EXHIBIT (b)(4)(a)
XXXXXXX XXXXX LIFE INSURANCE COMPANY
Home Office: Little Rock, Arkansas
Service Center: P.O. Box 44222
Jacksonville, Florida 32231-4222
XXXXXXX XXXXX LIFE INSURANCE COMPANY will make monthly annuity payments for the
life of the Annuitant or as otherwise provided in this Contract. Payments will
be made to the Owner starting on the annuity date.
This is a legal contract between you and us. PLEASE READ THE CONTRACT
CAREFULLY.
EXCEPT FOR FIXED ANNUITY PAYMENTS, VALUES PROVIDED BY THIS CONTRACT ARE BASED ON
THE INVESTMENT EXPERIENCE OF SEPARATE ACCOUNTS, ARE VARIABLE AND ARE NOT
GUARANTEED AS TO FIXED-DOLLAR AMOUNT.
TEN DAY RIGHT TO REVIEW CONTRACT: You may cancel this Contract within ten days
after its receipt. Simply return or mail it to us or your Financial Consultant.
We will refund the greater of the Contract Value or all of your premiums.
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TABLE OF CONTENTS
Section Page
DEFINITIONS................................................... 2
CONTRACT SCHEDULE............................................. 3
1. GENERAL PROVISIONS........................................ 5
2. PREMIUMS.................................................. 7
3. THE VARIABLE ACCOUNTS..................................... 7
4. CHARGES AND DEDUCTIONS.................................... 9
5. TRANSFERS................................................. 10
6. WITHDRAWALS FROM CONTRACT................................. 11
7. PAYMENT AT DEATH.......................................... 12
8. ANNUITY PROVISIONS........................................ 14
9. ANNUITY OPTIONS........................................... 14
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Xxxxxxx Xxxxx Life Insurance Company is a stock
life insurance company.
/s/ XXXXXX X. XXXXXXX /s/XXXXX X. XXXXXXXX
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Xxxxxx X. Xxxxxxx Xxxxx X. Xxxxxxxx
President Secretary
Individual Variable Annuity Contract
Flexible Premiums - Nonparticipating
DEFINITIONS
1. ACCUMULATION UNIT: An index used to compute the value of your interest in
the Variable Accounts prior to the annuity date.
2. ANNUITANT: Annuity payments may depend upon the continuation of a person's
life. That person is called an annuitant.
3. ANNUITY DATE: The date on which annuity payments are to start.
4. COMPANY: Xxxxxxx Xxxxx Life Insurance Company. Also referred to as "we"
or "us." CONTRACT VALUE: The sum of the value of your interest in the
Variable Accounts.
5. CONTRACT VALUE: The sum of the value of your interest in the Variable
Accounts.
6. DATE OF ISSUE: The date shown on the Contract Schedule as the date the
Contract was issued.
7. INDIVIDUAL RETIREMENT ACCOUNT OR ANNUITY ("IRA"): A retirement arrangement
meeting the requirements of Section 408 of the Internal Revenue Code under
which any appreciation is tax deferred.
8. NONQUALIFIED CONTRACT: A retirement arrangement other than a qualified
plan described under Section 401, 403, 408, 457 or any similar provisions
of the Internal Revenue Code.
9. OWNER: The person entitled to exercise all rights under the Contract. In
this Contract, "you" means Owner.
10. PREMIUMS: The money you pay us for this Contract.
11. VARIABLE ACCOUNTS: This Contract is funded by two separate accounts of the
Company called Xxxxxxx Xxxxx Life Variable Annuity Separate Account A and
Xxxxxxx Xxxxx Life Variable Annuity Separate Account B (together the
"Variable Accounts"). Variable Account A has multiple subaccounts as shown
in the Contract Schedule. Variable Account B has one subaccount also shown
in the Contract Schedule.
12. VARIABLE ANNUITY: A contract with a value that reflects investment
experience prior to the Annuity Date and provides periodic payments of set
amounts after the Annuity Date. 12.
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CONTRACT SCHEDULE
Xxxxxxx Xxxxx Life
Insurance Company Contract Number: ML-910123456
Administrative Offices: Date of Issue: March 15,
1990
P.O. Box 44233 Current Date: August 15,
1991
0000 Xxxxxxxxx Xxxx
Xxxxxxxxxxxx, XX
0-000-000-0000
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OWNER INFORMATION ANNUITANT INFORMATION
Owner Name: Xxxx X. Client Annuitant: Xxxx X. Client
Owner Age: 55 Age: 55 Sex: M
Co-Owner Name: Co-Annuitant: Xxxx X. Xxxxxx
Address: Age: 00 Xxx: X
000 Xxxxx Xxxxxx Xxxxxxx Date: August 1, 2011
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Owner's Beneficiary: Xxxx X. Xxxxxx
CONTRACT INFORMATION
Contract Type: Flexible Premium Individual Variable Annuity
Initial Premium: $100,000.00
Premium Allocation:
SEPARATE ACCOUNT A Premium: $50,000.00
Invested In:
% Domestic Money Market
Fund % Flexible Strategy Fund
25 % Prime Bond Fund 25 % Natural Resources Focus
Fund
% High Current Income Fund % American Balanced Fund
50 % Quality Equity Fund % Global Strategy Focus
Fund
% Equity Growth Fund 100 % TOTAL
SEPARATE ACCOUNT B Premium: $50,000.00
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Invested In:
100% Allocated to Reserve Assets
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Financial Consultant: Xxx Xxxxxx
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1. GENERAL PROVISIONS
1.1 BENEFICIARY: A beneficiary is the person designated by you in writing
to receive payment under Section 7, on death of the Owner.
You may change the beneficiary while you are alive.
You may name a beneficiary irrevocably. If you do so, a change can be made
later only with the beneficiary's written consent.
If a beneficiary does not survive you, the estate or heirs of such beneficiary
have no rights under this Contract. If no beneficiary survives you, payment
will be made to your estate.
1.2 OWNERSHIP OF CONTRACT: Unless another Owner is named by the
purchaser, the purchaser is the Owner.
Upon notice to us you may assign the Contract to a new Owner. The assignment
terminates all prior beneficiary designations. The new Owner's age must be less
than 85 years.
Only spouses may be co-owners. The beneficiary of the co-owner spouses must be
the surviving spouse. The age of the oldest co-owner must be less than 85
years. Ownership rights must be exercised by the co-owners jointly. Co-owners
are deemed to be joint tenants with right of survivorship unless they indicate
otherwise.
1.3 ANNUITANT: The Annuitant may be changed at any time prior to the
Annuity Date. When an Annuity Option is elected, the amount payable as of the
Annuity Date is based on the age (and sex where permissible) of the Annuitant,
as well as the Option selected and the Contract Value. The Annuitant's age must
be less than age 85 at issue or when a new Annuitant is named.
1.4 NOTICES, CHANGES AND CHOICES: To be effective, all notices, changes
and choices you may make under this Contract must be in writing, signed and
received by us at our administrative office, except that account transfers and
premium allocations may be made by telephone by you or your representative if
authorized by you in writing. If acceptable to us, notices, changes, and
choices relating to beneficiaries, ownership, Annuitants, and Annuity Date will
take effect as of the date signed unless we have already acted in reliance on
the prior status. We are not responsible for their validity.
1.5 RESTRICTIONS ON IRAS: If this Contract is issued as or as part of an
IRA, it may not be assigned, pledged, or transferred unless permitted by law.
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1.6 MISSTATEMENT OF AGE OR SEX: If the age or sex of the annuitant is
misstated, annuity payments will be adjusted to reflect the correct age and sex.
Any amount we have overpaid as the result of such misstatement will be deducted
from the next payments made by us under this Contract. Interest on the
overpayment will be charged at the rate of 6% per year. Any amount we have
underpaid will be paid in full with the next payment made by us under this
Contract. We will pay interest on the underpayment at the rate of 69% per year.
1.7 PROOF OF AGE, SEX, OR SURVIVAL: We may require satisfactory proof of
age, sex, or survival of any person on whose continued life any payment under
this Contract depends.
1.8 INCONTESTABILITY: We will not contest this Contract.
1.9 THE CONTRACT: This Contract, and any endorsements or riders are the
entire Contract. It is issued in consideration of the payment of the first
premium.
Only our President, a Vice President, Secretary, or Assistant Secretary may
change the Contract. Any change must be in writing.
At any time we may make such changes in this Contract as are required to make it
conform with any law, regulation, or ruling issued by a government agency.
1.10 NONPARTICIPATING: This Contract is nonparticipating. It does not
share in our surplus.
1.11 DATES: Contract years and anniversaries are measured from the Date of
Issue.
1.12 CONTRACT PAYMENTS: All sums payable to or by us are payable at our
administrative office. We may require return of this Contract prior to making
payment. Paid-up annuity benefits, Contract withdrawal values and death
benefits are not less than the minimum required by any statute of the state in
which the Contract is delivered.
1.13 PROTECTION OF PROCEEDS: Payments under this Contract may not be
assigned by the payee prior to their due dates. To the extent allowed by law,
payments are not subject to legal process for debts of a payee.
1.14 PERIODIC REPORTS: At least once a year prior to the annuity date we
will furnish you a report of your Contract Value. It will show the current
number of Accumulation Units, the value per Accumulation Unit and the total
Variable Account(s) value. To the extent that a person has voting rights in the
Variable
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Accounts that person will be furnished reports required by the Investment
Company Act of 1940.
1.15 PAYMENTS UNDER THE CONTRACT: Payment generally will be made within
seven days, but we may defer payment if:
(a) The New York Stock Exchange is closed;
(b) Trading on the New York Stock Exchange is restricted;
(c) An emergency exists such that it is not reasonably practical to
dispose of securities in the applicable Variable Account or to
determine the value of its assets;
(d) The Securities and Exchange Commission by order so permits for the
protection of security holders; or
(e) Payment is derived from a check used to pay a Premium which has not
cleared through the banking system.
Conditions (b) and (c) will be decided by or in accordance with rules of the
Securities and Exchange Commission. Transfers also may be deferred upon the
occurrence of any of the events descAbed above.
2. PREMIUMS
2.1 ADDITIONAL PREMIUMS: The minimum additional Premium is $300.
Premiums may be paid at any time prior to the Annuity Date without prior notice
to us. We reserve the right to refuse to accept a Premium.
2.2 PREMIUM ALLOCATION: Your Premiums will be allocated to the
subaccounts of the Variable Accounts as you direct. However, for the first 14
days following the date of issue, all Premiums will be allocated to the money
market subaccounts of the Variable Accounts. If allocation instructions are not
given with subsequent premiums received, we will allocate those premiums
according to the allocation instructions last received from you.
3. THE VARIABLE ACCOUNTS
3.1 VARIABLE ACCOUNTS: The Variable Accounts are named in the Definitions
Section of this Contract. They are separate investment accounts of Xxxxxxx
Xxxxx Life Insurance Company. With respect to each Variable Account, income,
gains, and losses, whether or not realized, from assets allocated to that
Variable Account are credited to or charged against the Variable Account without
regard to other income, gains, or losses of the Company. Assets allocated to
the Variable Accounts remain our property but
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are separate from our general account and any other separate accounts we may
have and may not be charged with liabilities from any other business we conduct.
3.2 ELIGIBLE INVESTMENTS: Current eligible investments are shown on the
Contract Schedule. We reserve the right to limit the number of subaccounts in
which you may invest.
3.3 CHANGES TO THE VARIABLE ACCOUNTS: We may make additional subaccounts
available. We reserve the right, subject to obtaining any necessary regulatory
approvals; to eliminate subaccounts; to substitute a new portfolio for the
portfolio in which a subaccount invests; to deregister either or both of the
Accounts under the Investment Company Act of 1940 (the "1940 Act"); to make any
changes required by the 1940 Act; to operate either or both Accounts as a
managed investment company under the 1940 Act or any other form permitted by
law; to transfer all or a portion of the assets of a subaccount or variable
account to another subaccount or variable account pursuant to a combination or
otherwise; and to create new variable accounts.
3.4 NUMBER OF ACCUMULATION UNITS: For each subaccount of the Variable
Accounts, the number of your Accumulation Units is the sum of:
- Each Premium or transfer allocated to the subaccount
Divided by
- The value of an Accumulation Unit for that subaccount for the
valuation period in which we received the Premium or transfer.
The number will be adjusted for transfers from each subaccount, withdrawals and
charges. Adjustments will be made as of the valuation period in which we
receive all requirements for the transaction, as appropriate.
3.5 VALUE OF EACH ACCUMULATION UNIT: For each subaccount of the Variable
Accounts, the value of an Accumulation Unit was arbitrarily set at $10 when the
subaccount was established. The value may increase or decrease from one
valuation period to the next. For any valuation period the value is:
- The value of an Accumulation Unit for the last prior valuation period
Multiplied by
- The Net Investment Factor for that subaccount for the current
valuation period.
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3.6 NET INVESTMENT FACTOR: This is an index used to measure the
investment performance of a subaccount of the Variable Accounts from one
valuation period to the next. For any subaccount, the Net Investment Factor is
determined by dividing the value of the assets of the subaccount for that
valuation period by the value of the assets of the subaccount for the preceding
valuation period, and subtracting from the result the valuation period
equivalent of the annual administration (if applicable), mortality and expense
charges.
We may adjust the Net Investment Factor to make provision for any change in tax
law that requires us to pay tax on capital gains in the Variable Accounts and
any charge that may be assessed against the Accounts for assessments or federal
premium taxes or federal, state or local excise, profits or income taxes
measured by or attributable to the receipt of premiums.
3.7 VALUATION PERIOD: This is the interval from one determination of the
net asset value of a subaccount to the next. Net asset values are determined as
of the close of business on each day the New York Stock Exchange is open.
3.8 VARIABLE ACCOUNT VALUE: This is the sum of the value of the
Accumulation Units allocated to your Contract in each subaccount of a Variable
Account.
4. CHARGES AND DEDUCTIONS
4.1 CONTRACT MAINTENANCE CHARGE: A charge of $40 will be deducted on each
Contract anniversary that occurs on or prior to the annuity date. It will also
be deducted when the Contract Value is withdrawn in full if withdrawal is not on
a Contract anniversary. This charge will never increase. We will waive this
charge for Contracts with Contract Values of $50,000 or more at the time the
deduction would otherwise be made.
4.2 VARIABLE ACCOUNTS EXPENSE AND MORTALITY RISK CHARGES: These charges
are made to compensate us for guaranteeing that the Contract maintenance charge
and Variable Account A administration charge will never increase and for the
mortality guarantees we make under this Contract. On an annual basis, they
equal 1.25% of the daily net asset value of Variable Account A and 0.65% of
Variable Account B.
4.3 VARIABLE ACCOUNT A ADMINISTRATION CHARGE: This charge compensates us
for expenses we incur in the establishment and administration of Variable
Account A. On an annual basis it equals 0.10% of the daily net asset value of
Variable Account A.
4.4 CONTINGENT DEFERRED SALES CHARGE: A charge will be made at withdrawal
from Variable Account A prior to the Annuity Date. The contingent deferred
sales charge is calculated
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separately for each Premium. The first withdrawal from Variable Account A in a
Contract year is made under Section 6.2. For other withdrawals, Premium
payments are withdrawn on a "first-in, first-out" (FIFO) basis, and all premiums
are withdrawn before earnings are withdrawn.
Contingent deferred sales charges are calculated as a percentage of the Premiums
withdrawn but not to exceed the value of your interest in Variable Account A.
This percentage is based on the number of complete years elapsed from the date
the Premium is paid to the date of the surrender or withdrawal as shown in the
following schedule:
Number of Complete Years Elapsed Percent
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0 7%
1 6%
2 5%
3 4%
4 3%
5 2%
6 1%
7 0%
4.5 TAXES, FEES, AND ASSESSMENTS: Any charges made by us attributable to
premium taxes imposed by a state or other government will be deducted at the
annuity date. We may also deduct a charge for assessments or federal premium
taxes or federal, state, or local excise, profits, or income taxes measured by
or attributable to the receipt of Premiums. We also reserve the right to deduct
from the Variable Accounts any taxes imposed on the Variable Accounts'
investment earnings.
4.6 PAYMENT OF DEDUCTIONS: The mortality and expense risk charge, and
administration charge will be computed and deducted from each subaccount of the
applicable Variable Account for each day the Contract is in force. The transfer
charge described in Section 5.2 will be deducted pro rata from the subaccounts
from which Variable Account A value is being transferred. The contingent
deferred sales charge will be deducted from Variable Account A subaccounts in
the same proportion as the withdrawal from each subaccount is to the total
withdrawal. Other applicable charges will be deducted from each subaccount of
the Variable Accounts in the ratio of your interest in each to your Contract
Value.
5. TRANSFERS
5.1 TRANSFERS FROM VARIABLE ACCOUNT A TO VARIABLE ACCOUNT B: Once each
Contract year upon notice to us you may transfer from Variable Account A to
Variable Account B all or part of your gain in Variable Account A plus Premiums
allocated to Variable
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Account A that are not subject to a contingent deferred sales charge. The
minimum amount which may be transferred is $300. No other transfers may be made
from Variable Account A to Variable Account B.
Unless you notify us otherwise, transfers made under this Section 5.1 will be
deducted from each subaccount of Variable Account A in the ratio of your
interest in each subaccount to the total value of your interest in Variable
Account A.
The gain in Variable Account A is the excess, if any, of (ii) over (i), where
(i) is the sum of all your Premiums paid into Variable Account A, less any prior
withdrawals or transfers from Variable Account A of these Premiums, and (ii) is
your Contract's Variable Account A value at the time we receive notice of the
transfer.
5.2 TRANSFERS AMONG SUBACCOUNTS OF VARIABLE ACCOUNT A: Six times per
Contract year you may transfer all or part of your Variable Account A value
among the Variable Account A subaccounts without a charge. For additional
transfers, we will charge $25 for each transfer. The minimum amount which may
be transferred from any subaccount in any transaction is $300 or your entire
interest, if less.
5.3 DOLLAR COST AVERAGING: You may transfer all or part of your interest
in the money market subaccount in Variable Account A to one or more of the other
Variable Account A subaccounts, pursuant to a Dollar Cost Averaging Plan. To
participate in such a Plan, you must transfer a minimum of $1000 per month for
12 to 36 months. When participation begins your Contract's interest in the
money market subaccount in Variable Account A must be at least equal to the
amount you wish to transfer each month times the number of months elected.
Allocations to a subaccount must be in 10% increments of each amount
transferred. Transfers will take place each month on the same date of each
month as the date on which your Contract was issued. For example, if your
Contract was issued on the 15th day of the month, transfers will take place on
the 15th day of each month for which transfers are to be made. There is no
charge for Dollar Cost Averaging transfers. Dollar Cost Averaging transfers are
in addition to those permitted in Section 5.2.
5.4 TRANSFERS FROM VARIABLE ACCOUNT B TO VARIABLE ACCOUNT A: Transfers
from Variable Account B to Variable Account A are not permitted.
6. WITHDRAWALS FROM CONTRACT
6.1 WITHDRAWALS FROM VARIABLE ACCOUNTS: Up to six times in a Contract
year, you may withdraw all or part of your Contract Value. Notice must be
received by us prior to the Annuity Date.
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For full withdrawal, this Contract must be surrendered to our administrative
office. For partial withdrawals, the withdrawal must be at least $300, and the
remaining Contract Value must be at least $2,000.
6.2 SPECIAL WITHDRAWAL FROM VARIABLE ACCOUNT A: The first withdrawal from
Variable Account A in any Contract year will be a withdrawal of all or part of
the gain in Variable Account A, as defined in Section 5.1, before withdrawal of
premium as described in Section 4.4. The remaining Contract Value must be at
least $2,000. This withdrawal shall count as one of the six permitted by
Section 6.1.
6.3 AUTOMATIC WITHDRAWAL PROGRAM: If you are age 59 1/2 or more, you may
have automatic withdrawals of a specified dollar amount made monthly, quarterly,
semi-annually, or annually from your interest in Variable Account B. Such
withdrawals must be deposited directly into a Xxxxxxx Lynch, Xxxxxx, Xxxxxx &
Xxxxx Inc. brokerage account specified by you and acceptable to the Company.
You may change the specified dollar amount or stop automatic withdrawals at any
time upon notice to us. Once automatic withdrawals are stopped, you may not
begin them again until the next Contract year. Each automatic withdrawal must
be at least $300, and the remaining Contract Value must be at least $2,000.
Automatic withdrawals are in addition to other withdrawals permitted from the
Contract.
6.4 PAYMENT OF WITHDRAWALS: Unless you notify us otherwise, partial
withdrawals will be deducted from each subaccount of the applicable Variable
Account from which you are making a withdrawal in the ratio of your interest in
each subaccount to the total value of that Variable Account. Withdrawals, other
than automatic withdrawals, will be based on values for the valuation period in
which the notice (and Contract if required) is received at our administrative
office. Automatic withdrawals will be based on values for the valuation period
of the date of each withdrawal.
7. PAYMENT AT DEATH
7.1 DEATH OF OWNER
(Including an Annuitant Who is Also an Owner)
7.1.1 DEATH PRIOR TO ANNUITY DATE: On the death of an Owner prior to the
Annuity Date, we will pay to the beneficiary the death benefit representing the
entire interest in the Contract, unless Section 7.1.3 is chosen. The death
benefit is determined as of the date we receive due proof of death at our
administrative office. It is the greater of:
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(a) The sum of (i) the excess, if any, of (a) your premiums paid into
Variable Account A with interest on them from the date received at an
interest rate compounded daily to yield 5% annually, over (b)
transfers to Variable Account B, and withdrawals from Variable Account
A with an interest rate on them to yield 5 % annually when compounded
daily from the date of transfer or withdrawal; plus, (ii) the value of
your interest in Variable Account B; or,
(b) The Contract Value.
Payment will be made in a lump sum unless Section 7.1.2 or Section 7.1.3 is
chosen. For purposes of the calculation in "(a)," interest shall accrue during
the first 20 Contract years only. No interest shall accrue thereafter.
7.1.2 CONTRACT CONTINUATION OPTION: If the surviving spouse of the
deceased Owner is the beneficiary, such spouse may choose to continue this
Contract in force on the same terms as before such Owner's death, and the spouse
shall thereafter become the "new" Owner and the beneficiary until a new
beneficiary is named.
7.1.3 ANNUITY OPTION: If the beneficiary is the surviving spouse of the
deceased Owner, he or she may choose to receive payments under any of the
annuity options of this Contract. For any other beneficiary, only those options
are available that provide for full payment of such Owner's interest in the
Contract:
(a) Within five years of the date of such Owner's death;
(b) Over the lifetime of such beneficiary of this Contract; or
(c) Over a period that does not exceed the life expectancy, as
defined by Internal Revenue Service regulations, of such
beneficiary of this Contract.
Subparagraphs (b) and (c) apply only to individuals, and such payments must
start within one year of the date of such Owner's death. For IRAs, any annuity
option chosen must meet the requirements of the Internal Revenue Code.
7.1.4 DEATH AFTER ANNUITY DATE: See Section 9.
7.2 DEATH OF ANNUITANT WHO IS NOT AN OWNER
7.2.1 If the Annuitant dies prior to the Annuity Date and the Annuitant is
not the Owner, the Owner may designate a new
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Annuitant. If one is not designated, the Owner will be the Annuitant provided
the Owner is a natural person. If the owner is a non-natural person, the death
of the Annuitant shall be treated as the death of the owner.
8. ANNUITY PROVISIONS
8.1 ANNUITY DATE: The Annuity Date may not be later than the Annuitant's
85th birthday. If you have not chosen an Annuity Date, it will be the date of
the Annuitant's 85th birthday. For an IRA, if you have not chosen an Annuity
Date, it will be the date the Annuitant reaches age 70 1/2. You may change the
Annuity Date up to 30 days prior to the Annuity Date.
8.2 AMOUNT OF ANNUITY PAYMENTS: Charges made by us for premium taxes will
be deducted from your Contract Value at the Annuity Date. The remaining value
will be transferred to our General Account and applied to the annuity option
chosen at our then current annuity purchase rates, which will be furnished on
request. The annuity purchase rates will assume interest of not less than 4%.
They will not be less favorable than those shown in the annuity tables in this
Contract. The tables show the minimum guaranteed amount of each monthly payment
for each $1,000 so applied, according to the sex and age at the Annuity Date of
the Annuitant. The tables are based on the 1983 Table "a" for Individual
Annuity Valuation with interest at 4%.
8.3 ANNUITY OPTIONS: If you have not chosen an annuity option described
in Section 9, Option 4 will apply with a 10-year guarantee period. You may
change options only up to 30 days prior to the Annuity Date. An option not set
forth in the Contract may be chosen if acceptable to us.
8.4 MINIMUM ANNUITY, PAYMENT: If the Contract Value to be applied at the
Annuity Date is less than $5,000, we may pay such amount in a lump sum. If any
payment would be less than $50, we may change the frequency so payments are at
least $50 each.
9. ANNUITY OPTIONS
9.1 OPTION 1-PAYMENTS OF A FIXED AMOUNT: Equal payments in the amount
chosen will be made until the amount of your Contract Value transferred to our
General Account adjusted for interest credited of at least 4% is exhausted. The
term over which such payments are made must be at least five years.
9.2 OPTION 2--PAYMENTS FOR A FIXED PERIOD: Payments will be made for the
period chosen. The period must be at least 5 years.
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9.3 OPTION 3--LIFE ANNUITY: Payments will be made for the life of the
Annuitant. Payments will cease with the last payment due prior to the
Annuitant's death.
9.4 OPTION 4--LIFE ANNUITY WITH PAYMENTS GUARANTEED FOR 10 or 20 YEARS:
Payments will be made for the guaranteed period chosen (10 or 20 years) and as
long thereafter as the Annuitant lives.
9.5 OPTION 5--LIFE ANNUITY WITH GUARANTEED RETURN OF CONTRACT VALUE:
Payments will be made until the sum of the annuity payments equals the amount of
your Contract Value transferred to our General Account at the Annuity Date, and
as long thereafter as the Annuitant lives.
9.6 OPTION 6--JOINT AND SURVIVOR LIFE ANNUITY: Payments will be made
during the lifetimes of the Annuitant and a designated second person. The
amount of such payments will not change by reason of the death of the first
joint Annuitant to die.
9.7 OPTION 7--IRA: This option is available only for IRAs. Annuity
payments may be based on (a) the life expectancy of the Annuitant, (b) the joint
life expectancy of the Annuitant and his or her spouse, or (c) the life
expectancy of the surviving spouse if the Annuitant dies before the annuity
date. Payments will be made annually. Each annual payment will be equal to the
remaining value on that January 1, divided by the applicable current life
expectancy, as defined by Internal Revenue Service regulations. Each subsequent
payment will be made on the anniversary of the Annuity Date. Interest will be
credited at our current rate for this option. The rate will not be less than
4%. On the death of the measuring life or lives prior to full distribution of
the remaining value, the remaining value will be paid to the beneficiary in a
lump sum.
9.8 DEATH OF ANNUITANT: On the death of the Annuitant while guaranteed
amounts remain unpaid under Option 1,2,4, or 5, the Owner may choose either:
(a) To have payments continue for the amount or period guaranteed; or
(b) To receive the present value of the remaining guaranteed payments
in a lump sum.
If an Owner dies while guaranteed amounts remain unpaid, the present value may
be paid in a lump sum to the beneficiary, if the beneficiary so elects.
Present values will be computed at the interest rate that was used to compute
the amount of the initial annuity payment.
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9.9 PAYMENT: Except for Option 7, payment will be made on the Annuity
Date, but prior to the Annuity Date you may choose a less frequent payment
interval instead. The amount of each payment on an annual, semiannual, or
quarterly basis will be not less than the monthly payment computed from the
annuity tables in this Contract multiplied by the appropriate factor:
Annual Semiannual Quarterly
------ ---------- ---------
11.787 5.951 2.990
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10. ANNUITY OPTION TABLES
MINIMUM GUARANTEED MONTHLY ANNUITY PAYMENT FOR EACH $1,000 APPLIED UNDER OPTION
OPTION 2 (Payments for a Fixed Period)
Years Each Years Each Years Each Years Each
Payable Payment Payable Payment Payable Payment Payable Payment
--------- ------- ------- ------- ------- ------- ------- -------
5 18.32 9 10.97 13 8.17 17 6.71
6 15.56 10 10.06 14 7.72 18 6.44
7 13.59 11 9.31 15 7.34 19 6.21
8 12.12 12 8.69 16 7.00 20 6.00
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OPTION 3 (Life Annuity), OPTION 4 (Life Annuity with 10 or 20 Years Guaranteed)
and OPTION 5 (Return of Contract Value Guaranteed)
*Adjusted Life 10 Years 20 Years Return of *Adjusted Life
Male Age Annuity Guaranteed Guaranteed Net Value Female Age Annuity
----------- ------- ---------- ---------- --------- ---------- -------
56 5.29 5.20 4.94 5.05 56 4.89
57 5.39 5.29 5.00 5.13 57 4.92
58 5.49 5.38 5.06 5.21 58 5.00
59 5.61 5.48 5.12 5.30 59 5.09
60 5.73 5.59 5.18 5.40 60 5.19
61 5.88 5.70 5.24 5.50 61 5.29
62 6.00 5.82 5.31 5.60 62 5.40
63 6.16 5.85 5.37 5.72 63 5.52
64 6.32 6.08 5.43 5.83 64 5.65
65 6.49 6.21 5.48 5.96 65 5.78
66 6.68 6.35 5.54 6.09 66 5.82
67 6.88 6.50 5.59 6.23 67 6.08
68 7.09 6.65 5.64 6.38 68 6.24
69 7.31 6.81 5.69 6.53 69 6.42
70 7.56 6.97 5.73 6.69 70 6.61
71 7.82 7.14 5.77 6.86 71 6.81
72 8.09 7.31 5.81 7.04 72 7.04
73 8.39 7.48 5.84 7.23 73 7.28
74 8.71 7.65 5.87 7.43 74 7.54
75 9.05 7.83 5.89 7.64 75 7.93
76 9.41 8.00 5.91 7.86 76 8.14
77 9.81 9.17 5.93 8.10 77 8.47
78 10.33 8.34 5.95 8.34 78 8.83
79 10.68 8.50 5.96 8.60 79 9.23
80 11.16 8.66 5.97 8.87 80 9.65
81 11.68 8.81 5.98 9.16 81 10.12
82 12.23 8.95 5.99 9.45 82 10.62
83 12.81 9.09 5.99 9.76 83 11.16
84 13.44 9.21 5.99 10.09 84 11.76
85 14.09 9.32 6.00 10.44 85 12.39
10 Years 20 Years Return of
Guaranteed Guaranteed Net Value
---------- ---------- ---------
4.80 4.67 4.71
4.87 4.73 4.77
4.95 4.79 4.85
5.03 4.85 4.92
5.12 4.91 5.00
5.22 4.98 5.09
5.32 5.05 5.18
5.42 5.11 5.27
5.53 5.18 5.37
5.65 5.25 5.48
5.77 5.32 5.59
5.90 5.39 5.71
6.04 5.45 5.83
6.19 5.51 5.97
6.34 5.58 6.11
6.50 5.63 6.26
6.67 5.69 6.42
6.84 5.73 6.58
7.02 5.76 6.77
7.21 5.82 6.97
7.40 5.85 7.17
7.60 5.88 7.39
7.80 5.91 7.62
7.99 5.93 7.86
8.19 5.94 8.13
8.38 5.96 8.40
8.57 5.97 8.69
8.74 5.98 9.01
8.91 5.99 9.34
9.06 5.99 9.68
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OPTION 6 (Joint and Survivor Life Annuity)
*Adjusted *Adjusted Male Age *Adjusted
Female Female
Age 50 55 60 65 70 75 80 85 Age
------- ---- ---- ---- ---- ---- ---- ---- ---- ---
50 4.15 4.22 4.28 4.33 4.37 4.40 4.41 4.42 50
55 4.27 4.39 4.49 4.57 4.64 4.68 4.71 4.73 55
60 4.39 4.56 4.71 4.85 4.96 5.04 5.10 5.14 60
65 4.50 4.72 4.94 5.16 5.35 5.50 5.61 5.68 65
70 4.59 4.86 5.16 5.48 5.78 6.05 6.25 6.39 70
75 4.66 4.97 5.34 5.78 6.24 6.68 7.06 7.34 75
80 4.71 5.05 5.49 6.03 6.66 7.33 7.98 8.53 80
85 4.74 5.11 5.59 6.21 7.00 7.91 8.90 9.86 85
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Information for ages not shown will be furnished on request.
"Adjusted Age" means attained age at last birthday adjusted as follows:
Annuity Date Adjusted Age
------------ ------------
Before 2000 Actual Age
2000-2009 Subtract 1 year from actual age
2010-2019 Subtract 2 years from actual age
2020-2029 Subtract 3 years from actual age
2030 and after Subtract 4 years from actual age
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