EthosLife.com
Ethos Index Universal Life Insurance (IUL)
from Ameritas Life Insurance Corp.
When you think of life insurance, it’s natural to think of your loved ones. With Ethos IUL, you’ll also find out how much life insurance can offer you : A cash value and living benefits for times of challenge or opportunity. Valuable tax advantages. Market-based growth without market-based loss. Even an optional retirement income stream that lasts the rest of your life. Discover Ethos IUL, a new, hassle-free way to get the life insurance protection your loved ones need with financial benefits that work for you.
Ethos Index Universal Life Insurance (IUL)
Life insurance that protects you 3 ways 1. Death benefit protection Lifelong protection for your family
Ethos IUL is designed to provide life insurance coverage you’ll never outlive. As long as certain premium and cash value requirements are met, your loved ones are guaranteed to receive a tax-free death benefit 1 . Financial support if major illness strikes If you’re diagnosed with a qualifying critical, chronic, or terminal illness, you can access a portion of your death benefit early for medical expenses, your bucket list, or any other purpose.
2. Cash value growth potential Tax-advantaged accumulation
Increase cash value through fixed account growth or through index options that credit you based on the performance of popular market indexes, up to a maximum. Growth is generally tax-free 2 . Zero downside risk If an index is down, the index option to which it's tracked will never go below 0%—meaning you’ll avoid all market-based losses.
3. A lifetime financial cushion Liquidity during your working years
Access your policy’s available cash value any time via tax-free policy loans and withdrawals 3 . Loans and withdrawals affect long-term policy performance. Retirement income options Activate the Lifetime Income option for a monthly income that lasts as long as you live. Or tap your policy’s cash value for supplemental retirement income as needed.
1. In general, life insurance death benefits are free from federal income taxes pursuant to the IRS (IRC § 101(a)(1)). In certain situations, however, life insurance death benefits may be partially or wholly taxable. Potential examples include the sale of a life insurance policy, or employer-owned policies. Consult your tax advisor for full details. 2 Cash value growth becomes taxable only if you withdraw more than the total of premiums paid, or if the policy lapses. 3 Tax-free incomes assumes that 1) withdrawals do not exceed tax basis (generally, premiums paid less prior withdrawals) and 2) that the policy is not a modified endowment contract. See IRC §§ 7702(f)(7)(B), 7702A. Loans and withdrawals that exceed the total premiums paid will also become taxable if a life insurance policy lapses.
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Ethos Index Universal Life Insurance (IUL)
Live more, worry less
Discover life insurance that checks more boxes. Compare Ethos IUL to common alternatives.
Ethos IUL
Most IUL competitors
Whole life
Term life
Limited-time death benefit
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Lifetime death benefit
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Cash value growth
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Tax advantages
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Market-based growth with no downside risk
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Flexible premiums
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Lifetime income option
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Early access to death benefit for 18 qualifying critical, chronic & terminal illnesses
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Instant decision (most cases)
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The speed and simplicity of Ethos IUL Unlike traditional IUL offerings, the Ethos IUL application process involves no medical exams, blood tests, or weeks and months of underwriting. Simply answer a few health and financial questions with your agent, and our breakthrough technology can provide an instant coverage decision in most cases.
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Ethos Index Universal Life Insurance (IUL)
Market-based growth without market risk Your policy’s available cash value as well as a portion of your new premium can be allocated to Ethos IUL’s index options . These options are tied to the performance of popular market indexes, without any actual market exposure 1 . How index options work You may allocate available cash value to any index option you like, for one- or two-year index periods. The percentage change between the beginning and end of an index period is credited to the index option. For some index options, this credit is subject to a maximum, or cap rate . For other index options, the credit is multiplied by a participation, or par rate . Cap and par rates can fluctuate, but are guaranteed until the index period matures.
Ethos IUL index options
Available index periods
S&P 500® Index
1 Year, 2 Year
S&P 500® Sector Rotator Daily RC2 5% Index 2 BNP Paribas Momentum Multi Asset 5 Index 3
1 Year
1 Year, 2 Year You can also allocate all or part of your cash value to a fixed account. Built-in protection against market corrections Ethos IUL index options feature a 0% minimum crediting rate, or floor , that protects you from market-based loss. Because index options can only step up, they reduce the impact of market volatility over time.
1 The index options are not securities; you are not investing in stocks or an index itself. Therefore, credited interest rates do not include dividends paid by companies in the indexes. 2 The S&P 500 Sector Rotator Daily RC2 5% Index has limited historical information having launched on 10/19/2018. For more information about the S&P 500 Sector Rotator Daily RC2 5% Index, visit https://www.spglobal.com/spdji/en/indices/strategy/sp-500-sector-rotator-daily-rc2-5- index/#overview . 3 The BNP Paribas Momentum Multi-Asset 5 Index (the "Index") has limited historical information having launched on 1/27/2017. For more information about the Index, visit https://momentum5index.bnpparibas.com .
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Ethos Index Universal Life Insurance (IUL)
Lifetime liquidity A financial cushion in your working years
Access your policy’s available cash value anytime through loans and withdrawals, which are generally tax-free 1 . This can provide financial protection for life’s unexpected emergencies and opportunities—with some important considerations.
Pros
Things to keep in mind
✔ Tax-free money 1 . As long as the policy is in force, loans are tax-free and withdrawals are tax-free up to what’s known as your basis —the total of premiums paid, minus any outstanding loans and prior withdrawals. ✔ Fast, flexible and creditor-free. Loans and withdrawals can be used for any purpose, and the money can be accessed quickly with no lenders or credit checks involved. ✔ Attractive loan terms. Fixed account loans feature low interest rates, while variable loans allow you to remain allocated to index options.
✔ Loans and withdrawals will reduce your death benefit and impact cash value growth. Make sure you’re maintaining adequate life insurance protection for your family and keeping your long-term objectives on track. ✔ Excessive and unpaid loans can create a taxable event. Ethos IUL’s Overloan Protection Benefit and 20-year No-Lapse Guarantee will prevent policy lapse if certain requirements are met. If these requirements are not met, your policy can lapse, creating a taxable event and loss of coverage.
Goals for your golden years Once you retire, Ethos IUL allows you to create an income stream you can never outlive.
Option 1: Activate the Lifetime Income rider. Convert your cash value into level or increasing monthly payments that last the rest of your life. • This option is available between ages 50 and 85 as long as certain conditions are met. There is a one-time charge based on account value to activate this benefit.
Option 2: Stay flexible. Create supplemental retirement income as needed via policy loans and withdrawals. • Access the policy’s cash value instead of market- facing assets during a downturn. This can give funds with market exposure time to regain value, and help retirement savings last longer.
Both the Lifetime Income rider and standard policy loans and withdrawals decrease the policy’s cash value and death benefit over time.
1 Tax-free incomes assumes that 1) withdrawals do not exceed tax basis (generally, premiums paid less prior withdrawals) and 2) that the policy is not a modified endowment contract. See IRC §§ 7702(f)(7)(B), 7702A. Loans and withdrawals that exceed the total premiums paid will also become taxable if a life insurance policy lapses.
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Ethos Index Universal Life Insurance (IUL)
Compare financial alternatives
While more than one option may be right for you, take a look at how Ethos IUL compares to some common financial alternatives:
Tax-advantaged retirement accounts 4 Taxable investments Qualified plans Roth IRAs IRAs Variable annuities CDs (FDIC insured)
Ethos IUL
Mutual funds 6
Bonds
5
No annual contribution limits 8
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Tax-advantaged growth
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Tax-deductible contributions 7
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Tax-advantaged 3 distributions
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Fast, easy loans & withdrawals, generally tax- free 3 Access to tax-free funds 2 for qualifying health conditions
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Tax-free death benefit 1
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Income tax treatment includes the treatment of capital gains and dividends. This chart excludes estate tax treatment.
Once, twice, three times tax-advantaged Ethos IUL offers several important tax benefits: • A death benefit for your loved ones that’s generally tax-free 1 . • Tax-advantaged 3 cash value growth that’s tied to popular indexes. Performance potential can be competitive with taxable financial alternatives. • Access to your cash value via policy loans and withdrawals, which are generally tax-free 1 .
1 In general, life insurance death benefits are free from federal income taxes pursuant to the IRS (IRC § 101(a)(1)). In certain situations, however, life insurance death benefits may be partially or wholly taxable. Potential examples include the sale of a life insurance policy, overfunding a policy, or employer- owned policies. Consult your tax advisor for full details. 2 Using the Care4Life Accelerated Death Benefit, policyholders may access a percentage of their tax-free death benefit early for qualifying critical, chronic and terminal health conditions. See page 6 for details. Care4life rider is not a long term care product. 3 Cash value growth is not subject to capital gains and access is tax-free assuming the following: 1) that withdrawals do not exceed tax basis (generally, premiums paid less prior withdrawals) and 2) that the policy is not a modified endowment contract. See IRC §§ 7702(f)(7)(B), 7702A. Cash value is typically accessed tax-free up to the tax basis via withdrawals, then accessed via loans, which are taxed as ordinary income but are not subject to capital gains. If the life insurance policy lapses, loans and withdrawals that exceed the total premiums paid will become taxable. 4 If you are covered by a qualified retirement plan at work, traditional IRA contributions are fully deductible only if your adjusted gross income falls within the following 2023 limits: single up to $73,000; married filing jointly up to $116,000. July 2023. Source IRS.gov. A distribution from a Roth IRA is generally income tax free if (a) it meets all the requirements for a qualified distribution (which include a 5 year waiting period and one of several additional requirements, one being that the distribution is made to a beneficiary on or after the death of the individual) or (b) it is a nonqualified distribution to the extent of after-tax contributions (basis). See IRC Sec. 408A. 5 Generally interest paid on municipal bonds is tax-free, but not all municipal bonds are exempt from federal and/or state income tax. Some bonds may be subject to capital gains tax at sale. Consult a tax advisor for more information. 6 Mutual funds may be subject to income tax and /or capital gains tax. Consult your tax advisor fore more information. 7 For life insurance, contributions refers to life insurance premiums. 8 Source: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-limits 9 There is not a specific limit on the dollars allocated to purchase life insurance; however, there are maximum premium limits determined by the policy's specified amount. A policy will qualify as life insurance if it meets the requirements of IRC Sec. 7702, which includes limits on the amount of premium that may be paid into a specific policy and still qualify as life insurance.
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Ethos Index Universal Life Insurance (IUL)
Built-in benefits and additional policy options 1. Ethos IUL comes with no-cost additional benefits, or riders, that extend the power of your policy. Access living benefits for qualifying conditions According to the Centers for Disease Control, about 1 in 4 Americans face some type of disability 1 . To help ease the financial strain, the Care4Life Accelerated Death Benefit 2 rider lets you access a percentage of your death benefit early for qualifying conditions: • Critical illness: 25% of death benefit • Chronic illness: 50% of death benefit • Terminal illness: 75% of death benefit Protect yourself from policy lapse & unintended taxes If you borrow or withdraw from your cash value, the Overloan Protection Benefit helps to ensure that your policy doesn’t lapse, which would create a taxable event and loss of life insurance protection. Secure a lifetime income stream For a one-time activation fee, the Lifetime Income rider lets you use the cash value of your policy to create a guaranteed monthly income stream that lasts for the rest of your life. Get free estate planning tools A $449 value, the Ethos PERKS rider lets you create wills, trusts, power of attorney, health care directives and more. It also provides comprehensive estate and bereavement support for your loved ones. Not available in WA or SD. 2. Ethos IUL also offers optional riders at an additional cost: Waive premiums if you become disabled The Waiver of Specified Premium rider helps protect your policy from lapsing by waiving your premium payments during a qualified disability. Increase your death benefit in case of accident The Accidental Death Benefit rider increases your death benefit if death is due to an accident. 1 Centers for Disease Control, Disability and Health Data System, 2021, updated 5/23 2 Based on your health when you apply, we may offer the Terminal Illness rider instead, which allows early access to 75% of the death benefit for qualifying terminal health conditions.
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Ethos Index Universal Life Insurance (IUL)
Ethos and Ameritas: Speed and strength
Ameritas is a mutual-based company owned by its policyholders, not shareholders. This enables a focus on long-term financial strength. Since its founding in 1887, Ameritas has delivered on its financial promises, and currently enjoys top ratings for financial strength from the industry’s most trusted ratings agencies. A+ (Strong) | Standard & Poor’s Global (2/23) 1 A (Excellent) | AM Best (5/22) 2
Ethos is a technology company dedicated to bringing protection to millions of families with fast, online life insurance coverage. We’ve partnered with Ameritas Life Insurance Corp. to provide the benefits of index universal life through our simple application process. How it works 1. Apply with your agent – just answer a few health questions. 2. Review your coverage offer and policy illustration. 3. Activate your policy instantly with your first payment.
1 This is the fifth highest of Standard & Poor’s 21 ratings assigned. Standard & Poor’s rating includes Ameritas Life Insurance Corp. and Ameritas Life Insurance Corp. of New York. 2 This is the third highest of AM Best’s 13 ratings. For the latest Best's credit rating, access www.ambest.com . The ratings assigned to Ameritas Life Insurance Corp. and Ameritas Life Insurance Corp. of New York provide an independent opinion of each insurer’s financial strength and ability to meet ongoing insurance policy and contract obligations. Standard & Poor’s and AM Best are recognized among the top authorities in analyzing insurance companies. Ratings are current as of the respective dates shown, and subject to change. For more information, visit our ratings page at https://www.ameritas.com/about/ .
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Ethos Index Universal Life Insurance (IUL)
© 2023 Ethos Technologies Inc. Ethos operates in some states as Ethos Life Insurance Services. CA license #0L28949; AR license #100164629. Ethos offers policies issued by the carriers listed at www.ethoslife.com/carriers . Products and their features may not be available in all states. To help avoid requiring a medical exam, our application asks certain health and lifestyle questions.
In approved states, Ethos Index Universal life insurance (form 3030 3-23 with 3030 SCH 3-23) is issued by Ameritas Life Insurance Corp. In Oregon, policy form ICC23 3030 3-23 with ICC23 3030 SCH 3-23. The product is not available in New York.
This information is provided by Ameritas®, which is a marketing name for subsidiaries of Ameritas Mutual Holding Company, including, but not limited to, Ameritas Life Insurance Corp. in Lincoln, Nebraska and Ameritas Life Insurance Corp. of New York (licensed in New York) in New York, New York. Each company is solely responsible for its own financial condition and contractual obligations. For more information about Ameritas®, visit ameritas.com .
Ameritas and Ethos Technologies Inc., are separate, independent entities. Ethos offers policies issued by Ameritas Life Insurance Corp. (not licensed in New York). Products and their features may not be available in all states.
Guarantees are based on the claims-paying ability of the issuing insurance company. Neither Ameritas Life Insurance Corp. nor its representatives provide tax or legal advice. You may want to consult your attorney or other tax professional for more information.
The index options are not securities. Keep in mind, your clients are not participating in the market or investing in any stock or bond. Therefore, credited interest rates do not include dividends paid by companies in the indexes.
The S&P 500 Sector Rotator Daily RC2 5% Index has limited historical information having launched on 10/19/2018. For more information about the S&P 500 Sector Rotator Daily RC2 5% Index, visit https://www.spglobal.com/spdji/en/indices/strategy/sp-500-sector-rotator-daily-rc2-5- index/#overview . The S&P 500 and S&P 500 Sector Rotator Daily RC2 5% are products of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”) and have been licensed for use by Ameritas Life Insurance Corp. S&P®, S&P 500®, US 500, The 500, iBoxx®, iTraxx® and CDX® are trademarks of S&P Global, Inc. or its affiliates (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”). Ameritas Life Insurance Corp.'s life insurance products are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500 or S&P 500 Sector Rotator Daily RC2 5%. The BNP Paribas Momentum Multi-Asset 5 Index (the "Index") has limited historical information having launched on 1/27/2017. For more information about the Index, visit https://momentum5index.bnpparibas.com . The Ameritas Life Insurance Corp.’s life insurance product is not sponsored, endorsed, sold, or promoted by BNP Paribas or any of its affiliates (collectively, “BNP Paribas”). Neither BNP Paribas nor any other party (including without limitation any calculation agents or data providers) makes any representation or warranty, express or implied, regarding the advisability of purchasing this product. The BNP Paribas Momentum Multi-Asset 5 Index (the “Index”) is the exclusive property of BNP Paribas. BNP Paribas and the Index are service marks of BNP Paribas and have been licensed for use for certain purposes by Ameritas Life Insurance Corp. Neither BNP Paribas nor any other party has or will have any obligation or liability to owners of this product in connection with the administration or marketing of this product, and neither BNP Paribas nor any other party guarantees the accuracy and/or the completeness of the Index or any data included therein.
Ethos Index Universal LIfe Insurance is not a deposit, not FDIC insured, may go down in value, not insured by any federal government agency, and not guaranteed by any bank or savings associations.
Form # IUL-CB-0723
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