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Lifetime Builder Lifetime Builder When you’re ready to start building your life insurance policy, one of your options is Aviva’s Lifetime Builder indexed universal life. Lifetime Builder Indexed Universal Life is a flexible life insurance policy that can fit many needs. This product offers a death benefit while also giving you the opportunity to build cash value. The policy’s cash value can earn interest based in part on the upward movement of a stock market index, while offering protection against the impact of market downturns. We give you flexibility on how much and how often you pay premiums. Lifetime Builder also gives you death benefit options, interest crediting choices and several optional features to customize this policy for your individual situation. We designed this policy around our most important customer: You! 17713 8/10
Paying your premium Aviva gives you the flexibility to pay your premiums monthly,quarterly or annually. Within limits1, you even choose the premiumamount based on the amount of coverage and your life insuranceobjectives. Premium amounts can be increased or decreased to be in line with your specific death benefit andcash accumulation goals and can be adjusted, within limits, as those goals change. One of the advantages of Lifetime Builder is that it allows you to adjust your premium based onyour current life stage. You can begin laying a solid foundation even when you’re starting out in lifewith a limited budget. Then, as you enter new life stages, you can adjust your premium paymentsand build more cash value for the future.How your policy accumulates cash value In a universal life insurance policy, net premiums2 go into theAccount Value of your policy, from which insurance costs and otherpolicy charges are deducted on a monthly basis. Interest is thencredited to your Account Value periodically. The Account Valuerepresents the cash accumulation feature of your policy. Lifetime Builder is an indexed universal life With an indexed universal life policy, the lifeinsurance policy. The major difference between insurance provider, in this case Aviva Life andtraditional universal life and indexed universal Annuity Company, bears the investment risk oflife is the way interest is credited to the cash the policy. Your premium is never at risk, andvalue of your insurance policy. your policy’s account value can never lose value solely due to the declining movement of the An Aviva indexed universal life insurance stock market or any external influence.policy credits interest based in part on theupward movement of major stock market Indexed Universal Life policies are notindices3 (e.g.—The Standard & Poor’s 500), stock market investments and do not directlyexcluding dividends. This gives you greater participate in any stock or equity investments.potential for growth compared to traditional Market Indices do not include dividends paiduniversal life policies, where the interest rate is on the underlying stocks, and therefore do notdeclared by the insurance company, particularly reflect the total return of the underlying stocks;in a low-interest rate environment. an index universal life policy is not comparable to a direct investment in the equity markets. You also get a guaranteed minimum interest Clients who purchase indexed universal life arerate with an Aviva indexed universal life policy. not directly investing in a stock market index.While you take advantage of interest creditingbased in part on the market index going up, Aviva’s Lifetime Builder offers five indexyou will not suffer losses due to the market crediting strategies, and two fixed-term interestgoing down. That’s because buying an indexed crediting strategies that are not linked to anpolicy does not involve actually purchasing or index, giving you choices to customize the policyowning securities or stock, so it’s not the same for your unique situation.as investing directly in the stock market. LifetimeBuilder simply uses stock market indices as ameasuring stick.1 Your policy will include a contractual minimum premium payment to keep your policy in force. Also, because of the tax advantages of life insurance, the Internal Revenue Code has established maximum premium limits based on your policy’s face amount.2 Net premiums are your paid premiums less a percentage charge that varies based on the product selected.3 Indexed interest crediting strategies are based on the upward movement of an index, subject to limitations such as caps and participation rates. See your policy for details.
Interest Rate Guarantee Lifetime Builder 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 indexedstrategies, the policy guarantees that the interest credited will never be less than 2% compoundedannually over a defined period of time (either 1, 5, or 6 years, depending on the index creditingstrategy chosen). The guarantee will be applied at the end of the fixed period or upon termination ormaturity of the policy, whichever occurs first. These interest rate guarantees remain for the life of thepolicy.Death Benefit Options Lifetime Builder provides two death benefit options. You can chooseone of these two options at policy issue.You can choose a level death benefit.Death Benefit = Face Amount The advantage of choosing a level death benefit is that, as your Account Value grows, the amountwhich your cost of insurance charges are based on decreases over the life of the policy. Your deathbenefit will equal the face amount of your policy at the time of death, minus prior withdrawals orunpaid loans.Or you can choose an increasing death benefit.Death Benefit = Face Amount + Account Value The advantage of choosing an increasing death benefit is that your death benefit will not onlyinclude the face amount, but also the account value of your policy.
Account Value Enhancement Beginning with the 10th policy year, Aviva will credit an annual increase guaranteed to be 0.6% ofyour policy’s Account Value per year and credited at the end of the policy year.Surrender Charges If you choose to cancel your policy or withdraw more than the contracted maximum, a surrendercharge may be assessed. Surrender charges apply in the first 15 years of your policy on a decliningschedule.Loans and Withdrawals At any time while your policy is in force and has cash value, you can take a loan from availablepolicy cash values and choose between a variable loan interest rate or a fixed interest rate. Thedifferences between these two options include how the loan interest is determined and the ratecredited to amounts borrowed. Consult your Aviva insurance professional about which option is rightfor you. Outstanding loans and withdrawals may reduce the policy’s death benefit and cash values. You may also withdraw money from the policy after the first year, which then reduces the deathbenefit and the cash value by the amount of the withdrawal. Tax consequences and/or surrendercharges could also apply. Surrender charges are not assessed on the first 20% withdrawn. Our detailed annual statements show the cash value and death benefit will keep youinformed about your policy’s performance.Optional Riders Aviva offers several optional features, called riders, to further customize your Lifetime Builderpolicy. You can choose riders that provide additional coverage or that protect you in case of disabilityor confinement in a nursing facility or hospital. Aviva even offers its one-of-a-kind Wellness forLife® Rider, which rewards you for practicing healthy habits by saving you money on your coverage.For more information on how these riders work and what they can add to your policy, talk to yourinsurance professional and refer to our Aviva Riders brochure.This brochure contains highlights only. You should refer to yourLifetime Builder IUL 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. NeitherAviva nor its representatives offer legal or tax advice. You shouldconsult a personal tax advisor on any tax matters.Products issued by and all policy benefits are the responsibility of Products issued byAviva Life and Annuity Company, and not that of any other insurer or Aviva Life and Annuity Companycompany. 7700 Mills Civic ParkwayGuarantees provided are subject to the financial strength of the issuing West Des Moines, IA 50266-3862insurance company; not guaranteed by any bank or the FDIC. www.avivausa.comPolicy form 2ECG10Covered by United States Patent No. 7,376,60917713 8/10