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Read your contract carefully.
This is a legal contract.
We promise to pay, subject to the provisions of this contract, the benefits
described by this contract.
We make this promise and issue this contract in consideration of the application
for this contract and the payment of the purchase payments.
The owner and the beneficiary are as named in the application unless they are
changed as provided for in this contract.
Minnesota Life Insurance Company is a subsidiary of Minnesota Mutual
Companies, Inc., a mutual insurance holding company. The owner is a member of
the Minnesota Mutual Companies, Inc., which holds it's annual meetings on the
first Tuesday in March of each year at 3 p.m. local time. The meetings are
held at ▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇. ▇▇▇▇, ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇-▇▇▇▇
Signed for The Minnesota Mutual Life Insurance Company at St. ▇▇▇▇, Minnesota,
on the contract date.
/s/
President
/s/
Registrar
NOTICE OF YOUR RIGHT TO EXAMINE THIS CONTRACT FOR 10 DAYS.
It is important to us that you are satisfied with this contract. If you are not
satisfied, you may return the contract to us or to your agent within 10 days of
its receipt. If you exercise this right, you will receive the greater of (a)
the Accumulation Value of this contract or (b) the amount of purchase payments
paid under this contract. We will pay this refund within 7 days after we
receive your notice of cancellation.
ALL PAYMENTS AND VALUES PROVIDED BY THIS CONTRACT, WHEN BASED ON THE INVESTMENT
EXPERIENCE OF A SEPARATE ACCOUNT, ARE VARIABLE AND ARE NOT GUARANTEED AS TO
FIXED DOLLAR AMOUNT.
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MINNESOTA LIFE
Minnesota Life Insurance Company
▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇
▇▇. ▇▇▇▇, ▇▇ ▇▇▇▇▇-▇▇▇▇
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FLEXIBLE PAYMENT DEFERRED
VARIABLE ANNUITY CONTRACT
FIXED OF VARIABLE ANNUITY
BENEFITS
A NONPARTICIPATING CONTRACT
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MHC-87-9154
CONTRACT INDEX
Alphabetical Index to the Provisions of Your Contract
Page
Additional Information . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Allocation of Purchase Payments. . . . . . . . . . . . . . . . . . . . . . 3
Amount Payable at Death. . . . . . . . . . . . . . . . . . . . . . . . . . 8
Annuity Payment Options. . . . . . . . . . . . . . . . . . . . . . . . . . 5
Annuity Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Assignment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Beneficiary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Contract Charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Definitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
General Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Misstatement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Purchase Payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Transfer Provisions. . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Valuation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Withdrawal and Surrender . . . . . . . . . . . . . . . . . . . . . . . . . 4
YOUR CONTRACT INFORMATION
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ANNUITANT: ▇▇▇▇ ▇. ▇▇▇
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DATE OF BIRTH: October 1, 1963
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OWNER: ▇▇▇▇ ▇. ▇▇▇
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JURISDICTION: Your State
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CONTRACT NUMBER: ▇-▇▇▇-▇▇▇
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CONTRACT DATE: October 1, 1998
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ANNUITY COMMENCEMENT DATE: November 1, 2063
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ANTICIPATED ANNUAL PURCHASE PAYMENT: $1,000.00
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FLEXIBLE PAYMENT DEFERRED
VARIABLE ANNUITY CONTRACT
FIXED OR VARIABLE ANNUITY
BENEFITS
A NONPARTICIPATING CONTRACT
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MHC-87-9154 Minnesota Life 1
DEFINITIONS
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When we use the following words, this is what we mean:
THE ANNUITANT
The person named on page 1 who may receive lifetime benefits under the contract.
YOU, YOUR
The owner of this contract. The owner may be the annuitant or someone else.
The owner shall be that person named in the application.
WE, OUR, US
Minnesota Life Insurance Company.
CONTRACT DATE
The effective date of this contract. It is also the date from which we
determine contract anniversaries and contract years.
CONTRACT ANNIVERSARY
The same day and month as the contract date for each succeeding year of this
contract.
CONTRACT YEAR
A period of one year beginning with the contract date or a contract
anniversary.
FUND
The mutual fund or separate investment portfolio within a series mutual fund
which is designated as an eligible investment for the separate account.
VALUATION DATE
Any date on which a fund is valued.
VALUATION PERIOD
The period between successive valuation dates measured from the time of one
determination to the next.
ACCUMULATION VALUE
Your interest in this contract. It is composed of your interest in one or more
sub-accounts of the separate account. Your interest in the sub-accounts shall
be valued separately. The total of those values will be the accumulation value.
SEPARATE ACCOUNT
A separate investment account titled Variable Annuity Account. This separate
account was established by us for this class of contract under Minnesota law.
The separate account is composed of several sub-accounts. The assets of the
separate account are ours. Those assets are not subject to claims arising
out of any other business in which we engage.
1940 ACT
The Investment Company Act of 1940, as amended, or any similar successor federal
legislation.
WRITTEN REQUEST
A request in writing signed by you. In some cases, we may provide a form for
your use. We also may require that this contract be sent to our home office
with your written request.
PURCHASE PAYMENTS
Amounts paid to us as consideration for the benefits provided by this contract.
ANNUITY PAYMENTS
Payments made at regular intervals to the annuitant or any other payee. Annuity
payments will be due and payable only on the first day of a calendar month.
FIXED ANNUITY
Annuity payments of equal amounts during the payment period.
VARIABLE ANNUITY
Annuity payments which increase or decrease in amount to reflect the investment
experience of the separate account and its sub-accounts.
AGE
The age of a person at nearest birthday.
GENERAL INFORMATION
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WHAT IS YOUR AGREEMENT WITH US?
This contract and the copy of the application attached to it contain the
entire contract between you and us. Any statements made in the application
either by you or the annuitant will, in the absence of fraud, be considered
representations and not warranties. Also, any statement made either by you
or the annuitant will not be used to void this contract or defend against a
claim under this contract unless the statement is contained in the
application.
No change or waiver of any of the provisions of this contract will be valid
unless made in writing by us. It must also be signed by our president, a vice
president, our secretary or an assistant secretary. No agent or other person
has the authority to change or waive any provision of this contract.
Any additional agreement attached to this contract will become a part of this
contract and will be subject to all the terms and conditions of this contract
unless we state otherwise in the agreement.
HOW DO YOU EXERCISE YOUR RIGHTS UNDER THIS CONTRACT?
You can exercise all the rights under this contract by making a written request
to us. You have these rights during the annuitant's lifetime and before annuity
payments begin. We will deal with you, unless this contract provides otherwise,
on the basis that you have full ownership and control of this contract.
HOW WILL YOU KNOW THE VALUE OF YOUR CONTRACT?
Each year we will send you a report. This report will
2 Minnesota Life MHC-87-9154
summarize the year's transactions and will show the current accumulation value
of this contract. It will also show the current accumulation unit values. The
report will be as of a date within two months of its mailing.
PURCHASE PAYMENTS
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WHERE DO YOU MAKE PURCHASE PAYMENTS?
All purchase payments must be made at our home office. Our home office is at
▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇. ▇▇▇▇, ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇-▇▇▇▇.
When we receive a purchase payment from you at our home office, we will send you
a confirmation.
WHEN DO YOU MAKE PURCHASE PAYMENTS?
You may choose when to make purchase payments.
ARE THERE OTHER METHODS OF MAKING PURCHASE PAYMENTS?
Yes. It may be possible for you to arrange with your employer to make your
purchase payments by payroll deduction. Or, under some plans, your employer may
make purchase payments on your behalf. Also, your bank or other financial
institution may consent to have your purchase payments automatically withdrawn
from your account and paid directly to us.
WHAT DEDUCTIONS ARE MADE FROM PURCHASE PAYMENTS?
There are usually no deductions made from the purchase payments. However, we do
reserve the right to make a deduction from purchase payments for state premium
taxes, where applicable.
HOW ARE PURCHASE PAYMENTS ALLOCATED?
They are allocated among the sub-accounts of the separate account as you direct.
Initially, you indicate your allocation in the application. Later, you may
change your allocation for future purchase payments by giving us written notice.
We will allocate purchase payments received without allocation instructions to
the money market sub-account.
ARE SEPARATE ACCOUNT OPTIONS AVAILABLE?
The separate account currently is composed of the following sub-accounts:
Growth Portfolio
Bond Portfolio
Money Market Portfolio
Asset Allocation Portfolio
Mortgage Securities Portfolio
Index 500 Portfolio
Capital Appreciation Portfolio
International Stock Portfolio
Small Company Portfolio
Maturing Government Bond 2002 Portfolio
Maturing Government Bond 2006 Portfolio
Maturing Government Bond 2010 Portfolio
Value Stock Portfolio
Small Company Value Portfolio
Global Bond Portfolio
Index 400 Mid-Cap Portfolio
Macro-Cap Value Portfolio
Micro-Cap Growth Portfolio
Real Estate Securities Portfolio
Purchase payments may be applied to one or more of these sub-accounts or any
other which may be established by us under the separate account for contracts of
this class. We reserve the right to add, combine or remove any sub-accounts of
the separate account.
WHAT ARE THE INVESTMENTS OF THE SEPARATE ACCOUNT?
The separate account is divided into sub-accounts. For each sub-account, there
is a fund for the investment of that sub-account's assets. Purchase payments
are invested in the funds at their net asset value.
If investment in a fund should no longer be possible or if we determine it
becomes inappropriate for contracts of this class, we may substitute another
fund. Substitution may be with respect to existing accumulation values, future
purchase payments and future annuity payments.
IS THERE A MINIMUM AMOUNT WHICH MAY BE ALLOCATED TO THE SUB-ACCOUNTS OF THE
SEPARATE ACCOUNT?
No.
WHAT CHANGES MAY WE MAKE TO THE SEPARATE ACCOUNT?
We reserve the right to transfer assets of the separate account, which we
determine to be associated with the class of contracts to which this contract
belongs, to another separate account. If this type of transfer is made, the
term "separate account", as used in this contract, shall then mean the separate
account to which the assets were transferred.
We reserve the right, when permitted by law, to:
(a) deregister the separate account under the Investment Company Act of
1940;
(b) restrict or eliminate any voting rights of contract owners or other
persons who have voting rights as to the separate account; and
(c) combine the separate account with one or more other separate accounts.
WHEN ARE PURCHASE PAYMENTS CREDITED TO THE CONTRACT?
Purchase payments are credited to the contract on the valuation date coincident
with or next following the day they are received in our home office. If they
are received on a day which is not a valuation date, those amounts will be
credited on the next valuation date.
MAY YOU STOP MAKING PURCHASE PAYMENTS?
Yes. You may stop making purchase payments at any time. If you stop making
purchase payments, the contract remains in force as a paid-up annuity according
to its terms. Its value may be applied to provide annuity payments at a later
date. You may make purchase payments again at any time before annuity payments
start unless the contract has been surrendered.
MAY WE CANCEL THE CONTRACT?
We may, in our discretion, cancel a contract if no purchase payments are made
for a period of two or more full contract years and both (a) the total purchase
payments made, less any withdrawals, and (b) the accumulation value of the
contract, are less than $2,000. If such a cancellation takes place, we will pay
the accumulation value to you.
We will notify you of our intention to exercise these rights in our annual
report. We will act 90 days after the contract anniversary unless an additional
purchase payment is received before the end of that 90 day period.
3 Minnesota Life MHC-87-9154
CONTRACT CHARGES
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WHAT CHARGES MAY BE MADE UNDER THIS CONTRACT?
An administrative charge is made directly to the separate account. On an annual
basis it may be as much as .35% of the net asset value of the separate account.
VALUATION
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HOW IS YOUR ACCUMULATION VALUE DETERMINED?
Your accumulation value is your interest in one or more sub-accounts of the
separate account.
For each sub-account of the separate account, the accumulation value is equal
to the accumulation units multiplied by the accumulation unit value.
WHAT IS AN ACCUMULATION UNIT AND HOW IS ITS VALUE DETERMINED?
An accumulation unit is a measure of your interest in each sub-account of the
separate account. The number of accumulation units credited with respect to
each purchase payment is determined by dividing the portion of the purchase
payment allocated to each sub-account by the then current accumulation unit
value for that sub-account. This determination is made as of the valuation
date coincident with or next following the date on which we receive your
purchase payment at our home office. Once determined, the number of
accumulation units will not be affected by changes in the accumulation unit
value. However, the total number of accumulation units under this contract
will be affected by future contract transactions. In addition, the units of
each sub-account will be increased by subsequent purchase payments and
transfers to that sub-account. The units of each sub-account will be
decreased by transfers or withdrawals from that sub-account.
The accumulation unit value will increase or decrease on each valuation date.
The amount of any increase or decrease will depend on the net investment
experience of the sub-account of the separate account. The value of an
accumulation unit for each sub-account was originally set at $1.00 on the first
valuation date. For any subsequent valuation date, its value is equal to its
value on the preceding valuation date multiplied by the net investment factor
for that sub-account for the valuation period ending on the subsequent valuation
date.
WHAT IS THE NET INVESTMENT FACTOR FOR EACH SUB-ACCOUNT?
The net investment factor for a valuation period is the gross investment rate
for such valuation period, less a deduction for the charges associated with the
separate account at a rate of not more than .35% per annum.
The gross investment rate is equal to:
(a) the net asset value per share of a fund share held in the sub-account
of the separate account determined at the end of the current valuation
period; plus
(b) the per-share amount of any dividend or capital gain distributions by
the fund if the "ex-dividend" date occurs during the current valuation
period; divided by
(c) the net asset value per share of that fund share held in the
sub-account determined at the end of the preceding valuation period.
TRANSFER PROVISIONS
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WHAT IS A TRANSFER?
A transfer is a reallocation of funds under this contract among the sub-accounts
of the separate account.
MAY YOU MAKE TRANSFERS OF AMOUNTS UNDER THE CONTRACT?
Yes. These transfers may be made on your written request. We will make the
transfer on the basis of accumulation unit values on the valuation date
coincident with or next following the day we receive the request at our home
office.
DOES A DOLLAR AMOUNT LIMIT APPLY TO TRANSFERS?
No.
MAY TRANSFERS TAKE PLACE ONCE AN ANNUITY BEGINS?
Yes. However, transfers are limited. They may be made only with respect to any
variable annuity payments. See the Annuity Payment Options section of this
contract.
WITHDRAWAL AND SURRENDER
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MAY YOU WITHDRAW FUNDS FROM THIS CONTRACT?
Yes. At any time before annuity payments begin, you may request a partial
withdrawal from the accumulation value. You must make a written request for any
withdrawal, and it must be for at least $250. The accumulation value will be
reduced by the amount withdrawn.
Unless instructed otherwise by you, withdrawals will be made from each
sub-account of the separate account in the same proportion that the value of
your interest in the sub-account bears to your total accumulation value.
Systematic withdrawal plans of a fixed amount or over a fixed period are also
available.
MAY YOU SURRENDER THE CONTRACT?
Yes. At any time before annuity payments begin, you may surrender this contract
for its accumulation value. It will be determined as of the valuation date
coincident with or next following the date your written request is received at
our home office.
4 Minnesota Life MHC-87-9154
HOW WILL WITHDRAWAL OR SURRENDER BENEFITS BE PAID?
We will pay these benefits in a single sum. However, if this contract is
surrendered you may elect one of the annuity payment options, subject to the
provisions of this contract.
ANNUITY PROVISIONS
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WHEN DO ANNUITY PAYMENTS BEGIN?
You must notify us in writing that annuity payments are to be made to the
annuitant, when these payments are to begin, the form of the annuity and what
annuity payment option has been selected. We must receive this notice at least
30 days in advance of the date annuity payments are to begin. This contract
permits annuity payments to begin on the first day of any month after the 50th
birthday and before the 75th birthday of the annuitant. However, the beginning
date for annuity payments must be consistent with any restrictions applicable to
the plan under which this contract may have been purchased.
WHAT VALUE IS AVAILABLE TO BE APPLIED TO PROVIDE ANNUITY PAYMENTS?
The accumulation value will be applied to provide annuity payments.
WHAT TYPES OF ANNUITIES ARE AVAILABLE?
Both fixed and variable annuities are available under this contract.
ARE THERE RESTRICTIONS ON ANNUITY PAYMENTS?
Yes. We require that the first monthly fixed or variable annuity payment must
be at least $20 unless a payment of a smaller minimum amount is required by law.
If the first monthly fixed or variable annuity payment would be less than that
amount, we reserve the right to pay you the accumulation value in a lump sum.
This payment would be in lieu of all other rights under this contract.
WHAT INFORMATION MAY WE NEED?
We reserve the right to require proof satisfactory to us of the age of the
annuitant and of any joint annuitant before payments begin.
We may also require proof that a person is alive before making any annuity
payment which is based on the survival of that person.
IF YOU MAKE NO ELECTION, WHEN DO ANNUITY PAYMENTS BEGIN?
If you do not elect another date, annuity payments will begin on the later of:
the first day of the month immediately following the 65th birthday of the
annuitant, or the first day of the month immediately following the fifth
contract anniversary.
IF YOU FAIL TO ELECT AN ANNUITY OPTION, UNDER WHAT OPTION WILL ANNUITY PAYMENTS
BE MADE?
If you do not elect an annuity payment option, we will make monthly payments on
the basis of Option 2A, a life annuity with a period certain of 120 months.
IF YOU FAIL TO ELECT AN ANNUITY FORM, HOW WILL ANNUITY PAYMENTS BE MADE?
If you do not elect an annuity payment form, we will make annuity payments in
the form of a variable annuity.
MUST AN ANNUITY PAYMENT OPTION BE ELECTED?
No. You may elect a lump sum payment instead. If you do so, you and the
annuitant shall have no further rights under this contract.
ANNUITY PAYMENT OPTIONS
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WHAT ANNUITY PAYMENT OPTIONS ARE AVAILABLE?
The following annuity payment options are available:
Option 1 -- Life Annuity -- annuity payments payable monthly for the lifetime
of the annuitant, ending with the last payment due prior to the annuitant's
death.
Option 2 -- Life Annuity with a Period Certain -- annuity payments payable
monthly for the lifetime of the annuitant; provided, if the annuitant dies
before payments have been made for the entire period certain, those remaining
certain payments will be made to the beneficiary.
The period certain may be for 120 months (Option 2A); for 180 months (Option
2B); or for 240 months (Option 2C).
Option 3 -- Joint and Last Survivor Annuity -- annuity payments payable
monthly for the joint lifetimes of the annuitant and a designated joint
annuitant. The payments end with the last payment due before the survivor's
death. If this option is elected, the contract and payments shall be the
joint property of the annuitant and the designated joint annuitant.
Option 4 -- Fixed Period Annuity -- annuity payments payable monthly for a
fixed period of from one to twenty years. If the annuitant dies before all
payments for the fixed period are received, payments will continue for the
remainder of the fixed period to the beneficiary.
ARE OTHER ANNUITY PAYMENT OPTIONS AVAILABLE?
Yes. Other options may be available as agreed upon between you and us.
MAY THE BENEFICIARY RECEIVE A LUMP SUM PAYMENT INSTEAD OF THE REMAINING ANNUITY
PAYMENTS?
Yes. The beneficiary may elect to have the present value of the remaining
payments paid in a lump sum. This right exists under Options 2 and 4.
The lump sum payment will be the commuted value of the remaining payments. It
will be based on the then current dollar amount of one payment, using the same
interest rate which served as a basis for the annuity.
HOW IS THE AMOUNT OF A VARIABLE ANNUITY PAYMENT DETERMINED?
The dollar amount of the first monthly variable annuity payment is determined by
applying the available value (after deduction of any premium taxes not
previously deducted) to the table below using the adjusted age of the annuitant
and any joint annuitant. A number of annuity units is then determined by
dividing this dollar amount by
5 Minnesota Life MHC-87-9154
the then current annuity unit value. Thereafter, the number of annuity units
remains unchanged during the period of annuity payments. This determination is
made separately for each sub-account of the separate account. The number of
annuity units is based upon the available value in each sub-account as of the
date annuity payments are to begin.
The dollar amount determined for each sub-account will then be aggregated for
purposes of making payment.
The dollar amount of the second and later variable annuity payments is equal to
the number of annuity units determined for each sub-account times the annuity
unit value for that sub-account as of the due date of the payment. This amount
may increase or decrease from month to month.
The value of an annuity unit for a sub-account is determined each month as of
the first day of the month. The value is equal to the annuity unit value for
that sub-account as of the first day of the preceding month times the product of
(a) .997137, and (b) a sub-account investment factor. This investment factor is
the accumulation unit value for that sub-account on the valuation date next
following the fourteenth day of the preceding month divided by the accumulation
unit value for that sub-account on the valuation date next following the
fourteenth day of the second preceding month. For any date other than the first
of a month, the annuity unit value is that on the first day of the next month.
HOW IS THE AMOUNT OF A FIXED ANNUITY PAYMENT DETERMINED?
The tables shown below are used to determine the amount of guaranteed monthly
fixed annuity payments. They show the dollar amount of each payment that can be
provided with each $1,000 of available value, after the deduction of any
applicable premium taxes not previously deducted. Amounts shown here are based
on the Progressive Annuity Table with interest at the rate of 3.5% per annum,
assuming births in the year 1900 and with an age setback of eight years. The
amount of each payment depends upon the adjusted age of the annuitant and any
joint annuitant. The adjusted age is determined from the actual age nearest
birthday at the time the first payment is due in the following manner:
CALENDAR YEAR ADJUSTED AGE IS
OF BIRTH EQUAL TO -
---------------- ------------------
Prior to 1900 Age Plus 1
1900 - 1919 Actual Age
1920 - 1939 Age Minus 1
1940 - 1959 Age Minus 2
1960 and Later Age Minus 3
DOLLAR AMOUNT OF THE FIRST MONTHLY PAYMENT WHICH IS PURCHASED WITH
EACH $1,000 OF VALUE APPLIED
(Rates shown for Options 1, 2 and 3 are for an annuity with the first payment
due immediately. They must be adjusted for any applicable state premium
taxes and the contract fee.)
ADJUSTED AGE
OF ANNUITANT SINGLE LIFE ANNUITIES
------------ ------------------------------------------------------
OPTION 1 OPTION 2A OPTION 2B OPTION 2C
-------- --------- --------- ---------
50 $4.15 $4.14 $4.11 $4.08
51 4.21 4.20 4.17 4.12
52 4.28 4.26 4.22 4.18
53 4.34 4.32 4.28 4.23
54 4.42 4.39 4.35 4.28
55 4.49 4.46 4.41 4.34
56 4.57 4.53 4.48 4.40
57 4.65 4.61 4.55 4.46
58 4.74 4.69 4.62 4.52
59 4.84 4.78 4.70 4.58
60 4.94 4.87 4.78 4.65
61 5.04 4.97 4.87 4.71
62 5.16 5.07 4.95 4.78
63 5.28 5.18 5.04 4.85
64 5.40 5.29 5.13 4.91
65 5.54 5.41 5.23 4.98
66 5.69 5.53 5.33 5.05
67 5.84 5.66 5.43 5.11
68 6.01 5.79 5.53 5.18
69 6.18 5.94 5.63 5.24
70 6.37 6.08 5.74 5.30
71 6.57 6.24 5.84 5.36
72 6.79 6.40 5.95 5.41
73 7.02 6.57 6.05 5.46
74 7.27 6.74 6.15 5.51
75 7.54 6.91 6.26 5.55
6 Minnesota Life MHC-87-9154
OPTION 3 -- JOINT AND LAST SURVIVOR LIFE ANNUITY
ADJUSTED AGE OF
JOINT ANNUITANT* ADJUSTED AGE OF ANNUITANT*
---------------- --------------------------------------------------
55 60 62 65 67 70 75
---- ---- ---- ---- ---- ---- ----
54 $3.98 $4.09 $4.13 $4.19 $4.22 $4.26 $4.32
59 4.10 4.27 4.34 4.43 4.48 4.55 4.66
61 4.15 4.34 4.42 4.52 4.59 4.68 4.81
64 4.21 4.44 4.53 4.67 4.76 4.88 5.05
66 4.25 4.50 4.61 4.76 4.87 5.01 5.23
69 4.30 4.59 4.71 4.90 5.03 5.22 5.50
74 4.37 4.71 4.86 5.10 5.27 5.54 5.98
* Dollar amounts of the first monthly payments for ages not shown in this table
will be calculated on the same basis as those shown and may be obtained from us.
OPTION 4 -- FIXED PERIOD ANNUITY
FIXED PERIOD DOLLAR AMOUNT FIXED PERIOD DOLLAR AMOUNT
(YEARS) OF PAYMENT (YEARS) OF PAYMENT
------------ ------------- ------------ -------------
1 $84.65 11 $9.09
2 43.05 12 8.46
3 29.19 13 7.94
4 22.27 14 7.49
5 18.18 15 7.10
6 15.35 16 6.76
7 13.38 17 6.47
8 11.90 18 6.20
9 10.75 19 5.97
10 9.83 20 5.75
WILL THESE TABLES ALWAYS BE USED FOR ANNUITY PURCHASES?
Not necessarily. If, when annuity payments are elected, we are using tables of
annuity purchase rates for this class of contract which would result in larger
annuity payments, we will use those tables instead.
ONCE ANNUITY PAYMENTS BEGIN, MAY A FIXED ANNUITY OPTION BE CHANGED?
No.
ONCE ANNUITY PAYMENTS BEGIN, MAY A VARIABLE ANNUITY OPTION BE CHANGED?
No.
MAY AMOUNTS BE TRANSFERRED DURING THE ANNUITY PERIOD?
Yes. Amounts held as annuity reserves may be transferred among the variable
annuity sub-accounts during the annuity period. Annuity reserves may also be
transferred from a variable annuity to a fixed annuity during this time.
HOW DOES AN ANNUITANT CHANGE SUB-ACCOUNT ELECTIONS OR TRANSFER AMOUNTS TO A
FIXED ANNUITY?
The change must be by written request. The annuitant and joint annuitant, if
any, must make such an election.
HOW WILL A TRANSFER OF VARIABLE ANNUITY SUB-ACCOUNTS BE MADE?
A transfer will be made on the basis of annuity unit values. The number of
annuity units from the sub-account being transferred will be converted to a
number of annuity units in the new sub-account. The annuity payment option will
stay the same.
After this conversion, a number of annuity units in the new sub-account will be
payable under the elected option. The first payment after conversion will be of
the same amount as it would have been without the transfer. The number of
annuity units will be set at that number of units which are needed to pay
that same amount on the transfer date.
ARE THERE RESTRICTIONS ON ANNUITY SUB-ACCOUNT TRANSFERS?
Yes. The transfer of an annuity reserve amount from any sub-account must be at
least equal to: 1) $5,000; or, 2) the entire amount of the reserve remaining in
that sub-account.
In addition, annuity payments must have been in effect for a period of 12 months
before a change may be made. Such transfers can be made only once every 12
months. Your written request for an annuity transfer must be received by us
more than 30 days in advance of the due date of the annuity payment subject to
the transfer.
7 Minnesota Life MHC-87-9154
MAY AMOUNTS HELD AS RESERVES TO PAY A VARIABLE ANNUITY BE TRANSFERRED TO A FIXED
ANNUITY?
Yes. However, the restrictions which apply to annuity sub-account transfers
will apply here as well.
The amount transferred will then be applied to provide a fixed annuity amount.
This amount will be based upon the adjusted age of the annuitant and any joint
annuitant at the time of the transfer. The payment option will remain the same.
MAY AMOUNTS PAID AS A FIXED ANNUITY BE TRANSFERRED TO A VARIABLE ANNUITY?
No.
AMOUNT PAYABLE AT DEATH
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WHAT AMOUNT IS PAYABLE AT DEATH?
If you die before annuity payments have started, we will pay the accumulation
value. The accumulation value will be determined as of the valuation date
coincident with or next following the day we receive due proof of death at
our home office. If the annuitant dies after annuity payments have started,
we will pay whatever amount may be called for by the terms of the annuity
payment option selected.
The remaining interest in the contract must be distributed at least as rapidly
as under the option in effect at the annuitant's death.
IS THERE A GUARANTEED DEATH BENEFIT?
Yes. This contract has a guaranteed death benefit if you die before annuity
payments have started. The death benefit shall be equal to the greater of:
(1) the amount of the accumulation value payable at death; or (2) the amount
of the initial purchase payment paid to us as consideration for this
contract, less all contract withdrawals.
TO WHOM WILL WE PAY THOSE BENEFITS?
When we receive due proof of death satisfactory to us, we will pay the amount
payable at death under this contract to the beneficiary or beneficiaries. The
beneficiary will be the person or persons named in the application for this
contract unless you subsequently change the beneficiary. In that event, we
will pay the amount payable at death to the beneficiary named in your last
change of beneficiary request as provided in this contract.
HOW WILL THE AMOUNT PAYABLE AT DEATH BE PAID?
We will pay that amount in a single sum unless another form of settlement has
been requested and agreed to by us. All payments by us are payable at our home
office. Proof of any claim under this contract must be submitted in writing to
us at our home office.
WHEN MUST DEATH BENEFITS BE PAID?
If you die on or before the date on which annuity payments begin and if the
designated beneficiary is a person other than your spouse, that beneficiary may
elect an annuity option measured by a period not longer than that beneficiary's
life expectancy only so long as annuity payments begin not later than one year
after your death. If there is no designated beneficiary, then the entire
interest in this contract must be distributed within five years after your
death. If the annuitant dies after annuity payments have begun, any payments
received by a non-spouse beneficiary must be distributed as least as rapidly as
under the method elected by the annuitant as of the date of death.
If any portion of the contract interest is payable to your designated
beneficiary who is your surviving spouse, that spouse shall be treated as the
contract owner for purposes of: (a) when payments must begin; and (2) the time
of distribution in the event of your spouse's death. Payments must be made in
substantially equal installments.
WHAT HAPPENS IF ONE OR ALL OF THE BENEFICIARIES DIE BEFORE THE ANNUITANT?
If a beneficiary dies before the annuitant, that beneficiary's interest in this
contract ends with that beneficiary's death. Only those beneficiaries who
survive will be eligible to share in a death benefit. If no beneficiary
survives the annuitant prior to the date an annuity begins we will pay the
accumulation value of this contract to the executors or administrators of the
annuitant's estate.
CAN YOU CHANGE THE BENEFICIARY?
Yes. You can file a written request with us to change the beneficiary.
Your written request will not be effective until it is recorded in our home
office records. After it has been recorded, it will take effect as of the date
you signed the request. However, if the annuitant dies before the request has
been recorded, the request will not be effective as to those death proceeds we
have paid before the request was recorded in our home office records.
ADDITIONAL INFORMATION
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CAN YOU ASSIGN THIS CONTRACT?
Unless this contract provides otherwise, you may assign all rights to this
contract during the lifetime of the annuitant. We will not be bound by any
assignment until we have recorded written notice of it at our home office. We
are not responsible for the validity of any assignment. An assignment will not
apply to any payment or action made by us before it was recorded. Any proceeds
which become payable to an assignee will be payable in a single sum. Any claim
made by an assignee will be subject to proof of the assignee's interest and the
extent of the assignment.
If this contract is issued pursuant to a retirement plan which receives
favorable tax treatment under the provisions of Section 401, 403, 404, 408 or
457 of the Internal Revenue Code, then, it may not be assigned, pledged or
otherwise transferred except under such conditions as may be allowed under
applicable law.
ARE THE CONTRACT BENEFITS PROTECTED?
Yes. To the extent permitted by law, no benefit provided by this contract will
be subject to any creditor's claim or process of law.
8 Minnesota Life MHC-87-9154
HOW WILL BENEFITS BE DETERMINED?
Any paid-up benefit, withdrawal benefit, surrender benefit, or any other benefit
described by this contract shall be calculated as of the date the provisions of
the contract are exercised.
WHAT IF A PERSON'S AGE IS MISSTATED?
If a person's age has been misstated, the amount payable under this contract
as an annuity will be that amount which would have been paid based upon that
person's correct age. In the case of an overpayment, we may either deduct
the required amount from that person's payments under this contract; or, we
may require you to pay us in cash; or we may do both until we are fully
repaid. In the case of an underpayment, we will pay the required amount with
the next payment.
WHAT INFORMATION MUST YOU PROVIDE?
You must provide any other information we need to administer this contract. If
you cannot do so, we may ask the person concerned for that information. We
shall not be liable for any payment based upon information given to us in error
or not given to us.
DO CONTRACT VALUES COMPLY WITH STATE REQUIREMENTS?
Yes. Amounts payable at death, withdrawal and surrender benefits, accumulation
values and the paid-up annuity benefit described by this contract are not less
than the minimum benefits required by any statute of the state in which this
contract is delivered.
WHAT ANNUITY RESERVES WILL WE HOLD UNDER THIS CONTRACT?
Reserves held by us for annuity payments under this contract shall not be less
than those reserves required by the law in the state in which this contract is
delivered.
MAY THIS CONTRACT BE MODIFIED?
This contract may be modified at any time by written agreement between you and
us. However, no such modification will adversely affect the rights of an
annuitant under this contract unless the modification is made to comply with a
law or government regulation. Such modification will be in writing. You will
have the right to accept or reject such a modification.
HOW DOES THIS CONTRACT RELATE TO THE OWNERSHIP OF THE SEPARATE ACCOUNT?
We have exclusive and absolute ownership of the separate account.
WHEN WILL LUMP SUM PAYMENTS BE MADE?
Usually, we will make payment within seven days after payment is called for by
the terms of the contract. However, we reserve the right to defer payment for
such period as may be allowed under the 1940 Act.
DO YOU HAVE ADDITIONAL VOTING RIGHTS?
Yes. You may direct us with respect to the voting rights of fund shares held by
us and attributable to this contract.
9 Minnesota Life MHC-87-9154
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MINNESOTA LIFE
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FLEXIBLE PAYMENT DEFERRED
VARIABLE ANNUITY CONTRACT
FIXED OR VARIABLE ANNUITY
BENEFITS
A NONPARTICIPATING CONTRACT
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