POLICY NUMBER:
16,000,001
[LOGO OF PARAGON LIFE INSURANCE COMPANY APPEARS HERE]
INSUREDS:
John Doe
Jane Doe
JOINT AND LAST SURVIVOR
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
Non-Participating
Flexible Premiums are payable while this policy is in force and continue until
the younger Insured reaches Attained Age 100. If both Insureds die while this
policy is in force, we will pay the policy proceeds to the beneficiary upon the
Last Insured's death. We must receive proof of both Insureds' deaths. The policy
must also be surrendered to us after the Last Insured's death occurs. Any
payment will be subject to all of the provisions and conditions on this and the
following pages of this policy.
THE AMOUNT OF THE DEATH BENEFIT OR THE DURATION OF THE DEATH BENEFIT MAY
INCREASE OR DECREASE UNDER THE CONDITIONS DESCRIBED ON PAGES 4.01 AND 4.02.
THE POLICY'S CASH VALUE IN EACH INVESTMENT DIVISION OF THE SEPARATE ACCOUNT
IS BASED ON THE INVESTMENT EXPERIENCE OF THAT INVESTMENT DIVISION AND MAY
INCREASE OR DECREASE DAILY. IT IS NOT GUARANTEED AS TO DOLLAR AMOUNT. SEE
THE SEPARATE ACCOUNT PROVISION.
THE POLICY'S CASH VALUE IN THE GENERAL ACCOUNT WILL BE CREDITED WITH INTEREST AT
A MINIMUM GUARANTEED RATE AS SHOWN ON THE POLICY SPECIFICATIONS PAGE. WE MAY
CREDIT ADDITIONAL INTEREST IN EXCESS OF THE GUARANTEED RATE.
SEE THE GENERAL ACCOUNT CASH VALUE PROVISION.
RIGHT TO EXAMINE POLICY
Please read this policy. You may return this policy to us or to the agent
through whom it was purchased within 20 days from the date you receive it or
within 46 days after the application is signed, whichever period ends later. If
you return it within this period, the policy will be void from the beginning. We
will refund any premium paid.
This policy is a legal contract between the policyowner and Paragon Life
Insurance Company. PLEASE READ YOUR CONTRACT CAREFULLY. This cover sheet
provides only a brief outline of some of the important features of your policy.
This cover sheet is not the complete insurance contract and only the actual
policy provisions will control. The policy itself sets forth, in detail, the
rights and obligations of both you and your insurance company. It is, therefore,
important that you read your policy.
Executed on the Issue Date by Paragon Life Insurance Company. (1-877-334-8975)
/s/ Matthew P. McCauley /s/ Carl H. Anderson
V.P., GENERAL COUNSEL PRESIDENT
AND SECRETARY
ALPHABETIC GUIDE TO YOUR CONTRACT
Page
3.07 Addition, Deletion or Substitution of Investments
4.04 Allocation of Net Premiums
3.04 Assignments
6.07 Basis of Computation
3.02 Beneficiary
6.05 Cash Surrender Value
6.02 Cash Values
4.02 Change in Contract Type
3.05 Change of Insured
3.04 Change of Owner or Beneficiary
3.05 Claims of Creditors
3.04 Conformity with Statutes
4.01 Death Benefit
3.01 Definitions
4.02 Face Amount Decreases
6.02 General Account Cash Value
6.03 General Account Interest Rate
4.04 Grace Period
3.05 Incontestability
7.01 Interest on Proceeds
3.01 Issue Date
6.04 Loan Account Cash Value
6.01 Loans
3.05 Misstatement of Age or Sex and Corrections
6.04 Monthly Cost of Insurance
6.05 Monthly Deduction
6.05 Monthly Policy Charge
6.03 Net Investment Factor
4.03 Net Premium
3.02 Owner
6.05 Partial Withdrawals
7.01 Payment of Policy Benefits
4.03 Payment of Premiums
4.02 Policy Changes
4.01 Policy Proceeds
6.07 Postponement of Payments or Transfers
4.05 Reinstatement
3.04 Requests for Changes and/or Information
6.03 Separate Account Cash Value
3.06 Separate Account Provisions
3.04 Statements in Application
3.05 Suicide Exclusion
6.05 Surrender
3.06 Transfers
Additional Benefit Riders, Modifications and Amendments, if any, and a Copy of
the Application are found following the final section.
1. POLICY SPECIFICATIONS
GENERAL POLICY SPECIFICATIONS
POLICY NUMBER [16,000,001]
ISSUE DATE [JANUARY 1, 19991
FACE AMOUNT [$100,000]
CONTRACT TYPE [OPTION A]
INITIAL PREMIUM PAID [$974.37]
PLANNED ANNUAL PREMIUM [$974.37]
MINIMUM INITIAL ANNUAL PREMIUM AMOUNT [$974.37]
NO LAPSE ANNUAL PREMIUM [$199.20]
NO LAPSE PREMIUM DATE [JANUARY 1, 2004]
PREMIUM TAX CHARGE [2.25%]
FEDERAL TAX CHARGE [1.3%]
SEPARATE ACCOUNT [SEPARATE ACCOUNT D]
[INSURED] [AGE] SEX RISK CLASSIFICATION
[JOHN DOE] [35] [MALE] [STANDARD SMOKER]
[JOHN DOE] [35] [FEMALE] [STANDARD SMOKER]
BENEFITS - AS SPECIFIED IN POLICY
AND IN ANY RIDER
POLICY PLAN: JOIN AND LAST SURVIVOR
FLEXIBLE PREMIUM VARIABLE
LIFE INSURANCE
FORM
NUMBERS
30042
30187
30188
30189
30324
30421
30624
30714
3083200 Anniversary partial Withdrawal Rider
3083300 Divorce Split Policy Option Rider
3083400 Split Policy Option Rider
3083500 Estate Preservation Term Rider
3083600 Lifetime Coverage Rider
3083700 Secondary Guarantee Rider
2. POLICY SPECIFICATIONS
GENERAL ACCOUNT CASH VALUE
GUARANTEED INTEREST RATE [4%]
GENERAL ACCOUNT MAXIMUM
ALLOCATION PERCENT [100%]
GENERAL ACCOUNT MAXIMUM
WITHDRAWAL PERCENT LIMIT [25%]
MAXIMUM MONTHLY COST OF
INSURANCE FACTOR [1.00327371
MAXIMUM DAILY MORTALITY AND
EXPENSE RISK PERCENTAGE:
YEARS 1--10 [0.0015027%]
YEARS 11--20 [0.0012301%]
YEARS 21+ [0.0009572%]
MAXIMUM ANNUAL MORTALITY AND
EXPENSE RISK PERCENTAGE:
YEARS 1--10 [0.55%]
YEARS 11--20 [0.45%]
YEARS 21+ [0.35%]
MAXIMUM MONTHLY POLICY CHARGE:
1ST YEAR [$6.00]
YEARS 2+ [$6.00]
MAXIMUM SELECTION AND ISSUE
EXPENSE CHARGE RATE:
YEARS 1--10 [$0.0750]
YEARS 11+ [$0.00]
MINIMUM FACE AMOUNT [$100,000]
MINIMUM FACE AMOUNT DECREASE [$5,000]
MAXIMUM FEE FOR PROJECTION OF
BENEFITS AND VALUES [$25.00]
MAXIMUM TRANSFER CHARGE [$25.00]
GUARANTEED INTEREST RATE ON
PROCEEDS [4.0%]
7702 TABLE [1980 CSO MORTALITY TABLE
FOR A MALE SMOKER,
AND 1980 CSO MORTALITY TABLE
FOR A FEMALE SMOKER,
AGE NEAREST BIRTHDAY]
BASIS OF COMPUTATION [1980 CSO MORTALITY TABLE
OF MINIMUM CASH VALUES FOR A MALE SMOKER,
AND 1980 CSO MORTALITY TABLE
FOR A FEMALE SMOKER,
AGE NEAREST BIRTHDAY]
IF THE INITIAL PREMIUM PAID AND SUBSEQUENT PREMIUMS PROVE TO BE TOO LOW,
COVERAGE PROVIDED BY THIS POLICY MAY CEASE.
TABLE OF GUARANTEED MONTHLY COST OF INSURANCE RATES
RATES PER $1,000
COVERAGE: JSFPVL INSUREDS: JOHN DOE
POLICY NUMBER: 16,000,001 JANE DOE
ISSUE DATE: JANUARY 1, 1999
POLICY YEAR RATE POLICY YEAR RATE
1 0.0004 34 1.3496
2 0.0014 35 1.5297
3 0.0026 36 1.7297
4 0.0041 37 1.9667
5 0.0060 38 2.2489
6 0.0084 39 2.5843
7 0.0115 40 2.9729
8 0.0152 41 3.4152
9 0.0197 42 3.8996
10 0.0250 43 4.4178
11 0.0314 44 4.9642
12 0.0388 45 5.5496
13 0.0475 46 6.1927
14 0.0576 47 6.9094
15 0.0695 48 7.7173
16 0.0835 49 8.6242
17 0.0999 50 9.6549
18 0.1193 51 10.7020
19 0.1426 52 11.8476
20 0.1699 53 12.9635
21 0.2012 54 14.2024
22 0.2369 55 15.3930
23 0.2763 56 16.7123
24 0.3198 57 18.1014
25 0.3680 58 19.6024
26 0.4228 59 21.3279
27 0.4878 60 23.4464
28 0.5645 61 26.5417
29 0.6588 62 31.3755
30 0.7685 63 39.6130
31 0.8955 64 54.6636
32 1.0346 65 83.3333
33 1.1884 66+ 0.0000
THESE RATES ARE FOR THE BASE POLICY AT ISSUE. THEY ARE BASED ON A
COMBINATION OF THE ULTIMATE 1980 COMMISSIONERS STANDARD ORDINARY MORTALITY
TABLE FOR A MALE SMOKER AND A FEMALE SMOKER.
DEATH BENEFIT OPTION C ATTAINED AGE FACTORS
COVERAGE: JSFPVL INSUREDS: JOHN DOE
POLICY NUMBER: 16,000,001 JANE DOE
ISSUE DATE: JANUARY 1, 1999
ATTAINED ATTAINED
AGE * RATE AGE* RATE
35 5.64184 68 1.73259
36 5.42508 69 1.68510
37 5.21686 70 1.64002
38 5.01683 71 1.59723
39 4.82481 72 1.55674
40 4.64044 73 1.51862
41 4.46354 74 1.48292
42 4.29389 75 1.44965
43 4.13112 76 1.41875
44 3.97514 77 1.39005
45 3.82557 78 1.36333
46 3.68227 79 1.33835
47 3.54498 80 1.31492
48 3.41344 81 1.29295
49 3.28747 82 1.27239
50 3.16694 83 1.25326
51 3.05154 84 1.23556
52 2.94120 85 1.21935
53 2.83570 86 1.20433
54 2.73495 87 1.19047
55 2.63880 88 1.17738
56 2.54704 89 1.16503
57 2.45952 90 1.15300
58 2.37604 91 1.14119
59 2.29637 92 1.12932
60 2.22033 93 1.11709
61 2.14774 94 1.10423
62 2.07858 95 1.09045
63 2.01279 96 1.07580
64 1.95040 97 1.06037
65 1.89131 98 1.04422
66 1.83546 99 1.02648
67 1.78261 100+ 1.01000
* ATTAINED AGE IS THE YOUNGER INSURED'S ATTAINED AGE EVEN IF NO LONGER
LIVING.
30189
1. DEFINITIONS IN THIS POLICY
We, Us and Our Paragon Life Insurance Company.
You and Your The owner of this policy. The owner may be someone other
than the Insureds. In the application the words "You" and
"Your" refer to the proposed Insured person(s).
Insureds The persons whose lives are insured under this policy. See
the Policy Specifications page.
Last Insured The Insured whose death succeeds the death of all other
Insureds under this policy.
Issue Age The age of each Insured as of his or her nearest birthday to
the Issue Date.
Attained Age The Issue Age for an Insured plus the number of completed
policy years, whether or not the Insured is living. This
includes any period during which this policy was lapsed.
Issue Date The effective date of the coverage under this policy which
is the Issue Date shown on the Policy Specifications page.
It is also the date from which policy anniversaries, policy
years, and policy months are measured.
Investment The date the first premium is applied to the General Account
Start Date and/or the Divisions of the Separate Account. This date will
be the later of:
. The Issue Date of the policy; or
. The date we receive the first premium at our Service
Center.
Monthly The same date in each succeeding month as the Issue Date
Anniversary except that whenever the Monthly Anniversary falls on a date
other than a Valuation Date, the Monthly Anniversary will be
deemed the next Valuation Date. If any Monthly Anniversary
would be the 29th, 30th, or 31st day of a month that does
not have that number of days, then the Monthly Anniversary
will be the last day of that month.
General Account The assets held by us, excluding any loans, other than those
allocated to the Divisions of the Separate Account.
Separate Account The Separate Account listed on the Policy Specifications
page, a separate investment account created by us to receive
and invest net premiums received for this policy or other
policies.
Loan Account The account to which we will transfer from the General
Account and the Divisions of the Separate Account the amount
of any policy loan.
Loan SubAccount A Loan SubAccount exists for the General Account and each
Division of the Separate Account. Any cash value transferred
to the Loan Account will be allocated to the appropriate
Loan SubAccount to reflect the origin of the cash value. At
any point in time, the Loan Account will equal the sum of
all the Loan SubAccounts.
Valuation Date Each day that the New York Stock Exchange is open for
trading, the Service Center is open for business and the SEC
has not restricted trading or declared an emergency.
SEC The United States Securities and Exchange Commission.
Service Center P.O. Box 66757, St. Louis, MO 63166-6757.
30324 3.01
(2/99)
2. PERSONS WITH AN INTEREST IN THE POLICY
Owner The owner of this policy is as shown in the application or
in any supplemental agreement attached to this policy,
unless later changed as provided in this policy. If there is
more than one owner at a given time, all must exercise the
rights of ownership by joint action. Ownership may be
changed in accordance with the Change of Owner or
Beneficiary provision.
You, as owner, are entitled to exercise all ownership rights
provided by this policy, while it is in force. Any person
whose rights of ownership depend upon some future event will
not possess any present rights of ownership. If the owner is
a trustee(s), we may act in reliance upon the written
request of any trustee and we are not responsible for proper
administration of the trust. Unless otherwise provided, the
final owner will be the estate of the last owner to die.
Beneficiary The beneficiary to receive the proceeds in the event of the
Last Insured's death is as shown in the application or in
any supplemental agreement attached to this policy, unless
later changed as provided in the policy. You may change the
beneficiary in accordance with the Change of Owner or
Beneficiary provision. Unless otherwise stated, the
beneficiary has no rights in this policy before the death of
the Last Insured. If there is more than one beneficiary at
the death of the Last Insured, each will receive equal
payments unless otherwise provided. Unless you provide
otherwise, if a beneficiary dies prior to the Last Insured's
death, that beneficiary's share will be paid to the living
beneficiaries of that class. The deceased beneficiary's
share will be paid in the same proportion as the living
beneficiaries' shares. If there are no beneficiaries living
when the Last Insured dies, or at the end of any Common
Disaster period, the proceeds (commuted if required) will be
payable to you, if you are living, or to your estate.
Any payment we make will terminate our liability with
respect to such payment. If the Insureds designate specific
amounts to be paid to specific beneficiaries and the total
of those amounts is other than the amount of proceeds
payable, the proceeds payable will be adjusted and paid in
the same proportion as the specific amounts were to be paid.
Any term used in the masculine, feminine, singular or
plural, will include or be the opposite gender or number
where necessary.
If any beneficiary designation in the application includes
any of the following provisions, the terms of that provision
shown below will apply:
1. Per Stirpes. The share of a deceased beneficiary
will be paid to that beneficiary's surviving
children, equally.
2. Common Disaster. We will not make payment until
the stated number of days after the Last Insured's
death. If any beneficiary dies during this period,
or if the order of death of any beneficiary and
the Last Insured cannot be determined, we will pay
as though such beneficiary died first.
3. Trust for Minor Beneficiary. The original or
successor trustee for a minor beneficiary will
serve without bond and exercise all rights and
receive all proceeds for the minor beneficiary.
Such proceeds will be held in a separate trust and
used at the trustee's discretion for such minor's
education, support, care and general welfare. The
trust will terminate at the legal age of majority
or prior death of the minor beneficiary. Any funds
then held by the trustee will be paid in one sum
to such beneficiary or the beneficiary's estate.
The trust can be revoked by a change of
beneficiary under the policy. Payment to any
trustee will discharge us to the extent of such
payment.
30324 3.02
(2/99)
4. Trust Under Will. When we receive at our Service Center:
a) Certified copies of the Last Will and Testament of the named
testator; and
b) The order admitting the Will to probate; and if such Will created a
trust capable of receiving proceeds;
then we will pay the proceeds to the trustee.
If, before we receive these documents, satisfactory proof is furnished
that:
a) the testator died intestate; or
b) the Will created no trust capable of receiving proceeds; or
c) the testator was not either Insured, but survived the Last Insured;
then we will pay the proceeds to you, unless otherwise provided.
If we pay under any of these conditions, we will be discharged to the
extent of such payment. We are not required to check into the validity,
general terms or proper administration of the trust. Such trustee
designation will not affect your rights under the policy, including the
right to change the beneficiary.
5. Trust Under Separate Written Agreement. When we receive at our Service
Center a written statement from the trustee named in the beneficiary
designation that:
a) the trust agreement is in force; and
b) the agreement permits the trustee to receive the proceeds;
then we will pay the proceeds to the trustee.
If, before we receive the trustee's statement, satisfactory proof is
furnished that:
a) the trust agreement is not in effect; or
b) the agreement does not permit the trustee to receive the proceeds;
then we will pay the proceeds to you, unless otherwise provided.
If we pay under any of these conditions, we will be discharged to the
extent of such payment. We are entitled to rely on any statements or
documents furnished to us by the trustee and are not required to check
into the validity, general terms or proper administration of the trust
agreement. Such trustee designation will not affect your rights under
the policy, including the right to change the beneficiary.
6. Irrevocable Beneficiary. You cannot change an irrevocable beneficiary
without the written consent of such beneficiary. Also, you cannot
exercise any other ownership rights without the consent of such
beneficiary, if the exercise of such rights will have the effect of
diminishing the rights and interest of the irrevocable beneficiary.
7. Creditor Beneficiary. Proceeds payable to any creditor beneficiary are
limited to its provable interest. The balance of any proceeds will be
paid to any other named beneficiary. If there is no other beneficiary
living, we will pay the proceeds to you, unless otherwise provided. You
cannot change a creditor beneficiary without the written consent of the
creditor or release of its interest. Also, you cannot exercise any other
ownership rights without the consent of such beneficiary, if the
exercise of such rights will have the effect of diminishing the rights
and interest of the creditor beneficiary.
3.03
Change of During the lifetime of either Insured you may change the
Owner or ownership and beneficiary designations, subject to any
Beneficiary restrictions as stated in the Owner or Beneficiary
provisions. You must make the change in written form
satisfactory to us. If acceptable to us the change will take
effect as of the time you signed the request, whether or not
either Insured is living when we receive your request at our
Service Center. The change will be subject to any assignment
of this policy or other legal restrictions. It will also be
subject to any payment we made or action we took before we
received your written notice of the change. We have the
right to require the policy for endorsement before we accept
the change.
If you are also the beneficiary of the policy at the time of
the Last Insured's death, you may designate some other
person to receive the proceeds of the policy within 60 days
after the Last Insured's death.
Assignments We will not be bound by an assignment of the policy or of
any interest in it unless:
1. The assignment is made as a written instrument,
2. You file the original instrument or a certified copy
with us at our Service Center, and
3. We send you an acknowledged copy.
We are not responsible for determining the validity of any
assignment.
If a claim is based on an assignment, we may require proof
of interest of the claimant.
A valid assignment will take precedence over any claim of a
beneficiary.
Requests For Submit all requests for change and/or information in writing
Changes and/or to our Service Center.
Information
3. GENERAL PROVISIONS
The Contract We have issued this policy in consideration of the
application and payment of premiums. The policy, the
application for it, and any riders constitute the entire
contract and are attached to and made a part of the policy
when the insurance applied for is accepted. A copy of any
application for reinstatement will be sent to you for
attachment to this policy and will become part of the
contract of reinstatement and of this policy. The policy may
be changed by mutual agreement. Any change must be in
writing and approved by our President, Vice-President or
Secretary. Our agents have no authority to alter or modify
any terms, conditions, or agreements of this policy, or to
waive any of its provisions.
Conformity with If any provision in this policy is in conflict with the laws
Statutes of the state which govern this policy, the provision will be
deemed to be amended to conform with such laws. In addition,
we reserve the right to change this policy if we determine
that a change is necessary to cause this policy to comply
with, or give you the benefit of, any federal or state
statute, rule, or regulation, including, but not limited to,
requirements for life insurance contracts under the Internal
Revenue Code, or its regulations or published rulings.
Statements in All statements made by the Insureds or on their behalf, or
Application by the applicant, will be deemed representations and not
warranties, except in the case of fraud. Material
misstatements will not be used to void the policy or any
rider, or deny a claim unless made in the application for a
policy or a rider.
30324 3.04
(2/99)
Claims of To the extent permitted by law, neither the policy nor any
Creditors payment under it will be subject to the claims of creditors
or to any legal process.
Conversion Rights While your policy is in force, you have a one time right
during the first two policy years to transfer all of your
cash value from the Divisions of the Separate Account to the
General Account.
If, at any time during the first two policy years, you
request in writing the transfer of the cash value held in
the Divisions of the Separate Account to the General Account
and you indicate that you are making this transfer in
exercise of your conversion rights, the transfer will not be
subject to a transfer charge or transfer limits, if any. At
the time of such transfer, there will not be any effect on
the policy's death benefit, face amount, net amount at risk,
rate class or Issue Age.
If you exercise your one time conversion right, we will
automatically allocate all future net premiums to the
General Account.
Misstatement of If there is a misstatement of age or sex for either Insured
Age or Sex and in the applications, the amount of the death benefit will be
Corrections that which would be purchased by the most recent monthly
cost of insurance charge at the correct age or sex.
If we make any payment or policy changes in good faith,
relying on our records, or evidence supplied to us, our duty
will be fully discharged. We reserve the right to correct
any errors in the policy.
Incontestability We cannot contest this policy after it has been in force
during the lifetime of either Insured for two years from its
Issue Date. We cannot contest any reinstatement of this
policy, with regard to material misstatements made
concerning such reinstatement, after it has been in force
during the lifetime of either Insured for a period of two
years from the date we approve the reinstatement. If only
one Insured was alive on the date we approved the request
for reinstatement, we can not contest any reinstatement of
this policy, with regard to material misstatements made
concerning such reinstatement, after it has been in force
during the lifetime of that Insured for a period of two
years from the date we approved the reinstatement. This
provision will not apply to any rider which contains its own
incontestability clause.
Suicide Exclusion If either Insured dies by suicide, while sane or insane,
within two years from the Issue Date (or within the maximum
period permitted by law of the state in which this policy
was delivered, if less than two years), the amount payable
will be limited to the amount of premiums paid, less any
outstanding policy loans with interest to the date of death,
and less any partial withdrawals.
Change of While this policy is in force, you may change one or both of
Insured the Insureds. To do this, you must meet the requirements
established by us. Any rider attached to this policy may be
continued only with our consent. We reserve the right to
charge a nominal fee for processing a change of Insured.
Annual Report Each year a report will be sent to you which shows the
current policy values, premiums paid and deductions made
since the last report, and any outstanding policy loans.
Projection of You may make a written request to us for a projection of
Benefits and illustrative future cash values and death benefits. If
Values requested more than once per policy year, this projection
will be furnished to you for a nominal fee. This fee will
not exceed the Maximum Fee for Projection of Benefits and
Values shown on the Policy Specifications page.
30324 3.05
(2/99)
4. SEPARATE ACCOUNT PROVISIONS
Separate Account The variable benefits under this policy are provided
through investments in the Separate Account shown on the
Policy Specifications page. This account is used for
flexible premium variable life insurance policies and, if
permitted by law, may be used for other policies or
contracts as well.
We hold the assets of the Separate Account. These assets are
held separately from the assets held in the General Account.
Income, gains and losses---whether or not realized---from
assets allocated to the Separate Account will be credited to
or charged against the account without regard to our other
income, gains or losses.
The portion of the assets held by the Separate Account equal
to the reserves and other policy liabilities with respect to
the Separate Account will not be charged with liabilities
that arise from any other business we may conduct. We have
the right to transfer to our General Account any assets of
the Separate Account which are in excess of the reserves and
other policy liabilities of the Separate Account.
The Separate Account is registered with the Securities and
Exchange Commission as a unit investment trust under the
Investment Company Act of 1940. The Separate Account is also
subject to the laws of the State of Missouri, which regulate
the operations of insurance companies incorporated in
Missouri. The investment policy of the Separate Account will
not be changed without the approval of the Insurance
Commissioner of the State of Missouri. The approval process
is on file with the Insurance Commissioner of the state in
which this policy was delivered.
Divisions The Separate Account has several Divisions. Each Division
invests in a corresponding investment portfolio from one or
more registered investment companies.
Income, gains and losses---whether or not realized---from
the assets of each Division of the Separate Account are
credited to or charged against that Division without regard
to income, gains or losses in other Divisions of the
Separate Account or in the General Account.
We will value the assets of each Division of the Separate
Account at the end of each valuation period. A valuation
period is the period between two successive Valuation Dates.
A Valuation Date is any day that benefits vary and on which
the New York Stock Exchange and our Service Center are open
for business or any other day that may be required by any
applicable Securities and Exchange Commission Rules and
Regulations.
Transfers You may transfer amounts as follows:
. Between the General Account and the Divisions of
the Separate Account; or
. Among the Divisions of the Separate Account.
. The first 12 requested transfers and/or partial
withdrawals per policy year will be allowed free
of charge; thereafter we may impose a transfer
charge not to exceed the Maximum Transfer Charge
shown on the Policy Specifications page.
These transfers will be subject to the following conditions:
. We must receive a request for transfer in a form
acceptable to us.
. Transfers from or among the Divisions of the
Separate Account must be at least $500.00 or the
entire amount you have in a Division, if smaller.
. Transfers and/or partial withdrawals from the General
Account to the Divisions of the Separate Account must be
at least $500.00. The maximum amount of all transfers and
partial withdrawals from the General Account in any
policy year will be the greater of (1) or (2):
1. The cash surrender value of the General Account
at the beginning of that policy year multiplied
by the General Account Maximum Withdrawal
Percent Limit, as shown on the Policy
Specifications page.
2. The previous year's General Account maximum
withdrawal amount.
. The General Account Cash Value immediately after any
transfer in to the General Account cannot exceed 1.,
below, multiplied by 2., below:
1. The General Account Cash Value plus the
Separate Account Cash Value.
2. The General Account Maximum Allocation Percent
as shown on the Policy Specifications page.
We may revoke or modify the transfer privilege at any
time, including the minimum amount transferable, the
General Account Maximum Allocation Percent, and the
transfer charge, if any.
Addition, Deletion We reserve the right, subject to compliance with applicable
or Substitution law, to make additions to, deletions from, or substitutions
of Investments for the shares of a fund that are held by the Separate
Account or that the Separate Account may purchase. We
reserve the right to eliminate the shares of any of the
funds of this policy and to substitute shares of another
fund of a registered investment company, if the shares or
funds are no longer available for investment or if in our
judgement, further investment in any fund should become
inappropriate in view of the purpose of the policy. We will
not substitute any shares attributable to the owner's
interest in a Division of the Separate Account without
notice to the owner and compliance with the Investment
Company Act of 1940. This will not prevent the Separate
Account from purchasing other securities for other series or
classes of policies, or from permitting conversion between
series or classes of policies or contracts on the basis of
requests made by owners.
We reserve the right to establish additional Divisions of
the Separate Account which would invest in shares of
registered investment companies and to make such Divisions
available to such class or series of policies as we deem
appropriate. We also reserve the right to eliminate or
combine existing Divisions of the Separate Account or to
transfer assets between Divisions.
If we consider it to be in the best interest of persons
having voting rights under the policies, the Separate
Account may be operated as a management company under the
Investment Company Act of 1940; it may be deregistered under
that Act in the event registration is no longer required; it
may be combined with other separate accounts; or its assets
may be transferred to other separate accounts.
5. POLICY BENEFITS
Policy Proceeds The policy proceeds are:
1. The death benefit under the Contract Type then in
effect; plus
2. The monthly cost of insurance for the portion of
the policy month from the date of the Last
Insured's death to the end of the policy month of
that death; minus
3. Any payment due under the Grace Period provision as
of the date of the Last Insured's death; minus
4. Any loan and loan interest due.
Death Benefit Prior to the younger Insured's Attained Age 100, the death
benefit depends upon the Contract Type in effect on the date
of the Last Insured's death. The Contract Type in effect is
shown on the Policy Specifications page.
Option A Contract Type: The death benefit is the greater of:
1. The face amount; or
2. The applicable percentage of the cash value on the
date of the Last Insured's death as described in
Section 7702(d) of the Internal Revenue Code of
1986 or any applicable successor provision and
modified for ages 95 and above.
Option B Contract Type: The death benefit is the greater of:
1. The face amount plus the cash value on the date of
the Last Insured's death; or
2. The applicable percentage of the cash value on the
date of the Last Insured's death as described in
Section 7702(d) of the Internal Revenue Code of
1986 or any applicable successor provision and
modified for ages 95 and above.
Option C Contract Type: The death benefit is the greater of:
1. The face amount; or
2. The cash value on the date of the Last Insured's
death multiplied by the younger Insured's
applicable Attained Age factor as shown on the
policy's Death Benefit Option C Attained Age
Factors page.
Notwithstanding anything in this policy, the death benefit
will in no case be less than the amount necessary to cause
the policy to meet the requirements for the definition of
life insurance under the Internal Revenue Code of 1986 or
any applicable successor provision.
Applicable The percentages as currently described in Section 7702(d) of
Percentage: the Internal Revenue Code of 1986 and modified for ages 95
and above are as follows:
In the case in which the younger The applicable percentage
Insured's Attained Age as of the will decrease by a
beginning of the contract year is: ratable portion for
each full year:
More than: But not more than: From: To:
0 ............... 40 250 ........... 250
40 ............... 45 250 ........... 215
45 ............... 50 215 ........... 185
50 ............... 55 185 ........... 150
55 ............... 60 150 ........... 130
60 ............... 65 130 ........... 120
65 ............... 70 120 ........... 115
70 ............... 75 115 ........... 105
75 ............... 90 105 ........... 105
90 ............... 95 105 ........... 101
95 or 101
higher
Continuation If this policy is in force beyond the younger Insured's
of the Policy Attained Age 100, the Death Benefit will be 101% of the
Beyond Attained policy's cash value.
Age 100
Please note: This policy may not qualify as life insurance
after the younger Insured's Attained Age 100 and may be
subject to tax consequences. Please consult a tax advisor
prior to continuing the policy beyond the younger Insured's
Attained Age 100. It is possible that insurance coverage may
not continue even if planned premiums are paid in a timely
manner.
Policy Changes You may request policy changes at any time unless we
specifically indicate otherwise. We limit the number of
changes to one per policy year, and we do not permit changes
in the first policy year. The types of changes allowed are
explained below.
No change will be permitted that would result in this policy
not satisfying the definition of life insurance under the
Internal Revenue Code of 1986 or any applicable successor
provision.
Face Amount The face amount may be decreased by sending us a written
Decreases request.
Any decrease in face amount will be subject to the following
conditions:
1. The decrease will become effective on the Monthly
Anniversary on or following our receipt of the
request.
2. The face amount remaining in force after any
requested decrease may not be less than the
Minimum Face Amount shown on the Policy
Specifications page.
3. Any decrease must be at least the Minimum Face
Amount Decrease as shown on the Policy
Specifications page.
We will amend your policy to show the effective date of the
decrease.
You may not increase the face amount of this policy.
Change in If the Contract Type in effect is Option A or Option B, you
Contract Type may change the Contract Type by sending us a written
request. The effective date of the change will be the
Monthly Anniversary on or following the date we receive your
request. On the effective date of this change the death
benefit payable does not change, but the face amount may
change.
If the Contract Type in effect is Option B, you may change
it to Option A. The face amount will be increased to equal
the death benefit on the effective date of change. The
Contract Type cannot be changed from Option B to Option C.
If the Contract Type in effect is Option A, you may change
it to Option B. Proof that the Insureds are insurable by our
standards on the date of the change must be submitted. The
face amount will be decreased to equal the death benefit
less the cash value on the effective date of change. This
change may not be made if it would result in a face amount
which is less than the Minimum Face Amount shown on the
Policy Specifications page. The Contract Type cannot be
changed from Option A to Option C.
If the Contract Type in effect is Option C, the Contract
Type cannot be changed.
6. PREMIUMS AND GRACE PERIOD
Payment of Your first premium is due as of the Issue Date. While either
Premiums Insured is living, premiums after the first must be paid at
our Service Center. A premium receipt will be furnished upon
request. If this policy is in your possession and you have
not paid the first premium, it is not in force. It will be
considered that you have the policy for inspection only.
Premiums may be paid in any amount and at any interval
subject to the following conditions:
1. At the end of the first policy year, your total
premium payments for this policy must be greater
than or equal to the Minimum Initial Annual
Premium Amount as shown on the Policy
Specifications page.
2. Any subsequent premium payment must be at least
$10.00.
3. Total premiums paid in any policy year for
policies issued with the Option A or B Contract
Type may not exceed an amount that would cause the
policy to fail the definition of life insurance as
defined by Section 7702 of the Internal Revenue
Code of 1986, or any applicable successor
provision thereto. The maximum premium limit for
the following policy year will be shown on your
annual report.
On any date that we receive a premium which causes the Death
Benefit under any of the Contract Types to increase by an
amount that exceeds that premium received, we reserve the
right to refuse that premium payment. We may require
additional evidence of insurability before we accept the
premium.
Net Premium The net premium is:
1. The premium paid; minus
2. The premium paid multiplied by the Premium Tax
Charge as shown on the Policy Specifications page;
minus
3. The premium paid multiplied by the Federal Tax
Charge as shown on the Policy Specifications page.
Premium Tax A charge will be deducted for premium taxes from each
Charge premium submitted. The current charge, as a percent of the
premium, is shown on the Policy Specifications page. We
reserve the right to change the Premium Tax Charge due to
rate changes of the states or other governing jurisdictions.
We will amend your policy to show the current premium tax
rate, if changed.
Federal Tax A charge will be deducted for federal taxes from each
Charge premium submitted. The current charge, as a percent of the
premium, is shown on the Policy Specifications page. We
reserve the right to change the Federal Tax Charge to
reflect a change in the federal tax law. We will amend your
policy to show the current Federal Tax Charge, if changed.
Allocation of You determine the allocation of net premiums among the
Net Premiums General Account and the Divisions of the Separate Account.
For any chosen allocation the minimum percentage that may be
allocated is 5% of the net premium. Percentages must be in
whole numbers. The General Account Cash Value immediately
after payment of the premium cannot exceed 1., below,
multiplied by 2., below:
1. The General Account Cash Value plus the Separate
Account Cash Value.
2. The General Account Maximum Allocation Percent as
shown on the Policy Specifications page.
The initial allocation is shown on the application, a copy
of which is attached. We may modify the General Account
Maximum Allocation Percent at any time.
For any premium received during the "right to examine
policy" period, we will initially allocate the net premium
to the Division that invests exclusively in shares of our
Money Market fund unless prohibited by state law. When this
period expires, cash value in that Division will be
transferred to the General Account and the Divisions of the
Separate Account according to the allocation percentages
shown on the application, a copy of which is attached. For
any premium received after the "right to examine policy"
period, the net premium will be allocated according to the
allocation percentages shown on the application page or your
most recent allocation instructions received by us.
Your Right You may change the allocation of future net premiums among
to Change the General Account and/or the Divisions of the Separate
Allocation Account subject to the conditions outlined in the Allocation
of the Net Premiums Provision. The change in allocation
percentages will take effect immediately upon our receipt of
your written request.
No-Lapse Period If, on a monthly anniversary day prior to the No Lapse
Premium Date, the sum of all premiums paid on this policy,
reduced by any partial withdrawals and any outstanding loan
balance, is greater than or equal to the sum of the No Lapse
Monthly Premiums for the elapsed months since the Issue
Date, this policy will not lapse as a result of a cash value
less any loans and loan interest due, being insufficient to
pay the monthly deduction. The No Lapse Premium Date and the
No Lapse Annual Premium are shown on the Policy
Specifications page. The No Lapse Monthly Premium is one
twelfth of the No Lapse Annual Premium.
Grace Period If, on a monthly anniversary day prior to the No Lapse
Premium Date:
1. The cash value less any loans and loan interest
due, is insufficient to cover the monthly
deduction; and
2. The sum of all premiums paid on this policy,
reduced by any partial withdrawals and any
outstanding loan balance, is less than the sum of
the No Lapse Monthly Premiums for the elapsed
months since the Issue Date;
then the grace period of 62 days will be allowed for the
payment of a premium sufficient to keep your policy in
force. The No Lapse Premium Date and the No Lapse Annual
Premium are shown on the Policy Specifications page.
A change in your policy's face amount, the addition or
deletion of a supplemental rider to this policy, or a change
in the premium class of the Insureds before the No Lapse
Premium Date shown on the Policy Specifications page may
result in a change in the No Lapse Monthly Premium. The No
Lapse Premium Date will not be changed.
---
If, on a monthly anniversary day on or after the No Lapse
Premium Date, the cash value less any loans and loan
interest due, is insufficient to cover the next monthly
deduction, a grace period of 62 days will be allowed for the
payment of a premium sufficient to pay the monthly
deduction. (Monthly deduction is defined in the Cash Values
section.)
Notice of the amount of premium required to be paid to keep
this policy in force will be sent at the beginning of the
grace period to your last known address and to any assignee
on record. If we do not receive a premium large enough so
that the net premium covers the monthly deduction by the end
of the grace period, your policy will lapse at the end of
that 62 day period and it will then terminate without cash
surrender value. If the Last Insured dies during the grace
period, any past due monthly deductions will be deducted
from the death benefit.
Reinstatement You may reinstate your lapsed policy within 5 years after
the date of lapse. This must be done prior to the younger
Insured's Attained Age 100. The policy can not be reinstated
if it has been surrendered. To reinstate, you must submit
the following items:
1. A written request for reinstatement.
2. Proof satisfactory to us that both Insureds are
insurable by our standards, if both Insureds were
alive on the date the policy lapsed. If only one
Insured was alive on the date the policy lapsed,
you must submit proof satisfactory to us that that
Insured is insurable by our standards.
3. A net premium payment large enough to cover:
a. The monthly deductions due at the time of
lapse; and
b. Two times the monthly deduction due at the time
of reinstatement.
4. A payment to cover any Loan Interest due and
unpaid at the time of lapse.
Upon receipt of the above payments, we will deduct any
monthly deductions and loan interest due and unpaid at the
time of lapse. If both Insureds were alive on the date the
policy lapsed, both must be alive on the date we approve the
request for reinstatement. lf either Insured is not alive,
such approval is void and of no effect. If only one Insured
was alive on the date the policy lapsed, that Insured must
be alive on the date we approve the request for
reinstatement. If that Insured is not alive, such approval
is void and of no effect.
The reinstated policy will be in force from the date we
approve the reinstatement application. There will be a full
monthly deduction for the policy month which includes this
date. Any application for reinstatement becomes part of the
contract of reinstatement and of this policy.
Any loan may be paid or reinstated. Any loan reinstated will
cause a cash value of an equal amount to be reinstated.
Any loan repaid at the time of reinstatement will cause an
increase in cash value equal to the amount of the repaid
loan.
Following reinstatement, the No-Lapse Period provision will
again be applicable until the No-Lapse Premium Date, shown
on the Policy Specifications page, if sufficient premium is
paid so that, as of the effective date of reinstatement, the
sum of all premiums paid, reduced by any partial withdrawals
and any loans, is greater than the No-Lapse Monthly Premiums
multiplied by the number of elapsed months since the Issue
Date.
7. LOANS
Upon written request to us, you may borrow an amount not in
excess of the loan value of your policy while it is in
force. The minimum amount of your net loan request at any
one time must be at least $500. Your policy will be the sole
security for such loan. We have the right to require your
policy for endorsement.
The loan value is the cash value of your policy at the date
of the loan request plus interest to the next policy
anniversary at the General Account Cash Value Guaranteed
Interest Rate, shown on the Policy Specifications page,
reduced by:
1. Any existing loans; and
2. Loan interest to the next loan interest due date;
and
3. Every monthly deduction due to the next loan
interest due date.
You may allocate the policy loan among the General Account
and the Divisions of the Separate Account. If you do not
specify the allocation, then the policy loan will be
allocated among the General Account and the Divisions of the
Separate Account in the same proportion that the cash value
in the General Account, and the cash value in each Division
bears to the total cash value of the policy, minus the cash
value in the Loan Account, on the date of the policy loan.
Cash value equal to the policy loan allocated to the General
Account and each Division of the Separate Account will be
transferred to the Loan Account, reducing the cash value
accordingly. Any cash value transferred to the Loan Account
will be allocated to the appropriate Loan SubAccount.
Loan Interest The accrued loan interest will be due the earliest of:
Due Date
1. The next policy anniversary date.
2. The date of termination of the policy.
3. The date the loan is repaid in full.
4. The date the loan plus loan interest accrued
exceeds the cash value.
Interest will be payable annually on each policy
anniversary. If you do not pay the interest when it is due
on a policy anniversary, an amount of cash value equal to
the loan interest will also be transferred to the Loan
Account. We will charge the same rate of interest on this
amount as on the policy loan. The amount transferred will be
deducted from the General Account and the Divisions of the
Separate Account in the same proportion that the cash value
in the General Account and the cash value in each Division
bears to the total cash value of the policy, minus the cash
value in the Loan Account.
Fixed Loan The fixed loan interest rate is 4.5% for policy years 1
Interest Rates through 10, 4.25% for policy years 11 through 20 and 4.15%
for policy years 21 and later. Loan interest is payable in
arrears.
Loan All funds received will be credited to your policy as a
Repayments premium unless clearly marked for loan repayment.
You may repay your loan in whole or in part at any time
before the death of the Last Insured while the policy is in
force. When a loan repayment is made, cash value securing
the debt in the Loan Account equal to the loan repayment
will be repaid to the General Account and the Divisions of
the Separate Account in the same proportion that the cash
value in the Loan Account bears to the cash value in each
Loan SubAccount. Unpaid loans and loan interest will be
deducted from any settlement of your policy.
If you fail to make repayments when the total loan and loan
interest due would exceed the cash value, your policy will
terminate. We will allow you a grace period for such payment
of loans and loan interest due. In such event the policy
becomes void at the end of the grace period. We will mail
notice to your last known address, and that of any assignee
of record. This grace period will expire 62 days from the
Monthly Anniversary immediately before the date the total
loan and loan interest exceeds the cash value; or 31 days
after such notice has been mailed, if later.
8. CASH VALUES
Cash Value The cash value of your policy is equal to the total of:
. The cash value in the General Account; plus
. The cash value in the Divisions of the Separate
Account; plus
. The cash value in the Loan Account.
Cash Value If this policy is in force beyond the younger Insured's
After Attained Attained Age 100, the cash value of your policy will be
Age 100 determined in the same manner as described below; except no
deductions will be made for monthly cost of insurance
charges. Premiums can not be paid after the younger Insured
Attains Age 100.
General Account The cash value in the General Account as of the Investment
Cash Value Start Date is equal to:
. The portion of the initial net premium received
and allocated to the General Account; minus
. The portion of the monthly deductions due from the
Issue Date through the Investment Start Date
charged to the General Account.
The cash value in the General Account on any day after the
Investment Start Date is equal to:
. The cash value on the preceding Valuation Date,
with interest on such value at the current rate;
plus
. Any portion of net premium received and allocated
to the General Account on that day; plus
. Any amounts transferred to the General Account on
that day; plus
. Any loan repayments allocated to the General
Account on that day; plus
. That portion of any interest credited on
outstanding loans which is allocated to the
General Account on that day; minus
. Any amount transferred plus any transfer charge
from the General Account to the Divisions of the
Separate Account on that day; minus
. Any partial withdrawal plus any withdrawal
transaction charge made from the General Account
on that day; minus
. Any amount transferred from the General Account to
the Loan Account on that day; minus
. If that day is a Monthly Anniversary, any
withdrawal due to a pro rata surrender plus any
withdrawal transaction charge made from the
General Account on that day; minus
. If that day is a Monthly Anniversary, the portion
of the monthly deduction charged to the General
Account to cover the policy month which starts on
that day.
General Account The interest credited to the General Account cash value for
Interest Rate a specific day will be at an effective annual rate not less
than the General Account cash value guaranteed interest rate
shown on the Policy Specifications page.
Separate Account The cash value in each Division of the Separate Account on
Cash Value the Investment Start Date is equal to:
. The portion of the initial net premium received
and allocated to the Division; minus
. The portion of the monthly deductions due from the
Issue Date through the Investment Start Date
charged to the Division.
The cash value in each Division of the Separate Account on
subsequent Valuation Dates is equal to:
. The cash value in the Division on the preceding
Valuation Date multiplied by that Division's net
investment factor for the current valuation
period; plus
. Any portion of net premium received and allocated
to the Division during the current valuation
period; plus
. Any amounts transferred to the Division from the
General Account or from another Division during
the current valuation period; plus
. Any loan repayments allocated to the Division
during the current valuation period; plus
. That portion of any interest credited on
outstanding loans which is allocated to the
Division during the current valuation period;
minus
. Any amounts transferred plus any transfer charge
from the Division during the current valuation
period; minus
. Any partial withdrawal plus any withdrawal
transaction charge from the Division during the
current valuation period; minus
. Any amount transferred from the Division to the
Loan Account during that valuation period; minus
. If a Monthly Anniversary occurs during the current
valuation period, any withdrawal due to a pro rata
surrender plus any withdrawal transaction charge
from the Division during the current valuation
period; minus
. If a Monthly Anniversary occurs during the current
valuation period, the portion of the monthly
deduction charged to the Division during the
current valuation period to cover the policy month
which starts during that valuation period .
Net Investment The Net Investment Factor measures the investment
Factor performance of a Division during a valuation period. The Net
Investment Factor for each Division for a valuation period
is calculated as follows:
. The value of the assets at the end of the
preceding valuation period; plus
. The investment income and capital gains---realized
or unrealized---credited to the assets in the
valuation period for which the net investment
factor is being determined; minus
. The capital losses---realized or
unrealized---charged against those assets during
the valuation period; minus
. Any amount charged against each Division for
taxes, including any tax or other economic burden
resulting from the application of tax laws that we
determine to be properly attributable to the
Divisions of the Separate Account, or any amount
we set aside during the valuation period as a
reserve for taxes attributable to the operation or
maintenance of each Division; minus
. A charge not to exceed the daily investment
percentage shown on the Policy Specifications page
for each day in the valuation period. This
corresponds to an annual investment percentage of
the mortality and expense risk percentage shown on
the Policy Specifications page; divided by
. The value of the assets at the end of the
preceding valuation period.
Loan Account The cash value in the Loan Account as of the Investment
Cash Value Start Date is zero.
The cash value in the Loan Account on any day after the
Investment Start Date is equal to:
. The cash value in the Loan Account on the
preceding Valuation Date, with interest; plus
. Any amount transferred to the Loan Account from
the General Account on that day; plus
. Any amount transferred to the Loan Account from
the Divisions of the Separate Account on that day;
minus
. Any loan repayments on that day; plus
. If that day is a policy anniversary, an amount due
to cover the loan interest, if not paid by you.
Cash value held in the Loan Account for loan collateral will
earn interest daily at an annual rate of not less than the
General Account Cash Value Guaranteed Interest Rate shown on
the Policy Specifications page. Interest credited on the
cash value held in the Loan Account will be allocated at
least once a year to the General Account and the Divisions
of the Separate Account in the same proportion that the cash
value in each Loan SubAccount bears to the cash value in the
Loan Account.
Monthly Cost The monthly cost of insurance for the following month is
of insurance deducted on the monthly anniversary date. The monthly cost
is 1, below, multiplied by the difference between 2 and 3
below:
1. The monthly cost of insurance rate divided by
1,000.
2. An amount as follows:
Option A Contract Type: The greater of:
a. The face amount divided by the Monthly Cost
of Insurance Factor shown on the Policy
Specifications page: or
b. The cash value at the beginning of the policy
month multiplied by the applicable percentage
of the cash value as described in Section
7702(d) of the Internal Revenue Code of 1986
and modified for ages 95 and above.
Option B Contract Type: The greater of:
a. The face amount divided by the Monthly Cost
of Insurance Factor shown on the Policy
Specifications page plus the cash value at
the beginning of the policy month; or
b. The cash value at the beginning of the policy
month multiplied by the applicable percentage
of the cash value as described in Section
7702(d) of the Internal Revenue Code of 1986
and modified for ages 95 and above.
Option C Contract Type: The greater of:
a. The face amount divided by the Monthly Cost
of Insurance Factor shown on the Policy
Specifications page; or
b. The cash value at the beginning of the policy
month multiplied by the younger Insured's
attained age factor as shown on the policy's
Death Benefit Option C Attained Age Factors
page.
3. The cash value at the beginning of the policy
month, before the deduction of the monthly cost of
insurance.
Monthly Cost At the beginning of each policy year, the monthly cost of
of Insurance insurance rate is determined. The monthly cost of insurance
Rates rate is based on the Attained Ages, risk classifications,
sexes and completed policy years from the Issue Date.
The monthly cost of insurance rates will never exceed the
rates shown on the Table of Guaranteed Monthly Cost of
Insurance Rates page. Any change in the cost of insurance
rates will apply to all persons of the same age, sex, and
classification whose face amounts have been in force for the
same length of time.
Selection and The selection and issue expense charge is a monthly charge
Issue Expense for the first 10 policy years. This charge equals the face
Charge amount times a selection and issue expense charge rate,
divided by 1,000. The selection and issue expense charge is
based on the Insureds' Issue Ages, sexes and risk
classifications on the Issue Date. The selection and issue
expense charge rate will never exceed the Maximum Selection
and issue Expense Charge Rate shown on the Policy
Specifications page.
Monthly Policy A policy charge will be deducted each policy month from the
Charge cash value. The amount of the monthly policy charge will
never exceed the amount shown on the Policy Specifications
page.
Monthly The monthly deduction is:
Deduction
1. The monthly cost of insurance; plus
2. The selection and issue expense charge multiplied
by the face amount divided by 1,000; plus
3. The monthly policy charge; plus
4. The monthly cost, if any, for any rider included
with this policy.
The monthly deduction for a policy month will be allocated
among the General Account and the Divisions of the Separate
Account in the same proportion that the cash value in the
General Account and the cash value in each Division bears to
the total cash value of the policy, minus the cash value in
Loan Account on the Monthly Anniversary.
Cash Surrender The cash surrender value of this policy is:
Value
1. The cash value at the time of surrender; minus
2. Any loan and loan interest accrued; minus
3. Any unpaid selection and issue expense charge due
for the remainder of the first policy year; minus
4. Any unpaid monthly policy charge due for the
remainder of the first policy year.
Surrender You may surrender your policy for its cash surrender value
at any time during the lifetime of either Insured. We will
determine the cash surrender value as of the date we receive
your written request at our home office. The cash surrender
value will not be reduced by any monthly deduction due on
that date for a subsequent policy month.
Partial After the first policy year, upon written request to us, you
Withdrawals can make a partial withdrawal of cash subject to the
conditions listed below. The first 12 requested partial
withdrawals or transfers per policy year will be allowed
free of charge; thereafter we may impose a transfer charge
not to exceed the Maximum Transfer Charge shown on the
Policy Specifications page.
No partial withdrawal will be processed which will result in
the face amount, excluding riders, being decreased below the
Minimum Face Amount shown on the Policy Specifications page.
We reserve the right to change the minimum amount or the
number of times you may make a partial withdrawal. We also
may assess a transaction charge for a withdrawal.
If the Contract Type is Option A or Option C and the death
benefit equals the face amount, then a partial withdrawal
will decrease the face amount by an amount equal to the
partial withdrawal. If the death benefit equals a percentage
of the cash value then a partial withdrawal will decrease
the face amount by any amount by which the partial
withdrawal exceeds the difference between the death benefit
and the lace amount.
General Account The minimum amount of your partial withdrawal request at any
Partial one time must be at least $500 of your account.
Withdrawals
. The maximum amount of all partial withdrawals and
transfers from the General Account in a policy
year will be the greater of (1) or (2):
1. The cash surrender value of the General
Account at the beginning of that policy year
multiplied by the withdrawal percentage
limit, as shown on the Policy Specifications
page.
2. The previous year's General Account maximum
withdrawal amount.
Separate Account . The minimum amount of your partial withdrawal
Partial request at any one time must be the lesser of $500
Withdrawals of a Division or your entire balance in that
Division.
. The maximum amount of your partial withdrawal from
any one of the Divisions of the Separate Account
in a policy year will be the cash surrender value
of that Division.
Allocation You may allocate the partial withdrawal, subject to the
of Partial above conditions, among the General Account and the
Withdrawals Divisions of the Separate Account. If you do not specify the
allocation, then the partial withdrawal will be allocated
among the General Account and the Divisions of the Separate
Account in the same proportion that the cash value in the
General Account and the cash value in each Division bears to
the total cash value of the policy, minus the cash value in
the Loan Account on the date of the partial withdrawal. If
the General Account conditions will not allow this
proportionate allocation, we will request that you specify
an acceptable allocation.
Pro Rata After the first policy year, upon written request to us, you
Surrender can make a pro rata surrender of your policy. The pro rata
surrender can be any whole number percentage of your policy.
The pro rata surrender will reduce the face amount and the
cash value by the percentage chosen. The face amount
decrease will be subject to the following conditions:
1. The decrease will become effective on the monthly
anniversary on or following our receipt of the
request.
2. You may allocate the decrease in cash value due to
the pro rata surrender among the General Account
and the Divisions of the Separate Account. If you
do not specify the allocation, then the decrease
in cash value will be allocated among the General
Account and the Divisions of the Separate Account
in the same proportion that the cash value in the
General Account and the cash value in each
Division bears to the total cash value of the
policy, minus the cash value in the Loan Account
on the date of the pro rata surrender.
A pro rata surrender can not be processed if it will reduce
the face amount below the Minimum Face Amount shown on the
Policy Specifications page. No pro rata surrender will be
processed for more cash surrender value than is available on
the date of the pro rata surrender. A cash payment will be
made to you for the amount of the cash value reduction.
Postponement We will usually pay any amounts payable on surrender,
of Payments partial withdrawal, or policy loan allocated to the
or Transfers Divisions of the Separate Account within seven days after
written notice is received. We will usually pay any death
benefit proceeds upon the Last Insured's death within seven
days after we receive due proof of claim. Payment of any
amount payable, from the Divisions of the Separate Account,
on surrender, partial withdrawal, policy loan or death may
be postponed whenever:
1. The New York Stock Exchange is closed (other than
customary weekend and holiday closing) or trading
on the New York Stock Exchange is restricted as
determined by the SEC;
2. The SEC, by order, permits postponement for the
protection of policy owners; or
3. An emergency exists as determined by the SEC, as a
result of which disposal of securities is not
reasonably practicable or it is not reasonably
practicable to determine the value of the net
assets of the Separate Account.
We may defer payment of the portion of any amount payable
from the General Account on surrender or partial withdrawal
for not more than six months. If we defer payment for 30
days or more, we will pay interest at the rate of 2 1/2% per
year for the period of deferment.
Transfers may also be postponed under the circumstances
listed above.
We may defer payment of the portion of any policy loan from
the General Account for not more than six months. No payment
from the General Account to pay premiums on this policy will
be deferred.
Continuation If all premium payments cease, the insurance provided under
of Insurance this policy, including benefits provided by any rider
attached to this policy, will continue in accordance with
the provisions of this policy for as long as the cash value
less any loans and loan interest accrued is sufficient to
cover the monthly deductions.
Basis of The minimum cash values are based on 1) the Minimum Cash
Computation Value Mortality Table shown on the Policy Specifications
page; and 2) for amounts allocated to the General Account,
compound interest at an annual rate of not less than the
General Account Cash Value Guaranteed Interest Rate shown on
the Policy Specifications page. There is no minimum cash
value guaranteed interest rate for amounts allocated to the
Divisions of the Separate Account.
Net single premiums are based on 1) the 7702 Table as shown
on the Policy Specifications page; and 2) the General
Account Cash Value Guaranteed Interest Rate as shown on the
Policy Specifications page.
All values are at least equal to those required by any
applicable law of the state that governs your policy. We
have filed a detailed statement of the method of calculating
cash values and reserves with the insurance supervisory
official of that state.
9. PAYMENT OF POLICY BENEFITS
Payment A lump sum payment will be made as provided on the face
page.
Interest on We will pay interest on proceeds from the date of the Last
Proceeds Insured's death to the date of payment. Interest will be at
an annual rate determined by us, but never less than the
Guaranteed Interest Rate, shown on the Policy Specifications
page.
Extended Provisions for settlement of proceeds different from a lump
Provisions sum payment may only be made upon written agreement with us.
JOINT AND LAST SURVIVOR
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
Non-Participating
[LOGO OF PARAGON LIFE INSURANCE COMPANY APPEARS HERE]
POLICY NUMBER:
[LOGO OF PARAGON LIFE INSURANCE COMPANY APPEARS HERE]
16,000,001
INSUREDS:
John Doe
Jane Doe
JOINT AND LAST SURVIVOR
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
(Unisex)
Non-Participating
Flexible Premiums are payable while this policy is in force and continue until
the younger Insured reaches Attained Age 100. If both Insureds die while this
policy is in force, we will pay the policy proceeds to the beneficiary upon the
Last Insured's death. We must receive proof of both Insureds' deaths. The policy
must also be surrendered to us after the Last Insured's death occurs. Any
payment will be subject to all of the provisions and conditions on this and the
following pages of this policy.
THE AMOUNT OF THE DEATH BENEFIT OR THE DURATION OF THE DEATH BENEFIT MAY
INCREASE OR DECREASE UNDER THE CONDITIONS DESCRIBED ON PAGES 4.01 AND 4.02.
THE POLICY'S CASH VALUE IN EACH INVESTMENT DIVISION OF THE SEPARATE ACCOUNT
IS BASED ON THE INVESTMENT EXPERIENCE OF THAT INVESTMENT DIVISION AND MAY
INCREASE OR DECREASE DAILY. IT IS NOT GUARANTEED AS TO DOLLAR AMOUNT. SEE
THE SEPARATE ACCOUNT PROVISION.
THE POLICY'S CASH VALUE IN THE GENERAL ACCOUNT WILL BE CREDITED WITH INTEREST AT
A MINIMUM GUARANTEED RATE AS SHOWN ON THE POLICY SPECIFICATIONS PAGE. WE MAY
CREDIT ADDITIONAL INTEREST IN EXCESS OF THE GUARANTEED RATE. SEE THE GENERAL
ACCOUNT CASH VALUE PROVISION.
RIGHT TO EXAMINE POLICY
Please read this policy. You may return this policy to us or to the agent
through whom it was purchased within 20 days from the date you receive it or
within 45 days after the application is signed, whichever period ends later. If
you return it within this period, the policy will be void from the beginning. We
will refund any premium paid.
This policy Is a legal contract between the policyowner and Paragon Life
Insurance Company. PLEASE READ YOUR CONTRACT CAREFULLY. This cover sheet
provides only a brief outline of some of the important features of your policy.
This cover sheet is not the complete insurance contract and only the actual
policy provisions will control. The policy itself sets forth, in detail, the
rights and obligations of both you and your insurance company. It is therefore,
important that you read your policy.
Executed on the Issue Date by Paragon Life insurance Company. [(1-877-334-8975)]
/s/ Matthew P.McCauley /s/ Carl H. Anderson
V.P., GENERAL COUNSEL
AND SECRETARY PRESIDENT
ALPHABETIC GUIDE TO YOUR CONTRACT
Page
3.07 Addition, Deletion or Substitution
of Investments
4.04 Allocation of Net Premiums
3.04 Assignments
6.07 Basis of Computation
3.02 Beneficiary
6.05 Cash Surrender Value
6.02 Cash Values
4.02 Change in Contract Type
3.05 Change of Insured
3.04 Change of Owner or Beneficiary
3.05 Claims of Creditors
3.04 Conformity with Statutes
4.01 Death Benefit
3.01 Definitions
4.02 Face Amount Decreases
6.02 General Account Cash Value
6.03 General Account Interest Rate
4.04 Grace Period
3.05 Incontestability
7.01 Interest on Proceeds
3.01 Issue Data
6.04 Loan Account Cash Value
6.01 Loans
3.05 Misstatement of Age and
Corrections
6.04 Monthly Cost of Insurance
6.05 Monthly Deduction
6.05 Monthly Policy Charge
6.03 Net Investment Factor
4.03 Net Premium
3.02 Owner
6.05 Partial Withdrawals
7.01 Payment of Policy Benefits
4.03 Payment of Premiums
4.02 Policy Changes
4.01 Policy Proceeds
6.07 Postponement of Payments
or Transfers
4.05 Reinstatement
3.04 Requests for Changes and/or
Information
6.03 Separate Account Cash Value
3.06 Separate Account Provisions
3.04 Statements in Application
3.05 Suicide Exclusion
6.05 Surrender
3.06 Transfers
Additional Benefit Riders, Modifications and Amendments, if any, and a Copy of
the Application are found following the final section.
1. POLICY SPECIFICATIONS
GENERAL POLICY SPECIFICATIONS
POLICY NUMBER [17,000,001]
ISSUE DATE [JANUARY 1, 1999]
FACE AMOUNT [$100,000]
CONTRACT TYPE [OPTION A]
INITIAL PREMIUM PAID [$974.37]
PLANNED ANNUAL PREMIUM [$974.37]
MINIMUM INITIAL ANNUAL PREMIUM AMOUNT [$974.37]
NO LAPSE ANNUAL PREMIUM [$168.00]
NO LAPSE PREMIUM DATE [JANUARY 1, 2004]
PREMIUM TAX CHARGE [2.25%]
FEDERAL TAX CHARGE [1.3%]
SEPARATE ACCOUNT [SEPARATE ACCOUNT D]
INSURED AGE SEX RISK CLASSIFICATION
[JOHN DOE] [35] [MALE] [STANDARD SMOKER]
[JANE DOE] [35] [FEMALE] [STANDARD SMOKER]
BENEFITS - AS SPECIFIED IN POLICY
AND IN ANY RIDER
FORM
NUMBERS POLICY PLAN: JOINT AND LAST SURVIVOR
FLEXIBLE PREMIUM VARIABLE
30043 LIFE INSURANCE
30190
30191
30192
30325
30422
30625
30715
3083200 Anniversary Partial Withdrawal Rider
3083300 Divorce Split Policy Option Rider
3083400 Split Policy Option Rider
3083500 Estate Preservation Term Rider
3083600 Lifetime Coverage Rider
3083800 Secondary Guarantee Rider
2. POLICY SPECIFICATIONS
GENERAL ACCOUNT CASH VALUE
GUARANTEED INTEREST RATE [4%]
GENERAL ACCOUNT MAXIMUM
ALLOCATION PERCENT [100%]
GENERAL ACCOUNT MAXIMUM
WITHDRAWAL PERCENT LIMIT [25%]
MAXIMUM MONTHLY COST OF
INSURANCE FACTOR [1.0032737]
MAXIMUM DAILY MORTALITY AND
EXPENSE RISK PERCENTAGE:
YEARS 1-10 [0.0015027%]
YEARS 11-20 [0.0012301%]
YEARS 21+ [0.0009572%]
MAXIMUM ANNUAL MORTALITY AND
EXPENSE RISK PERCENTAGE:
YEARS 1-10 [0.55%]
YEARS 11-20 [0.45%]
YEARS 21+ [0.35%]
MAXIMUM MONTHLY POLICY CHARGE:
1st YEAR [$6.00]
YEARS 2+ [$6.00]
MAXIMUM SELECTION AND ISSUE
EXPENSE CHARGE RATE:
YEARS 1-10 [$0.0750]
YEARS 11+ [$0.00]
MINIMUM FACE AMOUNT [$100,000]
MINIMUM FACE AMOUNT DECREASE [$5,000]
MAXIMUM FEE FOR PROJECTION OF
BENEFITS AND VALUES [$25.00]
MAXIMUM TRANSFER CHARGE [$25.00]
GUARANTEED INTEREST RATE ON
PROCEEDS [4.0%]
7702 TABLE [1980 CSO MORTALITY TABLE A
FOR A SMOKER,
AND 1980 CSO MORTALITY TABLE G
FOR A SMOKER,
AGE NEAREST BIRTHDAY]
BASIS OF COMPUTATION [1980 CSO MORTALITY TABLE A
OF MINIMUM CASH VALUES FOR A SMOKER,
AND 1980 CSO MORTALITY TABLE G
FOR A SMOKER,
AGE NEAREST BIRTHDAY]
IF THE INITIAL PREMIUM PAID AND SUBSEQUENT PREMIUMS PROVE TO BE TOO LOW,
COVERAGE PROVIDED BY THIS POLICY MAY CEASE.
TABLE OF GUARANTEED MONTHLY COST OF INSURANCE RATES
RATES PER $1,000
COVERAGE: JSFPVL INSUREDS: JOHN DOE
POLICY NUMBER: 17,000,001 JANE DOE
ISSUE DATE: JANUARY 1, 1999
POLICY YEAR RATE POLICY YEAR RATE
1 0.0004 34 1.3496
2 0.0014 35 1.5297
3 0.0026 36 1.7297
4 0.0041 37 1.9667
5 0.0060 38 2.2489
6 0.0084 39 2.5843
7 0.0115 40 2.9729
8 0.0152 41 3.4152
9 0.0197 42 3.8996
10 0.0250 43 4.4178
11 0.0314 44 4.9642
12 0.0388 45 5.5496
13 0.0475 46 6.1927
14 0.0576 47 6.9094
15 0.0695 48 7.7173
16 0.0835 49 8.6242
17 0.0999 50 9.6549
18 0.1193 51 10.7020
19 0.1426 52 11.8476
20 0.1699 53 12.9635
21 0.2012 54 14.2024
22 0.2369 55 15.3930
23 0.2763 56 16.7123
24 0.3198 57 18.1014
25 0.3680 58 19.6024
26 0.4228 59 21.3279
27 0.4878 60 23.4464
28 0.5645 61 26.5417
29 0.6588 62 31.3755
30 0.7685 63 39.6130
31 0.8955 64 54.6636
32 1.0346 65 83.3333
33 1.1884 66+ 0.0000
THESE RATES ARE FOR THE BASE POLICY AT ISSUE. THEY ARE BASED ON A
COMBINATION OF THE ULTIMATE 1980 COMMISSIONERS STANDARD ORDINARY MORTALITY
TABLE A, SMOKER AND TABLE G, SMOKER.
DEATH BENEFIT OPTION C ATTAINED AGE FACTORS
COVERAGE: JSFPVL INSUREDS: JOHN DOE
POLICY NUMBER: 17,000,001 JANE DOE
ISSUE DATE: JANUARY 1, 1999
ATTAINED ATTAINED
AGE* RATE AGE* RATE
35 5.64184 68 1.73259
36 5.42508 69 1.68510
37 5.21686 70 1.64002
38 5.01683 71 1.59723
39 4.82481 72 1.55674
40 4.64044 73 1.51862
41 4.46354 74 1.48292
42 4.29389 75 1.44965
43 4.13112 76 1.41875
44 3.97514 77 1.39005
45 3.82557 78 1.36333
46 3.68227 79 1.33835
47 3.54498 80 1.31492
48 3.41344 81 1.29295
49 3.28747 82 1.27239
50 3.16694 83 1.25326
51 3.05154 84 1.23556
52 2.94120 85 1.21935
53 2.83570 86 1.20433
54 2.73495 87 1.19047
55 2.63880 88 1.17738
56 2.54704 89 1.16503
57 2.45952 90 1.15300
58 2.37604 91 1.14119
59 2.29637 92 1.12932
60 2.22033 93 1.11709
61 2.14774 94 1.10423
62 2.07858 95 1.09045
63 2.01279 96 1.07580
64 1.95040 97 1.06037
65 1.89131 98 1.04422
66 1.83546 99 1.02648
67 1.78261 100+ 1.01000
* ATTAINED AGE IS THE YOUNGER INSURED'S ATTAINED AGE EVEN IF NO LONGER
LIVING.
1. DEFINITIONS IN THIS POLICY
We, Us and Our Paragon Life Insurance Company.
You and Your The owner of this policy. The owner may be someone other
than the Insureds.
In the application the words "You" and "Your" refer to the
proposed Insured person(s).
Insureds The persons whose lives are insured under this policy. See
the Policy Specifications page.
Last Insured The Insured whose death succeeds the death of all other
Insureds under this policy.
Issue Age The age of each Insured as of his or her nearest birthday to
the Issue Date.
Attained Age The Issue Age for an Insured plus the number of completed
policy years, whether or not the Insured is living. This
includes any period during which this policy was lapsed.
Issue Date The effective date of the coverage under this policy which
is the Issue Date shown on the Policy Specifications page.
It is also the date from which policy anniversaries, policy
years, and policy months are measured.
Investment The date the first premium is applied to the General Account
Start Date and/or the Divisions of the Separate Account. This date will
be the later of:
. The Issue Date of the policy; or
. The date we receive the first premium at our
Service Center.
Monthly The same date in each succeeding month as the Issue Date
Anniversary except that whenever the Monthly Anniversary falls on a date
other than a Valuation Date, the Monthly Anniversary will be
deemed the next Valuation Date. If any Monthly Anniversary
would be the 29th, 30th, or 31st day of a month that does
not have that number of days, then the Monthly Anniversary
will be the last day of that month.
General Account The assets held by us, excluding any loans, other than those
allocated to the Divisions of the Separate Account.
Separate Account The Separate Account listed on the Policy Specifications
page, a separate investment account created by us to receive
and invest net premiums received for this policy or other
policies.
Loan Account The account to which we will transfer from the General
Account and the Divisions of the Separate Account the amount
of any policy loan.
Loan SubAccount A Loan SubAccount exists for the General Account and each
Division of the Separate Account. Any cash value transferred
to the Loan Account will be allocated to the appropriate
Loan SubAccount to reflect the origin of the cash value. At
any point in time, the Loan Account will equal the sum of
all the Loan SubAccounts.
Valuation Date Each day that the New York Stock Exchange is open for
trading, the Service Center is open for business and the SEC
has not restricted trading or declared an emergency.
SEC The United States Securities and Exchange Commission.
Service Center P.O. Box 66757, St. Louis, MO 63166-6757.
2. PERSONS WITH AN INTEREST IN THE POLICY
Owner The owner of this policy is as shown in the application or
in any supplemental agreement attached to this policy,
unless later changed as provided in this policy. If there is
more than one owner at a given time, all must exercise the
rights of ownership by joint action. Ownership may be
changed in accordance with the Change of Owner or
Beneficiary provision.
You, as owner, are entitled to exercise all ownership rights
provided by this policy, while it is in force. Any person
whose rights of ownership depend upon some future event will
not possess any present rights of ownership. If the owner is
a trustee(s), we may act in reliance upon the written
request of any trustee and we are not responsible for proper
administration of the trust. Unless otherwise provided, the
final owner will be the estate of the last owner to die.
Beneficiary The beneficiary to receive the proceeds in the event of the
Last Insured's death is as shown in the application or in
any supplemental agreement attached to this policy, unless
later changed as provided in the policy. You may change the
beneficiary in accordance with the Change of Owner or
Beneficiary provision. Unless otherwise stated, the
beneficiary has no rights in this policy before the death of
the Last Insured. If there is more than one beneficiary at
the death of the Last Insured, each will receive equal
payments unless otherwise provided. Unless you provide
otherwise, if a beneficiary dies prior to the Last Insured's
death, that beneficiary's share will be paid to the living
beneficiaries of that class. The deceased beneficiary's
share will be paid in the same proportion as the living
beneficiaries' shares. If there are no beneficiaries living
when the Last Insured dies, or at the end of any Common
Disaster period, the proceeds (commuted if required) will be
payable to you, if you are living, or to your estate.
Any payment we make will terminate our liability with
respect to such payment. If the Insureds designate specific
amounts to be paid to specific beneficiaries and the total
of those amounts is other than the amount of proceeds
payable, the proceeds payable will be adjusted and paid in
the same proportion as the specific amounts were to be paid.
Any term used in the masculine, feminine, singular or
plural, will include or be the opposite gender or number
where necessary.
If any beneficiary designation in the application includes
any of the following provisions, the terms of that provision
shown below will apply:
1. Per Stirpes. The share of a deceased beneficiary
will be paid to that beneficiary's surviving
children, equally.
2. Common Disaster. We will not make payment until
the stated number of days after the Last Insured's
death. If any beneficiary dies during this period,
or if the order of death of any beneficiary and
the Last Insured cannot be determined, we will pay
as though such beneficiary died first.
3. Trust for Minor Beneficiary. The original or
successor trustee for a minor beneficiary will
serve without bond and exercise all rights and
receive all proceeds for the minor beneficiary.
Such proceeds will be held in a separate trust and
used at the trustee's discretion for such minor's
education, support, care and general welfare. The
trust will terminate at the legal age of majority
or prior death of the minor beneficiary. Any funds
then held by the trustee will be paid in one sum
to such beneficiary or the beneficiary's estate.
The trust can be revoked by a change of
beneficiary under the policy. Payment to any
trustee will discharge us to the extent of such
payment.
4. Trust Under Will. When we receive at our Service Center:
a) Certified copies of the Last Will and Testament of
the named testator; and
b) The order admitting the Will to probate; and if
such Will created a trust capable of receiving
proceeds;
then we will pay the proceeds to the trustee.
If, before we receive these documents, satisfactory proof is
furnished that:
a) the testator died intestate; or
b) the Will created no trust capable of receiving
proceeds; or
c) the testator was not either Insured, but survived
the Last Insured;
then we will pay the proceeds to you, unless otherwise
provided.
If we pay under any of these conditions, we will be
discharged to the extent of such payment. We are not
required to check into the validity, general terms or proper
administration of the trust. Such trustee designation will
not affect your rights under the policy, including the right
to change the beneficiary.
5. Trust Under Separate Written Agreement. When we receive at
our Service Center a written statement from the trustee
named in the beneficiary designation that:
a) the trust agreement is in force; and
b) the agreement permits the trustee to receive the
proceeds;
then we will pay the proceeds to the trustee.
If, before we receive the trustee's statement, satisfactory
proof is furnished that:
a) the trust agreement is not in effect; or
b) the agreement does not permit the trustee to
receive the proceeds;
then we will pay the proceeds to you, unless otherwise
provided.
If we pay under any of these conditions, we will be
discharged to the extent of such payment. We are entitled to
rely on any statements or documents furnished to us by the
trustee and are not required to check into the validity,
general terms or proper administration of the trust
agreement. Such trustee designation will not affect your
rights under the policy, including the right to change the
beneficiary.
6. Irrevocable Beneficiary. You cannot change an irrevocable
beneficiary without the written consent of such beneficiary.
Also, you cannot exercise any other ownership rights without
the consent of such beneficiary, if the exercise of such
rights will have the effect of diminishing the rights and
interest of the irrevocable beneficiary.
7. Creditor Beneficiary. Proceeds payable to any creditor
beneficiary are limited to its provable interest. The
balance of any proceeds will be paid to any other named
beneficiary. If there is no other beneficiary living, we
will pay the proceeds to you, unless otherwise provided. You
cannot change a creditor beneficiary without the written
consent of the creditor or release of its interest. Also,
you cannot exercise any other ownership rights without the
consent of such beneficiary, if the exercise of such rights
will have the effect of diminishing the rights and interest
of the creditor beneficiary.
Change of During the lifetime of either Insured you may change the
Owner or ownership and beneficiary designations, subject to any
Beneficiary restrictions as stated in the Owner or Beneficiary
provisions. You must make the change in written form
satisfactory to us. If acceptable to us the change will take
effect as of the time you signed the request, whether or not
either Insured is living when we receive your request at our
Service Center. The change will be subject to any assignment
of this policy or other legal restrictions. It will also be
subject to any payment we made or action we took before we
received your written notice of the change. We have the
right to require the policy for endorsement before we accept
the change.
If you are also the beneficiary of the policy at the time of
the Last Insured's death, you may designate some other
person to receive the proceeds of the policy within 60 days
after the Last Insured's death.
Assignments We will not be bound by an assignment of the policy or of
any interest in it unless:
1. The assignment is made as a written instrument,
2. You file the original instrument or a certified
copy with us at our Service Center, and
3. We send you an acknowledged copy.
We are not responsible for determining the validity of any
assignment.
If a claim is based on an assignment, we may require proof
of interest of the claimant. A valid assignment will take
precedence over any claim of a beneficiary.
This assignment provision will not apply when this contract
is sold in a tax qualified plan. No assignment will be
permitted in such cases.
Requests For Submit all requests for change and/or information in writing
Changes and/or to our Service Center.
Information
3. GENERAL PROVISIONS
The Contract We have issued this policy in consideration of the
application and payment of premiums. The policy, the
application for it, and any riders constitute the entire
contract and are attached to and made a part of the policy
when the insurance applied for is accepted. A copy of any
application for reinstatement will be sent to you for
attachment to this policy and will become part of the
contract of reinstatement and of this policy. The policy may
be changed by mutual agreement. Any change must be in
writing and approved by our President, Vice-President or
Secretary. Our agents have no authority to alter or modify
any terms, conditions, or agreements of this policy, or to
waive any of its provisions.
Conformity with If any provision in this policy is in conflict with the laws
Statutes of the state which govern this policy, the provision will be
deemed to be amended to conform with such laws. In addition,
we reserve the right to change this policy if we determine
that a change is necessary to cause this policy to comply
with, or give you the benefit of, any federal or state
statute, rule, or regulation, including, but not limited to,
requirements for life insurance contracts under the Internal
Revenue Code, or its regulations or published rulings.
Statements in All statements made by the Insureds or on their behalf, or
Application by the applicant, will be deemed representations and not
warranties, except in the case of fraud. Material
misstatements will not be used to void the policy or any
rider, or deny a claim unless made in the application for a
policy or a rider.
Claims of To the extent permitted by law, neither the policy nor any
Creditors payment under it will be subject to the claims of creditors
or to any legal process.
Conversion Rights While your policy is in force, you have a one time right
during the first two policy years to transfer all of your
cash value from the Divisions of the Separate Account to the
General Account.
If, at any time during the first two policy years, you
request in writing the transfer of the cash value held in
the Divisions of the Separate Account to the General Account
and you indicate that you are making this transfer in
exercise of your conversion rights, the transfer will not be
subject to a transfer charge or transfer limits, if any. At
the time of such transfer, there will not be any effect on
the policy's death benefit, face amount, net amount at risk,
rate class or Issue Age.
If you exercise your one time conversion right, we will
automatically allocate all future net premiums to the
General Account.
Misstatement If there is a misstatement of age for either Insured in the
of Age and applications, the amount of the death benefit will be that
Corrections which would be purchased by the most recent monthly cost of
insurance charge at the correct age.
If we make any payment or policy changes in good faith,
relying on our records, or evidence supplied to us, our
duty will be fully discharged. We reserve the right to
correct any errors in the policy.
Incontestability We cannot contest this policy after it has been in force
during the lifetime of either Insured for two years from its
Issue Date. We cannot contest any reinstatement of this
policy, with regard to material misstatements made
concerning such reinstatement, after it has been in force
during the lifetime of either Insured for a period of two
years from the date we approve the reinstatement. If only
one Insured was alive on the date we approved the request
for reinstatement, we can not contest any reinstatement of
this policy, with regard to material misstatements made
concerning such reinstatement, after it has been in force
during the lifetime of that Insured for a period of two
years from the date we approved the reinstatement. This
provision will not apply to any rider which contains its own
incontestability clause.
Suicide Exclusion If either Insured dies by suicide, while sane or insane,
within two years from the Issue Date (or within the maximum
period permitted by law of the state in which this policy
was delivered, if less than two years), the amount payable
will be limited to the amount of premiums paid, less any
outstanding policy loans with interest to the date of death,
and less any partial withdrawals.
Change of While this policy is in force, you may change one or both of
Insured the Insureds. To do this, you must meet the requirements
established by us. Any rider attached to this policy may be
continued only with our consent. We reserve the right to
charge a nominal fee for processing a change of Insured.
Annual Report Each year a report will be sent to you which shows the
current policy values, premiums paid and deductions made
since the last report, and any outstanding policy loans.
Projection of You may make a written request to us for a projection of
Benefits and illustrative future cash values and death benefits. If
Values requested more than once per policy year, this projection
will be furnished to you for a nominal fee. This fee will
not exceed the Maximum Fee for Projection of Benefits and
Values shown on the Policy Specifications page.
4. SEPARATE ACCOUNT PROVISIONS
Separate Account The variable benefits under this policy are provided
through investments in the Separate Account shown on the
Policy Specifications page. This account is used for
flexible premium variable life insurance policies and, if
permitted by law, may be used for other policies or
contracts as well.
We hold the assets of the Separate Account. These assets are
held separately from the assets held in the General Account.
Income, gains and losses---whether or not realized---from
assets allocated to the Separate Account will be credited to
or charged against the account without regard to our other
income, gains or losses.
The portion of the assets held by the Separate Account equal
to the reserves and other policy liabilities with respect to
the Separate Account will not be charged with liabilities
that arise from any other business we may conduct. We have
the right to transfer to our General Account any assets of
the Separate Account which are in excess of the reserves and
other policy liabilities of the Separate Account.
The Separate Account is registered with the Securities and
Exchange Commission as a unit investment trust under the
Investment Company Act of 1940. The Separate Account is also
subject to the laws of the State of Missouri, which regulate
the operations of insurance companies incorporated in
Missouri. The investment policy of the Separate Account will
not be changed without the approval of the Insurance
Commissioner of the State of Missouri. The approval process
is on file with the insurance Commissioner of the state in
which this policy was delivered.
Divisions The Separate Account has several Divisions. Each Division
invests in a corresponding investment portfolio from one or
more registered investment companies.
Income, gains and losses---whether or not realized---from
the assets of each Division of the Separate Account are
credited to or charged against that Division without regard
to income, gains or losses in other Divisions of the
Separate Account or in the General Account.
We will value the assets of each Division of the Separate
Account at the end of each valuation period. A valuation
period is the period between two successive Valuation Dates.
A Valuation Date is any day that benefits vary and on which
the New York Stock Exchange and our Service Center are open
for business or any other day that may be required by any
applicable Securities and Exchange Commission Rules and
Regulations.
Transfers You may transfer amounts as follows:
. Between the General Account and the Divisions of
the Separate Account; or
. Among the Divisions of the Separate Account.
. The first 12 requested transfers and/or partial
withdrawals per policy year will be allowed free
of charge; thereafter we may impose a transfer
charge not to exceed the Maximum Transfer Charge
shown on the Policy Specifications page.
These transfers will be subject to the following conditions:
. We must receive a request for transfer in a form
acceptable to us.
. Transfers from or among the Divisions of the
Separate Account must be at least $500.00 or the
entire amount you have in a Division, if smaller.
. Transfers and/or partial withdrawals from the
General Account to the Divisions of the Separate
Account must be at least $500.00. The maximum
amount of all transfers and partial withdrawals
from the General Account in any policy year will
be the greater of (1) or (2):
1. The cash surrender value of the General
Account at the beginning of that policy
year multiplied by the General Account
Maximum Withdrawal Percent Limit, as
shown on the Policy Specifications page.
2. The previous year's General Account
maximum withdrawal amount.
. The General Account Cash Value immediately after
any transfer in to the General Account cannot
exceed 1., below, multiplied by 2., below:
1. The General Account Cash Value plus the
Separate Account Cash Value.
2. The General Account Maximum Allocation
Percent as shown on the Policy
Specifications page.
We may revoke or modify the transfer privilege at any time,
including the minimum amount transferable, the General
Account Maximum Allocation Percent, and the transfer charge,
if any.
Addition, Deletion We reserve the right, subject to compliance with applicable
or Substitution law, to make additions to, deletions from, or substitutions
of Investments for the shares of a fund that are held by the Separate
Account or that the Separate Account may purchase. We
reserve the right to eliminate the shares of any of the
funds of this policy and to substitute shares of another
fund of a registered investment company, if the shares or
funds are no longer available for investment or if in our
judgement, further investment in any fund should become
inappropriate in view of the purpose of the policy. We will
not substitute any shares attributable to the owner's
interest in a Division of the Separate Account without
notice to the owner and compliance with the Investment
Company Act of 1940. This will not prevent the Separate
Account from purchasing other securities for other series or
classes of policies, or from permitting conversion between
series or classes of policies or contracts on the basis of
requests made by owners.
We reserve the right to establish additional Divisions of
the Separate Account which would invest in shares of
registered investment companies and to make such Divisions
available to such class or series of policies as we deem
appropriate. We also reserve the right to eliminate or
combine existing Divisions of the Separate Account or to
transfer assets between Divisions.
If we consider it to be in the best interest of persons
having voting rights under the policies, the Separate
Account may be operated as a management company under the
Investment Company Act of 1940; it may be deregistered under
that Act in the event registration is no longer required; it
may be combined with other separate accounts; or its assets
may be transferred to other separate accounts.
5. POLICY BENEFITS
Policy Proceeds The policy proceeds are:
1. The death benefit under the Contract Type then in
effect; plus
2. The monthly cost of insurance for the portion of the
policy month from the date of the Last Insured's death
to the end of the policy month of that death; minus
3. Any payment due under the Grace Period provision as of
the date of the Last Insured's death; minus
4. Any loan and loan interest due.
Death Benefit Prior to the younger Insured's Attained Age 100, the death
benefit depends upon the Contract Type in effect on the date
of the Last Insured's death. The Contract Type in effect is
shown on the Policy Specifications page.
Option A Contract Type: The death benefit is the greater of:
1. The face amount; or
2. The applicable percentage of the cash value on the date
of the Last Insured's death as described in Section
7702(d) of the Internal Revenue Code of 1986 or any
applicable successor provision and modified for ages 95
and above.
Option B Contract Type: The death benefit is the greater of:
1. The face amount plus the cash value on the date of the
Last Insured's death; or
2. The applicable percentage of the cash value on the date
of the Last Insured's death as described in Section
7702(d) of the Internal Revenue Code of 1986 or any
applicable successor provision and modified for ages 95
and above.
Option C Contract Type: The death benefit is the greater of:
1. The face amount; or
2. The cash value on the date of the Last Insured's death
multiplied by the younger Insured's applicable Attained
Age factor as shown on the policy's Death Benefit Option
C Attained Age Factors page.
Notwithstanding anything in this policy, the death benefit
will in no case be less than the amount necessary to cause
the policy to meet the requirements for the definition of
life insurance under the Internal Revenue Code of 1986 or
any applicable successor provision.
Applicable The percentages as currently described in Section 7702(d) of
Percentage: the Internal Revenue Code of 1986 and modified for ages 95
and above are as follows:
In the case in which the
younger Insured's Attained The applicable percentage
Age as of the beginning of will decrease by a ratable
the contract year is: portion for each full year:
But not
More than: more than: From: To:
0 ................... 40 250 ................... 250
40 ................... 45 250 ................... 215
45 ................... 50 215 ................... 185
50 ................... 55 185 ................... 150
55 ................... 60 150 ................... 130
60 ................... 65 130 ................... 120
65 ................... 70 120 ................... 115
70 ................... 75 115 ................... 105
75 ................... 90 105 ................... 105
90 ................... 95 105 ................... 101
95 or 101
higher
Continuation If this policy is in force beyond the younger Insured's
of the Policy Attained Age 100, the Death Benefit will be 101% of the
Beyond Attained policy's cash value.
Age 100
Please note: This policy may not qualify as life insurance
after the younger Insured's Attained Age 100 and may be
subject to tax consequences. Please consult a tax advisor
prior to continuing the policy beyond the younger Insured's
Attained Age 100. It is possible that insurance coverage may
not continue even if planned premiums are paid in a timely
manner.
Policy Changes You may request policy changes at any time unless we
specifically indicate otherwise. We limit the number of
changes to one per policy year, and we do not permit changes
in the first policy year. The types of changes allowed are
explained below.
No change will be permitted that would result in this policy
not satisfying the definition of life insurance under the
Internal Revenue Code of 1986 or any applicable successor
provision.
Face Amount The face amount may be decreased by sending us a written
Decreases request.
Any decrease in face amount will be subject to the following
conditions:
1. The decrease will become effective on the Monthly
Anniversary on or following our receipt of the request.
2. The face amount remaining in force after any requested
decrease may not be less than the Minimum Face Amount
shown on the Policy Specifications page.
3. Any decrease must be at least the Minimum Face Amount
Decrease as shown on the Policy Specifications page.
We will amend your policy to show the effective date of the
decrease.
You may not increase the face amount of this policy.
Change in If the Contract Type in effect is Option A or Option B, you
Contract Type may change the Contract Type by sending us a written
request. The effective date of the change will be the
Monthly Anniversary on or following the date we receive your
request. On the effective date of this change the death
benefit payable does not change, but the face amount may
change.
If the Contract Type in effect is Option B, you may change
it to Option A. The face amount will be increased to equal
the death benefit on the effective date of change. The
Contract Type cannot be changed from Option B to Option C.
If the Contract Type in effect is Option A, you may change
it to Option B. Proof that the Insureds are insurable by our
standards on the date of the change must be submitted. The
face amount will be decreased to equal the death benefit
less the cash value on the effective date of change. This
change may not be made if it would result in a face amount
which is less than the Minimum Face Amount shown on the
Policy Specifications page. The Contract Type cannot be
changed from Option A to Option C.
If the Contract Type in effect is Option C, the Contract
Type cannot be changed.
6. PREMIUMS AND GRACE PERIOD
Payment of Your first premium is due as of the Issue Date. While either
Premiums Insured is living, premiums after the first must be paid at
our Service Center. A premium receipt will be furnished upon
request. If this policy is in your possession and you have
not paid the first premium, it is not in force. It will be
considered that you have the policy for inspection only.
Premiums may be paid in any amount and at any interval
subject to the following conditions:
1. At the end of the first policy year, your total premium
payments for this policy must be greater than or equal
to the Minimum Initial Annual Premium Amount as shown on
the Policy Specifications page.
2. Any subsequent premium payment must be at least $10.00.
3. Total premiums paid in any policy year for policies
issued with the Option A or B Contract Type may not
exceed an amount that would cause the policy to fail the
definition of life insurance as defined by Section 7702
of the Internal Revenue Code of 1986, or any applicable
successor provision thereto. The maximum premium limit
for the following policy year will be shown on your
annual report.
On any date that we receive a premium which causes the Death
Benefit under any of the Contract Types to increase by an
amount that exceeds that premium received, we reserve the
right to refuse that premium payment. We may require
additional evidence of insurability before we accept the
premium.
Net Premium The net premium is:
1. The premium paid; minus
2. The premium paid multiplied by the Premium Tax Charge as
shown on the Policy Specifications page; minus
3. The premium paid multiplied by the Federal Tax Charge as
shown on the Policy Specifications page.
Premium Tax A charge will be deducted for premium taxes from each
Charge premium submitted. The current charge, as a percent of the
premium, is shown on the Policy Specifications page. We
reserve the right to change the Premium Tax Charge due to
rate changes of the governing jurisdiction. We will amend
your policy to show the current premium tax rate, if
changed.
Federal Tax A charge will be deducted for federal taxes from each
Charge premium submitted. The current charge, as a percent of the
premium, is shown on the Policy Specifications page. We
reserve the right to change the Federal Tax Charge to
reflect a change in the federal tax law. We will amend your
policy to show the current Federal Tax Charge, if changed.
Allocation of You determine the allocation of net premiums among the
Net Premiums General Account and the Divisions of the Separate Account.
For any chosen allocation the minimum percentage that may be
allocated is 5% of the net premium. Percentages must be in
whole numbers. The General Account Cash Value immediately
after payment of the premium cannot exceed 1., below,
multiplied by 2., below:
1. The General Account Cash Value plus the Separate Account
Cash Value.
2. The General Account Maximum Allocation Percent as shown
on the Policy Specifications page.
The initial allocation is shown on the application, a copy
of which is attached. We may modify the General Account
Maximum Allocation Percent at any time.
For any premium received during the "right to examine
policy" period, we will initially allocate the net premium
to the Division that invests exclusively in shares of our
Money Market fund unless prohibited by state law. When this
period expires, cash value in that Division will be
transferred to the General Account and the Divisions of the
Separate Account according to the allocation percentages
shown on the application, a copy of which is attached. For
any premium received after the "right to examine policy"
period, the net premium will be allocated according to the
allocation percentages shown on the application page or your
most recent allocation instructions received by us.
Your Right You may change the allocation of future net premiums among
to Change the General Account and/or the Divisions of the Separate
Allocation Account subject to the conditions outlined in the Allocation
of the Net Premiums Provision. The change in allocation
percentages will take effect immediately upon our receipt of
your written request.
No-Lapse Period If, on a monthly anniversary day prior to the No Lapse
Premium Date, the sum of all premiums paid on this policy,
reduced by any partial withdrawals and any outstanding loan
balance, is greater than or equal to the sum of the No Lapse
Monthly Premiums for the elapsed months since the Issue
Date, this policy will not lapse as a result of a cash value
less any loans and loan interest due, being insufficient to
pay the monthly deduction. The No Lapse Premium Date and the
No Lapse Annual Premium are shown on the Policy
Specifications page. The No Lapse Monthly Premium is one
twelfth of the No Lapse Annual Premium.
Grace Period If, on a monthly anniversary day prior to the No Lapse
Premium Date:
1. The cash value less any loans and loan interest due, is
insufficient to cover the monthly deduction; and
2. The sum of all premiums paid on this policy, reduced by
any partial withdrawals and any outstanding loan
balance, is less than the sum of the No Lapse Monthly
Premiums for the elapsed months since the Issue Date;
then the grace period of 62 days will be allowed for the
payment of a premium sufficient to keep your policy in
force. The No Lapse Premium Date and the No Lapse Annual
Premium are shown on the Policy Specifications page.
A change in your policy's face amount, the addition or
deletion of a supplemental rider to this policy, or a change
in the premium class of the Insureds before the No Lapse
Premium Date shown on the Policy Specifications page may
result in a change in the No Lapse Monthly Premium. The No
Lapse Premium Date will not be changed.
---
It, on a monthly anniversary day on or after the No Lapse
Premium Date, the cash value less any loans and loan
interest due, is insufficient to cover the next monthly
deduction, a grace period of 62 days will be allowed for the
payment of a premium sufficient to pay the monthly
deduction. (Monthly deduction is defined in the Cash Values
section.)
Notice of the amount of premium required to be paid to keep
this policy in force will be sent at the beginning of the
grace period to your last known address and to any assignee
on record. If we do not receive a premium large enough so
that the net premium covers the monthly deduction by the end
of the grace period, your policy will lapse at the end of
that 62 day period and it will then terminate without cash
surrender value. If the Last Insured dies during the grace
period, any past due monthly deductions will be deducted
from the death benefit.
Reinstatement You may reinstate your lapsed policy within 5 years after
the date of lapse. This must be done prior to the younger
Insured's Attained Age 100. The policy can not be reinstated
if it has been surrendered. To reinstate, you must submit
the following items:
1. A written request for reinstatement.
2. Proof satisfactory to us that both Insureds are
Insurable by our standards, if both Insureds were alive
on the date the policy lapsed. If only one Insured was
alive on the date the policy lapsed, you must submit
proof satisfactory to us that that Insured is insurable
by our standards.
3. A net premium payment large enough to cover:
a. The monthly deductions due at the time of lapse;
and
b. Two times the monthly deduction due at the time of
reinstatement.
4. A payment to cover any Loan Interest due and unpaid at
the time of lapse.
Upon receipt of the above payments, we will deduct any
monthly deductions and loan interest due and unpaid at the
time of lapse. If both Insureds were alive on the date the
policy lapsed, both must be alive on the date we approve the
request for reinstatement. If either Insured is not alive,
such approval is void and of no effect. If only one Insured
was alive on the date the policy lapsed, that Insured must
be alive on the date we approve the request for
reinstatement. If that Insured is not alive, such approval
is void and of no effect.
The reinstated policy will be in force from the date we
approve the reinstatement application. There will be a full
monthly deduction for the policy month which includes this
date. Any application for reinstatement becomes part of the
contract of reinstatement and of this policy.
Any loan may be paid or reinstated. Any loan reinstated will
cause a cash value of an equal amount to be reinstated.
Any loan repaid at the time of reinstatement will cause an
increase in cash value equal to the amount of the repaid
loan.
Following reinstatement, the No-Lapse Period provision will
again be applicable until the No-Lapse Premium Date, shown
on the Policy Specifications page, if sufficient premium is
paid so that, as of the effective date of reinstatement, the
sum of all premiums paid, reduced by any partial withdrawals
and any loans, is greater than the No-Lapse Monthly Premiums
multiplied by the number of elapsed months since the Issue
Date.
7. LOANS
Upon written request to us, you may borrow an amount not in
excess of the loan value of your policy while it is in
force. The minimum amount of your net loan request at any
one time must be at least $500. Your policy will be the sole
security for such loan. We have the right to require your
policy for endorsement.
The loan value is the cash value of your policy at the date
of the loan request plus interest to the next policy
anniversary at the General Account Cash Value Guaranteed
Interest Rate, shown on the Policy Specifications page,
reduced by:
1. Any existing loans; and
2. Loan interest to the next loan interest due date;
and
3. Every monthly deduction due to the next loan
interest due date.
You may allocate the policy loan among the General Account
and the Divisions of the Separate Account. If you do not
specify the allocation, then the policy loan will be
allocated among the General Account and the Divisions of the
Separate Account in the same proportion that the cash value
in the General Account, and the cash value in each Division
bears to the total cash value of the policy, minus the cash
value in the Loan Account, on the date of the policy loan.
Cash value equal to the policy loan allocated to the General
Account and each Division of the Separate Account will be
transferred to the Loan Account, reducing the cash value
accordingly. Any cash value transferred to the Loan Account
will be allocated to the appropriate Loan SubAccount.
Loan Interest The accrued loan interest will be due the earliest of:
Due Date
1. The next policy anniversary date.
2. The date of termination of the policy.
3. The date the loan is repaid in full.
4. The date the loan plus loan interest accrued exceeds the
cash value.
Interest will be payable annually on each policy
anniversary. If you do not pay the interest when it is due
on a policy anniversary, an amount of cash value equal to
the loan interest will also be transferred to the Loan
Account. We will charge the same rate of interest on this
amount as on the policy loan. The amount transferred will be
deducted from the General Account and the Divisions of the
Separate Account in the same proportion that the cash value
in the General Account and the cash value in each Division
bears to the total cash value of the policy, minus the cash
value in the Loan Account.
Fixed Loan The fixed loan interest rate is 4.5% for policy years 1
Interest Rates through 10, 4.25% for policy years 11 through 20 and 4.15%
for policy years 21 and later. Loan interest is payable in
arrears.
Loan All funds received will be credited to your policy as a
Repayments premium unless clearly marked for loan repayment.
You may repay your loan in whole or in part at any time
before the death of the Last Insured while the policy is in
force. When a loan repayment is made, cash value securing
the debt in the Loan Account equal to the loan repayment
will be repaid to the General Account and the Divisions of
the Separate Account in the same proportion that the cash
value in the Loan Account bears to the cash value in each
Loan SubAccount. Unpaid loans and loan interest will be
deducted from any settlement of your policy.
If you fail to make repayments when the total loan and loan
interest due would exceed the cash value, your policy will
terminate. We will allow you a grace period for such payment
of loans and loan interest due. In such event the policy
becomes void at the end of the grace period. We will mail
notice to your last known address, and that of any assignee
of record. This grace period will expire 62 days from the
Monthly Anniversary immediately before the date the total
loan and loan interest exceeds the cash value; or 31 days
after such notice has been mailed, if later.
8. CASH VALUES
Cash Value The cash value of your policy is equal to the total of:
. The cash value in the General Account; plus
. The cash value in the Divisions of the Separate
Account; plus
. The cash value in the Loan Account.
Cash Value If this policy is in force beyond the younger Insured's
After Attained Attained Age 100, the cash value of your policy will be
Age 100 determined in the same manner as described below; except no
deductions will be made for monthly cost of insurance
charges. Premiums can not be paid after the younger Insured
Attains Age 100.
General Account The cash value in the General Account as of the Investment
Cash Value Start Date is equal to:
. The portion of the initial net premium received and
allocated to the General Account; minus
. The portion of the monthly deductions due from the Issue
Date through the Investment Start Date charged to the
General Account.
The cash value in the General Account on any day after the
Investment Start Date is equal to:
. The cash value on the preceding Valuation Date, with
interest on such value at the current rate; plus
. Any portion of net premium received and allocated to the
General Account on that day; plus
. Any amounts transferred to the General Account on that
day; plus
. Any loan repayments allocated to the General Account on
that day; plus
. That portion of any interest credited on outstanding
loans which is allocated to the General Account on that
day; minus
. Any amount transferred plus any transfer charge from the
General Account to the Divisions of the Separate Account
on that day; minus
. Any partial withdrawal plus any withdrawal transaction
charge made from the General Account on that day; minus
. Any amount transferred from the General Account to
the Loan Account on that day; minus
. If that day is a Monthly Anniversary, any withdrawal due
to a pro rata surrender plus any withdrawal transaction
charge made from the General Account on that day; minus
. If that day is a Monthly Anniversary, the portion
of the monthly deduction charged to the General Account
to cover the policy month which starts on that day.
General Account The interest credited to the General Account cash value for
Interest Rate a specific day will be at an effective annual rate not less
than the General Account cash value guaranteed interest
rate shown on the Policy Specifications page.
Separate Account The cash value in each Division of the Separate Account on
Cash Value the Investment Start Date is equal to:
. The portion of the initial net premium received and
allocated to the Division; minus
. The portion of the monthly deductions due from the Issue
Date through the Investment Start Date charged to the
Division.
The cash value in each Division of the Separate Account on
subsequent Valuation Dates is equal to:
. The cash value in the Division on the preceding
Valuation Date multiplied by that Division's net
investment factor for the current valuation period; plus
. Any portion of net premium received and allocated to the
Division during the current valuation period; plus
. Any amounts transferred to the Division from the General
Account or from another Division during the current
valuation period; plus
. Any loan repayments allocated to the Division during the
current valuation period; plus
. That portion of any interest credited on outstanding
loans which is allocated to the Division during the
current valuation period; minus
. Any amounts transferred plus any transfer charge from
the Division during the current valuation period; minus
. Any partial withdrawal plus any withdrawal transaction
charge from the Division during the current valuation
period; minus
. Any amount transferred from the Division to the Loan
Account during that valuation period; minus
. If a Monthly Anniversary occurs during the current
valuation period, any withdrawal due to a pro rata
surrender plus any withdrawal transaction charge from
the Division during the current valuation period; minus
. If a Monthly Anniversary occurs during the current
valuation period, the portion of the monthly deduction
charged to the Division during the current valuation
period to cover the policy month which starts during
that valuation period.
Net Investment The Net Investment Factor measures the investment
Factor performance of a Division during a valuation period. The Net
Investment Factor for each Division for a valuation period
is calculated as follows:
. The value of the assets at the end of the preceding
valuation period; plus
. The investment income and capital gains---realized or
unrealized---credited to the assets in the valuation
period for which the net investment factor is being
determined; minus
. The capital losses---realized or unrealized---charged
against those assets during the valuation period; minus
. Any amount charged against each Division for taxes,
including any tax or other economic burden resulting
from the application of tax laws that we determine to be
properly attributable to the Divisions of the Separate
Account, or any amount we set aside during the valuation
period as a reserve for taxes attributable to the
operation or maintenance of each Division; minus
. A charge not to exceed the daily investment percentage
shown on the Policy Specifications page for each day in
the valuation period. This corresponds to an annual
investment percentage of the mortality and expense risk
percentage shown on the Policy Specifications page;
divided by
. The value of the assets at the end of the preceding
valuation period.
Loan Account The cash value in the Loan Account as of the Investment
Cash Value Start Date is zero.
The cash value in the Loan Account on any day after the
Investment Start Date is equal to:
. The cash value in the Loan Account on the preceding
Valuation Date, with interest; plus
. Any amount transferred to the Loan Account from the
General Account on that day; plus
. Any amount transferred to the Loan Account from the
Divisions of the Separate Account on that day; minus
. Any loan repayments on that day; plus
. If that day is a policy anniversary, an amount due to
cover the loan interest, if not paid by you.
Cash value held in the Loan Account for loan collateral will
earn interest daily at an annual rate of not less than the
General Account Cash Value Guaranteed Interest Rate shown on
the Policy Specifications page. Interest credited on the
cash value held in the Loan Account will be allocated at
least once a year to the General Account and the Divisions
of the Separate Account in the same proportion that the cash
value in each Loan SubAccount bears to the cash value in the
Loan Account.
Monthly Cost The monthly cost of insurance for the following month is
of Insurance deducted on the monthly anniversary date. The monthly cost
of insurance is 1, below, multiplied by the difference
between 2 and 3 below:
1. The monthly cost of insurance rate divided by 1,000.
2. An amount as follows:
Option A Contract Type: The greater of:
a. The face amount divided by the Monthly Cost of
Insurance Factor shown on the Policy Specifications
page; or
b. The cash value at the beginning of the policy month
multiplied by the applicable percentage of the cash
value as described in Section 7702(d) of the
Internal Revenue Code of 1986 and modified for ages
95 and above.
Option B Contract Type: The greater of:
a. The face amount divided by the Monthly Cost of
Insurance Factor shown on the Policy Specifications
page plus the cash value at the beginning of the
policy month; or
b. The cash value at the beginning of the policy month
multiplied by the applicable percentage of the cash
value as described in Section 7702(d) of the
Internal Revenue Code of 1986 and modified for ages
95 and above.
Option C Contract Type: The greater of:
a. The face amount divided by the Monthly Cost of
Insurance Factor shown on the Policy Specifications
page; or
b. The cash value at the beginning of the policy month
multiplied by the younger Insured's attained age
factor as shown on the policy's Death Benefit Option
C Attained Age Factors page.
3. The cash value at the beginning of the policy month,
before the deduction of the monthly cost of insurance.
Monthly Cost At the beginning of each policy year, the monthly cost of
of Insurance insurance rate is determined. The monthly cost of insurance
Rates rate is based on the Attained Ages, risk classifications,
and completed policy years from the Issue Date.
The monthly cost of insurance rates will never exceed the
rates shown on the Table of Guaranteed Monthly Cost of
Insurance Rates page. Any change in the cost of insurance
rates will apply to all persons of the same age and
classification whose face amounts have been in force for the
same length of time.
Selection and The selection and issue expense charge is a monthly charge
Issue Expense for the first 10 policy years. This charge equals the face
Charge amount times a selection and issue expense charge rate,
divided by 1,000. The selection and issue expense charge is
based on the Insureds' Issue Ages and risk classifications
on the Issue Date. The selection and issue expense charge
rate will never exceed the Maximum Selection and Issue
Expense Charge Rate shown on the Policy Specifications page.
Monthly Policy A policy charge will be deducted each policy month from the
Charge cash value. The amount of the monthly policy charge will
never exceed the amount shown on the Policy Specifications
page.
Monthly The monthly deduction is:
Deduction
1. The monthly cost of insurance; plus
2. The selection and issue expense charge multiplied
by the face amount divided by 1,000; plus
3. The monthly policy charge; plus
4. The monthly cost, if any, for any rider included
with this policy.
The monthly deduction for a policy month will be allocated
among the General Account and the Divisions of the Separate
Account in the same proportion that the cash value in the
General Account and the cash value in each Division bears to
the total cash value of the policy, minus the cash value in
Loan Account on the Monthly Anniversary.
Cash Surrender The cash surrender value of this policy is:
Value
1. The cash value at the time of surrender; minus
2. Any loan and loan interest accrued; minus
3. Any unpaid selection and issue expense charge due
for the remainder of the first policy year; minus
4. Any unpaid monthly policy charge due for the
remainder of the first policy year.
Surrender You may surrender your policy for its cash surrender value
at any time during the lifetime of either Insured. We will
determine the cash surrender value as of the date we receive
your written request at our home office. The cash surrender
value will not be reduced by any monthly deduction due on
that date for a subsequent policy month.
Partial After the first policy year, upon written request to us, you
Withdrawals can make a partial withdrawal of cash subject to the
conditions listed below. The first 12 requested partial
withdrawals or transfers per policy year will be allowed
free of charge; thereafter we may impose a transfer charge
not to exceed the Maximum Transfer Charge shown on the
Policy Specifications page.
No partial withdrawal will be processed which will result in
the face amount, excluding riders, being decreased below the
Minimum Face Amount shown on the Policy Specifications page.
We reserve the right to change the minimum amount or the
number of times you may make a partial withdrawal. We also
may assess a transaction charge for a withdrawal.
If the Contract Type is Option A or Option C and the death
benefit equals the face amount, then a partial withdrawal
will decrease the face amount by an amount equal to the
partial withdrawal. If the death benefit equals a percentage
of the cash value then a partial withdrawal will decrease
the face amount by any amount by which the partial
withdrawal exceeds the difference between the death benefit
and the face amount.
General Account The minimum amount of your partial withdrawal request at any
Partial one time must be at least $500 of your account.
Withdrawals
. The maximum amount of all partial withdrawals and
transfers from the General Account in a policy
year will be the greater of (1) or (2):
1. The cash surrender value of the General Account at
the beginning of that policy year multiplied by the
withdrawal percentage limit, as shown on the Policy
Specifications page.
2. The previous year's General Account maximum
withdrawal amount.
Separate Account . The minimum amount of your partial withdrawal request at
Partial any one time must be the lesser of $500 of a Division or
Withdrawals your entire balance in that Division.
. The maximum amount of your partial withdrawal from any
one of the Divisions of the Separate Account in a policy
year will be the cash surrender value of that Division.
Allocation You may allocate the partial withdrawal, subject to the
of Partial above conditions, among the General Account and the
Withdrawals Divisions of the Separate Account. If you do not specify the
allocation, then the partial withdrawal will be allocated
among the General Account and the Divisions of the Separate
Account in the same proportion that the cash value in the
General Account and the cash value in each Division bears to
the total cash value of the policy, minus the cash value in
the Loan Account on the date of the partial withdrawal. If
the General Account conditions will not allow this
proportionate allocation, we will request that you specify
an acceptable allocation.
Pro Rata After the first policy year, upon written request to us, you
Surrender can make a pro rata surrender of your policy. The pro rata
surrender can be any whole number percentage of your policy.
The pro rata surrender will reduce the face amount and the
cash value by the percentage chosen. The face amount
decrease will be subject to the following conditions:
1. The decrease will become effective on the monthly
anniversary on or following our receipt of the request.
2. You may allocate the decrease in cash value due to the
pro rata surrender among the General Account and the
Divisions of the Separate Account. If you do not specify
the allocation, then the decrease in cash value will be
allocated among the General Account and the Divisions of
the Separate Account in the same proportion that the
cash value in the General Account and the cash value in
each Division bears to the total cash value of the
policy, minus the cash value in the Loan Account on the
date of the pro rata surrender.
A pro rata surrender can not be processed if it will reduce
the face amount below the Minimum Face Amount shown on the
Policy Specifications page. No pro rata surrender will be
processed for more cash surrender value than is available on
the date of the pro rata surrender. A cash payment will be
made to you for the amount of the cash value reduction.
Postponement We will usually pay any amounts payable on surrender,
of Payments partial withdrawal, or policy loan allocated to the
or Transfers Divisions of the Separate Account within seven days after
written notice is received. We will usually pay any death
benefit proceeds upon the Last Insured's death within seven
days after we receive due proof of claim. Payment of any
amount payable, from the Divisions of the Separate Account,
on surrender, partial withdrawal, policy loan or death may
be postponed whenever:
1. The New York Stock Exchange is closed (other than
customary weekend and holiday closing) or trading
on the New York Stock Exchange is restricted as
determined by the SEC;
2. The SEC, by order, permits postponement for the
protection of policy owners; or
3. An emergency exists as determined by the SEC, as a
result of which disposal of securities is not
reasonably practicable or it is not reasonably
practicable to determine the value of the net
assets of the Separate Account.
We may defer payment of the portion of any amount payable
from the General Account on surrender or partial withdrawal
for not more than six months. If we defer payment for 30
days or more, we will pay interest at the rate of 2 1/2% per
year for the period of deferment.
Transfers may also be postponed under the circumstances
listed above.
We may defer payment of the portion of any policy loan from
the General Account for not more than six months. No payment
from the General Account to pay premiums on this policy will
be deferred.
Continuation If all premium payments cease, the insurance provided under
of Insurance this policy, including benefits provided by any rider
attached to this policy, will continue in accordance with
the provisions of this policy for as long as the cash value
less any loans and loan interest accrued is sufficient to
cover the monthly deductions.
Basis of The minimum cash values are based on 1) the Minimum Cash
Computation Value Mortality Table shown on the Policy Specifications
page; and 2) for amounts allocated to the General Account,
compound interest at an annual rate of not less than the
General Account Cash Value Guaranteed Interest Rate shown on
the Policy Specifications page. There is no minimum cash
value guaranteed interest rate for amounts allocated to the
Divisions of the Separate Account.
Net single premiums are based on 1) the 7702 Table as shown
on the Policy Specifications page; and 2) the General
Account Cash Value Guaranteed Interest Rate as shown on the
Policy Specifications page.
All values are at least equal to those required by any
applicable law of the state that governs your policy. We
have filed a detailed statement of the method of calculating
cash values and reserves with the insurance supervisory
official of that state.
9. PAYMENT OF POLICY BENEFITS
Payment A lump sum payment will be made as provided on the face
page.
Interest on We will pay interest on proceeds from the date of the Last
Proceeds Insured's death to the date of payment. Interest will be at
an annual rate determined by us, but never less than the
Guaranteed Interest Rate, shown on the Policy Specifications
page.
Extended Provisions for settlement of proceeds different from a lump
Provisions sum payment may only be made upon written agreement with us.
JOINT AND LAST SURVIVOR
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
(Unisex)
Non-Participating
[LOGO OF PARAGON LIFE INSURANCE COMPANY APPEARS HERE]
ANNIVERSARY PARTIAL WITHDRAWAL RIDER
Joint and Last Survivor - Variable Life
Issued by Paragon Life Insurance Company
This rider is a part of the policy and is subject to all applicable terms and
provisions of the policy; except as modified herein.
Prior to the younger Insured's Attained Age 95, this rider replaces the Partial
Withdrawals, the General Account Partial Withdrawals and the Separate Account
Partial Withdrawals provisions with the following:
You can make a partial withdrawal of cash on any policy anniversary
date prior to the younger Insured's Attained Age 95. The amount of the
partial withdrawal may not exceed the greater of:
1. The increase in cash surrender value since the preceding policy
anniversary; or
2. The cash surrender value at the beginning of that policy year
multiplied by the Anniversary Partial Withdrawal Percentage
Limit, shown on the Policy Specifications page.
A partial withdrawal will not be processed for more cash than is available in
the cash surrender value on the date of the partial withdrawal.
The minimum amount for a partial withdrawal request from the General Account
must be at least $500.00.
The minimum amount for a partial withdrawal request from the Separate Account
must be the lesser of $500.00 of a Division; or your entire balance in that
Division.
When the younger Insured reaches Attained Age 95, this rider will terminate and
the Partial Withdrawals, the General Account Partial Withdrawals and the
Separate Account Partial Withdrawals provisions as described in the policy will
become effective. You may terminate this rider prior to the younger Insured's
Attained Age 95, by sending us a written request.
The Issue Date and the effective date of this rider and the policy are the same
unless another effective date is shown below.
- -------------------------
DATE
/s/ Matthew P. McCauley /s/ Carl H. Anderson
V.P., GENERAL COUNSEL PRESIDENT
AND SECRETARY
[LOGO OF PARAGON LIFE INSURANCE COMPANY APPEARS HERE]
DIVORCE SPLIT POLICY OPTION RIDER
Issued by Paragon Life Insurance Company
This rider is a part of the policy to which it is attached and is subject to all
applicable terms and provisions of the policy; except as modified herein.
Split Policy This benefit is subject to the restrictions and provisions
Option Benefit of this rider. This benefit provides you with an option to
exchange the policy to which this rider is attached for two
individual policies, one on each of the lives insured, upon
the occurrence of the contingent event.
Contingent The option may be exercised when there is a divorce between
Event the two insureds insured by the policy to which this rider
is attached.
Election of To elect this option, you must notify us within 90 days of
The Option the final divorce decree by sending us a copy of such
decree.
If this option is elected, no evidence of insurability will
be required on either insured under the new policies.
Effective Date If this option is elected, the effective date of the
Of The Exchange exchange will be the first monthaversary following the
date you notify us that you elect this option. Both insureds
must be alive on the effective date of the exchange. In
addition, the existing policy can not be in its grace period
in order for the exchange to occur.
The New The exchange must be to flexible premium adjustable life
Policies policies which are available at the time of the exchange.
Riders may be exchanged if available on the new policies.
Both issue dates of the new policies will be the effective
date of the exchange. The face amount of each new policy
will be one half of the face amount of this policy. The cash
surrender value of this policy will be divided in half and
allocated to each new policy. The rates for each new policy
will be based on:
1. the attained age as of the effective date of the
exchange; and
2. (in a non-unisex policy) sex; and
3. the same, if available, or the nearest comparable
risk classification for this policy for each
individual life insured under this policy.
Loans Any loan and loan interest due must be repaid on the date of
the exchange.
Assignments If any assignment of this policy is in effect on the date of
the exchange, it will apply to each new policy.
Termination This rider will terminate when any of the following events
Of Rider first occur:
1. The lapse of this policy; or
2. The surrender of this policy; or
3. The death of the first insured under this policy;
or
4. The election to exchange this policy under this
rider.
/s/ Matthew P.McCauley /s/ Carl H.Anderson
V.P., GENERAL COUNSEL PRESIDENT
AND SECRETARY
[LOGO OF PARAGON LIFE INSURANCE COMPANY APPEARS HERE]
SPLIT POLICY OPTION RIDER
Issued by Paragon Life Insurance Company
This rider is a part of the policy to which it is attached and is subject to all
applicable terms and provisions of the policy; except as modified herein.
Split Policy This benefit is subject to the restrictions and provisions
Option Benefit of this rider. This benefit provides you with an option to
exchange this policy, exclusive of any riders attached to
it, for two individual policies, one on each of the lives
insured, upon the occurrence of the contingent event.
Contingent The option may be exercised when there is a change to the
Event Federal Estate Tax Law which results in the occurrence of
either 1. or 2. below:
1. removal of the unlimited marital deduction
provision; or
2. reduction of at least 50% in the level of estate
taxes payable on the death of the last insured.
Election of To elect this option, you must notify us in writing within
The Option 180 days after you receive our notification that the Federal
Estate Tax Law has changed.
If this option in elected, no evidence of insurability will
be required on either insured under the new policies.
Effective Date If this option is elected, the effective date of the
Of The Exchange exchange will be the first policy anniversary following the
date you notify us that you elect this option.
The effective date of the new policies will be the
termination date of this policy.
The New The exchange must be to flexible premium adjustable life
Policies policies which are available at the time of the exchange.
Riders may be exchanged if available on the new policies.
Both issues dates of the new policies will be the effective
date of the exchange. The face amount of each new policy
will be one half of the face amount of this policy. The cash
surrender value of this policy will be divided in half and
allocated to each new policy. The rates for each new policy
will be based on:
1. the attained age as of the effective date of the
exchange; and
2. (in a non-unisex policy) sex; and
3. the same, if available, or the nearest comparable
risk classification for this policy
for each individual life insured under this policy.
Loans Any loan and loan interest due must be repaid on the date of
the exchange.
Assignments If any assignment of this policy is in effect on the date of
the exchange, it will apply to each new policy.
Transactions On The following transactions will occur on the date of the
The Effective exchange:
Date Of The
Exchange
1. The cash surrender value of this policy will be
divided in half and allocated to each new policy.
2. The excess of the reserve of each new policy over
the amount of allocated cash surrender value from
this policy must be paid by each insured. The
reserve of each new policy will be based on the
issue age of each insured as of the policy date
and the duration that this policy has been in
force. If the state has a premium tax, you will
need to pay us the amount of tax on this excess.
3. In the event that the allocated cash surrender
value from this policy is greater than the reserve
value of each new policy, the excess will be
applied against premiums due under the new
policies.
4. Premiums will be due for each new policy as of the
effective date of the exchange.
5. You must pay any administrative costs required to
handle the exchange.
1
Termination This rider will terminate when any of the following events
Of Rider first occur:
1. The lapse of this policy; or
2. The surrender of this policy; or
3. The maturity of this policy; or
4. The death of the first insured to die under this
policy; or
5. The election to exchange this policy under this
rider.
/s/ Matthew P. McCauley /s/ Carl H. Anderson
V.P., GENERAL COUNSEL PRESIDENT
AND SECRETARY
[LOGO OF PARAGON LIFE INSURANCE COMPANY APPEARS HERE]
2
ESTATE PRESERVATION TERM RIDER
Issued by Paragon Life Insurance Company
Please Read This Rider Carefully.
This rider is a part of the policy to which it is attached and is subject to all
applicable terms and provisions of the policy; except as modified herein. This
rider is indicated on the Policy Specifications page.
Face Amount The face amount of this rider is shown on the policy
specifications page.
Life Insurance This rider provides four year level non-convertible term
Benefit life insurance on the lives of the Insureds shown on the
policy specifications page. We will pay the face amount of
this rider to the beneficiary if this rider is in force upon
the Last Insured's death. We must receive proof that both
Insureds died before the expiration date of this rider.
Monthly Rider The monthly rider charge equals the rider's face amount
Charge times the monthly rider charge rate, divided by 1,000. This
rider's monthly rider charge rate is shown on the policy
specifications page. The monthly rider charge is based on
the joint issue ages, risk classifications, and sexes of the
Insureds.
Termination This rider will terminate on the date when any of the
following events first occurs:
1. Upon our receipt of your written request;
2. A decrease in face amount occurs;
3. Any termination of the policy;
4. The end of the fourth policy year.
The date of issue and effective date of this rider and the policy are the same.
/s/ Matthew P. McCauley /s/ Carl H. Anderson
V.P., GENERAL COUNSEL PRESIDENT
AND SECRETARY
[LOGO OF PARAGON LIFE INSURANCE COMPANY APPEARS HERE]
LIFETIME COVERAGE RIDER
Joint and Last Survivor
If this rider is offered and accepted, it will become a part of the policy. This
rider is subject to all applicable terms and provisions of the policy, except as
modified herein. The Policy Specifications page, or if this rider is added after
issue, the Policy Specifications page for Policy Change, shows the rider
information.
Cost of The monthly rider cost of insurance is the Monthly Rider
Insurance Cost of Rate Insurance shown on the Policy Specifications
page, divided by 1000, multiplied by the difference between:
1. the Death Benefit, as defined in the policy,
divided by the Monthly Cost of Insurance Factor
shown on the Policy Specifications page; and
2. the Cash Value of the policy at the beginning of
the policy month, before the deduction of the
Monthly Cost of Insurance.
The monthly charge will be deducted from the policy's Cash
Value. Deduction will start at the younger Insured's
Attained Age 80 and continue through the younger Insured's
age 99.
Death Benefit If this rider is in force, the Death Benefit, after the
younger Insured's Attained Age 100, is the greater of:
1. The Face Amount of the base policy; or
2. 101% of the Cash Value.
Reinstatement If this rider terminates after the younger Insured's
Attained Age 80, it may not be reinstated.
Termination This rider will terminate upon the earlier of:
a. a written request to us for termination;
b. the date of termination of the policy to which
this rider is attached.
Continuation Once this rider has terminated, the base policy may continue
of Insurance in accordance with the provisions of the base policy but
without the benefit provided by this rider.
The date of issue and effective date of this rider and the policy are the same
unless another effective date of this rider is shown below.
- ---------------------
DATE
/s/ Matthew P.McCauley /s/ Carl H. Anderson
V.P., GENERAL COUNSEL PRESIDENT
AND SECRETARY
[LOGO OF PARAGON LIFE INSURANCE COMPANY APPEARS HERE]
SECONDARY GUARANTEE RIDER
Joint and Last Survivor
If this rider is listed on the Policy Specifications page, it is part of the
policy. This rider is subject to all applicable terms and provisions of the
policy, except as modified herein.
Cost of The monthly rider cost of insurance is the Monthly Rider
Insurance Cost of Insurance Rate shown on the Policy Specifications
page, divided by 1000, multiplied by the difference between:
1. the Death Benefit divided by the Monthly Cost of
Insurance Factor shown on the Policy Specifications
page; and
2. the Cash Value of the base policy at the beginning of
the policy month, before the deduction of the
Monthly Cost of Insurance.
Death Benefit The Death Benefit is the greater of:
1. The Face Amount of the base policy; or
2. The Death Benefit otherwise provided by the base policy.
Notwithstanding anything in this policy, the Death Benefit
will in no case be less than the amount necessary to cause
the policy to meet the requirements for the definition of
life insurance under the Internal Revenue Code of 1986 or
any applicable successor.
Guarantee If, on a Monthly Anniversary day prior to the Secondary
Death Benefit Guarantee Date, shown on the Policy Specifications page:
Period
a. the sum of all premiums paid on this policy; less
b. any Partial Withdrawals; less
c. any outstanding loan balance;
Is greater than or equal to the sum of the Secondary
Guarantee Premium for the elapsed months since the Issue
Date, this policy will not lapse even if your Cash Surrender
Value is not sufficient to cover the Monthly Deduction on a
Monthly Anniversary day.
Policy Changes If there is a decrease in Face Amount prior to the tenth
policy anniversary the Secondary Guarantee Premium will not
be changed. If there is a decrease after the tenth policy
anniversary, we will reduce the future Secondary Guarantee
Premium by an amount proportionate to the decrease in Face
Amount. We will provide you with a new Policy Specifications
page.
If additional riders are added or cancelled we may adjust
the Secondary Guarantee Premium. We will provide you with a
new Policy Specifications page.
If the Death Benefit option of the policy is changed we will
adjust the future Secondary Guarantee Premium. We will
provide you with a new Policy Specifications page.
Guarantee If on a Monthly Anniversary day prior to the Secondary
Grace Period Guarantee Date, the sum of all premiums paid on this policy,
reduced by any Partial Withdrawals and any outstanding loan
balance, is less than the sum of the Secondary Guarantee
Premiums for the elapsed months since the Issue Date, then
the Guarantee Grace Period of 62 days will be allowed for
the payment of a premium sufficient to keep this rider in
force. The Secondary Guarantee Date and the Secondary
Guarantee Premium are shown on the Policy Specifications
page.
Notice of the amount of premium required to be paid to keep
this rider in force will be sent at the beginning of the
Guarantee Grace Period to the last known address of the
Owner and of any assignee of record. If we do not receive
the premium required by the end of the Guarantee Grace
Period this rider will terminate and the guarantee provided
by this rider will no longer be in effect. If the premium
requirement is not met and death occurs during the Guarantee
Grace Period, there is no deduction of the rider premium
required from the Death Benefit.
1
Misstatement If there is a Misstatement of Age or Sex for either Insured
of Age or in the application and such determination is made prior to
Sex the death of the Last Insured and while this rider is in
effect, then the Secondary Guarantee Premium will be that
amount which corresponds to the Face Amount, as adjusted
under the policy, using the correct age and/or sex. The
Account Value will not change at the point of correction.
Secondary The date the Secondary Guarantee Rider expires. This date is
Guarantee shown on the Policy Specifications page.
Date
Secondary The premium required to keep the Secondary Guarantee Rider
Guarantee in force. This premium is shown on the Policy Specifications
Premium page.
Premium We will not restrict payment of any premium which is
Limitations ---
required to maintain this rider in force because such
payment will cause the Death Benefit to increase by an
amount that exceeds the premium received. We will restrict
any premium payment that would cause the policy to fail the
definition of life insurance as defined by Section 7702 of
the Internal Revenue Code of 1986 or any applicable
successor.
Reinstatement If this rider terminates it may not be reinstated.
Termination This rider will terminate as of any Monthly Anniversary
following a written request to us or upon the earlier of:
a. the death of the Last Insured;
b. the date of termination of the policy to which this
rider is attached;
c. the end of the Guarantee Grace Period following our
notice to you that the premium requirement was not met;
d. the Secondary Guarantee Date shown on the Policy
Specifications page;
e. the date a Change of Insured, on the policy to which
this rider is attached, is executed.
Continuation Once this rider has terminated, the base policy may continue
of Insurance in accordance with the provisions of the base policy but
without the benefit provided by this rider.
/s/ Matthew P. McCauley /s/ Carl H. Anderson
V.P. GENERAL COUNSEL
AND SECRETARY PRESIDENT
[LOGO OF PARAGON LIFE INSURANCE COMPANY APPEARS HERE]
2
SECONDARY GUARANTEE RIDER
Joint and Last Survivor
(Unisex)
If this rider is listed on the Policy Specifications page, it is part of the
policy. This rider is subject to all applicable terms and provisions of the
policy, except as modified herein.
Cost of The monthly rider cost of insurance is the Monthly Rider
Insurance Cost of Insurance Rate shown on the Policy Specifications
page, divided by 1000, multiplied by the difference between:
1. the Death Benefit divided by the Monthly Cost of
Insurance Factor shown on the Policy
Specifications page; and
2. the Cash Value of the base policy at the beginning of
the policy month, before the deduction of the
Monthly Cost of Insurance.
Death Benefit The Death Benefit is the greater of:
1. The Face Amount of the base policy; or
2. The Death Benefit otherwise provided by the base
policy.
Notwithstanding anything in this policy, the Death Benefit
will in no case be less than the amount necessary to cause
the policy to meet the requirements for the definition of
life insurance under the Internal Revenue Code of 1986 or
any applicable successor.
Guarantee If, on a Monthly Anniversary day prior to the Secondary
Death Benefit Guarantee Date, shown on the Policy Specifications page:
Period
a. the sum of all premiums paid on this policy; less
b. any Partial Withdrawals; less
c. any outstanding loan balance;
is greater than or equal to the sum of the Secondary
Guarantee Premium for the elapsed months since the Issue
Date, this policy will not lapse even if your Cash Surrender
Value is not sufficient to cover the Monthly Deduction on a
Monthly Anniversary day.
Policy Changes If there is a decrease in Face Amount prior to the tenth
policy anniversary the Secondary Guarantee Premium will not
be changed. If there is a decrease after the tenth policy
anniversary, we will reduce the future Secondary Guarantee
Premium by an amount proportionate to the decrease in Face
Amount. We will provide you with a new Policy Specifications
page.
If additional riders are added or cancelled we may adjust
the Secondary Guarantee Premium. We will provide you with a
new Policy Specifications page.
If the Death Benefit option of the policy is changed we will
adjust the future Secondary Guarantee Premium. We will
provide you with a new Policy Specifications page.
Guarantee If on a Monthly Anniversary day prior to the Secondary
Grace Period Guarantee Date, the sum of all premiums paid on this policy,
reduced by any Partial Withdrawals and any outstanding loan
balance, is less than the sum of the Secondary Guarantee
Premiums for the elapsed months since the Issue Date, then
the Guarantee Grace Period of 62 days will be allowed for
the payment of a premium sufficient to keep this rider in
force. The Secondary Guarantee Date and the Secondary
Guarantee Premium are shown on the Policy Specifications
page.
Notice of the amount of premium required to be paid to keep
this rider in force will be sent at the beginning of the
Guarantee Grace Period to the last known address of the
Owner and of any assignee of record. If we do not receive
the premium required by the end of the Guarantee Grace
Period this rider will terminate and the guarantee provided
by this rider will no longer be in effect. If the premium
requirement is not met and death occurs during the Guarantee
Grace Period, there is no deduction of the rider premium
required from the Death Benefit.
1
Misstatement If there is a Misstatement of Age for either Insured in the
of Age application and such determination is made prior to the
death of the Last Insured and while this rider is in effect,
then the Secondary Guarantee Premium will be that amount
which corresponds to the Face Amount, as adjusted under the
policy, using the correct age. The Account Value will not
change at the point of correction.
Secondary The date the Secondary Guarantee Rider expires. This date is
Guarantee shown on the Policy Specifications page.
Date
Secondary The premium required to keep the Secondary Guarantee Rider
Guarantee in force. This premium is shown on the Policy Specifications
Premium Page.
Premium We will not restrict payment of any premium which is
Limitations ---
required to maintain this rider in force because such
payment will cause the Death Benefit to increase by an
amount that exceeds the premium received. We will restrict
any premium payment that would cause the policy to fail the
definition of life insurance as defined by Section 7702 of
the Internal Revenue Code of 1986 or any applicable
successor.
Reinstatement If this rider terminates it may not be reinstated.
Termination This rider will terminate as of any Monthly Anniversary
following a written request to us or upon the earlier of:
a. the death of the Last Insured;
b. the date of termination of the policy to which this
rider is attached;
c. the end of the Guarantee Grace Period following our
notice to you that the premium requirement was not met;
d. the Secondary Guarantee Date shown on the Policy
Specifications page;
e. the date a Change of Insured, on the policy to which
this rider is attached, is executed.
Continuation Once this rider has terminated, the base policy may continue
of Insurance in accordance with the provisions of the base policy but
without the benefit provided by this rider.
/s/ Matthew P. McCauley /s/ Carl H. Anderson
V.P., GENERAL COUNSEL
AND SECRETARY PRESIDENT
[LOGO OF PARAGON LIFE INSURANCE COMPANY APPEARS HERE]
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