[Ameritas Life Insurance Corp. Logo]
5900 "O" Street
Lincoln, NE 68510
402-467-1122
December 17, 2009
Via EDGAR and Overnight Mail
Michelle Roberts, Senior Counsel
Office of Insurance Products
Division of Investment Management
Securities and Exchange Commission
100 F Street NE
Washington, D.C. 20549
Re: Ameritas Life Insurance Corp. ("Ameritas" or "Depositor") and
Ameritas Variable Separate Account VA-2, 1940 Act No. 811-05192
("Separate Account" or "Registrant")
OVERTURE Medley! Flexible Premium Deferred Variable Annuity, 1933 Act
No. 333-142483
Post-Effective Amendment No. 9 on Form N-4 Pursuant to Rule 485(a)
Response to Commission Staff Comments
Dear Ms. Roberts:
This letter is in response to Commission staff review comments received by
telephone on November 30 and December 10-11, 2009, for the above-referenced
amendment filed October 30, 2009. We attached selected pages from the prospectus
showing revisions related to these comments and responses. We also plan to file
a Rule 485(b) post-effective amendment with the revisions on or about December
22, 2009.
1. Cover Page. You commented that we should use the product's 1933 Act
registration number when providing the SEC source for the statement of
additional information.
Response: We reinserted the product's 1933 Act registration number in this
paragraph and on the Last Page.
2. Cover Page. You asked if the disclaimer "NO BANK GUARANTEE" indicated this
product was sold primarily through banks.
Response: As we discussed, this variable product is primarily sold by
registered representatives and through other marketing channels, which may
include offices at banks. The text is standard and we made no revision.
3. Page 2: You mentioned a typographical error, that the word "premium" should
be plural.
Response: We revised so that the word is now "premiums."
4. Page 5: You commented that ANNUAL FEES AND EXPENSES, ANNUAL POLICY FEES,
uses the phrase "Policy Anniversary" and questioned whether the phrase
should have the word "year" added.
Response: As we discussed on November 30th, the terms "Policy Year" and
"Policy Anniversary" are defined terms (under the same heading on page 3).
Sometimes the term "Policy Year" is used and in other instances, such as
this, "Policy Anniversary" is more appropriate. Therefore, we revised all
uses of the phrase "Policy Year anniversary," which had been used on pages
6 and 12 of the prospectus, to the term "Policy Anniversary."
5. Page 6. You commented that in the CHARGES section for optional riders, the
Minimum Initial Premium Rider waiver description did not match the TSA
Minimum Initial Premium Rider waiver description, and asked whether these
should be the same.
Response: After review with our actuary, we revised the Minimum Initial
Premium Rider waiver description to match the TSA Minimum Initial Premium
Rider waiver description by changing it to read "Waived once Policy value
is at least $50,000 on a Policy Anniversary."
6. Pages 10-11. You commented that maximum expenses in the Examples charts use
the Expanded Estate Protection Benefit ("EEPB") fees for Issue Ages 0-70,
but the fees for the EEDP are higher for Issue Ages 71-80. Therefore we
should use fees for Issue Ages 71-80 as the maximum expenses, but we may
disclose in notes that EEPB fees are less for owners who purchase the
policy at typical Issue Ages 0-70.
Response: We revised the Examples charts to include EEPB fees for Issue
Ages 71-80. We also revised the applicable footnotes to the charts and
added a parenthetical stating "(EEPB fees are less for typical Policy
Owners who are Issue Ages 0-70)." Also as the result of this comment, on
prospectus page 6, we adjusted the Total Cost of Highest Combination of
Optional Fees to reflect EEPB fees for Issue Ages 71-80 and revised the
accompanying footnote to disclose the changed information.
7. Page 12. You commented that the "Optional Free Withdrawal Riders" section
second and fourth paragraphs use the term "as long as the Policy is in
force," and requested that we state whether these riders can or cannot be
cancelled.
Response: We revised this section by deleting the sentence about "policy in
force" at the end of the second paragraph and adding further explanation
for those riders that may not be cancelled and will terminate when the
policy terminates. We also separated out the reference to the TSA Hardship
Waiver Rider for more clarification.
8. Page 13. You noted that a sentence regarding the TSA loan option was
deleted on this page, but retained in a previous footnote.
Response: The sentence on page 13 was deleted in error. We reinserted it.
9. Page 13. You mentioned that discussion about Guaranteed Lifetime Withdrawal
Benefit ("GLWB") Charge stated "when the rider is inactive" and asked that
we explain or cross-reference.
Response: We added further explanation regarding the GLWB rider charges,
consistent with text included in Post-Effective Amendment No. 8 to
Registration No. 333-120972, filed October 30, 2009. We also changed the
word "inactive" to "in the Inactive Phase," since use of the defined term
is more precise and is consistent with the further explanation of the
rider.
10. Page 14. You commented that the Separate Account Variable Investment
Options section discussion of responsibilities under the Policy should
better define the Depositor's obligations, specifically regarding claims
paying ability.
Response: We modified the phrase "We are responsible to you for meeting the
obligations of the Policy," by adding text stating "which are subject to
the claims paying ability of our general account." This is consistent with
disclosure previously provided in the GLWB Rider section of the prospectus.
11. Page 18. You commented that in the phrase "greatest amount of any similar
transfer," we should clarify the meaning of the word "similar."
Response: We replaced the word "similar" with the term "non-systematic," as
providing a more precise description of the previous transfer amount that
should be compared.
12. Part C. You provided the following two comments for Part C:
a. On the Exhibits list (Item 24(b) of Form N-4), we should identify the
exhibits that are submitted with the filing by stating "Filed Herein."
Response: We will identify exhibits to future filings we submit by adding
the notation "Filed Herein," where applicable, to the Item 24(b) Exhibits
list. (We will also use the same convention for Form N-6 Part C Item 26 on
future variable life filings submitted under Rule 485.)
b. We should show the post-effective amendment for each Power of Attorney
referenced on the Signatures page. This may be accomplished by:
i. If on the Exhibits list: Show officer and director names in the
applicable footnote(s); or
ii. If on the Signatures page: Show cross-references to the
applicable post-effective amendment filing and amendment numbers
in the footnotes on this page.
Response: We will specify the applicable post-effective amendment for each
Power of Attorney referenced on the Signatures page of future variable
product filings submitted under Rule 485.
In addition, as we discussed by telephone on December 10-11, after we filed the
above-referenced Post-Effective Amendment No. 9 on October 30th, our Company's
lead actuary determined that current charge increases for four riders could be
less than the rates submitted for review. Therefore, we are reducing the
proposed increases to current charges for the No Withdrawal Charge Rider (page
5) and three TSA NO WITHDRAWAL CHARGE RIDERS (page 6).
Also, unlike the Rule 485(a) filing where we incorporated by reference the
statement of additional information ("SAI"), including the financial statements,
we will include an updated SAI in the Rule 485(b) post-effective amendment.
Therefore, on the Cover Page and Last Page, we are revising the effective date
of the SAI. The only changes that we anticipate to the SAI are to revise the
effective dates at the top of page 1 and to update the financial statements of
the Depositor for the subsequent event.
We acknowledge: that the separate account is responsible for the adequacy and
accuracy of the disclosure in the filings; staff comments or changes to
disclosure in response to staff comments in the filings reviewed by the staff do
not foreclose the Commission from taking any action with respect to the filing;
and the separate account may not assert staff comments as a defense in any
proceeding initiated by the Commission or any person under the federal
securities laws of the United States.
If you have any questions or comments concerning this filing, please telephone
me at 402-467-7894, or our lead securities attorney, Ann Diers, at 402-467-7847.
Thank you for your assistance.
Sincerely,
/s/ Sally R. Bredensteiner
Sally R. Bredensteiner
Assistant Counsel
Attachments
PROSPECTUS: December 31, 2009
[Ameritas Life Insurance Corp. Logo]
A UNIFI Company
Overture Medley (R)
Flexible Premium
Deferred Variable Annuity Policy
Ameritas Variable Separate Account VA-2
--------------------------------------------------------------------------------
This prospectus describes the Policy, especially its Separate Account.
The Policy is designed to help you, the Policy Owner, invest on a tax-deferred
basis and meet long-term financial goals. It provides a menu of optional riders
for you to select from to meet your particular needs; ask your sales
representative or us which of these are available in your state. As an annuity,
it also provides you with several ways to receive regular income from your
investment. An initial minimum payment is required. Further investment is
optional.
You may allocate all or part of your investment among variable
investment options (where you have the investment risk, including possible loss
of principal) with allocated indirect interests in these non-publicly traded
portfolios*:
AIM V.I. Series I DWS VS II Class A SUMMIT**
Dynamics Dreman Small Mid Value VIP Summit EAFE International Index - Class I
Global Real Estate Global Thematic VIP Summit Inflation Protected Plus
International Growth FIDELITY (R) Service Class 2 Summit Lifestyle ETF Aggressive
ALGER Class O Asset Manager SM Summit Lifestyle ETF Conservative
Balanced Asset Manager: Growth (R) Summit Lifestyle ETF Target
AMERICAN CENTURY VP Class I Contrafund (R) Summit Nasdaq-100 Index
Income & Growth Equity-Income Summit Natural Resources
Mid Cap Value Growth Summit Russell 2000 Small Cap Index - Class I
CALVERT VARIABLE SERIES** High Income Summit S&P 500 Index
Ameritas Core Strategies Investment Grade Bond Summit S&P MidCap 400 Index - Class I
Ameritas MidCap Growth Mid Cap Summit Zenith
Ameritas MidCap Value Overseas T. ROWE PRICE
Ameritas Money Market MFS(R) VIT Initial Class Blue Chip Growth-II
Ameritas Small Capitalization New Discovery THIRD AVENUE
Ameritas Small Company Equity Research International Value
Income Strategic Income UIF Class I
Social Balanced Total Return Emerging Markets Equity
Social Equity Utilities Global Value Equity
Social International Equity NEUBERGER BERMAN AMT Class I International Magnum
DREYFUS Service Shares Regency U.S. Real Estate
MidCap Stock PIMCO VIT Administrative Class
Total Return
* Short cites are used in this list. "Investment Options" uses complete
Fund and Portfolio names.
** Affiliates. See note in "Investment Options" section.
or you may allocate part of your investment to a Fixed Account fixed interest
rate option (where we have the investment risk and guarantee a certain return on
your investment).
The Policy includes a Guaranteed Lifetime Withdrawal Benefit ("GLWB")
rider, which if activated, guarantees a series of annualized withdrawals from
your Policy, regardless of the Policy value, until the death of the last
surviving Covered Person. Policy expenses are higher when the GLWB is activated
and if other optional riders are selected.
A Statement of Additional Information, dated December 31, 2009, and other
information about us and the Policy is on file with the Securities and Exchange
Commission ("SEC") and is incorporated into this prospectus by reference. For a
free copy, access it on the SEC's web site (www.sec.gov, select "Search for
Company Filings," select "file number," then type "333-142483"), or write or
call us. The Table of Contents for the Statement of Additional Information is on
the last page of this prospectus.
Please Read this Prospectus Carefully and Keep It for Future Reference. It
provides information you should consider before investing in a Policy.
Prospectuses for the portfolios underlying the Subaccount variable investment
options are available without charge from your sales representative or from our
Service Center.
The SEC does not pass upon the accuracy or adequacy of this prospectus,
and has not approved or disapproved the Policy. Any representation
to the contrary is a criminal offense.
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
Ameritas Life Insurance Corp. (we, us, our, Ameritas)
Service Center, P.O. Box 82550, Lincoln, Nebraska 68501.
1-800-745-1112. www.ameritas.com
Contacting Us. To answer your questions or to send additional premiums, contact
your sales representative or write or call us at:
Ameritas Life Insurance Corp.
Service Center
P.O. Box 82550
Lincoln, Nebraska 68501
Or
5900 "O" Street
Lincoln, Nebraska 68510
Telephone: 1-800-745-1112
Fax: 1-402-467-7335
Interfund Transfer Request Fax:
1-402-467-7923
www.ameritas.com
Express mail packages should be sent to our street address, not our P.O. Box
address.
Remember, the Correct Form of Written Notice "in good order" is important for us
to accurately process your Policy elections and changes. Many forms can be found
on the on-line services section of our web site. Or, call us at our toll-free
number and we will send you the form you need and tell you the information we
require.
Facsimile Written Notice. To provide you with timely service, we accept some
Written Notice by facsimile. However, by not requiring your original signature,
there is a greater risk unauthorized persons can manipulate your signature and
make changes on your Policy (including withdrawals) without your knowledge. We
are entitled to act upon facsimile signatures that reasonably appear to us to be
genuine.
Make checks payable to:
"Ameritas Life Insurance Corp."
TABLE OF CONTENTS Begin on Page
--------------------------------------------------------------------------------
DEFINED TERMS.........................................................3
POLICY OVERVIEW.......................................................3
Policy Operation 4
Tax-Qualified Plans 4
CHARGES...............................................................5
Examples of Expenses 9
FINANCIAL INFORMATION................................................11
Accumulation Unit Values 11
Financial Statements 11
CHARGES EXPLAINED....................................................11
Withdrawal Charge 11
Mortality and Expense Risk Charge 12
Administrative Charges 12
Transfer Fee 12
Tax Charges 13
403(b) Tax Sheltered Annuity Charges 13
Fees Charged by the Portfolios 13
Value+ Option Charge 13
Guaranteed Lifetime Withdrawal Benefit ("GLWB") Charge 13
Other Optional Rider Charges 13
Waiver of Certain Charges 13
INVESTMENT OPTIONS...................................................14
Separate Account Variable Investment Options 14
Fixed Account Investment Option 17
Transfers 17
Third Party Services 18
Disruptive Trading Procedures 18
Systematic Transfer Programs 19
Model Asset Allocation Program 20
IMPORTANT POLICY PROVISIONS..........................................23
Policy Application and Issuance 23
Your Policy Value 24
Telephone Transactions 25
Death of Annuitant 25
Delay of Payments 25
Beneficiary 25
Minor Owner or Beneficiary 26
Policy Changes 26
Policy Termination 26
Optional Riders 26
POLICY DISTRIBUTIONS.................................................27
Withdrawals 27
Loans (403(b) Plans Only) 28
Death Benefits 29
Annuity Income Benefits 34
GLWB Rider 35
FEDERAL INCOME TAX MATTERS...........................................40
MISCELLANEOUS........................................................42
About Our Company 42
Distribution of the Policies 42
Voting Rights 42
Legal Proceedings 42
APPENDIX A: Accumulation Unit Values................................A-1
APPENDIX B: Tax-Qualified Plan Disclosures..........................B-1
IMSA..................................................Last Page
Statement of Additional Information Table of Contents.Last Page
Overture Medley (R) -2-
CHARGES
--------------------------------------------------------------------------------
(x= Base Policy; y = Optional Fee)
-----------------------------------
The following tables describe the fees and expenses that you will pay
when buying, owning, and surrendering the Policy. The first table describes the
fees and expenses that you will pay at the time that you buy the Policy,
surrender the Policy, or transfer Policy value between investment options. We
may increase CURRENT FEES, but we guarantee that each CURRENT FEE will never
exceed the corresponding GUARANTEED MAXIMUM FEE.
--------------------------------------------------------------------------------------------------------------------
TRANSACTION FEES
--------------------------------------------------------------------------------------------------------------------
Guaranteed Maximum Withdrawal Charges
--------------------------------------------------------------------------------------------------------------------
PREMIUM WITHDRAWAL CHARGES (1) Years since receipt of premium:
(deducted as a % of each premium withdrawn)
-------------------------------------------------------- ----- ----- ----- ----- ----- ---- ----- ----- ----- ------
1 2 3 4 5 6 7 8 9 10+
-------------------------------------------------------- ----- ----- ----- ----- ----- ---- ----- ----- ----- ------
x 9-Year Base Policy Withdrawal Charge 8% 8% 8% 7% 7% 6% 5% 4% 2% 0%
-------------------------------------------------------- ----- ----- ----- ----- ----- ---- ----- ----- ----- ------
y 7-Year Withdrawal Charge Rider 7% 6% 5% 4% 3% 2% 1% 0% - -
-------------------------------------------------------- ----- ----- ----- ----- ----- ---- ----- ----- ----- ------
y 5-Year Withdrawal Charge Rider 7% 7% 6% 4% 2% 0% - - - -
-------------------------------------------------------- ----- ----- ----- ----- ----- ---- ----- ----- ----- ------
Y No Withdrawal Charge Rider 0% - - - - - - - - -
-------------------------------------------------------- ----- ----- ----- ----- ----- ---- ----- ----- ----- ------
y 403(b) TSA Endorsement 7 Year Withdrawal Charge 8% 8% 8% 7% 6% 5% 3% 0% - -
-------------------------------------------------------- ----- ----- ----- ----- ----- ---- ----- ----- ----- ------
-------------------- --------------------
Guaranteed
Maximum Current Fees
Fees
-------------------------------------------------------------------------------- -------------------- --------------------
TRANSFER FEE (per transfer)
x First 15 transfers per Policy Year NONE NONE
x Over 15 transfers in one Policy Year, we may charge $10 $10
-------------------------------------------------------------------------------- -------------------- --------------------
STATE PREMIUM TAXES (rates vary by state)(2) 0% to 3.5%
-------------------------------------------------------------------------------- -------------------- --------------------
LOAN ORIGINATION FEE (3) $40 $25
-------------------------------------------------------------------------------- -------------------- --------------------
The next table describes the fees and expenses that you will pay
periodically during the time that you own the Policy, to equal the annualized
charges shown, not including Subaccount portfolio operating fees and expenses.
------------------------------------------------------------------------------------------------------ --------------------
ANNUAL FEES and EXPENSES
-------------------------------------------------------------------------------- --------------------- --------------------
Guaranteed
Maximum Current Fees
Fees
-------------------------------------------------------------------------------- -------------------- --------------------
ANNUAL POLICY FEES
Waived if Policy value is at least $50,000 on a Policy Anniversary. (4)
-------------------------------------------------------------------------------- -------------------- --------------------
x ANNUAL POLICY FEE $40 $40
y Optional MINIMUM INITIAL PREMIUM RIDER ANNUAL POLICY FEE (5) $40 $40
------------------------------------------------------------------------------------------------------ --------------------
ANNUAL WITHDRAWAL FEES
Deducted monthly to equal the annual % shown.
-------------------------------------------------------------------------------- -------------------- --------------------
x Base Policy Withdrawal Charge: NONE NONE
y ANNUAL FEES FOR OPTIONAL WITHDRAWAL CHARGE RIDERS:
y 7-Year Withdrawal Charge Rider 0.40% 0.35%
y 5-Year Withdrawal Charge Rider 0.60% 0.50%
Y No Withdrawal Charge Rider (6) 1.25% 0.75%
y 403(b) Tax Sheltered Annuity Endorsement (7) 0.40% 0.30%
------------------------------------------------------------------------------------------------------ --------------------
SEPARATE ACCOUNT ANNUAL EXPENSES
Deducted daily from assets allocated to the Separate Account to equal
the annual % shown.
-------------------------------------------------------------------------------- -------------------- --------------------
x MORTALITY & EXPENSE RISK CHARGE 0.75% 0.65%
x ADMINISTRATIVE EXPENSE FEE 0.25% 0.20%
------------------------------------------------------------------------------------------------------ --------------------
(1) Current Withdrawal Charges are the same as Guaranteed Maximum Withdrawal
Charges. Premium Withdrawal Charges may differ in some states, but will not
exceed the maximum.
(2) Tax rates and timing of payment vary by state and may change. Currently we
do not charge for state taxes other than premium taxes, although we reserve the
right to levy charges for taxes or other economic burdens in the future. See the
CHARGES EXPLAINED section.
(3) On Policies issued after January 1, 2002 with the 403(b) Tax Sheltered
Annuity Endorsement (not applicable to Policies issued prior to January 1, 2002
or in states where fee not approved). Waived if loan repayment is established on
an automatic basis.
(4) Annual Policy Fee waived only in those Policy Years that Policy value is at
least $50,000 on a Policy Anniversary. Minimum Initial Premium Rider Annual
Policy Fee waived in all years after condition is met.
(5) Waived for 403(b) Policies issued with the 403(b) Minimum Initial Premium
Rider in Policy Years when total annual net premium (premiums less withdrawals)
is $2,000 or greater.
(6) Available for Policies issued on or after September 24, 2008. Other riders
that may be used with the No Withdrawal Charge Rider are: Guaranteed Lifetime
Withdrawal Benefit and the Guaranteed Minimum Death Benefit - 1-Year "Periodic
Step-Up."
(7) REQUIRED for 403(b) Policies issued after January 1, 2002. 403(b) TSA
Endorsement 7-Year Premium Withdrawal Charge schedule applies in all states
except SC and WA; in those states a 9-Year Premium Withdrawal Charge
schedule applies. The PA 7-year schedule varies from this chart.
Overture Medley (R) -5-
--------------------------------------------------------------------------------- ---------------- -----------------
OPTIONAL RIDER/ENDORSEMENT FEES
Deducted monthly from Policy value to equal the annual % shown.
--------------------------------------------------------------------------------- ---------------- -----------------
Guaranteed
Maximum Current
Fees Fees
--------------------------------------------------------------------------------- ---------------- -----------------
y MINIMUM INITIAL PREMIUM RIDER
Waived if Policy value is at least $50,000 on a Policy Anniversary. 0.55% 0.35%
--------------------------------------------------------------------------------- ---------------- -----------------
y FREE WITHDRAWAL RIDERS (8)
y 10% "Free" Withdrawal Rider 0.15% 0.10%
y Expanded "Free" Withdrawal Rider (9) 0.40% 0.35%
--------------------------------------------------------------------------------- ---------------- -----------------
y GUARANTEED MINIMUM DEATH BENEFIT RIDERS
y 1- Year "Periodic Step-Up" Guaranteed Minimum Death Benefit 0.55% 0.35%
y "5% Roll-Up" Guaranteed Minimum Death Benefit 0.75% 0.45%
y "Greater Of" Guaranteed Minimum Death Benefit 0.80% 0.50%
--------------------------------------------------------------------------------- ---------------- -----------------
y ESTATE PROTECTION BENEFIT ("EPB") RIDER
Issue ages 0-70 0.40% 0.30%
Issue ages 71-80 0.80% 0.70%
--------------------------------------------------------------------------------- ---------------- -----------------
y EXPANDED ESTATE PROTECTION BENEFIT ("EEPB") RIDER
Issue ages 0-70 0.45% 0.35%
Issue ages 71-80 1.00% 0.90%
--------------------------------------------------------------------------------- ---------------- -----------------
y 403(b) TAX SHELTERED ANNUITY ENDORSEMENT (10)
--------------------------------------------------------------------------------- ---------------- -----------------
y TSA MINIMUM INITIAL PREMIUM RIDER
Waived once Policy value is at least $50,000 on a Policy Anniversary. 0.60% 0.45%
--------------------------------------------------------------------------------- ---------------- -----------------
y TSA HARDSHIP WAIVER RIDER 0.25% 0.25%
--------------------------------------------------------------------------------- ---------------- -----------------
y TSA NO WITHDRAWAL CHARGE RIDERS
Large Case (Initial premium is $25,000 or greater.) 0.45% 0.30%
Small Case (Initial premium is less than $25,000.)
When Policy value is $50,000 or less ... 0.55% 0.35%
Once Policy value exceeds $50,000 ... 0.45% 0.30%
--------------------------------------------------------------------------------- ---------------- -----------------
y VALUE+ OPTION (9) 0.55% 0.55%
--------------------------------------------------------------------------------- ---------------- -----------------
o GUARANTEED LIFETIME WITHDRAWAL BENEFIT ("GLWB") RIDER
(Deducted from the Policy value monthly during the Accumulation and
Withdrawal Phases. There are no fees during the Inactive Phase.)
Single Life 0.95% 0.95% (12)
Joint Spousal - for non-qualified plans only 1.10% 1.10% (12)
--------------------------------------------------------------------------------- ---------------- -----------------
Total Cost of Highest Combination of Optional Fees (13) 4.60% 3.80%
--------------------------------------------------------------------------------------------------------------------
PORTFOLIO COMPANY OPERATING EXPENSES (for the year ended December 31, 2008)
The next table shows the minimum and maximum total operating expenses
charged by the portfolio companies, before and after any waivers or reductions,
that you may pay periodically during the time that you own the contract,
followed by a table showing additional information for each portfolio company.
More detail concerning each portfolio company's fees and expenses is contained
in the prospectus for each portfolio company.
-------------------------------------------------------------------------------- -------------------- --------------
TOTAL ANNUAL PORTFOLIO COMPANY OPERATING EXPENSES
Expenses that are deducted from portfolio company assets, including Minimum Maximum
management fees, distribution and/or service (12b-1) fees, and other
expenses
------------------------------------------------------------------------------- -------------------- ---------------
Before any Waivers and Reductions 0.37% (1) 5.78% (2)
------------------------------------------------------------------------------- -------------------- ---------------
After any Waivers and Reductions (explained in the footnotes to the Portfolio 0.37% (1) 5.78% (2)
Expenses Table at the end of this section; only those waivers guaranteed for
one year after the effective date of this prospectus are used to determine
expenses in this "Minimum - Maximum" chart)
------------------------------------------------------------------------------- -------------------- ---------------
(1) Calvert Variable Series Ameritas Money Market Portfolio
(2) Summit Lifestyle ETF Aggressive Portfolio
(8) Also see the No Withdrawal Charge Rider in the ANNUAL WITHDRAWAL FEES
section, previous page. Only one free withdrawal rider may be selected for each
Policy.
(9) The Expanded "Free" Withdrawal Rider is not available for Policies issued
on or after January 1, 2010.
(10) REQUIRED for 403(b) Policies issued after January 1, 2002. 403(b) TSA
Endorsement 7-Year Premium Withdrawal Charge schedule in all states except SC
and WA; in those states the base Policy 9-Year Premium Withdrawal Charge
schedule applies. The PA 7-year schedule varies from this chart. (We will
provide you with the correct schedule for your state prior to your purchase of a
Policy.) The endorsement also includes a loan option and waiver of withdrawal
charge upon disability or severance of employment after the ninth Policy
Anniversary.
(11) The Value+ Option is not available for Policies issued on or after November
5, 2007.
(12) Beginning January 1, 2010, current GLWB Rider fees will become effective on
the next Policy Anniversary for all GLWB Riders except those in the Withdrawal
Phase. Fees will remain at a rate of 0.60% for Single Life and 0.75% for Joint
Spousal for GLWB Riders that entered the Withdrawal Phase prior to May 1, 2009
and GLWB Riders that entered the Accumulation Phase prior to May 1, 2009 and
then the Withdrawal Phase prior to their next Policy Anniversary date after
January 1, 2010. All other GLWB riders, including those that entered the
Accumulation Phase prior to May 1, 2009, but have not entered the Withdrawal
Phase prior to the next Policy Anniversary following January 1, 2010, will be
charged rates of 0.95% for Single Life and 1.10% for Joint Spousal. Current
rates for GLWB Riders are subject to change as described in the CHARGES
EXPLAINED section.
(13) The Total Cost of Highest Combination of Optional Fees consists of the
Mortality and Expense Risk Charge, Administrative Expense Fee of the Base Policy
(with its 9-year surrender charge period), as well as the fees for the Minimum
Initial Premium Rider, 10% "Free" Withdrawal Rider, "Greater Of" Guaranteed
Minimum Death Benefit Rider, Expanded Estate Protection Benefit Rider for Issue
Ages 71-80 (the fees for this rider are less for Issue Ages 0-70), and GLWB
Joint Spousal.
Overture Medley (R) -6-
9-year Withdrawal Charge
------------------------------------------------------------------------------------
Surrender Policy at the Annuitize Policy at the Policy is neither
end of the time period. end of the time period. surrendered nor
($) ($) annuitized. ($)
------------------------------------------------------------------------------------
EXAMPLE 1 Yr 3 Yr 5 Yr 10 Yr 1 Yr 3 Yr 5 Yr 10 Yr 1 Yr 3 Yr 5 Yr 10 Yr
------------------------------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -------
Maximum Expenses with GLWB $1,848 $3,772 $5,387 $8,196 $1,848 $2,972 $4,687 $8,196 $1,048 $2,972 $4,687 $8,196
- joint spousal (1)
------------------------------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -------
Maximum Expenses with GLWB $1,834 $3,737 $5,339 $8,140 $1,834 $2,937 $4,639 $8,140 $1,034 $2,937 $4,639 $8,140
- single life (1)
------------------------------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -------
Maximum Policy Expenses $1,746 $3,513 $5,024 $7,753 $1,746 $2,713 $4,324 $7,753 $946 $2,713 $4,324 $7,753
without GLWB Rider (2)
------------------------------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -------
Minimum Policy Expenses (3) $974 $1,336 $1,617 $1,961 $974 $536 $917 $1,961 $174 $536 $917 $1,961
------------------------------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -------
(1) Maximum Policy Expense Fees. This example assumes maximum charges of 1.00%
for Separate Account annual expenses, a $40 guaranteed maximum Policy fee, 2.50%
of other Policy value annual expenses for the most expensive combination of
optional riders with a 9-year Withdrawal Charge (the Minimum Initial Premium,
10% Free Withdrawal Rider, Expanded Estate Protection Benefit ("EEPB") at Issue
Ages 71-80 (EEPB fees are less for typical Policy Owners who are Issue Ages
0-70), and "Greater Of" Guaranteed Minimum Death Benefit), applicable guaranteed
maximum fee for the Guaranteed Lifetime Withdrawal Benefit optional rider (0.95%
for single life, 1.10% for joint spousal) plus the maximum fees and expenses
before any waivers or reductions of any of the portfolio companies (5.78%).
(2) Maximum Policy Expense Fees without GLWB Rider. This example assumes maximum
charges of 1.00% for Separate Account annual expenses, a $40 guaranteed maximum
Policy fee, 1.95% of other Policy value annual expenses for the most expensive
combination of optional riders with a 9-year Withdrawal Charge (the Minimum
Initial Premium, 10% Free Withdrawal Rider, Expanded Estate Protection Benefit
at Issue Ages 71-80 (EEPB fees are less for typical Policy Owners who are Issue
Ages 0-70), and "Greater Of" Guaranteed Minimum Death Benefit), plus the maximum
fees and expenses before any waivers or reductions of any of the portfolio
companies (5.78%).
(3) Minimum Policy Expense Fees. This example assumes current charges of 0.85%
for Separate Account annual expenses, a $40 current Policy fee, 0.10% of Policy
value annual expenses for the 10% Free Withdrawal Rider, plus the minimum fees
and expenses after any waivers or reductions of any of the portfolio companies
(0.37%).
7-year Withdrawal Charge
------------------------------------------------------------------------------------
Surrender Policy at the Annuitize Policy at the Policy is neither
end of the time period. end of the time period. surrendered nor
($) ($) annuitized. ($)
------------------------------------------------------------------------------------
EXAMPLE 1 Yr 3 Yr 5 Yr 10 Yr 1 Yr 3 Yr 5 Yr 10 Yr 1 Yr 3 Yr 5 Yr 10 Yr
------------------------------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -------
Maximum Expenses with GLWB $1,785 $3,564 $5,113 $8,342 $1,785 $3,064 $4,813 $8,342 $1,085 $3,064 $4,813 $8,342
- joint spousal (1)
------------------------------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -------
Maximum Expenses with GLWB $1,771 $3,529 $5,066 $8,288 $1,771 $3,029 $4,766 $8,288 $1,071 $3,029 $4,766 $8,288
- single life (1)
------------------------------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -------
Maximum Policy Expenses $1,683 $3,308 $4,759 $7,922 $1,683 $2,808 $4,459 $7,922 $983 $2,808 $4,459 $7,922
without GLWB Rider (2)
------------------------------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -------
Minimum Policy Expenses (3) $909 $1,143 $1,399 $2,339 $909 $643 $1099 $2,339 $209 $643 $1,099 $2,339
------------------------------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -------
(1) Maximum Policy Expense Fees. This example assumes maximum charges of 1.00%
for Separate Account annual expenses, a $40 guaranteed maximum Policy fee, 2.90%
of other Policy value annual expenses for the most expensive combination of
optional riders with a 7-year Withdrawal Charge (the Minimum Initial Premium,
10% Free Withdrawal Rider, Expanded Estate Protection Benefit at Issue Ages
71-80 (EEPB fees are less for typical Policy Owners who are Issue Ages 0-70),
"Greater Of" Guaranteed Minimum Death Benefit), and 7-year Withdrawal Charge,
applicable guaranteed maximum fee for the Guaranteed Lifetime Withdrawal Benefit
optional rider (0.95% for single life, 1.10% for joint spousal) plus the maximum
fees and expenses before any waivers or reductions of any of the portfolio
companies (5.78%).
(2) Maximum Policy Expense Fees without GLWB Rider. This example assumes maximum
charges of 1.00% for Separate Account annual expenses, a $40 guaranteed maximum
Policy fee, 2.35% of other Policy value annual expenses for the most expensive
combination of optional riders with a 7-year Withdrawal Charge (the Minimum
Initial Premium, 10% Free Withdrawal Rider, Expanded Estate Protection Benefit
at Issue Ages 71-80 (EEPB fees are less for typical Policy Owners who are Issue
Ages 0-70), "Greater Of" Guaranteed Minimum Death Benefit), and 7-year
Withdrawal Charge, plus the maximum fees and expenses before any waivers or
reductions of any of the portfolio companies (5.78%).
(3) Minimum Policy Expense Fees. This example assumes current charges of 0.85%
for Separate Account annual expenses, a $40 current Policy fee, 0.10% of Policy
value annual expenses for the 10% Free Withdrawal Rider, 0.35% for a 7-year
Withdrawal Charge, plus the minimum fees and expenses after any waivers or
reductions of any of the portfolio companies (0.37%).
5-year Withdrawal Charge
------------------------------------------------------------------------------------
Surrender Policy at the Annuitize Policy at the Policy is neither
end of the time period. end of the time period. surrendered nor
($) ($) annuitized. ($)
------------------------------------------------------------------------------------
EXAMPLE 1 Yr 3 Yr 5 Yr 10 Yr 1 Yr 3 Yr 5 Yr 10 Yr 1 Yr 3 Yr 5 Yr 10 Yr
------------------------------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -------
Maximum Expenses with GLWB $1,803 $3,709 $5,075 $8,412 $1,803 $3,109 $4,875 $8,412 $1,103 $3,109 $4,875 $8,412
- joint spousal (1)
------------------------------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -------
Maximum Expenses with GLWB $1,789 $3,675 $5,028 $8,360 $1,789 $3,075 $4,828 $8,360 $1,089 $3,075 $4,828 $8,360
- single life (1)
------------------------------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -------
Maximum Policy Expenses $1,702 $3,456 $4,725 $8,003 $1,702 $2,856 $4,525 $8,003 $1,002 $2,856 $4,525 $8,003
without GLWB Rider (2)
------------------------------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -------
Minimum Policy Expenses (3) $925 $1,289 $1,376 $2,497 $925 $689 $1,176 $2,497 $225 $689 $1,176 $2,497
------------------------------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -------
(1) Maximum Policy Expense Fees. This example assumes maximum charges of 1.00%
for Separate Account annual expenses, a $40 guaranteed maximum Policy fee, 3.10%
of other Policy value annual expenses for the most expensive combination of
optional riders with a 5-year Withdrawal Charge (the Minimum Initial Premium,
10% Free Withdrawal Rider, Expanded Estate Protection Benefit at Issue Ages
71-80 (EEPB fees are less for typical Policy Owners who are Issue Ages 0-70),
"Greater Of" Guaranteed Minimum Death Benefit), and 5-year Withdrawal Charge,
applicable guaranteed maximum fee for the Guaranteed Lifetime Withdrawal Benefit
optional rider (0.95% for single life, 1.10% for joint spousal) plus the maximum
fees and expenses before any waivers or reductions of any of the portfolio
companies (5.78%).
(2) Maximum Policy Expense Fees without GLWB Rider. This example assumes maximum
charges of 1.00% for Separate Account annual expenses, a $40 guaranteed maximum
Policy fee, 2.55% of other Policy value annual expenses for the most expensive
combination of optional riders with a 5-year Withdrawal Charge (the Minimum
Initial Premium, 10% Free Withdrawal Rider, Expanded Estate Protection Benefit
at Issue
Overture Medley (R) -10-
Ages 71-80 (EEPB fees are less for typical Policy Owners who are Issue Ages
0-70), "Greater Of" Guaranteed Minimum Death Benefit), and 5-year Withdrawal
Charge, plus the maximum fees and expenses before any waivers or reductions of
any of the portfolio companies (5.78%).
(3) Minimum Policy Expense Fees. This example assumes current charges of 0.85%
for Separate Account annual expenses, a $40 current Policy fee, 0.10% of Policy
value annual expenses for the 10% Free Withdrawal Rider, 0.50% for a 5-year
Withdrawal Charge, plus the minimum fees and expenses after any waivers or
reductions of any of the portfolio companies (0.37%).
No Withdrawal Charge Rider
------------------------------------------------------------------------------------
Surrender Policy at the Annuitize Policy at the Policy is neither
end of the time period. end of the time period. surrendered nor
($) ($) annuitized. ($)
------------------------------------------------------------------------------------
EXAMPLE 1 Yr 3 Yr 5 Yr 10 Yr 1 Yr 3 Yr 5 Yr 10 Yr 1 Yr 3 Yr 5 Yr 10 Yr
------------------------------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -------
Maximum Expenses with GLWB $983 $2,808 $4,459 $7,922 $983 $2,808 $4,459 $7,922 $983 $2,808 $4,459 $7,922
- joint spousal (1)
------------------------------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -------
Maximum Expenses with GLWB $970 $2,773 $4,409 $7,860 $970 $2,773 $4,409 $7,860 $970 $2,773 $4,409 $7,860
- single life (1)
------------------------------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -------
Maximum Policy Expenses $881 $2,543 $4,081 $7,436 $881 $2,543 $4,081 $7,436 $881 $2,543 $4,081 $7,436
without GLWB Rider (2)
------------------------------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -------
Minimum Policy Expenses (3) $250 $765 $1,303 $2,755 $250 $765 $1,303 $2,755 $250 $765 $1,303 $2,755
------------------------------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -------
(1) Maximum Policy Expense Fees. This example assumes maximum charges of 1.00%
for Separate Account annual expenses, a $40 guaranteed maximum Policy fee, 1.80%
of other Policy value annual expenses for the combination of a No Withdrawal
Charge Rider, the 1-Year "Periodic Step-Up" Guaranteed Minimum Death Benefit
rider, applicable guaranteed maximum fee for the Guaranteed Lifetime Withdrawal
Benefit rider (0.95% for single life, 1.10% for joint spousal) plus the maximum
fees and expenses before any waivers or reductions of any of the portfolio
companies (5.78%).
(2) Maximum Policy Expense Fees without GLWB Rider. This example assumes maximum
charges of 1.00% for Separate Account annual expenses, a $40 guaranteed maximum
Policy fee, 1.80% of other Policy value annual expenses for the combination of a
No Withdrawal Charge Rider, the 1-Year "Periodic Step-Up" Guaranteed Minimum
Death Benefit rider, plus the maximum fees and expenses before any waivers or
reductions of any of the portfolio companies (5.78%).
(3) Minimum Policy Expense Fees. This example assumes current charges of 0.85%
for Separate Account annual expenses, a $40 current Policy fee, 0.85% of Policy
value annual expenses for the No Withdrawal Charge Rider, plus the minimum fees
and expenses after any waivers or reductions of any of the portfolio companies
(0.37%).
FINANCIAL INFORMATION
--------------------------------------------------------------------------------
ACCUMULATION UNIT VALUES
We provide Accumulation Unit value history for each of the Separate
Account variable investment options in Appendix A.
FINANCIAL STATEMENTS
Financial statements of the Subaccounts of the Separate Account and our
company are included in the Statement of Additional Information. To learn how to
get a copy, see the front or back page of this prospectus.
CHARGES EXPLAINED
--------------------------------------------------------------------------------
(x = Base Policy Fee; y = Optional Rider Fee)
We may increase CURRENT FEES, but we guarantee that each CURRENT FEE
will never exceed the corresponding GUARANTEED MAXIMUM FEE.
The following adds to information provided in the CHARGES section.
Please review both prospectus sections for information on charges.
WITHDRAWAL CHARGE
x We will deduct a withdrawal charge from Policy value upon a full
surrender or partial withdrawal. We may also deduct a withdrawal charge from
Policy value on the date annuity income payments begin from amounts applied to
provide annuity payments. We do not assess a withdrawal charge on premiums after
the second year since receipt that are then applied to the Life or Joint and
Last Survivor annuity income options. This charge partially covers our
distribution costs, including commissions and other promotional costs. Any
deficiency is met from our general account, including amounts derived from the
mortality and expense risk charge. If your Policy is issued as a 403(b) TSA
Policy, any withdrawal charges will be waived after our receipt of satisfactory
Written Notice on withdrawals:
(a) upon your severance of employment after 9 years from the Policy Date;
(b) due to your disability within the meaning of Code Section 72(m)(7)
prior to your age 65.
The amount of a partial withdrawal you request plus any withdrawal
charge is deducted from the Policy value on the date we receive your withdrawal
request. Partial withdrawals (including any charge) are deducted from the
Subaccounts and the Fixed Account on a pro rata basis, unless you instruct us
otherwise. The oldest premium is considered to be withdrawn first, the next
oldest premium is considered to be withdrawn next, and so on (a "first-in,
first-out" basis). All premiums are deemed to be withdrawn before any earnings.
Overture Medley (R) -11-
Optional Withdrawal Charge Riders
y The fees for optional withdrawal charge riders are deducted monthly
from Policy value. These fees continue as long as the Policy is in force. Your
election of one of the optional withdrawal charge riders must be made at issue
of the Policy. The Expanded "Free" Withdrawal Rider is not available for
Policies issued on or after December 31, 2009. If you elected the Expanded
"Free" Withdrawal Rider, your current Separate Account annual expenses will
total 1.20% of the average net asset value, assuming no charges for other
riders. If you did not elect the Expanded "Free" Withdrawal Rider, your current
Separate Account annual expenses will be 0.85%, again assuming no charges for
other riders.
Optional Free Withdrawal Riders
The base Policy does not have any free withdrawal riders (allowing
withdrawals not subject to a withdrawal charge).
However, optional free withdrawal riders are available: See the POLICY
DISTRIBUTIONS: Withdrawals section of this prospectus for details. Current fees
for optional free withdrawal riders are deducted from the Policy value on each
Policy Month date, or if that date falls on a day other than a Business Day, the
monthly charge will be deducted on the next Business Day.
y A No Withdrawal Charge Rider is available for Policies issued on or
after September 24, 2008. The charge for this rider is a percentage of the
Policy value that will be deducted from the Policy value for the life of the
Policy, and is referred to in the Policy Schedule as the "Monthly Charge." This
rider may not be cancelled and will terminate when the Policy terminates. The
fees for this rider continue as long as the Policy is in force.
y The TSA No Withdrawal Charge Rider fees are deducted monthly from
Policy value. Withdrawal charge fee rates are less for Large Policies (initial
premium $25,000 or more) than for Small Policies. The withdrawal charge fee rate
is also reduced when the Policy value exceeds $50,000 on a Policy Anniversary.
This rider may not be cancelled and will terminate when the Policy terminates.
The fees for this rider continue as long as the Policy is in force.
y The TSA Hardship Waiver Rider fees are deducted monthly from Policy
value. This rider automatically terminates if the Policy's tax-qualified status
is changed from a 403(b) to an IRA. This rider may be cancelled at any time
prior to exercising any of its benefits. Once the Rider's benefits are
exercised, the Rider may not be cancelled and will continue as long as the
Policy's tax-qualified status is a 403(b). The fees for this rider continue
while it is in force.
MORTALITY AND EXPENSE RISK CHARGE
x We impose a daily fee to compensate us for the mortality and expense
risks we have under the Policy. This fee is reflected in the Accumulation Unit
values for each Subaccount.
Our mortality risk arises from our obligation to make annuity payments
and to pay death benefits prior to the Annuity Date. The mortality risk we
assume is that annuitants will live longer than we project, so our cost in
making annuity payments will be higher than projected. However, an annuitant's
own longevity, or improvement in general life expectancy, will not affect the
periodic annuity payments we pay under your Policy. Another mortality risk we
assume is that at your death the death benefit we pay will be greater than the
Policy value.
Our expense risk is that our costs to administer your Policy will
exceed the amount we collect through administrative charges. If the mortality
and expense risk charge does not cover our costs, we bear the loss, not you. If
the charge exceeds our costs, the excess is our profit. If the withdrawal charge
does not cover our Policy distribution costs, the deficiency is met from our
general account assets, which may include amounts, if any, derived from this
mortality and expense risk charge.
ADMINISTRATIVE CHARGES
Administrative fees help us cover our cost to administer your Policy.
Administrative Expense Fee
x This annual fee is reflected in the Accumulation Unit values for each
Subaccount.
Annual Policy Fee
x We reserve the right to charge an annual Policy fee.
y The optional Minimum Initial Premium Rider has a current annual
Policy fee.
Any Policy fee is deducted from your Policy value on the last Business
Day of each Policy Year and upon a complete surrender. This fee is levied by
canceling Accumulation Units and making a deduction from the Fixed Account. It
is deducted from each Subaccount and the Fixed Account in the same proportion
that the value in each Subaccount and the Fixed Account bears to the total
Policy value. For the optional Minimum Initial Premium Rider for TSA Policies,
we will also waive the annual Policy fee for Policy Years when total net premium
(premium less withdrawals) is $2,000 or greater. We currently waive any Policy
fee if the Policy value is at least $50,000 on a Policy Anniversary.
TRANSFER FEE
The first 15 transfers per Policy Year from Subaccounts or the Fixed
Account are free. A transfer fee may be imposed for any transfer in excess of 15
per Policy Year. The transfer fee is deducted pro rata from each Subaccount
(and, if applicable, the Fixed Account) in which the Owner is invested.
Overture Medley (R) -12-
TAX CHARGES
Some states and municipalities levy a tax on annuities, currently
ranging from 0% to 3.5% of your premiums. These tax rates, and the timing of the
tax, vary and may change. Presently, we deduct the charge for the tax in those
states with a tax either (a) from premiums as they are received, or (b) upon
applying proceeds to an annuity income option.
No charges are currently made for taxes other than premium taxes. We
reserve the right to levy charges in the future for taxes or other economic
burdens resulting from taxes that we determine are properly attributable to the
Separate Account.
403(b) TAX SHELTERED ANNUITY CHARGES
403(b) Tax Sheltered Annuity endorsements issued after January 1, 2002
include a 403(b) TSA Endorsement 7-Year Withdrawal Charge schedule in all states
except SC and WA; in those states the base Policy 9-Year Withdrawal Charge
schedule applies. The PA 7-Year schedule varies from the schedule used in other
states. (We will provide you with the correct schedule for your state prior to
your purchase of a Policy.) The 403(b) TSA Endorsement also includes a loan
option and waiver of withdrawal charge upon disability or severance of
employment after the ninth Policy Anniversary.
FEES CHARGED BY THE PORTFOLIOS
x Each Subaccount's underlying portfolio has investment advisory fees
and expenses. They are set forth in this prospectus' CHARGES section and
described in more detail in each fund's prospectus. A portfolio's fees and
expenses are not deducted from your Policy value. Instead, they are reflected in
the daily value of portfolio shares which, in turn, will affect the daily
Accumulation Unit value of the Subaccounts. These fees and expenses help to pay
the portfolio's investment advisory and operating expenses.
VALUE+ OPTION CHARGE
y If you elected the Value+ Option, your current Separate Account
annual expenses will total 1.40% of the average net asset value for the first
nine Policy Years, assuming no charges for other riders. If you did not elect
the Value+ Option, your current Separate Account annual expenses will be 0.85%
for all Policy Years, again assuming no charges for other riders.
GUARANTEED LIFETIME WITHDRAWAL BENEFIT ("GLWB") CHARGE
The guaranteed maximum and current annual charges for the GLWB rider
are listed in the CHARGES section of this prospectus. Each fee is stated as a
percentage that is multiplied by the Policy value. The current charge (0.95%
annually for Single Life or 1.10% annually for Joint Spousal) will be deducted
from the Policy value on each Monthly Anniversary, beginning with the Rider
Activation Date. Beginning January 1, 2010, current GLWB rider fees will become
effective on the next Policy Anniversary for all GLWB riders except those in the
Withdrawal Phase. Fees will remain at a rate of 0.60% for Single Life and 0.75%
for Joint Spousal for:
a. GLWB riders that entered the Withdrawal Phase prior to May 1, 2009; and
b. GLWB riders that entered the Accumulation Phase prior to May 1, 2009
and then the Withdrawal Phase prior to their next Policy Anniversary
date after January 1, 2010.
All other GLWB riders, including those that entered the Accumulation Phase prior
to May 1, 2009, but have not entered the Withdrawal Phase prior to the next
Policy Anniversary following January 1, 2010, will be charged rates of 0.95%
for Single Life and 1.10% for Joint Spousal. Current fee rates for GLWB riders
are subject to change as described below. If you activate this rider, the
charges for the Policy and for the rider will be deducted on a pro-rata basis
from all Subaccounts in the asset allocation model you select.
The rider charge is subject to change upon Rider Activation Date,
Policy Anniversary, or upon reset as described in the Reset Feature section of
the GLWB rider description. The rider charge will not exceed the guaranteed
maximum fee for this rider listed in the CHARGES section. The rider charge will
not be deducted while the rider is in the Inactive Phase, after the Policy value
reduces to zero, or if the rider is terminated.
OTHER OPTIONAL RIDER CHARGES
y Charges for each of the other optional riders are shown in this
prospectus' CHARGES section.
WAIVER OF CERTAIN CHARGES
When the Policy is sold in a manner that results in savings of sales or
administrative expenses, we reserve the right to waive all or part of any fee we
charge under the Policy (excluding fees charged by the portfolios). Factors we
consider include one or more of the following: size and type of group to whom
the Policy is issued; amount of expected premiums; relationship with us
(employee of us or an affiliated company, receiving distributions or making
transfers from other policies we or one of our affiliates issue or transferring
amounts held under qualified retirement plans we or one of our affiliates
sponsor); type and frequency of administrative and sales services provided; or
level of annual maintenance fee and withdrawal charges. In an exchange of
another policy we or an affiliated company issued and where the withdrawal
charge has been waived, the withdrawal charge for this Policy may be determined
based on the dates premiums were received in the prior policy. Any fee waiver
will not be discriminatory and will be done according to our rules in effect at
the time the Policy is issued. We reserve the right to change these rules. The
right to waive any charges may be subject to state approval.
Overture Medley (R) -13-
INVESTMENT OPTIONS
--------------------------------------------------------------------------------
We recognize you have very personal goals and investment strategies.
The Policy allows you to choose from a wide array of investment options - each
chosen for its potential to meet specific investment objectives.
You may allocate all or a part of your premiums among the Separate
Account variable investment options or the Fixed Account fixed interest rate
option. Allocations must be in whole percentages and total 100%. For Policies
issued with the No Withdrawal Charge Rider, the allocation of any premium to the
Fixed Account may not exceed 25% of that premium without our consent. If our
prior consent is not received, we reserve the right to reallocate any excess
Fixed Account allocation proportionately to the remaining investment options you
selected in your latest allocation instructions. The variable investment
options, which invest in underlying portfolios, are listed and described in this
section of this prospectus.
The value of your Policy will go up [arrow symbol pointing up] or down [arrow
symbol pointing down] based on the investment performance of the variable
investment options you choose. The investment results of each variable
investment option are likely to differ significantly, and vary over time. They
do not earn a fixed interest rate. Please consider carefully, and on a
continuing basis, which investment options best suit your long-term investment
objectives and risk tolerance.
SEPARATE ACCOUNT VARIABLE INVESTMENT OPTIONS
The Separate Account provides you with variable investment options in
the form of underlying portfolio investments. Each underlying portfolio is an
open-end investment management company. When you allocate investments to an
underlying portfolio, those investments are placed in a Subaccount of the
Separate Account corresponding to that portfolio, and the Subaccount in turn
invests in the portfolio. The Policy value of your Policy depends directly on
the investment performance of the portfolios that you select.
The Separate Account is registered with the SEC as a unit investment
trust. However, the SEC does not supervise the management or the investment
practices or policies of the Separate Account or Ameritas. The Separate Account
was established as a separate investment account of Ameritas Variable Life
Insurance Company ("AVLIC") under Nebraska law on May 28, 1987. Effective May 1,
2007, AVLIC merged with and into Ameritas, and the Separate Account was
transferred to Ameritas. Ameritas is now the issuer of the Policies and is the
"Depositor" of the Separate Account. (See "About Our Company" in the prospectus
for further information.) Under Nebraska law, Ameritas owns the Separate Account
assets, but they are held separately from our other assets and are not charged
with any liability or credited with any gain of business unrelated to the
Separate Account. Any and all distributions made by the underlying portfolios,
with respect to the shares held by the Separate Account, will be reinvested in
additional shares at net asset value.
We are responsible to you for meeting the obligations of the Policy,
which are subject to the claims paying ability of our general account, but we do
not guarantee the investment performance of any of the variable investment
options' underlying portfolios. We do not make any representations about their
future performance.
The underlying portfolios in the Separate Account are NOT publicly traded mutual
funds, and are NOT the same as publicly traded mutual funds with very similar
names. They are only available as separate account investment options in life
insurance or variable annuity policies issued by insurance companies, or through
participation in certain qualified pension or retirement plans.
Even if the investment options and policies of some underlying portfolios
available under the Policy may be very similar to the investment objectives and
policies of publicly traded mutual funds that may be managed by the same
investment adviser, the investment performance and results of the portfolios
available under the Policy may vary significantly from the investment results of
such other publicly traded mutual funds.
You should read the prospectuses for the underlying portfolios together with
this prospectus for more information.
You bear the risk that the variable investment options you select may
fail to meet their objectives, that they could go down in value,
and that you could lose principal.
Each Subaccount's underlying portfolio operates as a separate
investment option, and the income or loss of one generally has no effect on
the investment performance of any other. Complete descriptions of each variable
investment option's investment objectives and restrictions and other material
information related to an investment in the variable investment option are
contained in the prospectuses for each of the underlying portfolios which
accompany this prospectus.
Overture Medley (R) -14-
from the Fixed Account each month is 1/36th of the value of
the Fixed Account at the time the Dollar Cost Averaging
program is established. While a Dollar Cost Averaging
program is in effect, elective transfers out of the Fixed
Account are prohibited.
- The Portfolio Rebalancing and Earnings Sweep systematic
transfer programs have no minimum transfer limits.
o The first 15 transfers each Policy Year are free. Thereafter,
transfers may result in a $10 charge for each transfer. This fee
is deducted on a pro-rata basis from balances in all Subaccounts
and the Fixed Account; it is not subtracted from the amount of
the transfer. Transfers under any systematic transfer program do
count toward the 15 free transfer limit.
o A transfer from the Fixed Account (except made pursuant to a
systematic transfer program):
- may be made only once each Policy Year;
- may be delayed up to six months;
- is limited during any Policy Year to the greater of:
- 25% of the Fixed Account value on the date of the
transfer during that Policy Year;
- the greatest amount of any non-systematic transfer
out of the Fixed Account during the previous 13 months;
or
- $1,000.
o For a Policy issued with a No Withdrawal Charge Rider, the amount
transferred into the Fixed Account within any Policy Year (except
made pursuant to a systematic transfer program) may not exceed 10%
of the Policy value of all Subaccounts as of the most recent
Policy Anniversary, unless the remaining value in any single
Subaccount would be less than $1,000, in which case you may elect
to transfer the entire value of that Subaccount to the Fixed
Account.
o We reserve the right to further restrict transfers to the Fixed
Account provided that we provide notice to you no less than 30
days prior to the date the restriction becomes effective.
o We reserve the right to limit transfers, or to modify transfer
privileges, and we reserve the right to change the transfer rules
at any time.
o If the Policy value in any Subaccount falls below $100, we may
transfer the remaining balance, without charge, proportionately
to the remaining investment options you selected in your latest
allocation instructions. We will notify you when such a transfer
occurs. You may, within 60 days of the date of our notice,
reallocate the amount transferred, without charge, to another
investment option.
o In the event you authorize telephone or Internet transfers, we are
not liable for telephone or Internet instructions that we in good
faith believe you authorized. We will employ reasonable procedures
to confirm that instructions are genuine.
THIRD-PARTY SERVICES
Where permitted and subject to our rules, we may accept your
authorization to have a third party (such as your sales representative or
someone else you name) exercise transfers or investment allocations on your
behalf. Third-party transfers and allocations are subject to the same rules as
all other transfers and allocations. You can make this election on the
application or by sending us Written Notice. Please note that any person or
entity you authorize to make transfers or allocations on your behalf, including
any investment advisory, asset allocation, money management or timing service,
does so independently from any agency relationship they may have with us for the
sale of the Policies. They are accountable to you alone for such transfers or
allocations. We are not responsible for such transfers or allocations on your
behalf, or recommendations to you, by such third-party services. You should be
aware that fees charged by such third parties for their service are separate
from and in addition to fees paid under the Policy.
DISRUPTIVE TRADING PROCEDURES
The Policy is not designed to serve as a vehicle for frequent trading
in response to short-term fluctuations in the market. Such frequent trading,
programmed transfers, or transfers that are large in relation to the total
assets of a Subaccount's underlying portfolio can disrupt management of a
Subaccount's underlying portfolio and raise expenses. This in turn can hurt
performance of an affected Subaccount and therefore hurt your Policy's
performance.
Organizations or individuals that use market timing investment strategies and
make frequent or other disruptive transfers should not purchase the Policy.
Policy Owners should be aware that we are contractually obligated
to provide Policy Owner transaction data relating to trading activities to the
underlying funds on Written Request and, on receipt of written instructions from
a fund, to restrict or prohibit further purchases or transfers by Policy Owners
identified by an underlying fund as having engaged in transactions that violate
the trading policies of the fund.
We reserve the right to reject or restrict, in our sole discretion,
transfers initiated by a market timing organization or individual or other party
authorized to give transfer instructions. We further reserve the right to impose
restrictions on transfers that we determine, in our sole discretion, will
disadvantage or potentially hurt the rights or interests of other Policy Owners.
Restrictions may include changing, suspending or terminating telephone, on-line
and facsimile transfer privileges. We will enforce any Subaccount underlying
portfolio manager's restrictions imposed upon transfers considered by the
manager to be disruptive. Our disruptive trading procedures
Overture Medley (R) -18-
IMSA
We are a member of the Insurance Marketplace Standards Association
("IMSA"). IMSA is a voluntary membership organization created by the life
insurance industry to promote ethical market conduct for individual life
insurance and annuity products. Our membership in IMSA applies to us only and
not to our products or affiliates.
THANK YOU
for reviewing this prospectus. You should also review the series fund
prospectuses for those Subaccount variable investment option underlying
portfolios you wish to select.
IF YOU HAVE QUESTIONS,
contact your sales representative, or
write or call us at:
Ameritas Life Insurance Corp.
Service Center
P.O. Box 82550
Lincoln, Nebraska 68501
or
5900 "O" Street
Lincoln, Nebraska 68510
Telephone: 1-800-745-1112
Fax: 1-402-467-7335
Interfund Transfer Request Fax: 1-402-467-7923
www.ameritas.com
REMEMBER, THE CORRECT FORM
is important for us to accurately process your Policy elections and changes.
Many can be found in the "on-line services" section of our web site. Or, call us
at our toll-free number and we will send you the form you need.
STATEMENT OF ADDITIONAL INFORMATION TABLE OF CONTENTS
A Statement of Additional Information, dated December 31, 2009,
contains other information about the Separate Account and Ameritas, plus more
details concerning the disclosures in this prospectus.
For a free copy, access it on the SEC's web site (www.sec.gov, select
"Search for Company Filings," select "file number," then type "333-142483"), or
write or call us. Here is the Table of Contents for the Statement of Additional
Information:
Begin on
Page
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General Information and History 1
Services
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Purchase of Securities Being Offered 2
Underwriter
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Calculation of Performance 3
Standardized Performance Reporting
Non-Standardized Performance Reporting
Yields
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MORNINGSTAR(R) ASSET ALLOCATOR 4
Model Asset Allocation Program offered
through Ameritas Investment Corp. ("AIC")
------------------------------------------ -----------
Other Information 6
Service Marks and Copyrights
Licensing Agreement
Financial Statements
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(R) Ameritas Life Insurance Corp.
Ameritas Life Insurance Corp. Logo
A UNIFI Company
Overture Medley (R) Last Page SEC Registration #811-05192