Exhibit 26(d)
Policy Form Number V616
PHOENIX LIFE INSURANCE COMPANY
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Dear Policyowner:
We agree to pay the benefits of this policy in accordance with its provisions.
It is important to Us that You are satisfied with Your policy and that it meets
Your insurance goals. For service or information on this policy, contact the
agent who sold this policy, any of Our agency offices, or Our Variable and
Universal Life Administration at the following address:
Phoenix Life Insurance Company
Variable and Universal Life Administration
P.O. Box 8027
Boston, MA 00000-0000
Telephone [(000) 000-0000]
RIGHT TO RETURN THIS POLICY. You have the right to cancel this policy within a
limited time after this policy is delivered to You. This policy may be cancelled
by returning this policy to Us at Our Variable and Universal Life Administration
before the later of:
1. 10 days after this policy is delivered to You; or
2. 10 days after a Notice of Right to Cancel is delivered to You; or
3. 45 days after the completed application is signed;
for a refund of:
1. the Policy Value less Debt, if any; plus
2. any monthly deductions, Partial Surrender Fees and other charges made under
this policy.
The Policy Value and Debt will be determined as of the nearest Valuation Date
coincident with or following the date We receive the returned policy at Our
Variable and Universal Life Division.
Signed for Phoenix Life Insurance Company at its Corporate Office, Xxx Xxxxxxxx
Xxx, Xxxxxxxx, Xxxxxxxxxxx 00000.
PHOENIX LIFE INSURANCE COMPANY
[/s/Xxxx X. Xxxxx] [/s/Xxxx X. Xxxxx]
[Secretary] [Chairman, President and
Chief Executive Officer]
READ YOUR POLICY CAREFULLY
IT IS A LEGAL CONTRACT BETWEEN YOU AND US.
FIXED AND FLEXIBLE PREMIUM VARIABLE UNIVERSAL LIFE INSURANCE POLICY
THE DEATH BENEFIT AND OTHER VALUES PROVIDED UNDER THIS POLICY ARE BASED ON THE
RATES OF INTEREST CREDITED ON ANY AMOUNTS ALLOCATED TO THE GUARANTEED INTEREST
ACCOUNT, LONG-TERM GUARANTEED INTEREST ACCOUNT AND THE INVESTMENT EXPERIENCE OF
THE SUBACCOUNTS WITHIN OUR SEPARATE ACCOUNT TO WHICH YOUR PREMIUMS ARE
ALLOCATED. THUS, THE DEATH BENEFIT AND OTHER VALUES MAY INCREASE OR DECREASE IN
AMOUNT OR DURATION. SEE PART 8 FOR A DESCRIPTION OF HOW THE DEATH BENEFIT IS
DETERMINED.
NONPARTICIPATING
V616
SCHEDULE PAGE
Policy Number: [3000000]
Policy Date: [June 1, 2005]
Insured: [Xxxx X. Xxxxxxx]
Issue Age & Sex: [35 - Male]
Risk Classification: [Non-tobacco]
Owner: As Stated In The Application Unless Later Changed.
Beneficiary: As Stated In The Application Unless Later Changed.
Death Benefit Option: [2]
Face Amount [$243,169.00]
PREMIUMS
Required
Annual Premium: [$10,000.00]
Required Annual
Premium Years Payable: 4
[[Quarterly] Premium]: [$2,500.00]
Premium Due Dates: [1st day of each quarter] The amount and
timing of premium payments following the
fourth Policy Year are flexible.
Total Premium Limit: [$10,000.00] multiplied by the lesser of 7
and the number of policy elapsed years (or
fraction thereof) as adjusted to reflect any
changes in benefits after issue.
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SCHEDULE PAGE
Policy Number: [3000000]
POLICY CHARGES
Maximum Daily Mortality
And Expense Risk Charge: 0.0000247 (Based on an Annual Rate of 0.90%)
Premium Expense Charge: 5% of premium paid in all Policy Years.
Partial Surrender Fee: [$0] Currently, there is no Partial
Surrender Fee. However, We reserve the right
to impose a Partial Surrender Fee, upon
prior Written Notice to the Owner. Any
Partial Surrender Fee will be administered
in a non-discriminatory manner. In no event,
however, will such Partial Surrender Fee
exceed $25 per transaction.
Surrender Charge: [$3,500] in years 1-7
0 in year 8 and thereafter
Monthly Administration Charge: [$80] in Policy Years 1-10
0 in Policy Year 11 and thereafter
Overloan Transaction Charge: 3.5% of the Policy Value
Transfer Charge: Currently, there is no charge for transfers.
However, we reserve the right to impose a
Transfer Charge after the first twelve
transfers made in each Policy Year, upon
prior Written Notice to the Owner. Any
Transfer Charge will be administered in a
non-discriminatory manner. In no event,
however, will such Transfer Charge exceed
$20 per transaction.
GUARANTEED INTEREST ACCOUNT
Unloaned Portion: Minimum Rate [3%]
Loaned Portion: 3%
Loan Interest Rate: 5% in the first 10 Policy Years
[4% in Policy Years 11 through 15
3% after Policy Year 15]
PREMIUM ALLOCATION
[Money Market - 100%]
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SCHEDULE PAGE
Policy Number: [3000000]
TABLE OF GUARANTEED MAXIMUM COST OF INSURANCE
RATES PER $1,000 OF NET AMOUNT AT RISK
BASED ON 1980 CSO MORTALITY TABLE *
MALE
----
Age Monthly Age Monthly Age Monthly
Rate Rate Rate
---- ---- ----
18 0.1896 48 0.6219 78 9.0958
19 0.1958 49 0.6729 79 9.8708
20 0.1979 50 0.7292 80 10.7229
21 0.1979 51 0.7948 81 11.6760
22 0.1958 52 0.8677 82 12.7510
23 0.1917 53 0.9510 83 13.9417
24 0.1875 54 1.0427 84 15.2208
25 0.1823 55 1.1417 85 16.5604
26 0.1792 56 1.2469 86 17.9385
27 0.1781 57 1.3583 87 19.3469
28 0.1771 58 1.4771 88 20.7844
29 0.1792 59 1.6063 89 22.2594
30 0.1823 60 1.7500 90 23.7948
31 0.1875 61 1.9125 91 25.4281
32 0.1948 62 2.0958 92 27.2323
33 0.2031 63 2.3010 93 29.3885
34 0.2135 64 2.5281 94 32.2885
35 0.2260 65 2.7729 95 36.6521
36 0.2417 66 3.0344 96 43.8531
37 0.2594 67 3.3115 97 56.3542
38 0.2792 68 3.6094 98 77.6198
39 0.3021 69 3.9385 99 83.3333
40 0.3281 70 4.3094
41 0.3563 71 4.7323
42 0.3865 72 5.2167
43 0.4198 73 5.7646
44 0.4552 74 6.3646
45 0.4927 75 7.0052
46 0.5333 76 7.6771
47 0.5760 77 8.3719
*The cost of insurance rates above apply to tobacco and non-tobacco risk classifications.
V616 3
SCHEDULE PAGE
Policy Number: [3000000]
RIDERS
Form
Number Rider
[ ] [ ]
V616 4
TABLE OF CONTENTS
PART PAGE
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SCHEDULE PAGE(S)
TABLE OF CONTENTS
1. Definitions 1
2. About This Policy 3
3. Rights of the Owner 5
4. Premiums 6
5. The Accounts 8
6. Policy Values 10
7. Lifetime Benefits 12
8. Death Benefits 16
V616
PART 1: DEFINITIONS
AGE
Age of the Insured on his last birthday.
ASSIGNS
Any persons to whom You assign an interest in this policy if We have notice of
the assignment in accordance with the provisions stated in this policy.
BASIC POLICY
This policy as it exists, without any additional rider benefits.
BASIS OF CALCULATION
1980 Commissioners' Standard Ordinary Table, Age Last Birthday, Sex-distinct,
Aggregate and 3% interest.
CASH SURRENDER VALUE
The Cash Surrender Value of this policy is the Policy Value less any applicable
surrender charge on the date of surrender and less any Debt. The surrender
charge is as shown on the Schedule Page.
DEBT
Unpaid loans against this policy plus accrued interest.
FACE AMOUNT
The initial Face Amount that You chose as shown on the Schedule Page or as later
changed in accordance with the terms of this policy.
GENDER
The terms "he," "his" and "him" are applicable without regard to sex. Where
proper, "she," "hers" or "her" may be substituted.
IN FORCE
This policy has not terminated or otherwise lapsed in accordance with the Grace
Period and Lapse provision.
IN WRITING (WRITTEN REQUEST, WRITTEN NOTICE)
A request in a written form satisfactory to Us, signed by You and filed at Our
Variable and Universal Life Administration (VULA).
ISSUE PREMIUM
The minimum premium at issue is one-fourth of the Required Annual Premium.
MONTHLY CALCULATION DAY
The first Monthly Calculation Day of a policy is the same day as its Policy Date
as shown on the Schedule Page. Subsequent Monthly Calculation Days are the same
day for each month thereafter or, if such day does not fall within a given
month, the last day of that month will be the Monthly Calculation Day.
PAYMENT DATE
The Valuation Date on which a premium payment or loan repayment is received at
Our Variable and Universal Life Administration (VULA) unless it is received
after the close of the New York Stock Exchange in which case it will be the next
Valuation Date.
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POLICY ANNIVERSARY
The anniversary of the Policy Date.
POLICY DATE
The date from which Policy Years and Policy Anniversaries are measured and is
shown on the Schedule Page.
POLICY MONTH
The period from one Monthly Calculation Day up to, but not including, the next
Monthly Calculation Day.
POLICY VALUE
The Policy Value is the sum of this policy's share in the value of each
Subaccount of the Separate Account, the Long-Term Guaranteed Interest Account
and the value of this policy's Guaranteed Interest Account.
POLICY YEAR
The first Policy Year is the one-year period from the Policy Date to, but not
including, the first Policy Anniversary. Each succeeding Policy Year is the
one-year period from the Policy Anniversary to, but not including, the next
Policy Anniversary.
REQUIRED ANNUAL PREMIUM
The premiums required to be paid, as shown on the Schedule Page.
SUBACCOUNTS
The accounts within Our Separate Account to which non-loaned assets under this
policy may be allocated.
UNIT
A standard of measurement used to determine the share of this policy in the
value of each Subaccount of the Separate Account.
VALUATION DATE
Every day the New York Stock Exchange is open for trading and Phoenix Life
Insurance Company is open for business.
VALUATION PERIOD
The period in days from the end of one Valuation Date through the next Valuation
Date.
VARIABLE AND UNIVERSAL LIFE ADMINISTRATION (VULA)
Our Variable and Universal Life Administration. The address is shown on the
cover page of this policy.
WE (OUR, US, COMPANY)
Phoenix Life Insurance Company.
YOU (YOUR)
The owner of this policy.
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PART 2: ABOUT THIS POLICY
EFFECTIVE DATE OF INSURANCE
This policy will begin In Force on the Policy Date, provided the Issue Premium
is paid on or before the Policy Date while the Insured is alive.
THE POLICY AND APPLICATION
This policy, including the Schedule Pages, any riders or endorsements to it, and
the application for it (and any supplemental applications), constitute the
entire contract between You and Us.
This contract is made in consideration of the application and the payment of
premiums as provided in this policy. We rely on all statements made by or for
the Insured in the written application. Each statement made in an application
will, in the absence of fraud, be deemed a representation and not a warranty. No
statement will be used to void this policy or in defense of a claim under this
policy unless:
1. it is contained in the application or in a supplemental application; and
2. a copy of that application is attached to this policy when issued or the
supplemental application is made a part of this policy when changes become
effective.
Any change in the provisions of this policy, including modifying this policy,
waiving any of its conditions, or making an agreement for the Company, to be in
effect, must be In Writing and signed by one of Our executive officers and
countersigned by another of Our executive officers. This policy is issued by Us
at Our Corporate Office in Hartford, Connecticut. Any benefits payable under
this policy are payable at Our Main Administrative Office.
NONPARTICIPATING
This policy is nonparticipating and therefore is not eligible for annual
dividends. This means that You are not entitled to participate in Company
profits.
REVISED SCHEDULE PAGES
The Schedule Pages issued with this policy show the initial policy data in
effect for this policy on the Policy Date. Some of this policy data may change
by an action You request or take or by a change You make. Any of these changes
will be reflected in revised Schedule Pages which supplement or restate the
Schedule Pages and show the effective date of the change. We will send You such
revised Schedule Pages along with a copy of any supplemental application, and
they will become part of this policy as of their effective date.
CONTESTABILITY
We rely on all statements made by or for the Insured in the application. These
statements are considered to be representations and not warranties.
We can contest the validity of this policy and any coverage under it for any
material misrepresentation of fact. To do so, however, the misrepresentation
must be contained in an application and the application must be attached to this
policy when issued or made a part of this policy when a change is made.
If We contest the validity of all or a portion of the coverage provided under
this policy, the amount We pay with respect to such portion of the coverage will
be limited to the higher of a return of any paid premium for the contested
coverage, or the sum of any monthly deductions made under this policy for the
contested coverage.
We cannot contest the validity of the policy after it has been In Force during
the Insured's lifetime for two years from its Policy Date (or two years from any
reinstatement of the policy).
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SUICIDE
If within two years from the Policy Date the Insured dies by suicide, while sane
or insane, and while this policy is In Force, this policy will cease and become
void.
We will pay to You the Policy Value adjusted by the following amounts:
1. We add any monthly deductions and any other fees and charges made under
this policy;
2. We subtract any Debt owed Us under this policy.
TERMINATION
If not previously terminated, this policy will terminate automatically on the
earliest of:
1. the date of death; or
2. the date of a full surrender; or
3. the date the grace period expires without the payment of sufficient premium
in accordance with the Grace Period and Lapse provision.
MISSTATEMENT OF AGE OR SEX
If the Age or sex of the Insured is misstated, the Face Amount will be adjusted
to reflect the amount of coverage that would have been supported by the most
recent monthly deduction based on the then current cost of insurance rate for
the correct Age and sex.
ASSIGNMENTS
Except as otherwise provided herein, any or all of the rights in this policy may
be assigned. However, assignment of Your policy must be consented to by the
Company. Assignment of this policy without Our consent is void from inception
and without force or effect. We will not be considered to have notice of any
assignment until We receive the original or copy of the assignment at Our VULA.
We are not responsible for the validity of any assignment.
ANNUAL REPORTS
We will annually send You a report for this policy that shows the following:
1. the then current Policy Value, Cash Surrender Value, death benefit and Face
Amount;
2. the premiums paid, and deductions and partial surrenders made since the
last report;
3. any outstanding Debt;
4. an accounting of the change in Policy Value since the last report; and
5. such additional information as required by applicable law or regulation.
V616 4
TRANSACTION RULES
Requests for transactions involving Subaccounts, the Long-Term Guaranteed
Interest Account and the Guaranteed Interest Account will usually be processed
within 7 days after We receive the Written Request at Our VULA. However, We may,
at Our discretion, postpone the payment of any death benefit in excess of the
total Face Amount, any policy loans, partial surrenders, full surrenders or
transfers:
1. For up to six months from the date of request, for any transactions
dependent upon the value of the Guaranteed Interest Account except for
death benefits, the value of the Long-Term Guaranteed Interest Account; or
2. Otherwise, to the extent they depend upon the value of any Subaccount of
the Separate Account, for any period during which the New York Stock
Exchange is closed for trading (except for normal holiday closing) or when
the Securities and Exchange Commission has determined that a state of
emergency exists which may make processing such transactions impractical.
PART 3: RIGHTS OF OWNER
WHO IS THE OWNER
The owner is the person named as owner in the application, unless later changed
as provided in this policy. The Insured will be the owner if no other person is
named the owner. If You, the owner, are not the Insured and You die before the
Insured, ownership rights in this policy will pass to the successive owner if
one has been named, except that if joint owners are designated, ownership will
remain with the surviving joint owners until the death of the survivor unless
otherwise provided. If no successive owner has been named, then the estate of
the last owner to die will become the owner. If more than one person is named as
owner, they must act jointly unless You and We agree otherwise.
WHAT ARE THE RIGHTS OF THE OWNER
You control this policy during the Insured's lifetime but not until this policy
begins In Force. Unless You and We agree otherwise, You may exercise all rights
provided under this policy without the consent of anyone else. Your rights
include the right to:
1. Receive any amounts payable under this policy during the Insured's
lifetime.
2. Change the owner or the interest of any owner.
3. Change the flexible premium amount and frequency.
4. Change the Subaccount, the Long-Term Guaranteed Interest Account and the
Guaranteed Interest Account allocations schedule for premium payments and
monthly deductions.
5. Transfer amounts between and among Subaccounts, the Long-Term Guaranteed
Interest Account and the Guaranteed Interest Account.
6. Obtain policy loans.
7. Obtain a partial surrender.
8. Surrender this policy for its Cash Surrender Value.
9. Request changes in the insurance amount.
10. Change the beneficiary of the death benefit.
V616 5
11. Assign, release or surrender any interest in this policy.
12. Change the Death Benefit Option after Policy Year four.
You may exercise these rights only while the Insured is alive. Your exercise of
any of these rights will, to the extent thereof, assign, release or surrender
the interest of the Insured and all beneficiaries and successive owners under
this policy.
HOW TO CHANGE THE OWNER
You may change the owner by Written Request.
PART 4: PREMIUMS
PREMIUM PAYMENTS
Required Annual Premiums must be paid as shown on the Schedule Page. The Issue
Premium is due on the Policy Date. The Insured must be alive when the Issue
Premium is paid. All premiums are payable at Our VULA, except that the Issue
Premium may be paid to an authorized agent of Ours for forwarding to Our VULA.
No benefit associated with any premium shall be provided until it is actually
received by Us at Our VULA. A receipt for premium payments signed by one of Our
executive officers will be provided upon request. No right to refund shall exist
with respect to any premium payments except as stated in this policy.
PREMIUM DEDUCTIONS
Premium expense charges, as shown on the Schedule Page, will be deducted from
any premiums received by Us at Our VULA. If the Issue Premium is received by Us
at Our VULA after the Policy Date, then it will also be reduced by the amount
necessary to cover any past unpaid monthly deductions described below. In
addition, payments received by Us during a grace period will also be reduced by
the amount needed to cover any monthly deductions during the grace period.
NET PREMIUM ALLOCATION
The premiums, net of the premium expense charges, will be applied on the Payment
Date to the various Subaccounts, the Long-Term Guaranteed Interest Account and
the Guaranteed Interest Account based on the premium allocation schedule elected
in the application for this policy or as later changed by You. You may change
the allocation schedule for premium payments by Written Request.
PREMIUM FLEXIBILITY
Subject to the total premium limit described in the next section and except for
the Required Annual Premium, You may change the amount and frequency of premium
payments while this policy is In Force as follows:
1. You may increase or decrease the flexible premium amount or payment
frequency at any time by Written Request after the fourth Policy Year. We
reserve the right to limit increases to such maximums as We may
periodically establish.
2. Additional premium payments may be made at any time after the fourth Policy
Year.
3. Each premium payment made must at least equal $25 or, if during a grace
period, the amount needed to prevent lapse of this policy. We reserve the
right to reduce or increase the limit.
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TOTAL PREMIUM LIMIT
The total premium limit is shown on the Schedule Page and is applied to the sum
of all premiums received by Us for this policy to date, reduced by the sum of
all partial surrender amounts paid by Us to date. If the total premium limit is
exceeded, We will pay You the excess, with interest at an annual rate of not
less than 4%, not later than 60 days after the end of the Policy Year in which
the limit was exceeded. The Policy Value will be adjusted to reflect such
refund. The amount to be taken from the Subaccounts, the Long-Term Guaranteed
Interest Account and the Guaranteed Interest Account will be allocated in the
same manner as provided for monthly deductions unless You request another
allocation In Writing.
The total premium limit may be exceeded if additional premium is needed to
prevent lapse under the Grace Period and Lapse provision. The total premium
limit may change due to:
1. a partial surrender or a decrease in Face Amount;
2. addition, cancellation or change of a rider;
3. a change in Death Benefit Option;
4. a change in risk classification; or
5. a change in federal tax laws or regulations.
GRACE PERIOD AND LAPSE
During the first four Policy Years:
1. if Required Annual Premiums are not paid, or
2. if on any Monthly Calculation Day, the required monthly deduction exceeds
the Policy Value less any outstanding Debt,
a grace period of 61 days will be allowed for the payment of an amount, less the
premium expense charge, equal to the larger of three times the required monthly
deduction plus any amount overdue, or the required premiums less the actual
premiums paid.
After the fourth Policy Year, if on any Monthly Calculation Day, the required
monthly deduction exceeds the Policy Value less any outstanding Debt, a grace
period of 61 days will be allowed for the payment of an amount, less the premium
expense charge, equal to three times the required monthly deduction.
In addition, if the total Debt is greater than the maximum loan value, a grace
period of 61 days will be allowed for the payment of the amount necessary to
reduce the total Debt to an amount less than or equal to the maximum loan value.
Any premiums paid will be used, after assessment of premium expense charges, to
pay for any unpaid monthly deductions.
This policy will continue In Force during any such grace period. We will mail to
You and any Assigns at the post office addresses last known to Us, a Written
Notice as to the amount of premium required. This Written Notice will be sent at
least 15 days and not more than 45 days prior to the date that this policy would
lapse. If such premium is not paid to Us by the end of the grace period, this
policy will lapse. The date of lapse will be the Monthly Calculation Day on
which the deduction was to be made. By lapse we mean that the policy is no
longer in full force and has no value except to the extent of any extended
insurance provided by its Cash Surrender Value, if any, as described in the
Extended Term Insurance section below.
The death benefit payable during the grace period will equal the death benefit
in effect immediately prior to such period less overdue charges.
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EXTENDED TERM INSURANCE
If this policy lapses during the Required Annual Premium Years Payable period
and has a positive Cash Surrender Value on the date of lapse, coverage under
this policy will continue as Extended Term Insurance. At that time, all values
from the Separate Account and all values from the Long-Term Guaranteed Interest
Account will be transferred to the non-loaned portion of the Guaranteed Interest
Account. We then assess the full surrender charge against the policy, which will
be taken from the non-loaned portion of the Guaranteed Interest Account.
If the policy is in Death Benefit Option 1, the face amount of the policy will
be reduced by the amount of any outstanding Debt in effect on the date of lapse.
The loaned portion of the Guaranteed Interest Account would then be set to zero,
and there will no longer be any outstanding Debt in effect under the policy. At
the time the policy lapses to Extended Term Insurance, the Policy Value would be
set equal to the Cash Surrender Value as of the date of lapse.
Once the policy has lapsed to Extended Term Insurance, the Monthly
Administration Charge will no longer apply, and no additional premium payments,
transfers, partial surrenders, risk classification changes, or changes in face
amount may be made. In addition, policy loans will no longer be available. All
additional benefit riders will terminate unless they provide otherwise.
While this policy is In Force as Extended Term Insurance, monthly processing
will proceed as described under the section entitled Policy Value in Part 6,
with the following difference: The cost of insurance charge rates will be those
in effect for Extended Term Insurance, but in no event will such rates be higher
than the maximum guaranteed cost of insurance rates.
This policy will be continued as Extended Term Insurance until the first Monthly
Calculation Day that the Policy Value is not sufficient to pay the monthly
deduction. In such event, the policy will lapse and terminate without value as
of such date.
REINSTATEMENT
Unless this policy has been surrendered for its Cash Surrender Value or unless
Extended Term Insurance, if any, has expired, this policy may be reinstated at
any time within three years from the date of the premium default, during the
Required Annual Premium Years Payable period, as shown on the Schedule Page.
Your request for reinstatement must be made by written application, and will
require the submission of evidence of insurability satisfactory to Us, and the
payment of all Required Annual Premiums in arrears, with interest at a rate of
6% compounded annually, or an amount, if greater, that would result in a Cash
Surrender Value equal to at least 3 monthly deductions. Also required is the
payment or reinstatement of any indebtedness upon the policy, with compound
interest at the interest rate or rates which apply to policy loans between the
date of default and the date of reinstatement.
PART 5: THE ACCOUNTS
Assets under this policy may be allocated either to the Subaccounts of the
Separate Account, the Long-Term Guaranteed Interest Account or the Guaranteed
Interest Account.
SEPARATE ACCOUNT AND SUBACCOUNTS
The Phoenix Life Insurance Company's Variable Universal Life Separate Account
(VUL Account) is a Separate Account established by Our Company under Connecticut
Law and is registered as a unit investment trust under the Investment Company
Act of 1940. The VUL Account contains various Subaccounts that have different
investment objectives.
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All income, gains and losses, realized and unrealized, of the VUL Account are
credited to or charged against the amounts placed in the VUL Account without
reference to other income, gains and losses of Our General Account. The assets
of the VUL Account are owned solely by Us and We are not a trustee with respect
to such assets. These assets are not chargeable with liabilities arising out of
any other business that We may conduct.
We use the assets of the VUL Account to buy shares of the Fund(s) of this
contract according to Your most recent allocation instruction on file with Us.
The Fund(s) are registered under the Investment Company Act of 1940 as an
open-end, management investment company. The Fund(s) have separate Series that
correspond to the Subaccounts of the VUL Account. Assets of each Subaccount are
invested in shares of the corresponding Fund Series.
A Portfolio of the Fund might make a material change in its investment policy.
If that occurs, You will be notified of the change. In addition, no change will
be made in the investment policy of any of the Subaccounts of the Separate
Account without approval of the appropriate insurance supervisory official of
Our domiciliary state of New York. The approval process is on file with the
insurance supervisory official of the state where this policy is delivered.
ADDITION, DELETION OR SUBSTITUTION OF INVESTMENTS
We have the right, subject to compliance with applicable law, to add, delete or
substitute Subaccounts of the Separate Account. We also reserve the right to
eliminate the shares of any Fund(s) if they are no longer available for
investment, or if We believe investing in any Fund(s) is no longer appropriate
for the purposes of the Separate Account.
We will not add, delete or substitute shares attributable to any interest in a
Subaccount without notice to the Owner, prior approval of the Securities and
Exchange Commission as required by the Investment Company Act of 1940 and where
required, approval by the insurance supervisory official of the state where this
contract is delivered.
We reserve the right, subject to compliance with applicable law, to establish
additional Separate Accounts, Guaranteed Interest Accounts and Subaccounts and
to make them available to any class or series of contracts as We consider
appropriate. We also reserve the right to eliminate or combine existing
Subaccounts of the Separate Account and to transfer the assets between
Subaccounts, when allowed by law.
In the event of any substitution or change, the Company may, by appropriate
notice, make such changes in this and other contracts as may be necessary or
appropriate to reflect the substitution or change. If We determine it is in the
best interests of Our contract owners, We may operate the Separate Account as a
management company under the Investment Company Act of 1940, or We may
de-register it under that Act if registration is no longer required. We may also
combine it with other Separate Accounts.
VOTING RIGHTS
Although We are the legal owner of the Fund shares, We will vote the shares at
regular and special meetings of the shareholders of the Fund in accordance with
instructions received from You and the other owners of the policies. Any shares
held by Us will be voted in the same proportion as voted by You and the other
owners of the policies. However, We reserve the right to vote the shares of the
Fund without direction from You if there is a change in the law which would
permit this to be done.
V616 9
GUARANTEED INTEREST ACCOUNT (GIA)
This policy also contains a Guaranteed Interest Account (GIA) to which premium
payments may be allocated. The GIA is not part of the Separate Account. It is
accounted for as part of Our General Account. We reserve the right to limit
cumulative premium payments and transfers to the non-loaned portion of the GIA
during any one-week period to not more than $250,000.
For amounts held under the non-loaned portion of the GIA, We will credit
interest daily at such rates as We shall determine but in no event will the
effective annual rate of interest be less than 3%. At least monthly, We will set
the interest rate that will apply to any premium made to the GIA.
For amounts held under the loaned portion of the GIA, We will credit interest
daily at the effective annual rate of interest shown on the Schedule Page.
We reserve the right to add other Guaranteed Interest Accounts subject to the
approval by the insurance supervisory official of the state where this contract
is delivered.
LONG-TERM GUARANTEED INTEREST ACCOUNT (LT-GIA)
This policy also contains a Long Term Guaranteed Interest Account (LT-GIA) to
which premium payments may be allocated. The LT-GIA is not part of the Separate
Account. It is accounted for as part of Our General Account. We reserve the
right to limit the cumulative premium payments to the LT-GIA and the GIA during
any one-week period to not more than $250,000. We reserve the right to limit
transfers and cumulative premium payments to the LT-GIA to $1,000,000 over a 12
month period.
For amounts held under the LT-GIA, We will credit interest daily at such rates
as We shall determine but in no event will the effective annual rate of interest
be less than 3%.
PART 6: POLICY VALUES
POLICY VALUE
The Policy Value is the sum of this policy's share in the value of each
Subaccount of the Separate Account, the value of this policy's LT-GIA and the
value of this policy's GIA.
SHARE OF SEPARATE ACCOUNT SUBACCOUNT VALUES
The share of this policy in the value of each Subaccount of the Separate Account
on a Valuation Date is the Unit Value of that Subaccount on that date multiplied
by the number of this policy's Units in that Subaccount after all transactions
for the Valuation Period ending on that day have been processed. For any day
which does not fall on a Valuation Date, the share of this policy in the value
of each Subaccount of the Separate Account is determined using the number of
Units on that day after all transactions for that day have been processed and
the Unit Values on the next Valuation Date.
UNITS
The number of Units credited to each Subaccount of the Separate Account will be
determined by dividing the net premium payment applied to that Subaccount by the
Unit Value of that Subaccount on the Payment Date.
UNIT VALUE
The Unit Value of each Subaccount of the Separate Account was set by Us on the
first Valuation Date of each such Subaccount. The Unit Value of a Subaccount of
the Separate Account on any other Valuation Date is determined by multiplying
the Unit Value of that Subaccount on the just prior Valuation Date by the Net
Investment Factor for that Subaccount for the then current Valuation Period. The
Unit Value of each Subaccount of the Separate Account on a day other than a
Valuation Date is the Unit Value on the next Valuation Date. Unit Values are
carried to 6 decimal places. The Unit Value of each Subaccount of the Separate
Account on a Valuation Date is determined at the end of that day.
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NET INVESTMENT FACTOR
The Net Investment Factor for each Subaccount of the Separate Account is
determined by the investment performance of the assets held by the Subaccount
during the Valuation Period. Each valuation will follow applicable law and
accepted procedures.
The Net Investment Factor is equal to the result of item (D) below subtracted
from the result of dividing the sum of items (A) and (B) by item (C) as defined
below.
(A) The value of the assets in the Subaccount on the current Valuation Date,
including accrued net investment income and realized and unrealized capital
gains and losses, but excluding the net value of any transactions during
the current Valuation Period.
(B) The amount of any dividend (or, if applicable, any capital gain
distribution) received by the Subaccount if the "ex-dividend" date for
shares of the Fund occurs during the current Valuation Period.
(C) The value of the assets in the Subaccount as of the just prior Valuation
Date, including accrued net investment income and realized and unrealized
capital gains and losses, and including the net value of all transactions
during the Valuation Period ending on that date.
(D) The sum of the following daily charges as shown on the Schedule Page,
multiplied by the number of days in the current valuation period:
1. the mortality and expense risk charge; and
2. the charge, if any, for taxes and reserves for taxes on investment
income, and realized and unrealized capital gains.
MONTHLY DEDUCTION
A deduction is made each Policy Month from the Policy Value to pay:
1. the cost of insurance provided under this policy;
2. the cost of any rider benefits provided; and
3. the Administration Charge as shown on the Schedule Page.
Deductions are made on each Monthly Calculation Day. If the Monthly Calculation
Day is not a Valuation Date, the monthly deduction for that Policy Month will be
made on the next Valuation Date.
You may request in the application for this policy that monthly deductions not
be taken from certain specified Subaccounts, the LT-GIA or the GIA. Such a
request may later be changed by notifying Us In Writing, but only with respect
to future monthly deductions. Monthly deductions will be taken from this
policy's share of the remaining Subaccounts, the LT-GIA or the GIA exclusive of
the loaned portion of the Guaranteed Interest Account, on a proportionate basis.
In the event this policy's share in the value of such Subaccounts, the LT-GIA
and the GIA is not sufficient to permit the full monthly deduction, the
remainder will be taken on a proportionate basis from this policy's share of
each of the other Subaccounts, the LT-GIA and the GIA exclusive of the loaned
portion of the GIA. The number of Units deducted from each Subaccount of the
Separate Account will be determined by dividing the portion of the monthly
deduction allocated to each such Subaccount by the Unit Value of that Subaccount
on the Monthly Calculation Day.
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Each monthly deduction will pay the cost of insurance from the Monthly
Calculation Day on which the deduction is made up to, but not including, the
next Monthly Calculation Day. The cost of insurance is equal to the cost of
insurance rate for the current Policy Month divided by 1,000 and then multiplied
by the result of:
1. the death benefit on the Monthly Calculation Day; minus
2. the Policy Value on the Monthly Calculation Day.
The cost of insurance rate for each Policy Month is based on the Insured's Issue
Age, risk classification, sex and Policy Year. The rate used in computing the
cost of insurance is obtained from the Table of Guaranteed Maximum Cost of
Insurance Rates shown for the Insured's risk classifications, or such lower rate
as We may declare.
Not more frequently than once per year and no less frequently than once every
five years, We will review the monthly cost of insurance rates to determine if
these rates should be changed. However, the rates will never exceed the
Guaranteed Maximum Cost of Insurance Rates shown on the Schedule Pages. Our
right to change rates is also subject to the following terms:
1. Any change in rates will be made on a uniform basis for all Insureds in
the same class and will comply with any procedures and standards that We
have filed with the Insurance Department of the state where this policy is
delivered. No change in rates will occur due to any change in the Insured's
health or occupation.
2. Any change in rates will be determined prospectively. We will not
distribute past gains or recoup prior losses, if any, by changing the
rates.
3. Any change in rates will be based on a change in Our expectations for such
factors as investment earnings, mortality, persistency and expenses.
PART 7: LIFETIME BENEFITS
TRANSFERS
You may transfer all or a portion of the Policy Value among one or more of the
Subaccounts, the LT-GIA and the non-loaned portion of the GIA. Transfers are
made by Written Request. You may make up to 12 transfers per Policy Year from
the Subaccounts and only one transfer per Policy Year from the non-loaned
portion of the GIA unless the Dollar Cost Averaging (DCA) Program or Asset
Rebalancing Program is elected. Except as otherwise provided under the DCA
Program, the amount that may be transferred from the non-loaned portion of the
GIA at any one time cannot exceed the higher of $1000 or 25% of the value of the
non-loaned portion of the GIA.
Under the DCA Program, funds may be transferred automatically among the
Subaccounts on a monthly, quarterly, semi-annual or annual basis. Unless We
agree otherwise, the minimum initial and subsequent transfer amounts are $25
monthly, $75 quarterly, $150 semi-annually or $300 annually. You must have an
initial value of $2,000 in the non-loaned portion of the GIA or the Subaccount
from which funds will be transferred. Funds may be transferred from only one
sending Subaccount or the non-loaned portion of the GIA but may be allocated to
multiple receiving Subaccounts, the LT-GIA or the non-loaned portion of the GIA.
Under the DCA Program, You may transfer approximately equal amounts from the
non-loaned portion of the GIA over a minimum 6-month period.
Under the Asset Rebalancing Program, funds are transferred automatically among
the Subaccounts on a monthly, quarterly, semi-annual or annual basis to maintain
the allocation percentage elected by Written Request. Transfers to or from the
GIA are not permitted under the Asset Rebalancing Program.
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Transfers made under the DCA Program or Asset Rebalancing Program will be
processed on the next Valuation Date following Your request for the month that
applies. If the value in the sending Subaccount or non-loaned portion of the GIA
is below the amount to be transferred, then the entire remaining balance will be
transferred and the DCA or Asset Rebalancing Programs will be completed. You may
terminate Your participation in the DCA or Asset Rebalancing Programs at any
time by sending a Written Request to Us. Upon completion of the DCA or Asset
Rebalancing Programs, You must send a Written Request to Us to start another DCA
or Asset Rebalancing Program.
The transfer charge is as shown on the Schedule Page. Any such charge will be
deducted from the Subaccounts, the LT-GIA or the GIA from which the amounts are
to be transferred with each such Subaccount, the LT-GIA or non-loaned portion of
the GIA bearing a pro rata share of the transfer charge. The value of each
Subaccount will be determined on the Valuation Date that coincides with the date
of transfer.
The amount that may be transferred from the LT-GIA at any time cannot exceed the
greater of $1,000, 10% of the value of the LT-GIA, and the amount transferred
from the LT-GIA in the prior Policy Year. Only one transfer is permitted per
Policy Year from the LT-GIA. We reserve the right to not permit transfers to or
from the LT-GIA under the Asset Rebalancing Program. Transfers from the LT-GIA
are not permitted under the DCA program.
We reserve the right, in Our sole and absolute discretion, to temporarily or
permanently terminate transfer or exchange privileges or reject any specific
order from anyone including the Owner, market-timing organization, or
individual, or other party authorized to give transfer or exchange orders whose
transactions seem to follow a timing pattern including but not limited to those
who request more than one transfer or exchange out of a Subaccount within a
thirty-day period. We will not accept batch transfer instructions from anyone
acting under powers of attorney for multiple Owners, unless We have entered into
a third-party transfer service agreement. Such transfer limitations could be
applied to transfers to or from some or all of the Accounts. These limitations,
individually or in aggregate, may be applied in any manner reasonably designed
to prevent any use of the transfer right which is considered by Us to be to the
disadvantage of other Owners. If We reject a transfer for any of these reasons,
We will notify You of Our decision in writing.
LOANS
While this policy is In Force, a loan may be obtained against this policy in any
amount up to the available loan value. To obtain a loan, this policy must be
properly assigned to Us as security. We need no other collateral. We reserve the
right not to allow loans of less than $500 unless the loans are to pay premiums
on another policy issued by Us.
The maximum loan value is equal to the Policy Value projected (with interest and
monthly cost of insurance charges) to the next Policy Anniversary, discounted
for interest at the loan interest rate, less any applicable surrender charge
then in effect.
The "available loan value" is the maximum loan value less any outstanding debt.
In no event will the maximum loan value exceed the current Policy Value less any
applicable surrender charge.
The amount of the loan will be added to the loaned portion of the GIA and
subtracted from this policy's share of the Subaccounts, the LT-GIA and the GIA
based on the allocation You request at the time of the loan. The total reduction
will equal the amount added to the loaned portion of the GIA. Unless We agree
otherwise, allocations to each Subaccount, the LT-GIA and the GIA must be
expressed in whole percentages. If no allocation request is made, the amount
subtracted from the share of each Subaccount, the LT-GIA and the GIA will be
determined in the same manner as provided for monthly deductions.
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Debt may be repaid at any time while this policy is In Force. Such repayment, in
excess of any outstanding accrued loan interest, will be applied to reduce the
loaned portion of the GIA and will be transferred to the non-loaned portion of
the GIA to the extent that loaned amounts taken from such account have not
previously been repaid. Otherwise, such balance will be transferred among the
LT-GIA or Subaccounts You request upon repayment and, if no allocation request
is made, We will use Your most recent premium allocation schedule on file with
Us. Any Debt repayment received by Us during a grace period as described in Part
4 will be reduced to cover any overdue monthly deductions and only the balance
applied to reduce the Debt. Such balance will also be applied as described to
reduce the loaned portion of the GIA.
While there is any outstanding Debt against this policy, any payments received
by Us for this policy will be applied directly to reduce the Debt unless
specified as a premium payment. Until the Debt is fully repaid, additional Debt
repayments may be made at any time while this policy is In Force.
Failure to repay a policy loan or to pay loan interest will not terminate this
policy except as otherwise provided under Grace Period and Lapse in Part 4 when
this policy does not have sufficient remaining value to pay the monthly
deductions, in which event, that grace period provision will apply.
LOAN INTEREST
Loans will bear interest at an effective annual rate equal to the loan interest
rate shown on the Schedule Page and will be compounded daily. Interest will
accrue on a daily basis from the date of the loan and is included as part of the
Debt under this policy. Loan interest will be due on each Policy Anniversary. If
not paid when due, the outstanding accrued interest on that date will be charged
as a loan against this policy.
OVERLOAN PROTECTION
You have the option of exercising Overloan Protection, In Writing, when the
following conditions exist on the Monthly Calculation Day and any loans in
excess of 96% of the Policy Value are repaid:
1. the loan balance exceeds the specified Face Amount; and
2. the loan balance is equal to 96% of the total Policy Value; and
3. the Insured is at least 75 years of Age; and
4. this policy has been In Force for at least 15 Policy Years; and
5. all premiums paid have been previously withdrawn by partial surrender.
Note: If the loan balance is in excess of 96% of the Policy Value, the loan
balance in excess of 96% of the Policy Value must be repaid at the time that
such Overloan Protection is exercised.
Overloan Protection will be effective on the Monthly Calculation Day following
Your Written Request. Once in effect, Overloan Protection will keep Your policy
In Force and the following changes will automatically take effect:
1. any riders then in effect will terminate;
2. the death benefit will be permanently set to Death Benefit Option 1;
3. the Face Amount will be reduced to the Policy Value multiplied by 101%;
and
4. the death benefit will be the greater of:
a) the new Face Amount; or
b) the greater of the Policy Value or the Debt multiplied by the
applicable Minimum Death Benefit Corridor Percentage.
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5. any remaining Policy Value will be transferred to the Long-Term
Guaranteed Interest Account and no further transfers will be allowed;
6. no further premium payments will be accepted;
7. no further partial surrenders will be allowed;
8. no further monthly deduction will be assessed;
9. no additional loans or loan repayments will be allowed.
Any Loan balance will reduce the death benefit payable. Loan Interest will
continue to accrue on this policy.
Once You have elected Overloan Protection a one-time Overloan Transaction
Charge, as shown on the Schedule Page will be assessed. There is no additional
charge for this benefit or for any of the automatic changes that occur pursuant
to Your election of this benefit.
FULL SURRENDER
You may fully surrender this policy for its Cash Surrender Value by returning
this policy to Us at Our VULA along with a written release and surrender of all
claims under this policy signed by You and any Assigns. You may do this at any
time during the lifetime of the Insured while this policy is In Force. The
written surrender must be in a form satisfactory to Us and must include such tax
withholding information as We may reasonably require. The surrender will be
effective on the later of the dates on which We receive the returned policy and
the written surrender request. Upon full surrender, all insurance and any rider
benefits provided under this policy will terminate.
PARTIAL SURRENDER
You may obtain a partial surrender of this policy by requesting that a part of
this policy's Cash Surrender Value be paid to You. You may do this at any time
during the lifetime of the Insured while this policy is In Force with a Written
Request signed by You and any Assigns. We reserve the right to require that this
policy first be returned to Us before payment is made. A partial surrender will
be effective on the date We receive the Written Request or, if required, the
date We receive this policy if later.
A partial surrender will be denied if the resultant Cash Surrender Value would
be less than or equal to zero. We reserve the right not to allow partial
surrenders if the resulting death benefit would be less than $25,000 or if the
amount of the partial surrender is less than $500. We further reserve the right
to require that the entire balance of a Subaccount, the LT-GIA or the GIA be
surrendered if the share of this policy in the value of that Subaccount, the
LT-GIA or the GIA would, immediately after a partial surrender, be less than
$500.
Upon a partial surrender, the Policy Value will be reduced by the sum of the
following:
1. The partial surrender amount paid. This amount comes from a reduction in
this policy's share in the value of each Subaccount, the LT-GIA and the
GIA based on the allocation You request at the time of the partial
surrender. If no allocation request is made, the assessment to each
Subaccount, the LT-GIA and the GIA will be made in the same manner as
provided for monthly deductions.
2. The partial surrender fee as shown on the Schedule Page. The assessment to
each Subaccount, the LT-GIA and the GIA will be made in the same manner
as provided for the partial surrender amount paid.
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3. A surrender charge. This charge is determined by multiplying the applicable
surrender charge shown on the Schedule Page by a fraction equal to the
partial surrender amount payable divided by the result of subtracting the
applicable surrender charge from the Policy Value. This amount is assessed
against the Subaccounts, the LT-GIA and the GIA in the same manner as
provided for the partial surrender amount paid.
When Death Benefit Option 1 is in effect and a partial surrender is taken, the
Face Amount does not change if the Minimum Death Benefit exceeds the Face
Amount. If the Face Amount exceeds the Minimum Death Benefit when a partial
surrender is taken, the Face Amount is decreased by the same amount as the
Policy Value.
When Death Benefit Option 2 is in effect and a partial surrender is taken, the
Face Amount does not change.
PART 8: DEATH BENEFITS
This policy will be issued with Death Benefit Option 2. After Policy Year four,
while this policy is In Force and prior to the Insured's Age 100, You have the
right to change Your Death Benefit Option. The Death Benefit Options are
described below.
DEATH BENEFIT OPTION 1
Under this option, until the Policy Anniversary following the date that the
Insured has attained the Age of 100, the death benefit is equal to the greater
of (1) or (2) as defined below:
1. this policy's Face Amount on the date of death;
2. the Minimum Death Benefit on the date of death as described below.
DEATH BENEFIT OPTION 2
Under this option, until the Policy Anniversary following the date that the
Insured has attained the Age of 100, the death benefit is equal to the greater
of (1) or (2) as defined below:
1. this policy's Face Amount on the date of death plus the Policy Value;
2. the Minimum Death Benefit on the date of death as described below.
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MINIMUM DEATH BENEFIT
The Minimum Death Benefit is the Policy Value on the date of death of the
Insured multiplied by the applicable percentage from the Minimum Death Benefit
Corridor Percentages table below, based on the Insured's Age at the beginning of
the Policy Year in which the death occurs.
MINIMUM DEATH BENEFIT CORRIDOR PERCENTAGES
Age Pct. Age Pct. Age Pct.
--- ---- --- ---- --- ----
0 - 40 250% 54 157% 68 117%
41 243 55 150 69 116
42 236 56 146 70 115
43 229 57 142 71 113
44 222 58 138 72 111
45 215 59 134 73 109
46 209 60 130 74 107
47 203 61 128 75 105
48 197 62 126 76-90 105
49 191 63 124 91 104
50 185 64 122 92 103
51 178 65 120 93 102
52 171 66 119 94 101
53 164 67 118 95 and over 100
DEATH BENEFIT AFTER AGE 100 ANNIVERSARY
On and after the Policy Anniversary following the date that the Insured has
attained the Age of 100, the death benefit will equal the Policy Value. There
will be no Monthly Deductions after Age 100 of the Insured. The Loans provision
and partial surrenders provision will remain in effect. No premiums may be paid
after Age 100 of the Insured.
Death Benefit Option 2 will no longer be available on and after the Policy
Anniversary following the date that the Insured has attained the Age of 100. If
Death Benefit Option 2 is in effect, at the Insured's Age 100, the Death Benefit
will be converted to Death Benefit Option 1 on the following Policy Anniversary.
UNDER FEDERAL TAX LAW, THIS POLICY MAY NOT QUALIFY AS LIFE INSURANCE AFTER THE
INSURED'S AGE 100. IT MAY BE SUBJECT TO ADVERSE TAX CONSEQUENCES AND A TAX
ADVISOR SHOULD BE CONSULTED BEFORE THE POLICYHOLDER CHOOSES TO CONTINUE THIS
POLICY AFTER THE INSURED'S AGE 100.
HOW TO CHANGE THE DEATH BENEFIT OPTION
While this policy is In Force prior to the Insured's Age 100 and subsequent to
the fourth Policy Year, You may make a Written Request to change Your Death
Benefit Option. No evidence of insurability is required. If the request is to
change from Death Benefit Option 1 to Death Benefit Option 2, the Face Amount
will be decreased by the Policy Value; if the request is to change from Death
Benefit Option 2 to Death Benefit Option 1, the Face Amount will be increased by
the Policy Value. Any such change will be in effect on the Monthly Calculation
Day coincident with or next following the day We approve the request.
REQUEST FOR A DECREASE IN FACE AMOUNT
You may request a decrease in Face Amount at any time after the first Policy
Year. Unless We agree otherwise, the decrease requested must at least equal
$25,000 and the Face Amount remaining after the decrease must at least equal
$25,000. All requests to decrease the Face Amount must be In Writing and will be
effective on the first Monthly Calculation Day following the date We approve the
request. We reserve the right to require that this policy first be returned to
Us before the decrease is made.
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A decrease in the Face Amount will result in a reduction in the Total Premium
Limit, as shown on the Schedule Page. Upon a decrease in Face Amount, a
surrender charge will be deducted from the Policy Value based on the amount of
the decrease. The charge will equal the applicable surrender charge shown on the
Schedule Page multiplied by the result of dividing the decrease in Face Amount
by the Face Amount of the policy before the decrease. We will send You a revised
Schedule Page reflecting the change.
DEATH PROCEEDS
Upon receipt of due proof at Our VULA that the Insured died while this policy is
In Force, We will pay the death proceeds of this policy. The death proceeds
equal the death benefit on the date of death, with the following adjustments:
1. We will deduct any Debt outstanding against this policy;
2. We will deduct any monthly deductions up to and including the Policy Month
of death not already made;
3. We will add any premiums received by Us after the last Monthly Calculation
Day just prior to the date of death which have not been applied to this
policy.
The Death Proceeds of this policy will be paid in a lump sum unless otherwise
agreed by You and Us. We reserve the right to add additional payment options
subject to the approval by the insurance supervisory official of the state where
this contract is delivered.
INTEREST ON DEATH PROCEEDS
We will pay interest on any death proceeds from the date of the Insured's death
to the date of payment. In no case will the interest paid on the death proceeds
be less than 3% or the rate required in the state in which this policy is
issued.
THE BENEFICIARY
Unless You provide otherwise, any death proceeds that become payable under this
policy will be paid in equal shares to the beneficiaries living at the death of
the Insured. Payments will be made successively in the following order:
1. Primary beneficiaries;
2. Contingent beneficiaries, if any, provided no primary beneficiary is living
at the death of the Insured;
3. You or Your executor or administrator, provided no primary or contingent
beneficiary is living at the death of the Insured.
Unless otherwise stated, the relationship of a beneficiary is the relationship
to the Insured.
HOW TO CHANGE THE BENEFICIARY
You may change the beneficiary under this policy by Written Request.
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FIXED AND FLEXIBLE PREMIUM VARIABLE UNIVERSAL LIFE INSURANCE POLICY
THE DEATH BENEFIT AND OTHER VALUES PROVIDED UNDER THIS POLICY ARE BASED ON THE
RATES OF INTEREST CREDITED ON ANY AMOUNTS ALLOCATED TO THE GUARANTEED INTEREST
ACCOUNT, LONG-TERM GUARANTEED INTEREST ACCOUNT AND THE INVESTMENT EXPERIENCE OF
THE SUBACCOUNTS WITHIN OUR SEPARATE ACCOUNT TO WHICH YOUR PREMIUMS ARE
ALLOCATED. THUS, THE DEATH BENEFIT AND OTHER VALUES MAY INCREASE OR DECREASE IN
AMOUNT OR DURATION. SEE PART 8 FOR A DESCRIPTION OF HOW THE DEATH BENEFIT IS
DETERMINED.
NONPARTICIPATING
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