SECURITY BENEFIT LIFE INSURANCE COMPANY
FLEXIBLE PREMIUM DEFERRED VARIABLE ANNUITY CONTRACT
THE COMPANY'S PROMISE
In consideration of the Purchase Payments and the attached application, 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 FLEXIBLE PREMIUM DEFERRED VARIABLE ANNUITY CONTRACT.
*Purchase Payment may be made until the earlier of the Annuity Commencement
Date or termination of the Contract.
*A Death Benefit may be paid prior to the Annuity Commencement Date according
to the Contract provisions.
*Annuity Payments begin on the Annuity Commencement Date using the method
specified in this Contract.
*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
Form V6023 (1-98) BP 602311
TABLE OF CONTENTS
PAGE
CONTRACT SPECIFICATIONS ............................................... 3
DEFINITIONS ........................................................... 4-6
GENERAL PROVISIONS .................................................... 7-9
The Contract ........................................................ 7
Compliance .......................................................... 7
Misstatement of Age or Sex .......................................... 7
Evidence of Survival ................................................ 7
Incontestability .................................................... 7
Assignment .......................................................... 7
Transfers ........................................................... 8
Claims of Creditors ................................................. 8
Nonforfeiture Values ................................................ 8
Participation ....................................................... 8
Statements .......................................................... 9
OWNERSHIP, ANNUITANT AND BENEFICIARY PROVISIONS ....................... 9
Ownership ........................................................... 9
Joint Ownership ..................................................... 9
Annuitant ........................................................... 9
Primary and Secondary Beneficiaries ................................. 9
Ownership and 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, 16
Death Benefit ....................................................... 15
Proof of Death ...................................................... 15
Distribution Rules .................................................. 15, 16
ANNUITY PAYMENT PROVISIONS ............................................ 16-19
Annuity Commencement Date ........................................... 16
Change of Annuity Commencement Date ................................. 16
Annuity Start Amount ................................................ 16
Withdrawal Charges .................................................. 17
Annuity Tables ...................................................... 17
Annuity Payments .................................................... 17
Change of Annuity Option ............................................ 17
Fixed Annuity Payments .............................................. 17
Variable Annuity Payments ........................................... 18
Annuity Units ....................................................... 18
Net Investment Factor ............................................... 18
Alternate Annuity Option Rates ...................................... 18
Annuity Options ..................................................... 19
ANNUITY TABLES ........................................................ 20, 21
AMENDMENTS OR ENDORSEMENTS, IF ANY
-2- BP 602311
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VARIABLE ANNUITY CONTRACT SPECIFICATIONS
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OWNER NAME: Xxxx X. Xxx CONTRACT NUMBER: Specimen
OWNER DATE OF BIRTH: 10-30-1956 CONTRACT DATE: 6-30-1996
JOINT OWNER NAME: Xxxx X. Xxx ANNUITY COMMENCEMENT DATE: 7-1-2028*
JOINT OWNER DATE OF BIRTH: 7-18-1981 PLAN: Non-Qualified
ANNUITANT NAME: Xxxxx X. Xxx ASSIGNMENT: This Certificate may not
be assigned. See Assignment Provision
ANNUITANT DATE OF BIRTH: 5-13-1963 of this Certificate.
ANNUITANT'S SEX: Female
PRIMARY BENEFICIARY NAME:
Xxxxx X. Xxx
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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%
ANNUITY OPTION ........................ Life with 10-Year Fixed Period Option*
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 Owner may select the Annuity Commencement Date and the Annuity Option. If
no Annuity Commencement Date or Annuity Option is selected by the Owner, they
will be assigned automatically.
**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.
V6023A (1-98) -3- SBL73
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DEFINTIONS
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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.
ANNUITANT
The Annuitant is the person named by the Owner on whose life the Annuity
Payments depend for Annuity Options 1 through 4 and 8. The Annuitant receives
Annuity Payments under this Contract. Please see "Annuitant" provisions on page
9.
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 Owner. The Annuity
Commencement date is shown on Page 3. 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 Owner. 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 Contract begins and the date the Company uses
to determine the date the Contract becomes incontestable. The Contract Date is
shown on page 3. Please see "Incontestability" on page 7.
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 Owner or Joint Owner, the Designated Beneficiary will be
the first person on the following list who is alive on the date of death:
1. Owner;
2. Joint Owner;
3. Primary Beneficiary;
4. Secondary Beneficiary;
5. Annuitant; and
6. the Owner's estate if no one listed above is alive.
V6023B (1-98) -4- BP 602321
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DEFINITIONS (Continued)
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DESIGNATED BENEFICIARY (Continued)
The Designated Beneficiary receives a death benefit upon the death of the Owner
prior to the Annuity Commencement Date. Please see "Ownership, Annuitant, and
Beneficiary Provisions" on page 9 and "Death Benefit Provisions" on pages 15 and
16.
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.
JOINT OWNER
The Joint Owner, if any, shares an undivided interest in the entire Contract
with the Owner. The Joint Owner, if any, is named on page 3. Please see "Joint
Ownership" provisions on page 9.
NONNATURAL PERSON
Any group or entity that is not a living person, such as a trust or corporation.
OWNER
The Owner is the person who possesses all rights under the Contract. The Owner
is named on page 3. Please see "Ownership" provisions on page 9.
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 and applied to the Contract.
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 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 602321
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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 share 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.
V6023C (1-98) -6- BP 602331
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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 attached Application, and any Amendments, Endorsements or Riders to the
Contract. All statements made in the Application 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 Annuitant to void this Contract unless it is in the written Application.
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 Application 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).
COMPLIANCE
The Company reserves the right to make any change to the provisions of this
Contract or comply with or give the Owner 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.
MISSTATEMENT OF AGE OR SEX
If the age or sex of the Annuitant has been misstated, payments shall be
adjusted, when allowed by law, to the amount which would have been provided for
the correct age or sex. Proof of the age of an Annuitant 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.
INCONTESTABILITY
This Contract will not be contested after it has been in force for two years
from the Contract Date during the life of the Owner.
ASSIGNMENT
Please refer to page 3 to see if this Contract may be assigned. If it may be
assigned, no Assignment under this Contract is binding unless Received by the
Company in writing. The Company assumes no responsibility for the validity,
legality, or tax consequences of any Assignment. The Assignment will be subject
to any payment made or other action taken by the Company before the Assignment
is Received by the Company. Once filed, the right of the Owner, Xxxxxxxxx and
Beneficiary are subject to the Assignment. Any claim is subject to proof of
interest of the assignee.
-7- BP 602331
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GENERAL PROVISIONS (Continued)
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TRANSFERS
The Owner may Transfer Contract Value among the General Account and Series
subject to the following.
The Owner 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 Owner 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.
CLAIMS OF CREDITORS
The Contract Value and other benefits under this Contract are exempt from the
claims of creditors of the Owner 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
Owner 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.
V6023D (1-98) -8- BP 602341
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GENERAL PROVISIONS (Continued)
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STATEMENTS
At least once each Contract Year the Owner shall be sent a statement including
the current Contract Value and any other information required by law. The Owner
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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OWNERSHIP, ANNUITANT AND BENEFICIARY PROVISIONS
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OWNERSHIP
During the Owner's lifetime, all rights and privileges under the Contract may be
exercised only by the Owner. If the purchaser names someone other than himself
or herself as Owner, the purchaser has no rights in the Contract. No Owner may
be older than age 90 on the Contract Date.
JOINT OWNERSHIP
If a Joint Owner is named in the application, then the Owner and Joint Owner
share an undivided interest in the entire Contract as joint tenants with rights
of survivorship. When an Owner and Joint Owner have been named, the Company will
honor only requests for changes and the exercise of other Ownership rights made
by both the Owner and Joint Owner. When a Joint Owner is named, all references
to "Owner" throughout this Contract should be construed to mean both the Owner
and Joint Owner, except for the "Statements" provision above and the "Death
Benefit Provisions" on pages 15 and 16.
ANNUITANT
The Annuitant is named on page 3. The Owner may change the Annuitant prior to
the Annuity Commencement Date. The request for this change must be made in
writing and Received by the Company at least 30 days prior to the Annuity
Commencement Date. No Annuitant may be named who is older than the Maximum
Annuitant Age shown on page 3 on the Contract Date. When the Annuitant dies
prior to the Annuity Commencement Date, the Owner must name a new Annuitant
within 30 days or, if sooner, by the Annuity Commencement Date, except where the
Owner is a Nonnatural Person. If a new Annuitant is not named, the Owner becomes
the Annuitant.
PRIMARY AND SECONDARY BENEFICIARIES
The Primary Beneficiary is named on page 3. The Owner may change any Beneficiary
as described in "Ownership and Beneficiary Changes" below. If the Primary
Beneficiary dies prior to the Owner, the Secondary Beneficiary becomes the
Primary Beneficiary. Unless the Owner directs otherwise, when there are two or
more Primary Beneficiaries, they will receive equal shares.
OWNERSHIP AND BENEFICIARY CHANGES
Subject to the terms of any existing Assignment, the Owner may name a new Owner,
a new Primary Beneficiary or a new Secondary Beneficiary. Any new choise of
Owner, 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 the written request is signed,
whether or not the Owner 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 Contract be returned so these changes may be made.
-9- BP 602341
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PURCHASE PAYMENT PROVISIONS
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FLEXIBLE PURCHASE PAYMENTS
The Contract becomes in force on the Contract Date. The Owner is not required to
continue Purchase Payments in the amount or frequency originally planned. The
Owner 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 Contract 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 a whole dollar amount or whole percentage. However, no less
than $25 per Purchase Payment may be allocated to any Account. The Owner 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: (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 Owner 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 Contract to the General Account:
PLUS:
1. any other Purchase Payments allocated under the Contract to the General
Account;
2. any Transfers from the Separate Account to the General Account; and
3. any interest credited to the General Account.
LESS:
1. any Withdrawals and applicable Withdrawal Charges deducted from the General
Account;
2. any Transfers from the General Account 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.
V6023E (1-98) -10- BP 602351
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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 this
Contract.
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 602351
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CONTRACT VALUE AND EXPENSE PROVISIONS (Continued)
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DETERMINING ACCUMULATION UNITS
The number of Accumulation Units allocated to a Series under this Contract is
found by dividing; (1) the amount allocated to the Series; by (2) the
Accumulation Unit Value for the Series as of the end of the Valuation Period
during which the amount is applied under the Contract. 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 Values
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 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 shares 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 Owner 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 this Contract.
--------------------------------------------------------------------------------
WITHDRAWAL PROVISIONS
--------------------------------------------------------------------------------
WITHDRAWALS
A full or partial Withdrawal of Contract Value is allowed at any time while the
Owner is living. This provision is subject to any federal or state Withdrawal
restrictions.
Upon the Owner's request for a full Withdrawal, the Company will pay the
Withdrawal Value in a lump sum, and the Contract 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 Owner 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.
V6023F (1-98) -12- BP 602361
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WITHDRAWAL PROVISIONS (Continued)
--------------------------------------------------------------------------------
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 Copmany; (2) any Anual Adminsitrative 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 Owner 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 602361
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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 Owner 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 Deduction." 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 a 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 is 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 if 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.
V6023G (1-98) -14- BP 602371
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DEATH BENEFIT PROVISIONS
--------------------------------------------------------------------------------
DEATH BENEFIT
If any Owner 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 an Owner is a Nonnatural
Person, then the Death Benefit will be paid in the event of the death of the
Annuitant or any Joint Owner that is a natural person prior to the Annuity
Commencement Date. Further, if an Owner is a Nonnatural Person, the amount of
the Death Benefit is based on the age of the Annuitant or any Joint Owner that
is a natural person on the Contract Date.
If the age of each Owner 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 any Owner 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 Owner; or
4. any proof accepted by the Company.
DISTRIBUTION RULES
The entire Death Benefit with any interest shall be paid within 5 years after
the death of any Owner, except as provided below. In the event that the
Designated Beneficiary elects an Annuity Option, the length of time for the
payment period may be longer than 5 years if: (1) the Designated Beneficiary is
a natural person; (2) the Death Benefit is paid out under Annuity Options 1
through 8; (3) payments are made over a period that does not exceed the life or
life expectancy of the Designated Beneficiary; and (4) Annuity Payments begin
within one year of the death of the Owner. If the deceased Owner's spouse is the
sole Designated Beneficiary, the spouse shall become the sole Owner of the
Contract. He or she may elect to: (1) keep the Contract in force until the
sooner of the spouse's death or the Annuity Commencement Date; or (2) receive
the Death Benefit.
-15- BP 602371
--------------------------------------------------------------------------------
DEATH BENEFIT PROVISIONS (Continued)
--------------------------------------------------------------------------------
DISTRIBUTION RULES (Continued)
If any Owner dies after the Annuity Commencement Date, Annuity Payments shall
continue to be paid at least as rapidly as under the method of payment being
used as of the date of the Owner's death.
If the Owner is a Nonnatural Person, the distribution rules set forth above
apply in the event of the death of, or a change in, the Annuitant. This Contract
is deemed to incorporate any provision of Section 72(s) of the Internal Revenue
Code of 1986, as amended (the "Code"), or any successor provision. This Contract
is also deemed to incorporate any other provision of the Code deemed necessary
by the Company, in its sole judgment, to qualify this Contract as an annuity.
The application of the distribution rules will be made in accordance with Code
Section 72(s), or any successor provision, as interpreted by the Company in its
sole judgment.
The foregoing distribution rules do not apply to a Contract which is: (1)
provided under a plan described in Code section 401(a); (2) described in Code
section 403(b); (3) an individual retirement annuity or provided under an
individual retirement account or annuity; or (4) otherwise exempt from the Code
Section 72(s) distribution rules.
--------------------------------------------------------------------------------
ANNUITY PAYMENT PROVISIONS
--------------------------------------------------------------------------------
ANNUITY COMMENCEMENT DATE
The Owner 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 oldest Annuitant's sixty-fifth birthday; or (2) the tenth
Contract Anniversary, but in no event later than the oldest Annuitant's 95th
birthday. The Annuity Commencement Date must be prior to the oldest Annuitant's
95th birthday.
The Annuity Commencement Date is the date the first payment will be made to the
Annuitant under any of the Annuity Options.
CHANGE OF ANNUITY COMMENCEMENT DATE
The Owner 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 Owner, 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.
V6023H (1-98) -16- BP 602381
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ANNUITY PAYMENT PROVISIONS (Continued)
--------------------------------------------------------------------------------
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 and 8 will depend on the Annuitant's sex and 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.
Tables A and B assume 1900 as the year of birth of the Annuitant. To use Tables
A and B for an Annuitant 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 an
Annuitant 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 Annuitant." The guaranteed payout rate is then found by
interpolating the Annuitant'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 and sex 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 Owner may choose any form of Annuity
Option that is allowed by the Company. The Owner 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 Owner may change the Annuity Option
chosen. The Owner 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.
-17- BP 602381
--------------------------------------------------------------------------------
ANNUITY PAYMENT PROVISIONS (Continued)
--------------------------------------------------------------------------------
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 on
page 17. 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.
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.
V6023I (1-98) -18- BP 602391
--------------------------------------------------------------------------------
ANNUITY PAYMENT PROVISIONS (Continued)
--------------------------------------------------------------------------------
ANNUITY OPTIONS
OPTION 1 LIFE OPTION: This option provides payments for the life of the
Annuitant. 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 Annuitant. 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 Annuitant dies prior to the end of the period.
If the Annuitant 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 Annuitant 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 Annuitant dies. If the Annuitant 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 Annuitant and Joint Annuitant. 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) 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 amount of the payments will vary as a result of the
investment performance of the Series chosen. If all the
Annuitants die 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 all the Annuitants die 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 the Annuitant 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 primary Annuitant. Payments will be
made to the primary Annuitant as long as he or she is living.
Upon the death of the primary Annuitant, payments will be made to
the contingent Annuitant as long as he or she is living. If the
contingent Annuitant is not living upon the death of the primary
Annuitant, no further payments will be made. Table B shows some
of the guaranteed rates for this option.
-19- BP 602391
ANNUITY TABLES
--------------------------------------------------------------------------------
TABLE A
SETTLEMENT OPTIONS ONE, TWO, AND THREE
MINIMUM MONTHLY INSTALLMENTS PER $1,000 OF AMOUNT APPLIED
Option Two
Adjusted Age Option One Life with Fixed Period Option Three
of Annuitant Life Only 5 10 15 20 Unit Refund
--------------------------------------------------------------------------------
MALE
55 4.70 4.68 4.62 4.53 4.39 4.42
56 4.80 4.78 4.72 4.61 4.45 4.50
57 4.91 4.89 4.82 4.69 4.51 4.58
58 5.03 5.00 4.92 4.78 4.58 4.67
59 5.15 5.12 5.03 4.87 4.64 4.76
60 5.28 5.25 5.14 4.96 4.71 4.86
61 5.42 5.39 5.26 5.06 4.78 4.96
62 5.57 5.53 5.39 5.16 4.84 5.07
63 5.74 5.69 5.52 5.26 4.90 5.19
64 5.91 5.85 5.66 5.36 4.96 5.30
65 6.10 6.03 5.81 5.46 5.02 5.43
66 6.29 6.21 5.96 5.56 5.08 5.56
67 6.50 6.41 6.11 5.66 5.13 5.70
68 6.73 6.62 6.28 5.76 5.18 5.85
69 6.97 6.84 6.44 5.86 5.23 6.00
70 7.23 7.07 6.61 5.96 5.27 6.16
71 7.51 7.32 6.78 6.05 5.31 6.33
72 7.80 7.58 6.96 6.14 5.34 6.51
73 8.12 7.85 7.14 6.23 5.37 6.70
74 8.45 8.14 7.32 6.31 5.40 6.90
75 8.82 8.44 7.49 6.38 5.42 7.11
FEMALE
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.
V6023J (1-98) -20- BP 6023A1
ANNUITY TABLES (continued)
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TABLE B
SETTLEMENT OPTIONS FOUR AND EIGHT
MINIMUM MONTHLY INSTALLMENTS PER $1,000 OF AMOUNT APPLIED
ADJUSTED AGE OF ADJUSTED AGE OF MALE ANNUITANT
FEMALE ANNUITANT 55 60 62 65 70 75
--------------------------------------------------------------------------------
55 3.64 3.73 3.77 3.81 3.86 3.90
60 3.80 3.95 4.01 4.03 4.18 4.25
62 3.86 4.04 4.11 4.20 4.33 4.42
65 3.95 4.17 4.26 4.38 4.56 4.70
70 4.07 4.37 4.50 4.69 4.99 5.25
75 4.16 4.53 4.70 4.97 5.44 5.88
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 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 YEARS 7 YEARS 10 YEARS 15 YEARS 20 YEARS
--------------------------------------------------------------------------------
FIXED ANNUITY PAYMENT 17.91 13.16 9.61 6.87 5.51
VARIABLE ANNUITY PAYMENT 18.91 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.
-21- BP 6023A1
A BRIEF DESCRIPTION OF THIS CONTRACT
This is a FLEXIBLE PREMIUM DEFERRED VARIABLE ANNUITY CONTRACT.
*Purchase Payments may be made until the earlier of the Annuity Commencement
Date or termination of the Contract.
*A Death Benefit may be paid prior to the Annuity Commencement Date according
to the Contract provisions.
*Annuity Payments begin on the Annuity Commencement Date using the method as
specified in this Contract.
*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 602314
