EXHIBIT ITEM 24(b)(4)(a)
FORM OF VARIABLE ANNUITY CONTRACT - D601
[logo]PHOENIX EXECUTIVE OFFICES:
ONE AMERICAN ROW
HARTFORD, CT 06102
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Primary Annuitant: Xxxx Xxx 35 Male :Age and Sex
Contract Number: 13000000 December 12, 1994 :Contract Date
Initial Premium: $10,000.00 July 1, 2029 :Maturity Date
Dear Contract Owner:
Thank you for purchasing this annuity contract from PHL Variable Insurance
Company.
One of our corporate objectives is to ensure that you receive the benefits to
which you are entitled. We agree to pay the benefits of this contract in
accordance with its provisions.
IT IS IMPORTANT TO US THAT YOU ARE SATISFIED WITH YOUR CONTRACT AND THAT IT
MEETS YOUR FINANCIAL GOALS. IF FOR ANY REASON YOU ARE NOT SATISFIED WITH THIS
CONTRACT, YOU MAY RETURN IT WITHIN 10 DAYS AFTER WE DELIVER IT TO YOU FOR A
REFUND OF THE CONTRACT VALUE PLUS ANY CHARGES MADE UNDER THIS CONTRACT. IT MAY
BE RETURNED TO EITHER THE AGENT THROUGH WHOM IT WAS PURCHASED OR TO US AT THE
FOLLOWING ADDRESS:
PHL Variable Insurance Company
Variable Products Operations
000 Xxxxxx Xxxxxx
P.O. Box 942
Greenfield, MA 01302-0942
THE CONTRACT VALUE WILL BE DETERMINED AS OF THE NEAREST VALUATION DATE FOLLOWING
RECEIPT OF THE RETURNED CONTRACT AT OUR VARIABLE PRODUCTS OPERATIONS.
This contract provides for the payment of a 10-year period certain variable
monthly life annuity. Other options are available and may be elected prior to
the Maturity Date. The Contract Value will depend on the rate of interest
credited to the Guaranteed Interest Account and the investment experience of the
Subaccounts. The annuity payments will be based on the Contract Value on the
Maturity Date, the annuity purchase rates stated herein, and the investment
experience of the Subaccounts during the annuity payout period.
Signed for PHL Variable Insurance Company at its Main Administrative Office: Xxx
Xxxxxxxx Xxx, Xxxxxxxx, Xxxxxxxxxxx 00000.
Sincerely yours,
PHL VARIABLE INSURANCE COMPANY
Secretary Chief Executive Officer
Registrar
FLEXIBLE PREMIUM VARIABLE ACCUMULATION DEFERRED ANNUITY
ALL VALUES AND BENEFITS BASED ON THE INVESTMENT EXPERIENCE OF THE SUBACCOUNTS OF
THE SEPARATE ACCOUNT ARE VARIABLE AND NOT GUARANTEED AS TO DOLLAR AMOUNT. SEE
PART 7 FOR A DESCRIPTION OF HOW THE CONTRACT VALUES ARE DETERMINED, AND PART 9
FOR A DESCRIPTION OF HOW THE DEATH BENEFITS ARE DETERMINED.
D601
SCHEDULE PAGE
Primary Annuitant: Xxxx Xxx 35 Male :Age and Sex
Contract Number: 13000000 December 12, 1994 :Contract Date
Initial Premium: $10,000.00 July 1, 2029 :Maturity Date
Contingent Annuitant: None
Owner: Xxxx Xxx
Beneficiaries: As Stated in the Application or as Later Changed.
Subsequent Premiums: Flexible
Payment Intervals: Flexible
SUBACCOUNT FEES
Mortality and Expense Risk Fee on Contract Date: .00342% (Based on an Annual
Rate of 1.25%)
Daily Administrative Fee: .00034% (Based on an Annual Rate of .125%)
Daily Tax Fee: .0000% or Such Greater Amount as May Be Assessed as a Result of a
Change in Tax Laws.
Premium Tax: .000% of Each Premium Paid.
Annual Administrative Charge: $35
Transfer Charge: No charge will be imposed in respect to transfers among and
between Subaccounts and the Guaranteed Interest Accounts. We reserve the right
to impose a Transfer Charge in instances where more than six transfers of the
value of a Participant Account are made between or among the Subaccounts and the
Guaranteed Interest Accounts during a Contract Year, upon written prior notice
to the Owner. In no event, however, will such Transfer Charge exceed $20 per
transaction.
Contingent Deferred Sales Charge: See Part 5 for a Description of How this
Charge Is Determined.
SUBACCOUNT ALLOCATION SCHEDULE
Money Market Subaccount #122 100.00%
D601
SCHEDULE PAGE (CONTINUED)
Annuitant: Xxxx Xxx 13000000 :Contract Number
SEPARATE ACCOUNT SUBACCOUNTS
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| |
| FUND: THE PHOENIX EDGE SERIES FUND |
| |
| MONEY MARKET The investment objective of the Money Market |
| Subaccount is to provide maximum current income |
| consistent with capital preservation and liquidity. |
| The Money Market Subaccount invests exclusively in |
| high quality money market instruments. |
| |
| GROWTH The investment objective of the Growth Subaccount |
| is to achieve intermediate and long-term growth of |
| capital, with income as a secondary consideration. |
| The Growth Subaccount invests principally in common |
| stocks of corporations believed by management to |
| offer growth potential. |
| |
| MULTI-SECTOR The investment objective of the Multi-Sector |
| FIXED INCOME Sub-Account is to seek long-term total return by |
| (MULTI-SECTOR) investing in a diversified portfolio of fixed |
| income securities market sectors encompassing |
| high yield (high risk) and high quality fixed |
| income securities. |
| |
| STRATEGIC The investment objective of the Allocation |
| ALLOCATION Subaccount is to realize as high a level of total |
| (ALLOCATION) rate of return over an extended period of time as |
| is considered consistent with prudent investment |
| risk. |
| |
| INTERNATIONAL The investment objective of the International |
| Subaccount is to seek a high total return |
| consistent with reasonable risk. It intends to |
| reduce its risk by engaging in hedging |
| transactions involving options, futures contracts |
| and foreign currency transactions. The |
| International Subaccount intends to invest |
| primarily in an internationally diversified |
| portfolio of equity securities. The International |
| Portfolio provides a means for investors to invest |
| a portion of their assets outside the United |
| States. |
| |
| BALANCED The investment objectives of the Balanced |
| Subaccount are reasonable income, long-term |
| capital growth and conservation of capital. |
| |
| REAL ESTATE The investment objective of the Real Estate |
| SECURITIES Subaccount is to seek capital appreciation and |
| (REAL ESTATE) income with approximately equal emphasis. It |
| intends under normal circumstances to invest in |
| marketable securities of publicly traded Real |
| Estate Investment Trusts (REITs) and companies |
| that operate, develop, manage and/or invest in |
| real estate located primarily in the United States. |
| |
| STRATEGIC The investment objective of the Theme |
| THEME Subaccount is to seek long-term appreciation of |
| capital. It seeks to identify securities (THEME) |
| benefiting from long-term trends present in the |
| United States and abroad. The Theme Subaccount |
| intends to invest primarily in common stocks |
| believed to have substantial potential for capital |
| growth. Since many trends may be early in their |
| development and no history of industry growth |
| patterns are available, securities owned may |
| present a high degree of risk. |
| |
| ABERDEEN NEW ASIA The investment objective of the Asia Subaccount is |
| (ASIA) to seek long-term capital appreciation. The Asia |
| Subaccount will invest primarily in a diversified |
| portfolio of equity securities of issuers located |
| in at least three different countries throughout |
| Asia, excluding Japan. |
| |
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D601
SCHEDULE PAGE (CONTINUED)
Annuitant: Xxxx Xxx 13000000 :Contract Number
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| SEPARATE ACCOUNT SUBACCOUNTS (continued) |
| |
| FUND: THE PHOENIX EDGE SERIES FUND (continued) |
| |
| RESEARCH ENHANCED The investment objective of the Enhanced Index |
| INDEX (ENHANCED Subaccount is to seek high total return by |
| INDEX) investing in a broadly diversified portfolio of |
| equity securities of large and medium |
| capitalization companies within market sectors |
| reflected in the S&P 500. It is intended that the |
| Subaccount will invest in a portfolio of |
| undervalued common stocks and other equity |
| securities which appear to offer growth potential |
| and an overall volatility of return similar to |
| that of the S&P 500. |
| |
| PHOENIX-ENGEMANN The investment objective of the Nifty Fifty |
| NIFTY FIFTY Subaccount is to achieve long-term capital |
| (NIFTY FIFTY) appreciation by investing in approximately |
| 50 different securities which offer the best |
| potential for long-term growth of capital. At |
| least 75% of the Subaccount's assets will be |
| invested in common stocks of high quality growth |
| companies. The remaining portion will be invested |
| in common stocks of small corporations with |
| rapidly growing earnings per share or common |
| stocks of small corporations with rapidly growing |
| earnings per share or common stocks believed to be |
| undervalued. |
| |
| SENECA MID-CAP The investment objective of the Seneca Mid-Cap |
| GROWTH (SENECA Subaccount is to seek capital appreciation |
| MID-CAP) primarily through investments in equity securities |
| of companies that have the potential for |
| above-average market appreciation. The Subaccount |
| seeks to outperform the Standard & Poor's Mid-Cap |
| 400 Index. |
| |
| PHOENIX GROWTH The investment objective of the Growth & Income |
| AND INCOME Subaccount is to seek dividend growth, current |
| (GROWTH income and capital appreciation by investing in |
| & INCOME) common stocks. The Subaccount seeks to achieve its |
| objective by selecting securities primarily from |
| equity securities of the 1,000 largest companies |
| traded in the United States, ranked by market |
| capitalization. |
| |
| PHOENIX VALUE The primary investment objective of the Value |
| EQUITY (VALUE) Subaccount is to seek long-term capital |
| appreciation with a secondary investment objective |
| of current income by investing in a diversified |
| portfolio of common stocks that meet certain |
| quantitative standards that indicate above average |
| financial soundness and intrinsic value relative |
| to price. |
| |
| XXXXXXX MID-CAP The primary investment objective of the Xxxxxxx |
| VALUE (XXXXXXX Mid-Cap Subaccount is long-term capital |
| MID-CAP) appreciation with current income as the secondary |
| investment objective. The Subaccount will invest |
| in securities which are believed to offer the |
| possibility of increase in value, those common |
| stocks of established companies having a strong |
| financial position and a low stock market |
| valuation at the time of purchase. |
| |
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D601
SCHEDULE PAGE (CONTINUED)
Annuitant: Xxxx Xxx 13000000 :Contract Number
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| |
| SEPARATE ACCOUNT SUBACCOUNTS (continued) |
| |
| FUND: XXXXXX ADVISORS TRUST |
| |
| XXXXXX U.S. SMALL The investment objective of the U.S. Small Cap |
| CAP (U.S. SMALL CAP) Subaccount is to provide long-term growth. The |
| U.S. Small Cap Subaccount will invest primarily in |
| securities of U.S. companies with a total common |
| stock market cap of less than $1 billion. |
| |
| XXXXXX The investment objective of the International |
| INTERNATIONAL Small Cap Subaccount is to provide long-term |
| SMALL CAP growth. The International Small Cap Subaccount |
| (INTERNATIONAL will invest primarily in securities of non-U.S. |
| SMALL CAP) companies with a total common stock market cap of |
| less than $1 billion. |
| |
| FUND: XXXXXXXXX VARIABLE PRODUCTS SERIES FUND: |
| |
| XXXXXXXXX STOCK The investment objective of the Xxxxxxxxx Stock |
| Subaccount is to seek capital growth through a |
| policy of investing primarily in common stocks |
| issued by companies, large and small in various |
| nations throughout the world. |
| |
| XXXXXXXXX The investment objective of the Xxxxxxxxx Asset |
| ASSET Allocation Subaccount is to seek a high level of |
| ALLOCATION total return through a flexible policy of |
| investing in stocks of companies in any nation, |
| debt obligations of companies and governments of |
| any nation, and in money market instruments. The |
| mix of investments among these market segments |
| will be adjusted in an attempt to capitalize on |
| total return potential produced by changing |
| economic conditions throughout the world. |
| |
| XXXXXXXXX The investment objective of the Xxxxxxxxx Internal |
| INTERNATIONAL Subaccount is to seek long-term capital growth |
| through flexible policy of investing in stocks and |
| debt obligations of companies and governments |
| outside the United States. Any income realized |
| will be incidental. Although the fund generally |
| invests in common stock, it may also invest in |
| preferred stocks and certain debt securities such |
| as convertible bonds which are rated in any |
| category by S&P or Xxxxx'x or which are unrated by |
| any rating agency. |
| |
| XXXXXXXXX The investment objective of the Xxxxxxxxx |
| DEVELOPING Developing Markets Subaccount is to seek long-term |
| MARKETS capital appreciation by investing in equity |
| securities of issuers in countries having |
| developing markets. |
| |
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D601
SCHEDULE PAGE (CONTINUED)
Annuitant: Xxxx Xxx 13000000 :Contract Number
GUARANTEED The Guaranteed Interest Account is not part of the
INTEREST ACCOUNT Separate Account. We reserve the right to limit
cumulative premiums made to the Guaranteed
Interest Account during any one-week period to
not more than $250,000. It is accounted for as
part of our General Account. We will credit
interest daily on any amounts held under the
Guaranteed Interest Account at such rates as we
shall determine but in no event will the
effective annual rate of interest be less than
4%. On the last working day of each calendar week
we will set the interest rate that will apply to
any premium made to the Guaranteed Interest
Account during the following calendar week. That
rate will remain in effect for such premiums, or
their resulting adjusted premiums, for an initial
guaranteed period of one full year. Upon expiry
of the initial one-year guarantee period, and for
any premiums or adjusted premiums whose guarantee
has just ended shall be the same rate that
applies to new premiums made during the calendar
week in which the guarantee period expired. Such
rate shall likewise remain in effect for such
adjusted premiums for a subsequent guarantee
period of one full year.
D601
SCHEDULE PAGE (CONTINUED)
Annuitant: :Contract Number
GUARANTEED INTEREST ACCOUNTS
GUARANTEED The GIA account with 1-year guarantee is
INTEREST ACCOUNT accounted for as part of our General Account. We
WITH 1-YEAR will credit interest daily on any amounts held
GUARANTEE under this account at such rates as we shall
(GIA) determine, but in no event will the effective
annual rate of interest be less than 4%. At least
once each month we will set the interest rate
that will apply until new rates are set for
deposits and transfers made to this account. That
applicable rate will remain in effect for one
year for any such deposits or transfers made to
this account during that time. Upon expiry of the
1-year guarantee period, the new effective
interest rate for the 1-year guarantee period
will be the same as that which applies for new
deposits to this account. This new rate will also
remain in effect for a subsequent guarantee
period of one year. We reserve the right to limit
cumulative deposits made to this account during
any one week period to no more than $250,000. No
market value adjustment is applied to withdrawals
from the GIA account.
MARKET VALUE The MVA account provides four choices of interest
ADJUSTED GUARANTEED rate guarantee periods: 3-year, 5-year, 7-year,
INTEREST ACCOUNT and 10-year. The MVA account is accounted for as
(MVA) a non-unitized separate account. We will credit
interest daily on any amounts held under this
account at such rates as we shall determine, but
in no event will the effective annual rate of
interest be less than 3%. At least once each
month we will set interest rates that will apply
for each of these Guarantee Periods until new
rates are set for deposits and transfers made to
each of these accounts. The applicable rate will
remain in effect until the end of the Guarantee
Period selected by you, the Contract Owner. Upon
expiry of the selected Guarantee Period, unless
you elect to transfer funds to another Guarantee
Period or Sub-account, or elect to withdraw
funds, we will begin another Guarantee Period of
the same duration as the one that just ended, and
will credit interest at the then current rate for
that new Guarantee Period. If your original
Guarantee Period is no longer available or if you
choose a Guarantee Period that is no longer
available we will use the Guarantee Period with
the next longest duration. To the extent
permitted by law, we reserve the right to
discontinue Guarantee Periods and to offer other
Guarantee Periods that differ from those
available at the time your contract was issued.
Any withdrawals or transfers from the MVA will be
subject to a market value adjustment, except that
funds may be withdrawn or transferred from this
account without a market value adjustment in the
30-day Window period from 15 days before to 15
days after the Guarantee Period expiry date. We
reserve the right to limit cumulative deposits
made to any one of these accounts during any
one-week period to not more than $250,000.
D601
TABLE OF CONTENTS
PART PAGE
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SCHEDULE PAGES
POLICY SUMMARY
TABLE OF CONTENTS
1. DEFINITIONS..............................................1
2. ABOUT THE POLICY.........................................2
Effective Date of Insurance............................2
Entire Contract........................................2
Dividends..............................................2
Revised Schedule Pages.................................2
Contestability.........................................3
Suicide Exclusion......................................3
Termination............................................3
Misstatement of Age or Sex.............................3
Annual Reports.........................................4
Minimum Policy Value...................................4
3. RIGHTS OF OWNER..........................................4
Who Is the Owner.......................................4
The Rights of the Owner................................4
Assignments............................................5
How to Change the Owner................................5
4. PREMIUMS.................................................6
Premium Payments.......................................6
Premium Deductions.....................................6
Premium Flexibility....................................6
Total Premium Limit....................................6
Grace Period and Lapse.................................7
Lapse Following Younger
Insured's Age 100.....................................7
Reinstatement..........................................8
5. POLICY VALUES............................................8
Basis of Calculations..................................8
Policy Value...........................................9
Interest Rate..........................................9
Monthly Deduction.....................................10
Cost of Insurance.....................................10
Cost of Insurance Rates...............................10
6. LIFETIME BENEFITS.......................................11
Loans.................................................11
Loan Interest.........................................12
Surrender Value.......................................13
Partial Withdrawal....................................13
7. DEATH BENEFITS..........................................14
Death Benefit Option 1................................14
Death Benefit Option 2................................14
Death Benefit Following Younger
Insured's Age 100....................................15
How to Change the Death
Benefit Options......................................15
Request for a Decrease in
Face Amounts.........................................15
Death Proceeds........................................15
Interest on Death Proceeds............................16
The Beneficiary.......................................16
How to Change the Beneficiary.........................16
8. MISCELLANEOUS PROVISIONS................................16
Notices by Us.........................................16
Deferment of Certain Payments.........................16
Claims of Creditors...................................17
Corrections...........................................17
9. PAYMENT OPTIONS.........................................17
Who May Elect Payment Options.........................17
How to Elect a Payment Option.........................17
Payment Options.......................................17
1. Payment in one sum................................18
2. Left to earn interest ............................18
3. Payments for a specified period...................18
4. Life annuity with specified
period certain....................................18
5. Life annuity......................................19
6. Payments of a specified amount....................19
7. Joint survivorship annuity
with a 10-year period certain.....................19
Additional Interest...................................20
10. TABLES OF PAYMENT OPTION AMOUNTS........................20
D601
CONTRACT SUMMARY
ABOUT THIS SUMMARY This summary briefly highlights some of the major
contract provisions. Since this is only a
summary, the detailed provisions of the contract
will control. See those provisions for full
information and any limits or restrictions that
apply. A Table of Contents is provided to help
you find specific provisions. Your contract is a
legal contract between you and us. You should,
therefore, READ YOUR CONTRACT CAREFULLY.
Check the Schedule Page of this contract to make
sure it reflects the premium payment allocation
requested. Please call your agent or us any time
you have questions about your contract.
THE TYPE OF CONTRACT This contract provides for payment of a 10-year
period certain variable monthly life annuity
based on the value accumulated prior to the
Maturity Date. The amount of each annuity payment
will be based on the Contract Value on the
Maturity Date, the annuity purchase rates stated
herein, and the investment experience of the
Subaccounts during the annuity payout period.
Other Annuity Payment Options are available.
PREMIUM PAYMENTS The values that accumulate under this contract
ALLOCATED TO prior to the Maturity Date are based on the
SUBACCOUNTS premium payments made, the rates of interest
credited on any premium payments allocated to the
Guaranteed Interest Account, and the investment
experience of the Subaccounts within the Separate
Account on any premium payments allocated to the
Subaccounts. Except for the Guaranteed Interest
Account which is part of our General Account, the
Subaccounts are part of PHL Variable Insurance
Company's Variable Accumulation Separate Account
(VA Account) and have differing investment
objectives as shown on the Schedule Page. We have
the right to add additional Subaccounts of the
Separate Account subject to approval by the
Securities and Exchange Commission and, where
required, the insurance supervisory official of
the state where this contract is delivered.
Subject to the terms of this contract, you may
transfer the Contract's Value between and among
the various Subaccounts and Guaranteed Interest
Account.
The VA Account is a Separate Account established
by our company under Connecticut Law and is
registered as a unit investment trust under the
Investment Company Act of 1940. All income, gains
and losses, realized and unrealized, of the VA
Account are credited to or charged against the
amounts placed in the VA Account without
reference to other income, gains and losses of
our General Account. The assets of the VA Account
are owned solely by us and we are not a trustee
with respect to such assets. These assets are not
chargeable with liabilities arising out of any
other business that we may conduct.
D601
We use the assets of the VA Account to buy shares
of the Fund(s) identified on the Schedule Page of
this contract according to your most recent
allocation instruction on file with us at our
Variable Products Operations. The Fund(s) are
registered under the 1940 Act as an open-end,
diversified management investment company. The
Fund(s) have separate Series that correspond to
the Subaccounts of the VA Account. Assets of each
Subaccount are invested in shares of the
corresponding Fund Series.
D601
This contract also contains a Guaranteed Interest
Account to which premium payments may be
allocated. The Guaranteed Interest Account is not
part of the Separate Account. It is accounted for
as part of our General Account. We will credit
interest on the amount in the Guaranteed Interest
Account at such rate(s) as provided under the
terms of this contract. We reserve the right to
add other Guaranteed Interest Accounts subject to
approval (as required by some states) by the
insurance supervisory official of states where
this contract is delivered.
WITHDRAWAL PRIVILEGE Subject to the terms of this contract, the
Contract Value, less any applicable contingent
deferred sales charge, may be withdrawn in whole
or in part on or before the Maturity Date. After
the Maturity Date, you may only withdraw from the
remaining value under Variable Payment Options K
or L, less any applicable contingent deferred
sales charge.
OTHER BENEFITS This contract provides for the payment of death
proceeds in the event of the death of either the
Owner or the Annuitant prior to the Maturity
Date. The amount of the death proceeds will
depend upon whether it is the Owner or the
Annuitant whose death has occurred. The amount of
the death proceeds is determined as described in
Part 9 of this Contract.
D601
PART 1: DEFINITIONS
YOU (YOUR) The Owner of this contract.
WE (OUR, US) PHL Variable Insurance Company
ACCUMULATION UNIT A standard of measurement as described in Part 4,
used to determine the value of a Contract and its
interest in the Subaccounts prior to the Maturity
Date and for amounts held under Payment Option L.
ACCUMULATION UNIT On the first Valuation Date selected by us, we
VALUE set all Accumulation Unit Values of each
Subaccount of the Separate Account at 1.000000. The
Accumulation Unit Value on any subsequent Valuation
Date is determined by multiplying the Accumulation
Unit Value of the Subaccount on the immediately
preceding Valuation Date by the Net Investment Factor
for that Subaccount for the Valuation Period just
ended.
ADJUSTED PREMIUM Any premium to the Guaranteed Interest Account,
as adjusted to include any interest credited on and
any contract charges or withdrawals deducted from such
premium payment.
ANNUITANT On or prior to the Maturity Date, the term
"Annuitant" as used in this contract refers to
the Primary Annuitant as shown on the Schedule
Page, while such Primary Annuitant is living, and
then the Contingent Annuitant, if any, as
designated on the written application for this
contract or as later changed by you in writing,
provided such Contingent Annuitant is living at
the death of the Primary Annuitant. After the
Maturity Date, the term "Annuitant" shall mean
the Annuitant under this contract determined as
of the Maturity Date.
ANNUITANT'S The beneficiary entitled to receive payment of
BENEFICIARY any amounts payable under this contract upon
death of the Annuitant.
ANNUITY A contract promising a periodic series of payments.
ANNUITY UNIT A standard of measurement used to determine the
amount of each variable income payment made under
the Variable Payment Options I, J, K, M and N.
The number of Annuity Units in each Subaccount
with assets under the chosen option is equal to
the portion of the first payment provided by that
Subaccount divided by the Annuity Unit Value for
that Subaccount on the first Payment Calculation
Date.
D601 12
ANNUITY UNIT VALUE On the first Valuation Date selected by us, we
set all Annuity Unit Values in each Subaccount of
the Separate Account at $1.000000. The Annuity
Unit Value on any subsequent Valuation Date is
equal to the Annuity Unit Value of the Subaccount
on the immediately preceding Valuation Date
multiplied by the Net Investment Factor for that
Subaccount for the Valuation Period divided by
1.000000 plus the rate of interest for the number
of days in the Valuation Period based on the
Assumed Investment Rate.
ASSIGNS Any person to whom you assign an interest in this
contract if we have notice of the assignment in
accordance with the provisions stated in Part 2.
D601 13
ASSUMED INVESTMENT The Assumed Investment Rate is 4.5% per year. We
RATE use this rate to determine the first payment
under Variable Payment Annuity Options I, J, K, M
and N. Future payment amounts under these options
will depend on the relationship between the
Assumed Investment Rate and the actual investment
performance of each Subaccount as reflected in
the Subaccount's Annuity Unit Value. The Assumed
Investment Rate is the annual investment return
that will need to be earned by each Subaccount of
the Separate Account for there to be no reduction
in the amount of the monthly payments under these
options.
CONTRACT ANNIVERSARY The same date each year as the Contract Date.
CONTRACT DATE The Contract Date shown on the Schedule Page. It
is the date from which contract years and
anniversaries are measured.
CONTRACT VALUE The sum of the values under a Contract of all
Accumulation Units held in the Subaccounts of the
separate account and the value held in the Guaranteed
Interest Account.
CONTRACT YEAR The first contract year is the one-year period
from the Contract Date. Following Contract Years run
from one Contract Anniversary to the next.
FIXED PAYMENT An annuity providing payments which do not vary
ANNUITY in amount after the first payment is made.
MATURITY DATE The Maturity Date shown on the Schedule Page or
such changed Maturity Date as may result from
death of the Primary Annuitant while a Contingent
Annuitant is living or as we may later agree in
writing. The Maturity Date may not be earlier
than the fifth Contract Anniversary, or later
than the Contract Anniversary nearest the
Annuitant's 95th birthday unless we agree
otherwise. If a Contingent Annuitant becomes the
Annuitant as the result of death of the Primary
Annuitant prior to the Maturity Date, unless you
and we agree otherwise, the Maturity Date will
change to the Contract Anniversary nearest the
Contingent Annuitant's 95th birthday.
D601 14
NET INVESTMENT The Net Investment Factor for each Subaccount of
FACTOR the Separate Account is determined by the
investment performance of the assets underlying
the Subaccount for the Valuation Period just
ended. The Net Investment Factor is equal to
1.000000 plus the applicable net investment rate
for the Valuation Period. The net investment rate
is determined by:
a. taking the sum of the accrued net
investment income and capital gains and
losses, realized or unrealized, of the
Subaccount for the Valuation Period; and
b. dividing the result of (a) by the
Subaccount's share of the Contract Value at
the beginning of the Valuation Period; and
c. for each calendar day in the Valuation
Period subtracting from the result of (a)
divided by (b), an amount equal to the
mortality and expense risk fee plus the
daily administrative fee and any daily tax
fee.
OWNER/ANNUITANT An individual who is both the Owner and Annuitant
under the contract.
OWNER'S BENEFICIARY The beneficiary entitled to receive payment of any
amounts payable under this contract upon death of the
Owner.
PAYMENT CALCULATION The date we calculate annuity payments under a
DATE Variable Payment Annuity Option. The first Payment
Calculation Date is the Valuation Date on or next
following the Settlement Date unless we agree
otherwise.
After the first Payment Calculation Date, we will
calculate payments on the same date each month. We use
the next following Valuation Date if such date is not
a Valuation Date.
After the first Payment Calculation Date, you may not
change the Payment Option you elected.
PREMIUM PAYMENT DATE The Valuation Date on which a premium payment is
received at our Variable Products Operations unless it
is received after the close of the New York Stock
Exchange, in which case it will be the next Valuation
Date.
SETTLEMENT DATE The date contract proceeds are applied under a payment
annuity option. Unless we agree otherwise, for death
benefits, the Settlement Date is the date that we
receive a certified copy of the Annuitant's
certificate of death; for proceeds payable on the
Maturity Date, it is the Maturity Date; and for
proceeds payable upon a surrender, it is the effective
date of the surrender.
SUBACCOUNTS The accounts within our Separate Account to which
assets under the contract may be allocated.
SURRENDER VALUE Contract Value less any applicable contingent deferred
sales charge.
D601 15
VALUATION DATE Every day the New York Stock Exchange is open for
trading and PHL Variable Insurance Company is open for
business.
VALUATION PERIOD The period in days beginning with the day following
the last Valuation Date and ending on the next
succeeding Valuation Date.
VARIABLE PAYMENT An annuity where each payment will vary with the
ANNUITY investment experience of the Subaccounts within the
separate account.
VPO Our Variable Products Operations division. The address
is shown on the cover page of this contract.
WRITTEN REQUEST A request in writing in a form satisfactory to us
(AND WRITTEN NOTICE) received by us at VPO.
PART 2: ABOUT THIS CONTRACT
THE EFFECTIVE DATE This contract will begin in effect on the Contract
Date provided the initial premium due is paid while
the Annuitant is alive.
THE CONTRACT This contract and the written application, a copy of
AND APPLICATION which is attached to and made a part of this contract
is the entire contract between you and us. Any change
in terms of this contract, to be in effect, must be
signed by one of our executive officers and
countersigned by our Registrar or one of our executive
officers. This contract is issued at our Main
Administrative Office in Hartford, Connecticut. Any
benefits payable under this contract are payable at
VPO.
REQUIRED PROOF We may require proof of the Annuitant's age before any
OF AGE AND SURVIVAL annuity payments will begin. We also have the right to
require proof of the identity, age and survival of any
person entitled to any payment under this contract or
upon whose life any payments depend.
ADJUSTMENT FOR If the age or sex of the Annuitant has been misstated,
MISSTATEMENT OF any benefits payable will be adjusted to the amount
AGE OR SEX that the Contract Value would have purchased based on
the Annuitant's correct age and sex. Any over
payment(s) and under payment(s) made by us will be
charged or credited against future payments to be made
under the contract.
ASSIGNMENTS We will not be considered to have notice of any
assignment of an interest in this contract until we
receive the original or copy of the written assignment
at VPO. In no event will we be responsible for its
validity.
STATEMENT OF ACCOUNT We will furnish you, at least annually, a statement of
the Contract Value of this contract in each of the
Subaccounts. We will also provide you with a statement
of the investments held by each Subaccount of the
Separate Account. After the Maturity Date, we will
provide you with an Annual Statement of Account
Activity.
D601 16
PART 3: RIGHTS OF OWNER
WHO IS THE OWNER The Owner is the person named as Owner in the
application. The Owner may be the Annuitant, an
employer, a trust or any other individual or entity
specified in the application for the Contract.
However, under Contracts used with certain tax
qualified plans, the Owner must be the Annuitant. A
husband and wife may be designated as Joint Owners,
and if such a Joint Owner dies, the other Joint Owner
becomes the sole Owner of the Contract. If no Owner is
named, the Annuitant will be the Owner.
WHAT ARE THE RIGHTS You control this contract during the Annuitant's
OF THE OWNER lifetime but not until the effective date. Unless you
and we agree otherwise, you may exercise all rights
provided under this contract without the consent of
anyone else. Your rights include the right to:
a. Receive any amounts payable under this contract
during the Annuitant's lifetime.
b. Change the Owner.
c. Change the premium payment amount and premium
payment intervals. See Part 4.
d. Change the allocation schedule for premium
payments. See Part 4.
e. Transfer Contract Values between and among the
various Sub-accounts and the Guaranteed
Interest Account. See Part 5.
f. Make withdrawals from the various Subaccounts
and the Guaranteed Interest Account or fully
surrender the contract for its Surrender Value.
See Part 5.
g. Select a Payment Option for amounts payable upon
a withdrawal or full surrender.
h. Select an alternative Payment Option to commence
on the Maturity Date. See Part 8.
i. Change the Owner's or Annuitant's Beneficiary.
j. Assign, subject to the restrictions stated in
Part 2, release, or surrender any interest in
this contract. See Parts 2 and 5.
k. Change the Contingent Annuitant any time prior
to the death of the Primary Annuitant.
You may exercise these rights only while the Annuitant
is alive. Your exercise of any rights will, to the
extent thereof, assign, release, or surrender the
interest of the Annuitant and all beneficiaries and
Owners under this contract.
D601 17
HOW TO CHANGE To change the Owner you must submit a written request
THE OWNER satisfactory to us.
DESIGNATION OF Prior to the death of the Annuitant, you may designate
CONTINGENT ANNUITANT or change the Contingent Annuitant by notifying VPO in
writing with the name, date of birth, sex, Social
Security Number and address of the new Contingent
Annuitant.
If you are an Owner/Annuitant and your spouse is
designated as your beneficiary under this Contract,
your surviving spouse will automatically be designated
as the Contingent Annuitant.
PART 4: PREMIUMS
PREMIUM The initial premium payment is due on the Contract
PAYMENT AMOUNTS Date. The Annuitant must be alive when the initial
premium payment is made. Thereafter, the premium
payment amount and intervals are as shown on the
Schedule Page unless later changed as described below.
All premium payments are payable at VPO, except that
the initial premium payment may be given to an
authorized agent for forwarding to VPO. No benefit
associated with any such premium payment will be
provided until it is actually received by us at VPO.
You may vary the amount and premium payment intervals
for subsequent premium payments, and additional
premium payments may be made within the following
limits:
a. Each premium payment must at least equal $25.
b. No more than $1,000,000 in total premium
payments may be paid on this contract, unless we
agree otherwise.
c. The premium payment intervals may be unscheduled
or changed to annual, semi- annual, quarterly,
monthly, or any other arrangement agreed to by
us.
d. Additional premium payments may only be made
while an Annuitant is living, prior to the
Maturity Date.
We reserve the right to waive the limits in a & b
above.
PREMIUM The premium payment will be applied on its Premium
PAYMENT ALLOCATION Payment Date to the various Subaccounts and the
Guaranteed Interest Account shown on the Schedule Page
in accordance with your instructions.
You may change the allocation schedule with respect to
subsequent or additional premium payments by written
or telephone request. We reserve the right to waive
the requirement of written notice.
D601 18
ACCUMULATION UNITS The number of Accumulation Units credited to each
Subaccount of the Separate Account will be determined
by dividing the premium payment applied to that
Subaccount by the Accumulation Unit Value of that
Subaccount on the Premium Payment Date. The amount
deposited to the Guaranteed Interest Account will
equal the amount of any premium payment applied on the
Premium Payment Date.
ADDITIONAL SUBACCOUNTS We have the right to add additional Subaccounts of the
Separate Account subject to approval by the Securities
and Exchange Commission and, where required, other
regulatory authority. We further reserve the right to
add other Guaranteed Interest Accounts.
DEFERRED PREMIUM TAX Depending upon state law, a premium tax may be
required based on the laws of the state of issue or
the state in which the Owner resides when a premium
payment is applied. The premium tax rate for the
initial premium payment will be shown on the Schedule
Page. This rate may change for subsequent premium
payments in accordance with State law. We will pay any
premium tax due and will only reimburse ourselves upon
the earlier of partial withdrawal, surrender of the
Contract, payment of death proceeds or the Maturity
Date. At the time of reimbursement, we will deduct the
tax proportionately from the Subaccounts and
Guaranteed Interest Account based on their
proportionate Contract Value. On partial withdrawals,
we will deduct a pro-rata amount of the tax based upon
the ratio of the amount withdrawn to the Contract
Value.
PART 5: TRANSFERS, WITHDRAWALS AND LAPSE
TRANSFERS AMONG You may transfer all or a portion of the Contract
SUBACCOUNTS AND THE Value of this contract among one or more of the
GUARANTEED INTEREST Subaccounts and the Guaranteed Interest Account. You
ACCOUNT can make up to six transfers per contract year from
Subaccounts of the Separate Account and only one
transfer per contract year from the Guaranteed
Interest Account unless the Systematic Transfer
Program is elected. We reserve the right to limit the
number of transfers you may make. Under that program,
funds may be transferred automatically among the
Subaccounts on a monthly, quarterly, semi-annual or
annual basis. Unless we agree otherwise the minimum
initial and subsequent transfer amounts are $25
monthly, $75 quarterly, $150 semi-annually or $300
annually. Except as otherwise provided under the
Systematic Transfer Program, the amount that may be
transferred from the Guaranteed Interest Account at
any one-time cannot exceed the higher of $1000 or 25%
of the value of the Guaranteed Interest Account.
D601 19
Transfers may be made by written or telephone request.
The transfer charge if any, as of the Contract Date,
is shown on the Schedule Page. Any such charge will be
deducted from the Subaccounts or Guaranteed Interest
Account from which the amounts are to be transferred
in the same proportion as the amounts to be
transferred to each Subaccount or Guaranteed Interest
Account bear to the total amount transferred. The
value of each Subaccount will be determined on the
Valuation Date that coincides with the date of
transfer. Any Accumulation Units held under a
Subaccount of the Separate Account or Adjusted
Premiums held under the Guaranteed Interest Account as
the result of any transfer shall retain its original
Premium Payment Date.
WITHDRAWALS AND FULL You may withdraw in cash the Contract Value of this
SURRENDER contract, less any applicable deferred premium tax or
contingent deferred sales charge, in whole or in part
any time prior to the Maturity Date or at any time for
amounts held under Variable Payment Annuity Options K
or L. Such withdrawals must be by written request in a
form satisfactory to us and must include such tax
withholding information as we may reasonably require.
The portion withdrawn from any Subaccount of the
Separate Account will be taken by the surrender and
release of such number of Accumulation Units in such
Subaccount required to make the withdrawal, including
any deferred premium tax or contingent deferred sales
charge applicable to such withdrawal. Any portion
withdrawn from the Guaranteed Interest Account will be
taken by the release of Adjusted Premiums in the
amount needed to make the withdrawal, including any
deferred premium tax or contingent deferred sales
charge applicable to such withdrawal. If as the result
of a withdrawal, no Contract Value remains under this
contract, the contract will be deemed fully
surrendered and of no further value or effect. The
Contract Value of each Subaccount will be determined
on the Valuation Date that coincides with the date of
the withdrawal.
After the first Contract Year, and each Contract Year
before the Maturity Date, an amount up to 10% of the
Contract Value as of the end of the prior contract
year may be withdrawn free of any contingent deferred
sales charge. Any amount withdrawn during the first
contract year or in excess of the 10% in subsequent
contract years will be subject to the following
contingent deferred sales charge, expressed as a
percentage of the amount withdrawn:
D601 20
Age in Complete Years from Payment
Date of Unit or Adjusted Premium Contingent Deferred
Released to Effectuate Withdrawal Sales Charge
--------------------------------- ------------
0 7%
1 6%
2 5%
3 4%
4 3%
5 2%
6 1%
7 and over 0%
In no event, however, will the total of all contingent
deferred sales charges applied under this contract
exceed 9% of the total premium payments paid on this
contract.
You may elect to apply the amount withdrawn or
surrendered to the various Payment Options described
in Part 10.
LAPSE If on any Valuation Date the Contract Value of this
contract becomes zero, the contract will immediately
terminate and lapse without value unless any Contract
Value has been applied under one of the Variable
Payment Options. We will mail to you, at your most
recent post office address on file with us at VPO, a
written notice of lapse within 30 days after any such
Valuation Date.
RULES AND LIMITATIONS The Accumulation Units and Adjusted Premiums released
for transfer or withdrawal will be determined on a
First-In, First-Out (FIFO) basis based on Premium
Payment Date. No withdrawals, or full surrender may be
made after commencement of an annuity on the Maturity
Date except for any Contract Value remaining under
Options K or L. Also, you may not transfer any assets
under Option M, unless we agree otherwise.
DEFERRAL OF PAYMENT With the exception of transfers from the Guaranteed
Interest Account, as described above under Transfers
Among Subaccounts and withdrawals from such Subaccount
as described below, transfers, withdrawals, or a
request for a full surrender will usually be processed
within 7 days after we receive the written request at
VPO. However, we may postpone the processing of any
such transactions for any of the following reasons (as
provided under the Investment Company Act of 1940):
a. when the New York Stock Exchange is closed,
other than customary weekend and holiday
closings;
b. when trading on the exchange is restricted by
the Securities and Exchange Commission;
D601 21
c. when the Securities and Exchange Commission
declares that an emergency exists as a result of
which disposal of securities in the Fund is not
reasonably practicable or it is not reasonably
practicable to determine the value of the Units
in the Subaccounts of the Separate Account; or
d. when a governmental body having jurisdiction
over the VA Account by order permits such
suspension.
Rules and regulations of the Securities and Exchange
Commission, if any, are applicable and will govern as
to whether conditions described in (b) or (c) or (d)
exist.
For withdrawals from the Guaranteed Interest Account,
we may defer payment for up to six months from the
date the request is received by us at VPO. If payment
is delayed 30 days or more, we will add interest at an
annual rate of 4 %.
PART 6: EXPENSE CHARGES
Charges to cover expenses incurred by us in the
distribution and administration of this contract are
made in the manner described below.
PREMIUM TAX The premium tax, if any, as of the Contract Date, is
shown on the Schedule Page. This rate may change for
subsequent premium payments in accordance with
applicable State law. We will pay any premium tax due
and will only reimburse ourselves upon the earlier of
partial withdrawal, surrender of the Contract, payment
of death proceeds or the Maturity Date. At the time of
reimbursement, we will deduct the tax proportionately
from the Subaccounts and Guaranteed Interest Account
based on their proportionate Contract Value. On
partial withdrawals, we will deduct a pro-rata amount
of the tax based upon the ratio of the amount
withdrawn to the Contract Value.
SURRENDER CHARGE A charge to cover expenses incurred in the sale and
distribution of this contract is taken in the form of
a contingent deferred sales charge as described in
Part 5 which is applied to any withdrawals or full
surrender made within the seven-year period following
the Premium Payment Date of the Accumulation Units or
Adjusted Premiums released to make such withdrawal or
surrender.
TRANSFER CHARGE A transfer charge as shown on the Schedule Page is
imposed on transfers.
D601 22
ANNUAL ADMINISTRATIVE A portion of the administrative expense incurred by us
CHARGE is assessed in the form of an annual charge as shown
on the Schedule Page. We reserve the right to lower
such charge. Such charge will be deducted at the end
of each contract year from the total Contract Value
with each Subaccount and Guaranteed Interest Account
bearing a pro-rata share of such expense based on the
proportionate Contract Value of each of the
Subaccounts and Guaranteed Interest Account. By
agreement with us, you may, instead, elect to pay this
charge in cash.
If you elect Payment Options I, J, K, M or N, the
Annual Administrative Charge after the Maturity Date
will be deducted from each annuity payment in
proportionately equal amounts.
MORTALITY AND EXPENSE The mortality and expense risk fee is taken in the
RISK FEE form of a daily fee against each Subaccount of the
Separate Account in such amount as shown on the
Schedule Page. We reserve the right to lower such fee.
DAILY TAX FEE A daily tax fee, if any, is taken by us in the form of
a daily fee against each Subaccount of the Separate
Account in such amount as shown on the Schedule Page.
DAILY ADMINISTRATIVE FEE A portion of the administrative expense incurred by us
is assessed in the form of a daily fee against each
Subaccount of the Separate Account as shown on the
Schedule Page.
PART 7: DETERMINING THE CONTRACT AND
ACCUMULATION UNIT VALUES
CREDITING OF SUBACCOUNT When a premium payment is received by us, we will
UNITS AND PREMIUMS apply it on the Premium Payment Date to credit
Accumulation Units to one or more Subaccounts of the
Separate Account or to credit premiums to the
Guaranteed Interest Account in accordance with the
most recent allocation schedule on file with us. The
number of Accumulation Units credited to each
Subaccount will be determined by dividing the premium
payment, applied to that Subaccount by the then
current Accumulation Unit Value of that Subaccount.
The Accumulation Unit Value of each Subaccount on a
Valuation Date is determined at the end of that day.
D601 23
DETERMINATION OF THE The value of a Subaccount of the Separate Account, at
CONTRACT VALUE any time prior to the Maturity Date, is determined by
multiplying the total number of Accumulation Units
under this contract for that Subaccount by the current
Accumulation Unit Value of that Subaccount. The
Contract Value for amounts held under Variable Payment
Annuity Option L is determined in the same manner. The
value of the Guaranteed Interest Account equals the
total value of the Adjusted Premiums. The total
Contract Value under this contract equals the sum of
the values of each of the Subaccounts and the Adjusted
Premiums.
THE VALUATION OF The values and benefits of the Guaranteed Interest
SUBACCOUNTS AND Account are not less than those required by the laws
GUARANTEED INTEREST of the state in which it is delivered.
ACCOUNT
The values of the assets in each Subaccount will be
calculated in accordance with applicable law and
accepted procedures.
PART 8: ANNUITY BENEFITS
Unless you elect an alternative Payment Option as
described in Part 10 on or before the Maturity Date,
the Contract Value less any premium tax due on the
Maturity Date will automatically be applied to provide
you a variable monthly life annuity with 10-year
period certain based on the Annuitant's age and sex
under Payment Option I as described in Part 10. Any
annuity payments falling due after the Annuitant's
death during the period certain will be paid to the
Annuitant's Beneficiary.
If the amount to be applied on the Maturity Date is
less than $2,000 or would result in monthly payments
of less than $20, we shall have the right to pay such
amount to you in one lump sum in lieu of providing
such annuity. We also have the right to change the
annuity payment frequency to annual if the monthly
annuity payment would otherwise be less than $20.
MATURITY DATE The amount of the first monthly annuity payment for
GUARANTEED RATES each $1,000 of Contract Value applied on the Maturity
Date to purchase a variable life annuity with 10-year
period certain on the Annuitant's life under Payment
Option I as described in Part 10, will be no less than
the rates shown below. However, if our current rates
in effect for this contract on the Maturity Date are
more favorable, we will use them.
D601 24
OPTION I -- VARIABLE PAYMENT LIFE ANNUITY WITH 10-YEAR
PERIOD CERTAIN
AGE OF
PAYEE MALE FEMALE
40 $4.15 $4.02
45 4.29 4.12
50 4.40 4.27
55 4.73 4.46
60 5.05 4.71
65 5.51 5.05
70 6.08 5.52
75 6.79 6.17
80 7.65 6.99
85 8.58 7.98
PART 9: DEATH BENEFITS
DEATH PROCEEDS For deaths occurring prior to the Maturity Date, the
term death proceeds is defined as follows:
1. Upon the death of an Owner/Xxxxxxxxx, (an
individual who is both the Owner and the
Annuitant under a contract), the death proceeds
are equal to the same Death Benefit as described
under number 2 below less any deferred premium
tax.
2. Upon the death of an Annuitant who is not the
Owner, the death proceeds are equal to the Death
Benefit as described below less any deferred
premium tax.
Prior to the Annuitant's Age 85, the Death Benefit is
calculated as follows:
a. Death occurring in the first 7 Contract
Years - The greater of:
i. the sum of all premium payments made
under the Contract less any prior
partial withdrawals (see "Withdrawals
and Full Surrenders" in Part 5); or
ii. the Contract Value next determined
following receipt of a certified copy
of the death certificate at VPO.
b. Death occurring during Contract Years 8
through 14 (and each 7 year period
thereafter) - The greater of:
i. the death benefit that would have been
payable at the end of the immediately
preceding 7-year period, plus the sum
of premium payments less any partial
withdrawals made since such date; or
D601 25
ii. the Contract Value next determined
following receipt of a certified copy
of the death certificate at VPO.
After the Annuitant's age 85, the Death Benefit equals
the Contract Value next determined following receipt
of a certified copy of the death certificate at VPO.
3. Upon the death of an Owner who is not the
Annuitant, the death proceeds are equal to the
cash Surrender Value of the Contract, (Contract
Value less any applicable contingent deferred
sales charges and any deferred premium tax).
4. In the event of the election by the Owner's or
Owner/Xxxxxxxxx's beneficiary to defer payment
of the death proceeds for a period of longer
than one Contract Year, the death proceeds
payable upon distribution shall be as calculated
in accordance with the method defined under
Death occurring in the first 7 Contract Years as
described above.
The death proceeds due may be applied under any of the
Payment Options described in Part 10 subject to the
following limitations:
a. Options D, F and J are not available for
death benefits;
b. Under Options A, E, G, H and K the period
specified must be at least 5 years, but not
beyond the life expectancy of such
beneficiary.
DEATH BEFORE 1. Death of an Owner/Annuitant (an individual who
MATURITY DATE is both the Owner and the Annuitant under the
contract):
If an Owner/Xxxxxxxxx dies before the Maturity
Date, upon receipt of due proof of death, the
death proceeds will be paid to the Annuitant's
Beneficiary except as follows:
- If the Owner/Annuitant's Beneficiary (i.e.
Owner's Beneficiary) is the surviving
spouse, within 60 days of our receipt of
due proof of death, the surviving spouse
may elect to continue the Contract as new
Owner/Annuitant as if no death had
occurred.
2. Death of an Annuitant who is not the Owner:
If an Annuitant who is not the Owner dies before
the Maturity Date, upon receipt of due proof of
death, the death proceeds will be paid to the
Annuitant's Beneficiary except as follows:
- If there is a Contingent Annuitant, the
Contract will continue with the Contingent
Annuitant becoming the new Annuitant.
D601 26
We shall have the right to first require return of the
contract to us so that we may amend it to reflect
these changes.
3. Death of an Owner who is not the Annuitant:
If an Owner who is not the Annuitant dies before
the Maturity Date, upon receipt of due proof of
death, we will pay the Owner's Beneficiary the
death proceeds, except in the following
instances:
a. If the Owner's surviving spouse is a Joint
Owner, the Contract will continue with the
surviving Joint Owner becoming the sole
Owner.
b. If the Owner's Beneficiary is the surviving
spouse, within 60 days of our receipt of
due proof of death the surviving spouse may
elect to continue the Contract as the new
Owner as if no death had occurred.
DISTRIBUTION AT DEATH If the Owner/Annuitant dies before the Maturity date
REQUIREMENTS and there is no Contingent Annuitant, then the
Annuitant's Beneficiary must elect within 60 days of
our receipt of due proof of death to receive the death
proceeds in a lump sum or elect to apply the death
proceeds due under a Payment Option, provided that the
payments begin within one year of the date of death of
the Owner/Annuitant. If there is a Contingent
Annuitant who is not the Owner/Xxxxxxxxx's spouse,
then the Owner/Xxxxxxxxx's entire interest in this
contract must be distributed within five years of the
date of the Owner/Xxxxxxxxx's death, provided that the
Owner's Beneficiary may elect to apply the death
proceeds to a Payment Option not extending beyond the
life (or life expectancy) of such Owner's Beneficiary
and the payments begin within one year after the
Owner/Annuitant's death.
If the Annuitant who is not the Owner dies before the
Maturity Date and there is no Contingent Annuitant,
then the Annuitant's Beneficiary must elect within 60
days of our receipt of due proof of death to receive
the death proceeds in a lump sum or elect to apply the
death proceeds due under a Payment Option, provided
that the payments begin within one year of the date of
death of the Annuitant.
If the Owner who is not the Annuitant dies before the
Maturity Date and the Owner's surviving spouse is not
the Joint Owner or the Owner's Beneficiary, the
Owner's entire interest in this Contract must be
distributed within five years of the date of the
Owner's death, provided that the Owner's Beneficiary
may elect to apply the death proceeds to a Payment
Option not extending beyond the life (or life
expectancy) of the Owner's Beneficiary and the
payments begin within one year after the Owner's
death.
D601 27
DEATH ON OR AFTER If either the Owner/Xxxxxxxxx, Annuitant, or Owner
THE MATURITY DATE dies on or after the Maturity Date, any remaining
income payments will be continued to the Annuitant's
or Owner's Beneficiary respectively. Under Payment
Option M, the sum of the number of remaining Annuity
Units for each Subaccount multiplied by the current
Annuity Unit Value for that Subaccount will be paid to
the Annuitant's or Owner's Beneficiary in a lump sum,
(see "Option M - Unit Refund Variable Life Annuity" in
Part 10).
THE BENEFICIARY The Annuitant's Beneficiary:
---------------------------
The Annuitant's Beneficiary shall be as stated in the
application for this Contract, unless later changed as
provided under the terms of this contract. Any death
benefit payable to the Annuitant's Beneficiary will be
paid to the Owner or the Owner's estate if the
Annuitant's Beneficiary is not living when such death
benefit becomes payable.
The Owner's Beneficiary:
------------------------
The Owner's Beneficiary shall be as stated in the
application for this Contract, unless later changed as
provided under this contract. Any death proceeds
payable to the Owner's Beneficiary will be paid to the
Owner's estate if the Owner's Beneficiary is not
living when such death proceeds become payable.
In the case of the death of an Owner/Annuitant where
conflicting Owner and Xxxxxxxxx's Beneficiaries have
been named, any death proceeds payable will be paid to
the Annuitant's Beneficiary.
The naming of an Owner's or Xxxxxxxxx's beneficiary by
familial relationship (such as Mother, Father, etc.)
shall be understood to be their relationship to the
Owner or Annuitant making such designation.
WHAT ARE THE RIGHTS 1. Receive the death proceeds payable under this
OF THE BENEFICIARY contract; or
2. Select a Payment Option for the death proceeds;
or
3. Transfer the amount of any deferred death
proceeds between and among the various
Subaccounts. See Part 5.
HOW TO CHANGE THE At any time prior to the death of the last of the
BENEFICIARY Annuitants under this contract, you may change the
Owner's Beneficiary or the Annuitant's Beneficiary.
The change must be made by written notice signed by
you and filed with us at VPO. When we receive it, the
change will be effective as of the date it was signed
by you. However, the change will be subject to any
payment made or actions taken by us before we received
the notice at VPO.
D601 28
PART 10: PAYMENT OPTIONS
The election of a payment option must be in a written
form satisfactory to us. We reserve the right to
require that the election of a payment option be in
the form of a supplementary contract distributed by us
reflecting the terms of the payment option elected. We
have the right to require proof of age and sex of any
person on whose life payments depend, as well as proof
of the continued survival of any such person. We
further have the right to require that the amount
applied on the settlement date to any payment option
elected at least equal $2,000 and result in a monthly
payment of at least $20. As regards the election of a
payment option by the beneficiary of any death benefit
payable under this contract, limited as described in
Part 9, the term "Annuitant" as used below shall refer
to such beneficiary.
CALCULATION OF The guaranteed annuity payment rates under the
FIXED ANNUITY following options will be based on the Annuitant's age
PAYMENTS and sex, and will be no less favorable than the
following:
Under Options A, B, D, E and F rates are based on the
a-49 Annuity Table projected to 1985 with Projection
Scale B. We use an interest rate of 3-3/8% for 5 and
10 year certain periods under Option A, for the 10
year certain period under Option F, and for Option E;
an interest rate of 3-1/4% for the 20 year certain
period under Options A and F; an interest rate of
3-1/2% under Options B and D. Under Options G and H
the guaranteed interest rate is 3%.
If our rates in effect on the Settlement Date are more
favorable, we will use those rates.
CALCULATION OF Under the following options, all payments after the
VARIABLE ANNUITY first payment will vary with the investment experience
PAYMENTS of the Subaccounts. Payments may be either higher or
lower than the first payment.
Under Options I, J, K, M and N, we determine the first
payment by multiplying the amounts held under the
selected option in each Subaccount of the Separate
Account by the applicable option rate. The first
payment equals the total of such amounts determined
for each Subaccount. We determine future payments
under these options by multiplying the number of
Annuity Units in each Subaccount by the Annuity Unit
Value for each Subaccount on the Payment Calculation
Date. The payment will equal the sum of the amounts
provided by each Subaccount.
Under Option L, we determine the amount of the annual
distribution by dividing the amount of Contract Value
held under this option on December 31 of the previous
year by the life expectancy of the Annuitant or the
joint life expectancy of the Annuitant and Joint
Annuitant at that time.
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Under Options I, J, M and N, the applicable option
rate used to determine the first payment amount will
not be less than the rate based on the 1983 Table A
(1983 IAM) projected with Projection Scale G to the
year 2040, and with continued projection thereafter,
and on the Assumed Investment Rate. Under Option K,
the rate will be based on the number of payments to be
made during the specified period and the Assumed
Investment Rate.
OPTION A - A fixed payout annuity payable monthly while the
LIFE ANNUITY Annuitant is living or, if later, the end of the
WITH SPECIFIED specified period certain. The period certain may be
PERIOD CERTAIN specified as 5, 10, or 20 years. The period certain
must be elected at the time this option is elected.
OPTION B - A fixed payout annuity payable monthly while the
NON-REFUND Annuitant is living and ending with the last Life
LIFE ANNUITY payment due preceding the date of the Annuitant's
death.
OPTION D - A fixed payout annuity payable monthly while the
JOINT AND SURVIVORSHIP Annuitant and the designated Joint Annuitant are
LIFE ANNUITY living, and continuing thereafter during the lifetime
of the survivor. The amount to be continued to the
survivor is 100% of the joint annuity payment, as
specified at the time this option is elected. The
designated Joint Annuitant must be designated at the
time this option is elected and must have an adjusted
age of at least 40. The adjusted age is the person's
age on his or her birthday nearest the Settlement
Date.
OPTION E - A fixed payout annuity payable monthly while the
INSTALLMENT REFUND Annuitant is living or, if later, the date the annuity
LIFE ANNUITY payments made under this option total an amount which
refunds the entire amount applied under this option.
If the Annuitant is not living when the final payment
falls due, that payment will be limited to the amount
which needs to be added to the payments already made
to equal the entire amount applied under this option.
OPTION F - A fixed payout annuity payable monthly while either
JOINT AND SURVIVORSHIP the Annuitant or designated Joint Annuitant is living,
LIFE ANNUITY WITH or if later, the end of 10 years. The designated Joint
10-YEAR PERIOD CERTAIN Annuitant must be designated at the time this option
is elected and must have an adjusted age of at least
40 years. The adjusted age is the person's age on his
or her birthday nearest the settlement date.
OPTION G - Equal income installments for a specified period of
PAYMENTS FOR A years are paid whether the payee lives or dies. The
SPECIFIED PERIOD period certain specified must be in whole number of
years from 5 to 30.
OPTION H - Equal income installments of a specified amount are
PAYMENTS OF A paid until the principal sum remaining under this
SPECIFIED AMOUNT option from the amount applied is less than the amount
of the installment. When that happens, the principal
sum remaining will be paid as a final payment. The
amount specified must provide for payments for a
period of at least 5 years.
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OPTION I - This option provides variable monthly payments that
VARIABLE LIFE ANNUITY will continue during the lifetime of the Annuitant or
WITH 10-YEAR for ten years, if longer. If the beneficiary of any
PERIOD CERTAIN death benefits payable under this contract elects this
payment option, the term "Annuitant" as used in the
preceding paragraph shall refer to such beneficiary
and the period certain will equal 10 years, or the
life expectancy of such beneficiary, if shorter.
OPTION J - This option provides variable monthly payments while
JOINT SURVIVORSHIP the Annuitant and the designated Joint Annuitant are
VARIABLE living. Payments will continue during the life of the
LIFE ANNUITY survivor or until the end of 10 years if later. You
WITH 10-YEAR must designate the Joint Annuitant at the time you
PERIOD CERTAIN elect this option. the designated Joint Annuitant must
be at least age 40 on the birthday nearest the first
Payment Calculation Date. This option is not available
for the payment of any death benefit under the
Contract.
OPTION K - This option provides variable monthly payments through
VARIABLE ANNUITY the release of a fixed number of Annuity Units over a
FOR SPECIFIED PERIOD specified period of time. Payment continues whether
the Annuitant lives or dies. The specified period must
be in whole numbers of years from 5 to 30. However,
the period selected by the beneficiary may not extend
beyond the life expectancy of such beneficiary. This
option also provides for unscheduled withdrawals. An
unscheduled withdrawal will reduce the number of
remaining annuity units. Thus, the specified period
will be reduced to the period that the remaining
annuity units can provide.
OPTION L - This option provides a variable income which is
VARIABLE LIFE payable over the Annuitant's annually recalculated
EXPECTANCY ANNUITY life expectancy or the annually recalculated life
expectancy of the Annuitant and Joint Annuitant. This
option also provides for unscheduled withdrawals. An
unscheduled withdrawal will reduce the Contract Value.
This will thus affect the amount of future payments.
Upon the death of the Annuitant (and Joint Annuitant,
if there is a Joint Annuitant) the remaining Contract
Value will be paid in a lump sum to the Annuitant's
beneficiary.
OPTION M - This option provides variable monthly payments as long
UNIT REFUND as the Annuitant lives. In the event of the death of
VARIABLE LIFE ANNUITY the Annuitant, the income will stop and the
Annuitant's beneficiary will receive in a lump sum the
value of the remaining Annuity Units. This value is
equal to the sum of the number of remaining Annuity
Units for each Subaccount multiplied by the current
Annuity Unit Value for that Subaccount. The number of
remaining Annuity Units for each Subaccount of the
Separate Account will be calculated as follows:
(1) the net amount in the Subaccount applied under
this option on the first Payment Calculation
Date divided by the corresponding Annuity Unit
Value on that date minus
(2) the sum of the Annuity Units released from the
Subaccount to make the payments under this
option.
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OPTION N - This option provides a variable monthly income for the
VARIABLE NON- lifetime of the Annuitant. No income is payable after
REFUND LIFE ANNUITY the death of the Annuitant.
OTHER OPTIONS We may offer other payment options or alternative
versions of the options listed above.
PART 11: TABLE OF PAYMENT OPTION AMOUNTS
The tables that follow show the guaranteed minimum
monthly payments for Options A-G, and the minimum
initial payment for the Variable Payment Options I, J,
K M and N for each $1,000 applied. If our rates in
effect at the Settlement Date are more favorable, we
will use those rates. Subsequent monthly payments for
the Variable Payment Options will vary and may be
higher or lower than the first payment. Amounts for
payment frequencies, periods or ages not shown will be
furnished upon request.
The term "age" as used in the tables refers to the
adjusted age. The adjusted age is defined as follows:
the age of the annuitant on the annuitant's birthday
nearest the effective date of the payment option
elected.
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[logo]PHOENIX PHL VARIABLE INSURANCE COMPANY
Main Administrative Office
000 Xxxxxx Xxxxxx Xxxxxxxxx
P.O. Box 1900
Enfield, CT 06083-1900
FLEXIBLE PREMIUM VARIABLE ACCUMULATION DEFERRED ANNUITY
ALL VALUES AND BENEFITS BASED ON THE INVESTMENT EXPERIENCE OF THE SUBACCOUNTS OF
THE SEPARATE ACCOUNT ARE VARIABLE AND NOT GUARANTEED AS TO DOLLAR AMOUNT. SEE
PART 7 FOR A DESCRIPTION OF HOW THE CONTRACT VALUES ARE DETERMINED, AND PART 9
FOR A DESCRIPTION OF HOW THE DEATH BENEFITS ARE DETERMINED.
D601
