Aetna logo] Aetna Life Insurance and Annuity Company Home Office: 151 Farmington Avenue P.O. Box 30670 Hartford, Connecticut 06150-0670 (800) 531-4547 You may call the toll-free number shown above for answers to questions or to resolve a complaint....
[Aetna logo] Aetna Life Insurance and Annuity Company
Home Office: 000 Xxxxxxxxxx Xxxxxx
P.O. Box 30670
Hartford, Connecticut 06150-0670
(000) 000-0000
You may call the toll-free number shown above for answers to
questions or to resolve a complaint.
Aetna Life Insurance and Annuity Company, a stock company,
herein called Aetna, agrees to pay the benefits stated in
this Contract.
Specifications
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Plan
SPECIMEN
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Type of Plan
SPECIMEN
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Contract Holder
SPECIMEN
SPECIMEN
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Annuitant
SPECIMEN
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Contract Number
SPECIMEN
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Effective Date
SPECIMEN
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This Contract is delivered in YOUR STATE and is subject to the
laws of that jurisdiction
The variable features of the Contract are described in parts III and IV.
Right to Cancel
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The Contract Holder may cancel this Contract within 10 days by returning
it to the agent from whom it was purchased, or to Aetna at the address shown
above. Within seven days of receiving the Contract at its home office, Aetna
will return the amount of Certificate Holder Purchase Payment(s) received, plus
any increase, or minus any decrease, on the amount, if any, allocated to the
Separate Account fund(s).
This page and the pages that follow constitute the entire Contract.
Signed at the home office on the Effective Date.
/s/Xxxxxx Xxxxxxx /s/Xxxxx X. Xxxxxxxxx
President Secretary
Individual Variable, Fixed, or Combination Annuity Contract
Nonparticipating
ALL PAYMENTS AND VALUES PROVIDED BY THE CONTRACT, WHEN BASED ON INVESTMENT
EXPERIENCE OF A SEPARATE ACCOUNT, ARE VARIABLE AND ARE NOT GUARANTEED AS TO
FIXED DOLLAR AMOUNT. THIS CONTRACT CONTAINS A MARKET VALUE ADJUSTMENT FORMULA.
APPLICATION OF A MARKET VALUE ADJUSTMENT MAY RESULT IN EITHER AN INCREASE OR
DECREASE IN THE CURRENT VALUE. THE MARKET VALUE ADJUSTMENT FORMULA DOES NOT
APPLY TO A GUARANTEED TERM AT THE TIME OF ITS MATURITY.
Specifications
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Guaranteed There is a guaranteed interest rate for Purchase
Interest Rate Payment(s) held in the AG Account. (See Contract
Schedule I).
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Deductions from There will be deductions for mortality and expense
the Separate risks and administrative fees. (See Contract
Account Schedule I and II).
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Deduction from Purchase Payment(s) are subject to a deduction for
Purchase premium taxes, if any. (See 3.01.)
Payment(s)
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Surrender There will be a charge deducted upon surrender. (See
Fee Contract Schedule I).
This Contract is a legal contract and constitutes the entire legal relationship
between Aetna and the Contract Holder.
READ THIS CONTRACT CAREFULLY. This Contract sets forth, in detail, all of the
rights and obligations of both you and Aetna. THEREFORE, IT IS IMPORTANT THAT
YOU READ THIS CONTRACT CAREFULLY.
2
Contract Schedule I
Accumulation Period
Separate Account
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Separate Account: Variable Annuity Account B
Charges to Separate A daily charge is deducted from any portion of the
Account: Current Value allocated to the Separate Account.
The deduction is the daily equivalent of the
annual effective percentage shown in the following
chart:
Administrative Charge 0.15%
Mortality Risk Charge 0.35%
Expense Risk Charge 0.90%
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Total Separate Account
Charges 1.40%
ALIAC Guaranteed Account (AG Account)
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Minimum Guaranteed 3.0% (effective annual rate of return)
Interest Rate:
Separate Account and AG Account
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Transfers: An unlimited number of Transfers are allowed
during the Accumulation Period. Aetna allows 12
free Transfers in any calendar year. Thereafter,
Aetna reserves the right to charge $10 for each
subsequent Transfer.
Maintenance Fee: The annual Maintenance Fee is $30. If the
Account's Current Value is $50,000 or more on the
date the Maintenance Fee is to be deducted, the
Maintenance Fee is $0.
3
Contract Schedule I (Continued)
Accumulation Period
Separate Account and AG Account (Cont'd)
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Surrender Fee: For each surrender, the Surrender Fee will be
determined as follows:
Length of Time from Deposit of Net Surrender Fee
Purchase Payment (Years) (as percentage of
Net Purchase Payment)
Less than 2 years 7%
2 or more but less than 4 years 6%
4 or more but less than 5 years 5%
5 or more but less than 6 years 4%
6 or more but less than 7 years 3%
7 years or more 0%
Systematic Withdrawal The specified payment or specified percentage may
Option (SWO): not be greater than 10% of the Account's Current
Value at time of election.
See 1. GENERAL DEFINITIONS for explanations.
4
Contract Schedule II
Annuity Period
Separate Account
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Charges to Separate A daily charge at an annual effective rate of
Account: 1.25% for Annuity mortality and expense risks. The
administrative charge is established upon election
of an Annuity option. This charge will not exceed
0.25%.
Variable Annuity Assumed If a Variable Annuity is chosen, an assumed annual
Annual Net Return Rate: net return rate of 5.0% may be elected. If 5.0% is
not elected, Aetna will use an assumed annual net
return rate of 3.5%.
The assumed annual net return rate factor for 3.5%
per year is 0.9999058.
The assumed annual net return rate factor for 5.0%
per year is 0.9998663.
If the portion of a Variable Annuity payment for
any Fund is not to decrease, the Annuity return
factor under the Separate Account for that Fund
must be:
(a) 4.75% on an annual basis plus an annual
return of up to 0.25% to offset the
administrative charge set at the time
Annuity payments commence if an assumed annual
net return rate of 3.5% is chosen; or
(b) 6.25% on an annual basis plus an annual return
of up to 0.25% to offset the administrative
charge set at the time Annuity payments
commence, if an assumed annual net return rate
of 5% is chosen.
Fixed Annuity
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Minimum Guaranteed 3.0% (effective annual rate of return)
Interest Rate:
See 1. GENERAL DEFINITIONS for explanations.
5
TABLE OF CONTENTS
I. GENERAL DEFINITIONS
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Page
1.01 Accumulation Period ............................................... 9
1.02 Adjusted Current Value ............................................ 9
1.03 ALIAC Guaranteed Account (AG Account) ............................. 9
1.04 Annuitant ......................................................... 9
1.05 Annuity ........................................................... 9
1.06 Beneficiary ....................................................... 9
1.07 Code .............................................................. 9
1.08 Contract .......................................................... 9
1.09 Contract Holder ................................................... 9
1.10 Current Value ..................................................... 9
1.11 Deposit Period .................................................... 9
1.12 Dollar Cost Averaging ............................................. 10
1.13 Xxxxx Xxxxxxx ..................................................... 10
1.14 Fund(s) ........................................................... 10
1.15 General Account ................................................... 10
1.16 Guaranteed Rates - AG Account ..................................... 10
1.17 Guaranteed Term ................................................... 10
1.18 Guaranteed Term(s) Groups ......................................... 10
1.19 Maintenance Fee ................................................... 10
1.20 Market Value Adjustment (MVA) ..................................... 11
1.21 Matured Term Value ................................................ 11
1.22 Matured Term Value Transfer ....................................... 11
1.23 Maturity Date ..................................................... 11
1.24 Net Purchase Payment(s) ........................................... 11
1.25 Nonunitized Separate Account ...................................... 11
1.26 Purchase Payment(s) ............................................... 11
1.27 Reinvestment ...................................................... 11
1.28 Separate Account .................................................. 12
1.29 Surrender Value ................................................... 12
6
Page
1.30 Transfers ......................................................... 12
1.31 Valuation Period (Period) ......................................... 12
1.32 Variable Annuity .................................................. 12
II. GENERAL PROVISIONS
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2.01 Change of Contract ................................................ 12
2.02 Change of Fund(s) ................................................. 13
2.03 Nonparticipating Contract ......................................... 13
2.04 Payments and Elections ............................................ 13
2.05 State Laws ........................................................ 13
2.06 Control of Contract ............................................... 13
2.07 Designation of Beneficiary ........................................ 14
2.08 Misstatements and Adjustments ..................................... 14
2.09 Incontestability .................................................. 14
2.10 Grace Period ...................................................... 14
III. PURCHASE PAYMENT, CURRENT VALUE, AND SURRENDER PROVISIONS
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3.01 Net Purchase Payment .............................................. 14
3.02 Fund(s) Record Units -- Separate Account .......................... 15
3.03 Net Return Factor(s) -- Separate Account .......................... 15
3.04 Fund Record Unit Value -- Separate Account ........................ 15
3.05 Market Value Adjustment ........................................... 15
3.06 Transfer of Current Value from the Funds or AG Account ............ 17
3.07 Notice to the Certificate Holder .................................. 17
3.08 Loans ............................................................. 17
3.09 Systematic Withdrawal Option (SWO) ................................ 18
3.10 Death Benefit Amount .............................................. 19
3.11 Death Benefit Options Available to Beneficiary .................... 20
3.12 Liquidation of Surrender Value .................................... 21
3.13 Surrender Fee ..................................................... 21
3.14 Payment of Surrender Value ........................................ 22
7
Page
3.15 Payment of Adjusted Current Value ................................. 22
IV. ANNUITY PROVISIONS
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4.01 Choices ........................................................... 23
4.02 Terms of Annuity Options .......................................... 23
4.03 Death of Annuitant/Beneficiary .................................... 24
4.04 Fund(s) Annuity Units -- Separate Account ......................... 25
4.05 Fund(s) Annuity Unit Value -- Separate Account .................... 25
4.06 Annuity Net Return Factor(s) -- Separate Account .................. 26
4.07 Annuity Options ................................................... 26
8
I. GENERAL DEFINITIONS
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1.01 Accumulation Period: The period during which the Net Purchase
Payment(s) are applied to a Contract to
provide future Annuity payment(s).
1.02 Adjusted The Current Value of a Contract plus or
Current Value: minus any aggregate AG Account MVA, if
applicable. (See 1.20)
1.03 ALIAC Guaranteed An accumulation option where Aetna
Account (AG Account): guarantees stipulated rate(s) of
interest for specified periods of time.
All assets of Aetna, including amounts
in the Nonunitized Separate Account, are
available to meet the guarantees under
the AG Account.
1.04 Annuitant: The person whose life is measured for
purposes of the Guaranteed Death Benefit
and the duration of Annuity payments
under this Contract.
1.05 Annuity: Payment of an income:
(a) For the life of one or two persons;
(b) For a stated period; or
(c) For some combination of (a) and (b).
1.06 Beneficiary: The individual or estate entitled to
receive any death benefit under the
Contract. If the Contract is held by
joint Contract Holders, the survivor
will be deemed the designated
Beneficiary and any other Beneficiary on
record will be treated as the contingent
Beneficiary.
1.07 Code: The Internal Revenue Code of 1986, as it
may be amended from time to time.
1.08 Contract: This agreement between Aetna and the
Contract Holder.
1.09 Contract Holder: A person who purchases this Contract.
Aetna reserves the right to limit
ownership to natural persons. The
Contract Holder has all right, title and
interest under the Contract. If more
than one Contract Holder owns the
Contract, each Contract Holder will be a
joint Contract Holder. Any joint
Contract Holder must be the spouse of
the other joint Contract Holder. Joint
Contract Holders have joint ownership
rights and both must authorize
exercising any ownership rights unless
Aetna allows otherwise.
1.10 Current Value: As of the most recent Valuation Period,
the Net Purchase Payment and any
additional amount deposited pursuant to
3.10 plus any interest added to the
portion allocated to the AG Account; and
plus or minus the investment experience
of the portion allocated to the Funds
since deposit; less all Maintenance Fees
deducted, any amounts surrendered and
any amounts applied to an Annuity.
1.11 Deposit Period: A calendar week, a calendar month, a
calendar quarter, or any other period of
time specified by Aetna during which Net
Purchase Payment(s), Transfers and
Reinvestments are accepted into the AG
Account for one or more Guaranteed
Terms. Aetna reserves the right to
extend the Deposit Period.
9
1.12 Dollar Cost Averaging: A program that permits the Contract
Holder to systematically transfer
amounts from any of the Funds and the
one-year AG Account Guaranteed Term to
any of the Funds. Dollar Cost Averaging
is not available with the Systematic
Withdrawal Option or the Estate
Conservation Option.
1.13 Fixed Annuity: An Annuity with payments that do not
vary in amount.
1.14 Fund(s): The open-end management investment
companies (mutual funds) in which the
Separate Account invests.
1.15 General Account: The Account holding the assets of Aetna,
other than those assets held in Aetna's
separate accounts.
1.16 Guaranteed Rates -- Aetna will declare the interest rate(s)
AG Account: applicable to a specific Guaranteed Term
at the start of the Deposit Period for
that Guaranteed Term. The rate(s) are
guaranteed by Aetna for that Deposit
Period and the ensuing Guaranteed Term.
The Guaranteed Rates are annual
effective yields. That is, interest is
credited daily at a rate that will
produce the Guaranteed Rate over the
period of a year. No Guaranteed Rate
will ever be less than the Minimum
Guaranteed Rate shown on Contract
Schedule I.
For Guaranteed Terms of one year or
less, one Guaranteed Rate is credited
for the full Guaranteed Term. For longer
Guaranteed Terms, an initial Guaranteed
Rate is credited from the date of
deposit to the end of a specified period
within the Guaranteed Term. There may be
different Guaranteed Rate(s) declared
for subsequent specified time intervals
throughout the Guaranteed Term.
1.17 Guaranteed Term: The period of time for which AG Account
Guaranteed Rates are guaranteed on Net
Purchase Payments, Transfers and
Reinvestments made into a current
Deposit Period for the AG Account. Such
period begins on the day following the
close of the Deposit Period and ends on
the designated Maturity Date. Guaranteed
Terms are offered at Aetna's discretion
for various lengths of time ranging up
to and including ten years.
During a Deposit Period, Aetna may make
available any number of Guaranteed
Terms. The Contract Holder may allocate
Net Purchase Payments and Transfers into
any or all of the available Guaranteed
Terms.
1.18 Guaranteed Term(s) Groups: All AG Account Guaranteed Term(s) with
the same length of time from the close
of the Deposit Period until the
designated Maturity Date.
1.19 Maintenance Fee: The Maintenance Fee (see Contract
Schedule I) will be deducted during the
Accumulation Period from the Current
Value on each anniversary of the date
the Contract is established and upon
surrender of the entire Contract.
10
1.20 Market Value Adjustment An adjustment that may apply to an
(MVA): amount withdrawn or transferred from an
AG Account Guaranteed Term prior to the
end of that Guaranteed Term. The
adjustment reflects the change in the
value of the investment due to changes
in interest rates since the date of
deposit and is computed using the
formula given in 3.05. The adjustment is
expressed as a percentage of each dollar
withdrawn or transferred.
1.21 Matured Term Value: The amount due on an AG Account
Guaranteed Term's Maturity Date.
1.22 Matured Term Value During the calendar month following an
Transfer: AG Account Maturity Date, the Contract
Holder may notify Aetna's home office in
writing to Transfer or surrender all or
part of the Matured Term Value, plus
interest at the new Guaranteed Rate
accrued thereon, from the AG Account
without an MVA. This provision only
applies to the first such written
request received from the Contract
Holder during this period for any
Matured Term Value.
1.23 Maturity Date: The last day of an AG Account Guaranteed
Term.
1.24 Net Purchase Payment(s): The Purchase Payment less premium taxes,
if applicable.
1.25 Nonunitized Separate A separate account set up by Aetna under
Account: Title 38, Section 38a-433, of the
Connecticut General Statutes, that holds
assets for AG Account Terms. There are
no discrete units for this Account. The
Contract Holder does not participate in
the investment gain or loss from the
assets held in the Nonunitized Separate
Account. Such gain or loss is borne
entirely by Aetna. These assets may be
chargeable with liabilities arising out
of any other business of Aetna.
1.26 Purchase Payment(s): Payment(s) accepted by Aetna at its home
office. Aetna reserves the right to
refuse to accept any Purchase Payment at
any time for any reason. No advance
notice will be given to the Contract
Holder.
1.27 Reinvestment: Aetna will mail a notice to the Contract
Holder at least 18 calendar days before
a Guaranteed Term's Maturity Date. This
notice will contain the Terms available
during current Deposit Periods with
their Guaranteed Rate(s), and projected
Matured Term Value. If no specific
direction is given by the Contract
Holder prior to the Maturity Date, each
Matured Term Value will be reinvested in
the current Deposit Period for a
Guaranteed Term of the same duration. If
a Guaranteed Term of the same duration
is unavailable, each Matured Term Value
will automatically be reinvested in the
current Deposit Period for the next
shortest Guaranteed Term available. If
no shorter Guaranteed Term is available,
the next longer Guaranteed Term will be
used. Aetna will mail a confirmation
statement to the Contract Holder the
next business day after the Maturity
Date. This notice will state the
Guaranteed Term and Guaranteed Rate(s)
which will apply to the reinvested
Matured Term Value.
11
1.28 Separate Account: A separate account that buys and holds
shares of the Fund(s). Income, gains or
losses, realized or unrealized, are
credited or charged to the Separate
Account without regard to other income,
gains or losses of Aetna. Aetna owns the
assets held in the Separate Account and
is not a trustee as to such amounts.
This Separate Account generally is not
guaranteed and is held at market value.
The assets of the Separate Account, to
the extent of reserves and other
contract liabilities of the Account,
shall not be charged with other Aetna
liabilities.
1.29 Surrender Value: The amount payable by Aetna upon the
surrender of any portion of the
Contract.
1.30 Transfers: The movement of invested amounts among
the available Fund(s) and the AG Account
under this Contract during the
Accumulation Period.
1.31 Valuation Period (Period): The period of time for which a Fund
determines its net asset value, usually
from 4:15 p.m. Eastern time each day the
New York Stock Exchange is open until
4:15 p.m. the next such day, or such
other day that one or more of the Funds
determines its net asset value.
1.32 Variable Annuity: An Annuity with payments that vary with
the net investment results of one or
more Funds held under the Separate
Account.
II. GENERAL PROVISIONS
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2.01 Change of Contract: Only an authorized officer of Aetna may
change the terms of this Contract. Aetna
will notify the Contract Holder in
writing at least 30 days before the
effective date of any change. Any change
will not affect the amount or terms of
any Annuity which begins before the
change.
Aetna reserves the right to refuse to
accept any Purchase Payment at any time
for any reason. This applies to
subsequent Purchase Payments under the
Contract. No advance notice will be
given to the Contract Holder.
Aetna may make any change that affects
the AG Account Market Value Adjustment
(3.05) with at least 30 days' advance
written notice to the Contract Holder.
Any such change shall become effective
for any new Term.
Aetna reserves the right to change the
terms of the Systematic Withdrawal
Option (3.09) for future elections and
discontinue the availability of this
option after proper notification.
The following will not be changed:
(a) Net Purchase Payment (1.24)
(b) AG Account Guaranteed Rate (1.16)
(c) Net Return Factor(s) -- Separate
Account (3.03)
(d) Current Value (1.10)
(e) Surrender Value (1.29)
12
2.01 Change of Contract (f) Fund(s) Annuity Unit Value --
(Cont'd): Separate Account (4.05)
(g) Annuity options (4.07)
(h) Fixed Annuity Interest Rates (4.01)
(i) Transfers (1.30).
Any change that affects the Annuity
Options and the tables for the Options
may be made:
(a) No earlier than 12 months after the
effective date of this Contract; and
(b) No earlier than 12 months after the
effective date of any prior change.
This Contract may be changed as deemed
necessary by Aetna to comply with
federal or state law.
2.02 Change of Fund(s): The assets of the Separate Account are
segregated by Fund. If the shares of any
Fund are no longer available for
investment by the Separate Account or if
in our judgment, further investment in
such shares should become inappropriate
in view of the purpose of the Contract,
Aetna may cease to make such Fund shares
available for investment under the
Contract prospectively, or Aetna may
substitute shares of another Fund for
shares already acquired. Aetna may also,
from time to time, add additional Funds.
Any elimination, substitution or
addition of Funds will be done in
accordance with applicable state and
federal securities laws. Aetna reserves
the right to substitute shares of
another Fund for shares already acquired
without a proxy vote.
2.03 Nonparticipating Contract: The Contract Holder or Beneficiaries
will not have a right to share in the
earnings of Aetna.
2.04 Payments and Elections: While the Contract Holder is living,
Aetna will pay the Contract Holder any
Annuity payments as and when due. After
the Contract Xxxxxx's death, or at the
death of the first Contract Holder if
the Contract is owned jointly, any
Annuity payments required to be made
will be paid in accordance with 4.03.
Aetna will determine other payments
and/or elections as of the end of the
Valuation Period in which the request is
received at its home office. Such
payments will be made within 7 calendar
days of receipt at its home office of a
written claim for payment which is in
good order, except as provided in 3.14.
2.05 State Laws: The Contract complies with the laws of
the state in which it is delivered. Any
surrender, death, or Annuity payments
are equal to or greater than the minimum
required by such laws. Annuity tables
for legal reserve valuation shall be as
required by state law. Such tables may
be different from Annuity tables used to
determine Annuity payments.
2.06 Control This is a Contract between the Contract
of Contract: Xxxxxx and Aetna. The Contract Holder
has all rights, title and interest for
amounts held in the Contract. Choices
made under this Contract must be in
writing. If the Contract is owned
jointly, both joint Contract Holders
must authorize any Contract Holder
change in writing. Until receipt of such
choices at Aetna's home office, Aetna
may rely on any previous choices made.
13
2.06 Control of Contract The Contract is not subject to the
(Cont'd): claims of any creditors of the Contract
Holder, except to the extent permitted
by law. The Contract Holder may assign
or transfer his or her rights under the
Contract. Aetna reserves the right not
to accept assignment or transfer to a
nonnatural person. Any assignment or
transfer made under the Contract must be
submitted to Aetna's home office in
writing and will not be effective until
accepted by Aetna.
2.07 Designation of Each Contract Holder shall name his or
Beneficiary: her Beneficiary. If the Contract is
owned jointly, both Contract Holders
must agree in writing to the Beneficiary
designated. The Beneficiary may be
changed at any time. Changes to a
Beneficiary must be submitted to Aetna's
home office in writing and will not be
effective until accepted by Aetna. If
the Contract is owned jointly, at the
death of one Certificate Holder, the
survivor will be deemed the Beneficiary;
any other Beneficiary on record will be
deemed a contingent Beneficiary.
2.08 Misstatements and If Aetna finds the age of any Annuitant
Adjustments: to be misstated, the correct facts will
be used to adjust payments.
2.09 Incontestability: Aetna cannot cancel this Contract
because of any error of fact on the
application.
2.10 Grace Period: This Contract will remain in effect even
if Purchase Payments are not continued
except as provided in the Payment of
Adjusted Current Value provision (see
3.16).
III. PURCHASE PAYMENT, CURRENT VALUE, AND SURRENDER PROVISIONS
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3.01 Net Purchase Payment: This amount is the actual Purchase
Payment less any premium tax. Aetna
reserves the right to pay premium taxes
when due and deduct the amount from the
current value when we pay the tax or at
a later date.
The Net Purchase Payment will be
credited among:
(a) The current Deposit Period(s) for
Guaranteed Terms under the AG
Account; and
(b) The Fund(s) in which the Separate
Account invests.
For each Net Purchase Payment, the
Contract Holder shall tell Aetna the
allocation percentage to be applied to
the current Deposit Period for each of
the available Guaranteed Terms in the AG
Account and/or each Fund. If allocation
instructions are not received along with
any subsequent Net Purchase Payment, the
allocation will be the same as that
indicated on the original application.
If the same Guaranteed Term is no longer
available, the Net Purchase Payment will
be allocated to the next shortest
Guaranteed Term available in the current
Deposit Period. If no shorter Guaranteed
Term is available, the next longer
Guaranteed Term will be used.
Aetna will declare from time to time the
acceptability and the minimum amount for
additional Purchase Payments.
14
3.02 Fund(s) Record Units -- The portion of the Net Purchase
Separate Account: Payment(s) applied to each Fund under
the Separate Account will determine the
number of Fund record units for that
Fund. This number is equal to the
portion of the Net Purchase Payment(s)
applied to each Fund divided by the Fund
record unit value (see 3.04) for the
Valuation Period in which the Purchase
Payment is received in good order at
Aetna's home office.
3.03 Net Return Factor(s) -- The net return factor(s) are used to
Separate Account: compute all Separate Account record
units for any Fund.
The net return factor for each Fund is
equal to 1.0000000 plus the net return
rate.
The net return rate is equal to:
(a) The value of the shares of the Fund
held by the Separate Account at the
end of the Valuation Period; minus
(b) The value of the shares of the Fund
held by the Separate Account at the
start of the Valuation Period; plus
or minus
(c) Taxes (or reserves for taxes) on
the Separate Account (if any);
divided by
(d) The total value of the Fund record
units and Fund Annuity units of the
Separate Account at the start of
the Valuation Period; minus
(e) A daily Separate Account charge at
an annual rate as shown on Contract
Schedule I for mortality and
expense risks, which may include
profit; and a daily administrative
charge.
A net return rate may be more or less
than 0%. The value of a share of the
Fund is equal to the net assets of the
Fund divided by the number of shares
outstanding.
3.04 Fund Record Unit Value -- A Fund record unit value is computed by
Separate Account: multiplying the net return factors for
the current Valuation Period by the Fund
record unit value for the previous
Period. The dollar value of Fund record
units, Separate Account assets, and
Variable Annuity payments may go up or
down due to investment gain or loss.
3.05 Market Value An MVA will apply to any withdrawal from
Adjustment: the AG Account before the end of a
Guaranteed Term when the withdrawal is
due to:
(a) A Transfer; except for Transfers
from the one-year AG Account
Guaranteed Term under the Dollar
Cost Averaging program or, as
specified in 1.22 Matured Term
Value Transfer;
(b) A full or partial surrender
(including a 10% free withdrawal
under 3.13) except for a partial
withdrawal under the Systematic
Withdrawal Option (see 3.09); or
(c) An election of an Annuity option
(see 4.07).
Full and partial surrenders and
Transfers made within six months after
the date of the Annuitant's death will
be the greater of:
15
3.05 Market Value (a) The aggregate MVA amount which is
Adjustment the sum of all market value
(Cont'd): adjusted amounts calculated due to
a withdrawal of amounts. This total
may be greater or less than the
Current Value of those amounts; or
(b) The applicable portion of the
Current Value in the AG Account.
After the six-month period, the
surrender or Transfer will be the
aggregate MVA amount, which may be
greater or less than the Current Value
of those amounts.
The greater of the aggregate MVA amount
or the applicable portion of the Current
Value applies to amounts withdrawn from
the AG Account on account of an election
of Annuity options 2 or 3 (see 4.07).
Market value adjusted amounts will be
equal to the amount withdrawn multiplied
by the following ratio:
x
---
365
(1 + i)
------------
x
---
365
(1 + j)
Where:
i is the Deposit Period
Yield
j is the Current Yield
x is the number of days
remaining, (computed from
Wednesday of the week of
withdrawal) in the
Guaranteed Term.
The Deposit Period Yield will be
determined as follows:
(a) At the close of the last business
day of each week of the Deposit
Period, a yield will be computed as
the average of the yields on that
day of U.S. Treasury Notes which
mature in the last three months of
the Guaranteed Term.
(b) The Deposit Period Yield is the
average of those yields for the
Deposit Period. If withdrawal is
made before the close of the
Deposit Period, it is the average
of those yields on each week
preceding withdrawal.
The Current Yield is the average of the
yields on the last business day of the
week preceding withdrawal on the same
U.S. Treasury Notes included in the
Deposit Period Yield.
In the event that no U.S. Treasury Notes
which mature in the last three months of
the Guaranteed Term exist, Aetna
reserves the right to use the U.S.
Treasury Notes that mature in the
following quarter.
16
3.06 Transfer of Current Value Before an Annuity option is elected, all
from the Funds or AG or any portion of the Adjusted Current
Account: Value may be transferred from any Fund
or Guaranteed Term of the AG Account:
(a) To any other Fund; or
(b) To any Guaranteed Term of the AG
Account available in the current
Deposit Period.
Transfer requests can be submitted as a
percentage or as a dollar amount. Aetna
may establish a minimum transfer amount.
Within a Guaranteed Term Group, the
amount to be surrendered or transferred
will be withdrawn first from the oldest
Deposit Period, then from the next
oldest, and so on until the amount
requested is satisfied.
The Contract Holder may make an
unlimited number of Transfers during the
Accumulation Period. The number of free
Transfers allowed by Aetna is shown on
Contract Schedule I. Additional
Transfers may be subject to a Transfer
fee as shown on Contract Schedule I.
Amounts transferred from AG Account
Guaranteed Term under the Dollar Cost
Averaging program, or amounts
transferred as a Matured Term Value on
or within one calendar month after a
Term's Maturity Date do not count
against the annual Transfer limit.
Amounts applied to Guaranteed Terms of
the AG Account may not be transferred to
the Funds or to another Guaranteed Term
during the Deposit Period or for 90 days
after the close of the Deposit Period
except for (1) Matured Term Value(s)
during the calendar month following the
Term's Maturity Date; (2) amounts used
as a premium for an Annuity option; (3)
amounts transferred from the one-year AG
Account Guaranteed term under the Dollar
Cost Averaging Program; and (4) amounts
distributed under the Systematic
Withdrawal Option.
3.07 Notice to the The Contract Holder will receive
Contract Holder: quarterly statements from Aetna of:
(a) The value of any amounts held in:
(1) The AG Account; and
(2) The Fund(s) under the Separate
Account.
(b) The number of any Fund(s) record
units; and
(c) The Fund(s) record unit value.
Such number or values will be as of a
specific date no more than 60 days
before the date of the notice.
3.08 Loans: Loans are not available under this
Contract.
17
3.09 Systematic Withdrawal A distribution option under which a
Option (SWO): portion of the Current Value will
automatically be surrendered and
distributed each year. SWO payments will
be calculated on the Contract's full
Current Value. The distributed amount is
withdrawn pro rata from each investment
option used under the Contract. A
Surrender Fee will not be deducted from
any portion of the Current Value which
is paid as a distribution under SWO.
Contract Holders should consult their
tax advisers prior to requesting this
distribution option. Aetna will not be
responsible for any adverse tax
consequences due to receiving SWO
payments.
(a) Amount of Distribution: The
Contract Holder may elect one of
the three payment methods described
below.
(1) Specified Payment: Payments of
a designated dollar amount.
The annual amount may not be
greater than the percentage of
the Current Value on the date
of the SWO election as shown
on Contract Schedule I. This
annual dollar amount will
remain constant. At its
discretion, Aetna may require
a minimum payment amount; or
(2) Specified Period: Payments
made over a designated period
of time of at least 10 years.
The annual amount is
calculated by dividing the
Current Value as of December
31 of the year prior to the
payment year by the number of
payment years remaining; or
(3) Specified Percentage: Payments
of a designated percentage
which cannot be greater than
the percentage of the Current
Value at the time of election
as shown on Contract Schedule
I. The percentage may be
changed by written request.
Aetna reserves the right to
limit the number of times the
percentage may be changed. The
annual amount is calculated by
multiplying the Current Value
as of December 31 of the year
prior to the payment year by
the designated percentage.
SWO Payments will cease upon the
Contract Xxxxxx's or Xxxxxxxxx's
death. A Beneficiary, however, may
elect to continue SWO as provided
in 3.11.
(b) Minimum Initial Current Value: At
its discretion, Aetna may require a
minimum initial Current Value for
election of this option. If after
election of this option the Current
Value is insufficient to make a
scheduled SWO payment, Aetna will
distribute the entire balance.
(c) Date of Distribution: The Contract
Holder shall specify the first
payment date. The earliest
allowable first payment date is the
date on which the Contract Holder
attains age 59 1/2. As elected by
the Contract Holder, SWO payments
will be made on a monthly,
quarterly, semi-annual or annual
basis. If SWO payments are made
more frequently than annually, the
designated annual amount is divided
by the number of payments
18
3.09 Systematic Withdrawal due each year. Subsequent payments
Option (SWO) will be made on the 15th of the
(Cont'd): appropriate months or on such other
date Aetna may designate or allow.
(d) Election and Revocation: SWO may be
elected by submitting a completed
and signed election form to Aetna's
home office. Once elected, this
option may be revoked by the
Contract Holder or spousal
Beneficiary, if elected after the
Contract Xxxxxx's death, by
submitting a written request to
Aetna at its home office. Any
revocation will apply only to
amounts not yet paid. SWO may be
elected only once by the Contract
Holder or by the spouse
Beneficiary.
3.10 Death Benefit Amount: If the Contract Holder or Annuitant dies
before Annuity payments start, the
Beneficiary is entitled to a death
benefit under the Contract. If the
Contract is owned jointly, the death
benefit is paid at the death of the
first joint Contract Holder to die. The
claim date is the date when proof of
death and the Beneficiary's claim are
received in good order at Aetna's home
office. The amount of the death benefit
is determined as follows:
(a) Death of Annuitant when the
Contract Holder is the Annuitant.
The guaranteed death benefit is the
greatest of:
(1) The sum of all Net Purchase
Payment(s) made to the
Contract (as of the date of
death) minus the sum of all
amounts surrendered, applied
to an Annuity, or deducted
from the Contract;
(2) The highest step-up value, as
of the date of death, prior to
the Annuitant's 75th birthday.
A step-up value is determined
on each anniversary of the
Effective Date. Each step-up
value is calculated as the
Contract's Current Value on
the Effective Date
anniversary, increased by the
amount of any Purchase
Payment(s) made, and decreased
by the sum of all amounts
surrendered, deducted, and/or
applied to an Annuity option
since the Effective Date
anniversary.
(3) The Contract's Current Value
as of the date of death.
The excess, if any, of the
guaranteed death benefit value over
the Contract's Current Value is
determined as of the date of death.
Any excess amount will be deposited
to the Contract and allocated to
Aetna Variable Encore Fund as of
the claim date. The Current Value
on the claim date plus any excess
amount deposited becomes the
Contract's Current Value.
(b) Death of the Contract Holder if the
Contract Holder is not the
Annuitant: The death benefit amount
is the Adjusted Current Value on
the claim date. A Surrender Fee may
apply to any full or partial
surrender (see 3.13 and Contract
Schedule I).
(c) At the death of a spousal
Beneficiary who continued the
Contract in his or her own name,
the death benefit amount is equal
to the Adjusted Current Value less
any applicable Surrender Fee on the
amount of any Purchase Payment(s)
made since the death of the
Contract Holder.
19
3.11 Death Benefit Options Prior to any election, or until amounts
available to Beneficiary: must be otherwise distributed under this
section, the Current Value will be
retained in the Contract. The
Beneficiary has the right to allocate or
reallocate any amount to any of the
available investment options (subject to
an MVA, if applicable). The following
options are available to the
Beneficiary:
(a) When the Contract Holder is the
Annuitant: If the Annuitant dies,
(or when the Contract Holder is a
nonnatural person):
(1) If the Beneficiary is the
surviving spouse, the spousal
Beneficiary will be the
successor Contract Holder and
may exercise all Contract
Holder rights under the
Contract and continue in the
Accumulation Period, or may
elect (i) or (ii) below. Under
the Code, distributions from
the Contract are not required
until the spousal
Beneficiary's death. The
spousal Beneficiary may elect
to:
(i) Apply some or all of the
Adjusted Current Value to
an Annuity option (see
4.07); or
(ii) Receive, at any time, a
lump sum payment equal to
the Adjusted Current
Value.
(2) If the Beneficiary is other
than the surviving spouse,
then options (i) or (ii) above
apply. Any portion of the
death benefit not applied to
an Annuity option within one
year of the Contract Xxxxxx's
death, must be distributed
within five years of the date
of death.
(3) If no Beneficiary exists, a
lump sum payment equal to the
Adjusted Current Value must be
made to the Contract Holder's
estate within five years of
the date of death. If the
Contract Holder is a
nonnatural person, the death
benefit is paid in one lump
sum to the Contract Holder.
(4) If the Beneficiary is an
entity, a lump sum payment
equal to the Adjusted Current
Value must be made within five
years of the date of death.
(b) When the Contract Holder is not the
Annuitant when the Contract Holder
dies:
(1) If the Beneficiary is the
Contract Xxxxxx's surviving
spouse, the spousal
Beneficiary will be the
successor Contract Holder and
may exercise all Contract
Holder rights under the
Contract and continue in the
Accumulation Period, or may
elect (i) or (ii) below. Under
the Code, distributions from
the Contract are not required
until the spousal
Beneficiary's death. The
spousal Beneficiary may elect
to:
(i) Apply some or all of the
Adjusted Current Value to
an Annuity option (see
4.07); or
20
3.11 Death Benefit Options (ii) Receive, at any time, a
available to Beneficiary lump sum payment equal to
(Cont'd): the Surrender Value.
(2) If the Beneficiary is other
than the Contract Xxxxxx's
surviving spouse, then options
(i) or (ii) under (1) above
apply. Any portion of the
death benefit not applied to
an Annuity option within one
year of the Contract Xxxxxx's
death will be subject to a
Surrender Fee, if applicable,
and must be distributed within
five years of the date of
death.
(3) If no Beneficiary exists, a
lump sum payment equal to the
Surrender Value must be made
to the Contract Holder's
estate within five years of
the date of death.
(4) If the Beneficiary is an
entity, a lump sum payment
equal to the Surrender Value
must be made within five years
of the date of death.
(c) When the Contract Holder is a
natural person and not the
Annuitant, when the Annuitant dies,
the Beneficiary (or the Contract
Holder if no Beneficiary exists)
may elect to:
(i) Apply all or some of the
Adjusted Current Value to an
Annuity option within 60 days
of the date of death; or
(ii) Receive a lump sum payment
equal to the Adjusted Current
Value.
3.12 Liquidation of All or any portion of the Current Value
Surrender Value: may be surrendered at any time.
Surrender requests can be submitted as a
percentage of the Current Value or as a
specific dollar amount. Net Purchase
Payment amounts are withdrawn first, and
then the excess value, if any. For any
partial surrender, amounts are withdrawn
on a pro rata basis from the Fund(s)
and/or the Guaranteed Term(s) Groups of
the AG Account in which the Current
Value is invested. Within a Guaranteed
Term Group, the amount to be surrendered
or transferred will be withdrawn first
from the oldest Deposit Period, then
from the next oldest, and so on until
the amount requested is satisfied.
After deduction of the Maintenance Fee,
if applicable, the surrendered amount
shall be reduced by a Surrender Fee, if
applicable. An MVA may apply to amounts
surrendered from the AG Account.
3.13 Surrender Fee: The Surrender Fee only applies to the
Net Purchase Payment(s) portion
surrendered and varies according to the
elapsed time since deposit (see Contract
Schedule I). Net Purchase Payment
amounts are withdrawn in the same order
they were applied.
No Surrender Fee is deducted from any
portion of the Net Purchase Payment
which is paid:
21
3.13 Surrender Fee (a) To a Beneficiary due to the
(Cont'd): Xxxxxxxxx's death before Annuity
payments start, up to a maximum of
the aggregate Net Purchase
Payment(s) minus the total of all
partial surrenders, amounts applied
to an Annuity and deductions made
prior to the Annuitant's date of
death;
(b) As a premium for an Annuity option
(see 4.07);
(c) As a distribution under the SWO
provision (see 3.09);
(d) At least 12 months after the date
of the first Purchase Payment to
the Contract, in an amount equal to
or less than 10% of the Current
Value. This applies to the first
surrender request, partial or full,
in a calendar year. The Current
Value is calculated as of the date
the surrender request is received
in good order at Aetna's home
office. This waiver is not
available to the Contract Holder
while SWO is in effect;
(e) For a full surrender where the
Contract's Current Value is $2,500
or less and no surrenders have been
taken from the Contract within the
prior 12 months;
(f) By Aetna under 3.15; or
(g) If the Annuitant has spent at least
45 consecutive days in a licensed
nursing care facility and each of
the following conditions are met:
(1) more than one calendar year
has elapsed since the date the
Contract was issued; and
(2) the surrender is requested
within 3 years of admission to
a licensed nursing care
facility.
This waiver does not apply if the
Annuitant was in a nursing
care facility at the time the
Contract was issued.
3.14 Payment of Under certain emergency conditions,
Surrender Value: Aetna may defer payment:
(a) For a period of up to 6 months
(unless not allowed by state law);
or
(b) As provided by federal law.
3.15 Payment of Adjusted Upon 90 days' written notice to the
Current Value: Contract Holder, Aetna will terminate
any Contract if the Current Value
becomes less than $2,500 immediately
following any partial surrender. Aetna
does not intend to exercise this right
in cases where the Current Value is
reduced to $2,500 or less solely due to
investment performance. A surrender fee
will not be deducted from the Adjusted
Current Value.
22
IV. ANNUITY PROVISIONS
--------------------------------------------------------------------------------
4.01 Choices: The Contract Holder may tell Aetna to
apply any portion of the Adjusted
Current Value (minus any premium tax, if
applicable,) to any Annuity under option
(see 4.07). The first Annuity payment
may not be earlier than one calendar
year after the initial Purchase Payment
nor later than the later of:
(a) The first day of the month
following the Annuitant's 85th
birthday; or
(b) The tenth anniversary of the last
Purchase Payment. In lieu of the
election of an Annuity, the
Contract Holder may tell Aetna to
make a lump sum payment.
When an Annuity option is chosen, Aetna
must also be told if payments are to be
made other than monthly and whether to
pay:
(a) A Fixed Annuity using the General
Account;
(b) A Variable Annuity using any of the
Fund(s) available under this
Contract for Annuity purposes; or
(c) A combination of (a) and (b).
If a Fixed Annuity is chosen, the
Annuity purchase rate for the option
chosen reflects at least the Minimum
Guaranteed Interest Rate (see Contract
Schedule II), but may reflect a higher
interest rate. If a Variable Annuity is
chosen, the initial Annuity payment for
the option chosen reflects the assumed
annual return rate elected. (see
Contract Schedule II).
4.02 Terms of Annuity (a) When payments start, the age of the
Options: Annuitant plus the number of years
for which payments are guaranteed
must not exceed 95.
(b) An Annuity option may not be
elected if the first payment would
be less than $50 or if the total
payments in a year would be less
than $250 (less if required by
state law). Aetna reserves the
right to increase the minimum first
Annuity payment amount and the
minimum annual Annuity payment
amount based upon increases
reflected in the Consumer Price
Index-Urban, (CPI-U) since July 1,
1993.
(c) If a Fixed Annuity is chosen and a
larger payment would result from
applying the Surrender Value to a
current Aetna single premium
immediate Annuity, Aetna will make
the larger payment.
(d) For purposes of calculating the
guaranteed first payment of a
Variable Annuity or the payments
for a Fixed Annuity, the
Annuitant's and second Annuitant's
adjusted age will be used. The
Annuitant's and second Xxxxxxxxx's
adjusted age is his or her age as
of the birthday closest to the
Annuity commencement date reduced
by one year for Annuity
commencement dates occurring during
the period of time from July 1,
1993 through December 31, 1999. The
Annuitant's and
23
4.02 Terms of Annuity second Annuitant's age will be
Options (Cont'd): reduced by two years for Annuity
commencement dates occurring during
the period of time from January 1,
2000 through December 31, 2009. The
Annuitant's and second Annuitant's
age will be reduced by one
additional year for Annuity
commencement dates occurring in
each succeeding decade.
The Annuity purchase rates for
options 2 and 3 are based on
mortality from 1983 Table a.
(e) Assumed Annual Net Return Rate is
the interest rate used to determine
the amount of the first Annuity
payment under a Variable Annuity as
shown on Contract Schedule II. The
Separate Account must earn this
rate plus enough to cover the
mortality and expense risks charges
(which may include profit) and
administrative charges if future
Variable Annuity Payments are to
remain level, (see Annuity return
factor under Variable Annuity
Assumed Annual Net Return Rate on
Contract Schedule II).
(f) Once elected, Annuity payments
cannot be commuted to a lump sum
except for Variable Annuity
payments under option 1 (see 4.07).
The life expectancy of the
Annuitant and the Annuitant and
second Annuitant shall be
irrevocable upon the election of an
Annuity option.
4.03 Death of Annuitant/ (a) Contract Holder is Annuitant: When
Beneficiary: the Contract Holder is the
Annuitant and the Annuitant dies
under option 1 or 2, or if both the
Annuitant and the second Annuitant
die under option 3(d), the present
value of any remaining guaranteed
payments will be paid in one sum to
the Beneficiary, or upon election
by the Beneficiary, any remaining
payments will continue to the
Beneficiary. If option 3 has been
elected and the Contract Holder
dies, the remaining payments will
continue to the successor payee. If
no successor payee has been
designated, the Beneficiary will be
treated as the successor payee. If
the Contract has joint Contract
Holders, the surviving joint
Contract Holder will be deemed the
successor payee.
(b) Contract Holder is Not Annuitant:
When the Contract Holder is not the
Annuitant and the Contract Holder
dies, the remaining payments will
continue to the successor payee. If
no successor payee has been
designated, the Beneficiary will be
treated as the successor payee. If
the Contract has joint Contract
Holders, the surviving joint
Contract Holder will be deemed the
successor payee.
If the Annuitant dies under option
1 or 2, or if both the Annuitant
and the second Annuitant die under
option 3(d), the present value of
any remaining guaranteed payments
will be paid in one sum to the
Beneficiary, or upon the election
by the Beneficiary, any remaining
payments will continue to the
Beneficiary. If option 3 has been
elected, and the Annuitant dies,
the remaining payments will
continue to the Contract Holder.
24
4.03 Death of Annuitant/ (c) No Beneficiary Named/Surviving: If
Beneficiary there is no Beneficiary, the
(Cont'd): present value of any remaining
payments will be paid in one sum to
the Contract Holder, or if the
Contract Holder is not living, then
to the Contract Holder's estate.
(d) If the Beneficiary or the successor
payee dies while receiving Annuity
payments, the present value of any
remaining guaranteed payments will
be paid in one sum to the successor
Beneficiary/payee, or upon election
by the successor Beneficiary/payee,
any remaining payments will
continue to the successor
Beneficiary/payee. If no successor
Beneficiary/payee has been
designated, the present value of
any remaining guaranteed payments
will be paid in one sum to the
Beneficiary's/payee's estate.
(e) The present value will be
determined as of the Valuation
Period in which proof of death
acceptable to Aetna and a request
for payment is received at Aetna's
home office. The interest rate used
to determine the first payment will
be used to calculate the present
value.
4.04 Fund(s) Annuity Units -- The number of each Fund's Annuity units
Separate Account: is based on the amount of the first
Variable Annuity payment which is equal
to:
(a) The portion of the Current Value
applied to pay a Variable Annuity
(minus any premium tax); divided by
(b) 1,000; multiplied by
(c) The payment rate for the option
chosen.
Such amount, or portion, of the variable
payment will be divided by the
appropriate Fund Annuity unit value (see
4.05) on the tenth Valuation Period
before the due date of the first payment
to determine the number of each Fund
Annuity units. The number of each Fund
Annuity units remains fixed. Each future
payment is equal to the sum of the
products of each Fund Annuity unit value
multiplied by the appropriate number of
Units. The Fund Annuity unit value on
the tenth Valuation Period prior to the
due date of the payment is used.
4.05 Fund(s) Annuity Unit For any Valuation Period, a Fund Annuity
Value -- Separate unit value is equal to:
Account:
(a) The value for the previous Period;
multiplied by
(b) The Annuity net return factor(s)
(see 4.06 below) for the Period;
multiplied by
(c) A factor to reflect the assumed
annual net return rate (see
Contract Schedule II).
The dollar value of a Fund Annuity unit
values and Annuity payments may go up or
down due to investment gain or loss.
25
4.06 Annuity Net Return The Annuity net return factor(s) are
Factor(s) -- Separate used to compute Annuity payments for any
Account: Fund.
The Annuity net return factor for each
Fund is equal to 1.0000000 plus the net
return rate.
The net return rate is equal to:
(a) The value of the shares of the Fund
held by the Separate Account at the
end of a Valuation Period; minus
(b) The value of the shares of the Fund
held by the Separate Account at the
start of the Valuation Period; plus
or minus
(c) Taxes (or reserves for taxes) on
the Separate Account (if any);
divided by
(d) The total value of the Fund record
units and Fund Annuity units of the
Separate Account at the start of
the Valuation Period; minus
(e) A daily charge for Annuity
mortality and expense risks, which
may include profit, and a daily
administrative charge (at the
annual rate as shown on Contract
Schedule II).
A net return rate may be more or less
than 0%.
The value of a share of the Fund is
equal to the net assets of the Fund
divided by the number of shares
outstanding.
Payments shall not be changed due to
changes in the mortality or expense
results or administrative charges.
4.07 Annuity Options: Option 1 -- Payments for a Stated Period
of Time -- An Annuity will be paid for
the number of years chosen. The number
of years must be at least 5 and not more
than 30.
If payments for this option are made
under a Variable Annuity, the present
value of any remaining payments may be
withdrawn at any time. If a withdrawal
is requested within 3 years after the
start of payments, it will be treated as
a surrender and any applicable Surrender
Fee will be applied (see 3.13).
If a nonspouse Beneficiary elects this
option at the death of the Contract
Holder, the period selected may not
extend beyond the Beneficiary's life
expectancy.
Option 2 -- Life Income -- An Annuity
will be paid for the life of the
Annuitant. If also chosen, Aetna will
guarantee payments for 60, 120, 180, or
240 months.
Option 3 -- Life Income Based upon the
Lives of Two Annuitants -- An Annuity
will be paid during the lives of the
Annuitant and a second Annuitant.
Payments will continue until both
Annuitants have died. When this option
is chosen, a choice must be made of:
(a) 100% of the payment to continue
after the first death;
(b) 66 2/3% of the payment to continue
after the first death;
(c) 50% of the payment to continue after
the first death;
26
4.07 Annuity Options (d) Payments for a minimum of 120
(Cont'd): months with 100% of the payment to
continue after the first death; or
(e) 100% of the payment to continue
at the death of the second
Annuitant and 50% of the payment to
continue at the death of the
Annuitant.
Other Options -- Aetna may make other
options available as allowed by the laws
of the state in which this Contract is
delivered.
27
OPTION 1
Payments for a Stated Period of Time
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.0%
Guaranteed Monthly Quarterly Semi-Annual Annual
Years Rate Payment Payment Payment Payment
--------------------------------------------------------------------------------
3 3.00% $ 28.99 $ 86.76 $ 172.88 $ 343.23
4 3.00% 22.06 66.02 131.56 261.19
5 3.00% 17.91 53.59 106.78 211.99
6 3.00% 15.14 45.30 90.27 179.22
7 3.00% 13.16 39.39 78.49 155.83
8 3.00% 11.68 34.96 69.66 138.31
9 3.00% 10.53 31.52 62.81 124.69
10 3.00% 9.61 28.77 57.33 113.82
11 3.00% 8.86 26.52 52.85 104.93
12 3.00% 8.24 24.65 49.13 97.54
13 3.00% 7.71 23.08 45.98 91.29
14 3.00% 7.26 21.73 43.29 85.95
15 3.00% 6.87 20.56 40.96 81.33
16 3.00% 6.53 19.54 38.93 77.29
17 3.00% 6.23 18.64 37.14 73.74
18 3.00% 5.96 17.84 35.56 70.59
19 3.00% 5.73 17.13 34.14 67.78
20 3.00% 5.51 16.50 32.87 65.26
21 3.00% 5.32 15.92 31.72 62.98
22 3.00% 5.15 15.40 30.68 60.92
23 3.00% 4.99 14.92 29.74 59.04
24 3.00% 4.84 14.49 28.88 57.33
25 3.00% 4.71 14.09 28.08 55.76
26 3.00% 4.59 13.73 27.36 54.31
27 3.00% 4.47 13.39 26.68 52.97
28 3.00% 4.37 13.08 26.06 51.74
29 3.00% 4.27 12.79 25.49 50.60
30 3.00% 4.18 12.52 24.95 49.53
28
OPTION 2
Life Income
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.0%
Payments Guaranteed for a Stated Period of Months
Adjusted
Age of
Annuitant None 60 120 180 240
--------------------------------------------------------------------------------
50 $ 4.05 $ 4.05 $ 4.03 $ 3.99 $ 3.93
51 4.12 4.11 4.09 4.05 3.99
52 4.19 4.19 4.16 4.11 4.04
53 4.27 4.26 4.23 4.18 4.10
54 4.35 4.34 4.31 4.25 4.16
55 4.44 4.42 4.39 4.32 4.22
56 4.53 4.51 4.47 4.40 4.29
57 4.62 4.61 4.56 4.48 4.35
58 4.72 4.71 4.65 4.56 4.42
59 4.83 4.81 4.75 4.64 4.49
60 4.95 4.93 4.86 4.73 4.55
61 5.07 5.05 4.97 4.83 4.62
62 5.20 5.17 5.08 4.92 4.69
63 5.34 5.31 5.20 5.02 4.76
64 5.49 5.45 5.33 5.12 4.83
65 5.65 5.61 5.47 5.22 4.89
66 5.82 5.77 5.61 5.33 4.96
67 6.01 5.94 5.75 5.44 5.02
68 6.20 6.13 5.91 5.54 5.08
69 6.41 6.33 6.07 5.65 5.14
70 6.64 6.54 6.23 5.76 5.19
71 6.88 6.76 6.41 5.86 5.24
72 7.14 7.00 6.59 5.97 5.28
73 7.43 7.26 6.77 6.06 5.32
74 7.73 7.53 6.96 6.16 5.35
75 8.06 7.82 7.14 6.25 5.38
Rates are based on mortality from 1983 Table a. The rates do not differ by sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
29
OPTION 3
Life Income for Two Payees
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.0%
Adjusted Ages
Second
Annuitant Annuitant Option 3a Option 3b Option 3c Option 3d Option 3e
----------------------------------------------------------------------------------------------
55 50 $ 3.69 $ 4.05 $ 4.27 $ 3.69 $ 4.03
55 55 3.88 4.25 4.47 3.87 4.14
55 60 3.99 4.44 4.71 3.98 4.42
60 55 3.99 4.44 4.71 3.98 4.42
60 60 4.24 4.71 4.99 4.23 4.57
60 65 4.38 4.97 5.32 4.38 4.93
65 60 4.38 4.97 5.32 4.38 4.93
65 65 4.72 5.33 5.70 4.71 5.14
65 70 4.93 5.68 6.15 4.91 5.66
70 65 4.93 5.68 6.15 4.91 5.66
70 70 5.40 6.21 6.70 5.36 5.96
70 75 5.69 6.68 7.32 5.62 6.67
75 70 5.69 6.68 7.32 5.62 6.67
75 75 6.37 7.45 8.15 6.23 7.12
75 80 6.78 8.11 8.99 6.54 8.13
Rates are based on mortality from 1983 Table a. The rates do not differ by sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
30
OPTION 1
Payments for a Stated Period of Time
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
Monthly Quarterly Semi-Annual Annual
Years Payment Payment Payment Payment
------------------------------------------------------------------
3 $ 29.19 $ 87.33 $ 173.91 $ 344.86
4 22.27 66.61 132.65 263.04
5 18.12 54.19 107.92 213.99
6 15.35 45.92 91.44 181.32
7 13.38 40.01 79.69 158.01
8 11.90 35.59 70.88 140.56
9 10.75 32.16 64.05 127.00
10 9.83 29.42 58.59 116.18
11 9.09 27.18 54.13 107.34
12 8.46 25.32 50.42 99.98
13 7.94 23.75 47.29 93.78
14 7.49 22.40 44.62 88.47
15 7.10 21.24 42.31 83.89
16 6.76 20.23 40.29 79.89
17 6.47 19.34 38.51 76.37
18 6.20 18.55 36.94 73.25
19 5.97 17.85 35.54 70.47
20 5.75 17.22 34.28 67.98
21 5.56 16.65 33.15 65.74
22 5.39 16.13 32.13 63.70
23 5.24 15.66 31.19 61.85
24 5.09 15.24 30.34 60.17
25 4.96 14.85 29.56 58.62
26 4.84 14.49 28.85 57.20
27 4.73 14.15 28.19 55.90
28 4.63 13.85 27.58 54.69
29 4.53 13.57 27.02 53.57
30 4.45 13.30 26.49 52.53
31
OPTION 1
Payments for a Stated Period of Time
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 5.0%
Monthly Quarterly Semi-Annual Annual
Years Payment Payment Payment Payment
-----------------------------------------------------------------
3 $ 29.80 $ 89.04 $ 176.99 $ 349.72
4 22.89 68.38 135.93 268.58
5 18.74 56.00 111.33 219.98
6 15.99 47.77 94.96 187.64
7 14.02 41.90 83.30 164.59
8 12.56 37.52 74.58 147.35
9 11.42 34.11 67.81 133.99
10 10.51 31.40 62.42 123.34
11 9.77 29.19 58.03 114.66
12 9.16 27.36 54.38 107.45
13 8.64 25.81 51.31 101.39
14 8.20 24.50 48.69 96.21
15 7.82 23.36 46.44 91.75
16 7.49 22.37 44.47 87.88
17 7.20 21.51 42.75 84.88
18 6.94 20.74 41.23 81.47
19 6.71 20.06 39.88 78.80
20 6.51 19.46 38.68 76.42
21 6.33 18.91 37.59 74.28
22 6.17 18.42 36.62 72.35
23 6.02 17.98 35.73 70.61
24 5.88 17.57 34.93 69.02
25 5.76 17.20 34.20 67.57
26 5.65 16.87 33.53 66.25
27 5.54 16.56 32.92 65.04
28 5.45 16.28 32.35 63.93
29 5.36 16.01 31.83 62.90
30 5.28 15.77 31.35 61.95
32
OPTION 2
Life Income
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.5%
Payments Guaranteed for a Stated Period of Months
Age of
Annuitant None 60 120 180 240
--------------------------------------------------------------------------------
50 $ 4.34 $ 4.34 $ 4.31 $ 4.27 $ 4.22
51 4.41 4.40 4.38 4.33 4.27
52 4.48 4.47 4.45 4.40 4.32
53 4.56 4.55 4.52 4.46 4.38
54 4.64 4.63 4.59 4.53 4.44
55 4.72 4.71 4.67 4.60 4.50
56 4.81 4.80 4.75 4.67 4.56
57 4.91 4.89 4.84 4.75 4.62
58 5.01 4.99 4.93 4.83 4.69
59 5.12 5.10 5.03 4.92 4.75
60 5.23 5.21 5.13 5.00 4.82
61 5.36 5.33 5.24 5.09 4.88
62 5.49 5.45 5.35 5.19 4.95
63 5.63 5.59 5.47 5.28 5.02
64 5.78 5.73 5.60 5.38 5.08
65 5.94 5.89 5.73 5.48 5.15
66 6.11 6.05 5.87 5.58 5.21
67 6.29 6.22 6.02 5.69 5.27
68 6.49 6.41 6.17 5.79 5.33
69 6.70 6.60 6.33 5.90 5.38
70 6.92 6.81 6.49 6.00 5.43
71 7.17 7.04 6.66 6.10 5.48
72 7.43 7.27 6.84 6.20 5.52
73 7.71 7.53 7.02 6.30 5.55
74 8.02 7.70 7.20 6.39 5.59
75 8.35 8.08 7.38 6.48 5.62
Rates are based on mortality from 1983 Table a. The rates do not differ by sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
33
OPTION 2
Life Income
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Fixed Annuity with Guaranteed Interest Rate of 5.0%
Payments Guaranteed for a Stated Period of Months
Age of
Annuitant None 60 120 180 240
--------------------------------------------------------------------------------
50 $ 5.26 $ 5.25 $ 5.22 $ 5.17 $ 5.11
51 5.33 5.32 5.28 5.23 5.15
52 5.40 5.38 5.34 5.29 5.20
53 5.47 5.45 5.41 5.35 5.26
54 5.54 5.53 5.48 5.41 5.31
55 5.63 5.61 5.56 5.47 5.36
56 5.71 5.69 5.63 5.54 5.42
57 5.80 5.78 5.72 5.61 5.47
58 5.90 5.88 5.81 5.69 5.53
59 6.01 5.98 5.90 5.77 5.59
60 6.12 6.09 6.00 5.85 5.65
61 6.24 6.21 6.10 6.93 5.71
62 6.37 6.33 6.21 6.02 5.77
63 6.51 6.46 6.33 6.11 5.83
64 6.66 6.60 6.45 6.20 5.89
65 6.82 6.75 6.57 6.30 5.95
66 6.99 6.91 6.71 6.39 6.01
67 7.17 7.08 6.85 6.49 6.06
68 7.36 7.27 6.99 6.59 6.12
69 7.57 7.46 7.15 6.69 6.17
70 7.80 7.67 7.30 6.78 6.21
71 8.05 7.89 7.47 6.88 6.25
72 8.31 8.13 7.64 6.97 6.29
73 8.59 8.38 7.81 7.06 6.33
74 8.90 8.64 7.99 7.15 6.36
75 9.23 8.93 8.16 7.23 6.38
Rates are based on mortality from 1983 Table a. The rates do not differ by sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
34
OPTION 3
Life Income for Two Payees
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
Adjusted Ages
Second
Annuitant Annuitant Option 3a Option 3b Option 3c Option 3d Option 3e
----------------------------------------------------------------------------------------------
55 50 $ 3.97 $ 4.35 $ 4.56 $ 3.97 $ 4.31
55 55 4.16 4.54 4.76 4.15 4.42
55 60 4.27 4.73 5.00 4.26 4.48
60 55 4.27 4.73 5.00 4.26 4.70
60 60 4.51 4.99 5.27 4.50 4.84
60 65 4.66 5.25 5.61 4.65 4.93
65 60 4.66 5.25 5.61 4.65 5.22
65 65 4.99 5.61 5.99 4.98 5.42
65 70 5.19 5.97 6.44 5.17 5.54
70 65 5.19 5.97 6.44 5.17 5.93
70 70 5.67 6.49 6.99 5.62 6.23
70 75 5.95 6.96 7.61 5.87 6.40
75 70 5.95 6.96 7.61 5.87 6.95
75 75 6.64 7.73 8.43 6.48 7.40
75 80 7.04 8.39 9.29 6.79 7.64
Rates are based on mortality from 1983 Table a. The rates do not differ by sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
35
OPTION 3
Life Income for Two Payees
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 5.0%
Adjusted Ages
Second
Annuitant Annuitant Option 3a Option 3b Option 3c Option 3d Option 3e
----------------------------------------------------------------------------------------------
55 50 $ 4.88 $ 5.26 $ 5.48 $ 4.88 $ 5.23
55 55 5.04 5.44 5.66 5.04 5.32
55 60 5.15 5.63 5.91 5.14 5.38
60 55 5.15 5.63 5.91 5.14 5.59
60 60 5.37 5.87 6.16 5.37 5.72
60 65 5.52 6.14 6.51 5.51 5.80
65 60 5.52 6.14 6.51 5.51 6.10
65 65 5.83 6.49 6.87 5.82 6.29
65 70 6.04 6.84 7.34 6.00 6.41
70 65 6.04 6.84 7.34 6.00 6.81
70 70 6.49 7.35 7.87 6.44 7.08
70 75 6.77 7.84 8.51 6.68 7.25
75 70 6.77 7.84 8.51 6.68 7.81
75 75 7.45 8.60 9.33 7.27 8.25
75 80 7.86 9.28 10.20 7.57 8.49
Rates are based on mortality from 1983 Table a. The rates do not differ by sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
36
[Aetna logo]
Aetna Life Insurance and Annuity Company
Home Office: 000 Xxxxxxxxxx Xxxxxx
P.O. Box 30670
Hartford, Connecticut 06150-0670
(000) 000-0000
Individual Variable, Fixed, or Combination Annuity Contract
Nonparticipating
ALL PAYMENTS AND VALUES PROVIDED BY THE CONTRACT, WHEN BASED ON INVESTMENT
EXPERIENCE OF A SEPARATE ACCOUNT, ARE VARIABLE AND ARE NOT GUARANTEED AS TO
FIXED DOLLAR AMOUNT. THIS CONTRACT CONTAINS A MARKET VALUE ADJUSTMENT FORMULA.
APPLICATION OF A MARKET VALUE ADJUSTMENT MAY RESULT IN EITHER AN INCREASE OR
DECREASE IN THE CURRENT VALUE. THE MARKET VALUE ADJUSTMENT FORMULA DOES NOT
APPLY TO A GUARANTEED TERM AT THE TIME OF ITS MATURITY.
