THRIVENT FINANCIAL FOR LUTHERANS A Fraternal Benefit Society Appleton, Wisconsin 54919
THRIVENT FINANCIAL FOR LUTHERANS
A Fraternal Benefit Society
Appleton, Wisconsin 54919
Flexible Premium
Deferred Variable Annuity
This certificate of membership and variable annuity is a legal contract
between you and Thrivent Financial for Lutherans. We issue this
contract based on the Application signed by the applicant(s) and the
payment of the first premium.
We will pay you the Annuity Income beginning on the Annuity Date
(see page 3) if an Annuitant is living on that date and this contract
is in force. If an Annuitant dies after Annuity Income payments have
begun, any amount payable will depend upon the terms of the settlement
option elected. We will pay the Death Proceeds to the beneficiary if
the death of the Annuitant, or the death of the first Annuitant to die
if this contract has two Annuitants, occurs before the Annuity Date.
The Annuity Income and Death Proceeds will be paid according to the
provisions of this contract.
Accumulated Value, Death Proceeds and Annuity Income payments, when
based on the investment experience of the Variable Account, may
increase or decrease daily and are not guaranteed as to minimum dollar
amount.
The amount of any full surrender, partial surrender or transfer of
accumulated value from Fixed Period Allocations may be increased or
decreased by a Market Value Adjustment (see Section 10.3), except that
no adjustment will be applied to surrenders or transfers made from a
Fixed Period Allocation within 30 days before the end of its allocation
period. Death Proceeds are not subject to a Market Value Adjustment.
Right to Cancel. Please read this contract carefully. You may
cancel the contract for any reason before midnight of the 10th day
after you first receive it. Do this by (1) mailing or delivering
written notice to our Service Center or to the representative through
whom you bought it, and (2) returning the contract. Notice given by
mail and return of the contract by mail are effective on being
postmarked, properly addressed and postage prepaid. If you cancel the
contract, it will be deemed void from the beginning. Within 7 days
after we receive notice of cancellation and the returned contract, we
will refund the Accumulated Value.
Flexible premium deferred variable annuity.
Annuity Income payable at Annuity Date.
Death Proceeds payable at death of Annuitant before Annuity Date.
Return on investments reflected in contract benefits.
Fixed Period Allocations subject to Market Value Adjustment.
Annual dividends payable if earned.
Signed for the Society
President
Secretary
W-BB-FPVA (02)
Table of Contents
Cover Page Index Contract Schedule, Contract Data Section 1 Definitions Section 2 General Provisions Section 3 Membership and Ownership Section 4 Premiums Section 5 Accumulated Value Section 6 Surrender Section 7 Death Proceeds Section 8 Annuity Income Section 9 Variable Account and Unit Values Section 10 Fixed Account and Fixed Period Allocations Section 11 Settlement Provisions Section 12 Beneficiary Section 13 Dividends Additional Benefits, Amendments, Endorsements, Application ---------------------------------------------------------------------------------------------------------- Index ---------------------------------------------------------------------------------------------------------- Section Section Accumulated Value..................... 5 Maintenance of Solvency............... 2 Accumulation Unit Value............... 9 Market Value Adjustment.............. 10 Allocation of Premiums................ 4 Maximum Anniversary Death Benefit..... 7 Annual Report......................... 2 Membership............................ 3 Annuitant Exchange.................... 7 Minimum Accumulated Value Required.... 5 Annuity Income........................ 8 Misstatement of Age or Sex............ 2 Annuity Unit Value.................... 9 Ownership............................. 3 Automatic Transfers................... 5 Premium Accumulation Death Benefit.... 7 Asset Rebalancing................... 5 Premiums.............................. 4 Dollar Cost Averaging............... 5 Settlement Options................... 11 Basic Death Benefit................... 7 Successor Owner....................... 3 Beneficiary.......................... 12 Surrender............................. 6 Cash Surrender Value.................. 6 Cash Surrender Value................ 6 Change in Annuity Unit Allocation..... 8 Full Surrender...................... 6 Change of Contract.................... 2 Partial Surrender................... 6 Death Proceeds........................ 7 Surrender Charge.................... 6 Delay of Payment...................... 2 Surrender of Life Income............. 11 Dividends............................ 13 Termination........................... 2 Earnings Addition Death Benefit....... 7 Transfer and Assignment............... 3 Entire Contract....................... 2 Transfer of Accumulated Values........ 5 Fixed Account........................ 10 Variable Account...................... 9 Fixed Period Allocations............. 10 Waiver of Surrender Charge............ 6 Incontestability...................... 2 THRIVENT FINANCIAL FOR LUTHERANS Service Center: 0000 Xxxxx Xxxxxxx Xxxx Thrivent Financial for Lutherans Appleton, Wisconsin 54919 0000 Xxxxx Xxxxxxx Xxxx Xxxxxxxx, XX 00000-0001 ---------------------------------------------------------------------------------------------------------- Contract Schedule Telephone (000) 000-0000 BASIC BENEFIT FLEXIBLE PREMIUM DEFERRED VARIABLE ANNUITY ANNUITY DATE: OCTOBER 1, 2032 GUARANTEED PERIOD: 10 YEARS INITIAL PREMIUM: $1,000.00 DEATH BENEFIT OPTIONS (SEE SECTION 7) MAXIMUM ANNIVERSARY DEATH BENEFIT - [INCLUDED/NOT INCLUDED] PREMIUM ACCUMULATION DEATH BENEFIT - [INCLUDED/NOT INCLUDED] EARNINGS ADDITION DEATH BENEFIT - [INCLUDED/NOT INCLUDED] ACCUMULATED VALUES IN THE VARIABLE ACCOUNT DEPEND ON THE INVESTMENT EXPERIENCE OF THE VARIABLE ACCOUNT. ---------------------------------------------------------------------------------------------------------- ANNUITANT: XXXX XXX AGE: 35 SEX: MALE ANNUITANT: XXXX XXX AGE: 35 SEX: FEMALE CONTRACT NUMBER: XX0000000 DATE OF ISSUE: OCTOBER 1, 2002 W-BB-FPVA (02) page 3 Date of Issue: OCTOBER 1, 2002 Contract Number: XX0000000 ANNUITANT: XXXX XXX ANNUITANT: XXXX XXX Flexible Premium Deferred Variable Annuity ---------------------------------------------------------------------------------------------------------- CONTRACT CHARGES ANNUAL CHARGES AS A PERCENTAGE OF AVERAGE DAILY ASSETS OF EACH SUBACCOUNT: MAXIMUM ANNUAL RISK CHARGE FOR ACCUMULATION UNIT VALUES: 1.70% FOR ANNUITY VALUES: 1.25% TRANSFER CHARGE: $25 FOR EACH TRANSFER IN EXCESS OF TWELVE IN ANY CONTRACT YEAR (SEE SECTION 5.2) SURRENDER CHARGES# PERCENT BEGINNING APPLIED 10/01/02 6% 10/01/03 5% 10/01/04 4% 10/01/05 3% 10/01/06 2% 10/01/07 1% 10/01/08 0% # SEE SECTION 6.4 FOR A FULL DESCRIPTION OF THE SURRENDER CHARGE. W-BB-FPVA (02) page 4
1. DEFINITIONS
2. GENERAL PROVISIONS
2.1 ENTIRE CONTRACT. The Entire Contract consists of:
- This contract including any attached riders, amendments or endorsements;
- The Application attached to this contract; and
- The Articles of Incorporation and Bylaws of the Society which are in force on the Date of Issue.
- The New York Stock Exchange is closed for trading; or
- The SEC requires that trading be restricted or declares an emergency.
- The date Death Proceeds are paid;
- The date you surrender this contract; and
- The date this contract terminates under Section 5.6.
3. MEMBERSHIP AND OWNERSHIP
- The date of death of the person who controls this contract;
- The date on which the person who controls this contract transfers control to the Annuitant by giving us Written Notice; and
- The Contract Anniversary after the Annuitant's 21st birthday.
- The end of the Valuation Period during which we receive proof of death; and
- The end of the Valuation Period during which we receive signed notice of the owner's or Successor Owner's election to receive the Cash Surrender Value or a later date requested in that notice and agreed to by us.
3. MEMBERSHIP AND OWNERSHIP (continued)
- Ownership may be transferred to a trust, custodian or employer, unless the plan is governed by Section 408 or 408A of the Internal Revenue Code;
- If the owner is a trust, custodian or employer, ownership may be transferred to the Annuitant; and
- Except as described above, this contract may not be sold, assigned, discounted or pledged as collateral for a loan or as security for performance of an obligation or for any other purpose to any person other than us.
If this contract is not a Qualified Plan, then before the Annuity Date:
- Ownership may be transferred subject to our approval, except that joint Annuitants who are also joint owners may not transfer ownership to a natural person; and
- This contract may be assigned as collateral.
We are not bound by any transfer or assignment unless it is in writing and filed at our Service Center. Once approved by us, transfer of ownership will be effective as of the date you signed the notice or, if the notice is not dated, on the date the notice was received in our Service Center. We are not responsible for the validity or effect of any transfer or assignment. If this contract was applied for as a juvenile contract, then ownership may be transferred only after control has been transferred to the Annuitant (see Section 3.2).
4. PREMIUMS
5. ACCUMULATED VALUE
- The number of accumulation units for this contract in that subaccount (see Section 5.5); multiplied by
- The accumulation unit value for that subaccount (see Section 9.2).
The accumulated value for any day that is not a Valuation Day will
be determined on the next Valuation Day.
The accumulated value in any Fixed Period Allocation (see Section
10.2) on any day is the sum of:
- The amount allocated or transferred to that Fixed Period Allocation; and
- Interest credited on that allocation;
Less
- The amount of any Partial Surrenders made from that allocation; and
- Accumulated value transferred from that allocation to a subaccount or to the Fixed Account.
The accumulated value in the Fixed Account (see Section 10.1) on any day is the sum of:
- Amounts allocated or transferred to the Fixed Account; and
- Interest credited to the Fixed Account.
Less
- The amount of any Partial Surrenders made from the Fixed Account; and
- Accumulated value transferred from the Fixed Account to a subaccount or a Fixed Period Allocation.
- The amount transferred from any subaccount cannot be less than the
smaller of:
- $200; and
- The accumulated value in that subaccount.
- Transfers from a Fixed Period Allocation are subject to a Market Value Adjustment.
- The amount transferred from any Fixed Period Allocation cannot be
less than the smaller of:
- $200; and
- The accumulated value in that allocation.
- The amount transferred to any Fixed Period Allocation cannot be less than $1,000.
- The amount transferred from the Fixed Account in any Contract Year may not exceed the greater of $500 and 25% of the accumulated value in the Fixed Account at the time the first transfer is made in that Contract Year.
- The transfer will occur at the end of the Valuation Period during which we receive Written Notice.
- We reserve the right to limit the number of transfers in each Contract Year. However, you may make at least twelve transfers in any Contract Year without charge. For each transfer in excess of twelve in a Contract Year, excluding automatic transfers according to Sections 5.3 and 5.4, a charge of $25 will be deducted from the amount transferred. All amounts transferred among the subaccounts, Fixed Period Allocations and the Fixed Account during any Valuation Period are considered to be one transfer. The transfer charge will be deducted from the amount transferred from the subaccounts, Fixed Period Allocations and Fixed Account according to the ratio of the Amount transferred from each to the total amount transferred.
We may delay making transfers subject to the same conditions as in Section 2.8 Delay of Payment.
5. ACCUMULATED VALUE (continued)
- Twelve transfers will be made to the subaccounts. The first transfer will be made on the later of the day the dedicated premium is received by us and the day your application for this contract is approved by us. Subsequent transfers will be made on the same day of the month in the next eleven months;
- The amount transferred each month will be equal to the accumulated value in the DCA Fixed Account divided by the number of automatic transfers remaining; and
- If you terminate automatic transfers before the twelfth transfer is made, the accumulated value in the DCA Fixed Account will be transferred to the Money Market Subaccount or, if you request, to other subaccounts.
5.3b DCA Money Market. You may elect to have automatic periodic transfers made from the Money Market Subaccount to one or more subaccounts subject to the following:
- The transfer amount must be at least $200;
- Transfers will be made periodically as specified in your application for dollar cost averaging;
- Transfers will continue until the earlier of:
- The date the amount in the Money Market Subaccount is less than the total amount scheduled to be transferred on that date, at which time the remaining amount in the subaccount will be transferred; and
- The date we receive Written Notice to terminate automatic transfers.
5. ACCUMULATED VALUE (continued)
- Premiums are allocated to the subaccount; or
- Accumulated value is transferred to the subaccount from other subaccounts, from Fixed Period Allocations or from the Fixed Account; or
- Upon an Annuitant Exchange (see section 7.6), any excess of Death Proceeds over Accumulated Value is allocated to the subaccount.
The number of accumulation units decreases when, during the Valuation Period:
- Accumulated value is transferred from the subaccount to other subaccounts, to Fixed Period Allocations or to the Fixed Account; or
- Partial Surrenders are applied against the subaccount; or
- Transfer charges are applied against the subaccount.
The increase or decrease in the number of accumulation units for this contract in any subaccount is equal to:
- The dollar amount allocated or transferred to or from that
subaccount;
Divided by
- The accumulation unit value for that subaccount at the end of the Valuation Period during which the amounts are allocated or transferred.
- The Accumulated Value is less than $600; and
- No premium payment has been received at our Service Center for at least 36 months.
We will notify you 60 days prior to termination of the contract. Upon termination we will pay you the Accumulated Value.
6. SURRENDER
- The day we receive Written Notice; and
- The date you specify.
- The Accumulated Value; plus
- Any Market Value Adjustment applied to Fixed Period Allocations (see Section 10.3); minus
- Any Surrender Charge (see Section 6.4).
- Must be at least $200;
- Will reduce the Accumulated Value by the amount surrendered. This
is the sum of:
- The amount you request;
- Any Market Value Adjustment applied to Fixed Period Allocations; and
- Any Surrender Charge.
The Partial Surrender will be taken from the subaccounts of the Variable Account, Fixed Period Allocations and the Fixed Account according to the ratio for this contract of the accumulated value in each subaccount, each Fixed Period Allocation and the Fixed Account to the Accumulated Value of the contract. Any Market Value Adjustment will be taken from the Fixed Period Allocations only. Any amounts taken from Fixed Period Allocations will be taken in first-in, first-out order. With our approval, you may choose other allocations from the subaccounts, Fixed Period Allocations and the Fixed Account;
- Must not reduce the contract's remaining Accumulated Value to less than $600; and
- Will be effective on the later of:
- The day we receive Written Notice; and
- The date you specify.
6. SURRENDER (continued)
- For any surrender made more than three years after the Date of
Issue, no Surrender Charge will be deducted from the portion of the
Accumulated Value surrendered which is paid under:
- Option 2, 3 or 3V of Section 11.2 provided that payments will be made for at least three years and that the proceeds may not be withdrawn; or
- Option 4, 4V, 5 or 5V of Section 11.2 or any other life income option agreed to by us; and
- In each Contract Year you may surrender without a Surrender Charge up to 10% of the Accumulated Value existing at the time the first surrender is made in that Contract Year.
6.5 WAIVER OF SURRENDER CHARGE. We will waive the Surrender Charge if the surrender is made:
- During or within 90 days after the end of the confinement of an
Annuitant or an Annuitant's spouse in a licensed hospital, nursing
home or hospice provided that confinement:
- Begins while this contract is in force; and
- Continues for at least 30 consecutive days.
- During Total Disability of an Annuitant or within 90 days after
that Total Disability ends. Total Disability is a disability:
- Which begins while this contract is in force and before the Annuitant attains age 65;
- Xxxxx has continued for six consecutive months. A new six-month disability requirement will apply to each separate period of disability. Periods of disability are separate if (i) the disability in a later period neither results from nor is contributed to by the same cause or causes as the disability in a prior period, or (ii) the later period of disability begins after a continuous period of six months during which the Annuitant was gainfully employed;
- Which results from bodily injury sustained or disease which first appears while this contract is in force; and
- Which completely prevents the Annuitant from engaging in an Occupation for gain or profit. During the first 24 months of disability, Occupation is the Annuitant's regular occupation when the disability begins. After this, it is any occupation for which the Annuitant is or becomes qualified by reason of education, training or experience. However, if the Annuitant is primarily a homemaker when Total Disability begins, Occupation for gain or profit means performing household duties.
- When an Annuitant or an Annuitant's spouse has a life expectancy of twelve months or less. We will require proof satisfactory to us, including certification by a physician having the designation M.D. or a doctor of osteopathy having the designation D.O. acting within the legal scope of his or her license. The certifying physician or doctor may not be you or an Annuitant or a member of your family or an Annuitant's family. We may, at our expense, require independent medical verification.
- While an Annuitant is unemployed and receiving state unemployment benefits or within 90 days after unemployment benefits cease provided that: a) Unemployment begins while this contract is in force; and b) Unemployment continues for at least 90 consecutive days. We will require proof of unemployment satisfactory to us.
7. DEATH PROCEEDS
7.1 DEATH PROCEEDS. Death Proceeds for any beneficiary is calculated on the later of:
- The end of the Valuation Period during which we receive proof of death of an Annuitant; and
- The end of the Valuation Period during which we first receive signed notice of a beneficiary's election to receive Death Proceeds or any later date requested in that notice and agreed to by us.
After we receive a beneficiary's election, proceeds payable to
other beneficiaries, if any, will earn interest at the rate payable in
Option 1 - Interest Income (see Section 11.2) or, if greater, the rate
required by law. If we do not receive any beneficiary's election
within one year after the date we receive proof of death, then Death
Proceeds will be calculated and applied under Option 1 - Interest
Income. If this contract was issued as a Qualified Plan, then election
must be made by December 31 of the year following the calendar year of
death.
Death Proceeds is the sum of (1) and (2) where
- Is the greatest of:
- The Basic Death Benefit (see Section 7.2);
- The Maximum Anniversary Death Benefit, if any (see Section 7.3); and
- The Premium Accumulation Death Benefit, if any (see Section 7.4).
- Is the Earnings Addition Death Benefit, if any (see Section 7.5).
- As of the day a premium is received by us, the sum is increased by the amount of that premium.
- As of the day that a Partial Surrender is made, the sum is decreased by the same proportion as the Accumulated Value was decreased by that surrender.
- As of the day a premium is received by us, the benefit is increased by the amount of that premium.
- As of the day that a Partial Surrender is made, the benefit is decreased by the same proportion as the Accumulated Value was decreased by that surrender.
On any day after any Annuitant has attained age 80, the Maximum
Anniversary Death Benefit is equal to the amount calculated above on
the age 80 Contract Anniversary adjusted as in (1) and (2) above for
any premiums paid or Partial Surrenders made after that anniversary.
If this contract has been continued under the Annuitant Exchange
(see Section 7.6), then the amount above will be determined only for
Contract Anniversaries after the Exchange Date.
7. DEATH PROCEEDS (continued)
- The accumulation at 5% effective annual interest of premiums received by us adjusted for any Partial Surrenders. As of the day that a Partial Surrender is made, the accumulated premiums are decreased by the same proportion as the Accumulated Value was decreased by the surrender; and
- Two times the adjusted sum of premiums as determined in Section 7.2 Basic Death Benefit.
- The adjusted sum of premiums as determined in Section 7.2 Basic Death Benefit; and
- The amount by which the Accumulated Value on that date exceeds the amount in (1).
8. ANNUITY INCOME
- The dollar amount of the first annuity payment provided by that
subaccount;
Divided by
- The annuity unit value for that subaccount (See Section 9.3) on the Valuation Day on which the first payment is calculated.
After the first payment, the number of annuity units payable from each subaccount will not change unless you request a change in allocation as provided in Section 8.3 or a reduction factor applies under Option 5V of Section 11.2. The dollar amount payable from any subaccount will be equal to:
- The number of units payable from that subaccount;
Multiplied by
- The annuity unit value for that subaccount on the Valuation Day on which the payment is calculated.
- Will occur at the end of the Valuation Period during which we receive Written Notice;
- Will be based on annuity unit values for the subaccounts on that day; and
- May be made not more than twelve times in any Contract Year.
Any change in allocation of annuity units will affect future Annuity Income payments. The selected plan of settlement cannot be changed.
9. VARIABLE ACCOUNT AND UNIT VALUES
9.1 VARIABLE ACCOUNT. Premiums and Accumulated Value may be
allocated or transferred to subaccounts of the Variable Account. The
Variable Account is a separate investment account of the Society which
is registered with the SEC as a unit investment trust. The Variable
Account has subaccounts which invest in the corresponding underlying
portfolios of one or more diversified open-end management investment
companies, each of which is registered with the SEC. Each subaccount
purchases shares in a specific portfolio at net asset value. If a
portfolio is no longer available or we no longer consider it suitable
for investment, we may substitute another portfolio or invest in a
different investment company. We may also add, delete, combine or
modify subaccounts, combine the Variable Account with another separate
account or invest in a different separate account.
We own the assets of the Variable Account. Income and realized and
unrealized gains and losses from each subaccount of the Variable
Account are credited to or charged against that subaccount. Assets of
the Variable Account at any time will be at least equal to the reserves
and other liabilities of the Variable Account. These assets may not be
charged with liabilities from any other business we conduct. We may
transfer assets in excess of Variable Account reserves and liabilities
to our General Account.
9.2 ACCUMULATION UNIT VALUE. The initial accumulation unit value
for each subaccount was set when the subaccount was established. At
the end of any subsequent Valuation Period, the accumulation unit value
for a subaccount is equal to:
- The accumulation unit value for the subaccount at the end of the
prior Valuation Period;
Multiplied by
- The Net Investment Factor (see Section 9.4) for accumulation unit values for the subaccount for that period.
Accumulation unit values are determined at the end of each
Valuation Period before the transfer or allocation of any amounts to or
from the subaccounts. The accumulation unit values may increase or
decrease on each Valuation Day.
9.3 ANNUITY UNIT VALUE. The initial annuity unit value for each
subaccount was equal to the initial accumulation unit value for that
subaccount. For any assumed interest rate, the annuity unit value at
the end of any subsequent Valuation Period for a subaccount is equal
to:
- The annuity unit value for the subaccount at the end of the prior
Valuation Period;
Multiplied by
- The Net Investment Factor (see Section 9.4) for annuity values for
the subaccount for that period;
Multiplied by
- A discount factor equivalent to the assumed interest rate.
Annuity unit values are determined at the end of each Valuation Period before the transfer or allocation of any amounts to or from the subaccounts. The annuity unit values may increase or decrease on each Valuation Day.
9. VARIABLE ACCOUNT AND UNIT VALUES (continued)
9.4 NET INVESTMENT FACTORS. The Net Investment Factor for a subaccount measures the investment performance of that subaccount. For each Valuation Period, the Net Investment Factor for a subaccount is determined by dividing (1) by (2) and then subtracting (3) where:
- Is the sum of:
- The net asset value per share of the corresponding portfolio at the end of the Valuation Period; plus
- The per share amount of any dividend or capital gain distribution made by the portfolio if the "ex-dividend" date occurs during the Valuation Period; plus or minus
- A per share charge or credit for any taxes reserved for that we determine to be a result of the investment operation of the portfolio.
- Is the net asset value per share of the corresponding portfolio at the end of the prior Valuation Period.
- Is the charge for mortality and expense risks that we deduct for each day in the Valuation Period and is based upon the daily accumulated value in each subaccount. For accumulation unit values, this charge may be also based upon the total accumulated value in the subaccounts and is guaranteed not to exceed, on annual basis, the Maximum Annual Risk Charge for accumulation unit values shown on page 4. For annuity unit values, the risk charge is guaranteed not to exceed, on annual basis, the Maximum Annual Risk Charge for annuity unit values shown on page 4.
10. FIXED ACCOUNT AND FIXED PERIOD ALLOCATIONS
10.1 FIXED ACCOUNT. Amounts allocated to the Fixed Account are invested with our General Account assets. Interest will be credited on premiums allocated to the Fixed Account and on accumulated value transferred to the Fixed Account from the date of allocation or transfer. The rate credited depends on the date of allocation or transfer to the Fixed Account. We guarantee that the initial interest rate for each amount allocated or transferred to the Fixed Account will be effective for at least twelve months, and subsequent interest rates will not be changed more often than once every twelve months. Interest is compounded daily and the effective annual interest rate will never be less than 3%. Partial Surrenders, transfers and transfer charges will be taken from the Fixed Account on a last-in, first-out basis. For purposes of this determination, interest credited on any amount allocated or transferred to the Fixed Account will be deemed to have been credited on the date that amount was allocated or transferred.
10. FIXED ACCOUNT AND FIXED PERIOD ALLOCATIONS (continued)
10.2 FIXED PERIOD ALLOCATIONS. Premiums and Accumulated Value may
be allocated or transferred to Fixed Period Allocations. Interest is
guaranteed on Fixed Period Allocations from the date of allocation or
transfer until the end of the allocation period selected. Each Fixed
Period Allocation must be at least $1,000. Accumulated value which is
surrendered or transferred from a Fixed Period Allocation more than 30
days before the end of its allocation period is subject to a Market
Value Adjustment.
For each amount allocated or transferred to a Fixed Period
Allocation, you elect an allocation period then offered by us.
Interest rates that apply to new Fixed Period Allocations depend upon
the date of allocation and the allocation period selected, and are
guaranteed for the entire period. Interest is compounded daily and
the effective annual interest rate will never be less than 3%. We will
notify you of the interest rate applicable to each Fixed Period
Allocation when we confirm your allocation.
We will give you at least 30 days notice of the expiry date of each
Fixed Period Allocation. Unless you give Written Notice before the
expiry date to surrender or transfer the accumulated value for that
allocation, the accumulated value will be applied as a new Fixed Period
Allocation on the expiry date. The allocation period will be the same
as the period just ended, provided that period does not extend beyond
the Annuity Date and is still offered by us. Otherwise, the allocation
period will be the longest period then offered by us that does not
extend beyond the Annuity Date. If the amount of the allocation is
less than $1,000 or if all allocation periods then offered would extend
beyond the Annuity Date, the accumulated value will be transferred to
the Money Market Subaccount. The first-in, first-out accounting method
will be used for surrenders and transfers from Fixed Period
Allocations.
10.3 MARKET VALUE ADJUSTMENT. A Market Value Adjustment will apply
to accumulated value which is surrendered or transferred from a Fixed
Period Allocation more than 30 days before the end of its allocation
period. The adjustment may increase or decrease the amount surrendered
or transferred. The Market Value Adjustment is determined by
multiplying the amount surrendered or transferred by:
(n/12) [(1 + i) / (1 + j + .0025)] - 1
where:
i is the Treasury Rate for the week prior to the date of allocation
for a maturity equal to the allocation period for the Fixed Period
Allocation from which the surrender or transfer is being made;
j is the Treasury Rate for the week prior to the date of surrender or
transfer for a maturity equal to the number of whole months remaining
in that allocation period. If fewer than twelve months remain, we
will use the Treasury Rate for a maturity of one year; and
n is the number of whole months remaining in that allocation period.
If a Treasury Rate is not available for a maturity of n months,
then j will be determined by linear interpolation of rates for maturity
periods closest to n months.
Market Value Adjustments will be applied after any transfer charges
and before any Surrender Charges. We guarantee that Market Value
Adjustments will not reduce interest earned on amounts allocated to
Fixed Period Allocations to less than an effective annual rate,
compounded daily, of 3%.
11. SETTLEMENT PROVISIONS
11. SETTLEMENT PROVISIONS (continued)
Fixed Annuity Payment Option 5 and Variable Annuity Payment Option
5V - Joint and Survivor Life Income with Guaranteed Period. We will
pay an income as long as at least one of the two payees is alive. A
guaranteed period of up to 360 months may be elected. If one payee
dies during the guaranteed period, payments will continue for the
lifetime of the surviving payee. Before the first payment is made
under this option, a reduction factor may be elected which will reduce
any payments made after the guaranteed period by the elected reduction
factor if only one payee is then living. Payments made during the
guaranteed period will be larger if a reduction factor is elected. If
both payees die during the guaranteed period, payments will be
continued to the end of that period and will be paid to the payee's
beneficiary. After the first payment is made, this option may not be
revoked or changed except as described in Section 11.4
Guaranteed payments for Options 5 and 5V for male and female payees
at selected ages and guaranteed periods of 10 and 20 years are shown on
pages 23, 24 and 25. The incomes are based on the Annuity Table 2000
using the sex and adjusted age of the payee on the date the first
payment is due. Under Option 5, we use an effective annual interest
rate of 3%, and the income will not be less than the amount shown.
Under Option 5V, an assumed effective annual interest rate of 3%, 4% or
5% may be elected and the first monthly payment for any subaccount will
be the amount shown for the rate elected.
Adjusted Age. As used in Options 4, 4V, 5 and 5V, adjusted age is
the age nearest birthday decreased by the adjustment shown below:
Year of First Age Payment Adjustment 2000-2009 0 2010-2019 1 2020-2029 2 2030-2039 3 2040-2049 4 2050-2059* 5 * For each succeeding decade, the age adjustment continues to increase by 1.
- The manner of settlement has not been restricted before the owner's death;
- The Death Proceeds or Cash Surrender Value has not been paid; and
- Either:
- The principal and interest are completely distributed within 5 years after the date of death; or
- If the payee is a natural person, distribution the principal
and interest is made by means of a periodic which:
- Begins within one year after the date of death; and
- Is not guaranteed for a period which extends beyond the life expectancy of the payee.
Election of an option is subject to these conditions:
- Payments must not be less than $50; and
- Payments are made only at annual, semiannual, quarterly or monthly intervals.
11. SETTLEMENT PROVISIONS (continued)
If annuity payments would be or become less than $50, we reserve the
right to change the frequency of payments to an interval such that
payments are not less than $50.
Death Proceeds will be calculated and applied under Option 1 - Interest
Income if the beneficiary does not receive proceeds or elect a
settlement option:
- Within one year after the date of death of the Annuitant, if this contract is not a Qualified Plan; or
- By December 31 of the year following the year of death, if this contract was issued as a Qualified Plan.
OPTIONS 3 and 3V - 3% Option 3 - Guaranteed Monthly Payments for Each $1,000 of Proceeds Option 3V - First Monthly Payment for Each $1,000 of Proceeds ------------------------------------------------------------------------------------------------------------------------ Years Monthly Years Monthly Years Monthly Years Monthly Years Monthly Payable Payment Payable Payment Payable Payment Payable Payment Payable Payment ------------------------------------------------------------------------------------------------------------------------ 1 84.46 7 13.16 13 7.71 19 5.72 25 4.70 2 42.85 8 11.68 14 7.25 20 5.51 26 4.58 3 28.99 9 10.53 15 6.86 21 5.31 27 4.47 4 22.06 10 9.61 16 6.52 22 5.14 28 4.37 5 17.90 11 8.86 17 6.22 23 4.98 29 4.27 6 15.13 12 8.23 18 5.96 24 4.84 30 4.18 ------------------------------------------------------------------------------------------------------------------------ Annual, Semiannual of Quarterly payments are 11.839, 5.963 and 2.992 respectively, times the Monthly payment ------------------------------------------------------------------------------------------------------------------------ OPTION 3V - 4% First Monthly Payment for Each $1,000 of Proceeds ------------------------------------------------------------------------------------------------------------------------ Years Monthly Years Monthly Years Monthly Years Monthly Years Monthly Payable Payment Payable Payment Payable Payment Payable Payment Payable Payment ------------------------------------------------------------------------------------------------------------------------ 1 84.83 7 13.59 13 8.16 19 6.21 25 5.22 2 43.25 8 12.11 14 7.72 20 6.00 26 5.10 3 29.39 9 10.97 15 7.33 21 5.81 27 4.99 4 22.47 10 10.05 16 7.00 22 5.64 28 4.89 5 18.32 11 9.31 17 6.70 23 5.49 29 4.80 6 15.56 12 8.69 18 6.44 24 5.35 30 4.71 ------------------------------------------------------------------------------------------------------------------------ Annual, Semiannual of Quarterly payments are 11.788, 5.951 and 2.990 respectively, times the Monthly payment ------------------------------------------------------------------------------------------------------------------------ OPTION 3V - 5% First Monthly Payment for Each $1,000 of Proceeds ------------------------------------------------------------------------------------------------------------------------ Years Monthly Years Monthly Years Monthly Years Monthly Years Monthly Payable Payment Payable Payment Payable Payment Payable Payment Payable Payment ------------------------------------------------------------------------------------------------------------------------ 1 85.20 7 14.02 13 8.63 19 6.71 25 5.75 2 43.64 8 12.55 14 8.19 20 6.51 26 5.64 3 29.79 9 11.41 15 7.81 21 6.32 27 5.54 4 22.88 10 10.50 16 7.48 22 6.16 28 5.44 5 18.74 11 9.76 17 7.19 23 6.01 29 5.35 6 15.98 12 9.15 18 6.94 24 5.88 30 5.27 ------------------------------------------------------------------------------------------------------------------------ Annual, Semiannual of Quarterly payments are 11.737, 5.94 and 2.988 respectively, times the Monthly payment ------------------------------------------------------------------------------------------------------------------------ OPTIONS 4 and 4V - 3% Male Payee - Monthly Life Income ------------------------------------------------------------------------------------------------------------------ Option 4 - Guaranteed Monthly Life Income for Each $1,000 of Proceeds Option 4V - First Monthly Life Income Payment for Each $1,000 of Proceeds ------------------------------------------------------------------------------------------------------------------ Adjusted Payments Payments Adjusted Payments Payments Adjusted Payments Payments Age of Age of Payee Guaranteed Guaranteed Payee Guaranteed Guaranteed Age of Payee Guaranteed Guaranteed on Date of for for on Date of for for on Date of for for First Payment 10 years 20 years First 10 years 20 years First 10 years 20 years Payment Payment ------------------------------------------------------------------------------------------------------------------ 40 3.53 3.50 65 5.48 4.88 75 7.08 5.36 66 5.62 4.94 76 7.25 5.39 45 3.76 3.70 67 5.77 5.00 77 7.43 5.41 50 4.05 3.95 68 5.92 5.06 78 7.61 5.43 55 4.41 4.24 69 6.07 5.11 79 7.78 5.45 ------------------------------------------------------------------------------------------------------------------ 60 4.88 4.56 70 6.23 5.16 61 4.99 4.62 71 6.39 5.21 80 7.95 5.46 62 5.10 4.69 72 6.56 5.25 85 8.69 5.50 63 5.23 4.75 73 6.73 5.29 90 9.20 5.51 64 5.35 4.82 74 6.90 5.33 95 9.49 5.51 ------------------------------------------------------------------------------------------------------------------ Female Payee - Monthly Life Income ------------------------------------------------------------------------------------------------------------------ Option 4 - Guaranteed Monthly Life Income for Each $1,000 of Proceeds Option 4V - First Monthly Life Income Payment for Each $1,000 of Proceeds ------------------------------------------------------------------------------------------------------------------ Adjusted Payments Payments Adjusted Payments Payments Adjusted Payments Payments Age of Age of Payee Guaranteed Guaranteed Payee Guaranteed Guaranteed Age of Payee Guaranteed Guaranteed on Date of for for on Date of for for on Date of for for First Payment 10 years 20 years First 10 years 20 years First 10 years 20 years Payment Payment ------------------------------------------------------------------------------------------------------------------ 65 5.07 4.71 75 6.67 5.31 40 3.37 3.35 66 5.20 4.78 76 6.86 5.35 45 3.57 3.54 67 5.33 4.85 77 7.06 5.38 50 3.81 3.76 68 5.47 4.92 78 7.26 5.40 55 4.13 4.03 69 5.62 4.99 79 7.46 5.43 ------------------------------------------------------------------------------------------------------------------ 60 4.54 4.35 70 5.78 5.05 80 7.66 5.45 61 4.63 4.42 71 5.94 5.11 62 4.73 4.49 72 6.11 5.17 85 8.55 5.50 63 4.84 4.57 73 6.29 5.22 90 9.15 5.51 64 4.95 4.64 74 6.48 5.27 95 9.47 5.51 ------------------------------------------------------------------------------------------------------------------ OPTIONS 5 and 5V - 3% Male and Female Payees - Monthly Life Income ------------------------------------------------------------------------------------------------------------------ Option 5 - Guaranteed Monthly Life Income for Each $1,000 of Proceeds Option 5V - First Monthly Life Income Payment for Each $1,000 of Proceeds ------------------------------------------------------------------------------------------------------------------ Adjusted Age Payment Guaranteed for 10 Years Payment Guaranteed for 20 Years of Male Payee on Date of First Payment ---------------------------------------------------------------------------------------------------- Adjusted Age of Female Payee on Date of First Adjusted Age of Female Payee on Date of First Payment Payment ---------------------------------------------------------------------------------------------------- 60 65 70 75 60 65 70 75 ------------------------------------------------------------------------------------------------------------------ 60 4.10 4.31 4.51 4.66 4.07 4.26 4.40 4.50 65 4.24 4.54 4.83 5.08 4.19 4.44 4.65 4.79 70 4.36 4.73 5.13 5.52 4.27 4.57 4.84 5.03 75 4.43 4.87 5.38 5.92 4.32 4.66 4.96 5.19 ------------------------------------------------------------------------------------------------------------------ Rates not shown will be calculated on the same basis as the above rates and will be provide upon request. ------------------------------------------------------------------------------------------------------------------ OPTION 4V - 4% Male Payee - Monthly Life Income ------------------------------------------------------------------------------------------------------------------ First Monthly Life Income Payment for Each $1,000 of Proceeds ------------------------------------------------------------------------------------------------------------------ Adjusted Payments Payments Adjusted Payments Payments Adjusted Payments Payments Age of Age of Payee Guaranteed Guaranteed Payee Guaranteed Guaranteed Age of Payee Guaranteed Guaranteed on Date of for for on Date of for for on Date of for for First Payment 10 years 20 years First 10 years 20 years First 10 years 20 years Payment Payment ------------------------------------------------------------------------------------------------------------------ 40 4.14 4.10 65 6.04 5.41 75 7.60 5.86 66 6.17 5.46 76 7.77 5.88 45 4.36 4.29 67 6.31 5.52 77 7.94 5.91 50 4.64 4.52 68 6.46 5.57 78 8.11 5.92 55 4.99 4.80 69 6.61 5.62 79 8.28 5.94 ------------------------------------------------------------------------------------------------------------------ 60 5.44 5.10 70 6.77 5.67 80 8.44 5.96 61 5.55 5.16 71 6.93 5.72 62 5.66 5.22 72 7.09 5.76 85 9.16 5.99 63 5.78 5.29 73 7.26 5.79 90 9.66 6.00 64 5.91 5.35 74 7.43 5.83 95 9.94 6.00 ------------------------------------------------------------------------------------------------------------------ Female Payee - Monthly Life Income ------------------------------------------------------------------------------------------------------------------ First Monthly Life Income Payment for Each $1,000 of Proceeds ------------------------------------------------------------------------------------------------------------------ Adjusted Payments Payments Adjusted Payments Payments Adjusted Payments Payments Age of Age of Payee Guaranteed Guaranteed Payee Guaranteed Guaranteed Age of Payee Guaranteed Guaranteed on Date of for for on Date of for for on Date of for for First Payment 10 years 20 years First 10 years 20 years First 10 years 20 years Payment Payment ------------------------------------------------------------------------------------------------------------------ 40 3.99 3.97 65 5.63 5.24 75 7.19 5.81 66 5.75 5.31 76 7.38 5.84 45 4.17 4.13 67 5.88 5.38 77 7.57 5.87 50 4.40 4.34 68 6.02 5.44 78 7.77 5.90 55 4.70 4.60 69 6.16 5.51 79 7.97 5.92 ------------------------------------------------------------------------------------------------------------------ 60 5.10 4.90 70 6.32 5.57 61 5.19 4.97 71 6.48 5.62 80 8.16 5.94 62 5.29 5.04 72 6.64 5.68 85 9.03 5.99 63 5.40 5.10 73 6.82 5.73 90 9.60 6.00 64 5.51 5.17 74 7.00 5.77 95 9.91 6.00 ------------------------------------------------------------------------------------------------------------------ OPTION 5V - 4% Male and Female Payees - Monthly Life Income ------------------------------------------------------------------------------------------------------------------ First Monthly Life Income Payment for Each $1,000 of Proceeds ------------------------------------------------------------------------------------------------------------------ Adjusted Age Payment Guaranteed for 10 Years Payment Guaranteed for 20 Years of Male Payee on Date of First Payment ---------------------------------------------------------------------------------------------------- Adjusted Age of Female Payee on Date of First Adjusted Age of Female Payee on Date of First Payment Payment ---------------------------------------------------------------------------------------------------- 60 65 70 75 60 65 70 75 ------------------------------------------------------------------------------------------------------------------ 60 4.66 4.87 5.06 5.21 4.62 4.80 4.95 5.04 65 4.80 5.08 5.37 5.62 4.74 4.98 5.18 5.31 70 4.91 5.27 5.66 6.05 4.82 5.11 5.36 5.54 75 4.99 5.42 5.91 6.44 4.87 5.19 5.48 5.69 ------------------------------------------------------------------------------------------------------------------ Rates not shown will be calculated on the same basis as the above rates and will be provide upon request. ------------------------------------------------------------------------------------------------------------------ OPTION 4V - 5% Male Payee - Monthly Life Income ------------------------------------------------------------------------------------------------------------------ First Monthly Life Income Payment for Each $1,000 of Proceeds ------------------------------------------------------------------------------------------------------------------ Adjusted Payments Payments Adjusted Payments Payments Adjusted Payments Payments Age of Age of Payee Guaranteed Guaranteed Payee Guaranteed Guaranteed Age of Payee Guaranteed Guaranteed on Date of for for on Date of for for on Date of for for First Payment 10 years 20 years First 10 years 20 years First 10 years 20 years Payment Payment ------------------------------------------------------------------------------------------------------------------ 40 4.78 4.74 65 6.61 5.95 75 8.12 6.37 66 6.74 6.01 76 8.29 6.40 45 4.99 4.91 67 6.87 6.06 77 8.46 6.42 50 5.25 5.13 68 7.02 6.11 78 8.62 6.44 55 5.59 5.38 69 7.16 6.16 79 8.78 6.45 ------------------------------------------------------------------------------------------------------------------ 60 6.03 5.66 70 7.32 6.20 61 6.13 5.72 71 7.47 6.24 80 8.94 6.47 62 6.24 5.78 72 7.63 6.28 85 9.64 6.50 63 6.36 5.84 73 7.79 6.31 90 10.12 6.51 64 6.48 5.89 74 7.96 6.35 95 10.39 6.51 ------------------------------------------------------------------------------------------------------------------ Female Payee - Monthly Life Income ------------------------------------------------------------------------------------------------------------------ First Monthly Life Income Payment for Each $1,000 of Proceeds ------------------------------------------------------------------------------------------------------------------ Adjusted Payments Payments Adjusted Payments Payments Adjusted Payments Payments Age of Age of Payee Guaranteed Guaranteed Payee Guaranteed Guaranteed Age of Payee Guaranteed Guaranteed on Date of for for on Date of for for on Date of for for First Payment 10 years 20 years First 10 years 20 years First 10 years 20 years Payment Payment ------------------------------------------------------------------------------------------------------------------ 40 4.63 4.61 65 6.20 5.79 75 7.72 6.33 66 6.32 5.86 76 7.91 6.36 45 4.80 4.76 67 6.44 5.92 77 8.10 6.39 50 5.02 4.95 68 6.58 5.98 78 8.29 6.41 55 5.31 5.19 69 6.72 6.04 79 8.48 6.43 ------------------------------------------------------------------------------------------------------------------ 60 5.69 5.47 70 6.87 6.10 61 5.78 5.54 71 7.03 6.15 80 8.67 6.45 62 5.87 5.60 72 7.19 6.20 85 9.51 6.50 63 5.98 5.66 73 7.36 6.25 90 10.07 6.51 64 6.08 5.73 74 7.54 6.29 95 10.37 6.51 ------------------------------------------------------------------------------------------------------------------ OPTION 5V - 5% Male and Female Payees - Monthly Life Income ------------------------------------------------------------------------------------------------------------------ First Monthly Life Income Payment for Each $1,000 of Proceeds ------------------------------------------------------------------------------------------------------------------ Adjusted Age Payment Guaranteed for 10 Years Payment Guaranteed for 20 Years of Male Payee on Date of First Payment ---------------------------------------------------------------------------------------------------- Adjusted Age of Female Payee on Date of First Adjusted Age of Female Payee on Date of First Payment Payment ---------------------------------------------------------------------------------------------------- 60 65 70 75 60 65 70 75 ------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------ 60 5.25 5.45 5.63 5.79 5.21 5.38 5.51 5.60 65 5.38 5.65 5.93 6.18 5.32 5.54 5.73 5.86 70 5.49 5.84 6.22 6.59 5.40 5.66 5.91 6.07 75 5.57 5.98 6.46 6.98 5.44 5.74 6.02 6.22 ------------------------------------------------------------------------------------------------------------------ Rates not shown will be calculated on the same basis as the above rates and will be provide upon request. ------------------------------------------------------------------------------------------------------------------
12. BENEFICIARY
- Designate a contingent beneficiary; or
- Take as a lump sum the present value of the Annuity Income remaining payable to the end of the Guaranteed Period. The value will be based on the interest rate used to determine the Annuity Income.
- Proceeds or income will be paid to the primary beneficiaries who are then alive.
- If no primary beneficiaries are living, proceeds or income will be paid to the surviving contingent beneficiaries.
- If no beneficiaries survive, any Death Proceeds payable or the present value of any Annuity Income remaining payable will be paid to you, if living, otherwise to your estate.
13. DIVIDENDS
Cash. Dividends are paid in cash.
Payment of Premium. Dividends are applied as an additional
premium payment and allocated to the Fixed Account on the Contract
Anniversary.
THRIVENT FINANCIAL FOR LUTHERANS
A Fraternal Benefit Society
Appleton, Wisconsin 54919
Flexible Premium
Deferred Variable Annuity
Flexible premium deferred variable annuity.
Annuity Income payable at Annuity Date.
Death Proceeds payable at death of Annuitant before Annuity Date.
Return on investments reflected in contract benefits.
Fixed Period Allocations subject to Market Value Adjustment.
Annual dividends payable if earned.