Aviva Life Insurance Company Overview

Aviva Life Insurance companys heritage traces back to 1696, the year which the fire insurance company was formed in a London coffee house. Another more recognizable iteration, General Accident, went on to insure famous individuals such as Winston Churchill and John F. Kennedy. The company grew in strength and reputation for honoring huge liabilities during the San Francisco earthquake in 1908. Aviva, the name assumed in 2006, is presently headquartered in Iowa.

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Financial Ratings

Standard and Poors gives Aviva (USA) an AA- which places them at the bottom of the very strong category. AM Best gives Aviva Insurance Company an A for financial strength, which is also a strong rating. Aviva is the fifth largest worldwide insurer, currently insuring nearly a million individuals within the United States.

Term Life Insurance Choices

Aviva Life Insurance Company currently offers term policies with periods of ten, twenty, and thirty years. Additionally, they offer an annual renewable term policy which may an attractive option for younger families or families with tighter budgets but still needing protection. Term policies are available up to age seventy five. Premiums are fixed and policies can be converted to permanent insurance during the term period.

Aviva offers a number of useful riders for term policies. For example, additional insured rider offers coverage for up to three additional family members. Accidental Death and Waiver of Premium protect the owner against accidents and their families upon accidental death. Childrens Insurance covers youngsters up to age twenty five. The accelerated death benefit rider will advance death benefit proceeds in the event of a terminal diagnosis.

Universal Life Insurance

Aviva offers three choices of universal life policies, each designed to meet a specific purpose. These permanent insurance options offer flexibility and value to policy owners. The first UL option, the Patriot Option, is specifically designed for cash accumulation purposes. The flexible premium policy offers a guaranteed interest rate of 4% and allows for free withdrawals beginning in year two of up to 20%. This policy has a surrender period of nineteen years, so clarify any short and medium term plans before getting involved.

The second option is the Guarantee UL Solution, a flexible premium policy designed to offer maximum value and a low cost death benefit. The policy offers a 3% guaranteed interest rate and allows for loans but NOT penalty free withdrawals. A no lapse guarantee is built in, and other riders are also available, including wellness options for the policy owner while living. Surrender period for this policy is fifteen years.

The third UL option from Aviva is the MultiChoice Single Premium Life policy. This policy is considered by Aviva to be an alternative to annuities, especially for cases where the money is intended to be passed on. Loans are not available with this policy; though there is a 2% guaranteed interest rate and partial withdrawals are allowed beginning year two. The surrender period is twelve years.

Indexed Universal Life Policies

Aviva does offer four different index UL policies, which provide flexible protection and potentially higher growth with cash values. Interest is partly based on market indices and do offer some downside protection as well. Again, these policies are each designed to meet specific family goals. All these policies (with the exception of the MultiChoice Single Premium, which has a twelve year surrender period) have surrender periods of fifteen years.

The Lifetime Builder is designed to be a cash accumulation vehicle. This policy offers free withdrawals after year one and also offers both fixed and variable rate loans against the cash value. Premiums are adjustable throughout the lifetime of the policy owner. Also, a full complement of riders is available with the policy which is outlined below.

Advantage Builder, a second indexed UL, is designed to be a low cost protection policy for those seeking value and a strong death benefit. The policy offers lifetime adjustable premiums as well as loans from the policys cash value. Again, a full complement of riders is available with this policy.

Indexed Survivor Universal Life is the Aviva policy designed for estate planning and wealth transfer. This type of policy may even be available for underwriting if one life is uninsurable. The full complement of riders is also available here, and the minimum face value is $250,000.

The MultiChoice Single Premium Life policy is also available in an indexed version. There is still a 2% minimum interest guarantee. Both loans and partial withdrawals are offered to policy owners. There are riders for nursing home coverage and an accelerated living benefit for terminal illness. Aviva suggests this policy as an alternative to an annuity, where assets are intended to be passed on.

Life Insurance Riders

No Lapse Guarantee protection is available on many of Avivas policies. This rider will guarantee a payment of a death benefit even if premiums lapse or the owner fails to pay for some reason. Primary insured, additional insured, and childrens insurance riders can add coverage to family members with one policy. Other riders can protect the family from having to pay premiums during periods of disability or hardship.

One noteworthy and unique rider is the Wellness for Life Rider. This provides the reward of discounted premiums and exclusive access to May Clinic health services for those that qualify by living a healthy lifestyle. Many consumers will like the Return of Premium rider, which can allow for return of premiums with interest if the death benefit has not been paid out. Also, a Life Protection Rider allows for the waiver of premiums if account performance is better than expected. Other riders include an Estate Protection rider, Joint term rider, policy split options, waiver of surrender charges due to confinement, and a guaranteed purchase option rider. These optional riders help the policy owner really customize their policy.

Summary

Aviva Life Insurance offers a sound array of policy types and riders. They have notably omitted the offering of traditional whole life policies, as demand has waned for such policies in the wake of universal life insurance and its flexibility. The universal life policies are the conservative choice for permanent insurance. The index ULs are the growth oriented alternative for those seeking more potential return.

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