Flexible Premium Variable Life Insurance Contract - Nonparticipating Contract Number 9999999 Insured John Doe Agency 0001
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Life
Insurance Contract -
Nonparticipating
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Contract
Number
9999999
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Insured
Xxxx Xxx
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Agency
0001
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Adjustable
death benefit. Death Proceeds payable at death of Insured. Flexible
premiums payable until prior to the death of Insured.
The
amount and duration of the death benefit may increase or decrease as
described in this contract, depending on the investment experience of the
Subaccounts.
The
Contract Value of this contract may increase or decrease daily depending
on the investment experience of the Subaccounts. There is no
guaranteed minimum Contract Value.
Kansas
City Life Insurance Company will pay the Proceeds of this contract
according to the provisions on this and the following pages, all of which
are part of the contract. This contract is a legal contract between you
and Kansas City Life Insurance Company. READ YOUR CONTRACT
CAREFULLY.
Signed
for Kansas City Life Insurance Company, a stock company, at its Home
Office, 0000 Xxxxxxxx, XX Xxx 000000, Xxxxxx Xxxx, XX
00000-9139.
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Secretary
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President,
CEO and Chairman
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10-Day
Right to Examine Contract
Please
examine this contract carefully. If you are not satisfied, you may return
the contract to us or your agent within 10 days of its receipt. If
returned, the contract will be void from the beginning and any premium
paid will be refunded.
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J176
GUIDE
TO CONTRACT PROVISIONS
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Page
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Section
1: Contract Data
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3
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Section
2: Monthly Cost of Insurance Rates
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7
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Section
3: Definition of Certain Terms
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9
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Section
4: Contract Proceeds
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10
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Section
5: Premium and Reinstatement Provisions
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11
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Section
6: Contract Change Provisions
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13
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Section
7: Contract Values
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14
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Section
8: Loan Provisions
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16
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Section
9: Other Contract Provisions
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16
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9.1
Contract
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16
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9.2
Incontestability
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16
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9.3
Suicide
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17
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9.4
Age and Sex
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17
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9.5
Termination of Coverage
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17
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9.6
Modifications
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17
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9.7
Nonparticipating
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17
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9.8
Annual Report
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17
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Section
10: Control of Contract
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17
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Section
11: The Variable Account
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18
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Section
12: Transfers
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19
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Section
13: Payment of Proceeds
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20
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A copy of
the original application and any additional benefits provided by rider or
endorsement follows the last page of this contract.
Features
of Your Variable Universal Life Insurance Contract
Your
variable universal life insurance contract provides for flexible premium
payments and an adjustable death benefit. The Contract Values are affected by
such things as the investment experience of the Subaccounts, the amount of your
premium payments, monthly contract charges and the monthly interest credited to
your Fixed Account Values.
Some
aspects of your variable universal life insurance contract are guaranteed,
including the maximum Cost of Insurance charges. Other aspects of your contract,
such as the investment experience of the Subaccounts, the current interest rate
on the Fixed Account and current Cost of Insurance charges, are not guaranteed.
Fluctuations in the non-guaranteed elements of your contract will affect the
Contract Values and premium payments necessary to keep your contract in
force.
Contract
loans and partial surrenders may adversely affect the amount of death benefit,
Contract Values and premium payments necessary to keep your contract in
force.
J176
2
Section
1: Contract Data
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Beneficiary
As
stated in the application or in any subsequent agreements, amendments, or
endorsements.
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Contract
Number
[9999999]
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Owner
[Insured]
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Insured
[Xxxx Xxx]
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Issue
Age
[35]
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Initial
Specified Amount
[$100,000]
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Sex
[Male]
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Contract
Date
[January 1,
2008]
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Minimum
Specified Amount
[$100,000]
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Maturity
Date *
none
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Guaranteed
Monthly Premium During Guaranteed Payment Period
[$70.00]
**
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Guaranteed
Payment Period
First
[seven] years following the Contract Date.
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Fixed
Account Guaranteed Interest Rate
3%
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Loan
Interest Rate
[5%]
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Mortality
Tables
2001
Commissioners’ Standard Ordinary Smoker and Non-Smoker, Male and Female
Mortality Tables, Age nearest birthday.
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*
Coverage may expire if the Cash Surrender Value or premium payments are
insufficient as described in Section 5.8, Grace Period.
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**
This amount will change if you increase the Specified Amount or delete or
add any benefits provided by riders.
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3
Section
1: Contract Data (continued)
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Date
Prepared: [01/01/2008]
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Insured
[Xxxx
Xxx]
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Contract
Number
[9999999]
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Planned
Premium Payment: [$70.00 Monthly]
Form
Number
|
Benefit Description
|
Specified
Amount
|
Risk Class
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Monthly
Cost of Insurance
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J176
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[Coverage
Option A: Death Benefit equals the Specified Amount at the time of
death.
(Effective:
January 1, 2008)]
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[$100,000]*
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[Standard Non-Tobacco]
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See
Section 2
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* This is
the initial Specified Amount on the Contract Date. The Specified Amount may be
changed as provided in Section 6, Contract Change Provisions.
J176
4
Section
1: Contract Data (continued)
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Date
Prepared: [01/01/2008]
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Insured
[Xxxx
Xxx]
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Contract
Number
[9999999]
|
Premium
Expense Charge
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[5.00%]
deducted from each premium payment
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Monthly
Expense Charges
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Current
Expense Charges
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[$10.00]
per month for all Contract Years
[Contract
Years [1-5] [$0.05] per month per 1,000 of Specified Amount]
[Contract
Years [6+] [$0.00] per month per 1,000 of Specified
Amount]
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Guaranteed
Expense Charges
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[$10.00]
per month for all Contract Years
[Contract
Years [1-20] [$0.05] per month per 1,000 of Specified Amount]
[Contract
Years [21+] [$0.00] per month per 1,000 of Specified
Amount]
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Mortality
and Expense Risk Charge
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0.90%
annually
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Partial
Surrender Fee
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The
lesser of 2% of the amount surrendered or $25.00
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Table of
Surrender Charges
Contract Year
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Amount at End of Year
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1
|
[$985.95]
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2
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[$1,599.43]
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3
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[$2,191.00]
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4
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[$2,191.00]
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5
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[$2,191.00]
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6
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[$1,971.90]
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7
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[$1,752.80]
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8
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[$1,533.70]
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9
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[$1,314.60]
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10
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[$1,095.50]
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11
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[$876.40]
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12
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[$701.12]
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13
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[$525.84]
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14
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[$350.56]
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15
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[$175.28]
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16+
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[$0.00]
|
There
will not be a surrender charge after the end of the 15th Contract Year unless
you have requested an increase in the Specified Amount.
When a
requested increase in the Specified Amount is made, an additional surrender
charge and surrender charge period will be applicable for 15 years following the
effective date of the increase in Specified Amount. We will send you an updated
surrender charge schedule for the increase. The additional surrender charge will
apply only if the increase is in connection with an increase as provided in
Section 6.2, Changes in Specified Amount, or, if applicable, under the terms of
any increase rider.
The
surrender charges listed above are applicable at the end of each Contract Year.
After the first Contract Year the surrender charge between years will be
pro-rated. The charge for the entire first Contract Year will be
level.
J176
5
Section
1: Contract Data (continued)
|
Date
Prepared: [01/01/2008]
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Insured
[Xxxx
Xxx]
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Contract
Number
[9999999]
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Investment
Options
|
[KCL
Fixed Account
|
Subaccounts
that invest in the Kansas City Life Variable Life Separate
Account:
|
AIM
V.I. Capital Appreciation Fund (Series I Shares)
AIM
V.I. Core Equity Fund (Series I Shares)
AIM
V.I. Technology Fund (Series I Shares)
American
Century VP Capital Appreciation Fund
American
Century VP Income & Growth Fund
American
Century VP International Fund
American
Century VP Mid Cap Value Fund
American
Century VP Ultra® Fund
American
Century VP Value Fund
American
Century VP Inflation Protection Fund (Class II)
Calamos
Growth and Income Portfolio
Dreyfus
Appreciation Portfolio – Initial Shares
Dreyfus
Developing Leaders Portfolio – Initial Shares
Dreyfus
Stock Index Fund, Inc. – Initial Shares
The
Dreyfus Socially Responsible Growth Fund, Inc. – Initial
Shares
Federated
American Leaders Fund II
Federated
High Income Bond Fund II
*Federated
Prime Money Fund II
Fidelity
VIP Contrafund Portfolio (Service Class 2)
Fidelity
VIP Freedom Income Portfolio (Service Class 2)
Fidelity
VIP Freedom 2010 Portfolio (Service Class 2)
Fidelity
VIP Freedom 2015 Portfolio (Service Class 2)
Fidelity
VIP Freedom 2020 Portfolio (Service Class 2)
Fidelity
VIP Freedom 2025 Portfolio (Service Class 2)
Fidelity
VIP Freedom 2030 Portfolio (Service Class 2)
Franklin
Global Real Estate Fund (Class 2)
Franklin
Small-Mid Cap Growth Securities Fund (Class 2)
Xxxxxxxxx
Developing Markets Securities Fund (Class 2)
Xxxxxxxxx
Foreign Securities Fund (Class 2)
JPMorgan
Mid Cap Value Portfolio
JPMorgan
Small Company Portfolio
JPMorgan
U.S. Large Cap Core Equity Portfolio
MFS
Growth Series
MFS
Research Series
MFS
Research Bond Series
MFS
Strategic Income Series
MFS
Total Return Series
MFS
Utilities Series
Xxxxxxxx
Capital Portfolio (Class 2)
Xxxxxxxx
Communications and Information Portfolio (Class 2)
Xxxxxxxx
Smaller-Cap Value Portfolio (Class 2)
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*
The Federated Prime Money Fund II Subaccount is referred to in this
contract as the money market
Subaccount.]
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J176
6
Section
2: Monthly Cost of Insurance Rates
Table
of Guaranteed Maximum Monthly Cost of Insurance Rates
per
$1,000 -- Tobacco User Risk Class
Age
|
Male
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Female
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Age
|
Male
|
Female
|
Age
|
Male
|
Female
|
Age
|
Male
|
Female
|
15
|
$0.05084
|
$0.02917
|
44
|
$0.34345
|
$0.23839
|
73
|
$4.07151
|
$3.21111
|
102
|
$35.01097
|
$28.34637
|
16
|
$0.06584
|
$0.03417
|
45
|
$0.38098
|
$0.26090
|
74
|
$4.40683
|
$3.49635
|
103
|
$36.43322
|
$30.40644
|
17
|
$0.08084
|
$0.03833
|
46
|
$0.41601
|
$0.28592
|
75
|
$4.79707
|
$3.78343
|
104
|
$37.93389
|
$32.64981
|
18
|
$0.09251
|
$0.04167
|
47
|
$0.45521
|
$0.31760
|
76
|
$5.21287
|
$4.09671
|
105
|
$39.87487
|
$35.49326
|
19
|
$0.10084
|
$0.04500
|
48
|
$0.47689
|
$0.35679
|
77
|
$5.69390
|
$4.43374
|
106
|
$41.94705
|
$38.42340
|
20
|
$0.10584
|
$0.04834
|
49
|
$0.50192
|
$0.40099
|
78
|
$6.25049
|
$4.79707
|
107
|
$44.16014
|
$41.44337
|
21
|
$0.11085
|
$0.05084
|
50
|
$0.53779
|
$0.44937
|
79
|
$6.88457
|
$5.19013
|
108
|
$46.52136
|
$44.49915
|
22
|
$0.11668
|
$0.05417
|
51
|
$0.58034
|
$0.50192
|
80
|
$7.56260
|
$5.61384
|
109
|
$49.04367
|
$47.70095
|
23
|
$0.12168
|
$0.05584
|
52
|
$0.63874
|
$0.55948
|
81
|
$8.32286
|
$6.21084
|
110
|
$51.73391
|
$50.99608
|
24
|
$0.12835
|
$0.06000
|
53
|
$0.70466
|
$0.62038
|
82
|
$9.09107
|
$6.86007
|
111
|
$54.60665
|
$54.18326
|
25
|
$0.13585
|
$0.06417
|
54
|
$0.78729
|
$0.68714
|
83
|
$9.89784
|
$7.49323
|
112
|
$57.67409
|
$57.29201
|
26
|
$0.14252
|
$0.06750
|
55
|
$0.88078
|
$0.75724
|
84
|
$10.77656
|
$8.17462
|
113
|
$60.94980
|
$60.13810
|
27
|
$0.15086
|
$0.07251
|
56
|
$0.97595
|
$0.83236
|
85
|
$11.81206
|
$8.86201
|
114
|
$64.44883
|
$64.17791
|
28
|
$0.15169
|
$0.07667
|
57
|
$1.07699
|
$0.91250
|
86
|
$12.94801
|
$9.43570
|
115
|
$68.18682
|
$67.96341
|
29
|
$0.15086
|
$0.08251
|
58
|
$1.15634
|
$0.99015
|
87
|
$14.17221
|
$10.34679
|
116
|
$72.18101
|
$71.91859
|
30
|
$0.15002
|
$0.08584
|
59
|
$1.24822
|
$1.07616
|
88
|
$15.46210
|
$11.25783
|
117
|
$76.45137
|
$76.29014
|
31
|
$0.15002
|
$0.09334
|
60
|
$1.35935
|
$1.16552
|
89
|
$16.80008
|
$12.17563
|
118
|
$81.01778
|
$80.35500
|
32
|
$0.15169
|
$0.09918
|
61
|
$1.49724
|
$1.25825
|
90
|
$18.16837
|
$12.91894
|
119
|
$83.33333
|
$83.33333
|
33
|
$0.15586
|
$0.10668
|
62
|
$1.66360
|
$1.36269
|
91
|
$19.40523
|
$13.08056
|
120
|
$83.33333
|
$83.33333
|
34
|
$0.16169
|
$0.11585
|
63
|
$1.84841
|
$1.46715
|
92
|
$20.67027
|
$13.74126
|
|||
35
|
$0.16669
|
$0.12752
|
64
|
$2.03748
|
$1.57748
|
93
|
$21.98111
|
$14.80774
|
|||
36
|
$0.17586
|
$0.13752
|
65
|
$2.22410
|
$1.69788
|
94
|
$23.34419
|
$16.17152
|
|||
37
|
$0.18587
|
$0.14919
|
66
|
$2.40410
|
$1.82583
|
95
|
$24.85705
|
$18.24094
|
|||
38
|
$0.20004
|
$0.15669
|
67
|
$2.57913
|
$1.96971
|
96
|
$26.19622
|
$20.14012
|
|||
39
|
$0.21421
|
$0.16669
|
68
|
$2.76345
|
$2.12785
|
97
|
$27.61193
|
$22.05510
|
|||
40
|
$0.23089
|
$0.17670
|
69
|
$2.94615
|
$2.29944
|
98
|
$29.11098
|
$22.14738
|
|||
41
|
$0.25256
|
$0.18837
|
70
|
$3.16750
|
$2.49119
|
99
|
$30.69938
|
$23.08506
|
|||
42
|
$0.27758
|
$0.20254
|
71
|
$3.40992
|
$2.70982
|
100
|
$32.38239
|
$24.70128
|
|||
43
|
$0.30759
|
$0.21921
|
72
|
$3.73977
|
$2.95118
|
101
|
$33.66029
|
$26.43322
|
J176
7
Table
of Guaranteed Maximum Monthly Cost of Insurance Rates
per
$1,000 -- Non-Tobacco User Risk Class
Age
|
Male
|
Female
|
Age
|
Male
|
Female
|
Age
|
Male
|
Female
|
Age
|
Male
|
Female
|
0
|
$0.08084
|
$0.04000
|
34
|
$0.08834
|
$0.06834
|
68
|
$1.69035
|
$1.18223
|
102
|
$34.25451
|
$27.58993
|
1
|
$0.04667
|
$0.02917
|
35
|
$0.09084
|
$0.07417
|
69
|
$1.83586
|
$1.28749
|
103
|
$35.98673
|
$29.95805
|
2
|
$0.03250
|
$0.02167
|
36
|
$0.09584
|
$0.07917
|
70
|
$2.01237
|
$1.40363
|
104
|
$37.83604
|
$32.57783
|
3
|
$0.02250
|
$0.01667
|
37
|
$0.10001
|
$0.08584
|
71
|
$2.20987
|
$1.53736
|
105
|
$39.78296
|
$35.42535
|
4
|
$0.01750
|
$0.01583
|
38
|
$0.10751
|
$0.08917
|
72
|
$2.46942
|
$1.68701
|
106
|
$41.86111
|
$38.36050
|
5
|
$0.01750
|
$0.01500
|
39
|
$0.11418
|
$0.09418
|
73
|
$2.74334
|
$1.84925
|
107
|
$44.07929
|
$41.38462
|
6
|
$0.01833
|
$0.01500
|
40
|
$0.12168
|
$0.10001
|
74
|
$3.03166
|
$2.02744
|
108
|
$46.44744
|
$44.44460
|
7
|
$0.01833
|
$0.01750
|
41
|
$0.13168
|
$0.10584
|
75
|
$3.34700
|
$2.22494
|
109
|
$48.97489
|
$47.65064
|
8
|
$0.01833
|
$0.01750
|
42
|
$0.14419
|
$0.11251
|
76
|
$3.69107
|
$2.44178
|
110
|
$51.67124
|
$50.95006
|
9
|
$0.01917
|
$0.01750
|
43
|
$0.15836
|
$0.12085
|
77
|
$4.09083
|
$2.68050
|
111
|
$54.55012
|
$54.14066
|
10
|
$0.01917
|
$0.01833
|
44
|
$0.17503
|
$0.13085
|
78
|
$4.55818
|
$2.94448
|
112
|
$57.62282
|
$57.25382
|
11
|
$0.02250
|
$0.01917
|
45
|
$0.19420
|
$0.14252
|
79
|
$5.09836
|
$3.22956
|
113
|
$60.90571
|
$60.10438
|
12
|
$0.02750
|
$0.02250
|
46
|
$0.21255
|
$0.15586
|
80
|
$5.68800
|
$3.54838
|
114
|
$64.41012
|
$64.14865
|
13
|
$0.03250
|
$0.02500
|
47
|
$0.23255
|
$0.17253
|
81
|
$6.36020
|
$3.98162
|
115
|
$68.15449
|
$67.93870
|
14
|
$0.03917
|
$0.02750
|
48
|
$0.24423
|
$0.19087
|
82
|
$7.06118
|
$4.47073
|
116
|
$72.15515
|
$71.89944
|
15
|
$0.05084
|
$0.02917
|
49
|
$0.25757
|
$0.21088
|
83
|
$7.81815
|
$4.95863
|
117
|
$76.43109
|
$76.27566
|
16
|
$0.06167
|
$0.03250
|
50
|
$0.27674
|
$0.23422
|
84
|
$8.65764
|
$5.49840
|
118
|
$81.00512
|
$80.34528
|
17
|
$0.07084
|
$0.03417
|
51
|
$0.29926
|
$0.26007
|
85
|
$9.59706
|
$6.10707
|
119
|
$83.33333
|
$83.33333
|
18
|
$0.07667
|
$0.03500
|
52
|
$0.33011
|
$0.28925
|
86
|
$10.64036
|
$6.65989
|
120
|
$83.33333
|
$83.33333
|
19
|
$0.07834
|
$0.03750
|
53
|
$0.36347
|
$0.32094
|
87
|
$11.78220
|
$7.49323
|
|||
20
|
$0.07917
|
$0.03750
|
54
|
$0.40600
|
$0.35429
|
88
|
$13.00872
|
$8.36523
|
|||
21
|
$0.07917
|
$0.03833
|
55
|
$0.45854
|
$0.39015
|
89
|
$14.30594
|
$9.29646
|
|||
22
|
$0.07917
|
$0.04000
|
56
|
$0.51193
|
$0.43185
|
90
|
$15.66322
|
$10.15628
|
|||
23
|
$0.08001
|
$0.04000
|
57
|
$0.56949
|
$0.47523
|
91
|
$16.94312
|
$10.59184
|
|||
24
|
$0.08084
|
$0.04167
|
58
|
$0.61872
|
$0.52194
|
92
|
$18.28068
|
$11.44961
|
|||
25
|
$0.08167
|
$0.04167
|
59
|
$0.67546
|
$0.56866
|
93
|
$19.69542
|
$12.72489
|
|||
26
|
$0.08501
|
$0.04417
|
60
|
$0.74389
|
$0.61705
|
94
|
$21.19403
|
$14.33938
|
|||
27
|
$0.08917
|
$0.04750
|
61
|
$0.82735
|
$0.66961
|
95
|
$22.77289
|
$16.33935
|
|||
28
|
$0.08751
|
$0.04834
|
62
|
$0.92920
|
$0.72720
|
96
|
$24.22200
|
$18.24612
|
|||
29
|
$0.08584
|
$0.05167
|
63
|
$1.04359
|
$0.78645
|
97
|
$25.77166
|
$20.21644
|
|||
30
|
$0.08501
|
$0.05334
|
64
|
$1.16385
|
$0.85072
|
98
|
$27.43069
|
$20.55482
|
|||
31
|
$0.08417
|
$0.05667
|
65
|
$1.29083
|
$0.92168
|
99
|
$29.20718
|
$21.68875
|
|||
32
|
$0.08417
|
$0.06000
|
66
|
$1.41951
|
$1.00017
|
100
|
$31.11386
|
$23.49431
|
|||
33
|
$0.08667
|
$0.06334
|
67
|
$1.54990
|
$1.08618
|
101
|
$32.63203
|
$25.42630
|
J176
8
Section
3: Definition of Certain Terms
The
following key words are used in the contract and are important in describing it.
Please refer back to these definitions as you read the contract.
3.1
Accumulation Unit
An
accounting unit used to calculate the Variable Account Value. It is a measure of
the net investment results of each of the Subaccounts.
3.2
Age
This
Contract is issued at the Age shown in Section 1, Contract Data, which is the
Insured’s Age on the birthday closest to the Contract Date. Age means the issue
age plus the number of completed Contract Years.
3.3
Allocation Date
The date
on which the initial Net Premium is allocated to the money market Subaccount.
The Allocation Date is the later of the date we approve your application or the
date we receive the initial premium at our Home Office.
3.4
Beneficiary
The
beneficiary is the person you have designated in the application (or in the last
designation filed with us) to receive any Proceeds payable under this contract
at the death of the Insured.
3.5
Cash Surrender Value
The
Contract Value less any applicable surrender charge and any loan
balance.
3.6
Contract Anniversary
The same
day and month as the Contract Date each year that the contract remains in
force.
3.7
Contract Date
The date
on which coverage takes effect. Contract months, years and anniversaries are
measured from the Contract Date.
3.8
Contract Value
The sum
of the Variable Account Value and the Fixed Account Value (including the loan
account value). These values are described in more detail in Section 7, Contract
Values.
3.9
Contract Year
Any
period of twelve months starting with the Contract Date or any Contract
Anniversary.
3.10
Cost of Insurance
The
charge we make based on the amount of pure insurance protection using the
current Cost of Insurance rates for this contract. It does not include the cost
of any additional benefits provided by riders.
3.11
Coverage Options
The
coverage option selected determines the amount of death Proceeds payable. Three
coverage options (A, B or C) are available. These options are described in
Section 4.2, Death Proceeds.
3.12
Fixed Account
An
account that is part of our general account. The investment performance of the
Variable Account has no impact on the Fixed Account.
3.13
Fixed Account Value
The
Contract Value in the Fixed Account.
3.14
Insured
The
person whose life is insured under this contract.
3.15
Maturity Date
The date
shown in Section 1, Contract Data, when coverage terminates and we pay any Cash
Surrender Value.
3.16
Monthly Anniversary Day
The day
of each month when we make the Monthly Deduction for this contract. It is the
same day of each month as shown in the Contract Date (or the last day of the
month for those months not having such a day).
3.17
Monthly Deduction
The
amount we deduct on the Monthly Anniversary Day from the Contract Value to pay
the Cost of Insurance, Monthly Expense Charges, and the cost of any additional
benefits provided by riders for the month beginning on that Monthly Anniversary
Day.
3.18
Monthly Expense Charges
The
charges we deduct from the Contract Value on each Monthly Anniversary Day to
compensate us for the costs associated with administration of the contract. We
show this charge in Section 1, Contract Data.
3.19
Mortality and Expense Risk Charge
The
charge we deduct from the assets of the Subaccounts to compensate us for the
mortality and expense risks for this contract. We show this charge in Section 1,
Contract Data.
3.20
Net Investment Factor
The ratio
of the Subaccount performance of the current Valuation Day to the immediately
prior Valuation Day. The Subaccount performance includes gains or losses in the
Subaccounts, dividends paid, any capital gains or losses, any taxes, and
Mortality and Expense Risk Charges.
3.21
Net Premium
The
premium payment minus the Premium Expense Charge.
3.22
Non-Tobacco User
A rate
class that defines an Insured who does not use tobacco products in any form
during the time period as defined in our underwriting guidelines.
3.23
Owner
The
person entitled to exercise all rights and privileges provided in the
contract.
J176
9
3.24
Planned Premium
The
amount and frequency of premium payments you elected to pay in your last
application. This is only an indication of your preference of future premium
payments. You may change the amount and frequency of premium payments at any
time. Section 5.8, Grace Period, describes the amount of premium required to
keep your contract in force.
3.25
Premium Expense Charge
The
amount we deduct from each premium payment. We show this charge in Section 1,
Contract Data.
3.26
Proceeds
The total
amount we are obligated to pay under the terms of this contract.
3.27
Reallocation Date
The date
the Contract Value in the money market Subaccount is allocated to the
Subaccounts and to the Fixed Account based on the Net Premium payment allocation
percentages specified in the application. The Reallocation Date is 30 days after
the Allocation Date.
3.28
Specified Amount
The
amount of insurance coverage on the Insured. The actual death benefit will
depend upon the coverage option in effect at the time of death less any loan
balance.
3.29
Subaccounts
The
division of accounts making up the Variable Account. The assets of each
Subaccount are invested in a corresponding portfolio of a designated mutual
fund.
3.30
Tobacco User
A rate
class that defines an Insured who uses tobacco products in any form during the
time period as defined in our underwriting guidelines.
3.31
Valuation Day
Each day
on which the New York Stock Exchange is open for business.
3.32
Valuation Period
The
interval of time commencing at the close of business one Valuation Day and
ending at the close of business on the next Valuation Day.
3.33
Variable Account
The
Kansas City Life Variable Life Separate Account. This is not part of our general
account. The Variable Account has Subaccounts each of which is invested in a
corresponding portfolio of a designated mutual fund.
3.34
Variable Account Value
The total
value of the contract allocated to Subaccounts of the Variable
Account.
3.35
We, Our, Us
Kansas
City Life Insurance Company.
3.36
Written Notice/Written Request
A Written
Notice or Written Request in a form satisfactory to us, which is signed by the
Owner and received at the Home Office.
3.37
You, Your
The Owner
of this contract. The Owner may be someone other than the Insured.
Section
4: Contract Proceeds
4.1
Types of Proceeds and Method of Payment
There are
various types of Proceeds available under this contract. These
include:
• Death
Proceeds
• Surrender
Proceeds
• Partial
Surrender Proceeds
We will
pay death or surrender Proceeds as either a lump sum or under a payment option
as described in Section 13, Payment of Proceeds. The amount of Proceeds payable
will vary by the type of Proceeds and the form of payment selected. We will only
pay partial surrender Proceeds as a lump sum.
We have
the right to require that this contract be returned to us when we pay death or
surrender Proceeds.
To the
extent permitted by law, Proceeds will not be subject to any claims of your
creditors or the Beneficiary’s creditors.
4.2
Death Proceeds
If the
Insured dies, we will pay the death Proceeds to the Beneficiary. We will require
proof that the Insured’s death occurred while this contract was in
force.
We will
pay the Proceeds to the Beneficiary in a lump sum unless you or the Beneficiary
elect one of the payment options listed in Section 13, Payment of
Proceeds.
The
amount of death Proceeds payable upon the Insured’s death is determined
according to the coverage option you have elected. The coverage option is shown
in Section 1, Contract Data.
Coverage
Option A
The death
benefit will be the greater of:
(1) the
Specified Amount on the date of death; or
(2) the
Contract Value on the date of death multiplied by the corridor percentage as
shown in the following table for the Insured’s Age on the date of
death.
J176
10
Coverage
Option B
The death
benefit will be the greater of:
(1) the
Specified Amount on the date of death, plus the Contract Value on the date of
death; or
(2) the
Contract Value on the date of death multiplied by the corridor percentage as
shown in the following table for the Insured’s Age on the date of
death.
Coverage
Option C
The death
benefit will be the greater of:
(1) the
Specified Amount on the date of death, plus the total premiums paid, minus the
total amount of partial surrenders; or
(2) the
Contract Value on the date of death multiplied by the corridor percentage as
shown in the following table for the Insured’s Age on the date of
death.
We will
increase the death benefit under any coverage option by any additional benefits
provided by riders in force at the Insured’s death and any premiums received
after the date of death. We will also refund any Cost of Insurance charge
deducted for the period beyond the date of death. We will reduce the death
benefit by any loan balance.
The
purpose of the corridor percentage is to ensure that your contract will not be
disqualified as a life insurance contract under Section 7702 of the Internal
Revenue Code, as amended.
Corridor
Percentages
Age
|
Corridor
Percentage
|
Age
|
Corridor
Percentage
|
0-40
|
250%
|
63
|
124%
|
41
|
243%
|
64
|
122%
|
42
|
236%
|
65
|
120%
|
43
|
229%
|
66
|
119%
|
44
|
222%
|
67
|
118%
|
45
|
215%
|
68
|
117%
|
46
|
209%
|
69
|
116%
|
47
|
203%
|
70
|
115%
|
48
|
197%
|
71
|
113%
|
49
|
191%
|
72
|
111%
|
50
|
185%
|
73
|
109%
|
51
|
178%
|
74
|
107%
|
52
|
171%
|
75-90
|
105%
|
53
|
164%
|
91
|
104%
|
54
|
157%
|
92
|
103%
|
55
|
150%
|
93
|
102%
|
56
|
146%
|
94
|
101%
|
57
|
142%
|
95+
|
100%
|
58
|
138%
|
||
59
|
134%
|
||
60
|
130%
|
||
61
|
128%
|
||
62
|
126%
|
If
changes occur in the Internal Revenue Code which would disqualify the contract
as a life insurance contract, we have the right to amend the contract in order
to make it qualify under any new federal income tax laws.
We will
pay interest on lump sum death Proceeds from the date of the Insured’s death
until the date of payment. Interest will be at an annual rate determined by us,
but never less than the rate required by the state in which this contract is
delivered.
4.3
Surrender Proceeds
We will
pay Proceeds of a full surrender as either a lump sum or under a payment option
as described in Section 13, Payment of Proceeds. Unless you specify otherwise,
we will pay full surrender Proceeds as a lump sum. We will only pay partial
surrender Proceeds as a lump sum.
The
amount of Proceeds payable upon a full surrender is the Cash Surrender Value as
described in Section 7.8, Cash Surrender. The amount of Proceeds payable under
the partial surrender provision is defined in Section 7.9, Partial
Surrenders.
Section
5: Premium and Reinstatement Provisions
5.1
Payment
You must
pay your first premium when the contract is delivered. Subsequent premiums may
be paid at any time. There is no insurance until we receive the first premium.
All premiums after the first must be paid at the Home Office or to a
representative authorized to receive premiums.
5.2
Right to Refund
We will
inform you if we receive a premium payment which affects the tax qualification
of this contract as described in Section 7702 of the Internal Revenue Code, as
amended. We will offer you the choice of a refund of the premium or the option
to increase the Specified Amount subject to our underwriting
requirements.
If you
choose to increase the Specified Amount and the Insured fails to meet our
underwriting requirements for the required increase in coverage, we have the
right to refund, with interest, any premium that would cause your contract to
violate Section 7702.
5.3
Planned Premiums
The
planned annual, semi-annual, quarterly or monthly premium payment is shown in
Section 1, Contract Data.
5.4
Amount and Frequency
Planned
premiums may be paid at twelve, six or three month intervals. They may also be
paid monthly with our consent. You may change the amount and frequency of
Planned Premiums at any time. However, in order to keep the contract in force
J176
11
the
premium you pay must be sufficient to keep your contract from lapsing as
described in Section 5.8, Grace Period. The actual amount and frequency of
premium payments affects the Contract Value and the amount and duration of
insurance.
We have
the right to limit the amount of any increase in Planned Premium
payments.
5.5
Unscheduled Premiums
You may
pay unscheduled premiums at any time. We reserve the right to limit the number
and amount of unscheduled premium payments. We may require satisfactory evidence
of insurability prior to accepting any unscheduled premium
payments.
Unscheduled
premiums are subject to the requirements of Section 5.2, Right to Refund, if
such premiums would require an increase in the death benefit under Section 7702
of the Internal Revenue Code, as amended.
5.6
Guaranteed Payment Period
The
period of time, shown in Section 1, Contract Data, during which one of the
following conditions must exist to prevent your contract from
lapsing:
(1) the
Cash Surrender Value of the contract on a Monthly Anniversary Day must be
sufficient to cover the Monthly Deduction; or
(2) total
premiums paid must be at least equal to the sum of the guaranteed monthly
premiums for each month the contract has been in force, plus any loan balance
and the total amount of partial surrenders, as provided in Section 5.8, Grace
Period.
5.7
Guaranteed Monthly Premium
If you
pay the guaranteed monthly premiums as due, your contract will not lapse during
the guaranteed payment period (assuming you do not make any contract loans or
partial surrenders). Section 5.8, Grace Period, describes this in
detail.
The
guaranteed monthly premium will change if you increase the Specified Amount or
add or delete any additional benefits provided by riders.
5.8
Grace Period
The
conditions which will result in your contract lapsing will vary, as follows,
depending on whether the guaranteed payment period, shown in Section 1, Contract
Data, has expired.
During
the Guaranteed Payment Period
The
contract will lapse if there is no Cash Surrender Value and if the accumulated
premiums paid as of each Monthly Anniversary Day are less than:
X + Y +
Z
"X" is
the guaranteed monthly premium shown in Section 1, Contract Data, times the
number of Monthly Anniversary Days during which the contract has been in force
before any requested increases to the Specified Amount.
If
requested increases to the Specified Amount have occurred, "X" will also include
each new guaranteed monthly premium after an increase times the number of
Monthly Anniversary Days during which each applicable increase to the Specified
Amount has been in force.
"Y" is
the amount of any loan balance.
"Z" is
the total amount of partial surrenders.
We will
provide a grace period of 61 days from the date your contract lapses to pay
total premiums equal to or greater than X + Y + Z.
After
the Guaranteed Payment Period
The
contract will lapse if the Cash Surrender Value on a Monthly Anniversary Day
will not cover the Monthly Deduction for the month beginning on that Monthly
Anniversary Day.
We will
provide a grace period of 61 days from the date your contract lapses to pay a
premium that will provide enough Cash Surrender Value to cover the balance of
the Monthly Deduction.
The
contract will terminate without value if sufficient premium is not paid by the
end of the grace period.
Section
7, Contract Values, describes the Cash Surrender Value and Monthly Deduction. If
the Insured dies during the grace period, we will pay the Proceeds reduced by
any past due Monthly Deductions.
5.9
Reinstatement
If the
grace period expires without sufficient premiums being paid to prevent lapse,
the contract may be reinstated within two years after the expiration of the
grace period. Your contract cannot be reinstated if it has been
surrendered.
In order
to reinstate we must receive:
(1) satisfactory
evidence of insurability of the Insured; and
(2) payment
of the premium amount which would have been sufficient to keep the contract from
lapsing, as described in Section 5.8, Grace Period, with interest from the date
of lapse; plus:
(a) two
months of guaranteed monthly premium if the contract lapsed during the
guaranteed payment period; or
(b) three
Monthly Deductions if the contract lapsed after the guaranteed payment
period.
Interest
at the loan interest rate, shown in Section 1, Contract Data, on any loan
balance will be payable
J176
12
to the
date of reinstatement. We will reinstate the contract on the Monthly Anniversary
Day after the date we approve the reinstatement.
If lapse
occurs during the guaranteed payment period or during a time when any surrender
charges are applicable, the balance of the guaranteed payment period and
surrender charge periods at the time of lapse will resume upon
reinstatement.
If the
contract lapses and it is reinstated, we cannot contest the reinstated contract
after the contract has been in force during the Insured’s lifetime for two years
from the date of the reinstatement application.
Section
6: Contract Change Provisions
6.1
Right to Change
We
require that the changes provided for in this section be made by Written Notice
or Written Request. These changes may be made at any time the contract is in
force.
6.2
Changes in Specified Amount
The
Specified Amount may be changed after the contract has been in force one year.
Once the Specified Amount has been changed, it cannot be changed again for the
next twelve months. Specified
Amount changes are subject to the conditions outlined below. Changes in
Specified Amount will be effective on the Monthly Anniversary Day on or
following the date we approve your application.
Decreases
in the Specified Amount
We will
apply a decrease first against any increases to the Specified Amount in the
reverse order in which they were made. We will then apply any remaining decrease
against the initial Specified Amount.
We have
the right to decline to make any Specified Amount decrease that we determine
would cause this contract to not qualify as life insurance under applicable tax
laws.
A
decrease in the Specified Amount will not affect the surrender charge and a
decrease in the contract's Specified Amount will not decrease the guaranteed
monthly premium.
The
Specified Amount remaining in force after any requested decrease may not be less
than the minimum Specified Amount shown in Section 1, Contract
Data.
Increases
in the Specified Amount
A request
for an increase in the Specified Amount will be subject to the following
requirements:
(1) you
must submit an application satisfactory to us;
(2) you
must submit evidence of insurability satisfactory to us;
(3) the
Insured's Age must be less than the current maximum issue age for the
contract;
(4) the
increased Monthly Deduction will not cause the contract to lapse, as described
in Section 5.8, Grace Period, as of the effective date of the increase;
and
(5) any
increase will be subject to our issue rules and limits at the time of
increase.
After an
increase, additional surrender charges will apply to your contract. We will send
you a new surrender charge schedule.
A new
guaranteed monthly premium will be applicable during the remainder of the
guaranteed payment period.
6.3
Change in Coverage Option
You may
change the coverage option any time after the contract has been in force one
year. Once you have changed the coverage option, you cannot change it again for
the next twelve months.
If the
coverage option is Option B or Option C, it may be changed to Option A. The new
Specified Amount will be the death benefit as of the effective date of the
change. The effective date of change will be the Monthly Anniversary Day on or
next following the date we receive and approve your application for
change.
If the
coverage option is Option A or Option B you may not change it to Option C.
Coverage Option C is only available at issue.
If the
coverage option is Option A or Option C, you may change it to Option B subject
to satisfactory evidence of insurability. The Specified Amount does not change.
The new death benefit will be the Specified Amount plus the Contract Value. The
effective date of change will be the Monthly Anniversary Day on or following the
date we approve your application for change.
We have
the right to decline any coverage option change that we determine would cause
this contract to not qualify as life insurance under applicable tax
laws.
6.4
Changing Your Contract
Any
change to your contract that is not provided for in this section must be
approved by us and signed by our President, Vice President, Secretary or
Assistant Secretary.
We will
send you an amendment or endorsement for attachment to your contract showing the
approved change. No agent has the authority to make any changes or waive any of
the terms of your contract.
J176
13
Section
7: Contract Values
7.1
Net Premium
The Net
Premium is the premium payment received less the Premium Expense Charge shown in
Section 1, Contract Data.
7.2
Contract Value
On the
Contract Date the Contract Value equals:
(1) the
initial Net Premium paid; less
(2) the
Monthly Deduction, as defined in Section 3.17 of this contract.
On any
day after the Contract Date, the Contract Value is equal to the Fixed Account
Value (including the loan account value) plus the Variable Account
Value.
7.3
Fixed Account Value
On the
Contract Date the Fixed Account Value equals:
(1) the
portion of the Net Premium allocated to the Fixed Account; less
(2) the
portion of the Monthly Deduction allocated to the Fixed Account.
On each
Valuation Day the Fixed Account Value will be equal to:
A + B + C
- D - E – F
"A" is
the Fixed Account Value on the preceding Valuation Day plus interest from the
preceding Valuation Day to the date of calculation.
"B" is
the portion of the Net Premiums allocated to the Fixed Account and received
since the preceding Valuation Day, plus interest from the date we receive such
Net Premiums to the date of calculation.
“C” is
the amount of any transfers from the Subaccounts to the Fixed Account since the
preceding Valuation Day, plus interest on such transferred amounts from the
effective dates of such transfers to the date of calculation.
“D” is
the amount of any transfers from the Fixed Account to the Subaccounts since the
preceding Valuation Day, plus interest on such transferred amount from the
effective dates of such transfers to the date of calculation.
“E” is
the amount of any partial surrenders from the Fixed Account since the preceding
Valuation Day, plus interest on these surrendered amounts from the effective
date of the partial surrenders to the date of calculation.
“F” is a
pro-rata share of the Monthly Deduction, as described in Section 7.6, Monthly
Deduction, for the month beginning on that Monthly Anniversary Day.
7.4
Interest Rate for Fixed Account Value
The value
in the Fixed Account is guaranteed to accumulate at the minimum effective annual
interest rate which is shown in Section 1, Contract Data. We may credit a rate
in excess of the Fixed Account guaranteed interest rate shown in Section 1,
Contract Data, while the contract is in force.
We may
change the interest rate credited to new deposits at any time. We will not
change the interest rate credited to funds in the Fixed Account more often than
once each year.
7.5
Variable Account Value
The
Variable Account Value is the sum of the values of the Subaccounts under this
contract.
As of the
Allocation Date the value of each Subaccount equals:
(1) the
portion of the initial Net Premium allocated to the Subaccount;
less
(2) the
pro-rata share of the Monthly Deduction allocated to the
Subaccounts.
7.6
Monthly Deduction
We will
make a Monthly Deduction from the Contract Value on each Monthly Anniversary Day
equal to the sum of the following:
(1) the
Cost of Insurance, as described in Section 7.7, Cost of Insurance;
(2) the
Monthly Expense Charges as shown in Section 1, Contract Data; and
(3) the
cost of any additional benefits provided by riders for the contract
month.
7.7
Cost of Insurance
The Cost
of Insurance on any Monthly Anniversary Day is equal to:
Q x (R -
S)
1000
"Q" is
the Cost of Insurance rate.
"R" is
the Insured’s death benefit on that day discounted for one month at a rate not
less than the Fixed Account guaranteed interest rate, shown in Section 1,
Contract Data.
"S" is
the Contract Value, as described in Section 7.2, Contract Value.
We
determine the Cost of Insurance rates (‘Q’ in the above formula) based on the
Insured's Age, number of completed Contract Years, sex, and risk class. We
guarantee that these rates will never exceed the guaranteed Cost of Insurance
rates shown in Section 2, Monthly Cost of Insurance Rates, except as described
below for special risk classes.
We will
make any change in the current Cost of Insurance rates on a uniform basis for
Insureds of the same Age, sex and risk class whose contracts
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have been
in force the same length of time. We will never increase the current Cost of
Insurance rates to recover losses incurred, or decrease them to distribute gains
realized by us, prior to the change.
These
guaranteed maximum rates shown in Section 2, Monthly Cost of Insurance Rates,
are based on the mortality table as shown in Section 1, Contract Data. We will
adjust the guaranteed maximum Cost of Insurance rates appropriately for special
risk classes.
7.8
Cash Surrender
You may
surrender this contract for its Cash Surrender Value at any time by submitting a
Written Notice or Written Request to us.
The Cash
Surrender Value of this contract is:
(1) the
Contract Value of this contract at the time of surrender; less
(2) any
applicable surrender charge; less
(3) any
loan balance.
We will
also refund any Cost of Insurance deducted for the period beyond the date of
contract surrender.
Section
1, Contract Data, shows the surrender charges. These charges apply in the first
15 Contract Years. Additional surrender charges will apply for 15 years
following any increases in Specified Amount.
Certain
federal income tax consequences may apply to cash surrenders. You should consult
with your tax advisor before requesting any surrenders.
7.9
Partial Surrenders
You may
surrender a portion of the Contract Value and have the Proceeds paid to you in a
lump sum. A partial surrender must occur before the death of the Insured while
the contract is in force. The partial surrender amount will be the Proceeds,
plus the partial surrender fee shown in Section 1, Contract Data. The minimum
amount for a partial surrender is $500. The maximum partial surrender is the
Cash Surrender Value, less $300. We will deduct the partial surrender amount
from the Contract Value on the day we receive Written Notice for the partial
surrender.
We will
deduct the partial surrender amount from the Subaccounts and/or the Fixed
Account according to your instructions. If you provide no instructions, we will
deduct the partial surrender amount from the Subaccounts and/or the Fixed
Account on a pro-rata basis. In the event that the partial surrender amount
exceeds the Subaccount value and/or the Fixed Account Value, we will process the
partial surrender for the amount available and contact you for further
instructions.
Under
Options A, B and C, we will reduce the Contract Value by the partial surrender
amount.
In
addition, for Option A, we will reduce the Specified Amount by the partial
surrender amount minus the excess, if any, of the death benefit over the
Specified Amount at the time the partial surrender is made. However, if the
partial surrender amount is less than or equal to the excess of the death
benefit over the Specified Amount, we will not reduce the Specified Amount. We
have the right to require that the Specified Amount remaining in force after any
partial surrender be at least equal to the minimum Specified Amount shown in
Section 1, Contract Data.
Certain
federal income tax consequences may apply to partial surrenders from the
contract. You should consult with your tax advisor before requesting any partial
surrenders.
7.10
Time Period for Payment
We will
normally pay out any surrender, partial surrender, loan or death benefit within
seven days of receiving your Written Notice or Written Request, or receipt and
filing of due proof of death. However, we have the right to suspend or delay the
date of any surrender, partial surrender, loan or death benefit payment from the
Subaccounts for any period during which:
(1) the
New York Stock Exchange is closed, other than customary weekend and holiday
closings, or trading on the New York Stock Exchange is restricted as determined
by the Securities and Exchange Commission; or
(2) the
Securities and Exchange Commission permits by an order the postponement for the
protection of contract Owners; or
(3) The
Securities and Exchange Commission determines that an emergency exists that
would make the disposal of securities held in the Variable Account or the
determination of the value of the Variable Account’s net assets not reasonably
practicable.
For any
surrender, partial surrender, loan or transfer from the Fixed Account, we have
the right to postpone making a payment to you for up to six months from the date
of Written Notice. If payment is not made within 30 days after receipt of
documentation necessary to complete the transaction (or such shorter period
required by a particular jurisdiction) we will add interest to the amount paid
from the date of receipt of documentation. We will determine this annual
interest rate but it will never be less than the rate required by the state in
which this Contract is delivered.
7.
11 Extended Term Insurance
If your
contract lapses, as described in Section 5.8, Grace Period, we will apply the
Cash Surrender Value to continue the Specified Amount and any
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additional
benefits provided by riders for a portion of the next month.
The
amount of extended term insurance is determined according to the coverage option
in effect as of the date insurance is extended under this option.
7.12
Basis of Computation
Guaranteed
values and reserves are based on the guaranteed interest rate and the mortality
table shown in Section 1, Contract Data.
Guaranteed
Fixed Account Values and reserves under this contract are
equal to, or greater than, the minimum values required by law of the state in
which your contract is delivered. Where required, we have filed a detailed
statement of the method of computing these values with the insurance department
of that state.
The
guaranteed Fixed Account Values are based on the minimum Fixed Account
guaranteed interest rate as shown in Section 1, Contract Data, and the
guaranteed maximum Cost of Insurance rates as described in Section 7.7, Cost of
Insurance.
Section
8: Loan Provisions
8.1
Contract Loans
You may
obtain a contract loan by submitting a Written Notice or Written Request to us.
This contract assigned to us is the only security needed.
When a
loan is made, we will transfer an amount equal to the loan from the Fixed and
Variable Accounts to the loan account. The loan account is part of the Fixed
Account, which is part of our general account. If you do not specify allocation
instructions in your loan application, we will withdraw the loan pro-rata from
all Subaccounts of the Variable Account having Subaccount values and from the
Fixed Account.
Xxxxxxx
transferred to the loan account do not participate in the investment experience
of the Fixed or Variable Account from which they were withdrawn. Amounts in the
loan account will earn interest at the minimum Fixed Account guaranteed interest
rate shown in Section 1, Contract Data. Different interest rates may be applied
to the loan account than the Fixed Account. Any interest credited on loaned
amounts will remain in the Fixed Account.
You may
repay your loan balance in full or in part while your contract is in force prior
to the death of the Insured. Repayments must be clearly marked as “loan
repayments” or we will credit them as premiums. Each loan repayment will result
in a transfer of an amount equal to the loan repayment from the loan account to
the Fixed and/or Variable Account. We will use your current premium allocation
schedule to allocate the loan repayments. We have the right to not accept
partial loan repayments for amounts less than $50.
A loan
balance that exists at the end of the grace period may not be repaid unless this
contract is reinstated.
8.2
Amount of Loan Available
The
amount of loan available will be equal to the Cash Surrender Value of the
contract less any loan interest to the next Contract Anniversary.
8.3
Loan Interest
We will
charge interest on any loan balance from the date of the loan at the rate shown
in Section 1, Contract Data. We may establish a lower rate for any period for
which the loan balance is outstanding.
Interest
is payable at the end of each Contract Year and on the date the loan balance is
repaid. If interest is not received by the Contract Anniversary we will transfer
the accrued loan interest from the Fixed and Variable Accounts to the loan
account on a pro-rata basis.
8.4
Loan Balance
Loan
balance means all unpaid contract loans and accrued loan interest. We will
deduct any outstanding loan balance from the contract Proceeds.
Your
contract is terminated whenever your Cash Surrender Value is no longer positive.
We will mail notice to your last known address recorded with us and to the
holder of any assignment of record at least 31 days before such
termination.
Section
9: Other Contract Provisions
9.1
Contract
This
contract, application and any supplemental applications are the entire contract.
This contract is issued in consideration of the application and payment of the
premiums. We will attach a copy of any application when we issue the contract
and will attach or endorse on the contract any supplemental applications when
the supplemental coverage becomes effective.
In the
absence of fraud, all statements made in any applications, either by you or by
the Insured, will be considered representations and not warranties. We may use
statements to contest a claim or the validity of this contract only if they are
contained in an application.
9.2
Incontestability
After
this contract has been in force during the Insured’s lifetime for two years from
the Contract Date, we cannot contest this contract, except if the contract
lapses as described in Section 5.8, Grace Period.
We will
not contest any increase in the Specified Amount after the increase has been in
force during
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the
Insured’s lifetime for two years following the effective date of the
increase.
9.3
Suicide
If the
Insured dies by suicide, while sane or insane, within two years of the Contract
Date, the amount payable by us will be equal to the Contract Value less any loan
balance.
If the
Insured dies by suicide, while sane or insane, within two years after the
effective date of any increase in the Specified Amount, the amount payable by us
associated with such increase will be limited to the Cost of Insurance
associated with the increase.
9.4
Age and Sex
If, while
this contract is in force and the Insured is alive, it is determined that the
Age or sex of the Insured as stated in Section 1, Contract Data, is not correct,
we will adjust the Contract Value under this contract. The adjustment will be
the difference between the following two amounts accumulated at the Fixed
Account guaranteed interest rate annually. The two amounts are:
(1) the
Cost of Insurance deductions that have been made; and
(2) the
Cost of Insurance deductions that would have been made at the correct Age and
sex.
If, after
the death of the Insured and while this contract is in force, it is determined
that the Age or sex of the Insured as stated in Section 1, Contract Data, is not
correct, the death benefit will be the net amount at risk that the most recent
Cost of Insurance deductions at the correct Age and sex would have provided,
plus the Contract Value on the date of death, less any loan
balance.
9.5
Termination of Coverage
Coverage
under this contract terminates when any of the following events
occur:
(1) you
request that coverage terminate;
(2) the
Insured dies; or
(3) the
contract lapses, as described in Section 5.8, Grace Period, and the grace period
ends without sufficient premiums being paid.
9.6
Modifications
Upon
notice to you, we may modify the contract, but only if such modification is
necessary to:
(1) make
the contract or the Variable Account comply with any law or regulation issued by
a governmental agency to which we are subject; or
(2) assure
continued qualification of the contract under the Internal Revenue Code or other
federal or state laws relating to variable life contracts; or
(3) reflect
a change in the operation of the Variable Account; or
(4) provide
additional Fixed and/or Variable Account accumulation options.
We have
the right to modify the contract as necessary to attempt to prevent the contract
Owner from being considered the Owner of the assets of the Variable Account. In
the event of any such modification, we will issue an appropriate endorsement to
the contract, if required.
9.7
Nonparticipating
This
contract is nonparticipating. It will not participate in any of our profits,
losses or surplus earnings.
9.8
Annual Report
At least
annually we will send you a report showing the following:
(1) the
Contract Value;
(2) the
Cash Surrender Value; and
(3) any
other information required by law or regulation.
Upon
receiving your Written Notice or Written Request, we will send you a report at
any other time during the year for a reasonable charge as determined by
us.
Section
10: Control of Contract
10.1
Ownership
The
Insured is the Owner unless otherwise provided in the application. As Owner, you
may exercise every right provided by your contract. These rights and privileges
end at the Insured's death.
We
require the consent of the Beneficiary to exercise these rights if you have
waived the right to change the Beneficiary.
10.2
Change of Ownership
You may
change the ownership of this contract while the Insured is alive. You must give
Written Notice to us at our home office. The change will be effective on the
date your request was signed but will have no effect on any payment made or
other action taken by us before we receive it. We may require that you submit
the contract for endorsement to show the change.
10.3
Assignment
An
assignment is a transfer of some or all of your rights under this contract. No
assignment will be binding on us unless made in writing and filed at our Home
Office. We assume no responsibility for the validity or effect of any
assignment.
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10.4
Beneficiary
The
Beneficiary is shown on the application or in the last Beneficiary designation
filed with us.
We will
pay death Proceeds to the Beneficiary except as provided in this
section.
If any
Beneficiary dies before the Insured, that Beneficiary's interest will pass to
any other beneficiaries according to their respective interests.
If all
beneficiaries die before the Insured, we will pay the death Proceeds to you, if
living, otherwise to your estate or legal successors.
Unless
you have waived the right to do so, you may change the Beneficiary by filing a
Written Request in a form satisfactory to us. In order to be effective, you must
sign the Written Request for change of Beneficiary while your contract is in
force and the Insured is living. The change will be effective on the date your
request was signed but will have no effect on any payment made or other action
taken by us before we receive it.
The
interest of any Beneficiary will be subject to:
(1) any
assignment of this contract which is binding on us; and
(2) any
optional settlement agreement as described in Section 13, Payment of Proceeds,
which is in effect at the Insured's death.
10.5
Simultaneous Death of Beneficiary and Insured
We will
pay death Proceeds as though the Beneficiary died before the Insured
if:
(1) the
Beneficiary dies at the same time as, or within 15 days of, the Insured's death;
and
(2) we
have not paid the Proceeds to the Beneficiary within this 15-day
period.
Section
11: The Variable Account
11.1
General Description
The name
of the Variable Account is the Kansas City Life Variable Life Separate Account.
The income, gains and losses (whether or not realized) from assets allocated to
the Variable Account are credited or charged against the Variable Account
without regard to our other income, gains or losses. The portion of the assets
of the Variable Account equal to the reserves and other contract liabilities
with respect to the Variable Account will not be chargeable with liabilities
arising out of any other business we may conduct.
The
assets of the Variable Account are segregated by investment options, thus
establishing a series of Subaccounts within the Variable Account.
When
permitted by law, we reserve the right to:
(1) create
new separate accounts;
(2) combine
separate accounts;
(3) remove,
combine or add Subaccounts and make the new Subaccounts available to you at our
discretion;
(4) substitute
shares of another portfolio of the funds or shares of another investment company
for those of the funds;
(5) add
new portfolios to the funds;
(6) deregister
the Variable Account under the Investment Company Act of 1940 if registration is
no longer required;
(7) make
any changes required by the Investment Company Act of 1940; and
(8) operate
the Variable Account as a managed investment company under the Investment
Company Act of 1940 or any other form permitted by law.
If a
change is made, we will send you a revised prospectus and any notice required by
law. If required, we would first seek the approval of the Securities and
Exchange Commission, and when required, the appropriate state regulatory
authorities before making a change in the investment options.
11.2
Subaccounts
The
Subaccounts are separate investment accounts that together make up the Variable
Account. The assets of each Subaccount are invested in a corresponding portfolio
of a designated mutual fund. They are named in Section 1, Contract
Data.
Subaccount
values will fluctuate in accordance with the investment experience of the
applicable portfolio of the fund held within the Subaccount.
The
Subaccount value is equal to the number of Accumulation Units credited to the
Subaccount times the appropriate Accumulation Unit value.
The
number of Accumulation Units to be purchased or redeemed in a transaction is
found by dividing:
(1) the
dollar amount of the transaction; by
(2) the
Subaccount’s unit value for the Valuation Period for that
transaction.
The
number of units in any Subaccount will be increased at the end of the Valuation
Period by:
(1) any
Net Premiums allocated to the Subaccount during the current Valuation Period;
and
(2) any
transfers to the Subaccount from another Subaccount or from the Fixed Account
during the current Valuation Period.
The
number of units in any Subaccount will be decreased at the end of the Valuation
Period by:
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(1) any
amounts transferred from the Subaccount to another Subaccount or the Fixed
Account;
(2) amounts
surrendered during the current Valuation Period.
The
number of units in any Subaccount will also be reduced on each Monthly
Anniversary Day by a pro-rata share of the Monthly Deduction. The Monthly
Deduction will reduce the Subaccount units in proportion to each Subaccount’s
value to the entire Contract Value.
The value
of an Accumulation Unit for each of the Subaccounts was arbitrarily set at $10
when the first investments were bought. The value for any later Valuation Period
is equal to:
A x
B
“A”
is equal to the Subaccount’s Accumulation Unit value for the end of the
immediately preceding Valuation Day.
“B” is
equal to the Net Investment Factor for the most current Valuation
Day.
The Net
Investment Factor equals:
X
|
-
|
Z
|
Y
|
“X”
equals the sum of:
(1) the
net asset value per Accumulation Unit held in the Subaccount at the end of the
current Valuation Day; plus
(2) the
per Accumulation Unit amount of any dividend or capital gain distribution on
shares held in the Subaccount during the current Valuation Day;
less
(3) the
per Accumulation Unit amount of any capital loss distribution on shares held in
the Subaccount during the current Valuation Day; less
(4) the
per Accumulation Unit amount of any taxes or any amount set aside during the
Valuation Day as a reserve for taxes.
“Y”
equals the net asset value per Accumulation Unit held in the Subaccount as of
the end of the immediately preceding Valuation Day.
“Z”
equals the charges deducted from the Subaccount on each Valuation Day for the
Mortality and Expense Risk Charge.
We deduct
the Mortality and Expense Risk Charge from each of the Subaccounts on each
Valuation Day. This charge compensates us for assuming the mortality and expense
risks under this contract. These charges are shown in Section 1, Contract
Data.
The value
of a Subaccount may increase, decrease or remain the same.
11.3
Allocations
This
contract provides investment options for the amount in the Contract Value. The
initial premium allocation percentages are indicated in the application for this
contract. These percentages will also apply to subsequent premium allocations
until you change them. Such allocation percentages may be changed by Written
Notice.
Allocation
percentages must be zero or a whole number not greater than 100. The sum of the
premium allocation percentages must equal 100.
We have
the right to limit the number of Subaccount allocations in effect at any one
time.
On the
Allocation Date we will allocate the Contract Value to a money market
Subaccount. We will also allocate any subsequent premiums that are received from
this time until the Reallocation Date to a money market Subaccount. On the
Reallocation Date, Contract Value in the money market Subaccount
will be allocated to the Subaccounts and to the Fixed Account based on the
premium Payment allocation percentages in the contract application. After the
Reallocation Date, planned periodic premiums and unscheduled premiums will be
allocated as requested on the Valuation Day they are received by the Home
Office.
Section
12: Transfers
12.1
Transfer Fees
Six
transfers per year may be made from Subaccounts and the Fixed Account free of
charge. Any unused free transfers do not carry over to the next Contract Year.
We will charge a $25 transfer fee on any additional transfers during a Contract
Year. For the purpose of assessing a fee, we consider each Written Notice or
Written Request, or telephone request to be one transfer. We will deduct the
processing fee from the amount being transferred, or from the remaining Contract
Value, according to your instructions.
12.2
Transfers From Subaccounts
After the
right to examine period and Reallocation Date, you may transfer all or a part of
the value in any Subaccount of the Variable Account to one or more of the
Subaccounts of the Variable Account or to the Fixed Account. The minimum amount
that you may transfer is the lesser of:
(1) $250;
or
(2) the
total value in that Subaccount on that date.
We will
treat any transfer that would reduce the amount in a Subaccount below $250 as a
transfer request for the entire amount in that Subaccount.
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A
transfer fee may apply as described in Section 12.1, Transfer Fees.
An
excessive number of transfers, including short-term “market timing” transfers,
may adversely affect the performance of the underlying fund in which a
Subaccount invests. If, in our sole opinion, a pattern of excessive transfers
develops, we have the right not to process a transfer request. We also have the
right not to process a transfer request when the sale or purchase of shares of a
fund is not reasonably practicable due to actions taken or limitations imposed
by the fund.
We may
suspend or modify this transfer privilege at any time.
12.3
Transfers From the Fixed Account
At your
request, you may transfer an amount from the unloaned value in the Fixed Account
to one or more Subaccounts of the Variable Account. We must receive the request
in writing or other form acceptable to us. You may make only one transfer from
the Fixed Account each Contract Year.
The
maximum amount you may transfer from the Fixed Account each Contract Year will
be the greatest of:
(1) 25%
of the unloaned Fixed Account Value, unless the balance after the transfer is
less than $250, in which case the entire amount will be
transferred;
(2) $2,000,
or the unloaned Fixed Account Value, if less; or
(3) the
amount transferred from of the Fixed Account the previous Contract
Year.
A
transfer fee may apply as described in Section 12.1, Transfer Fees.
We may
suspend or modify this transfer privilege at any time.
Section
13: Payment of Proceeds
13.1
Payment Options
You may
apply Proceeds of $2,000 or more which are payable under this contract to any of
the following options:
Option
1: Interest Payments
We will
make interest payments to the payee annually or monthly as elected. We will pay
interest on the Proceeds at the guaranteed rate of 1.50% per year and we may
increase this by additional interest paid annually. You may withdraw the
Proceeds and any unpaid interest in full at any time.
Option
2: Installments of a Specified Amount
We will
make annual or monthly payments until the Proceeds plus interest are fully paid.
We will pay interest on the Proceeds at the guaranteed rate of 1.50% per year
and we may increase this by additional interest. You may withdraw the present
value of any unpaid installments at any time.
Option
3: Installments for a Specified Period
We will
pay the Proceeds in equal, annual or monthly payments for a specified number of
years. We will pay interest on the Proceeds at the guaranteed rate of 1.50% per
year and we may increase this by additional interest. You may withdraw the
present value of any unpaid installments at any time. The amount of each payment
is shown in Table A.
Option
4: Life Income
We will
pay an income during the payee's lifetime. A minimum guaranteed payment period
may be chosen. We will continue payments under the Installment Refund Option
until the total income payments equal the Proceeds applied. The amount of each
payment is shown in Table B.
Option
5: Joint and Survivor Income
We will
pay an income during the lifetime of two persons and will continue to pay the
same income as long as either person is living. The minimum guaranteed payment
period will be ten years. The amount of each payment is shown in Table
C.
If the
payout rates in use by us at the time Proceeds become payable are more favorable
than those shown in Tables B and C, we will provide a life income using the more
favorable rates.
13.2
Payee
The payee
is the person receiving Proceeds under a settlement option. The payee can be
you, the Insured or a Beneficiary. We will require satisfactory proof of the
payee's Age under Options 4 and 5.
The
contingent payee is the person named to receive Proceeds if the payee is not
alive.
13.3
Minimum Payments
The
payment under any settlement option must be at least $25. We may make payments
less frequently so that each payment is at least $25.
13.4
Choice of Options
You may
choose an option by Written Notice during the Insured's lifetime. If a
settlement option is not in effect at the Insured's death, a choice may be made
by the Beneficiary.
13.5
Availability of Options
We have
the right to restrict these options if you designate an executor, administrator,
trustee, corporation, partnership or association as the payee.
13.6
Operative Date
The first
payment will be payable on the payment mode following the date Proceeds become
payable.
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13.7
Death of Payee
At the
death of the payee, we will pay any payments remaining according to the terms of
the settlement option chosen, unless the contingent payee elects in writing to
receive the present value of any remaining guaranteed payments in a single
sum.
If a
contingent payee has not been named or does not survive the payee, we will pay
the following amounts in one sum to the estate of the payee:
(1) any
amount left on deposit under Option 1; and
(2) the
present value of any remaining guaranteed payments under Options 2 through
5.
If you
have not named a contingent payee, or if every contingent payee named by you
dies before the payee, you may, by Written Notice to us, name a new contingent
payee. The new contingent payee will receive any amount that would otherwise
have been payable to the payee's estate.
13.8
Claims of Creditors
To the
extent permitted by law, Xxxxxxxx will not be subject to any claims of a payee's
creditors.
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TABLE
A - INSTALLMENT OPTION*
for each
$1,000 of Proceeds Applied
Term
of Years
|
Annual
|
Monthly
|
Term
of Years
|
Annual
|
Monthly
|
Term
of Years
|
Annual
|
Monthly
|
1
|
$1000.00
|
$84.47
|
11
|
97.83
|
8.21
|
21
|
55.04
|
4.62
|
2
|
503.72
|
42.26
|
12
|
90.33
|
7.58
|
22
|
52.91
|
4.44
|
3
|
338.31
|
28.39
|
13
|
83.98
|
7.05
|
23
|
50.97
|
4.28
|
4
|
255.61
|
21.45
|
14
|
78.55
|
6.59
|
24
|
49.19
|
4.13
|
5
|
206.00
|
17.28
|
15
|
73.84
|
6.20
|
25
|
47.55
|
3.99
|
6
|
172.93
|
14.51
|
16
|
69.72
|
5.85
|
26
|
46.04
|
3.86
|
7
|
149.32
|
12.53
|
17
|
66.09
|
5.55
|
27
|
44.65
|
3.75
|
8
|
131.61
|
11.04
|
18
|
62.86
|
5.27
|
28
|
43.35
|
3.64
|
9
|
117.84
|
9.89
|
19
|
59.98
|
5.03
|
29
|
42.15
|
3.54
|
10
|
106.83
|
8.96
|
20
|
57.38
|
4.81
|
30
|
41.02
|
3.44
|
TABLE
B - LIFE INCOME OPTIONS*
Monthly
Income for each $1,000 of Proceeds Applied
Age
|
MALE
Minimum
Guaranteed Payment Period
|
FEMALE
Minimum
Guaranteed Payment Period
|
||||||
None
|
120
Months
|
240
Months
|
Installment
Refund
|
None
|
120
Months
|
240
Months
|
Installment
Refund
|
|
50
|
$3.01
|
$2.99
|
$2.92
|
$2.75
|
$2.77
|
$2.76
|
$2.73
|
$2.62
|
51
|
3.07
|
3.05
|
2.97
|
2.80
|
2.83
|
2.82
|
2.78
|
2.66
|
52
|
3.14
|
3.12
|
3.03
|
2.85
|
2.89
|
2.87
|
2.83
|
2.70
|
53
|
3.21
|
3.19
|
3.08
|
2.90
|
2.95
|
2.93
|
2.88
|
2.75
|
54
|
3.29
|
3.26
|
3.14
|
2.95
|
3.01
|
3.00
|
2.94
|
2.80
|
55
|
3.37
|
3.34
|
3.20
|
3.00
|
3.08
|
3.06
|
3.00
|
2.85
|
56
|
3.45
|
3.42
|
3.27
|
3.06
|
3.15
|
3.13
|
3.05
|
2.90
|
57
|
3.54
|
3.50
|
3.33
|
3.11
|
3.23
|
3.21
|
3.12
|
2.95
|
58
|
3.64
|
3.59
|
3.39
|
3.17
|
3.31
|
3.28
|
3.18
|
3.01
|
59
|
3.74
|
3.68
|
3.46
|
3.23
|
3.39
|
3.36
|
3.24
|
3.06
|
60
|
3.85
|
3.78
|
3.52
|
3.30
|
3.48
|
3.45
|
3.31
|
3.12
|
61
|
3.96
|
3.88
|
3.59
|
3.36
|
3.58
|
3.54
|
3.38
|
3.19
|
62
|
4.08
|
3.99
|
3.65
|
3.43
|
3.68
|
3.63
|
3.45
|
3.25
|
63
|
4.21
|
4.11
|
3.72
|
3.51
|
3.79
|
3.73
|
3.52
|
3.32
|
64
|
4.35
|
4.23
|
3.79
|
3.58
|
3.90
|
3.84
|
3.59
|
3.39
|
65
|
4.50
|
4.35
|
3.85
|
3.66
|
4.02
|
3.95
|
3.66
|
3.47
|
66
|
4.66
|
4.48
|
3.91
|
3.74
|
4.15
|
4.07
|
3.74
|
3.54
|
67
|
4.83
|
4.62
|
3.97
|
3.83
|
4.29
|
4.19
|
3.81
|
3.63
|
68
|
5.01
|
4.76
|
4.03
|
3.91
|
4.44
|
4.33
|
3.88
|
3.71
|
69
|
5.20
|
4.91
|
4.08
|
4.00
|
4.60
|
4.46
|
3.94
|
3.80
|
70
|
5.41
|
5.06
|
4.13
|
4.10
|
4.78
|
4.61
|
4.01
|
3.89
|
71
|
5.62
|
5.22
|
4.18
|
4.20
|
4.96
|
4.76
|
4.07
|
3.99
|
72
|
5.85
|
5.38
|
4.23
|
4.30
|
5.17
|
4.93
|
4.13
|
4.09
|
73
|
6.10
|
5.54
|
4.26
|
4.41
|
5.39
|
5.09
|
4.18
|
4.19
|
74
|
6.36
|
5.71
|
4.30
|
4.52
|
5.62
|
5.27
|
4.23
|
4.30
|
75
|
6.65
|
5.88
|
4.33
|
4.63
|
5.88
|
5.45
|
4.27
|
4.42
|
TABLE
C - JOINT AND SURVIVOR OPTION*
Monthly
Income - Ten Year Guaranteed Payment Period for each $1,000 of Proceeds
Applied
Male
Age
|
Female
Age
|
|||||
50
|
55
|
60
|
65
|
70
|
75
|
|
50
|
$2.52
|
$2.64
|
$2.75
|
$2.83
|
$2.89
|
$2.94
|
55
|
2.76
|
2.92
|
3.05
|
3.16
|
3.24
|
|
60
|
3.07
|
3.28
|
3.45
|
3.59
|
||
65
|
3.49
|
3.76
|
3.99
|
|||
70
|
4.04
|
4.41
|
||||
75
|
4.78
|
*Amounts
not shown for available options will be furnished on request.
J176
22
![]() |
|
Life
Insurance Contract - Nonparticipating
|
|
Adjustable
death benefit. Death Proceeds payable at death of Insured. Flexible
premiums payable until prior to the death of Insured.
|
|
If
you have any questions concerning this contract or if anyone suggests that
you change or replace this contract, please contact your Kansas City Life
agent or the Home Office of the
Company.
|
J176
23