Allstate Life
Insurance Company
A Stock Company
Home Office: Allstate Plaza, Northbrook, Illinois 60062-7154
Flexible Premium Deferred Variable Annuity Contract
This Contract is issued to customers of Allstate Life Insurance Company.
Throughout this Contract, "you" and "your" refer to the Contract owner(s). "We",
"us" and "our" refer to Allstate Life Insurance Company.
Contract Summary
This flexible premium deferred variable annuity provides a cash withdrawal
benefit and a death benefit during the Accumulation Phase and periodic income
payments beginning on the Payout Start Date during the Payout Phase.
The dollar amount of income payments or other values provided by this Contract,
when based on the investment experience of the Variable Account, will vary to
reflect the performance of the Variable Account and are not guaranteed as to
dollar amount.
This Contract does not pay dividends.
The tax status of this Contract as it applies to the Owner should be reviewed
each year.
PLEASE READ YOUR CONTRACT CAREFULLY.
This is a legal contract between the Contract Owner and Allstate Life Insurance
Company.
Return Privilege
If you are not satisfied with this Contract for any reason, you may return it to
us or our agent within 20 days after you receive it. We will refund any purchase
payments allocated to the Variable Account, adjusted to reflect investment gain
or loss from the date of allocation to the date of cancellation, plus any
purchase payments allocated to the Fixed Account Options. (Where required by
state law, we will refund any purchase payments.) If this Contract is qualified
under Section 408 of the Internal Revenue Code, we will refund the greater of
any purchase payments or the Contract Value.
If you have any questions about your Allstate Life variable annuity, please
contact Allstate Life at (000) 000-0000.
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Secretary Chairman and Chief
Executive Officer
LU4518FL
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TABLE OF CONTENTS
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THE PERSONS INVOLVED.......................................................4
ACCUMULATION PHASE.........................................................5
PAYOUT PHASE..............................................................12
INCOME PAYMENT TABLES.....................................................15
GENERAL PROVISIONS........................................................16
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ANNUITY DATA
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CONTRACT NUMBER:................................................444444444
ISSUE DATE:..............................................January 15, 1999
INITIAL PURCHASE PAYMENT:......................................$10,000.00
IRA
INITIAL ALLOCATION OF PURCHASE PAYMENT:
ALLOCATED
AMOUNT (%)
VARIABLE SUB-ACCOUNTS
Sub-account 1 10%
Sub-account 2 10%
Sub-account 3 10%
Sub-account 4 10%
Rate
Allocated Guaranteed Guaranteed
Amount (%) Interest Rate Through
STANDARD FIXED ACCOUNT
1 Year Guaranteed Period 10% 5.00% 07/01/2002
DOLLAR COST AVERAGING FIXED ACCOUNT
1 Year Guarantee Period 10% 5.00% 01/15/2000
MINIMUM GUARANTEED RATE
Dollar Cost Averaging Fixed Account:............................3.00%
PAYOUT START DATE:..........................................January 15, 2054
OWNER(s):.......................................................Xxxx Xxx
................................................................Xxxx Xxx
ANNUITANT:......................................................Xxxx Xxx
AGE AT ISSUE:.................................................35
SEX:........................................................Male
RELATIONSHIP
BENEFICIARY TO OWNER PERCENTAGE
Xxxx Xxx Wife 50%
Xxxx Xxx Husband 50%
RELATIONSHIP
CONTINGENT BENEFICIARY TO OWNER PERCENTAGE
Xxxxx Xxx Daughter 100%
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TABLE OF MINIMUM GUARANTEED VALUES * ONE YEAR GUARANTEE PERIOD
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TOTAL WITHDRAWAL
END OF YEAR ACCOUNT VALUE VALUE
1 1,050 987
2 2,111 1,984
3 3,204 3,019
4 4,330 4,094
5 5,490 5,211
6 6,685 6,372
7 7,916 7,578
8 9,183 8,843
9 10,489 10,149
10 11,833 11,493
11 13,218 12,878
12 14,645 14,305
13 16,114 15,774
14 17,628 17,288
15 19,187 18,847
16 20,792 20,452
17 22,446 22,106
18 24,149 23,809
19 25,904 25,564
20 27,711 27,371
*These Minimum Guaranteed Values assume that an initial purchase payment of
$1,000 plus additional $1,000 purchase payments were made in each subsequent
year and were allocated in full to the one year guarantee period of the fixed
account. Interest is credited to the initial purchase payment at the guaranteed
effective annual interest rate shown on the Annuity Data page for the initial
guarantee period. After the initial guarantee period, interest is credited to
the initial purchase payments and to the additional subsequent purchase payments
at the minimum guaranteed effective annual interest rate shown on the Annuity
Data page for all years shown. These values assume that no partial withdrawals
are made and no state premium taxes must be paid. If withdrawals are made or
state premium taxes must be paid, the Minimum Guaranteed Values will be less
than those shown. If additional subsequent purchase payments are not made as
described above, the Minimum Guaranteed Values will be more or less than those
shown.
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THE PERSONS INVOLVED
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Owner The person named at the time of application is the Owner of this Contract
unless subsequently changed. As Owner, you will receive any periodic income
payments, unless you have directed us to pay them to someone else.
You may exercise all rights stated in this Contract, subject to the rights of
any irrevocable Beneficiary.
You may change the Owner or Beneficiary at any time. You may name a new
Annuitant prior to the Payout Start Date. Once we have received a satisfactory
written request for a change of Owner, Beneficiary, or Annuitant, the change
will take effect as of the date you signed it. We are not liable for any payment
we make or other action we take before receiving any written request for a
change from you.
You may not assign an interest in this Contract as collateral or security for a
loan. However, you may assign periodic income payments under this Contract prior
to the Payout Start Date. We are bound by an assignment only if it is signed by
the assignor and filed with us. We are not responsible for the validity of the
assignment.
If the sole surviving Owner dies prior to the Payout Start Date, the Beneficiary
becomes the new Owner. If the sole surviving Owner dies after the Payout Start
Date, the Beneficiary becomes the new Owner and will receive any subsequent
guaranteed income payments.
If more than one person is designated as Owner:
o Owner as used in this Contract refers to all persons named as Owners,
unless otherwise indicated;
o any request to exercise ownership rights must be signed by all Owners; and
o on the death of any person who is an Owner, the surviving person(s) named
as Owner will continue as Owner.
Annuitant The Annuitant is the person named on the Annuity Data Page, but may be
changed by the Owner, as described above. The Annuitant must be a living
individual. If the Annuitant dies prior to the Payout Start Date, the new
Annuitant will be:
o the youngest Owner; otherwise
o the youngest beneficiary.
Beneficiary The Beneficiary is the person(s) named on the Annuity Data Page, but
may be changed by the Owner, as described above. We will determine the
Beneficiary from the most recent written request we have received from you. If
you do not name a Beneficiary or if the Beneficiary named is no longer living,
the Beneficiary will be:
o your spouse if living; otherwise
o your children equally if living; otherwise
o your estate.
The Beneficiary may become the Owner under the circumstances described in the
Owner provision above.
Natural Person As used in this Contract, Natural Person means a living
individual or trust entity that is treated as an individual for Federal Income
Tax purposes under the Internal Revenue Code.
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ACCUMULATION PHASE
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Accumulation Phase Defined The "Accumulation Phase" is the first of two phases
during your Contract. The Accumulation Phase begins on the issue date of the
Contract stated on the Annuity Data Page. This phase will continue until the
Payout Start Date unless the Contract is terminated before that date.
Contract Year "Contract Year" is the one year period beginning on the issue date
of the Contract and on each anniversary of the issue date.
Investment Alternatives The "Investment Alternatives" are the subaccounts of the
Variable Account and the Fixed Account Options. We reserve the right to limit
the availability of the Investment Alternatives for new investments.
Purchase Payments Purchase payments for this contract are flexible. The initial
purchase payment shown on the Annuity Data Page must be paid on the issue date.
Thereafter, you may make payments of at least $100 at any time prior to the
Payout Start Date. We may limit the maximum amount of premium payments we will
accept.
Purchase payments are payable to us at our home office.
We will invest the purchase payments in the Investment Alternatives you have
selected. You may allocate any portion of your purchase payment, in whole
percents from 0% to 100%, or in exact dollar amounts to any of the Investment
Alternatives. The total allocation must equal 100%.
The allocation of the initial purchase payment is shown on the Annuity Data
Page. Allocation of each subsequent purchase payment will be the same as the
allocation for the most recent purchase payment unless you change the
allocation. You may change the allocation of subsequent purchase payments at any
time, simply by giving us written notice. Any change will be effective when we
receive the notice.
Variable Account The "Variable Account" for this Contract is the Allstate Life
Insurance Company Separate Account I. This account is a separate investment
account to which we allocate assets contributed under this and certain other
Contracts. These assets will not be charged with liabilities arising from any
other business we may have.
Variable Subaccounts The Variable Account is divided into subaccounts. Each
subaccount invests solely in the shares of the mutual fund underlying that
subaccount.
Fixed Account Options The Fixed Account Options are the Dollar Cost Averaging
Fixed Account Option and the Standard Fixed Account.
Dollar Cost Averaging Fixed Account Purchase payments allocated to the Dollar
Cost Averaging Fixed Account option will earn interest at the current rate in
effect at the time of allocation. The rate will never be less than the minimum
guaranteed rate shown on the Annuity Data Page. Each purchase payment and
associated interest in the Dollar Cost Averaging Fixed Account option must be
transferred to other investment alternatives in equal monthly installments. The
number of monthly installments must be no more than 12. At the end of 12 months
from the date of a purchase payment allocation to the Dollar Cost Averaging
Fixed Account, any remaining portion of the purchase payment and interest in the
Dollar Cost Averaging Fixed Account will be allocated to other investment
alternatives as defined by the current Dollar Cost Averaging Fixed Account
allocation. You may only allocate money to the Dollar Cost Averaging Fixed
Account option by allocating a portion of a purchase payment. No amount may be
transferred into the Dollar Cost Averaging Fixed Account.
Standard Fixed Account Money in the Standard Fixed Account will earn interest at
the current rate in effect at the time of allocation or transfer to the Standard
Fixed Account during the guarantee period. We will offer a one year guarantee
period. Other guarantee periods will be offered at our discretion. Subsequent
renewal dates will be on anniversaries of the first renewal date. After the
initial guarantee period, a renewal rate will be declared at our discretion.
Crediting Interest We credit interest daily to money allocated to the Fixed
Account Options at a rate which compounds over one year to the interest rate we
guaranteed when the money was allocated. We will credit interest on the initial
purchase payment from the issue date. We will credit interest to subsequent
purchase payments allocated to the Fixed Account Options from the date we
receive them at a rate declared by us. We will credit interest to transfers from
the date the transfer is made. The interest rate for the Dollar Cost Averaging
Fixed Account Options will never be less than the minimum guaranteed rate shown
on the Annuity Data Page.
Transfers You may transfer your Contract Value between Investment Alternatives
prior to the Payout Start Date. You may make 12 transfers per Contract Year
without charge. Each transfer after the 12th transfer in any Contract Year may
be assessed a $10 transfer fee.
Transfers are subject to the following restrictions:
o No amount may be transferred into the Dollar Cost Averaging Fixed Account.
o The maximum amount transferable from the Standard Fixed Account during any
Contract Year is the greater of 30% of the Standard Fixed Account balance
as of the last Contract Anniversary or the greatest of any prior transfer
from the Standard Fixed Account. This limitation does not apply to Dollar
Cost Averaging. However, if any interest rate is renewed at a rate at least
one percentage point less than the pervious rate, the Contract Owner may
elect to transfer up to 100% of the amounts receiving that reduced rate
within 60 days of the notification of the interest rate decrease. The
Company reserves the right to defer transfers from the Standard Fixed
Account for up to six months from the date of request.
o The minimum amount that may be transferred from the Standard Fixed Account
or a Subaccount of the Variable Account is $100; if the total amount
remaining in the Standard Fixed Account or the Subaccount of the Variable
Account after a transfer would be less than $100, the entire amount may be
transferred. These limitations do not apply to the Dollar Cost Averaging
Fixed Account.
o At the end of 12 months from the date of a purchase payment allocation to
the Dollar Cost Averaging Fixed Account, any remaining portion of the
purchase payment and interest in the Dollar Cost Averaging Fixed Account
will be allocated to other Investment Alternatives as defined by the
current Dollar Cost Averaging Fixed Account allocation.
We reserve the right to waive the transfer fees and restrictions contained in
this contract.
Contract Value On the issue date of the Contract, the Contract Value is equal to
the initial purchase payment. After the issue date, the Contract Value is equal
to the sum of:
o the number of Accumulation Units you hold in each subaccount of the
Variable Account multiplied by the Accumulation Unit Value for that
subaccount on the most recent Valuation Date; plus
o the total value you have in the Fixed Account Options.
If you withdraw the entire Contract Value, you may receive an amount less than
the Contract Value because a Withdrawal Charge, income tax withholding, and a
premium tax charge may apply.
Valuation Period and Valuation Date A "Valuation Period" is the time interval
between the closing of the New York Stock Exchange on consecutive Valuation
Dates. A "Valuation Date" is any date the New York Stock Exchange is open for
trading.
Subaccount Values The value of a subaccount is equal to the number of
Accumulation Units you hold for that subaccount multiplied by the accumulation
unit value for that subaccount on the most recent valuation date.
Accumulation Units and Accumulation Unit Value Amounts which you allocate to a
Subaccount of the Variable Account are used to purchase Accumulation Units in
that subaccount at the price next determined after our receipt of the purchase
payment or transfer. The Accumulation Unit Value for each subaccount is
calculated at the end of any Valuation Period by multiplying the Accumulation
Unit Value at the end of the immediately preceding Valuation Period by the
subaccount's Net Investment Factor for the current Valuation Period. The
Accumulation Unit Values may go up or down depending upon the investment
experience of the underlying portfolio and the deduction of certain fees and
expenses. Additions or transfers to a Subaccount of the Variable Account will
increase the number of Accumulation Units for that subaccount. Withdrawals or
transfers from a Subaccount of the Variable Account and deductions for Contract
Maintenance Charges will decrease the number of Accumulation Units for that
subaccount.
Net Investment Factor For each Variable Subaccount, the "Net Investment Factor"
for a Valuation Period is equal to:
o The sum of:
o the net asset value per share of the mutual fund portfolio underlying the
subaccount determined at the end of the Valuation Period, plus
o the per share amount of any dividend or capital gain distributions made by
the mutual fund portfolio underlying the subaccount during the current
Valuation Period, plus or minus
o a per share credit or charge with respect to any taxes which we paid or for
which we reserved during the Valuation Period which are determined by us to
be attributable to the operation of the subaccount (no federal income taxes
are applicable under present law).
o Divided by the net asset value per share of the mutual fund portfolio
underlying the subaccount determined as of the end of the immediately
preceding Valuation Period.
o The result is reduced by the annualized Mortality and Expense Risk Charge
and the annualized Administrative Expense Charge divided by the number of
days in the current calendar year and then multiplied by the number of
calendar days in the current Valuation Period.
The net investment factor may be greater, less than, or equal to one; therefore,
the value of an accumulation unit may increase, decrease, or remain the same.
Mortality and Expense Risk Charge The annualized aggregate Mortality and Expense
Risk Charge is equal to 1.15% of the net asset value of each subaccount. (See
Net Investment Factor for a description of how this charge is applied.) Our
expense and mortality experience will not adversely affect the dollar amount of
variable benefits or other contractual payments or values under this contract.
Administrative Expense Charge The annualized Administrative Expense Charge is
.10% of the net asset value of the subaccount. (See Net Investment Factor for a
description of how this charge is applied.) This charge compensates us for the
cost of administering the contracts and the Variable Account.
Contract Maintenance Charge Prior to the Payout Start Date, a Contract
Maintenance Charge will be deducted from your Contract Value on each Contract
Anniversary. The charge is only deducted from the subaccounts of the Variable
Account. The charge will be deducted from the money market subaccount; if the
money market subaccount has insufficient funds to cover the Contract Maintenance
Charge, the balance will be deducted on a pro-rata basis from each of the other
subaccounts of the Variable Account in the proportion that your value in each
bears to your total value in all subaccounts of the Variable Account, excluding
the money market subaccount. A full Contract Maintenance Charge will be deducted
if the Contract is terminated on any date other than a Contract Anniversary. The
annualized charge will never be greater than $35 per Contract Year. The Contract
Maintenance Charge will be waived if total purchase payments are $50,000 or more
or if all money is allocated to the Fixed Account Options on the Contract
Anniversary.
After the Payout Start Date the Contract Maintenance Charge will be deducted in
equal parts from each income payment. The Contract Maintenance Charge will be
waived if the Contract Value on the Payout Start Date is $50,000 or more or if
all payments are Fixed Amount Income Payments..
Taxes Any premium taxes or income tax withholding relating to the Contract may
be deducted from purchase payments or the Contract Value when the tax is
incurred or at a later time.
Withdrawal You have the right to withdraw part or all of your Contract Value,
less any applicable taxes and Withdrawal Charges, at any time during the
Accumulation Phase. Each withdrawal must be at least $50. You must specify the
Investment Alternative(s) from which you wish to make a withdrawal. If any
withdrawal reduces the Contract Value to less than $500, we will treat the
request as a withdrawal of the entire Contract Value. If you withdraw the entire
Contract Value, the Contract will terminate.
When you make a withdrawal, your Contract Value will be reduced by the amount
paid to you and any applicable Withdrawal Charge, and/or taxes. A Contract
Maintenance Charge will also be deducted if the Contract is terminated on a day
other than a Contract Anniversary. Any Withdrawal Charge will be waived on
withdrawals taken to satisfy IRS minimum distribution rules. This waiver is
permitted only for withdrawals which satisfy distributions resulting from this
Contract.
Withdrawal Charge Withdrawals in excess of the Free Withdrawal Amount will be
subject to a Withdrawal Charge as follows:
Payment Year: 1 2 3 4 5 6 7 8 and Later
Percentage: 7% 7% 6% 6% 5% 4% 3% 0%
The Withdrawal Charge is deducted from remaining Contract Value so that the
actual reduction in Contract Value as a result of the withdrawal will be greater
than the withdrawal amount requested and paid.
For purposes of determining the Withdrawal Charge, the Contract Value is deemed
to be withdrawn in the following order:
First. Earnings--The amount of contract value in excess of all purchase payments
that have not previously been withdrawn;
Second. Old Purchase Payments--Purchase payments received by us more than seven
years prior to the date of withdrawal which have not been previously withdrawn;
Third. Any additional amounts available as a free withdrawal, as described
below; and
Fourth. New Purchase Payments--Purchase payments received by us less than seven
years prior to the date of withdrawal. These payments are deemed to be withdrawn
on a first-in, first-out basis.
For each purchase payment withdrawal, the "Payment Year" in the table is
measured from the date we received the purchase payment. The Withdrawal Charge
is determined by multiplying the applicable percentage times that part of each
withdrawal that represents New Purchase Payments in excess of the Free
Withdrawal Amount.
Free Withdrawal Amount Each Contract Year, we determine the Free Withdrawal
Amount which is equal to the greater of earnings not previously withdrawn or 15%
of purchase payments. Each Contract Year, you may withdraw the Free Withdrawal
Amount without any Withdrawal Charge. Any Free Withdrawal Amount which is not
withdrawn during a Contract year may not be carried over to increase the Free
Withdrawal Amount available in a subsequent year.
Death of Owner or Annuitant A benefit may be paid to the Owner determined
immediately after the death if, prior to the Payout Start Date:
o any Owner dies; or
o the Annuitant dies and the Owner is not a natural person.
If the Owner eligible to receive a benefit is not a natural person, the Owner
may elect to receive the benefit in one or more distributions. Otherwise, if the
Owner is a natural person, the Owner may elect to receive a benefit either in
one or more distributions or by periodic payments through an Income Plan.
A Death Benefit will be paid if:
o the Owner elects to receive the Death Benefit within 180 days of the date
of death; and
o payment is made as of the date we determine the value of the Death Benefit,
as defined at the end of the Death Benefit provision.
Otherwise, the Settlement Value will be paid. In any event, the entire value of
the Contract must be distributed within five (5) years after the date of death
unless an Income Plan is elected or a surviving spouse continues the Contract in
accordance with the following provisions. We reserve the right to extend the 180
day period when we will pay the Death Benefit.
If an Income Plan is elected, payments form the Income Plan must begin within
one year of the date of death and must be payable throughout:
o the life of the Owner; or
o a period not to exceed the life expectancy of the Owner; or
o the life of the Owner with payments guaranteed for a period not to exceed
the life expectancy of the Owner.
If the surviving spouse of the deceased is the new Owner, then the spouse may
elect one of the options listed above or may continue the Contract in the
Accumulation Phase as if the death had not occurred. If the Contract is
continued in the Accumulation Phase, the following conditions apply:
o On the day the Contract is continued, the Contract Value will be the Death
Benefit as determined at the end of the Valuation Period during which we
received due proof of death.
o The surviving spouse may make a single withdrawal of any amount within one
year of the date of death without incurring a Withdrawal Charge.
o Prior to the Payout Start Date, the Death Benefit of the continued Contract
will be the greater of:
o the sum of all purchase payments reduced by a withdrawal adjustment, as
defined in the Death Benefit provision; or
o the Contract Value on the date we determine the Death Benefit.
The withdrawal adjustment is defined in the Death Benefit provision.
Death Benefit Except as defined above when the surviving spouse continues the
Contract, prior to the Payout Start Date, the Death Benefit is equal to the
greatest of the following Death Benefit alternatives:
o the sum of all purchase payments reduced by a withdrawal adjustment, as
defined below; or
o the Contract Value on the date we determine the Death Benefit; or
o the amount that would have been payable in the event of a full withdrawal
of the Contract value on the date we determine the Death Benefit; or
o the Contract Value on each Death Benefit anniversary prior to the date we
determine the Death Benefit, increased by any purchase payments made since
that Death Benefit anniversary and reduced by a withdrawal adjustment, as
defined below.
The first Death Benefit anniversary is the 7th Contract Anniversary. Subsequent
Death Benefit anniversaries are those Contract Anniversaries that are multiples
of 7 Contract Years, beginning with the 14th Contract Anniversary. For example,
the 7th, 14th, and 21st Contract Anniversaries are the first three Death Benefit
anniversaries.
The withdrawal adjustment is equal to (a) divided by (b), with the result
multiplied by (c) where:
(a) equals the withdrawal amount.
(b) equals the Contract Value immediately prior to the withdrawal
(c) equals the value of the applicable Death Benefit alternative immediately
prior to the withdrawal.
We will determine the value of the Death Benefit as of the end of the Valuation
Period during which we receive a complete request for payment of the Death
Benefit. A complete request includes due proof of death.
Settlement Value The Settlement Value is the same amount that would be paid in
the event of a full withdrawal of the Contract Value. We will calculate the
Settlement Value at the end of the Valuation Period coinciding with the
requested distribution date for payment or on the mandatory distribution date of
5 years after the date of death, whichever is earlier.
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PAYOUT PHASE
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Payout Phase Defined The "Payout Phase" is the second of the two phases during
your Contract. During this phase the Contract Value less any applicable taxes is
applied to the Income Plan you choose and is paid out as provided in that plan.
The Payout Phase begins on the Payout Start Date. It continues until we make the
last payment as provided by the Income Plan chosen.
Payout Start Date The "Payout Start Date" is the date the Contract Value less
any applicable taxes is applied to an Income Plan. The anticipated Payout Start
Date is shown on the Annuity Data Page. You may change the Payout Start Date by
writing to us at least 30 days prior to this date.
The Payout Start Date must be on or before the later of:
o the Annuitant's 90th birthday; or
o the 10th anniversary of the Contract's issue date.
Income Plans An "Income Plan" is a series of payments on a scheduled basis to
you or to another person designated by you. The Contract Value on the Payout
Start Date less any applicable taxes, will be applied to your Income Plan choice
from the following list:
1. Life Income with Guaranteed Payments. We will make payments for as long
as the Annuitant lives. If the Annuitant dies before the selected
number of guaranteed payments have been made, we will continue to pay
the remainder of the guaranteed payments.
2. Joint and Survivor Life Income with Guaranteed Payments. We will make
payments for as long as either the Annuitant or joint Annuitant, named
at the time of Income Plan selection, lives. If both the Annuitant and
the joint Annuitant die before the selected number of guaranteed
payments have been made, we will continue to pay the remainder of the
guaranteed payments.
3. Guaranteed Number of Payments. We will make payments for a specified
number of months beginning on the Payout Start Date. These payments do
not depend on the Annuitant's life. The number of months guaranteed may
be from 60 to 360. Income payments for less than 120 months may be
subject to a Withdrawal Charge.
We reserve the right to make available other Income Plans.
Income Payments Income Payment amounts may be Variable Amount Income Payments,
Fixed Amount Income Payments, or both. The method of calculating the initial
payment is different for the two types of payments. The Contract Maintenance
Charge will be deducted in equal payments from each income payment. The Contract
Maintenance Charge will be waived if the Contract Value on the Payout Start Date
is $50,000 or more or if all payments are Fixed Amount Income Payments.
Variable Amount Income Payments Variable Amount Income Payments will vary to
reflect the performance of the Variable Account in which you are invested at
that time. The portion of the initial income payment based upon a particular
Variable subaccount is determined by applying the amount of the Contract Value
in that subaccount on the Payout Start Date, less any applicable premium tax, to
the appropriate value from the Income Payment Table. This portion of the initial
income payment is divided by the Annuity Unit Value on the Payout Start Date for
that Variable subaccount to determine the number of Annuity Units from that
subaccount which will be used to determine subsequent income payments. Unless
transfers are made between subaccounts, each subsequent income payment from that
subaccount will be that number of Annuity Units times the Annuity Unit Value for
the subaccount for the Valuation Date on which the income payment is made.
Annuity Unit Value The Annuity Unit Value for each subaccount of the Variable
Account at the end of any Valuation Period is calculated by:
o multiplying the Annuity Unit Value at the end of the immediately
preceding Valuation Period by the subaccount's Net Investment Factor
during the period; and then
o dividing the result by 1.000 plus the assumed investment rate for the
period. The assumed investment rate is an effective annual rate of 3%.
We reserve the right to offer an assumed investment rate greater than
3%.
Fixed Amount Income Payments The income payment amount derived from any monies
allocated to the Fixed Account Options during the Accumulation Phase is fixed
for the duration of the Income Plan. The Fixed Amount Income Payment is
calculated by applying the portion of the Contract Value in the Fixed Account
Options on the Payout Start Date, less any applicable premium tax, to the
greater of the appropriate value from the Income Payment Table selected or such
other value as we are offering at that time.
Annuity Transfers After the Payout Start Date, no transfers may be made from the
Fixed Amount Income Payment. Transfers between subaccounts of the Variable
Account may not be made for six months after the Payout Start Date. Transfers
from the Variable Amount Income Payment to the Fixed Amount Income Payment may
be made only if Income Plan 3 has been chosen, and may not be made for six
months after the Payout Start Date. Transfers permitted above may be made once
every six months after the initial six-month waiting period concludes.
Payout Terms and Conditions The income payments are subject to the following
terms and conditions:
o If no purchase payments have been received for two years and the Contract
Value is less than $2,000, or not enough to provide an initial payment of
at least $20, we reserve the right to:
o change the payment frequency to make the payment at least $20; or
o terminate the Contract and pay you the Contract Value less any applicable
taxes in a lump sum.
o If we do not receive a written choice of an Income Plan from you at least
30 days before the Payout Start Date, the Income Plan will be Life Income
with Guaranteed Payments for 120 months.
o If you choose an Income Plan which depends on any person's life, we may
require:
o proof of age and sex before income payments begin; and
o proof that the Annuitant or joint Annuitant is still alive before we make
each payment.
o After the Payout Start Date, the Income Plan cannot be changed and
withdrawals cannot be made unless income payments are being made from the
Variable Account under Income Plan 3. You may terminate the income payments
being made from the Variable Account under Income Plan 3 at any time and
withdraw the value, subject to Withdrawal Charges.
o If any Owner dies during the Payout Phase, the remaining income payments
will be paid to the successor Owner as scheduled.
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INCOME PAYMENT TABLES
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The initial income payment will be at least the amount based on the adjusted age
of the Annuitant(s) and the tables below, less any federal income taxes which
are withheld. The adjusted age is the actual age on the Payout Start Date
reduced by one year for each six full years between January 1, 1983 and the
Payout Start Date. Income payments for ages and guaranteed payment periods not
shown below will be determined on a basis consistent with that used to determine
those that are shown. The Income Payment Tables are based on 3.0% interest and
the 1983a Annuity Mortality Tables.
Income Plan 1 - Life Income with Guaranteed Payments for 120 Months
============================================================================================================================
Monthly Income Payment for each $1,000 Applied to this Income Plan
============================================================================================================================
------------------- ---------------------- ---------------- ---------------------- ---------------- ========================
Annuitant's Annuitant's Age Annuitant's
Age Male Female Male Female Age Male Female
------------------- ---------------------- ---------------- ---------------------- ---------------- ========================
35 $3.43 $3.25 49 $4.15 $3.82 63 $5.52 $4.97
36 3.47 3.28 50 4.22 3.88 64 5.66 5.09
37 3.51 3.31 51 4.29 3.94 65 5.80 5.22
38 3.55 3.34 52 4.37 4.01 66 5.95 5.35
39 3.60 3.38 53 4.45 4.07 67 6.11 5.49
40 3.64 3.41 54 4.53 4.14 68 6.27 5.64
41 3.69 3.45 55 4.62 4.22 69 6.44 5.80
42 3.74 3.49 56 4.71 4.29 70 6.61 5.96
43 3.79 3.53 57 4.81 4.38 71 6.78 6.13
44 3.84 3.58 58 4.92 4.46 72 6.96 6.31
45 3.90 3.62 59 5.02 4.55 73 7.13 6.50
46 3.96 3.67 60 5.14 4.65 74 7.31 6.69
47 4.02 3.72 61 5.26 4.75 75 7.49 6.88
48 4.08 3.77 62 5.39 4.86
------------------- ---------------------- ---------------- ---------------------- ---------------- ========================
Income Plan 2 - Joint and Survivor Life Income with Guaranteed Payments for 120
Months
==============================================================================================================================
Monthly Income Payment for each $1,000 Applied to this Income Plan
==============================================================================================================================
Female Annuitant's Age
-------------------- =========================================================================================================
Male
Annuitant's 35 40 45 50 55 60 65 70 75
Age
-------------------- ---------- ------------ ----------- ---------- ---------- ---------- ---------- --------- ===============
35 $3.09 $3.16 $3.23 $3.28 $3.32 $3.36 $3.39 $3.40 $3.42
40 3.13 3.22 3.31 3.39 3.46 3.51 3.56 3.59 3.61
45 3.17 3.28 3.39 3.50 3.60 3.69 3.76 3.81 3.85
50 3.19 3.32 3.45 3.60 3.74 3.87 3.98 4.07 4.14
55 3.21 3.35 3.51 3.68 3.87 4.06 4.23 4.37 4.48
60 3.23 3.37 3.55 3.75 3.98 4.23 4.47 4.70 4.88
65 3.24 3.39 3.57 3.80 4.07 4.37 4.71 5.04 5.34
70 3.24 3.40 3.59 3.83 4.13 4.48 4.90 5.36 5.81
75 3.25 3.41 3.61 3.86 4.17 4.56 5.04 5.61 6.22
-------------------- ---------- ---------- ---------- ---------- ----------- ---------- ------------ ----------- =============
Income Plan 3 - Guaranteed Number of Payments
--------------------------------- =============================================
Monthly Income Payment for each
Specified Period $1,000 Applied to this Income Plan
--------------------------------- =============================================
--------------------------------- =============================================
10 Years $9.61
11 Years 8.86
12 Years 8.24
13 Years 7.71
14 Years 7.26
15 Years 6.87
16 Years 6.53
17 Years 6.23
18 Years 5.96
19 Years 5.73
20 Years 5.51
--------------------------------- ============================================
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GENERAL PROVISIONS
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The Entire Contract The entire contract consists of this Contract, any written
application, and any Contract endorsements and riders.
All statements made in a written application are representations and not
warranties. No statement will be used by us in defense of a claim or to void the
Contract unless it is included in a written application.
We may not modify this Contract without your consent, except to make it comply
with any changes in the Internal Revenue Code or as required by any other
applicable law. Only our officers may change this Contract. No other individual
may do this.
Incontestability We will not contest the validity of this Contract after the
issue date.
Misstatement of Age or Sex If any age or sex has been misstated, we will pay the
amounts which would have been paid at the correct age and sex.
If we find the misstatement of age or sex after the income payments begin, we
will:
o pay all amounts underpaid including interest calculated at an effective
annual rate of 6%; or
o stop payments until the total payments are equal to the corrected amount.
Annual Statement At least once a year, prior to the Payout Start Date, we will
send you a statement containing Contract Value information. The effective date
of the information in the annual statement will not be more than two months
before date of mailing. We will provide you with Contract Value information at
any time upon request. The information presented will comply with any applicable
law.
Settlements We may require that this Contract be returned to us prior to any
settlement. We must receive due proof of death of the Owner or Annuitant prior
to settlement of a death claim. Due proof of death is one of the following:
o a certified copy of a death certificate; or
o a certified copy of a decree of a court of competent jurisdiction as to a
finding of death; or
o any other proof acceptable to us.
Any full withdrawal or Death Benefit under this Contract will not be less than
the minimum benefits required by any statute of the state in which the Contract
is delivered.
Deferment of Payments We will pay any amounts due from the Variable Account
under this Contract within seven days, unless:
o the New York Stock Exchange is closed for other than usual weekends or
holidays, or trading on such Exchange is restricted;
o an emergency exists as defined by the Securities and Exchange Commission;
or
o the Securities and Exchange Commission permits delay for the protection of
Contract holders.
We reserve the right to postpone payments or transfers from the Fixed Account
options for up to six months. If we elect to postpone payments from the Fixed
Account for 30 days or more, we will pay interest as required by applicable law.
Any interest would be payable from the date the withdrawal request is received
by us to the date the payment is made.
Variable Account Modifications We reserve the right, subject to applicable law,
to make additions to, deletions from, or substitutions for the mutual fund
shares underlying the subaccounts of the Variable Account. We will not
substitute any shares attributable to your interest in a subaccount of the
Variable Account without notice to you and prior approval of the Securities and
Exchange Commission, to the extent required by the Investment Company Act of
1940, as amended.
We reserve the right to establish additional subaccounts of the Variable
Account, each of which would invest in shares of a mutual fund. You may then
instruct us to allocate purchase payments or transfers to such subaccounts,
subject to any terms set by us or the mutual fund.
In the event of any such substitution or change, we may by endorsement, make
such changes as may be necessary or appropriate to reflect such substitution or
change.
If we deem it to be in the best interests of persons having voting rights under
the Contracts, the Variable Account may be operated as a management company
under the Investment Company Act of 1940, as amended, or it may be deregistered
under such Act in the event such registration is no longer required.
LU4519 Page 1
ALLSTATE LIFE INSURANCE COMPANY
(herein called "we" or "us")
Enhanced Death Benefit Rider
As used in this endorsement, "Contract" means the Contract or Certificate to
which this endorsement is attached.
This rider was issued because you selected the Enhanced Death Benefit.
Enhanced Death Benefit The Death Benefit provision of your Contract is modified
as follows:
If the owner is a living individual, the Enhanced Death Benefit applies only to
the death of the owner. If the owner is not a living individual, the Enhanced
Death Benefit applies only to the death of the annuitant.
The Death Benefit will be the greater of the values stated in your Contract, or
the value of the Enhanced Death Benefit.
The Enhanced Death Benefit is equal to the greater of the Enhanced Death Benefit
A or Enhanced Death Benefit B. The Enhanced Death Benefit will cease on the date
we determine the value of the Death Benefit.
Enhanced Death Benefit A.
At issue, the Enhanced Death Benefit A is equal to the initial purchase
payment. After issue, the Enhanced Death Benefit A is recalculated when
a purchase payment or withdrawal is made or on a Contract anniversary
as follows:
1. For purchase payments, the Enhanced Death Benefit A is equal
to the most recently calculated Enhanced Death Benefit A plus
the purchase payment.
2. For withdrawals, the Enhanced Death Benefit A is equal to the
most recently calculated Enhanced Death Benefit A reduced by a
withdrawal adjustment defined below.
3. On each Contract anniversary, the Enhanced Death Benefit A is
equal to the greater of the Contract Value or the most
recently calculated Enhanced Death Benefit A.
In the absence of any withdrawals or purchase payments, the Enhanced
Death Benefit A will be the greatest of all Contract anniversary
Contract Values on or prior to the date we calculate the Death Benefit.
The Enhanced Death Benefit A will be recalculated for purchase
payments, withdrawals and on Contract anniversaries until the oldest
owner or the annuitant, if the owner is not a living individual,
attains age 85.
After age 85, the Enhanced Death Benefit A will be recalculated only
for purchase payments and withdrawals.
Enhanced Death Benefit B.
The Enhanced Death Benefit B is equal to total purchase payments made
reduced by a withdrawal adjustment defined below. Each purchase payment
and each withdrawal adjustment will accumulate daily at a rate
equivalent to 5% per year until the earlier of:
1. the date we determine the Death Benefit, or
2. the first day of the month following the oldest owner's or, if
the owner is not a living individual, the annuitant's 85th
birthday.
The Enhanced Death Benefit B will never be greater than the maximum
death benefit allowed by any nonforfeiture laws which govern the
Contract.
Withdrawal Adjustment
The withdrawal adjustment is equal to (a) divided by (b), with the
result multiplied by (c), where:
(a) = the withdrawal amount.
(b) = the Contract Value immediately prior to the withdrawal.
(c) = the most recently calculated Enhanced Death Benefit A or B, as
applicable.
Mortality and Expense Risk Charge The Mortality and Expense Risk Charge
provision of your Contract is modified as follows:
The annualized Mortality and Expense Risk Charge of 1.15% is changed to 1.35%.
After the death of the owner, if the surviving spouse elects to continue the
Contract in the Accumulation Phase, then the annualized Mortality and Expense
Risk Charge of 1.35% will be changed to 1.15%. The effective date of this change
will be the date we determine the value of the Death Benefit.
Except as amended in this rider, the Contract remains unchanged.
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Xxxxxxx X. Xxxxxxx Xxxxx X. Lower, II
Secretary Chairman and Chief Executive Officer
Page 3
LU4521
ALLSTATE LIFE INSURANCE COMPANY
(herein called "we" or "us")
Enhanced Death and Income Benefit Combination Rider
As used in this endorsement, AContract@ means the Contract or Certificate to
which this endorsement is attached.
This rider was issued because you selected the Enhanced Death and Income
Benefit.
Enhanced Death Benefit The Death Benefit provision of your Contract is modified
as follows:
If the owner is a living individual, the Enhanced Death Benefit applies only to
the death of the owner. If the owner is not a living individual, the Enhanced
Death Benefit applies only to the death of the annuitant.
The Death Benefit will be the greater of the values stated in your Contract, or
the value of the Enhanced Death Benefit.
The Enhanced Death Benefit is equal to the greater of the Enhanced Death Benefit
A or Enhanced Death Benefit B. The Enhanced Death Benefit will cease on the date
we determine the value of the Death Benefit.
Enhanced Death Benefit A.
At issue, the Enhanced Death Benefit A is equal to the initial purchase
payment. After issue, the Enhanced Death Benefit A is recalculated when
a purchase payment or withdrawal is made or on a Contract anniversary
as follows:
1. For purchase payments, the Enhanced Death Benefit A is equal
to the most recently calculated Enhanced Death Benefit A plus
the purchase payment.
2. For withdrawals, the Enhanced Death Benefit A is equal to the
most recently calculated Enhanced Death Benefit A reduced by a
withdrawal adjustment defined below.
3. On each Contract anniversary, the Enhanced Death Benefit A is
equal to the greater of the Contract Value or the most
recently calculated Enhanced Death Benefit A.
In the absence of any withdrawals or purchase payments, the Enhanced
Death Benefit A will be the greatest of all Contract anniversary
Contract Values on or prior to the date we calculate the Death Benefit.
The Enhanced Death Benefit A will be recalculated for purchase
payments, withdrawals and on Contract anniversaries until the oldest
owner or the annuitant, if the owner is not a living individual,
attains age 85.
After age 85, the Enhanced Death Benefit A will be recalculated only
for purchase payments and withdrawals.
Enhanced Death Benefit B.
The Enhanced Death Benefit B is equal to total purchase payments made
reduced by a withdrawal adjustment. Each purchase payment and each
withdrawal adjustment will accumulate daily at a rate equivalent to 5%
per year until the earlier of:
1. the date we determine the Death Benefit, or
2. the first day of the month following the oldest owner's or, if
the owner is not a living individual, the annuitant's 85th
birthday.
The Enhanced Death Benefit B will never be greater than the maximum
death benefit allowed by any nonforfeiture laws which govern the
Contract.
Withdrawal Adjustment
The withdrawal adjustment is equal to (a) divided by (b), with the
result multiplied by (c), where:
(a) = the withdrawal amount.
(b) = the Contract Value immediately prior to the withdrawal. (c) = the
most recently calculated Enhanced Death Benefit A or B, as applicable.
Enhanced Income Benefit The following is added to your Contract.
I. The Enhanced Income Benefit will apply if the owner elects a Payout Start
Date that:
o is on or after the tenth Contract anniversary, and
o is prior to the annuitant's age 90.
Throughout the PAYOUT PHASE section of your Contract, the term
"Contract Value" is replaced with "the greater of the Contract Value or
the Enhanced Income Benefit".
If the amount applied to an income plan is the Enhanced Income Benefit,
then the income plan must provide payments guaranteed for either single
or joint life with a period certain of at least:
o 10 years, if the youngest annuitant's age is 80 or less on the
date the amount is applied, or
o 5 years, if the youngest annuitant's age is greater than 80 on
the date the amount is applied.
If the amount applied to an income plan is the Contract Value, then the
income plan may be any plan then offered by us.
II. The Enhanced Income Benefit is equal to what the value of the Enhanced
Death Benefit would be on the Payout Start Date.
Mortality and Expense Risk Charge The Mortality and Expense Risk Charge
provision of your Contract is modified as follows:
The annualized Mortality and Expense Risk Charge of 1.15% is changed to 1.55%.
After the death of the owner, if the surviving spouse elects to continue the
Contract in the Accumulation Phase, then the annualized Mortality and Expense
Risk Charge of 1.55% will be changed to 1.15%. The effective date of this change
will be the date we determine the value of the Death Benefit.
Except as amended in this rider, the Contract remains unchanged.
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Xxxxxxx X. Xxxxxxx Xxxxx X. Lower, II
Secretary Chairman and Chief Executive Officer
