EXHIBIT 4
FORM OF FLEXIBLE PURCHASE PAYMENT
MULTI-FUND VARIABLE ANNUITY CONTRACT (935-1A-8200)
36
[LOGO OF MASSACHUSETTS MUTUAL
LIFE INSURANCE COMPANY APPEARS HERE]
SPRINGFIELD, MASSACHUSETTS 01111
Flexible Purchase Payment Multi-Fund
Variable Annuity Contract
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Contract Number
Annuitant
Amount
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Dear Contract Owner:
READ YOUR CONTRACT CAREFULLY. It has been written in readable language to help
you understand its terms. We have used examples to explain some of the
provisions. These examples do not reflect the actual amounts or status of this
contract. As you read through the contract, remember the words "we", "us" and
"our" refer to Massachusetts Mutual Life Insurance Company.
We will pay the maturity benefit to the Owner when this contract matures if
the Annuitant is living at that time. If the Annuitant dies before this contract
matures, we will pay the death benefit to the Beneficiary when due proof of the
Annuitant's death is received at our Home Office. Either payment is subject to
the terms of this contract which are contained on this and the following pages.
For service or information on this contract, contact the agent who sold the
contract, any of our agency offices or our Home Office.
YOU HAVE A RIGHT TO RETURN THIS CONTRACT. If you decide not to keep this
contract, return it within ten days after you receive it. It may be returned by
delivering or mailing it to our Home Office, to any of our agency offices or to
the agent who sold the contract. Then, the contract will be as though it had
never been issued. We will promptly refund the greater of:
(a) The purchase payments made, reduced by the net amount of any partial
redemptions;
(b) The value of this contract on the date we receive it, plus any deductions
the purchase payments.
Signed for Massachusetts Mutual Life Insurance Company at Springfield,
Massachusetts.
Sincerely yours,
/s/ Xxxxxxx X. Xxxxx /s/ [SIGNATURE APPEARS HERE]
President Secretary
This Contract provides that: A monthly life income is payable beginning on
the date this contract matures if the
Annuitant is living at that time
A death benefit is payable if the Annuitant
dies before this contract matures
Flexible purchase payments may be made to the
date this contract matures or to the
Annuitant's death, if earlier.
This Contract is not participating. It does not provide for the payment of
dividends.
All values provided by this contract on or before the date it matures and
annuity payments under any Variable Monthly Income settlement are based on the
investment performance of the Separate Account shown on the Schedule Page. These
values and payments are variable and not guaranteed as to dollar amount.
[STAMP OF STATE OF TENNESSEE
DEPARTMENT OF INSURANCE APPEARS HERE]
Contract Summary
This Summary briefly describes some of the major contract provisions. Since it
does not go into detail, the actual provisions will control. See those
provisions for full information and any limits that may apply. The "Where To
Find It" on the inside of the back cover shows where these provisions may be
found.
We will pay a maturity benefit if the Annuitant is living on the maturity date
and the contract is in force at that time. We will pay a death benefit if the
Annuitant dies before this contract matures sand while it is in force. "In
force" means that the contract has not terminated. Since this is a variable
annuity contract, neither of these benefits is guaranteed as to dollar amount.
Instead, all values and benefits depend on the investment performance of the
Separate Account shown on the Schedule Page.
The first purchase payment for this contract is shown on the Schedule Page. Any
normal purchase payment elected is also shown on the Schedule Page. However,
purchase payments for this contract are flexible. Therefore, after the first one
has been paid, there is no requirement that any specific amount of purchase
payment be made on any date. Instead, within the limits stated in the contract,
any amount may be paid on any date before the maturity date or the death of the
Annuitant. if earlier.
Rights available under this contract include:
. The right to assign this contract.
. The right to change the Owner or any Beneficiary.
. The right to redeem this contract.
. The right to make partial redemptions.
. The right to change the date this contract matures.
. The right to allocate purchase payments among divisions of the Separate
Account.
. The right to transfer values between divisions of the Separate Account.
This contract also includes a number of Payment Options. These provide alternate
ways to pay the maturity value, the death benefit or the amount payable upon
redemption of this contract.
935-1A-8200
THE SCHEDULE PAGE
THIS PAGE SHOWS SPECIFIC INFORMATION ABOUT THIS CONTRACT AND IS REFERRED TO
THROUGHOUT THE CONTRACT
CONTRACT NUMBER 0 000 000
ANNUITANT XXXX X XXX
AMOUNT MONTHLY INCOME PROVIDED BY MATURITY VALUE
ISSUE DATE FEB 15 1982
CONTRACT DATE FEB 15 1982
MATURITY DATE FEB 15 2012
ANNUITANT'S AGE ON CONTRACT DATE 35 MALE
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BASIC CONTRACT INFORMATION
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PLAN SEPARATE ACCOUNT
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VARIABLE ANNUITY MASSACHUSETTS MUTUAL VARIABLE ANNUITY
SEPARATE ACCOUNT 2.
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PURCHASE PAYMENT INFORMATION AS OF FEB 15 1982
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FIRST PURCHASE PAYMENT $ 1,200.00
NORMAL PURCHASE PAYMENTS THEREAFTER AS FOLLOWS
ANNUAL SEMI ANNUAL QUARTERLY
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$ 1,200.00 $ 600.00 $ 300.00
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OTHER INFORMATION
OWNER AND BENEFICIARY - SEE APPLICATION ATTACHED TO THIS CONTRACT
935-1A-8200
Part 1. The Basics Of This Contract
In this Part we discuss some basic concepts that
are necessary to understand this contract.
The Parties Involved -- The Owner is the person who owns this contract, as
Owner, Annuitant, shown on our records.
Beneficiary, Irrevocable The Annuitant is the person on whose life this
Beneficiary contract is issued. Payment of the maturity benefit
will be made if that person is living when this
contract matures. The Annuitant may be the Owner of
this contract, or someone else may be the Owner.
Example: You buy a contract on your own life and name
yourself as Owner. In this case, you are both
the Annuitant and Owner. If you buy a
contract on your spouse's life and name
yourself as Owner, then the Annuitant and
Owner are different people.
A Beneficiary is any person named on our records to
receive death proceeds after the Annuitant dies. There
may be different classes' of Beneficiaries, such as
primary and secondary. These classes set the order of
payment. There may be more than one Beneficiary in a
class.
Example: Xxxxxx is named as primary (first)
Beneficiary. Xxxx and Xxxxx are named as
Beneficiaries in the secondary class. If
Xxxxxx is alive when the Annuitant dies, she
receives any death benefit. But if Xxxxxx is
dead and Xxxx and Xxxxx are alive when the
Annuitant dies, Xxxx and Xxxxx receive any
death benefit.
Any Beneficiary may be named an Irrevocable
Beneficiary. An Irrevocable Beneficiary is one whose
consent is needed to change that Beneficiary. Also,
this Beneficiary must consent to the exercise of other
contract rights.
Dates -- Contract Date, Two important dates (shown on the Schedule Page) are
Contract Anniversary the Contract Date and the Issue Date.
Date, Contract Year,
Issue Date, Maturity The Contract Date is the starting point for
Date determining Contract Anniversary Dates and Contract
Years. The first Contract Anniversary Date is one
year after the Contract Date. The period from the
Contract Date to the first Contract Anniversary Date,
or from one Contract Anniversary Date to the next, is
called a Contract Year.
Example: The Contract Date is June 10,19X1. The first
Contract Anniversary Date is June 10,19X2.
The period from June 10,19X1 to June 10,19X2
is a Contract Year.
The Issue Date is used to determine the start of the
contestability period. We discuss contestability
below.
Another important date is the maturity date shown on
the Schedule Page. This is the date the maturity
benefit is payable unless an earlier or later maturity
date is elected. The maturity benefit will be payable
only if this contract is in force and the Annuitant is
living on the maturity date.
This Is A Legal This annuity is a legal contract between the Owner
Contract and us. The entire contract consists of the
application and the annuity, which includes any
riders. We have issued this contract in return for the
application and the payment of the first purchase
payment. Any change or waiver of its terms must be in
writing and signed by our Secretary or an Assistant
Secretary to be effective.
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935-1A-8200
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Representations And We rely on all statements made by or for the
Contestability Annuitant in the application. Legally, these
statements are considered to be representations and
not warranties. We can contest the validity of this
contract for any material misrepresentation of a fact.
To do so, however, the misrepresentation must have
been made in the application and a copy of the
application must have been attached to this contract
when issued.
We must bring any legal action to contest the validity
of this contract within two years from its Issue Date.
After that we cannot contest its validity.
Misstatement Of Age One of the questions in the application concerns the
Annuitant's date of birth. If the date of birth given
is not correct, all benefits and amounts payable under
this contract will be what would have been provided if
the correct date of birth had been given.
No monthly life income payments will be made unless
satisfactory proof of the Annuitant's date of birth
has been received.
Meaning Of In Force "In force" means that this contract has not
terminated. This contract is in force from its Issue
Date or, if later, the date the first purchase payment
is paid. Payment of future purchase payments is not
required to continue this contract in force.
Home Office Our main office in Springfield, Massachusetts is
called the Home Office. The address is Massachusetts
Mutual Life Insurance Company, Springfield,
Massachusetts 01111.
Contract State This contract shall be construed according to the
laws of the state in which it was entered into.
Part 2. Purchase Payments
Purchase payments are the amounts that may be paid to
us under this contract. Purchase payments for this
contract are discussed in this Part.
The First Purchase The first purchase payment for this contract is shown
Payment on the Schedule Page. It is due on the Contract Date.
This contract will not be in force until the first
purchase payment has been paid to us.
Normal Purchase The normal annual purchase payment for this contract
Payments is shown on the Schedule Page. Other frequencies of
payment are also shown. The frequency for this
contract is as elected in the application. This
frequency may be changed by giving us advance written
notice.
Purchase Payment After the first purchase payment has been paid, we
Flexibility And Notices will send notices for the normal purchase payment on
the frequency in effect. However, payment of those
purchase payments is not required to continue the
contract in force. Instead, any amount may be paid at
any time before the maturity date, or the death of the
Annuitant if earlier, provided that each purchase
payment must be at least $25.
We will stop sending notices if no purchase payment
has been made for 18 consecutive months. However, if a
purchase payment is paid after that time, we will send
notices again.
We have the right to set a maximum limit on the total
amount of purchase payments that may be made under
this contract, Any such limit will not be less than
$500,000.
935-1A-8200
Where To Pay All purchase payments are payable to us at our Home
Office. Upon request, a receipt signed by our
Secretary or an Assistant Secretary will be given for
any purchase payment.
Part 3. Values And Charges
The values of a variable annuity are not guaranteed.
Rather, they depend on the investment results of the
Separate Account shown on the Schedule Page. This Part
gives information about the Separate Account, and the
values and charges connected with it.
The Separate Account The Separate Account shown on the Schedule Page is a
separate investment account which we have established
under Massachusetts law. This Separate Account has
three divisions. They are:
. The Equity Division. Xxxxxxx credited to this
division are invested in shares of MML Equity
Investment Company, Inc., or its successor. This
Company invests primarily in common stocks and
other equity securities.
. The Money Market Division. Amounts credited to
this division are invested in shares of MML Money
Market Investment Company, Inc., or its successor.
This Company invests primarily in short-term debt
instruments.
. The Managed Bond Division. Xxxxxxx credited to
this division are invested in shares of MML
Managed Bond Investment Company, Inc., or its
successor. This Company invests primarily in
fixed-income securities.
We have the right to establish additional divisions of
the Separate Account from time to time. Xxxxxxx
credited to any additional divisions established would
be invested in shares of other investment companies.
For any division, we have the right to substitute new
investment companies.
Valuation Date And The value of this contract is determined on each
Valuation Period valuation date. A valuation date is any date on which
the valuation period is the period of time from the
end of one valuation date to the end of the next
valuation date.
Accumulation Units Accumulation units are used to measure the value of
And Annuity Units this contract on or before its maturity date. Annuity
units are used to determine the amount of each payment
of Variable Monthly Income after those payments have
begun. The value of any unit can vary from valuation
date to valuation date. That value reflects the
investment performance of the division of the Separate
Account applicable to that unit.
Purchase Of Each purchase payment received (less any premium tax
Accumulation Units we deduct at that time) will be applied to purchase
accumulation units. The amount applied will be
allocated among the divisions of the Separate Account,
as directed in the application. The allocation will
remain in effect until changed by any later written
direction satisfactory to us and received at our .Home
Office.
Date Of Purchase Accumulation units will be purchased in any division
of the Separate Account as of the valuation date which
is on or next follows the date the purchase payment is
received by us at our Home Office, but not earlier
than the Contract Date. However, if any purchase
payment is received other than by mail at our Home
Office after the time set for valuation of the
Separate Account, that purchase payment will be deemed
to have been received on the next day. Accumulation
units will be purchased at the unit value on the date
of purchase. The number of units purchased will be the
amount applied divided by the accumulation unit value
on the date of purchase.
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935-1A-8200
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Example: The amount applied is $550. The date of
purchase is June 10, 19X4. The accumulation
unit value on that date is $10. The number of
units purchased would be 55. ($550 / $10 =
55). If instead, the unit value was $11, then
the amount applied would purchase 50 units.
($550 + $11 = 50).
Identification Of For the purpose of identifying accumulation units,
Accumulation Units the total purchase payments made under this contract
are divided into three levels. They are:
. Level #1 - The first $3,000 of purchase payments.
. Level #2 - The next $32,000 of purchase payments.
. Level #3 - All purchase payments in excess of
$35,000.
Accumulation units purchased by each of these levels
in each division of the Separate Account in each
Contract Year are referred to as "blocks" of
accumulation units. We maintain records of each of
these blocks separately so that any sales charges
(discussed later in this Part) can be properly
allocated.
Example: You pay $4,500 in the first Contract Year to
be allocated equally among the divisions of
the Separate Account. Since $3,000 of this
amount is in Level #1, it will buy three
blocks of accumulation units. That is, one
block in each of the three divisions. The
remaining $1,500 is all in Level #2. As such,
it will buy three additional blocks of units.
This results in a total of six blocks of
units purchased with purchase payments made
in the first Contract Year.
If, in the second Contract Year, you pay
$3,000 to be allocated equally, that would
all be in Level #2. However, since this was
paid in the second Contract Year, it would
buy three more blocks of units. At the end of
that Year, a total of nine blocks would have
been purchased.
Accumulated Value The value of the accumulation units credited to this
Of Contract contract in a division of the Separate Account is
equal to the accumulation unit value in that division
on the date the value is determined, multiplied by the
number of those units in that division.
The value of this contract on any date is the total of
the values of this contract in each division of the
Separate Account.
Premium Tax The amount of any premium tax will be deducted from
the purchase payments as they are received if the tax
is incurred at that time. Otherwise, the tax will be
deducted from the contract value when the tax is
incurred.
Administrative Charge An administrative charge will be assessed each year on
the Contract Anniversary Date. This charge will also
be assessed between Contract Anniversary Dates on:
. Termination of this contract; or
. Maturity of this contract; or
. The death of the Annuitant before the maturity
date (but only if the death benefit is the
contract value).
The amount of this administrative charge will be
determined each year by us. However, it will not be
greater than $50, or any lower limit required by law.
This charge, when assessed, will be made by a pro rata
reduction in each block of accumulation units under
the contract at the time the charge is made.
935-1A-8200
Deductions For Sales charges are not deducted from purchase payments
Sales Charges when received by us. Instead, we will make deductions
for sales charges from amounts payable upon full or
partial redemption of this contract. We will also make
deductions for sales charges from any maturity value
which is not applied under a Variable Payment Option.
There are, however, two limits on the deduction for
sales charges. They are:
. The amount we deduct for sales charges at any
time, plus any sales charges previously deducted,
will not be more than 8 1/2% of the total purchase
payments made to that time.
. Beginning with the fifth Contract Year, part of
the accumulation units in each division of the
Separate Account will be free from the deduction
for sales charges. That part is equal to 10% of
the number of accumulation units in that division
on the last day of the preceding Contract Year.
Example: You have l00 accumulation units in each
division as of the last day of the sixth
Contract Year. During the seventh
Contract Year, you can redeem 10 units in
each division without any deduction for
sales charges.
The 10% limit is not cumulative. That is, any unused
portion of this limit cannot be carried over to the
next Contract Year. Instead, a new 10% limit will be
determined for the next Year.
Amount Of Sales Deductions for sales charges vary according to the
Charge Deduction blocks of accumulation units to which they apply.
(Blocks of units were discussed earlier in this Part.)
Specifically:
. Blocks of units purchased with Level #1 purchase
payments have a sales charge deduction of 11% for
the Contract Year in which they are purchased. This
reduces by 1% each year until it reaches zero in
the eleventh and subsequent years after the year of
purchase.
Example: A block of units was purchased with Level
#1 purchase payments in the first Contract
Year. If units in that block are redeemed
in that Year, 11% of the value would be
deducted for sales charges. If instead
those units were redeemed in the fifth
Contract Year, the deduction would be 7%
of the value.
. Blocks of units purchased with Level #2 purchase
payments have a sales charge deduction of 5% for
the Contract Year in which they are purchased.
This reduces by 1% each year until it reaches zero
in the fifth and subsequent years after the year
of purchase.
. There is no deduction for sales charges for any
payments.
For any redemption from any division, we will redeem
blocks of accumulation units with the smallest sales
charge percentage first. Any unused portion of the 10%
limit (for which no sales charge would be made) will
be applied in the same order to the units being
redeemed, including any for which the sales charge is
zero.
Example: You have two blocks totaling 100
accumulation units in one division of the
Separate Account. Block one has five units
with no sales charge. Block two has 95 units
with a sales charge of 4%. Your unused 10%
limit is 10 units and you are redeeming 35
units at this time. The units would be
redeemed in the following order. First would
be five units from block one with no sales
charge. Second would be five units from
block two, but with no sales charge. This is
the balance of the 1090 limit. Last would
be25 units from block two with a 4% sales
charge. Thus, after the redemption, you
would have 65 units in block two.
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Part 4. Life Benefits
A variable annuity contract provides a maturity
benefit if the Annuitant is living on the maturity
date and the contract is in force at that time. It
provides a death benefit if the Annuitant dies before
the maturity date while the contract is in force.
There are other rights and benefits available under
this contract. These "Life Benefits" are discussed in
this Part.
Contract Ownership
Rights Of Owner While the Annuitant is living, the Owner may exercise
all rights given by this contract or allowed by us.
These rights include assigning this contract, changing
Beneficiaries, changing ownership, enjoying all
contract benefits and exercising all contract options.
The consent of any Irrevocable Beneficiary is needed
to exercise any contract right.
Assigning This This contract may be assigned. But for any assignment
Contract to be binding on us, we must receive a signed copy of
it at our Home Office. We will not be responsible for
the validity of any assignment.
Once we receive a signed copy, the rights of the Owner
and the interest of any Beneficiary or any other
person will be subject to the assignment.
Changing The Owner The Owner or Beneficiary may be changed while the
Or Beneficiary Annuitant is living. We do not limit the number of
changes that may be made. To make a change, a written
request, satisfactory to us, must be received at our
Home Office. The change will take effect as of the
date the request is signed, even if the Annuitant dies
before we receive it. Each change will be subject to
any payment we made or other action we took before
receiving the request.
Transfer Of Transfers of values between divisions of the Separate
Accumulation Units Account may be made upon written direction received at
our Home Office. Transfers will be made by cancelling
all or part of the accumulation units in a division
and applying the value of the cancelled units to
purchase units in any other division. Unit values will
be determined as of the valuation date which is on or
next follows the date the written direction is
received at our Home Office.
The sales charge percent and any 10% limit that
applies to the units being cancelled will continue to
apply to the units purchased by the value of the
cancelled units. Transfers between divisions of the
Separate Account can be made up to 30 days before the
maturity date of this contract.
Redeeming This Contract
Right To Redeem This contract may be redeemed for its cash redemption
value any time before it matures and while the
Annuitant is living. Redemption will be effective on
the date we receive this contract and a written
redemption request, satisfactory to us, at our Home
Office. A later effective date may be elected in the
redemption request.
Cash Redemption Value The cash redemption value of this contract is the
accumulated value on the valuation date which is on or
next follows the effective date of redemption less the
administrative charge and less any deductions for
sales charges and any premium tax incurred at that
time.
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The accumulated value is the total of the values of
this contract in each division of the Separate
Account. The value in each division is equal to the
number of accumulation units credited to this contract
in that division multiplied by the unit value of
accumulation units in that division on the date the
value is determined.
Partial Redemptions Partial redemptions may be made at any time before
this contract matures and while the Annuitant is
living. The request for a partial redemption must
state the division (or divisions) of the Separate
Account from which the partial redemption will be
made. Then, a sufficient number of accumulation units
in the stated division (or divisions) will be
cancelled to provide the partial redemption including
any sales charge deductions that apply to the units
being cancelled. Any partial redemption will be
subject to the limits set forth below.
. Any partial redemption must be for at least $100.
. The accumulated value of the contract remaining
after a partial redemption must be at least $600.
When And How Any partial redemption made will be paid in one sum.
We Pay However, if the entire contract is redeemed, the cash
redemption value may be paid in one sum, or it may be
applied under any payment option elected. See "Part 6.
Payment Options".
We will pay all redemptions within seven days after
the written request for the redemption is received by
us at our Home Office. This time period is subject to
any extension permitted under federal laws, rules and
regulations which apply to the redemption of variable
annuity contracts.
Right To Change The Maturity Date
Electing An Early Before this contract matures and while it is in
Maturity Date force, the maturity date may be changed to any date
that is earlier than the maturity date then in effect.
To elect an earlier maturity date, we require that a
written election for the change be received at our
Home Office within 31 days before the early maturity
date wanted.
Electing A Later Before this contract matures and while it is in
Maturity Date force, the maturity date may be changed to any date
that is later than the maturity date then in effect.
However, that later maturity date must be on or before
the Contract Anniversary Date nearest the Annuitant's
85th birthday. To elect a later maturity date, we
require that a written election be received at our
Home Office within 90 days before the maturity date
then in effect. Any rider this contract has will be
cancelled when the change is made.
Other Provisions Regarding Life Benefits
Periodic Statements While this contract is in force before the maturity
date, or the Annuitant's death if earlier, we will
send a Status Report to the Owner at least
semiannually. This Report will show:
. The number of accumulation units in each division
of the Separate Account; and
. The accumulation unit value in each division of the
Separate Account; and
. The accumulated value of this contract.
All this information will be as of a date which is not
more than 45 days before the date the Status Report is
mailed.
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We will also give the Owner any other periodic
reports, containing information about the Separate
Account, that may be required by federal or state law.
Receipt Of Papers Any written directions, requests or other papers
received other than by mail at our Home Office after
the time set for valuation of the Separate Account
will be deemed to have been received the next day;
Contract Is Not "Not participating" means that this contract does not
Participating share in any distribution of our divisible surplus.
Part 5. Maturity Benefit And Death Benefit
The maturity benefit is the payment we will make when
this contract matures if the Annuitant is living at
that time. The death benefit is the amount of money we
will pay when we receive due proof at our Home Office
that the Annuitant has died before the contract
matures. These benefits are discussed in this Part.
Maturity Benefit
Maturity Value The maturity value is the accumulated value of this
contract on the valuation date which is on or next
follows the maturity date with these deductions:
. The administrative charge for the year in
which the contract matures.
. Any premium tax that we are required to deduct
and pay at maturity of this contract.
. Any deductions for sales charges. (These
deductions will not be made for any part of the
maturity value that is applied under a Variable
Payment Option.)
Monthly Life Income When this contract matures, the maturity value will
be applied to provide a monthly life income under
Variable Payment Option C, as described in "Part 6.
Payment Options". This income will be based on the
life of the Annuitant and win be paid for the lifetime
of the Annuitant. The first payment is due on the
maturity date. Future payments will be due on the same
day of the month as the maturity date. The final
payment will be the last one due before the
Annuitant's death.
There is a guarantee as to the first 120 income
payments. If the Annuitant dies before all these
payments are made, we will pay the commuted value of
any of these payments that did not become due before
the Annuitant's death. See "Part 6. Payment Options"
for a discussion of commuted value.
Alternate Settlements There are other settlements available when this
At Maturity contract matures. That is, the maturity value may be
applied under any other Payment Option discussed in
Part 6, or taken in one sum.
In any case, if an assignment of this contract is in
effect on the maturity date, we have the right to pay
the maturity value in one sum.
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Death Benefit
Amount Of Death If the Annuitant dies before this contract matures
Benefit and while it is in force, the death benefit will be
the greater of:
. The total of all purchase payments made, less the
net amount of any partial redemptions, or
. The accumulated value of this contract on the
valuation date which is on or next follows the date
written notice of death is received at our Home
Office, less the administrative charge.
In either case, we deduct any premium tax incurred at
that time.
Interest On Maturity Or Death Benefit
Interest Payable If the maturity value is paid in one sum after this
contract matures, we will add interest from the
valuation date which is on or next follows the
maturity date to the date of payment. If the death
benefit is paid in one sum, we will add interest from
the valuation date which is on or next follows the
date written notice of death is received to the date
of payment. In either case, the amount of interest
will be the same as would be paid under Option D of
the payment options for that period of time. See "Part
6. Payment Options" for a description of Option D.
If the death benefit is applied under a payment
option, interest will be paid from the valuation date
which is on or next follows the date written notice of
death is received to the effective date of that
option. It will be paid in one sum to the Beneficiary
living on the effective date. The amount of interest
will be the same as would be paid under Option D for
that period of time.
Part 6. Payment Options
These are Optional Methods of Settlement. They provide
alternate ways in which payment can be made. This
contract provides Fixed Income payment options. It
also provides Variable Income payment options. These
two types of options are discussed below. Any other
payment option agreed to by us may be elected.
Fixed Income Payment A Fixed Income payment option is one which provides
Options payments that are guaranteed by us under our general
account. The amounts of these payments do not depend
on the investment performance of the Separate Account.
All the payment options described in this Part are
available on a Fixed Income basis. They are described
in terms of monthly payments. However, annual,
semiannual or quarterly payments may be requested
instead. The amount of these payments will be
determined in a way which is consistent with monthly
payments and will be quoted on request.
Variable Income A Variable Income payment option is one which provides
Payment Options that payments are not guaranteed as to dollar amount.
Instead, they are based on the investment performance
of the Separate Account.
Payment options C, E and F are available on a Variable
Income basis. Payment can only be made monthly. The
manner in which the dollar amounts of Variable Income
payments are computed is set forth in "Part 7. Notes
On Our Computations".
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Availability Of All or part of the death benefit, the maturity value or
Payment Options the cash redemption value may be applied under any payment
option. If the contract is assigned, any amount due to the
assignee will be paid in one sum. The balance, if any, may
be applied under any payment option.
Minimum Amounts If the amount to be applied under any option is less than
$2,000, we may pay that amount in one sum instead. If
payments under a Fixed Income option amount to less than
$20 each, we have the right to make payments at less
frequent intervals. If the first payment under a Variable
Income option amounts to less than $20, we have the right
to make a one sum payment.
Option A Fixed Income Payment Option (Not available as a Variable
Income option). Each monthly payment will be for an
agreed fixed amount. The amount of each payment may not
be less-than $10 for each $1,000 applied. Interest will
be credited each month on the unpaid balance and added
to it. This interest will be at a rate determined by us,
but not less than the equivalent of 3% per year.
Payments continue until the amount we hold runs out. The
last payment will be for the balance only.
Option B Fixed Time Payment Option (Not available as a Variable
Income option). Equal monthly payments will be made for
any period selected, up to 30 years. The amount of each
payment depends on the total amount applied, the period
selected and the monthly payment rates we are using when
the first payment is due. The rate of any payment will
not be less than shown in the Option B Table.
----------------------------------------------------------
Option B Table
Minimum Monthly Payment Rates For Each $1,000 Applied
Monthly Monthly
Years Payment Years Payment
1 $84.47 16 $ 6.53
2 42.86 17 6.23
3 28.99 18 5.96
4 22.06 19 5.73
5 17.91 20 5.51
6 15.14 21 5.32
7 13.16 22 5.15
8 11.68 23 4.99
9 10.53 24 4.84
10 9.61 25 4.71
11 8.86 26 4.59
12 8.24 27 4.47
13 7.71 28 4.37
14 7.26 29 4.27
15 6.87 30 4.18
For quarterly payment, multiply by 2.993. For
semiannual payment, multiply by 5.963. For annual
payment, multiply by 11.839.
----------------------------------------------------------
935-1A-8200
Option C Lifetime Payment Option (Available as a Fixed Income option and
as a Variable Income option). For Fixed Income Option C, the
monthly payments are equal. For Variable Income Option C, the
payments are not guaranteed as to amount and may vary. For either
option, the payments are based on the life of a named person.
Payments will continue for the life of that person. The three
variations are:
(1) Payments for life only. No specific number of payments is
guaranteed. Payments stop when the named person dies.
(2) Payments guaranteed for amount applied. Payments stop when
they equal the amount applied or when the named person dies,
whichever is later. For Fixed Income Option C, "amount
applied" means the dollar amount used to provide the income.
For Variable Income Option C, "amount applied" means a number
of monthly payments. This number is equal to the dollar
amount used to provide the income divided by the dollar
amount of the first monthly payment.
(3) Payments guaranteed for 5 or 10 years. Payments stop at the
end of the selected guaranteed period or when the named
person dies, whichever is later.
The Fixed Income Option C Table shows the minimum monthly payment
for each $1,000 applied. The Variable Income Option C Table shows
the minimum amount of the first monthly payment for each $1,000
applied. The actual payments will be based on the monthly payment
rates we are using when the first payment is due. They will not
be less than shown in the Table.
-------------------------------------------------------------------
Fixed Income Option C Table
Minimum Monthly Payment Rates For Each $1,000 Applied
Payments Payments Guaranteed For
Age* For Life Amount 5 10
Male Female Only Applied Years Years
35 40 $3.55 $3.48 $3.54 $3.53
40 45 3.78 3.68 3.77 3.76
45 50 4.09 3.94 4.08 4.06
50 55 4.49 4.26 4.48 4.43
55 60 5.01 4.66 4.98 4.90
60 65 5.70 5.17 5.65 5.50
65 70 6.68 5.85 6.57 6.25
70 75 8.09 6.77 7.84 7.17
75 80 10.19 8.01 9.58 8.14
80 85 13.40 9.75 11.80 8.96
85 18.44 12.20 14.27 9.43
* Age on birthday nearest the due date of the first payment.
Monthly payment rates for ages not shown will be furnished on
request. Monthly payment rates for ages over 85 are the same as
those for 85.
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--------------------------------------------------------------------------------
Variable Income Option C Table
Minimum Monthly Payment Rates For First Payment For Each
$1,000 Applied, Based On 4% Assumed Investment Rate
Payments Payments Guaranteed For
Adjusted For Life Amount 5 10
Age* Only Applied Years Years
M F M F M F M F
40 $4.11 $3.92 $4.04 $3.87 $4.10 $3.91 $4.09 $3.90
45 4.31 4.07 4.20 4.01 4.30 4.06 4.28 4.05
50 4.55 4.26 4.40 4.18 4.54 4.25 4.51 4.23
55 4.85 4.50 4.64 4.39 4.83 4.49 4.78 4.47
60 5.22 4.82 4.94 4.66 5.19 4.80 5.11 4.77
65 5.70 5.23 5.31 5.00 5.66 5.21 5.53 5.15
70 6.35 5.80 5.79 5.44 6.28 5.76 6.06 5.65
75 7.23 6.59 6.40 6.00 7.08 6.52 6.70 6.28
80 8.42 7.68 7.19 6.68 8.14 7.50 7.45 7.01
85 10.07 9.10 8.21 7.47 9.51 8.70 8.25 7.72
* Age on birthday nearest the due date of the first payment, adjusted according
to the table in the Basis Of Computation provision in Part 7. Monthly payment
rates for adjusted ages not shown will be furnished on request. Monthly
payment rates for adjusted ages over 85 are the same as those for 85.
--------------------------------------------------------------------------------
Option D Interest Payment Option (Not available as a Variable Income
option). We will hold any amount applied under this option.
Interest on the unpaid balance will be paid each month at a rate
determined by us. This rate will not be less than the equivalent
of 3% per year.
Option E Joint Lifetime Payment Option (Available as a Fixed Income
option and as a Variable Income option). For a Fixed Income
Option E, the monthly payments are equal. For Variable Income
Option E, the payments are not guaranteed as to amount and may
vary. For either option, the payments are based on the lives of
two named persons. While both are living, one payment will be
made each month. When one dies, payments continue for the
lifetime of the other. The two variations are:
(1) Payments for two lives only. No specific number of payments
is guaranteed. Payments stop when both persons have died.
(2) Payments guaranteed for 10 years. Payments stop at the end of
10 years, or when both named persons have died, whichever is
later.
The Fixed Income Option E Table shows the minimum monthly payment
for each $1,000 applied. The Variable Income Option E Table shows
the minimum amount of the first monthly payment for each $1,000
applied. The actual payments will be based on the monthly rates
we are using when the first payment is due. They will not be less
than shown in the Table.
935-1A-8200
--------------------------------------------------------------------------------
Fixed Income Option E Table
Minimum Monthly Payment Rates For Each $1,000 Applied
Payments For Two Lives Only
M 50 M 55 M 60 M 65 M 70 M 75
Age* F 55 F 60 F 65 F 70 F 75 F 80
M F
50 55 $3.90 $4.05 $4.17 $4.28 $4.36 $4.41
55 60 4.05 4.26 4.46 4.63 4.76 4.86
60 65 4.17 4.46 4.74 5.02 5.25 5.42
65 70 4.28 4.63 5.02 5.42 5.80 6.12
70 75 4.36 4.76 5.25 5.80 6.39 6.95
75 80 4.41 4.86 5.42 6.12 6.95 7.83
80 85 4.45 4.93 5.55 6.36 7.40 8.65
Payments Guaranteed For 10 Years
M 50 M 55 M 60 M 65 M 70 M 75
Age* F 55 F 60 F 65 F 70 F 75 F 80
M F
50 55 $3.89 $4.04 $4.17 $4.27 $4.34 $4.39
55 60 4.04 4.25 4.45 4.61 4.74 4.83
60 65 4.17 4.45 4.73 4.99 5.21 5.36
65 70 4.27 4.61 4.99 5.38 5.73 6.00
70 75 4.34 4.74 5.21 5.73 6.25 6.69
75 80 4.39 4.83 5.36 6.00 6.69 7.35
80 85 4.42 4.87 5.45 6.16 6.99 7.82
* Age on birthday nearest the due date of the first payment. Monthly
payment rates for ages not shown will be furnished on request. Monthly
payment rates for ages over 85 are the same as those for 85.
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Variable Income Option E Table
Minimum Monthly Payment Rates For First Payment For Each
$1,000 Applied, Based On 4% Assumed Investment Rate
Payments For Two Lives Only -- Both Males
Adjusted
Age* M 50 M 55 M 60 M 65 M 70 M 75 M 80 M 85
M 50 $4.05 $4.14 $4.22 $4.29 $4.35 $4.40 $4.45 $4.48
M 55 4.14 4.25 4.35 4.45 4.54 4.62 4.69 4.74
M 60 4.22 4.35 4.49 4.63 4.76 4.88 4.98 5.05
M 65 4.29 4.45 4.63 4.81 5.00 5.17 5.32 5.44
M 70 4.35 4.54 4.76 5.00 5.25 5.49 5.72 5.91
M 75 4.40 4.62 4.88 5.17 5.49 5.83 6.16 6.46
M 80 4.45 4.69 4.98 5.32 5.72 6.16 6.63 7.08
M 85 4.48 4.74 5.05 5.44 5.91 6.46 7.08 7.74
(continued)
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Payments For Two Lives Only -- Both Females
Adjusted
Age* F 50 F 55 F 60 F 65 F 70 F 75 F 80 F 85
F 50 $3.90 $3.97 $4.04 $4.09 $4.14 $4.17 $4.20 $4.22
F 55 3.97 4.07 4.15 4.23 4.30 4.36 4.40 4.43
F 60 4.04 4.15 4.27 4.39 4.49 4.58 4.65 4.70
F 65 4.09 4.23 4.39 4.55 4.70 4.84 4.95 5.04
F 70 4.14 4.30 4.49 4.70 4.91 5.12 5.30 5.45
F 75 4.17 4.36 4.58 4.84 5.12 5.42 5.70 5.93
F 80 4.20 4.40 4.65 4.95 5.30 5.70 6.10 6.46
F 85 4.22 4.43 4.70 5.04 5.45 5.93 6.46 6.98
Payments For Two Lives Only -- One Male, One Female
Adjusted
Age* F 50 F 55 F 60 F 65 F 70 F 75 F 80 F 85
M 50 $3.97 $4.06 $4.15 $4.23 $4.30 $4.37 $4.42 $4.46
M 55 4.03 4.14 4.26 4.37 4.48 4.57 4.64 4.71
M 60 4.08 4.22 4.37 4.52 4.66 4.80 4.91 5.00
M 65 4.13 4.29 4.47 4.66 4.86 5.05 5.22 5.36
M 70 4.16 4.35 4.56 4.80 5.06 5.33 5.57 5.78
M 75 4.19 4.39 4.63 4.92 5.25 5.60 5.95 6.26
M 80 4.21 4.43 4.69 5.01 5.41 5.86 6.34 6.79
M 85 4.23 4.45 4.73 5.09 5.54 6.09 6.70 7.32
Payments Guaranteed For 10 Years -- Two Males
Adjusted
Age* M 50 M 55 M 60 M 65 M 70 M 75 M 80 M 85
M 50 $4.04 $4.13 $4.21 $4.28 $4.34 $4.39 $4.44 $4.47
M 55 4.13 4.24 4.34 4.44 4.53 4.61 4.67 4.72
M 60 4.21 4.34 4.48 4.62 4.75 4.86 4.95 5.02
M 65 4.28 4.44 4.62 4.80 4.98 5.15 5.28 5.39
M 70 4.34 4.53 4.75 4.98 5.22 5.46 5.66 5.83
M 75 4.39 4.61 4.86 5.15 5.46 5.77 6.07 6.32
M 80 4.44 4.67 4.95 5.28 5.66 6.07 6.48 6.85
M 85 4.47 4.72 5.02 5.39 5.83 6.32 6.85 7.35
Payments Guaranteed For 10 Years -- Two Females
Adjusted
Age* F 50 F 55 F 60 F 65 F 70 F 75 F 80 F 85
F 50 $3.89 $3.96 $4.03 $4.08 $4.13 $4.16 $4.19 $4.21
F 55 3.96 4.06 4.14 4.22 4.29 4.35 4.39 4.42
F 60 4.03 4.14 4.26 4.38 4.48 4.57 4.64 4.69
F 65 4.08 4.22 4.38 4.54 4.69 4.83 4.94 5.02
F 70 4.13 4.29 4.48 4.69 4.90 5.11 5.28 5.41
F 75 4.16 4.35 4.57 4.83 5.11 5.39 5.65 5.86
F 80 4.19 4.39 4.64 4.94 5.28 5.65 6.01 6.31
F 85 4.21 4.42 4.69 5.02 5.41 5.86 6.31 6.72
(continued)
935-1A-8200
Payments Guaranteed For 10 Years - One Male, One Female
Adjusted
Age* F 50 F 55 F 60 F 65 F 70 F 75 F 80 F 85
M 50 $3.96 $4.05 $4.14 $4.22 $4.29 $4.36 $4.41 $4.45
M 55 4.02 4.13 4.25 4.36 4.47 4.56 4.63 4.69
M 60 4.07 4.21 4.36 4.51 4.65 4.79 4.89 4.97
M 65 4.12 4.28 4.46 4.65 4.85 5.04 5.19 5.31
M 70 4.15 4.34 4.55 4.79 5.05 5.30 5.53 5.71
M 75 4.18 4.38 4.62 4.91 5.23 5.56 5.88 6.14
M 80 4.20 4.42 4.68 5.00 5.38 5.80 6.23 6.59
M 85 4.22 4.44 4.72 5.06 5.50 6.00 6.53 7.00
*Age on birthday nearest the due date of the first payment,
adjusted according to the table in the Basis Of Computation
provision in Part 7. Monthly payment rates for adjusted ages
not shown will be furnished on request. Monthly payment rates
for adjusted ages over 85 are the same as those for 85.
----------------------------------------------------------------
Option F Joint Lifetime Payment Option With Reduced Payments (Available
as a Fixed Income option and as a Variable Income option).
Monthly payments are based on the lives of two named persons.
Payments will continue while both are living. When one dies,
reduced payments will continue for the lifetime of the other.
These reduced payments will be two-thirds of what they would have
been if both persons had continued to live. Payments stop when
both persons have died.
The Fixed Income Option F Table shows the minimum monthly payment
for each $1,000 applied. The Variable Income Option F Table shows
the minimum amount of the first monthly payment for each $1,000
applied. The actual payments will be based on the rates we are
using when the first payment is due. They will not be less than
shown in the Table.
------------------------------------------------------------
Fixed Income Option F Table
Minimum Monthly Payment Rates For Each $1,000 Applied
M 50 M 55 M 60 M 65 M 70 M 75
Age* F 55 F 60 F 65 F 70 F 75 F 80
M F
50 55 $4.27 $4.48 $4.70 $4.95 $5.21 $5.48
55 60 4.48 4.73 5.00 5.30 5.62 5.96
60 65 4.70 5.00 5.34 5.72 6.13 6.55
65 70 4.95 5.30 5.72 6.20 6.73 7.29
70 75 5.21 5.62 6.13 6.73 7.43 8.20
75 80 5.48 5.96 6.55 7.29 8.20 9.26
80 85 5.74 6.28 6.97 7.86 9.00 10.40
*Age on birthday nearest the due date of the first
payment. Monthly payment rates for ages not shown will
be furnished on request. Monthly payment rates for ages
over 85 are the same as those for 85.
------------------------------------------------------------
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--------------------------------------------------------
Variable Income Option F Table
Minimum Monthly Payment Rates For First Payment For Each
$1,000 Applied, Based On 4% Assumed Investment Rate
Payments For Two Lives Only - Both Males
Adjusted
Age* M 50 M 55 M 60 M 65 M 70 M 75 M 80 M 85
M 50 $4.37 $4.49 $4.62 $4.77 $4.94 $5.13 $5.33 $5.53
M 55 4.49 4.63 4.78 4.95 5.14 5.35 5.57 5.81
M 60 4.62 4.78 4.95 5.15 5.37 5.61 5.87 6.14
M 65 4.77 4.95 5.15 5.37 5.63 5.92 6.22 6.54
M 70 4.94 5.14 5.37 5.63 5.94 6.28 6.65 7.04
M 75 5.13 5.35 5.61 5.92 6.28 6.69 7.15 7.65
M 80 5.33 5.57 5.87 6.22 6.65 7.15 7.72 8.35
M 85 5.53 5.81 6.14 6.54 7.04 7.65 8.35 9.15
Payments For Two Lives Only - Both Females
Adjusted
Age* F 50 F 55 F 60 F 65 F 70 F 75 F 80 F 85
F 50 $4.12 $4.23 $4.34 $4.47 $4.61 $4.78 $4.97 $5.15
F 55 4.23 4.34 4.47 4.61 4.78 4.97 5.18 5.38
F 60 4.34 4.47 4.62 4.78 4.98 5.19 5.43 5.66
F 65 4.47 4.61 4.78 4.98 5.20 5.46 5.73 6.00
F 70 4.61 4.78 4.98 5.20 5.47 5.78 6.11 6.44
F 75 4.78 4.97 5.19 5.46 5.78 6.15 6.56 6.98
F 80 4.97 5.18 5.43 5.73 6.11 6.56 7.07 7.60
F 85 5.15 5.38 5.66 6.00 6.44 6.98 7.60 8.27
Payments For Two Lives Only - One Male, One Female
Adjusted
Age* F 50 F 55 F 60 F 65 F 70 F 75 F 80 F 85
M 50 $4.24 $4.35 $4.48 $4.63 $4.80 $5.00 $5.21 $5.42
M 55 4.35 4.48 4.62 4.79 4.98 5.20 5.44 5.68
M 60 4.46 4.61 4.77 4.96 5.18 5.44 5.71 5.98
M 65 4.59 4.75 4.94 5.16 5.42 5.71 6.03 6.36
M 70 4.74 4.92 5.13 5.38 5.69 6.04 6.42 6.81
M 75 4.90 5.10 5.34 5.63 5.98 6.40 6.87 7.36
M 80 5.07 5.29 5.56 5.89 6.30 6.80 7.37 7.98
M 85 5.25 5.49 5.79 6.16 6.63 7.23 7.92 8.68
*Age on birthday nearest the due date of the first
payment, adjusted according to the table in the
Basis Of Computation provision in Part 7. Monthly
payment rates for adjusted ages not shown will be
furnished on request. Monthly payment rates for
adjusted ages over 85 are the same as those for 85.
--------------------------------------------------------
Electing A Payment To elect any option, we require that a written request,
Option satisfactory to us, be received at our Home Office. The
Owner may elect an option during the Annuitant's
lifetime. If the death benefit is payable in one sum when
the Annuitant dies, the Beneficiary may elect an option
with our consent.
935-1A-8200
Options for any amount payable to an association,
corporation, partnership or fiduciary are available
with our consent. However, a corporation or partnership
may apply any amount payable to it under Option C, E or
F if the option payments are based on the life or lives
of the Annuitant, the Annuitant's spouse, any child of
the Annuitant, or any other person agreed to by us.
Effective Date And The effective date of an option is the date the amount
Payment Date is applied under that option. For a death benefit, this
is the date that due proof of the Annuitant's death is
received at our Home Office. For a maturity value, it
is the date the contract matures. For the cash
redemption value, it is the effective date of
redemption.
The first payment is due on the effective date, except
that the first payment under Option D is due one month
later. A later date for the first payment may be
requested in the payment option election. All payment
dates will fall on the same day of the month as the
first one. No payment will become due until a payment
date. No part payment will be made for any period
shorter than the time between payment dates.
Example: Monthly payments are being made to your son on
the 1st of each month. He dies on the 10th. No
part payment is due your son or his estate for
the period between the 1st and the 10th.
Withdrawals And If provided in the payment option election, the
Changes following rights will be available:
. Under Options A and D, all or part of the unpaid
balance may be withdrawn or applied under any
other payment option.
. Under Option B, the commuted value of the future
payments may be withdrawn or applied under any
other option. We discuss commuted value below.
. Under Options C and E, the commuted value of the
guaranteed future payments, if any, may be
withdrawn. The withdrawal will not affect any
payments that may become due after the guaranteed
period. This means that if any person on whose
life these payments depend lives beyond that
period, payments will start up again.
Withdrawals of amounts applied under any Variable
Income option will be paid within seven days after the
written request for withdrawal is received at our Home
Office. This time period is subject to any extension
permitted under federal laws, rules and regulations
which apply to that withdrawal.
Commuted Value When computing the payments under Fixed Income Options
B, C and E, we include interest from the effective date
of the option to the date of each payment. If future
payments are withdrawn or paid early, we must deduct
the amount of interest included for the period after
withdrawal or early payment. The commuted value of
future payments is the sum of those payments, less the
interest from the date of withdrawal or early payment
to the date of each future payment. The interest rate
originally used in computing the option payments will
be the rate used to determine the commuted value.
Example: An option payment of $105 is due a year from
now. The annual interest rate we used in
figuring this payment was 5%. Today you
withdraw the commuted value of that payment.
Since the interest we included was $5, the
commuted value of the payment today will be
the payment less that interest, or $100.
For a Variable Income option, the number of annuity
units that option has in each division of the Separate
Account will be commuted at the Assumed Investment
Rate. The commuted units in each division will be
multiplied by the annuity unit value for that
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935-1A-8200
-19-
division on the date the commuted value is determined.
The commuted value will be the sum of the values
determined for each division.
Income Protection To the extent permitted by law, each option payment and
any withdrawal shall be free from legal process and the
claim of any creditor of the person entitled to them.
No option payment and no amount held under an option
can be taken or assigned in advance of its payment
date, unless the Owner's written consent is given
before the Annuitant dies. This consent must be
received at our Home Office.
Part 7. Notes On Our Computations
This Part covers some technical points about this
contract.
Net Investment Factor For each division of the Separate Account, the Net
Investment Factor for any valuation period is the gross
investment rate for that period plus 1.00000000 and
minus an asset charge. This asset charge will be
.00003425 for each day of a valuation.period. The Net
Investment Factor may be greater or less than
1.00000000.
For each division of the Separate Account, the gross
investment rate for any valuation period is equal to:
. The net earnings of that division during the
valuation period, divided by
. The value of the total assets of that division at
the beginning of the valuation period.
The net earnings of each division are equal to the
accrued investment income and capital gains and losses
(realized and unrealized) of that division reduced by
any amount charged against that division for taxes paid
or reserved for by us. The gross investment rate will
be determined by us in accordance with generally
accepted accounting principals and applicable laws,
rules and regulations. This determination shall be
conclusive upon the Owner, the Annuitant, any
Beneficiary and any assignee and any other person under
this contract.
Accumulation Unit The value of an accumulation unit in each division was
Value set at $1.00000000, on the first valuation date
selected by us. The value on any date thereafter is
equal to the product of the Net Investment Factor for
that division for the valuation period which includes
that date and the value of the corresponding
accumulation unit value on the preceding valuation
date.
Annuity Unit Value All annuity unit values in each division were set at
$1.00000000 on the first valuation date selected by us.
The value on any date thereafter is equal to (a) the
Net Investment Factor for that division for the
valuation period which includes that date divided by
(b) the sum of 1.00000000 and the rate of interest for
the number of days in the valuation period, computed at
an effective annual rate equal to the Assumed
Investment Rate, and multiplied by (c) the
corresponding annuity unit value on the preceding
valuation date.
Assumed Investment The Assumed Investment Rate is the annual interest rate
Rate assumed,in determining the first payment of variable
payment options. The amount of each subsequent payment
from each division of the Separate Account will depend
on the relationship between the Assumed Investment Rate
and the actual investment performance of that division.
The Assumed Investment Rate will be 4% per annum. If a
4% rate would result in a first variable payment larger
than that permitted under applicable state law, we will
select a lower rate which will comply with that law.
935-1A-8200
Adjustment Of Units We have the right to split or consolidate the number of
And Values accumulation units or annuity units credited to this
contract, with a corresponding increase or decrease in
the unit values. We may exercise this right whenever we
consider an adjustment of units to be desirable.
However, strict equity will be preserved in making any
adjustment. No adjustment will have any material effect
on the benefits, provisions or investment return of
this contract, or on the Owner, Annuitant, any
Beneficiary, any assignee or other person, or on us.
Payment Calculation Payments under a Variable Income option are calculated
Date on a payment calculation date. That date is the
earliest valuation date which is not more than 10 days
before the due date of the payment.
Computing Variable The amount payable from each division of the Separate
Income Payments Account is multiplied by the rates we are using for the
option as of the date the first payment is due. For
each division, the figure which results is multiplied
by the ratio of the value of an accumulation unit on
the first payment calculation date to the value of an
accumulation unit on the date the first payment is due.
The total of the amount of income determined for each
division is the first payment. It is due on the first
payment date.
Future payments under a Variable Income option are
measured by annuity units. The number of annuity units
in each division is the portion of the first payment
provided by that division divided by the annuity unit
value for that division on the first payment
calculation date.
For payments after the first one, the annuity units in
each division are multiplied by the annuity unit value
on the payment calculation date that applies. The
payment to be made on the payment due date is the sum
of the amounts provided by each division.
Basis Of Computation Minimum payments under Payment Options C, E and F are
shown in the Tables in Part 6. In computing the
payments under Fixed Income options, we use mortality
rates from the a-1949 Annuitants Mortality Table with
Projection B for 30 years and with female rates set
back five years. The annual interest rate used is 3%.
For Variable Income options C, E and F, we use
mortality rates based on the 1971 Individual Annuity
Mortality Table (1971 IAM) projected to decrease l%%
annually from 1971. The Variable Income Option C, E and
F Tables are computed for annuitants born in 1942. For
all other years of birth, the mortality improvement is
determined by adjusting the annuitant's age according
to the following table:
Date of Birth Adjustment to Actual Age
1900-1904 +8 Years
1905-1909 +7 Years
1910-1914 +6 Years
1915-1919 +5 Years
1920-1924 +4 Years
1925-1929 +3 Years
1930-1934 +2 Years
1935-1939 +l Year
1940-1944 +0 Years
1945-1949 -1 Year
1950-1954 -2 Years
1955-1959 -3 Years
1960-1964 -4 Years
1965-1969 -5 Years
1970-1974 -6 Years
1975-1979 -7 Years
-20-
935-1A-8200
-21-
1980-1984 -8 Years
1985-1989 -9 Years
1990-1994 -10 Years
1995-1999 -11 Years
The annual interest rate used is the Assumed Investment
Rate discussed in this Part.
Guarantees All benefits, payments and values under this contract
which depend on the investment performance of the
Separate Account may increase or decrease, as discussed
in this Part. However, we guarantee that the dollar
amounts of variable benefits will not be adversely
affected by variations of actual expenses from expense
charges stated in this contract. Also, those benefits
will not be adversely affected by variations in actual
mortality from the mortality assumptions stated in this
contract.
A part of the assets of the Separate Account is the
reserve for variable benefits and liabilities which
depend on the investment performance of that Account.
That part of the assets shall not be charged with any
liabilities we have which arise from any business we
conduct which does not depend on the performance of
that Account.
935-1A-8200
WHERE TO FIND IT
Page No.
The Schedule Page.......................................................... 1
Part 1. -The Basics Of This Contract......................................... 2
The Parties Involved - Owner, Annuitant,
Beneficiary, Irrevocable Beneficiary..................................... 2
Dates - Contract Date, Contract Anniversary
Date, Contract Year, Issue Date, Maturity Date........................... 2
This Is A Legal Contract................................................... 2
Representations And Contestability......................................... 3
Misstatement Of Age........................................................ 3
Meaning Of In Force........................................................ 3
Home Office................................................................ 3
Contract State............................................................. 3
Part 2. - Purchase Payments.................................................. 3
The First Purchase Payment................................................. 3
Normal Purchase Payments................................................... 3
Purchase Payment Flexibility And Notices................................... 3
Where To Pay............................................................... 4
Part 3. - Values And Charges................................................. 4
The Separate Account....................................................... 4
Valuation Date And Valuation Period........................................ 4
Accumulation Units And Annuity Units....................................... 4
Purchase Of Accumulation Units............................................. 4
Date Of Purchase........................................................... 4
Identification Of Accumulation Units....................................... 5
Accumulated Value Of Contract.............................................. 5
Premium Tax................................................................ 5
Administrative Charge...................................................... 5
Deductions For Sales Charges............................................... 6
Amount Of Sales Charge Deduction........................................... 6
Part 4. - Life Benefits...................................................... 7
Contract Ownership......................................................... 7
Rights Of Owner.......................................................... 7
Assigning This Contract.................................................. 7
Changing The Owner Or Beneficiary........................................ 7
Transfer Of Accumulation Units........................................... 7
Redeeming This Contract.................................................... 7
Right To Redeem.......................................................... 7
Cash Redemption Value.................................................... 7
Partial Redemptions...................................................... 8
When And How We Pay...................................................... 8
Right To Change The Maturity Date.......................................... 8
Electing An Early Maturity Date.......................................... 8
Electing A Later Maturity Date........................................... 8
Other Provisions Regarding Life Benefits................................... 8
Periodic Statements...................................................... 8
Receipt Of Papers........................................................ 9
Contract Is Not Participating............................................ 9
Part 5. - Maturity Benefit And Death Benefit................................. 9
Maturity Benefit........................................................... 9
Maturity Value........................................................... 9
Monthly Life Income...................................................... 9
Alternate Settlements At Maturity........................................ 9
Death Benefit.............................................................. 10
Amount Of Death Benefit.................................................. 10
Interest On Maturity Or Death Benefit...................................... 10
Interest Payable......................................................... 10
Part 6. - Payment Options.................................................... 10
Fixed Income Payment Options............................................... 10
Variable Income Payment Options............................................ 10
Availability Of Payment Options............................................ 11
Minimum Amounts............................................................ 11
Electing A Payment Option.................................................. 17
Effective Date And Payment Date............................................ 18
Withdrawals And Changes.................................................... 18
Commuted Value............................................................. 18
Income Protection.......................................................... 19
Part 7. - Notes On Our Computations.......................................... 19
Net Investment Factor...................................................... 19
Accumulation Unit Value.................................................... 19
Annuity Unit Value......................................................... 19
Assumed Investment Rate.................................................... 19
Adjustment Of Units And Values............................................. 20
Payment Calculation Date................................................... 20
Computing Variable Income Payments......................................... 20
Basis Of Computation....................................................... 20
Guarantees................................................................. 21
Any Riders and Endorsements, and a Copy of The Application For The Contract,
Follow Page 21.
[LOGO OF MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY APPEARS HERE]
SPRINGFIELD, MASSACHUSETTS 01111
Flexible Purchase Payment Multi-Fund
Variable Annuity Contract
This Contract provides that:
A monthly life income is payable beginning on the date this contract matures
if the Annuitant is living at that time
A death benefit is payable if the Annuitant dies before this contract
matures
Flexible purchase payments may be made to the date this contract matures or
to the Annuitant's death, if earlier
This Contract is not participating. It does not provide for the payment of
dividends.
Notice Of Annual Meeting
The Owner is hereby notified that by virtue of this contract he or she is a
member of Massachusetts Mutual Life Insurance Company and is entitled to
vote either in person or by proxy at any and all meetings of said Company.
The annual meetings are held at its Home Office, in Springfield,
Massachusetts, on the second Wednesday of April in each year at 2 o'clock
p.m.
