TIG stands for "taxable interest generator." ZTIG stands for "zero taxable
interest generator." It's "indexed universal life minus unneeded bells and
Example from slides...
At end, there is a balance, say $450k. We start taking a loan, at Moody's
corporate index rate, of $58k per annum for rest of lifetime.
This means a balance owed plus interest that augments perilously (see slide).
However, the $450k remains untouched. At death, the loan is paid off leaving
most of the $450 because it's a) untouched and b) been growing and making Aviva
(Accordia, whatever) a pile of money since we started paying and the $450k sat
So, the money is not actually "untouched." Instead, what's going on is the
death benefit decreases. This benefit decreases until the actuary tables say
we'll die (79 or 78) at which point the death benefit actually starts going
back up again. At age 100 for woman, benefit is in excess of $2m.