CONTRACT NUMBER
ANNUITANT
INDIVIDUAL VARIABLE ANNUITY
NON-TAX QUALIFIED
NON-PARTICIPATING
This is a legal ANNUITY CONTRACT between the Contract Owner and Security Equity.
PLEASE READ THIS CONTRACT CAREFULLY.
RIGHT TO EXAMINE
You may return this Contract within 10 days after receiving it. It may be
delivered or mailed to us or the agent through whom it was purchased. The
Contract will then be deemed void from the start. We will return the greater of:
(1) the Accumulated Value in the Separate Accounts plus any premium taxes that
had been deducted or, (2) the purchase payment made.
In consideration of the Contract Owner's application and the purchase payments
to be made as provided herein, we agree to pay benefits, to the extent required
by this Contract, to those individuals entitled to such benefits.
ALL INSTALLMENTS AND VALUES PROVIDED BY THIS CONTRACT, WHEN BASED ON THE
INVESTMENT EXPERIENCE OF ONE OR MORE DIVISIONS OF THE SEPARATE ACCOUNTS, ARE
VARIABLE AND ARE NOT GUARANTEED AS TO FIXED DOLLAR AMOUNTS.
Signed for the company at its Home Office, Armonk, NY 1O504.
V. P., GENERAL COUNSEL
AND SECRETARY PRESIDENT
600053
ALPHABETIC GUIDE TO THE CONTRACT
Page Page
4.03 Addition, Deletion, or Substitution 3.01 Definitions
of Investments 6.01 Persons with an Interest
4.01 Accumulation Provisions in the Contract
7.01 Annuity Option Table 3.02 Purchase Payments
5.01 Annuity Provisions 6.02 The Contract
4.05 Cash Withdrawals 4.03 Transfers
4.04 Charges and Deductions 4.02 Valuation Provisions
4.01 Contract Continuation Separate Account
5.03 Death Benefit
Supplemental Agreements, Modifications and Amendments, if any, and a copy of the
application is found following the final section.
CONTRACT SPECIFICATIONS
CONTRACT NUMBER:
CONTRACT OWNER:
ANNUITANT:
ISSUE AGE:
SEX:
DATE OF ISSUE:
AMOUNT OF INITIAL PURCHASE PAYMENT:
Please see the attached application for the allocation of your initial purchase
payment.
BENEFICIARY DESIGNATION:
FORM
NUMBERS
1.01
1. DEFINITIONS IN THIS CONTRACT
WE, US AND OUR -- Security Equity Life Insurance Company.
YOU AND YOUR -- The owner of this Contract. The owner is as shown in the
application unless later changed as provided in this Contract. The owner may be
someone other than the Annuitant.
ACCUMULATED VALUE -- The value under your Contract prior to the Annuity Date of
all net purchase payments;
Value all gains and losses, less any charges or amounts withdrawn.
ACCUMULATION UNIT -- An accounting unit of measure that we use to determine the
value in a Division prior to the Annuity Date.
AGE -- The Annuitant's Age at his or her last birthday.
ANNUITANT -- The individual upon whose life Annuity Payments are based and who
may receive payments from the Contract under an annuity option.
ANNUITY DATE -- The date on which Annuity Payments begin.
ANNUITY PAYMENT -- One of a series of payments made under an annuity option.
ANNUITY SERVICE OFFICE -- The service office of Security Equity Life Insurance
Company, P.O. Box 203, Armonk, New York 10504.
ANNUITY UNIT -- An accounting unit of measure that we use to calculate variable
Annuity Payments.
BENEFICIARY -- The person named in the application or by later designation who
may receive the Proceeds in the event of the Annuitant's or contract owner's
death.
BUSINESS DAY -- A day on which both we and the New York Stock Exchange are open
for business.
CONTRACT -- This Contract, its riders, endorsements and amendments if any, and
the application, a copy of which is attached to and made a part of the Contract,
are the entire Contract.
CONTRACT ANNIVERSARY -- The same day and month as the Date of Issue for each
succeeding year that this Contract remains in force.
CONTRACT YEAR -- A continuous 12 month period beginning on the Date of Issue and
each Contract Anniversary thereafter.
DATE OF ISSUE -- The effective date of the coverage under this Contract. It is
also the date from which Contract Anniversaries are measured.
DIVISION -- A Division of Separate Accounts Twenty-Six or Twenty-Seven. Each
Division invests solely in its corresponding G.T. Global Variable Investment
Fund and takes the name of such G.T. Global Variable Investment Fund.
G.T. GLOBAL VARIABLE INVESTMENT FUNDS -- Mutual fund portfolios that are the
underlying investment vehicles for the Divisions of the Separate Accounts.
3.01
PROCEEDS -- The amount we are obligated to pay under the terms of this Contract.
RIGHT TO EXAMINE PERIOD -- The period during which the Contract can be cancelled
and treated as void from theDate of Issue.
SEPARATE ACCOUNTS -- Separate Accounts Twenty-Six and Twenty-Seven are each
segregated investmentaccounts created by us. The Separate Accounts are
registered with the Securities and Exchange Commission under the Investment
Company Act of 1040 as unit investment trusts and meet the definition of
"separate account" under the Federal securities laws.
VALUATION PERIOD -- A period beginning at the close of business each Business
Day and ending at the close of business of the following Business Day.
WRITTEN REQUEST -- A notice or request in writing, signed by you and received by
our Annuity Service Office. The request must be in a format and have content
acceptable to us.
2. PURCHASE PAYMENTS
PURCHASE PAYMENTS
Each purchase payment you make is payable at our Annuity Service Office. The
amount and frequency of purchase payments may vary. Each purchase payment after
the first must be at least $100.
In any Contract Year after the first, we reserve the right not to accept
purchase payments in excess of double the amount paid in the initial Contract
Year. In the first Contract Year, purchase payments may be limited to the
greater of double the total initial purchase payment or $25,000. In the event we
exercise these rights, we will notify you in writing, at your last known address
to us, 60 days in advance.
Prior approval is required before we will accept a purchase payment from you
that would cause the Accumulated Value of your Contract to exceed $1,000,000. If
the Accumulated Value of your Contract exceeds $1,000,000, no additional
purchase payments will be accepted without prior approval from us.
3.02
3. ACCUMULATION PROVISIONS
NET PURCHASE PAYMENT
We may deduct from any purchase payment applicable premium taxes or we may defer
deduction of the taxes until the Annuity Date, if permitted by state law. The
remaining balance is the net purchase payment.
ALLOCATION OF NET PURCHASE PAYMENTS
The net purchase payments will be allocated among the Divisions of the Separate
Accounts in the proportion shown in the application or as you may choose at a
later date. You may date. You may elect an allocation to a Division in whole
percents between zero percent and 100 percent totalling 100%. The minimum
initial allocation to any Division must be at least $500.
Such allocations may be changed at any time by Written Request submitted to us
at our Annuity Service Office. Any allocation change will take effect with the
first purchase payment received with or after our receipt of a Written Request
for change and will continue in effect until subsequently changed. If any
portion of purchase payments is received for allocation to a Division no longer
offered by us, we will contact you to secure new allocations. If we are unable
to contact you within 5 days of our receipt of your purchase payment we will
return that portion to you.
ACCUMULATION UNITS IN THE DIVISIONS
We will establish an account in your name for each Division to which you
allocate net purchase payments or transfer amounts. Net purchase payments and
transfer amounts are allocated to Divisions and credited to your accounts in the
form of Accumulation Units. The number of Accumulation Units that we will credit
to each account is determined by dividing the portion of the net purchase
payment or transfer amount for that account by the Accumulation Unit value for
that Division at the end of the Valuation Period during which the net purchase
payment or transfer request is received by us at our Annuity Service Office. The
number of Accumulation Units credited in connection with the first net purchase
payment is determined as of the end of the Valuation Period during which the
Date of Issue falls. The number of Accumulation Units determined will not be
affected by any subsequent changes in the values of the Accumulation Units. The
Accumulation Unit value of the Divisions may increase or decrease from day to
day based on investment results.
The number of Accumulation Units in any account will be increased at the end of
a Valuation Period by any net purchase payments allocated to the corresponding
Division during that Valuation Period and by any Accumulated Value transferred
to that Division from another Division during that Valuation Period. The number
of Accumulation Units in any account will be decreased at the end of a Valuation
Period by any transfers of Accumulated Value out of the corresponding Division,
by any partial withdrawals or surrenders from that Division, and by any
administrative or surrender charges deducted from that Division during that
Valuation Period.
4. CONTRACT CONTINUATION
AUTOMATIC NONFORFEITURE OPTION
This Contract does not require continuing purchase payments and will continue as
a paid-up Contract until the earlier of the Annuity Date, surrender of the
Contract, your death, or death of the Annuitant as long as your Accumulated
Value is sufficient to pay fees and charges. Purchase payments may be resumed at
any time prior to the Annuity Date, surrender, your death, or death of the
Annuitant.
4.01
5. VALUATION PROVISIONS - SEPARATE ACCOUNTS
SEPARATE ACCOUNTS
Separate Accounts Twenty-Six and Twenty-Seven are segregated investment accounts
created by us under New York Law to receive and hold purchase payments for this
Contract. We own the assets of the Separate Accounts and such assets are held,
for the Separate Accounts, separately from the assets held in the General
Account, other segregated asset accounts of Security Equity Life Insurance
Company ("Security Equity"), and from each other.
The income, if any, gains and losses, realized or unrealized, on each Separate
Account and each Division therein will be credited to or charged against the
amounts allocated to such Separate Account and Division without regard to other
income, gains or losses to Security Equity. That portion of the assets of each
Separate Account equal to the reserves and other contract liabilities with
respect to such Separate Account will not be chargeable with liabilities arising
out of any other business that Security Equity may conduct. We have the right to
transfer to our General Account assets in excess of the amount equal to reserves
and other liabilities of a Separate Account.
NET INVESTMENT FACTOR
Each Business Day we will calculate each Division's net investment
factor. A Division's net investment factor measures its investment performance
during a Valuation period. The net investment factor for each Division for any
Valuation Period is determined by dividing (a) by (b) and subtracting (c) from
the result:
Where (a) is:
(1) the net asset value per share of a G.T. Global Variable Investment
Fund share held in the Division determined at the end of the current
Valuation Period, plus
(2) the per share amount of any dividend or capital gain distribution made
by a G.T. Global Variable Investment Fund on shares held in the
Division if the "ex-dividend" date occurs during the current Valuation
Period.
Where (b) is:
the net asset value per share of a G.T. Global Variable Investment Fund
share held in the Division determined as of the end of the immediately
preceding Valuation Period.
Where (c) is:
a factor representing the charges deducted from the Division on a dally
basis for administrative expenses and mortality and expense risks. Such
factor is equal on an annual basis to 1.40% (0.15% for administrative
expenses and 1.25% for mortality and expense risks).
The net investment factor may be greater or less than or equal to one.
Therefore, the value of an Accumulation or Annuity Unit may increase, decrease,
or remain the same.
ACCUMULATION UNIT VALUE
The initial value of an Accumulation Unit in each Division in the Separate
Accounts was arbitrarily set at $12 for the first Valuation Period. This value
may increase or decrease from day to day based on investment results.
For each Division, the value of an Accumulation Unit is determined at the end of
every Valuation Period. The value is determined by multiplying the Division's
Accumulation Unit value for the end of the immediately preceding Valuation
Period by the Division's net investment factor for the most current Valuation
Period.
ANNUITY UNIT VALUE
The initial value of an Annuity Unit in each Division in the Separate Accounts
was arbitrarily arbitrarily set at $12 for the first Valuation Period. This
value may increase or decrease from day to day based on investment results.
For each Division, the value of an Annuity Unit is determined at the end of
every Valuation Period. The value is determined by multiplying such
Division's Annuity Unit value for the end of the preceding Valuation Period
by the product of (a) .99989256 once for each calendar day between the end of
the sixth preceding Valuation Period and the end of the fifth preceding
Valuation Period and (b) the Division's net investment factor for the fifth
Valuation Period preceding such Valuation Period.
4.02
6. TRANSFERS
TRANSFERS
Prior to the Annuity Date, you may transfer amounts among the Divisions of the
Separate Accounts. These transfers will be subject to the following conditions:
1. We must receive a request for transfer by Written Request;
2. Transfers from a Division may be made at any time and must be at least $500
(or the entire amount in a Division, if less than $500);
3. Any Accumulated Value remaining in a Division must be at least $500 (or the
request may be treated as a request to transfer the entire amount in that
Division);
4. There is no limit to the number of transfers that you may request. However,
we reserve the right to assess a charge of up to $25 for each transfer in
excess of twelve (12) transfers made in any Contract Year, excluding
transfers made under the dollar cost averaging program.
Transfers involving the Divisions will be subject to additional terms and
conditions that may be imposed by each Division's corresponding G .T. Global
Variable Investment Fund. (See Postponement of Payments provision, Section 13.)
You must instruct us as to what amounts should be transferred from each
Division.
A transfer will be effective on the date the Written Request for transfer is
received at our Annuity Service Office.
DOLLAR COST AVERAGING
We offer a dollar cost averaging program which enables you to pre-authorize
periodic transfers. These periodic transfers will be subject to the following
conditions:
1. We must receive a request for dollar cost averaging by Written Request;
2. At least $2,000 must be designated for transfer from a particular Division,
with a minimum of $100 per month being transferred from that Division;
3. Transfers will occur on the Business Day coincident with or subsequent to
the 15th of each month following our receipt of your Written Request.
Transfers will continue until the dollar amount requested has been transferred
or the Accumulated Value in the Division is exhausted, whichever is sooner. Any
dollar cost averaging transfer allocations for a Division which is no longer
offered will remain in that Division until the allocation instructions are
changed by you.
You may modify your dollar cost averaging program or discontinue it by sending a
Written Request to the Annuity Service Office. We reserve the right to revoke or
modify the dollar cost averaging program at any time.
7. ADDITION, DELETION, OR SUBSTITUTION OF INVESTMENTS
SEPARATE ACCOUNTS
We reserve the right, subject to compliance with applicable law, to make
additions to, deletions from, or substitutions of the shares of a G.T. Global
Variable Investment Fund that are held or purchased by the Separate Accounts for
the Divisions. We reserve the right to eliminate the shares of any of the G.T.
Global Variable Investment Funds and to substitute shares of another G.T. Global
Variable Investment Fund or of another registered open-end investment company,
if the shares or G.T. Global Variable Investment Funds are no longer available
for investment or if in our judgement, further investment in any G .T. Global
Variable Investment Fund should become inappropriate in view of the purpose of
the Contract. We will not substitute any shares attributable to your interest in
a Division of the Separate Accounts without at least 30 days notice to the owner
and prior approval of the Securities and Exchange Commission, to the extent
required by the Investment Company Act of 1940 or other applicable law. This
will not prevent the Separate Accounts from purchasing other securities for
other series or classes of contracts, or from permitting conversion between
series or classes of contracts on the basis of requests made by owners.
4.03
We also reserve the right to establish additional Divisions of the Separate
Accounts, each of which would invest in a new G.T. Global Variable Investment
Fund, or in shares of another investment company, and to make such Divisions
available to whatever class or series of contracts we choose. We also reserve
the right to eliminate or combine Divisions of the Separate Accounts or to
transfer assets between Divisions. If we consider it to be in the best interest
of persons having voting privileges under the contracts, the Separate Accounts
may be operated as management companies under the Investment Company Act of
1940. They may be deregistered under that Act in the event registration is no
longer required. They may be combined with other separate accounts; or the
assets may be transferred to other separate accounts.
8. CHARGES AND DEDUCTIONS
ADMINISTRATIVE CHARGES
Each year on the last day of the Contract Year, we may deduct an annual account
administration fee ("account fee") as partial compensation for expenses relating
to the issue and maintenance of this Contract and your account. On Accumulated
Values of $20,000 or more, there will be no account fee. On Accumulated Values
less than $20,000, the account fee assessed will be the lesser of $30 or 2% of
your Accumulated Value for Contract Years ending prior to December 31,1999.
Thereafter, the account fee may be adjusted annually, but in no event may it be
adjusted by more than the amount that reflects the change in the Consumer Price
Index since December 31, 1992, nor will it exceed $50. The account fee will be
deducted from the G.T. Global Money Market Division; or from the Division with
the largest portion of Accumulated Value if no G .T. Global Money Market
Division investment exists on the Contract Anniversary. To the extent that the
account fee is deducted from a Division, Accumulation Units will be cancelled to
effect the deduction. On full surrender, the entire account fee, if applicable,
will be assessed.
On occasion, the last day of a Contract Year will not fall on a Business Day. If
the last day of a Contract Year and the next Business Day fall in the same
calendar month, administrative charges will be taken on the next Business Day.
If the last day of a Contract Year and the next Business Day do not fall in the
same calendar month, administrative charges will be taken on the Business Day
immediately preceding the last day of the Contract Year.
After the Annuity Date, the annual account fee will be deducted in equal amounts
from each variable Annuity Payment made during the year. No such deduction will
be made on fixed Annuity Payments.
SURRENDER CHARGE
Upon full surrender of the Contract or partial withdrawal of Accumulated Value,
we will apply a surrender charge to the gross withdrawal amount, excluding any
applicable administrative charges. This surrender charge, expressed as a
percentage of each net purchase payment, will apply to net purchase payments for
seven years measured from the date the net purchase payment is received. The
surrender charge schedule is as follows:
Years Since Receipt
of Purchase Payment Surrender Charge
------------------- ----------------
0 7%
1 6%
2 5%
3 4%
4 3%
5 2%
6 1%
7+ 0%
4.04
You may withdraw an amount equal to ten percent (10%) of your Accumulated Value
each year without incurring a surrender charge ("10% Free"). The annual 10% Free
amount will be equal to 10% of the Accumulated Value on the date that the first
partial withdrawal is made each Contract Year. The 10% Free amounts withdrawn
will not reduce the net purchase payment still subject to a surrender charge.
The 10% Free amount does not apply upon full surrender.
After an amount equal to the 10% Free has been withdrawn, additional amounts
will be withdrawn from net purchase payments on a FlFO basis and will be subject
to the surrender charges noted in the above table. Net purchase payments which
were received more than seven (7) years prior to the date of withdrawal may be
withdrawn without incurring a surrender charge. After all net purchase payments
have been withdrawn, further withdrawals will be made from earnings without
incurring a surrender charge. If the Accumulated Value is less than the net
purchase payments subject to a surrender charge, the surrender charge will only
be applied to the Accumulated Value. The surrender charge is not applied in the
event of annuitization with us after three Contract Years, or on death of the
Annuitant.
9. CASH WITHDRAWALS
CASH WITHDRAWALS
At any time before the Annuity Date and during the lifetime of the Annuitant,
you may elect to receive a cash withdrawal payment. The election must be in the
form of a Written Request and specify the amount of the withdrawal. It will be
effective on the date that a Written Request for withdrawal is received at our
Annuity Service Office.
You may request a full surrender or a partial withdrawal. A full surrender will
result in a cash withdrawal payment equal to the Accumulated Value of your
Contract at the end of the Valuation Period during which the election becomes
effective, less any applicable administrative charges and surrender charge. A
request for a partial withdrawal will result in a reduction in your Accumulated
Value equal to the amount you receive plus any applicable surrender charge and
administrative charges. The amount you receive can be less than the amount
requested if your Accumulated Value is insufficient to cover applicable charges
and produce the requested amount. Any withdrawal request cannot exceed the
Accumulated Value of your Contract. Any applicable surrender charge will be
calculated based upon the gross amount of withdrawal.
There is no limit on the frequency of partial withdrawals. However, the amount
withdrawn must be at least $500 or, if less, the entire balance in a Division.
If after the withdrawal (and deduction of any surrender charge) the amount
remaining in the Division would be less than $500, we will treat the partial
withdrawal as a withdrawal of the entire amount held in the Division. If a
partial withdrawal plus any applicable surrender charge would reduce the
Accumulated Value to less than $500, we will treat the partial withdrawal as a
full surrender of the Contract. In the case of a partial withdrawal, you must
instruct us as to the amounts to be withdrawn from each Division.
Cash withdrawals from a Division will result in the cancellation of Accumulation
Units attributable to your account with an aggregate value on the effective date
of the withdrawal equal to the total amount by which the Accumulated Value in
the Division is reduced. The cancellation of such units will be based on the
Accumulation Unit values of the Division at the end of the Valuation Period
during which the cash withdrawal is effective.
If at the time you make a request for a full surrender or a partial withdrawal,
you do not provide us with a Written Request not to -have Federal income taxes
withheld, we must by law withhold such taxes from the taxable portion of any
surrender or withdrawal.
4.05
Requests for cash withdrawal payments to a party other than you and/or to an
address other than your address of record require a signature guarantee. In
addition, if your address of record has been changed within the preceding 30
days, a signature guarantee is required.
Any cash withdrawal payment will be paid within seven days from our receipt of
your Written Request, except as we may be permitted to defer such payment in
accordance with the Investment Company Act of 1040 and applicable state
insurance law. (See Postponement of Payments provision, Section 13.)
SYSTEMATIC WITHDRAWAL PLAN
We offer a systematic withdrawal plan which allows you to authorize periodic
withdrawals during the accumulation period. These periodic withdrawals will be
subject to the following conditions:
1. We must receive a request for systematic withdrawals by Written Request;
2. The minimum periodic withdrawal request must be at least $200;
3. Withdrawals will occur on the Business Day coincident with or subsequent to
the 25th of the month in which you choose to begin withdrawals;
4. Withdrawals may be made on a monthly, quarterly, semiannually, or annually.
Amounts withdrawn may be subject to a surrender charge. Withdrawals taken under
the systematic withdrawal plan may be subject to the 10% Federal penalty tax on
early withdrawals and to income taxes.
You may modify your systematic withdrawal plan or discontinue it by sending a
Written Request to the Annuity Service Office. We reserve the right to revoke or
modify the systematic withdrawal plan at any time.
4.06
10. ANNUITY PROVISIONS
ANNUITY PROCEEDS
The annuity proceeds will equal the Accumulated Value, less any applicable
premium taxes, administrative charges, and surrender charge on the Annuity Date.
OnIy if the Annuity Date of the Contract occurs within the first three Contract
Years, will the surrender charge be deducted from the annuity proceeds on the
Annuity Date.
ANNUITY DATE
Annuity Payments will begin under the Contract on the Annuity Date unless the
Contract has been surrendered or the Proceeds have been paid to the designated
Beneficiary prior to that date. The Annuity Date can be no later than the
Annuitant's 85th birthday.
You may change the Annuity Date. An Annuity Date may be changed only by Written
Request during the Annuitant's lifetime, and such a request must reach our
Annuity Service Office at least 30 days before (1) the then current Annuity
Date, and (2) the new Annuity Date. The new Annuity Date must be no later than
the Annuity Date as defined in the paragraph above.
ELECTION OF ANNUITY OPTION
While the Annuitant is alive, you may choose any annuity option or change any
choice, if your choice was not irrevocable, but only before Annuity Payments
begin. The election must be made not later than thirty days prior to the time
Annuity Payments begin. If an annuity option is not chosen prior to the Annuity
Date, payments will begin to the Annuitant on the Annuity Date under the annuity
option providing a Life Annuity with 120 Monthly Payments Guaranteed. (Option 2
below)
At the time annuity proceeds are payable to a Beneficiary, a Beneficiary may
choose or change any annuity option if Proceeds are available to the Beneficiary
in one sum.
A choice or change must be made by Written Request.
ANNUITY OPTIONS
(See Annuity Option Tables at the end of this Contract.) On the Annuity Date,
the annuity proceeds may be placed under any of the following options:
OPTION 1. LIFE ANNUITY. We will pay a monthly income during a person's
lifetime, which will cease with the last payment preceding the death
of that person.
OPTION 2. LIFE ANNUITY WITH 60, 120, 180, OR 240 MONTHLY PAYMENTS GUARANTEED. We
will pay a monthly income during a person's lifetime with the
guarantee that if, at death of the person, payments have been made for
less than 60 months, 120 months, 180 months, or 240 months, as
elected, payments will be continued to the beneficiary during the
remainder of the elected period.
OPTION 3. JOINT AND SURVIVOR INCOME FOR LIFE. We will make monthly payments
jointly to two payees if both are living when the payments become
payable. The Annuitant will be designated as primary payee. Full
payments will continue so long as the primary payee is living. If the
primary payee dies after payments begin, full payments or payments of
1/2 or 2/3, (whichever you elected when applying for this option) will
continue to the other payee during his or her lifetime.
OPTION 4. INCOME FOR A FIXED PERIOD. We will pay the annuity proceeds in
payments over a period of from 5 to 30 years. The amount of each
payment will be based upon the period and the frequency of the
payments selected from Option 4 TabIe.
5.01
ALLOCATION OF ANNUITY
When you elect one of the annuity options, you may further elect to have the
annuity purchased in the form of the variable annuity, fixed annuity, or a
combination of both.
If no election is made to the contrary on these options, the Accumulated Value
in the Divisions of the Separate Accounts will be applied to provide a variable
annuity.
VARIABLE ANNUITY PAYMENTS
For the variable portion of an annuity option, the amounts applied to the
annuity are used to purchase Annuity Units in the selected Division(s). The
number of Annuity Units purchased in each Division is calculated as the dollar
amount of the first Annuity Payment provided by Proceeds from that Division
divided by the Annuity Unit value for the Division as of the Annuity Date. On
any payment date, the amount of payment from each Division is calculated as the
number of Annuity Units for the Division times the Annuity Unit value for the
Division as of the payment date, less any applicable administrative charges.
Although variable Annuity Payments will vary to reflect performance of the
Divisions, we guarantee that the dollar amounts of variable Annuity Payments
will not be adversely affected by our actual expense and mortality results.
MINIMUM AMOUNTS
The minimum amount for each payee that can be placed under an option and the
minimum amount of any payments under an option will be based on our rules at the
time the option is to become effective (or as required by state law).
PAYEE
A person who receives Annuity Payments under an annuity option is a payee.
Except for a legal guardian, a payee must generally be a natural person
receiving benefits in his or her own right. With our consent, the payee may be a
trustee, assignee, corporation, or partnership.
CONTINGENT PAYEE
The payee may name contingent payees, subject to any restrictions under an
annuity option chosen during the Annuitant's lifetime, under the following
conditions:
1. If you are the payee; or
2. If at any time after the Annuitant's death and during the option period no
previously named contingent payee is living.
The named contingent payee will be disregarded if making that person or entity
the contingent payee would prevent treatment of this Contract as an annuity for
federal income tax purposes.
Designations made by the payee under these provisions may be changed by the
payee. Such changes must be made by Written Request satisfactory to us. Changes
will only take effect when we accept them in writing at our Annuity Service
Office. At that time, the contingent interest of any other person is terminated
as of the date the payee signed the request, whether or not the payee is living
when we receive the request.
LIFE INCOME OPTIONS
Life Income Options are based on the Annuitant's sex and age nearest birthday on
the Annuity Date. We have the right to require satisfactory proof of age and
sex. If age or sex has been incorrectly stated, the proper adjustments in
payments will be made. We may also require proof that the payee is living on any
payment due date.
DEATH OF PAYEE
If a payee dies, any installments still payable under an annuity option
specifying a certain certain period will be paid as they become due to the
surviving or next succeeding payee. lf no designated payee survives, the
commuted value of any unpaid installments will be paid in one sum to the estate
of the last payee to die.
5.02
RIGHTS UNDER ANNUITY OPTIONS
No payee has the right to make any change in the provisions of the agreement or
to receive the benefits in any manner other than that stated in the agreement,
unless suchright was reserved in the agreement. We will not make any payments in
advance, nor commute payments under any life income option.
CALCULATION OF PAYMENTS
Payments paid under an annuity option will be calculated using the effective
annual rate of 4% compounded annually. The mortality table used in determining
payments made under life income options is the 1983 Individual Annuitant
Mortality Table a. In using this mortality table, ages of annuitants will be
reduced by one year for annuity dates occurring during the 1990s, reduced two
years for annuity dates occurring during the decade 2000-2009, and so on.
BASIS OF COMMUTATION
Commutation of payments under an annuity option will be calculated using the
effective annual rate of 4% compounded annually.
EXTENDED PROVISIONS
Provisions for settlement of benefits different from those stated in this
Contract may only be made upon written agreement with us.
COMPANY LIABILITY
We will be fully discharged by any payment we make before a Written Request for
an election change, or revocation was made and is received in our Annuity
Service Office.
11. DEATH BENEFIT
DEATH BENEFIT
In every case of death, we must receive due proof of death of the owner or
Annuitant before we are obliged to act. For purposes of the death benefit, if
the owner of the Contract is not an individual, the Annuitant shall be treated
as the owner of the Contract.
(A) DEATH OF A CONTRACT OWNER WHO IS THE ANNUITANT.
If a contract owner dies prior to the Annuity Date, the death benefit will
become payable to the contract owner's Beneficiary. If the surviving spouse
is the contract owner's beneficiary, the spouse may elect to continue the
contract as the new owner and Annuitant. The death benefit, if more than
the accumulated value, will be paid to the surviving spouse by crediting
the Contract with an amount equal to the difference between the death
benefit and the accumulated value.
If a contract owner dies on or after the Annuity Date, no death benefit
will be payable under the Contract except as may be provided under the
annuity option elected.
(B) DEATH OF A CONTRACT OWNER WHO IS NOT THE ANNUITANT
If a contract owner dies prior to the Annuity Date, the Accumulated Value,
less any applicable administrative charges, or surrender charge, will be
distributed to the contract owner's Beneficiary. However, if the surviving
spouse is the annuitant or the contract owner's Beneficiary, the spouse may
continue the contract as the new owner.
If a contract owner dies on or after the Annuity Date, no death benefit
will be payable under the Contract, and the contract must continue to be
distributed at least as rapidly as the method of distributions being used
as of the date of the owner's death.
5.03
(C) DEATH OF THE ANNUITANT WHO IS NOT A CONTRACT OWNER
If the Annuitant dies prior to the Annuity Date and before a contract
owner, the death benefit will become payable to the Annuitant's
Beneficiary.
If the Annuitant dies on or after the Annuity Date, no death benefit will
be payable under the Contract except as may be provided under the annuity
option elected.
(D) DEATH OF A JOINT OWNER
If any joint owner dies prior to the annuity date, the contract must be
distributed. Joint ownership should be limited to spousal joint ownership.
In order for the contract to continue under the spousal Beneficiary
exception, the contract owner's beneficiary designation must read
"surviving spouse". If the surviving spouse is not the contract owner's
Beneficiary, the contract will be distributed.
If any joint owner dies on or after the annuity date, the contract must
continue to be distributed at least as rapidly as the method of
distributions prior to the joint owner's death. If the deceased joint owner
was also the annuitant, no death benefit will be payable under the contract
except as may be provided under the annuity option elected.
(E) PAYMENT OF DEATH BENEFIT
Payments made under the death benefit provisions will be made in one lump
sum and must be made within five (5) years after the date of death of a
contract owner or Annuitant. If the Beneficiary makes a written request
within one year of the death of the Annuitant or owner, the proceeds may be
applied to create an immediate annuity for the Beneficiary, who will be the
owner and Annuitant. Payments under the annuity, or under any other method
of payment Security Equity makes available, must be for the life of the
Beneficiary, or for a number of years that is not more than the life
expectancy of the Beneficiary (as determined for federal tax purposes) at
the time of a contract owner's or Annuitant's death, and must begin within
one year after a contract owner's or Annuitant's death.
The death benefit will be paid or credited within seven days of receipt at
the Annuity Service Office of due proof of death and a Written Request for
payment, except as we may be permitted to defer such payment in accordance
with the Investment Company Act of 1940 and applicable state insurance law.
(See Postponement of Payments provision, Section 13.)
AMOUNT OF DEATH BENEFIT
The death benefit will be the gross death benefit described below, less any
applicable administrative charges. The surrender charge is not applicable in the
event of the Annuitant's death.
The gross death benefit during the first six Contract Years will be equal to the
greater of: (a) the Accumulated Value on the date due proof of death and a
Written Request for payment is received at our Annuity Service Office or, (b)
the sum of all net purchase payments made, less any amount deducted in
connection with partial withdrawals. During any subsequent six Contract Year
period, the gross death benefit will be the greater of: (a) the Accumulated
Value on the date due proof of death and a Written Request for payment is
received at our Annuity Service Office, or (b) the death benefit on the last day
of the previous six Contract Year period plus any net purchase payments made and
less any amount deducted in connection with partial withdrawals since then.
Notwithstanding the above, if the Date of Issue is on or after the Annuitant's
75th birthday, the gross death benefit will be the Accumulated Value on the date
due proof of death and a Written Request for payment is received at our Annuity
Service Office.
5.04
12. PERSONS WITH AN INTEREST IN THE CONTRACT
OWNERSHIP
The owner is as shown in the application or in any supplemental agreement
attached to this Contract, unless later changed as provided in this Contract.
You, as owner, are entitled to all rights provided by this Contract, prior to
the Annuity Date. Ownership may be changed in accordance with the Change of
Owner or Beneficiary provision. After the Annuity Date, you cannot change the
payee nor the mode of payment, unless otherwise provided in this Contract. Any
person whose rights of ownership depend upon some future event will not possess
any present rights of ownership. If there is more than one owner at a given
time, all must exercise the rights of ownership by joint action.
BENEFICIARY
The original Beneficiary is as shown in the application. You may change the
Beneficiary in accordance with the Change of Owner or Beneficiary provision.
Unless otherwise stated, the Beneficiary has no rights in this Contract before
the death of a contract owner or Annuitant. If there is more than one
Beneficiary, each will receive equal payments unless otherwise provided. If
there are no Beneficiaries living when the Annuitant dies, or at the end of any
common disaster period, the Proceeds (commuted if required) will be payable to
you, if you are living, or to your estate. If there are no Beneficiaries living
when a contract owner dies, or at the end of any common disaster period, the
Proceeds (commuted if required) will be payable to your estate.
CHANGE OF OWNER OR BENEFICIARY
During the Annuitant's lifetime you may change the Ownership and Beneficiary
designations. You must make the change in written form satisfactory to us. If
acceptable to us it will take effect as of the time you signed the Written
Request, whether or not the Annuitant is living when we receive your request at
our Annuity Service Office. The change will be subject to any assignment of this
Contract or other legal restrictions. It will also be subject to any payment we
made or action we took before we received your Written Request of the change. We
have the right to require the Contract for endorsement before we accept the
change. We will not be bound by any Change of Owner of the Contract or of any
interest in it unless we send you an acknowledged copy.
If you are also the Beneficiary of the Contract at the time of the Annuitant's
death, you may designate some other person to receive the Proceeds of the
Contract at the time due proof of death is submitted to our Annuity Service
Office.
ASSIGNMENTS
We will not be bound by an assignment of the Contract or of any interest in it
unless:
1. It is made as a written instrument;
2. You file the original instrument or a certified copy with us at our Annuity
Service Office; and
3. We send you an acknowledged copy.
We are not responsible for the validity of any assignment.
If a claim is based on an assignment, we may require proof of the interest of
the claimant. A valid assignment will take precedence over any claim of a
Beneficiary. Any amounts due under a valid assignment will be paid in one lump
sum.
6.01
13. THE CONTRACT
THE CONTRACT
This Contract, its endorsements and amendments if any, and the application, a
copy of which is attached to and made a part of the Contract, are the entire
Contract. This Contract will be subject to all of the provisions of the
Investment Company Act of 1 MO at all times during which the Separate Accounts
are registered under such act as unit investment trusts.
CONTROL
Consistent with the terms of any Beneficiary designation, you may, during the
life of the Annuitant, do any of the things described below:
1. Prior to the time when Annuity Payments have begun you may surrender this
Contract or withdraw a portion of the Accumulated Value.
2. You may exercise any right, receive any benefit, or enjoy any privilege
contained in this Contract.
MODIFICATION
No condition or provision of this Contract can be waived or modified except by a
written instrument signed by our president, a vice president, the secretary, or
an assistant secretary. Our agents have no authority to alter or modify any
terms, conditions, or agreements of this Contract, or to waive any of its
provisions.
Upon notice to you, or the Payee(s) after the Annuity Date, this Contract may be
modified by us, but only if such modification (a) is necessary to make the
Contract or the Separate Accounts comply with any law or regulation issued by a
governmental agency to which we or the Separate Accounts are subject; or (b) is
necessary to reflect a change in the operation of the Separate Accounts or the
Divisions; or (c) provides additional Separate Accounts. ln the event of any
such modification, we may make appropriate endorsement to the Contract to
reflect such modification.
STATEMENTS IN APPLICATION
All statements made by the Annuitant or on his or her behalf, or by the
applicant, will be deemed representations and not warranties, except in the case
of fraud. Material misstatements will not be used to void the Contract or deny a
claim unless made in the application.
INCONTESTABILITY
We will not contest this Contract.
MISSTATEMENT OF AGE OR SEX
If the age or sex of the Annuitant has been misstated in the application, the
benefits available under this Contract will be those which the purchase payments
would have purchased for the correct age or sex. Any underpayments already made
by us will be made up immediately and any overpayments already made by us will
be charged against the Annuity Payments falling due after adjustment. Interest
will be credited to or charged against these adjusted Annuity Payments at a rate
of 4% per annum.
CLAIMS OF CREDITORS
To the extent permitted by law, neither the Contract nor any payment under it
will be subject to the claim of creditors or to any legal process.
CONFORMITY WITH STATUTES
If any provision in this Contract is in conflict with the laws of the state
which govern this Contract, the provision will be deemed to be amended to
conform with such laws.
6.02
CONTRACT OWNER REPORTS
At least once each Contract Year we will mail a report to you. The report will
be mailed to your last address known to us. The report will include a statement
of the number of units credited to the Separate Accounts under this Contract and
the dollar value of such units. The information in the report will be as of a
date not more than two months prior to the date of mailing the report. We will
also mail to you at least once in each Contract Year a report of the investments
held in the Divisions under this Contract.
PREMIUM TAX
State and local government premium tax, if applicable, will be deducted from
purchase payments or Accumulated Value when the tax is incurred by us.
POSTPONEMENT OF PAYMENTS
We will usually pay any amounts payable on surrender or partial withdrawal
allocated to the Divisions of the Separate Accounts within seven days after
Written Request is received at our Annuity Service Office. We will usually pay
any death benefit within seven days after we receive due proof of death and a
Written Request for payment. Payment of any amount payable, from the Divisions
of the Separate Accounts, on surrender, partial withdrawal, or death may be
postponed whenever:
1. The New York Stock Exchange or our Annuity Service Office is closed (other
than customary weekend and holiday closing) or trading on the New You Stock
Exchange is restricted as determined by the Securities and Exchange
Commission;
2. The Securities and Exchange Commission, by order, permits postponement for
the protection of contract owners; or
3. An emergency exists as determined by the Securities and Exchange
Commission, as a result of which disposal of securities is not reasonably
practicable or it is not reasonably practicable to determine the value of
the net assets of the Separate Accounts.
Transfers described in Section 6 may also be postponed under the circumstances
listed in items 1, 2, and 3 above.
6.03
ANNUITY OPTION TABLES
FOR EACH $1,000
---------------------------------------------------------------------------------------------------------------------------
OPTION 1 OPTION 2 OPTION 4
---------------------------------------------------------------------------------------------------------------------------
AGE OF PAYEE
LIFE 60 MONTHS 120 MONTHS 180 MONTHS 240 MONTHS INCOME FOR A
ANNUITY GUARANTY GUARANTY GUARANTY GUARANTY FIXED PERIOD
MALE FEMALE
---------------------------------------------------------------------------------------------------------------------------
45 50 $4.53 $4.52 $4.50 $4.46 $4.40 YEARS MONTHLY
46 51 4.59 4.58 4.55 4.51 4.45 CERTAIN INSTALLMENTS
47 52 4.65 4.64 4.61 4.56 4.50 ------- ------------
49 53 4.72 4.71 4.67 4.62 4.55 5 18.32
49 54 4.79 4.77 4.74 4.68 4.60 6 15.56
---------------------------------------------------------------------------------------------------------------------------
50 55 4.86 4.85 4.81 4.74 4.65 7 13.59
51 56 4.94 4.92 4.88 4.80 4.71 8 12.11
52 57 5.02 5.00 4.95 4.87 4.76 9 10.97
53 58 5.10 5.08 5.03 4.94 4.82 10 10.06
54 59 5.19 5.17 5.11 5.01 4.88 11 9.31
---------------------------------------------------------------------------------------------------------------------------
55 60 5.29 5.26 5.20 5.09 4.94 12 8.69
56 61 5.39 5.36 5.29 5.17 5.00 13 8.17
57 62 5.49 5.47 5.38 5.25 5.06 14 7.72
58 63 5.61 5.58 5.48 5.33 5.12 15 7.34
59 64 5.73 5.70 5.59 5.42 5.18 16 7.00
---------------------------------------------------------------------------------------------------------------------------
60 65 5.86 5.82 5.70 5.51 5.24 17 6.70
61 66 6.00 5.96 5.82 5.60 5.31 18 6.44
62 67 6.15 6.10 5.95 5.69 5.37 19 6.21
63 68 6.32 6.26 6.08 5.79 5.43 20 6.00
64 69 6.49 6.42 6.21 5.89 5.48 21 5.81
---------------------------------------------------------------------------------------------------------------------------
65 70 6.68 6.60 6.35 5.98 5.54 22 5.64
66 71 6.88 6.78 6.50 6.08 5.59 23 5.49
67 72 7.09 6.98 6.65 6.18 5.64 24 5.35
68 73 7.31 7.18 6.81 6.28 5.69 25 5.22
69 74 7.56 7.40 6.97 6.37 5.73 26 5.10
---------------------------------------------------------------------------------------------------------------------------
70 75 7.82 7.64 7.14 6.47 5.77 27 4.99
71 76 8.09 7.88 7.31 6.55 5.81 28 4.89
72 77 8.39 8.14 7.48 6.64 5.84 29 4.80
73 78 8.71 8.41 7.65 6.72 5.87 30 4.72
74 79 9.05 8.70 7.83 6.80 5.89
---------------------------------------------------------------------------------------------------------------------------
75 80 9.41 9.00 8.00 6.87 5.91
76 81 9.81 9.32 8.17 6.93 5.93
77 82 10.23 9.65 8.34 6.99 5.95
78 83 10.68 9.99 8.50 7.05 5.96
79 84 11.16 10.35 8.66 7.10 5.97
---------------------------------------------------------------------------------------------------------------------------
80 85 & 11.68 10.72 8.81 7.14 5.98
81 OVER 12.23 11.09 8.95 7.18 5.99
82 12.81 11.47 9.09 7.21 5.99
83 13.44 11.86 9.21 7.23 5.99
84 14.09 12.25 9.32 7.26 6.00
---------------------------------------------------------------------------------------------------------------------------
85 & 14.79 12.64 9.43 7.28 6.00
OVER
---------------------------------------------------------------------------------------------------------------------------
The mortality table used in computing annuity options under this contract is the
1983 Individual Annuity Mortality Table a.
7.01
ANNUITY OPTION TABLES (CONTD)
FOR EACH $1,000
OPTION 3-MONTHLY INSTALLMENTS-JOINT AND EQUAL TO SECONDARY PAYEE
----------------------------------------------------------------------------------------------------------------------------------
AGE OF PRIMARY
PAYEE AGE OF SECONDARY PAYEE
----------------------------------------------------------------------------------------------------------------------------------
MALE 45 46 47 48 49 50 51 52 53 54 55 56
----------------------------------------------------------------------------------------------------------------------------------
FEMALE 50 51 52 53 54 55 56 57 58 59 60 61
----------------------------------------------------------------------------------------------------------------------------------
50 55 $4.19 $4.22 $4.24 $4.27 $4.30 $4.32 $4.35 $4.37 $4.40 $4.43 $4.45 $4.47
51 56 4.21 4.23 4.26 4.29 4.32 4.35 4.38 4.40 4.43 4.46 4.48 4.51
52 57 4.22 4.25 4.28 4.31 4.34 4.37 4.40 4.43 4.46 4.49 4.52 4.55
53 58 4.24 4.27 4.30 4.33 4.37 4.40 4.43 4.46 4.49 4.52 4.55 4.58
54 59 4.25 4.29 4.32 4.35 4.39 4.42 4.46 4.49 4.52 4.56 4.59 4.62
----------------------------------------------------------------------------------------------------------------------------------
55 60 4.27 4.30 4.34 4.37 4.41 4.45 4.48 4.52 4.55 4.59 4.62 4.66
56 61 4.28 4.32 4.36 4.39 4.43 4.47 4.51 4.54 4.58 4.62 4.66 4.70
57 62 4.30 4.33 4.37 4.41 4.45 4.49 4.53 4.57 4.61 4.65 4.69 4.73
58 63 4.31 4.35 4.39 4.43 4.47 4.51 4.55 4.60 4.64 4.68 4.73 4.77
59 64 4.32 4.36 4.40 4.45 4.49 4.53 4.58 4.62 4.67 4.71 4.76 4.80
----------------------------------------------------------------------------------------------------------------------------------
60 65 4.34 4.38 4.42 4.46 4.51 4.55 4.60 4.65 4.69 4.74 4.79 4.84
61 66 4.35 4.39 4.43 4.48 4.53 4.57 4.62 4.67 4.72 4.77 4.82 4.87
62 67 4.36 4.40 4.45 4.49 4.54 4.59 4.64 4.69 4.75 4.80 4.85 4.91
63 68 4.37 4.41 4.46 4.51 4.56 4.61 4.66 4.71 4.77 4.83 4.88 4.94
64 69 4.38 4.42 4.47 4.52 4.57 4.63 4.68 4.74 4.79 4.85 4.91 4.97
----------------------------------------------------------------------------------------------------------------------------------
65 70 4.39 4.43 4.48 4.53 4.59 4.64 4.70 4.76 4.81 4.88 4.94 5.00
66 71 4.40 4.44 4.49 4.55 4.60 4.66 4.71 4.77 4.84 4.90 4.96 5.03
67 72 4.40 4.45 4.50 4.56 4.61 4.67 4.73 4.79 4.86 4.92 4.99 5.06
68 73 4.41 4.46 4.51 4.57 4.63 4.68 4.75 4.81 4.87 4.94 5.01 5.09
69 74 4.42 4.47 4.52 4.58 4.64 4.70 4.76 4.82 4.89 4.96 5.03 5.11
----------------------------------------------------------------------------------------------------------------------------------
70 75 4.43 4.48 4.53 4.59 4.65 4.71 4.77 4.84 4.91 4.98 5.06 5.13
71 76 4.43 4.48 4.54 4.60 4.66 4.72 4.78 4.85 4.92 5.00 5.08 5.16
72 77 4.44 4.49 4.55 4.60 4.67 4.73 4.80 4.87 4.94 5.01 5.09 5.18
73 78 4.44 4.50 4.55 4.61 4.67 4.74 4.81 4.88 4.95 5.03 5.11 5.20
74 79 4.45 4.50 4.56 4.62 4.68 4.75 4.82 4.89 4.96 5.04 5.13 5.21
----------------------------------------------------------------------------------------------------------------------------------
75 80 4.45 4.51 4.56 4.63 4.69 4.76 4.83 4.90 4.98 5.06 5.14 5.23
----------------------------------------------------------------------------------------------------------------------------------
OPTION 3-MONTHLY INSTALLMENTS-JOINT AND EQUAL TO SECONDARY PAYEE
----------------------------------------------------------------------------------------------------
AGE OF PRIMARY
PAYEE AGE OF SECONDARY PAYEE
----------------------------------------------------------------------------------------------------
MALE 57 58 59 60 61 62 63 64 65
----------------------------------------------------------------------------------------------------
FEMALE 62 63 64 65 66 67 68 69 70
----------------------------------------------------------------------------------------------------
50 55 $4.50 $4.52 $4.54 $4.56 $4.58 $4.60 $4.62 $4.64 $4.65
51 56 4.54 4.56 4.58 4.61 4.63 4.65 4.67 4.69 4.71
52 57 4.57 4.60 4.63 4.65 4.68 4.70 4.72 4.74 4.76
53 58 4.61 4.64 4.67 4.70 4.73 4.75 4.78 4.80 4.82
54 59 4.65 4.69 4.72 4.75 4.78 4.80 4.83 4.86 4.88
----------------------------------------------------------------------------------------------------
55 60 4.69 4.73 4.76 4.79 4.83 4.86 4.89 4.91 4.94
56 61 4.73 4.77 4.81 4.84 4.88 4.91 4.94 4.97 5.00
57 62 4.77 4.81 4.85 4.89 4.93 4.96 5.00 5.03 5.07
58 63 4.81 4.85 4.90 4.94 4.98 5.02 5.06 5.10 5.13
59 64 4.85 4.90 4.94 4.99 5.03 5.07 5.12 5.16 5.20
----------------------------------------------------------------------------------------------------
60 65 4.89 4.94 4.99 5.03 5.08 5.13 5.18 5.22 5.27
61 66 4.93 4.98 5.03 5.08 5.13 5.19 5.24 5.28 5.33
62 67 4.96 5.02 5.07 5.13 5.19 5.24 5.30 5.35 .5.40
63 68 5.00 5.06 5.12 5.18 5.24 5.30 5.35 5.41 5.47
64 69 5.03 5.10 5.16 5.22 5.29 5.35 5.41 5.48 5.54
----------------------------------------------------------------------------------------------------
65 70 5.07 5.13 5.20 5.27 5.34 5.40 5.47 5.54 5.61
66 71 5.10 5.17 5.24 5.31 5.38 5.46 5.53 5.60 5.68
67 72 5.13 5.20 5.28 5.35 5.43 5.51 5.59 5.66 5.74
68 73 5.16 5.24 5.31 5.39 5.48 5.56 5.64 5.73 5.81
69 74 5.19 5.27 5.35 5.43 5.52 5.61 5.69 5.78 5.87
----------------------------------------------------------------------------------------------------
70 75 5.21 5.30 5.38 5.47 5.56 5.65 5.75 5.84 5.94
71 76 5.24 5.33 5.41 5.51 5.60 5.70 5.79 5.90 6.00
72 77 5.26 5.35 5.44 5.54 5.64 5.74 5.84 5.95 6.06
73 78 5.28 5.38 5.47 5.57 5.67 5.78 5.89 6.00 6.11
74 79 5.31 5.40 5.50 5.60 5.71 5.82 5.93 6.05 6.17
----------------------------------------------------------------------------------------------------
75 80 5.32 5.42 5.52 5.63 5.74 5.85 5.97 6.09 6.22
----------------------------------------------------------------------------------------------------
OPTION 3-MONTHLY INSTALLMENTS-JOINT AND ONE-HALF TO SECONDARY PAYEE
----------------------------------------------------------------------------------------------------------------------------------
AGE OF PRIMARY
PAYEE AGE OF SECONDARY PAYEE
----------------------------------------------------------------------------------------------------------------------------------
MALE 45 46 47 48 49 50 51 52 53 54 55 56
----------------------------------------------------------------------------------------------------------------------------------
FEMALE 50 51 52 53 54 55 56 57 58 59 60 61
----------------------------------------------------------------------------------------------------------------------------------
50 55 $4.50 $4.51 $4.53 $4.55 $4.56 $4.58 $4.59 $4.60 $4.62 $4.63 $4.65 $4.66
51 56 4.54 4.56 4.57 4.59 4.61 4.62 4.64 4.65 4.67 4.68 4.70 4.71
52 57 4.59 4.60 4.62 4.64 4.66 4.67 4.69 4.71 4.72 4.74 4.75 4.77
53 58 4.63 4.65 4.67 4.69 4.70 4.72 4.74 4.76 4.78 4.80 4.81 4.83
54 59 4.68 4.70 4.72 4.74 4.76 4.78 4.80 4.81 4.83 4.85 4.87 4.89
----------------------------------------------------------------------------------------------------------------------------------
55 60 4.72 4.74 4.77 4.79 4.81 4.83 4.85 4.87 4.89 4.91 4.93 4.95
56 61 4.77 4.79 4.82 4.84 4.86 4.88 4.91 4.93 4.95 4.97 5.00 5.02
57 62 4.82 4.85 4.87 4.89 4.92 4.94 4.97 4.99 5.01 5.04 5.06 5.09
58 63 4.87 4.90 4.92 4.95 4.98 5.00 5.03 5.05 5.08 5.10 5.13 5.16
59 64 4.93 4.95 4.98 5.01 5.03 5.06 5.09 5.12 5.14 5.17 5.20 5.23
----------------------------------------------------------------------------------------------------------------------------------
60 65 4.98 5.01 5.04 5.07 5.10 5.13 5.15 5.18 5.21 5.24 5.27 5.30
61 66 5.04 5.07 5.10 5.13 5.16 5.19 5.22 5.25 5.29 5.32 5.35 5.38
62 67 5.10 5.13 5.16 5.19 5.23 5.26 5.29 5.33 5.36 5.39 5.43 5.46
63 68 5.17 5.20 5.23 5.26 5.30 5.33 5.36 5.40 5.44 5.47 5.51 5.54
64 69 5.23 5.26 5.30 5.33 5.37 5.40 5.44 5.48 5.51 5.55 5.59 5.63
----------------------------------------------------------------------------------------------------------------------------------
65 70 5.30 5.33 5.36 5.40 5.44 5.48 5.51 5.55 5.59 5.64 5.68 5.72
66 71 5.36 5.40 5.44 5.47 5.51 5.55 5.59 5.64 5.68 5.72 5.77 5.81
67 72 5.43 5.47 5.51 5.55 5.59 5.63 5.67 5.72 5.76 5.81 5.86 5.90
68 73 5.50 5.54 5.58 5.62 5.67 5.71 5.76 5.80 5.85 5.90 5.95 6.00
69 74 5.58 5.62 5.66 5.70 5.75 5.79 5.84 5.89 5.94 5.99 6.04 6.10
----------------------------------------------------------------------------------------------------------------------------------
70 75 5.65 5.69 5.74 5.78 5.83 5.88 5.93 5.98 6.03 6.08 6.14 6.20
71 76 5.73 5.77 5.82 5.86 5.91 5.96 6.01 6.07 6.12 6.18 6.24 6.30
72 77 5.80 5.85 5.90 5.95 6.00 6.05 6.10 6.16 6.22 6.28 6.34 6.40
73 78 5.88 5.93 5.98 6.03 6.08 6.14 6.19 6.25 6.31 6.38 6.44 6.51
74 79 5.96 6.01 6.06 6.12 6.17 6.23 6.29 6.35 6.41 6.48 6.55 6.62
----------------------------------------------------------------------------------------------------------------------------------
75 80 6.05 6.10 6.15 6.20 6.26 6.32 6.38 6.44 6.51 6.58 6.65 6.73
----------------------------------------------------------------------------------------------------------------------------------
OPTION 3-MONTHLY INSTALLMENTS-JOINT AND ONE-HALF TO SECONDARY PAYEE
AGE OF PRIMARY
PAYEE AGE OF SECONDARY PAYEE
----------------------------------------------------------------------------------------------------
MALE 57 58 59 60 61 62 63 64 65
----------------------------------------------------------------------------------------------------
FEMALE 62 63 64 65 66 67 68 69 70
----------------------------------------------------------------------------------------------------
50 55 $4.67 $4.68 $4.69 $4.71 $4.72 $4.73 $4.74 $4.75 $4.75
51 56 4.73 4.74 4.75 4.77 4.78 4.79 4.80 4.81 4.82
52 57 4.79 4.80 4.81 4.83 4.84 4.85 4.86 4.88 4.89
53 58 4.85 4.86 4.88 4.89 4.91 4.92 4.93 4.95 4.96
54 59 4.91 4.93 4.94 4.96 4.97 4.99 5.00 5.02 5.03
----------------------------------------------------------------------------------------------------
55 60 4.97 4.99 5.01 5.03 5.04 5.06 5.08 5.09 5.11
56 61 5.04 5.06 5.08 5.10 5.12 5.14 5.15 5.17 5.19
57 62 5.11 5.13 5.15 5.17 5.20 5.22 5.24 5.25 5.27
58 63 5.18 5.20 5.23 5.25 5.28 5.30 5.32 5.34 5.36
59 64 5.25 5.28 5.31 5.33 5.36 5.38 5.41 5.43 5.45
----------------------------------------------------------------------------------------------------
60 65 5.33 5.36 5.39 5.42 5.44 5.47 5.50 5.52 5.55
61 66 5.41 5.44 5.47 5.51 5.54 5.56 5.59 5.62 5.65
62 67 5.50 5.53 5.56 5.60 5.63 5.66 5.69 5.72 5.75
63 68 5.58 5.62 5.65 5.69 5.73 5.76 5.80 5.83 5.86
64 69 5.67 5.71 5.75 5.79 5.83 5.87 5.90 5.94 5.98
----------------------------------------------------------------------------------------------------
65 70 5.76 5.80 5.85 5.89 5.93 5.97 6.01 6.06 6.10
66 71 5.86 5.90 5.95 5.99 6.04 6.08 6.13 6.17 6.22
67 72 5.95 6.00 6.05 6.10 6.15 6.20 6.25 6.30 6.35
68 73 6.05 6.10 6.16 6.21 6.26 6.32 6.37 6.42 6.48
69 74 6.15 6.21 6.26 6.32 6.38 6.44 6.48 6.55 6.61
----------------------------------------------------------------------------------------------------
70 75 6.26 6.31 6.38 6.44 6.50 6.56 6.62 6.69 6.75
71 76 6.36 6.42 6.49 6.55 6.62 6.69 6.75 6.89 6.89
72 77 6.47 6.54 6.60 6.67 6.74 6.82 6.89 6.96 7.04
73 78 6.58 6.65 6.72 6.79 6.87 6.95 7.03 7.10 7.18
74 79 6.69 6.76 6.84 6.92 7.00 7.08 7.17 7.25 7.34
----------------------------------------------------------------------------------------------------
75 80 6.80 6.88 6.96 7.04 7.13 7.22 7.31 7.40 7.49
----------------------------------------------------------------------------------------------------
7.02
ANNUITY OPTION TABLES (CONTD)
FOR EACH $1,000
OPTION 3-MONTHLY INSTALLMENTS-JOINT AND TWO-THIRDS TO SECONDARY PAYEE
AGE OF PRIMARY
PAYEE AGE OF SECONDARY PAYEE
----------------------------------------------------------------------------------------------------------------------------------
MALE 45 46 47 48 49 50 51 52 53 54 55 56
----------------------------------------------------------------------------------------------------------------------------------
FEMALE 50 51 52 53 54 55 56 57 58 59 60 61
----------------------------------------------------------------------------------------------------------------------------------
50 55 $4.39 $4.41 $4.43 $4.45 $4.47 $4.49 $4.51 $4.53 $4.54 $4.56 $4.58 $4.60
51 56 4.42 4.44 4.47 4.49 4.51 4.53 4.55 4.57 4.59 4.61 4.63 4.64
52 57 4.46 4.48 4.50 4.52 4.55 4.57 4.59 4.61 4.63 4.65 4.67 4.69
53 58 4.49 4.52 4.54 4.56 4.59 4.61 4.63 4.66 4.68 4.70 4.72 4.74
54 59 4.53 4.55 4.58 4.60 4.63 4.65 4.68 4.70 4.73 4.75 4.77 4.80
----------------------------------------------------------------------------------------------------------------------------------
55 60 4.56 4.59 4.61 4.64 4.67 4.69 4.72 4.75 4.77 4.80 4.83 4.85
56 61 4.60 4.62 4.65 4.68 4.71 4.74 4.77 4.79 4.82 4.85 4.88 4.91
57 62 4.63 4.66 4.69 4.72 4.75 4.78 4.81 4.84 4.87 4.90 4.93 4.96
58 63 4.67 4.70 4.73 4.76 4.79 4.83 4.86 4.89 4.92 4.96 4.99 5.02
59 64 4.71 4.74 4.77 4.81 4.84 4.87 4.91 4.94 4.98 5.01 5.04 5.08
----------------------------------------------------------------------------------------------------------------------------------
60 65 4.75 4.78 4.81 4.85 4.86 4.92 4.96 4.99 5.03 5.07 5.10 5.14
61 66 4.79 4.82 4.86 4.89 4.93 4.97 5.01 5.04 5.08 5.12 5.16 5.20
62 67 4.83 4.86 4.90 4.94 4.98 5.02 5.06 5.10 5.14 5.18 5.22 5.26
63 68 4.87 4.91 4.94 4.98 5.02 5.07 5.11 5.15 5.19 5.24 5.28 5.33
64 69 4.91 4.95 4.99 5.03 5.07 5.12 5.16 5.20 5.25 5.30 5.34 5.39
----------------------------------------------------------------------------------------------------------------------------------
65 70 4.95 4.99 5.03 5.08 5.12 5.17 5.21 5.26 5.31 5.36 5.41 5.46
66 71 5.00 5.04 5.08 5.13 5.17 5.22 5.27 5.32 5.37 5.42 5.47 5.52
67 72 5.04 5.08 5.13 5.17 5.22 5.27 5.32 5.37 5.43 5.48 5.54 5.59
68 73 5.08 5.13 5.17 5.22 5.27 5.32 5.37 5.43 5.48 5.54 5.60 5.66
69 74 5.13 5.17 5.22 5.27 5.32 5.37 5.43 5.49 5.54 5.60 5.67 5.73
----------------------------------------------------------------------------------------------------------------------------------
70 75 5.17 5.22 5.27 5.32 5.37 5.43 5.48 5.54 5.60 5.67 5.73 5.80
71 76 5.22 5.27 5.32 5.37 5.42 5.48 5.54 5.60 5.66 5.73 5.80 5.87
72 77 5.26 5.31 5.37 5.42 5.48 5.53 5.60 5.66 5.72 5.79 5.86 5.93
73 78 5.31 5.36 5.41 5.47 5.53 5.59 5.65 5.72 5.78 5.85 5.93 6.00
74 79 5.36 5.41 5.46 5.52 5.58 5.64 5.71 5.77 5.84 5.92 5.99 6.07
----------------------------------------------------------------------------------------------------------------------------------
75 80 5.40 5.45 5.51 5.57 5.63 5.58 5.76 5.83 5.90 5.98 6.06 6.14
----------------------------------------------------------------------------------------------------------------------------------
OPTION 3-MONTHLY INSTALLMENTS-JOINT AND TWO-THIRDS TO SECONDARY PAYEE
AGE OF PRIMARY
PAYEE AGE OF SECONDARY PAYEE
----------------------------------------------------------------------------------------------------
MALE 57 58 59 60 61 62 63 64 65
----------------------------------------------------------------------------------------------------
FEMALE 62 63 64 65 66 67 68 69 70
----------------------------------------------------------------------------------------------------
50 55 $4.61 $4.63 $4.64 $4.66 $4.67 $4.68 $4.70 $4.71 $4.72
51 56 4.66 4.68 4.70 4.71 4.73 4.74 4.76 4.77 4.78
52 57 4.71 4.73 4.75 4.77 4.78 4.80 4.82 4.83 4.85
53 58 4.77 4.79 4.81 4.83 4.84 4.86 4.88 4.90 4.91
54 59 4.82 4.84 4.86 4.89 4.91 4.93 4.94 4.96 4.98
----------------------------------------------------------------------------------------------------
55 60 4.88 4.90 4.92 4.95 4.97 4.99 5.01 5.03 5.05
56 61 4.93 4.96 4.99 5.01 5.04 5.06 5.08 5.10 5.13
57 62 4.99 5.02 5.05 5.08 5.10 5.13 5.15 5.18 5.20
58 63 5.05 5.08 5.11 5.14 5.17 5.20 5.23 5.26 5.28
59 64 5.11 5.15 5.18 5.21 5.24 5.28 5.31 5.34 5.36
----------------------------------------------------------------------------------------------------
60 65 5.18 5.21 5.25 5.28 5.32 5.35 5.39 5.42 5.45
61 66 5.24 5.28 5.32 5.36 5.39 5.43 5.47 5.50 5.54
62 67 5.31 5.35 5.39 5.43 5.47 5.51 5.55 5.59 5.63
63 68 5.37 5.42 5.46 5.51 5.55 5.60 5.64 5.68 5.73
64 69 5.44 5.49 5.54 5.59 5.64 5.68 5.73 5.78 5.82
----------------------------------------------------------------------------------------------------
65 70 5.51 5.56 5.61 5.67 5.72 5.77 5.82 5.87 5.92
66 71 5.58 5.64 5.69 5.75 5.80 5.86 5.92 5.97 6.03
67 72 5.65 5.71 5.77 5.83 5.89 5.95 6.01 6.07 6.13
68 73 5.72 5.78 5.85 5.91 5.98 6.04 6.11 6.17 6.24
69 74 5.79 5.86 5.93 5.99 6.06 6.13 6.20 6.27 6.35
----------------------------------------------------------------------------------------------------
70 75 5.86 5.93 6.01 6.08 6.15 6.23 6.30 6.38 6.45
71 76 5.94 6.01 6.09 6.16 6.24 6.32 6.40 6.48 6.57
72 77 6.01 6.09 6.17 6.25 6.33 6.41 6.50 6.59 6.68
73 78 6.08 6.16 6.25 6.33 6.42 6.51 6.60 6.69 6.79
74 79 6.15 6.24 6.33 6.42 6.51 6.60 6.70 8.80 6.90
----------------------------------------------------------------------------------------------------
75 80 6.23 6.31 6.41 6.50 6.60 6.70 6.80 6.91 7.01
----------------------------------------------------------------------------------------------------
7.03