XXXXXXX XXXXX LIFE INSURANCE COMPANY
Home Office: Little Rock, Arkansas
Service Center: P.O. Box 44222
Jacksonville, Florida 32231-4222
XXXXXXX XXXXX LIFE INSURANCE COMPANY will make periodic annuity payments for the
life of the Annuitant or as otherwise provided in this Contract. Payments will
be made to the Owner starting on the Annuity Date.
This is a legal Contract between you and US. PLEASE READ THE CONTRACT CAREFULLY.
EXCEPT FOR FIXED ANNUITY PAYMENTS, VALUES PROVIDED BY THIS CONTRACT ARE BASED ON
THE INVESTMENT EXPERIENCE OF THE SEPARATE ACCOUNT, ARE VARIABLE AND ARE NOT
GUARANTEED AS TO FIXED-DOLLAR AMOUNT.
TEN DAY RIGHT TO REVIEW CONTRACT: You may cancel this Contract within ten days
after you receive it. Simply return or mail it to us or your Financial
Consultant. We will refund the greater of the Contract Value or all of your
Premiums.
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TABLE OF CONTENTS
SECTION PAGE
Definitions................................................................ 2
Contract Schedule.......................................................... 3
1. General Provisions..................................................... 4
2. Premiums............................................................... 6
3. The Separate Account................................................... 6
4. Charges and Deductions................................................. 7
5. Transfers.............................................................. 8
6. Withdrawals............................................................ 8
7. Payment at Death....................................................... 9
8. Annuity Provisions..................................................... 10
9. Annuity Options........................................................ 11
10. Annuity Option Tables.................................................. 12
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Xxxxxxx Xxxxx Life Insurance Company is a stock life insurance company.
President Secretary
Individual Variable Annuity Contract
Flexible Premiums -- Nonparticipating
DEFINITIONS
1. ACCUMULATION UNIT: A unit of measure used to compute the value of your
interest in a subaccount of the Separate Account prior to the Annuity Date.
2. ANNUITANT: Annuity payments may depend upon the continuation of a person's
life. That person is called the Annuitant.
3. ANNUITY DATE: The date on which annuity payments are scheduled to begin.
4. ATTAINED AGE: The age of a person on the Contract Date plus the number of
full contract years since the Contract Date.
5. BENEFICIARY: The person(s) designated by you to receive payment upon the
death of an Owner prior to the Annuity Date.
6. COMPANY: Xxxxxxx Xxxxx Life Insurance Company. Also referred to as "we" or
"us."
7. CONTRACT ANNIVERSARY: The yearly anniversary of the Contract Date.
8. CONTRACT DATE: The effective date of the Contract as shown on the Contract
Schedule. This is usually the business day we receive your initial premium
at our Service Center.
9. CONTRACT VALUE: The value of your interest in the Separate Account.
10. CONTRACT YEAR: The period from the Contract Date to the first Contract
Anniversary, and thereafter, the period from one Contract Anniversary to
the next Contract Anniversary.
11. DUE PROOF OF DEATH: A certified copy of the death certificate, Beneficiary
Statement and any additional paperwork necessary to process a death claim.
12. FUND: An investment portfolio of an open-end management investment company
or unit investment trust in which a subaccount invests.
13. INDIVIDUAL RETIREMENT ACCOUNT OR ANNUITY ("IRA"): A retirement arrangement
meeting the requirements of Section 408 of the Internal Revenue Code.
14. NONQUALIFIED CONTRACT: A retirement arrangement plan other than a qualified
plan described under Section 401, 403, 408, 457 or any similar provisions
of the Internal Revenue Code.
15. OWNER: The person or persons entitled to exercise all rights under the
Contract. In this Contract, "you" means Owner.
16. PREMIUMS: The money you pay into this Contract.
17. SEPARATE ACCOUNT: This Contract is funded by a separate account of the
Company. The separate account has multiple subaccounts, which invest
in shares or units of an underlying Fund. The separate account and the
subaccounts currently available with this Contract are identified in
the Contract Schedule.
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CONTRACT SCHEDULE
Xxxxxxx Xxxxx Life Insurance Company Contract Number: [J001234567]
Service Center: Contract Date: [April 1, 2000]
P.O. Box 44222 Issue Date: [April 5, 2000]
Jacksonville, FL 32231-4222 Financial Consultant:
0-000-000-0000 [XXXXXX X. AGENT]
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OWNER INFORMATION ANNUITANT INFORMATION
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Name: [XXXX X. XXX] Name: [XXXX X. XXX]
Age: [55] Age: [55] Sex: [M]
Co-Owner: [XXXX X. XXX] Co-Annuitant: [XXXX X. XXX]
Co-Owner Age: [55] Age: [55] Sex: [F]
Address: [000 XXX XXXXXX] Annuity Date: [APRIL 1, 2035]
[ANYTOWN, US 01234-0033]
Maximum Owner Age: [90] Maximum Annuitant Age: [90]
Beneficiary: [XXXXXXX X. XXX]
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CONTRACT INFORMATION
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Contract Type: FLEXIBLE PREMIUM INDIVIDUAL VARIABLE ANNUITY
ASSET-BASED INSURANCE CHARGE: [1.59% maximum]
CONTRACT FEE: [$40 at the end of each Contract Year (and on full withdrawal) if
the greater of premiums less withdrawals or Contract Value is
less than $25,000.]
TRANSFER CHARGE: We reserve the right to charge [$25] for each transfer during
a Contract Year in excess of [12.]
INITIAL PREMIUM: [$70,000.] For the first 14 days following the Contract Date
all premiums will be allocated to the [Domestic Money
Market Subaccount.]
MINIMUM ADDITIONAL PREMIUM: [$100]
SEPARATE ACCOUNT: [The Xxxxxxx Xxxxx Life Variable Annuity Separate Account A]
(the "Separate Account")
SUBACCOUNTS AND ALLOCATION AFTER 14 DAYS FOLLOWING THE CONTRACT DATE:
[50% Fund #1] [% Fund #10]
[25% Fund #2] [% Fund #11]
[% Fund #3] [% Fund #12]
[% Fund #4] [% Fund #13]
[25% Fund #5] [% Fund #14]
[% Fund #6] [% Fund #15]
[% Fund #7] [% Fund #16]
[% Fund #8] [% Fund #17]
[% Fund #9] 100% Total
MAXIMUM NUMBER OF SUBACCOUNTS: [10]
MINIMUM TRANSFER AMOUNT: [$100]
MAXIMUM NUMBER OF WITHDRAWALS DURING CONTRACT YEAR: [6]
MINIMUM WITHDRAWAL AMOUNT: [$100]
MINIMUM REMAINING CONTRACT VALUE AFTER WITHDRAWAL: [$5,000]
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3
GENERAL PROVISIONS
1.1. BENEFICIARY: The beneficiary is shown in the Contract Schedule. You may
change the beneficiary while you are alive.
You may name a beneficiary irrevocably. If you do so, you can later change
the beneficiary only with the beneficiary's written consent.
If a beneficiary does not survive you, the estate or heirs of such
beneficiary have no rights under this Contract. However, if a beneficiary
survives you but dies before the Contract Value is distributed, the estate
or heirs of such beneficiary are entitled to the death benefit that would
otherwise have been paid to such beneficiary. If no beneficiary survives
you, payment of the death benefit will be made to your estate.
1.2 OWNERSHIP OF CONTRACT: Unless another Owner is named by the purchaser, the
purchaser is the Owner. Upon notice to us you may assign the Contract to a
new Owner. The assignment terminates all prior beneficiary designations.
When the Contract is issued or the Owner is changed, the maximum age of the
Owner (or older co-owner, if applicable) must be less than the Maximum
Owner Age shown in the Contract Schedule.
Only spouses may be co-owners. The beneficiary of the co-owner spouses must
be the surviving spouse. Ownership rights must be exercised by the
co-owners jointly. Co-owners are deemed to be joint tenants with right of
survivorship unless they indicate otherwise.
1.3 ANNUITANT: When an annuity option is elected, the amount payable as of the
Annuity Date is based on the age (and sex, where permissible) of the
Annuitant, the annuity option selected, and the Contract Value.
The Annuitant may be changed at any time prior to the Annuity Date. A
change of Annuitant by a non-natural owner will be treated as the death of
an Owner (see Section 7.1). When the Contract is issued or a new Annuitant
is named, the maximum age of the Annuitant (or the older Co-annuitant, if
applicable) must be less than the Maximum Annuitant Age shown in the
Contract Schedule.
1.4 NOTICES, CHANGES AND CHOICES: To be effective, all notices, changes and
choices you may make under this Contract must be in writing, signed and
received by us at our Service Center, except that transfers and premium
allocations may be made by telephone by you or your representative if
authorized by you in writing. If acceptable to us, notices, changes, and
choices relating to beneficiaries, ownership, Annuitants, and Annuity Date
will take effect as of the date signed unless we have already acted in
reliance on the prior status. We are not responsible for their validity.
1.5 RESTRICTIONS ON IRAS: If this Contract is issued as or as part of an IRA,
it may not be assigned, pledged, or transferred unless permitted by law.
1.6 MISSTATEMENT OF AGE OR SEX: If the age of the Owner (or co-owner, if
applicable) is misstated, any death benefit payable under this Contract
will be adjusted to reflect the correct age.
If the age or sex of the Annuitant (or co-annuitant, if applicable) is
misstated, annuity payments will be adjusted to reflect the correct age
and sex. Any amount we have overpaid as the result of such misstatement
will be deducted from the next payments made by us under this Contract.
Interest on the overpayment will be charged at the rate of 6% per year.
Any amount we have underpaid will be paid in full with the next payment
made by us under this Contract. We will pay interest on the underpayment
at the rate of 6% per year.
1.7 PROOF OF AGE, SEX, OR SURVIVAL: We may require satisfactory proof of age,
sex, or survival of any person on whose continued life any payment under
this Contract depends.
1.8 INCONTESTABILITY: We will not contest this Contract.
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1.9 THE CONTRACT: This Contract, and any endorsements or riders are the entire
Contract. It is issued in consideration of the payment of the initial
Premium.
Only our President, a Vice President, Secretary, or Assistant Secretary may
change the Contract. Any change must be in writing.
At any time we may make such changes in this Contract as are required to
make it conform with any law, regulation, or ruling issued by a government
agency.
1.10 NONPARTICIPATING: This Contract is nonparticipating. It does not share in
our surplus.
1.11 DATES: Contract years and anniversaries are measured from the Contract
Date.
1.12 CONTRACT PAYMENTS: All sums payable to or by us are payable at our Service
Center. We may require return of this Contract prior to making payment.
Paid-up annuity benefits, Contract withdrawal values and death benefits
will not be less than the minimum required by the laws of the state in
which the Contract is delivered.
1.13 PROTECTION OF PROCEEDS: Payments under this Contract may not be assigned by
the payee prior to their due dates. To the extent allowed by law, payments
are not subject to legal process for debts of a payee.
1.14 PERIODIC REPORTS: At least once a year prior to the Annuity Date we will
furnish you with a report for your Contract. It will show the current
number of Accumulation Units, the value per Accumulation Unit and the
Contract Value.
1.15 PAYMENTS UNDER THE CONTRACT: Payment generally will be made within seven
days of our receipt of a completed request, but we may defer payment if:
(a) The New York Stock Exchange is closed;
(b) Trading on the New York Stock Exchange is restricted;
(c) An emergency exists such that it is not reasonably practical to
dispose of securities in the Separate Account or to determine the
value of its assets;
(d) The Securities and Exchange Commission by order so permits for the
protection of security holders; or
(e) Payment is derived from a check used to pay a Premium which has not
cleared through the banking system.
Conditions (b), (c) and (d) will be decided by or in accordance with rules
of the Securities and Exchange Commission. Transfers also may be deferred
upon the occurrence of any of the events described above.
1.16 TAX QUALIFICATION: This Contract is intended to qualify as an annuity
contract for federal income tax purposes. To that end, the provisions of
this Contract are to be interpreted to ensure or maintain such tax
qualification, notwithstanding any other provision to the contrary.
Distributions under this Contract shall be made in a time and manner
necessary to maintain such qualification under the applicable provisions of
the Internal Revenue Code including, in the case of an owner who is a
non-natural person, the requirement to distribute the entire interest in
the Contract upon any change of the Annuitant. For this purpose, the entire
interest in the Contract is the Contract Value less any Contract Fee under
Section 4.1. We reserve the right to amend this Contract to reflect any
clarifications that may be needed or are appropriate to maintain such
qualification or to conform this Contract to any applicable changes in the
tax qualification requirements.
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2. PREMIUMS
2.1 ADDITIONAL PREMIUMS: The minimum additional Premium is shown on the
Contract Schedule. Premiums may be paid at any time prior to the Annuity
Date without prior notice to us. We reserve the right to refuse to accept a
Premium.
2.2 PREMIUM ALLOCATION: Your Premiums will be allocated to the subaccounts of
the Separate Account as you direct, as shown in the Contract Schedule.
However, for the first 14 days following the Contract Date, all Premiums
will be allocated to the subaccount shown under Initial Premium in the
Contract Schedule. If you do not give us allocation instructions with
subsequent Premiums, we will allocate those Premiums according to the
allocation instructions last received from you.
3. THE SEPARATE ACCOUNT
3.1 THE SEPARATE ACCOUNT: The Separate Account is identified in the
Contract Schedule. It is a separate investment account of Xxxxxxx
Xxxxx Life Insurance Company. With respect to the Separate Account, income,
gains, and losses, whether or not realized, from assets allocated to the
Separate Account are credited to or charged against the Separate Account
without regard to other income, gains, or losses of the Company. Assets
allocated to the Separate Account remain our property but are separate from
our general account and any other separate accounts we may have. Separate
Account assets, to the extent equal to the Separate Account's reserves and
other liabilities, may not be charged with liabilities from any other
business we conduct. We reserve the right to transfer any excess to our
general account.
3.2 SUBACCOUNTS: Current subaccounts are shown in the Contract Schedule. We
reserve the right to limit the number of subaccounts in which you may
invest to the number shown in the Contract Schedule.
3.3 CHANGES TO THE SEPARATE ACCOUNT: We may make additional subaccounts
available. We reserve the right, subject to obtaining any necessary
regulatory approvals, to eliminate subaccounts; to substitute a new
portfolio for the portfolio in which a subaccount invests; to deregister
the Separate Account under the Investment Company Act of 1940 (the "1940
Act"); to make any changes required by the 1940 Act; to operate the
Separate Account as a managed investment company under the 1940 Act or any
other form permitted by law; to transfer all or a portion of the assets of
a subaccount or Separate Account to another subaccount or Separate Account
pursuant to a combination or otherwise; and to create a new Separate
Account.
3.4 NUMBER OF ACCUMULATION UNITS: For each subaccount the number of your
Accumulation Units is the sum of:
Each Premium or transfer allocated to the subaccount
Divided by
The value of an Accumulation Unit for that subaccount for the
valuation period in which we received the Premium or transfer.
The number will be adjusted for transfers from each subaccount, withdrawals
and charges. Adjustments will be made as of the valuation period in which
the transaction is effective.
3.5 VALUE OF EACH ACCUMULATION UNIT: For each subaccount, the value of an
Accumulation Unit was arbitrarily set at $10 when the subaccount was
established. The value may increase or decrease from one valuation period
to the next. For any valuation period the value is:
The value of an Accumulation Unit for the last prior valuation period
Multiplied by
The Net Investment Factor for that subaccount for the current
valuation period.
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3.6 NET INVESTMENT FACTOR: This is an index used to measure the investment
performance of a subaccount from one valuation period to the next. For any
subaccount, we determine the Net Investment Factor by dividing the value of
the assets of the subaccount for that valuation period by the value of the
assets of the subaccount for the preceding valuation period. We subtract
from that result the daily equivalent of the asset-based insurance charge
for the valuation period. We also take reinvestment of dividends and
capital gains into account when we determine the Net Investment Factor.
We may adjust the Net Investment Factor to make provision for any change in
tax law that requires us to pay tax on earnings in the Separate Account and
any charge that may be assessed against the Separate Account for
assessments or federal premium taxes or federal, state or local excise,
profits or income taxes measured by or attributable to the receipt of
Premiums.
3.7 VALUATION PERIOD: This is the interval from one determination of the net
asset value of a subaccount to the next. Net asset values are determined as
of the close of business on each day the New York Stock Exchange is open.
4. CHARGES AND DEDUCTIONS
4.1 CONTRACT FEE: A Contract Fee may be deducted from the Contract Value on
each Contract anniversary that occurs on or prior to the Annuity Date. It
may also be deducted upon a full withdrawal of the Contract Value if it is
not withdrawn on a Contract anniversary. The amount of the Contract Fee and
circumstances under which it will be imposed are shown in the Contract
Schedule. This charge will never increase.
4.2 ASSET-BASED INSURANCE CHARGE: This charge is made to compensate us for our
expenses for administration of the Separate Account, for issue and
administration of the Contract, for providing a guaranteed minimum death
benefit, and our risks. The maximum charge equals, on an annual basis, the
percentage shown in the Contract Schedule. The asset-based insurance charge
is deducted daily from the net asset value of the subaccount.
4.3 TAXES, FEES AND ASSESSMENTS: Any charges made by us attributable to premium
taxes imposed by a state or other government will be deducted at the
Annuity Date, except in those jurisdictions that do not allow us to reduce
our current taxable premium income by the amount of any withdrawal or death
benefit. In those jurisdictions, we will also deduct a charge for those
taxes on any withdrawal or death benefit paid under the Contract. We may
also deduct a charge for assessments or federal premium taxes or federal,
state, or local excise, profits, or income taxes measured by or
attributable to the receipt of Premiums. We also reserve the right to
deduct from the Separate Account any taxes imposed on the Separate Account.
4.4 PAYMENT OF DEDUCTIONS: The asset-based insurance charge will be computed
and deducted from each subaccount for each day the Contract is in force.
The transfer charge described in Section 5.1 will be deducted pro rata from
the subaccounts from which Contract Value is being transferred. Other
applicable charges will be deducted from each subaccount of the Separate
Account in the ratio of your interest in each subaccount to your Contract
Value.
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5. TRANSFERS
5.1 TRANSFERS AMONG SUBACCOUNTS: You may transfer all or part of your Contract
Value among the subaccounts. The number of transfers allowed each contract
year without charge is shown in the Contract Schedule. We reserve the right
to charge for each additional transfer as shown in the Contract Schedule.
The minimum amount which may be transferred from any subaccount in any
transaction is shown in the Contract Schedule.
An excessive number of transfers, including short-term "market timing"
transfers, may adversely affect the performance of the underlying portfolio
in which a subaccount invests. If, in our sole opinion, a pattern of an
excessive number of transfers develops for a Contract, we reserve the right
not to process a transfer request. We also reserve the right not to process
a transfer request when the sale or purchase of shares or units of an
underlying portfolio is not reasonably practicable due to actions taken or
limitations imposed by the underlying fund.
6. WITHDRAWALS
6.1 WITHDRAWALS: You may withdraw all or part of your Contract Value. Notice
must be received by us prior to the Annuity Date. The maximum number of
withdrawals permitted each contract year is shown in the Contract Schedule.
The minimum amount of each withdrawal, and the Contract Value that must be
remaining after a withdrawal, are shown in the Contract Schedule. For a
full withdrawal, this contract must be surrendered to our Service Center.
6.2 PAYMENT OF WITHDRAWALS: Unless you notify us otherwise, partial withdrawals
will be deducted from each subaccount in the ratio of your Contract Value
in each subaccount to the Contract Value. Withdrawals will be based on
values for the valuation period in which the notice (and Contract if
required) is received at our Service Center.
7. PAYMENT AT DEATH
7.1 DEATH OF OWNER
(including an Annuitant who is also an Owner)
7.1.1 DEATH PRIOR TO ANNUITY DATE: If an Owner dies prior to the Annuity Date,
we will pay the beneficiary the death benefit specified below, in a lump
sum, or if requested, under an annuity option under Section 7.1.4. If the
Owner is a non-natural person, then the Annuitant, rather than the Owner
will be used to determine the death benefit. The death benefit is
determined as of the date we receive due proof of the Owner's death at our
Service Center.
(a) If the Owner is age 80 or over on the Contract Date, the death benefit
is the greater of:
(i) the premiums paid into the Contract less "adjusted" withdrawals
from the Contract; or
(ii) the Contract Value.
Each "adjusted" withdrawal equals the amount withdrawn multiplied by
(i) divided by (ii) (both determined immediately prior to the
withdrawal).
(b) If the Owner is under age 80 on the Contract Date, the death benefit
is the greatest of:
(i) the premiums paid into the Contract less "adjusted" withdrawals
from the Contract;
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(ii) the Contract Value; or
(iii) the Maximum Anniversary Value.
Each "adjusted" withdrawal equals the amount withdrawn multiplied by
the greater of (i) and (iii) divided by (ii) (all of which are
determined immediately prior to the withdrawal).
7.1.2 MAXIMUM ANNIVERSARY VALUE: The Maximum Anniversary Value is equal to the
greatest anniversary value for the Contract. An anniversary value is
equal to the Contract Value on a Contract Anniversary increased by
premium payments and decreased by "adjusted" withdrawals, as defined in
Section 7.1.1(b), since that anniversary.
To determine the Maximum Anniversary Value, we will calculate an
anniversary value for each Contract Anniversary through the earlier of
your attained age 80 or the anniversary on or prior to your date of
death. If the Contract has co-owners, we will calculate the anniversary
value through the earlier of the older Owner's attained age 80 or the
anniversary on or prior to any Owner's date of death if a death benefit
is payable.
We will calculate the Maximum Anniversary Value based on your age (or the
age of the older Owner, if the Contract has co-owners) on the Contract
Date. Subsequent changes in Owner will not increase the period of time
used to determine the Maximum Anniversary Value. If a new Owner has not
reached attained age 80 and is older than the Owner whose age is being
used to determine the Maximum Anniversary Value at the time of the
ownership change, the period of time used in the calculation of the
Maximum Anniversary Value will be based on the age of the new Owner at
the time of the ownership change. If at the time of an ownership change
the new Owner is attained age 80 or over, we will use the Maximum
Anniversary Value as of the anniversary on or prior to the ownership
change, increased by premium payments and decreased by "adjusted"
withdrawals as defined in Section 7.1.1(b), since that anniversary.
If we have not received the beneficiary's instructions for making payment
within 60 days following our receipt of the Owner's certified death
certificate, due proof of death will be deemed to have been received by
us on the 60th day, and payment will be made in a lump sum.
7.1.3 CONTRACT CONTINUATION OPTION: If the surviving spouse of the deceased
Owner is the beneficiary, such spouse may choose to continue this
Contract. The spouse shall become the "new" owner and the beneficiary
until a new beneficiary is named. If the death benefit which would have
been paid to the surviving spouse is greater than the Contract Value as
of the date we determine the death benefit, we will increase the Contract
Value of the continued Contract to equal the death benefit we would have
paid to the surviving spouse. Your interest in each subaccount will be
increased by the ratio of your Contract Value in each subaccount to your
Contract Value.
7.1.4 ANNUITY OPTION: If the beneficiary is the surviving spouse of the
deceased Owner, he or she may choose to receive payments under any of the
annuity options of this Contract. For any other beneficiary, only those
options are available that provide for full payment of such Owner's
interest in the Contract:
(a) Within five years of the date of such Owner's death;
(b) Over the lifetime of such beneficiary of this Contract; or
(c) Over a period that does not exceed the life expectancy, as defined
by Internal Revenue Service regulations, of such beneficiary of
this Contract.
Subparagraphs (b) and (c) apply only to individuals, and such payments
must start within one year of the date of such Owner's death. For IRAs,
any annuity option chosen must meet the requirements of the Internal
Revenue Code.
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7.1.5 DEATH AFTER ANNUITY DATE: See Section 9.
7.2 DEATH OF ANNUITANT WHO IS NOT AN OWNER
7.2.1 If the Annuitant dies prior to the Annuity Date and the Annuitant is not
the Owner, the Owner, provided the Owner is a natural person, may
designate a new Annuitant. If one is not designated, the Owner will
become the Annuitant. If the Owner is a non-natural person, the death of
the Annuitant shall be treated as the death of the Owner.
8. ANNUITY PROVISIONS
8.1 ANNUITY DATE: The Annuity Date may not be later than the date the
Annuitant would reach the Maximum Annuitant Age shown in the Contract
Schedule. If you have not chosen an Annuity Date, it will be the date the
Annuitant would reach the Maximum Annuitant Age shown in the Contract
Schedule. For an IRA, if you have not chosen an Annuity Date, it will be
the date the Annuitant reaches age 70 1/2. You may change the Annuity
Date prior to the Annuity Date.
8.2 AMOUNT OF ANNUITY PAYMENTS: Charges made by us for premium taxes will be
deducted from your Contract Value at the Annuity Date. The remaining
value will be transferred to our general account and applied to the
annuity option you selected, at our then current annuity purchase rates,
which will be furnished on request. The annuity purchase rates will
assume interest of not less than 3%. They will not be less favorable than
those shown in the annuity tables in this Contract. The tables show the
minimum guaranteed amount of each monthly payment for each $1,000 so
applied, according to the sex (where permissible) and age at the Annuity
Date of the Annuitant. The tables are based on the 1983 Table "a" with
interest at 3%.
8.3 ANNUITY OPTIONS: If you have not chosen an annuity option described in
Section 9, Option 4 will apply with a 10-year guarantee period. You may
change options prior to the Annuity Date. An option not set forth in the
Contract may be chosen if acceptable to us.
8.4 MINIMUM ANNUITY PAYMENT: If the Contract Value to be applied at the
Annuity Date is less than $5,000, we may pay such amount in a lump sum.
If any payment would be less than $50, we may change the frequency so
payments are at least $50 each.
9. ANNUITY OPTIONS
9.1 OPTION 1--PAYMENTS OF A FIXED AMOUNT: Equal payments in the amount chosen
will be made until the amount of your Contract Value transferred to our
general account adjusted for interest credited of at least 3% is
exhausted. The term over which such payments are made must be at least
five years.
9.2 OPTION 2--PAYMENTS FOR A FIXED PERIOD: Payments will be made for the
period chosen. The period must be at least 5 years.
9.3 OPTION 3--LIFE ANNUITY: Payments will be made for the life of the
Annuitant. Payments will cease with the last payment due prior to the
Annuitant's death.
9.4 OPTION 4--LIFE ANNUITY WITH PAYMENTS GUARANTEED FOR 5, 10, 15 OR 20
YEARS: Payments will be made for the guaranteed period chosen (5, 10, 15
or 20 years) and as long thereafter as the Annuitant lives.
9.5 OPTION 5--LIFE ANNUITY WITH GUARANTEED RETURN OF CONTRACT VALUE: Payments
will be made until the sum of the annuity payments equals the amount of
your Contract Value transferred to our general account at the Annuity
Date, and as long thereafter as the Annuitant lives.
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9.6 OPTION 6--JOINT AND SURVIVOR LIFE ANNUITY: Payments will be made during
the lifetimes of the Annuitant and a designated second person. The amount
of such payments will not change by reason of the death of the first
joint Annuitant to die.
9.7 OPTION 7--JOINT AND SURVIVOR LIFE ANNUITY WITH PAYMENTS GUARANTEED FOR 5,
10, 15 OR 20 YEARS: Payments will be made for the guaranteed period
chosen (5, 10, 15 or 20 years) and as long thereafter as either of the
Annuitants lives.
9.8 OPTION 8--IRA: This option is available only for IRAs. Annuity payments
may be based on (a) the life expectancy of the Annuitant, (b) the joint
life expectancy of the Annuitant and his or her spouse, or (c) the life
expectancy of the surviving spouse if the Annuitant dies before the
Annuity Date. Payments will be made annually. Each annual payment will be
equal to the remaining value on that January 1, divided by the applicable
current life expectancy, as defined by Internal Revenue Service
regulations. Each subsequent payment will be made on the anniversary of
the Annuity Date. Interest will be credited at our current rate for this
option. The rate will not be less than 3%. On the death of the measuring
life or lives prior to full distribution of the remaining value, the
remaining value will be paid to the beneficiary in a lump sum.
9.9 DEATH OF ANNUITANT: On the death of the Annuitant while guaranteed
amounts remain unpaid under Option 1, 2, 4, 5 or 7, the Owner may choose
either:
(a) To have payments continue for the amount or period guaranteed; or
(b) To receive the present value of the remaining guaranteed payments
in a lump sum.
If an Owner dies while guaranteed amounts remain unpaid, the present
value may be paid in a lump sum to the beneficiary, if the beneficiary so
elects.
Present values will be computed at the interest rate that was used to
compute the amount of the initial annuity payment.
9.10 PAYMENT: Except for Option 8, monthly payments will be made beginning on
the Annuity Date, but prior to the Annuity Date you may choose a less
frequent payment interval. The amount of each payment on an annual,
semiannual, or quarterly basis will be not less than the monthly payment
computed from the annuity tables in this Contract multiplied by the
appropriate factor.
Annual Semiannual Quarterly
------ ---------- ---------
11.839 5.963 2.993
11
10. ANNUITY OPTION TABLES
MINIMUM GUARANTEED MONTHLY ANNUITY PAYMENT FOR EACH $1,000 APPLIED UNDER
OPTION
OPTION 2 (Payments for a Fixed Period)
----------------------------------------------------------------------------------------------------
Years Each Years Each Years Each Years Each
Payable Payment Payable Payment Payable Payment Payable Payment
----------------------------------------------------------------------------------------------------
5 17.91 9 10.53 13 7.71 17 6.23
6 15.14 10 9.61 14 7.26 18 5.96
7 13.16 11 8.86 15 6.87 19 5.73
8 11.68 12 8.24 16 6.53 20 5.51
----------------------------------------------------------------------------------------------------
OPTION 3 (Life Annuity), OPTION 4 (Life Annuity with 10
or 20 Years Guaranteed) and OPTION 5 (Return of
Contract Value Guaranteed)
------------------------------------------------------------------------------------------------------------------------------------
*Adjusted Life 10 Years 20 Years Return of *Adjusted Life 10 Years 20 Years Return of
Male Age Annuity Guaranteed Guaranteed Contract Value Female Age Annuity Guaranteed Guaranteed Contract Value
------------------------------------------------------------------------------------------------------------------------------------
56 4.42 4.37 4.20 4.21 56 4.12 4.10 4.01 4.00
57 4.51 4.45 4.27 4.28 57 4.20 4.17 4.07 4.06
58 4.60 4.54 4.33 4.35 58 4.28 4.25 4.13 4.13
59 4.70 4.63 4.39 4.43 59 4.36 4.33 4.19 4.20
60 4.80 4.73 4.46 4.51 60 4.45 4.41 4.26 4.27
61 4.92 4.83 4.52 4.60 61 4.55 4.50 4.33 4.35
62 5.04 4.93 4.59 4.68 62 4.65 4.59 4.40 4.43
63 5.17 5.05 4.65 4.78 63 4.76 4.69 4.47 4.52
64 5.30 5.16 4.72 4.88 64 4.87 4.80 4.54 4.61
65 5.45 5.29 4.78 4.98 65 5.00 4.91 4.61 4.70
66 5.61 5.42 4.85 5.09 66 5.13 5.03 4.68 4.80
67 5.77 5.55 4.91 5.20 67 5.27 5.15 4.76 4.91
68 5.95 5.69 4.97 5.32 68 5.42 5.29 4.83 5.02
69 6.14 5.84 5.03 5.45 69 5.58 5.42 4.90 5.14
70 6.34 5.99 5.08 5.58 70 5.75 5.57 4.97 5.27
71 6.55 6.14 5.13 5.72 71 5.94 5.73 5.03 5.40
72 6.78 6.30 5.18 5.86 72 6.14 5.89 5.09 5.54
73 7.02 6.46 5.23 6.02 73 6.36 6.06 5.15 5.69
74 7.28 6.63 5.27 6.18 74 6.60 6.23 5.21 5.85
75 7.55 6.80 5.31 6.34 75 6.86 6.42 5.25 6.02
76 7.84 6.97 5.34 6.52 76 7.13 6.61 5.30 6.20
77 8.16 7.15 5.37 6.71 77 7.43 6.80 5.34 6.39
78 8.49 7.32 5.40 6.90 78 7.75 7.00 5.37 6.59
79 8.85 7.50 5.42 7.11 79 8.10 7.20 5.40 6.80
80 9.24 7.67 5.44 7.32 80 8.47 7.40 5.43 7.02
81 9.65 7.84 5.46 7.55 81 8.87 7.60 5.45 7.26
82 10.09 8.01 5.47 7.79 82 9.31 7.79 5.47 7.51
83 10.55 8.17 5.49 8.04 83 9.79 7.99 5.48 7.77
84 11.05 8.32 5.49 8.31 84 10.31 8.17 5.49 8.05
85 11.58 8.47 5.50 8.59 85 10.87 8.35 5.50 8.36
------------------------------------------------------------------------------------------------------------------------------------
OPTION 6 (JOINT AND SURVIVOR LIFE ANNUITY)
------------------------------------------------------------------------------------------------------------------------------------
*Adjusted *Adjusted Male Age *Adjusted
Female ------------------------------------------------------------------------------------------- Female
Age 50 55 60 65 70 75 80 85 Age
------------------------------------------------------------------------------------------------------------------------------------
50 3.46 3.54 3.60 3.65 3.69 3.71 3.72 3.73 50
55 3.58 3.70 3.80 3.88 3.94 3.98 4.01 4.03 55
60 3.68 3.85 4.00 4.13 4.24 4.32 4.37 4.40 60
65 3.77 3.98 4.20 4.40 4.59 4.73 4.83 4.90 65
70 3.84 4.09 4.38 4.67 4.96 5.21 5.41 5.55 70
75 3.89 4.18 4.52 4.92 5.34 5.74 6.10 6.38 75
80 3.92 4.24 4.63 5.11 5.67 6.26 6.85 7.37 80
85 3.95 4.28 4.71 5.25 5.93 6.72 7.58 8.45 85
------------------------------------------------------------------------------------------------------------------------------------
Information for ages or Annuity Options not shown will be furnished on request.
*"Adjusted age" is the actual age on the Annuity Date reduced by one year for
each 10 full years between January 1, 2000 and the Annuity Date. For example:
ANNUITY DATE ADJUSTED AGE
----------------------------------------------------
Before 2010 Actual age
2010 to 2019 Subtract 1 year from actual age
2020 to 2029 Subtract 2 years from actual age
2030 to 2039 Subtract 3 years from actual age
2040 to 2049 Subtract 4 years from actual age
----------------------------------------------------
12
