EXHIBIT 1.A (5)(b)
ADJUSTABLE TERM INSURANCE RIDER
This rider is a part of the policy to which it is attached if this rider is
shown in the Schedule. This rider must be read with all policy provisions.
This rider does not participate in our surplus earnings. The insureds under
this rider are Insured #1 and Insured #2 listed in the Schedule. This rider
has no loan value. There is no surrender charge applicable to this rider.
The rider effective date is the policy date or, if added later, the monthly
processing date on or next following the date your application for this rider
is approved by us. The owner of the policy is the owner of this rider.
THE DEATH BENEFIT. Subject to this rider's terms, we will pay the term death
benefit in force on the date of the second death of the two insureds. This
benefit is payable to the beneficiary.
The amount of term death benefit is the difference between the total benefit
and the base death benefit provided by the policy. Total death benefit
depends on which death benefit option is in effect.
Option 1: If option 1 is in effect, the total death benefit is
the greater of
(a) The target death benefit; or
(b) The account value multiplied by the appropriate
factor from the Death Benefit Factors shown in
the Schedule.
Option 2: If option 2 is in effect, the total death benefit is
the greater of:
(a) The target death benefit plus the account value; or
(b) The account value multiplied by the appropriate
factor from the Death Benefit Factors shown in
the Schedule.
In no event will the term death benefit be less than zero. It is also not
increased or decreased by policy loan activity.
The target death benefit is shown in the Schedule attached to your policy. It
may be a constant amount or it may change at the beginning of a policy year.
The target death benefit may be reduced if there is a partial withdrawal.
If a partial withdrawal reduces the stated death benefit, the target death
benefit for the current year and all future years will be reduced by an amount
equal to the reduction in the stated death benefit. You will receive a new
Schedule reflecting the new target death benefit. See your policy for
details. The stated death benefit is defined in your policy.
Any requested decrease in the stated death benefit in the policy will
eliminate any future scheduled increases in the target death benefit. We may
choose not to eliminate these increases upon submission of evidence
satisfactory to us that the insureds are still insurable according to our
normal rules of underwriting for their current premium classes.
COST OF INSURANCE. The cost of insurance for this rider is determined on a
monthly basis. The cost is added to the policy's monthly deduction from the
account value as of each monthly processing date until this rider terminates.
The cost of insurance rates will be determined by us from time to time. They
will be based on the issue ages and premium classes of the insureds as well as
the duration since the rider effective date. The cost of insurance for this
rider is calculated as the monthly cost of insurance rate multiplied by the
death benefit (in thousands) for this rider. The monthly guaranteed maximum
cost of insurance rates per $1,000 for this rider are shown in the Schedule on
the applicable table of guaranteed rates attached to your policy.
R2003 8/99
INCONTESTABILITY. After this rider has been in force while both insureds are
alive for two years from the rider effective date, we will not contest the
statements in the application for this rider attached at the time the rider is
issued.
After this rider has been in force while both insureds are alive for two years
from the effective date of any increase in the amount of insurance, we will
not contest the statements in the application for the increase.
After this rider has been in force while both insureds are alive for two years
from the effective date of any reinstatement of this rider, we will not
contest the statements in the application for such reinstatement of this
rider.
SUICIDE EXCLUSION. If the policy terminates for suicide, this rider will then
terminate without value.
If either insured commits suicide, while sane or insane, within two years of
the rider effective date and the policy is not terminated due to this suicide,
we will terminate this rider and make a limited payment to the beneficiary for
the increase. We will pay in one sum the amount of the cost of insurance for
this rider which was deducted from the policy.
If either insured commits suicide, while sane or insane, within two years of
the effective date of an increase and the policy is not terminated due to this
suicide, we will terminate the increase and pay the cost of insurance
associated with the increase.
MISSTATEMENT OF AGE OR SEX. If either insured's age or sex has been
misstated, the death benefit will be adjusted. The death benefit will be that
which the cost of insurance which was deducted from the policy value on the
last monthly processing date prior to the second death would have purchased
for the insured's correct age or sex. If the death benefit adjustment is made
prior to the second death, the adjusted benefit will be to an equitable amount
determined by us. The adjustment will reflect the death benefit for the
correct age or sex.
CHANGE IN AMOUNT OF COVERAGE. On any policy anniversary after the first rider
anniversary, the target death benefit under this rider may be changed. The
target death benefit may be increased or decreased by sending a written
request to our Customer Service Center. Any request for increased death
benefits will automatically be an increase to the stated death benefit as well
as to the target death benefit unless you specifically request an increase
only to the target death benefit. You may increase or decrease the target
death benefit only once each policy year. You may not increase insurance
coverage provided by this rider after attained joint equivalent age 85. Any
change in coverage may not be for an amount less than $1,000. Such change is
subject to the following conditions:
a) Any requested decrease in target death benefit is subject to our
approval. Our approval may be conditioned on eliminating any future
scheduled increases to the target death benefit.
b) Any request for an increase must be applied for on a supplemental
application. The increase is subject to evidence satisfactory to us
that the insureds are still insurable according to our normal rules of
underwriting for their current premium classes for this type of rider.
If there is no change in premium class, the increase will be processed.
c) For any increase or addition to coverage, the effective date will be the
monthly processing date that falls on or next follows the date the
supplemental application is approved by us. For any decrease in coverage,
the effective date will be the monthly processing date that falls on or
next follows receipt of the written request to reduce coverage.
For any change in coverage, a supplemental Schedule will be issued.
R2003-8/99
Page 2
TERMINATION. This rider will terminate on the earliest of the following
dates:
a) Expiration of the grace period of the policy.
b) Termination or surrender of the policy.
c) Receipt by us of a written request from you to cancel this rider on any
monthly processing date.
d) Policy anniversary nearest the younger insured's 100th birthdate.
Any deduction for the cost of insurance after termination of this rider will
not be considered a reinstatement of this rider nor a waiver by us of the
termination. Any such deduction will be credited to the account value of the
policy as of the date of the deduction.
REINSTATEMENT. If you reinstate your policy under the Reinstatement provision
in the policy, this rider will be reinstated.
Signed for the company at Denver, Colorado
SECURITY LIFE OF DENVER INSURANCE COMPANY
SECRETARY
R2003-8/99
Page 3
ADJUSTABLE TERM INSURANCE RIDER SCHEDULE
TABLE OF TARGET DEATH BENEFITS AND GUARANTEED MONTHLY MAXIMUM COST
OF TERM INSURANCE RATES PER $1,000 OF INSURANCE
POLICY NO. 67000001
POLICY TARGET DEATH GUARANTEED POLICY TARGET DEATH GUARANTEED
YEAR BENEFIT MONTHLY RATES YEAR BENEFIT MONTHLY RATES
1 500,000.00 0.00029 28 500,000.00 0.32514
2 500,000.00 0.00094 29 500,000.00 0.38176
3 500,000.00 0.00174 30 500,000.00 0.44922
4 500,000.00 0.00270 31 500,000.00 0.52778
5 500,000.00 0.00390 32 500,000.00 0.61724
6 500,000.00 0.00537 33 500,000.00 0.71747
7 500,000.00 0.00720 34 500,000.00 0.82806
8 500,000.00 0.00937 35 500,000.00 0.95316
9 500,000.00 0.01195 36 500,000.00 1.09872
10 500,000.00 0.01498 37 500,000.00 1.27190
11 500,000.00 0.01858 38 500,000.00 1.48191
12 500,000.00 0.02272 39 500,000.00 1.73698
13 500,000.00 0.02754 40 500,000.00 2.04020
14 500,000.00 0.03315 41 500,000.00 2.39109
15 500,000.00 0.03974 42 500,000.00 2.78822
16 500,000.00 0.04741 43 500,000.00 3.22853
17 500,000.00 0.05649 44 500,000.00 3.71109
18 500,000.00 0.06725 45 500,000.00 4.24541
19 500,000.00 0.08016 46 500,000.00 4.84859
20 500,000.00 0.09527 47 500,000.00 5.53770
21 500,000.00 0.11272 48 500,000.00 6.33237
22 500,000.00 0.13268 49 500,000.00 7.24554
23 500,000.00 0.15492 50 500,000.00 8.26516
24 500,000.00 0.17972 51 500,000.00 9.37750
25 500,000.00 0.20783 52 500,000.00 10.56782
26 500,000.00 0.24032 53 500,000.00 11.82596
27 500,000.00 0.27881 54 500,000.00 13.14547
ADJUSTABLE TERM INSURANCE RIDER SCHEDULE
TABLE OF TARGET DEATH BENEFITS AND GUARANTEED MONTHLY MAXIMUM COST
OF TERM INSURANCE RATES PER $1,000 OF INSURANCE
POLICY NO. 67000001
POLICY TARGET DEATH GUARANTEED POLICY TARGET DEATH GUARANTEED
YEAR BENEFIT MONTHLY RATES YEAR BENEFIT MONTHLY RATES
55 500,000.00 14.52703
56 500,000.00 15.97964
57 500,000.00 17.52244
58 500,000.00 19.19650
59 500,000.00 21.07894
60 500,000.00 23.37773
61 500,000.00 26.51949
62 500,000.00 31.35742
63 500,000.00 39.59830
64 500,000.00 54.65492
65 500,000.00 83.33333
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REFER TO YOUR RIDER FOR MORE INFORMATION.