Exhibit 1.A(5)(a)
SECURITY LIFE OF DENVER
INSURANCE COMPANY
INSURED: JOHN DOE
POLICY DATE: March 1, 2000
POLICY NUMBER: 67000001
WE AGREE TO PAY the death benefit to the beneficiary upon the death of the
insured while this policy is in force.
WE ALSO AGREE to provide the other rights and benefits of the policy. These
agreements are subject to the provisions of the policy.
RIGHT TO EXAMINE PERIOD. You have the right to examine and return this policy
within 10 days after receipt. The policy may be returned by delivering or
mailing it to us at our Customer Service Center or to your registered
representative. Immediately upon return it will be deemed void as of the policy
date. Upon return of the policy to us, we will refund all premiums paid. If this
policy is a replacement policy as defined by state law where this policy is
delivered, you have the right to examine and return this policy within 20 days.
/s/ Gary W. Waggoner /s/ Stephen M. Christopher
Secretary President
In this policy "you" and "your" refer to the owner of the policy. "We", "us" and
"our" refer to Security Life of Denver Insurance Company.
THIS POLICY IS A FLEXIBLE PREMIUM VARIABLE UNIVERSAL LIFE INSURANCE POLICY.
THIS IS A NON-PARTICIPATING POLICY.
DEATH BENEFITS AND OTHER VALUES PROVIDED BY THIS CONTRACT, WHEN BASED ON THE
INVESTMENT EXPERIENCE OF A SEPARATE ACCOUNT, ARE VARIABLE. THESE VALUES MAY
INCREASE OR DECREASE BASED ON INVESTMENT EXPERIENCE AND ARE NOT GUARANTEED AS TO
FIXED DOLLAR AMOUNT. DEATH BENEFITS ARE PAYABLE BY US UPON THE DEATH OF THE
INSURED. THERE IS NO MATURITY DATE. FLEXIBLE PREMIUMS ARE PAYABLE BY YOU DURING
THE LIFETIME OF THE INSURED UNTIL THE POLICY ANNIVERSARY NEAREST THE INSURED'S
100TH BIRTH DATE.
SECURITY LIFE OF DENVER INSURANCE COMPANY
A Stock Company
Customer Service Center, P.O. Box 173888, Denver, Colorado 80217
Toll Free Number: 1(800) 848-6362
Form 2505 (VUL)-3/00
TABLE OF CONTENTS
SCHEDULE.......................................................................5
DEFINITION OF TERMS............................................................6
INSURANCE COVERAGE PROVISIONS..................................................7
EFFECTIVE DATE OF COVERAGE..............................................7
BASE DEATH BENEFIT......................................................7
CHANGE IN REQUESTED INSURANCE COVERAGE..................................8
REQUESTED INCREASES IN COVERAGE..................................8
REQUESTED DECREASES IN COVERAGE..................................8
DEATH BENEFIT OPTION CHANGES.....................................8
CONTINUATION OF COVERAGE AFTER AGE 100..................................9
PAYOUT OF PROCEEDS.....................................................10
PREMIUM PROVISIONS............................................................10
INITIAL PREMIUM ALLOCATION.............................................10
SUBSEQUENT PREMIUM ALLOCATION..........................................11
CHANGES TO PREMIUM ALLOCATIONS.........................................11
SCHEDULED PREMIUMS.....................................................11
UNSCHEDULED PREMIUMS...................................................11
NET PREMIUM............................................................11
PREMIUM LIMITATION.....................................................12
FAILURE TO PAY PREMIUM.................................................12
SEPARATE ACCOUNT PROVISIONS...................................................12
THE SEPARATE ACCOUNT...................................................12
SEPARATE ACCOUNT INVESTMENT OPTIONS....................................12
CHANGES WITHIN THE SEPARATE ACCOUNT....................................13
GENERAL ACCOUNT PROVISIONS....................................................14
THE GENERAL ACCOUNT....................................................14
GUARANTEED INTEREST DIVISION...........................................14
LOAN DIVISION..........................................................14
Form 2505 (VUL)-3/00
Page 2
TRANSFER PROVISIONS...........................................................14
ACCOUNT VALUE PROVISIONS......................................................14
ACCOUNT VALUES ON THE INVESTMENT DATE..................................15
ACCUMULATION UNIT VALUE................................................15
ACCUMULATION EXPERIENCE FACTOR.........................................15
ACCOUNT VALUE OF THE INVESTMENT OPTIONS OF THE SEPARATE ACCOUNT........16
ACCOUNT VALUE OF THE GUARANTEED INTEREST DIVISION......................16
ACCOUNT VALUE OF THE LOAN DIVISION.....................................17
DEDUCTIONS....................................................................17
MONTHLY DEDUCTION......................................................17
DEFERRED SALES LOAD....................................................17
COST OF INSURANCE......................................................18
LOAN PROVISIONS...............................................................18
POLICY LOANS...........................................................18
LOAN INTEREST..........................................................19
LOAN DIVISION..........................................................19
PARTIAL WITHDRAWAL PROVISIONS.................................................19
SURRENDER PROVISIONS..........................................................20
SURRENDER VALUE........................................................20
BASIS OF COMPUTATIONS..................................................20
FULL SURRENDERS........................................................20
GRACE PERIOD, TERMINATION AND REINSTATEMENT PROVISIONS........................21
GRACE PERIOD...........................................................21
TERMINATION............................................................21
REINSTATEMENT..........................................................21
DEFERRAL OF PAYMENT....................................................22
Form 2505 (VUL)-3/00
Page 3
GENERAL POLICY PROVISIONS.....................................................22
THE POLICY.............................................................22
CONTRACT CHANGES.......................................................22
PROCEDURES.............................................................23
OWNERSHIP..............................................................23
BENEFICIARIES..........................................................23
EXCHANGE RIGHT.........................................................23
COLLATERAL ASSIGNMENT..................................................23
INCONTESTABILITY.......................................................24
MISSTATEMENT OF AGE OR GENDER..........................................24
SUICIDE EXCLUSION......................................................24
PERIODIC REPORTS.......................................................24
ILLUSTRATION OF BENEFITS AND VALUES....................................24
NONPARTICIPATING.......................................................25
CUSTOMER SERVICE CENTER................................................25
PAYOUTS OTHER THAN AS ONE SUM.................................................25
ELECTION...............................................................25
PAYOUT OPTIONS.........................................................25
CHANGE AND WITHDRAWAL..................................................26
EXCESS INTEREST........................................................26
MINIMUM AMOUNTS........................................................26
SUPPLEMENTARY POLICY...................................................26
INCOME PROTECTION......................................................27
DEATH OF PRIMARY PAYEE.................................................27
PAYMENTS OTHER THAN MONTHLY............................................27
SETTLEMENT OPTION TABLES......................................................28
ADDITIONAL BENEFITS OR RIDERS, IF ANY, WILL BE LISTED IN THE SCHEDULE. THE
ADDITIONAL PROVISIONS WILL BE INSERTED IN THE POLICY.
Form 2505 (VUL)-3/00
Page 4
SCHEDULE
(Schedule Effective Date: March 1,2000)
POLICY INFORMATION
Policy Number 67000001 Initial Stated Death Benefit $250,000.00
Adjustable Term Insurance Death Benefit $500,000.00*
Policy Date March 1, 2000 Target Death Benefit $750,000.00**
Insured JOHN DOE Additional Benefits:
Issue Age and Gender 35, Male Adjustable Term Insurance Rider
Death Benefit Option OPTION 1 Scheduled Premium $2,000.00 Annually
Definition of Life Insurance Test: Cash Value Accumulation Test
Coverage will expire if premiums are insufficient to continue coverage. Coverage
will also be affected by partial withdrawals, policy loans, changes in the
current cost of insurance rates, the actual credited interest rate for the
Guaranteed Interest Division and the investment experience of the Separate
Account.
*This amount is the amount of adjustable term death benefit on the policy date.
This death benefit will vary from time to time, and may depend on your account
value. See the rider and policy for details.
**This amount is the target death benefit on the policy date. It may change at
the beginning of each policy year. See the schedule and rider for details.
CUSTOMER SERVICE CENTER: P.O. BOX 173888, DENVER, COLORADO 80217
TOLL FREE NUMBER 1(800) 848-6362
Form 2505 (VUL)-3/00
Page 5
SCHEDULE (CONTINUED)
SEGMENT BENEFIT PROFILE
(SCHEDULE EFFECTIVE DATE: MARCH 1, 2000)
DESCRIPTION SEGMENT STATED DEATH SEGMENT EFFECTIVE DATE SEGMENT GUIDELINE ANNUAL SEGMENT TARGET PREMIUM SEGMENT PREMIUM CLASS
BENEFIT AMOUNT PREMIUM
- ------------------------------------------------------------------------------------------------------------------------------------
Segment #1 $250,000 March 1, 2000 $1,445.24 $3,981.00 Standard Non Tobacco
ADDITIONAL BENEFITS:
Adjustable Term Insurance Rider rating is the same as Segment #1
A segment is a block of death benefit coverage. The stated death benefit shown
on the schedule page at issue is Segment #1. Additional segments may be added to
the policy after issue to increase the death benefit. Each individual segment
added to the policy has its own cost of insurance charges and expense loads as
shown in the schedule. This is further defined in the Definition section of your
policy.
Form 2505 (VUL)-3/00
Page 5A
SCHEDULE (CONTINUED)
EXPENSE CHARGES
A. PREMIUM EXPENSE CHARGE. This charge will equal the sum of a sales load
plus a deferred sales load plus a tax charge. See Net Premium provision
for details.
1. SALES LOAD: 0.50% OF EACH PREMIUM.
2. DEFERRED SALES LOAD
3. FEDERAL DEFERRED ACQUISITION COST TAX CHARGE AND OTHER CHARGES
(TAX CHARGE): 4.0% of each premium.
We reserve the right to increase or decrease the tax charges due to
any change in tax laws. We further reserve the right to increase or
decrease the tax charge for federal deferred acquisition cost tax due
to any change in the cost to us.
B. MONTHLY EXPENSE CHARGES: The monthly expense charge will equal the
following:
PER POLICY CHARGE: $12 per month for the first 12 months
$6 per month thereafter
ANNUAL MORTALITY AND EXPENSE RISK CHARGE
ANNUAL MORTALITY AND EXPENSE RISK CHARGE 0.15% (0.000411% per day)
Form 2505 (VUL)-3/00
Page 5B
SCHEDULE (CONTINUED)
POLICYHOLDER TRANSACTION CHARGES
Requests for Sales Illustrations: We reserve the right to
charge a $25 fee for each
policy illustration over
one illustration per
policy year.
Partial Withdrawal Service Fee: See below.
Other Policy Transaction Charges: The charges for transfers
between divisions of the
Separate Account or
between the Guaranteed
Interest Division and the
Separate Account
Divisions; charges for
allocation changes; and
charges for other
Separate Account
management functions are
governed by the
prospectus in effect at
the time of the
transaction.
POLICY LOANS
Policy Loan Interest Rate: 3.25% per year
Guaranteed Interest Rate Credited To Loan Division: 3.00% per year
Minimum Loan Amount: $100
Maximum Loan Amount: See the Loan Provisions
section.
PARTIAL WITHDRAWALS
Minimum Partial Withdrawal Amount: $100
Maximum Partial Withdrawal Amount: Amount which will leave
$500 as the net account
value
Partial Withdrawal Service Fee: $25
Limit On Partial Withdrawals: One per policy year
GUARANTEED INTEREST DIVISION
Guaranteed Interest Rate For Guaranteed Interest Division: 3.00% per year
Form 2505 (VUL)-3/00
Page 5C
SCHEDULE (CONTINUED)
The policy's base death benefit at any time will be at least equal to the
account value times the appropriate factor from this table.
DEFINITION OF LIFE INSURANCE
CASH VALUE ACCUMULATION TEST
DEATH BENEFIT FACTORS
- --------------------- ------------- ----------------- ------------ ------------------ ------------ ------------------ -------------
Insured's Attained Factor Insured's Factor Insured's Factor Insured's Factor
Age Attained Age Attained Age Attained Age
- --------------------- ------------- ----------------- ------------ ------------------ ------------ ------------------ -------------
15 7.564 40 3.439 65 1.692 90
- --------------------- ------------- ----------------- ------------ ------------------ ------------ ------------------ -------------
16 7.335 41 3.330 66 1.654 91
- --------------------- ------------- ----------------- ------------ ------------------ ------------ ------------------ -------------
17 7.118 42 3.226 67 1.617 92
- --------------------- ------------- ----------------- ------------ ------------------ ------------ ------------------ -------------
18 6.911 43 3.125 68 1.583 93
- --------------------- ------------- ----------------- ------------ ------------------ ------------ ------------------ -------------
19 6.713 44 3.028 69 1.550 94
- --------------------- ------------- ----------------- ------------ ------------------ ------------ ------------------ -------------
- --------------------- ------------- ----------------- ------------ ------------------ ------------ ------------------ -------------
20 6.521 45 2.936 70 1.518 95
- --------------------- ------------- ----------------- ------------ ------------------ ------------ ------------------ -------------
21 6.334 46 2.846 71 1.488 96
- --------------------- ------------- ----------------- ------------ ------------------ ------------ ------------------ -------------
22 6.150 47 2.761 72 1.459 97
- --------------------- ------------- ----------------- ------------ ------------------ ------------ ------------------ -------------
23 5.969 48 2.678 73 1.432 98
- --------------------- ------------- ----------------- ------------ ------------------ ------------ ------------------ -------------
24 5.791 49 2.599 74 1.406 99
- --------------------- ------------- ----------------- ------------ ------------------ ------------ ------------------ -------------
25 5.615 50 2.522 75 1.382 100 and older
- --------------------- ------------- ----------------- ------------ ------------------ ------------ ------------------ -------------
26 5.441 51 2.449 76 1.359
- --------------------- ------------- ----------------- ------------ ------------------ ------------ ------------------ -------------
27 5.271 52 2.378 77 1.338
- --------------------- ------------- ----------------- ------------ ------------------ ------------ ------------------ -------------
28 5.104 53 2.311 78 1.318
- --------------------- ------------- ----------------- ------------ ------------------ ------------ ------------------ -------------
29 4.940 54 2.246 79 1.299
- --------------------- ------------- ----------------- ------------ ------------------ ------------ ------------------ -------------
- --------------------- ------------- ----------------- ------------ ------------------ ------------ ------------------ -------------
30 4.781 55 2.184 80 1.281
- --------------------- ------------- ----------------- ------------ ------------------ ------------ ------------------ -------------
31 4.626 56 2.125 81 1.264
- --------------------- ------------- ----------------- ------------ ------------------ ------------ ------------------ -------------
32 4.476 57 2.068 82 1.248
- --------------------- ------------- ----------------- ------------ ------------------ ------------ ------------------ -------------
33 4.330 58 2.014 83 1.233
- --------------------- ------------- ----------------- ------------ ------------------ ------------ ------------------ -------------
34 4.188 59 1.962 84 1.218
- --------------------- ------------- ----------------- ------------ ------------------ ------------ ------------------ -------------
35 4.052 60 1.912 85 1.205
- --------------------- ------------- ----------------- ------------ ------------------ ------------ ------------------ -------------
36 3.920 61 1.864 86
- --------------------- ------------- ----------------- ------------ ------------------ ------------ ------------------ -------------
37 3.793 62 1.818 87
- --------------------- ------------- ----------------- ------------ ------------------ ------------ ------------------ -------------
38 3.670 63 1.774 88
- --------------------- ------------- ----------------- ------------ ------------------ ------------ ------------------ -------------
39 3.553 64 1.732 89
- --------------------- ------------- ----------------- ------------ ------------------ ------------ ------------------ -------------
Form 2505 (VUL)-3/00
Page 5D
SCHEDULE (CONTINUED)
TABLE OF GUARANTEED RATES-SEGMENT #1
Guaranteed Maximum Cost of Insurance Rates Per $1000 of Net Amount at Risk
(These rates apply to the Base Policy.)
- ------------ ------------------- ------------ ------------------- ------------ ------------------- ------------ --------------------
Attained Age Monthly Cost of Attained Age Monthly Cost of Attained Age Monthly Cost of Attained Age Monthly Cost of
Insurance Rate Insurance Rate Insurance Rate Insurance Rate
- ------------ ------------------- ------------ ------------------- ------------ ------------------- ------------ --------------------
15 0.11085 36 0.18670 57 1.04192 78 7.04089
- ------------ ------------------- ------------ ------------------- ------------ ------------------- ------------ --------------------
16 0.12585 37 0.20004 58 1.13378 79 7.64551
- ------------ ------------------- ------------ ------------------- ------------ ------------------- ------------ --------------------
17 0.13919 38 0.21505 59 1.23235 80 8.30507
- ------------ ------------------- ------------ ------------------- ------------ ------------------- ------------ --------------------
18 0.14836 39 0.23255 60 1.34180 81 9.03761
- ------------ ------------------- ------------ ------------------- ------------ ------------------- ------------ --------------------
19 0.15502 40 0.25173 61 1.46381 82 9.86724
- ------------ ------------------- ------------ ------------------- ------------ ------------------- ------------ --------------------
20 0.15836 41 0.27424 62 1.60173 83 10.80381
- ------------ ------------------- ------------ ------------------- ------------ ------------------- ------------ --------------------
21 0.15919 42 0.29675 63 1.75809 84 11.82571
- ------------ ------------------- ------------ ------------------- ------------ ------------------- ------------ --------------------
22 0.15752 43 0.32260 64 1.93206 85 12.91039
- ------------ ------------------- ------------ ------------------- ------------ ------------------- ------------ --------------------
23 0.15502 44 0.34929 65 2.12283 86 14.03509
- ------------ ------------------- ------------ ------------------- ------------ ------------------- ------------ --------------------
24 0.15169 45 0.37931 66 2.32623 87 15.18978
- ------------ ------------------- ------------ ------------------- ------------ ------------------- ------------ --------------------
25 0.14752 46 0.41017 67 2.54312 88 16.36948
- ------------ ------------------- ------------ ------------------- ------------ ------------------- ------------ --------------------
26 0.14419 47 0.44353 68 2.77350 89 17.57781
- ------------ ------------------- ------------ ------------------- ------------ ------------------- ------------ --------------------
27 0.14252 48 0.47856 69 3.02328 90 18.82881
- ------------ ------------------- ------------ ------------------- ------------ ------------------- ------------ --------------------
28 0.14169 49 0.51777 70 3.30338 91 20.14619
- ------------ ------------------- ------------ ------------------- ------------ ------------------- ------------ --------------------
29 0.14252 50 0.55948 71 3.62140 92 21.57655
- ------------ ------------------- ------------ ------------------- ------------ ------------------- ------------ --------------------
30 0.14419 51 0.60870 72 3.98666 93 23.20196
- ------------ ------------------- ------------ ------------------- ------------ ------------------- ------------ --------------------
31 0.14836 52 0.66377 73 4.40599 94 25.28174
- ------------ ------------------- ------------ ------------------- ------------ ------------------- ------------ --------------------
32 0.15252 53 0.72636 74 4.87280 95 28.27411
- ------------ ------------------- ------------ ------------------- ------------ ------------------- ------------ --------------------
33 0.15919 54 0.79730 75 5.37793 96 33.10677
- ------------ ------------------- ------------ ------------------- ------------ ------------------- ------------ --------------------
34 0.16669 55 0.87326 76 5.91225 97 41.68475
- ------------ ------------------- ------------ ------------------- ------------ ------------------- ------------ --------------------
35 0.17586 56 0.95591 77 6.46824 98 58.01259
- ------------ ------------------- ------------ ------------------- ------------ ------------------- ------------ --------------------
99 83.33333
- ------------ ------------------- ------------ ------------------- ------------ ------------------- ------------ --------------------
The rates shown are for a standard premium class. If the policy is based on a
premium class other than standard, the maximum cost of insurance rates will be
adjusted using the rating factor shown in the Segment Benefit Profile of the
Schedule for the premium class. If the premium class is a stated percentage
increase, the maximum cost of insurance rates will be determined by multiplying
the rates for a standard premium class shown above by the rating factor show in
the Segment Benefit Profile of the Schedule. If the premium class is a flat
amount per $1,000, the maximum cost of insurance rates will be determined by
adding the flat amount per $1,000 shown in the Segment Benefit Profile of the
Schedule to the rate per $1,000 for the standard premium class shown above. The
rates shown above are based on the 1980 Commissioners' Standard Ordinary Male
Smoker Composite Mortality Table (Male), age nearest birth date.
Form 2505
(VUL)-3/00 Page 5E
DEFINITION OF TERMS
ACCOUNT VALUE - The sum of the amounts allocated to the investment options of
the Separate Account and to the Guaranteed Interest Division, as well as any
amount set aside in the Loan Division to secure a policy loan.
ACCUMULATION UNIT - A unit of measurement used to calculate the account value in
each investment option of the Separate Account.
ACCUMULATION UNIT VALUE - The value of an accumulation unit of each investment
option of the Separate Account. The accumulation unit value is determined as of
each valuation date.
AGE - The policy is issued at the age shown in the Schedule. Each issue age is
the age nearest birthday on the policy date.
BASE DEATH BENEFIT - The base death benefit is defined in the Base Death Benefit
provision of the policy.
CUSTOMER SERVICE CENTER - Our administrative office whose address is P. O. Box
173888, Denver, CO 80217.
INVESTMENT OPTIONS OF THE SEPARATE ACCOUNT - The investment options available,
each of which invests in shares of one of the portfolios.
Five-Day deemed delivery time. Five (5) days from the day we mail you your
policy.
GENERAL ACCOUNT - The account that contains all of our assets other than those
held in the Separate Account or our other separate accounts.
GUARANTEED INTEREST DIVISION - Part of our General Account to which a portion of
the account value may be allocated and which provides guarantees of principal
and interest.
INVESTMENT DATE -The first time we allocate funds to your policy. We will
allocate the initial net premium to your policy at the end of the valuation
period during which the latest of the following requirements is satisfied: 1) we
receive the amount of premium required for coverage to begin under the policy;
2) we have approved the policy for issue, and 3) all issue requirements have
been met and received in our Customer Service Center.
LOAN DIVISION - Part of our General Account in which funds are set aside to
secure any outstanding policy loan and accrued loan interest when due.
MONTHLY PROCESSING DATE - The date each month on which the monthly deductions
from the account value are due. The first monthly processing date will be the
policy date or the investment date, if later. Subsequent monthly processing
dates will be the same date as the policy date each month thereafter. If that
date is not a valuation date, monthly processing will use the next calculated
accumulation unit value.
NET ACCOUNT VALUE - The amount of the account value minus any policy loan and
accrued loan interest. This is the same as your surrender value.
NET PREMIUM - The net premium equals the premium paid minus the premium expense
charges shown in the Schedule. These charges are deducted from the premium
before the premium is applied to your account value.
PARTIAL WITHDRAWAL - The withdrawal of a portion of your net account value from
the policy. The partial withdrawal may reduce the amount of base death benefit
in force.
POLICY LOAN - The sum of amounts you have borrowed from your policy, increased
by any policy loan interest capitalized when due, and reduced by any policy loan
repayments.
RIGHT TO EXAMINE PERIOD - The period of time within which the owner may examine
the policy and return it for a refund.
SCHEDULED PREMIUM - The premium amount that you specify on the application as
the amount you intend to pay at fixed intervals over a specified period of time.
Premiums may be paid on a monthly, quarterly, semiannual, or annual basis, as
you determine. You need not pay the scheduled premium and you may change it at
any time.
Form 2505 (VUL)-3/00
Page 6
Also, within limits, you may pay less or more than the scheduled premium.
SEGMENT - The stated death benefit shown on the Segment Benefit Profile of the
Schedule is the initial segment, or Segment #1. Each increase in the stated
death benefit (other than due to an option change) is a new segment. Each new
segment will be shown separately on the Segment Benefit Profile of the Schedule.
The first year for a segment begins on the effective date of the segment and
ends one year later. Each subsequent year begins at the end of the prior segment
year. Each new segment may be subject to a new sales load, new cost of insurance
charges and new incontestability and suicide exclusion periods.
STATED DEATH BENEFIT -The sum of the segments under the policy. The stated death
benefit changes when there is an increase or a decrease or when a transaction on
the policy causes it to change (for example, a partial withdrawal under an
Option 1 base death benefit may cause the stated death benefit to change).
TARGET DEATH BENEFIT - The target death benefit for your policy is defined in
the Adjustable Term Insurance Rider, if any, attached to the policy.
VALUATION DATE - Each date as of which the net asset value of the shares of the
portfolios and unit values of the divisions are determined.
Except for days that a division's corresponding portfolio does not value its
shares, a valuation date is any day:
(a) The New York Stock Exchange ("NYSE") is open for trading and on which
Security Life's Customer Service Center is open for business; or
(b) as may be required by law.
VALUATION PERIOD - The period which begins at 4:00 p.m. Eastern Time on a
valuation date and ends at 4:00 p.m. Eastern Time on the next succeeding
valuation date.
Form 2505 9VUL)-3/00
Page 6a
INSURANCE COVERAGE PROVISIONS
EFFECTIVE DATE
The policy date shown in the Schedule is the effective date for all coverage
provided in the original application. The policy date is the date from which we
measure policy years and determine the monthly processing date. The first
monthly processing date is the investment date. Future monthly processing dates
are the same calendar day of each month as the policy date unless this is not a
valuation date in which case the monthly processing date occurs on the next
valuation date. A policy anniversary occurs each year on the same month and day
as the policy date unless this is not a valuation date in which case the policy
anniversary occurs on the next valuation date. The effective date for new
segments and additional benefits is shown in the Schedule.
BASE DEATH BENEFIT
The base death benefit will be, at any time, determined as follows:
Option 1: Under Option 1, the base death benefit is the greater of:
(a) The stated death benefit; or
(b) The account value multiplied by the appropriate factor from the
Death Benefit Factors shown in the Schedule.
Option 2: Under Option 2, the base death benefit is the greater of:
(a) The stated 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.
Option 3: Under Option 3, the base death benefit is the greater of:
(a) The stated death benefit plus premiums paid less withdrawals, or
(b) The account value multiplied by the appropriate factor from the
Death Benefit Factors shown in the Schedule.
The stated death benefit and the death benefit option are shown in the Schedule.
This policy is designed to qualify as a life insurance contract under the
Internal Revenue Code. All terms and provisions of the policy shall be construed
in a manner consistent with that design. The base death benefit in force at any
time shall not be less than the amount of insurance necessary to achieve such
qualification under the applicable provisions of the Internal Revenue Code in
existence at the time the policy is issued. We reserve the right to amend the
policy or adjust the amount of insurance when required. We will send you a copy
of any policy amendment.
Form 2505 (VUL)-3/00
Page 7
CHANGE IN REQUESTED INSURANCE COVERAGE
You may request that the insurance coverage be increased or decreased. Decreases
are not allowed before the first policy anniversary. The change in coverage may
not be for an amount less than $1,000. The effective date of the change will be
the monthly processing date immediately following the date your written
application is approved by us. After any change to the stated death benefit, you
will receive an amended Schedule reflecting the change, the benefit under any
riders, if applicable, the guaranteed cost of insurance rates, the guideline
annual premium and the new target premium.
REQUESTED INCREASES IN COVERAGE
Subject to our limits, you may request an increase in the stated death benefit
through attained age 75. An increase will become effective as of the monthly
processing date immediately following the date your written application is
approved by us. You must provide evidence satisfactory to us that the insured is
insurable according to our normal rules of underwriting for the applicable
premium class for this type of policy. This evidence will include an application
and may include required medical information. An increase will consist of a new
segment of stated death benefit . Each new segment will result in a new sales
load which will be deducted from the premium allocated to the new segment. A new
deferred sales load will be deducted from the premium. The new segment may also
be subject to new monthly expense charges, new cost of insurance charges and new
incontestability and suicide exclusion periods.
REQUESTED DECREASES IN COVERAGE
After the first policy anniversary, you may request a decrease in the stated
death benefit. We will limit the decrease such that, immediately after the
requested decrease:
(a) If there is no adjustable term insurance on the policy, the
stated death benefit is at least $50,000.
(b) If there is adjustable term insurance on the policy, the target
death benefit is at least $50,000.
A decrease will be effective as of the monthly processing date immediately
following the date your written application is approved by us. A decrease will
first reduce Adjustable Term Insurance Rider coverage, if attached to your
policy, and will then reduce each of the stated death benefit segments in the
same proportion as the stated death benefit is reduced.
DEATH BENEFIT OPTION CHANGES
Beginning with the first monthly processing date and ending with the policy
anniversary nearest the insured's 100th birth date, you may request to change
the death benefit option. This change will be effective as of the monthly
processing date next following approval. A death benefit option change applies
to the entire stated death benefit. We may not allow any change if it would
reduce the target death benefit below the minimum we require to issue this
policy at the time of reduction. Death benefit option changes from Option 1 to
Option 3, from Option 2 to Option 3 and from Option 3 to Option 2 are not
allowed. After the effective date of the change, the stated death benefit will
be changed according to the following table:
Form 2505 (JTVUL)-8/99
Page 8
OPTION CHANGE
FROM TO STATED DEATH BENEFIT FOLLOWING THE OPTION CHANGE EQUALS:
Option 1 Option 2 Stated death benefit prior to such change minus your account value as of the effective date of the change.
Option 2 Option 1 Stated death benefit prior to such change plus your account value as of the effective date of the change.
Option 3 Option 1 Stated death benefit prior to such change plus the sum of the premiums paid minus partial withdrawals
taken as of the effective date of the change.
To determine the segment stated death benefit after an option change, your
account value will be allocated to each segment in the same proportion that
segment bears to the stated death benefit as of the effective date of the
change.
CONTINUATION OF COVERAGE AFTER AGE 100
If the policy is in force on the policy anniversary nearest the insured's 100th
birth date, the policy will continue pursuant to the terms of the policy. On
this date, the following will occur:
(a) The target death benefit on the policy anniversary nearest the insured's
100th birth date will then become the stated death benefit for the policy
and any remaining death benefit in force under the Adjustable Term
Insurance Rider will terminate.
(b) All other riders attached to the policy also will terminate.
(c) The portion of your account value invested in the investment options of
the Separate Account will be transferred into the Guaranteed Interest
Division and no further investment in the Separate Account will be
allowed.
(d) If the death benefit option in force on the policy is Option 2 or Option
3, the policy will be converted to death benefit Option 1 in accordance
with the procedures outlined in the Death Benefit Option Changes
provision of the policy. No further changes will be allowed to the death
benefit option.
After the policy anniversary nearest the insured's 100th birth date, no further
premiums will be accepted and no monthly deductions will be made. However, a
one-time administrative fee of $200 will be charged against the policy's account
value. We will continue to credit interest to the account value in the
Guaranteed Interest Division. Policy loans and withdrawals continue to be
available. Any existing policy loan will continue. Policy loan interest will
continue to accrue. Payments on policy loans and policy loan interest will be
accepted. The policy will enter the 61-day grace period if the surrender value
is zero or less.
If you do not want coverage to continue past the policy anniversary nearest the
insured's 100th birth date, the policy may be surrendered at that time, or
earlier.
Form 2505 (VUL)-3/00
Page 9
PAYOUT OF PROCEEDS
Proceeds refer to the amount we will pay:
a) upon surrender of the policy; or
b) upon the death of the insured.
The proceeds upon surrender of this policy will be the net account value. The
amount of proceeds payable upon the death of the insured will be the base death
benefit in effect on the date of death, plus any amounts payable from any
additional benefits provided by rider, minus any outstanding policy loan
including accrued but unpaid interest, minus any unpaid monthly deductions
incurred prior to the date of death. The calculation of the death proceeds will
be computed as of the date of the insured's death.
We will determine the amount of proceeds payable upon the death of the insured
when we have received due proof of death and any other information which is
necessary to process the claim. Any proceeds we pay are subject to adjustments
as provided in the Misstatement of Age or Gender, Suicide Exclusion and
Incontestability provisions.
We will pay proceeds in one sum unless you request an alternate form of payment.
There are many possible methods of payment. The available payout options are
described in the Payouts Other Than As One Sum provision. Contact us or your
registered representative for additional information. Interest will be paid on
the one sum death proceeds from the date of death to the date of payment, or
until a payout option is selected. Interest will be at the rate we declare, or
at any higher rate required by law.
PREMIUM PROVISIONS
INITIAL PREMIUM ALLOCATION
If the 5-day deemed delivery time plus your right to examine period have not
ended on the investment date, net premium amounts designated for allocation to
investment options of the Separate Account will be allocated on the investment
date to the Money Market Division and any net premium amount designated for
allocation to the Guaranteed Interest Division will be allocated to that
division. Any additional net premium amounts received after the investment date
and before the end of the 5-day deemed delivery time plus your right to examine
period will be allocated in the same manner as the initial net premium, at the
end of the valuation period during which we receive the premium at our Customer
Service Center. On the valuation date immediately following the end of the 5-day
deemed delivery time plus your right to examine period, the balance of the
amount in the Money Market Division will be transferred to other investment
options of the Separate Account according to your allocation instructions. The
amounts allocated to the Guaranteed Interest Division will remain in that
division.
If the 5-day deemed delivery time plus your right to examine period has ended on
the investment date, initial net premium amounts will be allocated on the
investment date to investment options of the Separate Account and/or to the
Guaranteed Interest Division in accordance with your allocation instructions.
Form 2505 (JTVUL)-8/99
Page 10
SUBSEQUENT PREMIUM ALLOCATIONS
After the initial premium allocation, all future scheduled and unscheduled
premiums will be allocated to the investment options of the Separate Account in
accordance with your allocation instructions. This allocation will occur at the
end of the valuation period during which we receive the premium at our Customer
Service Center.
CHANGES TO PREMIUM ALLOCATIONS
You may change your premium allocation in accordance with instructions included
in your annual policy prospectus. If the change causes a premium allocation
charge to be incurred according to the Schedule, we will deduct a charge from
the investment options of the Separate Account and from the Guaranteed Interest
Division as described in the prospectus in effect at the time of the
transaction.
SCHEDULED PREMIUMS
The scheduled premium as shown in the Schedule may be paid while this policy is
in force prior to the policy anniversary nearest the insured's 100th birth date.
You may increase or decrease the amount of the scheduled premium, subject to
limits we may set and provisions in the Premium Limitation section. Under
conditions provided in the Grace Period provision, you may be required to make
premium payments to keep the policy in force. You may pay premiums on a monthly
basis through an automated payment facility. All payment modes are subject to
our minimum requirements for the payment mode selected.
UNSCHEDULED PREMIUMS
You may make unscheduled premium payments at any time the policy is in force
prior to the policy anniversary nearest the insured's 100th birth date, subject
to the Premium Limitation section. Unless you tell us otherwise, these premium
payments will first be applied to reduce or pay off any existing policy loan
and, as such, premium expense charges will not be deducted.
NET PREMIUM
The net premium equals the premium paid minus the premium expense charge shown
in the Schedule. The premium expense charge is the sales load plus the tax
charge. The tax charge is the applicable tax percentage times the premium.
To determine the sales load, we multiply the applicable percentage sales load
times the premium allocated to the segment. There is a different percentage
sales load for the allocated premium that is below the segment target premium
than for the allocated premium that is above that segment target premium. The
Form 2505 (JTVUL)-8/99
Page 11
applicable percentage sales load also depends on the segment year the premium is
received. Each premium received is allocated to the existing segments. (If there
is only one segment the entire premium is allocated to that segment.) Premiums
are allocated in the same proportion that the target premium of each segment
bears to the sum of the target premiums of all segments.
The Schedule shows: (1) the target premium for each segment; (2) the percentage
sales loads; (3) the deferred sales load; and (4) the tax percentage.
PREMIUM LIMITATION
We will refund any premium that causes your policy not to qualify as a life
insurance policy under the Internal Revenue Code. No premium may be paid after
the death of the insured. No premium may be paid after the policy anniversary
nearest the insured's 100th birth date.
FAILURE TO PAY PREMIUM
If you stop paying premiums prior to the policy anniversary nearest the
insured's 100th birth date, your coverage may lapse. See your Grace Period
provision for details.
SEPARATE ACCOUNT PROVISIONS
THE SEPARATE ACCOUNT
The Separate Account is an account established by us, pursuant to the laws of
the State of Colorado, to separate the assets funding the benefits for the class
of policies to which this policy belongs from the other assets of Security Life
of Denver Insurance Company.
The Separate Account is registered as a unit investment trust under the
Investment Company Act of 1940. All income, gains and losses, whether or not
realized, from assets allocated to the Separate Account are credited to or
charged against the Separate Account without regard to income, gains or losses
of our General Account. The assets of the Separate Account are our property but
are separate from our General Account and our other Separate Accounts. That
portion of the assets of the Separate Account which is equal to the reserves and
other policy liabilities with respect to the Separate Account is not chargeable
with liabilities arising out of any other business we may conduct or subject to
creditor claims against us.
SEPARATE ACCOUNT INVESTMENT OPTIONS
The Separate Account is divided into investment options, each of which invests
in a fund portfolio designed to meet the objectives of the investment option.
The current eligible investment options are shown in your annual policy
prospectus. We may, from time to time, add additional investment options. If we
do, you may be permitted to select from these other divisions subject to the
terms and conditions we may impose on those allocations.
Form 2505 (VUL)-3/00
Page 12
We reserve the right to limit the number of divisions in which you may invest
over the life of the policy. This limit, if any, will be listed in the updated
policy prospectus provided to you each year.
CHANGES WITHIN THE SEPARATE ACCOUNT
When permitted by law, and subject to any required notice to you and approval of
the Securities and Exchange Commission ("SEC"), state regulatory authorities or
policy owners, we may from time to time make the following changes to the
Separate Account:
o Make additional investment options available. These investment
options will invest in portfolios we find suitable for the policy.
o Eliminate investment options from the Separate Account or combine 2
or more investment options.
o Substitute a new portfolio for the portfolio in which a investment
option invests. A substitution may become necessary if, in our
judgment, a portfolio no longer suits the purposes of the policy.
This may happen due to a change in laws or regulations, or a change
in a portfolio's investment objectives or restrictions. This may also
happen if the portfolio is no longer available for investment, or for
some other reason, such as a declining asset base.
o Transfer assets of the Separate Account, which we determine to be
associated with the class of policies to which your policy belongs,
to another Separate Account.
o Withdraw the Separate Account from registration under the Investment
Company Act of 1940.
o Operate the Separate Account as a management investment company under
the Investment Company Act of 1940.
o Invest one or more investment option in a mutual fund other than, or
in addition to, the portfolios.
o Discontinue the sale of policies.
o Terminate any employer or plan trustee agreement with us pursuant to
its terms.
o Restrict or eliminate any voting rights as to the Separate Account.
o Make any changes required by the Investment Company Act of 1940 or
the rules or regulations thereunder.
Form 2505 (VUL)-3/00
Page 13
GENERAL ACCOUNT PROVISIONS
THE GENERAL ACCOUNT
The General Account holds all of our assets other than those held in the
Separate Account or our other separate accounts. The Guaranteed Interest
Division is a part of our General Account.
GUARANTEED INTEREST DIVISION
The Guaranteed Interest Division is another division to which you may allocate
premiums or make transfers. The account value of the Guaranteed Interest
Division is equal to amounts allocated to this division plus any earned interest
minus deductions taken from this division. Interest is credited at the
guaranteed rate shown in the schedule or may be credited at a higher rate. Any
higher rate is guaranteed to be in effect for at least a 12-month period.
LOAN DIVISION
The Loan Division is the account that is set aside to secure the policy loan, if
any. See the Loan Provisions section for information.
TRANSFER PROVISIONS
After the initial premium allocation and until the policy anniversary nearest
the insured's 100th birth date, your account value in each division may be
transferred to any other investment option of the Separate Account or to the
Guaranteed Interest Division upon your request. One transfer from the Guaranteed
Interest Division into the variable divisions may be made during the first 30
days of each policy year. Additional limitations, requirements and charges for
transfers will be listed in and governed by your annual policy prospectus in
effect at the time of the transfer. We reserve the right to modify these
limitations, requirements and charges from time to time. On the policy
anniversary nearest the insured's 100th birth date, your account value in each
investment option of the Separate Account will be transferred into the
Guaranteed Interest Division and no further transfers will be allowed.
ACCOUNT VALUE PROVISIONS
The account value is the sum of the current amounts allocated to the investment
options of the Separate Account and to the Guaranteed Interest Division plus
your balance in the Loan Division.
Form 2505 (VUL)-3/00
Page 14
The account value is based on the premiums paid, policy and rider charges
assessed, loans and withdrawals taken, monthly deductions, premium expense
charges, transaction charges, and the investment experience or credited interest
of the divisions to which your account value is allocated.
Your net account value is equal to your account value minus any policy loan and
accrued but unpaid loan interest.
ACCOUNT VALUES ON THE INVESTMENT DATE
The account value of each investment option of the Separate Account and the
Guaranteed Interest Division as of the investment date is equal to:
a) The allocation to that division of the first net premium paid; minus
b) The portion of any monthly deductions allocated to that division due
on the investment date.
ACCUMULATION UNIT VALUE
The investment experience of an investment option of the Separate Account is
determined as of each valuation date. We use an accumulation unit value to
measure the experience of each of the Separate Account investment options during
a valuation period. We generally set the accumulation unit value at $10 when
each investment option is opened. The accumulation unit value for a valuation
date equals the accumulation unit value for the preceding valuation date
multiplied by the accumulation experience factor defined below for the valuation
period ending on the valuation date.
The number of units for a given transaction related to an investment option of
the Separate Account as of a valuation date is determined by dividing the dollar
value of that transaction by that division's accumulation unit value for that
date.
ACCUMULATION EXPERIENCE FACTOR
For each investment option of the Separate Account, the accumulation experience
factor reflects the investment experience of the portfolio in which that option
invests and the charges assessed against that investment option for a valuation
period. The accumulation experience factor is calculated as follows:
a) The net asset value of the portfolio in which that investment option
invests as of the end of the current valuation period; plus
b) The amount of any dividend or capital gains distribution declared and
reinvested in the portfolio in which that investment option invests
during the current valuation period; minus
c) A charge for taxes, if any.
d) The result of (a), (b) and (c) is then divided by the net asset value
of the portfolio in which that investment option invests as of the
end of the preceding valuation period.
e) The daily equivalent of the annual mortality and expense risk charge
shown in the Schedule for each day in the current valuation period is
then subtracted from the result obtained in (d).
Form 2505 (VUL)-3/00
Page 15
ACCOUNT VALUE OF THE INVESTMENT OPTIONS OF THE SEPARATE ACCOUNT
On subsequent valuation dates after the investment date, your account value of
each investment options of the Separate Account is calculated as follows:
a) The number of accumulation units in an investment option as of the
beginning of the current valuation period multiplied by that option's
accumulation unit value for the current valuation period; plus
b) Any additional net premiums allocated to that investment option
during the current valuation period; plus
c) Any account value transferred to or minus any account value
transferred from the Separate Account during the current valuation
period (including the applicable portion of any transfer fee); minus
d) Any partial withdrawals allocated to the investment option and any
applicable withdrawal service fees which are allocated to the
Separate Account during the current valuation period; plus
e) Any amounts released from the Loan Division as a result of a loan or
loan interest payment, or minus amounts transferred to the Loan
Division as a result of any loans which are allocated to the Variable
Division during the current valuation period; minus
f) The portion of the monthly deduction allocated to the Separate
Account, if a monthly processing date occurs during the current
valuation period; minus
g) The deferred sales load, if any.
ACCOUNT VALUE OF THE GUARANTEED INTEREST DIVISION
On valuation dates after the investment date, your account value of the
Guaranteed Interest Division is calculated as follows:
a) The account value of the Guaranteed Interest Division at the end of
the preceding valuation period plus interest at the declared rate
credited during the current valuation period; plus
b) Any additional net premiums allocated to the Guaranteed Interest
Division plus interest credited to these premiums during the current
valuation period; plus
c) Any account value transferred to or minus any account value
transferred from the Guaranteed Interest Division during the current
valuation period (including the applicable portion of any transfer
fee); minus
d) Any partial withdrawals taken and any applicable withdrawal service
fees which are allocated to the Guaranteed Interest Division during
the current valuation period; plus
e) Any amounts released from the Loan Division as a result of a loan or
loan interest payment, or minus amounts transferred to the Loan
Division as a result of any loans which are allocated to the
Guaranteed Interest Division during the current valuation period;
minus
f) The portion of the monthly deduction allocated to the Guaranteed
Interest Division, if a monthly processing date occurs during the
current valuation period; minus
g) The deferred sales load, if any.
Form 2505 (VUL)-3/00
Page 16
ACCOUNT VALUE OF THE LOAN DIVISION
On valuation dates after the investment date, your account value of the Loan
Division is equal to:
a) The account value of the Loan Division on the prior valuation date;
plus
b) Any interest credited to the Loan Division during the valuation
period; plus
c) An amount equal to any additional loans since the prior valuation
date; minus
d) Any loan repayments, including payment of loan interest; plus
e) The amount of accrued loan interest if the valuation date is a policy
anniversary; minus
f) The amount of interest credited to the Loan Division during the year
if the valuation date is a policy anniversary.
On policy anniversaries, any amount of interest credited to the Loan Division
during the year is transferred from the Loan Division to the Separate Account
and Guaranteed Interest Division according to your premium allocation then in
effect.
DEDUCTIONS
MONTHLY DEDUCTION
The monthly deduction is equal to:
a) The cost of insurance charges for this policy; plus
b) The monthly charges for any other additional benefits provided by
riders in force under the policy; plus
c) The monthly expense charges shown in the Schedule; plus
d) The policyholder transaction charges as described in the Schedule as
applicable.
The monthly deductions are allocated to the divisions of the Separate Account
and Guaranteed Interest Division as described in the prospectus in effect at the
time of the transaction. This deduction is taken from your account value as of
the monthly processing date. These deductions will display in periodic reports
that we send you at least once per policy year. After the policy anniversary
nearest the insured's 100th birth date no further monthly deductions will be
made, except policy transaction charges incurred after this date.
DEFERRED SALES LOAD
The deferred sales load will be deducted annually on each policy anniversary. It
is calculated based on a percentage of premiums paid in prior policy years up to
the target premium.
Form 2505 (VUL)-3/00
Page 17
COST OF INSURANCE
The cost of insurance for the policy is the sum of the cost of insurance for all
segments. A segment's cost of insurance is the cost of insurance rate for the
premium class for the segment multiplied by the net amount at risk allocated to
the segment. It is determined on a monthly basis.
The net amount at risk is (a) minus (b) where:
a) Is the base death benefit for all segments as of the monthly
processing date after the monthly deductions (other than cost of
insurance charges for the base death benefit, and any Adjustable Term
Insurance Rider), divided by the result of 1 plus the monthly
equivalent of the guaranteed interest rate for the Guaranteed
Interest Division as shown in the Schedule; and
b) Is your account value as of the monthly processing date after the
monthly deductions (other than the cost of insurance charges for the
base death benefit and any Adjustable Term Insurance Rider).
The net amount at risk will be allocated to a segment in the same proportion as
that segment's stated death benefit bears to the sum of the stated death
benefits for all segments.
The cost of insurance rate for each segment will be determined by us from time
to time. Different rates will apply to each segment. They will be based on the
age of the insured as of the effective date of segment coverage, the duration
since the coverage began and the segment premium class. Any change in rates will
apply to all individuals of the same premium class and whose policies have been
in effect for the same length of time. The rates will never exceed those rates
shown in the Table of Guaranteed Rates for the segment as adjusted for any
rating. These tables are in the Schedule.
LOAN PROVISIONS
POLICY LOANS
You may obtain a policy loan on or after the first monthly processing date. The
maximum amount you may borrow at any time equals the net account value on the
date of the loan request less all monthly deductions to the next policy
anniversary, or 13 monthly deductions if you take a loan within the 30 day
period before your next policy anniversary. The policy loan is a first lien on
your policy. The minimum amount you may borrow is shown in the Schedule. The
outstanding policy loan amount is equal to the loan amount as of the beginning
of the policy year plus new loans and minus loan repayments, plus accrued
interest.
LOAN INTEREST
The annual policy loan interest rate is shown in the Schedule. If a loan is
made, interest is due and payable at the end of the policy year. Thereafter,
interest on the loan amount is due annually at the end of each policy year until
the loan is repaid. If interest is not paid when due, it is added to the policy
loan.
If the policy loan amount and any accrued interest equals or exceeds the account
value, a premium sufficient to keep this policy in force must be paid as
provided in the Grace Period provision.
Form 2505 (VUL)-3/00
Page 18
LOAN DIVISION
When a policy loan is taken or when interest is not paid in cash when due, an
amount equal to the loan or unpaid loan interest respectively, is transferred
from the investment options of the Separate Account and the Guaranteed Interest
Division to the Loan Division to secure the loan. This amount will be deducted
from the investment options of the Separate Account and the Guaranteed Interest
Division in the same proportion that your account value in each investment
option bears to your net account value as of the date the transfer is effective
unless otherwise specified in your instructions to us. Your account value in the
Loan Division will be credited with interest at the interest rate for the Loan
Division shown in the Schedule.
When a loan repayment is made, an amount equal to the repayment is transferred
from the Loan Division to the Guaranteed Interest Division and the investment
options of the Separate Account in the same proportion as your current premium
allocation unless you request a different allocation in writing.
PARTIAL WITHDRAWAL PROVISIONS
You may apply for a partial withdrawal from your account value on any monthly
processing date after the first policy anniversary by writing to us at our
Customer Service Center. The minimum and maximum partial withdrawal amounts are
shown in the Schedule. When a partial withdrawal is made, the amount of the
withdrawal plus a service fee is deducted from your account value. The amount of
the service fee is shown in the Schedule. We limit the number of partial
withdrawals in a policy year. This number is shown in the Schedule.
The stated death benefit is reduced by the amount of the partial withdrawal
unless one of the following exceptions applies.
The stated death benefit is not reduced by a partial withdrawal taken when
the base death benefit has been increased to qualify your policy as life
insurance under the Internal Revenue Code and the amount withdrawn is not
greater than that which reduces your account value to the level which no
longer requires the base death benefit to be increased for Internal
Revenue Code purposes.
For a policy under an Option 1 death benefit, the stated death benefit is
not reduced by a partial withdrawal:
a) If no more than 15 years have elapsed since the policy date;
b) If the insured is not yet age 81; and
c) If the partial withdrawal taken is less than the greater of 10%
of your account value or 5% of the stated death benefit,
calculated immediately before the partial withdrawal. Any
additional amount withdrawn reduces your stated death benefit by
that additional amount.
For a policy under an Option 2 death benefit, a partial withdrawal does not
reduce your stated death benefit.
For a policy under an Option 3 death benefit, a partial withdrawal reduces your
stated death benefit by any amount of the partial withdrawal in excess of
premiums paid, less prior withdrawals, to the date of the partial withdrawal.
Any reduction in death benefit or account value will occur as of the date the
partial withdrawal occurs.
We will limit the amount of the partial withdrawal such that, immediately after
the requested withdrawal:
Form 2505 (VUL)-3/00
Page 19
a) If there is no adjustable term insurance on the policy, the stated
death benefit is at least $50,000.
b) If there is adjustable term insurance on the policy, the target death
benefit is at least $50,000.
You may specify how much of the withdrawal you wish taken from each investment
option of the Separate Account or from the Guaranteed Interest Division. You may
not withdraw from the Guaranteed Interest Division more than the total
withdrawal times the ratio of your account value in the Guaranteed Interest
Division to your net account value immediately prior to the withdrawal. Unless
you indicate otherwise, we will make the withdrawal from the amounts in the
Guaranteed Interest Division and the investment options of the Separate Account
in the same proportion that your account value in each investment option bears
to your net account value immediately prior to the withdrawal. The withdrawal
service fee deducted from your account value is deducted from each Variable
Division and the Guaranteed Interest Division as described in the prospectus in
effect at the time of the transaction.
We may send you a new Schedule to reflect the effect of the withdrawal if there
is any change to the stated death benefit. We may ask you to return your policy
to our Customer Service Center to make this change. The withdrawal and the
reductions in death benefits will be effective as of the valuation date after we
receive your request.
SURRENDER PROVISIONS
SURRENDER VALUE
The surrender value on any date will be your account value minus any policy loan
including accrued but unpaid loan interest.
BASIS OF COMPUTATIONS
The surrender value under the policy is not less than the minimum required as of
the policy date by the state in which your policy was delivered. A detailed
statement of the method of computation of policy values under the policy has
been filed with the insurance department of the state in which the policy was
delivered, if required.
FULL SURRENDERS
You may surrender your policy after the Right to Examine Period or at any time
during the lifetime of the insured and receive the surrender value. We will
compute the surrender value as of the next valuation date after we receive both
your request and the policy at our Customer Service Center. This policy will be
canceled as of the date we receive your request, and there will be no further
benefits under this policy. Once you surrender this policy, it cannot be
reinstated.
Form 2505 (VUL)-3/00
Page 20
GRACE PERIOD, TERMINATION AND REINSTATEMENT PROVISIONS
GRACE PERIOD
If the net account value is zero or less on a monthly processing date, the
policy will enter a 61-day grace period:
We will give you a 61-day grace period from this monthly processing date to make
the required premium payment. The required premium payment then due must be paid
to keep the policy in force. If this amount is not received in full by the end
of the grace period, the policy will lapse without value. The required premium
payment will be equal to past due charges plus an amount we expect to be
sufficient to keep the policy and any riders in force for 2 months following
receipt of the required premium payment. If we receive at least the required
premium payment during the grace period, we will apply the net premium payment
to the policy and make deductions for the past due amounts.
Notice of the amount of the required premium payment will be mailed to you or
any assignee at the last known address at least 30 days before the end of the
grace period. If the insured dies during the grace period, we will deduct any
overdue monthly charges from the death proceeds of the policy.
TERMINATION
All coverage provided by this policy will end as of the earliest of:
a) The date the policy is surrendered;
b) The date of the death of the insured; or
c) The date the grace period ends without payment of the required
premium.
REINSTATEMENT
The policy and its riders may be reinstated within five years after the
beginning of the grace period. The reinstatement will be effective as of the
monthly processing date on or next following the date we approve your written
application.
We will reinstate the policy and any riders if the following conditions are met:
a) You have not surrendered the policy for its surrender value;
b) You submit evidence satisfactory to us that the insured and those
insured under any riders are still insurable according to our normal
rules of underwriting for the applicable underwriting class for this
type of policy; and
c) We receive payment of the amount of premium sufficient to keep the
policy and any riders in force from the beginning of the grace period
to the end of the expired grace period and for 2 months after the
date of reinstatement. We will let you know, at the time you request
reinstatement, the amount of premium needed for this purpose.
Form 2505 (VUL)-3/00
Page 21
We will reinstate any policy loan, with accrued loan interest to the end of the
grace period, which existed when coverage ended.
Upon reinstatement, the net premium received minus past due amounts will be
allocated to the investment options of the Separate Account and the Guaranteed
Interest Division according to the premium allocation percentages in effect at
the start of the grace period or as directed by you in writing at the time of
reinstatement.
DEFERRAL OF PAYMENT
Requests for transfers, withdrawals, policy loans or payment of proceeds for a
full surrender will be mailed within 7 days of receipt of the request in a form
acceptable to us. However, we may postpone the processing of any such Separate
Account transactions for any of the following reasons:
a) The New York Stock Exchange (NYSE) is closed, other than customary
weekend and holiday closings.
b) Trading on the NYSE is restricted by the Securities and Exchange
Commission (SEC).
c) The SEC declares that an emergency exists as a result of which
disposal of securities in the Separate Account is not reasonably
practicable to determine your account value in the divisions.
d) A governmental body having jurisdiction over the Separate Account by
order permits such suspension.
Rules and regulations of the SEC, if any, are applicable and will govern as to
whether conditions described in (b), (c), or (d) exist.
Death proceeds will be paid within 7 days of determination of the proceeds and
are not subject to deferment. We may defer for up to 6 months payment of any
surrender proceeds, withdrawal or loan amounts from the Guaranteed Interest
Division.
GENERAL POLICY PROVISIONS
THE POLICY
The policy, including the original application and applications for any
increases, decreases, riders, endorsements, any Schedule pages, and any
reinstatement applications make up the entire contract between you and us. A
copy of the original application will be attached to the policy at issue or at
delivery. A copy of any application as well as a new Schedule will be attached
or furnished to you for attachment to the policy at the time of any change in
coverage. In the absence of fraud, all statements made in any application will
be considered representations and not warranties. No statement will be used to
deny a claim unless it is in an application.
CONTRACT CHANGES
All changes made by us must be signed by our president or an officer and by our
secretary or assistant secretary. No other persons can change any of this
policy's terms and conditions.
Form 2505 (VUL)-3/00
Page 22
PROCEDURES
We must receive any election, designation, assignment or any other change
request you make in writing, except those specified on the application. It must
be in a form acceptable to us. We may require a return of the policy for any
change or for a full surrender. We are not liable for any action we take before
we receive and record the written request at our Customer Service Center.
In the event of the death of the insured, please notify us, or our agent, as
soon as possible. Upon notification to us, or our agent, instructions will be
sent to you or the beneficiary immediately. We may require proof of age and a
certified copy of the death certificate. We may require the beneficiary and next
of kin to sign authorizations as part of due proof. These authorization forms
allow us to obtain information about the decedent, including, but not limited
to, medical records of physicians and hospitals used by the decedent. Settlement
will be made upon receipt of due proof of death.
OWNERSHIP
The original owner is the person or entity named as the owner in the
application. You, as the owner, can exercise all rights and receive the benefits
until the death of the insured. This includes the right to change the owner,
beneficiaries, and methods for the payment of proceeds. All rights of the owner
are subject to the rights of any assignee and any irrevocable beneficiary.
You may name a new owner by sending written notice to us. The effective date of
the change to the new owner will be the date you sign the notice. The change
will not affect any payment made or action taken by us before recording the
change at our Customer Service Center.
BENEFICIARIES
The primary beneficiary surviving the insured will receive any death proceeds
which become payable. Surviving contingent beneficiaries are paid death proceeds
only if no primary beneficiary has survived the insured. If more than one
beneficiary in a class survives the insured, they will share the death proceeds
equally, unless your designation provides otherwise. If there is no designated
beneficiary surviving, you or your estate will be paid the death proceeds. The
beneficiary designation will be on file with us or at a location designated by
us. Until the death of the insured, you may name a new beneficiary. The
effective date of the change will be the date the request was signed. We will
pay proceeds to the most recent beneficiary designation on file. We will not be
subject to multiple payments.
EXCHANGE RIGHT
If, for any reason, within the first 2 policy years you want to exchange this
policy for a policy in which values do not vary with the investment experience
of the Separate Account, we will exchange this policy. The exchange will be
implemented by transferring your account value in all the Divisions of the
Separate Account to the Guaranteed Interest Division and removing your future
right to choose to allocate funds to the Divisions of the Separate Account. This
transfer will not be subject to the excess transfer charge. We will require a
return of this policy before this change will be processed.
COLLATERAL ASSIGNMENT
You may assign this policy as collateral security by written notice to us. Once
it is recorded with us, the rights of the owner and beneficiary are subject to
the assignment. It is your responsibility to make sure the assignment is valid.
Form 2505 (VUL)-3/00
Page 23
INCONTESTABILITY
After this policy has been in force during the insured's life from the policy
date, we will not contest the statements in the application attached at issue.
After this policy has been in force during the insured's life from the effective
date of any new segment or from the effective date of an increase in any other
benefit, we will not contest the statements in the application for the new
segment or other increase.
After this policy has been in force while the insured is alive for 2 years from
the effective date of any reinstatement, we will not contest the statements in
the application for such reinstatement.
MISSTATEMENT OF AGE OR GENDER
If the insured's age or gender has been misstated, the death benefit will be
adjusted. The death benefit will be that which the cost of insurance, which was
deducted from your Account Value on the last monthly processing date prior to
the insured's death, would have purchased for the insured's correct age and
gender. If the death benefit adjustment is made prior to death, the adjusted
benefit will be to an equitable amount determined by us. This adjustment will
reflect the death benefit for the correct age or gender.
SUICIDE EXCLUSION
If the insured commits suicide, while sane or insane, within 2 years of the
policy date, we will make a limited payment to the beneficiary. We will pay in
one sum the amount of all premiums paid to us during that time, minus any
outstanding policy loan (including accrued but unpaid interest) and partial
withdrawals. Coverage under the policy and all riders will then terminate.
If the insured commits suicide, while sane or insane, within 2 years of the
effective date of a new segment or of an increase in any other benefit, we will
make a limited payment to the beneficiary for the new segment or other increase.
This payment will equal the cost of insurance and any applicable monthly expense
charges deducted for such increase. Coverage under that segment will then
terminate.
PERIODIC REPORTS
We will send you, without charge, at least once each year a report that shows
the current account value, cash surrender value and premiums paid since the last
report. The report will also show the allocation of your account value as of the
date of the report and the amounts added to or deducted from your account value
of each division since the last report. The report will include any other
information that may be currently required by the insurance supervisory official
of the jurisdiction in which this policy is delivered.
ILLUSTRATION OF BENEFITS AND VALUES
We will send you, upon written request, a hypothetical illustration of future
death benefits and account values. This illustration will include the
information as required by the laws or regulations where this policy is
delivered. If you request more than one illustration during a policy year, we
reserve the right to charge a reasonable fee for each additional illustration.
The maximum amount of this fee is shown in the Schedule.
Form 2505 (VUL)-3/00
Page 24
NONPARTICIPATING
The policy does not participate in our surplus earnings.
CUSTOMER SERVICE CENTER
Our Customer Service Center is at the address shown in the Schedule. Unless you
are otherwise notified:
a) All requests and payments should be sent to us at our Customer
Service Center; and
b) All transactions are effective as of the valuation date the required
information is received at our Customer Service Center.
PAYOUTS OTHER THAN AS ONE SUM
ELECTION
During the insured's lifetime, you may elect to have the beneficiary receive the
proceeds other than in one sum. If you have not made an election, the
beneficiary may do so within 60 days after we receive due proof satisfactory to
us of the insured's death. You may also elect to take the net cash surrender
value of the policy upon its surrender other than in one sum. Satisfactory
written request must be received at our Customer Service Center before payment
can be made. A payee that is not a natural person may not be named without our
consent. The various methods of settlement are described in the following Payout
Options section.
PAYOUT OPTIONS
OPTION I. PAYOUTS FOR A DESIGNATED PERIOD. Payouts will be made in annual,
semi-annual, quarterly or monthly installments per year as elected for a
designated period, which may be 5 to 30 years. The installment dollar
amounts will be equal except for any excess interest as described below.
The amount of the first monthly payout for each $1,000 of account value
applied is shown in Settlement Option Table I.
OPTION II. LIFE INCOME WITH PAYOUTS FOR A DESIGNATED PERIOD. Payouts will
be made in annual, semi-annual, quarterly or monthly installments per year
throughout the payee's lifetime, or if longer, for a period of 5, 10, 15 or
20 years as elected. The installment dollar amounts will be equal except
for any excess interest as described below. The amount of the first monthly
payout for each $1,000 of account value applied is shown in Settlement
Option Table II. This option is available only for ages shown in the table.
Payouts for Payout Option II will be determined by using the 1983
Individual Annuity Mortality Table for the appropriate gender at 3 1/2%
interest.
OPTION III. HOLD AT INTEREST. Amounts may be left on deposit with us to be
paid upon the death of the payee or at any earlier date elected. Interest
on any unpaid balance will be at the rate declared by us or at any higher
rate required by law. Interest may be accumulated or paid in 1, 2, 4, or 12
installments per year, as elected. Money may not be left on deposit for
more than 30 years.
Form 2505 (VUL)-3/00
Page 25
OPTION IV. PAYOUTS OF A DESIGNATED AMOUNT. Payouts will be made until
proceeds, together with interest which will be at the rate declared by us
or at any higher rate required by law, are exhausted. Payouts will be made
in annual, semi-annual, quarterly or monthly equal installments per year,
as elected.
OPTION V. OTHER. Settlement may be made in any other manner as agreed upon
in writing between you (or the beneficiary) and us.
CHANGE AND WITHDRAWAL
You may change an election at any time before the death of the insured. If you
have given the beneficiary the right to make changes or withdrawals, or if the
beneficiary has elected the option, the beneficiary (as primary payee) may take
the actions below.
a) Changes may be made from Payout Options I, III, and IV to another
option.
b) Full withdrawals may be made under Payout Option III or IV. Partial
withdrawals of not less than $300 may be made under Payout Option
III.
c) Remaining installments under Payout Option I may be commuted at 3
1/2% interest and received in one sum.
d) Changes in any contingent payee designation may be made.
A written request must be sent to our Customer Service Center in writing to make
a change or withdrawal. We also may require that you send in the supplementary
policy. We may defer payment of commuted and withdrawable amounts for a period
up to 6 months.
EXCESS INTEREST
If we declare that Payout Options are to be credited with an interest rate above
that guaranteed, it will apply to Payout Options I, II, III, and IV. The
crediting of excess interest for one period does not guarantee the higher rate
for other periods. Any declared interest rate will be in effect for at least 12
months.
MINIMUM AMOUNTS
The minimum amount which may be applied under any option is $2,000. If the
payments to the payee are ever less than $20, we may change the frequency of
payments so as to result in payments of at least that amount.
SUPPLEMENTARY POLICY
When a payout option becomes effective, the policy will be surrendered in
exchange for a supplementary policy. It will provide for the manner of
settlement and rights of the payees. The supplementary policy's effective date
will be the date of death or the date of other settlement. The first payment
under Options I, II, and IV will be payable as of the effective date. The first
interest payment under Option III will be made as of the end of the interest
payment period elected. Subsequent payments will be made in accordance with the
frequency of payment elected. The supplementary policy may not be assigned or
payments made to another without our consent.
Form 2505 (VUL)-3/00
Page 26
INCOME PROTECTION
Unless otherwise provided in the election, a payee does not have the right to
commute, transfer or encumber amounts held or installments to become payable. To
the extent provided by law, the proceeds, amount retained, and installments are
not subject to any payee's debts, policies, or engagements.
DEATH OF PRIMARY PAYEE
Upon the primary payee's death, any payments certain under Option I or II,
interest payments under Option III, or payments under Option IV will be
continued to the contingent payee; or, amounts may be released in one sum if
permitted by the policy. The final payee will be the estate of the last to die
of the primary payee and any contingent payee.
PAYMENTS OTHER THAN MONTHLY
The tables that follow show monthly installments for Options I and II. To arrive
at annual, semiannual, or quarterly payments, multiply the appropriate figures
by 11.813, 5.957 or 2.991 respectively. Factors for other periods certain or for
other options that may be provided by mutual agreement will be provided upon
reasonable request.
Form 2505 (VUL)-3/00
Page 27
SETTLEMENT OPTION TABLES
SETTLEMENT OPTION TABLE I
(Per $1,000 of Net Proceeds)
- ---------------------- ---------------- ------------------- -----------------
No. of Monthly No. of Monthly
Years Payable Installments Years Payable Installments
- ---------------------- ---------------- ------------------- -----------------
1 $84.65 16 6.76
- ---------------------- ---------------- ------------------- -----------------
2 43.05 17 6.47
- ---------------------- ---------------- ------------------- -----------------
3 29.19 18 6.20
- ---------------------- ---------------- ------------------- -----------------
4 22.27 19 5.97
- ---------------------- ---------------- ------------------- -----------------
5 18.12 20 5.75
- ---------------------- ---------------- ------------------- -----------------
- ---------------------- ---------------- ------------------- -----------------
6 15.35 21 5.56
- ---------------------- ---------------- ------------------- -----------------
7 13.38 22 5.39
- ---------------------- ---------------- ------------------- -----------------
8 11.90 23 5.24
- ---------------------- ---------------- ------------------- -----------------
9 10.75 24 5.09
- ---------------------- ---------------- ------------------- -----------------
10 9.83 25 4.96
- ---------------------- ---------------- ------------------- -----------------
- ---------------------- ---------------- ------------------- -----------------
11 9.09 26 4.84
- ---------------------- ---------------- ------------------- -----------------
12 8.46 27 4.73
- ---------------------- ---------------- ------------------- -----------------
13 7.94 28 4.63
- ---------------------- ---------------- ------------------- -----------------
14 7.49 29 4.53
- ---------------------- ---------------- ------------------- -----------------
15 7.10 30 4.45
- ---------------------- ---------------- ------------------- -----------------
Form 2505 (VUL)-3/00
Page 28
SETTLEMENT OPTION TABLE II
FEMALE
( Per $1,000 of Net Proceeds)
- ------------------------------------------------------------------------------------------------------------------------------------
Age of Payee Nearest Monthly Age of Payee Nearest Monthly
Birth date When First Installment Birth date When First Installments
Installment is Payable Installment is Payable
- ------------------------------------------------------------------------------------------------------------------------------------
5 Years 10 Years 15 Years 20 Years 5 Years 10 Years 15 Years 20 Years
Female Certain Certain Certain Certain Female Certain Certain Certain Certain
- ---------------------- ------- -------- -------- -------- ---------------------- ----------- -------------- ------------- ----------
15 3.19 3.19 3.19 3.19 41 3.76 3.76 3.75 3.73
- ---------------------- ------- -------- -------- -------- ---------------------- ----------- -------------- ------------- ----------
16 3.20 3.20 3.20 3.20 42 3.80 3.80 3.78 3.77
- ---------------------- ------- -------- -------- -------- ---------------------- ----------- -------------- ------------- ----------
17 3.22 3.22 3.21 3.21 43 3.84 3.84 3.82 3.81
- ---------------------- ------- -------- -------- -------- ---------------------- ----------- -------------- ------------- ----------
18 3.23 3.23 3.23 3.23 44 3.88 3.88 3.86 3.84
- ---------------------- ------- -------- -------- -------- ---------------------- ----------- -------------- ------------- ----------
19 3.24 3.24 3.24 3.24 45 3.93 3.92 3.91 3.88
- ---------------------- ------- -------- -------- -------- ---------------------- ----------- -------------- ------------- ----------
20 3.26 3.26 3.26 3.25 46 3.98 3.97 3.95 3.92
- ---------------------- ------- -------- -------- -------- ---------------------- ----------- -------------- ------------- ----------
21 3.27 3.27 3.27 3.27 47 4.03 4.02 4.00 3.97
- ---------------------- ------- -------- -------- -------- ---------------------- ----------- -------------- ------------- ----------
22 3.29 3.29 3.29 3.28 48 4.08 4.07 4.05 4.01
- ---------------------- ------- -------- -------- -------- ---------------------- ----------- -------------- ------------- ----------
23 3.31 3.30 3.30 3.30 49 4.13 4.12 4.10 4.06
- ---------------------- ------- -------- -------- -------- ---------------------- ----------- -------------- ------------- ----------
24 3.32 3.32 3.32 3.32 50 4.19 4.18 4.15 4.11
- ---------------------- ------- -------- -------- -------- ---------------------- ----------- -------------- ------------- ----------
25 3.34 3.34 3.34 3.33 51 4.25 4.24 4.21 4.16
- ---------------------- ------- -------- -------- -------- ---------------------- ----------- -------------- ------------- ----------
26 3.36 3.36 3.35 3.35 52 4.32 4.30 4.26 4.21
- ---------------------- ------- -------- -------- -------- ---------------------- ----------- -------------- ------------- ----------
27 3.38 3.38 3.37 3.37 53 4.38 4.36 4.33 4.27
- ---------------------- ------- -------- -------- -------- ---------------------- ----------- -------------- ------------- ----------
28 3.40 3.40 3.39 3.39 54 4.46 4.43 4.39 4.32
- ---------------------- ------- -------- -------- -------- ---------------------- ----------- -------------- ------------- ----------
29 3.42 3.42 3.41 3.41 55 4.53 4.51 4.46 4.38
- ---------------------- ------- -------- -------- -------- ---------------------- ----------- -------------- ------------- ----------
30 3.44 3.44 3.43 3.43 56 4.61 4.58 4.53 4.44
- ---------------------- ------- -------- -------- -------- ---------------------- ----------- -------------- ------------- ----------
31 3.46 3.46 3.46 3.45 57 4.70 4.66 4.60 4.51
- ---------------------- ------- -------- -------- -------- ---------------------- ----------- -------------- ------------- ----------
32 3.49 3.48 3.48 3.48 58 4.79 4.75 4.68 4.57
- ---------------------- ------- -------- -------- -------- ---------------------- ----------- -------------- ------------- ----------
33 3.51 3.51 3.51 3.50 59 4.88 4.84 4.76 4.64
- ---------------------- ------- -------- -------- -------- ---------------------- ----------- -------------- ------------- ----------
34 3.54 3.54 3.53 3.52 60 4.99 4.93 4.84 4.70
- ---------------------- ------- -------- -------- -------- ---------------------- ----------- -------------- ------------- ----------
35 3.57 3.56 3.56 3.55 61 5.09 5.03 4.93 4.77
- ---------------------- ------- -------- -------- -------- ---------------------- ----------- -------------- ------------- ----------
36 3.60 3.59 3.59 3.58 62 5.21 5.14 5.02 4.84
- ---------------------- ------- -------- -------- -------- ---------------------- ----------- -------------- ------------- ----------
37 3.63 3.62 3.62 3.61 63 5.33 5.25 5.12 4.91
- ---------------------- ------- -------- -------- -------- ---------------------- ----------- -------------- ------------- ----------
38 3.66 3.65 3.65 3.64 64 5.46 5.37 5.21 4.98
- ---------------------- ------- -------- -------- -------- ---------------------- ----------- -------------- ------------- ----------
39 3.69 3.69 3.68 3.67 65 5.60 5.50 5.31 5.05
- ---------------------- ------- -------- -------- -------- ---------------------- ----------- -------------- ------------- ----------
40 3.73 3.72 3.71 3.70 66 5.75 5.63 5.42 5.12
- ---------------------- ------- -------- -------- -------- ---------------------- ----------- -------------- ------------- ----------
Form 2505 (VUL)-3/00
Page 29
SETTLEMENT OPTION TABLE II/FEMALE
(Continued)
( Per $1,000 of Net Proceeds)
- ------------------------------------------------------------------------------------------------------------------------------------
Age of Payee Nearest Monthly Age of Payee Nearest Monthly
Birth date When First Installment Birth date When First Installments
Installment is Payable Installment is Payable
- ------------------------------------------------------------------------------------------------------------------------------------
5 Years 10 Years 15 Years 20 Years 5 Years 10 Years 15 Years 20 Years
Female Certain Certain Certain Certain Female Certain Certain Certain Certain
- ---------------------- ------- -------- -------- --------- ---------------------- ----------- -------------- ---------- -----------
67 5.91 5.77 5.53 5.19 92 14.45 9.61 7.09 5.75
- ---------------------- ------- -------- -------- --------- ---------------------- ----------- ------------- ----------- ------------
68 6.08 5.91 5.63 5.25 93 14.81 9.66 7.10 5.75
- ---------------------- ------- -------- -------- --------- ---------------------- ----------- ------------- ----------- ------------
69 6.26 6.07 5.74 5.32 94 15.16 9.70 7.10 5.75
- ---------------------- ------- -------- -------- --------- ---------------------- ----------- ------------- ----------- ------------
70 6.46 6.23 5.86 5.37 95 15.49 9.73 7.10 5.75
- ---------------------- ------- -------- -------- --------- ---------------------- ----------- ------------- ----------- ------------
71 6.67 6.40 5.97 5.43 96 15.80 9.76 7.10
- ---------------------- ------- -------- -------- --------- ---------------------- ----------- ------------- ----------- ------------
72 6.89 6.58 6.08 5.48 97 16.11 9.79 7.10
- ---------------------- ------- -------- -------- --------- ---------------------- ----------- ------------- ----------- ------------
73 7.13 6.76 6.18 5.52 98 16.40 9.80 7.10
- ---------------------- ------- -------- -------- --------- ---------------------- ----------- ------------- ----------- ------------
74 7.39 6.95 6.29 5.57 99 16.68 9.82 7.10
- ---------------------- ------- -------- -------- --------- ---------------------- ----------- ------------- ----------- ------------
75 7.67 7.14 6.39 5.60 100 16.95 9.82 7.10
- ---------------------- ------- -------- -------- --------- ---------------------- ----------- ------------- ----------- ------------
76 7.96 7.34 6.48 5.63 101 17.20 9.83
- ---------------------- ------- -------- -------- --------- ---------------------- ----------- ------------- ----------- ------------
77 8.28 7.54 6.57 5.66 102 17.43 9.83
- ---------------------- ------- -------- -------- --------- ---------------------- ----------- ------------- ----------- ------------
78 8.61 7.74 6.65 5.68 103 17.62 9.83
- ---------------------- ------- -------- -------- --------- ---------------------- ----------- ------------- ----------- ------------
79 8.97 7.94 6.72 5.70 104 17.78 9.83
- ---------------------- ------- -------- -------- --------- ---------------------- ----------- ------------- ----------- ------------
80 9.34 8.13 6.79 5.71 105 17.91 9.83
- ---------------------- ------- -------- -------- --------- ---------------------- ----------- ------------- ----------- ------------
81 9.73 8.32 6.84 5.72 106 18.00
- ---------------------- ------- -------- -------- --------- ---------------------- ----------- ------------- ----------- ------------
82 10.14 8.50 6.89 5.73 107 18.06
- ---------------------- ------- -------- -------- --------- ---------------------- ----------- ------------- ----------- ------------
83 10.57 8.67 6.94 5.74 108 18.09
- ---------------------- ------- -------- -------- --------- ---------------------- ----------- ------------- ----------- ------------
84 11.01 8.83 6.97 5.74 109 18.11
- ---------------------- ------- -------- -------- --------- ---------------------- ----------- ------------- ----------- ------------
85 11.46 8.97 7.00 5.75 110 18.11
- ---------------------- ------- -------- -------- --------- ---------------------- ----------- ------------- ----------- ------------
86 11.91 9.10 7.02 5.75
- ---------------------- ------- -------- -------- --------- ---------------------- ----------- ------------- ----------- ------------
87 12.36 9.22 7.04 5.75
- ---------------------- ------- -------- -------- --------- ---------------------- ----------- ------------- ----------- ------------
88 12.81 9.32 7.06 5.75
- ---------------------- ------- -------- -------- --------- ---------------------- ----------- ------------- ----------- ------------
89 13.25 9.41 7.07 5.75
- ---------------------- ------- -------- -------- --------- ---------------------- ----------- ------------- ----------- ------------
90 13.67 9.48 7.08 5.75
- ---------------------- ------- -------- -------- --------- ---------------------- ----------- ------------- ----------- ------------
91 14.07 9.55 7.09 5.75
- ---------------------- ------- -------- -------- --------- ---------------------- ----------- ------------- ----------- ------------
Form 2505 (VUL)-3/00
Page 30
SETTLEMENT OPTION TABLE II
MALE
( Per $1,000 of Net Proceeds)
- ------------------------------------------------------------------------------------------------------------------------------------
Age of Payee Nearest Monthly Age of Payee Nearest Monthly
Birth date When First Installment Birth date When First Installments
Installment is Payable Installment is Payable
- ------------------------------------------------------------------------------------------------------------------------------------
5 Years 10 Years 15 Years 20 Years 5 Years 10 Years 15 Years 20 Years
Male Certain Certain Certain Certain Male Certain Certain Certain Certain
- ---------------------- ------- -------- -------- -------- ---------------------- ----------- -------------- ---------- -------------
15 3.28 3.28 3.27 3.27 41 4.01 4.00 3.97 3.94
- ---------------------- ------- -------- -------- -------- ---------------------- ----------- -------------- ---------- -------------
16 3.29 3.29 3.29 3.28 42 4.06 4.04 4.01 3.98
- ---------------------- ------- -------- -------- -------- ---------------------- ----------- -------------- ---------- -------------
17 3.31 3.31 3.30 3.30 43 4.11 4.09 4.06 4.02
- ---------------------- ------- -------- -------- -------- ---------------------- ----------- -------------- ---------- -------------
18 3.32 3.32 3.32 3.32 44 4.16 4.14 4.11 4.06
- ---------------------- ------- -------- -------- -------- ---------------------- ----------- -------------- ---------- -------------
19 3.34 3.34 3.34 3.33 45 4.22 4.20 4.16 4.11
- ---------------------- ------- -------- -------- -------- ---------------------- ----------- -------------- ---------- -------------
20 3.36 3.36 3.35 3.35 46 4.28 4.25 4.21 4.16
- ---------------------- ------- -------- -------- -------- ---------------------- ----------- -------------- ---------- -------------
21 3.38 3.38 3.37 3.37 47 4.34 4.31 4.27 4.21
- ---------------------- ------- -------- -------- -------- ---------------------- ----------- -------------- ---------- -------------
22 3.40 3.40 3.39 3.39 48 4.41 4.38 4.33 4.26
- ---------------------- ------- -------- -------- -------- ---------------------- ----------- -------------- ---------- -------------
23 3.42 3.42 3.41 3.41 49 4.48 4.44 4.39 4.31
- ---------------------- ------- -------- -------- -------- ---------------------- ----------- -------------- ---------- -------------
24 3.44 3.44 3.43 3.43 50 4.55 4.51 4.45 4.36
- ---------------------- ------- -------- -------- -------- ---------------------- ----------- -------------- ---------- -------------
25 3.46 3.46 3.45 3.45 51 4.62 4.58 4.52 4.42
- ---------------------- ------- -------- -------- -------- ---------------------- ----------- -------------- ---------- -------------
26 3.49 3.48 3.48 3.47 52 4.70 4.66 4.58 4.48
- ---------------------- ------- -------- -------- -------- ---------------------- ----------- -------------- ---------- -------------
27 3.51 3.51 3.50 3.49 53 4.79 4.74 4.65 4.54
- ---------------------- ------- -------- -------- -------- ---------------------- ----------- -------------- ---------- -------------
28 3.54 3.53 3.53 3.52 54 4.88 4.82 4.73 4.60
- ---------------------- ------- -------- -------- -------- ---------------------- ----------- -------------- ---------- -------------
29 3.56 3.56 3.55 3.54 55 4.97 4.91 4.80 4.66
- ---------------------- ------- -------- -------- -------- ---------------------- ----------- -------------- ---------- -------------
30 3.59 3.59 3.58 3.57 56 5.07 5.00 4.88 4.72
- ---------------------- ------- -------- -------- -------- ---------------------- ----------- -------------- ---------- -------------
31 3.62 3.62 3.61 3.60 57 5.17 5.10 4.97 4.78
- ---------------------- ------- -------- -------- -------- ---------------------- ----------- -------------- ---------- -------------
32 3.65 3.65 3.64 3.62 58 5.29 5.20 5.05 4.85
- ---------------------- ------- -------- -------- -------- ---------------------- ----------- -------------- ---------- -------------
33 3.68 3.68 3.67 3.65 59 5.41 5.31 5.14 4.91
- ---------------------- ------- -------- -------- -------- ---------------------- ----------- -------------- ---------- -------------
34 3.72 3.71 3.70 3.68 60 5.53 5.42 5.23 4.97
- ---------------------- ------- -------- -------- -------- ---------------------- ----------- -------------- ---------- -------------
35 3.75 3.75 3.73 3.72 61 5.67 5.54 5.33 5.04
- ---------------------- ------- -------- -------- -------- ---------------------- ----------- -------------- ---------- -------------
36 3.79 3.78 3.77 3.75 62 5.81 5.67 5.42 5.10
- ---------------------- ------- -------- -------- -------- ---------------------- ----------- -------------- ---------- -------------
37 3.83 3.82 3.81 3.78 63 5.97 5.80 5.52 5.16
- ---------------------- ------- -------- -------- -------- ---------------------- ----------- -------------- ---------- -------------
38 3.87 3.86 3.85 3.82 64 6.13 5.94 5.62 5.22
- ---------------------- ------- -------- -------- -------- ---------------------- ----------- -------------- ---------- -------------
39 3.92 3.90 3.89 3.86 65 6.31 6.08 5.72 5.28
- ---------------------- ------- -------- -------- -------- ---------------------- ----------- -------------- ---------- -------------
40 3.96 3.95 3.93 3.90
- ---------------------- ------- -------- -------- -------- ---------------------- ----------- -------------- ---------- -------------
Form 2505 (VUL)-3/00
Page 31
SETTLEMENT OPTION TABLE II/MALE
(Continued)
(Per $1,000 of Net Proceeds)
- ------------------------------------------------------------------------------------------------------------------------------------
Age of Payee Nearest Monthly Age of Payee Nearest Monthly
Birth date When First Installment Birth date When First Installments
Installment is Payable Installment is Payable
- ------------------------------------------------------------------------------------------------------------------------------------
5 Years 10 Years 15 Years 20 Years 5 Years 10 Years 15 Years 20 Years
Male Certain Certain Certain Certain Male Certain Certain Certain Certain
- ---------------------- ------- -------- -------- --------- ---------------------- ----------- ----------- ----------- -------------
66 6.49 6.23 5.82 5.33 91 14.64 9.64 7.09 5.75
- ---------------------- ------- -------- -------- --------- ---------------------- ----------- ----------- ----------- -------------
67 6.69 6.38 5.92 5.38 92 15.00 9.68 7.10 5.75
- ---------------------- ------- -------- -------- --------- ---------------------- ----------- ----------- ----------- -------------
68 6.90 6.54 6.02 5.43 93 15.34 9.72 7.10 5.75
- ---------------------- ------- -------- -------- --------- ---------------------- ----------- ----------- ----------- -------------
69 7.12 6.71 6.12 5.48 94 15.68 9.75 7.10 5.75
- ---------------------- ------- -------- -------- --------- ---------------------- ----------- ----------- ----------- -------------
70 7.35 6.87 6.21 5.52 95 16.00 9.78 7.10 5.75
- ---------------------- ------- -------- -------- --------- ---------------------- ----------- ----------- ----------- -------------
71 7.60 7.05 6.30 5.55 96 16.30 9.80 7.10
- ---------------------- ------- -------- -------- --------- ---------------------- ----------- ----------- ----------- -------------
72 7.86 7.22 6.39 5.59 97 16.59 9.81 7.10
- ---------------------- ------- -------- -------- --------- ---------------------- ----------- ----------- ----------- -------------
73 8.13 7.40 6.47 5.62 98 16.86 9.82 7.10
- ---------------------- ------- -------- -------- --------- ---------------------- ----------- ----------- ----------- -------------
74 8.42 7.57 6.55 5.64 99 17.11 9.83 7.10
- ---------------------- ------- -------- -------- --------- ---------------------- ----------- ----------- ----------- -------------
75 8.72 7.75 6.62 5.66 100 17.33 9.83 7.10
- ---------------------- ------- -------- -------- --------- ---------------------- ----------- ----------- ----------- -------------
76 9.04 7.92 6.69 5.68 101 17.53 9.83
- ---------------------- ------- -------- -------- --------- ---------------------- ----------- ----------- ----------- -------------
77 9.37 8.09 6.75 5.70 102 17.69 9.83
- ---------------------- ------- -------- -------- --------- ---------------------- ----------- ----------- ----------- -------------
78 9.72 8.26 6.81 5.71 103 17.82 9.83
- ---------------------- ------- -------- -------- --------- ---------------------- ----------- ----------- ----------- -------------
79 10.08 8.42 6.86 5.72 104 17.92 9.83
- ---------------------- ------- -------- -------- --------- ---------------------- ----------- ----------- ----------- -------------
80 10.44 8.57 6.90 5.73 105 18.00 9.83
- ---------------------- ------- -------- -------- --------- ---------------------- ----------- ----------- ----------- -------------
81 10.82 8.71 6.94 5.74 106 18.05
- ---------------------- ------- -------- -------- --------- ---------------------- ----------- ----------- ----------- -------------
82 11.21 8.85 6.97 5.74 107 18.08
- ---------------------- ------- -------- -------- --------- ---------------------- ----------- ----------- ----------- -------------
83 11.59 8.97 7.00 5.75 108 18.10
- ---------------------- ------- -------- -------- --------- ---------------------- ----------- ----------- ----------- -------------
84 11.99 9.09 7.02 5.75 109 18.11
- ---------------------- ------- -------- -------- --------- ---------------------- ----------- ----------- ----------- -------------
85 12.38 9.20 7.04 5.75 110 18.11
- ---------------------- ------- -------- -------- --------- ---------------------- ----------- ----------- ----------- -------------
86 12.76 9.29 7.05 5.75
- ---------------------- ------- -------- -------- --------- ---------------------- ----------- ----------- ----------- -------------
87 13.15 9.38 7.07 5.75
- ---------------------- ------- -------- -------- --------- ---------------------- ----------- ----------- ----------- -------------
88 13.53 9.46 7.08 5.75
- ---------------------- ------- -------- -------- --------- ---------------------- ----------- ----------- ----------- -------------
89 13.91 9.53 7.08 5.75
- ---------------------- ------- -------- -------- --------- ---------------------- ----------- ----------- ----------- -------------
90 14.28 9.59 7.09 5.75
- ---------------------- ------- -------- -------- --------- ---------------------- ----------- ----------- ----------- -------------
Form 2505 (VUL)-3/00
Page 32
THIS POLICY IS A FLEXIBLE PREMIUM VARIABLE UNIVERSAL LIFE INSURANCE POLICY
THIS IS A NON-PARTICIPATING POLICY
DEATH BENEFITS AND OTHER VALUES PROVIDED BY THIS CONTRACT, WHEN BASED ON THE
INVESTMENT EXPERIENCE OF A SEPARATE ACCOUNT, ARE VARIABLE. THESE VALUES MAY
INCREASE OR DECREASE BASED ON INVESTMENT EXPERIENCE AND ARE NOT GUARANTEED AS TO
FIXED DOLLAR AMOUNT. DEATH BENEFITS ARE PAYABLE BY US UPON THE DEATH OF THE
INSURED. THERE IS NO MATURITY DATE. FLEXIBLE PREMIUMS ARE PAYABLE BY YOU DURING
THE LIFETIME OF THE INSURED UNTIL THE POLICY ANNIVERSARY NEAREST THE INSURED'S
100TH BIRTH DATE.
TO OBTAIN INFORMATION OR MAKE A COMPLAINT, CONTACT
SECURITY LIFE OF DENVER INSURANCE COMPANY AT:
Customer Service Center
P. O. Box 173888
Denver, Colorado 80217
Toll Free Number: 1(800)848-6362
SECURITY LIFE OF DENVER INSURANCE COMPANY
A Stock Company
Form 2505 (VUL)-3/00