SECURITY BENEFIT LIFE INSURANCE COMPANY
GROUP FLEXIBLE PREMIUM DEFERRED VARIABLE ANNUITY CONTRACT
THE COMPANY'S PROMISE
In consideration of the Purchase Payments and the attached Enrollment Form,
Security Benefit Life Insurance Company (the "Company") will pay the benefits of
this Contract according to its provisions.
LEGAL CONTRACT
PLEASE READ YOUR CONTRACT CAREFULLY. It is a legal Contract between the Owner
and the Company. The Contract's table of contents is on page 2.
RIGHT TO CANCEL
IF FOR ANY REASON THE OWNER IS NOT SATISFIED WITH THIS CONTRACT, THE OWNER MAY
RETURN IT TO THE COMPANY WITHIN 10 DAYS FROM THE DATE OF RECEIPT. IT MAY BE
RETURNED BY DELIVERING OR MAILING IT TO THE COMPANY. IF RETURNED, THIS CONTRACT
SHALL BE DEEMED VOID FROM THE CONTRACT DATE. THE COMPANY WILL REFUND ANY
PURCHASE PAYMENTS MADE AND ALLOCATED TO THE GENERAL ACCOUNT AND WILL REFUND
SEPARATE ACCOUNT CONTRACT VALUE AS OF THE DATE THE RETURNED POLICY IS RECEIVED
BY THE COMPANY.
Signed for Security Benefit Life Insurance Company on the Contract Date.
XXXXX X. XXXXX XXXXXX X. XXXXXX
Secretary President
A BRIEF DESCRIPTION OF THIS CONTRACT
This is a GROUP FLEXIBLE PREMIUM DEFERRED VARIABLE ANNUITY CONTRACT.
*In return for Purchase Payments, the Company will pay the annuity and other
benefits as provided in this Contract.
*Individual allocations are maintained for Participants.
*This Contract is Participating.
ALL PAYMENTS AND VALUES PROVIDED BY THIS CONTRACT, WHEN BASED ON THE INVESTMENT
EXPERIENCE OF THE SEPARATE ACCOUNT, ARE VARIABLE AND MAY INCREASE OR DECREASE IN
ACCORDANCE WITH THE INVESTMENT EXPERIENCE OF THE SEPARATE ACCOUNT. THERE ARE NO
GUARANTEED MINIMUM PAYMENTS OR CASH VALUES. (SEE "CONTRACT VALUE AND EXPENSE
PROVISIONS" AND "ANNUITY PAYMENT PROVISIONS" FOR DETAILS.)
[SBL LOGO]
SECURITY BENEFIT LIFE INSURANCE COMPANY
A Member of The Security Benefit Group of Companies
000 XX Xxxxxxxx Xxxxxx, Xxxxxx, XX 00000-0000
0-000-000-0000
GV6023 (1-98)U BP 6023P1
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TABLE OF CONTENTS
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PAGE
CONTRACT SPECIFICATIONS................................................. 3
DEFINITIONS............................................................. 4-6
GENERAL PROVISIONS...................................................... 7-9
The Contract.......................................................... 7
Certificates.......................................................... 7
Plan Provisions....................................................... 7
Change of Contract.................................................... 7
Future Participants................................................... 7
Misstatement of Age................................................... 7
Evidence of Survival.................................................. 7
Assignment............................................................ 7
Transfers............................................................. 8
Claims of Creditors................................................... 9
Nonforfeiture Values.................................................. 9
Participation......................................................... 9
Statements............................................................ 9
BENEFICIARY PROVISIONS.................................................. 9
Primary and Secondary Beneficiaries................................... 9
Beneficiary Changes................................................... 9
PURCHASE PAYMENT PROVISIONS............................................. 10
Flexible Purchase Payments............................................ 10
Purchase Payment Limitations.......................................... 10
Purchase Payment Allocation........................................... 10
Place of Payment...................................................... 10
CONTRACT VALUE AND EXPENSE PROVISIONS................................... 10-12
Contract Value........................................................ 10
General Account Contract Value........................................ 10
General Account Interest Crediting.................................... 11
Separate Account Contract Value....................................... 11
Accumulation Unit Value............................................... 11
Net Investment Factor................................................. 11
Determining Accumulation Units........................................ 12
Mortality and Expense Risk Charge..................................... 12
Premium Tax Expense................................................... 12
Administrative Charge................................................. 12
Mutual Fund Expenses.................................................. 12
WITHDRAWAL PROVISIONS................................................... 12-14
Withdrawals........................................................... 12, 13
Withdrawal Value...................................................... 13
Withdrawal Charges.................................................... 13
Free Withdrawals...................................................... 13
Systematic Withdrawals................................................ 13, 14
Free Systematic Withdrawals........................................... 14
Date of Request....................................................... 14
Payment of Withdrawal Benefits........................................ 14
DEATH BENEFIT PROVISIONS................................................ 15
Death Benefit......................................................... 15
Proof of Death........................................................ 15
ANNUITY PAYMENT PROVISIONS.............................................. 16-19
Annuity Commencement Date............................................. 16
Change of Annuity Commencement Date................................... 16
Annuity Start Amount.................................................. 16
Withdrawal Charges.................................................... 16
Annuity Tables........................................................ 16, 17
Annuity Payments...................................................... 17
Change of Annuity Option.............................................. 17
Fixed Annuity Payments................................................ 17
Variable Annuity Payments............................................. 17
Annuity Units......................................................... 17, 18
Net Investment Factor................................................. 18
Alternate Annuity Option Rates........................................ 18
Annuity Options....................................................... 19
ANNUITY TABLES.......................................................... 20
AMENDMENTS OR ENDORSEMENTS, if any
-2- BP 6023P1
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VARIABLE ANNUITY CONTRACT SPECIFICATIONS
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OWNER: ABC Employer
CONTRACT NUMBER: Specimen
CONTRACT DATE: 6-30-1996
ASSIGNMENT: This Policy may not be assigned.
See Assignment Provision of your Policy.
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INITIAL PURCHASE PAYMENT ................ $500
MINIMUM SUBSEQUENT PURCHASE PAYMENTS .... $25
MINIMUM SYSTEMATIC WITHDRAWAL ........... $25
MAXIMUM PARTICIPANT AGE ................. 90
MORTALITY AND EXPENSE RISK CHARGE ....... 1.20% Annually
ANNUAL ADMINISTRATIVE FEE ............... $30*
WITHDRAWAL CHARGES
Contract Year of Withdrawal ........... 1 2 3 4 5 6 7 8 9 +
Withdrawal Charge ..................... 8% 7% 6% 5% 4% 3% 2% 1% 0%
FREE WITHDRAWAL PERCENTAGE .............. 10%
MINIMUM GUARANTEED RATE ................. 3%
SEPARATE ACCOUNT ........................ Variflex
SEPARATE ACCOUNT SERIES:
1 Money Market Series 8 Specialized Asset Allocation Series
2 High Grade Income Series 9 Growth Series
3 High Yield Series 10 Value Series
4 Global Aggressive Bond Series 11 Worldwide Equity Series
5 Growth-Income Series 12 Social Awareness Series
6 Equity Income Series 13 Emerging Growth Series
7 Managed Asset Allocation Series 14 Small Cap Series
METHOD FOR DEDUCTIONS:
Deductions for the Annual Administrative Fee, Premium Taxes, and any
unallocated partial Withdrawals, including Systematic Withdrawals, will be
made sequentially from the Contract Value in the order of the Series listed
above. The value of each Account will be depleted before the next is charged.
The General Account is the last Account charged.
*The Annual Administrative Fee is deducted at each Contract Anniversary. A pro
rata fee is deducted: (1) upon a full Withdrawal of Contract Value; (2) when
a Contract has been in force for less than a full contract year; (3) upon the
Annuity Commencement Date if one of Annuity Options 1 through 4, 7 or 8 is
chosen; and (4) upon payment of a death benefit. The Annual Administrative
Fee will be waived during a Contract Year if: (1) Contract Value on that
Contract Anniversary (or in the event of a full Withdrawal, upon the date of
such Withdrawal) is $25,000 or more; and (2) the Contract has been in force
eight Contract Years or more.
GV6023A (1-98) -3- SBL155
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DEFINITIONS
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ACCOUNT
An Account is one of the Series or the General Account.
ACCUMULATION UNIT
The Accumulation Unit is a unit of measure. It is used to compute the
Separate Account Contract Value prior to the Annuity Commencement Date. It is
also used to compute the Variable Annuity Payments for Annuity Options 5 and
6.
ANNUITY OPTION
An Annuity Option is a set of provisions that form the basis for making
Annuity Payments. The Annuity Option is set prior to the Annuity Commencement
Date. Please see "Annuity Options" on page 19.
ANNUITY COMMENCEMENT DATE
The Annuity Commencement Date is the date on which Annuity Payments are
scheduled to begin. This date may be changed by the Participant. Please see
"Annuity Commencement Date" on page 16.
ANNUITY UNIT
The Annuity Unit is a unit of measure used to compute Variable Annuity
Payments for Annuity Options 1 through 4, 7 and 8.
AUTOMATIC TRANSFERS
Automatic Transfers are Transfers among the Series and the General Account.
Such transfers are made automatically on a periodic basis by the Company at
the written request of the Participant. The Company reserves the right to
discontinue, modify or suspend Automatic Transfers.
COMPANY
The Company is Security Benefit Life Insurance Company, 000 XX Xxxxxxxx
Xxxxxx, Xxxxxx, Xxxxxx 00000-0000.
CONTRACT ANNIVERSARY
A Contract Anniversary is a 12-month anniversary of the Contract Date.
CONTRACT DATE
The Contract Date is the date the Participant's Certificate begins. The
Contract Date is shown on page 3 of each certificate.
CONTRACT YEAR
Contract Years are measured from the Contract Date.
CURRENT INTEREST
The Company may in its discretion pay Current Interest on the General Account
at a rate that exceeds the Minimum Guaranteed Rate shown on page 3. The
Company will declare the rate of Current Interest, if any, from time to time.
DESIGNATED BENEFICIARY
Upon the death of the Participant, the Designated Beneficiary will be the
first person on the following list who is alive on the date of death:
1. Primary Beneficiary;
2. Secondary Beneficiary; and
3. the Participant's estate if no one listed above is alive.
The Designated Beneficiary receives a death benefit upon the death of the
Participant prior to the Annuity Commencement Date. Please see "Beneficiary
Provisions" on page 9 and "Death Benefit Provisions" on page 15.
GV6023B (1-98) -4- BP 6023C1
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DEFINITIONS (Continued)
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GENERAL ACCOUNT
The General Account is part of the Company's general account. The Company
manages the general account and guarantees that it will credit interest on
General Account Contract Value at an annual rate at least equal to the
Minimum Guaranteed Rate. This Rate is shown on page 3.
HOME OFFICE
The address of the Company's Home Office is Security Benefit Life Insurance
Company, 000 XX Xxxxxxxx Xxxxxx, Xxxxxx, Xxxxxx 00000-0000.
NONNATURAL PERSON
Any group or entity that is not a living person, such as a trust or
corporation.
OWNER
The Employer or other entity that makes application for the Contract.
PLAN
The employer-sponsored retirement plan, annuity purchase arrangement, or
deferred compensation program for which the Contract is used.
PARTICPANT
A person for whom or with respect to whom Purchase Payments are made under
the Contract.
PARTICIPANT ACCOUNT
An individual account which is established for a Participant to record the
Contract Value for the Participant.
PREMIUM TAX
Any Premium Taxes levied by a state or other governmental entity will be
charged against this Contract. When Premium Tax is assessed after the
Purchase Payment is applied, it will be deducted as described on page 3.
PURCHASE PAYMENT
A Purchase Payment is money Received by the Company for allocation to the
Participant Account.
RECEIVED BY THE COMPANY
The phrase "Received by the Company" means receipt by the Company in good
order at its Home Office, 000 XX Xxxxxxxx Xxxxxx, Xxxxxx, Xxxxxx 00000-0000.
SEPARATE ACCOUNT
The Separate Account, shown on page 3 is a separate account established and
maintained by the Company under Kansas law. The Separate Account is
registered with the Securities and Exchange Commission under the Investment
Company Act of 1940 as a Unit Investment Trust. It was established by the
Company to support variable annuity contracts. The Company owns the assets of
the Separate Account and maintains them apart from the assets of its general
account and its other separate accounts. The assets held in the Separate
Account equal to the reserves and other Contract liabilities with respect to
the Separate Account may not be charged with liabilities arising from any
other business the Company may conduct.
-5- BP 6023C1
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DEFINITIONS (Continued)
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SEPARATE ACCOUNT (Continued)
Income and realized and unrealized gains and losses from assets in the
Separate Account are credited to, or charged against, the Separate Account
without regard to the income, gains or losses from the Company's general
account or its other separate accounts. The Separate Account is divided into
Series shown on page 3. Xxxxxx and realized and unrealized gains and losses
from assets in each Series are credited to, or charged against, the Series
without regard to income, gains or losses in the other Series. The Company
has the right to transfer to its general account any assets of the Separate
Account that are in excess of the reserves and other Contract liabilities
with respect to the Separate Account. The value of the assets in the Separate
Account on each Valuation Date is determined as of the end of each Valuation
Date.
SERIES
The Separate Account is divided into Series which invest in shares of mutual
funds. Each Series may invest its assets in a separate class or series of a
designated mutual fund or funds. The Series are shown on page 3. Subject to
the regulatory requirements then in force, the Company reserves the right to:
1. change or add designated mutual funds or other investment vehicles;
2. add, remove or combine Series;
3. add, delete or make substitutions for securities that are held or
purchased by the Separate Account or any Series;
4. operate the Separate Account as a management investment company;
5. combine the assets of the Separate Account with other Separate Accounts
of the Company or an affiliate thereof;
6. restrict or eliminate any voting rights of the Owner with respect to the
Separate Account or other persons who have voting rights as to the
Separate Account; and
7. terminate and liquidate any Series.
If any of these changes result in a material change to the Separate Account
or a Series, the Company will notify the Owner of the change. The Company
will not change the investment policy of any Series in any material respect
without complying with the filing and other procedures of the insurance
regulators of the state of issue.
SERIES NET ASSET VALUE
The Series Net Asset Value is equal to: (1) the net asset value of all shares
of the underlying mutual fund held by the Series; plus (2) any cash or other
assets; less (3) all liabilities of the Series.
VALUATION DATE
A Valuation Date is each day the New York Stock Exchange and the Company's
Home Office are open for business.
VALUATION PERIOD
A Valuation Period is the interval of time from one Valuation Date to the
next Valuation Date.
GV6023C (1-98)U -6- BP 6023R1
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GENERAL PROVISIONS
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THE CONTRACT
The entire Contract between the Owner and the Company consists of this
Contract, the Enrollment Form, and any Amendments, Endorsements or Riders to
the Contract. All statements made in the Enrollment Form will, in the absence
of fraud, as ruled by a court of competent jurisdiction, be deemed
representations and not warranties. The Company will use no statement made by
or on behalf of the Owner or the Participant to void this Contract unless it
is in the written Enrollment Form. Any change in the Contract can be made
only with the written consent of the President, a Vice President, or the
Secretary of the Company.
The Purchase Payment(s) and the Enrollment Form must be acceptable to the
Company under its rules and practices. If they are not, the Company's
liability shall be limited to a return of the Purchase Payment(s).
CERTIFICATES
The Company will issue certificates to Participants. Each certificate will
set forth the benefits to which the Participant is entitled under the
Contract. Certificates are for information only and are not part of the
Contract.
PLAN PROVISIONS
The Contract is subject to the provisions of the Plan. To the extent provided
by the Plan, any rights that may be exercised by a Participant under the
Contract may instead by exercised by the Owner or a Plan representative.
CHANGE OF CONTRACT
The Company reserves the right to make any change to the provisions of the
Contract to comply with or give the Participant the benefit of any federal or
state statute, rule or regulation. This includes, but is not limited to,
requirements for annuity contracts under the Internal Revenue Code or the
laws of any state. The Company will provide the Owner with a copy of any such
change and will also file such a change with the insurance regulatory
officials of the state in which the Contract is delivered. In addition, upon
at least 30 days written notice to the Owner, the Company may make other
changes to this Contract that will apply only to individuals who become
Participants after the effective date of such change. All such changes will
be subject to any applicable regulatory requirements.
FUTURE PARTICIPANTS
The Company may in its discretion curtail or prohibit new Participants under
the Contract upon written notice to the Owner.
MISSTATEMENT OF AGE
If the age of the Participant has been misstated, payments shall be adjusted,
when allowed by law, to the amount which would have been provided for the
correct age. Proof of the age of the Participant may be required at any time,
in a form suitable to the Company. If payments have already commenced and the
misstatement has caused an underpayment, the full amount due will be paid
with the next scheduled payment. If the misstatement has caused an
overpayment, the amount due will be deducted from one or more future
payments.
EVIDENCE OF SURVIVAL
When any payments under this Contract depend on the payee being alive on a
given date, proof that the payee is living may be required by the Company.
Such proof must be in a form accepted by the Company, and may be required
prior to making the payments.
ASSIGNMENT
This Contract cannot be sold, assigned, discounted, or pledged as collateral
for a loan or as security for the performance of an obligation. The benefits,
values, and rights under the Contract are not subject to any creditor claims
to the fullest extent permitted by law. The Contract and its rights cannot be
transferred to anyone other than the Company, except as provided under the
Plan or under a domestic relations order properly issued by a court of
competent jurisdiction and that complies with ERISA, if applicable. To the
extent permitted by the Internal Revenue Code and applicable law, the Company
will make a Full or Partial Withdrawal payable to a third party upon the
Participant's request.
-7- BP 6023R1
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GENERAL PROVISIONS (Continued)
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TRANSFERS
The Participant may Transfer Contract Value among the General Account and
Series subject to the following.
The Participant may make only 14 transfers per Contract Year. Transfers are
not allowed within 30 days of the Annuity Commencement Date. Automatic
Transfers are not included in the 14 transfers allowed per Contract Year.
After the Annuity Commencement Date, for Annuity Options 1 through 4, 7 and
8, the Participant may Transfer Contract Value only among Series.
The Company reserves the right to: (1) limit the amount that may be subject
to Transfer; (2) waive or limit the number of Transfers allowed each Contract
Year; and (3) suspend Transfers. Transfers must be at least $500.00 or, if
less, the remaining balance in the General Account or a Series.
The total dollar amount that may be Transferred from the General Account in a
Contract Year is limited to the greatest of:
1. $5,000;
2. 1/3 of the General Account Contract Value on the date the Transfer
request is Received by the Company; or
3. 120% of the dollar amount Transferred from the General Account in the
prior Contract Year.
The Company reserves the right for a period of time to allow Transfers from
the General Account in amounts that exceed the limits set forth above. In any
Contract Year following a Contract Year during which such limits were waived,
the total dollar amount that may be Transferred is the greatest of 1 above; 2
above; or
3. 120% of the lesser of:
a. the dollar amount Transferred from the General Account in the prior
Contract Year; or
b. the maximum total dollar amount that would have been allowed in the
prior Contract Year under the Transfer provisions above absent the
waiver.
The Company will effect a Transfer to or from a Series on the basis of
Accumulation Unit Value (or Annuity Unit Value) determined as of the end of
the Valuation Period in which the Transfer is effected. The Company will
effect a Transfer from the General Account on the basis of General Account
Contract Value as of the end of the Valuation Period in which the Transfer is
effected.
The Company reserves the right to delay Transfers from the General Account
for up to 6 months as required by most states. The Company will notify you if
there will be a delay.
GV6023D (1-98) -8- BP 6023E1
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GENERAL PROVISIONS (Continued)
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CLAIMS OF CREDITORS
The Contract Value and other benefits under this Contract are exempt from the
claims of creditors of the Participant to the extent allowed by law.
NONFORFEITURE VALUES
The Death Benefits, Withdrawal Values and Annuity Payout Values will at least
equal the minimum required by law.
PARTICIPATION
The Company pays dividends on some of its contracts. However, the Company
does not expect dividends to become payable on this Contract. At the end of
each Contract Year the Company will determine the Contract's dividend, if
any. The Participant may choose to have it: (1) added to Contract Value; or
(2) paid in cash. If no choice is made, any dividend will be added to
Contract Value.
STATEMENTS
At least once each Contract Year the Participant shall be sent a statement
including the current Contract Value and any other information required by
law. The Participant may send a written request for a statement at other
intervals. The Company may charge a reasonable fee for such statements.
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BENEFICIARY PROVISIONS
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PRIMARY AND SECONDARY BENEFICIARIES
The Primary Beneficiary is named by the Participant. The Participant may
change any Beneficiary as described in "Beneficiary Changes" below. If the
Primary Beneficiary dies prior to the Participant, the Secondary Beneficiary
becomes the Primary Beneficiary. Unless the Participant directs otherwise,
when there are two or more Primary Beneficiaries, they will receive equal
shares.
BENEFICIARY CHANGES
Subject to the terms of any existing Assignment, the Participant may name a
new Primary Beneficiary or a new Secondary Beneficiary. Any new choice of
Primary Beneficiary or Secondary Beneficiary will revoke any prior choice.
Any change must be made in writing and recorded at the Home Office. The
change will become effective as of the date of written request is signed,
whether or not the Participant is living at the time the change is recorded.
A new choice of Primary Beneficiary or Secondary Beneficiary will not apply
to any payment made or action taken by the Company prior to the time it was
recorded. The Company may require the Certificate be returned so these
changes may be made.
-9- BP 6023E1
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PURCHASE PAYMENT PROVISIONS
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FLEXIBLE PURCHASE PAYMENTS
The Participant Account becomes in force on the Contract Date. The
Participant is not required to continue Purchase Payments in the amount or
frequency originally planned. The Participant may: (1) increase or decrease
the amount of Purchase Payments, subject to any Contract limits; or (2)
change the frequency of Purchase Payments. A change in frequency or amount of
Purchase Payments does not require a written request. If no Purchase Payment
is received during the 180-day period beginning on the Contract Date, the
Participant Account will automatically terminate.
PURCHASE PAYMENT LIMITATIONS
Purchase Payments exceeding $1,000,000 will not be accepted without prior
approval by the Company. The Minimum Subsequent Purchase Payment amount is
shown on page 3.
PURCHASE PAYMENT ALLOCATION
Purchase Payments may be allocated among the General Account and the Series.
The allocations may be whole dollar amount or whole percentage. However, no
less than $25 per Purchase Payment may be allocated to any Account. The
Participant may change the allocations by written notice to the Company.
PLACE OF PAYMENT
All Purchase Payments under this Contract are to be paid to the Company at
its Home Office. Purchase Payments after the initial Purchase Payment are
applied as of the end of the Valuation Period during which they are Received
by the Company.
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CONTRACT VALUE AND EXPENSE PROVISIONS
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CONTRACT VALUE
On any Valuation Date, the Contract Value is the sum of the following amounts
allocated to a Participant Account: (1) the Separate Account Contract Value;
and (2) the General Account Contract Value. At any time after the first
Contract Year and before the Annuity Commencement Date, the Company reserves
the right to pay to the Participant the Contract Value as a lump sum if it is
below $2,000.
GENERAL ACCOUNT CONTRACT VALUE
On any Valuation Date, the General Account Contract Value is equal to the
first Purchase Payment allocated under the Participant Account to the General
Account:
PLUS:
1. any other Purchase Payments allocated under the Participant Account to
the General Account;
2. any Transfers from the Separate Account Contract Value to the General
Account; and
3. any interest credited to the General Account Contract Value.
LESS:
1. any Withdrawals and applicable Withdrawal Charges deducted from the
General Account Contract Value;
2. any Transfers from the General Account Contract Value to the Separate
Account;
3. any applicable Premium Taxes;
4. any Annual Administrative Fee deducted from General Account Contract
Value;
5. any General Account Contract Value which is applied to any of Annuity
Options 1 through 4, 7 and 8; and
6. any Annuity Payments made from General Account Contract Value under
Annuity Options 5 and 6.
GV6023E (1-98) -10- BP 6023F1
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CONTRACT VALUE AND EXPENSE PROVISIONS (Continued)
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GENERAL ACCOUNT INTEREST CREDITING
The Company shall credit interest on General Account Contract Value at an
annual rate at least equal to the Minimum Guaranteed Rate shown on page 3.
Also, the Company may in its sole judgment credit Current Interest at a rate
in excess of the Minimum Guaranteed Rate.
The Company may credit Current Interest on Contract Value that was allocated
or Transferred to the General Account during one period at a different rate
than amounts allocated or Transferred to the General Account in another
period. Therefore, at any time, portions of General Account Contract Value
may be earning Current Interest at different rates based upon the period
during which such portions were allocated or Transferred to the General
Account.
SEPARATE ACCOUNT CONTRACT VALUE
On any Valuation Date, the Separate Account Contract Value is the sum of the
then current value of the Accumulation Units allocated to each Series for the
Participant Account.
ACCUMULATION UNIT VALUE
The initial Accumulation Unit Value for each Series was set at $10. The
Accumulation Unit Value for any subsequent Valuation Date is equal to (1)
multiplied by (2) where:
1. is the Accumulation Unit Value determined on the immediately preceding
Valuation Date; and
2. is the Net Investment Factor on the Valuation Date with respect to which
the Accumulation Unit Value is being determined.
NET INVESTMENT FACTOR
The Net Investment Factor for any Series as of the end of any Valuation
Period is determined by dividing (1) by (2) and subtracting (3) from the
result, where;
1. is equal to:
a. the net asset value per share of the mutual fund held in the Series
found as of the end of the current Valuation Period; plus
b. the per share amount of any dividend or capital gain distributions
paid by the Series' underlying mutual fund that is not included in
the net asset value per share; plus or minus
c. a per share charge or credit for any taxes reserved for, which the
Company deems to have resulted from the operation of the Separate
Account or the Subaccounts; operations of the Company with respect to
the Contract; or the payment of the premiums or acquisition costs
under the Contract.
2. is the net asset value per share of the Series' underlying mutual fund as
of the end of the prior Valuation Period.
3. is the daily factor representing the Mortality and Expense Risk Charge
which is deducted from the Separate Account.
Underlying mutual funds may declare dividends on a daily basis and pay such
dividends once a month. The Net Investment Factor allows for the monthly
reinvestment of these daily dividends. As described above, the gains and
losses from each Series are credited to or charged against the Series without
regard to the gains or losses in the Company or other Series.
-11- BP 6023F1
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CONTRACT VALUE AND EXPENSE PROVISIONS (Continued)
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DETERMINING ACCUMULATION UNITS
The number of Accumulation Units allocated to or deducted from a Series under
the Participant Account is found by dividing: (1) the amount allocated to or
deducted from the Series; by (2) the Accumulation Unit Value for the Series
as of the end of the Valuation Period during which the amount is allocated to
or deducted from Contract Value. The number of Accumulation Units allocated
to a Series under the Contract will not change as a result of investment
experience. Events that change the number of Accumulation units are:
1. Purchase Payments that are applied to the Series;
2. Contract Value that is Transferred into or out of the Series;
3. Withdrawals and any applicable Withdrawal Charges that are deducted from
the Series;
4. Premium Taxes that are deducted from the Series; and
5. Annual Administrative Fees that are deducted from the Series.
MORTALITY AND EXPENSE RISK CHARGE
The Company will deduct the Mortality and Expense Risk Charge shown on page
3. This charge will be computed and deducted from each Series on each
Valuation Date. This charge is factored into the Accumulation Unit and
Annuity Unit Value on each Valuation Date.
PREMIUM TAX EXPENSE
The Company reserves the right to deduct Premium Tax when due or any time
thereafter. Any applicable Premium Taxes will be deducted as described on
page 3.
ADMINISTRATIVE CHARGE
The Company will deduct from Contract Value for each Participant Account the
Annual Administrative Fee in the amount and manner shown on page 3. No Annual
Administrative Fee is deducted on or after the Annuity Commencement Date if
one of Annuity Options 1 through 4, 7 or 8 is chosen. The Annual
Administrative Fee and other charges may be waived or reduced uniformly on
all Contracts issued under certain plans or arrangements which are expected
to result in administrative cost savings.
MUTUAL FUND EXPENSES
Each Series invests in share of a mutual fund. The net asset value per share
of each underlying fund reflects the deduction of any investment advisory and
administration fees and other expenses of the fund. These fees and expenses
are not deducted from the assets of a Series, but are paid by the underlying
funds. The Participant indirectly bears a pro rata share of such fees and
expenses. An underlying fund's fees and expenses are not specified or fixed
under the terms of the Contract.
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WITHDRAWAL PROVISIONS
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WITHDRAWALS
A full or partial Withdrawal of Contract Value is allowed at any time while
the Participant is living. This provision is subject to any federal or state
Withdrawal restrictions.
Upon the Participant's request for a full Withdrawal, the Company will pay
the Withdrawal Value in a lump sum, and the Participant Account will
terminate.
All Withdrawals must meet the following conditions.
1. The request for Withdrawal must be Received by the Company in writing or
under other methods allowed by the Company, if any.
2. The Participant must apply: (a) while this Contract is in force; and (b)
prior to the Annuity Commencement Date.
3. The amount Withdrawn must be at least $25, except upon a full Withdrawal.
GV6023F (1-98) -12- BP 6023G1
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WITHDRAWAL PROVISIONS (Continued)
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WITHDRAWALS (Continued)
A partial Withdrawal request must state the allocations for deducting the
Withdrawal from each Account. If no allocation is specified, the partial
Withdrawal will be deducted from the Accounts in the order described on page
3, "Method for Deductions."
WITHDRAWAL VALUE
The Withdrawal Value at any time will be the Contract Value less: (1) any
Premium Taxes due or paid by the Company; (2) any Annual Administrative Fee;
and (3) any Withdrawal Charges.
WITHDRAWAL CHARGES
If part or all of the Contract Value is Withdrawn, Withdrawal Charges may be
applied at the time of Withdrawal. The Withdrawal Charge is applied to the
lesser of: (1) the amount withdrawn; or (2) the amount of Purchase Payments.
The amount of the charge is based on the Contract Year in which the
Withdrawal is made. See the Withdrawal Charges shown on page 3. For the
purpose of determining the Withdrawal Charges, Purchase Payments are
withdrawn before Earnings on a first in first out basis. The Withdrawal
Charge will not be assessed against:
1. any Free Withdrawal amounts;
2. any Free Systematic Withdrawal amounts;
3. any amounts remaining after all Purchase Payments are withdrawn;
4. payments under Annuity Options 1 through 4 and 8;
5. payments under Annuity Options 5 through 7 provided that Annuity Payments
are made for at least 7 years.
The Withdrawal Charge will be assessed against Contract Value allocated to
the Series and the General Account in the same proportion as the Withdrawal
is allocated.
FREE WITHDRAWALS
A Free Withdrawal is a Withdrawal amount which is not subject to Withdrawal
Charges. One Free Withdrawal may be made in each Contract Year after the
first Contract Year. The Maximum Free Withdrawal amount is equal to the Free
Withdrawal Percentage shown on page 3, times the Contract Value on the
Valuation Date the Withdrawal request is Received by the Company. The Free
Withdrawal amount is applied only to the first Withdrawal in a Contract Year.
A Free Withdrawal is not available in any Contract Year that Free Systematic
Withdrawals have been made. Unused Free Withdrawal amounts are not carried
from one Contract Year to the next.
SYSTEMATIC WITHDRAWALS
Systematic Withdrawals are automatic periodic Withdrawals from the Contract
in substantially equal amounts made while the Participant is living prior to
the Annuity Commencement Date.
Systematic Withdrawals are available after the first Contract Year.
Systematic Withdrawals are available, however, during the first Contract Year
if Contract Value is $40,000 or more on the date the Systematic Withdrawal
request is Received by the Company.
-13- BP 6023G1
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WITHDRAWAL PROVISIONS (Continued)
--------------------------------------------------------------------------------
SYSTEMATIC WITHDRAWALS (Continued)
In order to start Systematic Withdrawals, the Owner must make the request in
writing. Systematic Withdrawals are subject to any applicable Withdrawal
Charge, except as discussed under "Free Systematic Withdrawals," below. The
Minimum Systematic Withdrawal amount is shown on page 3. The Participant must
choose the type of payment and its frequency. The Systematic Withdrawal
request must state the allocations for deducting the Withdrawals from each
Account. If no allocation is specified, the Withdrawals will be deducted from
the Accounts in the order described on page 3, "Method for Deductions." The
payment type may be: (1) a percentage of Contract Value; (2) a specified
dollar amount; (3) over a fixed period of time; (4) all earnings in the
Contract; or (5) based upon the life expectancy of the Owner or the Owner and
Beneficiary. The payment frequency may be: (1) monthly; (2) quarterly; (3)
semiannually; or (4) annually. Systematic Withdrawals may be stopped or
changed by the Owner upon proper written request Received by the Company at
least 30 days in advance of the requested date of termination or change. The
Company reserves the right to stop, modify or suspend Systematic Withdrawals
at any time.
FREE SYSTEMATIC WITHDRAWALS
Free Systematic Withdrawals are not subject to a Withdrawal Charge. The
amount of Free Systematic Withdrawals available in a Contract Year is as
follows: an amount equal to the Free Withdrawal Percentage shown on page 3,
times the Contract Value on the Valuation Date the First Systematic
Withdrawal Request in such Contract Year is Received by the Company.
Systematic Withdrawals are not available in any Contract Year in which a Free
Withdrawal has been made. Systematic Withdrawals that exceed the Free
Systematic Withdrawal amount will incur a Withdrawal Charge.
DATE OF REQUEST
The Company will effect a Withdrawal of Separate Account Contract Value on
the basis of Accumulation Unit Value determined as of the end of the
Valuation Period in which all the required information is Received by the
Company. The Company will effect a Systematic Withdrawal of Separate Account
Contract Value on the basis of Accumulation Unit Value determined as of the
end of the Valuation Period during which such Withdrawal is scheduled.
PAYMENT OF WITHDRAWAL BENEFITS
The Company reserves the right to suspend a Transfer or delay payment of a
Withdrawal from the Separate Account for any period:
1. when the New York Stock Exchange is closed; or
2. when trading on the New York Stock Exchange is restricted; or
3. when an emergency exists as a result of which: (a) disposal of securities
held in the Separate Account is not reasonably practicable; or (b) it is
not reasonably practicable to fairly value the net assets of the Separate
Account; or
4. during any other period when the Securities and Exchange Commission, by
order, so permits to protect owners of securities.
Rules and regulations of the Securities and Exchange Commission will govern
as to whether the conditions set forth above exist.
The Company further reserves the right to delay payment of a Withdrawal from
the General Account for up to six months as required by most states. The
Company will notify you if there will be a delay.
GV6023G (1-98) -14- BP 6023H1
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DEATH BENEFIT PROVISIONS
--------------------------------------------------------------------------------
DEATH BENEFIT
If any Participant dies prior to the Annuity Commencement Date, a Death
Benefit will be paid to the Designated Beneficiary when due Proof of Death
and instructions regarding payment are Received by the Company.
If the age of each Participant was 75 or younger on the Contract Date, the
Death Benefit will be the greatest of: (1) the sum of all Purchase Payments,
less any Premium Taxes due or paid by the Company and less the sum of all
partial Withdrawals; (2) the Contract Value on the date due Proof of Death
and instructions regarding payment are Received by the Company, less any
Premium Taxes due or paid by the Company; or (3) the Stepped-Up Death Benefit
described below.
The Stepped-Up Death Benefit is:
1. the largest Death Benefit on any Contract Anniversary that is both an
exact multiple of six and occurs prior to the oldest Owner reaching age
76; plus
2. any Purchase Payments received since the applicable sixth Contract
Anniversary; less
3. any reductions caused by Withdrawals since the applicable sixth Contract
Anniversary; less
4. any Premium Taxes due or paid by the Company.
If the age of the Participant on the Contract Date was 76 or older, the Death
Benefit will be the greater of: (1) the sum of all Purchase Payments, less
any premium taxes due or paid by the Company and less the sum of all partial
Withdrawals; or (2) the Contract Value on the date due Proof of Death and
instructions regarding payment are Received by the Company, less any Premium
Taxes due or paid by the Company.
If a lump sum payment is requested, the payment will be made in accordance
with any laws and regulations that govern the payment of Death Benefits.
PROOF OF DEATH
Any of the following will serve as Proof of Death:
1. certified copy of the death certificate;
2. certified decree of a court of competent jurisdiction as to the finding
of death;
3. written statement by a medical doctor who attended the deceased
Participant; or
4. any proof accepted by the Company.
-15- BP 6023H1
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ANNUITY PAYMENT PROVISIONS
--------------------------------------------------------------------------------
ANNUITY COMMENCEMENT DATE
The Participant may choose the Annuity Commencement Date at the time of
application. The Annuity Commencement Date may not be prior to the third
Contract Anniversary. If no Annuity Commencement Date is chosen, the Company
will use the later of: (1) the Participant's sixty-fifth birthday; or (2) the
tenth Contract Anniversary, but in no event later than the Participant's 95th
birthday. The Annuity Commencement Date must be prior to the Participant's
95th birthday.
The Annuity Commencement Date is the date the first payment will be made to
the Participant under any of the Annuity Options.
CHANGE OF ANNUITY COMMENCEMENT DATE
The Participant may change the Annuity Commencement Date. A request for the
change must be made in writing. The written request must be Received by the
Company at least 30 days prior to the new Annuity Commencement Date as well
as 30 days prior to the previous Annuity Commencement Date.
ANNUITY START AMOUNT
The Annuity Start Amount is applied to one of the Annuity Options listed on
page 19. The Annuity Start Amount is: (1) the Contract Value on the Annuity
Commencement Date; less (2) any Premium Taxes due or paid by the Company; and
less (3) if one of the Annuity Options 1 through 4, 7 or 8 is chosen, a pro
rata Administrative Fee. Unless otherwise directed by the Participant,
Annuity Start Amount derived from General Account Contract Value will be
applied to purchase a Fixed Annuity Option; that derived from Separate
Account Contract Value will be applied to purchase a Variable Annuity Option.
WITHDRAWAL CHARGES
Withdrawal Charges are not applied to: (1) Annuity payments made under
Annuity Options 1 through 4 and 8; or (2) those made under annuity Options 5
through 7 that provide for payments over a period of at least 7 years.
Withdrawal Charges are applied to annuity payments under Annuity Options 5
through 7 that provide for payments over a period of less than 7 years. See
"Withdrawal Provisions" on pages 12-14.
ANNUITY TABLES
The Annuity Payments under Annuity Options 1 through 4 and 8 are based upon
the 1983 Table "A" mortality table. The amount of each Annuity Payment for
Annuity Options 1 through 4, 7 and 8 will depend on the Participant's age on
the Annuity Commencement Date.
For Fixed Annuity Payments, Tables A through C below show the guaranteed
minimum amount for each monthly Annuity Payment per $1,000 of Annuity Start
Amount for Annuity Options 1 through 4, 7 and 8. Tables A and B are based
upon the 1983 Table "A" mortality table and an interest rate of 3% per year.
For Variable Annuity Payments, the first Annuity Payment for Annuity Options
1 through 4 and 8 is determined by reference to the 1983 Table "A" mortality
table and an assumed interest rate of 3.5% per year and, for Option 7, by
reference to Table C below.
GV6023H (1-98)U -16- BP 6023Q1
--------------------------------------------------------------------------------
ANNUITY PAYMENT PROVISIONS (Continued)
--------------------------------------------------------------------------------
ANNUITY TABLES (Continued)
Tables A and B assume 1900 as the year of birth of the Participant. To use
Tables A and B for a Participant born after 1900, the actual age is reduced
by 0.1 (one-tenth) of a year for each year the year of birth exceeds 1900.
For a Participant with a birth year prior to 1900, the actual age is
increased in a like manner. The actual age (in completed months) reduced or
increased becomes the "adjusted age of the Participant." The guaranteed
payout rate is then found by interpolating the Participant's adjusted age
between the ages shown in the Tables. On request the Company will furnish the
amount of monthly Annuity Payment per $1,000 applied for any age.
For Annuity Options 5 through 7, annuity rates based on age are not used to
calculate Annuity Payments. Annuity Payments for options 5 and 6 are computed
without reference to the Annuity Tables.
ANNUITY PAYMENTS
The Annuity Option is shown on page 3. The Participant may choose any form of
Annuity Option that is allowed by the Company. The Participant may choose an
Annuity Option by written request. This request must be Received by the
Company at least 30 days prior to the Annuity Commencement Date. Several
Annuity Options are listed on page 19. No Annuity Option can be selected that
requires the Company to make periodic payments of less than $50. If no
Annuity Option is chosen prior to the Annuity Commencement Date, the Company
will use Life with 10-Year Fixed Period Option. Each Annuity Option allows
for making Annuity Payments annually, semiannually, quarterly or monthly.
CHANGE OF ANNUITY OPTION
Prior to the Annuity Commencement Date, the Participant may change the
Annuity Option chosen. The Participant must request the change in writing.
This request must be Received by the Company at least 30 days prior to the
Annuity Commencement Date.
FIXED ANNUITY PAYMENTS
With respect to Fixed Annuity Payments, the amounts shown on the Tables are
the guaranteed minimum for each Annuity Payment for Annuity Options 1 through
4, 7 and 8.
VARIABLE ANNUITY PAYMENTS
With respect to Variable Annuity Payments, the guaranteed minimum first
Annuity Payment for Annuity Options 1 through 4, 7 and 8 are determined as
discussed above. The amount of each Annuity Payment after the first for these
options is computed by means of Annuity Units.
ANNUITY UNITS
The number of Annuity Units is found by dividing the first Annuity Payment by
the Annuity Unit Value for the selected Series on the Annuity Commencement
Date. The number of Annuity Units for the Series then remains constant,
unless a Transfer of Annuity Units is made. After the first Annuity Payment,
the dollar amount of each subsequent Annuity Payment is equal to the number
of Annuity Units times the Annuity Unit Value for the Series on the due date
of the Annuity Payment.
-17- BP 6023Q1
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ANNUITY PAYMENT PROVISIONS (Continued)
--------------------------------------------------------------------------------
ANNUITY UNITS (Continued)
The Annuity Unit Value for each Series was first set at $1.00. The Annuity
Unit Value for any subsequent Valuation Date is equal to (a) times (b) times
(c), where:
(a) is the Annuity Unit Value on the immediately preceding Valuation Date;
(b) is the Net Investment Factor for the day;
(c) is a factor used to adjust for an assumed interest rate of 3.5% per year
used to determine the Annuity Payment amounts. The assumed interest rate
is reflected in the Annuity Tables.
NET INVESTMENT FACTOR
The Net Investment Factor for any Series as of the end of any Valuation
Period is determined by dividing (1) by (2) and subtracting (3) from the
result, where:
1. is equal to:
a. the net asset value per share of the mutual fund held in the Series,
found as of the end of the current Valuation Period; plus
b. the per share amount of any dividend or capital gain distributions
paid by the Series' underlying mutual fund that is not included in
the net asset value per share; plus or minus
c. a per share charge or credit for any taxes reserved for, which the
Company deems to have resulted from the operation of the Separate
Account or Series; the operations of the Company with respect to the
Contract; or the payment of premium or acquisition costs under the
Contract.
2. is the net asset value per share of the Series' underlying mutual fund as
found as of the end of the prior Valuation Period.
3. is a factor representing the Mortality and Expense Risk Charge which is
deducted from the Separate Account.
Underlying mutual funds may declare dividends on a daily basis and pay such
dividends once a month. The Net Investment Factor allows for the monthly
reinvestment of these daily dividends. As described above, the gains and
losses from each Series are credited or charged against the Series without
regard to the gains or losses in the Company or other Series.
ALTERNATE ANNUITY OPTION RATES
The Company may, at the time of election of an Annuity Option, offer more
favorable rates in lieu of the guaranteed rates shown in the Annuity Tables.
GV6023I (1-98) -18- BP 6023J1
--------------------------------------------------------------------------------
ANNUITY PAYMENT PROVISIONS (Continued)
--------------------------------------------------------------------------------
ANNUITY OPTIONS
OPTION 1
LIFE OPTION: This option provides payments for the life of the Participant.
Table A shows some of the guaranteed rates for this option.
OPTION 2
LIFE WITH FIXED PERIOD OPTION: This option provides payments for the life of
the Participant. A fixed period of 5, 10, 15 or 20 years may be chosen.
Payments will be made to the end of this period even if the Participant dies
prior to the end of the period. If the Participant dies before receiving all
the payments during the fixed period, the remaining payments will be made to
the Designated Beneficiary. Table A shows some of the guaranteed rates for
this option.
OPTION 3
LIFE WITH INSTALLMENT OR UNIT REFUND OPTION: This option provides payments
for the life of the Participant, with a period certain determined by dividing
the Annuity Start Amount by the amount of the first payment. A fixed number
of payments will be made even if the Participant dies. If the Participant
dies before receiving the fixed number of payments, any remaining payments
will be made to the Designated Beneficiary. Table A shows some of the
guaranteed rates for this option.
OPTION 4
JOINT AND LAST SURVIVOR OPTION: This option provides payments for the life of
the Participant and a second person. Payments will be made as long as either
is living. Table B shows some of the guaranteed rates for this option.
OPTION 5
FIXED PERIOD OPTIONS: This option provides payments for a fixed number of
years between 5 and 20. The amount of each payment is determined by dividing
Contract Value on the Valuation Date the payment is made by the number of
remaining payments. If the Contract Value is held in the General Account,
then the amount of the payments will vary as a result of the interest rate
(as adjusted periodically) credit on the General Account. This rate is
guaranteed to be no less than the Guaranteed Rate shown on page 3. If the
Contract Value is held in the Separate Account, then the amount of the
payments will vary as a result of the investment performance of the Series
chosen. If Participant dies before receiving the fixed number of payments,
any remaining payments will be made to the Designated Beneficiary.
OPTION 6
FIXED PAYMENT OPTION: This option provides a fixed payment amount. This
amount is paid until the amount applied, including daily interest
adjustments, is paid. If the Contract Value is held in the General Account,
then the number of payments will vary as a result of the interest rate (as
adjusted periodically) credited on the General Account. This rate is
guaranteed to be no less than the Guaranteed Rate shown on page 3. If the
Contract Value is held in the Separate Account, then the number of payments
will vary as a result of the investment performance of the Series chosen. If
the Participant dies before receiving all the payments, any remaining
payments will be made to the Designated Beneficiary.
OPTION 7
PERIOD CERTAIN OPTION: This option provides payments for a fixed period of 5,
10, 15 or 20 years. Payments will be made until the end of this period. If
Participant dies prior to the end of the period, the remaining payments will
be made to the Designated Beneficiary. Table C shows some of the guaranteed
rates for this option.
OPTION 8
JOINT AND CONTINGENT SURVIVOR OPTION: This option provides payments for the
life of the Participant. Payments will be made to the Participant as long as
he or she is living. Upon the death of the Participant, payments will be made
to the contingent Annuitant named by the Participant as long as he or she is
living. If the contingent Annuitant is not living upon the death of the
Participant, no further payments will be made. Table B shows some of the
guaranteed rates for this option.
-19- BP 6023J1
ANNUITY TABLES
--------------------------------------------------------------------------------
TABLE A
SETTLEMENT OPTIONS ONE, TWO, AND THREE
MINIMUM MONTHLY INSTALLMENTS PER $1,000 OF AMOUNT APPLIED
Option Two Option
Adjusted Life with Fixed Period Three
Age of Option One 5 10 15 20 Unit
Participant Life Only Years Years Years Years Refund
--------------------------------------------------------------------------------
UNISEX
55 4.25 4.25 4.22 4.18 4.11 4.10
56 4.34 4.33 4.30 4.25 4.17 4.17
57 4.42 4.41 4.38 4.32 4.23 4.24
58 4.52 4.50 4.47 4.40 4.30 4.31
59 4.61 4.60 4.56 4.48 4.37 4.39
60 4.72 4.70 4.66 4.57 4.44 4.48
61 4.83 4.81 4.76 4.66 4.51 4.56
62 4.95 4.93 4.86 4.75 4.58 4.66
63 5.07 5.05 4.98 4.85 4.65 4.75
64 5.21 5.18 5.10 4.95 4.72 4.86
65 5.35 5.32 5.22 5.05 4.79 4.97
66 5.51 5.47 5.36 5.16 4.86 5.08
67 5.67 5.63 5.50 5.26 4.93 5.20
68 5.85 5.80 5.65 5.37 5.00 5.33
69 6.04 5.98 5.80 5.49 5.06 5.47
70 6.25 6.18 5.96 5.60 5.12 5.61
71 6.47 6.39 6.14 5.71 5.18 5.76
72 6.71 6.62 6.31 5.83 5.23 5.93
73 6.97 6.86 6.50 5.94 5.28 6.10
74 7.26 7.12 6.69 6.04 5.32 6.28
75 7.56 7.39 6.89 6.14 5.35 6.48
Values not shown will be provided upon request. Annual, semiannual, or quarterly
installments can be determined by multiplying the monthly installments by
11.812853, 5.9572227, and 2.9914196 respectively.
--------------------------------------------------------------------------------
TABLE B
SETTLEMENT OPTIONS FOUR
MINIMUM MONTHLY INSTALLMENTS PER $1,000 OF AMOUNT APPLIED
ADJUSTED AGE OF ADJUSTED AGE OF SECONDARY PARTICIPANT
PRIMARY PARTICIPANT 55 60 62 65 70 75
--------------------------------------------------------------------------------
55 3.56 3.66 3.71 3.76 3.83 3.88
60 3.66 3.84 3.90 3.99 4.12 4.21
62 3.71 3.90 3.98 4.09 4.25 4.37
65 3.76 3.99 4.09 4.23 4.45 4.62
70 3.83 4.12 4.25 4.45 4.79 5.10
75 3.88 4.21 4.37 4.62 5.10 5.60
Values not shown will be provided upon request. Annual, semiannual, or quarterly
installments can be determined from Table A or B by multiplying the monthly
payments by 11.812854, 5.9572233, and 2.9914201 respectively.
--------------------------------------------------------------------------------
TABLE C
SETTLEMENT OPTION SEVEN
MINIMUM MONTHLY INSTALLMENT PER $1,000 OF
AMOUNT APPLIED FOR FIXED ANNUITY PAYMENTS
MINIMUM INITIAL MONTHLY INSTALLMENT PER $1,000 OF
AMOUNT APPLIED FOR VARIABLE ANNUITY PAYMENTS
PERIOD CERTAIN
5 7 10 15 20
YEARS YEARS YEARS YEARS YEARS
--------------------------------------------------------------------------------
FIXED ANNUITY PAYMENT 17.91 13.16 9.61 6.87 5.51
VARIABLE ANNUITY PAYMENT 18.11 13.38 9.83 7.10 5.75
Values not shown will be provided upon request. Annual, semiannual, or quarterly
installments can be determined by multiplying the monthly installments by
11.812853, 5.9572227, and 2.9914196 respectively.
GV6023J (1-98) -20- BP 6023K
A BRIEF DESCRIPTION OF THE CONTRACT
This is a GROUP FLEXIBLE PREMIUM DEFERRED VARIABLE ANNUITY CONTRACT.
*In return for Purchase Payments, the Company will pay the annuity and other
benefits provided as provided in this Contract.
*Individual allocations are maintained for Participants.
*This Contract is Participating.
ALL PAYMENTS AND VALUES PROVIDED BY THIS CONTRACT, WHEN BASED ON THE INVESTMENT
EXPERIENCE OF THE SEPARATE ACCOUNT, ARE VARIABLE AND MAY INCREASE OR DECREASE IN
ACCORDANCE WITH THE INVESTMENT EXPERIENCE OF THE SEPARATE ACCOUNT. THERE ARE NO
GUARANTEED MINIMUM PAYMENTS OR CASH VALUES. (SEE "CONTRACT VALUE AND EXPENSE
PROVISIONS" AND "ANNUITY PAYMENT PROVISIONS" FOR DETAILS.)
[SBL LOGO]
SECURITY BENEFIT LIFE INSURANCE COMPANY
A Member of The Security Benefit Group of Companies
000 XX Xxxxxxxx Xxxxxx, Xxxxxx, XX 00000-0000
0-000-000-0000
BP 6023P4
