EX (4)(a)
(5/01)
Glenbrook Life
and Annuity Company
A Stock Company
Headquarters: 0000 Xxxxxxx Xxxx, Xxxxxxxxxx, Xxxxxxxx 00000-7154
Flexible Premium Deferred Variable Annuity Contract
This Contract is issued to the Owner in consideration of the initial purchase
payment. Glenbrook Life and Annuity Company will pay the benefits of this
Contract, subject to its terms and conditions.
Throughout this Contract, "you" and "your" refer to the Contract owner(s). "We",
"us "and" our" refer to Glenbrook Life and Annuity Company.
Contract Summary
This flexible premium deferred variable annuity provides a cash withdrawal
benefit, a death benefit, and a settlement value during the Accumulation Phase
and periodic income payments beginning on the Payout Start Date during the
Payout Phase.
The dollar amount of income payments or other values provided by this Contract,
when based on the investment experience of the Variable Account, varies to
reflect the performance of the Variable Account. For amounts in the Guaranteed
Maturity Fixed Account, the withdrawal benefit, the settlement value, transfers
to other sub-accounts and any periodic income payments may be subject to a
Market Value Adjustment which may result in an upward or downward adjustment of
the amount distributed. The Death Benefit may be subject to an upward Market
Value Adjustment of the amount distributed.
This Contract does not pay dividends.
The tax status of this Contract as it applies to the owner should be reviewed
each year.
PLEASE READ YOUR CONTRACT CAREFULLY.
This is a legal Contract between the Contract owner(s) and Glenbrook Life and
Annuity Company.
Return Privilege
Upon written request we will provide you with factual information regarding the
benefits and provisions contained in this Contract. If you are not satisfied
with this Contract for any reason, you may return it to us or our agent within
20 days after you receive it. We will refund any purchase payments allocated to
the Variable Account, adjusted to reflect investment gain or loss from the date
of allocation through the date of cancellation, plus any purchase payments
allocated to the Fixed Account. (Where required by state law, we will refund any
purchase payments.) If this Contract is qualified under Section 408 of the
Internal Revenue Code, we will refund the greater of any purchase payments or
the Contract Value.
If you have any questions about your Glenbrook Life variable annuity, please
contact Glenbrook Life at (000) 000-0000.
[GRAPHIC OMITTED][GRAPHIC OMITTED]
Secretary Chairman and Chief Executive Officer
Flexible Premium Deferred Variable Annuity
Page 1
GLA141
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TABLE OF CONTENTS
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THE PERSONS INVOLVED............................................4
ACCUMULATION PHASE..............................................5
PAYOUT PHASE...................................................13
INCOME PAYMENT TABLES..........................................15
GENERAL PROVISIONS.............................................17
Page 2
GLA141
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ANNUITY DATA
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CONTRACT NUMBER:...............................................444444444
ISSUE DATE:................................................June 30, 2000
INITIAL PURCHASE PAYMENT:.....................................$10,000.00
IRA
INITIAL ALLOCATION OF PURCHASE PAYMENT:
ALLOCATED
AMOUNT (%)
VARIABLE ACCOUNT
Fund Manager Sub-Account a 10%
Fund Manager Sub-Account b 10%
Fund Manager Sub-Account c 10%
Fund Manager Sub-Account d 10%
Fund Manager Sub-Account e 10%
Fund Manager Sub-Account f 10%
CURRENT RATE
ALLOCATED ANNUALIZED GUARANTEED
AMOUNT (%) INTEREST RATE THROUGH
---------- ------------- -------
GUARANTEED MATURITY FIXED ACCOUNT
1 Year Guarantee Period 10% 4.25% 06/30/2001
3 Year Guarantee Period 5% 4.75% 06/30/2003
5 Year Guarantee Period 5% 5.25% 06/30/2005
7 Year Guarantee Period 5% 5.50% 06/30/2007
10 Year Guarantee Period 5% 5.75% 06/30/2010
SHORT TERM DOLLAR COST AVERAGING FIXED ACCOUNT
5% 4.50% 12/30/2000
EXTENDED SHORT TERM DOLLAR COST AVERAGING FIXED ACCOUNT
5% 5.00% 06/30/2001
MINIMUM GUARANTEED RATE
Dollar Cost Averaging Fixed Accounts:.........................................................................3.00%
PAYOUT START DATE:.............................................................................................July 1, 2055
(The date annuity payments are anticipated to begin)
OWNER:.............................................................................................................Xxxx Xxx
ANNUITANT:.........................................................................................................Xxxx Xxx
AGE AT ISSUE:....................................................................................................35
SEX:...........................................................................................................Male
PRIMARY BENEFICIARY RELATIONSHIP TO OWNER PERCENTAGE
------------------- --------------------- ----------
Xxxx Xxx Wife 100%
CONTINGENT BENEFICIARY RELATIONSHIP TO OWNER PERCENTAGE
---------------------- --------------------- ----------
Xxxx Xxx Daughter 100%
DPG141
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THE PERSONS INVOLVED
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Owner The person named at the time of application is the Owner of this Contract
unless subsequently changed. As Owner, you will receive any periodic income
payments, unless you have directed us to pay them to someone else. The Contract
cannot be jointly owned by both a non-living person and a living person.
You may exercise all rights stated in this Contract, subject to the rights of
any irrevocable Beneficiary.
You may change the Owner at any time by written notice in a form satisfactory to
us. If the Owner is a living person, you may change the Annuitant prior to the
Payout Start Date by written notice in a form satisfactory to us. Once we accept
a change, it takes effect as of the date you signed the request. Each change is
subject to any payment we make or other action we take before we accept it.
You may not assign an interest in this Contract as collateral or security for a
loan. However, you may assign periodic income payments under this Contract prior
to the Payout Start Date. We are bound by an assignment only if it is signed by
the assignor and filed with us. We are not responsible for the validity of an
assignment.
If the sole surviving Owner dies prior to the Payout Start Date, the Beneficiary
becomes the new Owner. If the sole surviving Owner dies after the Payout Start
Date, the Beneficiary becomes the new Owner as described in the Beneficiary
provision and will receive any subsequent guaranteed income payments.
If more than one person is designated as Owner:
o Owner as used in this Contract refers to all people named as Owners, unless
otherwise indicated;
o any request to exercise ownership rights must be signed by all Owners; and
o on the death of any person who is an Owner, the surviving person(s) named
as Owner will continue as Owner.
Annuitant The Annuitant is the person named on the Annuity Data Page, but may be
changed by the Owner, as described above. The Annuitant must be a living person.
If the Owner of the Contract is a co-grantor trust, then the Annuitant must be
the oldest Grantor. If the Annuitant dies prior to the Payout Start Date, the
new Annuitant will be:
o the youngest Owner; otherwise,
o the youngest Beneficiary.
Beneficiary The Beneficiary is the person(s) named on the Annuity Data Page
unless later changed by the Owner. The Primary Beneficiary is the
Beneficiary(ies) who is first entitled to receive benefits under the Contract
upon the death of the sole surviving Owner. The Contingent Beneficiary is the
Beneficiary(ies) who is entitled to receive benefits under the Contract after
the death of all Primary Beneficiary(ies).
You may change or add Beneficiaries at any time by written notice in a form
satisfactory to us before income payments begin, unless you have designated an
irrevocable Beneficiary. Once we accept a change, it takes effect as of the date
you signed the request. Each beneficiary change is subject to any payment we
make or other action we take before we accept it.
o Benefits Payable to Beneficiaries
o If the sole surviving Owner dies after the Payout Start Date, the
Beneficiary(ies) will receive any guaranteed income payments scheduled to
continue.
o If the sole surviving Owner dies before the Payout Start Date, the
Beneficiary(ies) may elect to receive a Death Benefit or become the new
Owner.
GLA141 Page 4 (5/01)
o Order of Payment of Benefits
As described above under Benefits Payable to Beneficiaries,
Beneficiary(ies) will receive any guaranteed income payments scheduled to
continue, or the right to elect to receive a Death Benefit or become the
new Owner, in the following order of classes:
o Primary Beneficiary
Upon the death of the sole surviving Owner after the Payout Start
Date, Primary Beneficiary(ies), if living, will receive the guaranteed
income payments scheduled to continue. Upon the death of the sole
surviving Owner before the Payout Start Date, the Primary
Beneficiary(ies), if living, will have the right to elect to receive a
Death Benefit or become the new Owner with rights as defined in the
Death of Owner provision.
o Contingent Beneficiary
Upon the death of the sole surviving Owner and all Primary
Beneficiary(ies) after the Payout Start Date, Contingent
Beneficiary(ies), if living, will receive the guaranteed income
payments scheduled to continue. Upon the death of the sole surviving
Owner and all Primary Beneficiaries before the Payout Start Date,
Contingent Beneficiaries, if living, will have the right to elect to
receive a Death Benefit or become the new Owner with rights as defined
in the Death of Owner provision.
If none of the named Beneficiaries are living when the sole surviving Owner
dies, or if a Beneficiary has not been named, the new Beneficiary will be:
o your spouse, or if he or she is no longer living,
o your surviving children equally, or if you have no surviving children,
o your estate.
Unless you have provided directions to the contrary, the Beneficiaries will take
equal shares. If there is more than one Beneficiary in a class and one of the
Beneficiaries predeceases the Owner, the remaining Beneficiaries in that class
will divide the deceased Beneficiary's share.
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ACCUMULATION PHASE
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Accumulation Phase Defined The "Accumulation Phase" is the first of two phases
during your Contract. The Accumulation Phase begins on the issue date stated on
the Annuity Data Page. This phase will continue until the Payout Start Date
unless the Contract is terminated before that date.
Contract Year The one year period beginning on the issue date and on each
anniversary of the issue date.
Purchase Payments The initial payment is shown on the Annuity Data Page. You may
make subsequent purchase payments during the Accumulation Phase. We may limit
the amount of each purchase payment that we will accept to a minimum of $50 and
a maximum of $1,000,000. We may limit your ability to make subsequent purchase
payments in order to comply with the laws of the state where this Contract is
delivered. We will invest the purchase payments in the Investment Alternatives
you select. You may allocate any portion of your purchase payment in whole
percents from 0% to 100% or in exact dollar amounts to any of the Investment
Alternatives. The total allocation must equal 100%.
GLA141 Page 5 (5/01)
The allocation of the initial purchase payment is shown on the Annuity Data
Page. Allocation of each subsequent purchase payment will be the same as the
allocation for the most recent purchase payment unless you change the
allocation. You may change the allocation of subsequent purchase payments at any
time, without charge, simply by giving us written notice. Any change will be
effective at the time we receive the notice.
Initial Purchase Payment Allocation If the Return Privilege provision requires
us to refund purchase payments, then during the Return Privilege period, we
reserve the right to invest any purchase payments you allocated to the Variable
Account to a Money Market Variable Sub-Account available under this Contract. We
will notify you if we do so. At the end of the Return Privilege period, the
amount in the Money Market Variable Sub-Account will be allocated to the
Variable Account as originally designated by you. This allocation will not be
considered a transfer.
Investment Alternatives Investment Alternatives are the Sub-Accounts of the
Variable Account, the Short Term Dollar Cost Averaging Fixed Account, the
Extended Short Term Dollar Cost Averaging Fixed Account, and the Guarantee
Periods of the Guaranteed Maturity Fixed Account shown on the Application. We
may offer additional Sub-Accounts of the Variable Account at our discretion. We
reserve the right to limit the availability of the Investment Alternatives.
Variable Account The "Variable Account" for this Contract is the Glenbrook Life
Multi-Manager Variable Account. This account is a separate investment account to
which we allocate assets contributed under this and certain other contracts. The
income, gains and losses, realized or unrealized, from assets allocated to the
Variable Account are credited to or charged against the account without regard
to our other income, gains or losses.
Variable Sub-Accounts The Variable Account is divided into Sub-Accounts. Each
Sub-Account invests solely in the shares of the mutual fund underlying that
Sub-Account.
Fixed Account Options The Fixed Account Options are the Short Term Dollar Cost
Averaging Fixed Account, the Extended Short Term Dollar Cost Averaging Fixed
Account, and the Guarantee Periods of the Guaranteed Maturity Fixed Account.
Short Term Dollar Cost Averaging Fixed Account Money in the Short Term Dollar
Cost Averaging Fixed Account will earn interest at the annual rate in effect at
the time of allocation to the Short Term Dollar Cost Averaging Fixed Account.
Each purchase payment and associated interest in the Short Term Dollar Cost
Averaging Fixed Account must be transferred to Sub-Accounts of the Variable
Account according to your current allocation instructions in equal monthly
installments within the selected transfer period. You may select a transfer
period of no less than 3 months or more than 6 months. If you discontinue the
Dollar Cost Averaging program before the end of the transfer period, the
remaining balance in the Short Term Dollar Cost Averaging Fixed Account will be
transferred to the Money Market Variable Sub-Account unless you request a
different Investment Alternative. At the end of the transfer period, any
residual amount will be automatically transferred to the Money Market Variable
Sub-Account. No amount may be transferred into the Short Term Dollar Cost
Averaging Fixed Account.
For each purchase payment, the first transfer from the Short Term Dollar Cost
Averaging Fixed Account must occur within one month of the date of payment. If
we do not receive an allocation instruction from you within one month of the
date of payment, the payment plus associated interest will be transferred to the
Money Market Variable Sub-Account in equal monthly installments within the
selected transfer period until we have received a different allocation
instruction.
GLA141 Page 6 (5/01)
Extended Short Term Dollar Cost Averaging Fixed Account Money in the Extended
Short Term Dollar Cost Averaging Fixed Account will earn interest at the annual
rate in effect at the time of allocation to the Extended Short Term Dollar Cost
Averaging Fixed Account. Each purchase payment and associated interest in the
Extended Short Term Dollar Cost Averaging Fixed Account must be transferred to
Sub-Accounts of the Variable Account according to your current allocation
instructions in equal monthly installments within the selected transfer period.
You may select a transfer period of no less than 7 months or more than 12
months. If you discontinue the Dollar Cost Averaging program before the end of
the transfer period, the remaining balance in the Extended Short Term Dollar
Cost Averaging Fixed Account will be transferred to the Money Market Variable
Sub-Account unless you request a different Investment Alternative. At the end of
the transfer period, any residual amount will be automatically transferred to
the Money Market Variable Sub-Account. No amount may be transferred into the
Extended Short Term Dollar Cost Averaging Fixed Account.
For each purchase payment, the first transfer from the Extended Short Term
Dollar Cost Averaging Fixed Account must occur within one month of the date of
payment. If we do not receive an allocation instruction from you within one
month of the date of payment, the payment plus associated interest will be
transferred to the Money Market Variable Sub-Account in equal monthly
installments within the selected transfer period until we have received a
different allocation instruction.
Guaranteed Maturity Fixed Account The Guaranteed Maturity Fixed Account is
divided into Guarantee Periods. A Guarantee Period is identified by the date the
Guarantee Period begins and the duration of the Guarantee Period. You create a
Guarantee Period when:
o you make a purchase payment; or
o you select a new Guarantee Period after the prior Guarantee Period expires;
or
o you transfer an amount from an existing Sub-Account of the Variable
Account, from another Guarantee Period of the Guaranteed Maturity Fixed
Account, or from any Fixed Account Options.
You must select the Guarantee Period for all purchase payments and transfers
allocated to the Guaranteed Maturity Fixed Account. If you do not select a
Guarantee Period for a purchase payment or transfer, we will assign the same
period(s) as used for the most recent purchase payment. Guarantee Periods are
offered at our discretion and may range from one to ten years. We may change the
Guarantee Periods available for future purchase payments or transfers allocated
to the Guaranteed Maturity Fixed Account.
We will mail you a notice prior to the expiration of each Guarantee Period
outlining the options available at the end of the Guarantee Period. During the
30 day period after a Guarantee Period expires you may:
o take no action and we will automatically apply the Guarantee Period value
to a Guarantee Period of the same duration as the Guarantee Period that
just expired to be established on the day the previous Guarantee Period
expired; or
o notify us to apply the Guarantee Period value to a new Guarantee Period(s)
to be established on the day the previous Guarantee Period expired; or
o notify us to apply the Guarantee Period value to any Sub-Account of the
Variable Account on the day we receive the notification; or
GLA141 Page 7 (5/01)
o receive a portion of the Guarantee Period value or the entire Guarantee
Period value through a partial or full withdrawal that is not subject to a
Market Value Adjustment; however, taxes may apply. We will pay interest
from the date the Guarantee Period expires until the date of the
withdrawal.
Crediting Interest We credit interest daily to money allocated to the Fixed
Account Options at rates which compound over one year at the current annualized
interest rates when the money was allocated. We will credit interest to the
initial purchase payment from the issue date. We will credit interest to
subsequent purchase payments from the date we receive them. We will credit
interest to transfers from the date the transfer is made. The annual interest
rate for the Short Term Dollar Cost Averaging Fixed Account and the Extended
Short Term Dollar Cost Averaging Fixed Account will never be less than 3%.
Transfers Prior to the Payout Start Date, you may transfer amounts between
Investment Alternatives. You may make 12 transfers per Contract Year without
charge. Each transfer after the 12th transfer in any Contract Year may be
assessed a $10 transfer fee. Transfers are subject to the following
restrictions:
o No amount may be transferred into the Short Term Dollar Cost Averaging
Fixed Account or the Extended Short Term Dollar Cost Averaging Fixed
Account.
At the end of the transfer period, any remaining portion of the purchase
payment and interest in the Short Term Dollar Cost Averaging Fixed Account
or the Extended Short Term Dollar Cost Averaging Fixed Account will be
allocated to other Investment Alternatives as set forth in the current
Short Term Dollar Cost Averaging Fixed Account or the Extended Short Term
Dollar Cost Averaging Fixed Account allocations.
o Any transfer from a Guarantee Period of the Guaranteed Maturity Fixed
Account will be subject to a Market Value Adjustment unless the transfer
occurs during the 30 day period after the Guarantee Period expires.
o We reserve the right to limit the number of transfers among the Variable
Sub-Accounts in any Contract Year or to refuse any transfer request for an
Owner or certain Owners if, in our sole discretion, we believe that:
o excessive trading by such Owner or Owners or a specific transfer
request or group of transfer requests may have a detrimental effect on
Unit Values or the share prices of the underlying mutual funds or would
be to the disadvantage of other Contract Owners; or
o We are informed by one or more of the underlying mutual funds that the
purchase or redemption of shares is to be restricted because of
excessive trading or a specific transfer or group of transfers is
deemed to have a detrimental effect on share prices of affected
underlying mutual funds.
Such restrictions may be applied in any manner which is reasonably designed
to prevent any use of the transfer right which is considered by us to be to
the disadvantage of the other Contract Owners.
We reserve the right to waive the transfer fees and restrictions contained in
this Contract.
Contract Value Your "Contract Value" is equal to the sum of:
o the number of Accumulation Units you hold in each Sub-Account of the
Variable Account multiplied by the Accumulation Unit Value for that
Sub-Account on the most recent Valuation Date; plus
o the total value you have in the Short Term Dollar Cost Averaging Fixed
Account and the Extended Short Term Dollar Cost Averaging Fixed Account;
plus
o the sum of Guarantee Period values in the Guaranteed Maturity Fixed
Account.
GLA141 Page 8 (5/01)
Accumulation Units and Accumulation Unit Value Amounts which you allocate to a
Sub-Account of the Variable Account are used to purchase Accumulation Units in
that Sub-Account. The Accumulation Unit Value for each Sub-Account at the end of
any Valuation Period is calculated by multiplying the Accumulation Unit Value at
the end of the immediately preceding Valuation Period by the Sub-Account's Net
Investment Factor for the Valuation Period. The Accumulation Unit Values may go
up or down. Additions or transfers to a Sub-Account of the Variable Account will
increase the number of Accumulation Units for that Sub-Account. Withdrawals or
transfers from a Sub-Account of the Variable Account will decrease the number of
Accumulation Units for that Sub-Account.
Valuation Period and Valuation Date A "Valuation Period" is the time interval
between the closing of the New York Stock Exchange on consecutive Valuation
Dates. A "Valuation Date" is any date the New York Stock Exchange is open for
trading.
Net Investment Factor For each Variable Sub-Account, the "Net Investment Factor"
for a Valuation Period is equal to:
o The sum of:
o the net asset value per share of the mutual fund underlying the
Sub-Account determined at the end of the current Valuation Period,
plus
o the per share amount of any dividend or capital gain distributions made
by the mutual fund underlying the subaccount during the current
Valuation Period.
o Divided by the net asset value per share of the mutual fund underlying the
Sub-Account determined as of the end of the immediately preceding Valuation
Period.
o The result is reduced by the Mortality and Expense Risk Charge and the
Administrative Expense Charge corresponding to the portion of the 365 day
year (366 days for a leap year) that is in the current Valuation Period.
Charges The charges for this Contract include Administrative Expense Charges,
Mortality and Expense Risk Charges, Contract Maintenance Charges, transfer
charges, and applicable taxes. If withdrawals or transfers are made, death
benefits are paid, or amounts are applied to an income plan from a Guarantee
Period of the Guaranteed Maturity Fixed Account, the Contract may also be
subject to Market Value Adjustments.
Administrative Expense Charge The annualized Administrative Expense Charge will
never be greater than 0.10%. (See Net Investment Factor for a description of how
this charge is applied.)
Mortality and Expense Risk Charge The annualized Mortality and Expense Risk
Charge will never be greater than 1.45%. (See Net Investment Factor for a
description of how this charge is applied.)
Our actual mortality and expense experience will not adversely affect the dollar
amount of variable benefits or other contractual payments or values under this
Contract.
Contract Maintenance Charge Prior to the Payout Start Date, a Contract
Maintenance Charge will be deducted from your Contract Value on each contract
anniversary. The charge will be deducted on a pro-rata basis from each
Sub-Account of the Variable Account in the proportion that your value in each
bears to your total value in all Sub-Accounts of the Variable Account. A reduced
Contract Maintenance Charge proportional to the part of the Contract Year
elapsed will also be deducted if the Contract is terminated on any date other
than a contract anniversary. After the Payout Start Date the Contract
Maintenance Charge will be deducted in equal parts from each income payment. The
annualized charge will never be greater than $35 per Contract Year. The Contract
Maintenance Charge will be waived if, on the contract anniversary or upon full
surrender the total Contract Value is $50,000 or more, or if all money is
allocated to the Fixed Account(s) on the Contract anniversary.
GLA141 Page 9 (5/01)
Taxes Any premium tax relating to this Contract may be deducted from purchase
payments or the Contract Value when the tax is incurred or at a later time.
Withdrawal You have the right, subject to the restrictions and charges described
in this Contract, to withdraw part or all of your Contract Value at any time
during the Accumulation Phase. A withdrawal must be at least $50. If any
withdrawal reduces the Contract Value to less than $2,000, we will treat the
request as a withdrawal of the entire Contract Value. If you withdraw the entire
Contract Value, the Contract will terminate.
You must specify the Investment Alternative(s) from which you wish to make a
withdrawal. When you make a withdrawal, your Contract Value will be reduced by a
withdrawal amount equal to the amount paid to you and any applicable Market
Value Adjustment, and taxes.
Any Market Value Adjustment will be waived on withdrawals taken to satisfy IRS
minimum distribution rules. This waiver is permitted only for withdrawals which
satisfy distributions resulting from this Contract.
Free Withdrawal Amount Each Contract Year the Free Withdrawal Amount is equal to
15% of the amount of purchase payments. Each Contract Year you may withdraw the
Free Withdrawal Amount without Market Value Adjustment. Each Contract Year
begins on the anniversary of the date the Contract was established. Any Free
Withdrawal Amount which is not withdrawn in a year may not be carried over to
increase the Free Withdrawal Amount in a subsequent year.
Market Value Adjustment Activities in a Guarantee Period of the Guaranteed
Maturity Fixed Account that may be subject to a Market Value Adjustment are
withdrawals in excess of the Free Withdrawal Amount, transfers, death benefits,
and amounts applied to an income plan. An activity will be subject to a Market
Value Adjustment unless:
o it occurs during the 30 day period after a Guarantee Period expires; or
o it is a transfer that is part of a Dollar Cost Averaging program.
A Market Value Adjustment is an increase or decrease in the amount reflecting
changes in the level of interest rates since the Guarantee Period was
established. As used in this provision, "Treasury Rate" means the U. S. Treasury
Note Constant Maturity yield as reported in Federal Reserve Bulletin Release
H.15. The Market Value Adjustment is based on the following:
I = the Treasury Rate for a maturity equal to the Guarantee Period
duration for the week preceding the establishment of the Guarantee
Period;
J = the Treasury Rate for a maturity equal to the Guarantee Period for
the week preceding the receipt of the withdrawal request, death
benefit request, transfer request, or Income Payment request;
N = the number of whole and partial years from the date we receive the
withdrawal, transfer, or Death Benefit request, or from the Payout
Start Date, to the end of the Guarantee Period;
An adjustment factor is determined from the following formula:
.9 x {I - (J + .0025)} x N
The amount subject to a Market Value Adjustment that is deducted from a
Guarantee Period of the Guaranteed Maturity Fixed Account is multiplied by the
adjustment factor to determine the amount of the Market Value Adjustment.
Any Market Value Adjustment will be waived on withdrawals taken to satisfy IRS
minimum distribution rules. This waiver is permitted only for withdrawals which
satisfy distributions resulting from this Contract.
GLA141 Page 10 (5/01)
Death of Owner If you die prior to the Payout Start Date, the new Owner will be
the surviving Owner. If there is no surviving Owner, the new Owner will be the
Beneficiary(ies) as described in the Beneficiary provision. The new Owner will
have the options described below.
1. If the sole new Owner is your spouse:
a. Your spouse may elect, within 180 days of the date of your death, to
receive the Death Benefit described below in a lump sum.
b. Your spouse may elect, within 180 days of the date of your death, to
receive an amount equal to the Death Benefit paid out under one of the
Income Plans described in the Payout Phase section. The Payout Start
Date must be within one year of your date of death. Income Payments
must be:
i. over the life of your spouse; or
ii. for a guaranteed number of payments from 5 to 30 years but not to
exceed the life expectancy of your spouse; or
iii. over the life of your spouse with a guaranteed number of payments
from 5 to 30 years but not to exceed the life expectancy of your
spouse.
c. If your spouse does not elect one of the options above, then your
spouse may continue the Contract in the Accumulation Phase as if the
death had not occurred. If the Contract is continued in the
Accumulation Phase, the following conditions apply:
o On the day the Contract is continued, the Contract Value will be
the Death Benefit as determined at the end of the Valuation
Period during which we received due proof of death.
o The surviving spouse may make a single withdrawal of any amount
within one year of the date of death without incurring a Market
Value Adjustment.
o Prior to the Payout Start Date, the Death Benefit of the
continued Contract will be the greater of:
o the sum of all purchase payments reduced by a withdrawal
adjustment, as defined in the Death Benefit provision; or
o the Contract Value on the date we determine the Death
Benefit; or
o the Contract Value on each Death Benefit Anniversary prior
to the date we determine the Death Benefit, increased by any
purchase payments made since that Death Benefit Anniversary
and reduced by a withdrawal adjustment, as defined in the
Death Benefit provision.
o Only one spousal continuation is allowed under this
Contract.
2. If the new Owner is not your spouse but is a Living Person, then this new
Owner has the following options:
a. The new Owner may elect, within 180 days of the date of your death, to
receive the death benefit described below in a lump sum.
b. The new Owner may elect, within 180 days of the date of your death, to
receive an amount equal to the Death Benefit paid out under one of the
Income Plans described in the Payout Phase section. The Payout Start
Date must be within one year of your date of death. Income Payments
must be:
i. over the life of the new Owner; or
ii. for a guaranteed number of payments from 5 to 30 years but not to
exceed the life expectancy of the new Owner; or
GLA141 Page 11 (5/01)
iii. Over the life of the new Owner with a guaranteed number of
payments from 5 to 30 years but not to exceed the life expectancy
of the new Owner.
c. The new Owner may elect to receive the Settlement Value payable in a
lump sum within 5 years of your date of death.
3. If the new Owner is a corporation or other non-living Person:
a. The non-living Owner may elect, within 180 days of your death, to
receive the Death Benefit in a lump sum.
b. The non-living Owner may elect to receive the Settlement Value payable
in a lump sum within 5 years of your date of death.
If any new Owner is a non-living Person, all new Owners will be considered to be
non-living Persons for the above purposes.
If the new Owner who is not your spouse does not make one of the above described
elections, the Settlement Value must be withdrawn by the new Owner on or before
the mandatory distribution date 5 years after your date of death. Under any of
these options, all ownership rights are available to the new Owner from the date
of your death to the date on which the Death Benefit or Settlement Value is
paid. We reserve the right to extend, on a non-discriminatory basis, the period
of time in which we will use the Death Benefit rather than the Settlement Value
to determine the payment amount. The death benefit will be at least as high as
the Settlement Value. This right applies only to the amount payable as death
benefit proceeds and in no way restricts when a claim may be filed.
Death of Annuitant If the Owner is a non-living individual and the Annuitant who
is not also the Owner dies prior to the Payout Start Date, the Owner must elect
an applicable option listed below.
1. If the Owner is a Living Person, then the Contract will continue with a new
Annuitant as described in the Annuitant provision above.
2. If the Owner is a non-living Person:
a. The non-living Owner may elect, within 180 days of the Annuitant's
date of death, to receive the Death Benefit in a lump sum; or
b. The non-living Owner may elect to receive the Settlement Value payable
in a lump sum within 5 years of the Annuitant's date of death.
If the non-living Owner does not make one of the above described elections, the
Settlement Value must be withdrawn by the non-living Owner on or before the
mandatory distribution date 5 years after the Annuitant's death.
Under any of these options, all ownership rights are available to the non-Living
Owner from the date of the Annuitant's death to the date on which the Death
Benefit or Settlement Value is paid. We reserve the right to extend, on a
non-discriminatory basis, the period of time in which we will use the Death
Benefit rather than the Settlement Value to determine the payment amount. The
Death Benefit will be at least as high as the Settlement Value. This right
applies only to the amount payable as Death Benefit proceeds and in no way
restricts when a claim may be filed.
Death Benefit Prior to the Payout Start Date, the Death Benefit is equal to the
greatest of:
o the Contract Value as of the date we determine the Death Benefit; or
o the Settlement Value on the date we determine the Death Benefit; or
o the greatest of the Contract Values on the current or any previous Death
Benefit Anniversary prior to the date we determine the death benefit,
increased by purchase payments made since that Death Benefit Anniversary
and reduced by an adjustment for any partial withdrawals since that Death
Benefit Anniversary.
GLA141 Page 12 (5/01)
The adjustment for any partial withdrawals is equal to (A) divided by (B)
and the result multiplied by (C) where:
(A) is the withdrawal amount.
(B) is the Contract Value immediately prior to the withdrawal.
(C) is the Contract Value on the Death Benefit Anniversary
adjusted by any prior purchase payments or withdrawals made
since that Anniversary.
The first Death Benefit Anniversary is the issue date. Subsequent Death Benefit
Anniversaries are those contract anniversaries that are multiples of 7 Contract
Years, beginning with the 7th contract anniversary. For example, the issue date,
7th, and 14th contract anniversaries are the first three Death Benefit
anniversaries.
We will determine the value of the Death Benefit as of the end of the Valuation
Period during which we receive a complete request for payment of the Death
Benefit. A complete request includes due proof of death.
Settlement Value The Settlement Value is the same amount that would be paid in
the event of withdrawal of the Contract Value. We will calculate the Settlement
Value at the end of the Valuation Period coinciding with the requested
distribution date for payment or on the mandatory distribution date of 5 years
after the date of death.
-----------------------------------------------------------------------------
PAYOUT PHASE
-----------------------------------------------------------------------------
Payout Phase Defined The "Payout Phase" is the second of the two phases during
your Contract. During this phase the Contract Value adjusted by any Market Value
Adjustment and less any applicable taxes is applied to the Income Plan you
choose and is paid out as provided in that plan.
The Payout Phase begins on the Payout Start Date. It continues until we make the
last payment as provided by the Income Plan chosen.
Payout Start Date The "Payout Start Date" is the date the Contract Value
adjusted by any Market Value Adjustment and less any applicable taxes is applied
to an Income Plan. The anticipated Payout Start Date is shown on the Annuity
Data Page. You may change the Payout Start Date by writing to us at least 30
days prior to this date.
The Payout Start Date must be at least 30 days after the Issue Date, and occur
on or before the later of:
o the Annuitant's 90th birthday; or
o the 10th anniversary of the Contract's issue date.
Income Plans An "Income Plan" is a series of payments on a scheduled basis to
you or to another person designated by you. The Contract Value on the Payout
Start Date adjusted by any Market Value Adjustment and less any applicable
taxes, will be applied to your Income Plan choice from the following list:
1. Life Income with Guaranteed Payments We will make payments for as long as
the Annuitant lives. If the Annuitant dies before the selected number of
guaranteed payments have been made, we will continue to pay the remainder
of the guaranteed payments.
2. Joint and Survivor Life Income with Guaranteed Payments We will make
payments for as long as either the Annuitant or joint Annuitant, named at
the time of Income Plan selection, lives. If both the Annuitant and the
joint Annuitant die before the selected number of guaranteed payments have
been made, we will continue to pay the remainder of the guaranteed
payments.
3. Guaranteed Number of Payments. We will make payments for a specified number
of months beginning on the Payout Start Date. These payments do not depend
on the Annuitant's life. The number of months guaranteed may be from 60 to
360.
GLA141 Page 13 (5/01)
We reserve the right to make available other Income Plans.
Income Payments Income payment amounts may vary based on any Sub-Account of the
Variable Account and/or may be fixed for the duration of the Income Plan. The
method of calculating the initial payment is different for Variable Amount
Income Payments and Fixed Amount Income Payments. The Contract Maintenance
Charge will be deducted in equal payments from each income payment. The Contract
Maintenance Charge will be waived if the total Contract Value is $50,000 or more
as of the Payout Start Date.
Variable Amount Income Payments The initial income payment based upon the
Variable Account is calculated by applying the portion of the Contract Value in
the Variable Account on the Payout Start Date, less any applicable premium tax,
to the appropriate value from the Income Payment Table selected. Subsequent
income payments will vary depending upon the changes in the Annuity Unit Values
for the Sub-Accounts upon which the income payments are based.
The portion of the initial income payment based upon a particular Variable
Sub-Account is determined by applying the amount of the Contract Value in that
Sub-Account on the Payout Start Date, less any applicable premium tax, to the
appropriate value from the Income Payment Table. This portion of the initial
income payment is divided by the Annuity Unit Value on the Payout Start Date for
that Variable Sub-Account to determine the number of Annuity Units from that
Sub-Account which will be used to determine subsequent income payments. Unless
Annuity Transfers are made between Sub-Accounts, each subsequent income payment
from that Sub-Account will be that number of Annuity Units times the Annuity
Unit Value for the Sub-Account for the Valuation Date on which the income
payment is made.
Annuity Unit Value The Annuity Unit Value for each Sub-Account of the Variable
Account at the end of any Valuation Period is calculated by:
o multiplying the Annuity Unit Value at the end of the immediately preceding
Valuation Period by the Sub-Account's Net Investment Factor during the
period; and then
o dividing the result by 1.000 plus the assumed investment rate for the
period. The assumed investment rate is an effective annual rate of 3%.
Fixed Amount Income Payments The income payment amount derived from any money
allocated to the Fixed Account Options during the Accumulation Phase are fixed
for the duration of the Income Plan. The Fixed Amount Income Payment is
calculated by applying the portion of the Contract Value in the Fixed Account
Options on the Payout Start Date, adjusted by any Market Value Adjustment plus
any amount from the Variable Account that the Owner elects to apply to a Fixed
Amount Income Payment and less any applicable premium tax, to the greater of the
appropriate value from the Income Payment Table selected or such other value as
we are offering at that time.
Annuity Transfers After the Payout Start Date, you may transfer among the
variable subaccounts. You may make up to 12 transfers per Contract year. No
transfers may be made from the Fixed Amount Income Payment. Transfers from the
Variable Amount Income Payment to the Fixed Amount Income Payment may not be
made for six months after the Payout Start Date.
Payout Terms and Conditions The income payments are subject to the following
terms and conditions:
o If the Contract Value is less than $2,000, or not enough to provide an
initial payment of at least $20, we reserve the right to:
o change the payment frequency to make the payment at least $20; or
o terminate the Contract and pay you the Contract Value adjusted by any
Market Value Adjustment and less any applicable taxes in a lump sum.
GLA141 Page 14 (5/01)
o If we do not receive a written choice of an Income Plan from you at least
30 days before the Payout Start Date, the Income Plan will be life income
with guaranteed payments for 120 months.
o If you choose an Income Plan which depends on any person's life, we may
require:
o proof of age and sex before income payments begin; and
o proof that the Annuitant or joint Annuitant is still alive before we
make each payment.
o After the Payout Start Date, the Income Plan cannot be changed and
withdrawals cannot be made unless variable income payments are being made
under Income Plan 3. You may terminate all or a portion of the income
payments being made under Income Plan 3 at any time and withdraw their
value by writing to us. For Variable Amount Income Payments, this value is
equal to the present value of the Variable Amount Income Payments being
terminated, calculated using a discount rate equal to the assumed
investment rate that was used in determining the initial variable payment.
o If any Owner dies during the Payout Phase, the remaining income payments
will be paid to the successor Owner as scheduled.
-----------------------------------------------------------------------------
INCOME PAYMENT TABLES
-----------------------------------------------------------------------------
The initial income payment will be at least the amount based on the adjusted age
of the Annuitant(s) and the tables below, less any federal income taxes which
are withheld. The adjusted age is the actual age of the Annuitant(s) on the
Payout Start Date reduced by one year for each six full years between January 1,
2000 and the Payout Start Date. Income payments for ages and guaranteed payment
periods not shown below will be determined on a basis consistent with that used
to determine those that are shown. The Income Payment Tables are based on 3.0%
interest and the Annuity 2000 Mortality Tables.
GLA141 Page 15 (5/01)
Income Plan 1 - Life Income with Guaranteed Payments for 120 Months
============================================================================================================================
Monthly Income Payment for each $1,000 Applied to this Income Plan
----------------------------------------------------------------------------------------------------------------------------
------------------- ---------------------- ---------------- ---------------------- ---------------- ------------------------
Annuitant's Annuitant's Annuitant's
Adjusted Male Female Adjusted Male Female Adjusted Male Female
Age Age Age
------------------- ---------------------- ---------------- ---------------------- ---------------- ------------------------
------------------- ---------------------- ---------------- ---------------------- ---------------- ------------------------
35 $ 3.34 $3.22 49 $3.99 $3.76 63 $5.23 $4.84
36 3.38 3.24 50 4.05 3.81 64 5.35 4.95
37 3.41 3.27 51 4.11 3.87 65 5.49 5.07
38 3.45 3.30 52 4.18 3.93 66 5.62 5.20
39 3.49 3.34 53 4.26 3.99 67 5.77 5.33
40 3.53 3.37 54 4.33 4.06 68 5.92 5.47
41 3.57 3.41 55 4.41 4.13 69 6.07 5.62
42 3.62 3.44 56 4.50 4.20 70 6.23
43 3.66 3.48 57 4.58 4.28 71 5.78
44 3.71 3.52 58 4.68 4.36 72 6.39 5.94
45 3.76 3.57 59 4.78 4.45 73 6.56 6.11
46 3.81 3.61 60 4.88 4.54 74 6.73 6.29
47 3.87 3.66 61 4.99 4.63 75 6.90 6.48
48 3.93 3.71 62 5.11 4.73 7.08 6.67
=================== ====================== ================ ====================== ================ ========================
Income Plan 2 - Joint and Survivor Life Income with Guaranteed Payments for 120 Months
==============================================================================================================================
Monthly Income Payment for each $1,000 Applied to this Income Plan
------------------------------------------------------------------------------------------------------------------------------
-------------------- ---------------------------------------------------------------------------------------------------------
Female Annuitant's Adjusted Age
-------------------- ---------------------------------------------------------------------------------------------------------
-------------------- ---------- ------------ ----------- ---------- ---------- ---------- ---------- --------- ---------------
Male
Annuitant's 35 40 45 50 55 60 65 70 75
Adjusted
Age
-------------------- ---------- ------------ ----------- ---------- ---------- ---------- ---------- --------- ---------------
-------------------- ---------- ---------- ---------- ---------- ----------- ---------- ------------ ----------- -------------
35 $3.06 $3.12 $3.17 $3.22 $3.26 $3.28 $3.31 $3.32 $3.33
40 3.10 3.18 3.26 3.32 3.38 3.43 3.46 3.49 3.51
45 3.13 3.23 3.33 3.43 3.52 3.59 3.65 3.69 3.72
50 3.16 3.27 3.40 3.53 3.65 3.76 3.86 3.93 3.98
55 3.18 3.30 3.45 3.61 3.77 3.94 4.08 4.20 4.29
60 3.19 3.33 3.49 3.68 3.88 4.10 4.31 4.51 4.66
65 3.20 3.34 3.52 3.73 3.97 4.24 4.54 4.83 5.08
70 3.21 3.35 3.54 3.76 4.03 4.36 4.73 5.13 5.52
75 3.21 3.36 3.55 3.78 4.07 4.44 4.87 5.38 5.92
==================== ========== ========== ========== ========== =========== ========== ============ =========== =============
Income Plan 3 - Guaranteed Number of Payments
================================= ===============================================
Monthly Income Payment for each
Specified Period $1,000 Applied to this Income Plan
--------------------------------- -----------------------------------------------
--------------------------------- -----------------------------------------------
10 Years $9.61
11 Years 8.86
12 Years 8.24
13 Years 7.71
14 Years 7.26
15 Years 6.87
16 Years 6.53
17 Years 6.23
18 Years 5.96
19 Years 5.73
20 Years 5.51
================================= ===============================================
GLA141 Page 16 (5/01)
-----------------------------------------------------------------------------
GENERAL PROVISIONS
-----------------------------------------------------------------------------
The Entire Contract The entire contract consists of this Contract, any written
applications, and any Contract endorsements and riders.
All statements made in written applications are representations and not
warranties. No statement will be used by us in defense of a claim or to void the
Contract unless it is included in a written application. If your Contract is
voided, you will receive any purchase payments allocated to the Variable
Account, adjusted to reflect investment gain or loss from the date of allocation
to the date the Contract is voided, plus any purchase payments allocated to the
Fixed Account Options, less any withdrawals.
Only our officers may change the Contract or waive a right or requirement. No
other individual may do this.
We may not modify this Contract without your signed consent, except to make it
comply with any changes in the Internal Revenue Code or as required by any other
applicable law.
Incontestability We will not contest the validity of this Contract after the
issue date.
Misstatement of Age or Sex If any age or sex has been misstated, we will pay the
amounts which would have been paid at the correct age and sex.
If we find the misstatement of age or sex after the income payments begin, we
will:
o pay all amounts underpaid including interest calculated at an effective
annual rate of 6%; or
o stop payments until the total income payments made are equal to the total
amounts that would have been made if the correct age and sex had been used.
Annual Statement At least once a year, prior to the Payout Start Date, we will
send you a statement containing Contract Value information. We will provide you
with Contract Value information at any time upon request. The information
presented will comply with any applicable law.
Settlements We may require that this Contract be returned to us prior to any
settlement. We must receive due proof of death of the Owner or Annuitant prior
to settlement of a death claim.
Any full withdrawal or death benefit under this Contract will not be less than
the minimum benefits required by any statute of the state in which the Contract
is delivered.
Deferment of Payments We will pay any amounts due from the Variable Account
under this Contract within seven days, unless:
o the New York Stock Exchange is closed for other than usual weekends or
holidays, or trading on such Exchange is restricted;
o an emergency exists as defined by the Securities and Exchange Commission;
or
o the Securities and Exchange Commission permits delay for the protection of
Contract holders.
We reserve the right to postpone payments or transfers from the Fixed Account
Options for up to six months. If we elect to postpone payments or transfers from
the Fixed Account Options for 30 days or more, we will pay interest as required
by applicable law. Any interest would be payable from the date the payment or
transfer request is received by us to the date the payment or transfer is made.
GLA141 Page 17 (5/01)
Variable Account Modifications We reserve the right, subject to applicable law,
to make additions to, deletions from, or substitutions for the mutual fund
shares underlying the Sub-Accounts of the Variable Account. We will not
substitute any shares attributable to your interest in a Sub-Account of the
Variable Account without notice to you and prior approval of the Securities and
Exchange Commission, to the extent required by the Investment Company Act of
1940.
We reserve the right to establish additional Sub-Accounts of the Variable
Account, each of which would invest in shares of another mutual fund. You may
then instruct us to allocate purchase payments or transfers to such
Sub-Accounts, subject to any terms set by us or the mutual fund. We reserve the
right to limit the availability of funds for this Contract.
In the event of any such substitution or change, we may by endorsement, make
such changes as may be necessary or appropriate to reflect such substitution or
change.
If we deem it to be in the best interests of persons having voting rights under
the contracts, the Variable Account may be operated as a management company
under the Investment Company Act of 1940 or it may be deregistered under such
Act in the event such registration is no longer required.
GLA141 Page 18 (5/01)
EX (4)(b)
GLA142 Page 3 (05/01)
GLENBROOK LIFE AND ANNUITY COMPANY
(herein called "we" or "us")
Enhanced Death Benefit Rider
This rider was issued because you selected the Enhanced Death Benefit.
As used in this rider, "Contract" means the Contract or Certificate to which
this rider is attached.
For purposes of this rider, "Rider Date" is the date this rider was made a part
of your Contract: xx/xx/xx.
The following changes are made to your Contract.
I. Under this rider, the Enhanced Death Benefit is determined as follows:
The Death Benefit will be the greater of the values stated in your
Contract, or the value of the Enhanced Death Benefit.
The Enhanced Death Benefit is equal to the greater of the Enhanced
Death Benefit A or Enhanced Death Benefit B.
Enhanced Death Benefit A
On the Rider Date the Enhanced Death Benefit A is equal to the Contract
Value on the Rider Date. After the Rider Date, the Enhanced Death
Benefit A is recalculated when a purchase payment or withdrawal is made
or on a Contract Anniversary as follows:
1. For purchase payments, the Enhanced Death Benefit A is equal
to the most recently calculated Enhanced Death Benefit A plus
the purchase payment.
2. For withdrawals, the Enhanced Death Benefit A is equal to the
most recently calculated Enhanced Death Benefit A reduced by a
withdrawal adjustment defined below.
3. On each Contract Anniversary, the Enhanced Death Benefit A is
equal to the greater of the Contract Value or the most
recently calculated Enhanced Death Benefit A.
In the absence of any withdrawals or purchase payments, the Enhanced
Death Benefit A will be the greatest of all Contract Anniversary
Contract Values on or after the Rider Date and on or prior to the date
we calculate the Death Benefit.
The Enhanced Death Benefit A will be recalculated for purchase
payments, withdrawals and on Contract anniversaries until the earlier
of:
1. the first Contract Anniversary after the oldest Owner's 80th
birthday or, if the Owner is not a living individual, the
Annuitant's 80th birthday, or the first day of the 61st month
following the Rider Date, whichever is later.
After age 80 or the first day of the 61st month following the
Rider Date, whichever is later, the Enhanced Death Benefit A
will be recalculated only for purchase payments and
withdrawals ; or
2. the Date we determine the Death Benefit.
Enhanced Death Benefit B
On the Rider Date, the Enhanced Death Benefit B is equal to the
Contract Value on the Rider Date. After the Rider Date, the Contract
Value on the Rider Date plus subsequent purchase and less subsequent
withdrawal adjustments will accumulate daily at a rate equivalent to 5%
per year until the earlier of:
1. the first day of the month following the oldest Owner's 80th
birthday or, if the Owner is not a living individual, the
Annuitant's 80th birthday, or the first day of the 61st month
following the Rider Date, whichever is later.
After age 80 or the first day of the 61st month following the
Rider Date, whichever is later, the Enhanced Death Benefit B will
be recalculated only for purchase payments and withdrawals ; or
2. the date we determine the Death Benefit
The Enhanced Death Benefit B will never be greater than the maximum
death benefit allowed by any nonforfeiture laws which govern the
Contract.
Withdrawal Adjustment
The withdrawal adjustment is equal to (a) divided by (b), with the
result multiplied by (c), where:
(a) = the withdrawal amount.
(b) = the Contract Value immediately prior to the withdrawal.
(c) = the most recently calculated Enhanced Death Benefit A or B, as
applicable.
If the Owner is a living person, the Enhanced Death Benefit is payable
and this rider will terminate and charges for this rider will cease
upon the death of the Owner unless the rider is continued as defined in
section III below. If the Owner is a non-living person, the Enhanced
Death Benefit is payable and this rider will terminate and charges for
this rider will cease upon the death of the Annuitant.
II. Enhanced Death Benefit Mortality and Expense Risk Charge:
The maximum annualized Mortality and Expense Risk Charge is increased
by 0.25% for this rider.
III. Death of Owner or Annuitant for the Enhanced Death Benefit Rider
Death of Owner Upon the death of any Owner, if your spouse continues
the Contract under section 1(c) of the Death of Owner provision in your
Contract, then this rider will also continue unless the oldest new
Owner is over age 80 on the date the Contract is continued.
If this rider is terminated under the condition described above, then
the charge for this rider will cease as of the date the Contract is
continued.
If the rider is continued, then the following conditions apply:
o The Contract Value on the date the Contract is continued is equal
to the Death Benefit amount;
o Enhanced Death Benefit A will continue to be recalculated for
purchase payments, withdrawals, and on Contract Anniversaries
after the date the Contract is continued until the earlier of:
1. the first Contract Anniversary after the oldest new Owner's
80th birthday.
After age 80, the Enhanced Death Benefit A will be recalculated
only for purchase payments and withdrawals; or
2. the Date we determine the Death Benefit;
unless the deceased Owner was age 80 or older on the date of
death. In this case, the Enhanced Death Benefit A will be
recalculated only for purchase payments and withdrawals after the
date the Contract is continued.
o The amount of the Enhanced Death Benefit B as of the date the
Contract is continued and any subsequent purchase payments and
less any subsequent withdrawal adjustments will accumulate daily
at a rate equivalent to 5% per year after the date the Contract
is continued, until the earlier of:
1. the first day of the month following the oldest new Owner's
80th birthday.
After age 80, the Enhanced Death Benefit B will be recalculated
only for purchase payments and withdrawals; or
2. the Date we determine the Death Benefit;
unless the deceased Owner was age 80 or older on the date of
death. In this case, the Enhanced Death Benefit B will be
recalculated only for purchase payments and withdrawals after the
date the Contract is continued.
Death of Annuitant If the Owner is a non-living person, this rider will
terminate upon the death of the Annuitant.
IV. The Enhanced Death Benefit Rider will terminate and charges for this rider
will cease:
o when the Owner, or Annuitant if the Owner is a non-living person, is
changed for reasons other than death; or
o on the Payout Start Date.
Except as amended by this rider, the Contract remains unchanged.
[GRAPHIC OMITTED][GRAPHIC OMITTED]
Secretary Chairman and Chief Executive Officer
EX (4)(c)
Page 2
GLA143 (05/01)
GLENBROOK LIFE AND ANNUITY COMPANY
(herein called "we" or "us")
Income Benefit Rider
This rider was issued because you selected the Income Benefit.
As used in this rider, "Contract" means the Contract or Certificate to which
this rider is attached.
For purposes of this rider, "Rider Date" is the date this rider was made a part
of your Contract: xx/xx/xxxx
The following is added to your Contract.
Income Benefit
Qualifications
On the Payout Start Date, the Owner may choose to receive income payments
defined in the Income Benefit provision if all of the following conditions are
met.
o The Owner elects a Payout Start Date that is on or after the tenth
anniversary of the Rider Date;
o The Payout Start Date occurs during the 30 day period following a Contract
Anniversary;
o The oldest Annuitant is age 90 or younger;
o The Income Base is applied to Fixed Amount Income Payments determined using
Guaranteed Income Payment Tables as defined in your Contract; and
o The selected Income Plan provides payments guaranteed for either single or
joint life with a period certain of at least:
o 10 years, if the youngest Annuitant's age is 80 or less on the Payout Start
Date, or
o 5 years, if the youngest Annuitant's age is greater than 80 on the Payout
Start Date.
Income Base
Income Base is used solely for the purpose of calculating the guaranteed Income
Benefit and does not provide a Contract Value or guarantee performance of any
investment option.
On the Rider Date, the Income Base is equal to the Contract Value on
the Rider Date. After the Rider Date, the Contract Value on the Rider
Date plus subsequent purchase payments and less withdrawal adjustments
will accumulate daily at a rate equivalent to 5% per year until the
earlier of:
o the first day of the month following the 85th birthday of the oldest Owner
or, if the Owner is not a living individual, the oldest Annuitant; or
o the Payout Start Date.
Withdrawal Adjustment
The withdrawal adjustment is equal to (a) divided by (b), with the result
multiplied by (c), where:
(a) = the withdrawal amount.
(b) = the Contract Value immediately prior to the withdrawal.
(c) = the most recently calculated Income Base.
Income Benefit
The guaranteed Income Benefit amount is determined by applying the Income Base
less any applicable taxes to the Guaranteed Income Payment Tables for the Income
Plan elected by the Owner. The Income Plan selected must satisfy the conditions
defined in Qualifications above. The rates are the guaranteed rates defined in
the Income Payment Tables section of the Contract for either a single or joint
life with a period certain.
On the Payout Start Date, the income payment will be the greater of the
guaranteed Income Benefit or the income payment provided in the Payout Phase
section.
The following provisions in your Contract have been amended as follows:
Mortality and Expense Risk Charge The maximum annualized Mortality and Expense
Risk Charge is increased by 0.25% for this rider.
Except as amended in this rider the Contract remains unchanged.
[GRAPHIC OMITTED][GRAPHIC OMITTED]
Secretary Chairman and Chief Executive Officer
EX (4)(d)
GLA135 Page 1 (01/01)
GLENBROOK LIFE AND ANNUITY COMPANY
(herein called "we" or "us")
Enhanced Earnings Death Benefit Rider
This rider was issued because you selected the Enhanced Earnings Death Benefit
Rider. The benefit provided by and charges for this rider are in addition to
those defined in your Contract.
For purposes of this benefit, "Rider Date" is the date the Enhanced Earnings
Death Benefit Rider was made a part of the Contract: xx/xx/xxxx
Definition of terms as used in this rider
o Contract: The Contract or Certificate to which this rider is attached.
o In-Force Earnings: The greater of (a) the current Contract Value less the
In-Force Premium; or (b) zero.
o In-Force Premium: If the Rider Date is equal to the Contract Issue Date:
The sum of all the purchase payments less the sum of all Excess-of-Earnings
Withdrawals.
If the Rider Date is later than the Contract Issue Date: The Contract Value as
of the Rider Date plus all the purchase payments made after the Rider Date, less
the sum of all Excess-of-Earnings Withdrawals after the Rider Date.
o Excess-of-Earnings Withdrawals: For each withdrawal, this amount is equal
to the excess, if any, of the amount of the withdrawal over the amount of
In-Force Earnings immediately prior to the withdrawal.
I. Under this rider, the Enhanced Earnings Death Benefit is determined as
follows:
If the oldest Owner, or the Annuitant if the Owner is a non-living
person, is age 55 or younger on the date we receive the completed
application or the date we receive the written request to add this
rider, whichever is later, the Enhanced Earnings Death Benefit will be:
The lesser of 80% of In-Force Premium (excluding purchase
payments made after the Rider Date and in the twelve month
period immediately preceding the death of the Owner, or
Annuitant if the Owner is a non-living person), or 40% of
In-Force Earnings, calculated as of the date we receive due
proof of death.
If the oldest Owner, or the Annuitant if the Owner is a non-living
person, is between the ages of 56 and 65 on the date we receive the
completed application or the date we receive the written request to add
this rider, whichever is later, the Enhanced Earnings Death Benefit
will be:
The lesser of 60% of In-Force Premium (excluding purchase
payments made after the Rider Date and in the twelve month
period immediately preceding the death of the Owner, or
Annuitant if the Owner is a non-living person), or 30% of
In-Force Earnings, calculated as of the date we receive due
proof of death.
If the oldest Owner, or Annuitant if the Owner is a non-living person
is between the ages of 66 and 75 on the date we receive the completed
application or the date we receive the written request to add this
rider, whichever is later, the Enhanced Earnings Death Benefit will be:
The lesser of 40% of In-Force Premium (excluding purchase
payments made after the Rider Date and in the twelve month
period immediately preceding the death of the Owner, or
Annuitant if the Owner is a non-living person), or 20% of
In-Force Earnings, calculated as of the date we receive due
proof of death.
If the Owner is a living person, the Enhanced Earnings Death Benefit is
payable and this rider will terminate and charges for this rider will
cease upon the death of the Owner unless the rider is continued as
defined in section III below. If the Owner is a non-living person, the
Enhanced Earnings Death Benefit is payable and this rider will
terminate and charges for this rider will cease upon the death of the
Annuitant.
II. Enhanced Earnings Death Benefit Fee:
An annual charge will be deducted from your Contract Value on each
Contact Anniversary during the Accumulation Phase. This annual charge
is a constant percentage of your Contract Value. The constant
percentage is based on the oldest Owner's, or Annuitant's if the Owner
is a non-living person, age on the date we receive the completed
application or the date we receive the written request to add this
rider, whichever is later, as follows:
Age Annual Charge
--- -------------
0-55 0.10%
56-65 0.20%
66-75 0.35%
The fee is deducted first from the Variable Sub-accounts on a pro-rata
basis. If the Contract Value in the Variable Sub-accounts is not
sufficient to cover the charge, we will deduct the remaining charge
from the Guarantee Maturity Fixed Account Guarantee Periods, beginning
with the oldest Guarantee Period. For the initial Contract Anniversary
after the date the rider is issued, the Enhanced Earnings Death Benefit
Fee (Rider Fee) is equal to the number of full months from the date the
rider is issued to the Contract Anniversary divided by twelve, then
multiplied by the applicable Annual Charge percentage (as described
above), with the result multiplied by the Contract Value on that
Contract Anniversary. For each subsequent Contract Anniversary, the
Enhanced Earnings Death Benefit Fee is equal to the applicable Annual
Charge Percentage (as described above) multiplied by the Contract Value
on that Contract Anniversary.
In the case of full withdrawal of the Contract Value on any date other
than the Contract Anniversary, we will deduct from the amount paid upon
withdrawal a Rider Fee equal to the applicable Annual Charge percentage
(as described above) multiplied by the Contract Value immediately prior
to the withdrawal pro-rated to reflect the number of full months this
rider was in effect during the current Contract Year. The Rider Fee
will not be deducted during the Payout Phase.
III. Death of Owner or Annuitant for the Enhanced Earnings Death Benefit Rider
Death of Owner Upon the death of any Owner, if your spouse continues
the Contract under section 1(c) of the Death of Owner provision in your
Contract, then this rider will also continue unless one of the
following conditions apply:
o The oldest new Owner is over age 75 on the date the Contract is continued;
or
o The new Owner elects to terminate this rider.
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If this rider is terminated under the conditions described above, then the
charge for this rider will cease as of the date the Contract is continued.
If the rider is continued, then the following conditions apply:
o The Rider Date is reset to the date the Contract is continued;
o The new Rider Date is used to calculate the In-Force Premium;
o The age of the oldest new Owner as of the new Rider Date will be used to
determine the Enhanced Earnings Death Benefit after the new Rider Date;
o The Annual Charge percentage (as described above) used to determine the
Rider Fee will change to reflect the age of the oldest new Owner as of the
new Rider Date; and
o The Enhanced Earnings Death Benefit is added to the Death Benefit amount
for purposes of determining the new Contract Value on the date the Contract
is continued.
Death of Annuitant If the Owner is a non-living person, this rider will
terminate upon the death of the Annuitant.
IV. The Enhanced Death Benefit Rider will terminate and charges for this rider
will cease:
o when the Owner, or Annuitant if the Owner is a non-living person, is
changed for reasons other than death; or
o on the Payout Start Date.
V. Misstatement of Age for the Enhanced Earnings Death Benefit Rider
If an Owner's or the Annuitant's age is misstated, the Enhanced Earnings
Death Benefit will be based on the corrected age and your Contract will be
adjusted to reflect the fees that should have been assessed based on the
corrected age.
Except as amended by this rider, the Contract remains unchanged.
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Secretary Chairman and Chief Executive Officer
