Brochure from Aviva explaining how Indexed Life Insurance works

1. Understanding
Indexed
Life Insurance

2. Several years ago, we recognized
that a dramatic demographic shift
is occurring in the life insurance
marketplace. Focus is moving from
asset gathering to the pressing
issues of retirement, wealth
transfer and estate planning.
People are seeking products
that include protection and
guarantees, while still providing
reasonable potential for growth.
Aviva has responded by offering
a line of indexed life insurance
products to meet growing
consumer demand. Our indexed
products provide customers the
ability to receive interest credits
by allocating a portion of their
premium payments to an interest
crediting strategy tied to a
formula that takes into account
the performance of an index.
More than four million people will
turn 50 each year for the next 10
years, and the market for indexed
products is gaining momentum,
just as we predicted.
We hope that you find the
information in this guide both
useful and applicable for your
family or business. Thank you
for taking the time to explore
the ground-breaking indexed life
insurance products from Aviva.
A message from
Tom Godlasky
President & Chief Executive Officer
Aviva USA
Table of Contents
Introduction 1
How Indexed Life Works
Who Can Benefit 2-3
Where do Premiums Go 4
How the Policy Earns Interest 5
Interest Crediting Segments 5
Participation Rates and Caps 6
Indexed Strategies 7-9
Loans and Withdrawals 10-11
Policy Illustrations 12
How the Policy is Supported 13
Indexed Life Questions & Answers 14-15
Conclusion 16
Products issued by Aviva Life and Annuity Company.

3. Life insurance is one of the most important purchases an individual or small
business can make. It can help a family maintain its lifestyle after the death of
a loved one, or continue a business when one of the partners is gone.
Today’s life insurance consumer has more options than ever. You can buy
policies offering the potential to accumulate considerable cash value, or
products that stress stability and guarantees.
At Aviva Life and Annuity Company, we have a policy that can do both.
A policy designed
just for YOU!
1
It’s called
Indexed Universal
Life Insurance!

4. Indexed Universal Life
Indexed Universal Life policies from Aviva are flexible, permanent
life insurance plans. They combine the features of traditional
universal life with the potential to earn interest based on the
upward movement of a stock market index. However, Indexed
Universal Life is a fixed (as opposed to variable) life insurance
product, and therefore is not considered to be a security. With this
unique combination of benefits, indexed life has become popular
among financial consumers.
While Indexed Universal Life differs in some respects from
traditional universal life insurance, it provides some of the same
key benefits:
• Money for your family if you die with unmet obligations
• Tax-favored treatment of cash accumulation
• A source of emergency funds
In the typical universal life product design, net premiums (or
premiums net of a sales charge) are directed into the account
value of the policy. Each month, policy charges including the cost
of insurance (COI) are deducted from the account value. Interest
is credited to the account value on either a monthly or annual
basis. From year to year, the policy’s account value is increased
by net premiums and interest credited, and reduced by policy
charges.(See page 17)
Who Can Benefit
from Indexed Life Insurance?
Indexed life insurance buyers are typically individuals who:
• Want affordable life insurance protection with strong cash value
accumulation potential.
• Want flexible access to accumulated values for supplemental
retirement income or other cash needs. (Surrender charges may
apply)
• Want built-in product flexibility to better accommodate changing
financial circumstances
• Want the security and attractive interest potential provided by
Aviva indexed life insurance products
Since 1998, the companies
of Aviva USA have offered
an innovative universal life
product that provides flexibility,
guaranteed interest rates and
the potential to accumulate more
cash value over the life of the
policy than traditional universal
life policies. It’s called Indexed
Universal Life Insurance, and
it’s designed to accommodate
changes in your life that affect
your need for insurance, your
need for cash, and the amount of
premium you can afford to pay.
We believe indexed life policies
fulfill a variety of needs for a
variety of people. Whether you’re
a business owner wanting to
protect your company, a young
couple looking for protection
against the unknown or a baby
boomer planning for retirement,
we have an indexed plan to fit
your stage in life.
Because we believe the best
customer is an informed customer,
we’ve tried to answer some of the
most common questions about
indexed universal life policies and
how they work.
2

5. The major difference between traditional universal life and
indexed universal life is the way interest is credited. While
the account value of a traditional UL policy is credited with
interest based on a rate periodically declared by the insurer,
an indexed UL policy earns interest based in part on the
movement of a stock market index, excluding dividends. We
believe that an indexed life product has the potential over the life
of the policy for greater interest crediting than the more traditional
products. Consequently, this could mean more cash value and more
supplemental retirement income, as well as the option of having
lower total premiums if you wish to use the policy cash value to
support the internal expenses.
An indexed life product also provides the potential for reward with
a guard against market risks. At Aviva, we believe risk is okay for
your investment portfolio, but a life insurance contract should
provide some level of guarantees.
While indexed products credit interest based on the upward
movement of an index, subject to a cap rate, these products are
not securities. Purchasing an indexed life policy is not the same as
making an investment directly in the stock market.
Universal Life
A flexible premium, permanent
life insurance product designed
to cover the insured’s life.
Traditional UL pays an interest
rate as declared by the
company.
Index
A statistical composite that
measures changes in financial
markets. Examples include the
SP 500 Index, the Dow Jones
Industrial Average, etc.
Indexed Life
A life insurance policy structure
that credits interest based
on the movement of market
indices using specific indexed
calculations which vary by
method and policy.
Strategy
Within an indexed universal
life policy, there are generally
several interest crediting
methods or “strategies”
available from which you can
choose, that calculate interest
based on the movement of an
index.
Indexed Life
Insurance Summary
Customer appetite for risk is shifting toward products that include both protection and
guarantees. Indexed life insurance meets these needs.
LOWEST RISK HIGHEST RISK
Traditional
Fixed Life
Variable Life
with some guarantees
INDEXED
UNIVERSAL LIFE
Variable Life
3

6. Flexibility and Choices
When you purchase an indexed universal life policy,
you decide within established guidelines:
• How much insurance you need,
• The amount of premium you wish
to pay,
• The timing or frequency of your planned
premiums (i.e. monthly, quarterly, annually), and
• Whether you want the death benefit to
remain level or to increase over time.
When a policy is issued, Aviva sets a minimum premium amount that must
be paid to sustain the coverage during the no-lapse guarantee period. The
policy will also contain a maximum premium set by IRS guidelines. The more
premium you pay, for a given face amount of insurance, the greater your
potential for accumulating substantial cash values.
Basic Interest Strategy
The section of your policy that will hold net premium
payments to fund approximately one year of policy
charges and the cost of insurance before they are
directed into other interest crediting strategies. In
the event that there is no value in the Basic Interest
Strategy, policy charges and the cost of insurance will
first be deducted from the values in the fixed-term
strategies, if any, and then from the indexed strategies.
(Indexed Single Premium Life works differently. Please
see the SPL policy for complete details.)
Segment
A segment is created each time excess dollars are
directed to a fixed-term or indexed strategy. Each
segment has its own participation rate and cap rate.
(See page 6)
Segment Term
A one, five or six-year period of time that begins
when a segment is created. The segment term varies
by strategy. Funds cannot be redirected to another
strategy until the segment matures at the end of the
segment term.
Interest Crediting Period
May be 12 months or 24 months depending on the
indexed crediting strategy. Measured from the segment
creation date and every segment anniversary
thereafter throughout the
segment term.
Indexed Life
Insurance Summary
When you make a premium payment, the net premiums
go into the Basic Interest Strategy. That money remains in
the Basic Interest Strategy until there is enough to cover
approximately one year’s cost of insurance and other policy
charges.*(See page17) Funds in excess of this amount may
then be directed to the other strategies as described below.
Funds in the Basic Interest Strategy earn a fixed interest rate
determined by the company.
Excess dollars from the Basic Interest Strategy create interest
crediting ‘segments’ (depending on the strategy or strategies
that you choose). Segments are created two times each
month when amounts are available from the Basic Interest
Strategy. Over time, a policy will likely contain many active
interest crediting segments. At the end of each indexed
strategy crediting period (and monthly with fixed strategies),
interest is applied according to strategy specifications and
interest credits, if any, for that period are locked in.
At the end of every segment term (1, 5 or 6 years, depending
on the strategy), the segment dollars mature and are placed
back into the Basic Interest Strategy, along with any new
premium, to begin working for you again.
PREMIUM DOLLARS (Net of Sales Charges)
BASIC INTEREST STRATEGY
CHOOSE FROM SEVEN
INTEREST CREDITING STRATEGIES
MATURED VALUE
When you apply for your policy, you choose from the available interest crediting strategies (described on the next page).
We then follow a few steps for premium direction, as outlined below.
It Works:
Here’s How
4

7. Indexed Strategies
We offer several indexed interest crediting strategies, all of which are
detailed on the following pages.
• One-Year Point-to-Point
• One-Year Monthly Average
• One-Year Monthly Cap
• One-Year Multi Index
• Two-Year Point-to-Point
With the exception of the Two-Year Point-to-Point, each of the strategies
listed above has a five-year segment term. The measurement of the
index(es) is noted periodically, according to strategy specifications, and
any increases are locked in annually and any decreases are ignored. At the
end of the five-year segment term, the segment value will be increased,
if needed, per the interest rate guarantee outlined below. The Two-Year
Point-to-Point has a six-year segment term. The measurement of the
index is noted every other segment year and the interest rate guarantee is
applied at the end of the six-year segment term, if needed.
Fixed-Term Strategies
Although this is an indexed universal life product,
you have the option of directing all or some of
your premium dollars to a fixed-term strategy. We
offer two fixed-term strategies.
• The One-Year Fixed-Term guarantees the rate
for one year and matures each year.
• The Five-Year Fixed-Term offers a rate that,
by company practice, is maintained for the
segment duration (five years).
The fixed-term strategies are generally considered
a more conservative choice for excess dollars. You
simply choose the term and receive an interest
rate declared at the time the segment is created.
Funds remain in this strategy until the end of
the one-year or five-year term, at which time
the segment matures and the allocation process
begins again.
How the Policy Earns Interest
The flexibility of Indexed Universal Life allows you to determine what interest crediting strategy or
strategies to which you may allocate your premium dollars. You can change your strategy direction at
any time for future premium payments and matured segments.
* All strategies may not be available in all states.
Interest Crediting
When a Segment is Created
We create segments twice a month, on the 11th
and 26th (based on the ending index value from
the prior business day). Subject to the business day
and/or date, eligible premium received between
the 25th of the month and the 9th of the following
month would create a segment on the 11th of the
latter month. Eligible premium received between
the 10th and 24th of the month would create a
segment on the 26th of that month. Until such
time that premiums create a segment, they remain
in the Basic Interest Strategy, where interest is
credited by the company on a declared basis.
Interest Rate Guarantee
The Aviva Indexed Life policies provide 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.
When a Segment Matures
At the end of each segment term (either one, five, or six years, depending on
the strategy), the entire value of each segment is placed back into the Basic
Interest Strategy and the allocation process begins again based on strategy
choices at that time.
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.
5

8. Cap Rates
Each calculation period, the segment’s interest credits may be
subject to a cap as specified in the contract. The cap rate is the
maximum rate used in calculating interest credited to a segment
in a given interest crediting period, subject to limitations. The
cap rate may be reset for each segment at the beginning of an
interest crediting period and at the discretion of the Company.
Individual segments may be subject to different cap rates. An
explanation of cap floors (guaranteed minimum cap rate) can be
found both in your policy and in the illustration provided by the
company or your agent. Cap rates and floors vary by product.
100% $X =
Index Percentage
Increase
(If any)
Participation
Rate
Interest
Rate Credited*
* Actual interest credited
may be subject to a cap.
SCENARIO 1
Market
Increases 20%
These scenarios are illustrative only and are not intended to be a predictor of actual results.
Participation rates and caps are assumed to be constant in this example.
The Effects of Participation Rates and Caps
Understanding participation rates, caps and index measuring methodologies used to determine the credited rate is key when comparing
indexed life products. For an example, products offered by other companies with lower participation rates need substantially greater index
growth to achieve a credited rate equal to that of products using higher participation rates and caps.
Participation Rate
The participation rate is the percentage of index growth for
which the policyholder is eligible to receive in interest credit
(subject to the cap rate defined below). The participation
rate may be reset for each segment at the beginning of an
interest crediting period and at the discretion of the Company.
Individual segments may be subject to different participation
rates. However, we guarantee that the participation rate
on all of our indexed life insurance products will be at
least 100 percent for the life of the policy.
Participation Rates and Caps
Participation rates and cap rates are two important and unique
components of indexed life insurance products.
SCENARIO 2
Market
Increases 10%
EXAMPLE: If the annual cap rate
on the One-Year Point-to-Point is
12 percent and the index increase
is 13 percent, 12 percent would be
credited to the account value of
your policy.
Interest Credit Cannot
Exceed The Cap
%
POLICY 1 - Aviva POLICY 2 - Other Company
Aviva
100% Participation | 12% Cap
12% Credited
50% Participation | No Cap
10% Credited
Aviva
100% Participation | 12% Cap
10% Credited
CAP
50% Participation | No Cap
5% Credited
6

9. Indexed Strategies
7
* See the back cover of this booklet for complete disclosure information regarding the indices.
The majority of our indexed
crediting strategies use
the SP 500 Index as the
basis for interest crediting.
However, with our Multi Index
Strategy, the companies of Aviva
were the first to offer customers
the ability to participate in a
strategy that follows THREE
different indices within ONE,
single strategy—eliminating the
guesswork involved in deciding
which index should be chosen
for a strategy.
The Multi Index Strategy offers
you a unique blend of diversity
AND simplicity. See our detailed
description of the Multi Index
Strategy—and all of the other
strategy choices that we offer—
on the following page.
The Importance
of the Index
While indexed life insurance products from Aviva credit interest based on
the upward movement of an index and contain underlying guarantees, these
products are not securities. Purchasing an indexed life policy is not the same
as making an investment directly in a stock market index.
Our Indexed UL policies offer five indexed interest
crediting strategies that credit interest based on the
movement of an index. Three different indices are
used, varying by strategy:
Standard Poor’s 500 Composite Stock Price Index*
This index is often regarded as the standard for broad stock market performance.
It is used to measure the average stock price changes of the 500 most widely held
companies representing over 100 specific industry groups. The SP 500 represents
approximately 70 percent of the total domestic U.S. equity market’s capitalization.
NASDAQ-100 Index*
This index represents 100 of the largest domestic and international nonfinancial
companies listed on The NASDAQ Stock Market based on market capitalization. It
reflects companies across major industry groups, including computer hardware and
software, telecommunications, retail/wholesale trade and biotechnology.
Dow Jones Industrial Average*
This index is probably the best-known and most widely followed index in the world.
It consists of 30 of the largest publicly traded firms in the U.S., including retailers,
oil, technology, pharmaceutical and entertainment companies. The DJIA accounts for
approximately 29 percent of the investable U.S. market, as measured by Dow Jones.
In addition, the indexed strategies include the following features:
Interest Lock-In
Excess dollars directed to the indexed strategies (other than the Two-Year Point-to-Point)
create a new five-year segment. Interest is calculated and credited every 12 months on
the funds in a segment. In effect, we lock in any interest every 12 months within a
segment and protect it from potential future downturns in the index. Excess dollars
directed to the Two-Year Point-to-Point Strategy creates a new six-year segment. Interest, if
any, is calculated and credited each 24 months on the funds in a segment. Interest is locked
in every 24 months within a segment and protected from potential future downturns in the
index.
Excess dollars directed to a new indexed strategy will result in a newly created indexed
segment with a new starting point, participation rate, and cap, if applicable. Over time, you
will generally have a number of distinct indexed segments within the policy.
Resetting the Index Measurement
One of the advantages of the indexed crediting methodology is that the index is reset
at regular intervals for the purpose of measuring the movement in the index. In the
case of the One-Year Monthly Cap Strategy, the index is reset at the beginning of every
month during the interest crediting period. For all other indexed strategies, the index
is reset at the beginning of each interest crediting period. This means that if the index
declines over an interest crediting period, you do not have to wait for the index to return
to its previous level before you start paricipating in any subsequent index increases.

10. 4
3One-Year Point-to-Point Strategy
This strategy uses an “annual reset point-to-point”
design. Each year -- on the segment anniversary – we
measure the movement of the SP 500 Index from the
beginning to the end of the interest crediting period.
This value is then multiplied by the participation rate.
The resulting interest crediting rate can never be less
than zero and can never be more than the annual cap
rate. The cap rate and participation rate can change at
the beginning of every interest crediting period, within
specified limits. The participation rate is guaranteed to
never be less than 100%.
Two-Year Point-to-Point Strategy
This strategy uses a “biennial reset point-to-point”
design. Every two years on the segment anniversary we
measure the movement of the SP 500 Index from the
beginning to the end of the two-year interest crediting
period. This value is then multiplied by the participation
rate. The resulting interest crediting rate can never be
less than zero and can never be more than the biennial
cap rate. The cap rate and participation rate can change
at the beginning of every two-year interest crediting
period, within specified limits. The participation rate is
guaranteed to never be less than 100%.
One-Year Multi Index Strategy
This strategy uses a “monthly averaging annual reset” design.
Each month -- on the date that corresponds with the segment
creation -- we note the values of each index used in this strategy
(SP 500, NASDAQ-100 and DJIA). On the anniversary of the
segment creation date, we separately take the average of
those values and compare them to the initial index numbers to
determine the percentage change in each index, respectively,
which can be positive or negative. We then multiply each of
these values by one of the following percentages:
• The best performing index receives a weight of
50 percent.
• The second best performing index receives a weight of
30 percent.
• The third best performing index receives a weight of
20 percent.
Date* SP 500
10/25/2006 1,382.22
10/25/2007 1,514.40
Growth 9.56%
Cap 12.00%
Total Credited 9.56%
1
Date* SP 500
10/25/2005 1,196.54
10/25/2007 1,514.40
Growth 26.56%
Cap 30.00%
Total Credited 26.56%
Annualized Return 12.50%
2
Point-to-Point
Indexed Strategies
The two indexed strategies described below
calculate the indexed interest earnings based
on the value of the index at two distinct points
in time.
Monthly
Indexed Strategies
These three monthly indexed strategies use
calculation methods based on monthly measurements
of the index over a one-year period.
Date*
10/25/2006
11/25/2006
12/25/2006
01/25/2007
02/25/2007
03/25/2007
04/25/2007
05/25/2007
06/25/2007
07/25/2007
08/25/2007
09/25/2007
10/25/2007
Sum
of Capped
Growth
Total
Credited
These values are then added together, and the result can never be more
The cap rate and participation rate can change at the beginning of ever
One-Year Monthly Cap
Strategy
This strategy uses a “monthly reset point-to-
point” design. Each month we measure the
change in the SP 500 Index. We note the
percentage change, which can be positive or
negative and is subject to a monthly cap rate. On
the segment anniversary, those values are added
together. The resulting interest crediting rate
can never be less than zero. The monthly cap
rate can change on every interest crediting date,
within specified limits.
* The hypothetical examples provided use actual figures for the dates indicated, howe
nature, are not guaranteed, and are subject to change. Cap rates and participation
the strategies depicted. A downward movement in an index for a particular intere
For guaranteed minimum cap rates, see page 17.
For this exam
8

11. 5
Here is an example of how this strategy works (based on actual index values for one year ending 10/25/07):*
We measure the performance
of THREE separate indices each
month for a year.
NASDAQ 100 AVG.
7.86%*
At the end of the year we
average values and
determine the gain/loss.
Then we give the better
performances more weight
and add the results.
50% = 3.93Best
7.50 100% =Total Result
(Cap Applied)
7.50%
Final Annual
Credited Rate
1 2 3 4 5 6 7 8 9 10 11 12
NASDAQ 100
Months
Months
+
+
x
SP AVG.
6.47%* 20% = 1.293rd
Best
SP 500
1 2 3 4 5 6 7 8 9 10 11 12
x
DOW AVG.
7.60%* 30% = 2.282nd
Best
DJIA
1 2 3 4 5 6 7 8 9 10 11 12
Months
x
x
Guaranteed
Participation Rate
Monthly Capped
Growth Growth
-0.19% -0.19%
2.56% 2.56%
-2.55% -2.55%
1.36% 1.36%
-1.19% -1.19%
1.36% 1.36%
4.13% 3.50%
-1.04% -1.04%
1.92% 1.92%
0.93% 0.93%
0.70% 0.70%
1.36% 1.36%
8.72%
8.72%
With indexed life product choices rapidly expanding, it’s important to have EFFECTIVE
STRATEGIES. Aviva, the #1 seller of indexed life products for over six years, has forged the
path when it comes to indexed life value for policyowners— and we’re not about to stop!
The following index crediting strategies are available in most states. Take a look and see
why we are THE market innovator.
e than the annual cap rate. We then multiply that number by the participation rate. The resulting interest crediting rate can never be less than zero.
ry interest crediting period, within specified limits. The participation rate is guaranteed to never be less than 100%.
One-Year Monthly
Average Strategy
This strategy uses a “monthly averaging
annual reset” design. Each month — on
the date that corresponds with the segment
creation — we note the SP 500 Index
values. On the segment anniversary, we take
the average of those values and compare
that number to the initial SP 500 value to
determine the percentage change in the
index, which can never be more than the cap
rate.
We then multiply that number by the
participation rate. The resulting interest
crediting rate can never be less than zero. The
cap rate and participation rate can change on
every interest crediting date, within specified
limits. The participation rate is guaranteed
to never be lower than 100 percent. Current
participation rates may vary.
ever they may not represent actual results. Past performance is no guarantee of future performance or of values of indexed life insurance. Cap rates are illustrative in
n rates may vary by product and/or strategy. Different timeframes would produce different results which could be less favorable or more favorable for each of
est crediting period could result in zero interest being credited for that period.
Date* Index Value
11/25/2006 1,400.95
12/25/2006 1,410.76
01/25/2006 1,423.90
02/25/2007 1,451.19
03/25/2007 1,436.11
04/25/2007 1,495.42
05/25/2007 1,515.73
06/25/2007 1,497.74
07/25/2007 1,518.09
08/25/2007 1,479.37
09/25/2007 1,517.21
10/25/2007 1,514.40
Average SP 1,471.73
Growth 6.47%
Participation 115.00%
6.47% x 115.00% =
Total Credited 7.44%
(Compare Avg. to Initial SP Value)
mple, the monthly cap is 3.50%.
We apply the cap rate (current
cap rate is 14%) or the floor
rate of zero, if applicable, to the
total result and multiply by the
participation rate
to arrive at...
10/25/2006 Initial SP Value = 1,382.22
9

12. Access to cash value is an important aspect of universal life insurance, and
indexed life is no exception in that you can choose either a loan or withdrawal
when you need cash and the funds are available in your policy. This section
describes the Aviva Indexed Life loan and withdrawal features.
Withdrawals* (See page 17)
After the first policy year, you can withdraw funds from the available cash surrender value
portion of your policy (surrender charges and/or tax consequences may apply, however,
withdrawals up to cost basis are generaly considered a tax free return of premiums). The cash
value and death benefit will be reduced by the amount of any withdrawal made.
It is important to remember that the cash value of a life insurance policy is designed for long
term accumulation. Any withdrawals will impact future cash value accumulation.
Policy Loans
You may also borrow a portion of the available cash value in your policy at a favorable interest
rate. The available cash value equals the accumulated value in the policy, minus any previous
indebtedness, loan interest, surrender charges where applicable, and the amount needed to
maintain the policy until at least the next policy anniversary.
Interest will be added to your loan balances until the loan is repaid. Although you are not
required to repay a policy loan, any unpaid loan amount is deducted from the death benefit
proceeds, or the cash surrender value upon policy surrender.
Aviva Indexed Life products are unique in that they feature TWO distinct loan interest options:
variable and fixed. The differences between these two options include how loan interest is
determined, and the rate credited to amounts borrowed under these two options:
The Variable Loan Interest Option has a net cost that is based on the
difference between the interest credited to the policy and the Variable Loan
Interest Rate.
The net cost using the Annually Declared (Fixed) Loan Option depends
on whether or not the loan is preferred. Preferred Loans, available on some
policies after the 10th year, have a net cost of 0 percent. Non-Preferred Loans
have a net cost that can range from 2 percent to 3 percent.
Your Aviva agent can help you decide which loan interest option is best for you
at the time you need the loan. All outstanding loans of one loan type (variable
or fixed) must be completely repaid before electing another type of loan.
Understanding Policy Loans
and Withdrawals
Under existing tax law,
the cash value in your
indexed universal life
policy accumulates
income tax deferred.
Generally, loans may
be taken on the policy
without incurring income
taxes as long as the policy
remains inforce and results
in a life insurance death
benefit. The death benefit
is generally payable to the
named beneficiary income
tax free. Consult your tax
advisor for more detailed
information.
Tax Efficiency
1
2
10

13. 1 Variable Loan Annually Declared (Fixed)
Interest Option Loan Interest Option
Interest
Charged
Interest
Credited
Net Cost
Loan
repayments
Examples
The loan interest rate may be reset on each policy anniversary,
provided the rate change is at least one-half of one percent.
The Maximum annual loan interest rate will not exceed the
GREATER of:
A) 3.0%
OR
B) The published monthly average (Moody’s Corporate
Bond Yield Average - Monthly Average Corporates
as published by Moody’s Investor Service, Inc.) for the
calendar month ending two months prior to the date
the rate is determined.
Moody’s Bond Average is usually above 3%, so “B” is
generally the option used.
Account values and loaned values continue to earn interest as
if no loan had been taken from the policy.
The net cost of this loan option (the interest charged on the
loaned funds less the interest credited on the loaned funds)
is based on the interest credited to the policy and Moody’s
Corporate Bond Yield Average.
Applied to the outstanding loan balance upon receipt.
Net Cash Value: $15,000 Withdrawals: $3,000
Policy Year 15 Outstanding Loans: $0
Premiums: $10,000 Loan Taken: $10,000
#1: Assumed Moody’s Corporate Bond Yield Avg: 8.0%
Assumed Policy Interest Rate Credited: 6.0%
Interest Charged on Loan: 8.0%
Interest Credited on Loaned Amount: -6.0%
Net Cost of Loan: 2.0%
#2: Assumed Moody’s Corporate Bond Yield Avg: 7.5%
Assumed Policy Interest Rate Credited: 9.0%
Interest Charged on Loan: 7.5%
Interest Credited on Loaned Amount: -9.0%
Net Cost of Loan: -1.5%
The loan interest rate is based on whether a loan is Preferred
or Non-Preferred.
After the 10th policy year, a Preferred Loan may be available
on the GREATER of:
A) 10% of the Net Cash Value
OR
B) The Net Earnings in the contract (Net Cash
Value-Premiums+Withdrawals)
Preferred Loans have a loan interest rate of 2.0%, which
equates to 1.96% payable in advance.
Non-Preferred Loans currently have a loan interest rate of
4.0% which equates to 3.85% payable in advance. This rate
can be reset annually and will never be greater than 5.0%,
which equates to 4.75% payable in advance.
Loaned values (Preferred and Non-Preferred) will be
credited the guaranteed interest rate of 2.0%.
The net cost of this loan option (the interest charged on the
loaned funds less the interest credited on the loaned funds)
depends on whether funds loaned are Preferred or Non-
Preferred. The net cost of Preferred Loans is effectively 0%.
The current net cost of Non-Preferred Loans is 2.0% and
guaranteed to never be greater than 3.0%.
Applied to the outstanding loan balance upon receipt. The
amount repaid is placed into the Basic Interest Strategy, and
will be directed to new strategy segments, similar to new
premium.
Net Cash Value: $15,000 Withdrawals: $3,000
Policy Year 15 Outstanding Loans: $0
Premiums: $10,000 Loan Taken: $10,000
A) 10% of Net Cash Value: $1,500
B) Net Earnings: (Net Cash Value - Premiums + Withdrawals) $8,000
Preferred Loan: $8,000
Non-Preferred Loan: $2,000
Interest Charged on Preferred Loan: 2.0%
Interest Credited on Preferred Loan: 2.0%
Net Cost of Preferred Loan: 0%
Interest Charged on Non-Preferred Loan: 4.0%
Interest Credited on Non-Preferred Loan: 2.0%
Net Cost of Non-Preferred Loan: 2.0%
Weighted Average Interest Charged on Total Loan: 2.4%
Interest Credited on Loaned Amount: -2.0%
Net Cost of Loan: 0.4%
1 2
11

14. Policy Illustrations
To ensure that customers have a clear understanding of how policy values develop over time,
Aviva requires that a policy illustration be reviewed and signed by every applicant. Interest
rate assumptions are used in creating the policy projections covered in the illustration. The
factors used to determine the rates vary by components within the policy, and are explained
in this section.
Indexed Strategy Guideline
Illustrated Rate
The guideline illustrated rates for the five indexed crediting strategies
were developed by applying the current participation and cap rates, as
well as the underlying strategy mechanics, to historical index data. While
past performance of the index is not necessarily a predictor of future
performance, it can provide valuable insight regarding how the indexed life
policy works and how it could perform over a long period of time.
For each of the indexed strategies (other than the One-Year Multi Index
Strategy), illustrated rates are representative of the monthly SP 500 Index
and dividend yield* data since January 1950. For the One-Year Multi Index
Strategy, the illustrated rate is representative of the monthly index data for
the SP 500 Index, NASDAQ-100 and DJIA since October 1985. Aviva will
update the guideline rates when:
1) The participation or cap rate changes, and/or
2) Emerging index experience warrants a change.
Because the company bases its illustrated rates on such a long-term
perspective, changes to the guideline rate due to emerging experience are
expected to be relatively infrequent. The purpose of a policy illustration is
to provide what we believe is a reasonable view of the long-term potential
values in the policy based on its current, non-guaranteed elements as well
as minimum guarantees.
The rate is for illustration purposes ONLY. The actual credited rate can be
higher or lower, and will be based on the actual index movement, which
cannot be predicted. Unlike the level rate illustrated for each strategy, the
actual interest rates are likely to vary from year to year.
How the Illustrated Rate
is Determined
The illustration provided by your
agent will include policy value
projections on both a guaranteed
and non-guaranteed basis. The
guaranteed policy value projection
reflects the guaranteed minimum
interest rate of 2 percent, as well as
the other guaranteed elements of the
policy including cost of insurance and
policy charges. The non-guaranteed
assumed projections reflect the current
interest rates on the Basic Interest
Strategy and fixed-term strategies, a
guideline illustrated rate on the indexed
strategies, and current cost of insurance
and policy charges.
The illustrated rate used in the non-
guaranteed assumed projections is a
weighted average interest rate that
reflects the interest rate on the Basic
Interest Strategy as well as the interest
rates/illustrated rates associated with
each of the strategies to which you have
chosen to direct your premiums. The
weighted average interest rate takes
into consideration the amount of money
in each of the strategies in each year of
the projection based on the premium
payment assumptions used in the
illustration. Since the indexed crediting
strategies do not have a declared
interest rate associated with them,
the company has provided a guideline
illustrated rate that varies by strategy
for your agent to use. The method for
developing the guideline illustrated rates
follows. * While the index excludes dividends, actual dividend yields do impact the
cost of the investments supporting the product, which helps determine
the cap rate, if applicable.
12

15. Aviva Indexed Universal Life policies
are like any other fixed universal life
policies in that they are backed by the
company’s general account. No separate
account is established for Indexed UL.
Aviva does not directly invest in the
stock market to support the product.
As it does with other general account
products, Aviva chooses investments
that closely mimic its liabilities. With an
Indexed UL product, this means that
Aviva purchases assets to cover both the
minimum guarantees of the contract,
as well as the upside potential brought
about by the index features. Bonds,
mortgages, or other fixed-income
assets may be purchased to support the
minimum guarantees, while options
or other equity-based securities may
be purchased to support the upside
potential. Cap rates are, in general,
based on the costs of these investments.
How the Policy
is Supported
13

16. Frequently Asked Questions about
Indexed Universal Life
1. Indexed UL has so many moving parts used to
determine credited interest. What is the easiest
way to explain it?
An Indexed UL policy works much like any other universal
life policy. It provides a life insurance death benefit for a
reasonable cost. The main difference is in how the credited
interest is determined.
With a traditional UL policy, the insurance company
examines all of its investments to determine the individual
rate of return on each one. Once these rates are
determined, they are combined to provide a single rate
of return for the company’s investment portfolio. From
the single portfolio rate of return, the insurance company
determines the amount of interest that will be credited
to a policy. Because the company’s investment return
is always changing, the company continually monitors
its overall portfolio return and will change the credited
interest rate when necessary.
An Indexed UL policy is actually more transparent and
is explained in each annual statement the policyholder
receives. The credited interest rate is based upon the
movement of an index from one period of time to the
next—up to the cap rate, if applicable.
2. Indexed life insurance represents only a small
portion of all life insurance sold. Why?
There were only a few companies selling indexed
annuities when they were first introduced in the mid
1990s. However, that market has grown rapidly, and now
a significant portion of annuity sales are from indexed
products.
Indexed life requires more administration and support
than indexed annuities. When we entered the indexed life
market in 1998, because we (with these products in mind)
had just installed a new administrative system designed to
handle indexed life.
Since that time, other companies have entered the market
with their own indexed policies — as they could adapt
their administrative systems to support these unique life
insurance policies. Looking forward, it is likely that even
more companies will make Indexed Life policies available
as they are able to handle the administration.
3. What does an Indexed UL policy offer over a more
traditional UL policy?
Over time, and particularly in times of relatively low
interest rates, we believe that an Indexed UL policy has
the potential for greater interest crediting than a more
traditional policy. Consequently, this could mean more cash
value, more supplemental retirement income, or lower
total premiums if the policyowner wishes to discontinue
premiums and use the policy cash value to support the
internal expenses (surrender charges, as specified in the
policy, could apply).
4. What is the biggest difference between Indexed
UL and variable life insurance?
The cash value of an Indexed UL policy is not invested
in the stock market, and there is no direct link like there
is with variable life insurance. Our Indexed UL uses
stock market indices as a measuring stick, of sorts. The
percentage of increase in the index— which may be
subject to a cap rate—is added to the cash value of the
policy. It’s that simple.
Our Indexed UL policies do not participate in the market
losses (we will not apply negative interest to your policy).
The index point from which index movement is measured
is reset prior to each new measuring period—at the level
where the index finished the prior measuring period.
Therefore, if the index goes down, nothing is taken
away—but the new measuring period will begin at the
lowest index level.
With a variable life policy, the cash value is usually invested
in sub-accounts that are linked directly to the market.
The cash value within a variable life policy will go up and
down as the market goes up and down. While there is
the potential for substantial gains, there is significant
possibility for substantial losses which can have a negative
impact on the policy’s account value. For example, if the
market decreases 30 percent, it will need to go back up 43
percent in order to reach its initial level.
Many individuals do not want to risk their cash value to
market fluctuation. Indexed UL gives them the opportunity
to participate in index increases, and provides protection
from decreases with a minimum guaranteed interest rate.
14

17. 5. How is my money invested?
Nearly all of Aviva’s invested assets are in high quality
corporate and government bonds. The same investment
portfolio supports Indexed UL products, as well as the
traditional products. There is no direct investment in the
equity markets with Indexed UL.
6. What if the index goes down and there is no
interest credited to the policy?
Indexed UL policies from Aviva include at least a 2 percent
minimum guaranteed interest rate retrospectivly. Here’s
how it works…
The cash value within our Indexed UL policies is
guaranteed to accumulate at 2 percent. When the policy is
surrendered or when cash value segments mature, they are
evaluated and additional interest will be credited if they
have not compounded at 2 percent per year.
This is a valuable feature of our Indexed UL products that
further shows how the cash value of our policyowners is
protected from downturns in the index.
7. Since it is possible to have several segments
created, is it difficult to keep track of all of them?
Each year the policyowner will receive an anniversary
statement (annual report) that will reflect all of the activity
that took place within the policy during the year that just
ended. It will identify all premium payments, expenses and
interest earnings. The policy segments will be listed, along
with their effective dates and current value. In addition,
any interest earnings credited to a segment during the
policy year will be shown.
8. Is there a no-lapse guarantee available?
Yes, our Advantage Builder Indexed UL and our Indexed
Survivor UL plans have a very competitive No-Lapse
Guarantee Rider.* An extended maturity option is built
into the policy, so that if the insured is still living at the
specified age, the death benefit will be continued without
additional premiums. The NLG Rider provides flexibility
in that it can be removed if no longer needed and the
policyholder can pay all the premiums on a limited-pay
basis, such as to age 65 or for 20 years.
* See NLG rider brochure for additional details. Availability
varies by product.
9. Are there any features that are unique to your
Indexed UL policies that may not be found in other
similar policies?
Yes, there are two. The Life Protector Rider** protects the
policyowner from borrowing too much money from the
policy in retirement, which may cause the policy to lapse—
creating “phantom” income. When a certain percentage
of the cash value has been borrowed, borrowing activity is
suspended, a one-time charge is assessed, and the policy
remains in force at a reduced death benefit though the
loan is not extinguished.
A second feature unique to our Indexed UL policies is
that the policyowner has a choice of two loan** types
when borrowing from the policy. A variable loan can be
particularly advantageous when credited interest on the
policy is greater than the loan interest charges. The second
loan type is a fixed loan.** This fixed loan tends to be less
expensive when index crediting is expected to be down or
flat.
** See rider form for additional details.
15

18. Aviva Life and Annuity Company is part of Aviva USA,
one of the fastest-growing life insurers in the United
States, with more than 1,115,000 customers and 32,850
agents and distributors. We offer a competitive portfolio
of long-term savings, insurance and retirement income
products designed to help customers make the most out
of life. Aviva USA is part of Aviva plc, the world’s fifth-
largest insurance group, with a corporate lineage dating
back to 1696.
We were one of the first life insurers to offer indexed
policies. We’ve led the industry in indexed life sales for
the past several years. Independent analysts consistently
rank our indexed policies at or near the top in terms of
premium and cash values.
Aviva thanks you for taking the time to learn about
Indexed Universal Life Insurance.
We believe strongly in our line
of indexed life insurance products.
16

19. * Page 8
The following guaranteed minimum cap and participation rates apply to the strategies as indicated below:
17
*Page 10
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.
* Page 2 4
As with most universal life policies, cash value is determined by 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, a
coverage charge per $1000 of face value, cost of insurance charges, and premiums for any riders.
1 year point-to-point strategy
Vision Builder/ Liberty Builder
• Participation rate: 100% minimum floor
• Cap: no explicit minimum other than a minimum
cap for the first 5 years should the strategy being on
the issue date
Advantage Builder/Lifetime Builder
Indexed Survivor Universal Life
• Participation rate: 100% minimum floor
• Cap: 4% minimum
2-year point-to-point strategy
Vision Builder/Liberty Builder
• Participation rate: 100% minimum floor
• Cap: no explicit minimum other than a minimum
cap for the first 5 years should the strategy begin on
the issue date
Advantage Builder/Lifetime Builder
Indexed Survivor Universal Life
• Participation rate: 100% minimum floor
• Cap: 8% minimum over the 2-year period
1 year monthly average strategy
Vision Builder/Liberty Builder
Advantage Builder/Lifetime Builder
Indexed Survivor Universal Life
• Participation rate: 100% minimum floor (this is
the component that we typically vary on a non-
guaranteed basis)
• Cap: 4% minimum (currently no cap)
1 year multiple index strategy
Vision Builder/Liberty Builder/Advantage Builder/
Lifetime Builder/
Indexed Survivor Universal Life
• Participation rate: 100% minimum floor
• Cap: 6% minimum
1 year monthly cap strategy
Vision Builder/Liberty Builder/
Advantage Builder/Lifetime Builder
Indexed Survivor Universal Life
• Participation rate: 100% minimum floor
• Cap: 1% minimum monthly cap

20. 14888 3/08
“Standard Poor’s©
”, “SP©
”, “SP 500©
”, “Standard Poor’s 500©
” and “500©
” are trademarks of The McGraw-Hill
Companies, Inc. and have been licensed for use by Aviva. Our Indexed UL products are not sponsored, endorsed, sold or promoted
by Standard Poor’s, and Standard Poor’s makes no representation regarding the advisability of purchasing these products.
“NASDAQ”, “NASDAQ-100”, and “NASDAQ-100 Index” are trademarks of The NASDAQ Stock Market, Inc. This Policy is not
sponsored, endorsed, sold or promoted by The NASDAQ Stock Market, Inc. or its affiliates (NASDAQ, with its affiliates, are referred
to as the “Corporations”). The Corporations have not passed on the legality or suitability of, or the accuracy or adequacy of
descriptions and disclosures relating to, the Policy. The Corporations make no representation or warranty, express or implied to
the owners of the Policy or any member of the public regarding the advisability of investing in securities generally or in the Policy
particularly, or the ability of the NASDAQ-100 Index to track general stock market performance. The Corporations’ only relationship
to Aviva (“Licensee”) is in the licensing of the NASDAQ, NASDAQ-100, and NASDAQ-100 Index trademarks, and certain trade
names of the Corporations and the use of the NASDAQ-100 Index which is determined, composed and calculated by NASDAQ
without regard to Licensee or the Policy. NASDAQ has no obligation to take the needs of the Licensee or the owners of the
Policy into consideration in determining, composing or calculating the NASDAQ-100 Index. The Corporations are not responsible
for and have not participated in the determination of the timing of, prices at, or quantities of the Policy to be issued or in the
determination or calculation of the equation by which the Policy is to be converted into cash. The Corporations have no liability in
connection with the administration, marketing or trading of the Policy.
“Dow Jones,” “Dow Jones Industrial Average” and “DJIA” are service marks of Dow Jones Company, Inc. and have been
licensed for use for certain purposes by Aviva. Aviva’s product(s) based on the Dow Jones Industrial Average, are not sponsored,
endorsed, sold or promoted by Dow Jones, and Dow Jones makes no representation regarding the advisability of investing in such
product(s).
This brochure contains highlights only. You should refer to the Indexed Universal Life policy for a full explanation. All tax related information
contained here in is based on our current understanding of federal tax laws as they relate to life insurance or other subject matter discussed. These
laws are subject to change in the future. Neither Aviva nor its representatives offer legal or tax advice. You should consult a personal tax advisor
on any tax matters.
In order to comply with certain U.S. Treasury regulations, please be advised of the following: Unless expressly stated otherwise, any U.S. Federal
tax advice contained in these materials is not intended or written to be used, and cannot be used, by any person for the purpose of avoiding any
penalties that may be imposed by the Internal Revenue Service.
Policy forms 2EDB08, 2JAF06, 2EBJ05, 21001F02, 21000F02, 2EAD04, 11770J00, 2HAG03 and 2ECI06. Rider forms 2NLGFO6, 2JLPUFO6,
2NLEAD04 and 2PUEADO4. Availability may vary by state.
Products issued by and all policy benefits are the responsibility of Aviva Life and Annuity Company, and not that of any other insurer or company.
Products Issued by
Aviva Life and Annuity Company
611 5th Avenue
Des Moines, IA 50309
www.avivausa.com