Exhibit 1.A.5(b)
NEW ENGLAND LIFE
INSURANCE COMPANY POLICY NUMBER:
BOSTON, MASSACHUSETTS 02116 [16,000,001]
INSURED:
[JOHN DOE]
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
NON-PARTICIPATING
Flexible Premiums are payable during the lifetime of the Insured to Attained Age
100. Upon our receipt of proof of the Insured's death, we will pay the Policy
Proceeds to the Beneficiary. This Policy must be in force. We may request that
the Policy be returned to us after 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 IN THE POLICY BENEFITS
SECTION.
THE POLICY'S CASH VALUE CAN VARY FROM DAY TO DAY. IT CAN INCREASE OR DECREASE,
DEPENDING ON THE VARIABLE ACCOUNT INVESTMENT EXPERIENCE AND ON THE FIXED ACCOUNT
INTEREST. SEE THE VARIABLE ACCOUNT CASH VALUE PROVISION AND THE FIXED ACCOUNT
CASH VALUE PROVISION.
RIGHT TO EXAMINE POLICY
You may return this Policy or an increase in Face Amount to us or to one of our
agents within [10] days from the date you receive it. If you return the Policy
within this period, we will refund any premium paid and the Policy will be void
from the start. If you return an increase in Face Amount within this period, we
will restore to this Policy's Cash Value the Monthly Deductions for the
increase.
This Policy is a legal contract between the Policy Owner and New England Life
Insurance Company. PLEASE READ YOUR CONTRACT CAREFULLY.
Signed for the Company at its Home Office, [Boston, Massachusetts 02116
(1-800-388-4000)]
ABCD ABCD
President Secretary
ALPHABETIC GUIDE TO YOUR CONTRACT
Section Section
4 Addition, Deletion or Substitution of 8 Monthly Administration and Issue Expense
Investments Charge
6 Allocation of Net Premiums 8 Monthly Cost of Insurance
8 Asset Charge 8 Monthly Cost of Insurance Rates
2 Assignments 8 Monthly Deduction
8 Basis of Computation 8 Monthly Policy Charge
2 Beneficiary 8 Net Investment Factor
8 Cash Surrender Value 6 Net Premium
8 Cash Values 6 No Lapse Period
8 Cash Value on or After Attained Age 100 2 Owner
5 Change in Death Benefit Option 8 Partial Withdrawals
5 Change in Face Amount 9 Payment of Policy Benefits
3 Change of Insured 6 Payment of Premiums
2 Change of Owner or Beneficiary 6 Percent of Premium Charge
3 Claims of Creditors 10 Payment Options
5 Continuation of the Policy Beyond 5 Policy Changes
Attained Age 100 1 Policy Date
3 Contract 5 Policy Proceeds
3 Conversion Rights 8 Postponement of Payments or Transfers
5 Death Benefit 6 Premium Tax Charge
1 Definitions 6 Reinstatement
5 Definition of Life Insurance 2 Requests for Changes and/or
6 Federal Tax Charge Information
8 Fixed Account Cash Value 3 Statements in Application
8 Fixed Account Interest Rate 4 SubAccounts
6 Grace Period 3 Suicide Exclusion
3 Incontestability 8 Surrender
1 Issue Date 8 Surrender Charge
11 Life Income Tables 4 Transfer
8 Loan Account Cash Value 3 Unisex Basis
7 Loans 8 Variable Account Cash Value
3 Misstatement of Age or Sex and 4 Variable Account Provisions
Corrections 8 Variable Accumulation Units
Additional Benefit Riders, Modifications and Amendments, if any, and a copy of
the Application are found following the final section.
POLICY SPECIFICATIONS
GENERAL POLICY SPECIFICATIONS
INSURED [JOHN DOE]
POLICY NUMBER [16,000,001] PLANNED ANNUAL PREMIUM:
ISSUE DATE [JANUARY 1, 2002] 1ST YEAR [$800.00]
POLICY DATE [JANUARY 1, 2002] YEAR 2 [$800.00]
DEATH BENEFIT OPTION [OPTION A] QUALIFIED ROLLOVER PREMIUM [$0.00]
INSURED AGE [35] NO LAPSE ANNUAL PREMIUM [$355.32]
SEX [MALE] NO LAPSE PREMIUM DATE [JANUARY 1, 2007]
MAXIMUM PREMIUM TAX CHARGE [2.5%]
MAXIMUM FEDERAL TAX CHARGE [1.25%]
MAXIMUM PERCENT OF PREMIUM CHARGE [5%]
MAXIMUM PERCENT OF PREMIUM CHARGE
QUALIFIED ROLLOVER PREMIUM [0%]
BENEFITS - AS SPECIFIED IN POLICY AND IN ANY RIDER AT ISSUE
POLICY PLAN FACE AMOUNT RISK
CLASSIFICATION
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE:
[$50,000] [STANDARD SMOKER]
POLICY SPECIFICATIONS (CONTINUED)
VARIABLE ACCOUNT
[VARIABLE LIFE
SEPARATE ACCOUNT]
MAXIMUM NUMBER OF ACCOUNTS ON THE INVESTMENT START DATE [25]
MAXIMUM NUMBER OF ACCOUNTS AFTER THE INVESTMENT START DATE [49]
FIXED ACCOUNT CASH VALUE GUARANTEED INTEREST RATE [3%]
FIXED ACCOUNT MAXIMUM ALLOCATION PERCENT [100%]
FIXED ACCOUNT MAXIMUM WITHDRAWAL PERCENT LIMIT [25%]
MONTHLY DISCOUNT FACTOR [1.0024663]
MAXIMUM MONTHLY ASSET CHARGE PERCENTAGE:
YEARS 1 - 10 [0.0583333%]
YEARS 11 - 20 [0.0291667%]
YEARS 21 + [0.0208333%]
MAXIMUM ANNUAL ASSET CHARGE PERCENTAGE:
YEARS 1 - 10 [0.70%]
YEARS 11 - 20 [0.35%]
YEARS 21 + [0.25%]
MAXIMUM MONTHLY POLICY CHARGE:
1ST YEAR [$25.00]
YEARS 2 + [$6.00]
MAXIMUM MONTHLY ADMINISTRATION AND ISSUE EXPENSE
CHARGE RATE:
YEARS 1 - 10 [$0.1501]
YEARS 11 + [$0]
MAXIMUM LOAN INTEREST CHARGE RATE [3.50%]
MINIMUM LOAN AND WITHDRAWAL AMOUNT [$500.00]
MAXIMUM NUMBER OF TRANSFERS OR WITHDRAWALS [12]
MINIMUM FACE AMOUNT [$50,000]
MINIMUM FACE AMOUNT INCREASE [$10,000]
MINIMUM FACE AMOUNT DECREASE [$10,000]
MAXIMUM FACE AMOUNT INCREASE ADMINISTRATION CHARGE [$100.00]
MAXIMUM PROCESSING CHARGE [$25.00]
GUARANTEED INTEREST RATE ON PROCEEDS [3.0%]
7702 TABLE [1980 CSO MORTALITY TABLE FOR A MALE
SMOKER,
AGE NEAREST BIRTHDAY]
BASIS OF COMPUTATION [1980 CSO MORTALITY TABLE FOR A MALE
OF MINIMUM CASH VALUES SMOKER,
AGE NEAREST BIRTHDAY]
BASIS OF COMPUTATION INTEREST RATE [4.0%]
IF THE INITIAL PREMIUM PAID AND SUBSEQUENT PREMIUMS PROVE TO BE TOO LOW,
COVERAGE PROVIDED BY THIS POLICY MAY CEASE.
SURRENDER CHARGE SCHEDULE
INSURED: [JOHN DOE]
COVERAGE: [FPVL]
FACE AMOUNT: [$50,000]
ISSUE DATE: [JANUARY 1, 2002]
POLICY NUMBER: [16,000,001]
MAXIMUM MAXIMUM MAXIMUM
POLICY SURRENDER POLICY SURRENDER POLICY SURRENDER
MONTH CHARGE MONTH CHARGE MONTH CHARGE
1-12 220.05 48 146.70 84 73.35
13 218.01 49 144.66 85 71.31
14 215.98 50 142.63 86 69.28
15 213.94 51 140.59 87 67.24
16 211.90 52 138.55 88 65.20
17 209.86 53 136.51 89 63.16
18 207.83 54 134.48 90 61.13
19 205.79 55 132.44 91 59.09
20 203.75 56 130.40 92 57.05
21 201.71 57 128.36 93 55.01
22 199.68 58 126.33 94 52.98
23 197.64 59 124.29 95 50.94
24 195.60 60 122.25 96 48.90
25 193.56 61 120.21 97 46.86
26 191.53 62 118.18 98 44.83
27 189.49 63 116.14 99 42.79
28 187.45 64 114.10 100 40.75
29 185.41 65 112.06 101 38.71
30 183.38 66 110.03 102 36.68
31 181.34 67 107.99 103 34.64
32 179.30 68 105.95 104 32.60
33 177.26 69 103.91 105 30.56
34 175.23 70 101.88 106 28.53
35 173.19 71 99.84 107 26.49
36 171.15 72 97.80 108 24.45
37 169.11 73 95.76 109 22.41
38 167.08 74 93.73 110 20.38
39 165.04 75 91.69 111 18.34
40 163.00 76 89.65 112 16.30
41 160.96 77 87.61 113 14.26
42 158.93 78 85.58 114 12.23
43 156.89 79 83.54 115 10.19
44 154.85 80 81.50 116 8.15
45 152.81 81 79.46 117 6.11
46 150.78 82 77.43 118 4.08
47 148.74 83 75.39 119 2.04
120 0.00
TABLE OF MAXIMUM MONTHLY COST OF INSURANCE RATES
RATES ARE PER $1,000
INSURED: [JOHN DOE]
COVERAGE: [FPVL]
FACE AMOUNT: [$50,000]
ISSUE DATE: [JANUARY 1, 2002]
POLICY NUMBER: [16,000,001]
ATTAINED AGE RATE ATTAINED AGE RATE ATTAINED AGE RATE
35 0.2192 57 1.5075 79 9.4575
36 0.2342 58 1.6408 80 10.1325
37 0.2533 59 1.7792 81 10.8675
38 0.2750 60 1.9325 82 11.6833
39 0.3000 61 2.1050 83 12.5858
40 0.3283 62 2.2992 84 13.5408
41 0.3617 63 2.5192 85 14.5167
42 0.3958 64 2.7617 86 15.4817
43 0.4350 65 3.0242 87 16.4217
44 0.4758 66 3.2975 88 17.4475
45 0.5225 67 3.5842 89 18.4600
46 0.5692 68 3.8792 90 19.4742
47 0.6200 69 4.1933 91 20.5100
48 0.6733 70 4.5400 92 21.6108
49 0.7333 71 4.9242 93 23.0250
50 0.7967 72 5.3608 94 24.8458
51 0.8700 73 5.8525 95 27.4967
52 0.9517 74 6.3883 96 32.0458
53 1.0450 75 6.9808 97 40.0167
54 1.1500 76 7.5917 98 54.8317
55 1.2617 77 8.2100 99 83.3333
56 1.3825 78 8.8258 100+ 0.0000
THESE RATES ARE FOR THE BASE POLICY AT ISSUE. THEY ARE BASED ON THE 1980
COMMISSIONERS STANDARD ORDINARY MORTALITY TABLE [FOR A MALE SMOKER].
TABLE OF CORRIDOR FACTORS
INSURED: [JOHN DOE]
COVERAGE: [FPVL]
ISSUE DATE: [JANUARY 1, 2002]
POLICY NUMBER: [16,000,001]
DEFINITION OF LIFE INSURANCE TEST: [GUIDELINE PREMIUM TEST]
[TABLE OF GUIDELINE PREMIUM CORRIDOR FACTORS]
ATTAINED AGE FACTOR ATTAINED AGE FACTOR ATTAINED AGE FACTOR
35 2.50000 57 1.42000 79 1.05000
36 2.50000 58 1.38000 80 1.05000
37 2.50000 59 1.34000 81 1.05000
38 2.50000 60 1.30000 82 1.05000
39 2.50000 61 1.28000 83 1.05000
40 2.50000 62 1.26000 84 1.05000
41 2.43000 63 1.24000 85 1.05000
42 2.36000 64 1.22000 86 1.05000
43 2.29000 65 1.20000 87 1.05000
44 2.22000 66 1.19000 88 1.05000
45 2.15000 67 1.18000 89 1.05000
46 2.09000 68 1.17000 90 1.05000
47 2.03000 69 1.16000 91 1.04000
48 1.97000 70 1.15000 92 1.03000
49 1.91000 71 1.13000 93 1.02000
50 1.85000 72 1.11000 94 1.01000
51 1.78000 73 1.09000 95 1.01000
52 1.71000 74 1.07000 96 1.01000
53 1.64000 75 1.05000 97 1.01000
54 1.57000 76 1.05000 98 1.01000
55 1.50000 77 1.05000 99 1.01000
56 1.46000 78 1.05000 100 1.00000
1. DEFINITIONS IN THIS POLICY
WE, US AND OUR New England Life Insurance Company.
YOU AND YOUR The Owner of this Policy.
In the application the words "you" and "your" refer to
the proposed Insured person(s).
INSURED The person whose life is insured under this Policy.
See the Policy Specifications page.
ISSUE AGE The age of the Insured as of his or her nearest
birthday to the Policy Date.
ATTAINED AGE The Issue Age plus the number of completed policy
years. This includes any period during which this
Policy was lapsed.
ISSUE DATE The effective date of the coverage under this
Policy is the Issue Date shown on the Policy
Specifications page. It is also the date from which
the contestable and suicide periods are measured.
POLICY DATE The date from which policy anniversaries, policy
years, and policy months are measured. It is the
Policy Date shown on the Policy Specifications page.
INVESTMENT START DATE The date as of when the first net premium is applied
to the Fixed Account and/or the SubAccounts of the
Variable Account. This date will be the later of:
1. The Policy Date of the Policy; and
2. The date we receive the first premium at our Home
Office or any other office designated by us.
QUALIFIED ROLLOVER The amount of premium, if any, that was paid as a
PREMIUM result of replacing an existing life insurance policy
issued by us (or any of our affiliates we consent to)
with this Policy. This premium will not be less than
that shown on the Policy Specifications page.
MONTHLY ANNIVERSARY The same date in each succeeding month as the Policy
Date 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.
FIXED ACCOUNT The assets held by us, excluding any Loan, other than
those allocated to the SubAccounts of the Variable
Account or any other Variable Account.
VARIABLE ACCOUNT 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 Fixed
Account and the SubAccounts of the Variable Account
the amount of any Loan.
LOAN SUBACCOUNT A Loan SubAccount exists for the Fixed Account and
each SubAccount of the Variable 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 and the SEC has not restricted trading or
declared an emergency. Each Valuation Date ends at the
close of regular trading on the New York Stock
Exchange.
VALUATION PERIOD The period between the end of two successive Valuation
Dates.
SEC The United States Securities and Exchange Commission
2. PERSONS WITH AN INTEREST IN THE POLICY
OWNER The Owner of the Policy is named in the Application
(see copy attached); but, the Owner can be changed
before the death of the Insured. The new owner will
succeed to all rights of the Owner, including the
right to make a further change of Owner. 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.
The Owner may be someone other than the Insured and
may be a person, a partnership, a corporation, a
fiduciary or any other legal entity. At the death of
the Owner, his or her estate will be the Owner, unless
a successor Owner has been named. The rights of the
Owner will end at the death of the Insured.
BENEFICIARY The Beneficiary is named in the Application (see copy
attached); but the Beneficiary can be changed before
the death of the Insured. An irrevocable beneficiary
cannot be changed without his or her consent. The
Beneficiary can be a person, a corporation, a
partnership, a fiduciary or any other legal entity. A
person must survive the Insured to qualify as
Beneficiary. If none survives, the proceeds will be
paid to the Owner.
Any payment we make will terminate our liability with
respect to such payment.
CHANGE OF OWNER OR During the Insured's lifetime you may change the
BENEFICIARY ownership and beneficiary designations, subject to any
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 the Insured is living when we
receive your request at our Home Office or any other
office designated by us. 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.
ASSIGNMENTS An absolute assignment of the Policy by the Owner is a
change of Owner and Beneficiary to the assignee. A
collateral assignment of the Policy by the Owner is
not a change of Owner or Beneficiary; but their rights
will be subject to the terms of the assignment.
Assignments will be subject to all payments made and
actions taken by us before a signed copy of the
assignment is received by us at our Home Office or any
other office designated by us. We will not be
responsible for determining whether or not an
assignment is valid.
DESIGNATION OF OWNER A numbered sequence can be used to name successive
AND BENEFICIARY Owners or Beneficiaries. Co-Beneficiaries will receive
equal shares unless otherwise stated.
In naming Owners or Beneficiaries, unless otherwise
stated:
1. "Child" includes an adopted or posthumous child;
2. "Provision for issue" means that if a Beneficiary
does not survive the Insured, the share of that
Beneficiary will be taken by his or her living
issue by right of representation; and
3. A family relation such as "wife", "husband" or
"child" means relation to the Insured.
At the time for payment of benefits, the company can
rely on an affidavit of any Owner or other responsible
person to determine family relations or members of a
class.
REQUESTS FOR CHANGES Submit all requests for change and/or information in
AND/OR INFORMATION writing to our Home Office or any other office
designated by us.
3. GENERAL PROVISIONS
THE CONTRACT We have issued this Policy in consideration of the
Application and payment of premiums. The Policy, the
Application, any riders, any endorsements and any
application for an increase in Face Amount constitute
the entire contract and are made a part of the Policy
when the insurance applied for is accepted. The Policy
may be changed by mutual agreement. Any change must be
in writing and approved by our 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.
STATEMENTS IN All statements made by the Insured or on his or her
APPLICATION behalf, or 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, any rider or any increase in Face
Amount or deny a claim unless made in the Application
for the Policy, a rider or an increase in Face Amount.
CLAIMS OF CREDITORS To the extent permitted by law, neither the Policy nor
any 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 SubAccounts of the
Variable Account to the Fixed Account.
If, at any time during the first two policy years, you
request in writing the transfer of the Cash Value held
in the SubAccounts of the Variable Account to the
Fixed 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, Risk
Classification or Issue Age.
If you exercise your one time conversion right, we
will automatically allocate all future Net Premiums to
the Fixed Account. That allocation cannot be changed
and no future transfers will be allowed.
MISSTATEMENT OF AGE If there is a misstatement of age or sex in the
OR SEX AND Application, the amount of the Death Benefit will be
CORRECTIONS that which would be purchased by the most recent
Monthly Deduction at the correct age and 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.
UNISEX BASIS If the Sex shown on the Policy Specifications pages
indicates Unisex, each policy, endorsement or rider
provision that contains any differences based on sex
is modified to provide for males and females the same:
rates; benefits; and values.
INCONTESTABILITY We cannot contest this Policy after it has been in
force during the lifetime of the Insured for two years
from its Issue Date. We cannot contest an increase in
Face Amount with regard to material misstatements made
concerning such increase after it has been in force
during the lifetime of the Insured for two
years from its effective date. We cannot contest a
Death Benefit increase caused by a premium payment
which required evidence of insurability after a period
of two years from the date we received the premium
payment. This provision will not apply to any rider
that contains its own incontestability clause.
SUICIDE EXCLUSION If the Insured dies by suicide, while sane or insane,
within two years from the Issue Date, the amount
payable will be limited to the amount of premiums
paid; less any outstanding Loan and Loan Interest to
the date of death; and less any partial withdrawals.
If the Insured, while sane or insane, commits suicide
within two years after the effective date of any
increase in Face Amount, the Death Benefit for that
increase will be limited to the Monthly Deductions for
the increase.
CHANGE OF INSURED While this Policy is in force, you may change the
Insured. 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. This fee will not exceed the Maximum
Processing Charge shown on the Policy Specifications
page.
There will be a change cost if there is an increase in
the Cash Surrender Value as a result of the change.
There will be a change credit payable to you if there
is a decrease in the Cash Surrender Value as a result
of the change.
A detailed statement of the methods of computing the
change cost and change credit have been filed, where
required, with the Insurance Department of the state
in which the Policy is delivered.
PERIODIC REPORT Each year, or more often if required by law or
regulation, a report will be sent to you which shows
the Death Benefit, current Policy values, premiums
paid and deductions made since the last report, any
outstanding Loan, and any other information required
by law or regulation.
ILLUSTRATION OF You may make a written request to us for an
BENEFITS AND VALUES illustration of Cash Values and Death Benefits. We may
charge a nominal fee for any requested illustration
after the first in each policy year. This fee will not
exceed the Maximum Processing Charge shown on the
Policy Specifications page.
4. VARIABLE ACCOUNT PROVISIONS
VARIABLE ACCOUNT The variable benefits under this Policy are provided
through investments in the Variable Account. 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 Variable Account. These
assets are held separately from the assets held in the
Fixed Account. Income, gains and losses---whether or
not realized---from assets allocated to the Variable
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 Variable Account
equal to the reserves and other policy liabilities
with respect to the Variable Account will not be
charged with liabilities that arise from any other
business we may conduct. We have the right to transfer
to our Fixed Account any assets of the Variable
Account which are in excess of the reserves and other
policy liabilities of the Variable Account.
Net Premium allocations and requests for transfers,
future allocation changes, Loans, partial withdrawals,
and surrenders will be effective as of the end of the
Valuation Period during which we receive the premium
payment or the request in a form satisfactory to us.
The Variable Account is registered with the Securities
and Exchange Commission as a unit investment trust
under the Investment Company Act of 1940. The Variable
Account is also subject to the laws of the State of
Massachusetts, which regulate the operations of
insurance companies incorporated in Massachusetts. The
investment policy of the Variable Account will not be
changed without the approval of the Insurance
Commissioner of the State of Massachusetts. The
approval process is on file with the insurance
commissioner of the state in which this Policy was
delivered.
SUBACCOUNTS The Variable Account has several SubAccounts. Each
SubAccount invests in shares of registered investment
companies or other pools of investment assets.
Income, gains and Iosses---whether or not
realized---from the assets of each SubAccount of the
Variable Account are credited to or charged against
that SubAccount without regard to income, gains or
losses in other SubAccounts of the Variable Account or
in the Fixed Account.
We will value the assets of each SubAccount of the
Variable Account at the end of each Valuation Period.
The values and benefits of a policy depend on: the
investment performance of the portfolios in which the
SubAccounts are invested; and the interest credited to
the Fixed Account. We do not guarantee the investment
performance of the portfolios of the SubAccounts. You
bear the investment risk for amounts invested
in the SubAccounts for your Policy.
TRANSFERS If you have not exercised your conversion rights,
fifteen days after the initial premium is applied to
the Policy, you may transfer amounts as follows:
1. Between the Fixed Account and the SubAccounts of
Variable Account; or
2. Among the SubAccounts of Variable Account.
These transfers will be subject to the following
conditions:
1. We must receive a request for transfer in a form
acceptable to us.
2. Except with our consent, the number of transfers
in each policy year will be limited to the Maximum
Number of Transfers or Withdrawals shown on the
Policy Specifications page. If we consent to more
than that in a policy year, we may impose a charge
not to exceed the Maximum Processing Charge shown
on the Policy Specifications page.
3. The maximum amount of all transfers and partial
withdrawals from the Fixed Account (the Fixed
Account Maximum) in any policy year will be the
greater of a. and b.
a. The Cash Surrender Value of the Fixed Account
at the beginning of that policy year times the
Fixed Account Maximum Withdrawal Percent
Limit, as shown on the Policy Specifications
page.
b. The previous policy year's Fixed Account
Maximum withdrawal amount.
However, if less than $100 would remain in the
Fixed Account after the transfer, you can
transfer the remainder to the SubAccounts of
the Variable Account.
The Fixed Account Cash Value immediately after
any transfer to the Fixed Account cannot
exceed i., below, times ii., below:
i. The Fixed Account Cash Value plus the Variable
Account Cash Value.
ii. The Fixed Account Maximum Allocation Percent
as shown on the Policy Specifications page.
ADDITION, DELETION As permitted by law, we can add or remove shares of a
OR SUBSTITUTION OF fund that are held by the Variable Account or that the
INVESTMENTS Variable Account may purchase. When a change is made,
we will send you: a revised prospectus for the
Variable Account which will describe all of the funds
then available for this Policy in the Variable
Account or its successor or any other investment
company in which the Variable Account is invested; and
any notice required by law.
When shares of a fund are removed, we have the right
to substitute a different fund in which the SubAccount
will then invest:
1. The value of the removed shares of the fund; and
2. Future net premiums applied to that SubAccount.
The investment policy of the Variable Account will not
be changed unless: (a) the change has been approved by
the Insurance Commissioner of the State of
Massachusetts; and (b) a statement of the approval
process has been filed with the Insurance Department
of the state in which this Policy is delivered.
5. POLICY BENEFITS
POLICY PROCEEDS The Policy Proceeds are:
1. The Death Benefit under the Death Benefit Option
then in effect; plus
2. The Monthly Cost of Insurance for the portion of
the policy month from the date of death to the end
of the policy month of death; less
3. Any payment due under the Grace Period provision
as of the date of death; less
4. Any Loan and Loan Interest due.
DEFINITION OF LIFE This Policy is intended to qualify as a life insurance
INSURANCE contract under the Internal Revenue Code of 1986
(called "the Code") and any interpretive regulation or
rulings by the Internal Revenue Service. The Code
provides two tests to determine whether the Policy
meets the definition of a life insurance contract: the
Guideline Premium Test; and the Cash Value
Accumulation Test. The Test, as chosen in the
Application, cannot be changed. The Table of Corridor
Factors page shows the Test chosen for this Policy.
For either Test, the Death Benefit will not be less
than: the Policy's Cash Value; times the applicable
Attained Age Factor as shown on the Table of Corridor
Factors page. If you choose the Guideline Premium
Test, the Table shown on the Table of Corridor Factors
page will be the Table of Guideline Premium Factors.
The Guideline Premium Corridor Factors are based on
the percentages as currently described in Section
7702(d) of the Code. If you choose the Cash Value
Accumulation Test, the Table shown on the Table of
Corridor Factors page will be the Table of Net Single
Premium Corridor Factors.
DEATH BENEFIT Prior to the Insured's Attained Age 100, the Death
Benefit depends upon the Death Benefit Option in
effect on the date of the Insured's death. The Death
Benefit Option in effect is shown on the Policy
Specifications page or on the Policy Specifications
page for Policy Change, if any.
DEATH BENEFIT OPTION A:
The Death Benefit is the greater of:
1. The Face Amount; and
2. The death benefit required by the Guideline
Premium Test or the Cash Value Accumulation Test,
depending on the Definition of Life Insurance
Test chosen at the time of Application for the
Policy.
DEATH BENEFIT OPTION B:
The Death Benefit is the greater of:
1. The Face Amount plus the Cash Value on the date of
death; and
2. The death benefit required by the Guideline
Premium Test or the Cash Value Accumulation Test,
depending on the Definition of Life Insurance Test
chosen at the time of Application for the Policy.
CONTINUATION OF THE If this Policy is in force on or after the Insured's
POLICY AFTER ATTAINED Attained Age 100 and if the age of the Insured on the
AGE 100 Issue Date is Attained Age 80 or younger, the Death
Benefit will be equal to the greater of:
1. The Cash Value on the date the Policy Proceeds
become payable; and
2. The lesser of: the Face Amount of the Policy as of
the policy anniversary on which the Insured is
Attained Age 100; and the Face Amount of the
Policy on the policy anniversary on which the
Insured is Attained Age 80.
If this Policy is in force on or after the Insured's
Attained Age 100 and if the age of the Insured on the
Issue Date is Attained Age 81 or older, the Death
Benefit will be equal to the Cash Value on the date
the Policy Proceeds become payable.
PLEASE NOTE: THIS POLICY MAY NOT QUALIFY AS A LIFE
INSURANCE CONTRACT UNDER THE CODE ON OR AFTER THE
INSURED'S ATTAINED AGE 100 AND MAY BE SUBJECT TO TAX
CONSEQUENCES. PLEASE CONSULT A TAX ADVISOR PRIOR TO
CONTINUING THE POLICY BEYOND THE 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 within this Policy. We
reserve the right to not allow policy changes in the
first policy year and to limit the number of changes
to one per policy year. The types of changes allowed
are explained below.
We will send you a Policy Specifications page for
Policy Change when there is a policy change.
No change will be permitted that would result in this
Policy not satisfying the definition of a life
insurance contract under the Internal Revenue Code of
1986 or any applicable successor provision.
CHANGE IN FACE AMOUNT The Face Amount may be changed by sending us a written
request.
Any requested decrease in Face Amount will be subject
to the following conditions:
1. A request for decrease cannot be made until after
the first policy year.
2. The requested decrease will become effective on
the monthly anniversary on or following receipt of
the request at our Home Office or any other office
designated by us.
3. The requested decrease will reduce the Face Amount
in the following order:
a. The Face Amount provided by the most recent
applied for increase;
b. Face Amounts provided by the next most recent
applied for increases, successively; and
c. The remaining initial Face Amount plus any
change in Face Amount resulting from a change
in Death Benefit Option.
4. 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.
5. Any requested decrease must be at least the
Minimum Face Amount Decrease as shown on the
Policy Specifications page.
6. A requested decrease in Face Amount may require a
decrease in the amounts provided by any riders
attached to this Policy.
A Surrender Charge will apply to any decrease in Face
Amount as explained in the Surrender Charge provision.
This Surrender Charge will be allocated among the
Fixed Account and the SubAccounts of the Variable
Account in the same proportion that the Cash Value in
the Fixed Account and the Cash Value in each
SubAccount bears to the total Cash Value of the Policy
less the Cash Value in the Loan Account.
Any requested increase in Face Amount will be subject
to the following conditions:
1. Proof that the Insured is insurable by our
standards on the date of the requested increase
must be submitted.
2. The increase, if approved by us, will become
effective on the monthly anniversary on or
following receipt of the request at our Home
Office or any other office designated by us.
3. Each increase will be subject to the Maximum Face
Amount Increase Administration Charge shown on the
Policy Specifications page, unless the increase is
not medically underwritten. This fee will be
deducted as part of the Monthly Deduction.
4. Any increase must be at least the Minimum Face
Amount Increase as shown on the Policy
Specifications page.
5. New insurance must be available on the same plan
at the age of the Insured on the effective date
being allowed under our underwriting rules.
6. The amount of any rider which is attached to the
Policy can be increased only as stated in the
rider.
We will amend your Policy to show the effective date
of the decrease or increase.
CHANGE IN DEATH BENEFIT After the first policy year and prior to the Insured's
OPTION Attained Age 100, changes to the Death Benefit Option
will be allowed. Proof that the Insured is insurable
by our standards on the date of the change may be
required. The effective date of the change will
be the monthly anniversary on or following the date we
receive your written request at our Home Office or any
other office designated by us. On the effective date
of this change the Death Benefit payable does not
change, but the Face Amount may change. Changes are
allowed as follows:
1. Change from Death Benefit Option A to Death
Benefit Option B.
The Face Amount of the Policy, any Supplemental
Coverage Term Rider and any Adjustable Benefit
Term Rider will be decreased, if necessary, to
equal the Death Benefit less the Cash Value on the
effective date of the change. This change may not
be made if it would result in a Face Amount for
the Policy that is less than the Minimum Face
Amount shown on the Policy Specifications page. A
Surrender Charge will apply to any decrease in the
Face Amount of the Policy as explained in the
Surrender Charge provision.
The decrease will reduce the Face Amount in the
following order:
a. The Face Amount provided by the most recent
applied for increase;
b. Face Amounts provided by the next most recent
applied for increases, successively;
c. The Face Amount of any Supplemental Coverage
Term Rider; and
d. The remaining initial Face Amount plus any
change in Face Amount resulting from a change
in Death Benefit Option to the Minimum Face
Amount shown on the Policy Specifications
page; and
e. The Face Amount provided by any Adjustable
Benefit Term Rider.
2. Change from Death Benefit Option B to Death
Benefit Option A.
The Face Amount of the Policy will be increased,
if necessary, to equal the Death Benefit on the
effective date of the change.
6. PREMIUMS AND GRACE PERIOD
PAYMENT OF PREMIUMS Your first premium is due as of the Policy Date. While
the Insured is living, premiums after the first must
be paid to us at our Home Office or any other office
designated by us. 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.
After the first premium is paid, premiums may be paid
in any amount and at any interval subject to the
following conditions:
1. Any premium payment must be at least $10.00.
2. If you have selected the Guideline Premium Test
for the Policy, total premiums paid in any policy
year may not exceed an amount that would cause the
Policy to fail to satisfy the definition of a life
insurance contract as defined by Section 7702 of
the Internal Revenue Code of 1986, or any
applicable successor provision thereto.
3. No planned premium can be increased if payment of
the increased planned premium would cause the
Policy to fail to satisfy the definition of a life
insurance contract as defined by Section 7702 of
the Internal Revenue Code of 1986, or any
applicable successor provision thereto at any
time.
On any date that we receive a premium which causes the
Death Benefit under any of the Death Benefit Options
to increase by an amount that exceeds that Net Premium
received, we reserve the right to refuse that premium
payment. We may require additional evidence of
insurability before we accept the premium.
Unless you request otherwise in writing to us, any
payment received by us will be used as a premium
payment.
NET PREMIUM The Net Premium is:
1. The premium paid; less
2. The premium paid times the Premium Tax Charge;
less
3. The premium paid times the Federal Tax Charge;
less
4. The premium paid times the Percent of Premium
Charge.
PREMIUM TAX CHARGE A charge will be deducted for premium taxes from each
premium submitted. The Maximum Premium Tax Charge, as
a percent of the premium, is shown on the Policy
Specifications page.
FEDERAL TAX CHARGE A charge will be deducted for federal taxes from each
premium submitted. The Maximum Federal Tax Charge, as
a percent of the premium, is shown on the Policy
Specifications page.
PERCENT OF PREMIUM A charge will be deducted from each premium submitted.
CHARGE The Maximum Percent of Premium Charge is shown
on the Policy Specifications page.
ALLOCATION OF NET You determine the allocation of Net Premiums among the
PREMIUMS Fixed Account and the SubAccounts of the Variable
Account. For any chosen allocation the minimum
percentage that may be allocated is 1% of the Net
Premium. Percentages must be in whole numbers. The
total number of accounts (the Fixed Account plus the
SubAccounts of the Variable Account) you may have Cash
Value allocated to over the life of the Policy cannot
exceed the Maximum Number of Accounts After the
Investment Start Date shown on the Policy
Specifications page. The Fixed Account Cash Value
immediately after payment of the premium cannot exceed
1., below, times 2., below:
1. The Fixed Account Cash Value plus the Variable
Account Cash Value.
2. The Fixed 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. The total number of
accounts (the Fixed Account plus the SubAccounts of
the Variable Account) you may choose for the initial
allocation cannot exceed the Maximum Number of
Accounts on the Investment Start Date shown on the
Policy Specifications page. We may modify the Fixed
Account Maximum Allocation Percent at any time.
The Policy's first investment of the Net Premium is
made in the Money Market SubAccount as of the
Investment Start Date. The Policy's Cash Value will be
transferred, based on your choice, to the SubAccounts
and the Fixed Account 15 days after the initial
premium is applied to the Policy. Before this
transfer, the values and benefits of the Policy will
depend on the net investment performance of the Money
Market SubAccount. After this transfer, each Net
Premium allocated to the Variable Account will be
applied to the SubAccounts you chose as of the date it
is received by us at our Home Office or any other
office designated by us.
YOUR RIGHT TO CHANGE If you have not exercised your Conversion Rights, you
ALLOCATION may change the allocation of future Net Premiums among
the Fixed Account and/or the SubAccounts of the
Variable Account subject to the conditions outlined in
the Allocation of Net Premiums Provision. The change
in allocation percentages will take effect immediately
upon our receipt of your request in a form acceptable
to us at our Home Office or any other office
designated by us.
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 less:
1. Any partial withdrawals;
2. Any Cash Value paid to you to allow the Policy to
continue to qualify as a life insurance contract;
and
3. Any outstanding Loan and Loan Interest
is greater than or equal to the sum of the No Lapse
Monthly Premiums for each monthly anniversary since
the Policy Date, this Policy will not lapse. 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.
The No Lapse Monthly Premium may change if any of the
following events occur prior to the No Lapse Premium
Date shown on the Policy Specifications page:
1. A change in the Policy's Face Amount;
2. The addition or deletion of or change to a rider
attached to this Policy;
3. A change in the Risk Classification of the
Insured;
4. A misstatement of age or sex in the Application;
or
5. A Change of Insured.
The No Lapse Premium Date will not be changed.
If the Policy lapses, the No Lapse Period will
terminate and cannot be reinstated.
GRACE PERIOD IF, ON A MONTHLY ANNIVERSARY DAY WHILE THE NO LAPSE
PREMIUM PERIOD IS IN EFFECT:
1. The Cash Value less any Loan, Loan Interest due
and any Surrender Charge that would apply upon
surrender whether or not there is a surrender is
insufficient to cover the Monthly Deduction, which
is defined in the Cash Values Section; and
2. The sum of all premiums paid on this Policy,
reduced by any partial withdrawals, any Cash Value
paid to you to allow the Policy to continue to
qualify as a life insurance contract and any
outstanding Loan and Loan Interest, is less than
the sum of the No Lapse Monthly Premiums for each
monthly anniversary since the Policy Date;
then the Grace Period of 62 days will be allowed for
the payment of a premium sufficient to keep your
Policy in force. Notice of the Amount Due to keep this
Policy in force through the end of the Grace Period
will be sent at the beginning of the Grace Period to
your last known address and to any assignee on record.
The Amount Due is the amount required to satisfy the
No Lapse Premium requirement or an amount sufficient
to cover the Monthly Deduction, whichever is less. If
we do not receive a premium large enough to cover the
Amount Due 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 Insured dies during the Grace Period, the Amount
Due will be deducted from the Death Benefit.
IF, ON A MONTHLY ANNIVERSARY DAY ON OR AFTER THE NO
LAPSE PREMIUM PERIOD, the Cash Value less any Loan,
Loan Interest due and any Surrender Charge that would
apply upon surrender whether or not there is a
surrender 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.
Notice of the amount of premium required to be paid to
keep this Policy in force through the end of the Grace
Period 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
to cover 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 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 three
years after the date of lapse. This must be done prior
to the Insured's Attained Age 100. The Policy cannot
be reinstated, except with our consent, if more than
three years have passed since the date of lapse. The
Policy cannot be reinstated if it has been
surrendered. To reinstate, you must submit the
following items:
1. A written application for Reinstatement.
2. Proof satisfactory to us that the Insured is
insurable by our standards.
3. Payment of a premium large enough to keep the
Policy in force for at least three months.
Upon Reinstatement, we will deduct any Monthly
Deductions and Loan Interest due and unpaid at the
time of lapse. The Insured must be alive on the date
we approve the request for Reinstatement. If the
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.
Any Loan may be repaid or reinstated. Any Loan
reinstated will cause 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.
The Maximum Asset Charge Percentage, the Maximum
Monthly Policy Charge, the Maximum Monthly
Administration and Issue Expense Charge and the
Maximum Surrender Charge at the time of Reinstatement
will be those in effect at the time of lapse. If only
a portion of the coverage is reinstated then only the
applicable portion of the Maximum Monthly
Administration and Issue Expense Charge and Maximum
Surrender Charge will be reinstated. If only a portion
of the coverage is reinstated, the Cash Value
following Reinstatement will be increased by a
proportionate amount of the Surrender Charge imposed
at the time of lapse.
Riders can be reinstated only as stated in the rider
or with our consent. If only a portion of the coverage
is reinstated then only a portion of any rider amounts
attached to this Policy may also be reinstated.
The No Lapse Period will not be applicable upon
Reinstatement of the Policy.
7. LOANS
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 amount of your net loan request at
any one time must be at least the Minimum Loan and
Withdrawal Amount shown on the Policy Specifications
page. Your Policy will be the sole security for such
Loan.
The Loan Value on the date of the loan request is:
1. The Cash Value; less
2. Any Surrender Charge that would apply upon
surrender whether or not there is a surrender;
less
3. The amount of the last Monthly Deduction processed
times the number of policy months to the earlier
of: the next planned premium due date; and the
next policy anniversary, plus
4. Interest at the Fixed Account Interest Rate shown
on the Policy Specifications page projected on 1
less 2 less 3 above to the next policy
anniversary; less
5. Loan Interest to the next policy anniversary; less
6. Any existing Loan.
You may allocate the Loan among the Fixed Account and
the SubAccounts of the Variable Account. If you do not
specify the allocation, then the Loan will be
allocated among the Fixed Account and the SubAccounts
of the Variable Account in the same proportion that
the Cash Value in the Fixed Account, and the Cash
Value in each SubAccount bears to the total Cash Value
of the Policy less the Cash Value in the Loan Account,
on the date of the Loan.
Cash Value equal to the Loan allocated to the Fixed
Account and each SubAccount of the Variable Account
will be transferred to the Loan Account, reducing the
Cash Value accordingly. The transferred Cash Value:
will be allocated to the appropriate Loan SubAccount;
and will earn interest at the Fixed Account Cash Value
Guaranteed Interest Rate shown on the Policy
Specifications page. Interest earned on the Cash Value
in the Loan Account will remain in the Loan Account
until: a loan repayment is received by us; a new Loan
is made; the Policy enters the Grace Period; or the
next policy anniversary. Upon each of these events,
the interest earned on the Loan Account will be
transferred to the Fixed Account and the SubAccounts
of Variable Account in the same proportion that the
Cash Value allocated to each Loan SubAccount bears to
the Cash Value in the Loan Account.
LOAN INTEREST DUE DATE The accrued Loan Interest will be due the earliest of:
1. The next policy anniversary date;
2. The date of termination of the Policy;
3. The date the Loan is repaid in full; and
4. The date the Loan plus Loan Interest accrued
exceeds the Cash Value less any Surrender Charge
that would apply upon surrender whether or not
there is a surrender.
Loan Interest will be payable annually on each policy
anniversary. If you do not pay the Loan Interest when
it is due on a policy anniversary: an amount of Cash
Value equal to the Loan Interest will be added to the
Loan; interest will be charged on it; and it will be
allocated to the appropriate Loan SubAccount. The
amount transferred will be deducted from the Fixed
Account and the SubAccounts of the Variable Account in
the same proportion that the Cash Value in the Fixed
Account and the Cash Value in each SubAccount bears to
the total Cash Value of the Policy less the Cash Value
in the Loan Account.
FIXED LOAN INTEREST Loan Interest will be charged on any Loan. The rate of
RATES interest will not exceed the Maximum Loan
Interest Rate shown on the Policy Specifications page.
Loan Interest is payable in arrears.
LOAN REPAYMENTS You may repay your Loan in whole or in part at any
time before the death of the 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 Fixed Account and
the SubAccounts of Variable Account in the same
proportion that the Cash Value allocated to each Loan
SubAccount bears to the Cash Value in the Loan
Account. Unpaid Loan 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, less
any Surrender Charge that would apply upon surrender
whether or not there is a surrender, (called "excess
Loan") your Policy will terminate. We will allow you a
Grace Period for payment of the amount of the excess
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 of the excess
Loan.
Unless you request otherwise in writing to us, any
payment received by us will be used as a premium
payment.
8. CASH VALUES
CASH VALUE The Cash Value of your Policy is equal to the total
of:
1. The Cash Value in the Fixed Account; plus
2. The Cash Value in the SubAccounts of the Variable
Account, plus
3. The Cash Value in the Loan Account.
CASH VALUE ON OR AFTER If this Policy is in force on or after the Insured's
ATTAINED AGE 100 Attained Age 100, the Cash Value of your Policy will
be determined in the same manner as described below;
except no Monthly Deductions will be made. Premiums
cannot be paid on or after the Insured is Attained Age
100, except for payments required under the Grace
Period.
FIXED ACCOUNT CASH VALUE The Cash Value in the Fixed Account as of the
Investment Start Date is equal to:
1. The portion of the initial Net Premium received
and allocated to the Fixed Account; less
2. The portion of the Monthly Deductions due from the
Policy Date through the Investment Start Date
charged to the Fixed Account.
The Cash Value in the Fixed Account on any day after
the Investment Start Date is equal to:
1. The Cash Value on the preceding Valuation Date,
with interest on such value at the current rate;
plus
2. Any portion of Net Premium received and allocated
to the Fixed Account on that day; plus
3. Any amounts transferred to the Fixed Account on
that day; plus
4. Any loan repayments allocated to the Fixed Account
on that day; plus
5. That portion of any interest credited on an
outstanding Loan which is allocated to the Fixed
Account on that day; less
6. Any amount transferred from the Fixed Account to
the SubAccounts of the Variable Account on that
day; less
7. Any partial withdrawal made from the Fixed Account
on that day; less
8. Any portion of a Processing Charge taken from the
Fixed Account; less
9. Any portion of the Surrender Charge incurred on
that day attributed to the Fixed Account; less
10. Any amount transferred from the Fixed Account to
the Loan Account on that day; less
11. IF THAT DAY IS A MONTHLY ANNIVERSARY, the portion
of the Monthly Deduction charged to the Fixed
Account, to cover the policy month that starts on
that day.
The Cash Value in the Fixed Account can be negative.
FIXED ACCOUNT INTEREST The interest credited to the Fixed Account Cash Value
RATE for a specific day will be at an effective annual
rate not less than the Fixed Account Cash Value
Guaranteed Interest Rate shown on the Policy
Specifications page.
VARIABLE ACCOUNT CASH The Cash Value in each SubAccount of the Variable
VALUE Account on the Investment Start Date is equal to:
1. The portion of the initial Net Premium received
and allocated to the SubAccount; less
2. The portion of the Monthly Deductions due from the
Policy Date through the Investment Start Date
charged to the SubAccount.
The Cash Value in each SubAccount of the Variable
Account on subsequent Valuation Dates is equal to:
1. The Cash Value in the SubAccount on the preceding
Valuation Date times that SubAccount's Net
Investment Factor for the current Valuation
Period; plus
2. Any portion of Net Premium received and allocated
to the SubAccount during the current Valuation
Period; plus
3. Any amounts transferred to the SubAccount from the
Fixed Account or from another SubAccount during
the current Valuation Period; plus
4. Any Loan repayments allocated to the SubAccount
during the current Valuation Period; plus
5. That portion of any interest credited on an
outstanding Loan which is allocated to the
SubAccount during the current Valuation Period;
less
6. Any amounts transferred from the SubAccount during
the current Valuation Period; less
7. Any partial withdrawal from the SubAccount during
the current Valuation Period; less
8. Any portion of the Surrender Charge incurred
during the current Valuation Period attributed to
the SubAccount; less
9. Any portion of a Processing Charge taken from the
SubAccount; less
10. Any amount transferred from the SubAccount to the
Loan Account during that Valuation Period; less
11. IF A MONTHLY ANNIVERSARY OCCURS DURING THE CURRENT
VALUATION PERIOD, the portion of the Monthly
Deduction charged to the SubAccount during the
current Valuation Period to cover the policy month
which starts during that Valuation Period.
The Cash Value in a SubAccount can be negative.
VARIABLE ACCUMULATION At the end of a Valuation Date, the current market
UNITS value of a SubAccount is determined by multiplying
that SubAccount's accumulation unit value times the
number of SubAccount units held under this Policy.
The number of SubAccount accumulation units will
increase when:
1. Any portion of a Net Premium is allocated to that
SubAccount;
2. Amounts are transferred to that SubAccount; or
3. Loans are repaid and credited to that SubAccount.
The number of SubAccount accumulation units will
decrease when:
1. Any portion of the Monthly Deduction is deducted
from that SubAccount;
2. A Loan is taken from that SubAccount;
3. An amount is transferred from that SubAccount;
4. A Processing Charge is taken from that SubAccount;
5. A Surrender Charge is taken from that SubAccount;
or
6. A partial withdrawal is taken from that
SubAccount.
VALUE OF EACH The value of an accumulation unit may increase or
ACCUMULATION UNIT decrease from one Valuation Period to the next. For
any Valuation Period the value is:
1. The value of an accumulation unit for the prior
Valuation Period; times
2. The Net Investment Factor for that SubAccount for
the current Valuation Period.
NET INVESTMENT FACTOR The Net Investment Factor measures the investment
performance of a SubAccount during a Valuation Period.
The Net Investment Factor for each SubAccount for a
Valuation Period is calculated as follows:
1. The value of the assets at the end of the
preceding Valuation Period; plus
2. 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; less
3. The capital losses---realized or
unrealized---charged against those assets during
the Valuation Period; less
4. Any amount charged against each SubAccount 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
SubAccounts of the Variable Account, or any amount
we set aside during the Valuation Period as a
reserve for taxes attributable to the operation or
maintenance of each SubAccount; divided by
5. The value of the assets at the end of the
preceding Valuation Period.
LOAN ACCOUNT CASH VALUE The Cash Value in the Loan Account as of the
Investment Start Date is equal to the amount
transferred into the Loan Account on that day.
The Cash Value in the Loan Account on any day after
the Investment Start Date is equal to:
1. The Cash Value in the Loan Account on the
preceding Valuation Date, with interest; plus
2. Any amount transferred to the Loan Account from
the Fixed Account on that day; plus
3. Any amount transferred to the Loan Account from
the SubAccounts of the Variable Account on that
day; plus
4. IF THAT DAY IS A POLICY ANNIVERSARY, an amount due
to cover the Loan Interest if not paid by you;
less
5. Any amount transferred from the Loan Account to
the Fixed Account on that day; less
6. Any amount transferred from the Loan Account to
the SubAccounts of the Variable Account on that
day.
MONTHLY COST OF The Monthly Cost of Insurance for the following month
INSURANCE is charged as part of the Monthly Deduction and is
included in the Total Monthly Cost of
Insurance. The Total Monthly Cost of Insurance is
equal to:
1. The Net Amount at Risk allocated to the remaining
initial Face Amount times the Monthly Cost of
Insurance Rate for the remaining initial Face
Amount, divided by 1,000; plus
2. The Net Amount at Risk allocated to any increase
in Face Amount resulting from a Death Benefit
Option Change times the Monthly Cost of Insurance
Rate for that increase, divided by 1,000; plus
3. The Net Amount at Risk allocated to any
Supplemental Coverage Term Rider times the Monthly
Cost of Insurance Rate for the Rider, divided by
1,000; plus
4. The Net Amount at Risk allocated to any Adjustable
Benefit Term Rider Face Amount increases times the
Monthly Cost of Insurance Rate for the Rider,
divided by 1,000; plus
5. If you request any increase in your Face Amount,
the Net Amount at Risk allocated to each requested
Amount of Increase times the Monthly Cost of
Insurance rate for each increase in Face Amount,
divided by 1,000.
NET AMOUNT AT RISK The Net Amount at Risk equals:
1. For Death Benefit Option A:
a. The greater of: the Face Amount divided by the
Monthly Discount Factor shown on the Policy
Specifications page; and the Cash Value
(before the deduction of the Total Monthly
Cost of Insurance, the Cost of Rider for any
Waiver of Monthly Deductions Rider and the
Cost of Rider for any Secondary Guarantee
Rider) at the beginning of the policy month
times the Attained Age Factor as shown on the
Table of Corridor Factors; less
b. Any Cash Value (before the deduction of the
Total Monthly Cost of Insurance, the Cost of
Rider for any Waiver of Monthly Deductions
Rider and the Cost of Rider for any Secondary
Guarantee Rider).
2. For Death Benefit Option B:
a. The greater of: the Face Amount divided by the
Monthly Discount Factor shown on the Policy
Specifications page plus the Cash Value
(before the deduction of the Total Monthly
Cost of Insurance, the Cost of Rider for any
Waiver of Monthly Deductions Rider and the
Cost of Rider for any Secondary Guarantee
Rider) at the beginning of the policy month;
and the Cash Value (before the deduction of
the Total Monthly Cost of Insurance, the Cost
of Rider for any Waiver of Monthly Deductions
Rider and the Cost of Rider for any Secondary
Guarantee Rider) at the beginning of the
policy month times the Attained Age Factor as
shown on the Table of Corridor Factors; less
b. Any Cash Value (before the deduction of the
Total Monthly Cost of Insurance, the Cost of
Rider for any Waiver of Monthly Deductions
Rider and the Cost of Rider for any Secondary
Guarantee Rider).
The Cash Value used in the Net Amount at Risk
calculation will not be less than zero.
ALLOCATION OF NET The Net Amount at Risk will be allocated to coverages
AMOUNT AT RISK in the following order:
1. To all increases in Face Amount in the order they
were effective, if any; then
2. To all Adjustable Benefit Term Rider Face Amount
increases, if any; then
3. To any Supplemental Coverage Term Rider Face
Amount; and then
4. To the coverage provided by the remaining initial
Face Amount plus any change in Face Amount
resulting from a Death Benefit Option change.
Any remaining Net Amount at Risk will be allocated to
the coverage described in 4 above.
MONTHLY COST OF At the beginning of each policy year, the Monthly Cost
INSURANCE RATES of Insurance rate is determined for the initial Face
Amount and each increase in Face Amount. The Monthly
Cost of Insurance rate is based on the Attained Age,
Risk Classification and sex. For the initial Face
Amount, we will use the Risk Classification as of the
Issue Date. For each increase in Face Amount, we will
use the Risk Classification applicable to the
increase.
The Monthly Cost of Insurance rates will never exceed
the rates shown on the Table of Maximum 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 risk classification whose initial Face
Amounts or increases in Face Amount have been in force
for the same length of time.
MONTHLY ADMINISTRATION An Administration and Issue Expense Charge will be
AND ISSUE EXPENSE CHARGE deducted each policy month from the Cash Value as part
of the Monthly Deduction. This charge equals the
applicable Face Amount times an Administration and
Issue Expense Charge Rate, divided by 1,000. The
Administration and Issue Expense Charge Rate for the
initial Face Amount of the Policy will never exceed
the Maximum Monthly Administration and Issue Expense
Charge Rate shown on the Policy Specifications page
for the initial Face Amount. An Administration and
Issue Expense Charge will also be applied to any
increase in Face Amount. This charge will never exceed
the Maximum Monthly Administration and Issue Expense
Charge Rate shown on the Policy Specifications page
for Policy Change for that increase. The
Administration and Issue Expense Charge is based on
the Insured's Age, Sex and Risk Classification on the
effective date of the initial Face Amount or any
increase in Face Amount.
For the purpose of determining the applicable
Administration and Issue Expense Charge on any date
after Reinstatement, the period the Policy was lapsed
will not count.
MONTHLY POLICY CHARGE A Policy Charge will be deducted each policy month
from the Cash Value as part of the Monthly Deduction.
The amount of the Monthly Policy Charge will never
exceed the Maximum Monthly Policy Charge shown on the
Policy Specifications page.
For the purpose of determining the applicable Monthly
Policy Charge on any date after Reinstatement, the
period the Policy was lapsed will not count.
ASSET CHARGE An Asset Charge will be deducted from the Cash Value
each policy month
as part of the Monthly Deduction. A charge will be
calculated on each monthly anniversary and will not
exceed the Maximum Monthly Asset Charge Percentage
shown on the Policy Specifications page times the
Variable Account Cash Value at the beginning of the
current day. If the Cash Value is negative on a
monthly anniversary, the Asset Charge will not be
deducted for that month.
For the purpose of determining the applicable Asset
Charge on any date after Reinstatement, the period the
Policy was lapsed will not count.
REDUCTION OF CHARGES We may reduce or eliminate certain charges. The extent
and nature of reductions may change from time to time.
The charge structure may vary. Variations are
determined in a manner, not unfairly discriminatory to
policy owners, which reflects differences in costs of
services.
MONTHLY DEDUCTION On the first day of each policy month, whether or not
premiums are paid, we will make a Monthly Deduction
for that policy month from the Cash Value of this
Policy.
The Monthly Deduction is:
1. The Monthly Asset Charge; plus
2. The Monthly Administration and Issue Expense
Charge; plus
3. The Monthly Policy Charge; plus
4. The Maximum Face Amount Increase Administration
Charge, if any; plus
5. The Monthly Cost of Rider, if any, for any rider
included with this Policy; plus
6. The Total Monthly Cost of Insurance.
The Monthly Deduction for a policy month will be
allocated among the Fixed Account and the SubAccounts
of the Variable Account in the same proportion that
the Cash Value in the Fixed Account and the Cash Value
in each SubAccount bears to the total Cash Value of
the Policy less the Cash Value in the Loan Account on
the monthly anniversary. However, you can choose in
writing, at any time, to have Monthly Deductions
allocated to the Fixed Account or to a specific
SubAccount until the Cash Value in the Policy's
portion of the Fixed Account or that SubAccount is
insufficient to cover the entire Monthly Deduction;
and then to the Fixed Account and the remaining
SubAccounts in the same proportion that the Cash Value
in the Fixed Account and the Cash Value in each
SubAccount bears to the total Cash Value of the Policy
less the Cash Value in the Loan Account on the monthly
anniversary. We will allocate the Monthly Deduction
according to your choice until you request otherwise
in writing to us.
DETERMINATION OF Cost of Insurance Rates, Percent of Premium Charges,
NONGUARANTEED FACTORS Monthly Administration and Issue Expense Charges,
Monthly Policy Charges, Monthly Asset Charges and
interest rates will be determined by us based on
expectations as to future mortality, tax, interest
earnings, expense and persistency experience. We will
not adjust such rates or charges as a means of
recovering prior losses nor as a means of distributing
prior profits.
CASH SURRENDER VALUE The Cash Surrender Value of this Policy is:
1. The Cash Value at the time of surrender; less
2. Any Loan and Loan Interest accrued; less
3. Any Surrender Charge that would apply upon
surrender whether or not there is a surrender.
SURRENDER You may surrender your Policy for its Cash Surrender
Value at any time during the lifetime of the Insured.
We will determine the Cash Surrender Value as of the
date we receive your request in a form acceptable to
us at our Home Office or any other office designated
by us. The Cash Surrender Value will be paid to you in
one sum unless you elect in writing to apply all or
part of the proceeds to a Payment Option. (See the
Payment Options provision.) The Policy will terminate
on the monthly anniversary on or next following the
date of surrender. If the Insured dies on or after the
date of surrender and before the termination of the
Policy: the surrender will be reversed; the Cash
Surrender Value paid to you will be processed as a
Loan; and the Cash Surrender Value paid to you will be
deducted from the Policy Proceeds.
PARTIAL WITHDRAWALS After the Right to Examine Policy period, upon our
receipt of your request in a form acceptable to us at
our Home Office or any other office designated by us,
you can make a partial withdrawal of cash subject to
the conditions listed below. Except with our consent,
the number of partial withdrawals in a policy year
will be limited to the Maximum Number of Transfers or
Withdrawals shown on the Policy Specifications page.
If we consent to more than that in a policy year, we
may impose a charge not to exceed the Maximum
Processing Charge shown on the Policy Specifications
page.
Except with our consent, the amount of your partial
withdrawal request at any one time must be at least
the Minimum Loan and Withdrawal Amount shown on the
Policy Specifications page. We reserve the right to
limit the total amount you may withdraw to 90% of the
Cash Surrender Value of your Policy. (See the
Allocation of Partial Withdrawals, Fixed Account
Partial Withdrawals and Variable Account Partial
Withdrawals provisions below for additional limits we
may impose on partial withdrawals.)
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.
The Death Benefit of the Policy will be based on the
Face Amount after the partial withdrawal and the
reduced Cash Value. The Face Amount of the Policy will
be decreased, if necessary, such that the amount at
risk after the partial withdrawal is not greater than
the amount at risk before the partial withdrawal. A
Surrender Charge will apply if the Face Amount is
decreased. This Surrender Charge will be allocated
among the Fixed Account and the SubAccounts of the
Variable Account in the same proportion that the
partial withdrawal was allocated among the Fixed
Account and the SubAccounts of the Variable Account.
(See Allocation of Partial Withdrawals provision
below.) When the first partial withdrawal of each
policy year is made, this Surrender Charge will not
apply to: the first 10% of Cash Surrender Value at
the time of withdrawal; or if the amount withdrawn is
less than 10% of the Cash Surrender Value, the amount
of the partial withdrawal.
The Face Amount will be decreased in the following
order:
1. The remaining initial Face Amount of the Policy,
plus any change in Face Amount resulting from a
change in Death Benefit Option, to the Minimum
Face Amount shown on the Policy Specifications
page;
2. The Face Amount of any Supplemental Coverage Term
Rider;
3. The Face Amounts provided by any Adjustable
Benefit Term Rider; and
4. Any increases in the same order in which they were
issued.
A decrease in Face Amount may require a decrease in
the amounts provided by any riders attached to this
Policy.
ALLOCATION OF PARTIAL You may allocate the partial withdrawal plus any
WITHDRAWALS applicable Surrender Charge, subject to the conditions
below, among the Fixed Account and the SubAccounts of
the Variable Account. If you do not specify the
allocation, then the partial withdrawal will be
allocated among the Fixed Account and the SubAccounts
of the Variable Account in the same proportion that
the Cash Value in the Fixed Account and the Cash Value
in each SubAccount bears to the total Cash Value of
the Policy less the Cash Value in the Loan Account on
the date of the partial withdrawal. If the Fixed
Account conditions will not allow this proportionate
allocation, we will request that you specify an
acceptable allocation.
FIXED ACCOUNT PARTIAL You may request a partial withdrawal be taken from
WITHDRAWALS your Cash Surrender Value in the Fixed Account.
The maximum amount of all partial withdrawals and
transfers from the Fixed Account in a policy year will
be the greater of 1. and 2:
1. The Cash Surrender Value of the Fixed Account at
the beginning of that policy year times the Fixed
Account Maximum Withdrawal Percentage Limit, as
shown on the Policy Specifications page.
2. The previous year's Fixed Account Maximum
withdrawal amount.
However, if less than $100 would remain in the Fixed
Account after the withdrawal, you can withdraw the
entire amount of Cash Surrender Value in the Fixed
Account.
VARIABLE ACCOUNT You may request a partial withdrawal be taken from
PARTIAL WITHDRAWALS your Cash Surrender Value in a SubAccount of the
Variable Account.
The maximum amount of your partial withdrawal from any
one of the SubAccounts of the Variable Account will be
the Cash Surrender Value of that SubAccount.
SURRENDER CHARGE A Surrender Charge will apply: upon surrender; upon
lapse; upon some partial withdrawals that reduce the
Face Amount (see Partial Withdrawals provision); upon
a change in Death Benefit Option that reduces the Face
Amount; or upon a decrease in Face Amount during the
surrender charge period.
The Surrender Charge for the initial Face Amount will
never exceed the Maximum Surrender Charge shown on the
Surrender Charge Schedule page. The Surrender Charge
for any increase will never exceed the Maximum
Surrender Charge shown on the Surrender Charge
Schedule page included with the Policy Specifications
page for Policy Change issued at the time of the
increase.
A decrease in Face Amount may decrease some or all of
the initial Face Amount and increases in Face Amount
as provided in the Policy Benefits Section. If a
portion of the initial Face Amount or any increase in
Face Amount is decreased, a proportionate amount of
the Surrender Charge will apply to each decrease.
The Surrender Charge will be allocated among the Fixed
Account and the SubAccounts of the Variable Account in
the same proportion that the Cash
Value in the Fixed Account and the Cash Value in each
SubAccount bears to the total Cash Value of the Policy
less the Cash Value in the Loan Account. If a
Surrender Charge is imposed resulting from a partial
withdrawal, it will be allocated among the Fixed
Account and the SubAccounts of the Variable Account in
the same proportion that the partial withdrawal was
allocated among the Fixed Account and the SubAccounts
of the Variable Account.
For the purpose of determining the applicable
Surrender Charge on any date after Reinstatement, the
period the Policy was lapsed will not count.
POSTPONEMENT OF We will usually pay any amounts payable on Loans,
PAYMENTS OR TRANSFERS surrender or partial withdrawals allocated to the
SubAccounts of the Variable Account within seven days
after written request is received. We will usually pay
any Death Benefit proceeds within seven days after we
receive due proof of claim. Payment of any amount
payable from the SubAccounts of the Variable Account
on Loans (except when used to pay premiums on policies
issued by us), surrender, partial withdrawals 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 Variable Account.
We may defer payment of the portion of any amount
payable from the Fixed Account on surrender or partial
withdrawals for not more than six months. If we defer
payment for 30 days or more, we will pay interest at
the rate of 3% per year, or that required by law, for
the period of deferment.
Transfers may also be postponed under the
circumstances listed above.
We may defer payment of the portion of any Loan from
the Fixed Account for not more than six months. No
payment from the Fixed Account to pay premiums on any
policy issued by us will be deferred.
BASIS OF COMPUTATION The minimum cash values are based on:
1. The Basis of Computation of Minimum Cash Values
table shown on the Policy Specifications page and
any Policy Specifications page for Policy Change;
and
2. Compound interest at an annual rate of not less
than the Basis of Computation Interest Rate shown
on the Policy Specifications page.
Net single premiums are based on:
1. The 7702 Table as shown on the Policy
Specifications page and any Policy Specifications
page for Policy Change; and
2. The Basis of Computation Interest Rate 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.
A detailed statement of the method of computing values
has been filed, where required, with the Insurance
Department of the state in which the Policy is
delivered.
9. PAYMENT OF POLICY BENEFITS
PAYMENT Unless otherwise requested, we may pay the Policy
Proceeds when the Insured dies to the Payee in one sum
or by placing the amount in an account that earns
interest. The Payee will have immediate access to all
or any part of the account. We will pay interest on
the proceeds from the date they become payable to the
date of payment as stated above. Interest will be
payable at a rate that will be set each year by us and
that will not be less than that required by law or 3%
per year, if greater.
On request, all or part of the proceeds payable in one
sum at the death of the Insured can be applied to any
Payment Option at the choice of the Payee. Further,
with our consent, any Payee who is entitled to receive
proceeds in one sum when a Payment Option ends, or at
the death of a prior Payee, or when the proceeds are
withdrawn, can choose to apply the proceeds to a
Payment Option.
CHOICE OF PAYMENT The choice of a Payment Option and the naming of the
OPTIONS; OPTION DATE Payee must be in written form satisfactory to us. You
can make or change or revoke the choice before the
death of the Insured. The Option Date is the effective
date of the Payment Option, as chosen.
When a Payment Option starts, we will issue a contract
that will describe the terms of the Option. We may
require that you send us this Policy.
PAYEE A Payee is a person, a corporation, a partnership, a
fiduciary or any other legal entity entitled to
receive the Policy Proceeds or surrender proceeds in
one sum or under a Payment Option.
If the Payee is not a natural person, the choice of a
Payment Option will be subject to our approval. A
collateral assignment will modify a prior choice of a
Payment Option. The amount due the assignee will be
payable in one sum and the balance will be applied
under the Payment Option.
LIFE INCOME OPTIONS Guaranteed Life Income Options are based on the age of
the Payee on the Option Date. We will require proof of
age. The Life Income payments will be based on the
rates shown in the Life Income Tables; or, if they are
greater, our Payment Option rates on the Option Date.
If the rates at a given age are the same for different
periods certain, the longest period certain will be
deemed to have been chosen.
DEATH OF PAYEE Amounts to be paid after the death of a Payee under a
Payment Option will be paid as due to the successor
Payee. If there is no successor Payee, amounts will be
paid in one sum to the estate of the last Payee to
die. If a Payee under a Life Income Option dies within
30 days after the Option Date, the amount applied to
the Option, less any payments made, will be paid in
one sum, unless a Payment Option is chosen.
LIMITATIONS If instalments under an Option would be less than $50,
proceeds can be applied to a Payment Option only with
our consent.
10. PAYMENT OPTIONS
INTEREST INCOME The proceeds applied to this Option will earn
interest. Interest on the proceeds:
1. Will be paid monthly; or
2. Will be added to the principal amount each year
and will earn interest.
Withdrawals of at least $500 each may be made at any
time by written request.
INSTALMENT INCOME FOR A Monthly instalment payments will be made so that the
STATED PERIOD proceeds applied, with interest, will be paid over the
period chosen (from 1 to 30 years). Any interest paid
above 3% (See Payment Option Rates below) by us for
any year will be added to the monthly payments for
that year.
INSTALMENT INCOME OF A Monthly instalment payments of a chosen amount will
STATED AMOUNT be made until the entire proceeds applied, with
interest, is paid.
SINGLE LIFE INCOME - Monthly payments will be made during the lifetime of
GUARANTEED PAYMENT the Payee with a chosen guaranteed payment period of
PERIOD 10, 15 or 20 years.
SINGLE LIFE INCOME - Monthly payments will be made during the lifetime of
GUARANTEED RETURN the Payee. If the payee dies before the total amount
applied under this plan has been paid, the remainder
will be paid in one sum.
JOINT AND SURVIVOR LIFE Monthly payments will be made:
INCOME
1. While either of two Payees is living, but for at
least 10 years, called "Joint and Survivor Life
Income, 10 Years Certain"; or
2. While two Payees are living, and after the death
of one Payee, two-thirds of the monthly amount
while the other Payee is living, called "Joint and
2/3 to Survivor Life Income".
OTHER FREQUENCIES AND Other Payment Options and payment frequencies may be
OPTIONS arranged with us.
PAYMENT OPTION RATES Amounts applied under the interest income and
instalment payment plans will earn interest at a rate
we set from time to time; but the rate will not be
less than 3% per year.
11. LIFE INCOME TABLES
MINIMUM PAYMENTS UNDER Monthly payments for each $1,000 applied will not be
PAYMENT OPTIONS less than the amounts shown in the following Tables.
On request, we will provide additional information
about amounts of minimum payments.
The rates shown below are based on an interest rate of
3% per year and based on the 1983 IAM Mortality Table
with projection to 1992 using projection Scale G.
--------------- ----------------- ---------------- ----------------- ---------------- ---------------
INSTALMENT INCOME FOR A Years Chosen Monthly Payment Years Chosen Monthly Payment Years Chosen Monthly Payment
STATED PERIOD --------------- ----------------- ---------------- ----------------- ---------------- ---------------
1 $84.47 11 $8.86 21 $5.32
2 42.86 12 8.24 22 5.15
3 28.99 13 7.71 23 4.99
4 22.06 14 7.26 24 4.84
5 17.91 15 6.87 25 4.71
6 15.14 16 6.53 26 4.59
7 13.16 17 6.23 27 4.47
8 11.68 18 5.96 28 4.37
9 10.53 19 5.73 29 4.27
10 9.61 20 5.51 30 4.18
--------------- ----------------- ---------------- ----------------- ---------------- ---------------
-------------------- ---------------------------------------------------- -----------------------------
SINGLE LIFE Guaranteed Payment Period
INCOME Payee's ----------------------------------------------------
Age 10 Years 15 Years 20 Years Guaranteed Return
-------------------- ---------------- --------------- ----------------- -----------------------------
50 $3.48 $3.47 $3.45 $3.41
55 3.72 3.70 3.66 3.61
60 4.02 3.98 3.92 3.86
65 4.40 4.33 4.21 4.17
70 4.90 4.76 4.54 4.57
75 5.55 5.25 4.87 5.06
80 6.34 5.77 5.13 5.69
85 and over 7.25 6.21 5.28 6.49
-------------------- ---------------- --------------- ----------------- -----------------------------
-------------------- ---------------------------------------- ---------------------------------------
JOINT AND SURVIVOR LIFE Age of Both Payees Joint and Survivor, 10 Years Certain Joint and 2/3 to Survivor
INCOME -------------------- ---------------------------------------- ---------------------------------------
55 $3.36 $3.48
60 3.58 3.73
65 3.87 4.05
70 4.25 4.48
75 4.76 5.07
-------------------- ---------------------------------------- ---------------------------------------
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
NON - PARTICIPATING
NEW ENGLAND LIFE
INSURANCE COMPANY
BOSTON, MASSACHUSETTS 02116