications
Issue Ages:
50-85, age last birthday.
Underwriting Classes:
Non-tobacco
Tobacco
Simplified Underwriting:
• This product is underwritten on a simplified basis
only (as described below).
• Available up to the Net Amount at Risk (NAR =
Face Amount – Single Premium).
• Up to 4 tables will be considered standard.
• No table ratings or flat extras will be issued.
Simplified Underwriting Limits (Maximums):
| Issue Ages | Maximum Net Amt. at Risk Per Life |
|---|---|
50-70 |
$150,000 |
71-75 |
$100,000 |
76-85 |
$50,000 |
Risk Charges:
- Current Cost of Insurance (COI) rates vary by age, gender and tobacco use.
- Guaranteed COI rates are based on the 2001 CSO mortality table.
Minimum Premium:
Greater of $10,000 or the amount required for a $25,000
face amount.
Maximum Premium:
Initial premium limited to the amount that generates
the maximum per-life net amount at risk, subject
to the Company’s maximum retention limit.
Premium Basis:
Non-Qualified sales only.
Guaranteed Interest Rate:
2% minimum annual effective interest rate guarantee
upon the earlier of policy termination or segment
maturity.
Current Interest Crediting Strategies
Basic Interest Strategy:
The initial ‘holding
place’ for premium and ongoing policy charges.
Fixed and Indexed Strategies:
All have a Five-Year term:
- Fixed Term Strategy
- One-Year Point-to-Point Strategy (PtP)
- One-Year Monthly Cap Strategy (MCS)
- One-Year Monthly Average Strategy (MAS)
No-Lapse Guarantee:
Lifetime Guaranteed Death Benefit equal to the
initial face amount. Loans, withdrawals, and accelerations
of the death benefit impact the guarantee as described
in this guide.
Death Benefit:
Only one death benefit option is available on Multi
Choice Indexed SPL—the Level Death Benefit
Option (Option 1).
Paid-Up Policy:
The death benefit is guaranteed for life with the payment
of the single premium. Policy charges cease at
age 121.
Request Your FREE Contracting Kit Today!
*Withdrawals will reduce the guaranteed death benefit. If the policy is an MEC, withdrawals will be taxed as income to the extent that there is a gain in the contract.
**Taxation normally required, based on any gain at the time of surrender or transfer. Penalties or surrender charges may apply on the existing products.