SECURITY BENEFIT LIFE INSURANCE COMPANY
FOUNDED IN 1892/TOPEKA, KS
FLEXIBLE PREMIUM DEFERRED GROUP UNALLOCATED
VARIABLE ANNUITY CONTRACT
THE COMPANY'S PROMISE
In consideration for the Purchase Payments and the attached application,
Security Benefit Life Insurance Company (the "Company") will pay the benefits of
this Contract according to its provisions.
LEGAL CONTRACT
PLEASE READ YOUR CONTRACT CAREFULLY. It is a legal Contract between the Owner
and the Company. The Contract's table of contents is on page 2.
FREE LOOK PERIOD-RIGHT TO CANCEL
IF FOR ANY REASON THE OWNER IS NOT SATISFIED WITH THIS CONTRACT, THE OWNER MAY
RETURN IT TO THE COMPANY WITHIN 10 DAYS FROM THE DATE OF RECEIPT. IT MAY BE
RETURNED BY DELIVERING OR MAILING IT TO THE COMPANY. IF RETURNED, THIS CONTRACT
SHALL BE DEEMED VOID FROM THE CONTRACT DATE. THE COMPANY WILL REFUND SEPARATE
ACCOUNT CONTRACT VALUE AS OF THE DATE THE RETURNED POLICY IS RECEIVED BY THE
COMPANY.
Signed for Security Benefit Life Insurance Company on the Contract Date.
XXXXX X. XXXXX XXXXXX X. XXXXXX
Secretary President
A BRIEF DESCRIPTION OF THIS CONTRACT
This is a FLEXIBLE PREMIUM DEFERRED GROUP UNALLOCATED VARIABLE ANNUITY CONTRACT.
*Purchase Payments may be made until termination of the Contract.
*This Contract is Participating.
ALL PAYMENTS AND VALUES PROVIDED BY THIS CONTRACT, ARE BASED ON THE INVESTMENT
EXPERIENCE OF THE SEPARATE ACCOUNT, ARE VARIABLE AND MAY INCREASE OR DECREASE IN
ACCORDANCE WITH THE INVESTMENT EXPERIENCE OF THE SEPARATE ACCOUNT. THERE ARE NO
GUARANTEED MINIMUM PAYMENTS OR CASH VALUES. (SEE "CONTRACT VALUE AND EXPENSE
PROVISIONS" AND "ANNUITY PAYMENT PROVISIONS" FOR DETAILS.)
[SBL LOGO]
SECURITY BENEFIT LIFE INSURANCE COMPANY
A Member of The Security Benefit Group of Companies
000 XX Xxxxxxxx Xxxxxx, Xxxxxx, XX 00000-0000
0-000-000-0000
Form GV6026 (7-98) BP 602631
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TABLE OF CONTENTS
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Page
CONTRACT SPECIFICATIONS ................................................ 3
DEFINITIONS ............................................................ 4-7
GENERAL PROVISIONS ..................................................... 7, 8
The Contract ......................................................... 7
Compliance ........................................................... 7
Incontestability ..................................................... 7
Assignment ........................................................... 7
Transfers ............................................................ 7, 8
Claims of Creditors .................................................. 8
Nonforfeiture Values ................................................. 8
Participation ........................................................ 8
Statements ........................................................... 8
OWNERSHIP PROVISIONS ................................................... 8, 9
Ownership ............................................................ 8
Joint Ownership ...................................................... 9
Ownership Changes .................................................... 9
PURCHASE PAYMENT PROVISIONS ............................................ 9
Flexible Purchase Payments ........................................... 9
Purchase Payment Limitations ......................................... 9
Purchase Payment Allocation .......................................... 9
Place of Payment ..................................................... 9
CONTRACT VALUE AND EXPENSE PROVISIONS .................................. 10, 11
Contract Value ....................................................... 10
Separate Account Contract Value ...................................... 10
Accumulation Unit Value .............................................. 10
Net Investment Factor ................................................ 11
Determining Accumulation Units ....................................... 11
Mortality and Expense Risk Charge .................................... 11
Premium Tax Expense .................................................. 11
Administration Charge ................................................ 11
Mutual Fund Expenses ................................................. 11
WITHDRAWAL PROVISIONS .................................................. 12, 13
Withdrawals .......................................................... 12
Withdrawal Value ..................................................... 12
Systematic Withdrawals ............................................... 13
Date of Request ...................................................... 13
Payment of Withdrawal Benefits ....................................... 13
ANNUITY BENEFIT PROVISIONS ............................................. 14, 15
Purchase of Annuity Benefit Provisions ............................... 14
Annuity Tables ....................................................... 14
Variable Annuity Payments ............................................ 14
Alternate Annuity Option Rates ....................................... 14
Annuity Options ...................................................... 15
ANNUITY TABLES ......................................................... 16
AMENDMENTS OR ENDORSEMENTS, IF ANY
-2- BP 602631
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VARIABLE ANNUITY CONTRACT SPECIFICATIONS
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OWNER NAME: Xxxx X Xxx CONTRACT NUMBER: Specimen
JOINT OWNER NAME: Xxxx X. Xxx CONTRACT DATE: 6-30-1997
PLAN: Qualified ISSUE DATE: 6-30-1997
ASSIGNEMENT: This policy may not be assigned.
See Assignment Provision of Your
Policy.
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INITIAL PURCHASE PAYMENT............... $100,000
MINIMUM SUBSEQUENT PURCHASE PAYMENTS... $0
MINIMUM SYSTEMATIC WITHDRAWAL.......... $100
MORTALITY AND EXPENSE RISK CHARGE...... .95% Annually
SUBACCOUNTS:
PCG Aggressive Growth Subaccount
PCG Growth Subaccount
SIM Conservative Growth
SIM Growth
METHOD FOR DEDUCTIONS:
Deductions for Premium Taxes, will be made sequentially from the Contract Value
in descending order of the Subaccounts listed above. The value of each Account
will be depleted before the next is charged.
GV6026 A (7-98) -3- SBL204
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DEFINITIONS
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ACCOUNT
An Account is one of the Subaccounts.
ACCUMULATION UNIT
The Accumulation Unit is a unit of measure. It is used to compute the
Separate Account Contract Value.
ANNUITANT
When Contract Value is distributed to a Participant and used to purchase an
annuity, the Annuitant is the person named by the Participant on whose life
the Annuity Payments depend for Annuity Option 1. The Annuitant receives
Annuity Payments under the Participant's Contract. Please see "Annuity
Benefit Provisions" on page 14.
ANNUITY OPTION
An Annuity Option is a set of provisions that form the basis for making
Annuity Payments. Please see "Annuity Options" on page 15.
COMPANY
The Company is Security Benefit Life Insurance Company, 000 XX Xxxxxxxx
Xxxxxx, Xxxxxx, Xxxxxx 00000-0000.
CONTRACT ANNIVERSARY
A Contract Anniversary is a 12-month anniversary of the Contract Date.
CONTRACT DATE
The Contract Date is the date the Contract begins. The Contract Date is shown
on page 3.
CONTRACT YEAR
Contract Years are measured from the Contract Date.
HOME OFFICE
The address of the Company's Home Office is Security Benefit Life Insurance
Company, 000 XX Xxxxxxxx Xxxxxx, Xxxxxx, Xxxxxx 00000-0000.
ISSUE DATE
The Issue Date is the date the Company uses to determine the date the
Contract becomes incontestable. The Issue Date is shown on Page 3. Please see
"Incontestability" on page 7.
JOINT OWNER
The Joint Owner, if any, shares an undivided interest in the entire Contract
with the Owner. The Joint Owner, if any, is named on page 3. Please see
"Joint Ownership" provisions on page 9.
NONNATURAL PERSON
Any group or entity that is not a living person, such as a trust or
corporation.
OWNER
The Owner is the person, group or entity that possesses all rights under the
Contract. The Owner is named on page 3. Please see "Ownership" provisions on
page 9.
PARTICIPANT
A Participant under the Plan.
PARTICIPANT'S CONTRACT
A Contract purchased with a Participant's distribution from the Plan.
PLAN
The employer-sponsored retirement plan, annuity purchase arrangement or
deferred compensation program for which the Contract is issued.
PREMIUM TAX
Any Premium Taxes levied by a state or other governmental entity will be
charged against this Contract. When Premium Tax is assessed after the
Purchase Payment is applied, it will be deducted as described on page 3.
PURCHASE PAYMENT
A Purchase Payment is money Received by the Company and applied to the
Contract.
RECEIVED BY THE COMPANY
The phrase "Received by the Company" means receipt by the Company in good
order at its Home Office, 000 XX Xxxxxxxx Xxxxxx, Xxxxxx, Xxxxxx 00000-0000.
GV6026B (7-98) -4- BP 602641
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DEFINITIONS (Continued)
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SEPARATE ACCOUNT
Variable Annuity Account X (the "Separate Account") is a separate account
established and maintained by the Company under Kansas law. The Separate
Account is registered with the Securities and Exchange Commission under the
Investment Company Act of 1940 as a Unit Investment Trust. It was established
by the Company to support variable annuity contracts. The Company owns the
assets of the Separate Account and maintains them apart from the assets of
its general account and its other separate accounts. The assets held in the
Separate Account equal to the reserves and other Contract liabilities with
respect to the Separate Account may not be charged with liabilities arising
from any other business the Company may conduct.
Income and realized and unrealized gains and losses from assets in the
Separate Account are credited to, or charged against, the Separate Account
without regard to the income, gains or losses from the Company's general
account or its other separate accounts. The Separate Account is divided into
Subaccounts shown on page 3. Income and realized and unrealized gains and
losses from assets in each Subaccount are credited to, or charged against,
the Subaccount without regard to income, gains or losses in the other
Subaccounts. The Company has the right to transfer to its general account any
assets of the Separate Account that are in excess of the reserves and other
Contract liabilities with respect to the Separate Account. The value of the
assets in the Separate Account on each Valuation Date is determined at the
end of each Valuation Date.
SUBACCOUNT NET ASSET VALUE
The Subaccount Net Asset Value is equal to: (1) the net asset value of all
shares of the underlying mutual fund held by the Subaccount; plus (2) any
cash or other assets; less (3) all liabilities of the Subaccount.
SUBACCOUNTS
The Separate Account is divided into Subaccounts which invest in shares of
mutual funds. Each Subaccount may invest its assets in a separate class or
series of a designated mutual fund or funds. The Subaccounts are shown on
page 3. Subject to the regulatory requirements then in force, the Company
reserves the right to:
1. change or add designated mutual funds or other investment vehicles;
2. add, remove or combine Subaccounts;
3. add, delete or make substitutions for securities that are held or
purchased by the Separate Account or any Subaccount;
4. operate the Separate Account as a management investment company;
5. combine the assets of the Separate Account with other Separate Accounts
of the Company or an affiliate thereof;
6. restrict or eliminate any voting rights of the Owner with respect to the
Separate Account or other persons who have voting rights as to the
Separate Account; and
7. terminate and liquidate any Subaccount.
If any of these changes result in a material change to the Separate Account
or a Subaccount, the Company will notify the Owner of the change. The Company
will not change the investment policy of any Subaccount in any material
respect without complying with the filing and other procedures of the
insurance regulators of the state of issue.
-5- BP 602641
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DEFINITIONS (Continued)
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VALUATION DATE
A Valuation Date is each day the New York Stock Exchange and the Company's
Home Office are open for business.
VALUATION PERIOD
A Valuation Period is the interval of time from one Valuation Date to the
next Valuation Date.
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GENERAL PROVISIONS
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THE CONTRACT
The entire Contract between the Owner and the Company consists of this
Contract, the attached Application, and any Amendments, Endorsements or
Riders to the Contract. All statements made in the Application will, in the
absence of fraud, as ruled by a court of competent jurisdiction, be deemed
representations and not warranties. The Company will use no statement made by
or on behalf of the Owner to void this Contract unless it is in the written
Application. Any change in the Contract can be made only with the written
consent of the President, a Vice President, or the Secretary of the Company.
The Purchase Payment(s) and the Application must be acceptable to the Company
under its rules and practices. If they are not, the Company's liability shall
be limited to a return of the Purchase Payment(s).
COMPLIANCE
The Company reserves the right to make any change to the provisions of this
Contract to comply with or give the Owner the benefit of any federal or state
statute, rule or regulation. This includes, but is not limited to,
requirements for annuity contracts under the Internal Revenue Code or the
laws of any state. The Company will provide the Owner with a copy of any such
change and will also file such a change with the insurance regulatory
officials of the state in which the Contract is delivered.
INCONTESTABILITY
This Contract will not be contested after it has been in force for two years
from the Issue Date.
ASSIGNMENT
Please refer to page 3 to see if this Contract may be assigned. If it may be
assigned, no Assignment under this Contract is binding unless Received by the
Company in writing. The Company assumes no responsibility for the validity,
legality, or tax status of any Assignment. The Assignment will be subject to
any payment made or other action taken by the Company before the Assignment
is Received by the Company. Once filed, the rights of the Owner are subject
to the Assignment. Any claim is subject to proof of interest of the assignee.
TRANSFERS
The Owner may Transfer Contract Value among the Subaccounts subject to the
following.
The Company reserves the right to: (1) limit the amount that may be subject
to Transfer to $1,000,000 per Transfer without Home Office approval; (2)
limit the number of Transfers allowed each Contract Year to 14; and (3)
suspend Transfers.
GV6026B (7-98) -6- BP 602641
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GENERAL PROVISIONS (Continued)
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TRANSFERS (Continued)
The Company will effect a Transfer to or from a Subaccount on the basis of
Accumulation Unit Value determined at the end of the Valuation Period in
which the Transfer is effected.
CLAIMS OF CREDITORS
The Contract Value and other benefits under this Contract are exempt from the
claims of creditors of the Owner to the extent allowed by law.
NONFORFEITURE VALUES
The Withdrawal Values will at least equal the minimum required by law.
PARTICIPATION
The Contract is participating, however, the Company does not expect dividends
to become payable on this Contract. At the end of each Contract Year the
Company will determine the Contract's dividend, if any. The Owner may choose
to have it: (1) added to the Contract Value; or (2) paid in cash. If no
choice is made, any dividend will be added to the Contract Value.
STATEMENTS
At least once each Contract Year the Owner shall be sent a statement
including the current Contract Value and any other information required by
law. The Owner may send a written request for a statement at other intervals.
The Company may charge a reasonable fee for such statements.
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OWNERSHIP PROVISIONS
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OWNERSHIP
All rights and privileges under the Contract may be exercised only by the
Owner. If the purchaser names someone other than himself or herself as Owner,
the purchaser has no rights in the Contract.
JOINT OWNERSHIP
If a Joint Owner is named in the application, then the Owner and Joint Owner
share an undivided interest in the entire Contract as joint tenants with
rights of survivorship. When an Owner and Joint Owner have been named, the
Company will honor only requests for changes and the exercise of other
Ownership rights made by both the Owner and Joint Owner. When a Joint Owner
is named, all references to "Owner" throughout this Contract should be
construed to mean both the Owner and Joint Owner, except for the "Statements"
provision on page 8.
OWNERSHIP CHANGES
Subject to the terms of any existing Assignment, the Owner may name a new
Owner. Any new choice of Owner will revoke any prior choice. Any change must
be made in writing and recorded at the Home Office. The change will become
effective as of the date the written request is signed. The Company may
require the Contract be returned so these changes may be made.
-7- BP 602641
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PURCHASE PAYMENT PROVISIONS
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FLEXIBLE PURCHASE PAYMENTS
The Contract becomes in force when the initial Purchase Payment is applied.
The Owner is not required to continue Purchase Payments in the amount or
frequency originally planned. The Owner may: (1) increase or decrease the
amount of Purchase Payments, subject to any Contract limits; or (2) change
the frequency of Purchase Payments. A change in frequency or amount of
Purchase Payments does not require a written request.
PURCHASE PAYMENT ALLOCATION
Purchase Payments will be allocated among the Subaccounts according to the
Owner's instructions in the Application or more recent instructions, if any.
The allocations must be whole percentage amounts and must total 100%. The
Owner may change the allocations by written notice to the Company.
PLACE OF PAYMENT
All Purchase Payments under this Contract are to be paid to the Company at
its Home Office. Purchase Payments after the initial Purchase Payment are
applied as of the end of the Valuation Period during which they are Received
by the Company.
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CONTRACT VALUE AND EXPENSE PROVISIONS
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CONTRACT VALUE
On any Valuation Date, the Contract Value is equal to the Separate Account
Contract Value. At any time after the first Contract Year, the Company
reserves the right to pay to the Owner the Contract Value as a lump sum if it
is below $5,000.
SEPARATE ACCOUNT CONTRACT VALUE
On any Valuation Date, the Separate Account Contract Value is the sum of the
then current value of the Accumulation Units allocated to each Subaccount for
this Contract.
ACCUMULATION UNIT VALUE
The initial Accumulation Unit Value for each Subaccount was set at $10. The
Accumulation Unit Value for any subsequent Valuation Date is equal to (1)
times (2) where:
1. is Accumulation Unit Value determined on the immediately preceding
Valuation Date; and
2. is the Net Investment Factor on the Valuation Date with respect to which
Accumulation Unit Value is being determined;
NET INVESTMENT FACTOR
The Net Investment Factor for any Subaccount as of the end of any Valuation
Period is determined by dividing (1) by (2) and subtracting (3) from the
result, where:
1. is equal to:
a. the net asset value per share of the mutual fund held in the
Subaccount, found as of the end of the current Valuation Period; plus
b. the per share amount of any dividend or capital gain distributions
paid by the Subaccount's underlying mutual fund that is not included
in the net asset value per share; plus or minus
GV6026B (7-98) -8- BP 602641
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CONTRACT VALUE AND EXPENSE PROVISIONS (Continued)
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c. a per share charge or credit for any taxes reserved for, which the
Company deems to have resulted from the operation of the Separate
Account or the Subaccounts; operations of the Company with respect to
the Contract; or the payment of premiums or acquisition costs under
the Contract.
2. is the net asset value per share of the Subaccount's underlying mutual
fund as of the end of the prior Valuation Period.
3. is a daily factor representing the Mortality and Expense Risk Charge
which is deducted from the Separate Account.
Underlying mutual funds may declare dividends on a daily basis and pay such
dividends once a month. The Net Investment Factor allows for the monthly
reinvestment of these daily dividends. As described above, the gains and
losses from each Subaccount are credited to or charged against the
Subaccounts without regard to the gains or losses in the Company or other
Subaccounts.
The Accumulation Unit Value may increase or decrease from one Valuation
Period to the next.
DETERMINING ACCUMULATION UNITS
The number of Accumulation Units allocated to a Subaccount under this
Contract is found by dividing: (1) the amount allocated to the Subaccount; by
(2) the Accumulation Unit Value for the Subaccount as of the end of the
Valuation Period during which the amount is applied under the Contract. The
number of Accumulation Units allocated to a Subaccount under the Contract
will not change as a result of investment experience. Events that change the
number of Accumulation Units are:
1. Purchase Payments that are applied to the Subaccount.
2. Contract Value that is Transferred into or out of the Subaccount.
3. Withdrawals that are deducted from the Subaccount; and
4. Premium Taxes that are deducted from the Subaccount.
MORTALITY AND EXPENSE RISK CHARGE
The Company will deduct the Mortality and Expense Risk Charge shown on page
3. This charge will be computed and deducted from each Subaccount on each
Valuation Date. This charge is factored into the Accumulation Unit Values on
each Valuation Date.
PREMIUM TAX EXPENSE
The Company reserves the right to deduct Premium Tax when due or any time
thereafter. Any applicable Premium Taxes will be allocated as described on
page 3.
MUTUAL FUND EXPENSES
Each Subaccount invests in shares of a mutual fund. The net asset value per
share of each underlying fund reflects the deduction of any investment
advisory and administration fees and other expenses of the fund. These fees
and expenses are not deducted from the assets of a Subaccount, but are paid
by the underlying funds. The Owner indirectly bears a pro rata share of such
fees and expenses. An underlying fund's fees and expenses are not specified
or fixed under the terms of this Contract.
-9- BP 602641
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WITHDRAWAL PROVISIONS
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WITHDRAWALS
A full or partial Withdrawal of Contract Value is allowed at any time. This
provision is subject to any federal or state Withdrawal restrictions.
Upon the Owner's request for a full Withdrawal, the Company will pay the
Withdrawal Value in a lump sum, and the Contract will terminate.
All Withdrawals must meet the following conditions.
1. The request for Withdrawal must be Received by the Company in writing or
under other methods allowed by the Company, if any.
2. The Owner must apply while this Contract is in force.
WITHDRAWAL VALUE
The Withdrawal Value as of any Valuation Date will be: (1) the Contract Value
on that date; less (2) any Premium Taxes due or paid by the Company;
SYSTEMATIC WITHDRAWALS
Systematic Withdrawals are automatic periodic Withdrawals from the Contract
in substantially equal amounts. In order to start Systematic Withdrawals, the
Owner must make the request in writing. The Minimum Systematic Withdrawal is
shown on page 3. The Owner must choose the type of payment and its frequency.
The Systematic Withdrawal request must state the allocations for deducting
the Withdrawals from each Account. The payment type may be: (1) a percentage
of Contract Value; (2) a specified dollar amount; (3) all earnings in the
Contract; (4) over a fixed period of time. The payment frequency may be: (1)
monthly; (2) quarterly; (3) semiannually; or (4) annually. Systematic
Withdrawals may be stopped or changed by the Owner upon proper written
request Received by the Company at least 30 days in advance of the requested
date of termination or change. The Company reserves the right to stop,
modify, suspend or charge a fee for Systematic Withdrawals at any time.
DATE OF REQUEST
The Company will effect a Withdrawal of Separate Account Contract Value on
the basis of Accumulation Unit Value determined as of the end of the
Valuation Period in which all the required information is Received by the
Company. The Company will effect Systematic Withdrawals of Separate Account
Contract Value on the basis of Accumulation Unit Value determined as of the
end of the Valuation Period in which such Withdrawal is scheduled.
PAYMENT OF WITHDRAWAL BENEFITS
The Company reserves the right to suspend a Transfer or delay payment of a
Withdrawal from the Separate Account for any period:
1. when the New York Stock Exchange is closed; or
2. when trading on the New York Stock Exchang is restricted; or
3. when an emergency exists as a result of which: (a) disposal of securities
held in the Separate Account is not reasonably practicable; or (b) it is
not reasonably practicable to fairly value the net assets of the Separate
Account; or
4. during any other period when the Securitie and Exchange Commission, by
order, so permits to protect owners of securities.
Rules and regulations of the Securities and Exchange Commission will govern
as to whether the conditions set forth above exist.
GV6026B (7-98) -10- BP 602641
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ANNUITY BENEFIT PROVISIONS
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PURCHASE OF ANNUITY BENEFIT PROVISIONS
The Company agrees to make available to any Participant under the Owner's
Plan who receives an eligible rollover distribution (or in the case of a Plan
described in Section 457 of the Internal Revenue Code, any distribution) from
the Plan, an annuity contract for purchase with such distribution. The
Annuity Contract will offer the annuity options and rates set forth below. A
Participant's purchase payment and application for such annuity contract must
be acceptable to the Company under its rules and practices and the provisions
of the contract applied for.
ANNUITY TABLES
Annuity Table A shows the guaranteed minimum amount of monthly Annuity
Payment per $1,000 applied, which for Annuity Option 1 determines the amount
of the first Variable Annuity Payment. The amount of each Annuity Payment for
Annuity Option 1 will depend on the Annuitant's sex and age.
Table A assumes 1900 as the year of birth of the Annuitant. To use Table A
for an Annuitant born after 1900, the actual age is reduced by 0.1
(one-tenth) of a year for each year the year of birth exceeds 1900. For an
Annuitant with a birth year prior to 1900, the actual age is increased in a
like manner. The actual age (in completed months) reduced or increased
becomes the "adjusted age of the Annuitant." The guaranteed payout rate is
then found by interpolating the Annuitant's adjusted age between the ages
shown in Table A. Table A is based on the 1983 Table "A" mortality table and
an interest rate of 3.5% per year. On request the Company will furnish the
amount of monthly Annuity Payment per $1,000 applied for any ages not shown.
For Annuity Options 2 and 3, annuity rates based on age are not used to
calculate annuity payments. Annuity Payments for Options 2 and 3 are computed
without reference to the Annuity Tables.
VARIABLE ANNUITY PAYMENTS
With respect to Variable Annuity Payments, the amounts shown on the Tables
are the guaranteed minimum first Annuity Payment, based on the assumed
interest rate of 3.5% for Annuity Option 1. The amount of each Annuity
Payment after the first for these options is computed by means of Annuity
Units.
ALTERNATE ANNUITY OPTION RATES
The Company may, at the time of election of an Annuity Option, offer more
favorable rates in lieu of the guaranteed rates shown in the Annuity Tables.
-11- BP 602641
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ANNUITY PAYMENT PROVISIONS (Continued)
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ANNUITY OPTIONS
OPTION 1
LIFE WITH 25 YEARS CERTAIN: This option provides payments for the life of the
Annuitant with 25 years certain. Payments will be made to the end of this
period certain even if the Annuitant dies prior to the end of the period. If
the Annuitant dies before receiving all the payments during the fixed period.
If the Annuitant dies before receiving all the payments during the fixed
period, the remaining payments will be made to the Designated Beneficiary.
Table A shows some of the guaranteed rates for this option.
OPTION 2
FIXED PERIOD OPTION: This option provides payments for a fixed number of
years between 5 and 20. The amount of the payments will vary as a result of
the investment performance of the Subaccounts chosen. If all the Annuitants
die before receiving the fixed number of payments, any remaining payments
will be made to the Designated Beneficiary.
OPTION 3
FIXED PAYMENT OPTION: This option provides a fixed payment amount. This
amount is paid until the amount applied is paid. The number of payments will
vary as a result of the investment performance of the Subaccounts chosen. If
all the Annuitants die before receiving all the payments, any remaining
payments will be made to the Designated Beneficiary.
OPTION 4
AGE RECALCULATION OPTION: This option for payments based upon the Annuitant's
life expectancy, or the joint life expectancies of the Annuitant and a
beneficiary, at the Annuitant's attained age (and the Annuitant's
beneficiary's attained or adjusted age, if applicable) each year. The
payments are computed by reference to actuarial tables prescribed by the
Treasury Secretary. Payments are made until the amount applied is exhausted.
The number of payments will vary as a result of the investment performance of
the Subaccounts chosen. If all the Annuitants die before receiving the
remaining payments, such payments will be made to the Designated Beneficiary.
GV6026B (7-98) -12- BP 602641
ANNUITY TABLE
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TABLE A
SETTLEMENT OPTION ONE
MINIMUM INITIAL MONTHLY INSTALLMENT PER $1,000 OF AMOUNT APPLIED
Option One
Adjusted Life With 25 Years Certain
Age 5 10 15 20
of Annuitant Years Years Years Years
----------------------------------------------------
UNISEX
55 4.53 4.51 4.46 4.38
56 4.61 4.58 4.53 4.44
57 4.70 4.66 4.60 4.51
58 4.79 4.75 4.68 4.57
59 4.88 4.84 4.76 4.64
60 4.99 4.93 4.84 4.70
61 5.09 5.03 4.93 4.77
62 5.21 5.14 5.02 4.84
63 5.33 5.25 5.12 4.91
64 5.46 5.37 5.21 4.98
65 5.60 5.50 5.31 5.05
66 5.75 5.63 5.42 5.12
67 5.91 5.77 5.53 5.19
68 6.08 5.91 5.63 5.25
69 6.26 6.07 5.74 5.32
70 6.46 6.23 5.86 5.37
71 6.67 6.40 5.97 5.43
72 6.89 6.58 6.08 5.48
73 7.13 6.76 6.18 5.52
74 7.39 6.95 6.29 5.57
75 7.67 7.14 6.39 5.60
Values not shown will be provided upon request. Annual, semiannual, or
quarterly installments can be determined by multiplying the monthly installments
by 11.812853, 5.9572227, and 2.9914196 respectively.
-13- BP 602641
A BRIEF DESCRIPTION OF THIS CONTRACT
This is a FLEXIBLE PREMIUM DEFERRED GROUP UNALLOCATED VARIABLE ANNUITY CONTRACT.
* Purchase Payments may be made until termination of the Contract.
* This Contract is Participating.
ALL PAYMENTS AND VALUES PROVIDED BY THIS CONTRACT, ARE BASED ON THE INVESTMENT
EXPERIENCE OF THE SEPARATE ACCOUNT, ARE VARIABLE AND MAY INCREASE OR DECREASE IN
ACCORDANCE WITH THE INVESTMENT EXPERIENCE OF THE SEPARATE ACCOUNT. THERE ARE NO
GUARANTEED MINIMUM PAYMENTS OR CASH VALUES. (SEE "CONTRACT VALUE AND EXPENSE
PROVISIONS" AND "ANNUITY PAYMENT PROVISIONS" FOR DETAILS.)
[SBL LOGO]
SECURITY BENEFIT LIFE INSURANCE COMPANY
A Member of The Security Benefit Group of Companies
000 XX Xxxxxxxx Xxxxxx, Xxxxxx, XX 00000-0000
0-000-000-0000
BP602634
