Exhibit 4(a)
READ YOUR CONTRACT CAREFULLY
THIS IS A LEGAL CONTRACT
We promise to pay, subject to the provisions of this
contract, the benefits described by this contract.
We make this promise and issue this contract in
consideration of the application for this contract and
the payment of the purchase payments.
The owner and beneficiary are as named in the
application unless they are changed as provided for in
this contract.
Minnesota Life Insurance Company is a subsidiary of
Minnesota Mutual Companies, Inc., a mutual insurance
holding company. The owner is a member of Minnesota
Mutual Companies, Inc., which holds it's annual meetings
on the first Tuesday in March of each year at 3 p.m.
local time. The meetings are held at 000 Xxxxxx Xxxxxx
Xxxxx, Xx. Xxxx, XX 00000-0000
Signed for Minnesota Life Insurance Company at St. Xxxx,
Minnesota, on the contract date.
/s/ Xxxxxx X. Xxxxxxx
President
/s/ Xxxxxx X. Xxxxxxxxx
Secretary
Registrar
NOTICE OF YOUR RIGHT TO EXAMINE THIS
CONTRACT FOR 10 DAYS.
IT IS IMPORTANT TO US THAT YOU ARE SATISFIED WITH THIS
CONTRACT. IF YOU ARE NOT SATISFIED, YOU MAY RETURN
THE CONTRACT TO US OR TO YOUR AGENT WITHIN 10 DAYS
OF ITS RECEIPT. IF YOU EXERCISE THIS RIGHT, YOU WILL
RECEIVE THE GREATER OF: (A) THE TOTAL ANNUITY VALUE
OF THIS CONTRACT ATTRIBUTABLE TO YOUR PURCHASE PAYMENTS
PLUS THE AMOUNTS DEDUCTED FROM YOUR PURCHASE PAYMENTS;
OR (B) THE AMOUNT OF PURCHASE PAYMENTS PAID UNDER THIS
CONTRACT. WE WILL PAY THIS REFUND WITHIN 7 DAYS AFTER WE IMMEDIATE
RECEIVE YOUR NOTICE OF CANCELLATION. VARIABLE ANNUITY
CONTRACT
ALL PAYMENTS AND VALUES PROVIDED BY GUARANTEED MINIMUM
THIS CONTRACT ARE VARIABLE. A MINIMUM ANNUITY PAYMENT
ANNUITY PAYMENT AMOUNT IS GUARANTEED AMOUNT
TO YOU. OTHER PAYMENTS AND VALUES ARE
NOT GUARANTEED. A NONPARTICIPATING
CONTRACT
MINNESOTA LIFE
Minnesota Life Insurance Company
000 Xxxxxx Xxxxxx Xxxxx
Xx. Xxxx, XX 00000-0000
MHC-95-9326
CONTRACT INDEX
Alphabetical Index to the Provisions of Your Contract
Page
----
Additional Information
Amount Payable at Death
Annuity Provisions
Assignment
Beneficiary
Contract Charges
Definitions
General Information
Misstatement
Purchase Payments
Valuation
Withdrawal and Surrender
YOUR CONTRACT INFORMATION - EFFECTIVE OCTOBER 1, 1995
This page one supersedes any previously dated page one for this contract.
Please replace any prior page one of your contract with this new page.
Owner: Xxxx X. Xxx
Contract Number: 0-000-000
Contract Date: October 1, 1995
Jurisdiction: Your State
Annuity Option: Single Life
Annuitant: Xxxx X. Xxx
Annuitant's Date of Birth: October 1, 1935
Annuitant's Sex: Female
Joint Annuitant: not applicable
Joint Annuitant's Date of Birth: not applicable
Joint Annuitant's Sex: not applicable
Annuity Payment Commencement Date: October 1, 1995
Annuity Payment Frequency: Monthly
End of Cash Value Period: September 30, 2019
Annuity Unit Value on October 1, 1995: 1.012345
Prior to Effect of
Purchase Payment Purchase Payment As of
October 1, 1995 October 1, 1995 October 1, 1995
--------------- --------------- ---------------
Cumulative Purchase Payments: 0.00 100,000.00 100,000.00
Total Annuity Value: 0.00 93,789.44 93,789.44
Cash Value: 0.00 81,667.70 81,667.70
* Initial Annuity Payment Amount: 0.00 460.99 460.99
** Guaranteed Minimum
Annuity Payment Amount: 0.00 391.84 391.84
** Number of Annuity Units: 0.00 455.3685 455.3685
** Number of Cash Value Units: 0.00 455.3685 455.3685
* The annuity payment amount shown here is annuity units multiplied by
the annuity unit value as of the effective date of this page one. The
actual annuity payment amount at the next annuity payment date will
differ from this amount. It will be based on the net separate account
sub-account performance from the effective date to the next annuity
payment date.
** These values will change each time you make a cash value withdrawal or
an additional purchase payment. You will be notified of the new
values.
MHC-95-9326 Minnesota Life 1
CASH VALUE FACTORS AND GUARANTEED ANNUITY PAYMENT PURCHASE RATES FOR
CALCULATING THE INITIAL ANNUITY PAYMENT AMOUNT WHICH IS PURCHASED WITH
EACH $1,000 OF VALUE APPLIED FOR A NEW PURCHASE PAYMENT
Annuitant: Xxxx X. Xxx
Contract Number: 0-000-000
Guaranteed Annuity Payment
Amount per $1,000 of Value Applied
Cash Value Factor for a New Purchase Payment
----------------- --------------------------
Contract Date: not applicable 4.8911
Annuitization
Anniversary
-----------
0 177.1572 4.8911
1 172.8837 4.9703
2 168.4179 5.0558
3 163.7512 5.1482
4 158.8745 5.2483
5 153.7783 5.3569
6 148.4528 5.4749
7 142.8876 5.6034
8 137.0720 5.7437
9 130.9947 5.8972
10 124.6440 6.0657
11 118.0074 6.2510
12 111.0722 6.4553
13 103.8249 6.6810
14 96.2515 6.9309
15 88.3373 7.2079
16 80.0670 7.5141
17 71.4244 7.8540
18 62.3930 8.2312
19 52.9552 8.6490
20 43.0926 9.1100
21 32.7862 9.6147
22 22.0161 10.1598
23 10.7613 10.7353
24 0.0000 11.3202
over 24 0.0000 not applicable
This table provides factors to determine cash values and the guaranteed annuity
payment amount per $1,000 of value applied for a new purchase payment at the
contract date and each annuitization anniversary. The applicable factor at
times between these dates will be determined consistently with the mortality and
interest rates used to determine the factors shown here.
MHC-95-9326 Minnesota Life 1A
Total Annuity Value Factors and Annuity Payment Purchase Rates Applicable
at a Cash Value Withdrawal while the Annuitant is Alive
per $1,000 Applied - Single Life Issue
Annuitant: Xxxx X. Xxx
Contract Number: 0-000-000
FOR CASH VALUE AND ANNUITY UNITS ATTRIBUTABLE TO TRANSACTIONS ON OR AFTER:
OCTOBER 1, 1995
Annuity Payment
Factor Purchase Rate
Factor Applicable to at a Cash Value
Applicable to Annuity Units Withdrawal while
Cash Value in excess of Annuitant is alive
Units Cash Value Units per $1,000 Applied
----- ---------------- ------------------
Contract Date: 203.4522 191.6400 not applicable
Annuitization
Anniversary
-----------
0 203.4522 191.6400 5.2181
1 200.1934 188.2657 5.3116
2 196.7917 184.7827 5.4117
3 193.2402 181.1931 5.5189
4 189.5356 177.5000 5.6338
5 185.6737 173.7047 5.7568
6 181.6504 169.8072 5.8890
7 177.4614 165.8058 6.0311
8 173.1024 161.6965 6.1844
9 168.5694 157.4751 6.3502
10 163.8597 153.1408 6.5299
11 158.9726 148.6972 6.7250
12 153.9099 144.1518 6.9371
13 148.6764 139.5159 7.1676
14 143.2807 134.8037 7.4181
15 137.7353 130.0297 7.6905
This table provides factors to determine the total annuity value and the annuity
payment purchase rates applicable at a cash value withdrawal while the annuitant
is alive, at the contract date and each annuitization anniversary. The
applicable factor at times between these dates will be determined consistently
with the mortality and interest rates used to determine the factors shown here.
MHC-95-9326 Minnesota Life 1B
Total Annuity Value Factors and Annuity Payment Purchase Rates Applicable
at a Cash Value Withdrawal while the Annuitant is Alive
per $1,000 Applied - Single Life Issue
Annuitant: Xxxx X. Xxx
Contract Number: 0-000-000
FOR CASH VALUE AND ANNUITY UNITS ATTRIBUTABLE TO TRANSACTIONS ON OR AFTER:
OCTOBER 1, 1995
Annuity Payment
Factor Purchase Rate
Factor Applicable to at a Cash Value
Applicable to Annuity Units Withdrawal while
Annuitization Cash Value in excess of Annuitant is alive
Anniversary Units Cash Value Units per $1,000 Applied
----------- ----- ---------------- ------------------
16 132.0819 125.2714 7.9826
17 126.3228 120.4840 8.2998
18 120.4885 115.6810 8.6444
19 114.6193 110.8750 9.0191
20 108.7685 106.0804 9.4268
21 103.0065 101.3125 9.8704
22 97.4264 96.5881 10.3532
23 92.1500 91.9241 10.8785
24 87.3376 87.3376 11.4498
25 82.8458 82.8458 0.0000
26 78.4655 78.4655 0.0000
27 74.2135 74.2135 0.0000
28 70.1063 70.1063 0.0000
29 66.1586 66.1586 0.0000
30 62.3764 62.3764 0.0000
31 58.9525 58.9525 0.0000
32 55.7028 55.7028 0.0000
33 52.6101 52.6101 0.0000
34 49.6496 49.6496 0.0000
35 46.7882 46.7882 0.0000
36 43.9834 43.9834 0.0000
37 41.1801 41.1801 0.0000
38 38.3067 38.3067 0.0000
39 35.2973 35.2973 0.0000
40 32.0851 32.0851 0.0000
This table provides factors to determine the total annuity value and the annuity
payment purchase rates applicable at a cash value withdrawal while the annuitant
is alive, at the contract date and each annuitization anniversary. The
applicable factor at times between these dates will be determined consistently
with the mortality and interest rates used to determine the factors shown here.
MHC-95-9326 Minnesota Life 1C
Total Annuity Value Factors and Annuity Payment Purchase Rates Applicable
at a Cash Value Withdrawal while the Annuitant is Alive
per $1,000 Applied - Single Life Issue
Annuitant: Xxxx X. Xxx
Contract Number: 0-000-000
FOR CASH VALUE AND ANNUITY UNITS ATTRIBUTABLE TO TRANSACTIONS ON OR AFTER:
OCTOBER 1, 1995
Annuity Payment
Factor Purchase Rate
Factor Applicable to at a Cash Value
Applicable to Annuity Units Withdrawal while
Annuitization Cash Value in excess of Annuitant is alive
Anniversary Units Cash Value Units per $1,000 Applied
----------- ----- ---------------- ------------------
41 30.0168 30.0168 0.0000
42 27.9334 27.9334 0.0000
43 25.8440 25.8440 0.0000
44 23.7625 23.7625 0.0000
45 21.7058 21.7058 0.0000
46 19.6915 19.6915 0.0000
47 17.7367 17.7367 0.0000
48 15.8564 15.8564 0.0000
49 14.0629 14.0629 0.0000
This table provides factors to determine the total annuity value and the annuity
payment purchase rates applicable at a cash value withdrawal while the annuitant
is alive, at the contract date and each annuitization anniversary. The
applicable factor at times between these dates will be determined consistently
with the mortality and interest rates used to determine the factors shown here.
MHC-95-9326 Minnesota Life 1D
DEFINITIONS
When we use the following words, this is what we mean:
ANNUITANT
The person named on page one of the contract who may receive lifetime benefits
under the contract. Except in the event of the death of either annuitant prior
to the annuity payment commencement date, joint annuitants will be considered a
single entity.
YOU, YOUR
The owner of this contract. The owner may be the annuitant or someone else.
The owner shall be that person or entity named as owner in the application.
JOINT OWNER
The person designated to share equally in the rights and privileges provided to
the owner of this contract. Only you and your spouse may be named as joint
owners.
WE, OUR, US
Minnesota Life Insurance Company.
BENEFICIARY
The person, persons or entity designated to receive death benefits payable under
the contract in the event of the annuitant's death.
WRITTEN REQUEST
A request in writing signed by you. In the case of joint owners, the signatures
of both owners will be required to complete a written request. In some cases,
we may provide a form for your use. We may also require that this contract be
sent to us with your written request.
PURCHASE PAYMENTS
Amounts paid to us as consideration for the benefits provided by this contract.
PURCHASE PAYMENT DATE
The date we receive a purchase payment in our home office.
CONTRACT DATE
The effective date of this contract.
ANNUITY PAYMENT DATE
Each day indicated by the annuity payment commencement date and the annuity
payment frequency for an annuity payment to be determined. This is shown on
page one of this contract.
ANNUITY PAYMENT COMMENCEMENT DATE
The first annuity payment date as specified on page one.
ANNUITIZATION ANNIVERSARY
The same day and month as the annuity payment commencement date for each
succeeding year of this contract.
MHC-95-9326 Minnesota Life 2
FUND
The mutual fund or separate investment portfolio within a series mutual fund
which is designated as an eligible investment for the separate account.
VALUATION DATE
Any date on which a fund is valued.
VALUATION PERIOD
The period between successive valuation dates measured from the time of one
determination to the next.
ANNUITY UNIT
The standard of value for the variable annuity payment amount.
CASH VALUE UNIT
The measure of your interest in the separate account that is available for
withdrawal under this contract during the cash value period.
CASH VALUE PERIOD
The time during which a cash value exists under the contract. The cash value
period begins on the annuity payment commencement date and ends on the cash
value end date shown on page one.
CASH VALUE
The dollar amount available for withdrawal under this contract during the cash
value period. A cash value exists only as long as both the number of cash value
units and the applicable factor from the cash value factor table are greater
than zero.
TOTAL ANNUITY VALUE
The total annuity value represents your total interest in the separate account.
SURRENDER VALUE
The surrender value of this contract shall be the total annuity value as of the
date of surrender plus the amounts deducted from your purchase payments. Those
include deductions for sales charges, risk charges, and state premium taxes
where applicable.
SEPARATE ACCOUNT
A separate investment account entitled Variable Annuity Account. This
separate account was established by us under Minnesota law. The separate
account is composed of several sub-accounts. The assets of the separate
account are ours. Those assets are not subject to claims arising out of any
other business which we may conduct.
1940 ACT
The Investment Company Act of 1940, as amended, or any similar successor federal
legislation.
ANNUITY PAYMENTS
Payments made at regular intervals to the annuitant or any other payee. The
annuity payments will increase or decrease in amount. The changes will reflect
the investment experience of the sub-account of the separate account.
MHC-95-9326 Minnesota Life 3
GUARANTEED MINIMUM ANNUITY PAYMENT AMOUNT
The amount which is guaranteed as the minimum annuity payment amount. This
amount is payable without regard to the performance of the sub-account of the
separate account. Purchase payments, cash value withdrawals, and surrenders
will cause this guaranteed minimum annuity payment amount to be adjusted. The
adjustment will reflect your new interest in the separate account.
AGE
The age of a person at nearest birthday.
GENERAL INFORMATION
WHAT IS YOUR AGREEMENT WITH US?
This contract and the copy of the application attached to it constitute the
entire contract between you and us. Any statements made in the application
either by you or by the annuitant will, in the absence of fraud, be considered
representations and not warranties. Also, any statement made either by you or
the annuitant will not be used to void this contract unless the statement is
contained in the application.
No change or waiver of any of the provisions of this contract will be valid
unless made in writing by us. This must be signed by our president, a vice
president, secretary or an assistant secretary. No agent or other person has
the authority to change or waive any provision of this contract.
Any additional agreement attached to this contract will become a part of this
contract. The agreement will be subject to all the terms and conditions of this
contract unless we state otherwise in it.
HOW DO YOU EXERCISE YOUR RIGHTS UNDER THIS CONTRACT?
You can exercise all the rights under this contract by giving us a written
request. We will deal with you, unless this contract provides otherwise, on the
basis that you have full ownership and control of this contract.
HOW WILL YOU KNOW THE VALUE OF YOUR CONTRACT?
Each year we will send you a report. This report will summarize the year's
transactions. It will show the current total annuity value and cash value of
this contract, the current annuity payment amount, and the current guaranteed
minimum annuity payment amount. It will also show the current annuity unit
value. This report will be as of a date within two months of its mailing.
PURCHASE PAYMENTS
IS THIS AN IMMEDIATE ANNUITY?
Yes. Annuity payments begin on the annuity payment commencement date. This
date is shown on page one. Annuity payments must begin not later than 12 months
after the contract date. An earlier date may be required by law to qualify this
contract as an immediate annuity in the state in which this contract is
delivered.
MAY YOU MAKE ADDITIONAL PURCHASE PAYMENTS TO THIS CONTRACT AFTER ITS ISSUE?
Yes. You may make additional purchase payments to this contract after its issue
as long as we are accepting purchase payments for this class of contract. Each
additional purchase payment must be in an amount of at least $5,000. Total
purchase payments made by you may not exceed $1,000,000, except with our prior
consent. We may discontinue accepting purchase payments for this class of
contract. We can do
MHC-95-9326 Minnesota Life 4
this at any time. We may then terminate your ability to make additional
purchase payments into the contract.
DO YOU CHOOSE WHEN TO MAKE ADDITIONAL PURCHASE PAYMENTS?
Yes. You may choose when to make any additional purchase payments to this
contract at any time before the end of the cash value period. Purchase payments
may be made only while the annuitant is alive and we are accepting purchase
payments for this class of contract. No purchase payments are allowed after the
annuitant's death or after the cash value period has expired.
WHERE DO YOU MAKE ADDITIONAL PURCHASE PAYMENTS?
Your purchase payments must be made at our home office. Our home office is at
000 Xxxxxx Xxxxxx Xxxxx, Xx. Xxxx, Xxxxxxxxx 00000-0000. When we receive a
purchase payment from you, we will send you a confirmation and an updated page
one for this contract.
WILL PURCHASE PAYMENTS AFFECT FUTURE ANNUITY PAYMENTS?
Yes. Purchase payments made by you will purchase additional annuity units.
The net amount of each purchase payment, after deductions, will be applied to
purchase an additional initial annuity payment amount. This will be determined
as of the purchase payment date. This amount will be at least as great as that
determined by using the guaranteed annuity payment purchase rate table for new
purchase payments. This table is included in this contract.
The new number of annuity units after a purchase payment will be equal to the
number of annuity units prior to the purchase payment plus the additional
annuity units resulting from the current purchase payment. These annuity units
shall equal a number which is equal to the initial annuity payment amount
attributable to the new purchase payment, divided by the annuity unit value on
the purchase payment date.
When you make a purchase payment, we will inform you of the number of annuity
units in your contract. Annuity units will be recorded separately whenever a
different annuity payment purchase rate table is used.
WHAT ARE THE GUARANTEED ANNUITY PAYMENT PURCHASE RATES TO BE USED IN DETERMINING
THE ADDITIONAL ANNUITY PAYMENT AMOUNT ATTRIBUTABLE TO A NEW PURCHASE PAYMENT?
The guaranteed annuity payment purchase rates used for new purchase payments are
given in the guaranteed annuity payment purchase rate table. This table is
included in this contract. The rates are based on a 4.5% assumed interest rate
and Individual Annuity 1983 Table A mortality rates projected to the terminal
age of the table using projection scale G.
WILL THE GUARANTEED TABLE ALWAYS BE USED FOR NEW PURCHASE PAYMENTS?
Not always. At the time of a purchase payment, we may be using a table of
annuity payment purchase rates for this contract which would result in a larger
initial annuity payment. If we are, we will use that table instead.
WILL PURCHASE PAYMENTS AFFECT THE CASH VALUE?
Yes. Purchase payments will affect the cash value. The purchase payment will
increase the number of cash value units. The new number of cash value units
after a purchase payment will be equal to the number of cash value units prior
to the purchase payment plus the number of annuity units attributable to the new
purchase payment.
MHC-95-9326 Minnesota Life 5
We will inform you of the number of cash value units in your contract when you
make a purchase payment. Cash value units attributable to a purchase payment
will be recorded separately if a different annuity purchase rate table was used
to determine the additional annuity units purchased.
WILL PURCHASE PAYMENTS AFFECT THE GUARANTEED MINIMUM ANNUITY PAYMENT AMOUNT?
Yes. The guaranteed minimum annuity payment amount will be increased. This
increase will reflect your additional interest in the separate account after the
additional purchase payment. The new guaranteed minimum annuity payment amount
after an additional purchase payment will be equal to: the guaranteed minimum
annuity payment amount prior to the purchase payment, plus 85% of the additional
initial annuity payment amount attributable to the new purchase payment. This
will be determined on the date we receive the purchase payment.
We will inform you of the new guaranteed minimum annuity payment amount for your
contract when you make a purchase payment.
HOW ARE YOUR PURCHASE PAYMENTS INVESTED?
The net amount of your purchase payments, after deductions, is invested
exclusively in the Index 500 Account sub-account of the separate account.
ARE THERE ANY OTHER INVESTMENT OPTIONS?
No.
WHAT ARE THE INVESTMENTS OF THE SEPARATE ACCOUNT?
The separate account is divided into sub-accounts. For each sub-account, there
is a fund for the investment of that sub-account's assets. Net purchase
payments are invested in the funds at their net asset value.
If investment in a fund should no longer be possible or if we determine it
becomes inappropriate for contracts of this class, we may substitute another
fund. Substitution may be with respect to existing total annuity values, cash
values, future annuity payments, or future purchase payments.
MAY WE MAKE CHANGES TO THE SEPARATE ACCOUNT?
Yes. We reserve the right to transfer assets of the separate account to another
separate account. The transfer will be of assets associated with this class of
contracts. We will make that determination. If this type of transfer is made,
the term separate account, as used in this contract, shall then mean the
separate account to which the assets were transferred.
We also reserve the right, when permitted by law, to:
(a) deregister the separate account under the Investment Company Act of
1940;
(b) restrict or eliminate any voting rights of contract owners or other
persons who have voting rights as to the separate account; and
(c) combine the separate account with one or more other separate accounts.
CONTRACT CHARGES
ARE THERE CHARGES UNDER THIS CONTRACT?
Yes. This contract makes certain deductions from purchase payments. There are
also certain charges which are made directly to the separate account.
MHC-95-9326 Minnesota Life 6
WHAT DEDUCTIONS ARE MADE FROM YOUR PURCHASE PAYMENTS?
Deductions from your purchase payments are made for sales charges, risk charges,
and state premium taxes where applicable.
WHAT SALES CHARGES ARE DEDUCTED FROM YOUR PURCHASE PAYMENTS?
The sales charge is deducted from your purchase payments using the percentages
shown in the table below:
Cumulative Sales Charge as a Percentage
Total Purchase Payments of Purchase Payments
----------------------- --------------------
$ 0 - 499,999.99 4.500%
500,000 - 749,999.99 4.125%
750,000 - 1,000,000.00 3.750%
The applicable percentage from the chart will be based on the total cumulative
purchase payments to date, including the new purchase payment.
WHAT RISK CHARGES ARE DEDUCTED FROM YOUR PURCHASE PAYMENTS?
A risk charge is deducted from each purchase payment when paid. This is for our
guaranteeing the minimum annuity payment amount shown on page one. This risk
charge may be as much as 2% of each purchase payment.
WHAT ARE THE CHARGES ASSOCIATED WITH THE SEPARATE ACCOUNT?
There are three charges associated with the separate account. These are the
expense risk charge, the mortality risk charge, and the administrative charge.
All of these charges are deducted from the separate account on each valuation
date.
WHAT IS THE EXPENSE RISK CHARGE?
This is a charge to compensate us for the guarantee that the deductions provided
for in this contract will be sufficient to cover our actual expenses incurred.
Actual expense results incurred by us shall not adversely affect any payments or
values under this contract. On an annual basis, this charge may be as much as
0.60% of the net asset value of the separate account.
WHAT IS THE MORTALITY RISK CHARGE ASSOCIATED DIRECTLY WITH THE SEPARATE ACCOUNT?
This is a charge to compensate us for the mortality guarantees we make under the
contract. Actual mortality results incurred by us shall not adversely affect
any payments or values under this contract. On an annual basis, this charge may
be as much as 0.80% of the net asset value of the separate account.
WHAT IS THE ADMINISTRATIVE CHARGE?
This is a charge to compensate us for the administrative expenses we incur under
this contract. On an annual basis, this charge will not exceed 0.40% of the net
asset value of the separate account.
VALUATION
HOW IS THE CASH VALUE DETERMINED?
The cash value is equal to: the number of cash value units in the contract,
multiplied by the current annuity unit value, multiplied by the appropriate cash
value factor. The cash value factor comes from the table included in this
contract.
MHC-95-9326 Minnesota Life 7
HOW IS THE TOTAL ANNUITY VALUE DETERMINED?
While the annuitant is alive, the total annuity value is equal to: the sum of
the number of cash value units, multiplied by the annuity unit value, multiplied
by the appropriate factor from the total annuity value factor table(s) included
in this contract; plus the number of annuity units in excess of the number of
cash value units, multiplied by the annuity unit value, multiplied by the
annuity value factor. The total annuity value factor comes from the table(s)
included in this contract.
After the annuitant's death, the beneficiary may elect to continue annuity
payments. The payments will continue for the remainder of the cash value
period. If the beneficiary does so elect, the total annuity value will be equal
to the cash value at all times during the cash value period.
WHAT IS THE ANNUITY UNIT VALUE AND HOW IS IT DETERMINED?
The annuity unit value reflects the net investment experience of the sub-account
of the separate account. The annuity unit value was originally set at $1.00 on
the first valuation date. For any subsequent valuation date, its value is equal
to: the value on the preceding valuation date, multiplied by the net investment
factor for the sub-account for the valuation period ending on the current
valuation date, and multiplied by a factor adjusting out the effect for the
valuation period of the 4.5% annual assumed interest rate. This rate has been
built into this contract's total annuity value, cash value, and annuity payment
calculations.
WHAT IS THE NET INVESTMENT FACTOR FOR THE SUB-ACCOUNT?
The net investment factor for a valuation period is the gross investment rate
for such valuation period, less a deduction for the expense and mortality risk
charges and administrative charges. These charges shall be at a rate of not
more than 1.80% per annum.
The gross investment rate is equal to:
(a) the net asset value per share of a fund share held in the sub-account
of the separate account determined at the end of the current valuation
period; plus
(b) the per share amount of any dividend or capital gain distributions by
the fund if the "ex-dividend" date occurs during the current valuation
period; divided by
(c) the net asset value per share of that fund share held in the sub-
account determined at the end of the preceding valuation period.
XXXXXXXXXX AND SURRENDER
MAY YOU WITHDRAW FUNDS FROM THIS CONTRACT?
Yes. At any time during the cash value period of this contract you may request
a withdrawal from its cash value. Each withdrawal must be in the amount of at
least $500. However, if the cash value of the contract is less than that
amount, all of the remaining cash value in the contract must be withdrawn. You
must make a written request for any withdrawal.
IS A NEW NUMBER OF CASH VALUE UNITS DETERMINED AFTER A CASH VALUE WITHDRAWAL?
Yes. A cash value withdrawal reduces the number of cash value units of this
contract. The new number of cash value units after a withdrawal is equal to the
number of cash value units just prior to withdrawal, multiplied by the cash
value prior to withdrawal less the cash value withdrawn, divided by the cash
value prior to withdrawal. Cash value units are reduced on a last in, first out
basis.
When you make a withdrawal of cash value, we will inform you of the number of
cash value units remaining in your contract.
MHC-95-9326 Minnesota Life 8
IS THE CASH VALUE GUARANTEED?
No. The cash value decreases as annuity payments are made under the contract.
The cash value will also increase or decrease based on the performance of the
separate account sub-account given by the relative change in the annuity unit
value.
WILL FUTURE ANNUITY PAYMENTS BE AFFECTED BY A CASH VALUE WITHDRAWAL?
Yes. The number of annuity units used to calculate each future annuity payment
will be reduced to reflect the cash value withdrawal. The calculation of the
new number of annuity units will be based on whether or not the annuitant is
alive at the time the cash value withdrawal is made.
We will inform you of the number of annuity units remaining in your contract
whenever you make a cash value withdrawal.
HOW WILL THE NUMBER OF ANNUITY UNITS BE DETERMINED AFTER A CASH VALUE WITHDRAWAL
WHILE THE ANNUITANT IS ALIVE?
The new number of annuity units will be the new initial annuity payment amount
after a cash value withdrawal, as described in the next paragraph, divided by
the annuity unit value at the time of the withdrawal. The new initial annuity
payment amount is determined separately for purchase payments which used
different annuity payment purchase rates at the purchase payment date. The
number of annuity units is reduced, treating the number of annuity units and
cash value units derived from purchase payments using different annuity payment
purchase rates separately, on a last in, first out basis.
The new initial annuity payment amount after a cash value withdrawal will be
based on the remaining total annuity value immediately following the cash value
withdrawal. The new initial annuity payment amount will be the sum of the
following three values shown in the paragraph below. Annuity payment amounts
will be determined separately for purchase payments which used different annuity
payment purchase rates at the purchase payment date.
The new initial annuity payment amount after a cash value withdrawal will be
equal to the sum of:
(a) The number of cash value units remaining after the withdrawal
multiplied by the annuity unit value; plus
(b) The number of annuity units just prior to withdrawal minus the cash
value units just prior to withdrawal, multiplied by the annuity unit
value; plus
(c) The amount determined by steps 1 through 4,
(1) the total annuity value just prior to withdrawal; less
(2) the cash value just prior to withdrawal; and less
(3) the value in (b) multiplied by the appropriate total annuity
value factor for annuity units in excess of cash value units, as
of the withdrawal date, from the total annuity value factor
table(s) included in this contract; this sum then multiplied by
(4) the ratio of the cash value withdrawn divided by the cash value
just prior to withdrawal; applied to the appropriate annuity
payment purchase rate factor from table(s) included in this
contract for use at a cash value withdrawal while the annuitant
is alive.
The actual annuity payment amount payable for the next annuity payment date will
differ from this new initial annuity payment amount determined on the date of
the withdrawal. It will be based on the performance of the separate account
sub-account between the date of withdrawal and the valuation date for the next
annuity payment date as given by the relative change in the annuity unit value.
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HOW WILL THE NUMBER OF ANNUITY UNITS BE DETERMINED AFTER A CASH VALUE WITHDRAWAL
BY THE BENEFICIARY WHO ELECTED TO CONTINUE RECEIVING ANNUITY PAYMENTS FOR THE
REMAINDER OF THE CASH VALUE PERIOD AFTER THE ANNUITANT'S DEATH?
Whenever the beneficiary has elected to continue receiving annuity payments and
a withdrawal of cash value is made, the number of annuity units is set equal to
the number of cash value units as determined after the withdrawal of cash value.
WILL THE GUARANTEED MINIMUM ANNUITY PAYMENT AMOUNT BE AFFECTED BY A CASH VALUE
WITHDRAWAL?
Yes. The guaranteed minimum annuity payment amount will be reduced to reflect
your reduced interest in the separate account, after the cash value withdrawal,
as represented by the number of annuity units. The new guaranteed minimum
annuity payment amount will be equal to: the guaranteed minimum annuity payment
amount just prior to the withdrawal, multiplied by the number of annuity units
after the withdrawal divided by the number of annuity units prior to the
withdrawal.
We will inform you of the new guaranteed minimum annuity payment amount for your
contract when you make a cash value withdrawal.
MAY YOU SURRENDER THE CONTRACT?
Yes. At any time before the annuity payment commencement date you may surrender
this contract for its surrender value. You must make a written request for any
surrender. The surrender value will be determined as of the valuation date
coincident with or next following the date your written request is received at
our home office.
HOW WILL WITHDRAWAL OR SURRENDER PROCEEDS BE PAID?
We will pay those benefits in a single sum within seven days of receiving your
written request.
ANNUITY PROVISIONS
WHAT ANNUITY OPTIONS ARE ALLOWED?
This contract provides for lifetime annuity payments which are based on the
survival of a single annuitant or based on the combined survival of joint
annuitants. On the contract date you elected between the single life or joint
life option as shown on page one of this contract. That election, once made,
cannot be changed under this contract.
WHEN DO ANNUITY PAYMENTS BEGIN?
Annuity payments begin on the annuity payment commencement date.
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WHEN ARE ANNUITY PAYMENTS MADE?
Annuity payments are withdrawn from the sub-account on the valuation date on or
next following each annuity payment date. Each annuity payment is then paid as
directed immediately after its withdrawal from the sub-account.
HOW LONG ARE ANNUITY PAYMENTS PAID?
Annuity payments are paid during the lifetime of the annuitant. In the event of
the annuitant's death, the beneficiary may elect to continue annuity payments
for the remainder of the cash value period.
TO WHOM ARE THE ANNUITY PAYMENTS PAID?
Annuity payments will be paid to the person or persons named as an annuitant on
page one of this contract. Any annuity payments payable as a death benefit
elected by the beneficiary will be paid to the beneficiary.
CAN THE ANNUITANT DIRECT OR ASSIGN ANNUITY PAYMENTS TO BE PAID TO SOMEONE ELSE?
Yes. The annuitant, or the joint annuitants, can direct or assign annuity
payments to be made under the contract. Those payments will then be paid to
someone else. However, we will not be bound by any assignment until we have
recorded a written request of it at our home office. We are not responsible for
the validity of any direction or assignment. A direction to pay someone other
than the annuitant will not apply to any payment made by us before it was
recorded. Any claim made by an assignee will be subject to proof of the
assignee's interest and the extent of the assignment.
MAY WE REQUIRE ADDITIONAL INFORMATION?
Yes. We reserve the right to require proof satisfactory to us of the age of the
annuitant and of any joint annuitant. We may also require proof that a person
is alive before making any annuity payment which is based on the survival of
that person.
HOW IS THE AMOUNT OF AN ANNUITY PAYMENT DETERMINED?
The dollar amount of annuity payments is equal to the number of annuity units
remaining for this contract multiplied by the annuity unit value as of the
valuation date of the payment. The amount may increase or decrease from one
annuity payment date to the next.
IS THERE A GUARANTEED MINIMUM ANNUITY PAYMENT AMOUNT?
Yes. Each annuity payment date we will pay the annuitant the greater of: (a)
the annuity payment amount determined by multiplying the number of annuity units
times the annuity unit value; or (b) the guaranteed minimum annuity payment
amount currently in force for this contract.
AMOUNT PAYABLE AT DEATH
IS THERE A DEATH BENEFIT IF THE ANNUITANT OR JOINT ANNUITANT DIES BEFORE THE
ANNUITY PAYMENT COMMENCEMENT DATE?
Yes. When we receive due proof at our home office, satisfactory to us, of
either annuitant's death before the annuity payment commencement date, a death
benefit will be paid to you, or your beneficiary, if applicable. This death
benefit will be the sum of: the total annuity value plus the amounts deducted
from your purchase payments for sales charges, risk charges, and state premium
taxes where applicable.
IS THERE A DEATH BENEFIT WHEN THE ANNUITANT DIES AFTER THE ANNUITY PAYMENT
COMMENCEMENT DATE?
Yes. However, this death benefit is payable only so long as the contract has a
cash value. When we receive due proof, satisfactory to us, of the annuitant's
death after the annuity payment commencement date, we will pay the cash value of
the contract as a lump sum death benefit. The beneficiary will be the
MHC-95-9326 Minnesota Life 11
person or persons named in the application for this contract unless you
subsequently change the beneficiary. In that event, we will pay the death
benefit to the beneficiary named in your last change of beneficiary request as
provided for in this contract.
MAY A BENEFICIARY, IN THE EVENT OF THE ANNUITANT'S DEATH AFTER ANNUITY PAYMENTS
HAVE BEGUN, ELECT TO CONTINUE ANNUITY PAYMENTS UNTIL THE END OF THE CASH VALUE
PERIOD INSTEAD OF RECEIVING THE LUMP SUM DEATH BENEFIT?
Yes. A beneficiary may elect to continue annuity payments. However, the number
of annuity units will be set equal to the number of cash value units at the time
of the annuitant's death, the annuity payments to the beneficiary will terminate
at the end of the cash value period, and the guaranteed minimum annuity payment
amount will be adjusted in proportion to any change in the number of annuity
units. The new guaranteed minimum annuity payment amount will be equal to the
guaranteed minimum annuity payment amount just prior to the annuitant's death,
multiplied by the number of annuity units after the annuitant's death divided by
the number of annuity units prior to the annuitant's death.
If the beneficiary elects to continue the annuity payments, the cash value will
also continue on the beneficiary's behalf as part of the death benefit. This
allows the beneficiary to withdraw any or all of the cash value at any time
during the remaining cash value period. As with cash value withdrawals while
the annuitant is alive, cash value withdrawals by the beneficiary after the
annuitant's death will reduce future annuity payments and the guaranteed minimum
annuity payment amount. This reduction will be based on the reduced interest in
the separate account as described in the "Withdrawal and Surrender" section of
this contract.
WHEN MUST DEATH BENEFITS PAID AS AN ANNUITY BE PAID?
Death benefits payable after the annuitant's death must be distributed at least
as rapidly as under the method elected by the annuitant.
WHAT HAPPENS IF A BENEFICIARY DIES BEFORE THE ANNUITANT DIES?
If a beneficiary dies, that beneficiary's interest in this contract ends with
his or her death. Only those beneficiaries who survive will be eligible to
share in the amount payable to the beneficiary at the annuitant's death. If
there is no surviving beneficiary upon the death of the annuitant, any remaining
value of death benefit payable to the beneficiary will be paid to the
annuitant's estate.
ARE THERE ANY OTHER CIRCUMSTANCES WHERE DEATH BENEFITS WILL BE PAID?
Yes. If you are not an annuitant and you die, or if any joint owner who is
not an annuitant dies, a death benefit will be paid. This death benefit will
be the same amount as the amount that would be paid on the death of the
annuitant or joint annuitant and will be paid out in the same manner, except
that if death occurs before the annuity payment commencement date, such death
benefit will be paid out within five years of the date of death. On the
payment of such a death benefit in the event of the death of the owner, no
other contract benefits are then payable.
CAN YOU CHANGE THE BENEFICIARY?
Yes. You can file a written request with us to change the beneficiary. Your
written request will not be effective until it is recorded in our home office
records. After it has been recorded, it will take effect as of the date you
signed the request. However, if death occurs before the request has been
recorded, the request will not be effective as to any death proceeds we have
paid before the request was recorded in our home office.
ADDITIONAL INFORMATION
ARE THE CONTRACT BENEFITS PROTECTED?
Yes. To the extent permitted by law, no benefit provided by this contract will
be subject to any creditor's claim or process of law.
HOW WILL BENEFITS BE DETERMINED?
Any benefit described by this contract shall be calculated as of the date the
provisions of the contract are exercised.
MHC-95-9326 Minnesota Life 12
WILL THERE BE AN ADJUSTMENT IF THE ANNUITANT'S AGE OR SEX IS MISSTATED?
Yes. If the annuitant's age or sex has been misstated, the amount payable under
this contract as an annuity will be that amount which would have been paid based
upon the annuitant's correct age and sex. In the case of an overpayment, we may
either deduct the required amount from future contract payments or, we may
require you to pay us in cash. We may do both until we are fully repaid. In
the case of an underpayment, we will pay the required amount with the next
payment.
MUST YOU PROVIDE ANY ADDITIONAL INFORMATION?
Yes. You must provide us with any other information we need to administer this
contract. If you cannot do so, we may ask the person concerned for that
information. We shall not be liable for any payment based upon information
given to us in error or not given to us.
DO CONTRACT VALUES COMPLY WITH STATE REQUIREMENTS?
Yes. All values and benefits described by this contract are not less than the
minimum values and benefits required by any statute of the state in which this
contract is delivered.
WILL WE HOLD ANNUITY RESERVES UNDER THIS CONTRACT?
Yes. Reserves held by us for annuity payments under this contract shall not be
less than those reserves required by the state law. We will refer to the laws
of the state in which this contract is delivered.
MAY THIS CONTRACT BE MODIFIED?
Yes. This contract may be modified at any time. It may be modified only by
written agreement between you and us. However, no such modification will
adversely affect the rights of an annuitant under this contract unless made to
comply with a law or government regulation. A modification must be in writing.
You will have the right to accept or reject a modification.
WHEN WILL LUMP SUM PAYMENTS BE MADE?
Usually, we will make payment within seven days after payment is called for by
the terms of the contract. In the case of payments from the separate account,
we reserve the right to defer payment for any period during which the New York
Stock Exchange is closed for trading (except for normal holiday closing), or
when trading on the Exchange is restricted when the Securities and Exchange
Commission has determined that a state of emergency exists which may make such
determination and payment impractical or such other periods as the Commission
may by order permit for the protection of contract owners.
DO YOU HAVE ADDITIONAL VOTING RIGHTS?
Yes. If you have separate account annuity units under this contract you may
direct us with respect to the voting rights of fund shares held by us and
attributable to this contract.
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IMMEDIATE
VARIABLE ANNUITY CONTRACT
GUARANTEED MINIMUM
ANNUITY PAYMENT AMOUNT
A NONPARTICIPATING CONTRACT
MINNESOTA LIFE
