[GENERAL AMERICAN LOGO] EXHIBIT 99.1.A.5(b)
3E-40-02
POLICY NUMBER:
[16,000,001]
LIFE INSURANCE COMPANY
ST. LOUIS, MISSOURI 63166
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 SEPARATE ACCOUNT INVESTMENT EXPERIENCE AND ON THE GENERAL
ACCOUNT INTEREST. SEE THE SEPARATE ACCOUNT CASH VALUE PROVISION AND THE GENERAL
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 General American
Life Insurance Company. PLEASE READ YOUR CONTRACT CAREFULLY.
Signed for the Company at its Home Office, [St. Louis, Missouri 63166.
(1-800-638-9294)]
VP, GENERAL COUNSEL, PRESIDENT AND CEO
AND SECRETARY
ALPHABETIC GUIDE TO YOUR CONTRACT
Section
- -------
4 Addition, Deletion or Substitution of
Investments
6 Allocation of Net Premiums
8 Asset Charge
2 Assignments
8 Basis of Computation
2 Beneficiary
8 Cash Surrender Value
8 Cash Values
8 Cash Value on or After Attained Age 100
5 Change in Death Benefit Option
5 Change in Face Amount
3 Change of Insured
2 Change of Owner or Beneficiary
3 Claims of Creditors
5 Continuation of the Policy Beyond
Attained Age 100
3 Contract
3 Conversion Rights
5 Death Benefit
1 Definitions
5 Definition of Life Insurance
4 Divisions
6 Federal Tax Charge
8 General Account Cash Value
8 General Account Interest Rate
6 Grace Period
3 Incontestability
1 Issue Date
11 Life Income Tables
8 Loan Account Cash Value
7 Loans
3 Misstatement of Age or Sex and
Corrections
8 Monthly Administration and Issue Expense
Charge
8 Monthly Cost of Insurance
8 Monthly Cost of Insurance Rates
8 Monthly Deduction
8 Monthly Policy Charge
8 Net Investment Factor
6 Net Premium
6 No Lapse Period
2 Owner
8 Partial Withdrawals
9 Payment of Policy Benefits
6 Payment of Premiums
6 Percent of Premium Charge
10 Payment Options
5 Policy Changes
1 Policy Date
5 Policy Proceeds
8 Postponement of Payments or Transfers
6 Premium Tax Charge
6 Reinstatement
2 Requests for Changes and/or
Information
8 Separate Account Cash Value
4 Separate Account Provisions
3 Statements in Application
3 Suicide Exclusion
8 Surrender
8 Surrender Charge
4 Transfer
3 Unisex Basis
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
<Table>
INSURED [JOHN DOE]
POLICY NUMBER [16,000,001]
ISSUE DATE [JANUARY 1, 2002]
POLICY DATE [JANUARY 1, 2002]
DEATH BENEFIT OPTION [OPTION A]
INSURED AGE [35]
SEX [MALE]
PLANNED ANNUAL PREMIUM:
1ST YEAR [$800.00]
YEAR 2 [$800.00]
QUALIFIED ROLLOVER PREMIUM [$0.00]
NO LAPSE ANNUAL PREMIUM [$355.32]
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%]
</Table>
BENEFITS - AS SPECIFIED IN POLICY AND IN ANY RIDER AT ISSUE
<Table>
<Caption>
POLICY PLAN FACE AMOUNT RISK
CLASSIFICATION
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE:
[$50,000] [STANDARD SMOKER]
</Table>
POLICY SPECIFICATIONS (CONTINUED)
SEPARATE ACCOUNT [SEPARATE ACCOUNT 11 ]
MAXIMUM NUMBER OF ACCOUNTS ON THE INVESTMENT START DATE [49]
MAXIMUM NUMBER OF ACCOUNTS AFTER THE INVESTMENT START DATE [49]
GENERAL ACCOUNT CASH VALUE GUARANTEED INTEREST RATE [3%]
GENERAL ACCOUNT MAXIMUM ALLOCATION PERCENT [100%]
GENERAL 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 General American 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 General Account and/or the Divisions of the
Separate 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 The amount of premium, if any, that was paid as a
ROLLOVER result of replacing an existing life insurance policy
PREMIUM 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.
GENERAL ACCOUNT The assets held by us, excluding any Loan, other than
those allocated to the Divisions of the Separate
Account or any other Separate Account.
SEPARATE 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 General
Account and the
Divisions of the Separate Account the amount of any
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 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 Owners
AND BENEFICIARY 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, Executive
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.
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 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, Risk
Classification or Issue Age.
If you exercise your one time conversion right, we will
automatically allocate all future Net Premiums to the
General 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 that
CORRECTIONS 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 illustration
BENEFITS AND VALUES 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. SEPARATE ACCOUNT PROVISIONS
SEPARATE ACCOUNT The variable benefits under this Policy are provided
through investments in the Separate 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 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.
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 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 shares of registered investment companies or
other pools of investment assets.
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.
The values and benefits of a policy depend on: the
investment performance of the portfolios in which the
Divisions are invested; and the interest credited to the
General Account. We do not guarantee the investment
performance of the
portfolios of the Divisions. You bear the investment risk
for amounts invested in the Divisions 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 General Account and the Divisions of
Separate Account; or
2. Among the Divisions of Separate 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 General Account (the General
Account Maximum) in any policy year will be the
greater of a. and b.
a. The Cash Surrender Value of the General
Account at the beginning of that policy year
times the General Account Maximum Withdrawal
Percent Limit, as shown on the Policy
Specifications page.
b. The previous policy year's General Account
Maximum withdrawal amount.
However, if less than $100 would remain in
the General Account after the transfer, you
can transfer the remainder to the Divisions
of the Separate Account.
The General Account Cash Value immediately
after any transfer to the General Account
cannot exceed i., below, times ii., below:
i. The General Account Cash Value plus the Separate
Account Cash Value.
ii. The General 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 Separate Account or that the
INVESTMENTS Separate Account may purchase. When a change is made, we
will send you: a revised prospectus for the Separate
Account which will describe all of the funds then
available for this Policy in the Separate Account or its
successor or any other investment company in which the
Separate 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 Division will
then invest:
1. The value of the removed shares of the fund; and
2. Future net premiums applied to that Division.
The investment policy of the Separate Account will not be
changed unless: (a)
the change has been approved by the Insurance
Commissioner of the State of Missouri; 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 This Policy is intended to qualify as a life insurance
LIFE 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 If this Policy is in force on or after the Insured's Attained
OF THE POLICY Age 100 and if the age of the Insured on the Issue Date is
AFTER ATTAINED Attained Age 80 or younger, the Death Benefit will be equal to
AGE 100 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 You may request policy changes at any time unless we
CHANGES 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 The Face Amount may be changed by sending us a written
FACE AMOUNT 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 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 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 After the first policy year and prior to the Insured's
DEATH BENEFIT Attained Age 100, changes to the Death Benefit Option will be
OPTION 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 Your first premium is due as of the Policy Date.
OF PREMIUMS 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 A charge will be deducted for premium taxes from each
CHARGE premium submitted. The Maximum Premium Tax Charge, as
a percent of the premium, is shown on the Policy
Specifications page.
FEDERAL TAX A charge will be deducted for federal taxes from each
CHARGE premium submitted. The Maximum Federal Tax Charge, as
a percent of the premium, is shown on the Policy
Specifications page.
PERCENT OF A charge will be deducted from each premium
PREMIUM submitted. The Maximum Percent of Premium Charge is
CHARGE shown on the Policy Specifications page.
ALLOCATION OF You determine the allocation of Net Premiums among
NET the General Account and the Divisions of the Separate
PREMIUMS 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 General Account plus
the Divisions of the Separate 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 General Account Cash Value
immediately after payment of the premium cannot
exceed 1., below, times 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. The total number of
accounts (the General Account plus the Divisions of
the Separate 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 General
Account Maximum Allocation Percent at any time.
The Policy's first investment of the Net Premium is
made in the Money Market Division as of the
Investment Start Date. The Policy's Cash Value will
be transferred, based on your choice, to the
Divisions and the General 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 Division. After this transfer, each Net
Premium allocated to the Separate Account will be
applied to the Divisions 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 If you have not exercised your Conversion Rights, you
CHANGE may change the allocation of future Net Premiums
ALLOCATION among the General Account and/or the Divisions of the
Separate 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 If, on a monthly anniversary day prior to the No
PERIOD 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 General 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 General Account
and the Divisions of the Separate Account. If you do
not specify the allocation, then the 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 less the Cash Value in the Loan
Account, on the date of the Loan.
Cash Value equal to the 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. The transferred Cash Value:
will be allocated to the appropriate Loan SubAccount;
and will earn interest at the General 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 General Account and the
Divisions of Separate 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 The accrued Loan Interest will be due the earliest
DUE DATE 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 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 less the
Cash Value in the Loan Account.
FIXED LOAN Loan Interest will be charged on any Loan. The rate
INTEREST RATES of interest will not exceed the Maximum Loan Interest
Rate shown on the Policy Specifications page. Loan
Interest is payable in arrears.
LOAN You may repay your Loan in whole or in part at any
REPAYMENTS 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 General
Account and the Divisions of Separate 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 General Account; plus
2. The Cash Value in the Divisions of the
Separate Account, plus
3. The Cash Value in the Loan Account.
CASH VALUE ON If this Policy is in force on or after the Insured's
OR AFTER Attained Age 100, the Cash Value of your Policy will
ATTAINED AGE be determined in the same manner as described below;
100 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.
GENERAL The Cash Value in the General Account as of the
ACCOUNT CASH Investment Start Date is equal to:
VALUE
1. The portion of the initial Net Premium
received and allocated to the General
Account; less
2. The portion of the Monthly Deductions due
from the Policy 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:
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 General Account on that
day; plus
3. Any amounts transferred to the General
Account on that day; plus
4. Any loan repayments allocated to the General
Account on that day; plus
5. That portion of any interest credited on an
outstanding Loan which is allocated to the
General Account on that day; less
6. Any amount transferred from the General
Account to the Divisions of the Separate
Account on that day; less
7. Any partial withdrawal made from the General
Account on that day; less
8. Any portion of a Processing Charge taken
from the General Account; less
9. Any portion of the Surrender Charge incurred
on that day attributed to the General
Account; less
10. Any amount transferred from the General
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 General Account, to cover the policy
month that starts on that day.
The Cash Value in the General Account can be
negative.
GENERAL The interest credited to the General Account Cash
ACCOUNT Value for a specific day will be at an effective
INTEREST RATE annual rate not less than the General Account Cash
Value Guaranteed Interest Rate shown on the Policy
Specifications page.
SEPARATE The Cash Value in each Division of the Separate
ACCOUNT CASH Account on the Investment Start Date is equal to:
VALUE
1. The portion of the initial Net Premium
received and allocated to the Division; less
2. The portion of the Monthly Deductions due
from the Policy 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:
1. The Cash Value in the Division on the
preceding Valuation Date times that
Division's Net Investment Factor for the
current Valuation Period; plus
2. Any portion of Net Premium received and
allocated to the Division during the current
Valuation Period; plus
3. Any amounts transferred to the Division from
the General Account or from another Division
during the current Valuation Period; plus
4. Any Loan repayments allocated to the
Division during the current Valuation
Period; plus
5. That portion of any interest credited on an
outstanding Loan which is allocated to the
Division during the current Valuation
Period; less
6. Any amounts transferred from the Division
during the current Valuation Period; less
7. Any partial withdrawal from the Division
during the current Valuation Period; less
8. Any portion of the Surrender Charge incurred
during the current Valuation Period
attributed to the Division; less
9. Any portion of a Processing Charge taken
from the Division; less
10. Any amount transferred from the Division 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 Division
during the current Valuation Period to cover
the policy month which starts during that
Valuation Period.
The Cash Value in a Division can be negative.
VARIABLE At the end of a Valuation Date, the current market
ACCUMULATION value of a Division is determined by multiplying that
UNITS Division's accumulation unit value times the number
of Division units held under this Policy.
The number of Division accumulation units will
increase when:
1. Any portion of a Net Premium is allocated to
that Division;
2. Amounts are transferred to that Division; or
3. Loans are repaid and credited to that
Division.
The number of Division accumulation units will
decrease when:
1. Any portion of the Monthly Deduction is
deducted from that Division;
2. A Loan is taken from that Division;
3. An amount is transferred from that Division;
4. A Processing Charge is taken from that
Division;
5. A Surrender Charge is taken from that
Division; or
6. A partial withdrawal is taken from that
Division.
VALUE OF EACH The value of an accumulation unit may increase or
ACCUMULATION decrease from one Valuation Period to the next. For
UNIT 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 Division
for the current Valuation Period.
NET The Net Investment Factor measures the investment
INVESTMENT performance of a Division during a Valuation
FACTOR Period. The Net Investment Factor for each Division
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 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; divided by
5. 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
CASH VALUE 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 General Account on that day; plus
3. Any amount transferred to the Loan Account
from the Divisions of the Separate 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 General Account on that day; less
6. Any amount transferred from the Loan Account
to the Divisions of the Separate Account on
that day.
MONTHLY COST The Monthly Cost of Insurance for the following month
OF 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 The Net Amount at Risk equals:
RISK
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 The Net Amount at Risk will be allocated to coverages
NET AMOUNT AT in the following order:
RISK
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 At the beginning of each policy year, the Monthly
OF INSURANCE Cost of Insurance rate is determined for the initial
RATES 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 An Administration and Issue Expense Charge will be
ADMINISTRATION deducted each policy month from the Cash Value as
AND ISSUE part of the Monthly Deduction. This charge equals the
EXPENSE applicable Face Amount times an Administration and
CHARGE 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 A Policy Charge will be deducted each policy month
POLICY CHARGE 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
Separate 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 We may reduce or eliminate certain charges. The
OF CHARGES 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 On the first day of each policy month, whether or not
DEDUCTION 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 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 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 General Account or to a specific
Division until the Cash Value in the Policy's portion
of the General Account or that Division is
insufficient to cover the entire Monthly Deduction;
and then to the General Account and the remaining
Divisions 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
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 Cost of Insurance Rates, Percent of Premium Charges,
OF Monthly Administration and Issue Expense Charges,
NONGUARANTEED Monthly Policy Charges, Monthly Asset Charges and
FACTORS 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 The Cash Surrender Value of this Policy is:
SURRENDER
VALUE
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 After the Right to Examine Policy period, upon our
WITHDRAWALS 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, General Account
Partial Withdrawals and Separate 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 General Account and the Divisions
of the Separate Account in the same proportion that
the partial withdrawal was allocated among the
General Account and the Divisions of the Separate
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 You may allocate the partial withdrawal plus any
PARTIAL applicable Surrender Charge, subject to the
WITHDRAWALS conditions below, among the General Account and the
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 less 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.
GENERAL You may request a partial withdrawal be taken from
ACCOUNT your Cash Surrender Value in the General Account.
PARTIAL
WITHDRAWALS
The maximum amount of all partial withdrawals and
transfers from the General Account in a policy year
will be the greater of 1. and 2:
1. The Cash Surrender Value of the General
Account at the beginning of that policy year
times the General Account Maximum Withdrawal
Percentage Limit, as shown on the Policy
Specifications page.
2. The previous year's General Account Maximum
withdrawal amount.
However, if less than $100 would remain in the
General Account after the withdrawal, you can
withdraw the entire amount of Cash Surrender Value in
the General Account.
SEPARATE You may request a partial withdrawal be taken from
ACCOUNT your Cash Surrender Value in a Division of the
PARTIAL Separate Account.
WITHDRAWALS
The maximum amount of your partial withdrawal from
any one of the Divisions of the Separate Account will
be the Cash Surrender Value of that Division.
SURRENDER A Surrender Charge will apply: upon surrender; upon
CHARGE 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
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 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 General
Account and the Divisions of the Separate Account in
the same proportion that the partial withdrawal was
allocated among the General Account and the Divisions
of the Separate 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 We will usually pay any amounts payable on Loans,
OF PAYMENTS surrender or partial withdrawals allocated to the
OR TRANSFERS Divisions of the Separate 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 Divisions of the Separate
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
Separate Account.
We may defer payment of the portion of any amount
payable from the General 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 General Account for not more than six months. No
payment from the General 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 The choice of a Payment Option and the naming of the
PAYMENT Payee must be in written form satisfactory to us. You
OPTIONS; can make or change or revoke the choice before the
OPTION DATE 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 Guaranteed Life Income Options are based on the age
OPTIONS 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 The proceeds applied to this Option will earn
INCOME 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 Monthly instalment payments will be made so that the
INCOME FOR A proceeds applied, with interest, will be paid over
STATED PERIOD 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 Monthly instalment payments of a chosen amount will
INCOME OF A be made until the entire proceeds applied,
STATED with interest, is paid.
AMOUNT
SINGLE LIFE Monthly payments will be made during the lifetime of
INCOME - the Payee with a chosen guaranteed payment period of
GUARANTEED 10, 15 or 20 years.
PAYMENT
PERIOD
SINGLE LIFE Monthly payments will be made during the lifetime of
INCOME - the Payee. If the payee dies before the total amount
GUARANTEED applied under this plan has been paid, the remainder
RETURN 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 Other Payment Options and payment frequencies may be
FREQUENCIES arranged with us.
AND
OPTIONS
PAYMENT Amounts applied under the interest income and
OPTION RATES 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 Monthly payments for each $1,000 applied will not be
PAYMENTS less than the amounts shown in the following Tables.
UNDER On request, we will provide additional information
PAYMENT about amounts of minimum payments.
OPTIONS
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 Monthly Years Monthly Years Monthly
STATED PERIOD Chosen Payment Chosen Payment Chosen Payment
------ ------- ------ ------- ------ -------
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 Age of Both Joint and Survivor,
SURVIVOR LIFE Payees 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
[GENERAL
AMERICAN
LOGO]
LIFE INSURANCE COMPANY
ST. LOUIS, MISSOURI 63166