Deferred Annuity Contract
Administrative Offices:
00 Xxxxx Xxxxxx Xxxxxx
P.O. Box 534
Minneapolis, MN 55440
American
Enterprise
Life
This is a deferred annuity contract. It is a legal contract between you, as the
owner, and us, American Enterprise Life Insurance Company, a Stock Company,
Indianapolis, Indiana. PLEASE READ YOUR CONTRACT CAREFULLY.
If the annuitant is living on the Retirement Date, we will begin to pay you
monthly annuity payments. Any payments made by us are subject to the terms of
this contract. The owner and beneficiary are as named in the application unless
they are changed as provided for in this contract.
We issue this contract in consideration of your application and the payment of
the purchase payments.
Signed for and issued by American Enterprise Life Insurance Company of
Indianapolis, Indiana, as of the contract date.
ACCUMULATION VALUES AND ANNUITY PAYMENTS, WHEN BASED ON THE INVESTMENT RESULTS
OF THE SEPARATE ACCOUNT, ARE VARIABLE AND NOT GUARANTEED AS TO FIXED DOLLAR
AMOUNT. SEE PAGE 12 FOR VARIABLE PROVISIONS.
PAYMENTS AND VALUES BASED ON THE GUARANTEE PERIOD ACCOUNTS ARE SUBJECT TO A
MARKET VALUE ADJUSTMENT FORMULA, THE OPERATION OF WHICH MAY RESULT IN UPWARD AND
DOWNWARD ADJUSTMENTS IN AMOUNTS PAYABLE TO AN OWNER OR ANNUITANT, INCLUDING
WITHDRAWALS, TRANSFERS AND AMOUNTS APPLIED TO PURCHASE AN ANNUITY. SEE PAGE 14
FOR MARKET VALUE ADJUSTMENT PROVISIONS.
NOTICE OF YOUR RIGHT TO EXAMINE THIS CONTRACT FOR 10 DAYS. If for any reason you
are not satisfied with this contract, return it to us or our agent within 10
days after you receive it. We will then cancel this contract. Upon such
cancellation we will refund an amount equal to the sum of: (1) the contract
value, including any Market Value Adjustment, if applicable, and less any
purchase payment credits, at the end of the Valuation Period during which we
receive the contract; and (2) any premium tax charges paid. This contract will
then be considered void from its start.
Secretary President
o Flexible Purchase Payments
o Investment Experience Reflected in Benefits
o Optional Fixed Dollar or Variable Accumulation Values and Annuity
Payments
o Annuity Payments to Begin on the Retirement Date
o This Contract is Nonparticipating -- Dividends Are Not Payable
CONTRACT DATA
Contract Number: [9920-SAMPLE] Contract Date: [November 1,1999]
Initial Purchase Payment: [$10,000] Retirement Date: [November 1, 2039]
Annuitant: [Xxxx Xxx] Contract Type: [Non-Qualified]
Contract Owner: [Xxxx Xxx]
Upon issuance of this contract your initial purchase payment has been applied to
the one year fixed account, guarantee period accounts and variable subaccounts
as shown below. You may make additional payments and change the purchase payment
allocation as provided in this contract. Refer to the purchase payments
provision on Page 9.
Purchase Payment Purchase Payment
Allocation Allocation Percentage Allocation Allocation Percentage
AEL One Year Fixed Account [%] [Fund 14 [%
Fund 15 %
[2 Year Guarantee Period Account [% Fund 16 %
3 Year Guarantee Period Account % Fund 17 %
4 Year Guarantee Period Account % Fund 18 %
5 Year Guarantee Period Account % Fund 19 %
6 Year Guarantee period Account % Fund 20 %
7 Year Guarantee Period Account % Fund 21 %
8 Year Guarantee Period Account % Fund 22 %
9 Year Guarantee Period Account % Fund 23 %
10 Year Guarantee Period Account] %] Fund 24 %
Fund 25 %
Fund 26 %
[Fund 1 [% Fund 27 %
Fund 2 % Fund 28 %
Fund 3 % Fund 29 %
Fund 4 % Fund 30 %
Fund 5 % Fund 31 %
Fund 6 % Fund 32 %
Fund 7 % Fund 33 %
Fund 8 % Fund 34 %
Fund 9 % Fund 35 %
Fund 10 % Fund 36 %
Fund 11 % Fund 37 %
Fund 12 % Fund 38 %
Fund 13] %] Fund 39] %]
Purchase Payment Credits
Cumulative Net Purchase Payment Amount Net Purchase Payment Credit Percentage
[$0 - $9,999.99 [1%
$10,000 - $999,999.99 2%
$1,000,000 - $4,999,999.99 3%
$5,000,000 + ] 4%]
Purchase payment credits are not vested until [ 12 months ] after being credited
in the case of a free look cancellation, a death claim payment or a full
withdrawal not subject to withdrawal charges.
CONTRACT DATA - Continued
Contract Number: [9920-SAMPLE] Contract Date: [November 1, 1999]
[Enhanced Death Benefit Rider Attached]
[Guaranteed Minimum Income Benefit Rider Attached Annual Charge of .30%
"Subaccount Limitation under the Guaranteed Minimum Income
Benefit: We reserve the right to limit the amount in the Xxxxx Fargo
Money Market Fund to (10%) of the total amount in the subaccounts."]
Withdrawal Charge: If you withdraw all or a portion of this contract, a
withdrawal charge may apply. A withdrawal charge applies if all or part of the
contract value withdrawn is from payments received during the [eight years]
before withdrawal.
Years From Payment Receipt Withdrawal Charge
[1 [8.0% of purchase payment withdrawal
2 8.0% of purchase payment withdrawal
3 8.0% of purchase payment withdrawal
4 8.0% of purchase payment withdrawal
5 8.0% of purchase payment withdrawal
6 6.0% of purchase payment withdrawal
7 4.0% of purchase payment withdrawal
8 2.0% of purchase payment withdrawal
Thereafter] 0.0% of purchase payment withdrawal]
You may withdraw the greater of 10 percent of your prior contract anniversary
contract value or contract earnings each contract year without incurring a
withdrawal charge. Refer to the withdrawal charge provision on Page 14 for
additional withdrawal charge information.
Mortality and Expense Risk Charge: [1.35%] See page 13.
Variable Account Administrative Charge: .15% See page 13.
Contract Administrative Charge: $30 See page 11.
The Maximum Total Purchase Payment:
$1,000,000 for issue ages through age 85
The Minimum Additional Purchase Payment is $100.
The Guaranteed Minimum Effective Interest Rate to be credited to the AEL One
Year Fixed Account and Guarantee Period Account(s) is 3%.
Market Value Adjustment
All payments and values based on the Guarantee Period Account(s) are subject to
a Market Value Adjustment formula, the operation of which may result in upward
and downward adjustments in amounts payable. See page 14.
Guide to Contract Provisions
Definitions Important words and meanings...........Page
General Provisions Entire contract; Annuity tax qualification;
Contract modification; Incontestability;
Benefits based on incorrect data; State
laws; Reports to owner; Evidence of
survival; Protection of proceeds; Payments
by us; Voting rights...................Page
Ownership and Beneficiary Owner rights; Change of ownership;
Beneficiary; Change of Beneficiary;
Assignment.............................Page
Payments to Beneficiary Describes options and amounts payable upon
death..................................Page
Purchase Payments Purchase payments amounts; Payment limits;
Allocations of purchase payments, Purchase
Payment Credits........................Page
Contract Value Describes the fixed and variable
account contract values; Interest to be
credited; Contract administrative charge;
Premium taxes; Transfers of contract values;
Dollar Cost Averaging Program..........Page
Fixed and Variable Accounts Describes the fixed account; Describes
Guarantee Period Accounts; Describes
the variable subaccounts, accumulation
units and values; Net investment factor;
Mortality and expense risk charge; Variable
account administrative charge; Annuity unit
value..................................Page
Withdrawal Provisions Contract withdrawal for its withdrawal
value; Rules for withdrawal; Market Value
Adjustment.............................Page
Annuity Provisions When annuity payments begin; Different ways
to receive annuity payments; Determination
of payment amounts.....................Page
Tables of Annuity Rates Tables showing the amount of the first
variable annuity payment and the guaranteed
fixed annuity payments for the various
payment plans..........................Page
Definitions
The following words are used often in this contract. When we use these words,
this is what we mean:
Accumulation Unit
An accumulation unit is an accounting unit of measure. It is used to calculate
the variable account contract value prior to annuitization.
Annuitant
The person or persons on whose life monthly annuity payments depend.
Annuitization
The application of the contract value of this contract to provide annuity
payments.
Annuity Unit
An annuity unit is an accounting unit of measure. It is used to calculate the
value of annuity payments from the variable account on and after annuitization.
Code
The Internal Revenue Code of 1986, as amended.
Contract Anniversary
The same day and month as the contract date each year that the contract remains
in force.
Contract Date
It is the date from which contract anniversaries, contract years, and contract
months are determined. Your contract date is shown under Contract Data.
Contract Value The sum of the: (1) fixed account contract value; and (2)
variable account contract value.
Fixed Annuity
A fixed annuity is an annuity with payments which are guaranteed by us as to
dollar amount during the annuity payment period.
One Year Fixed Account
It is an account to which you may allocate purchase payments and contract
values. Amounts you allocate to the one year account earn guaranteed interest
rates that we declare periodically.
Guarantee Period Account
These are fixed accounts to which you may allocate purchase payments and
contract values. Guarantee Period Accounts have guaranteed interest rates
declared periodically with guarantee periods ranging from 2 to 10 years.
Withdrawals or transfers from a Guarantee Period Account prior to the end of the
specified term will receive Market Value Adjustment which may result in a gain
or loss of principal.
IRA Contract
A contract used in or under a retirement plan or program that is intended to
qualify as an Individual Retirement Annuity under Section 408(b) of the Code.
IRA Required Minimum Distributions
The minimum distributions Code Section 408(b)(3) requires to be distributed from
an IRA, beginning not later than the April 1 following the calendar year you
reach age 70 1/2 (Required Beginning Date).
Market Value Adjustment
A positive or negative adjustment assessed if any portion of a Guarantee Period
Account is withdrawn or transferred prior to the end of its guaranteed period.
Nonqualified Contract
A contract used primarily for retirement purposes that is not intended to
qualify as an IRA contract.
Retirement Date
The date shown under Contract Data on which annuity payments are to begin. This
date may be changed as provided in this contract. You will be notified prior to
the retirement date in order to select an appropriate annuity payment plan.
Valuation Date
A valuation date is each day the New York Stock Exchange is open for trading.
Valuation Period
A valuation period is the interval of time commencing at the close of business
on each valuation date and ending at the close of business on the next valuation
date.
Variable Account
Consists of separate subaccounts to which you may allocate purchase payments and
contract values; each invests in shares of one fund. The value of your
investment in each subaccount changes with the performance of the particular
fund.
Variable Annuity
A variable annuity is an annuity with payments which are not predetermined or
guaranteed as to dollar amount and vary in amount with the investment experience
of one or more of the variable subaccounts.
We, Us, Our
American Enterprise Life Insurance Company
Written Request
A request in writing signed by you and delivered to us at our administrative
office.
You, Your
The owner of this contract. In a non-qualified contract, the owner may be
someone other than the annuitant. The owner is shown in the application unless
the owner has been changed as provided in this contract.
General Provisions
Entire Contract
This contract form, any endorsements or riders and the copy of the application
attached to it are the entire contract between you and us.
No one except one of our corporate officers (President, Vice President,
Secretary or Assistant Secretary) can change or waive any of our rights or
requirements under this contract. That person must do so in writing. None of our
other representatives or other persons has the authority to change or waive any
of our rights or requirements under this contract.
Annuity Tax Qualification
This contract is intended to qualify as an annuity contract under Section 72 of
the Code for federal income tax purposes. To that end, the provisions of this
contract are to be interpreted to ensure or maintain such tax-qualification,
notwithstanding any other provisions to the contrary.
Contract Modification
We reserve the right to modify this contract to the extent necessary to:
1. qualify this contract as an annuity contract under Section 72 of the
Code and all related laws and regulations which are in effect during
the term of this contract; and
2. if this contract is purchased as an IRA contract, to qualify this
contract as such an IRA contract under Section 408 of the Code and all
related laws and regulations which are in effect during the term of
this contract.
We will obtain any necessary approval of any regulatory authority for the
modifications.
Incontestable
This contract is incontestable from its date of issue.
Benefits Based on Incorrect Data
Payments under the contract will be based on the annuitant's birthdate and sex.
If the annuitant's birthdate or sex or your birthdate has been misstated,
payments under this contract will be adjusted. They will be based on what would
have been provided at the correct birthdate and sex. Any underpayments made by
us will be made up immediately. Any overpayments made by us will be subtracted
from the future payments.
State Laws
This contract is governed by the law of the state in which it is delivered. The
values and benefits of this contract are at least equal to those required by
such state. Any paid up annuity, cash withdrawal or death benefits available
under the contract are not less than the minimum benefits required by any
statute of the state in which the contract is delivered.
Reports to Owner
At least once a year we will send you a statement showing the contract value and
the cash withdrawal value of this contract. This statement will be based on any
laws or regulations that apply to contracts of this type.
Evidence of Survival
Where any payments under this contract depend on the recipient or annuitant
being alive on a certain date, proof that such condition has been met may be
required by us. Such proof may be required prior to making the payments.
Protection of Proceeds
Payments under this contract are not assignable by any beneficiary prior to the
time they are due. To the extent allowed by law, payments are not subject to the
claims of creditors or to legal process.
Payments by Us
All sums payable by us are payable at our administrative office. Any payment or
withdrawal from a variable annuity is based on the variable contract value.
Voting Rights
So long as federal law requires, we will give certain voting rights to
contractowners. As contractowner, if you have voting rights we will send a
notice to you telling you the time and place of a shareholder meeting. The
notice will also explain matters to be voted upon and how many votes you get.
Ownership and Beneficiary
Owner Rights
As long as the annuitant is living and unless otherwise provided in this
contract, you may exercise all rights and privileges provided in this contract
or allowed by us.
If this is an IRA contract, you shall be the annuitant, and during your life you
will have the sole and absolute power to receive and enjoy all rights under the
contract. Your entire interest is nonforfeitable. Joint ownership is not
permitted.
Change of Ownership
If this is an IRA contract, your right to change the ownership is restricted.
This contract may not be sold, assigned, transferred, discounted or pledged as
collateral for a loan or as security for the performance of an obligation or for
any other purpose to any person other than as may be required or permitted under
Section 408 of the Code, or under any other applicable section of the Code. Your
interest in this contract may be transferred to your former spouse, if any,
under a divorce decree or a written instrument incidental to such divorce.
If this is a nonqualified contract, you may change the ownership.
Any change of ownership as provided above must be made by written request on a
form approved by us. The change must be made while the annuitant is living. Once
the change is recorded by us, it will take effect as of the date of your
request, subject to any action taken or payment made by us before the recording.
Beneficiary
Beneficiaries are those you have named in the application or later changed as
provided below, to receive benefits of this contract if you or the annuitant die
while this contract is in force.
Only those beneficiaries who are living when death benefits become payable may
share in the benefits, if any. If no beneficiary is then living, we will pay the
benefits to you, if living, otherwise to your estate.
Change of Beneficiary
You may change the beneficiary anytime while the annuitant is living by
satisfactory written request to us. Once the change is recorded by us, it will
take effect as of the date of your request, subject to any action taken or
payment made by us before the recording.
Assignment
If this is an IRA contract, you may not assign this contract as collateral.
If this is a nonqualified contract, you can assign this contract or any interest
in it while the annuitant is living. Your interest and the interest of any
beneficiary is subject to the interest of the assignee. An assignment is not a
change of ownership and an assignee is not an owner as these terms are used in
this contract. Any amounts payable to the assignee will be paid in a single sum.
A copy of any assignment must be submitted to us at our administrative office.
Any assignment is subject to any action taken or payment made by us before the
assignment was recorded at our administrative office. We are not responsible for
the validity of any assignment.
Payments to Beneficiary
Death Benefits Before Annuitization
A death benefit is payable to the beneficiary upon the earlier death of you or
the annuitant while this contract is in force and prior to annuitization.
We will pay the beneficiary the greatest of the following amounts, less any
purchase payment credits that have not vested;
1. the contract value; or
2. the total payments and purchase payment credits made to the contract
minus adjustments for partial withdrawals; or
3. the highest contract value on any prior contract anniversary before
either your or the annuitant's 81st birthday, plus any purchase
payments and purchase payment credits made since that contract
anniversary and less any "adjustments for partial withdrawals" since
that contract anniversary. After either your or the annuitant's 81st
birthday, this value will only change due to additional payments and
purchase payment credits or "adjustments for partial withdrawals".
Adjustments for Partial Withdrawals
Adjustments for partial withdrawals are calculated for each partial withdrawal
as the product of (a) times (b) where:
(a) is the ratio of the amount of the partial withdrawal (including any
withdrawal charges) to the contract value on the date of (but prior
to) the partial withdrawal; and
(b) is the death benefit on the date of (but prior to) the partial
withdrawal.
Any amounts payable or applied by us as described in the sections below will be
based on the contract values as of the valuation date on or next following the
date on which due proof of death is received at our administrative office.
Payment of Nonqualified Contract Death Benefit Before Annuitization
The above death benefit will be payable in a lump sum upon the receipt of due
proof of death of you or the annuitant, whichever first occurs. The beneficiary
may elect to receive payment any time within five years after the date of death.
The above death benefit will also be made upon the first to die if ownership is
in a joint tenancy except where spouses are joint owners with right of
survivorship and the surviving joint spouse elects to continue the contract.
In lieu of a lump sum, payments may be made under an Annuity Payment Plan,
provided:
1. the beneficiary elects the plan within 60 days after we receive due
proof of death; and
2. the plan provides payments over a period which does not exceed the life
or life expectancy of the beneficiary; and
3. payments must begin no later than one year after the date of death.
For Annuity Payment Plans, the reference to "annuitant" in the Annuity
Provisions shall apply to the beneficiary.
Payment of IRA Contract Death Benefit Before Annuitization
The above death benefit will be payable in a lump sum upon the receipt of due
proof of death. Under tax law, distributions are considered to have begun if
they are made when you reach your IRA required beginning date or if you have
annuitized according to applicable Treasury Regulations.
If distributions from your IRA have begun but you have not annuitized before
your death, your beneficiary must continue using the same method, or a faster
method, than you were using for your required minimum distributions, to receive
the death benefit.
If distributions from your IRA have not begun and you have not annuitized before
your death, your beneficiary may take one or more distributions so that the
entire death benefit is received within five years of the year in which your
death occurs. In lieu of taking payments within five years, payments may be made
under an Annuity Payment Plan, provided:
1. the beneficiary elects the plan within 60 days after we receive due
proof of death; and
2. the plan provides payments over a period which does not exceed the life
or life expectancy of the beneficiary; and
3. payments must begin no later than one year after the year your death
occurs, in the case of a non-spouse beneficiary, or by December 31 of
the year in which you would have turned age 701/2, in the case of a
spouse beneficiary.
Payment amounts, durations and life expectancy calculations must comply with
Section 401(a)(9) of the Code and regulations thereunder.
For purposes of the foregoing provisions, life expectancy and joint and last
survivor expectancy shall be determined by use of the expected return multiples
in Table V and VI of Treasury Regulation Section 1.72-9 in accordance with Code
Section 408(b)(3) and the regulations thereunder. Life expectancy will be
initially determined on the basis of your beneficiary's attained age in the year
distributions are required to commence. Unless you (or your spouse) elects
otherwise prior to the time distributions are required to commence, your life
expectancy and, if applicable, your spouse's life expectancy will be
recalculated annually based on your attained ages in the year for which the
required distribution is being determined. The life expectancy of a nonspouse
beneficiary will not be recalculated. Instead, life expectancy will be
calculated using the attained age of such beneficiary during the calendar year
in which the individual attains age 701/2, and payments for subsequent years
shall be calculated based on such life expectancy reduced by one for each
calendar year which has elapsed since the calendar year life expectancy was
first calculated.
You or your beneficiary, as applicable, shall have the sole responsibility for
requesting a distribution that complies with this Contract and applicable law.
For Annuity Payment Plans, the reference to "annuitant" in the Annuity
Provisions shall apply to the beneficiary.
Spouse's Option to Continue Contract
For nonqualified contracts: If you die prior to annuitization and your spouse is
the sole beneficiary or co-owner of the contract, your spouse may keep the
contract in force as owner and may make additional purchase payments to the
contract.
For IRA contracts: If you die prior to your required beginning date and your
spouse is the sole beneficiary, your spouse may keep the contract in force as
his or her own IRA. As owner, your spouse may make additional payments to the
contract. As owner, your spouse's life will determine the IRA required beginning
date and minimum distribution amounts. If you die after your required beginning
date, spousal continuation of this contract is not available.
Election by the spouse to continue the contract must be made by written request
within 60 days after we receive proof of death. Upon such continuation the
contract value shall be equal to the death benefit that would otherwise have
been paid. Withdrawal charges under the continued contract shall only apply to
additional purchase payments.
Death After Annuitization
If you or the annuitant die after annuitization, the amount payable to the
beneficiary, if any, will be as provided in the Annuity Payment Plan then in
effect.
Purchase Payments
Purchase Payments Purchase payments are the payments you make for this contract
and the benefits it provides. Purchase payments must be paid or mailed to us at
our administrative office or to an authorized agent. If requested, we'll give
you a receipt for your purchase payments.
Additional Purchase Payments
Additional purchase payments may be made until the earlier of:
1. the date this contract terminates by withdrawal or otherwise; or
2. the date on which annuity payments begin.
Additional purchase payments are subject to the "Payment Limits Provision"
below.
Payment Limits Provision
Maximum Purchase Payments -- The maximum total contract purchase payments may
not exceed the amounts shown under Contract Data. We reserve the right to
increase the maximums.
Additional Purchase Payments -- You may make additional purchase payments of at
least $100.
In addition, if this is an IRA contract, except as otherwise provided in this
paragraph, the total purchase payments for any taxable year may not exceed
$2,000 or as otherwise provided in the Code and all related laws and regulations
which are in effect during the term of this contract. In the case of a rollover
contribution described in Sections 402(c), 403(a)(4), 403(b)(8) or 408(d)(3) of
the Code, there is no limit on the amount of your purchase payment.
No contribution will be accepted under a SIMPLE plan established by any employer
pursuant to Code Section 408(p). No transfer or rollover of funds attributable
to contributions made by a particular employer under its SIMPLE plan will be
accepted from a SIMPLE IRA prior to the expiration of the two-year period
beginning on the date the individual first participated in that employer's
SIMPLE plan.
You shall have the sole responsibility for determining whether purchase payments
meet applicable income tax requirements.
All purchase payments must be made in cash. If you die before the entire
interest in this contract has been distributed to you, and your beneficiary is
other than your surviving spouse, no additional purchase payments will be
accepted from your beneficiary under this contract.
Allocation of Purchase Payments
You instruct us on how you want your purchase payments allocated among the fixed
account(s) and variable subaccounts. Your choice for the fixed account(s) and
each variable subaccount may be made in any whole percent from 0% to 100%. Your
allocation instructions as of the contract date are shown under Contract Data.
We reserve the right to limit the maximum number of accounts and/or subaccounts
to which you can allocate purchase payments or contract value at any time.
If purchase payments are allocated to a Guarantee Period Fixed Account, the
period you select will determine the guaranteed interest rate applicable that
will be payable for the Guarantee Period.
By written request, or by another method agreed to by us, you may change your
choice of accounts or percentages. The first net purchase payment will be
allocated as of the end of the valuation period during which we make an
affirmative decision to issue this contract. Net purchase payments after the
first will be allocated as of the end of the valuation period during which we
receive the payment at our administrative office.
Purchase Payment Credits
We apply an additional purchase payment credit to your contract value for all
net purchase payments you make to this contract. The purchase payment credit is
a percentage of each net purchase payment which is the purchase payment less the
amount of partial withdrawals that exceed all prior purchase payments. The
percentage depends on the amount of cumulative purchase payments under the
contract less partial withdrawals as shown under Contract Data.
If an additional purchase payment causes the contract as a whole to be eligible
for a greater percentage credit, an additional credit on prior purchase
payments, less any partial withdrawals, will be allocated on the date of the
additional purchase payment. Such additional credit is calculated to bring the
credit percentage on all prior net purchase payments to the current level.
Purchase payment credits will be allocated to the contract value according to
your then-existing purchase payment allocation instructions.
Any partial withdrawal reduces the cumulative net purchase payments used as the
basis of the credits on a last-in, first-out basis. Purchase payment credits are
vested as indicated under Contract Data.
Contract Value
Contract Value
The contract value at any time is the sum of:
1. the fixed account(s) contract value; and
2. the variable account contract value.
If:
1. part or all of the contract value is withdrawn; or
2. charges described herein are made against the contract value;
then a number of accumulation units from the variable subaccounts and an amount
from the fixed account(s) will be deducted to equal such amount. For
withdrawals, deductions will be made from the fixed account(s) or variable
subaccounts that you specify. Otherwise, the number of units from the variable
subaccounts and the amount from the fixed account(s) will be deducted in the
same proportion that your interest in each bears to the total contract value.
Variable Account Contract Value
The variable account contract value at any time will be:
1. the sum of the value of all variable subaccount accumulation units
under this contract resulting from purchase payments and any purchase
payment credits so allocated, or transfers among the variable and fixed
accounts; less
2. the value of any units deducted for charges or withdrawals.
Fixed Account Contract Value
The Fixed Account is comprised of the One Year Fixed Account and the Guarantee
Period Accounts.
The fixed account contract value at any time will be:
1. the sum of all purchase payments and any purchase payment credits
allocated to the fixed account(s), plus interest credited; plus
2. any amounts transferred to the fixed account(s) from any variable
subaccount, plus interest credited; less
3. any amounts transferred from the fixed account(s) to any variable
subaccount; less
4. any amounts deducted for charges, market value adjustments or
withdrawals.
Interest to be Credited
We will credit interest to the fixed account contract value. Interest will begin
to accrue daily on the date the purchase payments which are received in our
administrative office become available for us to use. Such interest will be
credited at rates that we determine from time to time. However, we guarantee
that the rate will not be less than a 3% effective annual interest rate.
Contract Administrative Charge
We charge a fee for establishing and maintaining our records for this contract.
The charge is $30 per year and is deducted from the contract value at the end of
each contract year. The charge deducted will be prorated among the variable
subaccounts, the one-year fixed account and guarantee period accounts in the
same proportion your interest in each bears to the total contract value.
We waive the annual contract administrative charge for any contract year where
the contract value immediately prior to the deduction of the contract
administrative charge is $50,000 or more.
If you make a full withdrawal of this contract, we deduct the full $30 contract
administrative charge at the time of full withdrawal regardless of contract
value.
The charge does not apply at or after annuitization of this contract or at the
time a death benefit is paid.
Premium Tax Charges
We reserve the right to assess a charge against the contract value of this
contract for any applicable premium tax assessed to us by a state or local
government. This charge could be deducted when you make purchase payments, or
make a full withdrawal of the contract value or at the time of annuitization.
Transfers of Contract Values
While this contract is in force prior to annuitization, transfers of contract
values may be made as outlined below.
1. You may transfer all or a part of the values held in one or more of the
variable subaccounts to another one or more of the variable
subaccounts. Subject to Item 2, you may also transfer values held in
one or more of the variable subaccounts to the fixed account.
2. On or within the 30 days before or after a contract anniversary you may
transfer values from the one-year fixed account to one or more of the
variable subaccounts or Guarantee Period Accounts. If such a transfer
is made, no transfers from any variable subaccount to the one-year
fixed account may be made for six months after such a transfer.
3. You may transfer values from your Guarantee Period Accounts to other
accounts at any time. Any transfer prior to the end of the applicable
guarantee period will be subject to a market value adjustment.
You may make a transfer by written request. Telephone transfers may also be made
according to telephone procedures that are then currently in effect, if any.
There is no fee or charge for these transfers. However, the minimum transfer
amount is $500, or if less, the entire value in the subaccount or in the fixed
account(s) from which the transfer is being made, or other such minimum amounts
agreed to by us.
We may suspend or modify transfer privileges at any time. The right to transfer
contract values between the subaccounts is also subject to modification if we
determine, in our sole discretion, that the exercise of that right by one or
more contract owners is, or would be, to the disadvantage of other contract
owners. Any modification could be applied to transfers to or from some or all of
the subaccounts. These modifications could include, but not be limited to, the
requirements of a minimum time period between each transfer, not accepting
transfer requests of an agent acting under a power of attorney on behalf of more
than one contract owner or limiting the dollar amount that may be transferred
between the subaccounts and the fixed account by a contract owner at any one
time. We may apply these modifications or restrictions in any manner reasonably
designed to prevent any use of the transfer right we consider to be to the
disadvantage of other contract owners.
Dollar Cost Averaging Program
You may authorize the transfer of an amount, at the interval selected by you,
from the DCA Fixed Account Option to any variable subaccount. All amounts that
are allocated to a DCA Fixed Account Option will be transferred out in specified
amounts within the specified DCA Fixed Account period from either the one-year
Fixed Account or the 2-year Guarantee Period Account (without market value
adjustment). The values credited and applied to your contract are determined on
each date of transfer. You may terminate the DCA Fixed Account Option at any
time. Upon termination any amount remaining in the DCA Fixed Account Option will
be transferred to the one-year Fixed Account. We reserve the right to change the
terms and conditions of the DCA program at any time.
Fixed and Variable Accounts
The Fixed Account
The fixed account is comprised of the One Year Fixed Account and the Guarantee
Period Accounts.
One Year Fixed Account
The One Year Fixed Account is our general account. It is made up of all our
assets other than those in:
1. The Variable Account; and
2. Any other segregated asset accounts, including the Guarantee Period Accounts.
We back the principal and interest guarantees relating to the One Year Fixed
Account. Purchase payments and transfers to the One Year Fixed Account become
part of our general account.
Guarantee Period Accounts
The Guarantee Period Accounts are part of a "nonunitized" segregated asset
account (Separate Account). We have established the separate account for the
purpose of facilitating accounting and investment processes we undertake in
offering guaranteed interest for periods you can select ranging from 2 to 10
years. This separate account may not be charged with liabilities from any other
separate account or our general account. We back the principal and interest
guarantees relating to the Guarantee Period Accounts. The minimum investment in
any Guarantee Period Account is $1,000.
The Variable Account
The variable account is a separate investment account of ours. It consists of
several subaccounts which are named under Contract Data. We have allocated a
part of our assets for this and certain other contracts to the variable account.
Such assets remain our property. However, they may not be charged with the
liabilities from any other business in which we may take part.
Investments of the Variable Account
Purchase payments applied to the variable account will be allocated as specified
by the owner. Each variable subaccount will buy, at net asset value, shares of
the fund shown for that subaccount under Contract Data or as later added or
changed.
We may change the funds the variable subaccounts buy shares from if laws or
regulations change, the existing funds become unavailable or, in the judgment of
American Enterprise Life, the funds are no longer suitable for the subaccounts.
We have the right to substitute any funds for those shown under Contract Data,
including funds other than those shown under Contract Data.
We may also:
o add new subaccounts,
o combine any two or more subaccounts,
o make additional subaccounts investing in additional funds,
o transfer assets to and from the subaccounts or the variable account, and
o eliminate or close any subaccounts.
We would first seek approval of the Securities and Exchange Commission if
necessary, and, where required, the insurance regulator of the state where this
contract is delivered.
Valuation of Assets
Fund shares in the variable subaccounts will be valued at their net asset value.
Variable Account Accumulation Units
The number of accumulation units for each of the variable subaccounts is found
by adding the number of accumulation units resulting from:
1. purchase payments and any purchase payment credits allocated to the
subaccount; and
2. transfers to the subaccount;
and subtracting the number of accumulation units resulting from:
1. transfers from the subaccount; and
2. withdrawals (including withdrawal and other charges) from the
subaccount; and
3. contract administrative charge or any rider charge deductions
from the subaccount.
The number of accumulation units added or subtracted for each of the above
transactions is found by dividing (1) by (2) where:
1. is the amount allocated to or deducted from the subaccount; and
2. is the accumulation unit value for the subaccount for the respective
valuation period during which we received the purchase payment or
transfer value, or during which we deducted transfers, withdrawals,
withdrawal or other charges or contract administrative charges.
Variable Account Accumulation Unit Value
The value of an accumulation unit for each of the variable subaccounts was set
at $1 when the first fund shares were bought. The value for any later valuation
period is found as follows:
The accumulation unit value for each variable subaccount for the last prior
valuation period is multiplied by the net investment factor for the same
subaccount for the next following valuation period. The result is the
accumulation unit value. The value of an accumulation unit may increase or
decrease from one valuation period to the next.
Net Investment Factor
The net investment factor is an index applied to measure the investment
performance of a variable subaccount from one valuation period to the next. The
net investment factor may be greater or less than one; therefore, the value of
an accumulation or annuity unit may increase or decrease.
The net investment factor for any such subaccount for any valuation period is
determined by: dividing (1) by (2) and subtracting (3) and (4) from the result.
This is done where:
1. is the sum of:
a. the net asset value per share of the fund held in the variable
subaccount determined at the end of the current valuation period; plus
b. the per share amount of any dividend or capital gain distribution made
by the fund held in the variable subaccount, if the "ex-dividend" date
occurs during the current valuation period; and
2. is the net asset value per share of the fund held in the variable
subaccount, determined at the end of the last prior valuation period;
and
3. is a factor representing the mortality and expense risk charge; and
4. is a factor representing the variable account administrative charge.
Mortality and Expense Risk Charge
In calculating unit values we will deduct a mortality and expense risk charge
from the variable subaccounts. Based on the benefits you elected, the charge
ranges from 1.10% to 1.55% on an annual basis of the daily net asset value of
the subaccounts. The mortality and expense risk for your contract is shown under
Contract Data. This deduction is made to compensate us for assuming the
mortality and expense risks under contracts of this type. We estimate that
approximately 2/3 of this charge is for assumption of mortality risk and 1/3 is
for assumption of expense risk. The deduction will be:
1. made from each variable subaccount; and
2. computed on a daily basis.
Variable Account Administrative Charge
In calculating unit values, we will deduct a variable account administrative
charge from the variable subaccounts equal, on an annual basis, to 0.15% of the
daily net asset value. This deduction is made to compensate us for certain
administrative and operating expenses for contracts of this type. The deduction
will be:
1. made from each variable subaccount; and
2. computed on a daily basis.
Annuity Unit Value
The value of an annuity unit for each variable subaccount was arbitrarily set at
$1 when the first fund shares were bought. The value for any later valuation
period is found as follows:
1. the annuity unit value for each variable subaccount for the last prior
valuation period is multiplied by the net investment factor for the
subaccount for the valuation period for which the annuity unit value is
being calculated.
2. the result is multiplied by an interest factor. This is done to
neutralize the assumed investment rate which is built into the annuity
tables on Page 17.
Withdrawal Provisions
Withdrawal
By written request and subject to the rules below you may:
1. withdraw this contract for the total withdrawal value; or
2. partially withdraw this contract for a part of the withdrawal value.
Rules for Withdrawal
All withdrawals will have the following conditions.
1. You must apply by written request or other method agreed to by us:
a. while this contract is in force; and
b. prior to the earlier of beginning an annuity payment plan or
the death of the annuitant or owner.
2. You must withdraw an amount equal to at least $500. Each variable
subaccount value and the fixed account value after a partial withdrawal
must be either $0 or at least $50.
3. The amount withdrawn, less any charges, will normally be mailed to you
within seven days of the receipt of your written request and this
contract, if required.
For withdrawals from the fixed account, we have the right to defer
payment to you for up to six months from the date we receive your
request.
4. For partial withdrawals, if you do not specify from which account the
withdrawal is to be made, the withdrawal will be made from the variable
subaccounts and the fixed account(s) in the same proportion as your
interest in each bears to the contract value.
5. Any amounts withdrawn and charges which may apply cannot be repaid.
Upon withdrawal for the full withdrawal value this contract will terminate. We
may require that you return the contract to us before we pay the full withdrawal
value.
Withdrawal Value
The withdrawal value at any time will be:
1. the contract value;
2. plus or minus any applicable market value adjustment;
3. minus the full $30 contract administrative charge;
4. minus any withdrawal charge;
5. minus any purchase payment credits that have not vested as indicated under
Contract Data.
Withdrawal Charge
If you withdraw all or a part of your contract, you may be subject to a
withdrawal charge. A withdrawal charge applies if all or a part of the contract
value you withdraw is from payments received that are still in the withdrawal
charge period indicated under Contract Data. Refer to Waiver of Withdrawal
Charges for situations when withdrawal charges are not deducted.
We determine your withdrawal charge by multiplying each of your payments
withdrawn by the applicable withdrawal charge percentage, and then totalling the
withdrawal charges.
For a partial withdrawal that is subject to a withdrawal charge, the amount we
actually withdraw from your contract value will be the amount you request plus
any applicable withdrawal charge. The withdrawal charge is applied to this total
amount. We pay you the amount you requested.
The withdrawal charge percentage depends upon the number of years since you made
the payment(s) withdrawn as shown under Contract Data.
Market Value Adjustment
With respect to the Guarantee Period Accounts, any amount withdrawn, transferred
or annuitized prior to the end of that guarantee period may be subject to a
Market Value Adjustment. The Market Value Adjustment will be calculated by
multiplying the amount withdrawn, transferred or annuitized by the formula
described below:
Amount x ( 1 + i ) n/12
-----------------------
( 1 + j + .001 )
Where: i = rate earned in the account from which funds are being
transferred
j = current rate for a new Guarantee Period equal to the
remaining term in the current Guarantee Period
n = number of months remaining in the current Guarantee Period
(rounded up)
There will be no Market Value Adjustment on withdrawals from Guarantee Period
Account(s) in the following situations: (1) Death Benefit; (2) amounts withdrawn
to pay fees or charges; (3) amounts withdrawn from the Guarantee Period
Account(s) within 30 days after the end of the Guarantee Period; and (4) on
amounts transferred from the DCA Fixed Account(s) Option.
Waiver of Withdrawal Charges
Withdrawal charges are waived for all of the following.
1. In each contract year, the greater of:
a. Withdrawals during the year totaling up to 10% of your prior contract
anniversary contract value, or
b. Contract earnings. ("Contract earnings" is defined as the contract
value less purchase payments not previously withdrawn.)
2. Withdrawals made if both you and the annuitant were under age 76 on the
contract date, and you provide proof satisfactory to us that, as of the
date you request the withdrawal, you or the annuitant are confined to a
hospital or nursing home, and have been for the prior 60 days.
To qualify, the nursing home must:
a. be licensed by an appropriate licensing agency to
provide nursing services; and
b. provide 24-hour-a-day nursing services; and
c. have a doctor available for emergency situations; and
d. have a nurse on duty or call at all times; and
e. maintain clinical records; and
f. have appropriate methods for administering drugs.
3. Withdrawal charges are waived if you or the annuitant are diagnosed in
the second or later contract years as disabled with a medical condition
that with reasonable medical certainty will result in death within 12
months or less from the date of the licensed physician's statement. You
must provide us with a licensed physician's statement containing the
terminal illness diagnosis and the date the terminal illness was
initially diagnosed.
4. IRA required minimum distributions, for those amounts required to be
distributed from this contract only.
5. Annuity payment plan payments.
6. Payments made in the event of the death of the owner or annuitant.
Withdrawal Order
We use this order to determine withdrawal charges.
1. First, withdrawals up to 10% of your prior contract anniversary
contract value not previously withdrawn during this contract year. (No
withdrawal charge.)
2. Next, withdrawals are from amounts representing contract earnings - if
any - in excess of the annual 10% free withdrawal amount. In the first
contract year, amounts representing contract earnings - if any - shall
be withdrawn first. (No withdrawal charge.)
3. Next, withdrawals are from purchase payments received
prior to the withdrawal charge period shown in the schedule under
contract Data, and not previously withdrawn. (No withdrawal charge.)
4. Last, withdrawals are from purchase payments received that are still
within the withdrawal charge period shown in the schedule under
Contract Data. We withdraw these payments on a "first-in, first-out"
(FIFO) basis. There is a withdrawal charge on these payments.
Suspension or Delay in Payment of Withdrawal
We have the right to suspend or delay the date of any withdrawal payment from
the variable subaccounts for any period:
1. when the New York Stock Exchange is closed; or
2. when trading on the New York Stock Exchange is restricted; or
3. when an emergency exists as a result of which:
a. disposal of securities held in the variable subaccounts is not
reasonably practical; or
b. it is not reasonably practical to fairly determine the value of the
net assets of the variable subaccounts; or
4. during any other period when the Securities and Exchange Commission, by
order, so permits for the protection of security holders.
Rules and regulations of the Securities and Exchange Commission will govern as
to whether the conditions set forth in 2 and 3 exist.
Annuity Provisions
Annuitization
When annuitization occurs, the contract value, less any applicable Market Value
Adjustment will be applied to make annuity payments. The first payment will be
made as of the retirement date. This date is shown under Contract Data. Before
payments begin we will require satisfactory proof that the annuitant is alive.
We may also require that you exchange this contract for a supplemental contract
which provides the annuity payments.
Change of Retirement Date
You may change the retirement date shown for this contract. Tell us the new date
by written request. If you select a new date, it must be at least 30 days after
we receive your written request at our administrative office.
The maximum retirement date on an IRA contract is the later of:
1. the April 1 following the calendar year in which the annuitant attains
age 70 1/2; or
2. such other date which satisfies the minimum distribution requirements
under the Code, its regulations, and/or promulgations by the Internal
Revenue Service; or
3. such other date as agreed upon by us.
Notwithstanding the above, and for all nonqualified contracts, the maximum
retirement date is the later of:
1. the annuitant's 85th birthday; or
2. the 10th contract anniversary.
Annuity Payment Plans
Annuity payments may be made on a fixed dollar basis, a variable basis or a
combination of both. You can schedule receipt of annuity payments according to
one of the Plans A through E below or another plan agreed to by us.
If this is an IRA, payment amounts, durations and life expectancy calculations
must comply with Section 401(a)(9) of the Code and the Regulations thereunder
and generally must:
1. provide for payments over your life or over your and your beneficiary's
lives; or
2. provide for payments over a period which does not exceed your life
expectancy and/or the life expectancy of you and your beneficiary; and
3. meet the minimum incidental death benefit requirements under the Code
and all related laws and regulations which are then in effect.
The rules described in the "Payment of IRA Contract Death Benefit Before
Annuitization" section for determining life expectancy will apply in determining
the amount of these distributions, except that the life expectancy of you and
your beneficiary will be initially determined on the basis of your attained ages
in the year you reach 701/2.
IRA annuity payments must be nonincreasing, or may increase only for a variable
life annuity as provided in Treasury Regulation Section 1.401(a)(9)-1, Q&A F-3.
An appropriate annuity payment plan is intended to satisfy the following
requirements that otherwise apply: the annual distribution required to be made
by your IRA required beginning date is for the calendar year in which you
reached age 70 1/2; annual payments for subsequent years, including the year in
which your IRA required beginning date occurs, must be made by December 31 of
that year.
You shall have the sole responsibility for electing an annuity payment plan that
complies with this Contract and applicable law.
Plan A -- This provides monthly annuity payments during the lifetime of the
annuitant. No payments will be made after the annuitant dies.
Plan B -- This provides monthly annuity payments during the lifetime of the
annuitant with a guarantee by us that payments will be made for a period of at
least five, 10 or 15 years. You must select the guaranteed period.
Plan C --This provides monthly annuity payments during the lifetime of the
annuitant with a guarantee by us that payments will be made for a certain number
of months. We determine the number of months by dividing the amount applied
under this plan by the amount of the first monthly annuity payment.
Plan D -- Monthly annuity payments will be paid during the lifetime of the
annuitant and joint annuitant. When either the annuitant or the joint annuitant
dies we will continue to make monthly payments during the lifetime of the
survivor. No payments will be made after the death of both the annuitant and
joint annuitant.
Plan E -- This provides monthly annuity payments for a period of years. The
period of years may be no less than 10 nor more than 30.
You may select the plan by written request to us at least 30 days before the
retirement date. If at least 30 days before the retirement date we have not
received at our administrative office your written request to select a plan, we
will make payments according to Plan B with payments guaranteed for 10 years.
If the amount to be applied to a plan would not provide a monthly payment of at
least $20, we have the right to change the frequency of the payment or to make a
lump sum payment of the contract value.
Allocation of Contract Values at Annuitization
At the time of annuitization under an Annuity Payment Plan, you may reallocate
your contract value to the One Year Fixed Account to provide fixed dollar
payments and/or among the variable subaccounts, to provide variable annuity
payments. We reserve the right to limit the number of variable subaccounts used
at any one time during annuitization. The Guarantee Period Accounts are not
available after annuitization.
Fixed Annuity
A fixed annuity is an annuity with payments that are guaranteed by us as to
dollar amount. Fixed annuity payments remain the same. At annuitization the
fixed account contract value will be applied to the applicable Annuity Table.
This will be done in accordance with the payment plan chosen. The minimum amount
payable for each $1,000 so applied is shown in Table B on Page 18.
Variable Annuity
A variable annuity is an annuity with payments which:
1. are not predetermined or guaranteed as to dollar amount; and
2. vary in amount with the investment experience of the variable subaccounts.
Determination of the First Variable Annuity Payment
At annuitization, the variable account contract value will be applied to the
applicable Annuity Table. This will be done:
1. on the valuation date on or next preceding the seventh calendar day
before the retirement date; and
2. in accordance with the payment plan chosen. The amount payable for the
first payment for each $1,000 so applied is shown in Table A on Page
18.
Variable Annuity Payments After the First Payment
Variable annuity payments after the first payment vary in amount. The amount
changes with the investment performance of the variable subaccounts. The dollar
amount of variable annuity payments after the first is not fixed. It may change
from month to month. The dollar amount of such payments is determined as
follows.
1. The dollar amount of the first annuity payment is divided by the value
of an annuity unit as of the valuation date on or next preceding the
seventh calendar day before the retirement date. This result
establishes the number of annuity units for each monthly annuity
payment after the first payment. This number of annuity units remains
fixed during the annuity payment period.
2. The fixed number of annuity units is multiplied by the annuity unit
value as of the valuation date on or next preceding the seventh
calendar day before the date the payment is due. The result establishes
the dollar amount of the payment.
We guarantee that the dollar amount of each payment after the first will not be
affected by variations in expenses or mortality experience.
Exchange of Annuity Units
After annuity payments begin, annuity units of any variable subaccount may be
exchanged for units of any of the other variable subaccounts. This may be done
no more than once a year. We reserve the right to limit the number of variable
subaccounts used at any one time. Once annuity payments start no exchanges may
be made to or from any fixed annuity.
Tables of Annuity Rates
Table A below shows the amount of the first monthly variable annuity payment,
based on a 5% assumed investment return, for each $1,000 of value applied under
any payment plan. The amount of the first and all subsequent monthly fixed
dollar annuity payments for each $1,000 of value applied under any payment plan
will be based on our fixed dollar Table of Annuity Rates in effect at
annuitization. Such rates are guaranteed to be not less than those shown in
Table B. The amount of such annuity payments under Plans A, B and C will depend
upon the sex and age of the annuitant at annuitization. The amount of such
annuity payments under Plan D will depend upon the sex and the age of the
annuitant and the joint annuitant at annuitization.
Table A - Dollar Amount of First Monthly Variable Annuity Payment
Per $1,000 Applied
Plan A Plan B Plan C Plan D
--------------------------------------------------------------------------------------------------------------------------
Age Life Income Life Income with Life Income Joint & Survivor
at Beginning Non-Refund Five Years Ten Years Fifteen Years Installment Non-Refund
Annui- In Certain Certain Certain Refund Male & Female
tization Year Male Female Male Female Male Female Male Female Male Female Same Age
Age 65 2005 6.49 5.85 6.44 5.83 6.29 5.77 6.06 5.66 6.13 5.67 5.34
2010 6.40 5.78 6.35 5.76 6.22 5.71 6.00 5.61 6.06 5.61 5.30
2015 6.31 5.72 6.27 5.70 6.15 5.65 5.95 5.56 6.00 5.56 5.25
2020 6.23 5.66 6.19 5.64 6.08 5.60 5.90 5.52 5.93 5.51 5.21
2025 6.15 5.60 6.12 5.59 6.01 5.54 5.84 5.47 5.88 5.47 5.18
2030 6.08 5.55 6.05 5.53 5.95 5.50 5.80 5.43 5.82 5.43 5.14
Age 70 2005 7.41 6.54 7.29 6.50 6.98 6.36 6.54 6.14 6.79 6.22 5.85
2010 7.28 6.45 7.17 6.41 6.88 6.28 6.48 6.08 6.70 6.15 5.78
2015 7.16 6.35 7.06 6.32 6.80 6.21 6.42 6.03 6.61 6.08 5.72
2020 7.04 6.27 6.95 6.24 6.71 6.14 6.37 5.97 6.53 6.01 5.66
2025 6.93 6.19 6.85 6.16 6.63 6.07 6.31 5.92 6.45 5.95 5.61
2030 6.83 6.11 6.76 6.09 6.55 6.01 6.26 5.87 6.38 5.90 5.56
Age 75 2005 8.67 7.58 8.42 7.47 7.78 7.15 7.02 6.70 7.65 6.99 6.59
2010 8.49 7.43 8.26 7.34 7.68 7.05 6.97 6.63 7.53 6.89 6.49
2015 8.32 7.30 8.11 7.21 7.58 6.96 6.91 6.57 7.42 6.80 6.40
2020 8.16 7.18 7.97 7.10 7.48 6.87 6.86 6.51 7.31 6.71 6.31
2025 8.00 7.06 7.83 6.99 7.38 6.78 6.81 6.46 7.21 6.62 6.24
2030 7.86 6.95 7.70 6.89 7.29 6.70 6.75 6.40 7.12 6.55 6.16
Age 85 2005 13.01 11.44 11.71 10.69 9.46 9.09 7.69 7.60 10.30 9.50 9.30
2010 12.65 11.12 11.48 10.45 9.38 9.00 7.67 7.58 10.11 9.32 9.09
2015 12.31 10.82 11.26 10.23 9.30 8.90 7.66 7.56 9.93 9.15 8.90
2020 11.99 10.55 11.04 10.02 9.22 8.80 7.64 7.53 9.76 9.00 8.72
2025 11.70 10.29 10.84 9.83 9.15 8.71 7.62 7.51 9.60 8.85 8.55
2030 11.42 10.06 10.64 9.64 9.07 8.62 7.61 7.48 9.45 8.72 8.40
Table A above is based on the "1983 Individual Annuitant Mortality Table A" with
100% Projection Scale G and a 5% assumed investment return. Annuity rates for
any year, age, or any combination of year, age and sex not shown above, will be
calculated on the same basis as those rates shown in the Table above. Such rates
will be furnished by us upon request. Amounts shown in the Table below are based
on a 5% assumed investment return.
Plan E - Dollar Amount of First Monthly Variable Annuity Payment
Per $1,000 Applied
------------------------------------------------------------------------------------------------------
Years Payable Monthly Payment Years Payable Monthly Payment Years Payable Monthly Payment
10 10.51 17 7.20 24 5.88
11 9.77 18 6.94 25 5.76
12 9.16 19 6.71 26 5.65
13 8.64 20 6.51 27 5.54
14 8.20 21 6.33 28 5.45
15 7.82 22 6.17 29 5.36
16 7.49 23 6.02 30 5.28
Table B - Dollar Amounts of Each Monthly Fixed Dollar Annuity Payment
Per $1,000 Applied
Plan A Plan B Plan C Plan D
------------------------------------------------------------------------------------------------------------------------
Settlement Life Income Life Income with Life Income Joint & Survivor
Beginning Non-Refund Five Years Ten Years Fifteen Years Installment Non-Refund
Settlement In Certain Certain Certain Refund Male & Female
Age Year Male Female Male Female Male Female Male Female Male Female Same Age
Age 65 2005 5.30 4.68 5.26 4.66 5.15 4.62 4.95 4.53 4.84 4.43 4.20
2010 5.21 4.61 5.17 4.60 5.07 4.55 4.89 4.48 4.77 4.38 4.15
2015 5.12 4.55 5.09 4.53 4.99 4.49 4.83 4.42 4.71 4.34 4.11
2020 5.04 4.48 5.01 4.47 4.92 4.44 4.77 4.38 4.66 4.29 4.07
2025 4.96 4.43 4.94 4.42 4.86 4.39 4.72 4.33 4.60 4.25 4.03
2030 4.89 4.37 4.87 4.37 4.79 4.34 4.67 4.29 4.55 4.21 3.99
Age 70 2005 6.21 5.38 6.12 5.35 5.87 5.24 5.48 5.05 5.45 4.97 4.74
2010 6.08 5.29 6.01 5.26 5.77 5.16 5.41 4.99 5.37 4.90 4.67
2015 5.96 5.20 5.89 5.17 5.68 5.08 5.35 4.93 5.29 4.84 4.61
2020 5.85 5.11 5.79 5.09 5.59 5.01 5.29 4.87 5.22 4.78 4.55
2025 5.75 5.03 5.69 5.01 5.51 4.94 5.23 4.82 5.15 4.72 4.49
2030 5.64 4.96 5.59 4.94 5.43 4.88 5.17 4.76 5.08 4.67 4.44
Age 75 2005 7.47 6.42 7.27 6.33 6.72 6.07 6.00 5.65 6.24 5.68 5.50
2010 7.29 6.28 7.11 6.20 6.61 5.97 5.94 5.59 6.14 5.60 5.40
2015 7.12 6.15 6.96 6.08 6.50 5.87 5.88 5.52 6.04 5.51 5.31
2020 6.96 6.03 6.82 5.97 6.40 5.78 5.83 5.46 5.95 5.43 5.23
2025 6.81 5.91 6.68 5.86 6.30 5.69 5.77 5.40 5.86 5.36 5.15
2030 6.67 5.81 6.55 5.76 6.21 5.60 5.72 5.34 5.77 5.29 5.08
Age 85 2005 11.77 10.25 10.64 9.60 8.51 8.12 6.73 6.64 8.66 7.97 8.24
2010 11.42 9.94 10.40 9.37 8.42 8.02 6.71 6.61 8.50 7.82 8.03
2015 11.09 9.65 10.18 9.15 8.34 7.91 6.70 6.59 8.35 7.68 7.84
2020 10.78 9.38 9.96 8.94 8.26 7.81 6.68 6.56 8.20 7.55 7.66
2025 10.49 9.14 9.75 8.74 8.18 7.72 6.66 6.54 8.06 7.42 7.50
2030 10.22 8.91 9.56 8.56 8.09 7.62 6.65 6.51 7.94 7.31 7.35
Table B above is based on the "1983 Individual Annuitant Mortality Table A" at
3.0% with 100% Projection Scale G. Annuity rates for any year, age, or any
combination of year, age and sex not shown above, will be calculated on the same
basis as those rates shown in the Table above. Such rates will be furnished by
us upon request. Amounts shown in the Table below are based on a 3.0% annual
effective interest rate.
Plan E - Dollar Amount of Each Monthly Fixed Dollar Annuity Payment
Per $1,000 Applied
------------------------------------------------------------------------------------------------------
Years Payable Monthly Payment Years Payable Monthly Payment Years Payable Monthly Payment
10 9.61 17 6.23 24 4.84
11 8.86 18 5.96 25 4.71
12 8.24 19 5.73 26 4.59
13 7.71 20 5.51 27 4.47
14 7.26 21 5.32 28 4.37
15 6.87 22 5.15 29 4.27
16 6.53 23 4.99 30 4.18
Deferred Annuity Contract
--------------------------------------------------- -------------------
Administrative Offices:
00 Xxxxx Xxxxxx Xxxxxx
P.O. Box 534
American Minneapolis, MN 55440
Enterprise
Life
o Flexible Purchase Payment
o Investment Experience Reflected in Benefits
o Optional Fixed Dollar or Variable Accumulation Values
and Annuity Payments
o Annuity Payments to Begin on the Retirement Date
o This Contract is Nonparticipating - Dividends Are Not Payable
