(5) Forms of Contract and Riders
TASPVER5.DOC Revision number: 1 version as of: Monday Aug 31
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Contract form number
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PLEASE READ THIS CONTRACT CAREFULLY
This modified single payment variable universal life insurance Contract is a
legal Contract between you ("the owner") and Transamerica Occidental Life
Insurance Company ("we" and "the Company"). If you pay the required payments, we
will pay your beneficiary the net death benefit when the person you are insuring
("the insured") dies prior to the Maturity Date or, if the insured is alive on
the Maturity Date, we will pay the surrender value to the owner on the Maturity
Date. If the Contract is issued with two insureds, net death benefits are
payable at the death of the last surviving insured. There is no death benefit at
the death of the first of the insureds.
THE DEATH BENEFIT AND CONTRACT VALUE, WHEN BASED ON THE INVESTMENT PERFORMANCE
OF THE VARIABLE ACCOUNT, MAY INCREASE OR DECREASE AND ARE NOT GUARANTEED AS TO A
FIXED DOLLAR AMOUNT. PLEASE REFER TO THE VARIABLE ACCOUNT AND "WHAT YOU SHOULD
KNOW ABOUT THE DEATH BENEFIT" SECTIONS FOR ADDITIONAL INFORMATION. WE AGREE TO
PAY THE BENEFITS OF THIS CONTRACT IN ACCORDANCE WITH ITS TERMS.
RIGHT TO CANCEL
We want you to be satisfied with the Contract you have purchased, and we urge
you to examine it closely. If for any reason you are not satisfied, you may
return the Contract to us or an authorized representative within 10 days after
receipt of the Contract. If you return the Contract, it will be void from the
date of issue, and you will receive a refund equal to the total of: 1. the
difference between any payments made, including fees or any other charges, and
the amounts allocated to
the Variable Account;
2. the value of the amounts in the Variable Account on the date the returned
Contract is received at our
Variable Life Service Center; and
3. any fees or other charges imposed on amounts in the Variable Account.
TRANSAMERICA OCCIDENTAL LIFE INSURANCE COMPANY
Home Office: 0000 Xxxxx Xxxxx, Xxx Xxxxxxx, Xxxxxxxxxx 00000
Variable Life Service Center: 000 Xxxxxxx Xxxxxx, X.X. Box 3800, Worcester,
Massachusetts 01653
This is a legal Contract between Transamerica Occidental Life Insurance Company
and the owner. It is issued in consideration of the payment shown on the
specification pages.
MODIFIED SINGLE PAYMENT VARIABLE UNIVERSAL LIFE INSURANCE CONTRACT
NON-PARTICIPATING
Executive Vice President, General Counsel and Corporate Secretary
President and CEO
(to reviewers: To be updated on final draft)
Table of Contents
Specification Pages
Definitions
General Terms
Information about you and the beneficiary What you should know about:
The payments
Your Contract Value
The Variable Account
The Fixed Account
Transfers
Borrowing from your Contract
Surrenders and partial withdrawals
The death benefit
The benefit payment options
Specification
Contract Number: [specimen]
=============================================================================
[First] Insured: [Xxxx Xxx] [First] Insured's Sex: [Male]
[First] Insured's Age: [55] [First] Insured's Underwriting
Class: [Non-smoker]
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[Second Insured:] [Second Insured's Sex:]
[Second Insured's Age:] [Second Insured's Underwriting Class:]
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Date of Issue: [01/01/1999] Contract Plan: Modified Single Payment Variable
Universal Life Insurance Contract
Face Amount: [$318,554] Monthly Processing Date:
[1st of each month]
Owner(s): [Xxxx Xxx] Rider(s): [Guaranteed Death Benefit
Living Benefits]
Beneficiary at Issue: [Xxxx Xxx] Rider[s] Date of Issue: [01/01/99]
---------------------------------------------------------------
Payment: [$50,000]
Maximum Payment: The greater of [$50,000] or [$4,123] times
the current Contract year.
Guaranteed Death Benefit
Payment: [$x]
Guideline Single Payment: [$x]
Guideline Level Payment: [$x]
Final Payment Date: [01/01/1999]
Maturity Date: [01/01/2059]
Initial Payment Allocation:
Variable Sub-Accounts Advisers:
[30% Transamerica VIF Growth Portfolio Transamerica Occidental Life Insurance
Company
20% Alliance VPF Premier Growth Alliance Capital Management L.P.
20% Dreyfus VIF Capital Appreciation The Dreyfus Corporation
20% OCC Accumulation Trust Managed OpCap Advisors
5% Janus Aspen Worldwide Growth Janus Capital Corporation]
Fixed Account
[5%] Initial Interest Rate: [4%]
Specification
[First] Insured: [Xxxx Xxx] Contract Number: [specimen]
[Second Insured:]
==========================================================
Minimum Additional Payment: [$10,000]
Minimum Fixed Account Interest Rate: [4% of value not subject to
Outstanding Loan]
[4% of value securing Outstanding
Loan - not Preferred Loan]
[5 1/2% of value securing
Outstanding Loan - Preferred Loan]
Outstanding Loan Interest Rate: [6%]
Maximum Loan Amount: [90% of the result of the
Contract Value less the surrender charge]
Minimum Loan Amount: [$1,000]
Minimum Balance After Withdrawal: [$10,000]
Free Withdrawal Amount: [10% of Contract Value]
Fees and Deductions: Current Guaranteed
Administration Charge: [0.30%] Annually (1) [0.30%] Annually (1)
Distribution Fee (Contract Years 1-10): [0.40%] Annually (1) [0.40%] Annually (1)
Tax Charge (Contract Years 1-10): [0.20%] Annually (1) [0.20%] Annually (1)
Insurance Protection Charge: [0.50%] Annually (1) See Page x
Mortality & Expense Risk Charge: [0.80%] Annually (2) [0.80%] Annually (2)
Withdrawal Transaction Fee: [No fee assessed.] [2% of amount withdrawn, not to
exceed $25]
(1) This charge is deducted monthly from the Contract Value on a pro rata
basis. The monthly charge is equal to one-twelfth of this factor
times the Contract Value.
(2) This charge is deducted daily from each sub-account of the Variable
Account on a pro rata basis.
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Surrender Charge Table (Percent of Total Payments Withdrawn)
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Contract Year* Total Surrender Charge
--------------------------- -------------------------------
--------------------------- -------------------------------
[1 9%
--------------------------- -------------------------------
--------------------------- -------------------------------
2 8%
--------------------------- -------------------------------
--------------------------- -------------------------------
3 7%
--------------------------- -------------------------------
--------------------------- -------------------------------
4 6%
--------------------------- -------------------------------
--------------------------- -------------------------------
5 5%
--------------------------- -------------------------------
--------------------------- -------------------------------
6 4%
--------------------------- -------------------------------
--------------------------- -------------------------------
7 3%
--------------------------- -------------------------------
--------------------------- -------------------------------
8 2%
--------------------------- -------------------------------
--------------------------- -------------------------------
9 1%
--------------------------- -------------------------------
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10+ 0%]
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* If your Contract is reinstated, the surrender charge on the date of
reinstatement will be the surrender charge that was in effect on the date of
default. Subsequent surrender charges will be adjusted accordingly.
If you have questions regarding this Contract or need assistance about your
coverage, please call our Variable Life Service Center. The phone number is
[0-(000)-000-0000].
Specification
[First] Insured: [Xxxx Xxx] Contract Number: [specimen]
[Second Insured:]
shapeType20fFlipH0fFlipV0lineWidth38100fShadow0
Guaranteed Maximum Monthly Insurance Protection Rate Table
[Age] Insurance Protection Rate [Age] Insurance Protection Rate
[Age Younger Insured] ($) Per $1,000 [Age Younger Insured] ($) Per $1,000
[55 0.68 85 14.17
56 0.75 86 15.56
57 0.83 87 17.00
58 0.91 88 18.48
59 1.01 89 20.04
60 1.11 90 21.69
61 1.23 91 23.48
62 1.36 92 25.50
63 1.51 93 27.96
64 1.69 94 31.38
65 1.87 95 36.79
66 2.07 96 46.58
67 2.29 97 67.04
68 2.53 98 83.33
69 2.79 99 83.33]
70 3.09
71 3.44
72 3.83
73 4.29
74 4.79
75 5.33
76 5.90
77 6.51
78 7.15
79 7.84
80 8.62
81 9.49
82 10.50
83 11.62
84 12.86
Note: [Single life, Male, Age 55, Non-smoker] Based on 1980 CSO Age Last
Birthday (ALB)Table.
Important Definitions
Age means how old the insured is on his or her last birthday measured on the
date of issue and each Contract anniversary, thereafter.
Application is the form you complete to apply for this Contract. It contains
your payment amount, payment allocation and other information that enable us to
prepare this Contract. If a medical questionnaire or other forms are required,
they become a part of the application. It is signed by you and the insured and
becomes a part of this Contract.
Assignee is a person to whom you transfer ownership of this Contract.
Attained age is the insured's age as of the insured's last birthday at the start
of the Contract year of determination. Attained age is used in the calculation
of the guideline minimum sum insured.
Beneficiary is the person or persons you name to receive the net death benefit
when the Insured dies.
Company means Transamerica Occidental Life Insurance Company, also referred to
as we, our, and us. Our telephone number is [0-000-000-0000].
Contract change means any change in the underwriting class or the addition or
deletion of a rider.
Contract owner is the person who may exercise all rights under the Contract,
with the consent of any irrevocable beneficiary. "You" and "your" refer to the
Contract Owner in this prospectus.
Contract Value is the sum of your values in the Variable Account and the Fixed
Account.
Date of issue is the date coverage under this policy becomes effective and is
stated on the specification pages. Contract months, years and anniversaries are
measured from this date.
Death benefit is the amount payable when the insured dies before the Maturity
Date, before deductions for monthly deductions, any outstanding loan, due and
unpaid partial withdrawals, withdrawal transaction fees and applicable surrender
charges.
Earnings means the amount by which the Contract Value exceeds the sum of the
payments made less any payments that were previously considered withdrawn. For
Contract loan purposes, Earnings are calculated on each monthly processing date.
Evidence of insurability is the information, including medical information, that
we use to decide whether to issue the requested coverage, to determine the
underwriting class for the person insured, or to determine whether the Contract
may be reinstated.
Face amount is the amount of insurance you elect to buy in the application or
enrollment form and which we agree to issue. The face amount is shown in the
specification pages of the Contract. The death benefit is based on the face
amount; see the "What You Should Know About The Death Benefit" section.
Final payment date is the Contract anniversary immediately before the insured's
100th birthday. If there are two insureds, the final payment date is the
Contract anniversary immediately before the younger insured's 100th birthday.
This date is shown on the specification pages. No payments are permitted by you
after this date. No monthly deduction (including insurance protection charges)
will be deducted from the Contract Value after this date. Generally, the net
death benefit after this date will equal 101% of the Contract Value minus any
outstanding loan, except as otherwise provided in a Guaranteed Death Benefit
Rider if attached to this Contract.
Fixed Account is the part of the Company's General Account to which all or a
portion of a payment or transfer may be allocated.
General Account is the assets of the Company that are not allocated to a
Separate Account.
Guideline Minimum Sum Insured is not less than the minimum death benefit
required to qualify the Contract as "life insurance" under federal tax laws. The
guideline minimum sum insured is the product of
the Contract Value TIMES
a percentage based on the insured's attained age.
Guideline single premium is used to determine the face amount under the
Contract.
Internal Revenue Code or Code is the Internal Revenue Code of 1986, as amended,
and rules and regulations.
Insurance protection amount is the death benefit minus the Contract Value.
Insured is the person or persons covered as indicated on the specification
pages. If more than one insured is named, all provisions of this Contract that
are based on the death of the insured will be based on the date of death of the
last survivor of the persons named.
Loan value is the maximum amount you may borrow under the Contract.
Maturity Date is the Contract anniversary immediately before the insured's 115th
birthday. If there are two insureds, the maturity date is the Contract
anniversary immediately before the younger insured's 115th birthday.
Monthly deductions is the amount of money that we deduct from the Contract Value
each month to pay for the Administration Charge, Monthly Insurance Protection
Charge, Distribution Fee and the Tax Charge.
Monthly insurance protection charge is the amount of money that we deduct from
the Contract Value each month to pay for the insurance and any riders.
Monthly processing date is the date the monthly charges are deducted from the
Contract Value. This date is shown on the specification pages. If the Company is
not open on this date, the monthly processing date for that month will be the
next business date.
Net death benefit: Through the final payment date the net death benefit is:
The death benefit; MINUS
Any outstanding loan on the insured's death, rider charges and monthly
deductions due and unpaid through the Contract month in which the insured
dies, as well as any partial withdrawals, withdrawal transaction fees, and
applicable surrender charges.
After the final payment date, except as provided otherwise under a Guaranteed
Death Benefit Rider if attached to this Contract, the net death benefit is:
101% of the Contract Value; MINUS
Any outstanding loan on the insured's death through the Contract month in
which the insured dies and any unpaid partial withdrawals, withdrawal
transaction fees and applicable surrender charges.
Outstanding loan means all unpaid Contract loans plus interest due or accrued on
such loans.
Portfolio is a separate investment series for investment by a sub-account of the
Variable Account.
Pro rata refers to an allocation among the sub-accounts of the Variable Account
and the Fixed Account. A pro rata allocation will be in the same proportion that
the portion of the Contract Value in each sub-account of the Variable Account
and the portion of the Contract Value in the Fixed Account have to the total
Contract Value net of any outstanding loans.
Preferred Loan is the portion of any outstanding loan secured by Earnings.
Preferred Loan Rate is the Minimum Fixed Account Interest Rate shown in the
specification pages regarding the rate that applies to the value securing
Outstanding Loan - Preferred Loan.
Rider is an optional benefit that may be added to your Contract. An additional
charge may be required for a rider.
Second-to-die is a Contract issued as a joint survivorship ("Second-to-Die")
Contract. Life insurance coverage is provided for two insureds, with death
benefits payable at the death of the last surviving insured.
Separate account is a segregated account established by the Company. The assets
are not commingled with the Company's general assets and are not subject to
claims of the Company's creditors.
Specification pages contain information specific to your Contract and are
located after the Table of Contents.
Sub-accounts are subdivisions of the Variable Account investing exclusively in
the shares of one or more portfolios.
Surrender value is the amount payable on a full surrender. It is the Contract
Value less any outstanding loan and surrender charges.
Transamerica is Transamerica Occidental Life Insurance Company. "We", "our",
"us" and "Company" refer to Transamerica in this Contract.
Underwriting class means the insurance risk classification that we assign to the
insured based on the information in the application and any other evidence of
insurability we obtain. The underwriting class affects the monthly insurance
protection charge.
Unit is a measure of your interest in a sub-account.
Variable Account is the Company's Separate Account, consisting of sub-accounts
that invest in the underlying Portfolios.
Variable Life Service Center is the Company's office at 000 Xxxxxxx Xxxxxx, X.X.
Box 3800 Worcester, Massachusetts 01653.
Written request is a signed request you make in written form that is
satisfactory to us and filed at our Variable Life Service Center.
You or your means the owner of this Contract as shown in the application or in
the latest change filed with us.
General Terms
Entire Contract We have issued this Contract in
consideration of the application and your Contract
payment. A copy of the application is attached and
is part of this Contract. This Contract, with a
copy of the application, and any attached Riders,
is the entire Contract between you and us. The
entire Contract also includes:
a copy of any application to change to a
better underwriting class, any new
specification pages, and any supplemental
pages issued.
All statements made by or for the insured will be
considered representations and not warranties. We
will not use any statements made by or for the
insured to deny a claim unless the statement is in
the application and the application is attached to
this Contract when it is issued or delivered. Our
representatives are not permitted to change this
Contract or extend the time for making payments.
Only our President or a Vice President together
with our Secretary may change the provisions of
this Contract, and then only in writing.
Right To Contest The A contest is any action taken by us to cancel your
insurance or deny a claim based on Contract Is Limited untrue or incomplete
answers in your application. Except for fraud or nonpayment of payments, this
Contract will be incontestable after it has been in force during the lifetime of
the insured for two years from the date of issue. This provision does not apply
to any riders providing benefits specifically for disability or death by
accident.
If the underwriting class is changed at your
request, we cannot contest the change after it has
been in force for two years from its effective date
and the insured is alive.
Non-Participating No insurance dividends will be paid on this Contract.
Adjustment Of Interest We determine the Fixed Account interest rates used to
calculate the Contract Value, Rates subject to the guarantees on the
specification pages.
Suicide Exclusion If the insured dies by suicide, while
sane or insane, within two years from the date of
issue, we will be liable only for the total amount
of payments made to us less any outstanding loans
and amounts withdrawn.
Notice Of First To Die If more than one insured is named
on the specification pages, upon the death of the
insured who dies first, the owner agrees to mail
proof of death to the Variable Life Service Center,
within 90 days of the date of death, or as soon
thereafter as is reasonably possible.
(General terms continued)
Misstatement Of Age Or Sex On the date of death of the insured,
the death benefit will be reduced or increased if
the Age or sex is misstated. The adjustment will be
based upon the ratio of the Maximum Payment for
this Contract to the Maximum Payment for the
Contract issued at the correct Age or sex.
No adjustment will be made if:
o The insured dies after the final payment date; or
o The underwriting class is unisex and there has
been a misstatement only of sex.
Protection Of Benefits To the extent allowed by law, the
benefits provided by this Contract cannot be
reached by the beneficiary's creditors. No
beneficiary may assign, transfer, anticipate, or
encumber the Contract Value or benefit unless you
give them this right.
Periodic Report We will mail a report to you at your last known
address at least once a year. This
report will provide the following information:
o Contract Values in each sub-account and in
the Fixed Account;
o the value of the Contract if surrendered;
o payments made by you and charges deducted by
us since the last report;
o the outstanding loan and any other information
required by law; and
o the death benefit.
Information about you and the beneficiary
Owner The insured is the owner of this Contract unless
another person (which could include a trust,
corporation, partnership, etc.) is named as the
owner in the application. The owner may change the
ownership of this Contract without the consent of
any beneficiary except that an irrevocable
beneficiary must agree to the change in writing.
Assignment You may change the ownership of this Contract by sending us a signed
written request. An absolute assignment will transfer ownership of the Contract
from you to another person called the assignee. You may also assign this
Contract as collateral to a collateral assignee. The limitations on your
ownership rights while a collateral assignment is in effect are specified in the
assignment. An assignment will take place only when the signed written request
is recorded at our Variable Life Service Center. When recorded, it will take
effect on the date it was signed by you. Any rights created by the assignment
will be subject to any payments made or actions taken by us before the change is
recorded. We are not responsible for assuring that any assignment or any
assignee's interest is valid.
Beneficiary You name the beneficiary to receive the net death
benefit. The beneficiary's interest will be
affected by any assignment you make. If you assign
this Contract as collateral, all or a portion of
the net death benefit will first be paid to the
collateral assignee; any money left over from the
amount due the assignee will go to those otherwise
entitled.
Your choice of beneficiary may be revocable or
irrevocable. You may change a revocable beneficiary
at any time by written request, but an irrevocable
beneficiary must agree to any change in writing.
You will also need an irrevocable beneficiary's
permission to exercise other rights and options
granted by this Contract. Unless you have asked
otherwise, the beneficiary will be revocable.
Any change of the beneficiary must be made while
the insured is living. This change will take place
on the date the request is signed, even if the
insured is not living on the day we receive it at
the Variable Life Service Center. Any rights
created by the change will be subject to any
payments made, or actions taken, before we receive
the written request. If a beneficiary dies before
the insured, his or her interest in this Contract
will pass to any surviving beneficiaries in
proportion to their share in the net death benefit,
unless you have requested otherwise. If all
beneficiaries die before the insured, the net death
benefit will pass to you or your estate.
Common Disaster Option The common disaster option may be elected and changed
after Contract issue by a signed written request. If the common disaster option
is in effect on the date of the insured's death, the beneficiary must be alive
for a certain number of days following the insured's date of death in order to
be entitled to receive a benefit. Otherwise, we will pay the net death benefit
as though the beneficiary died before the insured. The number of days that the
beneficiary must live after the insured's death is selected by you when you
elect the common disaster option. Unless you elect otherwise by written request,
the common disaster option under the Contract will provide for a 10-day period.
What you should know about the payments
Payments This Contract will not be in force until the Payment shown on the
specification pages is paid to us. Additional payments may be made to us at
any time through the final payment date, but before the date of death of
the insured, subject to the minimum additional payment amount and the
maximum payment amount, shown on the specification pages. A payment
required to keep the Contract in force will not be subject to the minimum
additional payment or maximum payment limitations. Payments must be sent to
our Variable Life Service Center .
If you request it in writing, we will send you a
signed receipt after payment. The payment amount
which must be paid to keep the Contract in force is
described in the Grace Period provision.
We may require evidence of insurability before accepting an additional
payment, if the additional payment would increase the net death benefit.
We may limit the amount you pay us. The sum of all payments made from the
date of issue, minus any partial withdrawals, may not be more than the
greater of: o The guideline single payment, or o The sum of the guideline
level payments on the date of payment.
The guideline payment limits are shown on the
specification pages. These payment limitations will
not apply if they prevent you from paying us enough
to keep the Contract in force.
Guideline payment limits are determined according
to rules in the federal tax law and will be
adjusted as that law changes.
If the payments made exceed the amount allowable
for this Contract to continue to qualify as a life insurance Contract under
Section 7702 of the Internal Revenue Code and the regulations thereunder,
as applicable to this Contract from time to time, we will remove excess
payments made from the Contract, with interest. Such an excess amount could
occur, for example, as a result of a partial withdrawal or other change in
the benefits or terms of the Contract, since such actions may reduce the
guideline payment limits allowable for the Contract. The
portion of the payment that cannot be accepted as
payment will be applied first against any
outstanding Contract loans. We will refund to you
any excess amount (including interest) not later
than 60 days after the end of that Contract year.
The amount refundable will not exceed the surrender
value of the Contract. If the entire surrender
value is refunded, we will treat the transaction as
a full surrender of your Contract.
(What you should know About the Payments continued)
Grace Period This Contract will terminate 62 days after a monthly
processing date on which the surrender value is less than zero. The
62-day period is a grace period. At least 61 days before the end of
the grace period, we will mail the Owner and any Assignee written
notice of the amount of payment that will be required to continue this
Contract in force. The required payment will be no greater than the
amount required to pay the guaranteed monthly deductions for three
months as of the day the grace period began. The Contract will lapse
if the amount shown in the notice remains unpaid at the end of the
grace period. The Contract terminates on the date of lapse. The death
benefit during the grace period will be reduced by any overdue
charges.
Reinstatement If this Contract has lapsed or has been foreclosed for
failure to pay loan interest and has not been surrendered, it may be
restored (called "reinstated" in this Contract) within three years
after the date of default or foreclosure. We will reinstate the
Contract on the monthly processing date following the day we receive
all of the following items: o a written application for reinstatement;
o evidence of insurability satisfactory to us; o a payment sufficient
to cover the cost of all Contract charges that were due and unpaid
during the grace period; o a payment large enough to keep the Contract
in force for three months; and o payment or reinstatement of any loans
against the Contract that existed at the end of the grace period.
Your reinstatement payment will be allocated to the
Fixed Account until we approve your application. At
that time, we will transfer the reinstatement
payment, plus accrued interest, as you directed in
your last payment allocation request.
The Contract Value on the reinstatement date is: the payment to
reinstate the Contract, including the interest earned from the date we
received your payment, plus an amount equal to the Contract Value less
any outstanding loan on the default date; less the monthly deductions
due on the reinstatement date.
The surrender charge on the reinstatement date is the
charge that was in effect on the date of default.
What you should know about your Contract Value
Allocation of New Payments You may allocate the payments to: any of
the sub-accounts which are available at the time the payment is made;
and/or, the Fixed Account.
The Company reserves the right to limit the number
of sub-accounts which are available at one time,
but in no event will this be less than [twenty].
All percentage allocations must be in whole
numbers, with the total allocation to all selected
accounts equaling 100%. Allocations of less than 5%
to a sub-account or to the Fixed Account may only
be made with our consent.
Allocation Of Initial If you make a payment with your application or at any time
before the Contract is Payments approved by us, we may put that payment into the
Fixed Account on the date we receive
it at our Variable Life Service Center. Not later
than two days after the date this Contract is
approved by us, the Contract Value you elected to
allocate to the Variable Account will be
transferred from the Fixed Account to either the
sub-accounts you have elected or to the Money
Market sub-account. In any event, we will transfer
any Variable Account Contract Values from the Money
Market sub-account to the sub-accounts you have
selected not later than the expiration of the
period during which you may exercise your right to
examine this Contract and request a refund of your
payments.
Monthly Deduction Beginning on the date this Contract is
issued and on every monthly processing date through
the final payment date, we will deduct the
following monthly charges pro rata from the
Contract Values:
o Administration Charge;
o Distribution Fee;
o Tax Charge; and
o Insurance Protection Charge.
The amounts of the monthly deductions and their
durations are shown on the specification pages. No
additional monthly deductions will be assessed
following the end of the duration period. Charges
allocated to the Fixed Account will be deducted on
a last-in, first-out basis. This means that we use
the most recent payments to pay the fees.
Administration Charge The Administration Charge compensates us for
the cost of providing administrative services
attributable to this Contract.
Distribution Fee The Distribution Fee compensates us for distribution expenses.
Tax Charge This charge compensates us for certain federal,
state and local taxes we must pay.
Insurance Protection Charge The Insurance Protection Charge
compensates us for the cost of providing a death
benefit in excess of the Contract Value. This
charge will not exceed the guaranteed maximum
insurance protection charge. The guaranteed maximum
insurance protection charge for any Contract month
is equal to (a) times (b), where: (a) is the rate
shown in the Guaranteed Maximum Monthly Insurance
Protection Rate
Table shown on the specification pages, and
(b) is the insurance protection amount divided by
$1,000.
The insurance protection rates actually charged
will never be higher than the guaranteed rates. We
may change the insurance protection rates from time
to time. Any change in the rates for monthly
insurance protection charges will apply to all
Contracts in the same underwriting class, will be
prospective, and will be based on our expectations
as to future cost factors. Such cost factors may
include, but are not limited to: mortality
expenses, interest, and persistency. We will review
the actual insurance protection rates for this
Contract whenever we change these rates for new
Contracts. In any event, rates will be reviewed no
more often than once each year, but not less than
once in a five-year period.
What you should know about the Variable Account
Variable Account The value of your Contract will vary if it is
funded through investments in the sub-accounts of the Variable
Account. This account is separate from our Fixed Account. We have
exclusive and absolute ownership and control of all assets,
including those in the Variable Account. However, the portion of
assets in the Variable Account equal to the reserves and
liabilities of the contracts that are supported by this account
will not be charged with liabilities that arise out of any other
business we conduct.
This Variable Account, which we established to
support variable life insurance Contracts, is
registered with the Securities and Exchange
Commission (SEC) as a unit investment trust under
the Investment Company Act of 1940. The laws of the
State of California also govern it.
This Variable Account has several sub-accounts.
Each sub-account invests its assets in a separate
series of a registered investment company (called a
"portfolio"). We reserve the right, when the law
allows, to change the name of the Variable Account
or any of its sub-accounts. You will find a list in
your application of these sub-accounts in which you
may invest.
Variable Account Contract Value Not later than two days
after the date this Contract is approved for issue by us,
the Contract Value you elected to allocate to the Variable
Account may be transferred from the Fixed Account to either
the sub-accounts you have selected or to the Money Market
sub-account. We will transfer the Variable Account Contract
Values from the Money Market sub-account to the sub-accounts
you have selected not later than the expiration of the
period during which you may exercise your right to examine
this Contract and request a refund of your payments.
Payments made thereafter which are allocated to the
sub-accounts will purchase additional units of the
sub-accounts.
The number of units purchased in each sub-account
is equal to the portion of the net payment
allocated to the sub-account, divided by the value
of the applicable unit as of the valuation date the
payment is received at our Variable Life Service
Center or on the date value is transferred to the
sub-account from another sub-account or the Fixed
Account. If we receive your payment on a date which
is not a valuation date, we will use the value of
the applicable unit on the first valuation date
following the date we receive your payment to
determine the number of units that the payment will
purchase.
The number of units will remained fixed unless:
(1) changed by a subsequent split of unit value, or
(2) reduced because of a transfer, transfer charge,
Contract loan, partial withdrawal, withdrawal
transaction fee, monthly deductions, surrender or
surrender charge allocated to the sub-account.
Variable Account Contract Any transaction described in (2) will result in the
cancellation of the number of Value units which are equal in value to the amount
of the transaction. On each valuation (Continued) date we will value the assets
of each sub-account in which there has been activity.
The value in a sub-account at any time is equal to
the number of units this Contract then has in that
sub-account multiplied by the sub-account's unit
value. The value of a unit for any sub-account for
any valuation period is determined by multiplying
that sub-account's unit value for the immediately
preceding valuation period by the net investment
factor for the valuation period for which the unit
value is being calculated. The unit value will
reflect the investment advisory fee and other
expenses incurred by the registered investment
companies.
Net Investment Factor This measures the investment
performance of a sub-account during the valuation
period that has just ended. The net investment
factor is the result of (a) plus (b), divided by
(c), minus (d) where: (a) is the net asset value
per share of a portfolio share held in the
sub-account
determined at the end of the current valuation period;
(b) is the per share amount of any dividend or
capital gain distributions made by the
portfolio on shares held in the sub-account if
the "ex-dividend" date occurs during the
current valuation period;
(c) is the net asset value per share of a
portfolio share held in the sub-account
determined as of the end of the immediately
preceding valuation period; and
(d) is a charge for mortality and expense risks in
the valuation period.
The current mortality and expense risk charge is
shown on the specification pages. This charge may
be increased or decreased, but will never exceed
the maximum mortality and expense risk charge shown
on the specification pages. Expense and mortality
results may not adversely affect this maximum
charge. Since the net investment factor may be more
or less than one, the unit value may increase or
decrease. You bear the investment risk. We reserve
the right, subject to any required regulatory
approvals, to change the method we use to determine
the net investment factor.
Valuation Dates And Periods A valuation date is each day that
the New York Stock Exchange (NYSE) is open for
business and any other day that there is enough
trading in the Variable Account's underlying
portfolio securities to materially affect the value
of the Variable Account. A valuation period is the
period between valuation dates.
(what you should know about the Variable Account -continued)
Addition, Deletion Or We may not change the investment policy of the Variable
Account without the approval Substitution Of Investments of the Insurance
Commissioner of California. This approval process is on file with the
Commissioner of your state. We reserve the right,
subject to applicable law, to add, delete, or
substitute the shares of a portfolio that are held
by the Variable Account or that the Variable
Account may purchase. We also reserve the right to
eliminate the shares of any portfolio if they are
no longer available for investment, or if we
believe investing more in any portfolio is no
longer appropriate for the purposes of the Variable
Account.
We will notify you before we substitute any of your
shares in the Variable Account.
Reviewer This will not, however, prevent the Variable Account from buying other
shares of Previous version state underlying securities for other series or
classes of contracts or policies, or from contracts and contracts, permitting a
conversion between series or classes of contracts or policies when changed to
contracts and requested by the Contract Owner. We reserve the right to establish
other policies sub-accounts, and to make them available to any class or series
of contracts and
policies as we think appropriate. Each new
sub-account would invest in a new investment
company or in shares of another open-end investment
company. We also reserve the right to eliminate or
combine existing sub-accounts of the Variable
Account and to transfer the assets between
sub-accounts, when allowed by law. If we make any
substitutions or changes that we believe are
necessary or appropriate, we may make changes in
this Contract by written notice to reflect the
substitution or change. If we think it is in the
best interests of our Contract Owners, we may
operate the Variable Account as a management
company under the Investment Company Act of 1940,
or we may de-register it under that Act if
registration is no longer required. We may also
combine it with other separate accounts.
Federal Taxes If we must pay taxes on the Variable Account,
we will charge you for that tax. Although the
Variable Account is currently not taxable, we
reserve the right to charge for taxes if it becomes
taxable.
Splitting Of Units We reserve the right to split the value
of a unit, to either increase or decrease the number of
units. Any splitting of units will have no material effect
on Contract benefits.
What you should know about the Fixed Account
Fixed Account The Fixed Account is a part of our General
Account. The General Account consists of all assets
owned by us, other than those in the Variable
Account and other separate accounts. Except as
limited by law, we have sole control over the
investment of these General Account assets. You do
not share directly in the investment experience of
the General Account, but are allowed to allocate
and transfer funds into the Fixed Account.
Fixed Account Interest The interest rates credited to Contract Value in the
Fixed Account are set by us, but Rates will never be less than the Minimum Fixed
Account Interest Rate shown in the
specification pages. We may establish higher
interest rates, and the initial interest rates and
the renewal interest rates may be different.
Interest rates will be determined as follows:
Payments allocated to the Fixed Account will
be credited at the initial interest rate in
effect on the day we receive your payment at
our Variable Life Service Center, and the
initial interest rate is guaranteed until the
next Contract anniversary unless you borrow
from that Contract Value.
Funds transferred from a sub-account of the
Variable Account to the Fixed Account will be
credited with interest at the initial interest
rate in effect on the valuation date of the
transfer, and the initial interest rate is
guaranteed until the next Contract anniversary
unless you borrow from that Contract Value.
Contract Values in the Fixed Account on the
Contract anniversary will be credited with
interest at the renewal interest rate in
effect on the Contract anniversary for one
year so long as those values remain in the
Fixed Account and are not borrowed.
The interest rate we use for that portion of
the Contract Value that equals the outstanding
loan will be no less than the guaranteed rates
shown on the specification pages. One of the
rates shown is the Preferred Loan Rate, which
applies only to loans qualifying as a
Preferred Loan.
Fixed Account Contract On each monthly processing date, the Contract Value of
the Fixed Account is equal to: Value o the Contract Value in this account on the
preceding monthly processing date
increased by one month's interest; plus
o payments received since the last monthly
processing date that are allocated to the
Fixed Account plus the interest accrued from
the date the payments are received by us; plus
o Variable Account Contract Value transferred to
the Fixed Account from any sub-accounts since
the preceding monthly processing date,
increased by interest from the date the
Contract Value is transferred; minus
o Contract Value transferred from the Fixed
Account to a sub-account since the preceding
Monthly processing date and interest accrued
on these transfers from the transfer date to
the monthly processing date; minus
o partial withdrawals from the Fixed Account,
any withdrawal transaction fees and surrender
charges assessed since the last monthly
processing date, interest accrued on these
withdrawals and charges from the withdrawal
date to the monthly processing date; minus
o the portion of the monthly deductions
allocated to the Contract Value in the Fixed
Account.
During any Contract month the Fixed Account
Contract Value will be calculated on a consistent
basis.
Basis Of Value Of The We base the minimum surrender value in the Fixed Account
on the minimum Fixed Account Fixed Account interest rates and mortality table
shown on the specification pages. Actual Contract Values are based on interest
and insurance protection rates that we set. We have filed a detailed description
of the way we determine this value with the State Insurance Department. All
values equal or exceed the minimums required by law in the state in which this
Contract is delivered.
What You Should Know About While the Contract is in force, you may transfer
amounts between the Fixed Account and Transfers the sub-accounts or among
sub-accounts on request. You may transfer, without charge,
all of the Contract Value in the Variable Account
to the Fixed Account once during the first 24
months after the Contract is issued in order to
convert to a fixed-only product. If you do so,
future payments will be allocated to the Fixed
Account unless you specify otherwise. All other
transfers are subject to the following rules and
will be permitted with our approval. We will
determine the minimum and maximum amounts that may
be transferred according to the rules that are in
effect at the time of the transfer. We also reserve
the right to limit the number of transfers that can
be made in each Contract year and set other
reasonable rules controlling transfers.
If a transfer would reduce the Contract Value in a
sub-account to less than the current minimum
balance required for such accounts, we reserve the
right to include the remaining value in the amount
transferred. You will not be charged for the first
eighteen (18) transfers in a Contract year, but a
transfer charge of up to $25 may be assessed on
each additional transfer. Any transfer charge will
be deducted from the amount that is transferred.
There is no charge for transfers that result from a
Contract loan or repayment of a loan.
What you should know about borrowing from your Contract
To borrow from this Contract, the only collateral
you will need is the Contract itself.
Amount You May Borrow The maximum loan amount is 90% of
the result of Contract Value less surrender
charges. You may borrow an amount subject to the
minimum shown on the specification pages, up to the
maximum loan amount minus any outstanding loan. If
you do not specify from which accounts you want to
borrow, we will allocate the loan pro rata. In
order to secure the outstanding loan, we will
transfer the value in each sub-account equal to the
Contract loan allocated to each sub-account to the
Fixed Account.
Loan Interest You will pay interest on your loan at an annual rate indicated on
the specification pages. Interest accrues daily and is payable at the end of
each Contract year. Any interest that is not paid on time will be added to the
loan principal and bear interest at the same rate. If this makes the principal
higher than the Contract Value in the Fixed Account, we will offset this
shortfall by transferring funds from the sub-accounts to the Fixed Account. We
will allocate the transferred amount among the sub-accounts in the same
proportion that the value in each sub-account has to the total value in all of
them.
Repaying The Outstanding You may repay the outstanding loan at any time before
this Contract lapses and before Loan the maturity date. When you repay it, we
will transfer the Contract Value that is
securing the loan in the Fixed Account to the
various sub-accounts and increase the value in
them. You may tell us how to allocate repayments.
Otherwise, we may allocate them according to the
most recent payment allocation choices you have
made. Loan repayments made to the Variable Account
cannot be higher than the amounts you transferred
to secure the outstanding loan.
Foreclosure If at any time the amount of the outstanding loan
is higher than the Contract Value minus the
surrender charge, we will terminate the Contract.
We will mail a notice of this termination to the
last known address of you and any assignee. If the
excess outstanding loan is not paid within 62 days
after this notice is mailed, the Contract will
terminate with no value. You may reinstate this
Contract in accordance with the Reinstatement
provision.
WHAT YOU SHOULD KNOW ABOUT SURRENDERS AND PARTIAL WITHDRAWALS
Surrender You may cancel this Contract and receive its surrender value as long
as the insured is living on the date we receive your written request at our
Variable Life Service Center. The Contract will be canceled on that day. You may
choose to receive the surrender value in a lump sum or under a benefit option.
The surrender value equals the Contract Value minus the outstanding loan and
surrender charge. You will find the surrender charges on the specification
pages.
Partial Withdrawals You may withdraw part of the surrender
value on written request. Each withdrawal must be
at least $1,000. The withdrawal transaction fee in
effect on the date of issue is shown on the
specification pages. The withdrawal transaction fee
is subject to change, but will never exceed the
guaranteed charge shown on the specification pages.
We will not permit a partial withdrawal if it
reduces the Contract Value amount to less than the
minimum amount shown on the specification pages.
The face amount will be reduced proportionately
based on the ratio of the amount of the partial
withdrawal and charges to the Contract Value on the
date of withdrawal. The Contract Value will be
reduced by the amount of the partial withdrawal,
the withdrawal transaction fee and any applicable
surrender charges.
If you do not allocate a partial withdrawal, its
fee and its charges between the Fixed Account and
each sub-account, we will automatically allocate
them pro rata.
Free Withdrawal Amount The free withdrawal amount will
not be subject to the surrender charge. as
described on the specification pages. The free
withdrawal amount equals (a) minus (b), where: (a)
is the free withdrawal amount shown on the
specification pages, and (b) is the total of the
withdrawals (or portions of them) made in the same
Contract year that were exempt from the surrender
charge.
The free withdrawal amount is first deducted from
earnings. Withdrawals in excess of the free
withdrawal amount are deducted from payments not
previously considered withdrawn on a last-in,
first-out basis. Surrender charges applicable to
the excess withdrawal are described on the
specification pages.
(WHAT YOU SHOULD KNOW ABOUT SURRENDERS AND PARTIAL WITHDRAWALS - continued)
Postponement Of Payment We may postpone any transfer from the
Variable Account, or payment of any amount payable
on:
surrender,
partial withdrawal,
transfer,
Contract loan, or
death of the insured.
The postponement will continue during any period
when:
o trading on the New York Stock Exchange is
restricted as determined by the Securities and
Exchange Commission, or the New York Stock
Exchange is closed for days other than
weekends and holidays, or
o the Securities and Exchange Commission by order
has permitted such suspension, or o the Securities
and Exchange Commission has determined that such an
emergency
exists that disposal of portfolio securities or valuation of assets is not
reasonably practical.
We also may postpone any transfer from the Fixed
Account or payment of any portion of the amount
payable on a surrender, partial withdrawal or
Contract loan from the Fixed Account for not more
than six months from the day we receive your signed
written request and your Contract, if it is
required. If we postpone those payments for 30 days
or more, the amount postponed will earn interest
during that period of not less than 3% per year or
such higher rate as required by law. We will not
postpone premium payments to make payments on our
Policies Contracts.
What you should know about the death benefit
Net Death Benefit If the insured dies before the maturity date and before
the Contract is terminated, we will pay the net death benefit. The net
death benefit is equal to the death benefit reduced by certain amounts, as
described below. The death benefit is determined as of the date we receive
due proof of the insured's death at our Variable Life Service Center. Due
proof of death is a valid death certificate or other evidence satisfactory
to us.
The amount of the net death benefit depends upon:
(1) whether the date the insured dies is after, or
on or before, the final payment date; and, if after
the final payment date, (2) whether the Guaranteed
Death Benefit Rider is in effect at the time of the
insured's death.
If the insured dies on or before the final payment date then the death
benefit is the greater of the face amount or the guideline minimum sum
insured. The net death benefit is determined by deducting from the death
benefit: any outstanding loan and any monthly deductions due and unpaid
through the Contract month in which the insured dies, as well as any
partial withdrawals, withdrawal transaction fees, and applicable surrender
charges.
After the final payment date, except as provided
under a Guaranteed Death Benefit Rider if attached
to this Contract, the net death benefit is:
101% of the Contract Value; minus
Any outstanding loan on the insured's death
through the Contract month in which the
insured dies and any unpaid partial
withdrawals, withdrawal transaction fees and
applicable surrender charges.
If the net death benefit is paid in a lump sum,
interest will be earned at our declared interest
rate for sums held on deposit, but not less than
2.5% per year, beginning on the date we receive
notice of death at our Variable Life Service
Center. We will pay a higher interest rate if
required by state law. We will credit interest from
an earlier date (for example, from the date of the
insured's death) if required by state law.
Guideline Minimum Sum Insured Table
Attained Age Percentage Attained Age Percentage
40 or less 265% 66 134%
41 258% 67 133%
42 251% 68 132%
43 244% 69 131%
44 237% 70 130%
45 230% 71 128%
46 224% 72 126%
47 218% 73 124%
48 212% 74 122%
49 206% 75-85 120%
50 200% 86 118%
51 193% 87 116%
52 186% 88 114%
53 179% 89 112%
54 172% 90 110%
55 165% 91 108%
56 161% 92 106%
57 157% 93 105%
58 153% 94 105%
59 149% 95 105%
60 145% 96 104%
61 143% 97 103%
62 141% 98 102%
63 139% 99 101%
64 137% 000-000 000%
65 135%
Required Minimum Amount of This Contract is intended to qualify under Section
7702 of the Internal Revenue Code Death Benefit as a life insurance Contract for
federal tax purposes. The provisions of this
Contract (including any rider or endorsement)
shall be interpreted to ensure such tax
qualification, regardless of any language to the
contrary.
At no time will the amount of the death benefit
under the Contract ever be less than the amount
needed to ensure such tax qualification. To the
extent that the death benefit is increased,
appropriate adjustments will be made in any
monthly insurance protection charges or
supplemental benefits as of that time,
retroactively or otherwise, that are consistent
with such an increase. Such adjustments may be
made by right of setoff against any death benefits
payable.
This death benefit is calculated by multiplying
the Contract Value by the percentage shown in the
preceding table. The death benefit under this
Contract will not be less than the guideline
minimum sum insured as specified in the tax code.
The guideline minimum sum insured varies by
attained age. The amounts shown in the table are
determined to provide a death benefit at least as
great as those in the federal tax law, and will be
adjusted according to any changes in that law
applicable to this Contract.
What you should know about the benefit payment options
Benefit Options When the insured dies, we will pay the death benefit
in a lump sum unless you or the beneficiary choose a benefit option.
You may choose a benefit option while the insured is living. The
beneficiary may choose a benefit option after the insured has died.
The beneficiary's right to choose will be subject to any settlement
agreement in effect at the insured's death. You may also choose one of
these options as a method of receiving the surrender or maturity
proceeds, if any are available under this Contract. When we receive a
satisfactory signed written request, we will pay the benefit according
to one of these options.
Option A: Installment for a We will pay equal installments for a
guaranteed period of from one to thirty years. Each Guaranteed Period
installment will consist of part benefit and part interest. We will
pay the installments monthly, quarterly, semi-annually or annually, as
requested. See Table A on next page.
Option B: Installments for We will pay equal monthly installments
as long as the payee is living, but we will not Life with a
Guaranteed make payments for less than the guaranteed period the
payee chooses. The guaranteed Period (Table B) period may be
either 10 years or 20 years. We will pay the installments
monthly. See Table B on next page.
Option C: Benefit Deposited We will hold the benefit on deposit. It will earn
interest at the annual interest rate we with Interest are paying as of the date
of death, surrender or maturity. We will not pay less than 2
1/2% annual interest. We will pay the earned
interest monthly, quarterly, semi-annually or
annually, as requested. The payee may withdraw
part or all of the benefit and earned interest at
any time.
Option D: Installments of a We will pay installments of a selected amount until
we have paid the entire benefit and Selected Amount accumulated interest.
Option E: Annuity We will use the benefit as a single
payment to buy an annuity. The annuity may be
payable to one or two payees. It may be payable
for life with or without a guaranteed period, as
requested. The annuity payment will not be less
than what our current annuity Contracts are then
paying.
General The payee may arrange any other method of benefit
as long as we agree to it. The payee must be an
individual receiving payment in his or her own
right. There must be at least $10,000 available
for any option and the amount of each installment
to each payee must be at least $100. If the
benefit amount is not enough to meet these
requirements, we will pay the benefit in a lump
sum.
Xxxxx: The first installment due under any option will be for the
period beginning on the date of Is this any better? death,
maturity or surrender, whichever applies. Any unpaid balance we
hold under Options A, B or D will earn interest at the rate we
are paying at the time of settlement. We will not pay less than
3% annual interest. Any benefit we hold will be combined with our
general assets.
If the payee does not live to receive all
guaranteed payments under Options A, B, C, D or E
or any amount deposited under Option C, plus any
accumulated interest, we will pay the remaining
benefit as scheduled to the payee's estate. The
payee may name and change a successor payee for
any amount we would otherwise pay the payee's
estate.
Table A: Installments for Each $1,000 Payable under Option A
Multiply the Monthly Installment by 11.83895 for annual, by 5.96322 for semi-annual, or by 2.99263 for quarterly
Installments
------------------ ---------------- ----------------- ---------------- ----------------- -----------------
Guaranteed Monthly Guaranteed Monthly Guaranteed Monthly
Period (Years) Installment Period (Years) Installment Period (Years) Installment
------------------ ---------------- ----------------- ---------------- ----------------- -----------------
1 $84.47 11 $8.86 21 $5.32
2 42.86 12 8.24 22 5.15
3 28.99 13 7.71 23 4.99
4 22.06 14 7.26 24 4.84
5 17.91 15 6.87 25 4.71
6 15.14 16 6.53 26 4.59
7 13.16 17 6.23 27 4.48
8 11.68 18 5.96 28 4.37
9 10.53 19 5.73 29 4.27
10 9.61 20 5.51 30 4.18
------------------ ---------------- ----------------- ---------------- ----------------- -----------------
Table B: Monthly Installment for each $1,000 Payable under Option B
------------------- -------------------- ----------------------- ----------------------
Male Payee Female Payee Male Payee Female Payee
------------------- -------------------- ----------------------- ----------------------
---------------------------------------- ----------------------------------------------
Guaranteed Period (Yr.) Guaranteed Period (Yr.)
----------------------------------------------
----------- --------- --------- ---------- --------- ---------
Age 10 Yr. 20 Yr. 10 Yr. 20 Yr. Age 10 Yr. 20 Yr. 10 Yr. 20 Yr.
----------- --------- --------- ---------- --------- --------- ----------- ----------- ----------- ----------
11 $ 2.90 $ 2.89 2.83 2.83 51 $ 4.44 $ 4.26 $ 4.10 4.02
12 2.91 2.91 2.84 2.84 52 4.53 4.32 4.17 4.08
13 2.93 2.92 2.86 2.85 53 4.62 4.39 4.25 4.14
14 2.94 2.94 2.87 2.87 54 4.71 4.46 4.33 4.21
15 2.96 2.96 2.88 2.88 55 4.81 4.52 4.42 4.28
16 2.98 2.97 2.90 2.90 56 4.92 4.59 4.51 4.35
17 3.00 2.99 2.91 2.91 57 5.03 4.66 4.61 4.42
18 3.01 3.01 2.93 2.93 58 5.15 4.73 4.71 4.50
19 3.03 3.03 2.95 2.94 59 5.27 4.80 4.82 4.57
20 3.05 3.05 2.96 2.96 60 5.40 4.87 4.94 4.65
21 3.08 3.07 2.98 2.98 61 5.53 4.94 5.06 4.72
22 3.10 3.09 3.00 2.99 62 5.68 5.00 5.19 4.80
23 3.12 3.11 3.02 3.01 63 5.83 5.07 5.33 4.88
24 3.14 3.14 3.04 3.03 64 5.98 5.13 5.47 4.95
25 3.17 3.16 3.06 3.05 65 6.15 5.18 5.63 5.02
26 3.20 3.19 3.08 3.07 66 6.32 5.24 5.79 5.09
27 3.22 3.21 3.10 3.10 67 6.50 5.28 5.96 5.15
28 3.25 3.24 3.12 3.12 68 6.68 5.33 6.14 5.21
29 3.28 3.27 3.15 3.14 69 6.88 5.36 6.33 5.27
30 3.31 3.30 3.17 3.17 70 7.07 5.40 6.53 5.32
31 3.34 3.33 3.20 3.19 71 7.27 5.42 6.73 5.36
32 3.38 3.36 3.23 3.22 72 7.48 5.45 6.94 5.40
33 3.41 3.39 3.26 3.25 73 7.68 5.46 7.16 5.43
34 3.45 3.43 3.29 3.28 74 7.88 5.48 7.38 5.45
35 3.49 3.46 3.32 3.31 75 8.08 5.49 7.60 5.47
36 3.53 3.50 3.35 3.34 76 8.27 5.50 7.82 5.48
37 3.57 3.54 3.39 3.37 77 8.46 5.50 8.04 5.49
38 3.62 3.58 3.42 3.41 78 8.63 5.51 8.25 5.50
39 3.67 3.62 3.46 3.44 79 8.79 5.51 8.45 5.51
40 3.72 3.67 3.50 3.48 80 8.94 5.51 8.64 5.51
41 3.77 3.71 3.54 3.52 81 9.07 5.51 8.82 5.51
42 3.82 3.76 3.59 3.56 82 9.18 5.51 8.97 5.51
43 3.88 3.81 3.63 3.60 83 9.28 5.51 9.11 5.51
44 3.94 3.86 3.68 3.65 84 9.36 5.51 9.23 5.51
45 4.00 3.91 3.73 3.69 85+ 9.42 5.51 9.32 5.51
--------- ----------- ----------- ----------- ----------
46 4.07 3.97 3.78 3.74 Ages younger than 11 are the same shown for age 11,
and
47 4.14 4.02 3.84 3.79 ages older than 85 are the same as shown for age 85.
48 4.21 4.08 3.90 3.85
49 4.28 4.14 3.96 3.90
50 4.36 4.20 4.03 3.96
----------- --------- --------- ---------- ---------
TRANSAMERICA OCCIDENTAL LIFE INSURANCE COMPANY
OPTION TO ACCELERATE DEATH BENEFITS (LIVING BENEFITS RIDER)
This rider is a part of the Contract to which it is attached. The insured under
this rider is the insured under the Contract. This rider does not apply to any
benefits provided by other riders.
Benefit While this rider is in force, you may elect to
receive a portion of the net death benefit called
the "Living Benefit," prior to the insured's death,
subject to the definitions, conditions and
limitations in this rider. This option may only be
exercised once.
Definitions "Option Amount" means that portion of the death
benefit which you elect to apply under this rider.
The Option Amount must be at least $25,000 and may
not exceed the lesser of:
o one-half of the death benefit on the date
the option is elected; or o the amount that
would reduce the face amount to our minimum
issue limit for
this Contract; or
o $250,000.
"Option Percentage" is the Option Amount divided by the death benefit.
"Living Benefit" is the Option Amount which has been reduced for interest and
other factors. It is the lump sum benefit under this rider, and it is the amount
used to determine the monthly benefit. The Living Benefit will not be less than
the surrender value of the Contract multiplied by the Option Percentage. The
following factors will be used to calculate the Living Benefit:
o age;
o sex, unless the Contract is issued on a unisex basis; o life expectancy;
o Contract Value; o outstanding loan;
o rate of interest currently being credited to the Fixed Account,
including those values which are subject to outstanding loan;
o Face Amount; o current monthly deductions; and o an expense charge of
$150.
An amount equal to the outstanding loan multiplied by the Option Percentage will
be deducted from the Living Benefit. The remaining outstanding loan will
continue in force.
The assumptions we use to calculate the Living Benefit may change from time to
time. The factors used to compute the Living Benefit will be set and changed
only prospectively; that is, based on changes in future expectations. We will
not change these factors to recoup any prior losses or distribute past gains
under the rider.
"Proof of claim" includes:
o a request signed by the insured to disclose all facts concerning the
insured's health; o records of the attending physician, including a
prognosis of the insured's condition; and o if we request, a medical
examination of the insured at our expense conducted by a physician we
choose.
Form xxxx-98
Conditions Upon written request you may elect to receive
payment under the accelerated death benefit option
subject to the following conditions:
o the Contract is in force;
o a written consent has been given by any
collateral assignee, irrevocable beneficiary
and the insured if you are not the insured; and
o the insured qualifies for the option you elect.
Exercising the Option If you provide proof of claim
satisfactory to us that the insured's life
expectancy is 12 months or less, you may elect to
receive equal monthly payments for 12 months. For
each $1,000 of Living Benefit, each payment will be
at least $85.21. This assumes an annual interest
rate of 5%.
If the insured dies before all the payments have
been made, we will pay in one sum the present value
of the remaining payments due under this rider
calculated at the interest rate we use to determine
those payments as part of the net death benefit. If
you do not wish to receive monthly payments, you may
elect to receive the Living Benefit in a lump sum.
Effect On Contract The death benefit of the Contract will
be decreased by the option amount. Such decrease
will be effective on the monthly processing date
following the date of your written request. New
specification pages will be issued. These pages will
include the following information:
o the effective date of the decrease; and o the
amount of the decrease and the reduced face
amount.
The Contract Value will be reduced in the same
proportion as the reduction in the death benefit.
There will be no surrender charge on the reduction
in Contract Value. The allocation of the Contract
Value between earnings and payments will remain the
same.
Exclusion No benefit will be paid under this rider if a claim
results, directly or indirectly, from a suicide
attempt or a self-inflicted injury (while sane or
insane) for any period during which a suicide
exclusion is applicable.
Termination This rider will terminate on the first to occur of:
the date the Living Benefit is paid, or
o the end of the grace period of a payment in
default; or o the termination or maturity of
the Contract while the insured is alive; or o
at any time on your written request.
General The Contract specification pages will show the date of
issue of this rider. The Living Benefit will be made available to
you on a voluntary basis only. Accordingly: (a) If you would be
required by law to exercise this option to satisfy the claim of
creditors, whether in bankruptcy or otherwise, you are not
eligible for this benefit. (b) If you would be required by a
government agency to exercise this option in order to apply for,
obtain, or retain a government benefit or entitlement, you are
not eligible for this benefit.
Except as otherwise provided, all conditions and
provisions of the Contract apply to this rider.
Form xxxx-98
Tax Qualification This rider is intended to provide a qualified
accelerated death benefit that is excluded from gross income for
federal income tax purposes. To that end, the provisions of this
rider and the Contract are to be interpreted to ensure or
maintain such tax qualification, notwithstanding any other
provisions to the contrary. Whether any tax liability may be
incurred when benefits are paid under this rider could depend on
whether the Contract Owner is also the insured and on how the
Internal Revenue Service interprets applicable provisions of the
Internal Revenue Code. As with any tax matter, the Contract Owner
and any other recipient of this benefit should each consult his
or her own tax advisor to evaluate any tax impact of this
benefit.
Signed for Transamerica Occidental Life Insurance Company at Los Angeles,
California and effective on the date of issue of the Contract to which this
rider is attached, unless a different date is shown here.
Executive Vice President, General Counsel President and CEO
And Corporate Secretary
Form xxxx-98
TRANSAMERICA OCCIDENTAL LIFE INSURANCE COMPANY
SECTION 1035 RIDER
This rider is a part of the Contract to which it is attached. The insured under
this rider is the insured under the Contract.
The Contract is issued in consideration of your assignment to us of a life
insurance policy (called the "Exchanged Policy") on the life of the insured. The
"Exchanged Policy" is identified in your application for this Contract. As used
in this endorsement, "gain" means the amount by which the cash value of the
Exchanged Policy (including any unpaid policy loan) exceeds your investment in
the Exchanged Policy as reported to us by the company which issued the Exchanged
Policy. We assume no responsibility for the calculation of your investment in
the Exchanged Policy.
The Fixed Account Interest Rates provisions are amended by the addition of the
following:
The Preferred Loan Rate will also be credited to the following amounts:
(1) That portion of the outstanding loan which is carried over from the
Exchanged Policy; and (2) A percentage of the gain under the Exchanged
Policy less the policy loan carried over to this Contract
as of the date of exchange.
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Beginning of Contract Year Exchanged Policy's Unloaned Gain
Available For Preferred Loan Rate
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1 0%
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2 10%
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3 20%
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4 30%
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5 40%
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6 50%
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7 60%
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8 70%
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9 80%
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10 90%
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11+ 100%
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Signed for Transamerica Occidental Life Insurance Company at Los Angeles,
California and effective on the date of issue of the Contract to which this
rider is attached, unless a different date is shown here.
Executive Vice President, General Counsel President and CEO
And Corporate Secretary
Form xxxxx-98
TRANSAMERICA OCCIDENTAL LIFE INSURANCE COMPANY
Guaranteed Death Benefit Rider (SPVUL)
This rider is a part of the Contract to which it is attached.
Required Payment This Rider will take effect upon receipt by
the Company of the Guaranteed Death Benefit Payment
shown on the specification pages.
Guaranteed Death Benefit The Contract will not lapse while this
Rider is in force. The monthly deductions will be
made from the Contract Value, if any, through the
final payment date (but not after the end of any
duration period shown on the specification pages).
Net Death Benefit While this Rider is in force, the net
death benefit provisions of the Contract are amended
by the addition of the following:
If this Rider is in effect on the final payment
date, a death benefit will be provided thereafter
unless the Rider is terminated. The net death
benefit under the Rider will be the face amount as
of the final payment date or 101% of the Contract
Value as of the date due poof of death is received
by the Company, whichever is greater, reduced by the
outstanding loan through the Contract month in which
the insured dies. The monthly deductions will not be
deducted after the final payment date.
Termination This Rider will terminate and may not be reinstated
on the first to occur of the following:
o Foreclosure of the outstanding loan; or
o A request for a partial withdrawal or
preferred loan is made after the final
payment date; or
o Upon your written request.
It is possible that the Contract Value will not be sufficient to keep the
Contract in force on the first monthly processing date following the date the
Rider is terminated. The net amount payable to keep the Contract in force will
never exceed the surrender charge plus the amount required to pay three monthly
deductions.
Signed for Transamerica Occidental Life Insurance Company at Los Angeles,
California and effective on the date of issue of the Contract to which this
rider is attached, unless a different date is shown here.
Executive Vice President, General Counsel President and CEO
And Corporate Secretary
Form xxxxx-98
