Rider Shields Variable Life Assets

A unit of the Ameritas Acacia Companies is offering annuity-style asset protection for holders of variable universal life insurance policies.[@@]

The company, Ameritas Variable Life Insurance Company, Lincoln, Neb., is marketing 2 VUL asset-protection riders with its Overture Ovation! VUL policies.

Policyholders can choose an Asset Protection rider or an Asset Protection Plus rider.

Each rider "insures a portion of the premium against market losses by guaranteeing that, at the end of a 10-year period, the policy will return at least the premiums paid (less certain insurance charges and an adjustment for withdrawals)," Ameritas Variable Life says.

If the policy's account value at the end of the 10th anniversary is less than the guarantee balance, the account value will be increased to the higher amount, the company says.

If the account value is greater than the guarantee balance on the 10th anniversary, the new guarantee balance will be increased to reflect the current account value.

The rider is automatically renewed at the end of the 10-year period, Ameritas Variable Life says.

The Asset Protection Plus rider credits the holder with the cost of the rider if policy account value rises enough after 10 years to make the rider unnecessary.

Policyholders can add either rider at any time up until age 80, and they can drop the riders any time after the fifth year in any 10-year period.

Rider users must use a preset asset-allocation portfolio.

The cost of the basic rider is 0.5% of the guarantee balance, and the cost of the plus rider is 1% of the guarantee balance.

Ameritas Variable Life emphasizes that asset guarantees depend on the strength of the insurers backing the guarantees.