Flexible Premium Variable
Life Insurance Contract
Nonparticipating
Adjustable death benefit. Death proceeds payable at death of Insured prior to
maturity date. Cash surrender value, if any, payable on maturity date. Flexible
premiums payable until maturity date or prior death of Insured.
The amount and duration of the death benefit may increase or decrease as
described in this contract, depending on the investment experience of the
subaccounts.
The contract value of this contract may increase or decrease daily depending on
the investment experience of the subaccounts. There is no guaranteed minimum
contract value.
Kansas City Life Insurance Company will pay the proceeds of this contract
according to the provisions on this and the following pages, all of which are
part of this contract. This contract is a legal contract between you and Kansas
City Life Insurance Company. READ YOUR CONTRACT CAREFULLY.
Signed for Kansas City Life Insurance Company, a stock company, at its Home
Office, ▇▇▇▇ ▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇-9139.
C. ▇▇▇▇ ▇▇▇▇▇▇▇▇▇ R. ▇▇▇▇▇▇ ▇▇▇▇▇
Secretary President
10-Day Right To Examine Contract
Please examine this contract carefully. If you are not satisfied, you may return
the contract to us or to your agent within 10 days of its receipt. If returned,
the contract will be void from the beginning and any premium paid will be
refunded.
Contract Number
9999999
Insured
▇▇▇▇ ▇▇▇
Agency
0001
GUIDE TO CONTRACT PROVISIONS
Page
Section 1: Contract Data................................................3
Section 2: Definitions..................................................7
Section 3: Proceeds.....................................................8
Section 4: Premiums and Reinstatement..................................10
Section 5: Contract Change Provisions..................................11
Section 6: Contract Values.............................................12
Section 7: Loans.......................................................14
Section 8: Other Contract Provisions...................................15
Section 9: Control of Contract.........................................16
Section 10: The Variable Account........................................16
Section 11: Transfers...................................................18
Section 12: Payment of Proceeds.........................................18
A copy of the original application and any additional benefits provided by rider
or endorsement follow page 22.
Features of Your Variable Universal Life Insurance Contract
Your variable universal life insurance contract provides for flexible premium
payments and an adjustable death benefit. The contract values are affected by
such things as the investment experience of the subaccounts, the amount of your
premium payments, monthly contract charges and the monthly interest credited to
your fixed account values.
Some aspects of your variable universal life insurance contract are guaranteed,
including the maximum cost of insurance charges. Other aspects of your contract,
such as the investment experience of the subaccounts, the current interest rate
on the fixed account and current cost of insurance charges, are not guaranteed.
Fluctuations in the non-guaranteed elements of your contract will affect the
contract values and premium payments necessary to keep your contract in force.
Contract loans and partial surrenders may adversely affect the amount of death
benefit, contract values and premium payments necessary to keep your contract in
force.
SECTION 1: CONTRACT DATA CONTRACT NUMBER
9999999
BENEFICIARY INSURED
As stated in the application or in the ▇▇▇▇ ▇▇▇
OWNER INITIAL
The insured SPECIFIED AMOUNT
$100,000
ISSUE AGE CONTRACT DATE
35 Sept 01, 2000
SEX MATURITY DATE*
Male Sept 01, 2065
MINIMUM SPECIFIED AMOUNT
$100,000
GUARANTEED MONTHLY PREMIUM DURING
GUARANTEED PAYMENT PERIOD
$XX.XX**
GUARANTEED PAYMENT PERIOD AGENCY
First five years following the contract date. 0001
FIXED ACCOUNT GUARANTEED INTEREST RATE
4.0%
LOAN INTEREST RATE
6.0%
* Coverage may expire prior to the maturity
date if the cash surrender value or premium
payments are insufficient as described in
Section 4.8, Grace Period
** This amount will change if you increase
the specified amount or add any additional
benefits provided by riders.
SECTION 1: CONTRACT DATA (continued) DATE PREPARED:09/01/2000
INSURED CONTRACT NUMBER
▇▇▇▇ ▇▇▇ 9999999
PLANNED PREMIUM PAYMENT: $1,000.00 ANNUALLY
GUARANTEED MINIMUM DEATH BENEFIT RIDER PREMIUM:
For Option A: $XXX.XX monthly
MONTHLY
SPECIFIED RISK COST OF
FORM NO. BENEFIT DESCRIPTION AMOUNT CLASS INSURANCE
J155 Coverage Option A: Death $100,000* Non-Tobacco See Table D
Benefit equals the specified
amount at the time of death.
(Effective Sept 01, 2000)
R186 Guaranteed Minimum Death $100,000 Non-Tobacco -----------
Benefit Rider**
(Effective Sept 01, 2000)
R187 Additional Life Insurance Rider $100,000 Non-Tobacco See Rider
Rider
(Effective Sept 01, 2000)
R188 Other Insured Term Life $25,000 Non-Tobacco See Rider
Insurance Rider***
(Effective Sept 01, 2000)
* This is the initial specified amount on the contract date. The specified
amount may be changed as provided in Section 5, Contract Change Provisions.
** The expiration date of this rider is the contract anniversary on which the
Insured is age 65.
***The expiration date of this rider with respect to each Other Insured is the
earlier of the Insured's maturity date or the contract anniversary on which
that Other Insured is age 100.
SECTION 1: CONTRACT DATA (continued) DATE PREPARED:09/01/2000
INSURED CONTRACT NUMBER
▇▇▇▇ ▇▇▇ 9999999
PREMIUM EXPENSE CHARGE
6.35% deducted from each premium payment
MONTHLY EXPENSE CHARGE
$7.50 per month plus
Current
[0.00] per $1,000
Guaranteed
$.05 per $1,000
MORTALITY AND EXPENSE RISK CHARGE
0.50% annually
PARTIAL SURRENDER FEE
The partial surrender fee is the lesser of: (a) 2% of the amount
surrendered; or (b) $25.00.
SURRENDER CHARGE
TABLE OF SURRENDER CHARGES
CONTRACT AMOUNT AT
YEAR END OF YEAR
0-1 $1058.00
2 $2208.00
3 $2185.00
4 $2139.00
5 $2116.00
6 $2070.00
7 $2047.00
8 $2001.00
9 $1978.00
10 $1909.00
11 $1587.00
12 $1265.00
13 $966.00
14 $644.00
15 $322.00
16+ $0.00
There will not be a surrender charge after the end of the 15th contract year,
unless you have requested an increase in the specified amount. When a requested
increase in the specified amount is made, an additional surrender charge and
surrender charge period will apply for 15 years following the effective date of
the increase in specified amount. We will send you an updated surrender charge
schedule for the increase. The additional surrender charge will apply only if
the increase is in connection with an increase as provided in Section 5.2
Changes in Specified Amount, or under the terms of any increase rider if
applicable.
The surrender charges listed above are applicable at the end of each contract
year. After the first contract year the surrender charge between years will be
pro-rated. The charge for the entire first contract year will be level.
SECTION 1: CONTRACT DATA (continued) DATE PREPARED:09/01/2000
INSURED CONTRACT NUMBER
▇▇▇▇ ▇▇▇ 9999999
Investment Options
[ KCL Fixed Account
Subaccounts that invest in the Kansas City Life Variable Life Separate Account:
MFS Emerging Growth Series
MFS Research Series
MFS Total Return Series
MFS Utilities Series
MFS Global Governments Series
MFS Bond Series
American Century VP Capital Appreciation
American Century VP Income & Growth
American Century VP International
American Century VP Value
Federated American Leaders Fund II
Federated High Income Bond Fund II
Federated International Small Company Fund II
*Federated Prime Money Fund II
Dreyfus Appreciation Portfolio
Dreyfus Small Cap Portfolio
Dreyfus Stock Index Fund
The Dreyfus Socially Responsible Growth Fund, Inc.
▇ ▇ ▇▇▇▇▇▇ U.S. Disciplined Equity Portfolio
▇ ▇ ▇▇▇▇▇▇ Small Company Portfolio
Franklin Real Estate Fund (Class 2)
Franklin Small Cap Fund (Class 2)
▇▇▇▇▇▇▇▇▇ Developing Markets Securities Fund (Class 2)
▇▇▇▇▇▇▇▇▇ International Securities Fund (Class 2)
▇▇▇▇▇▇▇▇▇ International Securities Fund Class 2
Calamos Convertible Portfolio
▇▇▇▇▇▇▇▇ Capital Portfolio (Class 2)
▇▇▇▇▇▇▇▇ Communications and Information Portfolio (Class 2)
*The Federated Prime Money Fund II subaccount is referred to in this contract as
the money market sub-account.]
Section 2: Definitions
The following key words are used in the contract and are important in describing
it. Please refer back to these definitions as you read the contract.
2.1 Accumulation Unit
An accounting unit used to calculate the variable account value. It is a measure
of the net investment results of each of the subaccounts.
2.2 Age
The age on the Insured's last birthday as of each contract anniversary. This
contract is issued at the age last birthday shown in Section 1, Contract Data.
If the contract date falls on the birthday of the Insured, the age will be the
age the Insured reaches on the contract date.
2.3 Allocation Date
The date on which the initial net premium is allocated to the money market
sub-account(s). This date is the later of the date when all requirements are met
and your application is approved, or the date we receive the initial premium at
the Home Office.
2.4 Beneficiary
The beneficiary is the person you have designated in the application (or in the
last designation filed with us) to receive any proceeds payable under this
contract at the death of the Insured.
2.5 Cash Surrender Value
Equals the contract value at the time of surrender less applicable surrender
charges, and less any loan balance.
2.6 Contract Anniversary
The same day and month as the contract date each year that the contract remains
in force.
2.7 Contract Date
The date from which we compute contract months, years and anniversaries.
2.8 Contract Value
The sum of the variable account value and the fixed account value (including the
loan account value). These values are described in more detail in Section 6,
Contract Values.
2.9 Contract Year
Any period of twelve months starting with the contract date and each contract
anniversary thereafter.
2.10 Cost of Insurance
The charge we make based on the amount of pure insurance protection using the
current cost of insurance rates for this contract. It does not include the cost
of any additional benefits provided by riders.
2.11 Coverage Options
The coverage option selected determines the amount of death proceeds payable.
Three coverage options (A, B or C) are available. These options are described in
Section 3.2, Death Proceeds.
2.12 Fixed Account
An account that is part of our general account. The investment performance of
the variable account has no impact on the fixed account.
2.13 Fixed Account Value
The contract value in the fixed account.
2.14 The Insured
The person whose life is insured under this contract.
2.15 Maturity Date
The date shown in Section 1, Contract Data, when coverage terminates and we pay
any cash surrender value.
2.16 Monthly Anniversary Day
The day of each month when we make the monthly deduction for this contract. It
is the same day of each month as shown in the contract date (or the last day of
the month for those months not having such a day).
2.17 Monthly Deduction
The amount we deduct on the monthly anniversary day from the contract value to
pay the cost of insurance, monthly expense charges, and the cost of any
additional benefits provided by riders for the month beginning on that monthly
anniversary day.
2.18 Monthly Expense Charges
Charges we deduct from the contract value on each monthly anniversary day to
compensate us for the costs associated with administration of the contract. We
show this charge in Section 1, Contract Data.
2.19 Mortality and Expense Risk Charge
A charge we deduct from the assets of the subaccounts to compensate us for the
mortality and expense risks for this contract. We show this charge in Section 1,
Contract Data.
2.20 Net Investment Factor
The ratio of the sub-account performance of the current valuation day to the
immediately prior valuation day. The sub-account performance includes gains or
losses in the subaccounts, dividends paid, any capital gains or losses, any
taxes, and mortality and expense risk charges.
2.21 Net Premium
The premium payment minus the premium expense charge.
2.22 Non-Tobacco User
A rate class that defines an Insured who does not use tobacco products in any
form during the time period as defined in our underwriting guidelines.
2.23 Owner
The person entitled to exercise all rights and privileges provided in the
contract.
2.24 Planned Premium
The amount and frequency of premium payments you elected to pay in your last
application. This is only an indication of your preference of future premium
payments. You may change the amount and frequency of premium payments at any
time. Section 4.8, Grace Period, describes the amount of premium required to
keep your contract in force.
2.25 Premium Expense Charge
The amount we deduct from each premium payment. We show this charge in Section
1, Contract Data.
2.26 Proceeds
The total amount we are obligated to pay under the terms of this contract.
2.27 Reallocation Date
The date the contract value in the money market sub-account is allocated to the
subaccounts and to the fixed account based on the net premium payment allocation
percentages specified in the application. The reallocation date is 30 days after
the allocation date.
2.28 Specified Amount
The amount of insurance coverage on the Insured. The actual death benefit will
depend upon the coverage option in effect at the time of death less any loan
balance.
2.29 Subaccounts
The division of accounts making up the variable account. The assets of each
sub-account are invested in a corresponding portfolio of a designated mutual
fund.
2.30 Tobacco User
A rate class that defines an Insured who uses tobacco products in any form
during the time period as defined in our underwriting guidelines.
2.31 Valuation Day
Each day on which the New York Stock Exchange is open for business.
2.32 Valuation Period
The interval of time commencing at the close of business one valuation day and
ending at the close of business on the next valuation day.
2.33 Variable Account
The Kansas City Life Variable Life Separate Account. This is not part of our
general account. The variable account has subaccounts each of which is invested
in a corresponding portfolio of a designated mutual fund.
2.34 Variable Account Value
The total value of a contract allocated to subaccounts of the variable account.
2.35 We, Our, Us
Kansas City Life Insurance Company.
2.36 Written Notice/Written Request
A written notice or written request in a form satisfactory to us, which is
signed by the owner and received at the Home Office.
2.37 You, Your
The owner of this contract. The owner may be someone other than the Insured.
Section 3: Proceeds
3.1 Types of Proceeds and Method of Payment
There are various types of proceeds available under this contract. These
include:
o Death proceeds
o Maturity proceeds
o Surrender proceeds
o Partial surrender proceeds
We will pay death, maturity, or surrender proceeds either under a payment option
(as described in Section 12, Payment of Proceeds) or in a lump sum. The amount
of proceeds payable will vary by the type of proceeds and the form of payment
selected. We will only pay partial surrender proceeds as a lump sum.
We have the right to require that this contract be returned to us when we pay
death, maturity, or surrender proceeds.
To the extent permitted by law, proceeds will not be subject to any claims of
your creditors or the beneficiary's creditors.
3.2 Death Proceeds
If the Insured dies prior to the maturity date, we will pay the death proceeds
to the beneficiary. We will require proof that the Insured's death occurred
while this contract was in force.
We will pay the proceeds to the beneficiary in a lump sum unless you or the
beneficiary elect one of the payment options listed in Section 12, Payment of
Proceeds.
The amount of death proceeds payable upon the Insured's death is determined
according to the coverage option you have elected. The coverage option is shown
in Section 1, Contract Data.
Coverage Option A
The death benefit will be the greater of:
(1) the specified amount on the date of death; or
(2) the contract value on the date of death multiplied by the corridor
percentage as shown in the following table for the Insured's age on
the date of death.
Coverage Option B
The death benefit will be the greater of:
(1) the specified amount on the date of death, plus the contract value on
the date of death; or
(2) the contract value on the date of death multiplied by the corridor
percentage as shown in the following table for the Insured's age on
the date of death.
Coverage Option C
The death benefit will be the greater of:
(1) the specified amount on the date of death, plus the total premiums
paid, minus the total amount of partial surrenders; or
(2) the contract value on the date of death multiplied by the corridor
percentage as shown in the following table for the Insured's age on
the date of death
We will increase death benefits under any coverage option by any additional
benefits provided by riders in force at the Insured's death and any premiums
received after the date of death. We will also refund any cost of insurance
charge deducted for the period beyond the date of death. We will reduce death
benefits by any loan balance.
The purpose of this corridor percentage is to ensure that your contract will not
be disqualified as a life insurance contract under Section 7702 of the Internal
Revenue Code, as amended.
Corridor Percentages
------------ ---------------- ---------- ----------------
Corridor Corridor
Age Percentage Age Percentage
------------ ---------------- ---------- ----------------
0-40 250% 63 124%
41 243% 64 122%
42 236% 65 120%
43 229% 66 119%
44 222% 67 118%
45 215% 68 117%
46 209% 69 116%
47 203% 70 115%
48 197% 71 113%
49 191% 72 111%
50 185% 73 109%
51 178% 74 107%
52 171% 75-90 105%
53 164% 91 104%
54 157% 92 103%
55 150% 93 102%
56 146% 94 101%
57 142% 95 100%
58 138% 96 100%
59 134% 97 100%
60 130% 98 100%
61 128% 99 100%
62 126%
------------ ---------------- ---------- ----------------
If changes occur in the Internal Revenue Code which would disqualify the
contract as a life insurance contract, we have the right to amend the contract
in order to make it qualify under any new federal income tax laws.
We will pay interest on lump sum death proceeds from the date of the Insured's
death until the date of payment. Interest will be at an annual rate determined
by us, but never less than the rate required by the state in which this contract
is delivered.
3.3 Maturity Proceeds
Prior to the Insured's death you may elect to apply maturity proceeds under any
payment option described in Section 12, Payment of Proceeds. The maturity
proceeds will be equal to the cash surrender value.
3.4 Surrender Proceeds
We will pay proceeds of a full surrender as either a lump sum or under a payment
option as described in Section 12, Payment of Proceeds. Unless you specify
otherwise, we will pay full surrender proceeds as a lump sum. We will only pay
partial surrender proceeds as a lump sum.
The amount of proceeds payable upon a full surrender is the cash surrender value
as described in Section 6.8, Cash Surrender. The amount of proceeds payable
under the Partial Surrender Provision is defined in Section 6.9, Partial
Surrenders.
Section 4: Premiums and Reinstatement
4.1 Payment
You must pay your first premium when the contract is delivered. Subsequent
premiums may be paid at any time. There is no insurance until we receive the
first premium. All premiums after the first must be paid at the Home Office or
to a representative authorized to receive premiums. We will furnish a receipt
upon request.
4.2 Right to Refund
We will inform you if we receive a premium payment which affects the tax
qualification of this contract as described in Section 7702 of the Internal
Revenue Code, as amended. We will offer you the choice of a refund of the
premium, or the option to increase the specified amount subject to our
underwriting requirements.
If you choose to increase the specified amount and the Insured fails to meet our
underwriting requirements for the required increase in coverage, we have the
right to refund, with interest, any premium that would cause your contract to
violate Section 7702.
4.3 Planned Premium
The planned annual, semi-annual, quarterly or monthly premium payment is shown
in Section 1, Contract Data.
4.4 Amount and Frequency
Planned premiums may be paid at twelve, six or three month intervals. They may
also be paid monthly with our consent. You may change the amount and frequency
of planned premium at any time. However, in order to keep the contract in force
the premium you pay must be sufficient to keep your contract from lapsing as
described in Section 4.8, Grace Period. The actual amount and frequency of
premium payments affects the contract value and the amount and duration of
insurance.
We have the right to limit the amount of any increase in planned premium
payment.
4.5 Unscheduled Additional Premiums
You may pay unscheduled premiums at any time. We reserve the right to limit the
number and amount of unscheduled premium payments. We may require satisfactory
evidence of insurability prior to accepting any unscheduled premium payments.
Unscheduled premiums are subject to the requirements of Section 4.2, Right to
Refund, if such premium would require an increase in the death benefit under
Section 7702 of the Internal Revenue Code, as amended.
4.6 Guaranteed Payment Period
The period of time, shown in Section 1, Contract Data, during which one of the
following conditions must exist to prevent your contract from lapsing:
(1) the cash surrender value of the contract on a monthly anniversary day
must be sufficient to cover the monthly deduction; or
(2) total premiums paid must be at least equal to the sum of the
guaranteed monthly premiums for each month the contract has been in
force, plus any loan balance and the total amount of partial
surrenders, as provided in Section 4.8, Grace Period.
4.7 Guaranteed Monthly Premium
If you pay the guaranteed monthly premiums as due, your contract will not lapse
during the guaranteed payment period (assuming you do not make any contract loan
or partial surrenders). Section 4.8, Grace Period, describes this in detail.
The guaranteed monthly premium will change if you increase the specified amount,
or add or delete any additional benefits provided by riders.
4.8 Grace Period
The conditions which will result in your contract lapsing will vary, as follows,
depending on whether the guaranteed payment period, shown in Section 1, Contract
Data, has expired.
During the Guaranteed Payment Period The contract will lapse if there is no
cash surrender value and if the accumulated premiums paid as of each
monthly anniversary day are less than:
X + Y + Z
"X" is the guaranteed monthly premium shown in Section 1, Contract Data,
times the number of monthly anniversary days during which the contract has
been in force before any requested increases to the specified amount.
If requested increases to the specified amount have occurred, "X" will also
include each new guaranteed monthly premium after an increase times the
number of monthly anniversary dates during which each applicable increase
to the specified amount has been in force.
"Y" is the amount of any loan balance.
"Z" is the total amount of partial surrenders.
We will provide a grace period of 61 days from the date your contract
lapses to pay total premiums equal to or greater than X + Y + Z.
After the Guaranteed Payment Period
The contract will lapse if the cash surrender value on a monthly
anniversary day will not cover the monthly deduction for the month
beginning on that monthly anniversary day.
We will provide a grace period of 61 days from the date your contract
lapses to pay a premium that will provide enough cash surrender value to
cover the balance of the monthly deduction.
The contract will terminate without value if sufficient premium is not paid by
the end of the grace period.
Section 6, Contract Values, describes the cash surrender value and monthly
deduction. If the Insured dies during the grace period, we will pay the proceeds
reduced by any past due monthly deductions.
4.9 Reinstatement
If the grace period expires without sufficient premiums being paid to prevent
lapse, the contract may be reinstated within two years after the expiration of
the grace period. Your contract cannot be reinstated if it has been surrendered.
In order to reinstate we must receive:
(1) satisfactory evidence of insurability of the Insured; and
(2) payment of the premium amount which would have been sufficient to keep
the contract from lapsing, as described in Section 4.8, Grace Period,
with interest from the date of lapse; plus:
(a) two months of guaranteed monthly premium if the contract
lapsed during the guaranteed payment period; or
(b) three monthly deductions if the contract lapsed after the
guaranteed payment period.
Interest at the loan interest rate, shown in Section 1, Contract Data, on any
loan balance will be payable to the date of reinstatement. We will reinstate the
contract on the monthly anniversary day after the date we approve the
reinstatement.
If lapse occurs during the guaranteed payment period or during a time when any
surrender charges are applicable, the balance of the guaranteed payment and
surrender charge periods at the time of lapse will resume upon reinstatement.
If the contract lapses and it is reinstated, we cannot contest the reinstated
contract after the contract has been in force during the Insured's lifetime for
two years from the date of the reinstatement application.
Section 5: Contract Change Provisions
5.1 Right to Change
We require that the changes provided for in this section be made by written
notice or written request. These changes may be made at any time the contract is
in force.
5.2 Changes in Specified Amount
You may change the specified amount after the contract has been in force one
year and you may only make one change every twelve contract months. Specified
amount changes are subject to the conditions outlined below. Changes in
specified amount will be effective on the monthly anniversary day on or
following the date we approve your application.
Decreases in the Specified Amount
We will apply a decrease first against any increases to the specified
amount in the reverse order in which they were made. We will then apply any
remaining decrease against the initial specified amount.
We have the right to decline to make any specified amount decrease that we
determine would cause this contract to not qualify as life insurance under
applicable tax laws.
A decrease in the specified amount will not affect the surrender charge and
a decrease in the contract's specified amount will not decrease the
guaranteed monthly premium.
The specified amount remaining in force after any requested decrease may
not be less than the minimum specified amount shown in Section 1, Contract
Data.
Increases in the Specified Amount
A request for an increase in the specified amount will be subject to the
following requirements:
(1) an application satisfactory to us must be submitted;
(2) the Insured's age must be less than the current maximum issue age
for the contract;
(3) evidence of insurability;
(4) the increased monthly deduction will not cause the contract to
lapse, as described in Section 4.8, Grace Period, as of the
effective date of the increase; and
(5) any increase will be subject to our issue rules and limits at the
time of increase.
After an increase, additional surrender charges will apply to your
contract. We will send you a new surrender charge schedule.
5.3 Change in Coverage Option
You may change the coverage option any time after the contract has been in force
one year. Once you have changed the coverage option, you cannot change it again
for the next twelve months.
If the coverage option is Option B or Option C, it may be changed to Option A.
The new specified amount will be the death benefit as of the effective date of
the change. The effective date of change will be the monthly anniversary day on
or next following the date we receive and approve your application for change.
If the coverage option is Option A or Option B you may not change it to Option
C. Coverage Option C is only available at issue.
If the coverage option is Option A or Option C, you may change it to Option B
subject to satisfactory evidence of insurability. The specified amount does not
change. The new death benefit will be the specified amount plus the contract
value. The effective date of change will be the monthly anniversary day on or
following the date we approve your application for change.
We have the right to decline any coverage option change that we determine would
cause this contract to not qualify as life insurance under applicable tax laws.
5.4 Changing Your Contract
Any change to your contract that is not provided for in this Section must be
approved by us and signed by our President, Vice President, Secretary or
Assistant Secretary.
We will send you an amendment or endorsement for attachment to your contract
showing the approved change. No agent has the authority to make any changes or
waive any of the terms of your contract.
Section 6: Contract Values
6.1 Net Premium
The net premium is the premium payment received less the premium expense charge
shown in Section 1, Contract Data.
6.2 Contract Value
On the contract date the contract value equals:
(1) the initial net premium paid; less
(2) the monthly deduction, as defined in Section 2.17 of this contract.
On any day after the contract date, the contract value is equal to the fixed
account value (including the loan account value) plus the variable account
value.
6.3 Fixed Account Value
On the contract date the fixed account value equals:
(1) the portion of the net premium allocated to the fixed account; less
(2) the portion of the monthly deduction allocated to the fixed account.
On each valuation day the fixed account value will be equal to:
A + B + C - D - E - F
"A" is the fixed account value on the preceding valuation day plus interest from
the preceding valuation day to the date of calculation.
"B" is the portion of the net premiums allocated to the fixed account and
received since the preceding valuation day, plus interest from the date we
receive such net premiums to the date of calculation.
"C" is the amount of any transfers from the subaccounts to the fixed account
since the preceding valuation day, plus interest on such transferred amounts
from the effective dates of such transfers to the date of calculation.
"D" is the amount of any transfers from the fixed account, to the subaccounts
since the preceding valuation day, plus interest on such transferred amount from
the effective dates of such transfers to the date of calculation.
"E" is the amount of any partial surrenders from the fixed account since the
preceding valuation day, plus interest on these surrendered amounts from the
effective date of the partial surrenders to the date of calculation.
"F" is a pro-rata share of the monthly deduction, as described in Section 6.6,
Monthly Deduction, for the month beginning on that monthly anniversary day.
6.4 Interest Rate for Fixed Account Value
The value in the fixed account is guaranteed to accumulate at a minimum
effective annual interest rate which is shown in Section 1, Contract Data. We
may credit a rate in excess of the fixed account guaranteed interest rate shown
in Section 1, Contract Data while the contract is in force and before the
maturity proceeds have been paid.
We may change the interest rate credited to new deposits at any time. We will
not change the interest rate credited to funds in the fixed account more often
than once each year.
6.5 Variable Account Value
The variable account value is the sum of the values of the subaccounts under
this contract.
As of the allocation date the value of each sub-account equals:
(1) the portion of the initial net premium allocated to the sub-account;
less
(2) the pro-rata share of the monthly deduction allocated to the
subaccounts.
6.6 Monthly Deduction
We will make a monthly deduction from the contract value on each monthly
anniversary day equal to the sum of the following:
(1) the cost of insurance, as described in Section 6.7, Cost of Insurance;
(2) the monthly expense charges as shown in Section 1, Contract Data; and
(3) the cost of any additional benefits provided by riders for the
contract month.
6.7 Cost of Insurance
The cost of insurance on any monthly anniversary day is equal to:
Q x (R - S)
1000
"Q" is the cost of insurance rate .
"R" is the Insured's death benefit on that day discounted for one month at a
rate not less than the fixed account guaranteed interest rate, shown in Section
1, Contract Data.
"S" is the contract value, as described in Section 6.2, Contract Value.
We determine the cost of insurance rates ('Q' in the above formula) based on the
Insured's age, number of completed contract years, sex, and risk class. We
guarantee that these rates will never exceed the guaranteed cost of insurance
rates shown in Table D.
We will make any change in the current cost of insurance rates on a uniform
basis for Insureds of the same age, sex and risk class whose contracts have been
in force the same length of time. We will never increase the current cost of
insurance rates to recover losses incurred, or decrease them to distribute gains
realized by us prior to the change.
These guaranteed maximum rates shown in Table D are based on the 1980
Commissioners Standard Ordinary Smoker or Nonsmoker Mortality Table, age last
birthday. We will adjust the guaranteed maximum cost of insurance rates
appropriately for special risk classes.
6.8 Cash Surrender
You may surrender this contract for its cash surrender value at any time by
submitting a written notice or written request to us.
The cash surrender value of this contract is:
(1) the contract value of this contract at the time of surrender; less
(2) any applicable surrender charge; less
(3) any loan balance.
We will also refund any cost of insurance deducted for the period beyond the
date of contract surrender.
Section 1, Contract Data shows the surrender charges. These charges apply in the
first 15 contract years. Additional surrender charges will apply for 15 years
following any increases in specified amount.
Certain federal income tax consequences may apply to cash surrenders. You should
consult with your tax advisor before requesting any surrenders.
6.9 Partial Surrenders
You may surrender a portion of the contract value and have the proceeds paid to
you in a lump sum. A partial surrender must occur before the death of the
Insured and before the maturity date. The partial surrender amount will be the
proceeds plus the partial surrender fee shown in Section 1, Contract Data. The
minimum amount for a partial surrender is $500. The maximum partial surrender is
the cash surrender value, less $300. We will deduct the partial surrender amount
from the contract value on the day we receive written notice for the partial
surrender.
We will deduct the partial surrender amount from the subaccounts and/or the
fixed account according to your instructions. If you provide no instructions, we
will deduct the partial surrender amount from the subaccounts and/or the fixed
account on a pro-rata basis. In the event that the partial surrender amount
exceeds the sub-account(s) value and/or the fixed account value, we will process
the partial surrender for the amount available and contact you for further
instructions.
Under Options A, B and C, we will reduce the contract value by the partial
surrender amount.
In addition, for Option A we will reduce the specified amount by the partial
surrender amount minus the excess, if any, of the death benefit, over the
specified amount at the time the partial surrender is made. However, if the
partial surrender amount is less than or equal to the excess of the death
benefit over the specified amount, we will not reduce the specified amount. We
have the right to require that the specified amount remaining in force after any
partial surrender be at least equal to the minimum specified amount shown in
Section 1, Contract Data.
Certain federal income tax consequences may apply to partial surrenders from the
contract. You should consult with your tax advisor before requesting any partial
surrenders.
6.10 Time Period for Payment
We will normally pay out any partial surrender, cash surrender value, loan or
death benefit within seven days of receiving your written notice or written
request, or receipt and filing of due proof of death. However, we have the right
to suspend or delay the date of any surrender, partial surrender, loan or death
benefit payment from the subaccounts for any period during which:
(1) the New York Stock Exchange is closed, other than customary weekend
and holiday closings, or trading on the New York Stock Exchange is
restricted as determined by the Securities and Exchange Commission; or
(2) the Securities and Exchange Commission permits by an order the
postponement for the protection of contract owners; or
(3) The Securities and Exchange Commission determines that an emergency
exists that would make the disposal of securities held in the variable
account or the determination of the value of the variable account's
net assets not reasonably practicable.
For any surrender, partial surrender, loan or transfer from the fixed account,
we have the right to postpone making a payment to you for up to six months from
the date of written notice. If payment is not made within 30 days after receipt
of documentation necessary to complete the transaction (or such shorter period
required by a particular jurisdiction) we will add interest to the amount paid
from the date of receipt of documentation at 4% (or a higher rate if required by
a particular state).
6. 11 Extended Term Insurance
If your contract lapses, as described in Section 4.8, Grace Period, we will
apply the cash surrender value to continue the specified amount and any
additional benefits provided by riders for a portion of the next month.
The amount of extended term insurance is determined according to the coverage
option in effect as of the date insurance is extended under this option.
This provision will not continue the contract beyond the maturity date.
6.12 Basis of Computation
Guaranteed values and reserves are based on the 1980 Commissioners Standard
Ordinary Smoker or Non-Smoker Mortality Tables, age last birthday at the fixed
account guaranteed interest rate shown in Section 1, Contract Data.
Guaranteed fixed account values and reserves under this contract are equal to,
or greater than, the minimum values required by law of the state in which your
contract is delivered. Where required, we have filed a detailed statement of the
method of computing these values with the insurance department of that state.
The guaranteed fixed account values are based on the minimum fixed account
guaranteed interest rate as stated in Section 1, Contract Data, and the
guaranteed maximum cost of insurance rates as described in Section 6.7, Cost of
Insurance.
Section 7: Loans
7.1 Contract Loans
You may obtain a contract loan by submitting a written notice or written request
to us. This contract assigned to us is the only security needed.
When a loan is made, we will transfer an amount equal to the loan from the fixed
and variable accounts to the loan account. The loan account is part of the fixed
account, which is part of our general account. If you do not specify allocation
instructions in your loan application, we will withdraw the loan pro rata from
all subaccounts of the variable account having sub-account values and from the
fixed account.
▇▇▇▇▇▇▇ transferred to the loan account do not participate in the investment
experience of the fixed or variable account from which they were withdrawn.
Amounts in the loan account will earn interest at the minimum fixed account
guaranteed interest rate shown in Section 1, Contract Data. Different interest
rates may be applied to the loan account than the fixed account. Any interest
credited on loaned amounts will remain in the fixed account.
You may repay your loan balance in full or in part while your contract is in
force prior to the death of the Insured. Repayments must be clearly marked as
"loan repayments" or we will credit them as premiums. Each loan repayment will
result in a transfer of an amount equal to the loan repayment from the loan
account to the fixed and/or variable account. We will use your current premium
allocation schedule to allocate the loan repayments. We have the right to not
accept partial loan repayments for amounts less than $50.
A loan balance that exists at the end of the grace period may not be repaid
unless this contract is reinstated.
7.2 Amount of Loan Available
The amount of loan available will be equal to the cash surrender value of the
contract less any loan interest to the next contract anniversary.
7.3 Loan Interest
We will charge interest on any loan balance from the date of the loan at the
rate shown in Section 1, Contract Data. We may establish a lower rate for any
period for which the loan balance is outstanding.
Interest is payable at the end of each contract year and on the date the loan
balance is repaid. If interest is not received by the contract anniversary, we
will transfer the accrued loan interest from the fixed and variable accounts to
the loan account on a pro rata basis.
7.4 Loan Balance
Loan balance means all unpaid contract loans and accrued loan interest. We will
deduct any outstanding loan balance from the contract proceeds.
Your contract is terminated whenever your cash surrender value is no longer
positive. We will mail notice to your last known address recorded with us and to
the holder of any assignment of record at least 31 days before such termination.
Section 8: Other Contract Provisions
8.1 Contract
This contract and application and any supplemental applications are the entire
contract. This contract is issued in consideration of the application and
payment of the premiums. We will attach a copy of any application when we issue
the contract and will attach or endorse on the contract any supplemental
applications when the supplemental coverage becomes effective.
In the absence of fraud, all statements made in any applications either by you
or by the Insured will be considered representations and not warranties. We may
use statements to contest a claim or the validity of this contract only if they
are contained in an application.
8.2 Incontestability
After this contract has been in force during the Insured's lifetime for two
years from the contract date, we cannot contest this contract, except if the
contract lapses as described in Section 4.8, Grace Period.
We will not contest any increase in the specified amount after the increase has
been in force during the Insured's lifetime for two years following the
effective date of the increase.
8.3 Suicide
If the Insured dies by suicide, while sane or insane, within two years of the
contract date, the amount payable by us will be equal to the contract value less
any loan balance.
If the Insured dies by suicide, while sane or insane, within two years after the
effective date of any increase in the specified amount, the amount payable by us
associated with such increase will be limited to the cost of insurance
associated with the increase.
8.4 Age and Sex
If, while this contract is in force and the Insured is alive, it is determined
that the age or sex of the Insured as stated in Section 1, Contract Data is not
correct, we will adjust the contract value under this contract. The adjustment
will be the difference between the following two amounts accumulated at the
fixed account guaranteed interest rate annually. The two amounts are:
(1) the cost of insurance deductions that have been made; and
(2) the cost of insurance deductions that would have been made at the
correct age and sex.
If, after the death of the Insured and while this contract is in force, it is
determined that the age or sex of the Insured as stated in Section 1, Contract
Data is not correct, the death benefit will be the net amount at risk that the
most recent cost of insurance deductions at the correct age and sex would have
provided plus the contract value on the date of death less any loan balance.
8.5 Termination of Coverage
Coverage under this contract terminates when any of the following events occur:
(1) you request that coverage terminate;
(2) the Insured dies;
(3) the contract reaches the maturity date; or
(4) the contract lapses, as described in Section 4.8, Grace Period, and
the grace period ends without sufficient premiums being paid.
8.6 Modifications
Upon notice to you, we may modify the contract, but only if such modification is
necessary to:
(1) make the contract or the variable account comply with any law or
regulation issued by a governmental agency to which we are subject; or
(2) assure continued qualification of the contract under the Internal
Revenue Code or other federal or state laws relating to variable life
contracts; or
(3) reflect a change in the operation of the variable account; or
(4) provide additional variable account and/or fixed accumulation options.
We have the right to modify the contract as necessary to attempt to prevent the
contract owner from being considered the owner of the assets of the variable
account. In the event of any such modification, we will issue an appropriate
endorsement to the contract, if required.
8.7 Nonparticipating
This contract is nonparticipating. It will not participate in any of our
profits, losses or surplus earnings.
8.8 Annual Report
At least annually we will send you a report showing the following:
(1) the contract value;
(2) the cash surrender value; and
(3) any other information required by law or regulation.
Upon receiving your written notice or written request, we will send you a report
at any other time during the year for a reasonable charge as determined by us.
Section 9: Control of Contract
9.1 Ownership
The Insured is the owner unless otherwise provided in the application. As owner,
you may exercise every right provided by your contract. These rights and
privileges end at the Insured's death.
The consent of the beneficiary is required to exercise these rights if you have
waived the right to change the beneficiary.
9.2 Change of Ownership
You may change the ownership of this contract by giving written notice. The
change will be effective on the date your request was signed, but will have no
effect on any payment made or other action taken by us before we receive it. We
may require that the contract be submitted for endorsement to show the change.
9.3 Assignment
An assignment is a transfer of some or all of your rights under this contract.
No assignment will be binding on us unless made in writing and filed at our Home
Office. We assume no responsibility for the validity or effect of any
assignment.
9.4 Beneficiary
The beneficiary is shown on the application or in the last beneficiary
designation filed with us. Death proceeds will be paid to the beneficiary except
as provided in this Section.
If any beneficiary dies before the Insured, that beneficiary's interest will
pass to any other beneficiaries according to their respective interests.
If all beneficiaries die before the Insured, we will pay the death proceeds to
you, if living, otherwise to your estate or legal successors.
Unless you have waived the right to do so, you may change the beneficiary by
filing a written notice or written request in a form satisfactory to us. In
order to be effective, the request for change of beneficiary must be signed
while your contract is in force and the Insured is living. The change will be
effective on the date your request was signed but will have no effect on any
payment made or other action taken by us before we receive it.
The interest of any beneficiary will be subject to:
(1) any assignment of this contract which is binding on us; and
(2) any optional settlement agreement in effect at the Insured's death.
9.5 Simultaneous Death of Beneficiary and Insured
We will pay death proceeds as though the beneficiary died before the Insured if:
(1) the beneficiary dies at the same time as or within 15 days of the
Insured's death; and
(2) we have not paid the proceeds to the beneficiary within this 15-day
period.
Section 10: The Variable Account
10.1 General Description
The name of the variable account is the Kansas City Life Variable Life Separate
Account. The income, gains and losses (whether or not realized) from assets
allocated to the variable account are credited or charged against the variable
account without regard to our other income, gains or losses. The portion of the
assets of the variable account equal to the reserves and other contract
liabilities with respect to the variable account will not be chargeable with
liabilities arising out of any other business we may conduct.
The assets of the variable account are segregated by investment options, thus
establishing a series of subaccounts within the variable account.
When permitted by law, we reserve the right to:
(1) create new separate accounts;
(2) combine separate accounts;
(3) remove, combine or add subaccounts and make the new subaccounts
available to you at our discretion;
(4) substitute shares of another portfolio of the funds or shares of
another investment company for those of the funds;
(5) add new portfolios to the funds;
(6) de-register the variable account under the Investment Company Act of
1940 if registration is no longer required;
(7) make any changes required by the Investment Company Act of 1940; and
(8) operate the variable account as a managed investment company under the
Investment Company Act of 1940 or any other form permitted by law.
If a change is made, we will send you a revised prospectus and any notice
required by law. If required, we would first seek the approval of the Securities
and Exchange Commission, and when required, the appropriate state regulatory
authorities before making a change in the investment options.
10.2 Subaccounts
The subaccounts are separate investment accounts that together make up the
variable account. The assets of each sub-account are invested in a corresponding
portfolio of a designated mutual fund. They are named in Section 1, Contract
Data of the contract.
Sub-account values will fluctuate in accordance with the investment experience
of the applicable portfolio of the fund held within the sub-account.
The sub-account value is equal to the number of accumulation units credited to
the sub-account times the appropriate accumulation unit value.
The number of accumulation units to be purchased or redeemed in a transaction is
found by dividing:
(1) the dollar amount of the transaction; by
(2) the sub-account's unit value for the valuation period for that
transaction.
The number of units in any sub-account will be increased at the end of the
valuation period by:
(1) any net premiums allocated to the sub-account during the current
valuation period: and
(2) any transfers to the sub-account from another sub-account or from the
fixed account during the current valuation period.
The number of units in any sub-account will be decreased at the end of the
valuation period by:
(1) any amounts transferred from the sub-account to another sub-account or
the fixed account;
(2) amounts surrendered during the current valuation period.
The number of units in any sub-account will also be reduced on each monthly
anniversary day by a pro-rata share of the monthly deduction. The monthly
deduction will reduce the sub-account units in proportion to each sub-account's
value to the entire contract value.
The value of an accumulation unit for each of the subaccounts was arbitrarily
set at $10 when the first investments were bought. The value for any later
valuation period is equal to:
A x B
"A" is equal to the sub-account's accumulation unit value for the end of the
immediately preceding valuation day.
"B" is equal to the net investment factor for the most current valuation day.
The net investment factor equals:
X - Z
Y
"X" equals the sum of:
(1) the net asset value per accumulation unit held in the sub-account at
the end of the current valuation day; plus
(2) the per accumulation unit amount of any dividend, or capital gain
distribution on shares held in the sub-account during the current
valuation day; less
(3) the per accumulation unit amount of any capital loss distribution on
shares held in the sub-account during the current valuation day; less
(4) the per accumulation unit amount of any taxes or any amount set aside
during the valuation day as a reserve for taxes.
"Y" equals the net asset value per accumulation unit held in the sub-account as
of the end of the immediately preceding valuation day.
"Z" equals the charges deducted from the sub-account on each valuation day for
the mortality and expense risk charge.
We deduct the mortality and expense risk charge from each of the subaccounts on
each valuation day. This charge compensates us for assuming the mortality and
expense risks under this contract. These charges are shown in Section 1,
Contract Data, of the contract.
The value of a sub-account may increase, decrease or remain the same.
10.3 Allocations
This contract provides investment options for the amount in the contract value.
The initial premium allocation percentages are indicated in the application for
this contract. These percentages will also apply to subsequent premium
allocations until you change them. Such allocation percentages may be changed by
written notice.
Allocation percentages must be zero or a whole number not greater than 100. The
sum of the premium allocation percentages must equal 100.
We have the right to limit the number of sub-account allocations in effect at
any one time.
On the allocation date we will allocate the contract value to a money market
sub-account. We will also allocate any subsequent premiums that are received
from this time until the reallocation date to a money market sub-account. On the
reallocation date, contract value in the money market sub-account will be
allocated to the subaccounts and to the fixed account based on the premium
payment allocation percentages in the contract application. After the
reallocation date, planned periodic premiums and unscheduled premiums will be
allocated as requested on the valuation day they are received by the Home
Office.
Section 11: Transfers
11.1 Transfer Fees
Six transfers per year may be made from subaccounts and the fixed account free
of charge. Any unused free transfers do not carry over to the next contract
year. We will charge a $25 transfer fee on any additional transfers during a
contract year. For the purpose of assessing a fee, we consider each written
notice or written request or telephone request to be one transfer. We will
deduct the processing fee from the amount being transferred, or from the
remaining contract value, according to your instructions.
11.2 Transfers From Subaccounts
After the right to examine period and reallocation date and prior to the
maturity date, you may transfer all or a part of the value in any sub-account of
the variable account to one or more of the subaccounts of the variable account
or to the fixed account. The minimum amount that you may transfer is the lesser
of:
(1) $250; or
(2) the total value in that sub-account on that date.
We will treat any transfer that would reduce the amount in a sub-account below
$250 as a transfer request for the entire amount in that sub-account.
A transfer fee may apply as described in Section 11.1, Transfer Fees.
An excessive number of transfers, including short-term "market timing"
transfers, may adversely affect the performance of the underlying fund in which
a sub-account invests. If, in our sole opinion, a pattern of excessive transfers
develops, we have the right not to process a transfer request. We also have the
right not to process a transfer request when the sale or purchase of shares of a
fund is not reasonably practicable due to actions taken or limitations imposed
by the fund.
We may suspend or modify this transfer privilege at any time.
11.3 Transfers From the Fixed Account
At your request you may also transfer an amount from the unloaned value in the
fixed account to one or more subaccounts of the variable account. We must
receive the request in writing or other form acceptable to us. You may make only
one transfer from the fixed account each contract year.
We will not transfer more than 25% of the unloaned fixed account value, unless
the balance after the transfer is less than $250, in which case the entire
amount will be transferred.
A transfer fee may apply as described in Section 11.1, Transfer Fees.
We may suspend or modify this transfer privilege at any time.
Section 12: Payment of Proceeds
12.1 Payment Options
You may apply death benefit, maturity or full surrender proceeds of $2,000 or
more which are payable under this contract to any of the following options:
Option 1. Interest Payments
We will make interest payments to the payee annually or monthly as elected.
We will pay interest on the proceeds at the guaranteed rate of 3.0% per
year and this may be increased by additional interest paid annually. The
proceeds and any unpaid interest may be withdrawn in full at any time.
Option 2. Installments of a Specified Amount
We will make annual or monthly payments until the proceeds plus interest
are fully paid. We will pay interest on the proceeds at the guaranteed rate
of 3.0% per year and this may be increased by additional interest. The
present value of any unpaid installments may be withdrawn at any time.
Option 3. Installments for a Specified Period
Payment of the proceeds may be made in equal annual or monthly payments for
a specified number of years. We will pay interest on the proceeds at the
guaranteed rate of 3.0% per year and this may be increased by additional
interest. The present value of any unpaid installments may be withdrawn at
any time. The amount of each payment is shown in Table A.
Option 4. Life Income
We will pay an income during the payee's lifetime. You may choose a minimum
guaranteed payment period which guarantees continued payments for the
minimum amount of time selected, even if the payee dies before we make the
guaranteed number of payments. We will continue payments under the
Installment Refund Option until the total income payments paid equal the
proceeds applied. The amount of each payment is shown in Table B.
Option 5. Joint and Survivor Income
We will pay an income during the lifetime of two persons and will continue
to pay the same income as long as either person is living. The minimum
guaranteed payment period will be ten years. The amount of each payment is
shown in Table C.
If the payout rates in use by us at the time proceeds become payable are more
favorable than those shown in Options 4 and 5, we will provide a life income
using the more favorable rates.
These options are supported by our general account. The payments will not
reflect the investment experience of the variable account.
12.2 Payee
The payee is the person receiving proceeds under a payment option. The payee can
be you, the Insured or a beneficiary. We will require satisfactory proof of the
payee's age under Options 4 and 5.
The contingent payee is the person named to receive proceeds if the payee is not
alive.
12.3 Minimum Payments
The payment under any payment option must be at least $50. We may make payments
less frequently so that each payment is at least $50.
12.4 Choice of Options
You may choose an option by written notice during the Insured's lifetime. If a
payment option is not in effect at the Insured's death, the beneficiary may make
a choice.
12.5 Availability of Options
We have the right to restrict these options if you designate an executor,
administrator, trustee, corporation, partnership or association as the payee.
12.6 Operative Date
The first payment will be payable on the payment mode following the date
proceeds become payable.
12.7 Death of Payee
At the death of the payee, any payments remaining will be paid according to the
terms of the payment option chosen, unless the contingent payee elects in
writing to receive the present value of any remaining guaranteed payments in a
lump sum.
If a contingent payee has not been named or does not survive the payee, the
following amounts will be paid in one sum to the estate of the payee:
(1) any amount left on deposit under Option 1; and
(2) the present value of any remaining guaranteed payments under Options 2
through 5.
If you have not named a contingent payee, or if every contingent payee named by
you dies before the payee, you may, by written notice, name a new contingent
payee. The new contingent payee will receive any amount that would otherwise
have been payable to the payee's estate.
12.8 Claims of Creditors
To the extent permitted by law, proceeds will not be subject to any claims of a
payee's creditors.
TABLE A - INSTALLMENT OPTION*
for Each $1,000 of Proceeds Applied
------------- ---------- ----------- ---------- ----------- ---------- ---------- ----------- ----------
Term of Term of Term of
Years Annual Monthly Years Annual Monthly Years Annual Monthly
------------- ---------- ----------- ---------- ----------- ---------- ---------- ----------- ----------
1 $1000.00 $84.47 11 $104.93 $8.86 21 $62.98 $5.32
2 507.39 42.86 12 97.54 8.24 22 60.92 5.15
3 343.23 28.99 13 91.29 7.71 23 59.04 4.99
4 261.19 22.06 14 85.95 7.26 24 57.33 4.84
5 211.99 17.91 15 81.33 6.87 25 55.76 4.71
6 179.22 15.14 16 77.29 6.53 26 54.31 4.59
7 155.83 13.16 17 73.74 6.23 27 52.97 4.47
8 138.31 11.68 18 70.59 5.96 28 51.74 4.37
9 124.69 10.53 19 67.78 5.73 29 50.60 4.27
10 113.82 9.61 20 65.26 5.51 30 49.53 4.18
------------- ---------- ----------- ---------- ----------- ---------- ---------- ----------- ----------
TABLE B - LIFE INCOME OPTIONS*
Monthly Income for Each $1,000 of Proceeds Applied
------------- --------------------------------------------- --------------------------------------------
MALE FEMALE
Age Minimum Guaranteed Payment Period Minimum Guaranteed Payment Period
---------- ----------- ---------- ----------- ---------- ---------- ----------- ----------
Install- Install-
120 240 ment 120 240 ment
None Months Months Refund None Months Months Refund
------------- ---------- ----------- ---------- ----------- ---------- ---------- ----------- ----------
50 $4.23 $4.19 $4.06 $4.05 $3.89 $3.87 $3.81 $3.80
51 4.31 4.26 4.11 4.11 3.95 3.93 3.86 3.84
52 4.38 4.33 4.17 4.17 4.01 3.98 3.91 3.89
53 4.46 4.40 4.22 4.23 4.07 4.04 3.96 3.95
54 4.55 4.48 4.28 4.29 4.13 4.11 4.01 4.00
55 4.63 4.56 4.33 4.36 4.20 4.17 4.07 4.06
56 4.73 4.65 4.39 4.43 4.28 4.24 4.12 4.12
57 4.83 4.74 4.45 4.51 4.36 4.32 4.18 4.18
58 4.94 4.83 4.51 4.59 4.44 4.40 4.24 4.25
59 5.05 4.93 4.57 4.67 4.53 4.48 4.30 4.32
60 5.17 5.04 4.63 4.75 4.63 4.57 4.37 4.39
61 5.30 5.15 4.69 4.85 4.73 4.66 4.43 4.47
62 5.44 5.27 4.75 4.94 4.84 4.76 4.50 4.55
63 5.60 5.39 4.81 5.04 4.95 4.86 4.56 4.64
64 5.76 5.52 4.86 5.15 5.08 4.97 4.63 4.73
65 5.93 5.65 4.92 5.26 5.21 5.09 4.69 4.83
66 6.12 5.79 4.97 5.37 5.35 5.21 4.76 4.93
67 6.32 5.94 5.02 5.50 5.50 5.34 4.82 5.04
68 6.53 6.09 5.06 5.62 5.66 5.47 4.88 5.15
69 6.76 6.24 5.11 5.76 5.84 5.61 4.94 5.27
70 7.00 6.40 5.14 5.90 6.02 5.76 5.00 5.39
71 7.26 6.56 5.18 6.04 6.23 5.92 5.05 5.53
72 7.53 6.72 5.21 6.20 6.45 6.08 5.10 5.67
73 7.83 6.88 5.24 6.36 6.70 6.25 5.14 5.81
74 8.15 7.05 5.26 6.53 6.96 6.43 5.18 5.97
75 8.49 7.22 5.28 6.70 7.24 6.61 5.22 6.14
------------- ---------- ----------- ---------- ----------- ---------- ---------- ----------- ----------
TABLE C - JOINT AND SURVIVOR OPTION*
Monthly Income - Ten Year Guaranteed Payment Period
for Each $1,000 of Proceeds Applied
--------------------- ----------------------------------------------------------------------------------
Male Female Age
Age 50 55 60 65 70 75
--------------------- ------------- ------------- ------------- ------------- ------------- ------------
50 $3.31 $3.37 $3.43 $3.49 $3.53 $3.56
55 3.47 3.55 3.63 3.70 3.76
60 3.68 3.80 3.91 4.00
65 3.97 4.15 4.31
70 4.41 4.68
75 5.08
--------------------- ------------- ------------- ------------- ------------- ------------- ------------
*Amounts not shown for available options will be furnished on request.
Table D-Guaranteed Monthly Cost of Insurance Rates
Table of Guaranteed Maximum Monthly Cost of
Insurance Rates per $1,000--Tobacco User Rates
------------- ------------ ------------ --------- ------------- ------------- --------- -------------- -------------
Age Male Female Age Male Female Age Male Female
------------- ------------ ------------ --------- ------------- ------------- --------- -------------- -------------
15 $ .14669 $ .08001 44 $ .49942 $ .37014 73 $ 6.14840 $ 3.30170
16 $ .16336 $ .08418 45 $ .54613 $ .39849 74 $ 6.71732 $ 3.69191
17 $ .17503 $ .09001 46 $ .59452 $ .42768 75 $ 7.32578 $ 4.11856
18 $ .18420 $ .09251 47 $ .64709 $ .45771 76 $ 7.94851 $ 4.57248
19 $ .19004 $ .09501 48 $ .70383 $ .49024 77 $ 8.57457 $ 5.04701
20 $ .19337 $ .09751 49 $ .76559 $ .52611 78 $ 9.20819 $ 5.54895
21 $ .19337 $ .09918 50 $ .83403 $ .56449 79 $ 9.87149 $ 6.09611
22 $ .19004 $ .10168 51 $ .91166 $ .60537 80 $10.58673 $ 6.70972
23 $ .18670 $ .10418 52 $ .99933 $ .65209 81 $11.37460 $ 7.40696
24 $ .18170 $ .10668 53 $ 1.09871 $ .70383 82 $12.24905 $ 8.20088
25 $ .17586 $ .10918 54 $ 1.20729 $ .75640 83 $13.19604 $ 9.11908
26 $ .17253 $ .11334 55 $ 1.32342 $ .81066 84 $14.18421 $10.11631
27 $ .17086 $ .11668 56 $ 1.44626 $ .86408 85 $15.18033 $11.17773
28 $ .17086 $ .12084 57 $ 1.57581 $ .91416 86 $16.16033 $12.29516
29 $ .17336 $ .12585 58 $ 1.71210 $ .96343 87 $17.16810 $13.45788
30 $ .17753 $ .13169 59 $ 1.85845 $ 1.01603 88 $18.22021 $14.67216
31 $ .18336 $ .13669 60 $ 2.02158 $ 1.07866 89 $19.26842 $15.93752
32 $ .19087 $ .14252 61 $ 2.20568 $ 1.15717 90 $20.32834 $17.34402
33 $ .20087 $ .15002 62 $ 2.41331 $ 1.25825 91 $21.43307 $18.86254
34 $ .21255 $ .15836 63 $ 2.64531 $ 1.38107 92 $22.71710 $20.55222
35 $ .22672 $ .16753 64 $ 2.89921 $ 1.51813 93 $24.36889 $22.54368
36 $ .24339 $ .18170 65 $ 3.16834 $ 1.66276 94 $26.62993 $25.22305
37 $ .26424 $ .19837 66 $ 3.45019 $ 1.80994 95 $30.20740 $29.24955
38 $ .28758 $ .21755 67 $ 3.74228 $ 1.95213 96 $36.35803 $35.72205
39 $ .31427 $ .23839 68 $ 4.04883 $ 2.09605 97 $47.21179 $46.86829
40 $ .34512 $ .26340 69 $ 4.38161 $ 2.25256 98 $66.20701 $66.09430
41 $ .37847 $ .29008 70 $ 4.74912 $ 2.43760 99 $83.33333 $83.33333
42 $ .41517 $ .31677 71 $ 5.16234 $ 2.67212
43 $ .45521 $ .34345 72 $ 5.62985 $ 2.95956
------------- ------------ ------------ --------- ------------- ------------- --------- -------------- -------------
Table of Guaranteed Maximum Monthly Cost of
Insurance Rates per $1,000 - Non-Tobacco User Rates
------------ ------------ ------------ -------- ------------- ------------- -------- ------------- --------------
Age Male Female Age Male Female Age Male Female
------------ ------------ ------------ -------- ------------- ------------- -------- -------------
------------ ------------ ------------ -------- ------------- ------------- -------- ------------- --------------
0 $ .21907 $ .15680 34 $ .13752 $ .12001 68 $ 2.49956 $ 1.55491
1 $ .08585 $ .07001 35 $ .14419 $ .12585 69 $ 2.75590 $ 1.69454
2 $ .08209 $ .06667 36 $ .15169 $ .13419 70 $ 3.04592 $ 1.85845
3 $ .08044 $ .06500 37 $ .16170 $ .14419 71 $ 3.37720 $ 2.05840
4 $ .07709 $ .06376 38 $ .17253 $ .15502 72 $ 3.75991 $ 2.30362
5 $ .07335 $ .06208 39 $ .18420 $ .16670 73 $ 4.19334 $ 2.59756
6 $ .06917 $ .06041 40 $ .19837 $ .18086 74 $ 4.67004 $ 2.93610
7 $ .06500 $ .05917 41 $ .21338 $ .19587 75 $ 5.18002 $ 3.31428
8 $ .06250 $ .05792 42 $ .22922 $ .21087 76 $ 5.71919 $ 3.72382
9 $ .06125 $ .05708 43 $ .24673 $ .22588 77 $ 6.28340 $ 4.16309
10 $ .06250 $ .05708 44 $ .26590 $ .24089 78 $ 6.87613 $ 4.63892
11 $ .06750 $ .05874 45 $ .28758 $ .25757 79 $ 7.51607 $ 5.16656
12 $ .07667 $ .06125 46 $ .31093 $ .27508 80 $ 8.22375 $ 5.76724
13 $ .08918 $ .06458 47 $ .33594 $ .29426 81 $ 9.01810 $ 6.45895
14 $ .10334 $ .06874 48 $ .36346 $ .31427 82 $ 9.91569 $ 7.25729
15 $ .11334 $ .07168 49 $ .39348 $ .33678 83 $10.91280 $ 8.15937
16 $ .12335 $ .07501 50 $ .42768 $ .36180 84 $11.99040 $ 9.15556
17 $ .13085 $ .07751 51 $ .46689 $ .38932 85 $13.12418 $10.23537
18 $ .13585 $ .08001 52 $ .51193 $ .42101 86 $14.29994 $11.39164
19 $ .13919 $ .08251 53 $ .56365 $ .45604 87 $15.49991 $12.62319
20 $ .14002 $ .08418 54 $ .62122 $ .49191 88 $16.71910 $13.93142
21 $ .13835 $ .08584 55 $ .68547 $ .53028 89 $17.97489 $15.32721
22 $ .13585 $ .08668 56 $ .75557 $ .56865 90 $19.28573 $16.82248
23 $ .13252 $ .08834 57 $ .82986 $ .60620 91 $20.68242 $18.45266
24 $ .12919 $ .09001 58 $ .91250 $ .64374 92 $22.21791 $20.28063
25 $ .12502 $ .09168 59 $1.00518 $ .68630 93 $24.04370 $22.43826
26 $ .12252 $ .09418 60 $1.10873 $ .73637 94 $26.50347 $25.22305
27 $ .12084 $ .09584 61 $ 1.22400 $ .79814 95 $30.20740 $29.24955
28 $ .12001 $ .09834 62 $ 1.35684 $ .87493 96 $36.35803 $35.72205
29 $ .12001 $ .10168 63 $ 1.50727 $ .96927 97 $47.21179 $46.86829
30 $ .12084 $ .10418 64 $ 1.67447 $ 1.07533 98 $66.20701 $66.09430
31 $ .12335 $ .10751 65 $ 1.85761 $ 1.18974 99 $90.90909 $90.90909
32 $ .12669 $ .11084 66 $ 2.05589 $ 1.30838
33 $ .13169 $ .11501 67 $ 2.26846 $ 1.42954
------------ ------------ ------------ -------- ------------- ------------- -------- ------------- --------------
Flexible Premium Variable
Life Insurance Contract
Nonparticipating
Adjustable death benefit. Death proceeds payable at death of Insured prior to
maturity date. Cash surrender value, if any, payable on maturity date. Flexible
premiums payable until maturity date or prior death of Insured.
If you have any questions concerning this contract or if anyone suggests that
you change or replace this contract, please contact your Kansas City Life agent
or the Home Office of the Company.