Advantage Builder III   Indexed Universal Life   A policy just for you17537                       7/10
A policy                just for You                At Aviva, we understand your life evolves every day – that’s how life ...
Advantage Builder IIIis a universal life insurance policy that,like all life insurance products, providesa death benefit.U...
Features & Benefits    Protect your family                                                                       In additi...
The bottom line on NLG?You can have confidence that your lifeinsurance coverage will always be there.If you take care of e...
How the       No-Lapse Guarantee Rider works       When attached to Advantage Builder III, the No-Lapse Guarantee       Ri...
No-Lapse Guarantee restorationperiod; catching up if neededIf premium payments are not made as scheduledand the NLG value ...
Wellness for Life®    Live longer, Feel better, AND SAVE!    The first of its kind in the life insurance industry, Aviva’s...
Benefits from                                                                       Mayo Clinic Health SolutionsWellness f...
Wellness for Life® and      No-Lapse Guarantee:      The perfect match!      When the Wellness for Life Rider® is purchase...
Other Available RidersThink of an insurance rider like an option on a new vehicle: You can purchase just the car, or you c...
More about     Indexed Universal Life     Advantage Builder III is an indexed universal life                    Indexed UL...
How Indexed crediting worksWhen you apply for your policy, you choosefrom the available interest crediting strategies.We t...
Additional Policy Information     Paying your premium     Within limits, you choose the premium amount, based on the amoun...
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At Aviva, we never forget that our business is aboutthe people we insure.As you read this, thousands of Aviva associates a...
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Aviva index universal life insurance crediting interest to your cash value

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Aviva index universal life insurance crediting interest to your cash value..connie dello buono CA Life Lic 0G60621 408-854-1883 motherhealth@gmail.com Greater Bay area
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Aviva index universal life insurance crediting interest to your cash value

  1. 1. Advantage Builder III Indexed Universal Life A policy just for you17537 7/10
  2. 2. A policy just for You At Aviva, we understand your life evolves every day – that’s how life is. And as you and your unique needs change, we want to be there at every step. You see, Aviva doesn’t just sell insurance products - we provide solutions to the constant ups and downs life sends your way. Wherever you are and whatever your life brings, we understand that you want to take care of your family or business. We realize you need custom financial solutions that provide value and versatility – not just a one-size-fits-all product. And we also know you could use a little extra peace of mind. That’s why Aviva builds insurance around You. It’s how our life insurance product becomes your personal, customized policy: part of your future, part of your life, part of YOU. Products issued by Aviva Life and Annuity Company. This policy description provides highlights and does not cover all restrictions, conditions or limitations that may apply. Consult your agent or see the policy for full details. Benefits may be limited or excluded during the first two years of your policy under suicide and contestibility provisions.1
  3. 3. Advantage Builder IIIis a universal life insurance policy that,like all life insurance products, providesa death benefit.Universal life provides you flexibility in meetingyour long-term needs and objectives. It has benefitsthat you can use and depend on throughout yourentire life, including access to cash value. It addspredictability to your life.Universal life policies are flexible in that they allow youto choose the amount and frequency of your premiumpayments. Those premiums go toward paying policycosts. Any premium in excess of what is needed topay those costs can earn interest and become the cashvalue of the policy, which you can access via loans orwithdrawals (see page 13).This brochure provides additional details on how youcan customize Advantage Builder III to create a lifeinsurance policy that is centered around You! 2
  4. 4. Features & Benefits Protect your family In addition to its value and versatility, The death benefit, which generally is income tax- what sets apart Advantage Builder III free, gives you peace of mind in knowing your loved ones will be covered financially should you die. Plus, from other universal life products is its the value of the death benefit can change as your optional No-Lapse Guarantee Rider. needs change. Transfer your wealth What is a Advantage Builder III can help you meet tax obligations and cover final expenses, and also No-Lapse Guarantee? enhance the value of the estate you leave to your heirs. To answer that question, it helps to understand the basics of universal life insurance. Two policies in one Advantage Builder III gives you two distinct options It is possible with a universal life policy that coverage will depending on your needs. With the optional No- end before the death of the insured if cumulative premiums Lapse Guarantee Rider, you can choose to have a are not sufficient enough to cover policy costs.1 If the cash guaranteed lifetime death benefit. You can also value is not enough to cover these costs, the policy may purchase the policy without the rider, which gives lapse, meaning the death benefit is no longer in force. you the potential to have a higher policy account Circumstances that could cause a policy lapse include lower value. You can then access the available cash value than anticipated interest credited to the cash value, or for supplemental retirement income or other needs. higher than anticipated policy costs. You are in control As your needs change, your policy can change too. With Aviva universal life, you can change the That’s where a No-Lapse death benefit, increase or decrease your premiums, Guarantee (NLG) benefit helps and add options or riders to fit your needs. You can also access the policy’s cash value via loans or With NLG, once a coverage amount and premium payment withdrawals, subject to policy specifications. have been established, Aviva determines a guarantee period for that premium pattern. Provided you make those Gives you upside potential payments as scheduled, the policy will remain in force for Advantage Builder III is an indexed universal life the guarantee period even if the cash value drops to zero. policy. This means the interest credited to your You can also select the payment period and let us calculate policy’s account value, which grows tax-deferred, the required premium and guarantee the coverage. The is based in part on the upward movement of a coverage can be guaranteed for life. major stock market index. Over the life of the policy, this could mean more cash value you can use for supplemental retirement income or other needs. Gives you downside protection While you take advantage of interest crediting based on the market index going up, you don’t suffer losses due to the market going down. You also receive a guaranteed minimum interest rate. 1 This is a flexible premium life insurance product. The premium you elect to pay may not be sufficient to prevent this policy from lapsing prior to the death of the Insured. Also, by paying only the amount required to keep the policy in force, you may be forgoing the opportunity to build up a significant Account Value.3
  5. 5. The bottom line on NLG?You can have confidence that your lifeinsurance coverage will always be there.If you take care of everything withinyour control – for instance, making NLGpremium payments on time and not takingwithdrawals from the policy – you areguaranteed life insurance coverage evenif the policy’s net cash value falls to zero.It doesn’t matter if interest rates changeor the cost of insurance increases, you willhave coverage. 4
  6. 6. How the No-Lapse Guarantee Rider works When attached to Advantage Builder III, the No-Lapse Guarantee Rider2 can provide a guaranteed death benefit for the lifetime of the insured. (Form 2NLEEA10) As mentioned previously, a typical universal life policy requires a positive cash value to stay in force.3 When you elect the No-Lapse Guarantee, Aviva will calculate the premiums required to maintain the No-Lapse Guarantee value for as long as you want coverage, including choosing coverage for your entire life. This information will be provided to you in an illustration, which is a document that projects how your policy will perform based on certain assumptions. You will receive an annual statement, which will provide a projection of how long the policy will remain in force based on the premiums paid and guaranteed assumptions. You may request follow-up illustrations at any time. The No-Lapse Guarantee Rider, in effect, protects your policy from things outside your control, such as changing interest rates or policy costs. As long as premiums are paid as scheduled4, the NLG benefit will remain. If premiums are paid later or at lower levels, the guarantee period may be shortened. There is a 30-day grace period in the event that NLG premiums are not received on time. Other changes you may make to your policy could impact the NLG benefit and the coverage it provides, including: • A change in face amount; • A policy loan or withdrawal; • A change in underwriting class; • The addition, deletion or change of any rider. 2 The No-Lapse Guarantee Rider is called the “Extended Guarantee Rider” in Connecticut and the “Death Benefit Guarantee Rider” in Illinois. Certain policy changes can void the guarantee. See rider form for complete details. Charges for this rider apply. No-Lapse Guarantee Rider form number 2NLEEA10. Advantage Builder III policy form number 2EDB08. Not available in all states. 3 Coverage will terminate if loan indebtedness excees the policy cash value regardless of the No-Lapse Guarantee value. 4 By paying only the Minimum Monthly Premium, you may be forgoing the opportunity to build up a significant Account Value.5
  7. 7. No-Lapse Guarantee restorationperiod; catching up if neededIf premium payments are not made as scheduledand the NLG value less loan indebtedness falls tozero, Aviva provides a five-year restoration period.During this period, you can pay extra premiums torestore the rider’s value. Rider charges still applyduring the restoration period. Once the rider isback in force, a new five-year restoration periodwill begin.Causes for NLG Rider terminationThe NLG Rider will terminate at theearliest of: • Policy termination or maturity; • The month following a request for termination; • The expiration of the restoration period; • The exercise of the Life Protector Rider (see page 10)Other rider considerations • Available ONLY at the time of policy issue; • Available for issue ages 18-85; • Charges are deducted from the policy’s cash value; • Can be terminated later (but cannot be reinstated once terminated); • The NLG Rider itself does not have cash value 6
  8. 8. Wellness for Life® Live longer, Feel better, AND SAVE! The first of its kind in the life insurance industry, Aviva’s Wellness for Life® Rider is designed to help you realize the benefits of living a healthy lifestyle. Electing the Wellness for Life® Rider provides you access to wellness information services from Mayo Clinic Health Solutions that may help maintain or improve your health. And by meeting certain qualifications, you will receive Wellness Rewards, which reduce the cost of your insurance. (Form 2WFLAJ07-2) Assess your health. Knowing your personal and family health history and risks may help you discover lifestyle changes to improve your longevity and enhance your quality of life. Visit your doctor. It’s been proven that regular checkups may result in early detection of risks and diseases, as well as potential treatments and outcomes. Manage your weight. Studies suggest that unhealthy weight gain may be a contributing factor to many illnesses. Managing your weight may help to improve your overall quality of life. Be informed. Having access to high quality information about health, wellness and your specific health risks and conditions has been proven to enhance doctor-patient relationships and may lead to improved personal health.7
  9. 9. Benefits from Mayo Clinic Health SolutionsWellness for Life® Rewards are reductions Wellness for Life participants receive exclusivein cost of insurance rates. Reward benefits from Mayo Clinic Health Solutions5,percentages are declared at the company’s including:discretion, subject to a minimum guarantee. Mayo Clinic Health Risk Assessment, a confidentialParticipants become eligible for rewards questionnaire used to populate your personal,beginning in their third policy year. There are password-protected health management website.two Wellness Reward levels, based on theProgram’s qualification requirements. Your Personal Health Management Website. Based on your responses to the questionnaire, Mayo QUALIFICATION LEVEL 1: Participant satisfies Clinic will personalize your health management biennial requirement for routine physical. (Insured website with information and tools to help you reduce must pay cost of physical.) your health risks, manage your chronic conditions and reach your health goals. QUALIFICATION LEVEL 2: Participant satisfies biennial requirement for routine physical and maintains weight within a range established at the Mayo Clinic Discounts and special offers on time of underwriting. wellness resources and programs. “Ask Mayo Clinic” Nurse Line. This toll-free, round-the-clock nurse line is staffed by experienced registered nurses who draw on the resources of Mayo Clinic to answer your health-related questions. Quarterly Mayo Clinic Newsletter. Every three months, you’ll receive the Mayo Clinic EmbodyHealth newsletter with important information on wellness and healthy living.5 It is anticipated that Wellness for Life® services will be provided by Mayo Clinic Health Solutions for the life of the Program. But since your life insurance policy may remain in-force for many years, it is possible that the provider and/or menu of wellness services may change or be enhanced at some future date. 8
  10. 10. Wellness for Life® and No-Lapse Guarantee: The perfect match! When the Wellness for Life Rider® is purchased with the No-Lapse Guarantee Rider, any Wellness Rewards count toward the NLG premium requirement, in effect reducing the future out-of-pocket premium required. In other words, with Wellness for Life® and NLG, your premium is guaranteed to never go up and may go down!6 The following hypothetical example illustrates the power of the Wellness for Life® and NLG combination: Male Age 45 | Non Tobacco | $250,000 Face Amount | Wellness for Life II Net NLG Premium = Policy NLG Wellness Reward Net NLG Gross annual premium outlay reduced EXAMPLE - Year Premium Premium8 by guaranteed Level 2 Wellness Reward .5% discount7 of .5%7 earned in previous policy year (annually declared discount could be 10 $2,124 $32 $2,098 higher). This lesser premium amount could be paid without negatively 15 $2,124 $79 $2,056 impacting the policy’s No Lapse Guarantee. Paying only the Net NLG Premium will result in lower policy cash 20 $2,124 $169 $1,976 values and may impact future Wellness Rewards. 25 $2,124 $266 $1,883 30 $2,124 $449 $1,714 Over time, the savings 35 $2,124 $747 $1,458 can really add up! This hypothetical example is for illustration purposes only. 6 The premium guarantee assumes premiums are paid on a timely basis, no loans or withdrawals are taken from the policy, and no policy changes are made. 7 Level 2 Wellness Reward = .5% reduction to current (non-guaranteed) COI, multiplied by the number of years the policy has been in force. Policy year multiplier caps at 20. [Level 1 Wellness Reward guaranteed to be .25% (annually declared discount could be higher.)]9 8 The Net NLG Premium is not guaranteed and subject to change.
  11. 11. Other Available RidersThink of an insurance rider like an option on a new vehicle: You can purchase just the car, or you chooseoptional features like a sunroof, navigation system, leather seats, or more horsepower to enhance your drivingexperience. Insurance riders can enhance your life insurance policy. In addition to the No-Lapse Guaranteeand Wellness for Life® riders, Aviva offers several optional riders to customize your Advantage Builder III policy.These are just brief descriptions of the riders; talk to your Aviva agent about which riders are right for you.Riders are subject to state availability, certain limitations, and may require additional fees or premiums. Seeterms of the rider for full details.Riders that provide added protection Riders that provide the option ofAccelerated Death Benefit Rider additional insurance coverageThis rider allows you to access up to 50 percent Guaranteed Purchase Option Riderof the policy’s death benefit (up to a maximum of This rider provides you the option of purchasing$250,000) for expenses related to terminal illness additional specified amounts of life insurance,when the life expectancy of the insured is 12 without underwriting, at specified dates or whenmonths or less. (Form 2ABRF06) special life events occur. (Form 21011F02)Accidental Death Benefit Rider Primary Insured RiderThis rider will increase the death benefit amount Provides additional term insurance protection forin the event the insured died as a result of an the insured. (Form 2PIREBB08)accident. (Form 21024F02) Additional Insured RiderLife Protector Rider Provides term life insurance protection for anThe Life Protector Rider9 is designed to protect additional person. (Form 21052F02)you from borrowing too much from the policy.When policy provisions are met, including having Children’s Insurance Ridera certain percentage of the cash value being Provides term life insurance for children of theborrowed, the Life Protector Rider keeps the policy insured, including children born to or adoptedfrom lapsing. It’s also designed to protect you from by the insured, stepchildren or legally adoptedincurring unwanted income taxes in the event the children of the insured. Issue ages of children arepolicy should lapse from over-borrowing. (Form 15 days through 17 years. (Form 2CIBUA09)2PUEBI06) Riders for unique circumstances Death Benefit Return of Premium RiderRiders for use in the Provides an additional, increasing death benefitevent of disability equal to the premiums paid, accumulated withWaiver of Monthly Deduction Rider interest, less withdrawals, if desired. (FormInsurance costs are waived if the insured becomes 2ROPBB08)disabled, beginning after six months of total andcontinuous disability. Not available with the No-Lapse Guarantee Rider or the Waiver of SpecifiedPremium Rider. (Form 21042F02)Waiver of Specified Premium RiderBased on a specified amount chosen at the timeof application, a monthly amount will be creditedto the policy if the insured becomes disabled,beginning after six months of total and continuousdisability. Not available with the Waiver of MonthlyDeduction Rider. (Form 21043F02)9 The tax treatment of this rider, if activated, is not settled under current law. In particular, it is not clear whether the rider will result in a taxable event at the time it is activated. Anyone contemplating the purchase of the policy with this rider should consult a tax advisor as to the possible tax ramifications. 10
  12. 12. More about Indexed Universal Life Advantage Builder III is an indexed universal life Indexed UL insurance policy. The major difference between traditional universal life and indexed universal life is Terminology the way interest is credited to the cash value of your insurance policy. Strategy Within an indexed universal life policy, there are generally several interest crediting How the interest is calculated methods or “strategies” available from which you can choose. These strategies calculate An Aviva indexed universal insurance life policy credits interest interest based on the movement of an index. based in part on the upward movement of major stock market Advantage Builder III also has two strategies indices,excluding dividends. This gives you greater potential that are ‘fixed,’ meaning interest credits are for growth compared to other universal life policies where the not subject to the movement of an index but instead are declared by the Company. interest rate is declared by the insurance company. Segment Term How you’re protected A period during which interest is credited. You also get a guaranteed minimum interest rate with an Advantage Builder III has five-year and six-year Aviva indexed universal life policy. While you take advantage of index segment terms. Advantage Builder III’s interest crediting based on the market index going up, you will fixed segments have one-year and five-year not suffer losses due to the market going down. That’s because segment terms. buying an indexed policy does not involve actually purchasing or owning securities or stock, so it’s not the same as investing Participation Rate directly in the stock market. Advantage Builder III simply uses The participation rate is the percentage of stock market indices as a measuring stick. index growth for which the policyholder is With an indexed universal life policy, the life insurance provider, eligible to receive in interest credit (subject to the cap rate defined below). The participation in this case Aviva Life and Annuity Company, bears the rate may be reset for each segment at the investment risk of the policy. Your premium is never at risk, beginning of an interest crediting period and and your policy’s account value can never lose value due to at the discretion of the Company. However, the declining movement of the stock market or any external we guarantee that the participation rate on influence. Advantage Builder III will be at least 100 percent for the life of the policy. Individual segments may be subject to different Interest Rate Guarantee participation rates. Advantage Builder III provides a guaranteed minimum interest rate of 2%. On the fixed-term strategies, the policy guarantees Cap Rate the declared interest rate will never be less than 2%. On the Interest credits may be subject to a cap as indexed strategies, the policy guarantees the interest credited specified in the contract. The cap rate is the will never be less than 2% compounded annually over the maximum rate used in calculating interest credited to a segment in a given interest segment term. The guarantee will be applied at the end of the crediting period, subject to limitations. The segment term or upon lapse, surrender or maturity of the policy, cap rate may be reset for each segment at the whichever occurs first. These interest rate guarantees are for the beginning of an interest crediting period and life of the policy. at the discretion of the Company. Individual segments may be subject to different cap rates.11
  13. 13. How Indexed crediting worksWhen you apply for your policy, you choosefrom the available interest crediting strategies.We then follow a few steps for premiumdirection, as outlined below. PREMIUM DOLLARS (Net of Sales Charge)When you make a premium payment, the net premiumsgo into what Aviva calls the “Basic Interest Strategy.”This premium sits in this strategy until enough value hasaccumulated to cover approximately one year’s cost ofinsurance and other policy charges.10 Funds in excess of thisamount are then directed to the other strategies you select.Funds in the Basic Interest Strategy earn a fixed interest ratedetermined by the Company. BASIC INTEREST STRATEGYExcess dollars from the Basic Interest Strategy createinterest crediting ‘segments’ (depending on the strategyor strategies that you choose). Segments are created twotimes each month when amounts are available from theBasic Interest Strategy. Over time, a policy will likely contain CHOOSE FROM SEVENmany active interest crediting segments. At the end ofeach indexed strategy crediting period (and monthly with INTEREST CREDITING STRATEGIESfixed strategies), interest is applied according to strategyspecifications and interest credits, if any, for that period arelocked in.At the end of every segment term (1, 5 or 6 years,depending on the strategy), the segment dollars matureand are placed back into the Basic Interest Strategy, alongwith any new premium, to begin working for you again. MATURED VALUEFor more details about how this indexed life policy works, includingmore information on how interest is credited, please refer to ourbrochure “Understanding Indexed Universal Life.”10 As with most universal life policies, the cash value is determined by the sum of premiums paid net of any loads, deductions of policy charges, plus interest credited. Policy charges are deducted monthly and include a flat administrative fee, an expense charge based on face value issued, cost of insurance charges, and charges for any riders. 12
  14. 14. Additional Policy Information Paying your premium Within limits, you choose the premium amount, based on the amount of coverage and your life insurance objectives. As with most universal life policies, the cash value is determined by the sum of premiums paid net of any loads, deductions of policy charges, plus interest credited minus any applicable surrender charge. Policy charges are deducted monthly and include a flat administrative fee, a coverage charge per $1,000 of face value, cost of insurance charges, and charges for any riders. Premium amounts can be increased or decreased to be in line with your specific life insurance goals and can be adjusted, within limits, as those goals change. Death Benefit Options The death benefit you receive is dependent on the Death Benefit Option chosen. Option 1 (Level) Death Benefit = Face amount. Option 2 (Increasing) Death Benefit = Face Amount + Account Value. Account Value Enhancement Beginning with the 10th policy year, Aviva will credit an annual increase to the Basic Interest Strategy. The account value enhancement is guaranteed to be 0.5% per year and is credited at the end of the year. Loans and Withdrawals11 At any time, you can take a loan from available policy cash values and choose between a variable loan interest rate or a fixed interest rate. The differences between these two options include how the loan interest is determined and the rate credited to amounts borrowed. Loans will reduce the policy’s death benefit and cash values until they are paid back. You can also withdraw money from the policy after the first year, which then reduces the death benefit and the cash value by the amount of the withdrawal. Tax consequences and/ or surrender charges could also apply. Pro-rata surrender charges are not assessed on the first 20% withdrawn. Please note: Taking out loans and withdrawals may impact the No-Lapse Guarantee benefit and the coverage it provides. Our detailed annual statements showing the cash value and death benefit will keep you informed about your policy’s performance. 11 This policy is designed for long-term accumulation and not for short-term liquidity. However, if your needs change, the policy allows you to withdraw all or part of the cash value subject to certain limitations. Withdrawals may be subject to surrender penalties imposed by the company. Amounts withdrawn may also be subject to tax liability or tax penalties. Partial surrenders and loans may affect policy values and death benefits. Aviva does not provide tax, legal or accounting advice; always consult your own personal advisor for tax, legal, or accounting advice.13
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  16. 16. At Aviva, we never forget that our business is aboutthe people we insure.As you read this, thousands of Aviva associates are focused on our simplethree-letter mission statement:YouYou can count on us to be here when you need us.We’re making business and investment decisions that will ensure we can meet ourobligations to you and your loved ones.We’re developing new ways to provide better service to you.We’re challenging ourselves to reinvent the way we look at life insurance andannuities, so we can continue to meet the financial needs of a changing world—your world.Most of all, we’re drawing on the experience of our parent company, Avivaplc, with their more than 300-year legacy. As the oldest continuously operatinginsurance group in the world, Aviva has endured and thrived through centuries ofwar and peace, booms and recessions and constant change. The highs and lowshave taught us to be prepared so you can count on us, especially during times ofuncertainty.We are honored that you’ve put your trust in Aviva.We won’t let you down.This brochure contains highlights only. You should refer to the AdvantageBuilder III Indexed Universal Life policy for a full explanation. All tax relatedinformation contained herein is based on our current understanding offederal tax laws as they relate to life insurance or other subject matterdiscussed. These laws are subject to change in the future. Neither Avivanor its representatives offer legal or tax advice. You should consult apersonal tax advisor on any tax matters.In order to comply with certain U.S. Treasury regulations, please be advisedof the following: Unless expressly stated otherwise, any U.S. Federal taxadvice contained in these materials, including attachments, is not intendedor written to be used, and cannot be used, by any person for the purpose Products issued byof avoiding any penalties that may be imposed by the Internal Revenue Aviva Life and Annuity CompanyService. 7700 Mills Civic ParkwayProducts issued by and all policy benefits are the responsibility of Aviva Life West Des Moines, IA 50266-3862and Annuity Company, and not that of any other insurer or company. www.avivausa.comPolicy form 2EDB08. Availability varies by state.Covered by United States Patent No. 7,376,60917537 7/10

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