Contract form number
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PLEASE READ THIS CONTRACT CAREFULLY
This modified single payment variable universal life insurance Contract is a
legal contract between you ("the owner") and Transamerica Occidental Life
Insurance Company ("we" and "the Company"). If you pay the required payments, we
will pay your beneficiary the net death benefit when the person you are insuring
("the insured") dies prior to the Maturity Date or, if the insured is alive on
the Maturity Date, we will pay the surrender value to the owner on the Maturity
Date. If the Contract is issued with two insureds, the net death benefit is
payable at the death of the survivor of the insureds. No benefit will be paid as
a result of the death of the first of the insureds to die.
THE NET DEATH BENEFIT AND CONTRACT VALUE, WHEN BASED ON THE INVESTMENT
PERFORMANCE OF THE VARIABLE ACCOUNT, MAY INCREASE OR DECREASE AND ARE NOT
GUARANTEED AS TO A FIXED DOLLAR AMOUNT. PLEASE REFER TO THE VARIABLE ACCOUNT AND
"WHAT YOU SHOULD KNOW ABOUT THE DEATH BENEFIT" SECTIONS FOR ADDITIONAL
INFORMATION. WE AGREE TO PAY THE BENEFITS OF THIS CONTRACT IN ACCORDANCE WITH
ITS TERMS.
RIGHT TO CANCEL We want you to be satisfied with the Contract you have
purchased, and we urge you to examine it closely. If for any reason you are not
satisfied, you may return the Contract to us or an authorized representative
within 10 days after receipt of the Contract. If you return the Contract, it
will be void from the date of issue, and you will receive a refund equal to the
total of: 1. the difference between any payments made, including fees or any
other charges, and the amounts allocated to the Variable Account; 2. the value
of the amounts in the Variable Account on the date the returned Contract is
received at our Variable Life Service Center; and 3. any fees or other charges
imposed on amounts in the Variable Account.
TRANSAMERICA OCCIDENTAL LIFE INSURANCE COMPANY
Home Office: 1150 South Olive, Los Angeles, California 90015 Variable Life
Service Center: 440 Lincoln Street, P.O. Box 3800, Worcester, Massachusetts
01653
This is a legal contract between Transamerica Occidental Life Insurance Company
and the owner. It is issued in consideration of the payment shown on the
specification pages.
MODIFIED SINGLE PAYMENT VARIABLE UNIVERSAL LIFE INSURANCE CONTRACT
NON-PARTICIPATING
Executive Vice President, General Counsel and Corporate Secretary
President and CEO
Table of Contents
Specification Pages 3
Definitions 6
General Terms 10
Information about you and the beneficiary 12
What you should know about:
The payments 13
Your Contract Value 15
The Variable Account 17
The Fixed Account 20
Transfers 22
Borrowing from your Contract 23
Surrenders and partial withdrawals 24
The death benefit 26
The benefit payment options 28
Specification
Contract Number: [specimen]
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[First] Insured: [John Doe] [First] Insured's Sex: [Male]
[First] Insured's Age: [55] [First] Insured's Underwriting Class: [Non-smoker]
- --------------------------------------------------------------------------------------------
[Second Insured:] [Second Insured's Sex:]
[Second Insured's Age:] [Second Insured's Underwriting Class:]
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Date of Issue: [01/01/1999] Contract Plan: Modified Single Payment Variable
Universal Life Insurance Contract
Face Amount: [$318,554] Monthly Processing Date:
[1st of each month]
Owner(s): [John Doe] Rider(s): [Guaranteed Death Benefit
Living Benefits]
Beneficiary at Issue: [Mary Doe] Rider[s] Date of Issue: [01/01/99]
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Payment: [$50,000]
Maximum Payment: The greater of [$50,000] or [$x,xxx] times the current
Contract year.
Guideline Single Payment: [$x]
Guideline Level Payment: [$x]
Guaranteed Death Benefit Payment:
[$x]
Final Payment Date: [01/01/1999]
Maturity Date: [01/01/2059]
Initial Payment Allocation:
Variable Sub-Accounts
[30% Transamerica VIF Growth Portfolio
20% Alliance VPF Premier Growth
20% Dreyfus VIF Capital Appreciation
20% OCC Accumulation Trust Managed
5% Janus Aspen Worldwide Growth
Fixed Account
[5%] Initial Interest Rate: [4%]
Advisers:
Transamerica Occidental Life Insurance Company
Alliance Capital Management L.P.
The Dreyfus Corporation
OpCap Advisors
Janus Capital Corporation]
Specification
[First] Insured: [John Doe] Contract Number: [specimen]
[Second Insured:]
==================================================================================================================
Minimum Additional Payment: [$10,000]
Minimum Fixed Account Interest Rates: [4% for value not subject to Outstanding Loan]
[4% for value securing Outstanding Loan - not Preferred Loan]
[5 1/2% for value securing Outstanding Loan - Preferred Loan]
Outstanding Loan Interest Rate: [6%]
Maximum Loan Amount: [90% of the result of the Contract Value less the surrender charge]
Minimum Loan Amount: [$1,000]
Minimum Balance After Withdrawal: [$10,000]
Free Withdrawal Amount: [10% of Contract Value]
Fees and Deductions: Current Guaranteed
Administration Charge: [0.30%] Annually (1) [0.30%] Annually (1)
Distribution Fee (Contract Years [1-10]): [0.40%] Annually (1) [0.40%] Annually (1)
Tax Charge (Contract Years [1-10]): [0.20%] Annually (1) [0.20%] Annually (1)
Insurance Protection Charge: [0.50%] Annually (1) See Page 5
Mortality & Expense Risk Charge: [0.80%] Annually (2) [0.80%] Annually (2)
Withdrawal Transaction Fee: [No fee assessed.] [2% of amount withdrawn, not to
exceed $25]
(1) This charge is deducted monthly from the Contract Value on a pro rata
basis. The monthly charge is equal to one-twelfth of this factor
times the Contract Value.
(2) This charge is deducted daily from each sub-account of the Variable Account.
Surrender Charge Table*
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Contract Year Surrender Charge
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[1 9%
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2 8%
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------------------------- -------------------------------
3 7%
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4 6%
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5 5%
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6 4%
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7 3%
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8 2%
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9 1%
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10+ 0%]
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The surrender charge is determined by multiplying (a) the portion of the
Contract Value withdrawn which is attributed to payments that will be reduced
for a withdrawal in excess of the free withdrawal amount by (b) the percentage
for the applicable year. * If your Contract is reinstated, the surrender charge
on the date of reinstatement will be the surrender charge that was in effect on
the date of default. Subsequent surrender charges will be adjusted accordingly.
If you have questions regarding this Contract or need assistance about your
coverage, please call our Variable Life Service Center. The phone number is
[1-(800)-782-8315].
Specification
[First] Insured: [John Doe] Contract Number: [specimen]
[Second Insured:]
Guaranteed Maximum Monthly Insurance Protection Rate Table
[Age] Insurance Protection Rate [Age] Insurance Protection Rate
[Age Younger Insured] ($) Per $1,000 [Age Younger Insured] ($) Per $1,000
[55 0.68 85 14.17
56 0.75 86 15.56
57 0.83 87 17.00
58 0.91 88 18.48
59 1.01 89 20.04
60 1.11 90 21.69
61 1.23 91 23.48
62 1.36 92 25.50
63 1.51 93 27.96
64 1.69 94 31.38
65 1.87 95 36.79
66 2.07 96 46.58
67 2.29 97 67.04
68 2.53 98 83.33
69 2.79 99 83.33]
70 3.09
71 3.44
72 3.83
73 4.29
74 4.79
75 5.33
76 5.90
77 6.51
78 7.15
79 7.84
80 8.62
81 9.49
82 10.50
83 11.62
84 12.86
Note: [Single life, Male, Age 55, Non-smoker] Based on 1980 CSO Age Last
Birthday (ALB) Table.
Definitions
These definitions shall control wherever the terms they define are used in this
Contract unless the context clearly indicates to the contrary.
Age means how old the insured is on his or her last birthday measured on the
date of issue and each contract anniversary, thereafter. However, for benefit
payment options, age is based on age nearest birthday of the designated
individual.
Application is the form you complete to apply for this Contract. It contains
your payment amount, payment allocation and other information that enable us to
prepare this Contract. If a medical questionnaire or other forms are required,
they become a part of the application. It is signed by you and the insured and
becomes a part of this Contract.
Assignee is a person to whom you transfer ownership or other rights under this
Contract.
Attained age is the insured's age as of the insured's last birthday at the start
of a contract year. Attained age is used in the calculation of the guideline
minimum sum insured.
Beneficiary is the person or persons you name to receive the net death benefit
when the Insured dies.
Code is the Internal Revenue Code of 1986, as amended, and rules and regulations
issued thereunder.
Collateral assignee is a person to whom you transfer some of this Contract's
ownership rights as collateral.
Company means Transamerica Occidental Life Insurance Company, also referred to
as we, our, and us. Our telephone number is [1-800-782-8315].
Contract anniversary is the same month and day as the date of issue in each
calendar year following the date of issue.
Contract change means any change in the underwriting class or the addition or
deletion of a rider.
Contract month is the period from the date of issue to the same day one month
later, and each one month period thereafter.
Contract owner is the person who may exercise all rights under the Contract,
with the consent of any irrevocable beneficiary or collateral assignee. "You"
and "your" refer to the contract owner in this Contract.
Contract Value is the sum of your values in the Variable Account and the Fixed
Account.
Contract year is the period from the date of issue through the day before the
first contract anniversary and, thereafter, the period of time beginning on the
contract anniversary and ending immediately before the next contract
anniversary.
Date of default is (a) the first day of the grace period, or (b) the date on
which the outstanding loan exceeds the Contract Value less surrender charges.
Date of issue is the date coverage under this policy becomes effective and is
stated on the specification pages. Contract months, years and anniversaries are
measured from this date.
Designated individual is a person specified by the payee upon whose life
expectancy a benefit payment option amount is based and upon whose life
continued payments depend. If the payee is the contract owner, the designated
individual may be the insured, or if applicable, another living individual. If
the payee is the beneficiary, the designated individual may be the beneficiary
or another living individual.
Earnings means the amount by which the Contract Value exceeds the sum of the
payments made less any payments that were previously considered withdrawn. For
contract loan purposes, Earnings are calculated on each monthly processing date.
Evidence of insurability is the information, including medical information, that
we use to decide whether to issue the requested coverage, to determine the
underwriting class for the person insured, or to determine whether the Contract
may be reinstated.
Face amount is the amount of insurance you elect to buy in the application and
which we agree to issue. The face amount is shown in the specification pages of
the Contract. The death benefit is based on the face amount; see the "What You
Should Know About The Death Benefit" section.
Final payment date is the contract anniversary coinciding with or immediately
following the insured's 100th birthday. If there are two insureds, the final
payment date is the contract anniversary coinciding with or immediately
following the younger insured's 100th birthday. This date is shown on the
specification pages. No payments are permitted by you after this date. No
monthly deduction (including insurance protection charges) will be deducted from
the Contract Value after this date. Generally, the net death benefit after this
date will equal 101% of the Contract Value minus any outstanding loan, except as
otherwise provided in a Guaranteed Death Benefit Rider if attached to this
Contract.
Fixed Account is the part of the Company's General Account to which all or a
portion of a payment or transfer may be allocated.
General Account is the assets of the Company that are not allocated to a
Separate Account.
Guideline Minimum Sum Insured is an amount which is not less than the minimum
death benefit required to qualify the Contract as "life insurance" under the
Code. The guideline minimum sum insured is the product of
the Contract Value times
a percentage based on the insured's attained age.
Guideline premium is a limit imposed by the Code on payments you make to the
Contract. The guideline premium for the Contract is shown on the specification
pages as the Maximum Payment. The guideline premium includes the guideline
single premium which is also used to determine the face amount under the
Contract.
Insurance protection amount is the death benefit minus the Contract Value.
Insured is the person or persons covered as indicated on the specification
pages. If more than one insured is named, all provisions of this Contract that
are based on the death of the insured will be based on the death of the survivor
of the persons named.
Loan value is the maximum amount you may borrow under the Contract.
Maturity Date is the contract anniversary coinciding with or immediately
following the insured's 115th birthday. If there are two insureds, the maturity
date is the contract anniversary coinciding with or immediately following the
younger insured's 115th birthday.
Monthly deduction is the amount of money that we deduct from the Contract Value
each contract month to pay for the Administration Charge, Monthly Insurance
Protection Charge, Distribution Fee, Tax Charge, and any Rider Charge shown on
the specification pages.
Monthly insurance protection charge is the amount of money that we deduct from
the Contract Value each contract month to pay for the insurance protection
amount.
Monthly processing date is the day of each month on which a monthly deduction is
made. This date is shown on the specification pages. If the Company is not open
on this date, the processing date for that contract month will be the next
business day.
Net death benefit is the amount payable as a result of the death of the insured
calculated as explained in the net death benefit provision.
Outstanding loan means all unpaid contract loans plus interest due or accrued on
such loans.
Payee is the person with the right to elect an available benefit payment option
and to receive the payments under a benefit payment option. The contract owner
is the payee under the benefit payment option if the option is elected as a
method of receiving surrender or maturity proceeds. The beneficiary is the payee
under a benefit payment option elected as a method of receiving net death
benefits.
Payment means the initial money you provide in consideration for the issuance of
this Contract and any additional amount you pay into the Contract.
Portfolio is a separate investment series of a registered investment company for
investment by a sub-account.
Pro rata refers to an allocation among the sub-accounts and the Fixed Account. A
pro rata allocation will be in the same proportion that the portion of the
Contract Value in each sub-account and the portion of the Contract Value in the
Fixed Account have to the total Contract Value net of any outstanding loans.
Preferred Loan is the portion of any outstanding loan secured by Earnings.
Preferred Loan Rate is the Minimum Fixed Account Interest Rate for the value
securing Outstanding Loan Preferred Loan, as shown in the specification pages.
Rider is a document attached to this Contract that adds an optional benefit. An
additional charge may be required for a rider.
Second-to-die describes a contract issued as a joint survivorship
("Second-to-Die") Contract. Life insurance coverage is provided for two
insureds, with death benefits payable at the death of the survivor.
Separate account is a segregated account established by the Company. The assets
are not commingled with the Company's general assets and are not subject to
claims of the Company's creditors.
Specification pages contain information specific to your Contract and are
located after the Table of Contents.
Sub-accounts are subdivisions of the Variable Account investing exclusively in
the shares of one or more portfolios.
Surrender value is the amount payable on a full surrender. It is the Contract
Value less any outstanding loan and surrender charges.
Transamerica is Transamerica Occidental Life Insurance Company. "We", "our",
"us" and "Company" refer to Transamerica in this Contract.
Underwriting class means the insurance risk classification that we assign to the
insured based on the information in the application and any other evidence of
insurability we obtain. The underwriting class affects the monthly insurance
protection charge.
Unit is a measure of your interest in a sub-account.
Valuation date is each day that the New York Stock Exchange (NYSE) is open for
business and any other day that there is enough trading in the Variable
Account's underlying portfolio securities to materially affect the value of the
Variable Account.
Valuation period is the period between the close of business on successive
valuation dates.
Variable Account is the Company's separate account, consisting of sub-accounts
that invest in the underlying portfolios.
Variable Life Service Center is the Company's office at 440 Lincoln Street, P.O.
Box 3800, Worcester, Massachusetts 01653.
Written request is a signed request you make in written form that is
satisfactory to us and filed at our Variable Life Service Center.
You or your means the owner of this Contract as shown in the application or in
the latest change filed with us.
General Terms
Entire Contract We have issued this Contract in
consideration of the application and your Contract
payment. A copy of the application is attached and
is part of this Contract. This Contract, with a
copy of the application, and any attached riders,
is the entire Contract between you and us. The
entire Contract also includes:
a copy of any application to change to a
better underwriting class, any new
specification pages, and any supplemental
pages issued.
All statements made by or for the insured will be
considered representations and not warranties. We
will not use any statements made by or for the
insured to deny a claim unless the statement is in
the application and the application is attached to
this Contract when it is issued or delivered. Our
representatives are not permitted to change this
Contract or extend the time for making payments.
Only our President or a Vice President together
with our Secretary may change the provisions of
this Contract, and then only in writing.
Right To Contest The A contest is any action taken by us to cancel your
insurance or deny a claim based on Contract Is Limited untrue or incomplete
answers in your application. Except for fraud or nonpayment of
payments, this Contract will be incontestable after
it has been in force during the lifetime of the
insured for two years from the date of issue. This
provision does not apply to any riders providing
benefits specifically for disability or death by
accident.
If the underwriting class is changed at your
request, we cannot contest the change after it has
been in force for two years from its effective date
and the insured is alive.
Non-Participating No insurance dividends will be paid on this Contract.
Adjustment Of Interest We determine the Fixed Account interest rates used to
calculate the Contract Value, Rates subject to the guarantees on the
specification pages.
Suicide Exclusion If the insured dies by suicide, while
sane or insane, within two years from the date of
issue, we will be liable only for the total amount
of payments made to us less any outstanding loans
and amounts withdrawn.
Notice Of First To Die If more than one insured is named
on the specification pages, upon the death of the
insured who dies first, the owner agrees to mail
proof of death to the Variable Life Service Center,
within 90 days of the date of death, or as soon
thereafter as is reasonably possible.
Misstatement Of Age Or Sex On the date of death of the insured,
the death benefit will be reduced or increased if
the age or sex is misstated. The adjustment will be
based upon the ratio of the Maximum Payment for
this Contract shown on the first specification page
to the amount the Maximum Payment would have been
if the Contract had been issued at the correct age
or sex.
No adjustment will be made if:
The insured dies after the final payment date
and the Guaranteed Death Benefit Rider is not
in effect on the Contract; or
The underwriting class is unisex and there
has been a misstatement only of sex.
Protection Of Benefits To the extent allowed by law, the
benefits provided by this Contract cannot be
reached by the beneficiary's creditors. No
beneficiary may assign, transfer, anticipate, or
encumber the Contract Value or benefit unless you
give the beneficiary this right.
Periodic Report We will mail a report to you at your last known address at least
once a year. This report will provide the following information: o values in
each sub-account and in the Fixed Account; o the surrender value; payments made
by you and charges deducted by us since the last report; o any outstanding loan
and any other information required by law; and o the death benefit.
Information about you and the beneficiary
Owner The insured is the owner of this Contract unless
another person (which could be a trust,
corporation, partnership, etc.) is named as the
owner in the application. The owner may change the
ownership of this Contract without the consent of
any beneficiary except that an irrevocable
beneficiary must agree to the change in writing.
Assignment You may only change the ownership of this Contract by sending us a
written request. An absolute assignment will transfer ownership of the
Contract from you to another person called the assignee. You may also
assign this Contract as collateral to a collateral assignee. The
limitations on your ownership rights while a collateral assignment is in
effect are specified in the assignment. An assignment will take place only
when the written request is recorded at our Variable Life Service Center.
When recorded, it will take effect on the date it was signed by you. Any
rights created by the assignment will be subject to any payments made or
actions taken by us before the change is recorded. We are not responsible
for assuring that any assignment or any assignee's or collateral assignee's
interest is valid.
Beneficiary You name the beneficiary to receive the net death
benefit. The beneficiary's interest may be affected
by any assignment you make. If you assign this
Contract as collateral, all or a portion of the net
death benefit will be paid to the collateral
assignee; any money left over from the amount due
the assignee will go to those otherwise entitled.
Your choice of beneficiary may be revocable or
irrevocable. You may change a revocable beneficiary
at any time by written request, but an irrevocable
beneficiary must agree to any change in writing.
You will also need an irrevocable beneficiary's
permission to exercise other rights and options
granted by this Contract. Unless you have asked
otherwise, the beneficiary will be revocable.
Any change of the beneficiary must be made while
the insured is living. This change will take place
on the date the request is signed, even if the
insured is not living on the day we receive it at
the Variable Life Service Center. Any rights
created by the change will be subject to any
payments made, or actions taken, before we receive
the written request. If a beneficiary dies before
the insured, his or her interest in this Contract
will pass to any surviving beneficiaries in
proportion to their shares in the net death
benefit, unless you have requested otherwise. If
all beneficiaries die before the insured, the net
death benefit will pass to you or your estate.
Common Disaster Option The common disaster option may be elected and changed
after Contract issue by a written request. If the common disaster option is
in effect on the date of the insured's death, the beneficiary must be alive
for a certain number of days following the insured's date of death in order
to be entitled to receive a benefit. Otherwise, we will pay the net death
benefit as though the beneficiary died before the insured. The number of
days that the beneficiary must live after the insured's death is selected
by you when you elect the common disaster option but may not exceed 30
days. Unless you elect otherwise by written request, the common disaster
option under the Contract will provide for a 10-day period.
What you should know about the payments
Payments This Contract will not be in force until the payment shown on the
specification pages is paid to us. Additional payments may be made to us at
any time through the final payment date, but before the date of death of
the insured, subject to the minimum additional payment amount and the
maximum payment amount, shown on the specification pages. A payment
required to keep the Contract in force will not be subject to the minimum
additional payment or maximum payment limitations. Payments must be sent to
our Variable Life Service Center.
If you request it in writing, we will send you a
signed receipt after a payment. The payment amount
which must be paid to keep the Contract in force is
described in the Grace Period provision.
We may require evidence of insurability
satisfactory to us before accepting an additional
payment, if the additional payment would increase
the net death benefit.
Maximum Payment Limits We may limit the amount you pay us.
This limit will not be less than the Guideline
Premium. The sum of all payments made from the date
of issue, minus any partial withdrawals, may not be
more than the greater of: o The guideline single
payment, or o The sum of the guideline level
payments on the date of payment.
The guideline payment limits are shown on the
specification pages. These payment limitations will
not apply if they prevent you from paying us enough
to keep the Contract in force.
Guideline payment limits are determined according
to rules in the Code and will be adjusted as
changes are made to the Code.
If the payments made exceed the amount allowable
for this Contract to continue to qualify as a life
insurance Contract under Code Section 7702 and the
regulations thereunder, as applicable to this
Contract from time to time, we will remove excess
payments made from the Contract, with interest.
Such an excess amount could occur, for example, as
a result of a partial withdrawal or other change in
the benefits or terms of the Contract, since such
actions may reduce the guideline payment limits
allowable for the Contract. The portion of any
payment that cannot be accepted will be applied
first against any outstanding contract loans. We
will refund to you any excess amount (including
interest) not later than 60 days after the end of
that contract year.
The amount refundable will not exceed the surrender
value of the Contract. If the entire surrender
value is refunded, we will treat the transaction as
a full surrender of your Contract.
GracePeriod This Contract will terminate 62 days after a monthly processing
date on which the surrender value is less than the monthly deduction due.
The 62-day period is a grace period. At least 61 days before the end of the
grace period, we will mail the Owner and any assignee written notice of the
amount of payment that will be required to continue this Contract in force.
The required payment will be no greater than the amount required to pay the
guaranteed monthly deductions for three months as of the day the grace
period began. If the amount shown in the notice remains unpaid at the end
of the grace period the Contract will lapse on such date. The Contract
terminates on the date of lapse. The death benefit during the grace period
will be reduced by any overdue charges.
Reinstatement If this Contract has lapsed or has been foreclosed
for failure to pay loan interest and has not been
surrendered, it may be restored (called "reinstated"
in this Contract) within three years after the date
of default. We will reinstate the Contract on the
monthly processing date following the day we receive
all of the following items:
o a written application for reinstatement;
o evidence of insurability satisfactory to us;
o a payment sufficient to cover the cost of all
Contract charges that were due and unpaid during
the grace period;
o a payment large enough to keep the Contract in
force for three months; and o payment or
reinstatement of any loans against the Contract that
existed at the end
of the grace period.
Your reinstatement payment will be allocated to the
Fixed Account until we approve your application. At
that time, we will transfer the reinstatement
payment, plus accrued interest, as you directed in
your last payment allocation request.
The Contract Value on the reinstatement date is: the payment to reinstate the
Contract, including the interest earned from the date we received your payment,
plus an amount equal to the Contract Value less any outstanding loan on the
default date; less the monthly deduction due on the reinstatement date.
The surrender charge on the reinstatement date is the
charge that was in effect on the date of default.
What you should know about your Contract Value
Allocation of New Payments You may allocate the payments to: any of the
sub-accounts which are available at the time the payment is made; and/or, the
Fixed Account.
The Company reserves the right to limit the number
of sub-accounts which are available at one time,
but in no event will this be less than [twenty].
All percentage allocations must be in whole
numbers, with the total allocation to all selected
accounts equaling 100%. Allocations of less than 5%
to a sub-account or to the Fixed Account may only
be made with our consent.
Allocation Of Initial If you make a payment with your application or at any time
before the Contract is Payments approved by us, we may put that payment into the
Fixed Account on the date we receive
it at our Variable Life Service Center. Not later
than two days after the date this Contract is
approved by us, the value you elected to allocate
to the Variable Account will be transferred from
the Fixed Account to either the sub-accounts you
have elected or to the Money Market sub-account. In
any event, we will transfer any Variable Account
values from the Money Market sub-account to the
sub-accounts you have selected not later than the
expiration of the period during which you may
exercise your right to examine this Contract and
request a refund of your payments.
Monthly Deduction Beginning on the date this Contract is
issued and on every monthly processing date through
the final payment date, we will deduct the
following monthly charges pro rata from the
Contract Values:
o Administration Charge;
o Distribution Fee;
o Tax Charge; and
o Insurance Protection Charge.
The amounts of the monthly deduction and their
duration periods, if any, are shown on the
specification pages. No additional monthly
deductions will be assessed following the end of
the duration period, if the period ends prior to
the final payment date. Charges allocated to the
Fixed Account will be deducted on a last-in,
first-out basis. This means that we use the most
recent payments to pay the fees and charges.
Administration Charge The Administration Charge compensates us for
the cost of providing administrative services
attributed to this Contract.
Distribution Fee The Distribution Fee compensates us for distribution expenses.
Tax Charge This charge compensates us for a portion of certain federal, state
and local taxes we must pay.
Insurance Protection Charge The Insurance Protection Charge
compensates us for the cost of providing a death
benefit in excess of the Contract Value. This
charge will not exceed the guaranteed maximum
insurance protection charge. The guaranteed maximum
insurance protection charge for any contract month
is equal to (a) times (b), where: (a) is the rate
shown in the Guaranteed Maximum Monthly Insurance
Protection Rate
Table shown on the specification pages, and
(b) is the insurance protection amount divided by
$1,000.
The insurance protection rates actually charged
will never be higher than the guaranteed rates. We
may change the insurance protection rates from time
to time. Any change in the rates for monthly
insurance protection charges will apply to all
contracts in the same underwriting class, will be
prospective, and will be based on our expectations
as to future cost factors. Such cost factors may
include, but are not limited to: mortality,
expenses, interest, and persistency. We will review
the actual insurance protection rates for this
Contract whenever we change these rates for new
contracts. In any event, rates will be reviewed no
more often than once each year, but not less than
once in a five-year period.
What you should know about the Variable Account
Variable Account The value of your Contract will vary if it is funded through
investments in the sub-accounts of the Variable Account. This account is
separate from our Fixed Account. We have exclusive and absolute ownership and
control of all assets, including those in the Variable Account. However, the
portion of assets in the Variable Account equal to the reserves and liabilities
of the contracts that are supported by this account will not be charged with
liabilities that arise out of any other business we conduct.
This Variable Account, which we established to
support variable life insurance contracts, is
registered with the Securities and Exchange
Commission (SEC) as a unit investment trust under
the Investment Company Act of 1940. The laws of the
State of California also govern it.
This Variable Account has several sub-accounts.
Each sub-account invests its assets in a separate
series of a registered investment company (called a
"portfolio"). We reserve the right, when the law
allows, to change the name of the Variable Account
or any of its sub-accounts. You will find a list in
your application of these sub-accounts in which you
may invest.
Variable Account Value Not later than two days after the date this Contract is
approved for issue by us, the portion of the Contract Value you elected to
allocate to the Variable Account may be transferred from the Fixed Account to
either the sub-accounts you have selected or to the Money Market sub-account. We
will transfer the Variable Account values from the Money Market sub-account to
the sub-accounts you have selected not later than the expiration of the period
during which you may exercise your right to examine this Contract and request a
refund of your payments. Payments made thereafter which are allocated to the
sub-accounts will purchase additional units of the sub-accounts.
The number of units purchased in each sub-account
is equal to the portion of the payment allocated to
the sub-account, divided by the value of the
applicable unit as of the valuation date on which
the payment is received at our Variable Life
Service Center or the value on the date of transfer
to the sub-account from another sub-account or the
Fixed Account. If we receive your payment on a date
which is not a valuation date, we will use the
value of the applicable unit on the first valuation
date following the date we receive your payment to
determine the number of units that the payment will
purchase.
The number of units will remained fixed unless:
(1) changed by a subsequent split of unit value, or
(2) reduced because of a transfer, transfer charge,
contract loan, partial withdrawal, withdrawal
transaction fee, monthly deduction, surrender or
surrender charge allocated to the sub-account.
Any transaction described in (2) will result in the
cancellation of a number of units which are equal
in value to the amount of the transaction. On each
valuation date we will value the assets of each
sub-account in which there has been activity. The
value in a sub-account at any time is equal to the
number of units this Contract then has in that
sub-account multiplied by the sub-account's unit
value. The value of a unit for any sub-account for
any valuation period is determined by multiplying
that sub-account's unit value for the immediately
preceding valuation period by the net investment
factor for the valuation period for which the unit
value is being calculated. The unit value will
reflect the investment advisory fee and other
expenses incurred by the registered investment
companies.
Net Investment Factor This measures the investment
performance of a sub-account during the valuation
period that has just ended. The net investment
factor is the result of (a) plus (b), divided by
(c), minus (d) where: (a) is the net asset value
per share of a portfolio share held in the
sub-account
determined at the end of the current valuation period;
(b) is the per share amount of any dividend or
capital gain distributions made by the
portfolio on shares held in the sub-account if
the "ex-dividend" date occurs during the
current valuation period;
(c) is the net asset value per share of a
portfolio share held in the sub-account
determined as of the end of the immediately
preceding valuation period; and
(d) is a charge for mortality and expense risks in
the valuation period.
The current mortality and expense risk charge is
shown on the specification pages. This charge may
be increased or decreased, but will never exceed
the maximum mortality and expense risk charge shown
on the specification pages. Expense and mortality
results may not adversely affect this maximum
charge. Since the net investment factor may be more
or less than one, the unit value may increase or
decrease. You bear the investment risk. We reserve
the right, subject to any required regulatory
approvals, to change the method we use to determine
the net investment factor.
Addition, Deletion Or We may not change the investment policy of the Variable
Account without the approval Substitution Of Investments of the Insurance
Commissioner of California. This approval process is on file with the
Commissioner of your state. We reserve the right,
subject to applicable law, to add, delete, or
substitute the shares of a portfolio that are held
by the Variable Account or that the Variable
Account may purchase. We also reserve the right to
eliminate the shares of any portfolio if they are
no longer available for investment, or if we
believe investing more in any portfolio is no
longer appropriate for the purposes of the Variable
Account.
We will notify you before we substitute any portion
of your interest in the Variable Account. This will
not, however, prevent the Variable Account from
buying other shares of underlying securities for
other series or classes of contracts or policies,
or from permitting a conversion between series or
classes of contracts or policies when requested by
the owners of such contracts or policies. We
reserve the right to establish other sub-accounts,
and to make them available to any class or series
of contracts and policies as we think appropriate.
Each new sub-account would invest in a new
investment company or in shares of another open-end
investment company. We also reserve the right to
eliminate or combine existing sub-accounts of the
Variable Account and to transfer the assets between
sub-accounts, when allowed by law. If we make any
substitutions or changes that we believe are
necessary or appropriate, we may make changes in
this Contract by written notice to reflect the
substitution or change. If we think it is in the
best interests of our contract owners, we may
operate the Variable Account as a management
company under the Investment Company Act of 1940,
or we may de-register it under that Act if
registration is no longer required. We may also
combine it with other separate accounts.
Federal Taxes If we must pay taxes on the Variable Account,
we will charge you for those taxes. Although the
Variable Account is currently not taxable, we
reserve the right to charge for taxes if it becomes
subject to taxation.
Splitting Of Units We reserve the right to split the value of a unit, to either
increase or decrease the number of units. Any splitting of units will have no
material effect on contract benefits.
What you should know about the Fixed Account
Fixed Account The Fixed Account is a part of our General
Account. The General Account consists of all assets
owned by us, other than those in the Variable
Account and other separate accounts. Except as
limited by law, we have sole control over the
investment of these General Account assets. You do
not share directly in the investment experience of
the General Account, but are allowed to allocate
and transfer funds into the Fixed Account.
Fixed Account Interest The interest rates credited to values in the Fixed
Account are set by us, but will Rates never be less than the Minimum Fixed
Account Interest Rates shown in the specification pages. We may establish
higher interest rates. The initial interest rates and the renewal interest
rates may be different. Interest rates will be determined as follows:
Payments allocated to the Fixed Account will be credited at the initial
interest rate in effect on the day we receive your payment at our Variable
Life Service Center, and the initial interest rate is guaranteed until the
next contract anniversary unless you borrow from that value. Funds
transferred from a sub-account of the Variable Account to the Fixed Account
will be credited with interest at the initial interest rate in effect on
the valuation date of the transfer, and the initial interest rate is
guaranteed until the next contract anniversary unless you borrow from that
value. Values in the Fixed Account on a contract anniversary will be
credited with interest at the renewal interest rate in effect on that
contract anniversary for one year so long as those values remain in the
Fixed Account and are not borrowed. The interest rate we use for that
portion of the Contract Value that equals the outstanding loan will be no
less than the applicable Minimum Fixed Account Interest Rate shown on the
specification pages. One of the rates shown is the Preferred Loan Rate,
which applies only to loans qualifying as preferred loans.
Fixed Account Value On each monthly processing date, the
value of the portion of your Contract Value in the
Fixed Account is equal to: o the value of such
portion on the preceding monthly processing date
increased by
one month's interest; plus
o payments received since the last monthly
processing date that are allocated to the
Fixed Account plus the interest accrued from
the date the payments are received by us; plus
o any portion of your Contract Value transferred
to the Fixed Account from any sub-accounts
since the preceding monthly processing date,
increased by interest accrued on such amount
from the transfer date to the monthly
processing date; minus
o any portion of your Contract Value transferred
from the Fixed Account to a sub-account since
the preceding monthly processing date and
interest accrued on such amount from the
transfer date to the monthly processing date;
minus
o any portion of your Contract Value transferred
from the Fixed Account to a sub-account since
the preceding monthly processing date and
interest accrued on such amount from the
transfer date to the monthly processing date;
minus
o your partial withdrawals from the Fixed
Account, any withdrawal transaction fees and
surrender charges assessed since the last
monthly processing date, interest accrued on
these withdrawals, fees and charges from the
withdrawal date to the monthly processing
date; minus
o the portion of the monthly deductions
allocated to the portion of your Contract
Value in the Fixed Account.
During any contract month the portion of your
Contract Value in the Fixed Account will be
calculated on a consistent basis.
Basis Of Value Of The We base the minimum surrender value in the Fixed
Account on the minimum Fixed Account Fixed Account interest rates and
mortality table shown on the specification pages. The actual Fixed Account
value is based on interest and insurance protection rates that we set. We
have filed a detailed description of the way we determine this value with
the State Insurance Department. All values equal or exceed the minimums
required by law in the state in which this Contract is delivered.
What You Should Know About Transfers
While the Contract is in force, you may transfer
amounts between the Fixed Account and the
sub-accounts or among sub-accounts on request. You
may transfer, without charge, all of the portion of
Contract Value in the Variable Account to the Fixed
Account once during the first 24 months after the
Contract is issued which will automatically convert
it to a fixed-only product. If you do so, future
payments will be allocated to the Fixed Account
unless you specify otherwise. All other transfers
are subject to the following rules and will be
permitted with our approval. We will determine the
minimum and maximum amounts that may be transferred
according to the rules that are in effect at the
time of the transfer. We also reserve the right to
limit the number of transfers that can be made in
each contract year and set other reasonable rules
controlling transfers.
If a transfer would reduce the value in a
sub-account to less than the current minimum
balance required for such sub-accounts, we reserve
the right to include the remaining value in the
amount transferred. You will not be charged for the
first 18 transfers in a contract year, but a
transfer charge of up to $25 may be assessed on
each additional transfer. Any transfer charge will
be deducted from the amount that is transferred.
There is no charge for a transfer that results from
a contract loan or repayment of a loan.
What you should know about borrowing from your Contract
To borrow from this Contract, the only collateral
you will need is the Contract itself.
Amount You May Borrow The maximum loan amount is 90% of
the result of the Contract Value less the surrender
charges. You may borrow an amount subject to the
minimum shown on the specification pages, up to the
maximum loan amount minus any outstanding loan. If
you do not specify from which accounts you want to
borrow, we will allocate the loan pro rata. In
order to secure the outstanding loan, we will
transfer the value in each sub-account equal to the
contract loan allocated to each sub-account to the
Fixed Account.
Loan Interest You will be required to pay interest on your loan at an
annual rate indicated on the specification pages. Interest accrues daily
and is payable at the end of each contract year or, if earlier, as of the
date the loan is repaid or defaulted or the contract is surrendered. Any
interest that is not paid on time will be added to the loan principal and
bear interest at the same rate. If this makes the principal higher than the
value in the Fixed Account, we will offset this shortfall by transferring
funds from the portion of your Contract Value allocated to the sub-accounts
to the portion in the Fixed Account. We will allocate the transferred
amount from the sub-accounts in the same proportion that the value in each
sub-account has to the total value in all of them.
Repaying The Outstanding You may repay the outstanding loan at any time before
this Contract lapses and before Loan the maturity date. When you repay it, we
will transfer the portion of your Contract
Value that is securing the loan in the Fixed
Account portion of your Contract Value to the
various sub-accounts and increase the value in
them. You may tell us how to allocate repayments.
Otherwise, we may allocate them according to the
most recent payment allocation choices you have
made. Loan repayments made to the Variable Account
portion of your Contract Value cannot be higher
than the amounts you transferred to secure the
outstanding loan.
Foreclosure If at any time the amount of the outstanding loan
is higher than the Contract Value minus the
surrender charge, the Contract will terminate.
We will mail a notice of this termination to your
last known address and that of any assignee. If the
excess outstanding loan is not paid within 62 days
after this notice is mailed, the outstanding loan
will be foreclosed and the Contract will terminate
with no value. You may reinstate this Contract in
accordance with the Reinstatement provision.
What you should know about surrenders and partial withdrawals
Surrender You may cancel this Contract and receive its
surrender value as long as the insured is living on
the date we receive your written request at our
Variable Life Service Center. The Contract will be
canceled on that day. You may choose to receive the
surrender value in a lump sum or under a benefit
option.
Surrender Value The surrender value equals the Contract Value
minus any outstanding loan and surrender charge.
You will find the surrender charges on the
specification pages.
Partial Withdrawals You may withdraw part of the surrender
value on written request. Each withdrawal must be
at least $1,000. The withdrawal transaction fee in
effect on the date of issue is shown on the
specification pages. The withdrawal transaction fee
is subject to change, but will never exceed the
guaranteed fee shown on the specification pages.
We will not permit a partial withdrawal if it
reduces the Contract Value to less than the minimum
balance after withdrawal amount shown on the
specification pages.
The face amount will be reduced proportionately
based on the ratio of the amount of the partial
withdrawal and charges to the Contract Value on the
date of withdrawal. The Contract Value will be
reduced by the amount of the partial withdrawal,
the withdrawal transaction fee and any applicable
surrender charges.
If you do not allocate a partial withdrawal, its
fee and its charges between the portion of your
Contract Value in the Fixed Account and the portion
in each sub-account, we will automatically allocate
them pro rata.
Free Withdrawal Amount The free withdrawal amount will
not be subject to the surrender charge. The free
withdrawal amount for a Contract year equals (a)
minus (b), where: (a) is the free withdrawal amount
shown on the specification pages, and (b) is the
total of prior free withdrawal amounts withdrawn in
the same Contract year.
Allocations of Withdrawals The free withdrawal amount is deducted from the
portion of the Contract Value attributed to earnings until it is exhausted,
and then from the portion of the Contract Value attributed to payments.
Withdrawals in excess of the free withdrawal amount, including the
withdrawal transaction fees and the surrender charges, if any, are deducted
first from the payments portion. The payments portion of the Contract Value
is reduced in the reverse order of receipt of such payments. Surrender
charges applicable to withdrawals in excess of the free withdrawal amount
are described on the specification pages.
Postponement Of Payment We may postpone any transfer from the
Variable Account, or payment of any amount payable
on:
surrender,
partial withdrawal,
transfer,
contract loan, or
death of the insured.
The postponement will continue during any period when: o trading on the New
York Stock Exchange is restricted as determined by the Securities and
Exchange Commission, or the New York Stock Exchange is closed for days
other than weekends and holidays, or o the Securities and Exchange
Commission by order has permitted such suspension, or o the Securities and
Exchange Commission has determined that such an emergency exists that
disposal of portfolio securities or valuation of assets is not reasonably
practical.
We also may postpone any transfer from the Fixed
Account or payment of any portion of the amount
payable on a surrender, partial withdrawal or
contract loan from the Fixed Account for not more
than six months from the day we receive your
written request. If we postpone those payments for
30 days or more, the amount postponed will earn
interest during that period of not less than 3% per
year or such higher rate as required by law.
What you should know about the death benefit
Net Death Benefit If the insured dies before the maturity date and before
the Contract is terminated, we will pay the net death benefit. The net
death benefit is equal to the death benefit reduced by certain amounts, as
described below. The death benefit is determined as of the date we receive
due proof of the insured's death at our Variable Life Service Center. Due
proof of death is a valid death certificate or other evidence satisfactory
to us.
The amount of the net death benefit depends upon:
(1) whether the date the insured dies is after, or
on or before, the final payment date; and, if after
the final payment date, (2) whether the Guaranteed
Death Benefit Rider is in effect at the time of the
insured's death.
If the insured dies on or before the final payment date then the death
benefit is the greater of the face amount or the guideline minimum sum
insured. The net death benefit is determined by deducting from the death
benefit: any outstanding loan and any monthly deductions due and unpaid
through the contract month in which the insured dies, as well as any
partial withdrawals, withdrawal transaction fees, and applicable surrender
charges.
If the insured dies after the final payment date,
except as provided under a Guaranteed Death Benefit
Rider if attached to this Contract, the death
benefit is 101% of the Contract Value. The net
death benefit is the death benefit minus:
any outstanding loan through the contract
month in which the insured dies, and any
unpaid partial withdrawals, withdrawal
transaction fees and applicable
surrender charges.
If the net death benefit is paid in a lump sum,
interest will be earned at our declared interest
rate for sums held on deposit, but not less than
2.5% per year, beginning on the date we receive
notice of death at our Variable Life Service
Center. We will pay a higher interest rate if
required by state law. We will credit interest from
an earlier date (for example, from the date of the
insured's death) if required by state law.
Guideline Minimum Sum Insured Table
Attained Age Percentage Attained Age Percentage
40 or less 265% 66 134%
41 258% 67 133%
42 251% 68 132%
43 244% 69 131%
44 237% 70 130%
45 230% 71 128%
46 224% 72 126%
47 218% 73 124%
48 212% 74 122%
49 206% 75-85 120%
50 200% 86 118%
51 193% 87 116%
52 186% 88 114%
53 179% 89 112%
54 172% 90 110%
55 165% 91 108%
56 161% 92 106%
57 157% 93 105%
58 153% 94 105%
59 149% 95 105%
60 145% 96 104%
61 143% 97 103%
62 141% 98 102%
63 139% 99 101%
64 137% 100-115 101%
65 135%
Required Minimum Amount of This Contract is intended to qualify under Code
Section 7702 as a life insurance Death Benefit contract for federal tax
purposes. The provisions of this Contract (including any
rider or endorsement) shall be interpreted to
ensure such tax qualification, regardless of any
language to the contrary.
At no time will the amount of the death benefit
under the Contract ever be less than the amount
needed to ensure such tax qualification. To the
extent that the death benefit is increased,
appropriate adjustments will be made in any
monthly insurance protection charges or
supplemental benefits as of that time,
retroactively or otherwise, that are consistent
with such an increase. Such adjustments may be
made by right of setoff against any death benefits
payable.
The guideline minimum sum insured is calculated by
multiplying the Contract Value by the percentage
shown in the preceding table. The death benefit
under this Contract will not be less than the
guideline minimum sum insured. The guideline
minimum sum insured varies by attained age. The
amounts shown in the table are determined to
provide a death benefit at least as great as those
required under the Code to qualify the Contract as
life insurance, and will be adjusted according to
any changes in the Code applicable to this
Contract.
What you should know about the benefit payment options
Benefit Payment Options When the insured dies, we will pay the net death
benefit in a lump sum unless you or the beneficiary choose a benefit
payment option. You may choose a benefit payment option while the insured
is living. The beneficiary may choose a benefit option after the insured
has died. The beneficiary's right to choose will be subject to any benefit
payment option restrictions in effect at the insured's death. You may also
choose one of these options as a method of receiving the surrender or
maturity proceeds, if any are available under this Contract. When we
receive a satisfactory written request, we will pay the benefit according
to one of these options.
Option A: Installment for We will pay equal installments for a guaranteed
period of from one to thirty years. a Guaranteed Period Each installment
will consist of part benefit and part interest. We will pay the
installments monthly, quarterly, semi-annually or annually, as requested.
See Table A on next page.
Option B: Installments We will pay equal monthly installments as long as the
designated individual is living, for Life with a but we will not make payments
for less than the guaranteed period the payee chooses. Guaranteed Period (Table
The guaranteed period may be either 10 years or 20 years. We will pay the
installments B) monthly. See Table B on next page.
Option C: Benefit We will hold the benefit on deposit. It will earn
interest at the annual interest rate Deposited with Interest we are paying
as of the date of death, surrender or maturity. We will not pay less than 2
1/2% annual interest. We will pay the earned interest monthly, quarterly,
semi-annually or annually, as requested. The payee may withdraw part or all
of the benefit and earned interest at any time.
Option D: Installments of We will pay installments of a selected amount until we
have paid the entire benefit and a Selected Amount accumulated interest.
Option E: Annuity We will use the benefit as a single
payment to buy an annuity. The annuity may be
payable based on the life of one or two designated
individuals. It may be payable for life with or
without a guaranteed period, as requested. The
annuity payment will not be less than what our
current annuity contracts are then paying.
General The payee may arrange any other method of benefit
as long as we agree to it. There must be at least
$10,000 available for any option and the amount of
each installment must be at least $100. If the
benefit amount is not enough to meet these
requirements, we will pay the benefit in a lump
sum.
Installments which vary by age of the designated
individual will be determined based on the age
nearest birthday of the designated individual on
the date of death, maturity, or surrender. If the
net death benefit is payable, the benefit payment
option starting date is the date of death of the
insured. For purposes of policy maturity or
surrender, the date the written request is
received in the Variable Life Service Center is
the benefit payment option starting date.
The first installment due under any option will be
for the period beginning as of the date of death,
maturity or surrender. Any unpaid balance we hold
under Options A, B or D will earn interest at the
rate we are paying at the time of settlement. We
will not pay less than 3% annual interest. Any
benefit we hold will be combined with our general
assets.
If the payee does not live to receive all
guaranteed payments under Options A, B, D or E or
any amount deposited under Option C, plus any
accumulated interest, we will pay the remaining
benefit as scheduled to the payee's estate. The
payee may name and change a successor payee for
any amount we would otherwise pay the payee's
estate.
Table A: Installments for Each $1,000 Payable under Option A
Multiply the Monthly Installment by 11.83895 for annual, by 5.96322 for semi-annual, or by 2.99263 for quarterly
Installments
- ------------------ ---------------- ----------------- ---------------- ----------------- -----------------
Guaranteed Monthly Guaranteed Monthly Guaranteed Monthly
Period (Years) Installment Period (Years) Installment Period (Years) Installment
- ------------------ ---------------- ----------------- ---------------- ----------------- -----------------
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 4.48
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
- ------------------ ---------------- ----------------- ---------------- ----------------- -----------------
Table B: Monthly Installment for Each $1,000 Payable under Option B
- ---------------------------------- -----------------------------------------
Designated Individual Designated Individual
- ---------------------------------- -----------------------------------------
- ------------- -------------------- ------------------ ----------------------
Male Female Male Female
- ------------- -------------------- ------------------ ----------------------
- ---------------------------------- -----------------------------------------
Guaranteed Period (Yr.) Guaranteed Period (Yr.)
-----------------------------------------
- ----------- --------- --------- ---------- --------- ---------
Age 10 Yr. 20 Yr. 10 Yr. 20 Yr. Age 10 Yr. 20 Yr. 10 Yr. 20 Yr.
- ----------- --------- --------- ---------- --------- --------- ----------- ----------- ----------- ----------
11 $ 2.90 $ 2.89 2.83 2.83 51 $ 4.44 $ 4.26 $ 4.10 4.02
12 2.91 2.91 2.84 2.84 52 4.53 4.32 4.17 4.08
13 2.93 2.92 2.86 2.85 53 4.62 4.39 4.25 4.14
14 2.94 2.94 2.87 2.87 54 4.71 4.46 4.33 4.21
15 2.96 2.96 2.88 2.88 55 4.81 4.52 4.42 4.28
16 2.98 2.97 2.90 2.90 56 4.92 4.59 4.51 4.35
17 3.00 2.99 2.91 2.91 57 5.03 4.66 4.61 4.42
18 3.01 3.01 2.93 2.93 58 5.15 4.73 4.71 4.50
19 3.03 3.03 2.95 2.94 59 5.27 4.80 4.82 4.57
20 3.05 3.05 2.96 2.96 60 5.40 4.87 4.94 4.65
21 3.08 3.07 2.98 2.98 61 5.53 4.94 5.06 4.72
22 3.10 3.09 3.00 2.99 62 5.68 5.00 5.19 4.80
23 3.12 3.11 3.02 3.01 63 5.83 5.07 5.33 4.88
24 3.14 3.14 3.04 3.03 64 5.98 5.13 5.47 4.95
25 3.17 3.16 3.06 3.05 65 6.15 5.18 5.63 5.02
26 3.20 3.19 3.08 3.07 66 6.32 5.24 5.79 5.09
27 3.22 3.21 3.10 3.10 67 6.50 5.28 5.96 5.15
28 3.25 3.24 3.12 3.12 68 6.68 5.33 6.14 5.21
29 3.28 3.27 3.15 3.14 69 6.88 5.36 6.33 5.27
30 3.31 3.30 3.17 3.17 70 7.07 5.40 6.53 5.32
31 3.34 3.33 3.20 3.19 71 7.27 5.42 6.73 5.36
32 3.38 3.36 3.23 3.22 72 7.48 5.45 6.94 5.40
33 3.41 3.39 3.26 3.25 73 7.68 5.46 7.16 5.43
34 3.45 3.43 3.29 3.28 74 7.88 5.48 7.38 5.45
35 3.49 3.46 3.32 3.31 75 8.08 5.49 7.60 5.47
36 3.53 3.50 3.35 3.34 76 8.27 5.50 7.82 5.48
37 3.57 3.54 3.39 3.37 77 8.46 5.50 8.04 5.49
38 3.62 3.58 3.42 3.41 78 8.63 5.51 8.25 5.50
39 3.67 3.62 3.46 3.44 79 8.79 5.51 8.45 5.51
40 3.72 3.67 3.50 3.48 80 8.94 5.51 8.64 5.51
41 3.77 3.71 3.54 3.52 81 9.07 5.51 8.82 5.51
42 3.82 3.76 3.59 3.56 82 9.18 5.51 8.97 5.51
43 3.88 3.81 3.63 3.60 83 9.28 5.51 9.11 5.51
44 3.94 3.86 3.68 3.65 84 9.36 5.51 9.23 5.51
45 4.00 3.91 3.73 3.69 85+ 9.42 5.51 9.32 5.51
--------- ----------- ----------- ----------- ----------
46 4.07 3.97 3.78 3.74 Ages younger than 11 are the same as shown for age 11,
47 4.14 4.02 3.84 3.79 and ages older than 85 are the same as shown for age
85.
48 4.21 4.08 3.90 3.85
49 4.28 4.14 3.96 3.90
50 4.36 4.20 4.03 3.96
- ----------- --------- --------- ---------- ---------
TRANSAMERICA OCCIDENTAL LIFE INSURANCE COMPANY
OPTION TO ACCELERATE DEATH BENEFITS (LIVING BENEFITS RIDER - SPVUL)
This rider is a part of the Contract to which it is attached. The insured under
this rider is the insured under the Contract. This rider does not apply to any
benefits provided by other riders. In case of conflict between the Contract and
this rider, the rider provisions will control.
Benefit While this rider is in force, you may elect to receive a
portion of the net death benefit called the "Living Benefit,"
prior to the insured's death, subject to the definitions,
conditions and limitations in this rider. This option may only
be exercised once.
Definitions "Option Amount" means that portion of the death benefit which
you elect to apply under this rider. The Option Amount must be
at least $25,000 and may not exceed the lesser of:
o one-half of the death benefit on the date the option is
elected; or o the amount that would reduce the face
amount to our minimum issue limit for this
Contract; or
o $250,000.
"Option Percentage" is the Option Amount divided by the death benefit.
"Living Benefit" is the Option Amount which has been reduced
for interest and other factors. It is the lump sum benefit
under this rider, and it is the amount used to determine the
monthly benefit. The Living Benefit will not be less than the
surrender value of the Contract multiplied by the Option
Percentage. The following factors will be used to calculate
the Living Benefit:
o age;
o sex, unless the Contract is issued on a unisex basis; o
life expectancy; o Contract Value; o outstanding loan;
o rate of interest currently being credited to the
Fixed Account, including those values which are
subject to outstanding loan;
o face amount; o current monthly deductions; and o an
expense charge of $150.
An amount equal to the outstanding loan multiplied by the
Option Percentage will be deducted from the Living Benefit.
The remaining outstanding loan will continue in force.
The assumptions we use to calculate the Living Benefit may
change from time to time. The factors used to compute the
Living Benefit will be set and changed only prospectively;
that is, based on changes in future expectations. We will not
change these factors to recoup any prior losses or distribute
past gains under the rider.
"Proof of claim" includes:
a request signed by the insured to disclose all facts
concerning the insured's health; records of the
attending physician, including a prognosis of the
insured's condition; and if we request, a medical
examination of the insured at our expense conducted by a
physician
we choose.
Form xxxx-98
Conditions Upon written request you may elect to receive
payment under the accelerated death benefit option
subject to the following conditions:
o the Contract is in force;
o a written consent has been given by any
collateral assignee, irrevocable beneficiary
and the insured if you are not the insured; and
o the insured qualifies for the option you elect.
Exercising the Option If you provide proof of claim
satisfactory to us that the insured's life
expectancy is 12 months or less, you may elect to
receive equal monthly payments for 12 months. For
each $1,000 of Living Benefit, each payment will be
at least $85.21. This assumes an annual interest
rate of 5%.
If the insured dies before all the payments have
been made, we will pay in one sum the present value
of the remaining payments due under this rider
calculated at the interest rate we use to determine
those payments as part of the net death benefit. If
you do not wish to receive monthly payments, you may
elect to receive the Living Benefit in a lump sum.
Effect On Contract The death benefit of the Contract will
be decreased by the Option Amount. Such decrease
will be effective on the monthly processing date
following the date of your written request. New
specification pages will be issued. These pages will
include the following information:
o the effective date of the decrease; and o the
amount of the decrease and the reduced face
amount.
The Contract Value will be reduced in the same
proportion as the reduction in the death benefit.
There will be no surrender charge on the reduction
in Contract Value. The allocation of the Contract
Value between earnings and payments will remain the
same.
Exclusion No benefit will be paid under this rider if a claim
results, directly or indirectly, from a suicide
attempt or a self-inflicted injury (while sane or
insane) for any period during which a suicide
exclusion is applicable.
Termination This rider will terminate on the first to occur of:
the date the Living Benefit is paid, or
the termination or maturity of the Contract
while the insured is alive; or at any time on
your written request.
Form xxxx-98
General The Contract specification pages will show the date of issue of
this rider. The Living Benefit will be made available to you on a voluntary
basis only. Accordingly: (a) If you would be required by law to exercise
this option to satisfy the claim of creditors, whether in bankruptcy or
otherwise, you are not eligible for this benefit. (b) If you would be
required by a government agency to exercise this option in order to apply
for, obtain, or retain a government benefit or entitlement, you are not
eligible for this benefit.
Except as otherwise provided, all conditions and
provisions of the Contract apply to this rider.
Tax Qualification This rider is intended to provide a qualified accelerated
death benefit that is excluded from gross income for federal income tax
purposes. To that end, the provisions of this rider and the Contract are to
be interpreted to ensure or maintain such tax qualification,
notwithstanding any other provisions to the contrary. Whether any tax
liability may be incurred when benefits are paid under this rider could
depend on whether the Contract Owner is also the insured and on how the
Internal Revenue Service interprets applicable provisions of the Code. As
with any tax matter, the contract owner and any other recipient of this
benefit should each consult his or her own tax advisor to evaluate any tax
impact of this benefit.
Signed for Transamerica Occidental Life Insurance Company at Los Angeles,
California and effective on the date of issue of the Contract to which this
rider is attached, unless a different date is shown here.
Executive Vice President, General Counsel President and CEO
And Corporate Secretary
Form xxxx-98
TRANSAMERICA OCCIDENTAL LIFE INSURANCE COMPANY
SECTION 1035 RIDER
This rider is a part of the Contract to which it is attached. The insured under
this rider is the insured under the Contract. In case of conflict between the
Contract and this rider, the rider provisions will control.
The Contract is issued in consideration of your assignment to us of a life
insurance policy (called the "Exchanged Policy") on the life of the insured. The
"Exchanged Policy" is identified in your application for this Contract. As used
in this endorsement, "gain" means the amount by which the cash value of the
Exchanged Policy (including any unpaid policy loan) exceeds your investment in
the Exchanged Policy as reported to us by the company which issued the Exchanged
Policy. We assume no responsibility for the calculation of your investment in
the Exchanged Policy.
The Fixed Account Interest Rates provisions are amended by the addition of the
following:
The Preferred Loan Rate will also be credited to the following amounts:
(1) That portion of the outstanding loan which is carried over from the
Exchanged Policy; and (2) A percentage of the gain under the Exchanged
Policy less the policy loan carried over to this Contract
as of the date of exchange.
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Beginning of Contract Year Exchanged Policy's Unloaned Gain
Available For Preferred Loan Rate
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1 0%
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2 10%
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3 20%
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4 30%
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5 40%
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6 50%
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7 60%
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8 70%
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9 80%
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10 90%
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11+ 100%
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Signed for Transamerica Occidental Life Insurance Company at Los Angeles,
California and effective on the date of issue of the Contract to which this
rider is attached, unless a different date is shown here.
Executive Vice President, General Counsel President and CEO
And Corporate Secretary
Form xxxxx-98
TRANSAMERICA OCCIDENTAL LIFE INSURANCE COMPANY
Guaranteed Death Benefit Rider (SPVUL)
This rider is a part of the Contract to which it is attached. The insured under
this rider is the insured under the Contract. In case of conflict between the
Contract and this rider, the rider provisions will control.
Required Payment This rider will take effect upon receipt by
the Company of the Guaranteed Death Benefit Payment
shown on the specification pages.
Guaranteed Death Benefit The Contract will not lapse while this
rider is in force. The monthly deductions will be
made from the Contract Value, if any, through the
final payment date (but not after the end of any
duration period shown on the specification pages if
such duration period ends prior to the final payment
date).
Net Death Benefit While this rider is in force, the net
death benefit provisions of the Contract are amended
by the addition of the following:
If this rider is in effect on the final payment
date, a death benefit will be provided thereafter
unless the rider is terminated. The net death
benefit under the rider will be the face amount as
of the final payment date or 101% of the Contract
Value as of the date due poof of death is received
by the Company, whichever is greater, reduced by the
outstanding loan through the Contract month in which
the insured dies. The monthly deductions will not be
deducted after the final payment date.
Termination This rider will terminate and may not be reinstated on the
first to occur of the following: o Foreclosure of the outstanding loan; or
o A request for a partial withdrawal or loan is made after the final
payment date; or o Upon your written request.
It is possible that the Contract Value will not be sufficient to keep the
Contract in force on the first monthly processing date following the date the
rider is terminated. The net amount payable to keep the Contract in force will
never exceed the surrender charge plus the amount required to pay three monthly
deductions.
Signed for Transamerica Occidental Life Insurance Company at Los Angeles,
California and effective on the date of issue of the Contract to which this
rider is attached, unless a different date is shown here.
Executive Vice President, General Counsel President and CEO
And Corporate Secretary
Form xxxxx-98