[SAFECO LOGO] Safeco Life Insurance Company
P.O. Box 3882
Seattle, WA 98124-3882
This is a legal Contract between the Owner (referred to in this Contract as
"you" and "your") and Safeco Life Insurance Company (referred to in this
Contract as "Safeco Life", "our", "us", and "we"). Safeco Life is a stock
company with its Home Office in Redmond, Washington.
This Contract is issued in consideration of the application and payment of the
initial Purchase Payment. Safeco Life will make annuity payments, beginning on
the Annuity Date, or pay a death benefit, subject to the terms of this Contract.
Safeco Life has executed and attested this Contract as of the contract date at
our Home Office in Redmond, Washington.
IF YOU HAVE QUESTIONS, COMMENTS, OR COMPLAINTS, PLEASE CONTACT SAFECO LIFE AT
1-800-4SAFECO (472-3326).
READ YOUR CONTRACT CAREFULLY
RIGHT TO EXAMINE THE CONTRACT: [If for any reason you are not satisfied with
this Contract, you may return it within 10 days from the date you received it to
Safeco Life or to the registered representative who sold you this Contract. When
we receive this Contract, we will refund your Contract Value. This may be more
or less than your Purchase Payments.]
Signed for Safeco Life Insurance Company by:
/s/ X.X. Xxxx /s/ Xxxxxxx X. Xxxxxx
X.X. Xxxx Xxxxxxx X. Xxxxxx
Xx. Vice President and Secretary President
INDIVIDUAL FLEXIBLE PREMIUM DEFERRED VARIABLE ANNUITY
NON-PARTICIPATING
THIS IS A VARIABLE ANNUITY CONTRACT. WHEN YOUR CONTRACT VALUE AND ANNUITY
PAYMENTS ARE BASED ON THE INVESTMENT EXPERIENCE OF THE PORTFOLIOS, THE DOLLAR
AMOUNTS ARE NOT GUARANTEED AND WILL INCREASE OR DECREASE. ALL VALUES AND
PAYMENTS BASED ON THE GUARANTEED INTEREST PERIOD FIXED ACCOUNT OPTION, WHEN
TAKEN BEFORE THE END OF A GUARANTEED PERIOD, MAY BE SUBJECT TO A MARKET VALUE
ADJUSTMENT. THE MARKET VALUE ADJUSTMENT MAY CAUSE SUCH VALUES AND PAYMENTS TO
INCREASE OR DECREASE. SEE "PURCHASE PAYMENT PROVISIONS", "INVESTMENT OPTIONS",
AND "ANNUITY PAYMENT PROVISIONS" FOR DETAILS.
Safeco(R) and the Safeco logo are trademarks of Safeco Corporation.
CONTRACT DATA PAGE
PRODUCT: SPINNAKER(R) ADVISOR VARIABLE ANNUITY - [NON-QUALIFIED ANNUITY]
OWNER: [Xxxx Xxx]
Address: [0000 Xxxx Xx.]
[Xxx Xxxx, XX 00000-9999]
Date of Birth: [1/01/1969]
Age: [35]
Sex: [Male]
ANNUITANT: [Xxxx Xxx]
Address: [0000 Xxxx Xx.]
[Any City, ST 99999-9999]
Date of Birth: [1/01/1969]
Age: [35]
Sex: [Male]
JOINT OWNER: [Xxxx Xxx]
Address: [0000 Xxxx Xx.]
[Any City, ST 99999-9999]
Date of Birth: [2/01/1969]
Age: [35]
Sex: [Female]
JOINT ANNUITANT: [Xxxx Xxx]
Address: [0000 Xxxx Xx.]
[Xxx Xxxx, XX 00000-9999]
Date of Birth: [2/01/1969]
Age: [35]
Sex: [Female]
CONTRACT NUMBER: [LP12345678]
CONTRACT DATE: [5/01/2004]
INITIAL PURCHASE PAYMENT: [$50,000]
DELIVERED IN THE STATE OF [ANY STATE] AND GOVERNED BY ITS LAWS.
MAXIMUM ISSUE AGE: [85]. The contract date must be prior to the Owner's and
Annuitant's (including any Joint Owner's and Joint Annuitant's) [86th] birthday.
MAXIMUM ANNUITIZATION AGE: [90]. Annuity payments must begin prior to the
Annuitant's (including any Joint Annuitant's) [91st] birthday.
MINIMUM INITIAL PURCHASE PAYMENT: [$10,000]
MINIMUM SUBSEQUENT PURCHASE PAYMENT: [$30]
MINIMUM ALLOCATIONS TO THE FIXED ACCOUNT OPTIONS:
Dollar Cost Averaging Fixed Account Option - $5,000.
Enhanced Fixed Account Option - No minimum.
Guaranteed Interest Period Fixed Account Option - $1,000 for each selected
Guaranteed Period.
MINIMUM GUARANTEED INTEREST RATE: [1.50%]
INSURANCE CHARGES:
MORTALITY AND EXPENSE RISK CHARGE: Equal on an annual basis to [1.25%] of
the average daily net assets of each Portfolio.
ASSET-RELATED ADMINISTRATION CHARGE: Equal on an annual basis to [0.20%] of
the average daily net assets of each Portfolio.
Spinnaker(R) is a registered trademark of Safeco Life Insurance Company.
1
CONTRACT DATA PAGE
MINIMUM WITHDRAWAL: [$250] ([$100] if withdrawals made by electronic funds
transfer), or the contract value if less. You must withdraw the entire amount
out of an investment option if, after a withdrawal, the remaining balance in the
investment option would be less than [$500]. You must withdraw the entire
contract value and your Contract will terminate if, after a withdrawal, the
remaining contract value would be less than [$1,000].
DISTRIBUTION CHARGE: May be assessed on a withdrawal from the Enhanced Fixed
Account Option if the withdrawal, together with prior withdrawals and transfers
taken from the Enhanced Fixed Account Option during the Contract Year, exceed
15% of the Enhanced Fixed Account value. The distribution charge is stated as a
percentage of the amount withdrawn from the Enhanced Fixed Account Option that
exceeds the 15% free withdrawal amount.
CONTRACT YEAR DISTRIBUTION CHARGE
------------- -------------------
[1 5% of amount withdrawn]
[2 5% of amount withdrawn]
[3 5% of amount withdrawn]
[4 5% of amount withdrawn]
[5 5% of amount withdrawn]
[6 4% of amount withdrawn]
[7 3% of amount withdrawn]
[8 2% of amount withdrawn]
[After 8 0% of amount withdrawn]
WITHDRAWAL CHARGE: [$25] or 2% of the amount withdrawn, whichever is less,
for each withdrawal after the first withdrawal in a Contract Year.
TRANSFERS: The minimum amount you can transfer out of an investment option at
one time is:
- [$500], or the entire value of the investment option if less, for transfers
from any Portfolio or Guaranteed Period under the Guaranteed Interest Period
Fixed Account Option. You must transfer the entire amount of the investment
option if, after a transfer, the remaining balance would be less than [$500].
- [$500], or the available transfer amount if less, for transfers from the
Enhanced Fixed Account Option. The available transfer amount is 15% of the
Enhanced Fixed Account Option value per Contract Year. The available transfer
amount is reduced by previous transfers or withdrawals from the Enhanced
Fixed Account Option made in the Contract Year.
The minimum amount you can transfer into an investment option is:
- [$50] for transfers into any Portfolio or the Enhanced Fixed Account Option;
and
- [$1,000] for transfers into any new Guaranteed Period under the Guaranteed
Period Fixed Account Option.
TRANSFER CHARGE: Each Contract Year, [12] transfers are free of charge. For
each transfer after the [12th] transfer in a Contract Year, the transfer charge
is [$10] or 2% of the amount transferred, whichever is less.
2
CONTRACT DATA PAGE
MARKET VALUE ADJUSTMENT: MVA = W x (I SUB (c) - I SUB (n)) x F SUB (s) where
W = the amount withdrawn, transferred, or annuitized from a
Guaranteed Period under the Guaranteed Interest Period Fixed
Account Option;
I SUB(c) = the interest rate, in decimal form, credited on the money
withdrawn, transferred, or annuitized;
I SUB(n) = the interest rate, in decimal form, that would be credited on
new money allocated to a Guaranteed Period of the same duration
as the Guaranteed Period from which money is being taken;
F SUB(s) = the adjustment factor, which varies by the length of time
remaining in the Guaranteed Period and the interest rate credited
on the money withdrawn, transferred, or annuitized;
s = number of years remaining until the end of the Guaranteed Period
from which money is being taken. The adjustment factor for
partial years will be interpolated between whole-year adjustment
factors.
ADJUSTMENT FACTORS (F SUB(s))
NUMBER OF YEARS
REMAINING IN THE WHERE WHERE
GUARANTEED PERIOD I SUB(c) LESS THAN 6% I SUB(c) GREATER THAN OR EQUAL TO 6%
----------------- ---------------------- -------------------------------------
0 0.00 0.00
1 0.90 0.90
2 1.80 1.75
3 2.60 2.50
4 3.40 3.15
5 4.10 3.80
6 4.80 4.35
7 5.40 4.85
8 6.00 5.35
9 6.50 5.75
10 7.00 6.15
The MVA will be adjusted if, upon a total withdrawal from a Guaranteed Period,
the MVA would reduce your value in that Guaranteed Period below 90% of the
original amount allocated to that Guaranteed Period accumulated at an annual
effective interest rate of 3%, less prior withdrawals and transfers from that
Guaranteed Period accumulated at an annual effective interest rate of 3% each
year.
PREMIUM TAXES: [As of the contract date, premium taxes are not charged in your
state. However, if we ever incur such taxes, we reserve the right to make a
deduction from your Contract for the payment of the premium taxes assessed in
connection with your Contract.]
3
CONTRACT DATA PAGE
SEPARATE ACCOUNT:
Safeco Separate Account C
ELIGIBLE INVESTMENTS:
[Safeco RST Bond Portfolio]
[Safeco RST Core Equity Portfolio]
[Safeco RST Growth Opportunities Portfolio]
[Safeco RST Money Market Portfolio]
[Safeco RST Multi-Cap Core Portfolio]
[Safeco RST Small-Cap Value Portfolio]
[AIM V.I. Aggressive Growth Fund (Series I Shares)]
[AIM V.I. Capital Development Fund (Series II Shares)]
[AIM V.I. International Growth Fund (Series II Shares)]
[American Century VP Balanced]
[American Century VP International]
[American Century VP Ultra Class II]
[American Century VP Value]
[Dreyfus IP - MidCap Stock Portfolio - Initial Shares]
[Dreyfus IP - Technology Growth Portfolio - Initial Shares]
[The Dreyfus Socially Responsible Growth Fund, Inc. - Initial Shares]
[Dreyfus Stock Index Fund, Inc. - Service Shares]
[Dreyfus VIF - Appreciation Portfolio - Initial Shares]
[Dreyfus VIF - Quality Bond Portfolio - Initial Shares]
[Federated Capital Income Fund II]
[Federated High Income Bond Fund II]
[Fidelity VIP Asset Manager Portfolio]
[Fidelity VIP Contrafund Portfolio]
[Fidelity VIP Equity-Income Portfolio]
[Fidelity VIP Growth Portfolio]
[Fidelity VIP Growth & Income Portfolio]
[Franklin Small Cap Fund - Class 2]
[Franklin U.S. Government Fund - Class 2]
[ING VP Natural Resources Trust]
[INVESCO VIF - Health Sciences Fund]
[INVESCO VIF - Real Estate Opportunity Fund]
[JPMorgan International Equity Portfolio]
[JPMorgan Mid Cap Value Portfolio]
[Mutual Shares Securities Fund - Class 2]
[Xxxxxxxxx Developing Markets Securities Fund - Class 2]
[Xxxxxxxxx Growth Securities Fund - Class 2]
Safeco Life Dollar Cost Averaging Fixed Account Option
[6-month period]
[12-month period]
Safeco Life Enhanced Fixed Account Option
Safeco Life Guaranteed Interest Period Fixed Account Option
[1-Year Guaranteed Period]
[2-Year Guaranteed Period]
[3-Year Guaranteed Period]
[4-Year Guaranteed Period]
(LONGER GUARANTEED PERIODS MAY BE AVAILABLE. CONTACT YOUR REGISTERED
REPRESENTATIVE OR SAFECO LIFE FOR DETAILS.)
ANNUITY SERVICE OFFICE:
HOME OFFICE:
Safeco Life Insurance Company
Retirement Services
0000 000xx Xxxxx XX
Xxxxxxx, XX 00000-0000
MAILING ADDRESS:
Safeco Life Insurance Company
Retirement Services
P.O. Box 3882
Seattle, WA 00000-0000
TELEPHONE: 000-0XXXXXX
FAX: 000-000-0000
4
TABLE OF CONTENTS
CONTRACT DATA PAGE Insert
DEFINITIONS
Accumulation Phase 1
Accumulation Unit 1
Annuitant 1
Annuity Date 1
Annuity Unit 1
Beneficiary 1
Contract 1
Contract Year 1
Fixed Account Options 1
General Account 1
Guaranteed Period 1
Income Phase 1
IRC 1
Market Value Adjustment (MVA) 1
Owner 1
Portfolios 1
Purchase Payment 2
Separate Account 2
THE
ANNUITY CONTRACT
ABOUT THE CONTRACT 3
OWNER 3
ANNUITANT 3
BENEFICIARY 3
Change of Beneficiary 3
PURCHASE PAYMENT PROVISIONS
PURCHASE PAYMENTS 4
ALLOCATION OF PURCHASE PAYMENTS 4
ACCUMULATION UNITS 4
INVESTMENT OPTIONS
VARIABLE INVESTMENT OPTIONS 6
Substitution of Shares 6
FIXED ACCOUNT OPTIONS 6
Dollar Cost Averaging Fixed Account Option 6
Enhanced Fixed Account Option 6
Guaranteed Interest Period Fixed Account Option 7
CONTRACT VALUE 8
TRANSFERS 8
Limits on Excessive Transfers 9
i
CHARGES
INSURANCE CHARGES 10
Mortality and Expense Risk Charge 10
Asset-Related Administration Charge 10
DISTRIBUTION CHARGE 10
WITHDRAWAL CHARGE 11
TRANSFER CHARGE 11
PREMIUM TAXES 11
INCOME OR OTHER TAXES 11
WITHDRAWAL PROVISIONS
WITHDRAWALS 12
Repetitive Withdrawals 12
ANNUITY PAYMENT PROVISIONS
ANNUITY OPTIONS 13
Life Annuity 13
Life Annuity with Guaranteed Period 13
Joint and Survivor Life Annuity 13
Payments Based on a Number of Years 13
Automatic Option 14
ANNUITY PAYMENTS 14
Fixed Annuity Payments 14
Variable Annuity Payments 14
Changing Portfolio Elections after the Annuity Date 15
DEATH BENEFIT PROVISIONS
DEATH OF ANNUITANT Prior to the Annuity Date 16
DEATH OF OWNER Xxxxx to the Annuity Date 16
Calculation of Death Benefit 16
Limitation on Death Benefit 17
Payment of Death Benefit 17
DEATH OF ANNUITANT On or After the Annuity Date 18
DEATH OF OWNER On or After the Annuity Date 18
GENERAL PROVISIONS
ACCOUNT STATEMENTS 19
ASSIGNMENT OF BENEFITS 19
COMMUNICATIONS 19
ESSENTIAL DATA 19
EVIDENCE OF SURVIVAL 19
JURISDICTION 19
MISSTATEMENT OF AGE OR SEX 19
NONPARTICIPATION 19
SEPARATE ACCOUNT 19
STATE REQUIRED BENEFITS 20
SUSPENSION OF ANNUITY PAYMENTS, WITHDRAWALS, OR TRANSFERS 20
TERMINATION OF CONTRACT 20
THE CONTRACT 20
VOTING RIGHTS 20
ANNUITY PURCHASE RATE TABLES
VARIABLE ANNUITY PURCHASE RATE TABLE 21
FIXED ANNUITY PURCHASE RATE TABLE 22
ii
DEFINITIONS
ACCUMULATION PHASE The period between the date we allocate your first
Purchase Payment and the Annuity Date.
ACCUMULATION UNIT A measurement used to calculate the value of a
Portfolio during the Accumulation Phase and variable
annuity payments made under the Payments Based on a
Number of Years annuity option.
ANNUITANT The natural person(s) on whose life/lives annuity
payments are based. You are the Annuitant unless you
designate someone else before the Annuity Date.
ANNUITY DATE The date annuity payments begin under an annuity
option.
ANNUITY UNIT A measurement used to calculate variable annuity
payments during the Income Phase, except for the
Payments Based on a Number of Years annuity option.
BENEFICIARY The person(s) named by the Owner and joint Owner,
if any, to receive any death benefit payable in
accordance with the provisions of this Contract.
CONTRACT This Flexible Premium Deferred Variable Annuity.
CONTRACT YEAR A 12-month period starting on the contract date
shown on your contract data page and each
anniversary of that date.
FIXED ACCOUNT OPTIONS The investment options of this Contract that provide
for guaranteed interest. Purchase Payments allocated
to the Fixed Account Options become part of Safeco
Life's General Account.
GENERAL ACCOUNT The assets of Safeco Life other than those
attributable to Separate Accounts.
GUARANTEED PERIOD A period of years for which we have guaranteed a
specific annual effective interest rate on a
Purchase Payment allocated to the Guaranteed
Interest Period Fixed Account Option.
INCOME PHASE The period beginning on the Annuity Date during
which the payee receives annuity payments.
IRC The Internal Revenue Code of 1986, as amended.
MARKET VALUE A positive or negative adjustment that may apply
ADJUSTMENT (MVA) whenever money is moved from the Guaranteed Interest
Period Fixed Account Option before the end of a
Guaranteed Period.
OWNER The person(s) or entity(ies) named on the contract
application. The Owner has all ownership rights
under this Contract.
PORTFOLIOS The variable investment options available under the
Contract.
1
PURCHASE PAYMENT An amount paid to Safeco Life for allocation under
this Contract, less any premium tax due at the time
this payment is made.
SEPARATE ACCOUNT A segregated asset account established under
Washington law and shown on the contract data page.
2
THE
ANNUITY CONTRACT
ABOUT THE This Contract is an agreement between Safeco Life
CONTRACT and you, the Owner, where we promise to pay an
income in the form of annuity payments, beginning on
the date you select, or a death benefit. When you
are investing money, your Contract is in the
Accumulation Phase. Once you begin receiving annuity
payments, your Contract is in the Income Phase.
You purchased this Contract with the initial
Purchase Payment you paid, and the Contract became
effective on the contract date, shown on your
contract data page.
The Contract is called a variable annuity because
you can allocate money among variable investment
Portfolios available within the Separate Account.
The investment performance of the Portfolio(s) you
select may be positive or negative and affects the
value of your Contract and the amount of any
variable annuity payments. You may also allocate
money to the Fixed Account Options which credit
guaranteed interest rates.
OWNER The Owner is shown on the contract application and
cannot be changed. On the contract date, the Owner
must not have been older than the maximum issue age
shown on the contract data page. The Owner may
exercise all ownership rights under this Contract.
If this Contract is owned by joint Owners, they must
jointly exercise their ownership rights, unless we
are directed otherwise by both joint Owners in
writing. On the contract date, each joint Owner must
not have been older than the maximum issue age shown
on the contract data page. The joint Owner cannot be
changed. An Owner who is a non-natural person (for
example, a corporation or a trust) may not name a
joint Owner.
ANNUITANT The Annuitant is/are the person(s) on whose
life/lives annuity payments are based. You are the
Annuitant unless you designate someone else before
the Annuity Date. If you designate someone else as
Annuitant, that person must not be older than the
maximum issue age on the contract date and the
maximum annuitization age when annuity payments
begin. The maximum issue age and the maximum
annuitization age are shown on the contract data
page.
An Owner who is a non-natural person may not change
the Annuitant.
BENEFICIARY The Beneficiary receives any death benefit payable
in accordance with the provisions of this Contract.
You initially name your Beneficiaries on the
contract application.
CHANGE OF You may change your Beneficiary designation at any
BENEFICIARY time by sending us a signed and dated request.
However, if a Beneficiary designation is
irrevocable, that Beneficiary must consent in
writing to any change. A new Beneficiary designation
revokes any prior designation and is not effective
until we record the change. We are not responsible
for the validity of any Beneficiary designation nor
for any actions we may take prior to receiving and
recording a Beneficiary change.
3
PURCHASE PAYMENT PROVISIONS
PURCHASE During the Accumulation Phase, you may make
PAYMENTS additional Purchase Payments. You may change the
amount and frequency of Purchase Payments. The
minimum dollar amounts are shown on the contract
data page. If you stop making Purchase Payments, all
benefits under this Contract continue until the
contract value is completely withdrawn.
Purchase Payments must be in lawful currency of the
United States and submitted to our Home Office at
0000 000xx Xxxxx XX, Xxxxxxx, XX 00000-0000, or P.O.
Box 3882, Seattle, WA 98124-3882, or in a manner
agreed to by Safeco Life.
We reserve the right to refuse any Purchase Payment.
If we do not accept a Purchase Payment, we will
return it within five business days.
ALLOCATION OF Your initial and subsequent Purchase Payment will be
PURCHASE allocated according to your instructions on your
PAYMENTS contract application. You may change the way
subsequent Purchase Payments are allocated by
providing us with new instructions.
Once we receive your Purchase Payment, the portion
to be allocated to a Fixed Account Option is
credited as of the day it is received. The portion
to be allocated to the Portfolios is effective and
valued as of the next close of the New York Stock
Exchange (NYSE). If for any reason the NYSE is
closed when we receive your Purchase Payment, it
will be valued as of the close of the NYSE on its
next regular business day.
When we are required to guarantee a return of
Purchase Payments during the Right to Examine
period, we reserve the right to initially apply
amounts designated for the Portfolios to the Safeco
RST Money Market Portfolio as shown on the cover
page of this Contract. These amounts will then be
allocated in the manner you selected, unless you
have canceled the Contract.
ACCUMULATION When you make Purchase Payments or transfers into a
UNITS Portfolio, we credit your Contract with Accumulation
Units. Similarly, when you request a withdrawal or a
transfer of money from a Portfolio, Accumulation
Units are liquidated. In either case, the increase
or decrease in the number of your Accumulation Units
is determined by taking the dollar amount of the
Purchase Payment, transfer, or withdrawal and
dividing it by the value of an Accumulation Unit on
the date the transaction occurs.
We calculate the value of an Accumulation Unit for
each Portfolio after the NYSE closes each day. To
determine the current Accumulation Unit value, we
take the prior day's Accumulation Unit value and
multiply it by the Net Investment Factor for the
current day.
4
The Net Investment Factor is used to measure the
daily change in Accumulation Unit value for each
Portfolio. The Net Investment Factor equals:
- the net asset value per share of a Portfolio at
the end of the current day plus the per share
amount of any dividend or income distributions
made by the Portfolio that day; divided by
- the net asset value per share of a Portfolio at
the end of the prior day plus the per share
amount of any dividend or income distributions
made by the Portfolio that day; minus
- the daily insurance charges, expressed as a
percentage of the total net assets of the
Portfolio.
The value of an Accumulation Unit will usually go up
or down from day to day.
5
INVESTMENT OPTIONS
VARIABLE You may allocate money to the Portfolios shown on
INVESTMENT the contract data page. We reserve the right to add,
OPTIONS combine, restrict, or remove any Portfolio as an
investment option of this Contract. Portfolios have
different investment objectives. Investment
performance of a Portfolio may be positive or
negative.
SUBSTITUTION OF If any shares of the Portfolios are no longer
SHARES available, or if in our view no longer meet the
purpose of the Contract, it may be necessary to
substitute shares of another Portfolio. We will seek
prior approval of the Securities and Exchange
Commission (SEC) to the extent required by law and
give you notice before doing this.
FIXED ACCOUNT The Fixed Account Options are part of Safeco Life's
OPTIONS General Account and provide for guaranteed interest
rates as follows.
We establish the annual effective interest rates
that apply to Purchase Payments allocated to the
Fixed Account Options. The annual effective interest
rate will be at least the minimum guaranteed
interest rate shown on the contract data page.
We credit interest daily from the date the money is
allocated to the specific Fixed Account Option up
to, but not including, the date the money is
withdrawn or transferred. We credit interest at a
rate that compounds over one year to the annual
effective interest rate we guaranteed when the money
was allocated.
DOLLAR COST If you allocate all or part of a Purchase Payment to
AVERAGING (DCA) the Dollar Cost Averaging Fixed Account Option, we
FIXED ACCOUNT will credit interest at a specified rate on amounts
OPTION prior to their being transferred to Portfolios you
select. Monthly transfers are made over the period
that you select. You may not make another Purchase
Payment to this option until the entire value in
this option has been transferred out, and you may
not transfer money into this option. You may not
choose this option within 12 months of the Annuity
Date.
Upon surrender of the Contract, you will not receive
less than 90% of your Purchase Payments allocated to
the Dollar Cost Averaging Fixed Account Option
accumulated at an annual effective interest rate of
3% each year, less prior transfers from the Dollar
Cost Averaging Fixed Account Option accumulated at
an annual effective interest rate of 3% each year.
If necessary to meet this minimum, charges will be
waived.
ENHANCED FIXED Each Purchase Payment allocated to the Enhanced
ACCOUNT OPTION Fixed Account Option will be credited with the
interest rate established for the date that we
receive the Purchase Payment. This rate will apply
to the Purchase Payment for an initial period of at
least 12 months from the date we receive it.
6
We can adjust the interest rate after the completion
of that initial period. The adjusted rate will apply
to that Purchase Payment and its credited interest
for at least 12 months, when the rate can again be
adjusted. From then on, we cannot adjust the
interest rate more often than every 12 months.
Different interest rates may apply to each of your
Purchase Payments depending on the interest rate
established for the date that we received the
Purchase Payment and any subsequent rate
adjustments.
For the purpose of crediting interest, when you take
a withdrawal from the Enhanced Fixed Account Option,
the Purchase Payment you last made, and the interest
credited to it, is considered to be withdrawn first.
If you take a withdrawal while a distribution charge
applies, your withdrawal may be less than your
Purchase Payment(s).
Upon a total withdrawal from the Enhanced Fixed
Account Option, you will not receive less than 90%
of your Purchase Payments and transfers allocated to
the Enhanced Fixed Account Option accumulated at an
annual effective interest rate of 3% each year, less
prior withdrawals and transfers from the Enhanced
Fixed Account Option accumulated at an annual
effective interest rate of 3% each year. If
necessary to meet this minimum, charges will be
waived.
GUARANTEED If you allocate money to the Guaranteed Interest
INTEREST PERIOD Period Fixed Account Option, we will credit interest
FIXED ACCOUNT at a specified rate for a Guaranteed Period. You may
OPTION select different Guaranteed Periods for each amount
you allocate to this option, and each allocation
starts a new Guaranteed Period. Each Guaranteed
Period we offer may have a different interest rate.
We may change the rates we offer for new Guaranteed
Periods at any time. In the future we may offer
Guaranteed Periods of different lengths or stop
offering some Guaranteed Periods.
Money allocated to a Guaranteed Period under this
option matures the day after the Guaranteed Period
ends. Within 30 days after the end of the Guaranteed
Period, you may:
- take no action and we will automatically apply
your value to a new Guaranteed Period of the
same or next shorter duration. The next shorter
duration will be used if the prior Guaranteed
Period is not currently available. The new
Guaranteed Period earns interest at the then
current interest rate for that Guaranteed Period
and begins the day after the prior Guaranteed
Period ended; or
- notify us to allocate all or a portion of your
value to one or more new Guaranteed Periods
beginning the day after the prior Guaranteed
Period ended; or
- notify us to allocate all or a portion of your
value to one or more of the Portfolios on the
day we receive the notification; or
- withdraw all or a portion of your value.
If you select one of the last two alternatives, we
will credit interest at the rate we are currently
offering for Guaranteed Periods of the same or next
shorter duration from the day after the Guaranteed
Period ended until the day we receive your
instructions.
7
If you move money out before the end of a Guaranteed
Period, either as a transfer, withdrawal, or to
purchase annuity payments, there will be a Market
Value Adjustment (MVA). The formula used to
calculate the MVA is shown on the contract data
page. The MVA is based primarily on the difference
between the interest rate being credited to the
money you move and the current interest rate offered
for a Guaranteed Period of the same duration. In
general, if interest rates have dropped, the MVA
will be positive and if interest rates have risen,
it will be negative. Unless you tell us otherwise,
the MVA will be applied to your remaining contract
value. If amounts are taken from more than one
Guaranteed Period at the same time, the MVA is
calculated individually for each Guaranteed Period.
We will not apply an MVA if you move money within 30
days after the end of a Guaranteed Period.
The MVA will be adjusted if, upon a total withdrawal
from a Guaranteed Period, the MVA would reduce your
value in that Guaranteed Period below 90% of the
original amount allocated to that Guaranteed Period
accumulated at an annual effective interest rate of
3%, less prior withdrawals and transfers from that
Guaranteed Period accumulated at an annual effective
interest rate of 3% each year.
CONTRACT VALUE Your contract value is the sum of the values in the
Portfolios and the Fixed Account Options
attributable to your Contract. We calculate this by:
- adding all the Purchase Payments you invested;
- subtracting the charges which have been
deducted;
- subtracting the withdrawals you have made
(adjusted for any MVA);
- adjusting for any MVA on amounts that were
transferred to the Portfolios;
- adjusting for each Portfolio's gain or loss;
- adding the interest we credit to each Fixed
Account Option while any of your contract value
is in that option;
- subtracting the amounts withdrawn for an annuity
option; and
- subtracting the amounts withdrawn to pay the
death benefit.
TRANSFERS During the Accumulation Phase, you can transfer
money between investment options. (For purposes of
these transfer provisions, "investment options" does
not include the Dollar Cost Averaging Fixed Account
Option.) The minimum amounts that can be transferred
are shown on the contract data page. In each
Contract Year a specified number of transfers are
free of charge. Each additional transfer in a
Contract Year may have a transfer charge. The number
of free transfers and the transfer charge are shown
on the contract data page.
We reserve the right to modify, suspend, or
terminate transfer privileges at any time. In
addition, if we receive a transfer request that is
to be allocated to a Fixed Account Option and we are
not able to invest the money such that we can credit
at least the minimum guaranteed interest rate, we
reserve the right to reject the portion of the
transfer request that was to be allocated to that
option.
8
LIMITS ON We may restrict or eliminate the right to make
EXCESSIVE transfers among Portfolios if such rights are
TRANSFERS executed by you, a market timing firm, or other
third party authorized to initiate transfers or
exchange transactions on your behalf. For example,
we reserve the right to reject any transfer request
if, in our judgment, you are engaging in a pattern
of transfer that may disadvantage other contract
owners or would cause a Portfolio to be unable to
invest effectively in accordance with its investment
objectives and policies or would otherwise be
potentially adversely affected. In addition, if we
or any affected Portfolio believes you are engaging
in activity as described above or similar activity
which will potentially hurt the rights or interests
of other contract owners, we have the right to
restrict the number of transfers you make.
We will continue to monitor the transfer activity
occurring among the Portfolios and may modify these
transfer restrictions at any time if we deem it
necessary to protect the interest of all contract
owners. These modifications may include curtailing
or eliminating, without notice, the ability to use
the Internet or telephone in making transfers.
9
CHARGES
The following charges apply to your Contract:
INSURANCE Each day we make deductions for our insurance
CHARGES charges. We do this as part of our calculation of
the value of Accumulation Units and Annuity Units.
The insurance charges are as follows:
MORTALITY AND The mortality and expense risk charge is equal, on
EXPENSE RISK an annual basis, to a percentage of the average
CHARGE daily net assets of each Portfolio. The percentage
is shown on the contract data page.
ASSET-RELATED The asset-related administration charge is equal, on
ADMINISTRATION an annual basis, to a percentage of the average
CHARGE daily net assets of each Portfolio. The percentage
is shown on the contract data page.
DISTRIBUTION A distribution charge may be assessed on a
CHARGE withdrawal from the Enhanced Fixed Account Option if
the withdrawal, together with prior withdrawals and
transfers from the Enhanced Fixed Account Option
during the Contract Year, exceed 15% of the value of
the Enhanced Fixed Account Option. The charge is
stated as a percentage of the amount withdrawn from
the Enhanced Fixed Account Option that exceeds the
15% free withdrawal amount and is shown on the
contract data page. When the withdrawal is for only
part of your contract value, the charge will be
deducted from the amount withdrawn, unless you tell
us otherwise.
The determination of whether more than 15% of the
Enhanced Fixed Account Option value has been
withdrawn or transferred is made at the time of
withdrawal or transfer. If you take more than one
withdrawal and/or transfer from the Enhanced Fixed
Account Option in a Contract Year, the previous
withdrawals and transfers from the Enhanced Fixed
Account Option in the Contract Year are added to the
current value in the Enhanced Fixed Account Option
to determine whether more than 15% of the value has
been withdrawn or transferred in that Contract Year.
Distribution charges will not be assessed on the
following:
- withdrawals from the Enhanced Fixed Account
Option, if the total amount withdrawn or
transferred from the Enhanced Fixed Account
Option during the Contract Year does not exceed
15% of the Enhanced Fixed Account value;
- withdrawals taken for payment of withdrawal
charges, transfer charges, or premium taxes;
- repetitive withdrawals, if the withdrawals are
equal or substantially equal and are expected to
deplete the contract value over your life
expectancy or the joint life expectancy of you
and your Beneficiary;
- annuity payments;
- withdrawals taken on account of your death; and
10
- withdrawals taken after you have been confined
to a hospital or nursing home for 30 consecutive
days if:
- the confinement begins after the contract
date; and
- the withdrawal is taken:
- during confinement; or
- within 60 days after confinement ends.
We may require proof of confinement.
Hospital may be defined in one of two ways:
(1) a lawfully operated institution that is
licensed as a hospital by the Joint
Commission of Accreditation of Hospitals; or
(2) a lawfully operated institution that
provides in-patient treatment under the
direction of a staff of physicians and has
24-hour per day nursing services.
Nursing home is defined as a facility licensed
by the state that provides convalescent or
chronic care for in-patients who, by reason of
illness or infirmity, are unable to properly
care for themselves.
WITHDRAWAL The withdrawal charge, shown on the contract data
CHARGE page, is deducted for each withdrawal after the
first withdrawal in a Contract Year. This charge
will be deducted from your remaining contract value,
unless you tell us otherwise.
We will not deduct this charge for annuity payments,
repetitive withdrawals, or if you withdraw the
entire contract value.
TRANSFER CHARGE The transfer charge is deducted from your Contract
for each transfer in excess of the number of free
transfers allowed in a Contract Year. The transfer
charge and the number of free transfers are shown on
the contract data page.
Scheduled transfers authorized by us as part of an
investment strategy such as dollar cost averaging,
appreciation or interest sweep, portfolio
rebalancing, or asset allocation programs do not
count against your free transfers.
PREMIUM TAXES The contract data page shows whether or not premium
tax is charged in your state as of the contract
date.
INCOME OR OTHER Currently we do not pay income or other taxes on
TAXES earnings attributable to your Contract. However, if
we ever incur such taxes, we reserve the right to
deduct them from your Contract.
11
WITHDRAWAL PROVISIONS
WITHDRAWALS Before the commencement of annuity payments, you may
withdraw part or all of your contract value. The
minimum amount that can be withdrawn is shown on the
contract data page. Withdrawals are not allowed from
the Dollar Cost Averaging Fixed Account Option
except upon surrender of the Contract.
To take withdrawals, you must send a written request
to our Home Office. If you take a partial
withdrawal, you must tell us from which investment
option we are to take the withdrawal and we will not
process the withdrawal until we receive those
instructions. Once we receive your valid
instructions, withdrawals from the Portfolios will
be effective as of the next close of the NYSE.
A withdrawal may have a distribution charge and a
withdrawal charge. If you move money out before the
end of a Guaranteed Period under the Guaranteed
Interest Period Fixed Account Option, an MVA will
apply.
REPETITIVE You may request repetitive withdrawals of a
WITHDRAWALS predetermined amount on a monthly, quarterly, or
annual basis by completing the appropriate form.
12
ANNUITY PAYMENT PROVISIONS
ANNUITY OPTIONS The Income Phase will start no later than the
maximum annuitization age shown on the contract data
page, or an earlier date if required by law. During
the Income Phase, the payee (you or someone you
choose) receives regular annuity payments beginning
on the Annuity Date.
To start the Income Phase, you must notify us in
writing at least 30 days prior to the date that you
want annuity payments to begin. You may choose
annuity payments under an annuity option described
in this Contract or another annuity option that you
want and that we agree to provide. You cannot start
the Income Phase until the Contract has been in
effect for at least one year (eight years for the
Payments Based on a Number of Years annuity option).
If the amount applied to an annuity option is less
than $5,000, we may pay you in a lump sum where
permitted by state law. We reserve the right to
change the payment frequency if payment amounts
would be less than $250.
Switching to the Income Phase is irrevocable. Once
you begin receiving annuity payments, you cannot
switch back to the Accumulation Phase. You cannot
add Purchase Payments, change or add an Annuitant,
change the annuity option, or change between fixed
and variable annuity payments. When the Contract
switches to the Income Phase, the minimum guaranteed
death benefit will no longer be applicable.
LIFE ANNUITY The payee receives monthly annuity payments as long
as the Annuitant is living. Annuity payments stop
when the Annuitant dies.
LIFE ANNUITY WITH The payee receives monthly annuity payments for the
GUARANTEED longer of the Annuitant's life or a guaranteed
PERIOD period of five or more years as selected by you and
agreed to by us. If the Annuitant dies before all
guaranteed payments have been made, the rest will be
made to the payee designated by the Owner. Annuity
payments stop the later of the date the Annuitant
dies or the date the last guaranteed payment is
made.
As an alternative to monthly payments, the payee may
elect to have the present value of the guaranteed
variable annuity payments remaining as of the date
the notice of death is received by us commuted at
the assumed investment return of 4% and paid in a
single payment.
JOINT AND The payee receives monthly annuity payments as long
SURVIVOR LIFE as the Annuitant is living. After the Annuitant
ANNUITY dies, the payee receives a specified percentage of
each annuity payment as long as the second Annuitant
is living. You name the second Annuitant and payment
percentage at the time you elect this option.
Annuity payments stop the later of the date the
Annuitant dies or the date the second Annuitant
dies.
PAYMENTS BASED The payee receives annuity payments based on a
ON A NUMBER OF number of years as selected by you and agreed to by
YEARS us. You must select a period of at least five years.
You may select monthly, quarterly, or annual annuity
payments. Each annuity payment reduces the number of
Accumulation Units and/or value of the Fixed Account
Options in the Contract. Each annuity payment
13
made from the Guaranteed Interest Period Fixed
Account Option may be subject to an MVA. Annuity
payments continue until the entire value in the
Portfolios and/or the Fixed Account Options has been
paid out. You can stop these annuity payments at any
time and receive a lump sum equal to the remaining
contract value and plus or minus any MVA if
applicable. This option does not promise to make
payments for the Annuitant's life. If the Owner dies
before all annuity payments have been made, there
will be a death benefit payable in accordance with
the "DEATH OF OWNER On or After the Annuity Date"
provision.
This annuity option is only available after the
eighth Contract Year and if your contract value is
$25,000 or more at the time this option is selected.
AUTOMATIC OPTION If you do not choose an annuity option at least 30
days before the latest Annuity Date allowed under
this Contract and if your contract value is at least
$25,000, we will make annuity payments under the
Payments Based on a Number of Years annuity option.
The number of years will be equal to the Annuitant's
life expectancy. If your contract value is less than
$25,000, we will make annuity payments under the
Life Annuity with Guaranteed Period annuity option.
The guaranteed period will be equal to 10 years.
ANNUITY You can choose whether annuity payments will be made
PAYMENTS on a fixed basis, variable basis, or both. If you
don't tell us otherwise, annuity payments will be
based on the investment allocations in place on the
Annuity Date. After the Annuity Date, you may not
switch between fixed annuity payments and variable
annuity payments.
FIXED ANNUITY The dollar amount of each fixed annuity payment will
PAYMENTS stay the same. Annuity payments under the Payments
Based on a Number of Years annuity option will be
based on the minimum guaranteed interest rate and
the number of annuity payments you selected. Annuity
payments under all other annuity options will be
determined by applying the contract value that you
want to use to purchase fixed annuity payments,
adjusted for any MVA, to the Fixed Annuity Purchase
Rate Table of this Contract, or the current rates at
that time if more favorable to you. If premium taxes
are required by state law, these taxes will be
deducted before the annuity payments are calculated.
VARIABLE ANNUITY The dollar amount of each variable annuity payment
PAYMENTS will vary depending on the investment performance of
the Portfolios that you selected. Annuity payments
under the Payments Based on a Number of Years
annuity option will be based on a reasonable rate of
return and the number of annuity payments you
selected. Annuity payments under all other annuity
options will be determined as described below.
FIRST VARIABLE ANNUITY PAYMENT: The dollar amount of
the first variable annuity payment is the sum of the
payments from each Portfolio determined by applying
the contract value used to purchase variable annuity
payments, as of the 15th day of the preceding month,
to the Variable Annuity Purchase Rate Table of this
Contract. If the NYSE is not open on that date, the
calculation will be made on the next day that the
NYSE is open. If premium taxes are required by state
law, these taxes will be deducted before the annuity
payment is calculated.
14
SUBSEQUENT VARIABLE ANNUITY PAYMENTS: The dollar
amount of each subsequent variable annuity payment
is the sum of the payments from each Portfolio,
which are determined by multiplying the number of
Annuity Units credited for that Portfolio by the
Annuity Unit value of that Portfolio as of the 15th
of the month preceding the annuity payment. If the
NYSE is not open on that date, the calculation will
be made on the next day that the NYSE is open.
NUMBER OF VARIABLE ANNUITY UNITS: The number of
Annuity Units credited for each Portfolio is the
amount of the first annuity payment attributable
to that Portfolio divided by the value of the
applicable Annuity Unit for that Portfolio as of
the 15th day of the month preceding the Annuity
Date. The number of Annuity Units used to
calculate the variable annuity payment each
month remains constant unless you change
Portfolio elections.
VALUE OF VARIABLE ANNUITY UNITS: The value of an
Annuity Unit will usually increase or decrease
from one month to the next. For each month after
the first month, the value of an Annuity Unit of
a particular Portfolio is:
- the value of that Annuity Unit as of the
15th day of the preceding month (or the next
day that the NYSE is open);
- multiplied by the Net Investment Factors for
that Portfolio; and
- divided by the Assumed Investment Factor for
the period.
The Net Investment Factor is a number that
represents the change in the Accumulation Unit
value of a Portfolio on successive days when the
NYSE is open. The Net Investment Factor for any
Portfolio for any valuation day is determined by
dividing the current Accumulation Unit value by
the prior day's Accumulation Unit value. The Net
Investment Factor will likely be different than
the Assumed Investment Factor, and therefore the
Annuity Unit value will usually increase or
decrease.
The Assumed Investment Factor for a one-day
valuation period is 1.00010746. This factor
neutralizes the assumed investment return of 4%
in the Variable Annuity Purchase Rate Table.
We guarantee that the dollar amount of each variable
annuity payment made after the first payment will
not be adversely affected by variations in actual
mortality experience or actual expenses incurred in
excess of the expense deductions provided for in the
Contract.
CHANGING If you have selected variable annuity payments,
PORTFOLIO after the Annuity Date you may request to change
ELECTIONS AFTER Portfolio elections once a month. Transfers are not
THE ANNUITY DATE allowed to or from the Fixed Account Options.
Changes will affect the number of units used to
calculate annuity payments.
15
DEATH BENEFIT PROVISIONS
DEATH OF If the Annuitant is not an Owner and the Annuitant
ANNUITANT dies before the Annuity Date, you must designate a
PRIOR TO THE ANNUITY new Annuitant. If no designation is made within 30
DATE days after we are notified of the Annuitant's death,
you will become the Annuitant.
If this Contract is owned by a non-natural person
(for example, a corporation or trust), the death of
the Annuitant will be treated as the death of the
Owner. In this case, all references to "Owner" and
"joint Owner" in these provisions are replaced by
"Annuitant" and "joint Annuitant".
DEATH OF OWNER If any Owner dies before the Annuity Date, we will
PRIOR TO THE ANNUITY pay a death benefit to the:
DATE - surviving Owner or joint Owner; or if there is
no surviving Owner or joint Owner or if the
Owner is a non-natural person, then
- surviving primary Beneficiary(ies); or if none,
then
- surviving contingent Beneficiary(ies); or if
none, then
- the estate of the last Owner to die.
If the death benefit is payable to the Owner's
spouse, the spouse will have the option to continue
the Contract and will then be the Owner of the
Contract.
CALCULATION OF The death benefit is the higher of:
DEATH BENEFIT (1) the current contract value; or
(2) if the death benefit is payable upon the sole
Owner's or older joint Owner's death, the
minimum guaranteed death benefit.
When determining the higher of (1) or (2) above, the
calculations are based on the earlier of:
- the date we receive proof of death and the first
election of how to take the death benefit
payment; or
- six months from the date of death.
For the purpose of comparing these amounts to
determine which is higher, we will not adjust the
current contract value for any applicable MVA.
However, if we determine that the current contract
value is the higher amount and if the death benefit
is withdrawn within 60 days after we receive proof
of death, we will increase the death benefit for a
positive MVA but we will not decrease it for a
negative MVA. If the death benefit is withdrawn more
than 60 days after we receive proof of death, any
MVA, whether positive or negative, will apply.
IF WE RECEIVE DUE PROOF OF DEATH AND THE FIRST
DEATH BENEFIT PAYMENT ELECTION WITHIN 6 MONTHS
OF THE DATE OF DEATH: If the minimum guaranteed
death benefit exceeds the contract value, we
will add the difference to the contract value on
the date we receive the required information so
that the contract value will equal the minimum
guaranteed death benefit. This additional amount
will be allocated to the investment options in
the same proportion that Purchase Payments were
last allocated. Thereafter, the contract value
will be subject to
16
investment performance and applicable charges
until the date the death benefit is paid.
IF WE RECEIVE DUE PROOF OF DEATH AND THE FIRST
DEATH BENEFIT PAYMENT ELECTION MORE THAN 6
MONTHS AFTER THE DATE OF DEATH: If the minimum
guaranteed death benefit exceeds the contract
value on the 6-month anniversary of the date of
death, we will credit the difference with
interest at the prevailing money market rates
from the 6-month anniversary until the date we
receive the required information. At that time
we will allocate this additional amount, with
the credited interest, to the investment options
in the same proportion that Purchase Payments
were last allocated. Thereafter, the contract
value will be subject to investment performance
and applicable contract charges until the date
payment is made.
MINIMUM GUARANTEED DEATH BENEFIT: The minimum
guaranteed death benefit is initially equal to the
first Purchase Payment. It is immediately increased
by additional Purchase Payments and adjusted for
withdrawals. After such withdrawals, the minimum
guaranteed death benefit will be recalculated by
multiplying the prior minimum guaranteed death
benefit by the ratio of the contract value after the
withdrawal to the contract value before the
withdrawal.
MINIMUM GUARANTEED DEATH BENEFIT RESET: The minimum
guaranteed death benefit will be reset on each
5-year contract anniversary until the older Owner
attains age 75. The reset benefit is equal to the
immediately preceding minimum guaranteed death
benefit or the contract value on that date, if
higher.
LIMITATION ON At most, one minimum guaranteed death benefit will
DEATH BENEFIT be paid during the life of the Contract. In
addition, the maximum amount that we will add to the
contract value is limited to $1 million. This
limitation applies to any amount added to the
contract value so that the contract value equals the
minimum guaranteed death benefit. All subsequently
issued contracts will be aggregated for this
limitation if your death triggers payment of a death
benefit under such contracts.
PAYMENT OF DEATH To pay the death benefit, we need proof of death
BENEFIT acceptable to us, such as a certified copy of a
death certificate, plus written direction regarding
how to pay the death benefit payment. If the death
benefit is payable to an Owner's estate, we will pay
it in a single payment.
The death benefit may be paid as:
- a lump sum payment or series of withdrawals that
are completed within five years from the date of
death; or
- annuity payments made over life or life
expectancy. To receive annuity payments, this
election must be made within 60 days from our
receipt of proof of death. Annuity payments must
begin within one year from the date of death.
Once annuity payments begin, they cannot be
changed.
If a person entitled to receive a death benefit dies
before the death benefit is distributed, we will pay
the death benefit to that person's named beneficiary
or, if none, to that person's estate.
17
DEATH OF If the Annuitant is not the Owner and dies after the
ANNUITANT Annuity Date, then we will continue paying any
ON OR AFTER THE remaining annuity payments to the payee designated
ANNUITY DATE by the Owner.
DEATH OF OWNER If the Owner dies after the Annuity Date, then any
ON OR AFTER THE amounts paid after the death of the Owner will
ANNUITY DATE depend on which annuity option was selected. If the
Owner dies while annuity payments are being paid
under the Payments Based on a Number of Years
annuity option, we will pay a death benefit equal to
the contract value as of the date we receive proof
of death and the first election of how to take the
death benefit payment. If the Owner dies while
annuity payments are being paid under another
option, we will pay any remaining annuity payments
in accordance with that option. We will pay
remaining annuity payments at least as rapidly as
under the annuity option then in effect. The right
to receive the death benefit under the Payments
Based on a Number of Years annuity option or to
change the payee for remaining annuity payments
under another annuity option is determined as
follows:
- the surviving Owner or joint Owner; or if none,
then
- the surviving primary Beneficiary(ies); or if
none, then
- the surviving contingent Beneficiary(ies); or if
none, then
- the estate of the last Owner to die.
18
GENERAL PROVISIONS
ACCOUNT At least once each calendar year we will furnish you
STATEMENTS with a statement showing your contract value or, if
applicable and required by law, your Annuity Units
and the Annuity Unit values.
ASSIGNMENT OF This Contract may not be sold, transferred,
BENEFITS assigned, discounted, or pledged as collateral for a
loan or as security for the performance of an
obligation or for any other purpose (other than a
transfer incident to a divorce or a tax-free
exchange under IRC Section 1035).
COMMUNICATIONS All written communications to you will be addressed
to you at your last known address on file with
Safeco Life.
All written communications to Safeco Life must be
addressed to Safeco Life at its Home Office at 0000
000xx Xxxxx XX, Xxxxxxx, Xxxxxxxxxx 00000-0000 or
P.O. Box 3882, Seattle, Washington 98124-3882.
ESSENTIAL DATA You and each person entitled to receive benefits
under this Contract must provide us with any
information we need to administer this Contract. We
are entitled to rely exclusively on the completeness
and accuracy of data furnished by you, and we will
not be liable with respect to any omission or
inaccuracy.
EVIDENCE OF When any payments under this Contract depend upon
SURVIVAL any person being alive on a given date, we may
require satisfactory proof that the person is living
before making such payments.
JURISDICTION In the event of a dispute, the laws of the
jurisdiction in which the Contract is delivered will
apply.
MISSTATEMENT OF We may require satisfactory proof of correct age or
AGE OR SEX sex at any time.
- If annuity payments are based on life or life
expectancy and the age or sex of any Annuitant
has been misstated, annuity payments will be
based on the corrected information.
Underpayments will be made up in a lump sum with
the next scheduled payment. Overpayments will be
deducted from future payments until the total is
repaid. We will not credit interest on
underpayments or charge interest on
overpayments.
- If the age of any Annuitant or Owner has been
misstated, the amount of any death benefit
payable will be determined based on the correct
age of the Annuitant or Owner.
NONPARTICIPATION This Contract is nonparticipating, which means it
will not share in any distribution of profits,
losses, or surplus of Safeco Life.
SEPARATE ACCOUNT The Separate Account holds the assets that underlie
the contract values invested in the Portfolios. The
assets in the Separate Account are the property of
Safeco Life. However, assets in the Separate Account
that are attributable to Contracts are not
chargeable with liabilities arising out of any other
business we may conduct. Xxxxxx, gains and losses
(realized and unrealized), resulting from assets in
the Separate Account are credited to or charged
against the Separate Account without regard to other
income,
19
gains or losses of Safeco Life.
20
STATE REQUIRED The benefits of this Contract will not be less than
BENEFITS the minimum benefits required by any statute of any
state in which this Contract is delivered.
SUSPENSION OF We may be required to suspend or postpone payment of
ANNUITY PAYMENTS, annuity payments, withdrawals, or transfers from the
WITHDRAWALS, OR Portfolios for any period of time when:
TRANSFERS - the NYSE is closed (other than customary weekend
or holiday closings);
- trading on the NYSE is restricted;
- an emergency exists such that disposal of or
determination of the value of the Portfolio
shares is not reasonably practicable; or
- the SEC, by order, so permits for your
protection.
In addition, we retain the right to defer payment of
withdrawals or transfers from the Fixed Account
Options for a period of 6 months after receiving the
request. The interest rates credited to the Fixed
Account Options during this period will not be less
than the rate required under state law.
TERMINATION OF This Contract will terminate when Safeco Life has
CONTRACT completed all of its duties and obligations under
the Contract.
THE CONTRACT The Contract, contract data page, and contract
application, as may be amended, and any endorsements
are the entire Contract. Only an authorized officer
of Safeco Life may change this Contract. Any change
must be in writing. Safeco Life reserves the right
to change the provisions of this Contract to conform
to any applicable law, regulation, or ruling issued
by a government agency.
VOTING RIGHTS Safeco Life is the legal owner of the Portfolios'
shares. However, when a Portfolio solicits proxies
in connection with a shareholder vote, we are
required to ask you for instructions as to how to
vote those shares. All shares are voted in the same
proportion as the instructions we received. Should
we determine that we are no longer required to
comply with the above, we will vote the shares in
our own right.
21
ANNUITY PURCHASE RATE TABLES
VARIABLE ANNUITY PURCHASE RATE TABLE
MORTALITY TABLE USED: The rates in the Variable Annuity Purchase Rate Table are
based upon the Annuity 2000 Mortality Table projected using a generational
approach with an initial projection of 20 years. An age setback of 1 year will
be used if the annuity payments begin in the year 2013-2022, 2 years if the
annuity payments begin in the year 2023-2032, and an additional 1-year setback
for each additional 10 years. The assumed investment return in the table is
4.00%.
Age is to be taken for the exact number of years and completed months. Values
for fractional ages are obtained by simple interpolation. Consideration for ages
or combination of lives not shown will be furnished by Safeco Life upon request.
CONSIDERATION REQUIRED TO PURCHASE $1 OF MONTHLY VARIABLE ANNUITY*
LIFE ANNUITY LIFE ANNUITY LIFE ANNUITY JOINT & SURVIVOR**
NO PERIOD CERTAIN 5 YEARS CERTAIN 10 YEARS CERTAIN 5 YEARS
LIFE CERTAIN
AGE MALE FEMALE MALE FEMALE MALE FEMALE ANNUITY AND LIFE
60 $ 197.53 $ 212.16 $ 198.19 $ 212.54 $ 200.20 $ 213.72 $ 230.94 $ 230.94
61 193.64 208.52 194.37 208.94 196.57 210.24 227.76 227.76
62 189.65 204.77 190.44 205.23 192.88 206.66 224.45 224.46
63 185.55 200.90 186.42 201.42 189.13 202.98 221.03 221.04
64 181.35 196.93 182.31 197.50 185.33 199.22 217.48 217.50
65 177.06 192.84 178.12 193.47 181.50 195.37 213.81 213.83
66 172.68 188.65 173.87 189.33 177.63 191.43 210.02 210.04
67 168.23 184.34 169.56 185.09 173.76 187.42 206.09 206.12
68 163.72 179.91 165.22 180.74 169.88 183.34 202.05 202.08
69 159.18 175.37 160.85 176.29 166.01 179.20 197.88 197.92
70 154.60 170.71 156.48 171.73 162.17 175.01 193.59 193.64
71 150.02 165.94 152.11 167.08 158.37 170.78 189.18 189.24
72 145.44 161.07 147.76 162.36 154.62 166.52 184.66 184.74
73 140.86 156.11 143.42 157.57 150.93 162.26 180.03 180.13
74 136.27 151.08 139.09 152.73 147.30 158.01 175.30 175.43
75 131.68 145.99 134.77 147.87 143.74 153.79 170.48 170.63
76 127.09 140.88 130.49 143.00 140.26 149.63 165.58 165.76
77 122.51 135.74 126.25 138.13 136.87 145.54 160.59 160.83
78 117.95 130.59 122.05 133.29 133.58 141.54 155.55 155.83
79 113.42 125.44 117.92 128.46 130.42 137.65 150.44 150.79
80 108.93 120.28 113.85 123.67 127.38 133.89 145.29 145.72
81 104.49 115.13 109.87 118.94 124.48 130.28 140.10 140.62
82 100.10 110.01 105.98 114.28 121.74 126.86 134.89 135.53
83 95.78 104.94 102.19 109.72 119.16 123.63 129.67 130.45
84 91.53 99.92 98.50 105.28 116.75 120.62 124.46 125.41
85 87.36 94.99 94.94 100.98 114.50 117.82 119.27 120.42
86 83.26 90.15 91.50 96.85 112.41 115.23 114.12 115.52
87 79.24 85.43 88.21 92.92 110.47 112.85 109.02 110.72
88 75.30 80.83 85.06 89.19 108.68 110.66 103.99 106.04
89 71.50 76.43 82.09 85.70 107.04 108.66 99.07 101.53
90 67.84 72.24 79.28 82.44 105.56 106.88 94.29 97.19
* The consideration shown refers to the net value of the Portfolios used to
purchase a variable annuity after premium taxes or other applicable charges
are deducted. For example, if the Annuitant is a 65-year old male, a Life
Annuity initially equivalent to a monthly income of $1,000 will cost
$177,060. However, because this is a variable annuity, the dollar amount of
this monthly income is not guaranteed and may increase or decrease.
** Annuitant and second Annuitant are assumed to be the same age.
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FIXED ANNUITY PURCHASE RATE TABLE
MORTALITY TABLE USED: The rates in the Fixed Annuity Purchase Rate Table are
based upon the Annuity 2000 Mortality Table projected using a generational
approach with an initial projection of 20 years. The effective interest rate
assumed in the table is 2.00%.
Age is to be taken for the exact number of years and completed months. Values
for fractional ages are obtained by simple interpolation. Consideration for ages
or combination of lives not shown will be furnished by Safeco Life upon request.
CONSIDERATION REQUIRED TO PURCHASE $1 OF MONTHLY FIXED ANNUITY*
LIFE ANNUITY LIFE ANNUITY LIFE ANNUITY JOINT & SURVIVOR**
NO PERIOD CERTAIN 5 YEARS CERTAIN 10 YEARS CERTAIN 5 YEARS
LIFE CERTAIN
AGE MALE FEMALE MALE FEMALE MALE FEMALE ANNUITY AND LIFE
60 $ 255.94 $ 279.92 $ 256.65 $ 280.33 $ 258.98 $ 281.70 $ 311.12 $ 311.13
61 249.36 273.38 250.13 273.83 252.70 275.34 304.87 304.88
62 242.72 266.76 243.56 267.26 246.40 268.91 298.51 298.52
63 236.01 260.05 236.93 260.60 240.09 262.42 292.04 292.05
64 229.25 253.27 230.27 253.88 233.78 255.88 285.46 285.48
65 222.44 246.42 223.57 247.09 227.50 249.29 278.79 278.81
66 215.61 239.50 216.87 240.23 221.25 242.67 272.02 272.04
67 208.76 232.51 210.18 233.31 215.06 236.02 265.15 265.18
68 201.92 225.45 203.52 226.33 208.93 229.36 258.20 258.23
69 195.12 218.32 196.91 219.30 202.90 222.69 251.16 251.21
70 188.37 211.14 190.37 212.22 196.98 216.04 244.06 244.11
71 181.68 203.90 183.91 205.12 191.19 209.41 236.88 236.95
72 175.07 196.62 177.54 198.00 185.53 202.84 229.66 229.74
73 168.55 189.33 171.28 190.88 180.01 196.34 222.38 222.49
74 162.10 182.04 165.10 183.81 174.64 189.94 215.08 215.21
75 155.71 174.78 159.01 176.79 169.43 183.67 207.75 207.91
76 149.41 167.58 153.04 169.85 164.39 177.55 200.41 200.61
77 143.20 160.44 147.18 163.00 159.52 171.61 193.08 193.33
78 137.08 153.39 141.45 156.26 154.85 165.86 185.77 186.08
79 131.07 146.41 135.87 149.64 150.39 160.32 178.49 178.87
80 125.19 139.52 130.43 143.14 146.14 155.02 171.25 171.71
81 119.42 132.74 125.16 136.80 142.13 149.99 164.06 164.63
82 113.80 126.08 120.06 130.63 138.35 145.25 156.95 157.64
83 108.31 119.55 115.13 124.65 134.83 140.82 149.93 150.77
84 102.96 113.18 110.38 118.89 131.56 136.71 143.01 144.03
85 97.76 106.98 105.83 113.37 128.54 132.93 136.21 137.45
86 92.70 100.97 101.48 108.12 125.74 129.45 129.54 131.05
87 87.79 95.16 97.34 103.14 123.18 126.28 123.02 124.85
88 83.02 89.57 93.42 98.48 120.82 123.38 116.67 118.88
89 78.46 84.26 89.74 94.14 118.68 120.77 110.53 113.17
90 74.10 79.24 86.28 90.11 116.76 118.46 104.61 107.73
* The consideration shown refers to the net value of the Fixed Account
Options used to purchase a fixed annuity adjusted for any MVA and after
premium taxes or other applicable charges are deducted. For example, if the
Annuitant is a 65-year old male, a Life Annuity which provides a guaranteed
monthly income of $1,000 will cost $222,440.
** Annuitant and second Annuitant are assumed to be the same age.
23
