THRIVENT FINANCIAL FOR LUTHERANS
A Fraternal Benefit Society
Appleton, Wisconsin 54919-0001 Flexible Premium
Variable Life Insurance
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This certificate of membership and flexible premium variable life
insurance is a legal contract between you and Thrivent Financial for
Lutherans. We issue this contract based on the Application signed by
the applicant and the payment of the initial premium. Upon receiving
due proof of the Insured's death, we will pay the Death Proceeds (see
Section 5.1) to the beneficiary according to the provisions of this
contract.
The amount or duration of the Death Benefit may vary with the
Accumulated Value. The Accumulated Value may increase or decrease
daily based on the investment experience of the Variable Account.
If this contract is in force with no Debt and no unpaid Monthly
Deductions, the Death Proceeds will be at least equal to the Face
Amount. If you meet the requirements for a Death Benefit Guarantee,
this contract will remain in force at least until the Termination Date
shown for that Death Benefit Guarantee on page 3.
Right to Cancel. Please read this contract carefully. You may cancel
the contract for any reason before midnight of the 10th day after you
first receive it. Do this by (1) mailing or delivering notice of
cancellation to our Service Center or to the representative through
whom you bought it, and (2) returning the contract. Notice given by
mail and return of the contract by mail are effective on being
postmarked, properly addressed and postage prepaid. If you cancel the
contract, it will be deemed void from the beginning. Within seven days
after we receive notice of cancellation and the returned contract, we
will refund all premiums paid.
Flexible Premium Variable Life Insurance.
Life insurance payable at death.
Adjustable death benefit.
Contract benefits reflect investment experience of Variable Account.
Annual dividends payable if earned.
Settlement options to provide income.
Signed for the Society
President
Secretary
V-VQ-VUL (03)
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Table of Contents
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Cover Page
Index
Contract Schedule, Contract Data
Section 1 Definitions
Section 2 General Provisions
Section 3 Membership and Ownership
Section 4 Premiums and Reinstatement
Section 5 Death Benefits
Section 6 Changes in Face Amount
Section 7 Accumulated Value and Transfers
Section 8 Surrender
Section 9 Monthly Deduction
Section 10 Loans
Section 11 Variable Account and Unit Values
Section 12 Fixed Account
Section 13 Beneficiary
Section 14 Settlement Provisions
Section 15 Dividends
Additional Benefits, Amendments, Application
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Index
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Section
Accumulated Value......................7
Accumulation Unit Value...............11
Allocation of Premiums.................4
Annual Report..........................2
Applicant Controller...................3
Automatic Transfers....................7
Asset Rebalancing....................7
Dollar Cost Averaging................7
Beneficiary...........................13
Cash Surrender Value...................8
Change of Death Benefit Option.........5
Continuation of Insurance..............4
Cost of Insurance......................9
Death Benefit..........................5
Death Benefit Guarantees...............5
Death Benefit Guarantee Premiums.....5
Death Benefit Guarantee Requirements.5
Death Proceeds.........................5
Decrease Charge........................6
Decrease in Face Amount................6
Delay of Payment.......................2
Dividends.............................15
Entire Contract........................2
Fixed Account.........................12
General Account........................1
Section
Grace Period...........................4
Incontestability.......................2
Increase in Face Amount................6
Loan Account..........................10
Loans.................................10
Maintenance of Solvency................2
Membership.............................3
Misstatement of Age or Sex.............2
Monthly Deduction......................9
Net Premium............................1
Ownership..............................3
Paid-Up Life Insurance Option..........8
Premium in Default and Grace Period....4
Premiums...............................4
Reinstatement..........................4
Settlement Options....................14
Suicide................................2
Surrender..............................8
Cash Surrender Value.................8
Partial Surrender....................8
Full Surrender.......................8
Transfer and Assignment................3
Transfer of Accumulated Value..........7
Variable Account......................11
THRIVENT FINANCIAL FOR LUTHERANS Service Center:
▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇ Thrivent Financial for Lutherans
Appleton, Wisconsin 54919-0001 ▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇-0001
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Contract Schedule Telephone (▇▇▇) ▇▇▇-▇▇▇▇
BASIC BENEFIT
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
PREMIUMS PAYABLE TO THE CONTRACT ANNIVERSARY AFTER AGE 100
PLANNED PREMIUM: $100.00
INTERVAL OF PAYMENT: MONTHLY
RISK CLASS: STANDARD NON-TOBACCO
DCA FIXED ACCOUNT GUARANTEED INTEREST RATE - 6.00%
VARIABLE ACCOUNT: THRIVENT VARIABLE LIFE ACCOUNT I
Accumulated Values in the Variable Account depend on the investment
experience of the Variable Account and, except as provided by payment
of Death Benefit Guarantee Premiums (see Section 5.4), coverage will
terminate if the Cash Surrender Value is not sufficient to cover the
Monthly Deduction. Investment performance or payment of planned
premiums may not be sufficient to continue this contract in force.
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DEATH BENEFIT OPTION 1 (SEE SECTION 5.2)
MAXIMUM LOAN INTEREST RATE 5.00% (SEE SECTION 10.3)
BASIC DEATH BENEFIT GUARANTEE SEE SECTION 5.4
PREMIUM $75.33 PER MONTH
TERMINATION DATE CONTRACT ANNIVERSARY AFTER AGE 50
ENHANCED DEATH BENEFIT GUARANTEE SEE SECTION 5.4
PREMIUM $89.65 PER MONTH
TERMINATION DATE CONTRACT ANNIVERSARY AFTER AGE 75
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INSURED: ▇▇▇▇ ▇▇▇ AGE: 35 SEX: MALE
CONTRACT NUMBER: V1234567 DATE OF ISSUE: JULY 1, 2003
INITIAL FACE AMOUNT: $100,000
V-VQ-VUL (03) page 3
Date of Issue: JULY 1, 2003 Contract Number: ▇▇▇▇▇▇▇▇▇
INSURED: ▇▇▇▇ ▇▇▇
AGE: 35 Flexible Premium
INITIAL FACE AMOUNT: $100,000 VARIABLE LIFE INSURANCE
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CONTRACT CHARGES
BASIC MONTHLY CHARGE: $9.00 PER MONTH
PERCENT OF PREMIUM CHARGE: 5.0% OF EACH PREMIUM
PARTIAL SURRENDER CHARGE
CONTRACT YEARS 1 - 10: $25.00 FOR EACH PARTIAL SURRENDER IN EXCESS
OF 1 IN ANY CONTRACT YEAR
THEREAFTER: NO CHARGE
TRANSFER CHARGE: $25.00 FOR EACH TRANSFER IN EXCESS
OF 12 IN ANY CONTRACT YEAR
MAXIMUM ANNUAL MORTALITY AND EXPENSE RISK CHARGE
(AS A PERCENTAGE OF ACCUMULATED VALUE IN THE SUBACCOUNTS)
ACCUMULATED VALUE IN CONTRACT CONTRACT
THE SUBACCOUNTS YEARS 1 - 10 YEARS 11+
FIRST $25,000 1.10% 0.90%
NEXT $75,000 1.00% 0.80%
AMOUNTS OVER $100,000 0.90% 0.70%
DECREASE CHARGE#
CONTRACT DECREASE CHARGE
YEAR PER $1,000
1 - 5 $ 12.23
6 10.19
7 8.15
8 6.11
9 4.08
THEREAFTER 0.00
# DECREASE CHARGE PER $1,000 OF INITIAL FACE AMOUNT IF THE INITIAL FACE
AMOUNT IS DECREASED (SEE SECTIONS 5.3, 6.2 AND 8.3) OR IF THIS CONTRACT IS SURRENDERED
(SEE SECTION 8.1). ADDITIONAL DECREASE CHARGES WILL APPLY TO INCREASES IN FACE AMOUNT.
MINIMUM FACE AMOUNT: $100,000 THROUGH ATTAINED AGE 50, THEN $50,000
V-VQ-VUL (03) page 4
Date of Issue: JULY 1, 2003 Contract Number: ▇▇▇▇▇▇▇▇▇
INSURED: ▇▇▇▇ ▇▇▇
AGE: 35 Flexible Premium
INITIAL FACE AMOUNT: $100,000 VARIABLE LIFE INSURANCE
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COST OF
BEGINNING ATTAINED INSURANCE
ON AGE RATE*
JULY 1,
2003 35 0.13
2004 36 0.14
2005 37 0.15
2006 38 0.16
2007 39 0.17
2008 40 0.18
2009 41 0.20
2010 42 0.21
2011 43 0.23
2012 44 0.25
2013 45 0.28
2014 46 0.31
2015 47 0.33
2016 48 0.36
2017 49 0.39
2018 50 0.42
2019 51 0.46
2020 52 0.51
2021 53 0.56
2022 54 0.62
2023 55 0.68
2024 56 0.75
2025 57 0.82
2026 58 0.91
2027 59 1.00
2028 60 1.10
2029 61 1.22
2030 62 1.35
2031 63 1.50
2032 64 1.67
* MAXIMUM MONTHLY COST PER $1,000 OF INSURANCE FOR NON-TOBACCO RISK
CLASSES, BASED ON COMMISSIONERS 1980 STANDARD ORDINARY NONSMOKER
MORTALITY TABLE. AGE AT ISSUE IS AGE LAST BIRTHDAY.
V-VQ-VUL (03) page 5
Date of Issue: JULY 1, 2003 Contract Number: ▇▇▇▇▇▇▇▇▇
INSURED: ▇▇▇▇ ▇▇▇
AGE: 35 Flexible Premium
INITIAL FACE AMOUNT: $100,000 VARIABLE LIFE INSURANCE
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COST OF
BEGINNING ATTAINED INSURANCE
ON AGE RATE*
JULY 1,
2033 65 1.85
2034 66 2.05
2035 67 2.26
2036 68 2.49
2037 69 2.74
2038 70 3.03
2039 71 3.36
2040 72 3.74
2041 73 4.17
2042 74 4.64
2043 75 5.15
2044 76 5.68
2045 77 6.24
2046 78 6.82
2047 79 7.46
2048 80 8.15
2049 81 8.93
2050 82 9.81
2051 83 10.79
2052 84 11.84
2053 85 12.95
2054 86 14.09
2055 87 15.26
2056 88 16.44
2057 89 17.65
2058 90 18.92
2059 91 20.26
2060 92 21.73
2061 93 23.47
2062 94 25.81
2063 95 29.32
2064 96 35.08
2065 97 45.08
2066 98 62.09
2067 99 83.33
* MAXIMUM MONTHLY COST PER $1,000 OF INSURANCE FOR NON-TOBACCO RISK
CLASSES, BASED ON COMMISSIONERS 1980 STANDARD ORDINARY NONSMOKER
MORTALITY TABLE. AGE AT ISSUE IS AGE LAST BIRTHDAY.
V-VQ-VUL (03) page 5 Continued
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1. DEFINITIONS
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Account Ratio. The Account Ratio is used to allocate Monthly
Deductions, Partial Surrenders, transfers and contract loans among the
subaccounts and the Fixed Account. The Account Ratio for any
subaccount or the Fixed Account is the ratio of the accumulated value
in that subaccount or Fixed Account to the Accumulated Value of the
contract less any Debt.
Application. The application(s) and all amendments and supplements to
the application.
Attained Age. Attained Age on any day is the Insured's age on the
Contract Anniversary on or immediately prior to that day.
Contract Anniversary. The same month and day of each year after issue
as in the Date of Issue on page 3.
Contract Date. The date we receive at our Service Center the first
premium on this contract or, if later, the Date of Issue on page 3.
Contract Year. The first Contract Year is the period of time from the
Date of Issue until the first Contract Anniversary. Thereafter,
Contract Year is the period of time from one Contract Anniversary to
the next Contract Anniversary.
Debt. All unpaid contract loans plus accrued interest to date.
Face Amount. The amount of life insurance provided by this contract
exclusive of any riders. The Face Amount on the Date of Issue is the
Initial Face Amount shown on page 3. Increases or decreases in Face
Amount will be shown on supplemental contract schedules that we will
mail to you.
General Account. The General Account includes all assets we own that
are not in the Variable Account or any other separate account of the
Society. The Loan Account, reserves for the Fixed Account and reserves
for the Death Benefit Guarantees are maintained in the General Account.
Insurance Coverage Amount. The Face Amount plus any amount of
insurance on the Insured provided by a term life insurance rider
attached to this contract.
Issue Age. The Insured's age on the Date of Issue as shown on page 3.
Monthly Anniversary. The same day of the month of each month after
issue as in the Date of Issue on page 3.
Net Premium. The Net Premium is the portion of each premium that is
applied to the subaccounts of the Variable Account or to the Fixed
Account. The Net Premium is equal to the premium paid less the Percent
of Premium Charge shown on page 4.
SEC. Securities and Exchange Commission.
Service Center. The location where this contract is administered. The
Service Center address is shown on page 3.
Valuation Day. Any day that the New York Stock Exchange is open for
trading. Accumulation Unit Values are determined as of the close of
trading on each Valuation Day.
Valuation Period. The period of time from the determination of
Accumulation Unit Values on a Valuation Day to the determination of
those values on the next Valuation Day.
we, our, us, Society. Thrivent Financial for Lutherans.
Written Notice. A written request signed by you and received in good
order by us at our Service Center.
you, your, yours. The owner(s) of this contract.
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2. GENERAL PROVISIONS
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2.1 ENTIRE CONTRACT. The Entire Contract consists of:
1) This contract including any attached riders, amendments or
endorsements;
2) The Application attached to this contract; and
3) The Articles of Incorporation and Bylaws of the Society that are
in force on the Date of Issue.
2.2 CHANGE OF CONTRACT. No change to this contract is valid unless it
is made in writing and signed by our President or Secretary. We
reserve the right to amend this contract as necessary to comply with
any changes in federal laws, rules or regulations regarding
qualification of this contract as life insurance.
2.3 STATEMENTS IN THE APPLICATION. We will not use any statement to
contest a claim or to have this contract declared invalid unless the
statement is contained in the Application. All statements made in the
Application are considered representations, not warranties.
2.4 INCONTESTABILITY. We will not contest the validity of this
contract after it has been in force during the Insured's lifetime for
two years from the Date of Issue except for any provisions granting
benefits in the event of total disability.
If the Face Amount is increased according to Section 6.1, this
provision will apply to the increase from its effective date with
regard to statements made in the application for the increase. This
provision will apply from the date this contract is reinstated with
regard to statements made in the application for reinstatement.
2.5 MISSTATEMENT OF AGE OR SEX. If the Insured's age or sex has been
misstated and Death Proceeds are payable, the Face Amount will be
adjusted to the amount that would have been provided by the most recent
Cost of Insurance deduction using the correct age and sex.
2.6 EXCLUSION: SUICIDE. If the Insured dies by suicide, while sane or
insane, within two years after the Date of Issue, the Death Proceeds of
this contract are limited to premiums paid less the sum of:
1) Any Debt; and
2) Any Partial Surrenders.
If the Insured dies by suicide, while sane or insane, within two years
after the effective date of an increase in Face Amount according to
Section 6.1, the Death Proceeds with respect to the increase are
limited to the Cost of Insurance for the increase (see Section 9.2).
2.7 EXEMPTIONS FROM CLAIMS OF CREDITORS. To the extent permitted by
law, the proceeds of this contract and any payments we make under it
will not be subject to the claims of creditors or to any legal
proceedings.
2.8 FILING A DEATH CLAIM. Written notice of death must be given to us
at our Service Center. We will provide a claim form upon receiving the
death claim notice. We will begin processing a claim when we receive
the completed claim form and a certified copy of the death certificate.
2.9 MAINTENANCE OF SOLVENCY. This provision applies only to benefits
provided through the General Account. If the solvency of the Society
becomes impaired, you may be required to make an extra payment. The
Board of Directors will determine the amount of any extra payment. It
will be based on each member's fair share of the deficiency.
You may make the extra payment by an equivalent reduction in benefits
or by a payment in cash. If you do not make the extra payment within
60 days from the date we notify you of your share of the deficiency,
the amount will be charged as a loan against the contract with interest
compounded at the rate of 5% per year.
2.10 DELAY OF PAYMENT. Death Proceeds will normally be paid within
seven days after we receive at our Service Center due proof of the
Insured's death and all other requirements necessary for us to make
payment. The Cash Surrender Value, Partial Surrenders and contract
loans will normally be paid within seven days after we receive Written
Notice of surrender or loan. However, if Death Proceeds, surrenders or
loans include amounts from the Variable Account, we may delay payment
of those amounts while:
1) The New York Stock Exchange is closed for trading;
2) The SEC requires that trading be restricted or declares an
emergency; or
3) The SEC, by order, permits us to delay payments for the protection
of contract owners.
We may delay for not more than six months payment of any portion of
loan or surrender amounts from the Fixed Account.
2.11 ANNUAL REPORT. We will provide you a statement of the value of
this contract at least once each Contract Year. The annual report will
show the Accumulated Value, Cash Surrender Value, Death Benefit,
payments and deductions since the last report, any outstanding Debt and
any further information required by law.
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3. MEMBERSHIP AND OWNERSHIP
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3.1 MEMBERSHIP. If the Issue Age is 16 or over or if this contract was
applied for with a third-party owner, then the person(s) who applied
for this contract and is named in the Application as a member is a
benefit member of the Society. Otherwise, the Insured will become a
benefit member of the Society on the Contract Anniversary on or
following the Insured's 16th birthday. Rights and privileges of
membership are set forth in the Articles of Incorporation and Bylaws of
the Society or in the Application. These rights and privileges are
separate from the ownership of this contract.
3.2 OWNERSHIP. The Insured is the owner of this contract unless
another owner is named in the Application or ownership is transferred
under Section 3.5. While the Insured is living, the owner may exercise
all rights set out in this contract except as provided in Section 3.3.
If there are multiple owners, all must act in concert to exercise
ownership rights.
3.3 APPLICANT CONTROLLER. If the Issue Age is less than 16 and the
contract was applied for by an applicant controller, then the Insured
is the owner of this contract but may not exercise ownership rights
until control of the contract is transferred to the Insured. Before
control is transferred, only the applicant controller may exercise
ownership rights on behalf of the Insured. Subject to our approval,
control may be transferred to another person but ownership may not be
transferred.
After the Insured attains age 16, the controller of this contract may transfer
control to the Insured by sending a written request to our Service Center. If
the controller dies after the Insured attains age 16, control will be
transferred to the Insured on the date of the controller's death. If control has
not transferred to the Insured as of the Contract Anniversary after the
Insured's 21st birthday, control will be transferred to the Insured on that
date.
Before the Insured attains age 16, if the controller of this contract
dies or if we consider it to be in the best interest of the Insured,
control will be vested in another eligible person according to our Bylaws.
3.4 SUCCESSOR OWNER. If you are an owner who is not the Insured, you
may name a successor owner who will become the owner of this contract
if you die before the Insured. If you do not name a successor owner or
no successor owner survives you, then your estate will be the owner
upon your death. You may name or change a successor owner by giving
Written Notice. The successor owner must be eligible under our Bylaws.
The new successor owner will be effective as of the date you sign the
notice or, if the notice is not dated, on the date the notice is
received at our Service Center.
3.5 TRANSFER AND ASSIGNMENT. You may transfer ownership of this
contract, if the new owner is eligible under our Bylaws, or assign this
contract as collateral while the Insured is living by giving Written
Notice. Transfer of ownership will be effective as of the date you
sign the Written Notice or, if the notice is not dated, on the date the
notice is received at our Service Center. We are not responsible for
the validity or effect of any assignment, and we are not liable for any
payment made or action taken by us before we receive Written Notice.
If the Issue Age is less than 16 and the contract was applied for by an
applicant controller, then ownership may be transferred only after
control has been transferred to the Insured (see Section 3.3). Any
Debt on this contract will have prior claim over any assignment.
Society membership rights and privileges cannot be transferred or
assigned.
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4. PREMIUMS AND REINSTATEMENT
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4.1 PREMIUM PAYMENTS. The amount of the Planned Premium and its
interval of payment are shown on page 3. The initial premium is due on
or before the Date of Issue.
Premiums may be paid at any time before Attained Age 100. You may pay
more or less than the Planned Premium, but each premium must be at
least $25. However, except as provided in Section 5.4, to continue the
contract in force on each Monthly Anniversary the Cash Surrender Value
must be sufficient to cover the Monthly Deduction. We reserve the
right to not accept premiums when the Death Benefit is based on the
Table of Factors in Section 5.2.
Premiums are payable at our Service Center.
4.2 CUMULATIVE PREMIUM LIMIT. The Internal Revenue Code provides for
exclusion of the Death Proceeds from gross income. To qualify for the
exclusion, total premium payments must not exceed the limit stated in
the Code. To comply with these requirements, we may refuse to accept
premiums and may refund any premiums, earnings on premiums or
accumulated value. In addition, any transaction that would result in
this contract not complying with Internal Revenue Code requirements
will not be permitted.
4.3 PREMIUM BILLING. We will send premium ▇▇▇▇▇▇▇▇ based on the amount
and interval of premium payments which you request. You may change the
amount and, subject to our published rules, the interval or method of
billing by giving Written Notice. If we do not receive any premium
payments for 24 consecutive months, we will stop ▇▇▇▇▇▇▇▇.
4.4 ALLOCATION OF PREMIUMS. Net Premiums are allocated to the
subaccounts of the Variable Account and to the Fixed Account according
to the premium allocation percentages you select for this contract.
Premiums received before the Contract Date are applied to the General
Account and are credited with interest from the day we receive them in
our Service Center to the Contract Date. On the Contract Date, those
premiums are applied as a premium payment and any interest credited is
applied as if it were a Net Premium. After the Contract Date, payments
are applied at the end of the Valuation Period during which we receive
them.
The premium allocation percentages on the Date of Issue are specified
in the Application. You may change these percentages by giving Written
Notice. Any change will be effective for each premium received with or
after your notice. The sum of premium allocation percentages must be
100% and each premium allocation percentage must be a whole number not
greater than 100%. If necessary, we will adjust your allocation to
eliminate fractional percentages.
4.5 PREMIUM IN DEFAULT AND GRACE PERIOD. Unless a Death Benefit
Guarantee is in effect under Section 5.4, a premium is in default on a
Monthly Anniversary if the Monthly Deduction to be made on that day
would result in a Cash Surrender Value less than zero. Notice of the
premium required to keep this contract in force will be mailed to you
at the address last known to us. You will have a grace period of 61
days after the date we mail the notice during which the contract will
remain in force. If the required premium is received at our Service
Center within the grace period, we will deduct any Monthly Deductions
not made while a premium was in default. Otherwise, this contract will
terminate without value at the end of the grace period.
4.6 REINSTATEMENT. This contract may be reinstated within three years
after the end of the grace period unless it has been surrendered. To
reinstate we require:
1) Evidence of insurability which meets our standards;
2) Payment of a premium sufficient to cover the Monthly Deductions
that were not made during the grace period;
3) Payment of a premium sufficient to keep this contract in force for
at least two months, based on unit values on the date of
reinstatement; and
4) Repayment of all Debt existing at the end of the
grace period.
The effective date of a reinstatement is the date the application for
reinstatement is approved by us.
Section 2.4 INCONTESTABILITY will apply from the date the contract is
reinstated with regard to statements made in the application for
reinstatement.
Death Benefit Guarantees cannot be reinstated under this provision.
4.7 CONTINUATION OF INSURANCE COVERAGE. If you stop premium payments,
this contract will remain in force until the first of the following
events to occur:
1) The date of death of the Insured.
2) The end of the grace period if the premium required to keep this
contract in force has not been paid.
3) The date you surrender this contract.
4) The date this contract terminates from excess loan under Section
10.6.
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5. DEATH BENEFITS
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5.1 DEATH PROCEEDS. The Death Proceeds payable upon the death of the
Insured while this contract is in force is the sum, on the date of
death, of:
1) The Death Benefit (see Section 5.2); and
2) Any insurance on the Insured's life provided by Additional Benefits
in this contract;
Less the sum of:
3) Any Debt; and
4) The amount, if any, needed to cover Monthly Deductions through the
month of death.
5.2 DEATH BENEFIT. The Death Benefit on any day depends upon the Death
Benefit Option in effect on that day. The Death Benefit Option on the
Date of Issue is shown on page 3. You may change this option prior to
Attained Age 100 (see Section 5.3).
5.2a Option 1. The Death Benefit on any day before the Insured's
Attained Age 100 is the Face Amount or, if greater, the Accumulated
Value multiplied by the Factor for the Attained Age on that day (see
Table of Factors).
The Death Benefit on any day on or after the Insured's Attained Age 100
is equal to the Accumulated Value on that day.
5.2b Option 2. The Death Benefit on any day before the Insured's
Attained Age 100 is the sum of the Face Amount and the Accumulated
Value or, if greater, the Accumulated Value multiplied by the Factor
for the Attained Age on that day (see Table of Factors).
The Death Benefit on any day on or after the Insured's Attained Age 100
is equal to the Accumulated Value on that day.
TABLE OF FACTORS
Attained Attained
Age Factor Age Factor
40 or less 2.50 61 1.28
41 2.43 62 1.26
42 2.36 63 1.24
43 2.29 64 1.22
44 2.22 65 1.20
45 2.15 66 1.19
46 2.09 67 1.18
47 2.03 68 1.17
48 1.97 69 1.16
49 1.91 70 1.15
50 1.85 71 1.13
51 1.78 72 1.11
52 1.71 73 1.09
52 1.71 73 1.09
53 1.64 74 1.07
54 1.57 75 to 90 1.05
55 1.50 91 1.04
56 1.46 92 1.03
57 1.42 93 1.02
58 1.38 94 1.01
59 1.34 95 to 99 1.00
60 1.30
5.3 CHANGE OF DEATH BENEFIT OPTION. You may change the Death Benefit
Option at any time before the Insured's Attained Age 100 except when
the Death Benefit is based on the Table of Factors in Section 5.2. The
change is subject to the following:
1) You must give Written Notice.
2) If you change from Option 1 to Option 2, the Face Amount will be
decreased by the Accumulated Value on the effective date of the
change. The decrease in Face Amount and any Decrease Charge will be
applied in the order specified in Section 6.2(2). However, this
change may not be made if it would reduce the Face Amount to less
than the Minimum Face Amount shown on page 4.
If the change from Option 1 to Option 2 would cause total premium
payments already made to exceed the Cumulative Premium Limit of the
Internal Revenue Code, the change may be made only if there are
sufficient premiums, including earnings on those premiums, remaining
in the contract and the Cash Surrender Value exceeds the refund
required under the Code. If the change is made, the required refund
will be taken as a Partial Surrender with no Partial Surrender
Charge applied.
3) If you change from Option 2 to Option 1, the Face Amount will be
increased by the Accumulated Value on the effective date of the
change. The Decrease Charge applicable to the increase will be the
same as the Decrease Charge that applies to the most recent increase
in Face Amount or, if there have been no increases, the Decrease
Charge that applies to the Initial Face Amount.
4) A new Death Benefit Guarantee Premium will be determined for any
Death Benefit Guarantee in effect on the effective date of the
change.
5) The effective date of the change will be the Monthly Anniversary on
or next after the date we receive Written Notice. The new Death
Benefit Option will be shown on the supplemental contract schedule
that we will mail to you.
5.4 DEATH BENEFIT GUARANTEES. Death Benefit Guarantees protect against
a premium being in default due to investment experience. This contract
includes a Basic Death Benefit Guarantee and, if the Issue Age is less
than 70, an Enhanced Death Benefit Guarantee. The Death Benefit
Guarantee Premium and Termination Date for each guarantee included are
shown on page 3. If you pay sufficient premiums to meet the
requirements of a Death Benefit Guarantee and that Death Benefit
Guarantee has not terminated, then:
1) No premium will be in default under Section 4.5; and
2) If the Monthly Deduction to be made exceeds the Accumulated Value
less any Debt, no deduction will be made and the Monthly Deduction
will be postponed until the next Monthly Anniversary on which the
Accumulated Value less any Debt exceeds the amount of the postponed
Monthly Deduction.
5.4a Death Benefit Guarantee Requirements. On any Monthly Anniversary,
the requirements for a Death Benefit Guarantee are met if (1) is
greater than (2) where:
1) Is the sum of:
a) Premiums paid; and
b) Any premiums credited to this contract under a waiver of
selected amount benefit rider;
Less the sum of:
c) Any Partial Surrenders; and
d) Any Debt.
2) Is the sum of Death Benefit Guarantee Premiums for that Death
Benefit Guarantee from the Date of Issue through that Monthly
Anniversary.
5.4b Death Benefit Guarantee Premiums. Death Benefit Guarantee
Premiums on the Date of Issue are shown on page 3. If a Death Benefit
Guarantee has not terminated, then for that guarantee a new Death
Benefit Guarantee Premium will be determined whenever:
1) The Death Benefit Option is changed;
2) The Face Amount is increased or decreased;
3) The Risk Class is changed; or
4) Additional Benefits are increased, decreased, added to this
contract or terminated.
The new Death Benefit Guarantee Premium and Termination Date will be
shown on the supplemental contract schedule that we will mail to you.
5.4c Termination of Death Benefit Guarantees. A Death Benefit
Guarantee may terminate before its scheduled Termination Date (see page
3) if the requirements for that Death Benefit Guarantee are not met.
The Enhanced Death Benefit Guarantee terminates on the Contract Date if
the initial premium paid is less than the Enhanced Death Benefit
Guarantee Premium. Otherwise, on any Monthly Anniversary on which the
requirements for a Death Benefit Guarantee are not met, we will mail to
you at the address last known to us a notice of the premium needed to
meet the requirements for that guarantee. You will have a grace period
of 61 days after the date we mail the notice during which the Death
Benefit Guarantee will remain in force. If the required premium is not
received at our Service Center within the grace period, that Death
Benefit Guarantee will terminate and cannot be reinstated.
If the Death Benefit Guarantees have terminated, the contract will
remain in force subject to Section 4.7.
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6. CHANGES IN FACE AMOUNT
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6.1 INCREASE IN FACE AMOUNT. You may increase the Face Amount any time
before the Insured's 80th birthday. The increase is subject to the
following:
1) You must make written application to us at our Service Center.
2) You must give us evidence of insurability which meets our
standards.
3) The increase must be at least $25,000.
4) The effective date of the increase will be the date shown on the
supplemental contract schedule that we will mail to you.
5) The Cost of Insurance for the increase will be included in the
Monthly Deduction beginning on the effective date of the increase.
6) The Cash Surrender Value must be sufficient to cover the Monthly
Deduction on the effective date of the increase.
7) A new schedule of Decrease Charges will apply to the increase in
Face Amount.
8) A new Death Benefit Guarantee Premium will be determined for each
Death Benefit Guarantee in effect on the effective date of the
increase.
Section 2.4 INCONTESTABILITY will apply to the increase from its
effective date with regard to statements made in the application for
the increase in Face Amount. Section 2.6 EXCLUSION: SUICIDE will apply
to the increase from its effective date.
6.2 DECREASE IN FACE AMOUNT. You may decrease the Face Amount once in
each Contract Year before the Insured's Attained Age 100. The decrease
is subject to the following:
1) You must give Written Notice.
2) The decrease and any Decrease Charge (see Section 6.3) will be
applied, in successive order, against:
a) The most recent increase in Face Amount;
b) The next most recent increase(s); then
c) The Initial Face Amount.
3) The decrease may not be made if, on the date the decrease would be
effective, the Accumulated Value less Debt is less than the Decrease
Charge for the decrease.
4) The Face Amount after the decrease must not be less than the
Minimum Face Amount shown on page 4.
5) If the decrease would cause total premium payments already made to
exceed the Cumulative Premium Limit of the Internal Revenue Code,
the decrease may be made only if there are sufficient premiums,
including earnings on those premiums, remaining in the contract and
the Cash Surrender Value exceeds the refund required under the Code.
If the decrease is made, the required refund will be taken as a
Partial Surrender with no Partial Surrender Charge applied.
6) A new Death Benefit Guarantee Premium will be determined for any
Death Benefit Guarantee in effect on the effective date of the
decrease.
7) The effective date of the decrease will be the Monthly Anniversary
on or next after the date we receive Written Notice. That date will
be shown on the supplemental contract schedule that we will mail to
you.
6.3 DECREASE CHARGE. The Decrease Charge is applied on:
1) The effective date of each decrease in Face Amount; and
2) Termination of this contract other than by death.
If the Initial Face Amount is decreased, the Decrease Charge is the
product of:
1) The amount of the decrease in Face Amount divided by $1,000; and
2) The Decrease Charge per $1,000 shown on page 4.
If an increase in Face Amount is decreased, the Decrease Charge is the
product of:
1) The amount of the increase being decreased divided by $1,000; and
2) The Decrease Charge per $1,000 for the increase in Face Amount.
For any increase in Face Amount, Decrease Charges per $1,000 will be
shown on a supplemental contract schedule that we will mail to you.
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7. ACCUMULATED VALUE AND TRANSFERS
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7.1 ACCUMULATED VALUE. On the Contract Date, the Accumulated Value is
equal to the Net Premium(s) received plus any interest earned on
premiums paid for this contract that are held in the General Account
less the Monthly Deduction(s) made on that date. On any later date,
the Accumulated Value of this contract is the sum of the accumulated
values for this contract in the subaccounts of the Variable Account, in
the Fixed Account and in the Loan Account.
The accumulated value in any subaccount on a Valuation Day is equal to:
1) The number of accumulation units for this contract in that
subaccount (see Section 11.3); multiplied by
2) The accumulation unit value for that subaccount (see Section 11.2).
The accumulated value in the Fixed Account (see Section 12.1) on a
Valuation Day is the sum of:
1) Amounts allocated or transferred to the Fixed Account; and
2) Interest credited to the Fixed Account;
Less the sum of:
3) The portion of any Monthly Deductions made from the Fixed Account;
4) The amount of any Partial Surrenders made from the Fixed Account;
5) Accumulated value transferred from the Fixed Account to a
subaccount or to the Loan Account; and
6) The portion of any transfer charges deducted from the Fixed
Account.
The accumulated value in the Loan Account (see Section 10.4) on any day
is the sum of:
1) Accumulated value transferred from a subaccount or the Fixed
Account to the Loan Account as a result of new loans or interest
accrued on existing loans; and
2) Interest credited to the Loan Account;
Less:
3) Accumulated value transferred from the Loan Account to a subaccount
or to the Fixed Account as a result of repayment of Debt.
The Accumulated Value for any day that is not a Valuation Day will be
determined on the next Valuation Day.
7.2 TRANSFER OF ACCUMULATED VALUE. You may transfer some or all of the
accumulated values among the subaccounts of the Variable Account and
the Fixed Account. You do this by giving Written Notice. The transfer
of accumulated values is subject to the following:
1) If the accumulated value in the subaccount or Fixed Account from
which the transfer is being made is less than $50, the entire amount
must be transferred. Otherwise, the amount transferred from any
subaccount or the Fixed Account cannot be less than $50.
2) You may make only one transfer from the Fixed Account in a Contract
Year. If the accumulated value in the Fixed Account immediately
before the transfer is at least $2,000, the amount transferred may
not exceed 25% of the accumulated value in the Fixed Account.
Otherwise, the amount transferred may not exceed $500.
3) The transfer will occur at the end of the Valuation Period during
which we receive Written Notice.
4) You may make twelve transfers in any Contract Year without charge.
For each transfer in excess of twelve in a Contract Year, excluding
any automatic transfers according to Sections 7.3 and 7.4, a
transfer charge of not more than $25 will be deducted from the
subaccounts and from the Fixed Account according to the ratio of the
amount transferred from each to the total amount transferred. All
amounts transferred among the subaccounts and the Fixed Account
during a Valuation Period are considered to be one transfer.
We may delay making transfers subject to the same conditions as in
Section 2.10 DELAY OF PAYMENT.
7.3 AUTOMATIC TRANSFERS - DOLLAR COST AVERAGING (DCA). You may elect
to have automatic transfers made from the DCA Fixed Account or from the
Money Market Subaccount to one or more subaccounts.
7.3a Transfers from DCA Fixed Account. In the application for this
contract, you had the option to dedicate a premium of at least $1,000
to be allocated to a DCA Fixed Account for automatic monthly transfer
to one or more subaccounts. If you elected this option, the guaranteed
interest rate for the DCA Fixed Account is shown on page 3. Election
of this option is subject to the following:
1) Twelve transfers will be made to the subaccounts. The first
transfer will be made on the day the dedicated premium is received
by us or, if later, the Contract Date. Subsequent transfers will be
made on the same day of the month for the next eleven months;
2) The amount transferred each month will be equal to the accumulated
value in the DCA Fixed Account divided by the number of automatic
transfers remaining; and
3) If you terminate automatic transfers before the twelfth transfer is
made, the accumulated value in the DCA Fixed Account will be
transferred to the Money Market Subaccount or, if you request, to
other subaccounts.
Transfers from DCA Fixed Account may not be elected after the Date of
Issue.
7.3b Transfers from Money Market Subaccount. At any time while this
contract is in force, you may elect to have automatic periodic
transfers made from the Money Market Subaccount to one or more
subaccounts subject to the following:
1) The transfer amount must be at least $50;
2) Transfers will be made periodically as specified in your
application for dollar cost averaging; and
3) Transfers will continue until the date the amount in the Money
Market Subaccount is less than the total amount scheduled to be
transferred on that date, at which time the remaining amount in the
subaccount will be transferred. You may terminate automatic
transfers earlier by giving Written Notice. If you do so, transfers
will terminate on the date we receive Written Notice.
7.4 AUTOMATIC TRANSFERS - ASSET REBALANCING. You may elect to have
amounts automatically transferred among the subaccounts so that
accumulated values in the subaccounts are allocated among the
subaccounts according to the rebalancing percentages that you select.
The sum of the rebalancing percentages must be 100% and each
rebalancing allocation percentage must be a whole number not greater
than 100%. You may elect to have these transfers made annually or
semi-annually as specified in your application for asset rebalancing.
Automatic transfers for rebalancing will be made on a Valuation Day
after all other transfers and allocations to or from the subaccounts
have been made.
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8. SURRENDER
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8.1 CASH SURRENDER VALUE. The Cash Surrender Value on any day is equal
to the Accumulated Value less the sum of:
1) Any Debt;
2) The amount, if any, needed to cover unpaid Monthly Deductions; and
3) The Decrease Charges (see Section 6.3) if any, applied on that day.
The Cash Surrender Value on a Monthly Anniversary is determined without
regard to the Monthly Deduction for that date. Cash Surrender Values
are not less than the minimum values required by law.
8.2 FULL SURRENDER. You may surrender this contract for its Cash
Surrender Value by giving Written Notice while the Insured is living.
The surrender will be effective on the day we receive Written Notice
or, if later, the date you specify.
Insurance coverage ceases on the effective date of the surrender.
8.3 PARTIAL SURRENDER. You may surrender a portion of the Accumulated
Value by giving Written Notice while the Insured is living. A Partial
Surrender:
1) Will reduce the Accumulated Value by the amount of the Partial
Surrender. This is the sum of:
a) The amount you request (which must be at least $200); and
b) Any Partial Surrender Charge (see Section 8.4).
The reduction will be taken from the subaccounts of the Variable
Account and from the Fixed Account according to their Account Ratios
on the effective date of the surrender. With our approval, you may
choose other allocations of the Partial Surrender;
2) Must not reduce the remaining Cash Surrender Value to less than
$300;
3) If the Death Benefit is Option 1, will affect the Face Amount as
follows:
a) If the Death Benefit on the effective date of the Partial
Surrender is equal to the Face Amount, then the surrender
will decrease the Face Amount by the amount of the Partial
Surrender. The decrease in Face Amount and any Decrease
Charge will be applied in the order specified in Section
6.2(2).
b) If the Death Benefit on the effective date of the Partial
Surrender is based on the Table of Factors in Section 5.2,
then the Face Amount will be decreased only if, on that
day, the amount of the surrender exceeds the Death Benefit
minus the Face Amount. In that case, the Face Amount will
be decreased by:
i) The amount of the Partial Surrender;
Less:
ii) The Death Benefit less the Face Amount prior to the
surrender.
Any decrease in Face Amount and any Decrease Charge will be
applied in the order specified in Section 6.2(2). The Face
Amount may not be decreased to less than the Minimum Face Amount
shown on page 4.
Any Decrease Charge will be deducted from the subaccounts of the
Variable Account and from the Fixed Account according to their
Account Ratios on the effective date of the surrender; and
4) Will be effective on the day we receive Written Notice.
A Partial Surrender may cause any Death Benefit Guarantees to
terminate.
8.4 PARTIAL SURRENDER CHARGE. During the first ten Contract Years, a
Partial Surrender Charge of not more than $25 will apply to each
surrender in excess of one in a Contract Year. After the tenth
Contract Year, no Partial Surrender Charge will apply.
8.5 PAID-UP LIFE INSURANCE OPTION. At any time while the Insured is
living and before Attained Age 100, you may surrender this contract and
apply the Cash Surrender Value as a single premium to purchase paid-up
life insurance on the Insured. The purchase is subject to the
following:
1) You must give Written Notice to surrender this contract.
2) Unless you give us evidence of insurability which meets our
standards, the amount of paid-up life insurance may not exceed the
sum of:
a) The Death Benefit on the date of surrender; and
b) The amount applied as a single premium under this option.
This amount may not exceed the Cash Surrender Value;
Less:
c) The Accumulated Value.
3) The date of issue of the new contract is the date this contract is
surrendered. The issue age of the new contract is the age of the
Insured on that date.
4) The amount of insurance purchased will be based on single premium
rates then in effect, as determined by us. However, the rate will
not exceed the net single premium using the Commissioners 1980
Standard Ordinary Mortality Table(s) shown on the contract schedule
pages and an interest rate of 3% per year.
5) If this contract has an exclusion rider, the new contract will also
have such an exclusion rider.
6) Any Cash Surrender Value not applied to purchase paid-up life
insurance will be paid to you.
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9. MONTHLY DEDUCTION
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9.1 MONTHLY DEDUCTION. The Monthly Deduction from the Accumulated
Value is the sum of:
1) The Basic Monthly Charge shown on page 4;
2) The Decrease Charge for any decrease in Face Amount that is
effective on the Monthly Anniversary;
3) The monthly Mortality and Expense Risk Charge based on the
accumulated value in the subaccounts. This charge on an annual
basis is guaranteed not to exceed the Maximum Annual Mortality and
Expense Risk Charge shown on page 4;
4) The monthly cost of any Additional Benefits other than any
disability waiver of monthly deduction benefit;
5) The monthly Cost of Insurance (see Section 9.2); and
6) The monthly cost of any disability waiver of monthly deduction
benefit.
Monthly Deductions are made on the Contract Date for the Date of Issue
and any Monthly Anniversary that occurs on or prior to the Contract
Date. Thereafter, a Monthly Deduction is made for each Monthly
Anniversary prior to the Insured's Attained Age 100. Each Monthly
Deduction is made at the end of the Valuation Period that includes the
Monthly Anniversary, unless a premium is in default (see Section 4.5)
or the deduction is postponed under Section 5.4 DEATH BENEFIT
GUARANTEES.
Deductions from Accumulated Value are made in the order listed above.
The Mortality and Expense Risk Charge is taken from each subaccount of
the Variable Account based on the accumulated value in the subaccount.
The remainder of the Monthly Deduction is taken from the subaccounts
and from the Fixed Account according to their Account Ratios on the
Monthly Anniversary. With our approval, you may choose other
allocations of the Monthly Deduction.
9.2 COST OF INSURANCE. The Cost of Insurance is determined on the
Contract Date and on each Monthly Anniversary. It is equal to the Cost
of Insurance Rate multiplied by the Risk Amount divided by 1,000.
9.2a Cost of Insurance Rate. We will determine the Cost of Insurance
Rate monthly. The rate is based on the Insured's Risk Class, Sex and
Insurance Coverage Amount. For the Initial Face Amount, the Cost of
Insurance Rate is also based on Issue Age and Attained Age. For any
increase in Face Amount, the rate is also based on the Insured's age on
the effective date of the increase and on the numbers of years since
that date.
The Risk Class for the Initial Face Amount is shown on page 3. The
Risk Class for any increase in Face Amount according to Section 6.1
will be determined on the effective date of the increase. If the Death
Benefit is based on the Table of Factors in Section 5.2, the Risk Class
of the resulting increase in Death Benefit will be the Risk Class shown
on page 3 or, if the Face Amount has been increased, the Risk Class for
the most recent increase.
The Cost of Insurance Rate for the Initial Face Amount and for any
increase in Face Amount with the same Risk Class as shown on page 3
will not exceed the rates shown on page 5. If different maximum Cost
of Insurance Rates apply to any increase in Face Amount, those rates
will be shown on a supplemental contract schedule that we will mail to
you.
For any Face Amount with a rated Risk Class, the maximum cost is
increased in one or both of the following ways as specified on page 5:
1) The maximum Cost of Insurance Rate is multiplied by a specified
percentage rating.
2) An extra monthly amount is added to the Cost of Insurance Rate.
We may charge less than the maximum rate. Any change in Cost of
Insurance Rates will depend on the Insurance Coverage Amount and will
apply to all insureds of the same risk class, sex and age.
9.2b Risk Amount. The Risk Amount is equal to:
1) The Death Benefit divided by 1.0024663;
Less:
2) The Accumulated Value (before the Cost of Insurance and the cost of
any disability waiver of monthly deduction benefit is deducted).
If the Death Benefit is Option 1 and the Initial Face Amount has been
increased, the Risk Amount for the Initial Face Amount and for each
increase in Face Amount will be determined by allocating the
Accumulated Value to each portion of the Face Amount according to the
ratio of each portion to the total Face Amount of this contract.
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10. LOANS
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10.1 CONTRACT LOANS. After this contract has been in force for 60 days
from the Date of Issue, you may obtain a loan from us with this
contract as sole security if:
1) You give Written Notice; and
2) The loan does not increase Debt to more than 90% of the amount by
which the Accumulated Value exceeds any Decrease Charge on the date
of the loan.
Accumulated value equal to the amount of the loan will be taken from
the subaccounts of the Variable Account and from the Fixed Account
according to their Account Ratios on the date of the loan and will be
transferred to the Loan Account. With our approval, you may choose
other allocations of the loan amount.
Contract loans may cause any Death Benefit Guarantees to terminate.
10.2 PREFERRED LOANS. Preferred loans are charged a lower interest
rate than other contract loans, and are available beginning on the
tenth Contract Anniversary. On that date, any Debt that does not
exceed 10% of the Cash Surrender Value will automatically be changed to
a preferred loan. On each subsequent Contract Anniversary, we will
automatically change to a preferred loan the portion of the Debt, if
any, that:
1) Is not a preferred loan;
2) Does not exceed 10% of the Cash Surrender Value on that
anniversary; and
3) Does not increase the sum of preferred loans on this contract to
more than 60% of the amount by which the Accumulated Value exceeds
any Decrease Charge on that date.
If no Debt is changed to a preferred loan on a Contract Anniversary,
then some or all of the first contract loan that you make before the
next Contract Anniversary may be eligible to be a preferred loan. The
amount of a new loan that will be a preferred loan is equal to that
portion of the loan, if any, that:
1) Does not exceed 10% of the Cash Surrender Value on the date of the
loan; and
2) Does not increase the sum of preferred loans on this contract to
more than 60% of the amount by which the Accumulated Value exceeds
any Decrease Charge on the date of the loan.
10.3 LOAN INTEREST. The interest rate charged on preferred loans will
not exceed 3% per year. The interest rate charged on all other loans
will not exceed 5% per year. Accrued interest will be added to the
loan on each Contract Anniversary and on any other day that you make a
loan repayment or obtain a new loan.
10.4 LOAN ACCOUNT. Amounts transferred to the Loan Account are
invested with our General Account assets. Amounts in the Loan Account
will be credited with interest daily while this contract is in force at
an effective rate of 3% per year. Accrued interest on loans will be
calculated on each Monthly Anniversary and on any other day that you
make a loan repayment or a new loan. On each day that accrued interest
is calculated (an interest calculation date), the amount by which that
interest exceeds the amount of interest credited to the Loan Account
since the previous interest calculation date will be transferred to the
Loan Account. This transfer will be taken from the subaccounts of the
Variable Account and from the Fixed Account according to their Account
Ratios on the date of transfer.
10.5 REPAYMENT OF DEBT. All or part of the Debt may be repaid at any
time while the Insured is living. Each repayment must be at least $25.
If there is a loan on this contract, you must notify us if a payment to
us is a repayment of Debt. Otherwise, it will be considered a premium
payment. No charges are deducted from Debt repayments. Repayments
will be transferred from the Loan Account to the subaccounts of the
Variable Account and to the Fixed Account according to the premium
allocation percentages in effect at the time of repayment. With our
approval, you may choose other allocations of loan repayments.
Repayments will be applied against preferred loans only if all other
Debt has been repaid. Repayments of Debt do not change the Accumulated
Value. Upon death or full surrender, any Debt will be deducted from
the proceeds.
10.6 TERMINATION FROM EXCESS LOAN. If the Death Benefit Guarantee is
not in force, this contract will terminate when:
1) The Debt exceeds the Accumulated Value less any Decrease Charges
applied to the Face Amount; and
2) Sixty-one days have elapsed since we mailed a notice to you at the
address last known to us.
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11. VARIABLE ACCOUNT AND UNIT VALUES
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11.1 VARIABLE ACCOUNT. Premiums and Accumulated Value may be allocated
or transferred to subaccounts of the Variable Account. The Variable
Account is a separate investment account of the Society that is
registered with the SEC as a unit investment trust. The Variable
Account has subaccounts that invest in the corresponding underlying
portfolios of one or more diversified open-end management investment
companies, each of which is registered with the SEC. Each subaccount
purchases shares in a specific portfolio at net asset value. If a
portfolio is no longer available or we no longer consider it suitable
for investment, we may substitute another portfolio or invest in a
different investment company. We may also add, delete, combine or
modify subaccounts, combine the Variable Account with another separate
account or invest in a different separate account.
Changes in the investment policy of the Variable Account are subject to
any required approvals by the SEC and the insurance supervisory
officials in the state of Wisconsin. If required, the approval process
is on file with the insurance supervisory officials in the state where
this contract was delivered.
We own the assets of the Variable Account. Income and realized and
unrealized gains and losses from each subaccount of the Variable
Account are credited to or charged against that subaccount. Assets of
the Variable Account at any time will be at least equal to the reserves
and other liabilities of the Variable Account. These assets may not be
charged with liabilities from any other business we conduct. We may
transfer assets in excess of Variable Account reserves and liabilities
to our General Account.
11.2 ACCUMULATION UNIT VALUE. The initial accumulation unit value for
each subaccount was set when the subaccount was established. At the
end of any subsequent Valuation Period, the accumulation unit value for
a subaccount is equal to (1) divided by (2) where:
1) Is the sum of:
a) The net asset value of the corresponding portfolio of the
subaccount at the end of the current Valuation Period; plus
b) The amount of any dividend or capital gain distribution made by
the portfolio if the "ex-dividend" date occurs during the
Valuation Period; plus or minus
c) A charge or credit for any taxes reserved for which we determine
to be a result of the investment operation of the portfolio.
2) Is the number of accumulation units of that subaccount for all
contracts.
Accumulation unit values are determined at the end of each Valuation
Period before the transfer or allocation of any amounts to or from the
subaccounts. The unit values may increase or decrease on each
Valuation Day.
11.3 NUMBER OF ACCUMULATION UNITS. On the Contract Date, the number of
accumulation units for this contract in any subaccount is equal to:
1) The accumulated value for this contract in that subaccount;
Divided by:
2) The accumulation unit value for that subaccount.
The number of accumulation units for this contract in any subaccount
may increase or decrease at the end of each Valuation Period. The
number of accumulation units increases when, during the period:
1) Net Premiums are allocated to the subaccount;
2) Accumulated value is transferred to the subaccount from other
subaccounts or from the Fixed Account; or
3) Repayments of Debt are transferred to the subaccount from the Loan
Account.
The number of accumulation units decreases when, during the Valuation
Period:
1) Monthly Deductions are taken from the subaccount;
2) Accumulated value is transferred from the subaccount to other
subaccounts or to the Fixed Account;
3) Partial Surrenders are applied against the subaccount;
4) Transfer charges are applied against the subaccount; or
5) Contract loans or accrued interest on loans are transferred from
the subaccount to the Loan Account.
The increase or decrease in the number of accumulation units for this
contract in any subaccount is equal to:
1) The dollar amount allocated or transferred to that subaccount or
the dollar amount transferred from, taken from or applied against
that subaccount;
Divided by:
2) The accumulation unit value for that subaccount at the end of the
Valuation Period during which the amounts are allocated or
transferred.
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12. FIXED ACCOUNT
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12.1 FIXED ACCOUNT. Amounts held in the Fixed Account, including the
DCA Fixed Account, are invested with our General Account assets.
Interest will be credited on net premiums allocated to the Fixed
Account and on accumulated value transferred to the Fixed Account from
the date of allocation or transfer. Interest is compounded daily and
the effective annual interest rate will never be less than 3%.
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13. BENEFICIARY
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13.1 BENEFICIARY. One or more beneficiaries are named in the
Application. You may change the beneficiary by giving Written Notice
while the Insured is living. The Written Notice must be received and
approved by us for the change to be effective. The effective date of
the change will be the date you sign the notice or, if the notice is
not dated, the date it is received at our Service Center. We will not
be liable for any payment made or action taken by us before we receive
Written Notice.
13.2 SUCCESSION OF BENEFICIARIES. You may designate one or more
beneficiaries to receive the Death Proceeds. You will classify each
beneficiary as primary or contingent. Upon the Insured's death, we
will pay the Death Proceeds to the beneficiaries of the Insured as
follows:
1) Proceeds will be paid to the primary beneficiaries who are then
alive.
2) If no primary beneficiaries are living, proceeds will be paid to
the surviving contingent beneficiaries.
3) If no beneficiary survives, proceeds will be paid to the owner or,
if the Insured is the owner, to the Insured's estate.
Other designations or successions of beneficiaries may be arranged with
us. Any beneficiary who dies simultaneously with the Insured or within
15 days after the Insured dies and before Death Proceeds have been paid
will be deemed to have died before the Insured.
13.3 SHARE OF PROCEEDS. Unless you specify otherwise, each beneficiary
in the same class of beneficiaries will have an equal share in any
Death Proceeds payable.
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14. SETTLEMENT PROVISIONS
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14.1 PAYMENT OF PROCEEDS. Proceeds from death or surrender are payable
in a lump sum unless otherwise provided. On Death Proceeds, we will
pay interest from the date of death until the date of settlement.
Interest will be paid at the rate payable in Option 1 - Interest Income
(see Section 14.2) or, if greater, the rate required by law. Instead
of a lump sum, we may pay proceeds of $2,000 or more under any
settlement option in Section 14.2 by means of a settlement agreement
which we will issue.
14.2 OPTIONAL PLANS OF SETTLEMENT. Proceeds payable under a settlement
option may be paid under one or more of the following options.
Option 1 - Interest Income. The proceeds may be left on deposit.
Interest earned may be paid in cash at regular intervals or left to
accumulate at interest. We will pay interest at a rate not less than
3% per year. All or part of these proceeds may be withdrawn upon
request.
Option 2 - Income of a Fixed Amount. We will pay an income of a fixed
amount at agreed upon intervals. Interest will be credited on the
unpaid balance at a rate not less than 3% per year. Income will be
paid until the proceeds and interest are paid in full. Unless the
income election was irrevocable, a payee may later elect to receive a
lump sum in lieu of continuing payments. The lump sum payable on any
day is the present value of the remaining payments determined using the
interest rate used to determine the annuity payments.
Option 3 - Income For a Fixed Period. We will pay an income for a
fixed period, not to exceed 360 months or, if greater, the life
expectancy of the payee. Guaranteed payments for fixed periods are
shown in the table for this option on page 25. Interest will be
credited on the unpaid balance at a rate not less than 3% per year and
the income will not be less than the amount shown. Unless the income
election was irrevocable, a payee may later elect to receive a lump sum
in lieu of continuing payments. The lump sum payable on any day is the
present value of the remaining payments determined using the interest
rate used to determine the annuity payments.
Option 4 - Life Income with Guaranteed Period. We will pay an income
for the lifetime of the payee. A guaranteed period of up to 360 months
may be elected. If the payee dies during the guaranteed period,
payments will be continued to the end of the period and will be paid to
the payee's beneficiary. After the first payment is made, this option
may not be changed. Guaranteed payments for selected ages and
guaranteed periods of 10 and 20 years are shown on page 25. The
incomes are based on the Annuity 2000 Table and an effective annual
interest rate of 3% using the sex and adjusted age of the payee on the
date the first payment is due.
Option 5 - Joint and Survivor Life Income with Guaranteed Period. We
will pay an income as long as at least one of the two payees is alive.
A guaranteed period of up to 360 months may be elected. If one payee
dies during the guaranteed period, payments will continue for the
lifetime of the surviving payee. Before the first payment is made
under this option, a reduction factor may be elected which will reduce
any payments made after the guaranteed period by the elected reduction
factor if only one payee is then living. Payments made during the
guaranteed period will be larger if a reduction factor is elected. If
both payees die during the guaranteed period, payments will be
continued to the end of that period and will be paid to the payee's
beneficiary. After the first payment is made, this option may not be
changed.
Guaranteed payments for male and female payees at selected ages and
guaranteed periods of 10 and 20 years are shown on page 26. The
incomes are based on the Annuity 2000 Table and an effective annual
interest rate of 3% using the sex and adjusted age of each payee on the
date the first payment is due.
Adjusted Age. As used in Options 4 and 5, adjusted age is the age
nearest birthday decreased by the adjustment shown below:
Year of First Age
Payment Adjustment
2000-2009 0
2010-2019 1
2020-2029 2
2030-2039 3
2040-2049 4
2050-2059* 5
* For each succeeding decade, the age
adjustment continues to increase by 1.
Option 6 - Other Options. The proceeds may be paid under any other
settlement option agreeable to us.
14.3 ELECTION OF AN OPTION. You may elect an option by Written Notice
during the Insured's lifetime. The option must be elected before
proceeds become payable. Assignees and third-party owners may elect an
option only with our consent. Each payee under Options 4 and 5 must be
a natural person.
If Death Proceeds are payable, the beneficiary may elect a settlement
option provided that:
1) The manner of settlement has not been restricted before the
Insured's death; and
2) Death Proceeds have not been paid.
Election of an option is subject to these conditions:
1) Payments must not be less than $50; and
2) Payments are made only at annual, semiannual, quarterly or monthly
intervals.
If the beneficiary does not receive Death Proceeds or elect a
settlement option by the date one year after we receive proof of the
Insured's death, Death Proceeds will then be calculated and applied
under Option 1 - Interest Income.
OPTION 3
Guaranteed Monthly Payments for Each $1,000 of Proceeds
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Years Monthly Years Monthly Years Monthly Years Monthly Years Monthly
Payable Payment Payable Payment Payable Payment Payable Payment Payable Payment
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1 84.46 7 13.16 13 7.71 19 5.72 25 4.70
2 42.85 8 11.68 14 7.25 20 5.51 26 4.58
3 28.99 9 10.53 15 6.86 21 5.31 27 4.47
4 22.06 10 9.61 16 6.52 22 5.14 28 4.37
5 17.90 11 8.86 17 6.22 23 4.98 29 4.27
6 15.13 12 8.23 18 5.96 24 4.84 30 4.18
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Annual, Semiannual of Quarterly payments are 11.839, 5.963 and 2.992 respectively, times the Monthly payment
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OPTION 4
Male Payee - Monthly Life Income
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Guaranteed Monthly Life Income for Each $1,000 of Proceeds
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Adjusted Payments Payments Adjusted Payments Payments Adjusted Payments Payments
Age of
Age of Payee Guaranteed Guaranteed Payee Guaranteed Guaranteed Age of Payee Guaranteed Guaranteed
on Date of for for on Date of for for on Date of for for
First Payment 10 years 20 years First 10 years 20 years First 10 years 20 years
Payment Payment
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40 3.53 3.50 65 5.48 4.88 75 7.08 5.36
66 5.62 4.94 76 7.25 5.39
45 3.76 3.70 67 5.77 5.00 77 7.43 5.41
50 4.05 3.95 68 5.92 5.06 78 7.61 5.43
55 4.41 4.24 69 6.07 5.11 79 7.78 5.45
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60 4.88 4.56 70 6.23 5.16
61 4.99 4.62 71 6.39 5.21 80 7.95 5.46
62 5.10 4.69 72 6.56 5.25 85 8.69 5.50
63 5.23 4.75 73 6.73 5.29 90 9.20 5.51
64 5.35 4.82 74 6.90 5.33 95 9.49 5.51
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Female Payee - Monthly Life Income
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Option 4 - Guaranteed Monthly Life Income for Each $1,000 of Proceeds
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Adjusted Payments Payments Adjusted Payments Payments Adjusted Payments Payments
Age of
Age of Payee Guaranteed Guaranteed Payee Guaranteed Guaranteed Age of Payee Guaranteed Guaranteed
on Date of for for on Date of for for on Date of for for
First Payment 10 years 20 years First 10 years 20 years First 10 years 20 years
Payment Payment
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65 5.07 4.71 75 6.67 5.31
40 3.37 3.35 66 5.20 4.78 76 6.86 5.35
45 3.57 3.54 67 5.33 4.85 77 7.06 5.38
50 3.81 3.76 68 5.47 4.92 78 7.26 5.40
55 4.13 4.03 69 5.62 4.99 79 7.46 5.43
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60 4.54 4.35 70 5.78 5.05 80 7.66 5.45
61 4.63 4.42 71 5.94 5.11
62 4.73 4.49 72 6.11 5.17 85 8.55 5.50
63 4.84 4.57 73 6.29 5.22 90 9.15 5.51
64 4.95 4.64 74 6.48 5.27 95 9.47 5.51
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OPTION 5
Male and Female Payees - Monthly Life Income
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Option 5 - Guaranteed Monthly Life Income for Each $1,000 of Proceeds
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Adjusted Age Payment Guaranteed for 10 Years Payment Guaranteed for 20 Years
of Male
Payee on
Date of
First Payment
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Adjusted Age of Female Payee on Date of First Adjusted Age of Female Payee on Date of First
Payment Payment
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60 65 70 75 60 65 70 75
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60 4.10 4.31 4.51 4.66 4.07 4.26 4.40 4.50
65 4.24 4.54 4.83 5.08 4.19 4.44 4.65 4.79
70 4.36 4.73 5.13 5.52 4.27 4.57 4.84 5.03
75 4.43 4.87 5.38 5.92 4.32 4.66 4.96 5.19
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Rates not shown will be calculated on the same basis as the above rates and will be provide upon request.
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15. DIVIDENDS
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15.1 DIVIDENDS. Each year we will determine our divisible surplus.
This contract's share, if any, will be based on amounts in the Fixed
Account and credited as a dividend on the Contract Anniversary. Since
we do not expect this contract to contribute to divisible surplus, it
is not expected that any dividends will be credited.
15.2 DIVIDEND OPTIONS. You may choose to apply dividends under any of
the options listed below. Dividends will be applied under the Payment
of Premium option unless a different option has been chosen in writing.
Cash. Dividends are paid in cash.
Payment of Premium. Dividends are applied as payment of a Net Premium
and allocated to the Fixed Account on the Contract Anniversary.
THRIVENT FINANCIAL FOR LUTHERANS
A Fraternal Benefit Society
Appleton, Wisconsin 54919-0001 Flexible Premium
Variable Life Insurance
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Flexible Premium Variable Life Insurance.
Life insurance payable at death.
Adjustable death benefit.
Contract benefits reflect investment experience of Variable Account.
Annual dividends payable if earned.
Settlement options to provide income.