Indexed Second To Die Universal Life

The Aviva Indexed Survivor UL (ISUL) is a flexible premium Survivor Universal Life Insurance policy (second to die) with an Index linking crediting feature. Aviva has combined the solid guarantees of a survivor policy with the innovation of our indexed products. It provides the coverage needed with flexibility and is specifically designed for people with sophisticated financial and insurance needs.

“a very efficient and cost effective way to help your clients contend with estate tax issues”

Paying estate taxes isn’t the only use for a survivor policy. It can be used for a variety of purposes:

• Preserve your heirs’ inheritance - The policy can cover the costs of state inheritance taxes, income taxes, property taxes, probate costs, medical expenses, funeral expenses, mortgages, debts, and legal fees, all of which can significantly reduce the value of an inheritance.
• Charitable gifts - To replace the amount given to a charitable organization in order to provide heirs with the full value of your estate.
• Key person coverage - To hire qualified people or maintain the
  value of a business after the deaths of two partners or key employees.
• Wealth transfer - An alternative to owning tax-heavy assets such as IRAs and unqualified annuities.
• Lifetime support - To provide lifetime financial support to a special needs child who may outlive the parents.

Aviva is pleased to offer our Indexed Survivor UL plan (ISUL) as another valuable indexed life insurance alternative.

Product Features:

• A last survivor life insurance policy that insures two lives and pays the death benefit upon the second death
• An optional No-Lapse Guarantee Rider that can ensure a guaranteed death benefit and/or a guaranteed premium payment period
• Index linked crediting options that include a guaranteed minimum interest rate while providing more growth potential than most traditional life insurance products
• Flexible premium payments and death benefit options
• An array of riders to customize the policy
• Access to cash value via policy loans and withdrawals (tax consequences and/or surrender charges could apply)

Issue Ages
20-85 for both insured, age nearest birthday

Maturity
Monthly deductions continue to the youngest insured’s age 121. If the policy is in force at that time, the face amount becomes fully paid-up and monthly deductions are stopped.

Minimum Face Amount
$250,000

Premiums
Premiums are flexible, subject to 10-year minimum premium and guideline premium limitations.

Lifetime Rolling Target Premium
Premiums paid up to the first year target provide first year commissions regardless of when the premium is paid.

Substandard Class Availability
Ratings up to Table 12 and ‘uninsurable’ are available. If one life is uninsurable, the other life cannot have a rating greater than those shown below:

Issue Age Uninsurable Life	Max Rating Insurable Life
20 - 75	Table 8
76 - 80	Table 4
81 - 85	Standard

Underwriting Classes
• Preferred Plus Non-Tobacco through age 75
• Preferred Non-Tobacco through age 85
• Preferred Tobacco through age 85
• Standard Non-Tobacco through age 85
• Standard Tobacco through age 85

Product Charges
• 6 percent premium load and $10 monthly fee
• Per $1,000 face amount charge (years 1-7 on a current basis; all years on a guaranteed basis)
• COIs charged on the net amount at risk

Death Benefit Options
Level (Option 1), Increasing (Option 2), Level with Death Benefit Return of Premium Rider (Option 3)

Policy Changes:

Face Increases
• Minimum face amount increase is $100,000.
• Evidence of insurability on both lives is required.
• No increases allowed if one of the insureds is deceased.

Face Decreases
• Face reductions will not reduce minimum premiums, surrender charges, or the per $1,000 face amount load.

Surrender Charges
15-year declining schedule

Other Factors Affecting Interest Crediting:

Any money which is removed from an indexed strategy segment during an interest crediting period for any reason (e.g., withdrawal, certain loans, policy surrender, to pay policy charges or expenses, etc.) is not credited with any index-linked interest for such interest crediting period.

Loans
Available in all years, interest collected in advance. Choice of variable rate or annually declared (fixed rate) policy loans (including preferred).

• Variable loan rate is equal to the Moody’s Corporate Bond Yield Average rate, but will never be less than 3 percent or more then 9.5 percent. An index-linked crediting rate is applied to the amount of the loan, for a low net cost
• Fixed rate loans have a 2 percent net cost
• Preferred fixed rate loans, available after 10th policy year, have a 0 percent net cost

Current Interest Crediting Stategies:

Basic Interest Strategy
The initial holding place for premium. A minimum balance is kept here and earns a fixed interest rate determined by the company. Excess premium moves from here to the other strategies chosen by the customer, according to policy specifications.

Fixed Term Strategies
• One-Year Fixed Term Strategy
• Five-Year Fixed Term Strategy

Indexed Strategies
• One-Year Point-to-Point (five-year term)
• One-Year Multi-Index (five-year term)
• One-Year Monthly Cap (five-year term)
• One-Year Monthly Average (five-year term)
• Two-Year Point-to-Point (six-year term)

Indices
• Standard & Poor’s 500 Composite Stock

Price Index
• NASDAQ 100 Index
• Dow Jones Industrial Average

Participation Rate
Determines the percentage of the index growth the policyholder is eligible to earn. Paticipation rates may vary by interest crediting strategy and can be reset at the beginning of an interest crediting period as specified in the policy. AmerUs' ISUL includes a participation rate that is guaranteed to be at least 100%.

Cap Rate
The cap rate is the maximum rate that is used in calculating credited interest for each strategy. Cap rates, which have minimums and may vary by strategy, and can be reset at the beginning of an interest crediting period as specified in the policy.

Guaranteed Interest Rates
The AmerUs Life ISUL policy provides a guaranteed minimum interest rate of 2%. On the fixed-term strategies, the policy guarantees that the declared interest rate will never be less than 2%. On the indexed strategies, the policy guarantees that the interest credited will never be less than 2% compounded annually over the segment term. The guarantee will be applied at the end of the segment term or upon lapse, surrender or maturity of the policy.

Riders/Options:

Optional No-Lapse Guarantee Rider
Lifetime guaranteed death benefit is available via the No-Lapse Guarantee (NLG) Rider. Available only at issue, the NLG rider keeps the policy from lapsing prior to the second death, provided that minimum required premiums are paid. Customers can choose the length of the guarantee and the terms of premium payment. The guarantee is highly dependent on the amount and frequency of premium paid.

Accelerated Benefits Rider
Automatically included where available, allows access of up to 50 percent or $250,000 in the event that the last survivor is diagnosed with a life expectancy of 12 months or less.

Estate Protection Rider
Provides additional term coverage for both lives and is payable only if BOTH insureds die during the first four policy years. Only available at policy issue. Conversions to permanent coverage only allowed during the first four policy years when both insureds are alive. Maximum substandard is Table 8.

Life Protector Rider
Provides paid-up coverage when certain policy and policy loan conditions are met (conditions are based on the younger insured’s age). Prevents policy from lapsing as a result of loan indebtedness. Rider can be added at any time prior to exercise, as long as the policy has positive cash value. A one-time charge is applied at the time the rider is exercised.

Death Benefit Return of Premium Rider
Provides additional, increasing death benefit on the lives of the insureds equal to premiums paid, less withdrawals, accumulated with interest, if desired. An interest growth rate, from 0 percent to 6 percent, can be selected when illustrating the rider. The interest growth rate is level in all years.

• Issue Ages: 20-70
• Available ONLY at time of policy issue
• Death Benefit: Payable upon the second death. Must be used in conjunction with Death Benefit Option 1 (level).
• Underwriting: Policy will be underwritten using the 15th year illustrated death benefit. Applications must include an illustration.
• Deductions: Rider face amount increases will incur cost of insurance charges. Rider face amount increases will not increase per $1,000 of face amount charges or surrender charges.
• Maximum Special Class: No limit
• Not available if the No-Lapse Guarantee Rider is purchased.

Joint Term Rider
Provides level term coverage for the two lives and is payable upon the second death. Only available at the time of policy issue. Maximum substandard is Table 8.

Policy Split Option
Automatically included where available and when both insureds are rated Table 8 or better. Allows the two insured individuals to split the policy into two separate policies on the two individual lives in the event of a divorce, legal dissolution of a business interest (if the insureds are business partners or co-stockholders) or a change in the federal estate tax law that results in a reduction of the Unlimited Marital Deduction to less than 75 percent of the adjusted gross estate; or a reduction of at least 50 percent of the tax rate in the maximum Federal Estate bracket. No evidence of insurability is required when the option is exercised, except when the exercise is due to the legal dissolution of a business interest.

 

Request Your FREE Contracting Kit Today!