SF 653 SAMPLE
BENEFIT FLEXIBLE PREMIUM VARIABLE UNIVERSAL LIFE INSURANCE POLICY. Adjustable
death benefit. Benefits payable at the earlier of Maturity Date or death of
Insured. Flexible premiums payable until the earlier of Maturity Date or death
of Insured. NON-PARTICIPATING.
This policy is a legal contract between You, as owner, and Us, Principal Life
Insurance Company. Your policy is issued based on the information in the
application and payment of premiums as shown on the current Data Pages. We will
pay the benefits of this policy in accordance with its provisions.
YOUR NET PREMIUMS ARE ADDED TO YOUR POLICY VALUE. YOU MAY ALLOCATE YOUR NET
PREMIUMS TO ONE OR MORE OF THE DIVISIONS .
YOUR POLICY VALUE WILL VARY FROM DAY TO DAY. THE AMOUNT IS NOT GUARANTEED. IT
MAY INCREASE OR DECREASE FROM DAY TO DAY DEPENDING ON THE INVESTMENT EXPERIENCE
OF THE DIVISIONS THAT YOU HAVE CHOSEN. THERE ARE NO MINIMUM GUARANTEES REGARDING
YOUR POLICY VALUE.
THE AMOUNT AND DURATION OF THE DEATH BENEFIT MAY BE VARIABLE OR FIXED AS
DESCRIBED IN THIS POLICY.
10-DAY EXAMINATION OFFER. IT IS IMPORTANT TO US THAT YOU ARE SATISFIED WITH THIS
POLICY. IF YOU ARE NOT SATISFIED, YOU MAY RETURN YOUR POLICY TO EITHER YOUR
AGENT OR OUR OFFICE BEFORE THE LATEST OF: (1) 10 DAYS AFTER YOU RECEIVE THE
POLICY OR (2) SUCH LATER DATE AS SPECIFIED BY APPLICABLE STATE LAW. IF YOU
RETURN THIS POLICY, WE WILL REFUND YOUR PREMIUM IN STATES WHERE REQUIRED. IN
STATES WHERE PERMITTED, WE WILL REFUND THE NET POLICY VALUE, WHICH MAY BE MORE
OR LESS THAN YOUR PREMIUM. PLEASE READ YOUR POLICY CAREFULLY SO YOU MAY BETTER
USE ITS MANY BENEFITS.
This policy starts on the Policy Date and will stay in force until the earlier
of the Maturity Date shown on the current Data Pages or death of the Insured so
long as You satisfy the requirements outlined in Your policy.
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TABLE OF CONTENTS
SUBJECT PAGE
DEFINITIONS IN THIS POLICY.................................................4
PURCHASING AND KEEPING THE POLICY IN FORCE.................................5
PREMIUM INVESTMENT OPTIONS.................................................7
BENEFITS WHILE POLICY IS IN FORCE..........................................8
TRANSFERS..................................................................9
POLICY LOANS..............................................................10
POLICY SURRENDER..........................................................11
POLICY EXPENSES...........................................................12
DEATH PROCEEDS............................................................13
BENEFIT PAYMENT OPTIONS...................................................15
ADJUSTMENT OPTIONS........................................................17
RIGHT TO EXCHANGE POLICY..................................................18
OWNER, BENEFICIARY, ASSIGNMENT............................................19
GENERAL INFORMATION.......................................................19
A copy of the application and any additional benefits provided by rider follow
the last page of this policy.
4
SF 653 SAMPLE
DEFINITIONS IN THIS POLICY
ADJUSTMENT DATE means the Monthly Date on or next following Our approval of a
requested adjustment.
ATTAINED AGE means the Insured's Issue Age plus the number of full Policy Years
since the Policy Date.
DIVISION is the part of the Separate Account that invests in shares of a
corresponding Mutual Fund. The value of an investment in a Division is variable
and is not guaranteed.
EFFECTIVE DATE is the date on which all requirements for issuance of this policy
have been satisfied.
INSURED means the person named as the Insured on the current Data Pages of this
policy. The Insured may or may not be the owner.
ISSUE AGE is the age shown on Your current Data Pages.
LOAN ACCOUNT is that part of the Policy Value that reflects the total loan
indebtedness.
MATURITY DATE is the date shown on Your current Data Pages.
MONTHLY DATE means the day of the month that is the same as the day of the
Policy Date. The Monthly Date will never be the 29th, 30th, or 31st of any
month.
MONTHLY POLICY CHARGE is the amount subtracted from Your Policy Value on each
Monthly Date and is equal to the sum of the cost of insurance and the cost of
additional benefits provided by any rider plus the asset based charge in effect
on the Monthly Date.
MUTUAL FUND means a registered open-end investment company, or a separate
investment account or portfolio thereof, in which a Division invests.
NET POLICY VALUE is the Policy Value less any outstanding policy loans and
unpaid loan interest.
NET PREMIUM is the gross premium less the deductions for the Premium Expense
Charge shown on the current Data Pages. It is the amount of premium allocated to
the Divisions.
NET SURRENDER VALUE is the Surrender Value less any outstanding policy loans and
unpaid loan interest.
NOTICE means any form of communication We receive in Our Office providing the
information We need, either in writing or another manner that We approve in
advance.
OFFICE means either Our servicing or home office.
POLICY DATE is the date shown on the current Data Pages. The Policy Date will
never be the 29th, 30th, or 31st of any month.
POLICY FACE AMOUNT is the insurance benefit provided by the policy without any
riders. The Policy Face Amount may be adjusted as described in the policy
Adjustment Options section. The Policy Face Amount is shown on Your current Data
Pages.
POLICY MONTH refers to any one-month period beginning on the Monthly Date.
POLICY VALUE is the sum of the values in the Divisions and the Loan Account, if
any.
POLICY YEAR means the one year period beginning on the Policy Date and ending
one day before the policy anniversary and each subsequent one year period
beginning on a policy anniversary.
Example: If the Policy Date is November 21, 2002, the first Policy Year
ends on November 20, 2003. The first policy anniversary falls on
November 21, 2003.
PREMIUM EXPENSE CHARGE is the charge deducted from premium payments to pay any
sales charge, state and local premium taxes, and the federal tax charge shown on
the current Data Pages.
PRORATED BASIS means the proportion the value of a particular Division bears to
the total value of all Divisions.
SEPARATE ACCOUNT means Principal Life Insurance Company Variable Life Separate
Account, which has Divisions to which Net Premiums may be allocated under this
policy. Refer to the Variable Life Separate Account provision for details.
SURRENDER VALUE is the Policy Value less any surrender charges. The Surrender
Value also includes any value provided by any rider benefit.
TARGET PREMIUM is a premium amount used to determine any applicable Premium
Expense Charge and surrender charge under a policy. Your Target Premium is shown
on Your current Data Pages.
TOTAL FACE AMOUNT is the Policy Face Amount plus the insurance benefit provided
by any Supplemental Benefit Rider issued with Your policy. If there is no
Supplemental Benefit Rider issued with Your policy, the Total Face Amount is the
Policy Face Amount. The Total Face Amount is shown on Your current Data Pages.
UNIT is the accounting measure used to calculate the Division values.
VALUATION DAY is any day that the New York Stock Exchange ("NYSE") is open for
trading, and trading is not restricted.
VALUATION PERIOD means the period beginning at the close of normal trading on
the NYSE, generally 4:00 p.m. E.T. on each Valuation Day, and ending at the
close of normal trading of the NYSE on the next Valuation Day.
WE, OUR, US means Principal Life Insurance Company.
YOU, YOUR means the owner of this policy.
PURCHASING AND KEEPING THE POLICY IN FORCE
PREMIUM PAYMENTS
Your first premium is due on the Policy Date. After that, You may pay premiums
at any time while this policy is in force. The amount of Your premiums is
subject to the Premium Payment Limits provision. We will confirm Our receipt of
premiums paid.
We will allocate the initial Net Premiums on the later of the Policy Date or the
Effective Date. During the Examination Period, We will allocate net premiums to
the Money Market Division if state law requires Us to refund the initial
premiums. We will re-allocate initial net premiums to the requested Division(s)
at the end of the Examination Period. If state law does not require refund of
premiums paid, the initial net premiums can be immediately allocated to any
available Division as directed in the application, unless You direct otherwise.
If the purchase of this policy falls within the definition of a replacement
under state law, We reserve the right to retain the initial Net Premiums in the
Money Market Division beyond the Examination Period to correspond with a
particular state's replacement requirements.
Unless You change them, Your initial percentages apply to future allocations of
premiums. The sum of the percentages for all Divisions must equal 100%.
PLANNED PERIODIC PREMIUMS
Preauthorized withdrawals may be set up on a monthly basis to allow Us to
automatically deduct premium payments from Your bank or other financial
institution account.
You may establish an annual, semiannual, or quarterly premium payment schedule.
We send You reminder notices of Your planned periodic premium, including the
amount and frequency of premium. These notices serve only as a reminder of Your
preference. You may change the amount and frequency of Your planned periodic
premiums by providing Notice to Us. Premiums are to be sent to the address We
provide in the reminder notices. You may also make unscheduled payments to Us at
Our Office.
PREMIUM PAYMENT LIMITS
You may make premium payments that are greater than the planned periodic
premium. However, We will refund any premiums that would disqualify this policy
as "Life Insurance" as defined in the Internal Revenue Code, Section 7702, as
amended. Unless otherwise directed, We will refund any premiums that would make
this policy a Modified Endowment Contract as defined in the Internal Revenue
Code, Section 7702A, as amended.
If any premium payment increases the policy's death proceeds by more than it
increases the Policy Value, We reserve the right to refund all or part of the
premium payment. If all or part of the premium payment is not refunded, We may
require satisfactory evidence of insurability.
GRACE PERIOD
A 61 day grace period begins when We mail a notice of impending policy
termination to You. We mail this notice to You when the Net Policy Value is
insufficient to cover the Monthly Policy Charge. This notice will be sent to
Your last post office address known to Us.
If We have not received the full reinstatement payment set out in Our notice,
(calculated in accordance with number 6 of the Reinstatement provision below) by
the end of the grace period, Your policy terminates.
If the Insured dies during a grace period, We will pay the death proceeds to the
beneficiary(ies).
TERMINATION
All policy privileges and rights of the owner under this policy terminate:
1. When You surrender Your policy;
2. When the death proceeds are paid;
3. When the maturity proceeds are paid; or
4. When the grace period ends without Our receipt of the reinstatement
payment amount, as described in the Grace Period provision.
REINSTATEMENT
If this policy terminates as described in the Grace Period provision and You
have not surrendered Your policy, You may reinstate it provided:
1. Such reinstatement is prior to the Maturity Date;
2. Not more than three years have elapsed since the policy terminated;
3. The Insured is alive;
4. You supply evidence which satisfies Us that the Insured is insurable
under Our underwriting guidelines then in effect;
5. You either repay or reinstate any policy loans and unpaid loan interest
on this policy existing at termination; and
6. You make payment in the amount of (a) plus (b divided by c) where:
a) is the amount by which Your Net Policy Value is less than zero
before deducting the Monthly Policy Charge on the Monthly Date
preceding the Grace Period;
b) is three Monthly Policy Charges;
c) is 1 minus the maximum Premium Expense Charge.
Reinstatement will be effective on the Monthly Date on or next following the
date We approve it. Your Policy Date will remain the original Policy Date. You
will receive new Data Pages upon reinstatement.
PREMIUM INVESTMENT OPTIONS
ALLOCATIONS
You may allocate Net Premiums to any of the Divisions. The sum of the allocation
percentages must equal 100%.
We will allocate Net Premiums according to Your most recently chosen
allocations.
You may change the allocation percentages by providing Us Notice.
DIVISIONS
The Separate Account is comprised of Divisions. Each Division invests in a
Mutual Fund. You may allocate Net Premiums to one or more of the Divisions.
Income, gains and losses, whether or not realized, from each Division's assets
are credited to or charged against that Division without regard to income, gains
or losses of other Divisions or Our other income, gains or losses.
VARIABLE LIFE SEPARATE ACCOUNT
The Separate Account is registered with the Securities and Exchange Commission
as a unit investment trust under the Investment Company Act of 1940, as amended.
Assets are put into the Separate Account Divisions to support this policy and to
support other variable life insurance policies We may offer. We own the assets
of the Separate Account. These assets are not part of Our general account.
Income, gains and losses of the Separate Account Divisions, whether or not
realized, are credited to or charged against the Separate Account Divisions'
assets, without regard to Our other income, gains or losses. The assets of the
Separate Account will be available to cover the liabilities of Our general
account only to the extent that the Separate Account assets exceed its
liabilities.
We reserve the right to add other Divisions, eliminate or combine existing
Divisions, or transfer assets in one Division to another. If shares of a Mutual
Fund are no longer available for investment, or in Our judgment investment in a
Mutual Fund becomes inappropriate considering the purpose of the Separate
Account, We may eliminate the shares of a Mutual Fund or a class of shares of a
Mutual Fund and substitute shares of another Mutual Fund or another class of a
Mutual Fund. Substitution may be made with respect to both existing investments
and the investment of future Net Premium payments. However, no such changes will
be made without notifying You and getting any required approval from the
appropriate state and/or federal regulatory authorities.
If We eliminate or combine existing Divisions, or transfer assets in one
Division to another, You may change Your allocation percentages and transfer any
value in the eliminated or combined Divisions to other Division(s). You may
exercise this right until the later of 60 days after 1) the effective date of
such change or 2) the date You receive notice of this right. You may exercise
this right at no charge only if You have an interest in the affected
Division(s).
BENEFITS WHILE POLICY IS IN FORCE
POLICY VALUES
Your Policy Value at any time is equal to the sum of the values You have in the
Loan Account and the Divisions.
DIVISION VALUE
The value for each Division is equal to the number of Units in that Division
multiplied by that Division's Unit value. The number of Units in a Division at
any time equals 1 minus 2, where:
1. Is the number of Units credited to the Division because of:
a. Net Premiums allocated to it, and
b. Amounts transferred to it; and
2. Is the number of Units redeemed from the Division because of:
a. Amounts deducted from it,
b. Amounts transferred from it, and
c. Amounts surrendered from it.
The number of Units credited or redeemed for a given transaction is equal to the
dollar amount of the transaction, divided by the Unit value on the Valuation Day
of the transaction.
UNIT VALUES
We will determine the Unit value for each Division at the end of each Valuation
Day.
The Unit value for each Division is obtained by multiplying the Unit value for
the immediately preceding Valuation Day by the particular Division's net
investment factor for the current Valuation Period.
NET INVESTMENT FACTOR
The net investment factor for a Division on any Valuation Day is equal to 1
divided by 2 where:
1. Is the net asset value of the underlying Mutual Fund shares held by
that Division at the end of such Valuation Day before any policy
transactions are made on that day; and
2. Is the net asset value of the underlying Mutual Fund shares held by
that Division at the end of the immediately preceding Valuation Day
after all policy transactions were made for that day.
We reserve the right to adjust the above formula for any taxes determined by Us
to be attributable to the operations of the Division.
LOAN ACCOUNT VALUE
You may borrow against Your Policy under certain conditions. When You take out a
loan, We redeem the amount of the loan from one or more of the Divisions and
transfer the proceeds into the Loan Account. For details of the Loan Account see
the Policy Loans provision.
TRANSFERS
TRANSFERS ALLOWED
You may transfer amounts between the Divisions as provided below. To request a
transfer, You must provide Us Notice. If We receive Your request prior to the
close of the NYSE, the transfer is made and value is determined as of that day.
Requests received after the close of the NYSE will be processed and values
determined as of the next Valuation Day. We reserve the right to not accept
transfer requests from someone requesting them for multiple contracts for which
they are not the owner. We also reserve the right to modify or revoke transfer
privileges.
TRANSFERS FROM DIVISIONS
You may transfer amounts from one Division to another by making either a
scheduled or unscheduled Division transfer as follows:
UNSCHEDULED DIVISION TRANSFERS - You may make unscheduled transfers from one
Division to another. You must specify the dollar amount or percentage to
transfer to and from each Division. We reserve the right to charge a transaction
charge as shown on the current Data Pages.
SCHEDULED DIVISION TRANSFERS - (Dollar Cost Averaging) - You may make scheduled
transfers from one Division to another, as follows:
1. Transfers will begin on the date You specify otherwise on the first
Monthly Date following receipt of Your request. The transfer date will
never be the 29th, 30th or 31st.
2. You must specify how often the transfers will occur (annually,
semi-annually, quarterly or monthly).
3. You must specify the dollar amount or percentage to transfer from and
to each Division and such amounts must be less than or equal to the
value of that Division.
4. The transfers will continue until the value in the Division(s) is
zero or We receive Notice to stop making the transfers.
5. We reserve the right to limit the number of Divisions from which
transfers may be made at the same time. In no event will the limit ever
be less than two.
AUTOMATIC PORTFOLIO REBALANCING
Automatic portfolio rebalancing (APR) allows You to maintain a specific
percentage of Your Net Policy Value in the Divisions You have selected over
time.
APR transfers:
1. Do not begin until the expiration of the Examination Offer (see
Examination Offer on the front cover of Your policy).
2. May be made on the frequency (monthly, quarterly, semi-annually or
annually) You specify on a calendar year or Policy Year basis.
3. Do not begin until We receive Your Notice.
Transfers are effective at the end of the Valuation Period during which We
receive Your Notice. APR is not available if You have scheduled division
transfers (dollar cost averaging).
POLICY LOANS
You may borrow against Your Policy Value with this policy as sole collateral.
You may borrow up to 90% of Your Net Surrender Value.
The minimum loan amount is shown on the current Data Pages.
LOAN ACCOUNT
If You borrow against Your Policy, We will redeem units from the Division(s) in
an amount equal to Your loan and transfer the redemption proceeds to Your Loan
Account. The effective date of the transfer is the date of the loan.
You may tell Us the proportion to redeem from each Division. If You do not tell
Us, the loan amount will be redeemed in the same proportion as the allocation
used for Your Monthly Policy Charge.
Your Loan Account will be part of Our general account and will be credited with
interest from the date of the loan. We will credit interest to Your Loan Account
at the interest rate shown on the current Data Pages. The interest rate is an
effective annual rate. Interest accrues daily.
LOAN INTEREST CHARGE
Interest charges accrue daily at the annual loan interest rate shown on the
current Data Pages. Interest is due and payable at the end of each Policy Year.
Any interest not paid when due is added to the loan principal and bears interest
at the same rate. The adding of unpaid interest charges to the loan principal
will cause additional amounts to be redeemed from the Divisions in the same
manner as described above for loans.
REPAYMENT
You may repay all or part of a policy loan as long as the policy is in force.
Any loan repayment amount is transferred from Your Loan Account and applied to
the Divisions in the same manner used to allocate premium payments. Any policy
loans and unpaid loan interest not paid prior to the Insured's death or maturity
are deducted from the death or maturity proceeds.
YOU SHOULD IDENTIFY THE PURPOSE OF ANY PAYMENT. IF YOU DO NOT, WE WILL APPLY ANY
PAYMENT FIRST TO REPAY ANY OUTSTANDING POLICY LOAN.
POLICY SURRENDER
FULL SURRENDER
You may surrender Your Policy in full for its Net Surrender Value by sending Us
Notice.
SURRENDER CHARGES
The Table of Surrender Charges is shown on the current Data Pages. Surrender
charges vary based on the Target Premium of the policy and will apply during the
first 10 Policy Years. Any Policy Face Amount increase has its own surrender
charge period (for 10 Policy Years) which begins on the Adjustment Date. The
surrender charge on the policy will be the total of the surrender charges for
the Policy Face Amount at issue and any Policy Face Amount increase. Decreases
in Policy Face Amount do not decrease surrender charges on the policy.
PARTIAL SURRENDERS
Each Policy Year after the first Policy Year, You may take partial surrenders
from the Net Surrender Value, subject to the following:
1. Each partial surrender must be in an amount not less than the minimum
amount shown on the current Data Pages; and
2. The amount surrendered may not exceed 90% of the Net Surrender Value.
The partial surrender will result in the redemption of Units in the Division
from which the partial surrender occurs. The partial surrender is effective at
the end of the Valuation Period during which We receive Your Notice.
You may tell Us in what proportion to allocate the amount of the partial
surrender from the Divisions. If You do not tell Us, We will withdraw the
partial surrender from the Divisions in the same proportion as the allocations
used for Your current Monthly Policy Charge.
Your Policy Value is reduced by the amount of the partial surrender plus any
transaction fee as shown on the current Data Pages.
If Option 1 death benefit is in effect and the Death Proceeds equal the Total
Face Amount, then the Total Face Amount is reduced by the amount of the partial
surrender and any transaction fee as shown on the current Data Pages. If You
have increased Your policy's Total Face Amount, any reduction of the Total Face
Amount will be made on a last in, first out basis. The resulting Total Face
Amount must be at least the minimum Total Face Amount for this policy as shown
on the current Data Pages. However, if You make a preferred partial surrender,
as described below, We will not reduce the Total Face Amount.
A preferred partial surrender is available only if Option 1 death benefit is in
effect. The maximum preferred partial surrender is equal to (a plus b) not to
exceed (c) where: a) is the amount of the partial surrender plus any transaction
charge; b) is the amount of any preferred partial surrenders in the same Policy
Year; c) is 5% of the Net Policy Value as of the end of the prior Policy Year.
The total preferred partial surrenders may not exceed Our maximum limits under
Our underwriting guidelines then in effect.
If Option 2 death benefit is in effect, then the Total Face Amount is not
reduced.
If Option 3 death benefit is in effect and Death Proceeds equal the Total Face
Amount, then the Total Face Amount is reduced by the lesser of (a) or (b) where:
a) is the partial surrender amount plus any transaction fee (as shown on the
current Data Pages); b) is the greater of (1) the amount that total partial
surrenders exceed total premiums paid or (2) zero.
If there have been increases in Total Face Amount, any reduction of the Total
Face Amount will be made on a last in, first out basis. The resulting Total Face
Amount must be at least the minimum Total Face Amount for this policy as shown
on the current Data Pages.
All partial surrenders will be subject to the limits as defined in the Internal
Revenue Code Section 7702, as amended. An increase in Total Face Amount may be
required in order to maintain compliance with the limits.
POLICY EXPENSES
MONTHLY POLICY CHARGES
On the Policy Date, and each Monthly Date thereafter, We will deduct a Monthly
Policy Charge.
The deduction for the Monthly Policy Charge is the sum of the following amounts:
1. The cost of insurance (described below) and the cost of additional benefits
provided by any rider in force for the policy month; and
2. The current asset based charge which will not exceed the maximum shown on
the current Data Pages.
We will withdraw the Monthly Policy Charge from the Policy Value.
The Monthly Policy Charge will be allocated:
1. The same as the allocation percentages You chose for Your premiums; or
2. Determined on a Prorated Basis; or
3. Any other allocation which We mutually agree upon.
If You do not designate Monthly Policy Charge allocation percentages, they will
be the same allocation percentages You chose for Your premiums. The sum of the
percentages for all the Divisions must equal 100. Changes in allocation
percentages may be made by providing Us Notice. Once approved by Us, they are
effective as of the next Monthly Date.
If the amount in a Division is insufficient to allow the allocation You chose,
Your Monthly Policy Charge will be allocated on a Prorated Basis.
COST OF INSURANCE
The cost of insurance on each Monthly Date is:
1. The cost of insurance rate as described in the Cost Of Insurance Rates
provision divided by 1,000; multiplied by
2. The net amount at risk.
The net amount at risk is the result of:
1. The death benefit as described in the Death Proceeds provision of this
policy at the beginning of the Policy Month, divided by 1.0024663; minus
2. The Policy Value at the beginning of the policy month calculated as if the
Monthly Policy Charge was zero.
COST OF INSURANCE RATES
The monthly cost of insurance rates at issue and for any underwritten Total Face
Amount increases are based on the age at issue and adjustment, duration since
issue and adjustment, risk classification, and smoking status of the Insured.
The monthly cost of insurance rates for any non-underwritten Total Face Amount
increases are based on the age at issue, duration since issue, risk
classification, and smoking status of the Insured. The monthly cost of insurance
rates are also based on gender of the Insured, unless otherwise indicated on
Your Data Pages. We determine these rates based on Our expectations as to Our
future investment earnings, expenses, mortality and persistency experience. Any
change in these rates applies to all individuals of the same class as the
Insured. The cost of insurance rates will never be greater than shown in the
Table of Guaranteed Maximum Cost of Insurance Rates on the current Data Pages.
PREMIUM EXPENSE CHARGE
We will deduct a Premium Expense Charge as shown on the current Data Pages from
each premium payment. The result will be the Net Premium payment.
DEATH PROCEEDS
We will pay the death proceeds, subject to the provisions of the policy, after
We receive Notice and proof that the Insured died before the Maturity Date. The
death proceeds, determined as of the date of the Insured's death, are 1 minus 2
where:
1. Is the death benefit described below plus any proceeds from any benefit
rider on the Insured's life; and
2. Is any outstanding policy loan and unpaid loan interest and, if the
Insured's death occurs during a grace period, any overdue Monthly Policy
Charges.
We will pay interest on death proceeds as required by law.
DEATH BENEFIT OPTIONS
This policy provides three death benefit options. The option in effect is shown
on the current Data Pages.
For any death benefit option, the applicable percentages are shown on Your Data
Pages.
Option 1.
Under Option 1, the death benefit equals the greater of:
1. The Total Face Amount; or
2. The amount found by multiplying Your Policy Value by the applicable
percentage shown on Your Data Pages.
Option 2.
Under Option 2, the death benefit equals the greater of:
1. The Total Face Amount plus Your Policy Value; or
2. The amount found by multiplying Your Policy Value by the applicable
percentage shown on Your Data Pages.
Option 3.
Under Option 3, the death benefit equals the greater of:
1. The Total Face Amount plus the greater of: a) premiums paid less partial
surrenders; and b) zero; or
2. The amount found by multiplying Your Policy Value by the applicable
percentage shown on Your Data Pages.
- --------------------------------------------------------------------------------
Age of Female/Unisex 10
CHANGES IN DEATH BENEFIT OPTIONS Payee Years
You may change the death benefit option on or after the first policy
anniversary. To request a change in the death benefit option, You must send Us
Notice. A change approved on a Monthly Date will be effective on that Monthly
Date. A change approved on other than a Monthly Date will be effective on the
next following Monthly Date. Changes in options are limited to two per Policy
Year and are subject to the following conditions:
1. If the change is from Option 1 to Option 2, We will reduce the Total Face
Amount. The reduction will be equal to the Policy Value on the effective
date of the change. If there have been increases in the Total Face Amount,
the reduction of the Total Face Amount will be made on a last in, first out
basis. The Total Face Amount after any reduction must be at least the
minimum Total Face Amount as shown on Your current Data Pages. We may
require proof of insurability which satisfies Us.
2. If the change is from Option 2 to Option 1, We will increase the Total Face
Amount. The increase will be equal to the Policy Value on the effective
date of change. The increase will be in the same proportion as the Policy
Face Amount to the Total Face Amount. No proof of insurability is required.
3. If the change is from Option 3 to Option 1, We may increase the Total Face
Amount if the total premiums paid are greater than any partial surrenders
and any transaction fee (as shown on the current Data Pages) to the date of
the change. The increase will be in the same proportion as the Policy Face
Amount is to the Total Face Amount. No proof of insurability is required.
4. If the change is from Option 3 to Option 2, We will adjust the Total Face
Amount. If there is an increase in Total Face Amount, the increase will be
in the same proportion as the Policy Face Amount to the Total Face Amount.
If there is a reduction of the Total Face Amount and there have been
increases in Total Face Amount, the reduction will be made on a last in,
first out basis. The amount of the adjustment will be determined by
subtracting the Policy Value from the greater of: a) total premiums paid
less partial surrenders; and b) zero. We may require proof of insurability.
5. You may not change from Option 1 to Option 3 or from Option 2 to Option 3.
6. A Death Benefit Option change will be subject to the limits as defined in
the Internal Revenue Code Section 7702, as amended. An additional increase
in Total Face Amount may be required in order to maintain compliance with
the limits.
MATURITY PROCEEDS
If the Insured is living on the policy's Maturity Date, We will pay You the
policy's maturity proceeds, which are equal to the Net Surrender Value.
BENEFIT PAYMENT OPTIONS
You may elect a benefit payment option for payment of Your death, maturity, or
surrender proceeds. If no benefit payment option has been elected at the
Insured's death, the beneficiary may apply the death proceeds to a benefit
payment option.
Once the proceeds are applied under a benefit payment option, this policy must
be exchanged for a supplementary contract.
Benefit payment options are based on the 1983a Annuity Mortality Table with
mortality projected 18 years by projection scale G at 3.0% interest, compounded
annually. Benefit payment options are also based on the gender of the payee
except for policies issued in states which require unisex rates or in connection
with benefit plans not based on the gender of the Insured.
If the payee's correct age or gender, if applicable, is not given to Us at the
time benefit options become payable, We will adjust the periodic income payable
under the supplementary contract. Any adjustment will be based on the amount of
periodic income that would have been purchased at the correct age and gender, if
applicable.
OPTION A. SPECIAL BENEFIT ARRANGEMENT - An individualized
- --------------------------------------
benefit option can be designed with Our approval.
OPTION B. LIFE INCOME - We will pay an income during a person's lifetime. You
may elect a minimum guaranteed period. Payments will be in an amount We
determine, but not less than guaranteed by this section (a 10 year guaranteed
period certain is shown in the table below). If the payee dies after payments
begin and before the end of any minimum guaranteed period, the remaining
payments will be paid to a payee named under the benefit option.
OPTION C. JOINT AND SURVIVOR LIFE INCOME - We will pay an income during the
lifetime of two persons and continuing until death of the survivor. You may
elect a minimum guaranteed period. Payments will be in an amount We determine,
but not less than guaranteed by this section (a 100% joint survivor life income
with 10 year guaranteed period certain is shown in the table below). If both
persons die after payments begin and before the end of any minimum guaranteed
period, the remaining payments will be paid to a payee named under the benefit
option.
OPTION B TABLES
Minimum monthly life income for each $1,000 of proceeds applied. We will make
the first payment on the effective date of the supplementary contract. Male and
Female/Unisex tables are provided.
Age of Male
Payee
55 4.40 55 4.03
56 4.48 56 4.10
57 4.57 57 4.17
58 4.66 58 4.25
59 4.76 59 4.33
60 4.87 60 4.41
61 4.97 61 4.50
62 5.09 62 4.60
63 5.21 63 4.70
64 5.33 64 4.80
65 5.47 65 4.91
66 5.60 66 5.03
67 5.75 67 5.16
68 5.89 68 5.29
69 6.05 69 5.43
70 6.21 70 5.57
71 6.37 71 5.73
72 6.54 72 5.89
73 6.71 73 6.06
74 6.88 74 6.24
75 7.05 75 6.42
- --------------- -------------- -------------- -------------------- -------------
OPTION C TABLES
Minimum monthly 100% joint and survivor life income for each $1,000 of proceeds
applied. We will make the first payment on the effective date of the
supplementary contract. Male, Female and Unisex tables are provided.
Male/Female:
- ---------------------- --------------------------------------------------------
Age of Female Payee
Age of Male Payee
- ---------------------- --------------------------------------------------------
- ---------------------- ----------- ----------------- ----------------- --------
55 60 62 65 70
- ---------------- ------------------------------ -----------------------------
- ---------------- ------------------------------ -----------------------------
60 3.82 4.04 4.12 4.25 4.45
62 3.85 4.09 4.19 4.33 4.57
65 3.90 4.16 4.28 4.45 4.74
70 3.95 4.26 4.40 4.62 5.01
75 3.99 4.33 4.48 4.75 5.24
- ---------------- ------------------------------ -----------------------------
Unisex:
- -----------------------------------------------------------------------------
Age of Younger Payee
Age of Older Payee
- ------------------ ------------------------------------------------------------
- ------------------ ---------------- ------------------------------------------
55 60 62 65 70
- ------------------ ---------------- ------------------------------------------
- ------------------ ---------------- ------------------------------------------
60 3.75 3.91
62 3.79 3.98 4.05
65 3.84 4.07 4.16 4.29
70 3.91 4.19 4.31 4.50 4.81
75 3.96 4.29 4.43 4.67 5.09
- ------------------ ---------------- ------------------------------------------
BENEFIT PAYMENT CONDITIONS
When You elect a benefit payment option:
1. Any amount payable to an assignee will be paid in one lump sum and any
remaining proceeds will then be applied to the elected benefit payment
option.
2. The proceeds applied must be at least $5,000 and result in periodic
payments of at least $25.
3. Benefit payment options are restricted if the recipient of benefits is not
a natural person.
4. Under Options B and C, one of the persons on whose life payments are based
must be the owner, Insured, or beneficiary. The size of payments depends on
the age and gender, where applicable, of the person or persons on whose
life payments are based. This will be determined as of the effective date
of the supplementary contract. We reserve the right to require evidence of
age, gender where applicable, and continuing survival.
ADJUSTMENT OPTIONS
ADJUSTING THE FACE AMOUNT
While Your policy is in force You may request an increase or decrease in the
Total Face Amount. Decreases may not be made during the first Policy Year. Any
adjustment request is subject to Our approval.
The request for a decrease in the Total Face Amount will be subject to the
limits as defined in the Internal Revenue Code Section 7702, as amended. A
decrease may not be allowed if the decrease would cause a refund of premium
and/or the distribution of the Policy Value in order to maintain compliance with
the limits. The Total Face Amount may not be decreased below the minimum shown
on Your Data Pages.
APPROVAL OF AN ADJUSTMENT
Any increase in Policy Face Amount or Total Face Amount will be in a risk
classification We determine, and will be approved if:
1. The Insured is alive; and
2. The Attained Age of the Insured is 75 or less; and
3. The amount of the Total Face Amount increase is at least the minimum Total
Face Amount increase shown on the current
Data Pages; and
4. You supply evidence which satisfies Us that the Insured is insurable under
Our underwriting guidelines then in effect; and
5. The death proceeds less the Policy Value does not exceed Our maximum limits
as defined under Our underwriting guidelines then in effect.
No adjustment will be approved if:
1. The Total Face Amount after adjustment would be less than the minimum Total
Face Amount shown on the current Data Pages; or
2. Your Monthly Policy Charges are being waived under any rider.
REQUESTING AN ADJUSTMENT
You must send Us Notice for an adjustment. The Insured and owner must sign a
Notice requesting a Total Face Amount increase. The Notice must show the Total
Face Amount desired after adjustment. An adjustment is effective on the
Adjustment Date.
RIGHT TO EXCHANGE POLICY
You may exchange this policy for a new life insurance policy We make available
for this purpose on the life of the Insured. The new policy will not be a term
insurance policy or a variable insurance policy. Evidence of insurability will
not be required.
The exchange must be made during the first 24 months from the Policy Date while
Your policy is in force, but not while it is in a grace period. The exchange
will be effective on Our receipt of written notice. This policy will then
terminate. The new policy will have the same Policy Date as this policy.
The new policy will have the same death benefit as this policy unless required
to be higher in order to qualify as "life insurance" as defined in the Internal
Revenue Code, Section 7702, as amended. The new policy will be based on the same
issue age, gender, and risk classification as this policy.
No additional charge will be made for this exchange privilege. Any outstanding
policy loans and unpaid loan interest must be repaid or transferred to the new
policy.
Any benefit riders included on this policy may be exchanged, without evidence of
insurability, for similar benefit riders on the new policy if:
1. You request the similar benefit rider to be included on the new policy; and
2. The similar benefit rider was available for the new policy on the Effective
Date of the benefit rider of this policy based on the same issue age,
gender, if applicable, and risk classification of the Insured.
OWNER, BENEFICIARY, ASSIGNMENT
OWNERSHIP
The owner is named in the application unless You change ownership as provided
below. As owner, You may exercise every right and privilege provided by Your
policy, subject to the rights of any irrevocable beneficiary(ies). Your
ownership rights and privileges continue while Your policy is in force.
BENEFICIARY
The beneficiary(ies) named in the application will receive the death proceeds
unless You change the beneficiary designation as provided below. If any
Beneficiary dies before the Insured, unless You direct otherwise, We will pay
the death proceeds to any surviving Beneficiary(ies) according to their
designated percentages. If no beneficiary(ies) survives the Insured, the death
proceeds will be paid to the owner or to the owner's estate unless otherwise
specified.
CHANGE OF OWNER OR BENEFICIARY
You may change the owner or beneficiary(ies) of this policy by sending Us
Notice. Our approval is needed and no change is effective until We approve it.
Once approved, the change is effective as of the date You signed the request. We
may require that You send Us this policy so We can record the change.
BENEFIT INSTRUCTIONS
While the Insured is alive, You may send Us instructions for the payment of the
death proceeds under one of the benefit payment options. Such instructions, or
change of instructions, must be in a format We specify. We must approve the
arrangement chosen before any payment is made. If You change beneficiary(ies),
prior benefit instructions are revoked.
ASSIGNMENT
You may assign Your policy as collateral for a loan. The assignment must be in
writing and filed in Our Office. We assume no responsibility for any
assignment's validity. An assignment as collateral does not change the owner.
The rights of beneficiaries, whenever named, except irrevocable beneficiaries,
become subordinate to those of the assignee.
GENERAL INFORMATION
THE CONTRACT
This policy, the attached application(s) and riders, any amendments to the
application(s), any adjustment and reinstatement application(s), and the current
Data Pages make up the entire contract. Any statements made in the
application(s), an adjustment application(s) or any amendments to the
application(s) will be considered representations and not warranties. No
statement, unless made in an application(s), or amendments thereto, will be used
to void Your policy (or void an adjustment in case of an adjustment
application(s)) or to defend against a claim.
ALTERATIONS
This policy may be altered by mutual agreement, but any alterations must be in
writing and signed by one of Our corporate officers. No one else, including the
agent, may change the contract or waive any provisions.
INCONTESTABILITY
With respect to statements made in the initial application(s) for this policy,
We will not contest this policy after the Insured has been alive for two years
after the Policy Date. With respect to statements made in any subsequent
application(s) for additional coverage or reinstatement application(s), We will
not contest the additional coverage or reinstated coverage resulting from such
application(s) after the Insured has been alive for two years after the date of
the adjustment or reinstatement. The time limits in this Incontestability
provision do not apply to fraudulent misrepresentations.
MISSTATEMENT OF AGE AND GENDER
If the age or gender, where applicable, of the Insured has been misstated, the
death benefit will be that which would be purchased by the most recent cost of
insurance rate charge at the Insured's correct age or gender, where applicable.
DEFERMENT
We will usually pay surrenders, partial surrenders, policy loans or maturity
proceeds within 5 Valuation Days after We receive Notice. We will usually pay
any death benefit within 5 Valuation Days after We receive 1) proof at Our
Office of the Insured's death, and 2) any other forms We may require to be
completed.
We may not be able to determine the value of the Divisions of Our Separate
Account if:
1. The NYSE is closed on other than customary weekend and holiday
closings, or trading on the NYSE is restricted as
determined by the Securities and Exchange Commission (SEC);
2. The SEC, by order, permits postponement; or
3. The SEC requires that trading be restricted or declares an emergency,
as a result of which disposal of securities is not reasonably
practicable or it is not reasonably practicable to determine the net
asset values of the Mutual Funds.
If any of the above events occur, We reserve the right to defer:
1. Determination and payment of any surrender, partial surrenders,
maturity proceeds, or death proceeds;
2. Payment of any policy loans;
3. Determination of the Unit values of the Divisions;
4. Any requested transfer between the Divisions; and
5. Application of Your death proceeds, maturity proceeds, or surrender
proceeds under Benefit Payment Options.
If payments are delayed and Your request for total surrender, partial surrender,
transfer or policy loan is not canceled by Your Notice, the amount of the
surrender, transfer or policy loan will be determined the first Valuation Date
following the expiration of the permitted delay. The death proceeds, maturity
proceeds, surrender or policy loan will be paid, or transfers made, within 5
Valuation Days thereafter.
SUICIDE
This policy's death proceeds will not be paid if the Insured dies by suicide,
while sane or insane, within 2 years of the Policy Date. Instead, We will return
all premiums paid, less any policy loans and unpaid loan interest, less any
partial surrenders. This amount will be paid to the beneficiary(ies).
Any Total Face Amount increase made under the adjustment options will not be
paid if the Insured dies by suicide, while sane or insane, within 2 years of the
Adjustment Date. Instead, We will return the sum of the cost of insurance
charges for the increased amount of protection. This amount will be paid to the
beneficiary(ies).
BASIS OF VALUES
Guaranteed maximum cost of insurance rates are based on the mortality table
referred to on the current Data Pages. We filed a detailed statement of the
method of calculating values and benefits with the insurance department of the
state in which this policy is written. The guaranteed values are greater than or
equal to those required by any state law.
STATEMENT OF VALUE
You will receive a statement once each Policy Year until the policy terminates.
The statement will show:
1. The current death benefit;
2. The current Policy and Surrender Values;
3. All premiums paid since the last statement;
4. All charges since the last statement;
5. Any policy loans and unpaid loan interest;
6. Any partial surrenders since the last statement;
7. Any investment gain or loss since the last statement; and
8. The value of each Division.
SF 660 3- 5 SAMPLE
SF 660 3 SAMPLE
[GRAPHIC OMITTED][GRAPHIC OMITTED]
Principal Life
Insurance Company
Des Moines, Iowa 50392-0001
DATA PAGES
- --------------------------------------------------------------------------------
Benefit Flexible Premium Variable Universal Life
- --------------------------------------------------------------------------------
POLICY DATA
Policy Number: Sample
Owner: John Doe
Insured's Name: John Doe
Insured's Risk Class: Standard Nonsmoker
Insured's Issue Age and Gender: (if sex distinct) 35, Male
Insured's Issue Age: (if unisex) 35
Policy Date: May 1, 2002
Policy Maturity Date: October 30, 2067
Policy Face Amount: $100,000.00
Supplemental Benefit Rider Face Amount: $100,000.00
Total Face Amount: $200,000.00
Death Benefit Option: Option 1
Life Insurance Qualification Test: Guideline Premium
Test {or Cash Value
Accumulation Test}
PLANNED PERIODIC PREMIUM: $1,000.00
Planned Premium Mode: Annual
Target Premium: $4,060.00
Death Benefit Guarantee Monthly Premium: $1,827.00
This policy is adjustable. If it is adjusted, we will send You new Data Pages.
The Data Pages are to be attached to and made a part of this policy.
We will charge and credit interest to the Loan Account as follows:
Policy Year Interest Rate Charged Interest Rate Credited
----------- --------------------- ----------------------
1 - 10 5.0% 4%
11 and after 4.3% 4%
- ----------------------------------------------------------------------------
RIDER DATA
SF 612 Aviation Exclusion Rider
- --------------------------------------
Effective Date: May 1, 2002
SF 654 Change of Insured Rider
- -------------------------------------
Effective Date: May 1, 2002
Expiration Date: Insured's Attained Age 70
SF 655 Death Benefit Guarantee Rider (CANNOT BE ISSUED WITH SBR)
- -----------------------------------------------------------------------
Effective Date: May 1, 2002
Expiration Date: Insured's Attained Age 85
SF 656 Enhanced Cash Surrender Value Rider
- -------------------------------------------------
Effective Date: May 1, 2002
Expiration Date: Fifth Policy Anniversary
- ------------------------------------------------------------------------------
Policy Year Of Surrender Additional Amount
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
1 {0-10%} of premium received since issue
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
2 {0-7.5%} of the sum of premium received since issue
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
3 {0-5%} of the sum of premium received since issue
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
4 {0-5%} of the sum of premium received since issue
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
5 {0-5%} of the sum of premium received since issue
- ------------------------------------------------------------------------------
SF 657 Extended Coverage Rider
- -------------------------------------
Effective Date: May 1, 2002
Expiration Date: Date of Insured's death
SF 618 Hazardous Sports Exclusion Rider
- ----------------------------------------------
Effective Date: May 1, 2002
SF 658 Supplemental Benefit Rider (CANNOT BE ISSUED WITH DBG)
- --------------------------------------------------------------------
Effective Date: May 1, 2002
Expiration Date: October 30, 2067
Supplemental Benefit Rider Face Amount: $100,000.00
Guaranteed Maximum Supplemental Benefit Cost of Insurance Rates
Monthly rates per $1,000.00 of Supplemental Benefit Rider Face Amount
Insured's Insured's Insured's
Attained Age Monthly Rate Attained Age Monthly Rate Attained Age Monthly Rate
35 0.14417 57 0.82917 79 7.46000
36 0.15167 58 0.91167 80 8.15667
37 0.16167 59 1.00417 81 8.93750
38 0.17250 60 1.10750 82 9.81833
39 0.18417 61 1.22250 83 10.79500
40 0.19833 62 1.35500 84 11.84833
41 0.21333 63 1.50500 85 12.95417
42 0.22917 64 1.67167 86 14.09833
43 0.24667 65 1.85417 87 15.26333
44 0.26583 66 2.05167 88 16.44417
45 0.28750 67 2.26333 89 17.65750
46 0.31083 68 2.49333 90 18.92083
47 0.33583 69 2.74833 91 20.26333
48 0.36333 70 3.03667 92 21.73500
49 0.39333 71 3.36583 93 23.47917
50 0.42750 72 3.74583 94 25.81917
51 0.46667 73 4.17583 95 29.32167
52 0.51167 74 4.64833 96 35.08250
53 0.56333 75 5.15333 97 45.08333
54 0.62083 76 5.68667 98 62.09583
55 0.68500 77 6.24417 99 83.33333
56 0.75500 78 6.82917
Basis of Values: Guaranteed maximum cost of insurance rates are based on 1980
CSO Mortality Table, Age Nearest Birthday, with distinction for the Insured's
gender and smoking status.
{NOTE: Table prints only when GPT is chosen on app.}
- --------------------------------------------------------------------------------
TABLE OF GUIDELINE PREMIUM TEST APPLICABLE PERCENTAGES
This policy complies with Section 7702 of the Internal Revenue Code under the
Guideline Premium Test, which requires that the total Death Benefit is greater
than or equal to the surrender value multiplied by the applicable percentage
from the following table.
Insured's Percentage of Insured's Percentage of Insured's Percentage of
Attained Age Cash Value Attained Age Cash Value Attained Age Cash Value
------------------
20 250.00 49 191.00 78 105.00
- ------------------
21 250.00 50 185.00 79 105.00
- ------------------
22 250.00 51 178.00 80 105.00
- ------------------
23 250.00 52 171.00 81 105.00
- ------------------
24 250.00 53 164.00 82 105.00
- ------------------
25 250.00 54 157.00 83 105.00
- ------------------
26 250.00 55 150.00 84 105.00
- ------------------
27 250.00 56 146.00 85 105.00
- ------------------
28 250.00 57 142.00 86 105.00
- ------------------
29 250.00 58 138.00 87 105.00
- ------------------
30 250.00 59 134.00 88 105.00
- ------------------
31 250.00 60 130.00 89 105.00
- ------------------
32 250.00 61 128.00 90 105.00
- ------------------
33 250.00 62 126.00 91 104.00
- ------------------
34 250.00 63 124.00 92 103.00
- ------------------
35 250.00 64 122.00 93 102.00
- ------------------
36 250.00 65 120.00 94 101.00
- ------------------
37 250.00 66 119.00 95 101.00
- ------------------
38 250.00 67 118.00 96 101.00
- ------------------
39 250.00 68 117.00 97 101.00
- ------------------
40 250.00 69 116.00 98 101.00
- ------------------
41 243.00 70 115.00 99 101.00
- ------------------
42 236.00 71 113.00
- ------------------
43 229.00 72 111.00
- ------------------
44 222.00 73 109.00
- ------------------
45 215.00 74 107.00
- ------------------
46 209.00 75 105.00
- ------------------
47 203.00 76 105.00
- ------------------
48 197.00 77 105.00
- ------------------
- ------------------
{NOTE: Table prints only when CVAT is chosen on app.}
- --------------------------------------------------------------------------------
TABLE OF CASH VALUE ACCUMULATION TEST APPLICABLE PERCENTAGES
This policy complies with Section 7702 of the Internal Revenue Code under the
Cash Value Accumulation Test, which requires that the total Death Benefit is
greater than or equal to the surrender value multiplied by the applicable
percentage from the following table.
Insured's Percentage of Insured's Percentage of Insured's Percentage of
Attained Age Cash Value Attained Age Cash Value Attained Age Cash Value
------------------
20 639.37 49 254.76 78 129.21
- ------------------
21 621.01 50 247.28 79 127.36
- ------------------
22 603.00 51 240.08 80 125.59
- ------------------
23 585.25 52 233.17 81 123.91
- ------------------
24 567.76 53 226.54 82 122.31
- ------------------
25 550.50 54 220.19 83 120.81
- ------------------
26 533.49 55 214.12 84 119.41
- ------------------
27 516.76 56 208.30 85 118.11
- ------------------
28 500.37 57 202.74 86 116.91
- ------------------
29 484.35 58 197.41 87 115.79
- ------------------
30 468.73 59 192.30 88 114.74
- ------------------
31 453.53 60 187.39 89 113.74
- ------------------
32 438.79 61 182.68 90 112.77
- ------------------
33 424.48 62 178.18 91 111.80
- ------------------
34 410.64 63 173.87 92 110.82
- ------------------
35 397.25 64 169.75 93 109.79
- ------------------
36 384.33 65 165.83 94 108.68
- ------------------
37 371.86 66 162.10 95 107.47
- ------------------
38 359.85 67 158.55 96 106.16
- ------------------
39 348.28 68 155.15 97 104.76
- ------------------
40 337.17 69 151.90 98 103.33
- ------------------
41 326.48 70 148.80 99 101.97
- ------------------
42 316.22 71 145.83
- ------------------
43 306.36 72 143.00
- ------------------
44 296.89 73 140.33
- ------------------
45 287.78 74 137.81
- ------------------
46 279.04 75 135.45
- ------------------
47 270.63 76 133.24
- ------------------
48 262.54 77 131.17
- ------------------
- ------------------
- --------------------------------------------------------------------------------
TABLE OF GUARANTEED MAXIMUM COST OF INSURANCE RATES
Monthly Rates Per $1,000.00 of the Net Amount at Risk
Insured's Monthly Rate Insured's Monthly Rate Insured's Monthly Rate
Attained Age Attained Age Attained Age
- ------------------
35 0.14083 57 0.79083 79 7.14333
- ------------------
36 0.14750 58 0.86833 80 7.80583
- ------------------
37 0.15667 59 0.95583 81 8.54333
- ------------------
38 0.16667 60 1.05333 82 9.37667
- ------------------
39 0.17833 61 1.16167 83 10.31583
- ------------------
40 0.19083 62 1.28500 84 11.34250
- ------------------
41 0.20583 63 1.42583 85 12.43333
- ------------------
42 0.22083 64 1.58500 86 13.56667
- ------------------
43 0.23833 65 1.76083 87 14.73250
- ------------------
44 0.25583 66 1.95000 88 15.90750
- ------------------
45 0.27667 67 2.15500 89 17.10750
- ------------------
46 0.29917 68 2.37500 90 18.34917
- ------------------
47 0.32333 69 2.61500 91 19.65333
- ------------------
48 0.34917 70 2.88583 92 21.06250
- ------------------
49 0.37833 71 3.24250 93 22.63583
- ------------------
50 0.40917 72 3.54667 94 24.63750
- ------------------
51 0.44583 73 3.95333 95 27.49667
- ------------------
52 0.48833 74 4.41000 96 32.04583
- ------------------
53 0.53583 75 4.90000 97 40.01667
- ------------------
54 0.59083 76 5.42167 98 54.83167
- ------------------
55 0.65167 77 5.97000 99 83.33333
- ------------------
56 0.71917 78 6.53917
- ------------------
- ------------------
Basis of Values: Guaranteed maximum cost of insurance rates are based on 1980
CSO Mortality Table, Age Nearest Birthday, with distinction for the Insured's
gender and smoking status.
CHARGES AND LIMITS
o Guaranteed Maximum Premium Expense Charge
- ------------------------- --------------------- ---------------------------------------------
YEAR(S) SINCE ISSUE
EXPENSE OR ADJUSTMENT CHARGE
- ------------------------- --------------------- ---------------------------------------------
- ------------------------- --------------------- ---------------------------------------------
SALES CHARGE 1-5 6.5% up to target premium; 5.0% thereafter
- ------------------------- --------------------- ---------------------------------------------
- ------------------------- --------------------- ---------------------------------------------
6+ 6.5% up to target premium; 6.5% thereafter
- ------------------------- --------------------- ---------------------------------------------
- ------------------------- --------------------- ---------------------------------------------
STATE AND FEDERAL TAXES All Years 3.45% on all premium
- ------------------------- --------------------- ---------------------------------------------
The charges in the chart above also apply to any premium attributable to any
face amount increase(s).
o The maximum annual asset based charge, deducted on a monthly basis, is as
follows:
Policy Year Monthly Charge
1 - 10 .40% Net Policy Value
11-and after .30% Net Policy Value
o The minimum Total Face Amount is $100,000.
o The minimum Total Face Amount increase is $10,000.
o No charge applies to the first Division transfer in a Policy Month. We will
charge $25.00 for each additional transfer.
o No charge applies to the first 2 partial surrenders (whether preferred or
not) in a Policy Year. Thereafter, We will charge $25.00 for each partial
surrender.
o The minimum partial surrender or loan amount is $500.
A surrender charge will be deducted from Your Policy Value if this policy is
surrendered for its Net Surrender Value or if this policy terminates within ten
years from issue or Policy Face Amount increase. Any Policy Face Amount increase
will have its own surrender charge. The charge for each Policy Year is shown in
the table below subject to adjustment for any Policy Face Amount increase.
Table of Surrender Charges
Policy Year Amount
----------- ------
1 $649.50
2 649.50
3 649.50
4 606.20
5 519.60
6 433.00
7 346.40
8 259.80
9 173.20
10 86.60
11 and later 0.00