Aviva s Optional Riders Make this your policy We are building insurance around you. SM 17714 8/10
Customize your universal life policy with Aviva s menu of optional riders If you think of your life insurance policy as a house, riders would be those special touches that truly make it your home: custom cabinets, home theater system, hardwood floors or walk-in closets. They are not mandatory additions, but they can certainly make a functional house into your own dream home. On their own, Aviva s universal life policies can be built for your specific needs. But if you desire extra protection or other valuable features, these products also come with several optional riders that help you further customize your policy. 1
Wellness for Life Rider 3-4 Complimentary riders: Accelerated Death Benefit Rider 6 Waiver of Surrender Charges Due to Confinement 7 Life Protector Rider 8 Additional coverage riders Guaranteed Purchase Option 10 Primary Insured Rider 11 Additional Insured Rider 12 Accidental Death Benefit Rider 13 Children s Insurance Rider 14 Riders to provide extra benefits in case of disability Waiver of Monthly Deductions 16 Waiver of Specified Premium 17 Riders for business cases: Early Cash Value Rider (This rider is available only on Lifetime Builder) 20 Death Benefit Return of Premium Rider 21 2
Our exclusive Wellness for Life Rider Featuring Wellness Benefits from Mayo Clinic Health Solutions Aviva is the only life insurance provider offering this valuable benefit! You know how some auto insurance companies give discounts for practicing safe driving habits? Wellness for Life works on the same premise: People who practice healthy habits should get discounts on their life insurance! If you meet the guidelines of the rider, we will credit you with Wellness Rewards. These rewards will reduce insurance costs on your policy and those savings could add up over time. Don t worry if you re not an athlete or rock climber. Your age and underwriting status will not disqualify you from purchasing this rider. The point of the Wellness for Life Rider is to reward people for maintaining their health. If you improve your health, that s great, too. But to qualify for the minimum Wellness Rewards, all you have to do is get a physical every two years. And you can earn a greater reward by keeping your weight within in a given range established at the time you applied for your policy. 3 (Form 2WFLAJ07-2)
How it works Depending on how you structure your policy, the Wellness for Life Rider can be used to either reduce your premiums or be credited to your policy s cash value. And, all Wellness for Life participants receive Wellness Benefits from Mayo Clinic Health Solutions, including access to its 24-hour nurse line, an online health assessment, and other resources. To learn more about this rider ask your insurance professional for our Wellness for Life brochure. The rider is available to all insureds at policy issue for a fee of $100, which we deduct monthly over the first 12 months of the policy. 4
Complimentary riders: Our gift to YOU! Aviva offers several riders on its universal life products that come with no initial charge: Fees apply only if the riders are used. Accelerated Death Benefit Rider Waiver of Surrender Charges Due to Confinement Life Protector Rider 5
Accelerated Death Benefit Rider This is such an important feature for all of our customers, that we automatically provide it at no charge. You may not want to think about it now, but a terminal illness can cause a lot of hardship, emotionally and financially. We try to help with the latter by providing some of your promised death benefit up front to assist with health costs and other expenses. What it does This rider allows you to access up to 50 percent of your policy s death benefit up to a maximum of $250,000 for expenses related to terminal illness when the life expectancy of the insured is 12 months or less. The Accelerated Benefits Rider is included at no extra charge on all new policies. If you receive a diagnosis with a 12-month life expectancy, you can receive an accelerated benefit by notifying Aviva s Claims Department. A $25 fee will be assessed when the rider is exercised. (Form 2ABRF06) 6
Waiver of Surrender Charges Due to Confinement Being hospitalized or placed in a nursing facility is another one of those life situations that we all hope to avoid, but we all should at least prepare for. Paying for care and losing income in the process can be financially draining, which is why we offer this benefit to all our policyholders with no upfront charge. What it does The rider allows for an annual withdrawal up to 25% of the net account value without incurring surrender charges, if the base policy insured is confined to a hospital or inpatient nursing facility for at least 30 consecutive days. The rider can be added at no charge at issue or after policy issue up to age 99. A $25 processing fee is assessed at the time of each withdrawal. (Form 21041F02) 7
1 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 this rider should consult a tax advisor as to the possible tax ramifications. Life Protector Rider 1 We want you to use the cash value of your life insurance policy, but we don t want you to borrow or withdraw more than your policy can handle. Doing so may cause you to lose your coverage and suffer negative tax consequences. Think of the Life Protector Rider like an automatic shut-off valve. If you borrow up to a certain percentage of the policy s cash value, the rider will be activated and future loan activity will cease. This will prevent you from borrowing too much from the policy and causing it to lapse. If you re planning to use your policy s cash value for supplemental income, this rider may offer an extra layer of protection. See rider form for complete details. What it does The Life Protector Rider keeps the policy from lapsing when certain policy provisions are met. Those provisions include having a certain percentage of the cash value being borrowed, having the policy in force for at least 15 years and the insured reaching age 75. It s also designed to protect you from incurring unwanted income taxes in the event the policy should lapse from over-borrowing. This rider is available to all policyholders and can be added at issue or after the policy is in force. There is no initial cost for the rider, however a one-time charge is assessed if it is used. (Form 2PUEBI06) 8
Additional Coverage Riders The riders listed here allow you to obtain additional life insurance -- on yourself or another individual. And just like our universal life policies, these riders give you flexibility in how to structure the additional coverage. Guaranteed Purchase Option Primary Insured Rider Additional Insured Rider Children s Insurance Rider Accidental Death Benefit Rider 9
Guaranteed Purchase Option This rider is for those who are just starting out in life: We understand that at this stage your budget for life insurance may be limited. But as time goes on, your income will grow, as will your responsibility to protect what you have. So with the Guaranteed Purchase Option Rider, we give you the option to purchase additional amounts of coverage throughout the early stages of life without having to go through the whole application process again. And no additional needles or cups, either. What it does It provides you the option to purchase additional amounts of permanent life insurance at specified future dates. What s more, the coverage is available regardless of whether your health status has changed. These dates begin on the insured s 22nd birthday, and occur every three years thereafter, until the insured s age 40, or upon the occurrence of special life events such as marriage, birth of the insured s child, or legal adoption. The rider is available at policy issue, with charges deducted until age 40. (Form 21011F02) 10
Primary Insured Rider So you desire permanent life insurance coverage, but you don t quite have the budget for your needs. Or maybe you want a little extra coverage just in case. That s where the Primary Insured Rider comes in handy. Regardless of your age, this rider provides a way to make your coverage more affordable by blending your permanent coverage with basic term insurance. With this rider, you can purchase a smaller death benefit on the permanent insurance policy and supplement it with the term coverage provided by the rider. As your budget grows over time, you can convert the rider into permanent coverage, or simply maintain the rider. This rider is also useful in situations where your health might impact the cost of your insurance. What it does In addition to the permanent life insurance coverage you are buying, this rider will provide level term insurance coverage on the insured to age 121. The rider can later be converted to permanent coverage as long as you have not reached a certain age. 11 The rider is available at policy issue, with premiums deducted until age 121. If you are between ages 18 to 75, you can buy term coverage up to a maximum of 5 times your permanent coverage (minimum term coverage must be $50,000). So if your permanent policy has a face amount of $100,000, you can get up to $500,000 of term coverage added to the policy. If you are age 76 to 85, you can buy term coverage equal to 3 times the face amount of your permanent policy. (Form 21011F02)
Additional Insured Rider The most common use for this rider is to insure a spouse of the base policy insured; however it is useful in many situations when coverage is desired on an additional person without having to purchase a separate policy. The coverage provided by the rider can be converted to a permanent policy as long as the rider insured has not reached a certain age. What it does In addition to the permanent life insurance coverage you are buying, it provides level term insurance coverage on another person, such as a family member or business partner. The rider is available at policy issue, with premiums deducted until age 95. The second insured individual is required to complete the underwriting process. The rider is subject to a minimum coverage amount based on the primary insured s underwriting status. You can purchase up to the amount of coverage of your base policy amount. (Form 21052F02) 12
Accidental Death Benefit Rider Accidental deaths are often the most unforeseen and therefore, the most disruptive to a family. Providing a larger death benefit in these cases can help your loved ones better cope with the sudden loss. By attaching this rider to your policy, you can provide your beneficiaries an additional death benefit if your death is caused by an accident. The rider can provide anywhere from $1,000 of extra coverage all the way up to your policy s face amount ($500,000 maximum). How it works It provides additional insurance payable if death results from accidental bodily injury, as defined in your contract. The rider is available at policy issue, with charges deducted until the insured reaches age 70. (Form 21024F02) 13
Children s Insurance Rider If you are buying coverage for yourself and still have young children living at home, you may want to consider the Children s Insurance Rider. It provides affordable death benefit coverage for your child, with face amounts available between $2,000 and $20,000. In addition, your child can convert the rider into their own policy, up to five times the rider face amount. What it does The rider provides level term coverage on the life of any child (between the ages of 15 days and 17 years) of the base policy insured (issue ages between 16 and 55). The Children s Insurance Rider is convertible for up to five times the rider face amount at the child s age 25 or expiration of the rider, whichever occurs first. For example, if the rider face amount is $5,000, the child can convert the rider and obtain up to $25,000 of coverage. The rider is available at policy issue, with charges deducted until the child reaches age 25. (Form 2CIBUA09) 14
Riders to provide extra benefits in case of disability About 3 in 10 people entering the workforce today will become disabled before retiring. 1 If you re in the early to middle stages of life, the following riders may help you maintain your life insurance coverage at a time when disability may adversely impact your income. You can choose either of these two riders, but not both. Talk to your insurance professional about which option works best for you. Please note: These riders are not replacements for long-term care insurance or disability insurance; they are designed to protect your life insurance coverage in the event of disability. Waiver of Monthly Deductions Waiver of Specified Premium 15 1 Social Security Administration, Fact Sheet Jan. 31, 2007
Waiver of Monthly Deductions How it works This rider is most commonly used if you bought your life insurance policy mostly for the death benefit. This rider is commonly used in universal life insurance policies to help keep your policy in force in the event of disability. With this rider, all monthly policy deductions (coverage charge per $1,000 of face amount, administrative fee, cost of insurance charge and any rider charges) will be waived if the insured becomes totally disabled for at least 6 months, and before the policy anniversary nearest their 65th birthday. The rider is available at policy issue, with charges deducted until age 65. (Form 21042F02) 16
Waiver of Specified Premium How it works This rider is useful if you plan to build and use your policy s cash value. When you purchase this rider, you will establish a specified monthly premium amount for the purpose of the rider. If you are disabled for six continuous months, we ll credit your policy the specified amount of premium. Essentially, what we want is for your policy to continue building cash value during a period of disability. The rider is available at policy issue, with charges deducted until age 65. (Form 21043F02) 17
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Riders for business cases Not only do Aviva s universal life policies work for individual needs, they are also designed for unique business cases. These optional riders are intended for the business market. Early Cash Value Rider (This rider is available only on Lifetime Builder) Death Benefit Return of Premium Rider 19
Early Cash Value Rider (This rider is available only on Lifetime Builder) The Early Cash Value Rider is designed primarily for the business market. It can be used in a nonqualified supplemental retirement plan when a company wants to reward a key employee. Additionally, the Early Cash Value Rider may also be used when selling life insurance in qualified plans, premium financing and other instances where having high early year cash values are important. How it works The Early Cash Value Rider is an optional rider providing for higher cash values in the early years of a policy in the event of a full surrender for cash. It effectively waives the surrender charges and premium load associated with a life insurance policy, or returns all or part of your cumulative paid premiums, whichever provides the greater benefit to you. In exchange for the early high cash value, the cash value in the later years of the policy will be lower than it would be without the rider. Optional rider only available at issue for an additional charge. (Form 2WSCJ07) 20
Death Benefit Return of Premium Rider Designed for certain types of split-dollar and premium finance cases, this rider provides an additional death benefit to recapture the full cost of the premiums paid in prior years. This will allow for the repayment of the premiums paid by a third party with the balance of the death benefit passing to a named beneficiary. How it works It provides a death benefit equal to face amount plus accumulated premiums. Optional rider only available at issue. (Form 2ROPBB08) 21
Products issued by Aviva Life and Annuity Company 7700 Mills Civic Parkway West Des Moines, IA 50266-3862 www.avivausa.com Riders are subject to state availability, certain limitations, and may require additional fees or premiums. See terms of the rider for full details. This brochure contains highlights only. You should refer to your policy for a full explanation. All tax related information contained herein 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, including attachments, 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. 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. Guarantees provided are subject to the financial strength of the issuing insurance company; not guaranteed by any bank or the FDIC. Policy forms 2ECG10, 2UEG10 and 2EDB08. 17714 8/10