<PAGE>
As filed with the Securities and Exchange Commission on June 1, 1999.
Registration No. 333-65957
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
-----------
FORM S-6
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
Pre-Effective Amendment No. 3
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LLAC VARIABLE ACCOUNT
(Exact Name of Trust)
LIBERTY LIFE ASSURANCE COMPANY OF BOSTON
(Name of Depositor)
175 Berkeley Street
Boston, Massachusetts 02117
(Complete Address of Depositor's Principal Executive Offices)
Morton E. Spitzer
LIBERTY LIFE ASSURANCE COMPANY OF BOSTON
175 Berkeley Street
Boston, Massachusetts 02117
(Name and Complete Address of Agent for Service)
Copies to:
Joan E. Boros, Esq. William J. O'Connell, Esq.
Jorden Burt Boros Cicchetti Vice President and Assistant General Counsel
Berenson & Johnson Liberty Life Assurance Company of Boston
1025 Thomas Jefferson Street, N.W. 175 Berkeley Street
Washington, D.C. 20007-5201 Boston, Massachusetts 02117
Securities being offered -- variable portion of modified single payment variable
universal life insurance contracts.
-----------
Approximate date of proposed public offering: as soon as practicable after the
effective date of this registration statement.
The registrant is registering an indefinite amount of securities, by reason of
Section 24(f) of the Investment Company Act of 1940.
The registrant hereby amends this registration statement on such dates as may be
necessary to delay its effective date until the registrant shall file a further
amendment which specifically states that this registration statement shall
thereafter become effective in accordance with Section 8(a) of the Securities
Act of 1933 or until the registration statement shall become effective on such
date as the Commission, acting pursuant to Section 8(a), may determine.
- -------------------------------------------------------------------------------
<PAGE>
LLAC Variable Account is filing this Pre-Effective Amendment No. 3 under the
Securities Act of 1933 to its Registration Statement on Form S-6 for the sole
purpose of filing an amended copy of Exhibit 9 (Illustrations) and to file an
actuarial opinion (Exhibit 8) with respect to such illustrations. Accordingly,
this amendment does not otherwise delete, amend, or supersede any prospectus,
exhibit, undertaking, or other information contained in the Registration
Statement, as previously amended, except to amend the list of exhibits included
in Part II thereto and to file the attached exhibits.
<PAGE>
PART II - OTHER INFORMATION
EXHIBIT LIST
1. Exhibits required by paragraph A of the instructions as to Exhibits of Form
N-8B-2
(1) Resolution of the Board of Directors of Liberty Life Assurance Company
of Boston authorizing establishment of LLAC Variable Account(3)
(2) Custodian Agreement (not applicable)
(3) (a) Form of Distribution Agreement(3)
(b) Form of Broker-Dealer and General Agent Sales Agreement (3)
(c) Schedule of Sales Commissions(3)
(4) Other Agreements between the depositor, principal underwriter, and
custodian with respect to Registrant or its securities (not
applicable)
(5) (a) Specimen Single Life Contract(3)
(b) Specimen Survivorship Agreement (3)
(c) Specimen Extended Maturity Benefit Rider (4)
(d) Specimen Group Contract (individual coverage) (4)
(e) Specimen Certificate (individual coverage) (4)
(f) Specimen Group Contract (joint and last survivor coverage) (4)
(g) Specimen Certificate (joint and last survivor coverage) (4)
(h) Specimen Last Survivor Death Benefit Agreement (for Group
Contract) (4)
(i) Specimen Last Survivor Death Benefit Agreement (for
Certificate) (4)
(6) (a) Articles of Incorporation of Liberty Life Assurance Company of
Boston, as amended(1)
(b) By-laws of Liberty Life Assurance Company of Boston(2)
(7) Not applicable
II-1
<PAGE>
(8) Form of Participation Agreements
(a)(1) Form of Participation Agreement By and Among AIM Variable
Insurance Funds, Inc., AIM Distributors Inc., Liberty Life
Assurance Company of Boston, on behalf of itself and its
Separate Accounts, and Liberty Life Distributors, LLC (4)
(a)(2) Form of Administrative Service Agreement between Liberty Life
Assurance Company of Boston and AIM Advisers, Inc. (4)
(b) Form of Participation Agreement By and Among Life
-------
Insurance Company, Liberty Variable Investment Trust, and
Liberty Financial Investments, Inc.(3)
(c)(1) Form of Participation Agreement By and Among Liberty Life
Assurance Company of Boston, Dreyfus Variable Investment
Fund, The Dreyfus Socially Responsible Growth Fund, Inc.,
and Dreyfus Life and Annuity Index Fund, Inc. (d/b/a Dreyfus
Stock Index Fund)(4)
(c)(2) Form of Administrative Services Agreement By and Between The
Dreyfus Corporation and Liberty Life Assurance Company of
Boston (4)
(d)(1) Form of Participation Agreement By and Among MFS Variable
Insurance Trust, Liberty Life Assurance Company of Boston,
and Massachusetts Financial Services Company (4)
(d)(2) Form of Administrative Services Agreement by and between
Massachusetts Financial Services Company and Liberty Life
Assurance Company of Boston (filed herewith)
(e) Form of Participation Agreement By and Among Keyport Financial
Services Corp. , , and Stein Roe Variable Investment
-----------
Trust (3)
(9) Other Material Contracts (not applicable)
II-2
<PAGE>
(10) (a) Specimen Application (3)
(b) Specimen Application (3)
(c) Specimen Variable Life Insurance Supplemental Application (3)
2. Opinion and Consent of Counsel (4)
3. All financial statements omitted from the Prospectus (not applicable)
4. Not applicable
5. Financial Data Schedule (not applicable)
6. Procedures memorandum pursuant to Rule 6e-3(T)(b)(12)(iii) (4)
7. Actuarial Opinion and Consent (filed herewith)
8. Consent of Independent Accountants (4)
9. Illustrations (filed herewith)
- --------------------------------------
(1) Incorporated by reference to Post-Effective Amendment No. 1 to
Registration Statement of Variable Account J of Liberty Life Assurance
Company of Boston (File No. 333-29811; 811-08269), filed on or about
July 17, 1997.
(2) Incorporated by reference to Registration Statement of Variable
Account J of Liberty Life Assurance Company of Boston (File No.
333-29811; 811-08269), filed on or about June 18, 1997.
(3) Incorporated by reference to Registration Statement of LLAC Variable
Account on Form S-6 (File No. 333-65957), filed October 21, 1998.
(4) Incorporated by reference to Pre-Effective Amendment No. 2 to the
Registration Statement of LLAC Variable Account on Form S-6 (File No.
333-65957), filed May 14, 1999.
II-3
<PAGE>
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company Act of
1940, the registrant has duly caused this Registration Statement to be signed on
its behalf in the City of Boston, Commonwealth of Massachusetts, on the
1st of June, 1999.
LLAC VARIABLE ACCOUNT
(Registrant)
BY: LIBERTY LIFE ASSURANCE COMPANY OF BOSTON
(Depositor)
By: /s/ Elliot J. Williams
------------------------------
Elliot J. Williams
Treasurer
As required by the Securities Act of 1933, this Registration Statement has
been signed below by the following persons in the capacities and on the dates
indicated:
/s/ Gary L. Countryman
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Gary L. Countryman Chairman of the Board June 1, 1999
/s/ Edmund F. Kelly
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Edmund F. Kelly President, Chief Executive Officer June 1, 1999
/s/ Elliot J. Williams
- -----------------------
Elliot J. Williams Treasurer June 1, 1999
/s/ J. Paul Condrin
- -----------------------
J. Paul Condrin Director June 1, 1999
/s/ John B. Conners
- -----------------------
John B. Conners Director June 1, 1999
II-4
<PAGE>
/s/ A. Alexander Fontanes
- ----------------------------
A. Alexander Fontanes Director June 1, 1999
/s/ Christopher C. Mansfield
- ----------------------------
Christopher C. Mansfield Director June 1, 1999
/s/ Jean M. Scarrow
- ----------------------------
Jean M. Scarrow Director June 1, 1999
/s/ Morton E. Spitzer
- ----------------------------
Morton E. Spitzer Director June 1, 1999
II-5
<PAGE>
EXHIBITS
7. Actuarial Opinion and Consent
9. Illustrations
<PAGE>
EXHIBIT 7: ACTUARIAL OPINION AND CONSENT
LIBERTY LIFE ASSURANCE COMPANY OF BOSTON
May 28, 1999
Liberty Life Assurance Company of Boston
175 Berkley Street
Boston, MA 02217
Gentlemen:
This opinion is furnished in connection with the filing by Liberty Life
Assurance Company of Boston ("Liberty Life"), on behalf of LLAC Variable Account
(the "Separate Account"), of Pre-Effective Amendment No. 3 ("Amendment No. 3")
to the Registration Statement on Form S-6 (File No. 333-65857) covering an
indefinite amount of interests under Liberty Life's Modified Single Payment
Variable Universal Life Insurance Contracts (the "Contracts"). Premiums received
under the Contract may be allocated to the Separate Account. The prospectus
included in Amendment No. 2 to the Registration Statement describes the
Contracts. I am familiar with the Contract provisions and with Amendment No. 3.
It is my opinion that the hypothetical illustrations of death benefits, account
values, and surrender values included in Amendment No. 3, based on the
stipulated rates of investment return and other assumptions stated in the
hypothetical illustrations, are consistent with the provisions of the Contract.
The rate structure of the Contracts has not been designed so as to make the
relationship between premiums and benefits, as shown in the illustrations,
appear more favorable to a prospective non-tobacco using purchaser of a Contract
aged 65 than to prospective purchasers of Contracts of other ages or
underwriting classes. The Standard non-tobacco rate class generally has a more
favorable rate structure than other rate classes.
The current and monthly cost of insurance rates used in the illustrations have
not been designed so as to make the relationship between current and guaranteed
rates more favorable for the ages and sexes illustrated than for non-tobacco
using prospective purchasers at other ages. The Standard non-tobacco using rate
classes generally have lower cost of insurance rates than the other rate
classes. The female rate classes generally have lower guaranteed cost of
insurance than the male rate classes.
I hereby consent to the use of this opinion as an exhibit to Amendment No. 3 and
to my name under the heading "Experts" in the Prospectus included as part of
Amendment No. 2.
Sincerely,
/s/ Douglas Wood
Douglas Wood, FSA, MAAA
Associate Actuary
<PAGE>
EXHIBIT 9
ILLUSTRATIONS OF ACCOUNT VALUES,
SURRENDER VALUES AND
DEATH BENEFITS
The following tables have been prepared to help show how values under Single
Life and Survivorship Contracts change with investment experience. The tables
illustrate how Account Values, Surrender Values, and Death Benefits under a
Contract issued on an Insured of a given age would vary over time if the
hypothetical gross investment rates of return on the Portfolios' assets were a
uniform, gross, after tax, annual rate of 0%, 6%, and 12%. If the hypothetical
gross investment rate of return averages 0%, 6%, or 12%, but fluctuates over or
under those averages throughout the years, the Account Values, Surrender Values
and Death Benefits may be different.
The amounts shown for the Account Value, Surrender Value and Death Benefit as
of each Contract Anniversary reflect the fact that the net investment return on
the assets held in the Sub-Accounts is lower than the gross after-tax return on
the assets held in the Portfolios, as a result of expenses paid by the
Portfolios and charges levied against the Sub-Accounts. The values shown reflect
a daily charge to the Sub-Accounts of 1.65% of average daily net assets to
compensate Liberty Life for its expenses incurred and for assuming mortality and
expense risks under the Contracts. In addition, the net investment returns also
reflect the deduction of the Portfolio investment advisory fees and other
Portfolio expenses at an annual effective rate of 0.79%, which is the arithmetic
average of the actual and estimated fees and expenses for all of the Portfolios,
including any expense reimbursements or fee waivers. Without expense
reimbursements and fee waivers, the annual effective rate would have been
1.04%. Liberty Life anticipates that the expense reimbursement and fee waiver
arrangements will continue past the current year. If there should be an increase
or decrease in the expense reimbursements and fee waivers of a Portfolio that
has such arrangements, that change will be reflected in the net asset value of
the corresponding Portfolio.
The tables also reflect applicable charges including an annual Contract Fee
of $30.00 per year, and monthly charges for providing insurance protection.
However, no Contract Fee is deducted in any year in which the Account Value
exceeds $50,000. For each hypothetical gross investment rate of return, tables
are provided reflecting current and guaranteed cost of insurance charges. The
current cost of insurance charge for Single Life Contracts, Standard class (NT)
is equal to the lesser of (a) 0.45% annually of the Account Value or (b) the
guaranteed cost of insurance charge. The current cost of insurance charge for
Survivorship Contracts, Standard class (NT) is equal to the lesser of (a) 0.15%
annually of the Account Value or (b) the guaranteed cost of insurance charge.
After deduction of these amounts (other than the cost of insurance charges),
hypothetical gross average investment rates of return of 0%, 6% and 12%
correspond to approximate net annual investment rates of return of B0.79%, 5.21%
and 11.21%, respectively. Guaranteed cost of insurance rates vary by issue age
(or attained age in the case of increases in Initial Death Benefit), sex, rating
class and Contract Year and, therefore, cost of insurance charges are not
reflected in the approximate net annual investment rate of return stated above.
The tables illustrate the Account Values, Surrender Values, and Death
Benefits that would result based upon the hypothetical investment rates of
return if no Payment other than the indicated initial Payment is paid, if the
entire initial Payment is allocated to the Variable Account, and if no Contract
loans are taken. The tables also assume that no partial withdrawals or transfers
have been made.
Values are shown for Contracts which are issued to standard class Insureds.
Values for Contracts issued on a basis involving a higher mortality risk would
result in lower Account Values, Surrender Values and Death Benefits than those
illustrated. Females generally have a more favorable guaranteed rate structure
than males.
Where the Surrender Value shown in an illustration is zero, the Death Benefit
shown is the Minimum Guaranteed Death Benefit. If a Contract Loan is outstanding
in this situation, the Contract may lapse in accordance with the Grace Period
provisions.
1
<PAGE>
The tables reflect the fact that no charges for Federal, state or other
income taxes are currently made against the Variable Account. If such a charge
is made in the future, it will take a higher gross rate of return than
illustrated to produce the net after-tax returns shown in the tables.
Upon request, Liberty Life will furnish a comparable illustration based on
the proposed Insured's age, sex, underwriting classification, proposed initial
Payment, and any available agreements requested.
2
<PAGE>
<TABLE>
<CAPTION>
SINGLE LIFE
MODIFIED SINGLE PAYMENT VARIABLE LIFE INSURANCE CONTRACT
MALE STANDARD NON-TOBACCO ISSUE AGE 65
$30,000 INITIAL PAYMENT
$60,477 INITIAL DEATH BENEFIT
VALUES--GUARANTEED COST OF INSURANCE
SINGLE 0% HYPOTHETICAL 6% HYPOTHETICAL 12% HYPOTHETICAL
PAYMENT GROSS INVESTMENT RETURN GROSS INVESTMENT RETURN GROSS INVESTMENT RETURN
PLUS
CONTRACT INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR AT 5% VALUE VALUE BENEFIT VALUE VALUE BENEFIT VALUE VALUE BENEFIT
---- ----- ----- ----- ------- ----- ----- ------- ----- ----- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 31,500 29,174 26,249 60,477 30,962 28,037 60,477 32,750 29,825 60,477
2 33,075 28,226 25,376 60,477 31,895 29,045 60,477 35,784 32,934 60,477
3 34,729 27,176 24,401 60,477 32,829 30,054 60,477 39,186 36,411 60,477
4 36,465 26,008 23,758 60,477 33,764 31,514 60,477 43,025 40,775 60,477
5 38,288 24,701 22,526 60,477 34,696 32,521 60,477 47,382 45,207 60,477
6 40,203 23,218 21,718 60,477 35,612 34,112 60,477 52,359 50,859 60,477
7 42,213 21,534 20,109 60,477 36,514 35,089 60,477 58,016 56,591 64,398
8 44,324 19,615 19,615 60,477 37,399 37,399 60,477 64,321 64,321 70,110
9 46,540 17,396 17,396 60,477 38,252 38,252 60,477 71,347 71,347 76,341
10 48,867 14,817 14,817 60,477 39,068 39,068 60,477 79,193 79,193 83,152
11 51,310 11,809 11,809 60,477 39,842 39,842 60,477 87,978 87,978 92,377
12 53,876 8,291 8,291 60,477 40,573 40,573 60,477 97,711 97,711 102,596
13 56,569 4,166 4,166 60,477 41,259 41,259 60,477 108,490 108,490 113,914
14 59,398 0 0 60,477 41,896 41,896 60,477 120,421 120,421 126,442
15 62,368 0 0 60,477 42,476 42,476 60,477 133,619 133,619 140,300
16 65,486 0 0 60,477 42,985 42,985 60,477 148,207 148,207 155,618
17 68,761 0 0 60,477 43,400 43,400 60,477 164,318 164,318 172,534
18 72,199 0 0 60,477 43,693 43,693 60,477 182,091 182,091 191,195
19 75,809 0 0 60,477 43,823 43,823 60,477 201,675 201,675 211,758
20 79,599 0 0 60,477 43,746 43,746 60,477 223,231 223,231 234,393
21 83,579 0 0 60,477 43,402 43,402 60,477 246,936 246,936 259,283
3
<PAGE>
22 87,758 0 0 60,477 42,707 42,707 60,477 272,979 272,979 286,628
23 92,146 0 0 60,477 41,547 41,547 60,477 301,566 301,566 316,645
24 96,753 0 0 60,477 39,754 39,754 60,477 332,919 332,919 349,565
25 101,591 0 0 60,477 37,077 37,077 60,477 367,273 367,273 385,636
30 129,658 0 0 60,477 0 0 60,477 609,942 609,942 616,042
35 165,480 0 0 60,477 0 0 60,477 1,024,670 1,024,670 1,024,670
</TABLE>
ASSUMPTIONS:
(1) ASSUMES NO CONTRACT LOANS HAVE BEEN MADE.
(2) VALUES REFLECT GUARANTEED COST OF INSURANCE CHARGES.
(3) NET INVESTMENT RETURNS ARE CALCULATED AS THE HYPOTHETICAL GROSS
INVESTMENT RETURN LESS ALL CHARGES AND DEDUCTIONS.
(4) DEATH BENEFIT REFLECTS CURRENT INTERNAL REVENUE CODE REQUIREMENTS BASED
ON THE GUIDELINE PREMIUM/CASH VALUE CORRIDOR TEST.
(5) WHEN THE SURRENDER VALUE IS ZERO, THE DEATH BENEFIT SHOWN IS THE
GUARANTEED DEATH BENEFIT. IF A CONTRACT LOAN WERE OUTSTANDING WHEN THE
SURRENDER VALUE IS ZERO, THE CONTRACT MIGHT LAPSE IN ACCORDANCE WITH THE
GRACE PERIOD PROVISIONS.
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RATES OF
RETURN. ACTUAL RATES OF RETURN MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL
DEPEND ON A NUMBER OF FACTORS, INCLUDING THE INVESTMENT ALLOCATIONS MADE BY AN
OWNER AND ACTUAL EXPENSES. THE DEATH BENEFIT, ACCOUNT VALUE AND SURRENDER VALUE
FOR A CONTRACT WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL RATES OF RETURN
AVERAGED 0%, 6% AND 12% OVER A PERIOD OF YEARS BUT ALSO FLUCTUATED ABOVE OR
BELOW THOSE AVERAGES FOR INDIVIDUAL CONTRACT YEARS. NO REPRESENTATIONS CAN BE
MADE BY LIBERTY LIFE ASSURANCE COMPANY OF BOSTON THAT THESE HYPOTHETICAL RATES
OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
4
<PAGE>
<TABLE>
<CAPTION>
SINGLE LIFE
MODIFIED SINGLE PAYMENT VARIABLE LIFE INSURANCE CONTRACT
MALE STANDARD NON-TOBACCO ISSUE AGE 65
$30,000 INITIAL PAYMENT
$60,477 INITIAL DEATH BENEFIT
VALUES--CURRENT COST OF INSURANCE
SINGLE 0% HYPOTHETICAL 6% HYPOTHETICAL 12% HYPOTHETICAL
PAYMENT GROSS INVESTMENT RETURN GROSS INVESTMENT RETURN GROSS INVESTMENT RETURN
PLUS
CONTRACT INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR AT 5% VALUE VALUE BENEFIT VALUE VALUE BENEFIT VALUE VALUE BENEFIT
---- ----- ----- ----- ------- ----- ----- ------- ----- ----- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 31,500 29,722 26,797 60,477 31,506 28,581 60,477 33,289 30,364 60,477
2 33,075 29,417 26,567 60,477 33,055 30,205 60,477 36,905 34,055 60,477
3 34,729 29,115 26,340 60,477 34,682 31,907 60,477 40,917 38,142 60,477
4 36,465 28,816 26,566 60,477 36,391 34,141 60,477 45,370 43,120 60,477
5 38,288 28,519 26,344 60,477 38,186 36,011 60,477 50,310 48,135 60,477
6 40,203 28,225 26,725 60,477 40,071 38,571 60,477 55,826 54,326 63,083
7 42,213 27,934 26,509 60,477 42,050 40,625 60,477 61,946 60,521 68,760
8 44,324 27,646 27,646 60,477 44,129 44,129 60,477 68,737 68,737 74,923
9 46,540 27,360 27,360 60,477 46,312 46,312 60,477 76,281 76,281 81,620
10 48,867 27,077 27,077 60,477 48,605 48,605 60,477 84,705 84,705 88,940
11 51,310 26,797 26,797 60,477 51,013 51,013 60,477 94,137 94,137 98,844
12 53,876 26,519 26,519 60,477 53,573 53,573 60,477 104,588 104,588 109,817
13 56,569 26,243 26,243 60,477 56,261 56,261 60,477 116,161 116,161 121,969
14 59,398 25,971 25,971 60,477 59,103 59,103 62,059 128,972 128,972 135,420
15 62,368 25,700 25,700 60,477 62,083 62,083 65,188 143,143 143,143 150,300
16 65,486 25,433 25,433 60,477 65,199 65,199 68,459 158,836 158,836 166,777
17 68,761 25,167 25,167 60,477 68,471 68,471 71,895 176,248 176,248 185,061
18 72,199 24,905 24,905 60,477 71,907 71,907 75,502 195,570 195,570 205,349
19 75,809 24,644 24,644 60,477 75,516 75,516 79,292 217,010 217,010 227,861
20 79,599 24,386 24,386 60,477 79,305 79,305 83,271 240,801 240,801 252,841
5
<PAGE>
21 83,579 24,131 24,131 60,477 83,285 83,285 87,450 267,199 267,199 280,559
22 87,758 23,878 23,878 60,477 87,465 87,465 91,838 296,492 296,492 311,317
23 92,146 23,627 23,627 60,477 91,854 91,854 96,447 328,996 328,996 345,446
24 96,753 23,378 23,378 60,477 96,464 96,464 101,287 365,063 365,063 383,316
25 101,591 23,132 23,132 60,477 101,305 101,305 106,370 405,084 405,084 425,339
30 129,658 21,935 21,935 60,477 129,680 129,680 130,977 682,890 682,890 689,719
35 165,480 20,792 20,792 60,477 166,193 166,193 166,193 1,152,524 1,152,524 1,152,524
</TABLE>
ASSUMPTIONS:
(1) ASSUMES NO CONTRACT LOANS HAVE BEEN MADE.
(2) VALUES REFLECT CURRENT COST OF INSURANCE CHARGES.
(3) NET INVESTMENT RETURNS ARE CALCULATED AS THE HYPOTHETICAL GROSS
INVESTMENT RETURN LESS ALL CHARGES AND DEDUCTIONS.
(4) DEATH BENEFIT REFLECTS CURRENT INTERNAL REVENUE CODE REQUIREMENTS BASED
ON THE GUIDELINE PREMIUM/CASH VALUE CORRIDOR TEST.
(5) WHEN THE SURRENDER VALUE IS ZERO, THE DEATH BENEFIT SHOWN IS THE
GUARANTEED DEATH BENEFIT. IF A CONTRACT LOAN WERE OUTSTANDING WHEN THE
SURRENDER VALUE IS ZERO, THE CONTRACT MIGHT LAPSE IN ACCORDANCE WITH THE
GRACE PERIOD PROVISIONS.
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RATES OF
RETURN. ACTUAL RATES OF RETURN MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL
DEPEND ON A NUMBER OF FACTORS, INCLUDING THE INVESTMENT ALLOCATIONS MADE BY AN
OWNER AND ACTUAL EXPENSES. THE DEATH BENEFIT, ACCOUNT VALUE AND SURRENDER VALUE
FOR A CONTRACT WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL RATES OF RETURN
AVERAGED 0%, 6% AND 12% OVER A PERIOD OF YEARS BUT ALSO FLUCTUATED ABOVE OR
BELOW THOSE AVERAGES FOR INDIVIDUAL CONTRACT YEARS. NO REPRESENTATIONS CAN BE
MADE BY LIBERTY LIFE ASSURANCE COMPANY OF BOSTON THAT THESE HYPOTHETICAL RATES
OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
6
<PAGE>
<TABLE>
<CAPTION>
SINGLE LIFE
MODIFIED SINGLE PAYMENT VARIABLE LIFE INSURANCE CONTRACT
FEMALE STANDARD NON-TOBACCO ISSUE AGE 65
$30,000 INITIAL PAYMENT
$69,417 INITIAL DEATH BENEFIT
VALUES--GUARANTEED COST OF INSURANCE
SINGLE 0% HYPOTHETICAL 6% HYPOTHETICAL 12% HYPOTHETICAL
PAYMENT GROSS INVESTMENT RETURN GROSS INVESTMENT RETURN GROSS INVESTMENT RETURN
PLUS
CONTRACT INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR AT 5% VALUE VALUE BENEFIT VALUE VALUE BENEFIT VALUE VALUE BENEFIT
---- ----- ----- ----- ------- ----- ----- ------- ----- ----- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 31,500 29,293 26,368 69,417 31,078 28,153 69,417 32,864 29,939 69,417
2 33,075 28,491 25,641 69,417 32,144 29,294 69,417 36,014 33,164 69,417
3 34,729 27,620 24,845 69,417 33,230 30,455 69,417 39,532 36,757 69,417
4 36,465 26,675 24,425 69,417 34,341 32,091 69,417 43,476 41,226 69,417
5 38,288 25,644 23,469 69,417 35,475 33,300 69,417 47,912 45,737 69,417
6 40,203 24,510 23,010 69,417 36,628 35,128 69,417 52,918 51,418 69,417
7 42,213 23,246 21,821 69,417 37,792 36,367 69,417 58,587 57,162 69,417
8 44,324 21,818 21,818 69,417 38,955 38,955 69,417 65,029 65,029 70,881
9 46,540 20,185 20,185 69,417 40,107 40,107 69,417 72,253 72,253 77,311
10 48,867 18,304 18,304 69,417 41,239 41,239 69,417 80,311 80,311 84,327
11 51,310 16,125 16,125 69,417 42,345 42,345 69,417 89,316 89,316 93,782
12 53,876 13,599 13,599 69,417 43,422 43,422 69,417 99,310 99,310 104,276
13 56,569 10,663 10,663 69,417 44,471 44,471 69,417 110,399 110,399 115,919
14 59,398 7,243 7,243 69,417 45,486 45,486 69,417 122,697 122,697 128,832
15 62,368 3,230 3,230 69,417 46,463 46,463 69,417 136,328 136,328 143,144
16 65,486 0 0 69,417 47,388 47,388 69,417 151,424 151,424 158,996
17 68,761 0 0 69,417 48,244 48,244 69,417 168,130 168,130 176,537
18 72,199 0 0 69,417 49,008 49,008 69,417 186,598 186,598 195,928
19 75,809 0 0 69,417 49,655 49,655 69,417 206,992 206,992 217,341
20 79,599 0 0 69,417 50,158 50,158 69,417 229,488 229,488 240,962
7
<PAGE>
21 83,579 0 0 69,417 50,483 50,483 69,417 254,276 254,276 266,990
22 87,758 0 0 69,417 50,588 50,588 69,417 281,560 281,560 295,638
23 92,146 0 0 69,417 50,410 50,410 69,417 311,557 311,557 327,135
24 96,753 0 0 69,417 49,862 49,862 69,417 344,496 344,496 361,721
25 101,591 0 0 69,417 48,808 48,808 69,417 380,619 380,619 399,650
30 129,658 0 0 69,417 22,254 22,254 69,417 634,329 634,329 640,672
35 165,480 0 0 69,417 0 0 69,417 1,065,924 1,065,924 1,065,924
</TABLE>
ASSUMPTIONS:
(1) ASSUMES NO CONTRACT LOANS HAVE BEEN MADE.
(2) VALUES REFLECT GUARANTEED COST OF INSURANCE CHARGES.
(3) NET INVESTMENT RETURNS ARE CALCULATED AS THE HYPOTHETICAL GROSS
INVESTMENT RETURN LESS ALL CHARGES AND DEDUCTIONS.
(4) DEATH BENEFIT REFLECTS CURRENT INTERNAL REVENUE CODE REQUIREMENTS BASED
ON THE GUIDELINE PREMIUM/CASH VALUE CORRIDOR TEST.
(5) WHEN THE SURRENDER VALUE IS ZERO, THE DEATH BENEFIT SHOWN IS THE
GUARANTEED DEATH BENEFIT. IF A CONTRACT LOAN WERE OUTSTANDING WHEN THE
SURRENDER VALUE IS ZERO, THE CONTRACT MIGHT LAPSE IN ACCORDANCE WITH THE
GRACE PERIOD PROVISIONS.
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RATES OF
RETURN. ACTUAL RATES OF RETURN MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL
DEPEND ON A NUMBER OF FACTORS, INCLUDING THE INVESTMENT ALLOCATIONS MADE BY AN
OWNER AND ACTUAL EXPENSES. THE DEATH BENEFIT, ACCOUNT VALUE AND SURRENDER VALUE
FOR A CONTRACT WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL RATES OF RETURN
AVERAGED 0%, 6% AND 12% OVER A PERIOD OF YEARS BUT ALSO FLUCTUATED ABOVE OR
BELOW THOSE AVERAGES FOR INDIVIDUAL CONTRACT YEARS. NO REPRESENTATIONS CAN BE
MADE BY LIBERTY LIFE ASSURANCE COMPANY OF BOSTON THAT THESE HYPOTHETICAL RATES
OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
8
<PAGE>
<TABLE>
<CAPTION>
SINGLE LIFE
MODIFIED SINGLE PAYMENT VARIABLE LIFE INSURANCE CONTRACT
FEMALE STANDARD NON-TOBACCO ISSUE AGE 65
$30,000 INITIAL PAYMENT
$69,417 INITIAL DEATH BENEFIT
VALUES--CURRENT COST OF INSURANCE
SINGLE 0% HYPOTHETICAL 6% HYPOTHETICAL 12% HYPOTHETICAL
PAYMENT GROSS INVESTMENT RETURN GROSS INVESTMENT RETURN GROSS INVESTMENT RETURN
PLUS
CONTRACT INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR AT 5% VALUE VALUE BENEFIT VALUE VALUE BENEFIT VALUE VALUE BENEFIT
---- ----- ----- ----- ------- ----- ----- ------- ----- ----- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 31,500 29,722 26,797 69,417 31,506 28,581 69,417 33,289 30,364 69,417
2 33,075 29,417 26,567 69,417 33,055 30,205 69,417 36,905 34,055 69,417
3 34,729 29,115 26,340 69,417 34,682 31,907 69,417 40,917 38,142 69,417
4 36,465 28,816 26,566 69,417 36,391 34,141 69,417 45,370 43,120 69,417
5 38,288 28,519 26,344 69,417 38,186 36,011 69,417 50,310 48,135 69,417
6 40,203 28,225 26,725 69,417 40,071 38,571 69,417 55,826 54,326 69,417
7 42,213 27,934 26,509 69,417 42,050 40,625 69,417 61,969 60,544 69,417
8 44,324 27,646 27,646 69,417 44,129 44,129 69,417 68,867 68,867 75,065
9 46,540 27,360 27,360 69,417 46,312 46,312 69,417 76,552 76,552 81,911
10 48,867 27,077 27,077 69,417 48,605 48,605 69,417 85,126 85,126 89,382
11 51,310 26,797 26,797 69,417 51,013 51,013 69,417 94,706 94,706 99,441
12 53,876 26,519 26,519 69,417 53,573 53,573 69,417 105,339 105,339 110,606
13 56,569 26,243 26,243 69,417 56,261 56,261 69,417 117,137 117,137 122,993
14 59,398 25,971 25,971 69,417 59,084 59,084 69,417 130,220 130,220 136,731
15 62,368 25,700 25,700 69,417 62,049 62,049 69,417 144,722 144,722 151,958
16 65,486 25,433 25,433 69,417 65,163 65,163 69,417 160,784 160,784 168,823
17 68,761 25,167 25,167 69,417 68,477 68,477 71,901 178,558 178,558 187,486
18 72,199 24,905 24,905 69,417 71,940 71,940 75,537 198,207 198,207 208,117
19 75,809 24,644 24,644 69,417 75,550 75,550 79,328 219,936 219,936 230,933
20 79,599 24,386 24,386 69,417 79,342 79,342 83,309 244,047 244,047 256,250
9
<PAGE>
21 83,579 24,131 24,131 69,417 83,323 83,323 87,490 270,802 270,802 284,342
22 87,758 23,878 23,878 69,417 87,505 87,505 91,880 300,489 300,489 315,514
23 92,146 23,627 23,627 69,417 91,896 91,896 96,491 333,432 333,432 350,103
24 96,753 23,378 23,378 69,417 96,508 96,508 101,333 369,985 369,985 388,484
25 101,591 23,132 23,132 69,417 101,351 101,351 106,419 410,546 410,546 431,073
30 129,658 21,935 21,935 69,417 129,755 129,755 131,052 692,177 692,177 699,099
35 165,480 20,792 20,792 69,417 166,317 166,317 166,317 1,168,402 1,168,402 1,168,402
</TABLE>
ASSUMPTIONS:
(1) ASSUMES NO CONTRACT LOANS HAVE BEEN MADE.
(2) VALUES REFLECT CURRENT COST OF INSURANCE CHARGES.
(3) NET INVESTMENT RETURNS ARE CALCULATED AS THE HYPOTHETICAL GROSS
INVESTMENT RETURN LESS ALL CHARGES AND DEDUCTIONS.
(4) DEATH BENEFIT REFLECTS CURRENT INTERNAL REVENUE CODE REQUIREMENTS BASED
ON THE GUIDELINE PREMIUM/CASH VALUE CORRIDOR TEST.
(5) WHEN THE SURRENDER VALUE IS ZERO, THE DEATH BENEFIT SHOWN IS THE
GUARANTEED DEATH BENEFIT. IF A CONTRACT LOAN WERE OUTSTANDING WHEN THE
SURRENDER VALUE IS ZERO, THE CONTRACT MIGHT LAPSE IN ACCORDANCE WITH THE
GRACE PERIOD PROVISIONS.
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RATES OF
RETURN. ACTUAL RATES OF RETURN MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL
DEPEND ON A NUMBER OF FACTORS, INCLUDING THE INVESTMENT ALLOCATIONS MADE BY AN
OWNER AND ACTUAL EXPENSES. THE DEATH BENEFIT, ACCOUNT VALUE AND SURRENDER VALUE
FOR A CONTRACT WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL RATES OF RETURN
AVERAGED 0%, 6% AND 12% OVER A PERIOD OF YEARS BUT ALSO FLUCTUATED ABOVE OR
BELOW THOSE AVERAGES FOR INDIVIDUAL CONTRACT YEARS. NO REPRESENTATIONS CAN BE
MADE BY LIBERTY LIFE ASSURANCE COMPANY OF BOSTON THAT THESE HYPOTHETICAL RATES
OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
10
<PAGE>
<TABLE>
<CAPTION>
SURVIVORSHIP
MODIFIED SINGLE PAYMENT VARIABLE LIFE INSURANCE CONTRACT
MALE STANDARD NON-TOBACCO ISSUE AGE 65, FEMALE STANDARD NON-TOBACCO ISSUE AGE 65
$30,000 INITIAL PAYMENT
$84,933 INITIAL DEATH BENEFIT
VALUES--GUARANTEED COST OF INSURANCE
SINGLE 0% HYPOTHETICAL 6% HYPOTHETICAL 12% HYPOTHETICAL
PAYMENT GROSS INVESTMENT RETURN GROSS INVESTMENT RETURN GROSS INVESTMENT RETURN
PLUS
CONTRACT INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR AT 5% VALUE VALUE BENEFIT VALUE VALUE BENEFIT VALUE VALUE BENEFIT
---- ----- ----- ----- ------- ----- ----- ------- ----- ----- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 31,500 29,839 26,914 84,933 31,630 28,705 84,933 33,421 30,496 84,933
2 33,075 29,608 26,758 84,933 33,278 30,428 84,933 37,163 34,313 84,933
3 34,729 29,328 26,553 84,933 34,972 32,197 84,933 41,294 38,519 84,933
4 36,465 28,987 26,737 84,933 36,706 34,456 84,933 45,859 43,609 84,933
5 38,288 28,573 26,398 84,933 38,476 36,301 84,933 50,912 48,737 84,933
6 40,203 28,068 26,568 84,933 40,276 38,776 84,933 56,515 55,015 84,933
7 42,213 27,449 26,024 84,933 42,097 40,672 84,933 62,743 61,318 84,933
8 44,324 26,690 26,690 84,933 43,930 43,930 84,933 69,694 69,694 84,933
9 46,540 25,751 25,751 84,933 45,760 45,760 84,933 77,484 77,484 84,933
10 48,867 24,588 24,588 84,933 47,573 47,573 84,933 86,228 86,228 90,540
11 51,310 23,150 23,150 84,933 49,358 49,358 84,933 95,983 95,983 100,782
12 53,876 21,379 21,379 84,933 51,104 51,104 84,933 106,820 106,820 112,161
13 56,569 19,207 19,207 84,933 52,803 52,803 84,933 118,852 118,852 124,795
14 59,398 16,552 16,552 84,933 54,450 54,450 84,933 132,205 132,205 138,815
15 62,368 13,307 13,307 84,933 56,034 56,034 84,933 147,012 147,012 154,362
16 65,486 9,322 9,322 84,933 57,542 57,542 84,933 163,418 163,418 171,589
17 68,761 4,400 4,400 84,933 58,959 58,959 84,933 181,578 181,578 190,657
18 72,199 0 0 84,933 60,262 60,262 84,933 201,657 201,657 211,740
19 75,809 0 0 84,933 61,429 61,429 84,933 223,830 223,830 235,021
20 79,599 0 0 84,933 62,437 62,437 84,933 248,285 248,285 260,699
21 83,579 0 0 84,933 63,262 63,262 84,933 275,223 275,223 288,984
11
<PAGE>
22 87,758 0 0 84,933 63,875 63,875 84,933 304,860 304,860 320,103
23 92,146 0 0 84,933 64,234 64,234 84,933 337,426 337,426 354,297
24 96,753 0 0 84,933 64,281 64,281 84,933 373,167 373,167 391,825
25 101,591 0 0 84,933 63,922 63,922 84,933 412,341 412,341 432,958
30 129,658 0 0 84,933 46,068 46,068 84,933 687,236 687,236 694,109
35 165,480 0 0 84,933 0 0 84,933 1,154,820 1,154,820 1,154,820
</TABLE>
ASSUMPTIONS:
(1) ASSUMES NO CONTRACT LOANS HAVE BEEN MADE.
(2) VALUES REFLECT GUARANTEED COST OF INSURANCE CHARGES.
(3) NET INVESTMENT RETURNS ARE CALCULATED AS THE HYPOTHETICAL GROSS
INVESTMENT RETURN LESS ALL CHARGES AND DEDUCTIONS.
(4) DEATH BENEFIT REFLECTS CURRENT INTERNAL REVENUE CODE REQUIREMENTS BASED
ON THE GUIDELINE PREMIUM/CASH VALUE CORRIDOR TEST.
(5) WHEN THE SURRENDER VALUE IS ZERO, THE DEATH BENEFIT SHOWN IS THE
GUARANTEED DEATH BENEFIT. IF A CONTRACT LOAN WERE OUTSTANDING WHEN THE
SURRENDER VALUE IS ZERO, THE CONTRACT MIGHT LAPSE IN ACCORDANCE WITH THE
GRACE PERIOD PROVISIONS.
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RATES OF
RETURN. ACTUAL RATES OF RETURN MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL
DEPEND ON A NUMBER OF FACTORS, INCLUDING THE INVESTMENT ALLOCATIONS MADE BY AN
OWNER AND ACTUAL EXPENSES. THE DEATH BENEFIT, ACCOUNT VALUE AND SURRENDER VALUE
FOR A CONTRACT WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL RATES OF RETURN
AVERAGED 0%, 6% AND 12% OVER A PERIOD OF YEARS BUT ALSO FLUCTUATED ABOVE OR
BELOW THOSE AVERAGES FOR INDIVIDUAL CONTRACT YEARS. NO REPRESENTATIONS CAN BE
MADE BY LIBERTY LIFE ASSURANCE COMPANY OF BOSTON THAT THESE HYPOTHETICAL RATES
OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
12
<PAGE>
<TABLE>
<CAPTION>
SURVIVORSHIP
MODIFIED SINGLE PAYMENT VARIABLE LIFE INSURANCE CONTRACT
MALE STANDARD NON-TOBACCO ISSUE AGE 65, FEMALE STANDARD NON-TOBACCO ISSUE AGE 65
$30,000 INITIAL PAYMENT
$84,933 INITIAL DEATH BENEFIT
VALUES--CURRENT COST OF INSURANCE
SINGLE 0% HYPOTHETICAL 6% HYPOTHETICAL 12% HYPOTHETICAL
PAYMENT GROSS INVESTMENT RETURN GROSS INVESTMENT RETURN GROSS INVESTMENT RETURN
PLUS
CONTRACT INTEREST ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH ACCOUNT SURRENDER DEATH
YEAR AT 5% VALUE VALUE BENEFIT VALUE VALUE BENEFIT VALUE VALUE BENEFIT
---- ----- ----- ----- ------- ----- ----- ------- ----- ----- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 31,500 29,839 26,914 84,933 31,630 28,705 84,933 33,421 30,496 84,933
2 33,075 29,622 26,772 84,933 33,285 30,435 84,933 37,164 34,314 84,933
3 34,729 29,406 26,631 84,933 35,029 32,254 84,933 41,329 38,554 84,933
4 36,465 29,191 26,941 84,933 36,866 34,616 84,933 45,964 43,714 84,933
5 38,288 28,978 26,803 84,933 38,801 36,626 84,933 51,123 48,948 84,933
6 40,203 28,766 27,266 84,933 40,839 39,339 84,933 56,898 55,398 84,933
7 42,213 28,556 27,131 84,933 42,986 41,561 84,933 63,326 61,901 84,933
8 44,324 28,346 28,346 84,933 45,247 45,247 84,933 70,479 70,479 84,933
9 46,540 28,139 28,139 84,933 47,629 47,629 84,933 78,444 78,444 84,933
10 48,867 27,932 27,932 84,933 50,138 50,138 84,933 87,335 87,335 91,702
11 51,310 27,727 27,727 84,933 52,813 52,813 84,933 97,248 97,248 102,111
12 53,876 27,523 27,523 84,933 55,630 55,630 84,933 108,262 108,262 113,675
13 56,569 27,320 27,320 84,933 58,597 58,597 84,933 120,492 120,492 126,516
14 59,398 27,119 27,119 84,933 61,723 61,723 84,933 134,103 134,103 140,808
15 62,368 26,918 26,918 84,933 65,015 65,015 84,933 149,252 149,252 156,715
16 65,486 26,719 26,719 84,933 68,483 68,483 84,933 166,112 166,112 174,418
17 68,761 26,522 26,522 84,933 72,136 72,136 84,933 184,877 184,877 194,121
18 72,199 26,325 26,325 84,933 75,984 75,984 84,933 205,761 205,761 216,049
19 75,809 26,130 26,130 84,933 80,037 80,037 84,933 229,005 229,005 240,455
20 79,599 25,936 25,936 84,933 84,307 84,307 88,522 254,874 254,874 267,618
13
<PAGE>
21 83,579 25,744 25,744 84,933 88,804 88,804 93,244 283,666 283,666 297,849
22 87,758 25,552 25,552 84,933 93,540 93,540 98,217 315,710 315,710 331,496
23 92,146 25,362 25,362 84,933 98,530 98,530 103,456 351,374 351,374 368,943
24 96,753 25,173 25,173 84,933 103,786 103,786 108,975 391,067 391,067 410,620
25 101,591 24,985 24,985 84,933 109,322 109,322 114,788 435,244 435,244 457,006
30 129,658 24,062 24,062 84,933 141,759 141,759 143,177 743,256 743,256 750,689
35 165,480 23,169 23,169 84,933 183,822 183,822 183,822 1,269,243 1,269,243 1,269,243
</TABLE>
ASSUMPTIONS:
(1) ASSUMES NO CONTRACT LOANS HAVE BEEN MADE.
(2) VALUES REFLECT CURRENT COST OF INSURANCE CHARGES.
(3) NET INVESTMENT RETURNS ARE CALCULATED AS THE HYPOTHETICAL GROSS
INVESTMENT RETURN LESS ALL CHARGES AND DEDUCTIONS.
(4) DEATH BENEFIT REFLECTS CURRENT INTERNAL REVENUE CODE REQUIREMENTS BASED
ON THE GUIDELINE PREMIUM/CASH VALUE CORRIDOR TEST.
(5) WHEN THE SURRENDER VALUE IS ZERO, THE DEATH BENEFIT SHOWN IS THE
GUARANTEED DEATH BENEFIT. IF A CONTRACT LOAN WERE OUTSTANDING WHEN THE
SURRENDER VALUE IS ZERO, THE CONTRACT MIGHT LAPSE IN ACCORDANCE WITH THE
GRACE PERIOD PROVISIONS.
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RATES OF
RETURN. ACTUAL RATES OF RETURN MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL
DEPEND ON A NUMBER OF FACTORS, INCLUDING THE INVESTMENT ALLOCATIONS MADE BY AN
OWNER AND ACTUAL EXPENSES. THE DEATH BENEFIT, ACCOUNT VALUE AND SURRENDER VALUE
FOR A CONTRACT WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL RATES OF RETURN
AVERAGED 0%, 6% AND 12% OVER A PERIOD OF YEARS BUT ALSO FLUCTUATED ABOVE OR
BELOW THOSE AVERAGES FOR INDIVIDUAL CONTRACT YEARS. NO REPRESENTATIONS CAN BE
MADE BY LIBERTY LIFE ASSURANCE COMPANY OF BOSTON THAT THESE HYPOTHETICAL RATES
OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
60334.1
14
