An innovative new indexed life insurance product offers financial protection for small businesses, blended families and people whose estate tax planning needs may change. Aviva USA’s Survivorship Builder combines protection for more than one person on a single policy. “It’s the survivor life insurance equivalent of the multifunctional Swiss Army knife – it has many tools and options for consumers in various life situations,” said Chuck Van Devander, Aviva USA’s senior vice president of distribution services. “Life insurance for two persons in one policy – with the availability of a death benefit paid out at both the first and second death – is what sets Survivorship Builder apart.” Van Devander said Survivorship Builder is another example of how Aviva is fulfilling its brand promise of putting people before policies and building insurance around the needs of consumers. Survivorship insurance traditionally has been used for estate planning purposes, and the death benefit is paid upon the death of the last surviving insured. However, Aviva’s new Survivorship Builder includes an optional first-to-die rider that pays a portion of the death benefit to the surviving insured after the first insured passes away. This is critical for both individuals and businesses, because survivors often need help at this time to pay off debts and cope with the complexities of transferring the assets of the deceased. The company anticipates the product and first-to-die rider will be popular with many consumers, including:
- small company owners or business partnerships who need succession after the death of an owner;
- blended families where the needs of both spouses, former spouses and children come into play, and;
- people who are looking for versatile insurance products in light of the uncertainty around current estate tax law.
Van Devander said Survivorship Builder’s appeal is designed to be broad, and insuring two lives on one policy is often more affordable than purchasing two individual policies. The indexed universal life product offers unique options, tax advantages and cash accumulation features to meet the needs of customers in variety of circumstances.Indexed universal life insurance credits interest to the policy’s account value. Those credits are linked to the upward movement of a major stock index such as the S&P 500, subject to a limit such as a “cap” or “participation rate.” Historically, cap rates have ranged between 10 and 14 percent. There is also a minimum guaranteed interest crediting rate should the index perform poorly during a particular period. “This is a product with great flexibility that epitomizes Aviva’s brand promise of we are building insurance around you,” Van Devander said. “Survivorship Builder offers customers multiple solutions during various stages of their lives. Survivorship life insurance can help survivors handle a sudden tax burden, replace income, gift assets to grandchildren and keep the family business in the family.” About Aviva USA Aviva USA is a sales leader of indexed life insurance and indexed annuities. Headquartered in West Des Moines, Iowa, Aviva USA also has offices in Topeka, Kan., and Melville, N.Y. Aviva USA has approximately 1 million customers and employs more than 1,500 people across the country. Aviva USA is part of Aviva plc and can trace its presence in the United States back to 1896.