SECURITY BENEFIT LIFE INSURANCE COMPANY
GROUP FLEXIBLE PREMIUM DEFERRED VARIABLE ANNUITY CONTRACT
THE COMPANY'S PROMISE
In consideration of the Purchase Payments and the attached application,
Security Benefit Life Insurance Company (the "Company") will pay the
benefits of the Contract according to its provisions.
LEGAL CONTRACT
PLEASE READ YOUR CONTRACT CAREFULLY. It describes the terms of a legal
Contract between the Owner and the Company. The Contract's table of
contents is on page 2.
RIGHT TO CANCEL
IF FOR ANY REASON THE OWNER IS NOT SATISFIED WITH THIS CONTRACT, THE OWNER
MAY RETURN IT TO THE COMPANY WITHIN 10 DAYS FROM THE DATE OF RECEIPT. IF
RETURNED, THIS CONTRACT SHALL BE DEEMED VOID FROM THE CONTRACT DATE. THE
COMPANY WILL REFUND ANY PURCHASE PAYMENTS MADE AND ALLOCATED TO THE
GENERAL ACCOUNT AND WILL REFUND SEPARATE ACCOUNT CONTRACT VALUE AS OF THE
DATE THE RETURNED CONTRACT IS RECEIVED BY THE COMPANY.
Signed for Security Benefit Life Insurance Company on the Contract Date.
▇▇▇▇▇ ▇. ▇▇▇▇▇ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Secretary President
A BRIEF DESCRIPTION OF THIS CONTRACT
This is a GROUP FLEXIBLE PREMIUM DEFERRED VARIABLE ANNUITY CONTRACT.
* In return for Purchase Payments, the Company will pay the annuity
and other benefits as provided in this Contract.
* Individual allocations are maintained for Participants.
* This Contract is participating.
ALL PAYMENTS AND VALUES PROVIDED BY THE CONTRACT, WHEN BASED ON THE INVESTMENT
EXPERIENCE OF THE SEPARATE ACCOUNT, ARE VARIABLE AND MAY INCREASE OR DECREASE
IN ACCORDANCE WITH THE INVESTMENT EXPERIENCE OF THE SEPARATE ACCOUNT. THERE
ARE NO GUARANTEED MINIMUM PAYMENTS OR CASH VALUES. (SEE "CONTRACT VALUE AND
EXPENSE PROVISIONS" AND "ANNUITY PAYMENT PROVISIONS" FOR DETAILS.)
[SBL LOGO]
SECURITY BENEFIT LIFE INSURANCE COMPANY
A Member of The Security Benefit Group of Companies
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GV6322 (9-97) BP
TABLE OF CONTENTS
Page
CONTRACT SPECIFICATIONS............................. 3
DEFINITIONS......................................... 4-7
GENERAL PROVISIONS.................................. 7-10
The Contract................................... 7
Certificates................................... 7
Plan Provisions................................ 7
Change of Contract............................. 7
Future Participants............................ 8
Misstatement of Age or Sex..................... 8
Evidence of Survival........................... 8
Incontestability............................... 8
Assignment..................................... 8
Transfers...................................... 8, 9
Claims of Creditors............................ 9
Nonforfeiture Values........................... 9
Participation.................................. 10
Statements..................................... 10
BENEFICIARY PROVISIONS.............................. 10
Primary and Secondary Beneficiaries............ 10
Beneficiary Changes............................ 10
PURCHASE PAYMENT PROVISIONS......................... 10-11
Flexible Purchase Payments..................... 10
Purchase Payment Limitations................... 11
Purchase Payment Allocation.................... 11
Place of Payment............................... 11
CONTRACT VALUE AND EXPENSE PROVISIONS 11-14
Contract Value................................. 11
General Account Contract Value................. 11, 12
General Account Interest Crediting............. 12
Traditional General Account.................... 12
DCA Plus Account............................... 12
Separate Account Contract Value................ 12
Accumulation Unit Value........................ 13
Net Investment Factor.......................... 13
Determining Accumulation Units................. 13, 14
Mortality and Expense Risk Charge.............. 14
Premium Tax Expense............................ 14
Administrative Charge.......................... 14
Mutual Fund Expenses........................... 14
WITHDRAWAL PROVISIONS............................... 14-17
Withdrawals.................................... 14, 15
Withdrawal Value............................... 15
Withdrawal Charges............................. 15, 16
Free Withdrawals............................... 16
Systematic Withdrawals......................... 16
Free Systematic Withdrawals.................... 17
Date of Request................................ 17
Payment of Withdrawal Benefits................. 17
DEATH BENEFIT PROVISIONS............................ 17-18
Death Benefit.................................. 17, 18
Proof of Death................................. 18
ANNUITY PAYMENT PROVISIONS.......................... 19-23
Annuity Commencement Date...................... 19
Change of Annuity Commencement Date............ 19
Annuity Start Amount........................... 19
Withdrawal Charges............................. 19
Annuity Tables................................. 19, 20
Annuity Payments............................... 20
Change of Annuity Option....................... 20
Fixed Annuity Payments......................... 20
Variable Annuity Payments...................... 20
Annuity Units.................................. 21
Net Investment Factor.......................... 21
Alternate Annuity Option Rates................. 22
Annuity Options................................ 22
Life Option.................................... 22
Life with Fixed Period Option.................. 22
Life with Installment or Unit Refund Option.... 22
Joint and Last Survivor Option................. 22
Fixed Period Option............................ 22
Fixed Payment Option........................... 22
Period Certain Option.......................... 23
Joint and Contingent Survivor Option........... 23
ANNUITY TABLES...................................... 24, 25
AMENDMENTS OR ENDORSEMENTS, if any
2
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VARIABLE ANNUITY CONTRACT SPECIFICATIONS
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OWNER: ABC Employer
CONTRACT NUMBER: Specimen
CONTRACT DATE: 6-30-1996
PLAN: Qualified
ASSIGNMENT: This Contract may not be assigned.
See Assignment Provision of this Contract.
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INITIAL PURCHASE PAYMENT.................... $500 ($25 pursuant to an Automatic
Investment Program)
MINIMUM SUBSEQUENT PURCHASE PAYMENTS........ $500 ($25 pursuant to an Automatic
Investment Program)
MINIMUM SYSTEMATIC WITHDRAWAL............... $100
MAXIMUM PARTICIPANT AGE..................... 80
MORTALITY AND EXPENSE RISK CHARGE........... 1.00% Annually
ANNUAL ADMINISTRATIVE FEE................... None
WITHDRAWAL CHARGES
Purchase Payment Year..................... 1 2 3 4 5 6 +
Withdrawal Charge......................... 5% 5% 5% 5% 5% 0%
FREE WITHDRAWAL PERCENTAGE....................... 10%
MINIMUM GUARANTEED RATE.......................... 3%
SEPARATE ACCOUNT................................. Variflex
SEPARATE ACCOUNT SERIES:
1 Money Market Series
2 High Grade Income Series
3 High Yield Series
4 Global Aggressive Bond Series
5 Growth-income Series
6 Equity Income Series
7 Managed Asset Allocation Series
8 Specialized Asset Allocation Series
9 Growth Series
10 Value Series
11 Worldwide Equity Series
12 Social Awareness Series
13 Emerging Growth Series
14 Small Cap Series
METHOD FOR DEDUCTIONS:
Deductions for Premium Taxes and any unallocated partial Withdrawals,
including Systematic Withdrawals, will be made sequentially from the Contract
Value in the order of the Series listed above and then from the DCA Plus
Account. The General Account is the last Account charged. The value of each
Account will be depleted before the next is charged.
* The Participant may select the Annuity Commencement Date and the Annuity
Option. If no Annuity Commencement Date or Annuity Option is selected by the
Participant, they will be assigned automatically.
3
GV6322A (9-97)
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DEFINITIONS
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ACCOUNT
An Account is one of the Series or General Account options.
ACCUMULATION UNIT
The Accumulation Unit is a unit of measure. It is used to compute the
Separate Account Contract Value prior to the Annuity Commencement Date. It is
also used to compute the Variable Annuity Payments for Annuity Options 5 and
6.
ANNUITY OPTION
An Annuity Option is a set of provisions that form the basis for making
Annuity Payments. The Annuity Option is set prior to the Annuity Commencement
Date. Please see "Annuity Options" on page 22.
ANNUITY COMMENCEMENT DATE
The Annuity Commencement Date is the date on which Annuity Payments are
scheduled to begin. This date may be changed by the Participant. Please see
"Annuity Commencement Date" on page 19.
ANNUITY UNIT
The Annuity Unit is a unit of measure used to compute Variable Annuity
Payments for Annuity Options 1 through 4, 7 and 8.
AUTOMATIC TRANSFERS
Automatic Transfers are Transfers among the Series and the General Account
options. Such transfers are made automatically on a periodic basis by the
Company at the written request of the Participant. The Company reserves the
right to discontinue, modify or suspend Automatic Transfers.
COMPANY
The Company is Security Benefit Life Insurance Company, ▇▇▇ ▇▇ ▇▇▇▇▇▇▇▇
▇▇▇▇▇▇, ▇▇▇▇▇▇, ▇▇▇▇▇▇ ▇▇▇▇▇-▇▇▇▇.
CONTRACT ANNIVERSARY
A Contract Anniversary is a 12-month anniversary of the Contract Date.
CONTRACT DATE
The Contract Date is the date the Participant's initial Purchase Payment is
applied and the date the Company uses to determine the date the Contract
becomes incontestable with respect to that Participant. Please see
"Incontestability" on page 8.
CONTRACT YEAR
Contract Years are measured from the Contract Date.
CURRENT INTEREST
The Company may in its discretion pay Current Interest on the General Account
options at a rate that exceeds the Minimum Guaranteed Rate shown on page 3.
The Company will declare the rate of Current Interest, if any, from time to
time.
DESIGNATED BENEFICIARY
Upon the death of the Participant, the Designated Beneficiary will be the
first person on the following list who is alive on the date of death:
1. Primary Beneficiary;
2. Secondary Beneficiary; and
3. the Participant's estate if no one listed above is alive.
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GV6322B (9-97)
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DEFINITIONS (CONTINUED)
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DESIGNATED BENEFICIARY (CONTINUED)
The Designated Beneficiary receives a death benefit upon the death of the
Participant prior to the Annuity Commencement Date. Please see "Beneficiary
Provisions" on page 10 and "Death Benefit Provisions" on pages 17 and 18.
GENERAL ACCOUNT
The General Account is all of the Company's assets other than those allocated
to the Separate Account or to any other separate account of the Company. The
Company manages the General Account and guarantees that it will credit
interest on General Account Contract Value at an annual rate at least equal
to the Minimum Guaranteed Rate. This Rate is shown on page 3.
GENERAL ACCOUNT OPTIONS
There are two General Account options available under the Contract: (1) the
Traditional General Account; and (2) the DCA Plus Account.
HOME OFFICE
The address of the Company's Home Office is Security Benefit Life Insurance
Company, ▇▇▇ ▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇, ▇▇▇▇▇▇ ▇▇▇▇▇-▇▇▇▇.
NONNATURAL PERSON
Any group or entity that is not a living person, such as a trust or
corporation.
OWNER
The employer or other entity that makes application for the Contract.
PLAN
The employer-sponsored retirement plan, annuity purchase arrangement, or
deferred compensation program for which the Contract is issued.
PARTICIPANT
A person for whom or with respect to whom Purchase Payments are made under
the Contract.
PARTICIPANT ACCOUNT
An individual account which is established for a Participant to record the
Contract Value for the Participant.
PREMIUM TAX
Any Premium Taxes levied by a state or other governmental entity will be
charged against this Contract. When Premium Tax is assessed after the
Purchase Payment is applied, it will be deducted as described on page 3.
PURCHASE PAYMENT
A Purchase Payment is money Received by the Company for allocation to a
Participant Account.
PURCHASE PAYMENT YEAR
The first Purchase Payment Year begins on the date the Purchase Payment is
applied and increases by one on each successive Purchase Payment Anniversary.
RECEIVED BY THE COMPANY
The phrase "Received by the Company" means receipt by the Company in good
order at its Home Office, ▇▇▇ ▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇, ▇▇▇▇▇▇ ▇▇▇▇▇-▇▇▇▇.
5
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DEFINITIONS (CONTINUED)
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SEPARATE ACCOUNT
The Separate Account, shown on page 3 is a separate account established and
maintained by the Company under Kansas law. The Separate Account is
registered with the Securities and Exchange Commission under the Investment
Company Act of 1940 as a Unit Investment Trust. It was established by the
Company to support variable annuity contracts. The Company owns the assets of
the Separate Account and maintains them apart from the assets of its general
account and its other separate accounts. The assets held in the Separate
Account equal to the reserves and other Contract liabilities with respect to
the Separate Account may not be charged with liabilities arising from any
other business the Company may conduct.
Income and realized and unrealized gains and losses from assets in the
Separate Account are credited to, or charged against, the Separate Account
without regard to the income, gains or losses from the Company's general
account or its other separate accounts. The Separate Account is divided into
Series shown on page 3. ▇▇▇▇▇▇ and realized and unrealized gains and losses
from assets in each Series are credited to, or charged against, the Series
without regard to income, gains or losses in the other Series. The Company
has the right to transfer to its general account any assets of the Separate
Account that are in excess of the reserves and other Contract liabilities
with respect to the Separate Account. The value of the assets in the Separate
Account on each Valuation Date is determined as of the end of each Valuation
Date.
SERIES
The Separate Account is divided into Series which invest in shares of mutual
funds. Each Series may invest its assets in a separate class or series of a
designated mutual fund or funds. The Series are shown on page 3. Subject to
the regulatory requirements then in force, the Company reserves the right to:
1. change or add designated mutual funds or other investment vehicles;
2. add, remove or combine Series;
3. add, delete or make substitutions for securities that are held or
purchased by the Separate Account or any Series;
4. operate the Separate Account as a management investment company;
5. combine the assets of the Separate Account with other Separate Accounts
of the Company or an affiliate thereof;
6. restrict or eliminate any voting rights of the Owner with respect to the
Separate Account or other persons who have voting rights as to the
Separate Account; and
7. terminate and liquidate any Series.
If any of these changes result in a material change to the Separate Account
or a Series, the Company will notify the Owner of the change. The Company
will not change the investment policy of any Series in any material respect
without complying with the filing and other procedures of the insurance
regulators of the state of issue.
6
GV6322C (9-97)
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DEFINITIONS (CONTINUED)
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SERIES NET ASSET VALUE
The Series Net Asset Value is equal to: (1) the net asset value of all shares
of the underlying mutual fund held by the Series; plus (2) any cash or other
assets; less (3) all liabilities of the Series.
VALUATION DATE
A Valuation Date is each day the New York Stock Exchange and the Company's
Home Office are open for business.
VALUATION PERIOD
A Valuation Period is the interval of time from one Valuation Date to the
next Valuation Date.
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GENERAL PROVISIONS
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THE CONTRACT
The entire Contract between the Owner and the Company consists of the
Contract, the attached Application, and any Amendments, Endorsements or
Riders to the Contract. All statements made in the Application will, in the
absence of fraud, as ruled by a court of competent jurisdiction, be deemed
representations and not warranties. The Company will use no statement made by
or on behalf of the Owner or the Participant to void this Contract unless it
is in the written Application. Any change in the Contract can be made only
with the written consent of the President, a Vice President, or the Secretary
of the Company.
The Purchase Payment(s) and the Application must be acceptable to the Company
under its rules and practices. If they are not, the Company's liability shall
be limited to a return of the Purchase Payment(s).
CERTIFICATES
The Company will issue certificates to Participants. Each certificate will
set forth the benefits to which the Participant is entitled under the
Contract. Certificates are for information only and are not part of the
Contract.
PLAN PROVISIONS
The Contract is subject to the provisions of the Plan. To the extent provided
by the Plan, any rights that may be exercised by a Participant under the
Contract may instead be exercised by the Owner or a Plan representative.
CHANGE OF CONTRACT
The Company reserves the right to make any change to the provisions of the
Contract to comply with or give the Participant the benefit of any federal or
state statute, rule or regulation. This includes, but is not limited to,
requirements for annuity contracts under the Internal Revenue Code or the
laws of any state. The Company will provide the Owner with a copy of any such
change and will also file such a change with the insurance regulatory
officials of the state in which the Contract is delivered. In addition, upon
at least 30 days written notice to the Owner, the Company may make other
changes to this Contract that will apply only to individuals who become
Participants after the effective date of such change. All such changes will
be subject to any applicable regulatory requirements.
7
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GENERAL PROVISIONS (CONTINUED)
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FUTURE PARTICIPANTS
The Company may in its discretion curtail or prohibit new Participants under
the Contract upon written notice to the Owner.
MISSTATEMENT OF AGE AND SEX
If the age or sex of the Participant has been misstated, payments shall be
adjusted, when allowed by law, to the amount which would have been provided
for the correct age or sex. Proof of the age of Participant may be required
at any time, in a form suitable to the Company. If payments have already
commenced and the misstatement has caused an underpayment, the full amount
due will be paid with the next scheduled payment. If the misstatement has
caused an overpayment, the amount due will be deducted from one or more
future payments.
EVIDENCE OF SURVIVAL
When any payments under the Contract depend on the payee being alive on a
given date, proof that the payee is living may be required by the Company.
Such proof must be in a form accepted by the Company. The Company will have
the right to make reduced payments or withhold payments entirely until such
proof is received.
INCONTESTABILITY
The Contract will not be contested after it has been in force for two years
from the Contract Date during the life of the Participant.
ASSIGNMENT
The Contract cannot be sold, assigned, discounted, or pledged as collateral
for a loan or as security for the performance of an obligation. The benefits,
values, and rights under the Contract are not subject to any creditor claims
to the fullest extent permitted by law. The Contract and its rights cannot be
transferred to anyone other than the Company, except as provided under the
Plan or under a domestic relations order properly issued by a court of
competent jurisdiction and that complies with ERISA, if applicable. To the
extent permitted by the Code and applicable law, the Company will make a Full
or Partial Withdrawal payable to a third party upon the Participant's
request.
TRANSFERS
The Participant may Transfer Contract Value among the General Account options
and Series subject to the following.
The Participant may make only 14 Transfers per Contract Year. Transfers are
not allowed within 30 days of the Annuity Commencement Date. Automatic
Transfers are not included in the 14 Transfers allowed per Contract Year.
After the Annuity Commencement Date, for Annuity Options 1 through 4, 7 and
8, the Owner may Transfer Contract Value only among Series.
With respect to the DCA Plus Account, Transfers are allowed from that Account
only to the Series (excluding the Money Market Series) and Transfers are not
allowed from any Series or the Traditional General Account to the DCA Plus
Account.
GV6322D (9-97) 8
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GENERAL PROVISIONS (CONTINUED)
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TRANSFERS (CONTINUED)
The Company reserves the right to: (1) limit the amount that may be subject
to Transfer; (2) waive or limit the number of Transfers allowed each Contract
Year; and (3) suspend Transfers. Transfers must be at least $100.00 or, if
less, the remaining balance in the Account.
The total dollar amount that may be Transferred from the Traditional General
Account in a Contract Year is limited to the greatest of:
1. $5,000;
2. 1/5 of Contract Value allocated to the Traditional General Account on
the date the Transfer request is Received by the Company; or
3. 120% of the dollar amount Transferred from the Traditional General
Account in the prior Contract Year.
The Company reserves the right for a period of time to allow Transfers from
the Traditional General Account in amounts that exceed the limits set forth
above. In any Contract Year following a Contract Year during which such
limits were waived, the total dollar amount that may be Transferred is the
greatest of 1 above; 2 above; or
3. 120% of the lesser of:
a. the dollar amount Transferred from the Traditional General Account in
the prior Contract Year; or
b. the maximum total dollar amount that would have been allowed in the
prior Contract Year under the Transfer provisions above absent the
waiver.
The Company will effect a Transfer to or from a Series on the basis of
Accumulation Unit Value (or Annuity Unit Value) determined as of the end of
the Valuation Period in which the Transfer is effected. The Company will
effect a Transfer from the General Account on the basis of General Account
Contract Value as of the end of the Valuation Period in which the Transfer is
effected.
The Company reserves the right to delay Transfers from the General Account
for up to 6 months as required by most states. The Company will notify you if
there will be a delay.
CLAIMS OF CREDITORS
The Contract Value and other benefits under the Contract are exempt from the
claims of creditors of the Participant to the extent allowed by law.
NONFORFEITURE VALUES
The Death Benefits, Withdrawal Values and Annuity Payout Values will at least
equal the minimum required by law.
9
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GENERAL PROVISIONS (CONTINUED)
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PARTICIPATION
The Company pays dividends on some of its contracts. However, the Company
does not expect dividends to become payable on this Contract. At the end of
each Contract Year the Company will determine the Contract's dividend, if
any. The Participant may choose to have it (1) added to the Contract Value;
or (2) paid in cash. If no choice is made, any dividend will be added to
Contract Value.
STATEMENTS
At least once each Contract Year, the Participant shall be sent a statement
including the current Contract Value and any other information required by
law. The Participant may send a written request for a statement at other
intervals. The Company may charge a reasonable fee for such statements.
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BENEFICIARY PROVISIONS
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PRIMARY AND SECONDARY BENEFICIARIES
The Primary Beneficiary is named by the Participant. The Participant may
change any Beneficiary as described in "Beneficiary Changes" below. If the
Primary Beneficiary dies prior to the Participant, the Secondary Beneficiary
becomes the Primary Beneficiary. Unless the Participant directs otherwise,
when there are two or more Primary Beneficiaries, they will receive equal
shares.
BENEFICIARY CHANGES
Subject to the terms of any existing Assignment, the Participant may name a
new Primary Beneficiary or a new Secondary Beneficiary. Any new choice of
Primary Beneficiary or Secondary Beneficiary will revoke any prior choice.
Any change must be made in writing and recorded at the Home Office. The
change will become effective as of the date the written request is signed,
whether or not the Participant is living at the time the change is recorded.
A new choice of Primary Beneficiary or Secondary Beneficiary will not apply
to any payment made or action taken by the Company prior to the time it was
recorded. The Company may require the Contract be returned so these changes
may be made.
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PURCHASE PAYMENT PROVISIONS
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FLEXIBLE PURCHASE PAYMENTS
The Contract becomes in force when the initial Purchase Payment is applied.
The Participant is not required to continue Purchase Payments in the amount
or frequency originally planned. The Participant may: (1) increase or
decrease the amount of Purchase Payments, subject to any Contract limits; or
(2) change the frequency of Purchase Payments. A change in frequency or
amount of Purchase Payments does not require a written request. If no
Purchase Payment is received during the 180-day period beginning on the
Contract Date, the Participant Account will automatically terminate.
10
GV6322E (9-97)
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PURCHASE PAYMENT PROVISIONS (CONTINUED)
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PURCHASE PAYMENT LIMITATIONS
Purchase Payments exceeding $1,000,000 will not be accepted without prior
approval by the Company. The Minimum Subsequent Purchase Payment amount is
shown on page 3.
PURCHASE PAYMENT ALLOCATION
Purchase Payments may be allocated among the General Account options and the
Series. The allocations may be a whole dollar amount or whole percentage.
However, no less than $25 per Purchase Payment may be allocated to any
Account. The Participant may change the allocations by written notice to the
Company, unless the Owner has retained that right under the Plan.
PLACE OF PAYMENT
All Purchase Payments under the Contract are to be paid to the Company at its
Home Office. Purchase Payments after the initial Purchase Payment are applied
as of the end of the Valuation Period during which they are Received by the
Company.
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CONTRACT VALUE AND EXPENSE PROVISIONS
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CONTRACT VALUE
On any Valuation Date, the Contract Value is the sum of the following amounts
allocated to a Participant Account: (1) the Separate Account Contract Value;
and (2) the General Account Contract Value. At any time after the first
Contract Year and before the Annuity Commencement Date, the Company reserves
the right to pay to the Participant the Contract Value as a lump sum if it is
below $2,000.
GENERAL ACCOUNT CONTRACT VALUE
On any Valuation Date, the General Account Contract Value is equal to the
first Purchase Payment allocated under the Participant Account to the General
Account options:
PLUS:
1. any other Purchase Payments allocated under the Participant Account to
the General Account options;
2. any Transfers from the Separate Account Contract Value to the General
Account options; and
3. any interest credited.
LESS:
1. any Withdrawals and applicable Withdrawal Charges deducted from the
General Account options;
2. any Transfers from the General Account options to the Separate Account
Contract Value;
3. any applicable Premium Taxes deducted from the General Account options;
4. any Annual Administrative Fee deducted from the General Account options;
5. any General Account Contract Value which is applied to any of Annuity
Options 1 through 4, 7 and 8; and
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CONTRACT VALUE AND EXPENSE PROVISIONS (CONTINUED)
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GENERAL ACCOUNT CONTRACT VALUE (CONTINUED)
6. any Annuity Payments made from General Account Contract Value under
Annuity Options 5 and 6.
GENERAL ACCOUNT INTEREST CREDITING
The Company shall credit interest on General Account Contract Value at an
annual rate at least equal to the Minimum Guaranteed Rate shown on page 3.
Also, the Company may in its sole judgment credit Current Interest at a rate
in excess of the Minimum Guaranteed Rate.
The Company may credit Current Interest on Contract Value that was allocated
or Transferred to a General Account option during one period at a different
rate than amounts allocated or Transferred to a General Account option in
another period. The Company may credit different rates of Current Interest on
the DCA Plus Account and the Traditional General Account options. Therefore,
at any time, portions of General Account Contract Value may be earning
Current Interest at different rates based upon the period during which such
portions were allocated or Transferred to the General Account and the General
Account option selected.
TRADITIONAL GENERAL ACCOUNT
Purchase Payments may be allocated to the Traditional General Account and
Contract Value may be transferred to this Account. Transfers from the
Traditional General Account are limited. Please see the "Transfers"
provisions on page 8.
DCA PLUS ACCOUNT
A Purchase Payment may be allocated to the DCA Plus Account only if both of the
following conditions are met. The Purchase Payment is: (1) received during the
first two Contract Years; and (2) made pursuant to a direct transfer from
another Section 403(b) annuity contract. Contract Value allocated to the DCA
Plus Account will be Transferred monthly to one or more of the Series (not to
include the Money Market Series) as selected by the Participant over a 12-month
period (the "Transfer Year"). The Transfer Year begins on the date a direct
transfer is first allocated to the DCA Plus Account, and the first monthly
Transfer is made on the same date in the following month. A Participant who
allocates a Purchase Payment to the DCA Plus Account must submit to the Company
written instructions specifying: (1) the Series (not to include the Money Market
Series) to which the monthly Transfers are to be made; and (2) the percentage to
be allocated to each such Series. The amount of each monthly Transfer shall be
determined by dividing the amount of Contract Value allocated to the DCA Plus
Account on the date the Transfer is scheduled to be made by the number of months
remaining in the Transfer Year. If a subsequent direct transfer is allocated to
the DCA Plus Account during a Transfer Year, such amount will be transferred to
the Series over the balance of the Transfer Year on the same basis as set forth
above.
SEPARATE ACCOUNT CONTRACT VALUE
On any Valuation Date, the Separate Account Contract Value is the sum of the
then current value of the Accumulation Units allocated to each Series for the
Participant Account.
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GV6322F (9-97)
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CONTRACT VALUE AND EXPENSE PROVISIONS (CONTINUED)
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ACCUMULATION UNIT VALUE
The initial Accumulation Unit Value for each Series was set at $10. The
Accumulation Unit Value for any subsequent Valuation Date is equal to (1)
times (2) where:
1. is the Accumulation Unit Value determined on the immediately preceding
Valuation Date; and
2. is the Net Investment Factor on the Valuation Date with respect to which
the Accumulation Unit Value is being determined.
NET INVESTMENT FACTOR
The Net Investment Factor for any Series as of the end of any Valuation
Period is determined by dividing (1) by (2) and subtracting (3) from the
result, where:
1. is equal to:
a. the net asset value per share of the mutual fund held in the Series
found as of the end of the current Valuation Period; plus
b. the per share amount of any dividend or capital gain distributions paid
by the Series' underlying mutual fund that is not included in the net
asset value per share; plus or minus
c. a per share charge or credit for any taxes reserved for, which the
Company deems to have resulted from the operation of the Separate
Account or the Subaccounts; operations of the Company with respect to
the Contract; or the payment of premiums or acquisition costs under the
Contract.
2. is the net asset value per share of the Series' underlying mutual fund
as of the end of the prior Valuation Period.
3. is the daily factor representing the Mortality and Expense Risk Charge
which is deducted from the Separate Account
Underlying mutual funds may declare dividends on a daily basis and pay such
dividends once a month. The Net Investment Factor allows for the monthly
reinvestment of these daily dividends. As described above, the gains and
losses from each Series are credited to or charged against the Series without
regard to the gains or losses in the Company or other Series.
DETERMINING ACCUMULATION UNITS
The number of Accumulation Units allocated to a Series under the Participant
Account is found by dividing: (1) the amount allocated to the Series; by (2)
the Accumulation Unit Value for the Series as of the end of the Valuation
Period during which the amount is applied under the Participant Account. The
number of Accumulation Units allocated to a Series under the Participant
Account will not change as a result of investment experience. Events that
change the number of Accumulation Units are:
13
--------------------------------------------------------------------------------
CONTRACT VALUE AND EXPENSE PROVISIONS (CONTINUED)
--------------------------------------------------------------------------------
DETERMINING ACCUMULATION UNITS (CONTINUED)
1. Purchase Payments that are applied to the Series;
2. Contract Value that is Transferred into or out of the Series;
3. Withdrawals and any applicable Withdrawal Charges that are deducted from
the Series;
4. Premium Taxes that are deducted from the Series; and
5. Annual Administrative Fees, if any, that are deducted from the Series.
MORTALITY AND EXPENSE RISK CHARGE
The Company will deduct the Mortality and Expense Risk Charge shown on page
3. This charge will be computed and deducted from each Series on each
Valuation Date. This charge is factored into the Accumulation Unit and
Annuity Unit Values on each Valuation Date.
PREMIUM TAX EXPENSE
The Company reserves the right to deduct Premium Tax when due or any time
thereafter. Any applicable Premium Taxes will be allocated as described on
page 3.
ADMINISTRATIVE CHARGE
The Company will deduct from Contract Value the Annual Administrative Fee in
the amount and manner shown on page 3. No Annual Administrative Fee is
deducted on or after the Annuity Commencement Date if one of Annuity Options
1 through 4 or 8 is chosen.
MUTUAL FUND EXPENSES
Each Series invests in shares of a mutual fund. The net asset value per share
of each underlying fund reflects the deduction of any investment advisory and
administration fees and other expenses of the fund. These fees and expenses
are not deducted from the assets of a Series, but are paid by the underlying
funds. The Participant indirectly bears a pro rata share of such fees and
expenses. An underlying fund's fees and expenses are not specified or fixed
under the terms of the Contract.
--------------------------------------------------------------------------------
WITHDRAWAL PROVISIONS
--------------------------------------------------------------------------------
WITHDRAWALS
A full or partial Withdrawal of Contract Value is allowed at any time while
the Participant is living. This provision is subject to any federal or state
Withdrawal restrictions.
Upon the Participant's request for a full Withdrawal, the Company will pay
the Withdrawal Value in a lump sum, and the Participant Account will
terminate.
All Withdrawals must meet the following conditions.
1. The request for Withdrawal must be Received by the Company in writing or
under other methods allowed by the Company.
2. The Participant must apply: (a) while this Contract is in force; and (b)
prior to the Annuity Commencement Date.
3. The amount Withdrawn must be at least $100, except upon a full
Withdrawal.
14
GV6322G (9-97)
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WITHDRAWAL PROVISIONS (CONTINUED)
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WITHDRAWALS (CONTINUED)
A partial Withdrawal request must state the allocations for deducting the
Withdrawal from each Account. If no allocation is specified, the partial
Withdrawal will be deducted from the Accounts in the order described on page
3, "Method for Deductions."
WITHDRAWAL VALUE
The Withdrawal Value at any time will be the Contract Value less: (1) any
Premium Taxes due or paid by the Company; (2) any Annual Administrative Fee;
and (3) any Withdrawal Charges.
WITHDRAWAL CHARGES
If part or all of the Contract Value is withdrawn, Withdrawal Charges may be
applied at the time of Withdrawal. The Withdrawal Charge is applied to the
lesser of: (1) the amount withdrawn; or (2) the amount of Purchase Payments.
The amount of the charge is based upon the number of Purchase Payment Years
the Purchase Payment has remained in the Participant Account. See the
Withdrawal Charge shown on page 3. For the purpose of determining the
Withdrawal Charges, Purchase Payments are withdrawn before earnings on a
first in first out basis. The Withdrawal Charge will not be assessed under
the following conditions:
1. payments under Annuity Options 1 through 4, 7 and 8;
2. payments under Annuity Options 5 and 6 provided that Annuity Payments
are made for at least 5 years.
3. the death of the Participant;
4. payment after the Participant has become totally and permanently
disabled prior to age 65. This means that the Participant is unable,
because of physical or mental impairment, to perform the material and
substantial duties of any occupation for which the Participant is suited
by means of education, training or experience. The impairment must have
been in existence for more than 180 days to qualify for this benefit.
Such impairment must be expected to result in death or be long-standing
and indefinite. The Company requires proof of disability and will accept
a certified Social Security finding of disability or a doctor's
verification;
5. the Participant is separated from service with the employer that
maintains the Plan and had actively participated in the Plan for five
years before separating from service. Active participation means regular
contributions through a salary reduction arrangement with no
interruptions in Purchase Payments;
6. no Purchase Payments were made to the Participant Account in the five
years preceding the date of the Withdrawal;
7. the Participant is at least 59 1/2 years old and the Participant Account
was established at least five years before the date of the Withdrawal;
8. the Participant Account was established at least fifteen years before
the date of the Withdrawal; or
9. payments made to satisfy the minimum distribution requirements of the
Internal Revenue Code.
15
--------------------------------------------------------------------------------
WITHDRAWAL PROVISIONS (CONTINUED)
--------------------------------------------------------------------------------
WITHDRAWAL CHARGES (CONTINUED)
The Withdrawal Charge will be assessed against Contract Value allocated to
the Series and the General Account options in the same proportion as the
Withdrawal is allocated.
The Withdrawal Charge may be waived or reduced uniformly on all Participant
Accounts for contracts issued under certain plans or arrangements which are
expected to result in administrative cost savings.
FREE WITHDRAWALS
A Free Withdrawal is a Withdrawal amount which is not subject to Withdrawal
Charges. The amount of Free Withdrawal available in a Contract Year is
determined as follows. In the first Contract Year, it is equal to: (1)
cumulative Purchase Payments made under the Contract; times (2) the Free
Withdrawal Percentage set forth on page 3; less (3) any Free Withdrawals,
including any Free Systematic Withdrawals, made during the Contract Year. The
amount of Free Withdrawal available in subsequent Contract Years is equal to
(1) Contract Value as of the first day of the current Contract Year; times
(2) the Free Withdrawal Percentage; less (3) any Free Withdrawals, including
any Free Systematic Withdrawals, made during the Contract Year. Unused Free
Withdrawal amounts are not carried from one Contract Year to the next. Free
Withdrawals do not reduce Purchase Payments for purposes of calculating the
Withdrawal Charge on future Withdrawals.
SYSTEMATIC WITHDRAWALS
Systematic Withdrawals are automatic periodic Withdrawals from the Contract
in substantially equal amounts prior to the Annuity Commencement Date.
In order to start Systematic Withdrawals, the Participant must make the
request in writing. The Minimum Systematic Withdrawal is shown on page 3. The
Participant must choose the type of payment and its frequency. The Systematic
Withdrawal request must state the allocations for deducting the Withdrawals
from each Account. If no allocation is specified, the Withdrawals will be
deducted from the Accounts in the order described on page 3, "Method for
Deductions." The payment type may be: (1) in a fixed amount; (2) in Level
Payments calculated by the Company; (3) for a specified period; (4) all
earnings in the Contract; or (5) based upon the life expectancy of the
Participant or the Participant and a Beneficiary. The payment frequency may
be: (1) monthly; (2) quarterly; (3) semiannually; or (4) annually. Systematic
Withdrawals may be stopped or changed by the Participant upon proper written
request Received by the Company at least 30 days in advance of the requested
date of termination or change. The Company reserves the right to stop, modify
or suspend Systematic Withdrawals at any time.
16
GV6322H (9-97)
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WITHDRAWAL PROVISIONS (CONTINUED)
--------------------------------------------------------------------------------
FREE SYSTEMATIC WITHDRAWALS
Free Systematic Withdrawals are not subject to a Withdrawal Charge. The
amount of Free Systematic Withdrawals available in a Contract Year is
determined as follows: the amount of Systematic Withdrawals that when
combined with any Free Withdrawals in the current Contract Year, does not
exceed the Free Withdrawal amount available in that Contract Year.
DATE OF REQUEST
The Company will effect a Withdrawal of Separate Account Contract Value on
the basis of Accumulation Unit Value determined as of the end of the
Valuation Period in which all the required information is Received by the
Company. The Company will effect a Systematic Withdrawal of Separate Account
Contract Value on the basis of the Accumulation Unit Value determined as of
the end of the Valuation Period during which such Withdrawal is scheduled.
PAYMENT OF WITHDRAWAL BENEFITS
The Company reserves the right to suspend a Transfer or delay payment of a
Withdrawal from the Separate Account for any period:
1. when the New York Stock Exchange is closed; or
2. when trading on the New York Stock Exchange is restricted; or
3. when an emergency exists as a result of which: (a) disposal of
securities held in the Separate Account is not reasonably practicable;
or (b) it is not reasonably practicable to fairly value the net assets
of the Separate Account; or
4. during any other period when the Securities and Exchange Commission, by
order, so permits to protect owners of securities.
Rules and regulations of the Securities and Exchange Commission will govern
as to whether the conditions set forth above exist.
The Company further reserves the right to delay payment of a Withdrawal from
the General Account for up to six months as required by most states. The
Company will notify you if there will be a delay.
--------------------------------------------------------------------------------
DEATH BENEFIT PROVISIONS
--------------------------------------------------------------------------------
DEATH BENEFIT
If any Participant dies prior to the Annuity Commencement Date, a Death
Benefit will be paid to the Designated Beneficiary when due Proof of Death
and instructions regarding payment are Received by the Company.
17
--------------------------------------------------------------------------------
DEATH BENEFIT PROVISIONS (CONTINUED)
--------------------------------------------------------------------------------
DEATH BENEFIT (CONTINUED)
If the age of the Participant was 75 or younger on the Contract Date, the
Death Benefit will be the greatest of: (1) the sum of all Purchase Payments,
less any Premium Taxes due or paid by the Company and less the sum of all
partial Withdrawals; (2) the Contract Value on the date due Proof of Death
and instructions regarding payment are Received by the Company, less any
Premium Taxes due or paid by the Company; or (3) the Stepped-Up Death Benefit
described below.
The Stepped-Up Death Benefit is:
1. the largest Death Benefit on any Contract Anniversary that is both an
exact multiple of five and occurs prior to the Participant reaching age
76; plus
2. any Purchase Payments received since the applicable fifth Contract
Anniversary; less
3. any reductions caused by Withdrawals since the applicable fifth Contract
Anniversary; less
4. any Premium Taxes due or paid by the Company.
If the age of the Participant on the Contract Date was 76 or older, or if due
proof of death and instructions regarding payment are not received within 6
months of the date of the Participant's death, the Death Benefit will be the
Contract Value on the date due Proof of Death and instructions regarding
payment are Received by the Company, less any Premium Taxes due or paid by
the Company.
If a lump sum payment is requested, the payment will be made in accordance
with any laws and regulations that govern the payment of Death Benefits.
PROOF OF DEATH
Any of the following will serve as Proof of Death:
1. certified copy of the death certificate;
2. certified decree of a court of competent jurisdiction as to the finding
of death;
3. written statement by a medical doctor who attended the deceased
Participant; or
4. any proof accepted by the Company.
18
GV6322I (9-97)
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ANNUITY PAYMENT PROVISIONS
--------------------------------------------------------------------------------
ANNUITY COMMENCEMENT DATE
The Participant may choose the Annuity Commencement Date at the time of
application. The Annuity commencement Date may not be prior to the third
Contract Anniversary. If no Annuity Commencement Date is chosen, the Company
will use the later of: (1) the Participant's seventieth birthday; or (2) the
tenth Contract Anniversary, but in no event later than the Participant's 85th
birthday. The Annuity Commencement Date must be prior to the Participant's
85th birthday.
The Annuity Commencement Date is the date the first payment will be made to
the Participant under any of the Annuity Options.
CHANGE OF ANNUITY COMMENCEMENT DATE
The Participant may change the Annuity Commencement Date. A request for the
change must be made in writing. The written request must be Received by the
Company at least 30 days prior to the new Annuity Commencement Date as well
as 30 days prior to the previous Annuity Commencement Date.
ANNUITY START AMOUNT
The Annuity Start Amount is applied to one of the Annuity Options listed on
pages 22-23. The Annuity Start Amount is: (1) the Contract Value on the
Annuity Commencement Date; less (2) any Premium Taxes due or paid by the
Company; and less (3) if one of Annuity Options 1 through 4 or 8 is chosen, a
pro rata Administrative Fee. Unless otherwise directed by the Participant,
Annuity Start Amount derived from General Account Contract Value will be
applied to purchase a Fixed Annuity Option; that derived from Separate
Account Contract Value will be applied to purchase a Variable Annuity Option.
WITHDRAWAL CHARGES
Withdrawal Charges are not applied to: (1) Annuity payments made under
Annuity Options 1 through 4, 7 and 8; or (2) those made under annuity Options
5 and 6 that provide for payments over a period of at least 5 years.
Withdrawal Charges are applied to annuity payments under Annuity Options 5
and 6 that provide for payments over a period of less than 5 years. See
"Withdrawal Provisions" on pages 14-17.
ANNUITY TABLES
Annuity Tables A through C show the guaranteed minimum amount of monthly
Annuity Payment per $1,000 of Annuity Start Amount for Annuity Options 1
through 4, 7 and 8 that applies to the first Variable Annuity Payment and to
each payment for Fixed Annuity Payments. The amount of each Annuity Payment
for Annuity Options 1 through 4 and 8 will depend on the Participant's sex
and age on the Annuity Commencement Date.
19
--------------------------------------------------------------------------------
ANNUITY PAYMENT PROVISIONS (CONTINUED)
--------------------------------------------------------------------------------
ANNUITY TABLES (CONTINUED)
Tables A and B assume 1900 as the year of birth of the Participant. To use
Tables A and B for a Participant born after 1900, the actual age is reduced
by 0.1 (one-tenth) of a year for each year the year of birth exceeds 1900.
For a Participant with a birth year prior to 1900, the actual age is
increased in a like manner. The actual age (in completed months) reduced or
increased becomes the "adjusted age of the Participant" The guaranteed payout
rate is then found by interpolating the Participant's adjusted age between
the ages shown in Tables A and B. Tables A and B are based on the 1983 Table
"A" mortality table and an interest rate of 3.5% per year. On request the
Company will furnish the amount of monthly Annuity Payment per $1,000 applied
for any ages not shown.
For Annuity Options 5 through 7, annuity rates based on age and sex are not
used to calculate Annuity Payments. Annuity Payments for these options are
computed without reference to the Annuity Tables.
ANNUITY PAYMENTS
The Annuity Option is shown on page 3. The Participant may choose any form of
Annuity Option that is allowed by the Company. The Participant may choose an
Annuity Option by written request. This request must be Received by the
Company at least 30 days prior to the Annuity Commencement Date. Several
Annuity Options are listed on pages 22-23. No Annuity Option can be selected
that requires the Company to make periodic payments of less than $100. If no
Annuity Option is chosen prior to the Annuity Commencement Date, the Company
will use Life with 10-Year Fixed Period Option. Each Annuity Option allows
for making Annuity Payments annually, semiannually, quarterly or monthly.
CHANGE OF ANNUITY OPTION
Prior to the Annuity Commencement Date, the Participant may change the
Annuity Option chosen. The Participant must request the change in writing.
This request must be Received by the Company at least 30 days prior to the
Annuity Commencement Date.
FIXED ANNUITY PAYMENTS
With respect to Fixed Annuity Payments, the amounts shown on the Tables are
the guaranteed minimum for each Annuity Payment for Annuity Options 1 through
4, 7 and 8.
VARIABLE ANNUITY PAYMENTS
With respect to Variable Annuity Payments, the amount shown on the Tables is
the guaranteed minimum first Annuity Payment, based on the assumed interest
rate of 3.5% for Annuity Options 1 through 4, 7 and 8. The amount of each
Annuity Payment after the first for these options is computed by means of
Annuity Units.
20
GV6322J (9-97)
--------------------------------------------------------------------------------
ANNUITY PAYMENT PROVISIONS (CONTINUED)
--------------------------------------------------------------------------------
ANNUITY UNITS
The number of Annuity Units is found by dividing the first Annuity Payment by
the Annuity Unit Value for the selected Series on the Annuity Commencement
Date. The number of Annuity Units for the Series then remains constant,
unless a Transfer of Annuity Units is made. After the first Annuity Payment,
the dollar amount of each subsequent Annuity Payment is equal to the number
of Annuity Units times the Annuity Unit Value for the Series on the due date
of the Annuity Payment.
The Annuity Unit Value for each Series was first set at $1.00. The Annuity
Unit Value for any subsequent Valuation Date is equal to (a) times (b) times
(c), where:
(a) is the Annuity Unit Value on the immediately preceding Valuation Date;
(b) is the Net Investment Factor for the day;
(c) is a factor used to adjust for an assumed interest rate of 3.5% per
year used to determine the Annuity Payment amounts. The assumed
interest rate is reflected in the Annuity Tables.
NET INVESTMENT FACTOR
The Net Investment Factor for any Series as of the end of any Valuation
Period is determined by dividing (1) by (2) and subtracting (3) from the
result, where:
1. is equal to:
a. the net asset value per share of the mutual fund held in the Series,
found as of the end of the current Valuation Period; plus
b. the per share amount of any dividend or capital gain distributions
paid by the Series' underlying mutual fund that is not included in
the net asset value per share; plus or minus
c. a per share charge or credit for any taxes reserved for, which the
Company deems to have resulted from the operation of the Separate
Account or Series; the operations of the Company with respect to the
Contract; or the payment of premium or acquisition costs under the
Contract.
2. is the net asset value per share of the Series' underlying mutual fund
as found as of the end of the prior Valuation Period.
3. is a factor representing the Mortality and Expense Risk Charge which is
deducted from the Separate Account.
Underlying mutual funds may declare dividends on a daily basis and pay such
dividends once a month. The Net Investment Factor allows for the monthly
reinvestment of these daily dividends. As described above, the gains and
losses from each Series are credited or charged against the Series without
regard to the gains or losses in the Company or other Series.
21
--------------------------------------------------------------------------------
ANNUITY PAYMENT PROVISIONS (CONTINUED)
--------------------------------------------------------------------------------
ALTERNATE ANNUITY OPTION RATES
The Company may, at the time of election of an Annuity Option, offer more
favorable rates in lieu of the guaranteed rates shown in the Annuity Tables.
ANNUITY OPTIONS
OPTION 1
LIFE OPTION: This option provides payments for the life of the Participant.
Table A shows some of the guaranteed rates for this option.
OPTION 2
LIFE WITH FIXED PERIOD OPTION: This option provides payments for the life of
the Participant. A fixed period of 5, 10, 15
or 20 years may be chosen. Payments will be made to the end of this period
even if the Participant dies prior to the end of the period. If the
Participant dies before receiving all the payments during the fixed period,
the remaining payments will be made to the Designated Beneficiary. Table A
shows some of the guaranteed rates for this option.
OPTION 3
LIFE WITH INSTALLMENT OR UNIT REFUND OPTION: This option provides payments
for the life of the Participant, with a period certain determined by dividing
the Annuity Start Amount by the amount of the first payment. A fixed number
of payments will be made even if the Participant dies. If the Participant
dies before receiving the fixed number of payments, any remaining payments
will be made to the Designated Beneficiary.
OPTION 4
JOINT AND LAST SURVIVOR OPTION: This option provides payments for the life of
the Participant and a second person. Payments will be made as long as either
is living. Table B shows some of the guaranteed rates for this option.
OPTION 5
FIXED PERIOD OPTION: This option provides payments for a fixed number of
years between 5 and 20. If the Contract Value is held in the General Account,
then the amount of the payments will vary as a result of the interest rate
(as adjusted periodically) credited on the General Account. This rate is
guaranteed to be no less than the Guaranteed Rate shown on page 3. If the
Contract Value is held in the Separate Account, then the amount of the
payments will vary as a result of the investment performance of the Series
chosen. If the Participant dies before receiving the fixed number of
payments, any remaining payments will be made to the Designated Beneficiary.
OPTION 6
FIXED PAYMENT OPTION: This option provides a fixed payment amount. This
amount is paid until the amount applied, including daily interest
adjustments, is paid. If the Contract Value is held in the General Account,
then the number of payments will vary as a result of the interest rate (as
adjusted periodically) credited on the General Account. This rate is
guaranteed to be no less than the Guaranteed Rate shown on page 3. If the
Contract Value is held in the Separate Account, then the number of payments
will vary as a result of the investment performance of the Series chosen. If
the Participant dies before receiving all the payments, any remaining
payments will be made to the Designated Beneficiary.
22
GV6322K (9-97)
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ANNUITY PAYMENT PROVISIONS (CONTINUED)
--------------------------------------------------------------------------------
OPTION 7
PERIOD CERTAIN OPTION: This option provides payments for a fixed period of 5,
10, 15 or 20 years. Payments will be made until the end of this period. If
the Participant dies prior to the end of the period, the remaining payments
will be made to the Designated Beneficiary. Table C shows some of the
guaranteed rates for this option.
OPTION 8
JOINT AND CONTINGENT SURVIVOR OPTION: This option provides payments for the
life of the Participant. Payments will be made to the Participant as long as
he or she is living. Upon the death of the Participant, payments will be made
to a second person named by the Participant as long as he or she is living.
If such person is not living upon the death of the Participant, no further
payments will be made. Table B shows some of the guaranteed rates for this
option.
23
ANNUITY TABLES
--------------------------------------------------------------------------------
Table A
Settlement Options One, Two, and Three
Minimum Initial Monthly Installments per $1,000 of Amount Applied
Adjusted Option One Option Two Option Three
Age Life Life with Fixed Period Unit
of Participant Only 5 Years 10 Years 15 Years 20 Years Refund
---------------------------- ------------------------------------------------------------- --------------------
MALE
55 4.99 4.97 4.91 4.80 4.66 4.73
56 5.09 5.07 5.00 4.88 4.72 4.81
57 5.20 5.17 5.10 4.97 4.78 4.90
58 5.32 5.29 5.20 5.05 4.85 4.99
59 5.44 5.41 5.31 5.14 4.91 5.08
60 5.57 5.53 5.42 5.23 4.97 5.18
61 5.71 5.67 5.54 5.33 5.04 5.29
62 5.86 5.81 5.67 5.42 5.10 5.40
63 6.02 5.97 5.80 5.52 5.16 5.51
64 6.20 6.13 5.94 5.62 5.22 5.63
65 6.36 6.31 6.08 5.72 5.28 5.76
66 6.58 6.49 6.23 5.82 5.33 5.90
67 6.79 6.69 6.38 5.92 5.38 6.04
68 7.02 6.90 6.54 6.02 5.43 6.19
69 7.26 7.12 6.71 6.12 5.48 6.35
70 7.52 7.35 6.87 6.21 5.52 6.52
71 7.80 7.60 7.05 6.30 5.55 6.69
72 8.09 7.86 7.22 6.39 5.59 6.88
73 8.41 5.13 7.40 6.47 5.62 7.07
74 8.75 8.42 7.57 6.55 5.64 7.27
75 9.12 8.72 7.75 6.62 5.66 7.49
FEMALE
55 4.54 4.53 4.51 4.46 4.38 4.40
56 4.62 4.61 4.58 4.53 4.44 4.47
57 4.71 4.70 4.66 4.60 4.51 4.54
58 4.80 4.79 4.75 4.68 4.57 4.62
59 4.90 4.88 4.84 4.76 4.64 4.70
60 5.00 4.99 4.93 4.84 4.70 4.78
61 5.11 5.09 5.03 4.93 4.77 4.87
62 5.23 5.21 5.14 5.02 4.84 4.96
63 5.36 5.33 5.25 5.12 4.91 5.06
64 5.49 5.46 5.37 5.21 4.98 5.17
65 5.64 5.60 5.50 5.31 5.05 5.28
66 5.79 5.75 5.63 5.42 5.12 5.39
67 5.95 5.91 5.77 5.53 5.19 5.52
68 6.13 6.08 5.91 5.63 5.25 5.65
69 6.32 6.26 6.07 5.74 5.32 5.79
70 6.53 6.46 6.23 5.86 5.37 5.94
71 6.75 6.67 6.40 5.97 5.43 6.09
72 6.99 6.89 6.58 6.08 5.48 6.26
73 7.26 7.13 6.76 6.18 5.52 6.44
74 7.54 7.39 6.95 6.29 5.57 6.63
75 7.85 7.67 7.14 6.39 5.60 6.83
Values not shown will be provided upon request. Annual, semiannual, or
quarterly installments can be determined by multiplying the monthly
installments by 11.812853, 5.9572227, and 2.9914196 respectively.
24
GV6322L (9-97)
ANNUITY TABLES
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Table B
Settlement Options Four and Eight
Minimum Initial Monthly Installments per $1,000 of Amount Applied
Adjusted Age of
Female Participant Adjusted Age of Male Participant
55 60 62 65 70 75
--------------------------------------------------------------------------------
55 4.16 4.27 4.30 4.35 4.42 4.47
60 4.34 4.51 4.57 4.66 4.78 4.86
62 4.41 4.61 4.68 4.79 4.94 5.04
65 4.51 4.76 4.85 4.99 5.20 5.35
70 4.66 4.99 5.13 5.34 5.67 5.95
75 4.78 5.19 5.37 5.66 6.16 6.63
Values not shown will be provided upon request. Annual, semiannual, or
quarterly installments can be determined by multiplying the monthly
installments by 11.812853, 5.9572227, and 2.9914196 respectively.
--------------------------------------------------------------------------------
TABLE C
SETTLEMENT OPTION SEVEN
MINIMUM INITIAL MONTHLY INSTALLMENT PER $1,000 OF AMOUNT APPLIED
PERIOD CERTAIN
5 Years 10 Years 15 Years 20 Years
--------------------------------------------------------------------------------
18.11 9.83 7.1 5.75
Values not shown will be provided upon request. Annual, semiannual, or quarterly
installments can be determined by multiplying the monthly installments by
11.812853, 5.9572227, and 2.9914196 respectively.
25
A BRIEF DESCRIPTION OF THIS CONTRACT
This is a GROUP FLEXIBLE PREMIUM DEFERRED VARIABLE ANNUITY CONTRACT.
* In return for Purchase Payments, the Company will pay the annuity
and other benefits as provided in this Contract.
* Individual allocations are maintained for Participants.
* The Contract is participating.
ALL PAYMENTS AND VALUES PROVIDED BY THE CONTRACT, WHEN BASED ON THE INVESTMENT
EXPERIENCE OF THE SEPARATE ACCOUNT, ARE VARIABLE AND MAY INCREASE OR DECREASE IN
ACCORDANCE WITH THE INVESTMENT EXPERIENCE OF THE SEPARATE ACCOUNT. THERE ARE NO
GUARANTEED MINIMUM PAYMENTS OR CASH VALUES. (SEE "CONTRACT VALUE AND EXPENSE
PROVISIONS" AND "ANNUITY PAYMENT PROVISIONS" FOR DETAILS.)
[SBL LOGO]
Security Benefit Life Insurance Company
A Member of The Security Benefit Group of Companies
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