Exhibit 4(a)(ii)
(CUNA MUTUAL GROUP LOGO)
CUNA Mutual Insurance Society
Administrative Office
P.O. Box 61 - Waverly, IA 00000-0000
Phone: 800/000-0000
FLEXIBLE PREMIUM DEFERRED
VARIABLE ANNUITY
CONTRACT NUMBER: 123456789
READ YOUR CONTRACT CAREFULLY. This is a legal contract between the owner and
CUNA Mutual Insurance Society, and hereafter will be referred to as the
contract.
This contract is issued to the owner in consideration of the application and the
initial purchase payment. CUNA Mutual Insurance Society will pay the benefits of
this contract, subject to its terms and conditions, which will never be less
than the amount required by state law.
THE DOLLAR AMOUNT OF ANY INCOME PAYMENTS AND OTHER VALUES PROVIDED BY THIS
CONTRACT WILL INCREASE OR DECREASE BASED ON THE INVESTMENT EXPERIENCE OF THE
SUBACCOUNTS SELECTED. THE VARIABLE PROVISIONS ARE DESCRIBED IN SECTION 7.
Signed for CUNA Mutual Insurance Society, Waverly, Iowa, on the Contract Issue
Date.
/s/ Xxxx Xxxx /s/ Xxxx X. Xxxxxxx
President Secretary
RIGHT TO EXAMINE THIS CONTRACT. IF FOR ANY REASON YOU DECIDE NOT TO KEEP THIS
CONTRACT, YOU MAY RETURN IT TO US WITHIN [10] DAYS AFTER YOU RECEIVE IT. IF THIS
CONTRACT IS A REPLACEMENT FOR AN EXISTING CONTRACT, YOU MAY RETURN IT TO US
WITHIN [30] DAYS AFTER YOU RECEIVE IT. YOU MAY RETURN IT TO EITHER OUR HOME
OFFICE OR TO THE AGENT WHO SOLD IT TO YOU. WE WILL CONSIDER IT VOID FROM THE
BEGINNING AND WILL PAY A REFUND WITHIN 7 DAYS OF RECEIPT OF THE CONTRACT IN THE
HOME OFFICE. WE WILL REFUND ANY NET PURCHASE PAYMENTS ALLOCATED TO THE VARIABLE
ACCOUNT ADJUSTED TO REFLECT INVESTMENT GAIN OR LOSS FROM THE DATE OF ALLOCATION
TO THE DATE OF CANCELLATION; PLUS ANY APPLICABLE PREMIUM EXPENSE CHARGES WHICH
HAVE BEEN DEDUCTED PRIOR TO ALLOCATION. IF THIS CONTRACT IS AN INDIVIDUAL
RETIREMENT ANNUITY, DURING THE FIRST [10] DAYS OF YOUR RIGHT TO EXAMINE PERIOD,
WE WILL, INSTEAD OF THE FOREGOING, REFUND ANY PURCHASE PAYMENTS RECEIVED BY US.
Flexible Purchase Payments as Described Herein
Income Payments Starting on the Payout Date
Death Benefit Payable at Death Prior to the Payout Date
Participating
2000-CVA
CONTRACT GUIDE AND INDEX
Data Page ......................................................... Section 1
Definitions ....................................................... Section 2
General Information ............................................... Section 3
Owner and Beneficiary ............................................. Section 4
Accumulation Period ............................................... Section 5
Purchase Payments ................................................. Section 6
Investment Options ................................................ Section 7
Transfer Privilege ................................................ Section 8
Contract Value .................................................... Section 9
Withdrawal Provision .............................................. Section 10
Death of Annuitant and/or Owner ................................... Section 11
Death Benefit Proceeds ............................................ Section 12
Loans and Dividends ............................................... Section 13
Payout Period ..................................................... Section 14
Income Payments ................................................... Section 15
Death of Owner .................................................... Section 16
Option Tables ..................................................... Section 17
Additional Benefit Rider(s)
CONTRACT NUMBER: 123456789
SECTION 1. DATA PAGE
FLEXIBLE PREMIUM DEFERRED VARIABLE ANNUITY
ANNUITANT: Xxxx Xxx CONTRACT NUMBER: 123456789
CO-ANNUITANT: Xxxx Xxx CONTRACT ISSUE DATE: October 1, 2000
PAYOUT DATE: October 1, 2050 LIFE INCOME RATES: Type A
INCOME OPTION: 10 C & L LOAN AVAILABLE: No
OWNER(S): Xxxx Xxx Xxxx Xxx
INITIAL PURCHASE PAYMENT: $25,000
See application for allocation of initial purchase payment.
MINIMUM ADDITIONAL PURCHASE PAYMENT: $100
CHARGES AND FEES*:
Mortality and Expense Risk Charge: [1.15% per year]
Maximum Contract Fee: $30 per year
Maximum Transfer Fee: $10 after 1st 12 transfers in a contract year
Premium Expense Charge on the contract issue date: 0.00%
* We reserve the right to reduce or waive any of these charges or fees. Any
reduction or waiver will be administered in a non-discriminatory manner.
DEATH BENEFIT RIDERS:
Annual Percentage Charge
------------------------
Maximum Anniversary Value Death Benefit Rider [0.15%]
5% Annual Guarantee Death Benefit Rider [0.15%]
7 Year Anniversary Death Benefit Rider [0.10%]
INITIAL ALLOCATION OF NET PURCHASE PAYMENTS:
VARIABLE ACCOUNT: CUNA Mutual Variable Annuity Account
Subaccounts Fund Percentage
----------- ------------ ----------
Mid Cap Value Ultra Series 0.00%
Large Cap Growth Ultra Series 25.00%
Large Cap Value Ultra Series 15.00%
Diversified Income Ultra Series 25.00%
Bond Ultra Series 10.00%
Money Market Ultra Series 0.00%
High Income Ultra Series 25.00%
International Stock Ultra Series 0.00%
Mid Cap Growth Ultra Series 0.00%
Global Securities Ultra Series 0.00%
Conservative Allocation Ultra Series 0.00%
Moderate Allocation Ultra Series 0.00%
Small Cap Growth Ultra Series 0.00%
Small Cap Value Ultra Series 0.00%
SECTION 2. DEFINITIONS
2.1 WHAT ARE THE MOST ACCUMULATION UNIT - A unit of measure used to
COMMONLY USED TERMS calculate variable contract value.
AND WHAT DO THEY
MEAN? AGE - Age as of last birthday.
ANNUITANT - The person (or persons) whose life
(or lives) determines the income payment
benefits payable under the contract and whose
death determines the death benefit. No more
than two annuitants may be named. Provisions
referring to the death of an annuitant mean the
last surviving annuitant.
BENEFICIARY - The person (or persons) named by
the owner to whom the proceeds payable on the
death of the annuitant will be paid. Prior to
the payout date, if no beneficiary survives the
annuitant, you or your estate will be the
beneficiary.
THE CODE - The Internal Revenue Code of 1986,
as amended.
CONTRACT ANNIVERSARY - The same day and month
as the contract issue date for each year the
contract remains in force.
CONTRACT ISSUE DATE - The date shown on the
data page of the contract which is used to
determine contract years and contract
anniversaries.
CONTRACT YEAR - A twelve-month period beginning
on a contract anniversary.
CONTRACT VALUE - The total amount invested
under the contract. It is the sum of the
variable contract value and the loan account
value.
DUE PROOF OF DEATH - Proof of death
satisfactory to us. Such proof may consist of a
certified copy of the death record, a certified
copy of a court decree reciting a finding of
death or any other proof satisfactory to us.
FUND - Each investment portfolio (sometimes
called a Series) of the Ultra Series Fund or
any other open-end management investment
company or unit investment trust in which a
subaccount invests.
GENERAL ACCOUNT - Our assets other than those
allocated to the variable account or any other
separate account of CUNA Mutual Insurance
Society.
HOME OFFICE - CUNA Mutual Insurance Society,
0000 Xxxxxxxx Xxx, Xxxxxxx, Xxxx, 00000.
INCOME UNIT - A unit of measure used to
calculate variable income payments.
LOAN ACCOUNT - For any contract, a portion of
our general account to which variable contract
value is transferred to provide collateral for
any loan taken under the contract.
LOAN AMOUNT - The sum of your loan principal
plus any accrued loan interest.
NET PURCHASE PAYMENT - A purchase payment less
any deduction for applicable premium expense
charges.
NON-QUALIFIED CONTRACT - A contract that is not
a "qualified contract."
OWNER - The person (or persons) who own(s) the
contract and who is entitled to exercise all
rights and privileges provided in the contract.
PAYEE - The person receiving income payments
upon whose life payments are based.
PAYOUT DATE - The date when income payments
will begin, if the annuitant is still living.
This date is shown on the data page.
PREMIUM EXPENSE CHARGE - An amount we deduct
from your purchase payments to cover taxes we
are currently charged by your state of
residence. The initial charge is shown on the
data page.
PRO-RATA - A method of distribution of variable
contract value among any of the subaccount(s).
The distribution is in the same proportion that
the value in each subaccount has to the total
value of the affected subaccount(s).
QUALIFIED CONTRACT - A contract that is issued
in connection with plans that qualify for
special federal income tax treatment under
Sections 401, 403(b), or 408 of the code. If
your contract is a qualified contract, the term
"income payment" may also be referred to as
"annuity payment".
SEC - U.S. Securities and Exchange Commission.
SUBACCOUNT - A subdivision of the variable
account, the assets of which are invested in a
corresponding fund.
SURRENDER VALUE - The contract value, less any
premium expense charges not previously
deducted, the annual contract fee, any
applicable charge for riders and loan amount.
VALUATION DAY - Each day on which valuation of
the assets of a subaccount is required by
applicable law.
VALUATION PERIOD - The period beginning at the
close of the New York Stock Exchange (currently
3:00 p.m. Central Time) of one valuation day,
and continuing to 3:00 p.m. Central Time, or
the close of the New York Stock Exchange,
whichever is earlier, of the next succeeding
valuation day.
VARIABLE ACCOUNT - The CUNA Mutual Variable
Annuity Account. A segregated investment
account of CUNA Mutual Insurance Society into
which net purchase payments may be allocated.
VARIABLE CONTRACT VALUE - The value of the
contract in the variable account.
WE, OUR, US - CUNA Mutual Insurance Society.
WRITTEN REQUEST - A signed and dated written
notice in a form satisfactory to us and
received in our home office.
YOU, YOUR - The owner or owners of this
contract who are entitled to exercise all
rights and privileges in the policy.
SECTION 3. GENERAL INFORMATION
3.1 WHAT IS THE ENTIRE This contract form, the data page, any attached
CONTRACT? riders and endorsements, and a copy of the
application, if attached to it, are the entire
contract between you and us. No one except our
president or secretary can change or waive any
of our rights or requirements under this
contract. Any change must be in writing.
3.2 WHEN DOES THIS This contract is incontestable from its
CONTRACT BECOME contract issue date. The statements contained
INCONTESTABLE? in the application (in the absence of fraud)
are considered representations and not
warranties.
3.3 WHAT IF THE ANNUITANT'S If the annuitant's date of birth has been
DATE OF BIRTH OR GENDER misstated, we will adjust the payments under
HAS BEEN MISSTATED? this contract, based on the correct date of
birth. If the annuitant's gender has been
misstated and the Type A life income rates
apply (see the data page and Section 17), we
will adjust the payments under this contract
based on the correct gender. Any underpayment
will be added to the next payment. Any
overpayment will be subtracted from future
payments.
3.4 WHAT IS THE ANNUAL The maximum annual contract fee is shown on the
CONTRACT FEE? data page. The annual contract fee we charge
will never be greater than the maximum. During
the accumulation period, the contract fee will
be deducted pro-rata from your contract value
in the subaccounts on each contract
anniversary. This contract fee will also be
deducted on the date of any full surrender, if
not on a contract anniversary. During the
payout period, it will be deducted in equal
amounts from any variable income payments made
during a contract year. This fee is to
reimburse us for the expense of maintaining
this contract.
3.5 WHAT PREMIUM We will deduct any applicable premium expense
EXPENSE CHARGES MAY charge from surrender value, death benefit
BE DEDUCTED? amount or the amount applied to an income
payout option. However, we reserve the right to
charge for the premium expense charge when it
is incurred. The premium expense charge rate
for your state as of the contract issue date is
shown on the data page.
In addition, we reserve the right to deduct
certain other premium expense charges from
surrender value, death benefit amount or income
payments, as appropriate. Such premium expense
charges may include taxes levied by any
government entity which we, in our sole
discretion, determine have resulted from the
establishment or maintenance of the variable
account, or from the receipt by us of purchase
payments, or from the issuance or termination
of this contract, or from the commencement or
continuance of income payments under this
contract.
3.6 WILL ANNUAL REPORTS BE We will send you a report, without charge, at
SENT? least annually which provides information about
your contract required by any applicable law.
3.7 CAN WE MODIFY THE Upon notice to you, we may modify the contract
CONTRACT? if:
a.) necessary to permit the contract or
the variable account to comply with
any applicable law or regulation
issued by a government agency; or
b.) necessary to assure continued
qualification of the contract under
the code or other federal or state
laws relating to retirement
annuities or variable annuity
contracts; or
c.) necessary to reflect a change in the
operation of the variable account;
or
d.) the modification provides additional
investment options.
In the event of most such modifications, the
company will make appropriate endorsement to
the contract.
SECTION 4. OWNER AND BENEFICIARY
4.1 WHAT ARE YOUR The owner has all rights, title and interest in
RIGHTS AS OWNER OF THIS this contract during the accumulation period
CONTRACT? while the annuitant is living. You may exercise
all rights and options stated in this contract,
subject to the rights of any irrevocable
beneficiary. Assignment of your contract as
collateral security will not be allowed.
4.2 HOW CAN YOU CHANGE You may change the owner or beneficiary of this
THE OWNER OR contract by written request at any time while
BENEFICIARY OF THIS the annuitant is alive. The change will take
CONTRACT? effect as of the date you signed it. We are not
liable for any payment we make or action we
take before receiving any such written request.
If the owner is more than one person, the
written request for change must be signed by
all persons named as owner. A request for
change of beneficiary must also be signed by
any irrevocable beneficiary.
SECTION 5. ACCUMULATION PERIOD
5.1 WHAT IS THE The accumulation period is the first of two
ACCUMULATION periods of your contract. The accumulation
PERIOD? period begins on the contract issue date stated
on the data page. This period will continue
until the payout date unless the contract is
terminated before that date.
SECTION 6. PURCHASE PAYMENTS
6.1 WHEN CAN PURCHASE The initial purchase payment made is shown on
PAYMENTS BE MADE? the data page.
Additional purchase payments may be made to the
home office at any time during the accumulation
period. The minimum additional purchase payment
is shown on the data page.
We may not accept purchase payments beyond the
contract anniversary following the annuitant's
85th birthday.
6.2 ARE ADDITIONAL Additional purchase payments after the
PURCHASE PAYMENTS initial purchase payment not are required.
REQUIRED?
6.3 HOW WILL NET Net purchase payments will be allocated as you
PURCHASE PAYMENTS BE initially designated. Your initial
ALLOCATED? allocation percentage is shown on the data
page. This contract allows you to allocate net
purchase payments to any available subaccount
of the variable account.
Net purchase payments allocated to a subaccount
become part of the variable contract value
which fluctuates according to the investment
performance of the selected subaccount(s).
You may change the allocation of subsequent net
purchase payments at any time, without charge,
by written request. The allocation may be 100%
to any available subaccount, or may be divided
among any of the subaccounts in whole
percentage points totaling 100%. The minimum
allocation to any subaccount is 1%. Any change
will be effective at the time we receive your
written request.
SECTION 7. INVESTMENT OPTIONS
7.1 WHAT IS THE VARIABLE The variable account is a segregated investment
ACCOUNT? account to which we allocate certain assets and
liabilities related to the contracts and to
other variable annuity contracts. The variable
account is registered with the SEC as a unit
investment trust under the Investment Company
Act of 1940 (the "1940 Act"). We own the assets
of the variable account. We value the assets of
the variable account each valuation day.
That portion of the assets of the variable
account equal to the reserves and other
contract liabilities of the contracts supported
by the variable account will not be charged
with liabilities arising from any other
business that we may conduct. We have the right
to transfer to our general account any assets
of the variable account that are in excess of
such reserves and other contract liabilities.
The income, gains and losses, realized or
unrealized, from the assets allocated to the
variable account will be credited to or charged
against the variable account, without regard to
our other income, gains or losses.
The variable account is divided into
subaccounts. The subaccounts as of the contract
issue date are shown on the data page. Each
subaccount invests its assets solely in the
shares or units of designated funds of
underlying investment companies. The funds
corresponding to the subaccounts available as
of the contract issue date are shown on the
data page. Net purchase payments allocated and
transfers to a subaccount are invested in the
fund supporting that subaccount.
7.2 CAN THE VARIABLE Subject to obtaining approval or consent
ACCOUNT BE MODIFIED? required by applicable law, we reserve the
right to:
a.) combine the variable account with
any of our other separate accounts;
b.) eliminate or combine any subaccounts
and transfer the assets of any
subaccount to any other subaccount;
c.) add new subaccounts and make such
subaccounts available to any class
of contracts as we deem appropriate;
d.) add new funds or remove existing
funds;
e.) substitute a different fund for any
existing fund, if shares or units of
a fund are no longer available for
investment or if we determine that
investment in a fund is no longer
appropriate;
f.) deregister the variable account
under the 1940 Act if such
registration is no longer required;
g.) operate the variable account as a
management investment company under
the 1940 Act (including managing the
variable account under the direction
of a committee) or in any other form
permitted by law;
h.) restrict or eliminate any voting
rights of owners or other persons
having such rights as to the
variable account; and
i.) make any other changes to the
variable account or its operations
as may be required by the 1940 Act
or other applicable law or
regulations.
In the event of any such substitution or other
change, we may make changes to this and other
contracts as may be necessary or appropriate to
reflect such substitution or other changes.
SECTION 8. TRANSFER PRIVILEGE
8.1 CAN YOU TRANSFER Your variable contract value may be transferred
VALUES AMONG AND among the subaccounts. Transfers are subject to
BETWEEN THE the following:
SUBACCOUNTS?
a.) the transfer request must be by
written request;
b.) the transfer request must be
received in our home office prior to
the payout date; and
c.) the deduction of any transfer fees
that we may impose.
You may make 12 transfers per contract year
without charge. Each transfer after the 12th
transfer may be assessed a transfer fee. The
maximum transfer fee is shown on the data page.
The transfer fee charged, if any, will never be
greater than the maximum and will be deducted
from the subaccount(s) from which the transfer
is made. If a transfer is made from more than
one subaccount at the same time, the transfer
fee will be deducted pro-rata from the
remaining variable contract value in such
subaccount(s). We reserve the right to waive
the transfer fees and to modify or eliminate
the transfer privilege
SECTION 9. CONTRACT VALUE
9.1 WHAT IS YOUR CONTRACT Your contract value at any time is equal to the
VALUE? sum of the values you have in the variable
account and the loan account.
9.2 HOW IS YOUR VARIABLE
CONTRACT VALUE Your variable contract value for any valuation
DETERMINED? period is the total of your subaccount values.
Your value for each subaccount is equal to:
a.) the number of that subaccount's
accumulation units credited to you;
b.) multiplied by the accumulation unit
value for that subaccount at the end
of the valuation period for which
the determination is being made.
9.3 HOW ARE ACCUMULATION The accumulation unit value for each subaccount
UNIT VALUES was arbitrarily set initially at $10.
DETERMINED? Thereafter, the accumulation unit value for
each subaccount at the end of every valuation
period is determined by subtracting (b) from
(a) and dividing the result by (c) (i.e.,
(a-b)/c), where:
a.) is the net result of:
1.) the net assets of the
subaccount attributable to the
accumulation units (i.e., the
aggregate value of the
underlying fund shares held by
the subaccounts) as of the end
of such valuation period;
2.) plus or minus the cumulative
credit or charge with respect
to any taxes reserved for by
us during the valuation period
which we determine to be
attributable to the operation
of the subaccount.
b.) is the cumulative unpaid charge for
the mortality and expense risk
charge. The charge for a valuation
period is equal to the daily charge
for the mortality and expense risk
charge multiplied by the number of
days in the valuation period.
c.) is the number of accumulation units
outstanding at the end of such
valuation period.
For each subaccount, net purchase payments or
transferred amounts are converted into
accumulation units. The number of accumulation
units credited is determined by dividing the
dollar amount directed to each subaccount by
the value of the accumulation unit for that
subaccount at the end of the valuation period
in which the net purchase payment or amount is
received.
Cancellation of the appropriate number of
accumulation units from a subaccount will occur
upon:
a.) a partial withdrawal or surrender;
b.) a loan;
c.) a transfer from a subaccount;
d.) payment of the death benefit;
e.) the payout date;
f.) the deduction of the annual contract
fee;
g.) imposition of any transfer fee; and
h.) the deduction of the annual charge
for riders, if any.
Accumulation units will be cancelled as of the
end of the valuation period in which we receive
notice of or instructions regarding the event.
SECTION 10. WITHDRAWAL PROVISION
10.1 WHAT ARE THE RULES FOR You may make partial withdrawals during the
A PARTIAL WITHDRAWAL accumulation period by written request. You
OF THE SURRENDER must specify the subaccount(s) from which the
VALUE? partial withdrawal is to be made.
We will pay you the amount you request in
connection with a partial withdrawal by
canceling accumulation units from appropriate
subaccount(s). Partial withdrawals generally
will be effective as of the date we receive
written request.
If a partial withdrawal would cause the
surrender value to be less than $2,000, we will
treat your request as a full surrender.
10.2 WHAT ARE THE RULES FOR You have the right to surrender this contract
A FULL SURRENDER OF THE during the accumulation period by written
CONTRACT? request. You will be the surrender value. The
surrender value is equal to:
a.) the contract value at the end of the
valuation period in which we receive
your request;
b.) minus the annual contract fee and
any applicable charge for rider(s)
if the surrender does not occur on a
contract anniversary;
c.) minus any loan amount; and
d.) minus any applicable premium expense
charges not previously deducted.
The surrender value will not be less than the
amount required by state law.
Upon payment of the above surrender value, this
contract is terminated and we have no further
obligation under this contract. We may require
that this contract be returned to our home
office prior to making payment.
10.3 ARE THERE ANY Generally, the amount of any surrender, partial
RESTRICTIONS ON PAYMENT withdrawal or loan will be paid to you within
OF SURRENDER, PARTIAL seven days of our receipt of your written
WITHDRAWALS OR LOANS? request.
We reserve the right to postpone payment of any
surrender, partial withdrawal or loan from the
variable account for any period when:
a.) the New York Stock Exchange is
closed other than customary weekend
and holiday closing;
b.) trading on the Exchange is
restricted;
c.) an emergency exists as a result of
which it is not reasonable or
practicable to dispose of securities
held in the variable account or
determine their value; or
d.) the SEC permits delay for the
protection of security holders.
The applicable rules of the SEC shall govern as
to whether the conditions in (b) and (c) exist.
SECTION 11. DEATH OF ANNUITANT AND/OR OWNER
11.1 WHAT IF THE ANNUITANT If the annuitant dies during the accumulation
DIES DURING THE period, and a co-annuitant survives, no death
ACCUMULATION PERIOD? benefit will be paid. If the sole annuitant
dies during the accumulation period and the
annuitant is not an owner, we will pay the
death benefit to the beneficiary. The
beneficiary may elect (within 60 days of the
date we receive due proof of death) to apply
this sum under one of the income payout options
as payee. If the deceased annuitant is also an
owner, see Section 11.2.
11.2 WHAT IF ANY OWNER If any owner dies prior to the payout date and
DIES DURING THE the deceased owner is the sole annuitant, we
ACCUMULATION PERIOD? will pay the death benefit to the beneficiary.
The death benefit must be distributed within 5
years of the deceased owner's death.
The beneficiary may elect (within 60 days of
the date we receive due proof of death) to
apply this sum under one of the annuity payout
options as payee, provided:
a.) payments under the income payout
option begin not later than one (1)
year after the owner's death; and
b.) payments will be payable for the
life of the beneficiary, or over a
period not greater than the
beneficiary's life expectancy.
If any owner dies and the deceased owner is not
the annuitant, the new owner will be the
surviving owner, if any. If there are no
surviving owners, the new owner will be the
annuitant (unless otherwise provided). If the
sole new owner is the deceased owner's spouse,
the contract may be continued. If the new owner
is someone other than the deceased owner's
spouse, the surrender value of the contract
must be distributed within 5 years of the
deceased owner's death.
SECTION 12. DEATH BENEFIT PROCEEDS
12.1 WHAT AMOUNT WILL BE The amount that will be paid under this
PAID AS DEATH BENEFIT contract as death benefit proceeds will be
PROCEEDS DURING THE determined based on the annuitant's age on your
ACCUMULATION PERIOD? contract issue date. If there is more than one
annuitant, we will use the age of the last
surviving annuitant.
If the annuitant's age on your contract issue
date is less than 76, the death benefit
proceeds are equal to the greater of a.) or b.)
as follows:
a.) The sum of your net purchase
payments made as of the date due
proof of death is received, minus an
adjustment for each partial
withdrawal made as of the date due
proof of death is received, equal to
(1) divided by (2), with the result
multiplied by (3), where:
(1) = the partial withdrawal
amount;
(2) = the contract value
immediately prior to the
partial withdrawal; and
(3) = the sum of your net purchase
payments immediately prior to
the partial withdrawal, less
any adjustments for prior
partial withdrawals.
b.) The contract value as of the date
due proof of death is received.
If the annuitant's age on your contract issue
date is 76 or greater, the death benefit is
equal to the contract value as of the date due
proof of death is received.
The death benefit described above will be
reduced by any loan amount and any applicable
premium expense charges not previously
deducted.
SECTION 13. LOANS AND DIVIDENDS
13.1 ARE LOANS Loans will be available only to certain
AVAILABLE? qualified contracts. The data page
indicates if loans are available. The maximum
loan value is 90% of the surrender value.
You must specify the subaccount(s) from which
the loan will be made. The amount borrowed from
such subaccount(s) in connection with the loan
will be transferred to the loan account.
Your loan amount is equal to any amounts in
your loan account, plus any accrued loan
interest. Interest on your loan amount will
accrue at an effective annual rate of 6.50%.
Amounts in the loan account will be credited
interest at an effective annual rate determined
at our discretion, but not less than 3%.
On each contract anniversary and on the payout
date (if not on a contract anniversary), any
difference between the loan amount and the
amount in the loan account will be transferred
pro-rata from your values in the subaccount(s)
(as described above) to the loan account unless
the difference is paid in cash.
You may repay the loan amount in whole or in
part while this contract is in force. An amount
equal to the amount of the loan repayment will
be transferred from the loan account to your
subaccount(s) in the same proportion as the
purchase payments are currently allocated,
unless you request otherwise.
The loan amount will be deducted from any death
benefit payable.
If, on any date, your loan amount causes your
surrender value to be equal to or less than
zero, the contract will be in default. In this
case, we will send you a notice of default and
tell you what payment is needed to bring your
contract out of default. You will have a 60 day
grace period from the date of mailing such
notice during which to pay the default amount.
If the required payment is not paid within the
grace period, the contract will terminate
without value.
13.2 WILL DIVIDENDS BE We anticipate that no dividends will be payable
PAID? on your contract However, while your contract
is in force, we will annually determine your
contract's share in our divisible surplus. Your
contract's share, if any, will be paid as a
dividend on your contract anniversary.
You may request that we apply your dividends
by:
a.) allocating them to your
subaccount(s) in the same proportion
as designated for purchase payments;
or
b.) paying them to you in cash.
Unless you tell us otherwise, dividend option
a.) above will be used.
SECTION 14. PAYOUT PERIOD
14.1 WHAT IS THE PAYOUT
PERIOD?
The payout period is the second of the two
periods of your contract. The payout period
begins on the payout date. It continues until
we make the last payment as provided by the
income payout option chosen.
On the first day of this period, the contract
value (adjusted as described below) will be
applied to the income payout option shown on
the data page, unless you have previously
elected another option. Monthly income payments
will begin as provided under that option.
The contract value applied to an income payout
option will be adjusted as follows:
a.) any applicable premium expense
charge will be deducted;
b.) any loan amount will be deducted;
c.) any applicable charge for riders
will be deducted, if the payout date
is not on the contract anniversary;
and
d.) if the payout date is not on the
contract anniversary, the annual
contract fee will be deducted on a
pro-rated basis. The balance of the
annual contract fee will be deducted
from the remaining income payments
for that contract year.
SECTION 15. INCOME PAYMENTS
15.1 WHEN WILL INCOME The first income payment will be paid as of the
PAYMENTS BEGIN? payout date. The payout date is shown on the
data page. You may change the payout date by
written request, provided that the request is
received at our home office at least 30 days
prior to the current payout date. Unless
otherwise restricted by law or regulation, the
latest payout date is the later of the contract
anniversary following the annuitant's 85th
birthday or 10 years after the contract issue
date.
Unless changed as described above, we will use
the payout date shown on the data page.
15.2 WHAT INCOME PAYOUT There are different ways to receive income
OPTIONS ARE AVAILABLE? payments. We call these income payout options.
Four income payout options are described below.
Option 1 is available only as a fixed income
payment. Options 2, 3 and 4 are available in
two forms - as a variable income payment in
connection with the variable account and as a
fixed income payment. Other income payout
options may be available with our consent.
OPTION 1 - INTEREST OPTION (FIXED INCOME
PAYMENTS ONLY). We will pay interest on the
proceeds which we will hold as a principal sum
during the lifetime of the payee. The payee may
choose to receive interest payments either once
a year or once a month. We will determine the
effective rate of interest from time to time,
but it will not be less than an effective
annual interest rate of 3.50%.
OPTION 2 - INSTALLMENT OPTION (FIXED OR
VARIABLE INCOME PAYMENTS). We will pay monthly
income payments for a chosen number of years,
not less than 5, nor more than 30. If the
original payee dies before income payments have
been made for the chosen number of years: (a)
income payments will be continued for the
remainder of the period to the successor payee;
or (b) the present value of the remaining
income payments, computed at the interest rate
used to create the Option 2 rates, will be paid
to the successor payee or to the last surviving
payee's estate, if there is no successor payee.
Dividends, if any, will be payable as
determined by us. We do not anticipate any
dividends will be paid.
The payee has the right to receive all
remaining variable income payments due under
Option 2 in one sum at any time by written
request. The single payment amount will be
equal to the present value of the remaining
variable income payments, computed at the
interest rate used to create the Option 2
rates.
OPTION 3 - LIFE INCOME OPTION - GUARANTEED
PERIOD CERTAIN (FIXED OR VARIABLE INCOME
PAYMENTS). We will pay monthly income payments
for as long as the payee lives. If the original
payee dies before all of the income payments
have been made for the guaranteed period
certain: (a) income payments will be continued
during the remainder of the guaranteed period
certain to the successor payee; or (b) the
present value of the remaining income payments,
computed at the interest rate used to create
the Option 3 rates, will be paid to the
successor payee or to the last surviving
payee's estate, if there is no successor payee.
The guaranteed period certain choices are:
a.) life income only;
b.) 5 years;
c.) 10 years;
d.) 15 years; or
e.) 20 years.
Dividends, if any, will be payable as
determined by us. We do not anticipate any
dividends will be paid.
OPTION 4- JOINT AND SURVIVOR LIFE INCOME OPTION
- 10 YEAR GUARANTEED PERIOD CERTAIN (FIXED OR
VARIABLE INCOME PAYMENTS). We will pay monthly
income payments for as long as either of the
original payees is living. If at the death of
the second surviving payee, income payments
have been made for less than 10 years: (a)
income payments will be continued during the
remainder of the guaranteed period certain to
the successor payee; or (b) the present value
of the remaining income payments, computed at
the interest rate used to create the Option 4
rates, will be paid to the successor payee or
to the last surviving payee's estate, if there
is no successor payee.
Dividends, if any, will be payable as
determined by us. We do not anticipate any
dividends will be paid.
15.3 WHAT ARE THE We will automatically make income payments
REQUIREMENTS FOR according to a life income payment option with
CHOOSING AN INCOME a guaranteed period certain of 10 years,
PAYOUT OPTION? starting on the payout date, unless you choose
another guaranteed period certain or income
payout option. We will apply your adjusted
contract value to purchase a variable income
payment in the same proportion as your contract
value is distributed among the subaccount(s).
You may change the income payout option by
written request on or prior to the payout date
to an income payout option that is acceptable
to us.
The minimum adjusted contract value which can
be applied under Option 1 is $2,500. If the
monthly interest payment for Option 1 is less
than $20, we reserve the right to pay interest
annually.
The minimum adjusted contract value which can
be applied under Options 2, 3 or 4 is the
greater of $2,500 or the amount required to
provide an initial monthly income payment of
$20.
We may require due proof of the age of any
payee who is to receive a life income. For Type
A life income rates, we may also require due
proof of the gender of any payee who is to
receive a life income.
The payee may name a successor payee to receive
any remaining income payments due after the
payee's death. The payee may exercise any
ownership rights that continue after the payout
date.
15.4 HOW WILL FIXED INCOME The minimum dollar amount of each fixed income
PAYMENT VALUES BE payment will be determined by dividing the
DETERMINED? amount applied by $1,000, and multiplying the
result by the applicable option rate shown in
Section 17. Higher current option rates may be
available on the payout date and are available
upon request to our home office.
15.5 HOW WILL VARIABLE The dollar amount of the initial variable
INCOME PAYMENT income payment attributable to each subaccount
VALUES BE will be determined by dividing the amount
DETERMINED? applied by $1,000, and multiplying the result
by the applicable option rate shown in Section
17. The total initial variable income payment
is the sum of the initial variable income
payments attributable to the subaccount(s).
The dollar amount of the subsequent variable
income payments attributable to a subaccount
will be based on the number of income units
credited to the contract for that subaccount
and is determined by multiplying (a) by (b),
where:
a.) is the number of subaccount income
units; and
b.) is the subaccount income unit value
for the valuation period immediately
preceding the due date of the
payment.
The number of income units attributable to each
subaccount remains fixed unless there is an
exchange of income units. The number of income
units is derived by dividing that portion of
the initial variable income payment
attributable
to the subaccount by the subaccount's income
unit value for the valuation period which ends
immediately preceding the payout date.
The income unit value for each subaccount was
arbitrarily set initially at $100. Thereafter,
the income unit value for each subaccount in
any valuation period is determined by dividing
(a) by (b), then multiplying by (c) and
adjusting the result to compensate for the
assumed net investment rate of 3.50%, where:
a.) is the accumulation unit value for
the current valuation period;
b.) is the accumulation unit value for
the immediately preceding valuation
period; and
c.) is the income unit value for the
immediately preceding valuation
period;
With an assumed net investment rate of 3.50%
per year, payments after the initial payment
may increase, decrease or remain constant based
on whether the actual annualized investment
return of the selected subaccount(s) is greater
or less than the assumed 3.50% per year.
15.6 CAN VARIABLE ANNUITY The payee may exchange the dollar value of a
UNITS BE EXCHANGED? designated number of income units of a
particular subaccount for an equivalent dollar
amount of income units of another subaccount by
written request. On the date of the exchange,
the dollar amount of an income payment would be
unaffected by the fact of the exchange.
No more than 4 exchanges of income units may be
made during any contract year.
SECTION 16. DEATH OF OWNER
16.1 WHAT IF YOU DIE If you die on or after the payout date, any
DURING THE PAYOUT remaining proceeds will be distributed at least
PERIOD? as rapidly as provided by the income payout
option in effect.
SECTION 17. OPTION TABLES
17.1 WHAT RATES WILL BE The rates shown in the following tables are
USED TO DETERMINE used to determine the minimum payment values
PAYMENT VALUES? for monthly fixed income payments. Higher
current rates may be available on the payout
date, and are available upon request to our
home office. These rates are also used to
determine the initial variable income payment
amount.
The Option 2 rates shown are based on 3.50%
interest per year. The Option 3 and 4 rates are
based on the Annuity 2000 Table and with
compound interest at the effective rate of
3.50% per year. Rates for years payable and
guaranteed periods certain not shown, if
allowed by us, will be calculated on an
actuarially equivalent basis and will be
available upon request.
The Type A life income rates for Options 3 and
4 are based on the payee's age and gender. The
Type B life income rates are based on the
payee's age. The life income rates type for
this contract is shown on the data page.
OPTION 2. RATES - FIRST PAYMENT DUE AT BEGINNING OF PERIOD.
YEARS MONTHLY PAYMENT PAYABLE UNDER
PAYABLE OPTION 2 FOR EACH $1,000 APPLIED
------- --------------------------------
10 9.83
15 7.10
20 5.75
25 4.96
30 4.45
OPTION 3. LIFE INCOME RATES - GUARANTEED PERIOD CERTAIN - FIRST PAYMENT DUE AT
BEGINNING OF PERIOD.
TYPE A LIFE INCOME RATES
PER $1,000 APPLIED
AGE - MALE
-------------------------------------------------------------------
YEARS 55 56 57 58 59 60 61 62 63 64
----- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
0 4.75 4.84 4.94 5.04 5.15 5.26 5.39 5.52 5.66 5.81
5 4.74 4.83 4.92 5.02 5.13 5.24 5.36 5.49 5.62 5.77
10 4.70 4.78 4.87 4.96 5.06 5.16 5.27 5.38 5.50 5.63
15 4.62 4.70 4.77 4.85 4.94 5.02 5.11 5.20 5.30 5.39
20 4.51 4.57 4.63 4.70 4.76 4.82 4.89 4.95 5.02 5.08
AGE - MALE
--------------------------------------------------------------------------
YEARS 65 66 67 68 69 70 71 72 73 74 75
----- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
0 5.97 6.15 6.33 6.53 6.74 6.96 7.20 7.45 7.72 8.01 8.32
5 5.92 6.08 6.26 6.44 6.64 6.84 7.06 7.28 7.53 7.78 8.05
10 5.76 5.90 6.04 6.19 6.34 6.50 6.66 6.82 6.99 7.16 7.34
15 5.49 5.59 5.69 5.79 5.89 5.99 6.08 6.18 6.27 6.36 6.44
20 5.14 5.20 5.26 5.31 5.37 5.42 5.46 5.50 5.54 5.58 5.61
AGE - FEMALE
-------------------------------------------------------------------
YEARS 55 56 57 58 59 60 61 62 63 64
----- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
0 4.44 4.52 4.60 4.68 4.78 4.87 4.97 5.08 5.20 5.33
5 4.43 4.51 4.59 4.67 4.76 4.86 4.96 5.07 5.18 5.30
10 4.41 4.48 4.56 4.64 4.73 4.82 4.91 5.01 5.12 5.23
15 4.37 4.44 4.51 4.58 4.66 4.74 4.82 4.91 5.00 5.10
20 4.31 4.37 4.43 4.49 4.56 4.62 4.69 4.76 4.83 4.90
AGE - FEMALE
--------------------------------------------------------------------------
YEARS 65 66 67 68 69 70 71 72 73 74 75
----- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
0 5.46 5.60 5.75 5.92 6.10 6.29 6.49 6.72 6.96 7.22 7.50
5 5.43 5.57 5.72 5.88 6.05 6.23 6.43 6.64 6.86 7.10 7.36
10 5.35 5.47 5.60 5.74 5.89 6.04 6.21 6.38 6.55 6.74 6.93
15 5.20 5.30 5.40 5.51 5.62 5.73 5.84 5.95 6.06 6.17 6.27
20 4.97 5.04 5.11 5.18 5.24 5.31 5.37 5.42 5.47 5.52 5.56
TYPE B LIFE INCOME RATES
PER $1,000 APPLIED
AGE - UNISEX
-------------------------------------------------------------------
YEARS 55 56 57 58 59 60 61 62 63 64
----- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
0 4.50 4.58 4.66 4.75 4.85 4.95 5.05 5.17 5.29 5.42
5 4.49 4.57 4.65 4.74 4.83 4.93 5.04 5.15 5.26 5.39
10 4.47 4.54 4.62 4.70 4.79 4.88 4.98 5.08 5.19 5.30
15 4.42 4.49 4.56 4.63 4.71 4.79 4.88 4.97 5.06 5.15
20 4.35 4.41 4.47 4.53 4.60 4.66 4.73 4.80 4.87 4.94
AGE - UNISEX
--------------------------------------------------------------------------
YEARS 65 66 67 68 69 70 71 72 73 74 75
----- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
0 5.55 5.70 5.86 6.03 6.21 6.41 6.62 6.85 7.09 7.36 7.64
5 5.52 5.67 5.82 5.98 6.15 6.34 6.54 6.75 6.98 7.22 7.48
10 5.42 5.55 5.69 5.83 5.97 6.13 6.29 6.46 6.63 6.81 7.00
15 5.25 5.35 5.46 5.56 5.67 5.78 5.89 5.99 6.10 6.20 6.31
20 5.01 5.07 5.14 5.21 5.27 5.33 5.38 5.44 5.48 5.53 5.57
OPTION 4. LIFE INCOME FACTORS - JOINT AND SURVIVOR - 10 YEAR GUARANTEED PERIOD
CERTAIN - FIRST PAYMENT DUE AT BEGINNING OF PERIOD.
TYPE A LIFE INCOME RATES
PER $1,000 APPLIED
AGE - FEMALE
AGE --------------------------------
MALE 55 60 65 70 75
---- ---- ---- ---- ---- ----
55 4.06 4.21 4.36 4.48 4.57
60 4.16 4.38 4.59 4.78 4.93
65 4.25 4.52 4.81 5.09 5.35
70 4.31 4.63 5.00 5.39 5.78
75 4.36 4.71 5.14 5.65 6.18
TYPE B LIFE INCOME RATES
PER $1,000 APPLIED
AGE - UNISEX
AGE --------------------------------
UNISEX 55 60 65 70 75
------ ---- ---- ---- ---- ----
55 4.01 4.14 4.25 4.33 4.39
60 4.14 4.32 4.49 4.63 4.74
65 4.25 4.49 4.74 4.96 5.15
70 4.33 4.63 4.96 5.30 5.61
75 4.39 4.74 5.15 5.61 6.08
FLEXIBLE PREMIUM DEFERRED
VARIABLE ANNUITY
Flexible Purchase Payments as Described Herein
Income Payments Starting on the Payout Date
Death Benefit Payable at Death Prior
to the Payout Date Participating
CUNA MUTUAL INSURANCE SOCIETY
0000 XXXXXXXX XXX, XXXXXXX, XXXX 00000
TELEPHONE: (000) 000-0000
