2AFPVLI(01/00)-01
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
ONE CORPORATE DRIVE, P. O. BOX 883
SHELTON, CONNECTICUT 06484
(A Stock Company)
We pay the Death Proceeds to the Beneficiary upon receipt at our Office of due
proof of the death of the Insured while this Policy is in force and subject to
the terms and conditions on the following pages.
This Policy is issued in consideration of any Application, a copy of which may
be attached to and made a part of this Policy, and receipt at our Office of good
funds as payment of the Initial Premium. This Policy is subject to the laws of
the jurisdiction where it is delivered.
READ YOUR POLICY CAREFULLY
This is a legal contract between you and us.
RIGHT TO CANCEL
You may return this Policy to our Office or to the representative who solicited
its purchase within ten days after you receive it for a refund. The amount of
the refund will be the greater of (a) and (b), less any Debt, where: (a) is the
total amount of Premiums paid; and (b) is the Account Value as of the date we
receive the cancellation request In Writing plus any charges and fees deducted
from the Premiums paid or the Account Value.
Any portion of Premiums received before the Reallocation Date you choose to
allocate to the variable investment options is first allocated to the Automatic
Sub-account shown in the Schedule. As of the Reallocation Date shown in the
Schedule, we reallocate such Account Value to the Sub-accounts you select in the
proportions you indicate in your most recent allocation instructions to us.
Should you notify us that you intend to cancel this Policy prior to the
Reallocation Date, any amount then maintained in the Automatic Sub-account will
remain in that Sub-account until cancellation of this Policy. Any portion of
Premiums received before the Reallocation Date you choose to allocate directly
to any Fixed Allocation will not be allocated to the Automatic Sub-account.
Signed for American Skandia Life Assurance Corporation:
President
FLEXIBLE PREMIUM VARIABLE UNIVERSAL LIFE INSURANCE.
NON-PARTICIPATING.
VARIABLE INVESTMENT OPTIONS AND A FIXED ALLOCATION. DEATH BENEFIT PAYABLE UPON
DEATH OF THE INSURED WHILE THIS POLICY IS IN FORCE. ANY BENEFITS AND VALUES,
INCLUDING THE DEATH BENEFIT, BASED ON THE ACCOUNT VALUE IN THE VARIABLE
INVESTMENT OPTIONS, DEPEND ON INVESTMENT PERFORMANCE, MAY INCREASE OR DECREASE,
AND ARE THEREFORE NOT GUARANTEED. PLEASE REFER TO THE SECTIONS ENTITLED "ACCOUNT
VALUE IN THE SUB-ACCOUNTS" AND "DEATH BENEFIT" FOR A MORE COMPLETE EXPLANATION.
IF APPLICABLE, ANY ACCELERATED DEATH BENEFIT PAYMENTS UNDER THE TERMS OF ANY
SUCH RIDERS MAY REDUCE YOUR POLICY BENEFITS.
THERE IS NO MINIMUM GUARANTEED CASH VALUE.
LESS THAN 100% OF THE CASH VALUE IS AVAILABLE FOR A LOAN.
2
2AFPVLI(01/00)-02
TABLE OF CONTENTS
DEFINITIONS ...................................................................8
DEATH BENEFIT.................................................................11
INVESTMENT OF ACCOUNT VALUE...................................................13
OPERATIONS OF THE SEPARATE ACCOUNT............................................13
GENERAL ACCOUNT...............................................................14
CHARGES ...............................................................14
PREMIUM PAYMENT...............................................................15
ALLOCATION RULES..............................................................16
ACCOUNT VALUE AND CASH VALUE..................................................16
CASH VALUE CREDIT.............................................................18
TRANSFERS.....................................................................18
SURRENDER AND PARTIAL WITHDRAWAL..............................................19
POLICY LOANS..................................................................20
GRACE PERIOD AND REINSTATEMENT................................................20
YOUR RIGHTS, OWNERSHIP AND DESIGNATIONS.......................................21
GENERAL PROVISIONS............................................................21
POLICY PAYMENT OPTIONS........................................................23
PAYMENT OPTION TABLES.........................................................24
Copies of any Application and any riders and endorsements are attached.
3
2AFPVLI(01/00)-03
SCHEDULE
POLICY NUMBER:[001-00001] SPECIFIED AMOUNT AS OF [THE POLICY DATE]:$[100,000]
MINIMUM SPECIFIED AMOUNT: $50,000
MINIMUM AMOUNT BY WHICH YOU MAY CHANGE THE SPECIFIED AMOUNT: $5,000
DEATH BENEFIT OPTION AS OF [THE POLICY DATE]: [OPTION 1]
DEATH BENEFIT OPTION MAXIMUM ACCUMULATION AGE: AGE 70
DEATH BENEFIT OPTION ACCUMULATION RATE: [MAXIMUM OF 5.0%]
ISSUE DATE: [JANUARY 1, 2000] POLICY DATE: [JANUARY 1, 2000]
REALLOCATION DATE: [JANUARY 16, 2000]
OWNER: [JOHN DOE]
OWNER: [MARY DOE]
INSURED: [JOHN DOE]
INSURED'S DATE OF BIRTH: [JANUARY 1,1965] INSURED'S SEX: [MALE]
INSURED'S RISK CLASS: [NON-TOBACCO, PREFERRED]
TYPE OF BUSINESS: [NON-QUALIFIED]
INITIAL PREMIUM: $[3,743.00]
DEFINITION OF LIFE INSURANCE TEST: [GUIDELINE PREMIUM TEST]
PARTIAL WITHDRAWAL AVAILABILITY: AFTER THE 10TH POLICY YEAR
PARTIAL WITHDRAWALS: AMOUNTS EQUAL TO TIER 2 PREMIUMS MAY BE WITHDRAWN AT ANY
TIME. A PARTIAL WITHDRAWAL OF OTHER POLICY CASH VALUE MAY BE MADE AFTER THE
TENTH POLICY YEAR.
PARTIAL WITHDRAWAL FEE: $25.00
MINIMUM PARTIAL WITHDRAWAL AMOUNT: $1,000.00
MINIMUM CASH VALUE AFTER A PARTIAL WITHDRAWAL: $1,000.00
MAXIMUM PARTIAL WITHDRAWAL AMOUNT: 90% OF THE CASH VALUE
MINIMUM AMOUNT REQUIRED TO BE IN AN INVESTMENT OPTION IMMEDIATELY AFTER A
TRANSFER OR PARTIAL WITHDRAWAL: $500
CASH VALUE CREDIT PERCENTAGE: 0.50% OF THE CASH VALUE
CASH VALUE TRIGGER: 200% OF PREMIUMS PAID
4
2AFPVLI(01/00)-04
SCHEDULE (CONTINUED)
PREMIUM TRIGGER: THE POLICY HAS BEEN IN FORCE FOR AT LEAST SEVEN YEARS, AND
TOTAL PREMIUMS PAID, LESS WITHDRAWALS AND DEBT, EQUAL OR EXCEED CUMULATIVE
MAXIMUM ANNUAL TIER 1 PREMIUMS ON A POLICY ANNIVERSARY.
MAXIMUM ANNUAL TIER 1 PREMIUM AS OF [THE POLICY DATE]: $[3,743.00]
TIER 1 PREMIUM GUARANTEED ACCEPTANCE PERIOD: 7 YEARS
CONTINGENT DEFERRED SALES CHARGE:
[
- ----------------------- ---------------------
PERCENTAGE OF TIER
1 PREMIUMS PAID
POLICY YEAR
- ----------------------- ---------------------
- ----------------------- ---------------------
1 30%
- ----------------------- ---------------------
- ----------------------- ---------------------
2 20%
- ----------------------- ---------------------
- ----------------------- ---------------------
3 16%
- ----------------------- ---------------------
- ----------------------- ---------------------
4 12%
- ----------------------- ---------------------
- ----------------------- ---------------------
5 8%
- ----------------------- ---------------------
- ----------------------- ---------------------
6 4%
- ----------------------- ---------------------
- ----------------------- ---------------------
7 2%
- ----------------------- ---------------------
- ----------------------- ---------------------
8 and higher -0-
- ----------------------- ---------------------
]
AUTOMATIC SUB-ACCOUNT: MONEY MARKET
TARGET DATE: THE POLICY ANNIVERSARY ON OR IMMEDIATELY AFTER WHICH THE INSURED
ATTAINS AGE 75
PREMIUM CUT-OFF AGE: THE POLICY ANNIVERSARY ON OR IMMEDIATELY AFTER WHICH THE
INSURED ATTAINS AGE 100
TRANSFER FEE: $10 PER TRANSFER AFTER THE TWELFTH IN EACH POLICY YEAR
MORTALITY AND EXPENSE RISK CHARGE:
POLICY YEARS 1-15: 0.90% PER YEAR
POLICY YEARS 16 AND HIGHER: 0.25% PER YEAR
ADMINISTRATION CHARGE: 0.25% PER YEAR
TAX CHARGE: [X.XX%] AS OF THE POLICY DATE ON EACH PREMIUM AS PAID, AND ON ANY
LOAN TRANSFERRED FROM ANOTHER POLICY AS THE RESULT OF AN EXCHANGE
SALES CHARGE: 0.40% PER YEAR DURING THE FIRST 10 POLICY YEARS
5
2AFPVLI(01/00)-05
SCHEDULE (CONTINUED)
FIXED OPTION INTEREST RATE MINIMUM: 3.0% PER YEAR, COMPOUNDED YEARLY
NET AMOUNT AT RISK DISCOUNT RATE: 4.0% PER YEAR
POLICY LOANS:
POLICY LOAN INTEREST RATE: 6.0% PER YEAR, COMPOUNDED YEARLY IN ARREARS
INTEREST RATE CREDITED TO THE ACCOUNT VALUE IN THE LOAN ACOUNT: NOT
LESS THAN 5.5% PER YEAR, COMPOUNDED YEARLY
MAXIMUM PREFERRED LOAN PERCENTAGE: 25.0%
MAXIMUM LOAN VALUE PERCENTAGE: 90.0% OF THE CASH VALUE
MINIMUM LOAN AMOUNT: $1,000.00
VARIABLE SEPARATE ACCOUNT:
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION SEPARATE ACCOUNT F
OFFICE: AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
[P.O. BOX 290698
WETHERSFIELD, CONNECTICUT 06129-0698
Telephone: 1-888-554-3348
www.AmericanSkandia.com]
-----------------------
6
2AFPVLI(01/00)-06
SCHEDULE (CONTINUED)
TABLE OF GUARANTEED MONTHLY COST OF INSURANCE RATES
PER $1,000 NET AMOUNT AT RISK
This table shows the guaranteed monthly cost of insurance rates applicable to
this Policy. Rates actually used cannot exceed these rates. These rates are per
$1,000 Net Amount at Risk. They are based on the Age of the Insured, and on the
sex and risk class shown in the Schedule. These rates are based on the 1980
Commissioners Standard Ordinary Mortality Table, Age Last Birthday,
differentiated as to [sex and tobacco use], with a percentage multiple applied
for substandard classes. The rates shown below are for the Policy Date and
subsequent Policy Anniversaries. The rates are level within each Policy Year. No
cost of insurance charge is assessed on or after the Premium Cut Off Age.
We may change the cost of insurance rates actually used, but they can never
exceed the rates shown in this table. Any change in the cost of insurance rates
will apply uniformly to all members of the same class.
[
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
Policy Year Rate Policy Year Rate Policy Year Rate
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
1 .14428 36 3.08860
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ -----------------
2 .15179 37 3.42980
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
3 .16181 38 3.82530
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
4 .17266 39 4.27493
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
5 .18435 40 4.77159
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
6 .19855 41 5.30544
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
7 .21358 42 5.87269
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
8 .22946 43 6.46947
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
9 .24700 44 7.09996
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
10 .26622 45 7.78482
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
11 .28796 46 8.54724
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
12 .31137 47 9.40951
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
13 .33646 48 10.39222
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
14 .36406 49 11.49455
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
15 .39419 50 12.69876
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
16 .42851 51 13.98063
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
17 .46787 52 15.32651
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
18 .51311 53 16.71801
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
19 .56509 54 18.15089
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
20 .62296 55 19.64755
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
21 .68759 56 21.23308
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
22 .75815 57 22.94951
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
23 .83297 58 24.87000
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
24 .91627 59 27.20133
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
25 1.00976 60 30.42888
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
26 1.11430 61 35.49222
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
27 1.23080 62 44.51508
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
28 1.36520 63 62.83141
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
29 1.51760 64 83.33333
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
30 1.68724 65 83.33333
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
31 1.87335
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
32 2.07519
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
33 2.29201
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
34 2.52819
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
35 2.79077
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
]
See the Charges Section of this Policy for a description of the
calculation of monthly cost of insurance.
7
2AFPVLI(01/00)-07
SCHEDULE (CONTINUED)
TABLE OF INSURANCE FACTORS
The following Insurance Factors are multiplied by the Account Value to determine
the Minimum Required Death Benefit. They are based on the Definition of Life
Insurance Test you selected as shown in the Schedule. [The Insurance Factors
below remain level within each Policy Year.] Your selection of the Definition of
Life Insurance Test is not subject to change on or after the Issue Date.
[
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
Policy Year Insurance Factor Policy Year Insurance Factor Policy Year Insurance
Factor
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
1 2.50 36 1.15
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ -----------------
2 2.50 37 1.13
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
3 2.50 38 1.11
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
4 2.50 39 1.09
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
5 2.50 40 1.07
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
6 2.50 41 1.05
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
7 2.43 42 1.05
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
8 2.36 43 1.05
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
9 2.29 44 1.05
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
10 2.22 45 1.05
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
11 2.15 46 1.05
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
12 2.09 47 1.05
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
13 2.03 48 1.05
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
14 1.97 49 1.05
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
15 1.91 50 1.05
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
16 1.85 51 1.05
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
17 1.78 52 1.05
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
18 1.71 53 1.05
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
19 1.64 54 1.05
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
20 1.57 55 1.05
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
21 1.50 56 1.05
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
22 1.46 57 1.04
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
23 1.42 58 1.03
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
24 1.38 59 1.02
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
25 1.34 60 1.01
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
26 1.30 61 1.00
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
27 1.28 62 1.00
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
28 1.26 63 1.00
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
29 1.24 64 1.00
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
30 1.22 65 1.00
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
31 1.20
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
32 1.19
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
33 1.18
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
34 1.17
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
35 1.16
------------------ ----------------- ---------------- ----------------- ----------------- ----------------
]
2AFPVLI(01/00)-8 8
DEFINITIONS
The following are key terms used in this Policy. Other terms are defined as they
occur.
Account Value: The value of each allocation to any Sub-account and any Fixed
Allocation, plus any earnings and less any losses, distributions and charges
thereon, plus the value of amounts transferred to the Loan Account, plus any
earnings less any distributions and charges thereon, all before assessment of
any contingent deferred sales charge or any Debt. Account Value is determined
separately for each Sub-account and each Fixed Allocation, as well as for any
amounts in the Loan Account, and then totaled to determine Account Value for the
Policy.
Age: Initially, and for the first Policy Year, the Insured's age last birthday
on the Policy Date. In each following Policy Year, it is the age last birthday
of the Insured as of the preceding Policy Anniversary.
Anniversary Value: The Account Value on any previous Policy Anniversary less any
partial withdrawals since that Anniversary.
Application: The form or combination of forms we require you to submit when you
are applying for issue or reinstatement of this Policy, or for any change in the
Specified Amount, or any form or combination of forms we may require when adding
an additional benefit.
Beneficiary: The person or entity you designate on whose behalf any Death
Proceeds are payable. Unless otherwise specified, Beneficiary refers to all
persons or entities so designated.
Cash Value: The Account Value less any contingent deferred sales charge and less
any unpaid charges and Debt.
Cash Value Credit: An amount we credit to your Account Value on each Policy
Anniversary on or after the requirements described in the Cash Value Credit
section of this Policy have first been satisfied.
Code: The Internal Revenue Code of 1986, as amended from time to time, and the
regulations thereunder.
Death Benefit: The amount payable as a result of the Insured's death, before
reduction for any Debt and for any unpaid charges, and before the addition of
any interest due pursuant to law.
Death Proceeds: The amount payable as a result of the Insured's death, after
reduction for any Debt and for any unpaid charges, and after the addition of any
interest due pursuant to law.
Debt: The total of all Policy loans and accrued loan interest.
Fixed Allocation: An allocation of Account Value that is to be credited a fixed
rate of interest until the subsequent Policy Anniversary.
Guaranteed Minimum Death Benefit: The minimum amount we guarantee is due as a
result of the Insured's death, prior to reduction for any Debt and any unpaid
charges.
In Writing: In a written form, in a manner we accept, that is satisfactory to us
and filed at our Office. We retain the right to specifically agree in advance to
accept communication regarding a specific matter by telephone or by some other
form of electronic transmission, in a manner we prescribe.
2AFPVLI(01/00)-9 9
Initial Premium: Premium paid on or before the Issue Date. The Initial Premium
is shown in the Schedule.
Insurance Factor: The amount by which the Account Value is multiplied to
determine the Minimum Required Death Benefit.
Insured: The person named in the Schedule upon whose life coverage is issued and
upon whose death the Death Proceeds are payable.
Issue Date: The date we issue this Policy. The Issue Date is shown in the
Schedule.
Life Insurance: This is a policy outlining a life insurance company's promise to
pay benefits upon the death of an Insured, where such a policy achieves certain
federal income tax treatment by complying with one of two tests which are
provided in the definition of Life Insurance in the Code. The test you selected
to be applicable to this Policy is shown in the Schedule, and may not be changed
on or after the Issue Date.
Loan Account: That portion of the Account Value that is used as collateral for a
loan from us.
Minimum Required Death Benefit: The minimum amount due as a result of the
Insured's death pursuant to the applicable Definition of Life Insurance Test we
apply as shown in the Schedule and in accordance with the Code, before any
reduction for Debt.
Monthly Processing Date: The Valuation Day each month we deduct charges taken
from the Account Value. The first Monthly Processing Date is the Policy Date.
Subsequent Monthly Processing Dates generally occur on the same day of the month
as the Policy Date. In any month that date is not a Valuation Day, the Monthly
Processing Date that month will be the next following Valuation Day.
Net Amount at Risk: The Net Amount at Risk is the Death Benefit less the Account
Value. However, when we calculate the cost of insurance charge on a Monthly
Processing Date based on the Net Amount at Risk, we, for this purpose only,
project the Death Benefit forward one month assuming no change in the Account
Value and then discount that amount for one month. We use the Net Amount at Risk
Discount Rate shown in the Schedule for this purpose.
Office: Our administrative office, as shown in the Schedule, is the location
where all requests regarding this Policy are to be sent.
Owner: The person(s) or entity(ies) who may exercise the ownership rights
provided by this Policy. The Owner is shown in the Schedule unless later
changed.
Policy: The insurance contract we issue as evidence of our commitment to pay the
Death Proceeds upon the death of the Insured.
Policy Anniversary: The yearly anniversary of the Policy Date.
Policy Date: The date as of which coverage under this Policy begins.
Policy Years: The continuous 12-month periods that begin on the Policy Date and
on each Policy Anniversary thereafter.
Portfolio: An underlying mutual fund, a portfolio of an underlying mutual fund,
or another pooled investment vehicle as permitted by law.
2AFPVLI(01/00)-10 10
Premium: The cash consideration you give to us for the rights, privileges and
benefits provided by this Policy. This includes the Initial Premium and any
additional consideration we agree to accept.
Premium Cut-off Age: The Age at which we will no longer accept Premium payments.
The Premium Cut-off Age is shown in the Schedule.
Reallocation Date: The date on which we reallocate Account Value from the
Automatic Sub-account to the Sub-accounts you select in the proportions you have
indicated in your most recent allocation instructions to us.
Separate Account: The variable separate account, shown in the Schedule, to which
we allocate assets in relation to our obligations for benefits based on the
variable investment options.
Specified Amount: An amount, shown in the Schedule, that is one of the measures
used to calculate the Death Benefit under this Policy.
Sub-account: A division of the Separate Account shown in the Schedule.
Target Date: The last Policy Anniversary, as shown in the Schedule, that the
Anniversary Value may increase.
Tier 1 Premiums: Tier 1 Premiums are subject to a contingent deferred sales
charge upon surrender.
Tier 2 Premiums: Tier 2 Premiums are not subject to a contingent deferred sales
charge at any time.
Unit: A measure used to calculate Account Value in a Sub-account.
Unit Price: The Unit Price is used for calculating: (a) the number of Units
allocated to a Sub-account; and (b) the value of transactions into or out of a
Sub-account or benefits based on Account Value in a Sub-account. Each
Sub-account has its own Unit Price, which will vary with each Valuation Period
reflecting the investment experience of that Sub-account.
Valuation Day/Date: Every day the New York Stock Exchange is open for trading or
any other day that the Securities and Exchange Commission requires mutual funds
or unit investment trusts to be valued.
Valuation Period: The period of time between the close of business of the New
York Stock Exchange on successive Valuation Days.
"we", "us", "our" means American Skandia Life Assurance Corporation.
"you" or "your" means the Owner(s) shown in the Schedule.
2AFPVLI(01/00)-11 11
DEATH BENEFIT
Death Benefit: Prior to the Premium Cut-off Age, the Death Benefit under this
Policy, as of the date Death Proceeds are payable, is equal to the greatest of
the Basic Death Benefit, the Minimum Required Death Benefit and the Guaranteed
Minimum Death Benefit. On or after the Premium Cut-off Age, the Death Benefit is
the Account Value as of the date Death Proceeds are payable.
Basic Death Benefit: The Death Benefit Options available in this Policy are as
follows:
- -----------------------------------------------------------------------------------------------------------------
Death Benefit Option Basic Death Benefit
- -----------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------
Option 1 Specified Amount
- -----------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------
Option 2 Specified Amount plus Account Value
- -----------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------
Option 3 If the Insured's Age is less than the Death Benefit option maximum
------------------------------------------------------------------
accumulation age:
----------------
(a) the Specified Amount; plus
(b) the total Premiums paid, not including any
Premiums paid for additional benefits,
plus any transferred tax basis pursuant to
the Code and less any withdrawals.
If the Insured's Age equals or exceeds the
Death Benefit option maximum accumulation age:
The Basic Death Benefit in effect on the
Policy Anniversary the Insured's Age equaled
the Death Benefit option maximum accumulation
age, less subsequent withdrawals.
The Death Benefit option maximum accumulation
age is shown in the Schedule.
- -----------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------
Option 4 If the Insured's Age is less than the Death Benefit option maximum
------------------------------------------------------------------
accumulation age:
----------------
(a) the Specified Amount; plus
(b) each Premium paid, not including any
Premiums paid for additional benefits,
plus any transferred tax basis pursuant to
the Code and less each withdrawal, each
accumulated at the Death Benefit option
accumulation rate.
If the Insured's Age equals or exceeds the
Death Benefit option maximum accumulation age:
The Basic Death Benefit in effect on the
Policy Anniversary the Insured's Age equaled
the Death Benefit option maximum accumulation
age, less subsequent withdrawals.
The Death Benefit option maximum accumulation
age and the accumulation rate are shown in the
Schedule.
- -----------------------------------------------------------------------------------------------------------------
The Basic Death Benefit can never be less than the Specified Amount. Your
selection of Death Benefit option is shown in the Schedule.
Minimum Required Death Benefit: The Minimum Required Death Benefit is determined
by multiplying the Account Value as of the date the Death Proceeds become
payable by the applicable Insurance Factor shown in the Schedule.
2AFPVLI(01/00)-12 12
Guaranteed Minimum Death Benefit: All references below to Premium do not include
any Premium for additional benefits. The Guaranteed Minimum Death Benefit is
determined as follows:
(a) On the Policy Date: The Guaranteed Minimum Death Benefit equals the
Initial Premium.
(b) After the Policy Date and before the first Policy Anniversary: The
Guaranteed Minimum Death Benefit equals total Premiums paid less any
partial withdrawals.
(c) After the first Policy Anniversary but before the Target Date shown in
the Schedule: The Guaranteed Minimum Death Benefit is the greater of
(1) and (2), where:
(1) is total Premiums paid less any partial withdrawals; and (2) is the
highest Anniversary Value.
(d) On or after the Target Date shown in the Schedule: The Guaranteed
Minimum Death Benefit is the greater of (1) and (2), where:
(1) is total Premiums paid less any partial withdrawals; and
(2) is the highest Anniversary Value as of the Target Date, less any
partial withdrawals since the Target Date.
Changes after Issue: After the first Policy Year, and while the Insured is
alive, you may request In Writing a change, subject to our approval, in the
Death Benefit option and/or Specified Amount. The effective date of any change
in the Death Benefit option and/or Specified Amount is the Monthly Processing
Date coinciding with or next following the date we approve your request In
Writing. Any change in the Death Benefit option and/or Specified Amount is
subject to the following conditions:
(a) An increase in Specified Amount is subject to evidence of insurability
satisfactory to us and is not allowed if the Insured does not meet our
then current underwriting rules or such a change is not permitted
pursuant to any applicable law or regulation.
(b) If the Death Benefit option is changed, the Specified Amount will be
recalculated, if necessary, so that the Death Benefit immediately after
the change equals the Death Benefit immediately before the change.
(c) We will require evidence of insurability for any change into Death
Benefit option 3 or Death Benefit option 4. Subsequent to any change
into Death Benefit option 3 or Death Benefit option 4, the Death
Benefit calculations are based on Premiums paid subsequent to such a
change.
(d) No more than one change in Death Benefit option is allowed each Policy
Year.
(e) A request to reduce the Specified Amount during the first seven Policy
Years or within five years of an increase to the Specified Amount will
be subject to our prior approval.
(f) The minimum amount by which you may change the Specified Amount is
shown in the Schedule.
(g) A change in Specified Amount or Death Benefit option will not be
allowed if it will reduce the Specified Amount below the minimum
Specified Amount shown in the Schedule.
(h) On any change in Specified Amount, including one resulting from a Death
Benefit option change, Tier 1 Premiums will be increased or decreased
by the same percentage as the Specified Amount. This change in Tier 1
Premiums may affect the calculation of any future contingent deferred
sales charge.
Death Proceeds: The Death Proceeds become payable to the Beneficiary as of our
receipt, at our Office, of all of the following: (1) due proof of death
satisfactory to us that the Insured died while this Policy was in force; (2) all
representations we require or which are mandated by applicable law or regulation
in relation to the death claim and the payment of Death Proceeds; and (3) any
applicable election of the mode of payment, if not previously elected by you.
The Death Proceeds payable are equal to: (a) the Death Benefit as of the date we
receive all items listed above; plus (b) any Death Benefit provided by any
additional benefit riders under this Policy; minus (c) any Debt; minus
.
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2AFPVLI(01/00)-13
(d) any due and unpaid monthly deductions, including those charges that
would be required to keep this Policy from lapsing, if the Insured dies
during any grace period; plus,
(e) any interest required by law
The Death Proceeds may be paid in a lump sum or applied under one of the payment
options described in this Policy. They may also be applied under any other
payment option selected by the Beneficiary and agreed to by us, if not elected
by you before we receive due proof of the Insured's death.
Due Proof of Death: Due proof of death consists of any of the following: (1) a
certified copy of a death certificate; (2) a certified copy of a decree of a
court of competent jurisdiction as to the finding of death; and (3) any other
proof satisfactory to us.
INVESTMENT OF ACCOUNT VALUE
General: We offer a range of variable investment options and Fixed Allocations
as ways to invest your Account Value. You may maintain Account Value in multiple
investment options, subject to the limits set forth in the Allocation Rules
section of this Policy. You may transfer Account Value between investment
options, subject to the requirements set forth in the Transfers section of this
Policy. Transfers may be subject to a fee, as shown in the Schedule.
Variable Investment Options: We offer a number of Sub-accounts as variable
investment options. These are all Sub-accounts of the Separate Account shown in
the Schedule.
The investment policy of the Separate Account will not be changed without the
approval of the Insurance Commissioner of the State of Connecticut. Any such
approval will be on file with the Commissioner.
Fixed Allocation: We credit interest to Fixed Allocations. From time to time we
declare interest rates applicable to new Fixed Allocations. If you make a Fixed
Allocation, we credit the rate then in effect to that Fixed Allocation until the
next Policy Anniversary. Once that Policy Anniversary is reached, we credit, for
the next Policy Year, the then current rate applicable to new Fixed Allocations.
This applies to all your Fixed Allocations then in effect. During each
subsequent Policy Year, the rate we credit for each Policy Year is the one in
effect for new Fixed Allocations at the beginning of the Policy Year. The
interest rates we credit are determined by us and are subject to a minimum. The
minimum is shown in the Schedule.
You may allocate part or all of any Premium, less applicable charges, to a Fixed
Allocation. You may transfer all or part of the Account Value attributable to
the variable investment options into a Fixed Allocation. Transfers from the
Fixed Allocations are subject to the limitations discussed in the Transfers
section of this Policy.
OPERATIONS OF THE SEPARATE ACCOUNT
General: The assets supporting our obligations under this Policy may be held in
various accounts, depending on the obligation being supported. Assets supporting
obligations based on the Account Value allocated to the variable investment
options are maintained in the Separate Account shown in the Schedule. This
Separate Account consists of multiple Sub-accounts. This Separate Account was
established by us pursuant to Connecticut law. This Separate Account also holds
assets of other policies issued by us with values and benefits that vary
according to the investment performance of this Separate Account. The assets of
the Separate Account will be valued at least monthly.
We are the legal owner of assets in the Separate Account. Income, gains and
losses, whether or not realized, from assets allocated to the Separate Account,
are credited to, or charged against, the Separate Account in accordance with the
terms of the policies supported by such assets without regard to our other
income, gains or losses or to the income, gains or losses in any other of our
separate accounts. We will maintain assets in the Separate Account with a total
market value at least equal to the reserve and other liabilities we must
maintain in relation to the Policy obligations supported by such assets. These
assets may only be charged with liabilities which arise from such policies.
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2AFPVLI(01/00)-14
Values and benefits based on allocations to the Sub-accounts will vary with the
investment performance of the Portfolios, as applicable. We reserve the right to
transfer assets of the Separate Account, which we determine to be associated
with the class of policies to which this Policy belongs, to another Separate
Account. If this type of transfer is made, the term "Separate Account" as used
in this Policy will mean the Separate Account to which the assets were
transferred.
The assets of the Separate Account will be available to cover the liabilities of
our general account only to the extent that the assets of the Separate Account
exceed the liabilities of the Separate Account arising under the policies
supported by the Separate Account.
The Separate Account is registered with the Securities and Exchange Commission
(the "SEC") under the Investment Company Act of 1940 as a unit investment trust,
which is a type of investment company. This does not involve any supervision by
the SEC of the investment policies, management or practices of the Separate
Account or of us.
GENERAL ACCOUNT
We maintain assets in our general account to support our obligations: (1) for
that portion of the Account Value allocated to any Fixed Allocation; (2) equal
to the Account Value in the Loan Account; (3) for any settlement option; and (4)
for any other obligation we may have in relation to a Policy and/or any
additional benefit for which assets are not maintained in the Separate Account.
CHARGES
General: There are certain charges assessable against your Policy. There are
also certain charges that are assessed against the
Sub-accounts of the Separate Account, as noted below.
The charges which are or may be assessed against your Policy are: (1) the cost
of insurance charge; (2) the sales charge; (3) the tax charge; (4) the
contingent deferred sales charge; (5) any fee for any partial withdrawal; (6)
any transfer fee; and (7) any charge for optional benefits.
The charges assessed against the Sub-accounts of the Separate Account are: (1)
the administration charge; and (2) the mortality and expense risk charge. A
charge for taxes also may be assessed against the Sub-accounts.
Cost of Insurance Charge: The cost of insurance charge is deducted as of each
Monthly Processing Date. It is deducted on a pro-rata basis from your variable
investment options and any Fixed Allocations. It is determined by applying a
monthly cost of insurance rate to the Net Amount at Risk as of the Monthly
Processing Date and adding a cost of insurance fee. The guaranteed monthly cost
of insurance rate depends on the Age, sex and risk class of the Insured as shown
in the Schedule and on the underwriting method. Subject to any requirement for
prior approval of the applicable jurisdiction, we have the right to change the
current cost of insurance rates. However, the monthly cost of insurance charge
will not exceed the guaranteed monthly cost of insurance rate, shown in the
Schedule, multiplied by the Net Amount at Risk.
Any change in the cost of insurance rates or cost of insurance fee will be based
on changes in our future expectations as to mortality, expenses, persistency,
investment earnings and any other related revenues. Changes in cost of insurance
rates or fee will not be made because of a deterioration in the Insured's
health, nor will they be made to recoup any prior losses. The changes will be
determined only prospectively and will comply with the procedures and standards
on file with the insurance department for the jurisdiction where this Policy is
delivered. Any change will apply uniformly to all members of the same class.
Sales Charge: The sales charge is deducted on each Monthly Processing Date. It
is deducted on a pro-rata basis from your variable investment options and any
Fixed Allocations. It is a percentage of your Account Value on the Monthly
Processing Date. The equivalent annual percentage and the period during which
the sales charge applies are shown in the Schedule.
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2AFPVLI(01/00)-15
Tax Charge: The tax charge is deducted from each Premium paid. The percentage
rate applicable as of the Policy Date is shown in the Schedule. We also assess
the charge as a percentage of the amount of any loans established as the result
of an exchange. The charge is deducted from that Premium amount received as the
proceeds of such exchange. The applicable percentage rate after the Issue Date
may change if the taxes due in relation to your Premium change by law.
Contingent Deferred Sales Charge: The contingent deferred sales charge may be
deducted from amounts receivable upon surrender or partial withdrawal. It is a
percentage of Tier 1 Premiums previously paid. The applicable percentage varies
by Policy Year, as shown in the Schedule. No contingent deferred sales charge is
applied to any Tier 2 Premiums.
Partial Withdrawal Fee: We charge a fee to process a partial withdrawal. The fee
is deducted from the fixed and variable allocations in the same proportions as
the partial withdrawal, and is shown in the Schedule.
Transfer Fee: The transfer fee may be deducted at the time of a transfer. This
includes transfers into a Fixed Allocation and any transfers from a Fixed
Allocation. For this purpose, all transfers occurring during the same Valuation
Period are considered one transfer. We deduct the charge from the amounts
transferred pro-rata in the same ratio as Account Value is being transferred.
The maximum amount of this charge and the circumstances under which it applies
are shown in the Schedule. The following transfers are not taken into
consideration in determining whether any transfer fee applies: (a) a transfer
from a Fixed Allocation on a Policy Anniversary; (b) transfers to or from the
Loan Account in relation to loans and loan repayments.
Administration Charge: We charge for administering each Sub-account. We assess
this charge each day at the daily equivalent of the annual rate shown in the
Schedule against the assets in each Sub-account. We deduct the charge each
Valuation Period.
Mortality and Expense Risk Charges: We charge for bearing certain mortality and
expense risks related to the investment performance of the Sub-accounts. We
assess this charge each day at the daily equivalent of the applicable rate shown
in the Schedule for the appropriate duration against the assets in each
Sub-account. We deduct the charge each Valuation Period.
PREMIUM PAYMENT
Premium: The amount of Initial Premium is shown in the Schedule. Additional
Premiums may be paid while this Policy is in force and before the Premium
Cut-off Age, subject to the limitations described below. Allocation of Premium,
after reduction for any applicable charges, is subject to our allocation rules
(see "Allocation Rules").
Additional Premiums: Any Premium payment that would increase the Net Amount at
Risk under this Policy is subject to evidence of insurability satisfactory to
us, unless all of the following conditions are met:
(a) The Policy is within the Tier 1 Premium Guaranteed Acceptance Period shown
in the Schedule; (b) No Tier 2 Premium has been paid; and, (c) No portion of
such Premium payment would be classified as Tier 2 Premium.
We reserve the right to reject any portion of a Premium payment that would
change the tax status of this Policy under the Code, without your specific
acknowledgement and authorization in Writing.
Tier 1 and Tier 2 Premiums: Tier 1 Premiums are used to calculate the amount of
contingent deferred sales charge that applies on surrender of this Policy. Tier
1 Premiums are subject to a cumulative limit that varies by Policy Year. The
limit is equal to (a) multiplied by (b), where:
(a)
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2AFPVLI(01/00)-16
(a) Is the Maximum Annual Tier 1 Premium shown in the Schedule, and;
(b) Is the Policy Year of the payment
The Tier 1 portion of any Premium payment is that portion, if any, which will
not cause total Tier 1 Premiums to exceed this limit. The Tier 2 portion of any
Premium payment is any balance of the payment.
ALLOCATION RULES
You may allocate your Account Value among the investment options we make
available. We may limit the number of investment options to which Account Value
may be allocated at one time. This limit will not be less than 10 investment
options.
Until the Reallocation Date shown in the Schedule, that portion of any Premium,
less any applicable charges, you designated to be allocated to variable
investment options will be allocated to the Automatic Sub-account, after
deduction of any applicable tax charge. As of the Reallocation Date, the Account
Value of the Automatic Sub-account will be allocated per your most recent
instruction to us. If the Reallocation Date is not a Valuation Day, the
reallocation will occur on the Valuation Day immediately following. Any portion
of the Premium you designated to be allocated to the Fixed Allocation will be
allocated directly to the Fixed Allocation, after deduction of any applicable
charges, and will not be allocated to the Automatic Sub-account.
Withdrawals of any type are taken pro-rata from the investment options based on
the then current Account Values in such investment options unless we receive
other instructions from you prior to such withdrawal. If there are multiple
Fixed Allocations as of the date of such partial withdrawal, amounts are taken
from the Fixed Allocations on a last in, first out basis.
Deductions for charges and fees are as noted above in the section entitled
"Charges." If there are multiple Fixed Allocations as of the applicable Monthly
Processing Date, amounts deducted from the investment options are deducted from
the Fixed Allocations on a last in, first out basis.
Should you request a transaction that would leave less than any minimum amount
we then require in an investment option, we reserve the right, to the extent
permitted by law, to add the balance of your Account Value in the applicable
Sub-account or Fixed Allocation to the transaction and close out your balance in
that investment option.
ACCOUNT VALUE AND CASH VALUE
General: Your Account Value is the sum of values in: (1) any Sub-account; (2)
each Fixed Allocation, if any; and (3) the Loan Account, if any. The Cash Value
is the Account Value less any Debt and less any applicable contingent deferred
sales charge.
Account Value in the Sub-accounts: We determine your Account Value separately
for each Sub-account. To determine the Account Value in each Sub-account, we
multiply the Unit Price as of the Valuation Period for which the calculation is
being made by the number of Units attributable to your Account Value in that
Sub-account as of that Valuation Period.
Units: The number of Units attributable to this Policy in a Sub-account is the
number of Units purchased for you as a result of allocations to that Sub-account
less the number of Units transferred or withdrawn. We determine the number of
Units involved in any transaction specified in dollars by dividing the dollar
value of the transaction by the Unit Price of the affected Sub-account as of the
Valuation Period applicable to such transaction
Unit Price: For each Sub-account the initial Unit Price was $10.00. The Unit
Price for each subsequent period is the net investment factor for that period,
multiplied by the Unit Price for the immediately preceding Valuation Period. The
Unit Price for a Valuation Period applies to each day in the period.
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2AFPVLI(01/00)-17
Net Investment Factor: Each Sub-account has a net investment factor. The net
investment factor is an index that measures the investment performance of and
charges assessed against a Sub-account from one Valuation Period to the next.
The net investment factor for a Valuation Period is (a) divided by (b), less
(c); where:
(a) is the net result of :
1) the net asset value per share of the Portfolio shares at the end
of the current Valuation Period plus the per share amount of any
dividend or capital gain distribution declared and unpaid
(accrued) by the Portfolio; plus or minus
2) any per share charge or credit during the Valuation Period as a
provision for taxes attributable to the operation or maintenance
of the Sub-account.
(b) is the net result of:
1) the net asset value per share of the Portfolio shares at the end
of the preceding Valuation Period plus the per share amount of any
dividend or capital gain distribution declared and unpaid
(accrued) by the Portfolio; plus or minus
2) any per share charge or credit during the preceding Valuation
Period as a provision for taxes attributable to the operation or
maintenance of the Sub-account;
(c) is the mortality and expense risk charge and the administration charge.
We value the assets in the Sub-accounts at their fair market value in accordance
with accepted accounting practices and applicable laws and regulations. The net
investment factor may be greater than, equal to, or less than one.
Account Value For Fixed Allocations: We determine the Account Value separately
for each Fixed Allocation, other than a Fixed Allocation made on a Policy
Anniversary, from the date of such Fixed Allocation to the subsequent Policy
Anniversary. All amounts to be allocated to the fixed investment option as of
the same day are treated as one Fixed Allocation, irrespective of the source of
the Account Value being allocated to the fixed option. As of each Policy
Anniversary, all prior Fixed Allocations are combined and treated as a single
new Fixed Allocation.
The Account Value in each Fixed Allocation equals:
(a) The Account Value initially allocated to a Fixed Allocation; less (b)
Charges and fees deducted from that Fixed Allocation; less (c) Transfers from
that Fixed Allocation; less (d) Distributions from that Fixed Allocation, for
any reason; plus (e) Interest credited to that Fixed Allocation.
Interest is credited daily on each Fixed Allocation. On any day, interest is
credited to the Account Value in a Fixed Allocation after any deductions made as
of that day and after any transfers or distributions from that Fixed Allocation
as of that day.
Account Value in the Loan Account: The Account Value in the Loan Account equals:
(a) Amounts transferred to the Loan Account; less
(b) Reductions in the Loan Account due to loan repayments; plus
(c) Interest credited to the Loan Account.
Interest is credited daily to the Account Value in the Loan Account after any
deductions and after any transfers as of that day. The minimum interest rate
credited to the Account Value in the Loan Account is shown in the Schedule.
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2AFPVLI(01/00)-18
When you take a policy loan, we transfer Account Value equal to the amount of
the policy loan from the investment options to the Loan Account. Unless you give
us different instructions before the transfer, we transfer Account Value from
the investment options pro-rata based on the Account Value in the investment
options as of the Valuation Day of such transfer.
A preferred loan is any loan for which the transferred Account Value does not
exceed (a) less (b); where:
(a) is the Account Value less any contingent deferred sales charge,
multiplied by the maximum preferred loan percentage, as shown in the
Schedule; and
(b) is any existing preferred Debt.
A standard loan is any other loan.
Account Value maintained in the Loan Account remains in the Loan Account until
the loan is repaid. Amounts in the Loan Account earn interest from the Valuation
Day of the transfer at the minimum annual interest rate shown in the Schedule.
Preferred loan Account Values will be credited interest at a rate equal to or
greater than standard loan Account Values.
Monthly Deduction: Account Value is reduced by monthly deductions. On each
Monthly Processing Date, until the Premium Cut-off Age, we will take the monthly
deduction. The monthly deduction consists of the then applicable amounts for the
following charges and fees:
(a) the cost of insurance charge;
(b) any applicable sales charge;
(c) any applicable charge for benefits provided by rider.
CASH VALUE CREDIT
The Cash Value Credit is an amount that we first allocate to your Account Value
when at least one of the following conditions is satisfied on a Policy
Anniversary:
(a) the Cash Value equals or exceeds the Cash Value Trigger shown in the
Schedule; or (b) the cumulative Premiums paid meet the Premium Trigger shown in
the Schedule.
Once the Cash Value Credit is earned, it will be added to your Account Value on
the applicable Policy Anniversary and on each subsequent Policy Anniversary.
The Cash Value Credit is equal to (a) multiplied by (b); where (a) is the Cash
Value on the Policy Anniversary; and (b) is the Cash Value Credit percentage
shown in the Schedule.
The Cash Value Credit is applied pro-rata, based on the Account Values in the
investment options.
TRANSFERS
General: You may transfer Account Value between investment options, subject to
the allocation rules herein and any applicable transfer fee. The amount of such
fee and when it applies are shown in the Schedule. Your transfer request must be
In Writing unless we receive a prior written authorization from you permitting
transfers based on instructions we receive over the phone or through electronic
means. The minimum amount required to be in any investment option after a
transfer is shown in the Schedule. No transfers are permitted during the grace
period.
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2AFPVLI(01/00)-19
Where permitted by law, we may accept your authorization of a third party to
transfer Account Values on your behalf. We may suspend or cancel such acceptance
at any time. We give you prior notification of any such suspension or
cancellation. We may restrict the investment options that will be available to
you for transfers during any period in which you authorize such third party to
act on your behalf. We give the third party you authorize prior notification of
any such restrictions. However, we will not enforce such a restriction if we are
provided evidence satisfactory to us that: (a) such third party has been
appointed by a court of competent jurisdiction to act on your behalf; or (b)
such third party has been appointed by you to act on your behalf for all your
financial affairs.
We reserve the right to limit the number of transfers in any Policy Year for all
Owners. We also reserve the right to limit the number of transfers in any Policy
Year or to refuse any transfer request for an Owner or certain Owners if we
believe that: (a) excessive trading by such Owner or Owners or a specific
transfer request or group of transfer requests may have a detrimental effect on
Unit Values or the share prices of the Portfolios; or (b) we are informed by one
or more of the Portfolios that the purchase or redemption shares is to be
restricted because of excessive trading or a specific transfer or group of
transfers is deemed to have a detrimental effect on share prices of affected
Portfolios, or (c) we believe there may be adverse consequences to other Owners
as a result of excess transfers.
We allow at least twelve transfers in each Policy Year. Unless we limit the
number of transfers in any Policy Year, there is no limit on the number of
transfers that only involve variable investment options, or the number of
transfers from variable investment options to make Fixed Allocations. However,
we limit each transfer from Fixed Allocations that are to be effective on any
day other than a Policy Anniversary to the greater of 25% of the Account Value
in your Fixed Allocations or $1,000. If you make such a transfer from your Fixed
Allocations, you cannot make another such transfer until either 90 days have
passed or the next Policy Anniversary, if earlier.
SURRENDER AND PARTIAL WITHDRAWAL
Surrender: You may surrender your Policy for its Cash Value at any time while
the Insured is alive. You must send your Policy and surrender request In Writing
to our Office.
Partial Withdrawals: You may withdraw an amount equal to Tier 2 Premiums paid,
reduced by any Tier 2 Premiums previously withdrawn, after the Right to Cancel
period has expired. You may withdraw other Policy values starting in the Policy
Year shown in the Schedule for availability of partial withdrawals. The minimum
partial withdrawal amount is shown in the Schedule. The Cash Value that must
remain in the Policy as of the Valuation Day of a partial withdrawal is also
shown in the Schedule. If the amount of the partial withdrawal request exceeds
the maximum amount available, we will process the withdrawal for the maximum
amount available. We charge a fee, shown in the Schedule, to process any partial
withdrawal.
Effect of a Partial Withdrawal: Each partial withdrawal reduces the Account
Value, Cash Value and Guaranteed Minimum Death Benefit by the amount of
withdrawal plus the amount of the partial withdrawal fee. As a result, the
Minimum Required Death Benefit is reduced as of the Valuation Day of the partial
withdrawal. If necessary, the Specified Amount is also reduced so that the
resulting Death Benefit after the partial withdrawal does not exceed (a) less
(b); where
(a) is the Death Benefit before the partial withdrawal; and
(b) is the amount withdrawn, not including the partial withdrawal fee.
An amount taken as a partial withdrawal cannot be repaid.
.
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2AFPVLI(01/00)-20
POLICY LOANS
General: You may borrow against your Policy. The Policy is the only collateral
we require for the loan. If you request a loan equal to the amount of loan in
effect under any policy exchanged for this Policy, such a loan takes effect as
of the Issue Date or, if later the date we apply the surrender proceeds of such
exchanged policy as Premium. A loan may be taken, or an existing loan repaid, at
any time while the Insured is alive and this Policy is in force, except during
the period in which you have the Right to Cancel.
The Debt resulting from a loan affects the Death Proceeds, Cash Value, and may
affect the amount of any benefit we may offer under a separate endorsement or
rider.
Maximum Loan Value: The maximum loan value is the maximum amount you may borrow.
It is equal to the Cash Value, multiplied by the maximum loan value percentage
shown in the Schedule. The minimum loan amount is shown in the Schedule.
Loan Interest: Loan interest accrues daily at the effective annual interest rate
shown in the Schedule. It is payable on each Policy Anniversary. Interest not
paid when due will be added to the Debt and will be charged interest at the same
rate. If you do not pay the interest when due, we transfer Account Value from
the investment options to the Loan Account.
This Account Value is taken pro-rata from the investment options based on the
Account Value in the investment options as of the Valuation Day of the transfer.
If there is inadequate Account Value in the investment options to make such a
transfer, we reserve the right to transfer the deficiency to the Loan Account as
of any subsequent Valuation Date such an amount equal to the deficiency is
available in the investment options.
Loan Repayment: Debt may be repaid in whole or in part at any time while the
Insured is living and this Policy is in force. Any standard loan is repaid
before a preferred loan.
As of the Valuation Day of the repayment:
(a) we reduce the loan principal and outstanding loan interest proportionately
based on the ratio between loan principal and loan interest as of that Valuation
Day; (b) we reduce the Account Value in the Loan Account by an amount equal to
the lesser of the amount of the loan repayment and the total Account Value in
the Loan Account as of that Valuation Day; and (c) we allocate the reduction in
the Loan Account to the investment options pro-rata based on the Account Value
in the investment options as of that Valuation Day. Any amount then allocated to
the Fixed Allocation will be treated as a separate Fixed Allocation.
GRACE PERIOD AND REINSTATEMENT
Grace Period: We will keep this Policy in force during a 61 day grace period
that begins on the Monthly Processing Date on which it is determined that the
Cash Value is insufficient to pay charges then due.
We will send you and any assignee of record a notice 61 days prior to lapse
indicating a recommended payment required to keep the Policy from lapsing. The
recommended payment equals three months' charges based on: (a) the Net Amount at
Risk as of the beginning of the grace period; and (b) the guaranteed monthly
cost of insurance rate as shown in the Schedule for the Policy Year at the
beginning of the grace period. The Policy will remain in force during the grace
period, and will lapse without value at the end of the 61st day if the Cash
Value is insufficient to pay charges then due.
The Death Benefit payable during the grace period will equal the Death Benefit
in effect immediately prior to such grace period minus the lesser of three
months charges, as detailed above, and the charges due for the period between
the beginning of the grace period and the date we receive due proof of death.
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2AFPVLI(01/00)-21
Reinstatement: Any requested reinstatement of Debt is subject to our rules. If
the Policy lapses, we may reinstate the Policy at any time within a five-year
period after the end of the grace period provided we receive the following:
(a) Written Application to reinstate;
(b) Evidence of insurability satisfactory to us;
(c) Payment of an amount equal to three months' charges, based on: (i) the
Net Amount at Risk as of the beginning of the grace period preceding
lapse; and (ii) the guaranteed monthly cost of insurance rate per
thousand as shown in the Schedule for the Policy Year as of the date of
reinstatement.
After any reinstatement, the period during which certain charges apply may be
extended. If the lapse occurred while the sales charge or contingent deferred
sales charge was in effect, or while charges for certain optional benefits were
in effect, application of these charges under the reinstated policy may be
extended by the period between the date of the lapse and the date of
reinstatement.
YOUR RIGHTS, OWNERSHIP, AND DESIGNATIONS
Ownership Rights and Beneficiary Designations: You may exercise the rights,
options and privileges granted in this Policy or permitted by us. Your rights
are subject to the rights of any assignee recorded by us and of any irrevocably
designated Beneficiary.
If more than one Owner is named, the Owners will own this Policy as joint
tenants with rights of survivorship unless otherwise stated. We require the
consent In Writing of all joint Owners for any transaction for which we require
the written consent of an Owner.
You may name a contingent Owner. You must do so In Writing. The contingent Owner
will become the Owner on your death. If there is more than one Owner, the
contingent Owner will become the Owner on the death of the last surviving Owner
unless otherwise stated In Writing. If you do not name a contingent Owner, the
estate of the last surviving Owner will own the Policy upon the last surviving
Owner's death.
Death Proceeds are payable to the Beneficiary. You may designate more than one
primary or contingent Beneficiary. If you make such a designation, the proceeds
are payable in equal shares to the survivors in the appropriate Beneficiary
class, unless you request otherwise In Writing.
If the primary Beneficiary dies before Death Proceeds become payable, the
proceeds will become payable to the contingent Beneficiary. If no Beneficiary is
alive when Death Proceeds become payable, or in the absence of any Beneficiary
designation, the proceeds will vest in you or your estate.
Changing Revocable Designations: Unless you indicated that a prior choice was
irrevocable or your Policy has been endorsed to limit certain changes, you may
request to change Owner and Beneficiary designations by sending a request In
Writing.
Common Disaster: If any Beneficiary dies with the Insured in a common disaster,
it must be proved to our satisfaction that the Insured died first. Unless
information provided and satisfactory to us indicates otherwise, the Policy is
treated as though the Beneficiary died first.
GENERAL PROVISIONS
Entire Contract: This Policy, any attached riders or endorsements, and the
attached copy of any Application constitutes the entire contract. All statements
made in any Application are deemed to be representations and not warranties.
Only our President, a Vice President or Secretary may change or waive any
provisions of this Policy. Any change or waiver must be In Writing. We are not
bound by any promises or representations made by or to any other person.
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2AFPVLI(01/00)-22
Misstatement of Age or Sex: If there has been a misstatement of the age or sex
of the Insured, all Policy values, including the Death Benefit, will be
recalculated from the Issue Date based on the correct age and sex.
Incontestability: This Policy will be incontestable after it has been in force
during the Insured's lifetime for two years, or less if required by law, from
its Issue Date. Any increase in coverage under this Policy will be incontestable
after a period of two years, or less if required by law, from the effective date
of such increase. If the Policy is reinstated, the Policy will be incontestable
after it has been in force for a period of two years, or less if required by
law, from the date of the reinstatement. Any contestable period for any
additional benefit provided by a rider attached to this Policy is stated in the
rider.
Suicide: If the Insured as shown in the Schedule dies by suicide, while sane or
insane, within two years from the Issue Date and while the Policy is in force,
the Policy will terminate. The Death Benefit will be limited to the greater of
(a) and (b) where:
(a) is the Premium paid less any outstanding Debt and less any partial
withdrawals as of the date Death Proceeds would otherwise have become
payable; and
(b) is the Cash Value as of the date Death Proceeds would otherwise become
payable.
Transfers, Assignments or Pledges: Generally, you may transfer, assign or pledge
your rights to another person at any time, prior to the Insured's death. You
must request a transfer or provide us with a copy of the assignment In Writing.
A transfer or assignment is subject to our acceptance. We will not be deemed to
know of or be obligated under any assignment prior to our receipt and acceptance
thereof. We assume no responsibility for the validity or sufficiency of any
assignment. A transfer, assignment or pledge may have adverse tax consequences
for you.
Nonparticipation: The Policy does not share in our profits or surplus earnings.
Deferral of Transactions: We may defer any payment that is not distributed from
a variable investment option for a period not to exceed the lesser of 6 months
and the period permitted by law. If we defer a distribution or transfer from a
Fixed Allocation or any payment under a fixed settlement option for more than
thirty days, or less where required by law, we will credit interest of at least
3% per year, or the rate required by law, to the amount deferred. We may defer
any distribution from any Sub-account or any transfer from a Sub-account for a
period not to exceed 7 calendar days from the date the transaction is effected.
Any other deferral period begins on the date such distribution or transfer would
otherwise have been transacted.
All transactions into, out of or based on any Sub-account may be postponed
whenever (1) the New York Stock Exchange is closed (other than customary
holidays or weekends) or trading on the New York Stock Exchange is restricted as
determined by the SEC; (2) the SEC permits postponement and so orders; or (3)
the SEC determines that an emergency exists which may make valuation or disposal
of securities not reasonably practical.
Elections, Designations, Changes and Requests: All elections, designations,
changes and requests must be In Writing and are effective only after they have
been approved by us, subject to any transactions made by us before receipt of
such notices. We inform you of any changes that materially affect your rights.
We reserve the right to require that this Policy be returned to our Office for
endorsement of any change.
Claims of Creditors: To the extent permitted by law, no payment under this
Policy is subject to the claims of the creditors of any Owner, Insured or
Beneficiary.
Tax Reporting: We intend to make all required regulatory reports regarding
taxable events in relation to this Policy. Such events may include, but are not
limited to: (a) loans; (b) payment of death benefits; (c) surrender of value
from the Policy; and (d) assignments.
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2AFPVLI(01/00)-23
Tax Reporting: We intend to make all required regulatory reports regarding
taxable events in relation to this Policy. Such events may include, but are not
limited to: (a) loans; (b) payment of death benefits; (c) surrender of value
from the Policy; and (d) assignments
Facility of Payment: We reserve the right, in settlement of full liability, to
make payments to a guardian, relative or other person if a payee is legally
incompetent.
Participation and Termination of Certain Programs We May Offer: To elect to
participate or to terminate participation in any program we may offer, we may
require receipt at our Office of a request In Writing on a form satisfactory to
us.
Reports to You: We provide reports to you while this Policy is in force. We
provide you with reports at least once each quarter that you maintain Account
Values in the Sub-accounts. We provide you with reports once a year if you
maintain Account Value only in the Fixed Allocation. You may request additional
reports. We reserve the right to charge up to $50 for each such additional
report.
Reserved Rights: In addition to rights specifically reserved elsewhere in this
Policy, we reserve the right to any or all of the following: (a) combine a
Sub-account with other Sub-accounts; (b) combine the Separate Account shown in
the Schedule with other separate accounts; (c) deregister the Separate Account
shown in the Schedule under the Investment Company Act of 1940; (d) operate the
Separate Account shown in the Schedule as a management investment company under
the Investment Company Act of 1940 or in any other form permitted by law; (e)
make changes required by any change in the Securities Act of 1933, the Exchange
Act of 1934 or the Investment Company Act of 1940; (f) make changes that are
necessary to maintain the tax status of your Policy under the Code; and (g) make
changes required by any change in other federal or state laws relating to life
insurance policies.
We may eliminate Sub-accounts, or substitute one or more Portfolios for the one
in which a Sub-account is invested. Substitutions may be necessary if we believe
a Portfolio no longer suits the purpose of the Policy. This may happen due to a
change in laws or regulations, or a change in the investment objectives or
restrictions of a Portfolio, or because the Portfolio is no longer available for
investment, or for some other reason. We would obtain prior approval from the
insurance department of our state of domicile, if so required by law, before
making such a substitution, combination, deletion or addition. We also would
obtain prior approval from the SEC as required by law, and any other required
approvals before making such a substitution, combination, deletion or addition.
POLICY PAYMENT OPTIONS
Payment Options: Partial withdrawals, surrender amounts and Death Proceeds may
be paid as a lump sum or pursuant to any other payment option we offer. If you
choose any of our payment options, you must request your choice In Writing.
Payment options can be guaranteed for life, for a certain period, for joint
lives or for a certain period and life as described below. We make available
fixed payments. We reserve the right to require that the payments be payable on
the first or the fifteenth day of a calendar month. Except for lump sum
payments, we will only make payments directly to an account with a financial
institution in the United States of America.
In the absence of an election In Writing prior to Death Proceeds becoming due,
the Beneficiary may elect to receive the Death Proceeds under one of the payment
options described below. However, if you made an election, the Beneficiary may
not alter such election.
For purposes of the payment options described below, the term "key life" means
the person or persons upon whose life any payments dependent upon the
continuation of life are based.
(a) Option 1 - Payments for Life: Under this option, income is payable
periodically prior to the death of the key life, terminating with the
last payment due prior to such death.
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2AFPVLI(01/00)-24
(b) Option 2 - Payments for Life with 10, 15, or 20 Years Certain: Under
this option, income is payable periodically for 10, 15, or 20 years, as
selected, and thereafter until the death of the key life. Should the
death of the key life occur before the end of the period selected, the
remaining payments are paid to the Beneficiary to the end of such
period.
(c) Option 3 - Payments Based on Joint Lives: Under this option, income is
payable periodically during the joint lifetime of two key lives, and
thereafter during the remaining lifetime of the survivor, ceasing with
the last payment prior to the survivor's death
(d) Option 4 - Payments for a Certain Period: Under this option, income is
payable periodically for a specified number of years. The number of
years is subject to our then current rules. Should the payee die before
the end of the specified number of years, the remaining payments are
paid to the Beneficiary to the end of such period.
The periodic payment amount is determined by multiplying the amount applied to
purchase payment options (expressed in thousands of dollars) by the amount of
the periodic payment per $1,000 obtained from our then current payment rates for
that type of payment option and for the frequency of payment selected. These
rates will not be less than those shown in the Payment Option Tables shown
herein.
We reserve the right to require submission prior to commencement of any payment
option of evidence satisfactory to us of the age and sex of any key life upon
whose life payment amounts are calculated.
Proof of Survival: Any payment is subject to evidence satisfactory to us that
the payee is alive on the date such payment is otherwise due.
PAYMENT OPTION TABLES
The attached tables show the minimum dollar amount of each monthly payment for
each $1,000 applied under the options. The amounts payable when payments
commence may be higher, based on our then current assumptions as to interest,
expenses and mortality, but will not be lower.
Under options one and two, the amount of each payment depends on the age and
sex, if applicable, of the payee at the time the first payment is due. Under
option three, the amount of each payment depends on the age and sex, if
applicable, of both payees at the time the first payment is due. No election can
be changed once payments begin.
The tables shown are based on interest at 3% per year compounded annually and
the 1983a Individual Annuity Mortality Table set back one year for males and two
years for females, or the appropriate variation of such table with sex-neutral
rates if necessary to meet state or Federal requirements.
The payee's settlement age is the payee's age, on the date of the first payment,
minus an age adjustment. The age adjustments are shown below. They are based on
the date of the first payment. The age adjustment does not exceed the age of the
payee.
- --------------------------------------------------------------------------------------------------------------------
Calendar Year of First Payment Age Adjustment
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
2000 to 2009 1 Year
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
2010 to 2019 2 Years
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
2020 and later 3 Years
- --------------------------------------------------------------------------------------------------------------------
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2AFPVLI(01/00)-25
Amount of Monthly Payment For Each $1,000 Applied
(Based on 3% Annual Interest Rate)
- --------------------------------------------------------------------------------------------------------------------
Options 1 and 2 --- Single Life Annuities
- --------------------------------------------------------------------------------------------------------------------
- --------- ----------------------------------------------------- ----------------------------------------------------
Male Payee Female Payee
- --------- ----------------------------------------------------- ----------------------------------------------------
- --------- ----------------------------------------------------- ----------------------------------------------------
Monthly Payments Guaranteed Monthly Payments Guaranteed
- --------- ----------------------------------------------------- ----------------------------------------------------
- --------- ------------- ------------ ------------ ------------- ------------ ------------- ------------ ------------
Age None 120 180 240 None 120 180 240
- --------- ------------- ------------ ------------ ------------- ------------ ------------- ------------ ------------
- --------- ------------- ------------ ------------ ------------- ------------ ------------- ------------ ------------
50 4.19 4.15 4.10 4.03 3.79 3.78 3.76 3.73
- --------- ------------- ------------ ------------ ------------- ------------ ------------- ------------ ------------
- --------- ------------- ------------ ------------ ------------- ------------ ------------- ------------ ------------
55 4.61 4.54 4.45 4.32 4.10 4.08 4.04 3.99
- --------- ------------- ------------ ------------ ------------- ------------ ------------- ------------ ------------
- --------- ------------- ------------ ------------ ------------- ------------ ------------- ------------ ------------
60 5.15 5.03 4.87 4.65 4.52 4.47 4.40 4.30
- --------- ------------- ------------ ------------ ------------- ------------ ------------- ------------ ------------
- --------- ------------- ------------ ------------ ------------- ------------ ------------- ------------ ------------
65 5.91 5.67 5.36 4.97 5.08 4.98 4.85 4.65
- --------- ------------- ------------ ------------ ------------- ------------ ------------- ------------ ------------
- --------- ------------- ------------ ------------ ------------- ------------ ------------- ------------ ------------
70 6.98 6.44 5.87 5.23 5.85 5.65 5.38 5.00
- --------- ------------- ------------ ------------ ------------- ------------ ------------- ------------ ------------
- --------- ------------- ------------ ------------ ------------- ------------ ------------- ------------ ------------
75 8.46 7.32 6.31 5.40 6.98 6.50 5.94 5.28
- --------- ------------- ------------ ------------ ------------- ------------ ------------- ------------ ------------
- --------- ------------- ------------ ------------ ------------- ------------ ------------- ------------ ------------
80 10.57 8.18 6.62 5.48 8.66 7.50 6.41 5.43
- --------- ------------- ------------ ------------ ------------- ------------ ------------- ------------ ------------
PAYMENT OPTION TABLES
Amount of Monthly Payment For Each $1,000 Applied
(Based on 3% Annual Interest Rate)
- --------------------------------------------------------------------------------------------------------------------
Option 3 - Joint and Last Survivor Annuity
- --------------------------------------------------------------------------------------------------------------------
- ---------------------------- ---------------------------------------------------------------------------------------
Age of Female Payee
- ---------------------------- ---------------------------------------------------------------------------------------
- ---------------------------- -------- ------- -------- -------- -------- -------- ------- -------- -------- --------
Age of Male Payee 35 40 45 50 55 60 65 70 75 80
- ---------------------------- -------- ------- -------- -------- -------- -------- ------- -------- -------- --------
- ---------------------------- -------- ------- -------- -------- -------- -------- ------- -------- -------- --------
50 3.15 3.27 3.39 3.53 3.67 3.79 3.91 4.00 4.07 4.12
- ---------------------------- -------- ------- -------- -------- -------- -------- ------- -------- -------- --------
- ---------------------------- -------- ------- -------- -------- -------- -------- ------- -------- -------- --------
55 3.17 3.29 3.44 3.60 3.78 3.96 4.13 4.27 4.39 4.47
- ---------------------------- -------- ------- -------- -------- -------- -------- ------- -------- -------- --------
- ---------------------------- -------- ------- -------- -------- -------- -------- ------- -------- -------- --------
60 3.18 3.31 3.47 3.66 3.88 4.11 4.35 4.57 4.76 4.91
- ---------------------------- -------- ------- -------- -------- -------- -------- ------- -------- -------- --------
- ---------------------------- -------- ------- -------- -------- -------- -------- ------- -------- -------- --------
65 3.19 3.33 3.50 3.70 3.95 4.23 4.55 4.87 5.18 5.44
- ---------------------------- -------- ------- -------- -------- -------- -------- ------- -------- -------- --------
- ---------------------------- -------- ------- -------- -------- -------- -------- ------- -------- -------- --------
70 3.19 3.34 3.52 3.74 4.01 4.33 4.72 5.16 5.62 6.05
- ---------------------------- -------- ------- -------- -------- -------- -------- ------- -------- -------- --------
- ---------------------------- -------- ------- -------- -------- -------- -------- ------- -------- -------- --------
75 3.20 3.34 3.53 3.76 4.04 4.40 4.85 5.39 6.02 6.68
- ---------------------------- -------- ------- -------- -------- -------- -------- ------- -------- -------- --------
- ---------------------------- -------- ------- -------- -------- -------- -------- ------- -------- -------- --------
80 3.20 3.35 3.53 3.77 4.07 4.45 4.94 5.57 6.35 7.26
- ---------------------------- -------- ------- -------- -------- -------- -------- ------- -------- -------- --------
- ----------------------------------------------------------------------------
Option 4 - Payments for a Designated Period
- ----------------------------------------------------------------------------
- --------------- ---------------- ------------ ------------- ----------------
Monthly Payment Monthly Payment
Years Years
- --------------- ---------------- ------------ ------------- ----------------
- --------------- ---------------- ------------ ------------- ----------------
10 9.61 21 5.32
- --------------- ---------------- ------------ ------------- ----------------
- --------------- ---------------- ------------ ------------- ----------------
11 8.86 22 5.15
- --------------- ---------------- ------------ ------------- ----------------
- --------------- ---------------- ------------ ------------- ----------------
12 8.24 23 4.99
- --------------- ---------------- ------------ ------------- ----------------
- --------------- ---------------- ------------ ------------- ----------------
13 7.71 24 4.84
- --------------- ---------------- ------------ ------------- ----------------
- --------------- ---------------- ------------ ------------- ----------------
14 7.26 25 4.71
- --------------- ---------------- ------------ ------------- ----------------
- --------------- ---------------- ------------ ------------- ----------------
15 6.87 26 4.59
- --------------- ---------------- ------------ ------------- ----------------
- --------------- ---------------- ------------ ------------- ----------------
16 6.53 27 4.47
- --------------- ---------------- ------------ ------------- ----------------
- --------------- ---------------- ------------ ------------- ----------------
17 6.23 28 4.37
- --------------- ---------------- ------------ ------------- ----------------
- --------------- ---------------- ------------ ------------- ----------------
18 5.96 29 4.27
- --------------- ---------------- ------------ ------------- ----------------
- --------------- ---------------- ------------ ------------- ----------------
19 5.73 30 4.18
- --------------- ---------------- ------------ ------------- ----------------
- --------------- ---------------- ------------ ------------- ----------------
20 5.51
- --------------- ---------------- ------------ ------------- ----------------
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2AFPVLI(01/00)-28
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
Shelton, Connecticut
(A Stock Company)
FLEXIBLE PREMIUM VARIABLE UNIVERSAL LIFE INSURANCE.
NON-PARTICIPATING.
VARIABLE INVESTMENT OPTIONS AND A FIXED ALLOCATION.
DEATH BENEFIT PAYABLE UPON DEATH OF THE INSURED WHILE THIS POLICY IS IN FORCE.
ANY BENEFITS AND VALUES, INCLUDING THE DEATH BENEFIT, BASED ON THE ACCOUNT VALUE
IN THE VARIABLE INVESTMENT OPTIONS, DEPEND ON INVESTMENT PERFORMANCE, MAY
INCREASE OR DECREASE, AND ARE THEREFORE NOT GUARANTEED. PLEASE REFER TO THE
SECTIONS ENTITLED "ACCOUNT VALUE IN THE SUB-ACCOUNTS" AND "DEATH BENEFIT" FOR A
MORE COMPLETE EXPLANATION. IF APPLICABLE, ANY ACCELERATED DEATH BENEFIT PAYMENTS
UNDER THE TERMS OF ANY SUCH RIDERS MAY REDUCE YOUR POLICY BENEFITS.
THERE IS NO MINIMUM GUARANTEED CASH VALUE.
LESS THAN 100% OF THE CASH VALUE IS AVAILABLE FOR A LOAN.