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.

 

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*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.