GLA111 Page 4 (2/00)
GLENBROOK LIFE AND ANNUITY COMPANY
(herein called "we" or "us")
Amendment to Master Policy for Enhanced Death and Income Benefit Combination
Rider II
The Enhanced Death and Income Benefit Combination Rider, if selected, effects
the following changes to the Owner's Contract:
As used in this rider, "Contract" means the Contract or Certificate to which
this rider is attached.
For purposes of this benefit "Rider Date" is the date the Enhanced Death and
Income Benefit Combination rider was made a part of the Owner's Contract.
The following provision is added to the Master Policy.
Enhanced Death Benefit The following is added to the Death Benefit provision.
If the Owner is a living individual, the Enhanced Death Benefit applies only to
the death of the Owner. If the Owner is not a living individual, the Enhanced
Death Benefit applies only to the death of the annuitant.
The Death Benefit will be the greater of the values stated in the Contract, or
the value of the Enhanced Death Benefit.
The Enhanced Death Benefit is equal to the greater of the Enhanced Death Benefit
A or Enhanced Death Benefit B. The Enhanced Death Benefit will cease on the date
we determine the value of the Death Benefit.
Enhanced Death Benefit A
After the Rider Date, the Enhanced Death Benefit A is equal to the initial
purchase payment. After the Rider Date, the Enhanced Death Benefit A is
recalculated when a purchase payment or withdrawal is made or on a Contract
anniversary as follows:
1. For purchase payments, the Enhanced Death Benefit A is equal to the
most recently calculated Enhanced Death Benefit A plus the purchase
payment.
2. For withdrawals, the Enhanced Death Benefit A is equal to the most
recently calculated Enhanced Death Benefit A reduced by a withdrawal
adjustment defined below.
3. On each Contract anniversary, the Enhanced Death Benefit A is equal to
the greater of the Contract Value or the most recently calculated
Enhanced Death Benefit A.
In the absence of any withdrawals or purchase payments, the Enhanced Death
Benefit A will be the greatest of all Contract anniversary Contract Values
on or prior to the date we calculate the Death Benefit.
The Enhanced Death Benefit A will be recalculated for purchase payments,
withdrawals and on Contract anniversaries until the oldest owner or the
annuitant, if the owner is not a living individual, attains age 85.
After age 85, the Enhanced Death Benefit A will be recalculated only for
purchase payments and withdrawals.
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Enhanced Death Benefit B
The Enhanced Death Benefit B is equal to total purchase payments made
reduced by a withdrawal adjustment. Each purchase payment and each
withdrawal adjustment will accumulate daily at a rate equivalent to 5% per
year until the earlier of:
1. the date we determine the Death Benefit, or
2. the first day of the month following the oldest owner's or, if the
owner is not a living individual, the annuitant's 85th birthday.
The Enhanced Death Benefit B will never be greater than the maximum death
benefit allowed by any nonforfeiture laws which govern the Contract.
Withdrawal Adjustment
The withdrawal adjustment is equal to (a) divided by (b), with the result
multiplied by (c), where:
(a) = the withdrawal amount.
(b) = the Contract Value immediately prior to the withdrawal.
(c) = the most recently calculated Enhanced Death Benefit A or B,
as applicable.
Enhanced Income Benefit The following is added to the Payout Phase section.
Qualifications
On the Payout Start Date, the Owner may choose to receive income payments
defined in the Enhanced Income Benefit provision if all of the following
conditions are met.
o The Owner elects a Payout Start Date that is on or after the tenth
anniversary of the Rider Date;
o The Payout Start Date occurs during the 30 day period following a Contract
anniversary;
o The Income Base is applied to Fixed Amount Income Payments; and
o The selected Income Plan provides payments guaranteed for either single or
joint life with a period certain of at least:
o 10 years, if the youngest Annuitant's age is 80 or less on the date the
amount is applied, or
o 5 years, if the youngest Annuitant's age is greater than 80 on the date the
amount is applied.
Throughout the PAYOUT Phase section of your Contract, the term "Contract Value"
is replaced with "the greater of the Contract Value or the Enhanced Income
Benefit", however, no Market Adjustment will be applied to the Enhanced Income
Benefit Amount.
Income Base
The Income Base is the greater of Income Base A or Income Base B.
Income Base is used solely for the purpose of calculating the Guaranteed Income
Benefit and does not provide a Contract Value or guarantee performance of any
investment option.
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Income Base A
o On the Rider Date, Income Base A is equal to the Contract Value.
o After the Rider Date, Income Base A is recalculated as follows on the
Contract anniversary and when a purchase payment or withdrawal is made.
o For purchase payments, Income Base A is equal to the most recently
calculated Income Base plus the purchase payment.
o For withdrawals, Income Base A is equal to the most recently calculated
Income Base reduced by a withdrawal adjustment.
o On each Contract anniversary, Income Base A is equal to the greater of the
Contract Value or the most recently calculated Income Base A.
In the absence of any withdrawals or purchase payments, Income Base A will
be the greatest of the Contract Value on the Rider Date and all Contract
anniversary Contract Values between the Rider Date and the Payout Start
Date.
Income Base A will be recalculated for purchase payments, for withdrawals
and on Contract anniversaries until the first Contract anniversary after
the 85th birthday of the oldest Owner or, if no Owner is a living
individual, the Annuitant.
After that date, Income Base A will be recalculated only for purchase
payments and withdrawals.
Income Base B
On the Rider Date, Income Base B is equal to the Contract Value. After the
Rider Date, Income Base B plus any subsequent purchase payments and less a
withdrawal adjustment for any subsequent withdrawals, will accumulate daily
at a rate equivalent to 5% per year. The accumulation will continue until
the first Contract anniversary after the 85th birthday of the oldest Owner
or, if the Owner is not a living individual, the oldest Annuitant.
Withdrawal Adjustment
The withdrawal adjustment is equal to (a) divided by (b, with the result
multiplied by (c), where:
(a) = the withdrawal amount.
(b) = the Contract Value immediately prior to the withdrawal.
(c) = the most recently calculated Income Base.
Guaranteed Income Benefit
The Guaranteed Income Benefit amount is determined by applying the Income Base
less any applicable taxes to the guaranteed rates for the Income Plan elected by
the Owner. The Income Plan selected must satisfy the conditions defined in
Qualifications above. The rates are the guaranteed rates defined in the Income
Payment Tables section for either a single or joint life with a period certain.
On the Payout tart Date, the income payment will be the greater of the
Guaranteed Income Benefit and the income payment provided in the Payout Phase
section.
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Mortality and Expense Risk Charge The Mortality and Expense Risk Charge
provision is modified as follows:
The maximum annualized Mortality and Expense Risk Charge is increased by 0.50%.
Except as amended in this rider the Master Policy remains unchanged.
Michael J. Velotta Thomas J. Wilson
Secretary Chairman and Chief Executive Officer
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Page 4
GLA112 (2/00)
GLENBROOK LIFE AND ANNUITY COMPANY
(herein called "we" or "us")
Enhanced Death and Income Benefit Combination Rider II
This rider was issued because you selected the Enhanced Death Benefit and the
Enhanced Income Benefit.
As used in this rider, "Contract" means the Contract or Certificate to which
this rider is attached.
For purposes of this rider, "Rider Date" is the date this rider was made a part
of your Contract: xx/xx/xxxx
Enhanced Death Benefit The Death Benefit provision of your Contract is modified
by adding the following:
If the Owner is a living individual, the Enhanced Death Benefit applies only to
the death of the Owner. If the Owner is not a living individual, the Enhanced
Death Benefit applies only to the death of the annuitant.
The Death Benefit will be the greater of the values stated in your Contract, or
the value of the Enhanced Death Benefit.
The Enhanced Death Benefit is equal to the greater of the Enhanced Death Benefit
A or Enhanced Death Benefit B. The Enhanced Death Benefit will cease on the date
we determine the value of the Death Benefit.
Enhanced Death Benefit A
After the Rider Date, the Enhanced Death Benefit A is equal to the initial
purchase payment. After the Rider Date, the Enhanced Death Benefit A is
recalculated when a purchase payment or withdrawal is made or on a Contract
anniversary as follows:
1. For purchase payments, the Enhanced Death Benefit A is equal to the
most recently calculated Enhanced Death Benefit A plus the purchase
payment.
2. For withdrawals, the Enhanced Death Benefit A is equal to the most
recently calculated Enhanced Death Benefit A reduced by a withdrawal
adjustment defined below.
3. On each Contract anniversary, the Enhanced Death Benefit A is equal to
the greater of the Contract Value or the most recently calculated
Enhanced Death Benefit A.
In the absence of any withdrawals or purchase payments, the Enhanced Death
Benefit A will be the greatest of all Contract anniversary Contract Values
on or prior to the date we calculate the Death Benefit.
The Enhanced Death Benefit A will be recalculated for purchase payments,
withdrawals and on Contract Anniversaries until the oldest owner or the
annuitant, if the owner is not a living individual, attains age 85.
After age 85, the Enhanced Death Benefit A will be recalculated only for
purchase payments and withdrawals.
Enhanced Death Benefit B.
<PAGE>
The Enhanced Death Benefit B is equal to total purchase payments made
reduced by a withdrawal adjustment. Each purchase payment and each
withdrawal adjustment will accumulate daily at a rate equivalent to 5% per
year until the earlier of:
1. the date we determine the Death Benefit, or
2. the first day of the month following the oldest owner's or, if
the owner is not a living individual, the annuitant's 85th
birthday.
The Enhanced Death Benefit B will never be greater than the maximum death
benefit allowed by any nonforfeiture laws which govern the Contract.
Withdrawal Adjustment
The withdrawal adjustment is equal to (a) divided by (b), with the result
multiplied by (c), where:
(a) = the withdrawal amount.
(b) = the Contract Value immediately prior to the withdrawal.
(c) = the most recently calculated Enhanced Death Benefit A or B,
as applicable.
Enhanced Income Benefit The following is added to your Contract.
Qualifications
On the Payout Start Date, the Owner may choose to receive income payments
defined in the Enhanced Income Benefit provision if all of the following
conditions are met.
o The Owner elects a Payout Start Date that is on or after the tenth
anniversary of the Rider Date;
o The Payout Start Date occurs during the 30 day period following a Contract
anniversary;
o The Income Base is applied to Fixed Amount Income Payments; and
o The selected Income Plan provides payments guaranteed for either single or
joint life with a period certain of at least:
o 10 years, if the youngest Annuitant's age is 80 or less on the date the
amount is applied, or
o 5 years, if the youngest Annuitant's age is greater than 80 on the date the
amount is applied.
Throughout the PAYOUT PHASE section of your Contract, the term "Contract
Value" is replaced with "the greater of the Contract Value or the Enhanced
Income Benefit"; however, no Market Value Adjustment will be applied to the
Enhanced Income Benefit amount.
Income Base
The Income Base is the greater of Income Base A or Income Base B.
Income Base is used solely for the purpose of calculating the Guaranteed Income
Benefit and does not provide a Contract Value or guarantee performance of any
investment option.
Income Base A
o On the Rider Date, Income Base A is equal to the Contract Value.
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o After the Rider Date, Income Base A is recalculated as follows on the
Contract anniversary and when a purchase payment or withdrawal is made.
o For purchase payments, Income Base A is equal to the most recently
calculated Income Base plus the purchase payment.
o For withdrawals, Income Base A is equal to the most recently calculated
Income Base reduced by a withdrawal adjustment.
o On each Contract anniversary, Income Base A is equal to the greater of the
Contract Value or the most recently calculated Income Base A.
In the absence of any withdrawals or purchase payments, Income Base A will
be the greatest of the Contract Value on the Rider Date and all Contract
anniversary Contract Values between the Rider Date and the Payout Start
Date.
Income Base A will be recalculated for purchase payments, for withdrawals
and on Contract anniversaries until the first Contract anniversary after
the 85th birthday of the oldest Owner or, of no Owner is a living
individual, the Annuitant.
After that date, Income Base A will be recalculated only for purchase
payments and withdrawals.
Income Base B
On the Rider Date, Income Base B is equal to the Contract Value. After the
Rider Date, Income Base B Plus any subsequent purchase payments and less a
withdrawal adjustment for any subsequent withdrawals, will accumulate daily
at a rate equivalent to 5% per year. The accumulation will continue until
the first Contract anniversary after the 85th birthday of the oldest Owner
or, if the Owner is not a living individual, the oldest Annuitant.
Withdrawal Adjustment
The withdrawal adjustment is equal to (a) divided by (b), with the result
multiplied by (c), where:
(a) = the withdrawal amount.
(b) = the Contract Value immediately prior to the withdrawal.
(c) = the most recently calculated Income Base.
Guaranteed Income Benefit
The Guaranteed Income Benefit amount is determined by applying the Income Base
less any applicable taxes to the guaranteed rates for the Income Plan elected by
the Owner. The Income Plan selected must satisfy the conditions defined in
Qualifications above. The rates are the guaranteed rates defined in the Income
Payment Tables section of the Contract for either a single or joint life with a
period certain.
On the Payout Start Date, the income payment will be the greater of the
Guaranteed Income Benefit and the income payment provided in the Payout Phase
section.
<PAGE>
Mortality and Expense Risk Charge The Mortality and Expense Risk Charge
provision of your Contract is modified as follows:
The maximum annualized Mortality and Expense Risk Charge is increased by 0.50%
for this rider.
Except as amended in this rider the Contract remains unchanged.
Michael J. Velotta Thomas J. Wilson
Secretary Chairman and Chief Executive Officer
