FLEXIBLE PREMIUM DEFERRED 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, HE OR SHE 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 ANY
PURCHASE PAYMENTS MADE AND ALLOCATED TO THE FIXED ACCOUNT AND 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 VARIABLE ANNUITY CONTRACT.
* Purchase Payments may be made until the earlier of the Annuity Payout Date or
termination of the Contract.
* A Death Benefit may be paid prior to the Annuity Payout Date according to the
Contract provisions.
* Annuity Payments begin on the Annuity Payout Date using the method specified
in this Contract.
ALL PAYMENTS AND VALUES PROVIDED BY THIS CONTRACT, WHEN 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.)
[SBG LOGO]
SECURITY BENEFIT LIFE INSURANCE COMPANY
A Member of The Security Benefit Group of Companies
P.O. Box 750440, Topeka, KS 66675-0440
000 XX Xxxxxxxx Xxxxxx, Xxxxxx, XX 00000-0001
0-000-000-0000
0-000-000-0000 FOR CUSTOMER SERVICE
Form V6021 (4-94)
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TABLE OF CONTENTS
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PAGE
CONTRACT SPECIFICATIONS ............................................... 3
DEFINITIONS ........................................................... 4-6
GENERAL PROVISIONS .................................................... 7, 8
THE CONTRACT ....................................................... 7
COMPLIANCE ......................................................... 7
MISSTATEMENT OF AGE AND SEX ........................................ 7
EVIDENCE OF SURVIVAL ............................................... 7
INCONTESTABILITY ................................................... 7
ASSIGNMENT ......................................................... 7
EXCHANGES .......................................................... 8
CLAIMS OF CREDITORS ................................................ 8
NONFORFEITURE VALUES ............................................... 8
PARTICIPATION ...................................................... 8
STATEMENTS ......................................................... 8
OWNERSHIP, ANNUITANT AND
BENEFICIARY PROVISIONS ................................................ 9
OWNERSHIP .......................................................... 9
JOINT OWNERSHIP .................................................... 9
ANNUITANT .......................................................... 9
PRIMARY AND SECONDARY BENEFICIARIES ................................ 9
OWNERSHIP AND BENEFICIARY CHANGES .................................. 9
PURCHASE PAYMENT PROVISIONS ........................................... 10
FLEXIBLE PURCHASE PAYMENTS ......................................... 10
PURCHASE PAYMENT LIMITATIONS ....................................... 10
PURCHASE PAYMENT ALLOCATION ........................................ 10
PLACE OF PAYMENT ................................................... 10
CONTRACT VALUE AND EXPENSE PROVISIONS ................................. 10-12
CONTRACT VALUE ..................................................... 10
FIXED ACCOUNT CONTRACT VALUE ....................................... 10
FIXED ACCOUNT INTEREST CREDITING ................................... 11
SEPARATE ACCOUNT CONTRACT VALUE .................................... 11
ACCUMULATION UNIT VALUE ............................................ 11
DETERMINING ACCUMULATION UNITS ..................................... 11
MORTALITY AND EXPENSE RISK CHARGE .................................. 12
PREMIUM TAX EXPENSE ................................................ 12
MUTUAL FUND EXPENSES ............................................... 12
WITHDRAWAL PROVISIONS ................................................. 12, 13
WITHDRAWALS ........................................................ 12
WITHDRAWAL VALUE ................................................... 13
SYSTEMATIC WITHDRAWALS ............................................. 13
DATE OF REQUEST .................................................... 13
PAYMENT OF WITHDRAWAL BENEFITS ..................................... 13
DEATH BENEFIT PROVISIONS .............................................. 14, 15
DEATH BENEFIT ...................................................... 14
PROOF OF DEATH ..................................................... 14
DISTRIBUTION RULES ................................................. 14, 15
ANNUITY PAYMENT PROVISIONS ............................................ 15-19
ANNUITY PAYOUT DATE ................................................ 15
CHANGE OF ANNUITY PAYOUT DATE ...................................... 15
ANNUITY PAYOUT AMOUNT .............................................. 15
ANNUITY TABLES ..................................................... 16
ANNUITY PAYMENTS ................................................... 16
CHANGE OF ANNUITY OPTION ........................................... 16
FIXED ANNUITY PAYMENTS ............................................. 16
VARIABLE ANNUITY PAYMENTS .......................................... 16
ANNUITY UNITS ...................................................... 16, 17
NET INVESTMENT FACTOR .............................................. 17
ALTERNATE ANNUITY OPTION RATES ..................................... 17
ANNUITY OPTIONS .................................................... 18, 19
ANNUITY TABLES ........................................................ 20
AMENDMENTS OR ENDORSEMENTS, IF ANY
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00-00000-00
BP 602111
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CONTRACT SPECIFICATIONS
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OWNER NAME: CONTRACT NUMBER:
OWNER DATE OF BIRTH: CONTRACT DATE:
JOINT OWNER NAME: ISSUE DATE:
JOINT OWNER DATE OF BIRTH: ANNUITY PAYOUT DATE:
ANNUITANT NAME: PLAN:
ANNUITANT DATE OF BIRTH: ASSIGNMENT:
ANNUITANT GENDER:
PRIMARY BENEFICIARY: SECONDARY BENEFICIARY
NAME: See Application or subsequent
change form
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INITIAL PURCHASE PAYMENT ..............................
MINIMUM SUBSEQUENT PURCHASE PAYMENTS ..................
investment program
MINIMUM SYSTEMATIC WITHDRAWAL ......................... $100
MORTALITY AND EXPENSE RISK CHARGE ..................... .55% Annually
GUARANTEED RATE ....................................... 3%
ANNUITY OPTION ........................................
SUBACCOUNTS:
New America Growth Subaccount
International Stock Subaccount
Mid-Cap Growth Subaccount
Equity Income Subaccount
Personal Strategy Balanced Subaccount
Limited-Term Bond Subaccount
Prime Reserve Subaccount
METHOD FOR DEDUCTIONS:
Deductions for any Premium Taxes will be allocated proportionately to the
Owner's Contract Value in the Subaccounts and the Fixed Account.
* The Annuity Payout Date and Annuity Option are assigned automatically and may
be changed by the Owner prior to the Annuity Payout Date. See "Change of
Annuity Payout Date" and "Change of Annuity Option."
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V6021 A (9-96)
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DEFINITIONS
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ACCOUNT
An Account is one of the Subaccounts or the Fixed Account.
ACCUMULATION UNIT
The Accumulation Unit is a unit of measure. It is used to
compute the Separate Account Contract Value prior to the
Annuity Payout Date. It is also used to compute the
Variable annuity Payments for Annuity Options 5 through 7.
ANNUITANT
The Annuitant is the person named by the Owner on whose
life the Annuity Payments depend for Annuity Options 1
through 4. The Annuitant receives Annuity Payments under
this Contract. Please see "Annuitant" provisions on page 9.
ANNUITY OPTION
An Annuity Option is a set of provisions that form the
basis for making Annuity Payments. The Annuity Option is
set prior to the Annuity Payout Date. Please see "Annuity
Options" on pages 18 and 19.
ANNUITY PAYOUT DATE
The Annuity Payout Date is the date on which Annuity
Payments are scheduled to begin. This date may be changed
by the Owner. The Annuity Payout Date is shown on Page 3.
Please see "Annuity Payout Date" on page 15.
ANNUITY UNIT
The Annuity Unit is a unit of measure used to compute
Variable Annuity Payments for Annuity Options 1 through 4.
AUTOMATIC EXCHANGES
Automatic Exchanges are Exchanges among the Subaccounts and
the Fixed Account. Such exchanges are made automatically on
a periodic basis by the Company at the written request of
the Owner. The Company reserves the right to discontinue,
modify or suspend Automatic Exchanges.
COMPANY
The Company is Security Benefit Life Insurance Company,
P.O. Box 750440, Topeka, Kansas 66675-0440.
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.
CURRENT INTEREST
The Company may in its discretion pay Current Interest on
the Fixed Account at a rate that exceeds the Guaranteed
Rate shown on page 3. The Company will declare the rate of
Current Interest, if any, from time to time.
DESIGNATED BENEFICIARY
Upon the death of the Owner or Joint Owner, the Designated
Beneficiary will be the first person on the following list
who is alive on the date of death:
1. Owner;
2. Joint Owner;
3. Primary Beneficiary;
4. Secondary Beneficiary;
5. Annuitant; and
6. the Owner's estate if no one listed above is alive.
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V6021 B (4-94)
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DEFINITIONS (CONTINUED)
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DESIGNATED
BENEFICIARY (Cont'd)
The Designated Beneficiary receives a death benefit upon
the death of the Owner. Please see "Ownership, Annuitant,
and Beneficiary Provisions" on page 9 and "Death Benefit
Provisions" on pages 14 and 15.
FIXED ACCOUNT
The Fixed Account is part of the Company's general account.
The Company manages the general account and guarantees that
it will credit interest on Fixed Account Contract Value at
an annual rate at least equal to the Guaranteed Rate. This
Rate is shown on page 3.
GUARANTEE PERIOD
Current Interest, if declared, is fixed for rolling periods
of one or more years, referred to as Guarantee Periods. The
Company may offer Guarantee Periods of different durations.
The Guarantee Period that applies to any Fixed Account
Contract Value: (1) starts on the date that such Contract
Value is allocated to the Fixed Account pursuant to: (a) a
Purchase Payment Received by the Company; or (b) an
Exchange to the Fixed Account; and (2) ends on the last day
of the same month in the year in which the Guarantee Period
expires. When any Guarantee Period expires, a new Guarantee
Period shall start for such Contract Value on the date that
follows such expiration date. Such period shall end on the
immediately preceding date in the year in which the
Guarantee Period expires. For example, assuming a one-year
Guarantee Period, Contract Value exchanged to the Fixed
Account on June 1 would have a Guarantee Period starting on
that date and ending on June 30 of the following year. A
new Guarantee Period for such Contract Value would start on
July 1 of that year and end on June 30 of the following
year.
HOME OFFICE
The address of the Company's Home Office is Security
Benefit Life Insurance Company, P.O. Box 750440, Topeka,
Kansas 66675-0440.
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 who has all rights under the
Contract. The Owner is named on page 3. Please see
"Ownership" provisions on page 9.
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, P.O. Box 750440,
Topeka, Kansas 66675-0440.
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DEFINITIONS (CONTINUED)
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SEPARATE ACCOUNT
The X. Xxxx Price Variable Annuity 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 values of the assets
in the Separate Account on each Valuation Date are
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.
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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V6021 C (4-94)
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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 or the
Annuitant 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.
MISSTATEMENT OF AGE
AND SEX
If the age or sex of the Annuitant has been misstated,
payments shall be adjusted, when allowed by law, to the
amount which would have been provided for the correct age
or sex. Proof of the age of an Annuitant may be required at
any time, in a form suitable to the Company. If payments
have already commenced and the misstatement has caused an
underpayment, the full amount due will be paid with the
next scheduled payment. If the misstatement has caused an
overpayment, the amount due will be deducted from one or
more future payments.
EVIDENCE OF SURVIVAL
When any payments under this Contract depend on the payee
being alive on a given date, proof that the payee is living
may be required by the Company. Such proof must be in a
form accepted by the Company, and may be required prior to
making the payments.
INCONTESTABILITY
This Contract will not be contested after it has been in
force for two years from the Issue Date during the life of
the Owner.
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, Annuitant and Beneficiary are subject to the
Assignment. Any claim is subject to proof of interest of
the assignee.
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GENERAL PROVISIONS (CONTINUED)
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EXCHANGES
The Owner may Exchange Contract Value among the Fixed
Account and Subaccounts subject to the following.
The Owner may make only six Exchanges per Contract Year.
Exchanges are not allowed within 30 days of the Annuity
Payout Date. Automatic Exchanges are not included in the
six Exchanges allowed per Contract Year. After the Annuity
Payout Date, for Annuity Options 1 through 4, the Owner may
Exchange Contract Value only among Subaccounts.
The Company reserves the right to: (1) limit the amount
that may be subject to Exchanges; (2) limit the amount
remaining in an account after an Exchange; (3) waive or
limit the number of Exchanges allowed each Contract Year;
(4) impose conditions on the right to Exchange; and (5)
suspend Exchanges. Exchanges must be at least $500 or, if
less, the remaining balance in the Fixed Account or a
Subaccount.
Contract Value may be exchanged from the Fixed Account
only: (1) during the calendar month in which the applicable
Guarantee Period expires; and (2) pursuant to an Automatic
Exchange. Exchanges of Fixed Account Contract Value shall
be made: (1) first from Fixed Account Contract Value for
which the Guarantee Period expires during the calendar
month in which the Exchange is effected; (2) then in the
order that starts with Fixed Account Contract Value which
has the longest amount of time before its Guarantee Period
expires; and (3) ends with that which has the least amount
of time before its Guarantee Period expires.
The Company will effect an Exchange to or from a Subaccount
on the basis of Accumulation Unit Value (or Annuity Unit
Value) determined at the end of the Valuation Period in
which the Exchange is effected. The Company will effect an
Exchange from the Fixed Account on the basis of Fixed
Account Contract Value at the end of the Valuation Period
in which the Exchange is effected.
The Company reserves the right to delay Exchanges from the
Fixed Account for up to 6 months as required by most
states. The Company will inform you if there will be a
delay.
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 Death Benefits, Withdrawal Values and Annuity Payout
Values will at least equal the minimum required by law.
PARTICIPATION
The Company is a mutual life insurance company. Therefore,
it pays dividends on some of its contracts. 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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V6021 D (4-94)
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OWNERSHIP, ANNUITANT AND BENEFICIARY PROVISIONS
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OWNERSHIP
During the Owner's lifetime, 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. No
Owner may be older than age 85 on the Contract Date.
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 and the "Death
Benefit Provisions" on pages 14 and 15.
ANNUITANT
The Annuitant is named on page 3. The Owner may change the
Annuitant prior to the Annuity Payout Date. The request for
this change must be made in writing and Received by the
Company at least 30 days prior to the Annuity Payout Date.
No Annuitant may be named who is more than 85 years old on
the Contract Date. When the Annuitant dies prior to the
Annuity Payout Date, the Owner must name a new Annuitant
within 30 days or, if sooner, by the Annuity Payout Date,
except where the Owner is a Nonnatural Person. If a new
Annuitant is not named, the Owner becomes the Annuitant.
PRIMARY AND
SECONDARY
BENEFICIARIES
The Primary Beneficiary and any Secondary Beneficiary are
named on page 3. The Owner may change any Beneficiary as
described in "Ownership and Beneficiary Changes" below. If
the Primary Beneficiary dies prior to the Owner, the
Secondary Beneficiary becomes the Primary Beneficiary.
Unless the Owner directs otherwise, when there are two or
more Primary Beneficiaries, they will receive equal shares.
OWNERSHIP AND
BENEFICIARY CHANGES
Subject to the terms of any existing Assignment, the Owner
may name a new Owner, a new Primary Beneficiary or a new
Secondary Beneficiary. Any new choice of Owner, Primary
Beneficiary or Secondary Beneficiary 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, whether or not the
Owner is living at the time the change is recorded. A new
choice of Primary Beneficiary or Secondary Beneficiary will
not apply to any payment made or action taken by the
Company prior to the time it was recorded. The Company may
require the Contract be returned so these changes may be
made.
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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 or
administrative 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
LIMITATIONS
Total Purchase Payments to the Contract may not be greater
than $1,000,000 without prior approval by the Company. The
Minimum Subsequent Purchase Payment amount is shown on page
3.
PURCHASE PAYMENT
ALLOCATION
Purchase Payments may be allocated among the Fixed Account
and the Subaccounts. The allocations may be a whole dollar
amount or whole percentage. However, no less than $25 per
Purchase Payment may be allocated to any Account. 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
first 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 the sum of:
(1) the Separate Account Contract Value; and (2) the Fixed
Account Contract Value. At any time after the first
Contract Year and before the Annuity Payout Date, the
Company reserves the right to pay to the Owner the Contract
Value as a lump sum if it is below $2,000.
FIXED ACCOUNT
CONTRACT VALUE
On any Valuation Date, the Fixed Account Contract Value is
equal to the first Purchase Payment allocated under the
Contract to the Fixed Account:
PLUS:
1. any other Purchase Payments allocated under the Contract
to the Fixed Account;
2. any Exchanges from the Separate Account to the Fixed
Account; and
3. any interest credited to the Fixed Account.
LESS:
1. any Withdrawals deducted from the Fixed Account;
2. any Exchanges from the Fixed Account to the Separate
Account;
3. any applicable Premium Taxes;
4. any Fixed Account Contract Value which is applied to any
of Annuity Options 1 through 4; and
5. any Annuity Payments made under Annuity Options 5
through 7.
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V6021 E (4-94)
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CONTRACT VALUE AND EXPENSE PROVISIONS (CONTINUED)
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FIXED ACCOUNT
INTEREST CREDITING
The Company shall credit interest on Fixed Account Contract
Value at an annual rate at least equal to the Guaranteed
Rate shown on page 3. Also, the Company may in its sole
judgment credit Current Interest at a rate in excess of the
Guaranteed Rate. The rate of Current Interest, if declared,
shall be fixed during the Guarantee Period. Fixed Account
Contract Value shall earn Current Interest during each
Guarantee Period at the rate, if any, declared by the
Company on the first day of the Guarantee Period.
The Company may credit Current Interest on Contract Value
that was allocated or exchanged to the Fixed Account during
one period at a different rate than amounts allocated or
exchanged to the Fixed Account in another period. Also, the
Company may credit Current Interest on Fixed Account
Contract Value at different rates based upon the length of
the Guarantee Period. Therefore, at any time, portions of
Fixed Account Contract Value may be earning Current
Interest at different rates based upon the period during
which such portions were allocated or exchanged to the
Fixed Account and the length of the Guarantee Period.
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. Other Accumulation Unit Values are found on
each Valuation Date by dividing (1) by (2) where:
1. is equal to:
a. the Subaccount Net Asset Value determined at the end
of the current Valuation Period; plus
b. any dividends declared by the Subaccount's underlying
mutual fund that are not part of the Subaccount Net
Asset Value; less
c. the accrued Mortality and Expense Risk Charge; and
d. any taxes for which the Company has reserved which
the Company deems to have resulted from the operation
of the Subaccount.
2. is the number of Accumulation Units at the start of the
Valuation Period.
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 at 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 Exchanged into or out of the
Subaccount;
3. Withdrawals that are deducted from the Subaccount; and
4. Premium Taxes that are deducted from the Subaccount.
-11-
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CONTRACT VALUE AND EXPENSE PROVISIONS (CONTINUED)
--------------------------------------------------------------------------------
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 and Annuity
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.
--------------------------------------------------------------------------------
WITHDRAWAL PROVISIONS
--------------------------------------------------------------------------------
WITHDRAWALS
A full Withdrawal of the Contract Value or partial
Withdrawal of Separate Account Contract Value is allowed at
any time. Partial Withdrawals of Fixed Account Contract
Value are, however, restricted as described below. This
provision is subject to any federal or state Withdrawal
restrictions.
A partial Withdrawal of Fixed Account Contract Value may be
made only: (1) pursuant to Systematic Withdrawals; (2)
during the calendar month in which the applicable Guarantee
Period expires; and (3) once per Contract Year in an amount
up to the greater of $5,000 or 10 percent of the Fixed
Account Contract Value at the time of the partial
Withdrawal.
Upon the Owner's request for a full Withdrawal, the Company
will pay the Withdrawal Value in a lump sum.
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.
2. The Owner must apply: (a) while this Contract is in
force; and (b) prior to the Annuity Payout Date.
3. The amount Withdrawn must be at least $500.00 except for
Systematic Withdrawals, as discussed below, or when
terminating the Contract.
A partial Withdrawal request must state the allocations for
deducting the Withdrawal from each Account. Withdrawals of
Fixed Account Contract Value shall be made: (1) first from
Fixed Account Contract Value for which the Guarantee Period
expires during the calendar month in which the Withdrawal
is effected; (2) then in the order that starts with Fixed
Account Contract Value which has the longest amount of time
before its Guarantee Period expires; and (3) ends with that
which has the least amount of time before its Guarantee
Period expires.
-12-
V6021 F (4-94)
--------------------------------------------------------------------------------
WITHDRAWAL PROVISIONS (CONTINUED)
--------------------------------------------------------------------------------
WITHDRAWAL VALUE
The Withdrawal Value at any time will be: (1) the Contract
Value; less (2) any Premium Taxes due or paid by the
Company.
SYSTEMATIC
WITHDRAWALS
Systematic Withdrawals are automatic periodic distributions
from the Contract in substantially equal amounts prior to
the Annuity Payout Date. 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 payment type may be: (1) a percentage of Contract
Value; (2) a specified dollar amount; (3) all earnings in
the Contract; or (4) based upon the life expectancy of the
Owner or the Owner and a Beneficiary. The payment frequency
may be: (1) monthly; (2) quarterly; (3) semiannually; or
(4) annually. Systematic Withdrawals of Fixed Account
Contract Value must provide for payments over a period of
not less than 36 months. Systematic Withdrawals may be
stopped by the Owner upon proper written request Received
by the Company at least 30 days in advance. The Company
reserves the right to stop, modify or suspend Systematic
Withdrawals.
DATE OF
REQUEST
The Company will effect a Withdrawal of Separate Account
Contract Value on the basis of Accumulation Unit Value
determined at the end of the Valuation Period in which all
the required information is Received by the Company.
PAYMENT OF
WITHDRAWAL
BENEFITS
The Company reserves the right to suspend an Exchange 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 Exchange 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 Securities 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.
The Company further reserves the right to delay payment of
a Withdrawal from the Fixed Account for up to six months as
required by most states. The Company will notify you if
there will be a delay.
-13-
--------------------------------------------------------------------------------
DEATH BENEFIT PROVISIONS
--------------------------------------------------------------------------------
DEATH BENEFIT
If any Owner dies prior to the Annuity Payout Date, a Death
Benefit will be paid to the Designated Beneficiary when due
Proof of Death and instructions regarding payment are
Received by the Company. If an Owner is a Nonnatural
Person, then the Death Benefit will be paid in the event of
the death of the Annuitant or any joint Owner that is a
natural person prior to the Annuity Payout Date. Further,
if an Owner is a Nonnatural Person, the amount of the death
benefit is based on the age of the Annuitant or any joint
Owner that is a natural person on the Issue Date.
If the age of each Owner was 75 or younger on the Issue
Date, the Death Benefit will be the greatest of: (1) the
sum of all Purchase Payments, less any Premium Taxes due or
paid by the Company and less the sum of all partial
Withdrawals; (2) the Contract Value on the date due Proof
of Death and instructions regarding payment are Received by
the Company, less any Premium Taxes due or paid by the
Company; or (3) the Stepped-Up Death Benefit below.
The Stepped-Up Death Benefit is:
1. the largest Death Benefit on any Contract Anniversary
that is both an exact multiple of five and occurs prior
to the oldest Owner reaching age 76; plus
2. any Purchase Payments received since the applicable
fifth Contract Anniversary; less
3. any reductions caused by Withdrawals since the
applicable fifth Contract Anniversary; less
4. any Premium Taxes due or paid by the Company.
If the age of any Owner on the Issue Date was 76 or older,
the Death Benefit will be: (1) the Contract Value on the
date due Proof of Death and instructions regarding payment
are Received by the Company; less (2) any Premium Taxes due
or paid by the Company.
If a lump sum payment is requested, the payment will be
made in accordance with any laws and regulations that
govern the payment of Death Benefits.
The value of the Death Benefit is determined as of the date
that both Proof of Death and instructions regarding payment
are Received by the Company in good order.
PROOF OF
DEATH
Any of the following will serve as Proof of Death:
1. certified copy of the death certificate;
2. certified decree of a court of competent jurisdiction as
to the finding of death;
3. written statement by a medical doctor who attended the
deceased Owner; or
4. any proof accepted by the Company.
DISTRIBUTION
RULES
The entire Death Benefit with any interest shall be paid
within 5 years after the death of any Owner, except as
provided below. In the event that the Designated
Beneficiary elects an Annuity Option, the length of time
for the payment period may be longer than 5 years if: (1)
the Designated Beneficiary is a natural person; (2) the
Death Benefit is paid out under Annuity Options 1 through
7; (3) payments are made over a period that does not exceed
the life or life expectancy of the Designated Beneficiary;
and (4) Annuity Payments begin within one year of the death
of the Owner. If the deceased Owner's spouse is the sole
Designated Beneficiary, the spouse shall become the sole
Owner of the Contract. He or she may elect to: (1) keep the
Contract in force until the sooner of the spouse's death or
the Annuity Payout Date; or (2) receive the Death Benefit.
-14-
V6021 G (4-94)
--------------------------------------------------------------------------------
DEATH BENEFIT PROVISIONS (CONTINUED)
--------------------------------------------------------------------------------
DISTRIBUTION
RULES (cont'd)
If any Owner dies after the Annuity Payout Date, Annuity
Payments shall continue to be paid at least as rapidly as
under the method of payment being used as of the date of
the Owner's death.
If the Owner is a Nonnatural Person, the distribution rules
set forth above apply in the event of the death of, or a
change in, the Annuitant. This Contract is deemed to
incorporate any provision of Section 72(s) of the Internal
Revenue Code of 1986, as amended (the "Code"), or any
successor provision. This Contract is also deemed to
incorporate any other provision of the Code deemed
necessary by the Company, in its sole judgment, to qualify
this Contract as an annuity. The application of the
distribution rules will be made in accordance with Code
section 72(s), or any successor provision, as interpreted
by the Company in its sole judgment.
The foregoing distribution rules do not apply to a Contract
which is: (1) provided under a plan described in Code
section 401(a); (2) described in Code section 403(b); (3)
an individual retirement annuity or provided under an
individual retirement account or annuity; or (4) otherwise
exempt from the Code section 72(s) distribution rules.
--------------------------------------------------------------------------------
ANNUITY PAYMENT PROVISIONS
--------------------------------------------------------------------------------
ANNUITY PAYOUT
DATE
The Owner may choose the Annuity Payout Date at the time of
application. If no Annuity Payout Date is chosen, the
Company will use the later of: (1) the oldest Annuitant's
seventieth birthday; or (2) the tenth Contract Anniversary.
The Annuity Payout Date must be prior to the oldest
Annuitant's ninetieth birthday.
The Annuity Payout Date is the date the first payment will
be made to the Annuitant under any of the Annuity Options.
CHANGE OF ANNUITY
PAYOUT DATE
The Owner may change the Annuity Payout Date. A request for
the change must be made in writing. The written request
must be Received by the Company at least 30 days prior to
the new Annuity Payout Date as well as 30 days prior to the
previous Annuity Payout Date.
ANNUITY PAYOUT
AMOUNT
The Annuity Payout Amount is applied to one or more of the
Annuity Options listed on pages 18 and 19. The Annuity
Payout Amount is: (1) the Contract Value on the Annuity
Payout Date; less (2) any Premium Taxes due or paid by the
Company. Unless otherwise directed by the Owner, Annuity
Payout Amount derived from Fixed Account Contract Value
will be applied to purchase a Fixed Annuity Option; that
derived from Separate Account Contract Value will be
applied to purchase a Variable Annuity Option.
-15-
--------------------------------------------------------------------------------
ANNUITY PAYMENT PROVISIONS (CONTINUED)
--------------------------------------------------------------------------------
ANNUITY TABLES
The Annuity Tables show the guaranteed minimum amount of
monthly Annuity Payment that applies to the first payment
for Variable Annuity Payments and to each payment for Fixed
Annuity Payments for each $1,000 of Annuity Payout Amount
for each of Annuity Options 1 through 4. The amount of each
Annuity Payment for Annuity Options 1 through 4 will depend
on the Annuitant's sex and age on the Annuity Payout Date.
The Annuity Tables state values for the exact ages shown.
The values will be interpolated based on the Annuitant's
exact age on the Annuity Payout Date. On request the
Company will furnish the amount of monthly Annuity Payment
per $1,000 applied for any ages not shown.
The Company bases the Tables for Annuity Options 1 through
4 on: (1) the 1983 Table "A" Mortality Table projected for
mortality improvement for 45 years using Projection Scale
G; and (2) an interest rate of 3 1/2% a year.
For Annuity Options 5 through 7, age and sex are not
considered. Annuity Payments for these options are computed
without reference to the Annuity Tables.
ANNUITY PAYMENTS
The Annuity Option is shown on page 3. The Owner may choose
any form of Annuity Option that is allowed by the Company.
The Owner may choose an Annuity Option by written request.
This request must be Received by the Company at least 30
days prior to the Annuity Payout Date. Several Annuity
Options are listed on pages 18 and 19. No Annuity Option
can be selected that requires the Company to make periodic
payments of less than $100.00. If no Annuity Option is
chosen prior to the Annuity Payout Date, the Company will
use Life with 10-Year Fixed Period Option. Each Annuity
Option allows for making Annuity Payments annually,
semiannually, quarterly or monthly.
CHANGE OF ANNUITY
OPTION
Prior to the Annuity Payout Date, the Owner may change the
Annuity Option chosen. The Owner must request the change in
writing. This request must be Received by the Company at
least 30 days prior to the Annuity Payout Date.
FIXED ANNUITY
PAYMENTS
With respect to Fixed Annuity Payments, the amounts shown
on the Tables are the guaranteed minimum for each Annuity
Payment for Annuity Options 1 through 4.
VARIABLE ANNUITY
PAYMENTS
With respect to Variable Annuity Payments, the amounts
shown on the Tables are the first Annuity Payment, based on
the assumed interest rate of 3 1/2% for Annuity Options 1
through 4. The amount of each Annuity Payment after the
first for these options is computed by means of Annuity
Units.
ANNUITY UNITS
The number of Annuity Units is found by dividing the first
Annuity Payment by the Annuity Unit Value for the selected
Subaccount on the Annuity Payout Date. The number of
Annuity Units for the Subaccount then remains constant,
unless an Exchange of Annuity Units is made. After the
first Annuity Payment, the dollar amount of each subsequent
Annuity Payment is equal to the number of Annuity Units
times the Annuity Unit Value for the Subaccount on the due
date of the Annuity Payment.
-16-
V6021 H (4-94)
--------------------------------------------------------------------------------
ANNUITY PAYMENT PROVISIONS (CONTINUED)
--------------------------------------------------------------------------------
ANNUITY UNITS (Cont'd)
The Annuity Unit Value for each Subaccount was first set at
$1.00. The Annuity Unit Value for any subsequent Valuation
Date is equal to (a) times (b) times (c), where:
(a) is the Annuity Unit Value on the immediately preceding
Valuation Date;
(b) is the Net Investment Factor for the day;
(c) is a factor used to adjust for an assumed interest rate
of 3 1/2% per year used to determine the Annuity
Payment amounts. The assumed interest rate is reflected
in the Annuity Tables.
NET INVESTMENT
FACTOR
The Net Investment Factor for any Subaccount at the end of
any Valuation Period is found 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 at 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
c. a per share charge or credit for any taxes reserved
for, which the Company deems to have resulted from
the operation of the Subaccount.
2. is the net asset value per share of the Subaccount's
underlying mutual fund as found at the end of the prior
Valuation Period.
3. is a factor representing the Mortality and Expense Risk
Charge 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 or charged against
the Subaccount without regard to the gains or losses in the
Company or other Subaccounts.
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.
-17-
--------------------------------------------------------------------------------
ANNUITY PAYMENT PROVISIONS (CONTINUED)
--------------------------------------------------------------------------------
ANNUITY OPTIONS
OPTION 1
LIFE OPTION: This option provides payments for the life of
the Annuitant. Table A shows some of the guaranteed rates
for this option.
OPTION 2
LIFE WITH FIXED PERIOD OPTION: This option provides
payments for the life of the Annuitant. A fixed period of
5, 10, 15 or 20 years may be chosen. Payments will be made
to the end of this period 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, the
remaining payments will be made to the Designated
Beneficiary. Table A shows some of the guaranteed rates for
this option.
OPTION 3
LIFE WITH INSTALLMENT OR UNIT REFUND OPTION: This option
provides payments for the life of the Annuitant, with a
period certain determined by dividing the Annuity Payout
Amount by the amount of the first payment. A fixed number
of payments will be made even if the Annuitant dies. If the
Annuitant dies before receiving the fixed number of
payments, any remaining payments will be made to the
Designated Beneficiary. Table A shows some of the
guaranteed rates for this option.
OPTION 4
JOINT AND LAST SURVIVOR OPTION: This option provides
payments for the life of the Annuitant and Joint Annuitant.
Payments will be made as long as either is living. Table B
shows some of the guaranteed rates for this option.
OPTION 5
FIXED PERIOD OPTION: This option provides payments for a
fixed number of years between 5 and 20. If the Contract
Value is held in the Fixed Account, then the amount of the
payments will vary as a result of the interest rate (as
adjusted periodically) credited on the Fixed Account. This
rate is guaranteed to be no less than the Guaranteed Rate
shown on page 3. If the Contract Value is held in the
Separate Account, then 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 6
FIXED PAYMENT OPTION: This option provides a fixed payment
amount. This amount is paid until the amount applied,
including daily interest adjustments, is paid. If the
Contract Value is held in the Fixed Account, then the
number of payments will vary as a result of the interest
rate (as adjusted periodically) credited on the Fixed
Account. This rate is guaranteed to be no less than the
Guaranteed Rate shown on page 3. If the Contract Value is
held in the Separate Account, then 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.
-18-
V6021 I (4-94)
--------------------------------------------------------------------------------
ANNUITY PAYMENT PROVISIONS (CONTINUED)
--------------------------------------------------------------------------------
ANNUITY OPTIONS (cont'd)
OPTION 7 AGE RECALCULATION OPTION: This option provides 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. If the Contract
Value is held in the Fixed Account, then the number of
payments will vary as a result of the interest rate (as
adjusted periodically) credited on the Fixed Account. This
rate is guaranteed to be not less than the Guaranteed Rate
shown on page 3. If the Contract Value is held in the
Separate Account, then 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.
-19-
ANNUITY TABLES
--------------------------------------------------------------------------------
Table A
Guaranteed Minimum Amount
of Monthly Payment for
each $1,000 applied
SINGLE LIFE ANNUITY
--------------------------------------------------------------------------------
AGE OF MONTHLY PAYMENTS CERTAIN INSTALLMENT
PAYEE 0 60 120 180 240 REFUND
--------------------------------------------------------------------------------
MALE
55 4.45 4.44 4.41 4.37 4.30 4.31
56 4.52 4.51 4.48 4.43 4.36 4.37
57 4.60 4.59 4.56 4.50 4.42 4.44
58 4.68 4.67 4.64 4.57 4.47 4.51
59 4.77 4.76 4.72 4.65 4.53 4.58
60 4.87 4.85 4.81 4.72 4.60 4.65
61 4.97 4.95 4.90 4.80 4.66 4.73
62 5.07 5.05 5.00 4.89 4.72 4.82
63 5.19 5.17 5.10 4.97 4.79 4.90
64 5.31 5.29 5.20 5.06 4.85 5.00
65 5.44 5.41 5.32 5.15 4.92 5.09
66 5.58 5.55 5.44 5.24 4.98 5.20
67 5.73 5.69 5.56 5.34 5.05 5.30
68 5.89 5.84 5.69 5.44 5.11 5.41
69 6.06 6.00 5.82 5.54 5.17 5.53
70 6.24 6.17 5.97 5.64 5.23 5.66
FEMALE
55 4.11 4.11 4.10 4.08 4.05 4.05
56 4.17 4.17 4.16 4.14 4.10 4.10
57 4.23 4.23 4.22 4.19 4.15 4.15
58 4.30 4.29 4.28 4.25 4.21 4.21
59 4.37 4.36 4.35 4.32 4.27 4.27
60 4.44 4.44 4.42 4.38 4.33 4.34
61 4.52 4.51 4.49 4.45 4.39 4.40
62 4.60 4.59 4.57 4.52 4.45 4.47
63 4.69 4.68 4.65 4.60 4.52 4.55
64 4.78 4.77 4.74 4.68 4.58 4.63
65 4.88 4.87 4.84 4.76 4.65 4.71
66 4.99 4.98 4.93 4.85 4.72 4.80
67 5.10 5.09 5.04 4.94 4.79 4.89
68 5.23 5.21 5.15 5.04 4.86 4.99
69 5.36 5.34 5.27 5.14 4.94 5.09
70 5.50 5.48 5.39 5.24 5.01 5.20
RATES NOT SHOWN WILL BE PROVIDED ON REQUEST. THE GUARANTEED MINIMUM MONTHLY
PAYMENTS SHOWN APPLY TO THE INITIAL PAYMENT FOR VARIABLE ANNUITY PAYMENTS AND TO
EACH PAYMENT FOR FIXED ANNUITY PAYMENTS.
--------------------------------------------------------------------------------
JOINT & LAST |
SURVIVOR ANNUITY |
TABLE B - MONTHLY FEMALE | MALE AGE
INSTALLEMNTS AGE | 55 60 62 65 70
--------------------------------|-----------------------------------------------
Until last Death 55 | 3.85 3.93 3.95 3.99 4.03
of Two Payees 60 | 3.98 4.10 4.15 4.21 4.29
per $1,000 of 62 | 4.03 4.18 4.23 4.30 4.40
benefit amount 65 | 4.11 4.28 4.35 4.45 4.59
70 | 4.21 4.45 4.54 4.69 4.92
ANNUAL, SEMIANNUAL, OR QUARTERLY PAYMENTS CAN BE DETERMINED FROM TABLE A OR B BY
MULTIPLYING THE MONTHLY PAYMENTS BY 11.812854, 5.9572233, AND 2.9914201,
RESPECTIVELY.
-20-
V6021 J (4-94)
A BRIEF DESCRIPTION OF THIS CONTRACT
This is a FLEXIBLE PREMIUM DEFERRED VARIABLE ANNUITY CONTRACT.
* Purchase Payments may be made until the earlier of the Annuity Payout Date
or termination of the Contract.
* A Death Benefit may be paid prior to the Annuity Payout Date according to
the Contract provisions.
* Annuity Payments begin on the Annuity Payout Date using the method as
specified in this Contract.
ALL PAYMENTS AND VALUES PROVIDED BY THIS CONTRACT, WHEN 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.)
[SBG LOGO]
SECURITY BENEFIT LIFE INSURANCE COMPANY
A Member of The Security Benefit Group of Companies
P.O. Box 750440, Topeka, KS 66675-0440
000 XX Xxxxxxxx Xxxxxx, Xxxxxx, XX 00000-0001
0-000-000-0000
0-000-000-0000 FOR CUSTOMER SERVICE
FLEXIBLE PREMIUM DEFERRED 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, HE OR SHE 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 ANY
PURCHASE PAYMENTS MADE AND ALLOCATED TO THE FIXED ACCOUNT AND 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 VARIABLE ANNUITY CONTRACT.
* Purchase Payments may be made until the earlier of the Annuity Payout Date
or termination of the Contract.
* A Death Benefit may be paid prior to the Annuity Payout Date according to
the Contract provisions.
* Annuity Payments begin on the Annuity Payout Date using the method specified
in this Contract.
ALL PAYMENTS AND VALUES PROVIDED BY THIS CONTRACT, WHEN 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.)
[SBG LOGO]
SECURITY BENEFIT LIFE INSURANCE COMPANY
A Member of The Security Benefit Group of Companies
P.O. Box 750440, Topeka, KS 66675-0440
000 XX Xxxxxxxx Xxxxxx, Xxxxxx, XX 00000-0001
0-000-000-0000
0-000-000-0000 FOR CUSTOMER SERVICE
Form V6021 (4-94)U
--------------------------------------------------------------------------------
TABLE OF CONTENTS
--------------------------------------------------------------------------------
PAGE
CONTRACT SPECIFICATIONS ............................................... 3
DEFINITIONS ........................................................... 4-6
GENERAL PROVISIONS .................................................... 7, 8
THE CONTRACT ....................................................... 7
COMPLIANCE ......................................................... 7
MISSTATEMENT OF AGE ............................................... 7
EVIDENCE OF SURVIVAL ............................................... 7
INCONTESTABILITY ................................................... 7
ASSIGNMENT ......................................................... 7
EXCHANGES .......................................................... 8
CLAIMS OF CREDITORS ................................................ 8
NONFORFEITURE VALUES ............................................... 8
PARTICIPATION ...................................................... 8
STATEMENTS ......................................................... 8
OWNERSHIP, ANNUITANT AND
BENEFICIARY PROVISIONS ................................................ 9
OWNERSHIP .......................................................... 9
JOINT OWNERSHIP .................................................... 9
ANNUITANT .......................................................... 9
PRIMARY AND SECONDARY BENEFICIARIES ................................ 9
OWNERSHIP AND BENEFICIARY CHANGES .................................. 9
PURCHASE PAYMENT PROVISIONS ........................................... 10
FLEXIBLE PURCHASE PAYMENTS ......................................... 10
PURCHASE PAYMENT LIMITATIONS ....................................... 10
PURCHASE PAYMENT ALLOCATION ........................................ 10
PLACE OF PAYMENT ................................................... 10
CONTRACT VALUE AND EXPENSE PROVISIONS ................................. 10-12
CONTRACT VALUE ..................................................... 10
FIXED ACCOUNT CONTRACT VALUE ....................................... 10
FIXED ACCOUNT INTEREST CREDITING ................................... 11
SEPARATE ACCOUNT CONTRACT VALUE .................................... 11
ACCUMULATION UNIT VALUE ............................................ 11
DETERMINING ACCUMULATION UNITS ..................................... 11
MORTALITY AND EXPENSE RISK CHARGE .................................. 12
PREMIUM TAX EXPENSE ................................................ 12
MUTUAL FUND EXPENSES ............................................... 12
WITHDRAWAL PROVISIONS ................................................. 12, 13
WITHDRAWALS ........................................................ 12
WITHDRAWAL VALUE ................................................... 13
SYSTEMATIC WITHDRAWALS ............................................. 13
DATE OF REQUEST .................................................... 13
PAYMENT OF WITHDRAWAL BENEFITS ..................................... 13
DEATH BENEFIT PROVISIONS .............................................. 14, 15
DEATH BENEFIT ...................................................... 14
PROOF OF DEATH ..................................................... 14
DISTRIBUTION RULES ................................................. 14, 15
ANNUITY PAYMENT PROVISIONS ............................................ 15-19
ANNUITY PAYOUT DATE ................................................ 15
CHANGE OF ANNUITY PAYOUT DATE ...................................... 15
ANNUITY PAYOUT AMOUNT .............................................. 15
ANNUITY TABLES ..................................................... 16
ANNUITY PAYMENTS ................................................... 16
CHANGE OF ANNUITY OPTION ........................................... 16
FIXED ANNUITY PAYMENTS ............................................. 16
VARIABLE ANNUITY PAYMENTS .......................................... 16
ANNUITY UNITS ...................................................... 16, 17
NET INVESTMENT FACTOR .............................................. 17
ALTERNATE ANNUITY OPTION RATES ..................................... 17
ANNUITY OPTIONS .................................................... 18, 19
ANNUITY TABLES ........................................................ 20
AMENDMENTS OR ENDORSEMENTS, IF ANY
-2-
--------------------------------------------------------------------------------
DEFINITIONS (CONTINUED)
--------------------------------------------------------------------------------
SEPARATE ACCOUNT
The X. Xxxx Price Variable Annuity 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 are
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.
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.
-6-
V6021 C (4-94)U
--------------------------------------------------------------------------------
GENERAL PROVISIONS
--------------------------------------------------------------------------------
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 or the
Annuitant 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.
MISSTATEMENT OF AGE
If the age of the Annuitant has been misstated, payments
shall be adjusted, when allowed by law, to the amount which
would have been provided for the correct age. Proof of the
age of an Annuitant may be required at any time, in a form
suitable to the Company. If payments have already commenced
and the misstatement has caused an underpayment, the full
amount due will be paid with the next scheduled payment. If
the misstatement has caused an overpayment, the amount due
will be deducted from one or more future payments.
EVIDENCE OF SURVIVAL
When any payments under this Contract depend on the payee
being alive on a given date, proof that the payee is living
may be required by the Company. Such proof must be in a
form accepted by the Company, and may be required prior to
making the payments.
INCONTESTABILITY
This Contract will not be contested after it has been in
force for two years from the Issue Date during the life of
the Owner.
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, Annuitant and Beneficiary are subject to the
Assignment. Any claim is subject to proof of interest of
the assignee.
-7-
--------------------------------------------------------------------------------
ANNUITY PAYMENT PROVISIONS (CONTINUED)
--------------------------------------------------------------------------------
ANNUITY TABLES
The Annuity Tables show the guaranteed minimum amount of
monthly Annuity Payment that applies to the first payment
for Variable Annuity Payments and to each payment for Fixed
Annuity Payments for each $1,000 of Annuity Payout Amount
for each of Annuity Options 1 through 4. The amount of each
Annuity Payment for Annuity Options 1 through 4 will depend
on the Annuitant's age on the Annuity Payout Date. The
Annuity Tables state values for the exact ages shown. The
values will be interpolated based on the Annuitant's exact
age on the Annuity Payout Date. On request the Company will
furnish the amount of monthly Annuity Payment per $1,000
applied for any ages not shown.
The Company bases the Tables for Annuity Options 1 through
4 on: (1) the 1983 Table "A" Mortality Table projected for
mortality improvement for 45 years using Projection Scale
G; and (2) an interest rate of 3 1/2% a year.
For Annuity Options 5 through 7, age is not considered.
Annuity Payments for these options are computed without
reference to the Annuity Tables.
ANNUITY PAYMENTS
The Annuity Option is shown on page 3. The Owner may choose
any form of Annuity Option that is allowed by the Company.
The Owner may choose an Annuity Option by written request.
This request must be Received by the Company at least 30
days prior to the Annuity Payout Date. Several Annuity
Options are listed on pages 18 and 19. No Annuity Option
can be selected that requires the Company to make periodic
payments of less than $100.00. If no Annuity Option is
chosen prior to the Annuity Payout Date, the Company will
use Life with 10-Year Fixed Period Option. Each Annuity
Option allows for making Annuity Payments annually,
semiannually, quarterly or monthly.
CHANGE OF ANNUITY
OPTION
Prior to the Annuity Payout Date, the Owner may change the
Annuity Option chosen. The Owner must request the change in
writing. This request must be Received by the Company at
least 30 days prior to the Annuity Payout Date.
FIXED ANNUITY
PAYMENTS
With respect to Fixed Annuity Payments, the amounts shown
on the Tables are the guaranteed minimum for each Annuity
Payment for Annuity Options 1 through 4.
VARIABLE ANNUITY
PAYMENTS
With respect to Variable Annuity Payments, the amounts
shown on the Tables are the first Annuity Payment, based on
the assumed interest rate of 3 1/2% for Annuity Options 1
through 4. The amount of each Annuity Payment after the
first for these options is computed by means of Annuity
Units.
ANNUITY UNITS
The number of Annuity Units is found by dividing the first
Annuity Payment by the Annuity Unit Value for the selected
Subaccount on the Annuity Payout Date. The number of
Annuity Units for the Subaccount then remains constant,
unless an Exchange of Annuity Units is made. After the
first Annuity Payment, the dollar amount of each subsequent
Annuity Payment is equal to the number of Annuity Units
times the Annuity Unit Value for the Subaccount on the due
date of the Annuity Payment.
-16-
V6021 H (4-94)U
--------------------------------------------------------------------------------
ANNUITY PAYMENT PROVISIONS (CONTINUED)
--------------------------------------------------------------------------------
ANNUITY UNITS (Cont'd)
The Annuity Unit Value for each Subaccount was first set at
$1.00. The Annuity Unit Value for any subsequent Valuation
Date is equal to (a) times (b) times (c), where:
(a) is the Annuity Unit Value on the immediately preceding
Valuation Date;
(b) is the Net Investment Factor for the day;
(c) is a factor used to adjust for an assumed interest rate
of 3 1/2% per year used to determine the Annuity
Payment amounts. The assumed interest rate is reflected
in the Annuity Tables.
NET INVESTMENT
FACTOR
The Net Investment Factor for any Subaccount at the end of
any Valuation Period is found 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 at 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
c. a per share charge or credit for any taxes reserved
for, which the Company deems to have resulted from
the operation of the Subaccount.
2. is the net asset value per share of the Subaccount's
underlying mutual fund as found at the end of the prior
Valuation Period.
3. is a factor representing the Mortality and Expense Risk
Charge 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 or charged against
the Subaccount without regard to the gains or losses in the
Company or other Subaccounts.
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.
-17-
ANNUITY TABLES
--------------------------------------------------------------------------------
Table A
Guaranteed Minimum Amount
of Monthly Payment for
each $1,000 applied
SINGLE LIFE ANNUITY
--------------------------------------------------------------------------------
AGE OF MONTHLY PAYMENTS CERTAIN INSTALLMENT
PAYEE 0 60 120 180 240 REFUND
--------------------------------------------------------------------------------
UNISEX
55 4.11 4.11 4.10 4.08 4.05 4.05
56 4.17 4.17 4.16 4.14 4.10 4.10
57 4.23 4.23 4.22 4.19 4.15 4.15
58 4.30 4.29 4.28 4.25 4.21 4.21
59 4.37 4.36 4.35 4.32 4.27 4.27
60 4.44 4.44 4.42 4.38 4.33 4.34
61 4.52 4.51 4.49 4.45 4.39 4.40
62 4.60 4.59 4.57 4.52 4.45 4.47
63 4.69 4.68 4.65 4.60 4.52 4.55
64 4.78 4.77 4.74 4.68 4.58 4.63
65 4.88 4.87 4.84 4.76 4.65 4.71
66 4.99 4.98 4.93 4.85 4.72 4.80
67 5.10 5.09 5.04 4.94 4.79 4.89
68 5.23 5.21 5.15 5.04 4.86 4.99
69 5.36 5.34 5.27 5.14 4.94 5.09
70 5.50 5.48 5.39 5.24 5.01 5.20
RATES NOT SHOWN WILL BE PROVIDED ON REQUEST. THE GUARANTEED MINIMUM MONTHLY
PAYMENTS SHOWN APPLY TO THE INITIAL PAYMENT FOR VARIABLE ANNUITY PAYMENTS AND TO
EACH PAYMENT FOR FIXED ANNUITY PAYMENTS.
--------------------------------------------------------------------------------
JOINT & LAST |
SURVIVOR ANNUITY |
TABLE B - MONTHLY | AGE
INSTALLEMNTS AGE | 55 60 62 65 70
--------------------------------|-----------------------------------------------
Until last Death 55 | 3.77 3.87 3.90 3.95 4.00
of Two Payees 60 | 3.87 4.01 4.06 4.13 4.24
per $1,000 of 62 | 3.90 4.06 4.12 4.21 4.34
benefit amount 65 | 3.95 4.13 4.21 4.32 4.49
70 | 4.00 4.24 4.34 4.49 4.75
ANNUAL, SEMIANNUAL, OR QUARTERLY PAYMENTS CAN BE DETERMINED FROM TABLE A OR B BY
MULTIPLYING THE MONTHLY PAYMENTS BY 11.812854, 5.9572233, AND 2.9914201,
RESPECTIVELY.
-20-
V6021 J (4-94)U
A BRIEF DESCRIPTION OF THIS CONTRACT
This is a FLEXIBLE PREMIUM DEFERRED VARIABLE ANNUITY CONTRACT.
* Purchase Payments may be made until the earlier of the Annuity Payout Date
or termination of the Contract.
* A Death Benefit may be paid prior to the Annuity Payout Date according to
the Contract provisions.
* Annuity Payments begin on the Annuity Payout Date using the method as
specified in this Contract.
ALL PAYMENTS AND VALUES PROVIDED BY THIS CONTRACT, WHEN 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.)
[SBG LOGO]
SECURITY BENEFIT LIFE INSURANCE COMPANY
A Member of The Security Benefit Group of Companies
P.O. Box 750440, Topeka, KS 66675-0440
000 XX Xxxxxxxx Xxxxxx, Xxxxxx, XX 00000-0001
0-000-000-0000
0-000-000-0000 FOR CUSTOMER SERVICE
00-00000-00
BP 6021D4
ENDORSEMENT
--------------------------------------------------------------------------------
ANNUITY LOAN PROVISIONS
--------------------------------------------------------------------------------
LOAN ENDORSEMENT
This endorsement is attached to and made part of your Contract as of
its Issue Date or, if later, the date shown below. Notwithstanding any
other provision of the Contract to the contrary, the following
provisions shall apply.
GENERAL PROVISIONS
Prior to the start of retirement annuity installments (the "maturity
date"), the Company shall lend an amount applied for to the Owner
subject to the limitations, interest rates, and repayment procedures
set forth herein and in the loan agreement between the Owner and the
Company. Any loan applied for must be for a minimum of $1,000. Only two
loans shall be permitted per contract year. All loans must be repaid as
specified herein before the maturity date. Except for loans that
qualify under the Code for a longer repayment period, as determined by
the Company, all loans must be repaid within five years of approval.
All loan repayments must be scheduled to be paid in equal amounts on
the same day of each month or quarter. For monthly repayments the first
scheduled repayment may not be later than 30 days after the date of
approval of the loan application by the Company. For quarterly
repayments the first scheduled repayment may not be later than 90 days
after the date of approval of the loan application by the Company.
Before a loan is permitted a written application and loan agreement on
a form acceptable to the Company must be Received by the Company. The
Company may postpone final approval or disapproval of a loan for up to
six months after the application for a loan is received.
TAX CONSEQUENCES
The Company makes no representations or guarantees as to the tax
consequences of a loan to the Owner. The Owner should consult his or
her tax counsel for specific advice.
MAXIMUM LOAN AMOUNT
The maximum loan amount for all contracts combined, is generally equal
to the lesser of: (1) $50,000 reduced by the excess of: (a) the highest
outstanding loan balance within the preceding 12-month period ending on
the day before the date the loan is made; over (b) the outstanding loan
balance on the date the loan is made; or (2) 50% of your account value
or $10,000, whichever is greater. However, in no case can you borrow
more than your account value.
LOAN ACCOUNT, AND INTEREST EARNED ON LOAN ACCOUNT
When your loan is approved, the Company will transfer to an account
within the Fixed Amount, referred to as the Loan Account, an amount
equal to the loan amount. Amounts allocated to the Loan Account earn
the Minimum Guaranteed Interest Rate specified in the Contract.
LOAN INTEREST RATE
The Owner must pay interest on the outstanding loan balance. Interest
shall accrue on the loan balance from the effective date of any loan.
The loan interest rate shall be the Minimum guaranteed Interest Rate
plus 2.5%
LOAN PAYMENTS
Each loan payment must be labeled as such. If not labeled as a loan
payment, amounts received by the Company will be treated as Purchase
Payments. Each loan payment will reduce the Loan Account by the amount
the payment reduces the outstanding loan balance. Amounts which are no
longer needed in the Loan Account will be transferred to the Fixed
Account and/or the Subaccounts in accordance with current allocation
instructions for purchase payments. The loan may be repaid in full at
any time, in which event, the Loan Account shall be reduced to $0.
V 6846 (R1-97) NON-ERISA
--------------------------------------------------------------------------------
ANNUITY LOAN PROVISIONS (Continued)
--------------------------------------------------------------------------------
FAILURE TO MAKE PAYMENTS
If any required loan payment is not paid, within 30 days of the due
date for loans with a monthly repayment schedule or within 90 days of
the due date for loans with a quarterly repayment schedule, the TOTAL
OUTSTANDING LOAN BALANCE will be deemed to be in default. The entire
loan balance, with any accrued interest, will be reported to the
Internal Revenue Service ("IRS") on Form 1099-R for the year the
default occurred. Once a loan has gone into default, regularly
scheduled payments will not be accepted. However, the principal plus
accrued interest may be paid in full at any time. Notwithstanding any
other provision of the Contract or this endorsement to the contrary,
no new loans will be allowed when there is a loan in default.
Interest will continue to accrue on a loan in default. You may pay
accrued interest each year when notified by SBL. If such interest is
not paid by December 31st of each year, it will be added to the
outstanding balance of the loan and will be reported to the IRS on Form
1099-R. Account value equal to the amount of the accrued interest will
be transferred to the Loan Account. If a loan continues to be in
default when you attain age 59 1/2, the total outstanding balance will
be deducted from your account value. The Contract will be automatically
terminated if the outstanding loan balance on a loan in default equals
or exceeds the amount for which the Contract may be surrendered. The
proceeds from the Contract will be used to repay the debt.
WITHDRAWAL VALUE, ANNUITY PAYOUT AMOUNT, AND DEATH BENEFIT
If the Contract is surrendered, or if a death benefit becomes payable,
the amount otherwise receivable will be reduced by the amount of the
outstanding loan, plus any accrued interest. In addition, no partial
withdrawal request will be processed which would result in the
withdrawal of account value from the Loan Account.
SECURITY BENEFIT LIFE INSURANCE COMPANY
XXXXX X. XXXXX
Secretary
----------------------------
Endorsement Effective Date
(If Other Than Issue Date)
ENDORSEMENT
--------------------------------------------------------------------------------
ANNUITY LOAN PROVISIONS
--------------------------------------------------------------------------------
LOAN ENDORSEMENT
This endorsement is attached to and made a part of your
Contract as of its Issue Date or, if later, the date shown
below. Notwithstanding any other provision of the Contract
to the contrary, the following provisions shall apply.
GENERAL PROVISIONS
Prior to the Annuity Payout Date, the Company shall lend an
amount applied for to the Owner subject to the limitations,
interest rates, and repayment procedures set forth herein
and in the loan agreement between the Owner and the
Company. Any loan applied for must be for a minimum of
$1,000. Only two loans shall be permitted per Contract
Year. All loans must be repaid as specified herein before
the Annuity Payout Date. The Annuity Payout Date may not be
changed so that it would occur prior to the time that any
outstanding loan balance is scheduled to be repaid in full.
Except for loans that qualify under the Code for a longer
repayment period, as determined by the Company, all loans
must be repaid within five years of approval. All loan
repayments must be scheduled to be paid in equal amounts on
the same day of each month or quarter. For monthly
repayments the first scheduled repayment may not be later
than 30 days after the date of approval of the loan
application by the Company. For quarterly repayments the
first scheduled repayment may not be later than 90 days
after the date of approval of the loan application by the
Company. Before a loan is permitted a written application
and loan agreement on a form acceptable to the Company must
be Received by the Company. The Company may postpone final
approval or disapproval of a loan for up to six months
after the application for a loan is received.
TAX CONSEQUENCES
The Company makes no representations or guarantees as to
the tax consequences of a loan to the Owner. The Owner
should consult his or her tax counsel for specific advice.
MAXIMUM LOAN
AMOUNT
For Contracts with Contract Value of $20,000 or less, the
maximum loan that may be taken is the amount that produces
a loan balance immediately after the loan that is the
lesser of $10,000 or 75% of the Contract Value. For
Contracts with Contract Value over $20,000 the maximum loan
that may be taken is the amount that produces a loan
balance immediately after the loan that is the lesser of:
(1) $50,000 reduced by the excess of (a) the highest
outstanding loan balance during the preceding 12 month
period ending on the day before the date the loan is made
over (b) the outstanding loan balance on the date the loan
is made; or (2) 50% of the Contract Value. The aggregate of
all loans may not exceed the limitations set forth above.
LOAN ACCOUNT, AND
INTEREST EARNED ON
LOAN ACCOUNT
When your loan is approved, the Company will transfer
Contract Value from the Subaccounts or allocate Fixed
Account Contract Value to an account called the Loan
Account in an amount equal to the loan amount. Any such
transfer shall be allocated proportionately to the Owner's
Contract Value in the Subaccounts and the Fixed Account,
unless otherwise directed by the Owner. The Loan Account is
part of the Fixed Account and amounts allocated to the Loan
Account earn the Minimum Guaranteed Interest Rate specified
in the Contract.
LOAN INTEREST RATE
The Owner must pay interest on the outstanding loan
balance. Interest shall accrue on the loan balance from the
effective date of any loan. The loan interest rate shall be
the Minimum Guaranteed Interest Rate plus 1.55%.
V6843 (4-94)
--------------------------------------------------------------------------------
ANNUITY LOAN PROVISIONS (CONTINUED)
--------------------------------------------------------------------------------
LOAN PAYMENTS
Each loan payment must be labeled as such. If not labeled
as a loan payment, amounts received by the Company will
treated as Purchase Payments. Loan payments will be applied
first to accrued interest and then to the principal amount
of the outstanding loan balance. Upon receipt of a loan
payment, we will transfer Contract Value from the Loan
Account to the Fixed Account and/or the Subaccounts
according to the Owner's current allocation instructions
with respect to Purchase Payments. The amount of Contract
Value transferred from the Loan Account shall be equal to
the amount by which the payment reduces the outstanding
principal loan balance, plus the amount of accrued interest
credited on the Loan Account at the Minimum Guaranteed
Interest Rate as of the date of the payment. The loan may
be repaid in full at any time, in which event, the Loan
Account shall be reduced to $0.
FAILURE TO MAKE
PAYMENTS
If a loan payment is not made when due, the loan payment
may be treated as a taxable distribution and may be subject
to a tax penalty for early withdrawal. If a loan payment is
not made as specified and scheduled herein and in the loan
agreement, the Company shall withdraw the amount of
Contract Value necessary to make the payment, including
interest accrued thereon. The amount withdrawn will be
treated as a loan payment as described above. Any such
withdrawal shall be allocated proportionately to the
Owner's Contract Value in the Subaccounts and the Fixed
Account. Withdrawals from Fixed Account Contract Value to
make a loan payment will be made in the order prescribed
under "Withdrawal Provisions" in the Contract. In the event
that the amount of a loan repayment equals or exceeds the
Owner's Contract Value less the amount in the Loan Account
at any time, the full amount of the outstanding loan
balance, including accrued interest, shall become due and
payable on the next scheduled repayment date.
WITHDRAWAL VALUE,
ANNUITY PAYOUT
AMOUNT, AND
DEATH BENEFIT
Before calculating the Withdrawal Value, the Annuity Payout
Amount or the Death Benefit under the Contract, the Company
shall withdraw that amount of Contract Value necessary to
reduce the outstanding loan balance to $0. As a result, the
Contract Value shall be reduced by the amount of the
withdrawal. The Contract Value remaining after the
withdrawal shall be used to calculate the Withdrawal Value,
Annuity Payout Amount or Death Benefit as set forth in the
Contract.
SECURITY BENEFIT LIFE INSURANCE COMPANY
XXXXX X. XXXXX
Secretary
___________________________________________
Endorsement Effective Date
(If Other Than Issue Date)
ENDORSEMENT
--------------------------------------------------------------------------------
SIMPLE INDIVIDUAL RETIREMENT ANNUITY PROVISIONS
--------------------------------------------------------------------------------
SIMPLE INDIVIDUAL RETIREMENT ANNUITY ENDORSEMENT
This Contract is established as a Savings Incentive Match Plan for
Employees of Small Employers Individual Retirement Annuity ("SIMPLE
IRA") as defined in Section 408 of the Internal Revenue Code of 1986,
as amended (the "Code") or any successor provision pursuant to the
Owner's request in the Application. Accordingly, this endorsement is
attached to and made part of the Contract as of its Issue Date or, if
later, the date shown below. Notwithstanding any other provisions of
the Contract to the contrary, the following provisions shall apply.
RESTRICTIONS ON SIMPLE INDIVIDUAL RETIREMENT ANNUITY
To ensure treatment as a SIMPLE IRA, this Contract will be subject to
the applicable requirements of Code Section 408, which are briefly
summarized below:
1. The Contract is established for the exclusive benefit of the Owner
or his or her beneficiaries. The Owner shall be the Annuitant.
2. The Contract shall be nontransferable and the entire interest of
the Owner in the Contract is nonforfeitable.
3. Notwithstanding any provision of the Contract to the contrary, the
distribution of the Owner's interest shall be made in accordance
with the minimum distribution requirements of Section 401(a)(9) of
the Internal Revenue Code and the regulations thereunder,
including the incidental death benefit provisions of Section
1.401(a)(9)-2 of the proposed regulations, all of which are herein
incorporated by reference.
The Owner's entire interest in the Contract must be distributed,
or begin to be distributed, by the Owner's required beginning
date, which is the April 1 following the calendar year in which
the Owner reaches age 70 1/2. For each succeeding year, a
distribution must be made on or before December 31. By the
required beginning date, the Owner may elect to have the balance
in the account distributed in one of the following forms:
1) A single lump sum payment;
2) Equal or substantially equal monthly, quarterly, or annual
payments over the life of the Owner or over the joint and
last survivor lives of the Owner and his or her Designated
Beneficiary; or
3) Equal or substantially equal annual payments over a specified
period that may not be longer than the Owner's life
expectancy or the joint and last survivor life expectancy of
the Owner and his or her Designated Beneficiary.
An Annuity Option may not be elected with a Fixed Period that will
guarantee Annuity Payments beyond the life expectancy of the
Annuitant and Beneficiary and Annuity Payments must be made at
least annually and in equal amounts.
4. If the Owner dies before his or her entire interest is
distributed, the entire remaining interest will be distributed as
follows:
a. If the Owner dies on or after distributions have begun under
Section 3, the entire remaining interest must be distributed
at least as rapidly as provided under Section 3.
4453C-5S (2-97)
--------------------------------------------------------------------------------
SIMPLE INDIVIDUAL RETIREMENT ANNUITY PROVISIONS (Continued)
--------------------------------------------------------------------------------
RESTRICTIONS ON SIMPLE INDIVIDUAL RETIREMENT ANNUITY (continued)
b. If the Owner dies before distributions have begun under
Section 3, the entire remaining interest must be distributed
as elected by the Owner or, if the Owner has not so elected,
as elected by the Designated Beneficiary or Beneficiaries as
follows:
1) By December 31 of the year containing the fifth
anniversary of the Owner's death; or
2) In equal or substantially equal payments over the life
or life expectancy of the Designated Beneficiary or
Beneficiaries starting by December 31 of the year
following the year of the Owner's death. If, however,
the Designated Beneficiary is the Owner's surviving
spouse, then this Distribution is not required to begin
until December 31 of the later of (1) the calendar year
immediately following the calendar year in which the
Owner died; or (2) the calendar year in which the Owner
would have attained age 70 1/2.
5. An individual may satisfy the minimum distribution requirements
under Section 401(a)(9) of the Code by receiving a distribution
from one IRA that is equal to the amount required to satisfy the
minimum distribution requirements for two or more IRAs. For this
purpose, the Owner of two or more IRAs may use the "alternative
method" described in Notice 88-38, 1988-1 C.B. 524, to satisfy the
minimum distribution requirements described above.
6. Any refund of premiums (other than those attributable to excess
contributions) will be applied before the close of the calendar
year following the year of the refund toward the payment of future
premiums or the purchase of additional benefits.
7. The annual premium shall not exceed amounts allowable under the
terms of the SIMPLE plan described in Section 408(p) of the Code
or any successor provision in which the Owner is a participant.
8. Transfers and rollovers from other SIMPLE IRAs are permitted and
are excluded from the limit set forth in Section 7.
9. Notwithstanding any Contract provisions to the contrary, no amount
may be borrowed under the Contract and no portion may be used as
security for a loan.
10. Annuity Payments may not begin before the Annuitant attains the
age of 59 1/2 without incurring a penalty tax except in the
situations described in Section 72(t) of the Code.
SECURITY BENEFIT LIFE INSURANCE COMPANY
XXXXX X. XXXXX
Secretary
----------------------------
Endorsement Effective Date
(If Other Than Issue Date)
TAX-SHELTERED ANNUITY
ENDORSEMENT
TAX-SHELTERED ANNUITY ENDORSEMENT
This Contract is established as a Tax-Sheltered Annuity ("TSA") under
Section 403(b) of the Internal Revenue Code of 1986, as amended (the
"Code") or any successor provision, pursuant to the Owner's request in
the application. Accordingly, this Endorsement is attached to and made
part of the Contract as of its issue date or, if later, the date shown
below. If this is a group contract, references to the "Owner" and to
the "Contract" shall, respectively, be deemed to include the
Participant and the Participant's Certificate where appropriate.
TAX-SHELTERED ANNUITY PROVISIONS
To ensure treatment as a TSA, this Contract will be subject to the
requirements of Code Section 403(b), which are briefly summarized
below:
(a) Purchase Payments made on behalf of the Owner pursuant to a
salary reduction agreement when added to "elective deferral"
contributions under all other plans, contracts or arrangements
in which the Owner participates, may not exceed the annual
limitation on such contributions as provided in Code Section
401(a)(30).
(b) Purchase Payments applied to the Contract on behalf of the
Owner which exceed the applicable "exclusion allowance"
(within the meaning of Code Section 403(b)(2)) or the
limitations contained in Code Section 415 shall not be
excludable from gross income.
(c) Purchase Payments that exceed any of the foregoing limitations
may be returned, distributed or otherwise corrected using any
method permissible under the Code.
NONDISCRIMINATION REQUIREMENTS
(a) Except if this Contract is purchased by a "church" (within the
meaning of Code Section 3121(w)), the Plan must satisfy the
nondiscrimination requirements of Code Section 403(b)(12).
(b) Purchase Payments not made pursuant to a salary reduction
agreement will satisfy the nondiscrimination requirements of
Code Section 403(b)(12) provided they satisfy the requirements
of Code Section 401(a)(4) (nondiscrimination in
contributions), Code Section 401(a)(5) (permitted disparity),
Code Section 401(a)(17) (annual limit on compensation), Code
Section 401(m) (average contribution percentage test) and Code
Section 410(b) (coverage).
(c) Purchase Payments made pursuant to a salary reduction
agreement will satisfy the nondiscrimination requirements of
Code Section 403(b)(12) provided that every employee of the
Employer sponsoring the Plan, may elect to make Purchase
Payments of more than $200 pursuant to a salary reduction
agreement.
6832 A (R9-96) -1-
DISTRIBUTION RESTRICTIONS AND REQUIREMENTS
(a) Distributions attributable to Purchase Payments made pursuant
to a salary reduction agreement may be made only when the
Owner attains age 59 1/2, separates from service, dies,
becomes "disabled" (within the meaning of Code Section
403(b)(11)) or incurs a hardship. A distribution made due to a
hardship may not include income attributable to such Purchase
Payments.
(b) Distributions from this Contract must comply with the minimum
distribution and incidental death benefit requirements of Code
Section 403(b)(10). Accordingly, an Owner's entire interest
under the Contract generally must be distributed (or begin to
be distributed) by April 1 of the calendar year following the
later of (i) the calendar year in which the Owner attains age
70 1/2, or (ii) the calendar year in which the Owner retires
(the "Required Beginning Date").
Distributions commencing not later than the Required Beginning
Date may be made over the life of the Owner or over the lives
of the Owner and his or her Designated Beneficiary (or over a
period not extending beyond the life expectancy of the Owner
or the life expectancy of the Owner and his or her Designated
Beneficiary).
(c) If the Owner dies before distribution of his or her interest
in the Contract has begun in accordance with paragraph (b)
above, the Owner's entire interest must be distributed within
five years, unless: (i) such interest is distributed to a
Designated Beneficiary over his or her life (or over a period
not extending beyond such Designated Beneficiary's life
expectancy); and (ii) such distribution begins not later than
one year after the Owner's death. If the Designated
Beneficiary is the Owner's surviving spouse, the date on which
the distributions are required to begin shall not be earlier
than the date on which the Owner would have attained age 70
1/2.
(d) If the Owner dies after distribution of his or her interest in
this Contract has begun in accordance with paragraph (b) above
but before his or her entire interest has been distributed,
the remaining interest must be distributed at least as rapidly
as under the method of distribution being used prior to the
Owner's death.
(e) All distributions must comply with a method of distribution
offered by the Company under this Contract.
(f) If the Owner receives a distribution from this Contract that
qualifies as an "eligible rollover distribution" (within the
meaning of Code Section 402(f)(2)(A)) and elects to have such
distribution paid directly to an "eligible retirement plan"
(within the meaning of Code Section 402(c)), such distribution
shall be made in the form of a direct transfer to the eligible
retirement plan. The Company may establish reasonable
administrative rules applicable to such direct transfers.
NONFORFEITABILITY
(a) The Owner's rights under this Contract shall be nonforfeitable
except for failure to pay future Premiums.
(b) This Contract may not be transferred, sold, assigned or
pledged as collateral for a loan or as security for the
performance of an obligation or for any other purposes to any
person other than the Company.
MULTIPLE CONTRACTS
(a) If for any taxable year an Owner is covered by this Contract
and any other TSA, all such contracts shall be treated as a
single contract.
PLAN PROVISIONS
The Plan, including certain Plan provisions required by the Employee
Retirement Income Security Act of 1974 or other applicable law, may
limit the Owner's rights under this Contract. The Plan provisions may:
(a) Limit the Owner's right to make Purchase Payments;
(b) Restrict the time when the Owner may elect to receive payments
under this Contract;
(c) Require the consent of the Owner's spouse before the Owner may
elect to receive payments under this Contract;
(d) Require that all distributions be made in the form of a joint
and survivor annuity for the Owner and the Owner's spouse
unless both consent to a different form of distribution;
(e) Require that the Owner's spouse be the Designated Beneficiary;
(f) Require that the Owner remain employed by the Employer
sponsoring the Plan for a specified period of time before the
Owner's rights under this Contract become fully vested; or
(g) Otherwise restrict the Owner's exercise of rights under the
Contract or give the Employer sponsoring the Plan (or a Plan
representative) the right to exercise certain rights on the
Owner's behalf.
No such Plan provision shall limit an Owner's rights under this
Contract, unless the Employer sponsoring the Plan has provided the
Company with written notification of such provision. In no event shall
any such Plan provision enlarge the Company's obligations under this
Contract.
TAX CONSEQUENCES
(a) The Company will not incur any liability or be responsible for
the timing, purpose or propriety of any contribution or
distribution; any tax or penalty imposed on account of any
such contribution or distribution; or any other failure, in
whole or in part, by the Owner or the Employer to comply with
the provisions set forth in the Code or any other law.
ADMINISTRATION
The Company does not act as the Administrator of the Plan. Accordingly,
the Company will not incur any liability or be responsible for
interpreting the Plan or deciding any question arising thereunder.
SECURITY BENEFIT LIFE INSURANCE COMPANY
XXXXX X. XXXXX
Secretary
----------------------------
Endorsement Effective Date
(If Other Than Issue Date)
ENDORSEMENT
INDIVIDUAL RETIREMENT ANNUITY PROVISIONS
INDIVIDUAL RETIREMENT ANNUITY ENDORSEMENT
This Contract is established as an Individual Retirement Annuity
("IRA") as defined in Section 408 of the Internal Revenue Code of 1986,
as amended (the "Code") or any successor provision pursuant to the
Owner's request in the Application. Accordingly, this endorsement is
attached to and made part of the Contract as of its Issue Date or, if
later, the date shown below. Notwithstanding any other provisions of
the Contract to the contrary, the following provisions shall apply.
RESTRICTIONS ON INDIVIDUAL RETIREMENT ANNUITY
To ensure treatment as an IRA, this Contract will be subject to the
requirements of Code Section 408, which are briefly summarized below:
1. The Contract is established for the exclusive benefit of the
Owner or his or her beneficiaries. The Owner shall be the
Annuitant.
2. The Contract shall be nontransferable and the entire interest
of the Owner in the Contract is nonforfeitable.
3. Notwithstanding any provision of the Contract to the contrary,
the distribution of the Owner's interest shall be made in
accordance with the minimum distribution requirements of
Section 401(a)(9) of the Internal Revenue Code and the
regulations thereunder, including the incidental death benefit
provisions of Section 1.401(a)(9)-2 of the proposed
regulations, all of which are herein incorporated by
reference.
The Owner's entire interest in the Contract must be
distributed, or begin to be distributed, by the Owner's
required beginning date, which is the April 1 following the
calendar year in which the Owner reaches age 70 1/2. For each
succeeding year, a distribution must be made on or before
December 31. By the required beginning date, the Owner may
elect to have the balance in the account distributed in one of
the following forms:
1) A single lump sum payment;
2) Equal or substantially equal monthly,
quarterly, or annual payments over the life
of the Owner or over the joint and last
survivor lives of the Owner and his or her
Designated Beneficiary; or
3) Equal or substantially equal annual payments
over a specified period that may not be
longer than the Owner's life expectancy or
the joint and last survivor life expectancy
of the Owner and his or her Designated
Beneficiary.
An Annuity Option may not be elected with a Fixed Period that
will guarantee Annuity Payments beyond the life expectancy of
the Annuitant and Beneficiary and Annuity Payments must be
made at least annually and in equal amounts.
4. If the Owner dies before his or her entire interest is
distributed, the entire remaining interest will be distributed
as follows:
a. If the Owner dies on or after distributions have
begun under Section 3, the entire remaining interest
must be distributed at least as rapidly as provided
under Section 3.
V 6842A (1-97)
INDIVIDUAL RETIREMENT ANNUITY PROVISIONS (Continued)
RESTRICTIONS ON INDIVIDUAL RETIREMENT ANNUITY (continued)
b. If the Owner dies before distributions have begun
under Section 3, the entire remaining interest must
be distributed as elected by the Owner or, if the
Owner has not so elected, as elected by the
Designated Beneficiary or Beneficiaries as follows:
1) by December 31 of the year containing the
fifth anniversary of the Owner's death; or
2) in equal or substantially equal payments
over the life or life expectancy of the
Designated Beneficiary or Beneficiaries
starting by December 31 of the year
following the year of the Owner's death. If,
however, the Designated Beneficiary is the
Owner's surviving spouse, then this
Distribution is not required to begin until
December 31 of the later of: (1) the
calendar year immediately following the
calendar year in which the Owner died; or
(2) the calendar year in which the Owner
would have attained age 70 1/2.
5. An individual may satisfy the minimum distribution
requirements under Section 401(a)(9) of the Code by receiving
a distribution from one IRA that is equal to the amount
required to satisfy the minimum distribution requirements of
two or more IRAs. For this purpose, the Owner of two or more
IRAs may use the "alternative method" described in Notice
88-38, 1988-1 C.B. 524, to satisfy the minimum distribution
requirements described above.
6. Any refund of premiums (other than those attributable to
excess contributions) will be applied before the close of the
calendar year following the year of the refund toward the
payment of future premiums or the purchase of additional
benefits.
7. The annual premium shall not exceed the lesser of $2,000 or
100 percent of compensation ($4,000 or 100 percent of
compensation for Spousal IRAs however, no more than $2,000 can
be contributed to either spouse's IRA), except for plans
defined in Section 408(k) of the Code, for which annual
premiums shall not exceed $30,000.
8. Rollover contributions from other qualified plans permitted by
the Internal Revenue Code Sections 402(c), 403(a)(4),
403(b)(8), and 408(d)(3), are excluded from the limit set
forth in Section 8.
9. Notwithstanding any Contract provisions to the contrary, no
amount may be borrowed under the Contract and no portion may
be used as security for a loan.
10. Annuity Payments may not begin before the Annuitant attains
the age of 59 1/2 without incurring a penalty tax except in
the situations described in Section 72(t) of the Code.
SECURITY BENEFIT LIFE INSURANCE COMPANY
XXXXX X. XXXXX
Secretary
-----------------------------
Endorsement Effective Date
(If Other Than Issue Date)
