<PAGE>
As Filed with the Securities and Exchange Commission on January 10, 2000
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S-6
FOR REGISTRATION UNDER THE SECURITIES ACT OF 1933 OF
SECURITIES OF UNIT INVESTMENT TRUSTS REGISTERED ON FORM
N-8B-2
A. Exact name of trust:
Sun Life of Canada (U.S.) Variable Account I
B. Name of depositor:
Sun Life Assurance Company of Canada (U.S.)
C. Complete address of depositor's principal executive offices:
One Sun Life Executive Park
Wellesley Hills, Massachusetts 02481
D. Name and complete address of agent for service:
Ellen B. King
Secretary
Sun Life Assurance Company of Canada (U.S.)
One Sun Life Executive Park
Wellesley Hills, Massachusetts 02481
Copies to:
Michael Berenson, Esq.
Jorden Burt Boros Cicchetti Berenson & Johnson LLP
Suite 400 East
1025 Thomas Jefferson St.
N.W. Washington, D.C. 20007-0805
E. Title and amount of securities being registered:
Last Survivor Flexible Premium Combination Fixed and Variable Life
Insurance Policies.
F. Approximate date of proposed public offering:
As soon as practicable after the effective date of this Registration
Statement.
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 Securities and Exchange
Commission, acting pursuant to said Section 8(a), may determine.
<PAGE>
RECONCILIATION AND TIE BETWEEN
FORM N-8B-2 AND PROSPECTUS
<TABLE>
<CAPTION>
Item No. of
Form N-8B-2 Caption in Prospectus
- ----------- ---------------------
<S> <C>
1. Cover page
2. Cover page
3. Not applicable
4. Distribution of Policy
5. The Variable Account
6. The Variable Account
7. Not applicable
8. Other Information--Financial Statements
9. Other Information--Legal Proceedings
10. Summary of Policy; The Variable Account; The Funds; About the
Policy; Voting Rights; Federal Income Tax Considerations
11. Summary of Policy; The Variable Account; The Funds
12. Summary of Policy; The Funds
13. Summary of Policy; Expenses of the Funds; About the Policy--
Charges and Deductions; Distribution of Policy; Federal Income
Tax Considerations
14. About the Policy--Policy Application, Issuance and Initial
Premium
15. About the Policy--Policy Application, Issuance and Initial
Premium, --Right of Return Period, --Premium Payments, --Account
Value, --Transfer Privileges
16. The Funds; About the Policy--Premium Payments, --Account Value,
--Transfer Privileges, --Accessing Your Account Value, --Maturity
17. Summary of Policy; About the Policy--Account Value, --Accessing
Your Account Value--Surrenders and Surrender Charges, --Right of
Return Period
18. The Variable Account; About the Policy--Account Value
19. About the Policy--Other Policy Provisions--Reports to Owner
20. Not applicable
21. About the Policy--Policy Loans, --Death Benefit, --Account Value
22. Not applicable
23. Our Directors and Executive Officers
24. Not applicable
25. Sun Life Assurance Company of Canada (U.S.)
26. Not applicable
</TABLE>
<PAGE>
<TABLE>
<S> <C>
27. Sun Life Assurance Company of Canada (U.S.)
28. Sun Life Assurance Company of Canada (U.S.); Our Directors and
Executive Officers
29. Sun Life Assurance Company of Canada (U.S.)
30. Not applicable
31. Not applicable
32. Not applicable
33. Not applicable
34. Not applicable
35. Distribution of Policy
36. Not applicable
37. Not applicable
38. Distribution of Policy
39. Sun Life Assurance Company of Canada (U.S.); Distribution of
Policy
40. Not applicable
41. Sun Life Assurance Company of Canada (U.S.); Distribution of
Policy
42. Not applicable
43. Not applicable
44. About the Policy--Application, Issuance and Initial Premium, --
Right of Return Period, --Premium Payments, --Account Value, --
Transfer Privileges, --Charges and Deductions
45. Not applicable
46. About the Policy--Application, Issuance and Initial Premium, --
Right of Return Period, --Premium Payments, --Account Value, --
Transfer Privileges
47. The Funds
48. Cover page; Sun Life Assurance Company of Canada (U.S.); The
Variable Account
49. Not applicable
50. The Variable Account
51. Summary of Policy; Sun Life Assurance Company of Canada (U.S.);
About the Policy
52. The Funds; The Variable Account; About the Policy--Other Policy
Provisions--Addition, Deletion or Substitution of Investments, --
Modification
53. Federal Income Tax Considerations
54. Not applicable
</TABLE>
<PAGE>
<TABLE>
<S> <C>
55. Not applicable
56. Not applicable
57. Not applicable
58. Not applicable
59. Not applicable
</TABLE>
<PAGE>
Part I
<PAGE>
[LOGO]
PROSPECTUS
One Sun Life Executive Park
Wellesley Hills, Massachusetts 02481
(800) 700-6554
FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE INSURANCE
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT I
A LAST SURVIVOR FLEXIBLE PREMIUM COMBINATION FIXED AND
VARIABLE UNIVERSAL LIFE INSURANCE POLICY
This prospectus describes the variable portions of a last survivor
combination fixed and variable universal life insurance policy (the "POLICY")
issued by Sun Life Assurance Company of Canada (U.S.) ("WE" or "US"). The Policy
allows "YOU," the policyowner, within certain limits, to:
- choose the type and amount of insurance coverage you need and
increase or decrease that coverage as your insurance needs
change;
- choose the amount and timing of premium payments;
- allocate net premium payments among 32 investment options
(including 31 variable investment options and one fixed
account investment option) and transfer Account Value among
available investment options as your investment objectives
change; and
- access your Policy's Account Value through loans and partial
or total surrenders.
This prospectus contains important information you should understand before
purchasing a Policy. We use certain special terms which are defined in Appendix
A. You should read this prospectus carefully and keep it for future reference.
NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES
COMMISSION HAS APPROVED THESE SECURITIES OR DETERMINED THAT THIS PROSPECTUS IS
ACCURATE OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
_____, 2000
<PAGE>
VARIABLE SUB-ACCOUNT INVESTMENT OPTIONS
The assets of Sun Life of Canada (U.S.) Variable Account I (the "Variable
Account") are divided into 31 variable Sub-Accounts. Each Sub-Account uses its
assets to purchase, at their net asset value, shares of the following mutual
funds or series thereof (the "Funds").
<TABLE>
<S> <C>
AIM VARIABLE INSURANCE FUNDS, INC. MFS/SUN LIFE SERIES TRUST
AIM V.I. Capital Appreciation Fund Capital Appreciation Series
AIM V.I. Growth Fund Emerging Growth Series
AIM V.I. Growth and Income Fund Government Securities Series
AIM V.I. International Equity Fund High Yield Series
Massachusetts Investors Growth Stock Series
THE ALGER AMERICAN FUND Massachusetts Investors Trust Series
Alger American Growth Portfolio New Discovery Series
Alger American Income and Growth Portfolio Total Return Series
Alger American Small Capitalization Utilities Series
Portfolio OCC ACCUMULATION TRUST
GOLDMAN SACHS VARIABLE INSURANCE TRUST Equity Portfolio
Goldman Sachs VIT CORE Large Cap Growth Fund Managed Portfolio
Goldman Sachs VIT CORE Small Cap Equity Fund Mid Cap Portfolio
Goldman Sachs VIT CORE U.S. Equity Fund Small Cap Portfolio
Goldman Sachs VIT Growth and Income Fund
Goldman Sachs VIT International Equity Fund SUN CAPITAL ADVISERS TRUST
Sun Capital Blue Chip Mid Cap Fund
Sun Capital Investors Foundation Fund
Sun Capital Investment Grade Bond Fund
Sun Capital Money Market Fund
Sun Capital Real Estate Fund
Sun Capital Select Equity Fund
</TABLE>
FIXED ACCOUNT OPTION
We periodically credit interest on amounts allocated to the fixed account
option at an effective annual rate guaranteed to be at least 3%.
II FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE INSURANCE
<PAGE>
<TABLE>
<CAPTION>
TABLE OF CONTENTS
<S> <C>
Summary of Policy........................................... 1
Sun Life Assurance Company of Canada (U.S.)................. 7
The Variable Account........................................ 7
The Funds................................................... 8
Fees and Expenses of the Funds.............................. 13
Our General Account......................................... 14
Investment Programs......................................... 14
Dollar Cost Averaging..................................... 14
Asset Rebalancing......................................... 15
Asset Allocation.......................................... 15
About the Policy............................................ 15
Policy Application, Issuance and Initial Premium.......... 15
Right of Return Period.................................... 16
Premium Payments.......................................... 17
Premium................................................. 17
Net Premiums............................................ 17
Allocation of Net Premium............................... 17
Planned Periodic Premiums............................... 18
Death Benefit............................................. 18
Changes in Specified Face Amount.......................... 19
Minimum Changes......................................... 19
Increases............................................... 19
Decreases............................................... 20
Accessing Your Account Value.............................. 20
Surrenders and Surrender Charges........................ 20
Partial Surrenders...................................... 23
Policy Loans............................................ 23
Transfer Privileges....................................... 24
Account Value............................................. 25
Variable Account Value.................................. 25
Net Investment Factor................................... 27
Fixed Account Value..................................... 27
Insufficient Value...................................... 29
Minimum Premium Test (No-Lapse Guarantee)............... 29
Grace Period............................................ 29
Splitting Units......................................... 30
Charges and Deductions.................................... 30
Expense Charges Applied to Premium...................... 30
Mortality and Expense Risk Charge....................... 30
Monthly Face Amount Charge.............................. 30
Monthly Cost of Insurance............................... 30
Monthly Cost of Insurance Rates......................... 31
</TABLE>
III FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE INSURANCE
<PAGE>
<TABLE>
<S> <C>
Basis of Computation.................................... 31
Waivers; Reduced Charges; Credits; Bonus Interest Rates... 32
Maturity.................................................. 32
Maturity Date Extension................................... 32
Supplemental Benefits..................................... 33
Estate Preservation Rider............................... 33
Maturity Extension With Full Death Benefit Rider........ 33
Termination of Policy..................................... 33
Reinstatement............................................. 33
Deferral of Payment....................................... 34
Rights of Owner........................................... 35
Rights of Beneficiary..................................... 35
Other Policy Provisions................................... 35
Addition, Deletion or Substitution of Investments....... 35
Entire Contract......................................... 36
Alteration.............................................. 36
Modification............................................ 36
Assignments............................................. 36
Nonparticipating........................................ 37
Misstatement of Age or Sex.............................. 37
Suicide................................................. 37
Incontestability........................................ 37
Report to Owner......................................... 37
Illustrations........................................... 38
Performance Information..................................... 38
Portfolio Performance..................................... 38
Adjusted Portfolio Performance............................ 38
Other Information......................................... 39
Federal Income Tax Considerations........................... 40
Tax Status of The Policy.................................. 40
Diversification of Investments............................ 40
Tax Treatment of Policy Benefits.......................... 41
Life Insurance Death Benefit Proceeds................... 41
Tax Deferred Accumulation............................... 41
Distributions........................................... 41
Modified Endowment Contracts............................ 41
Distributions Under Modified Endowment Contracts........ 42
Distributions Under a Policy That Is Not a MEC.......... 42
Policy Loan Interest.................................... 43
Multiple Policies....................................... 43
Federal Income Tax Withholding.......................... 43
Our Taxes................................................. 43
Distribution of Policy...................................... 44
Voting Rights............................................... 44
</TABLE>
IV FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE INSURANCE
<PAGE>
<TABLE>
<S> <C>
Our Directors and Executive Officers........................ 45
Other Information........................................... 50
State Regulation.......................................... 50
Legal Proceedings......................................... 50
Experts................................................... 51
Accountants............................................... 51
Registration Statements................................... 51
Financial Statements...................................... 51
Appendix A--Glossary of Policy Terms........................ A-1
Appendix B--Table of Death Benefit Percentages.............. B-1
Appendix C--Sample Hypothetical Illustrations............... C-1
</TABLE>
THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFERING IN ANY JURISDICTION WHERE THE
OFFERING WOULD NOT BE LAWFUL. YOU SHOULD RELY ONLY ON THE INFORMATION
CONTAINED IN THIS PROSPECTUS OR IN THE PROSPECTUS OR STATEMENT OF ADDITIONAL
INFORMATION OF THE FUNDS. WE HAVE NOT AUTHORIZED ANYONE TO PROVIDE YOU WITH
INFORMATION THAT IS DIFFERENT.
V FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE INSURANCE
<PAGE>
SUMMARY OF POLICY
RIGHT OF RETURN PERIOD
You may return your Policy to us for any reason and
receive a refund within 10 days from the date of receipt
of your Policy. A longer period may apply in some states.
PREMIUM PAYMENTS
- You must make a minimum initial premium payment, the
amount of which will vary based on various factors,
including the age, sex and rating class of each
Insured.
- Thereafter, you choose the amount and timing of
premium payments, within certain limits.
- You may allocate your net premium payments among the
Policy's available investment options.
DEATH BENEFIT
- The Policy's death benefit is payable upon the death
of the last of two Insureds to die.
- You have a choice of two death benefit options--
<TABLE>
<S> <C>
SPECIFIED FACE AMOUNT is the - the SPECIFIED FACE AMOUNT; or
minimum amount of life - the sum of the Specified Face Amount and the Account Value of your Policy.
insurance in your Policy. - For each option, the death benefit may be greater if necessary to satisfy
federal tax laws.
</TABLE>
- After the first Policy Year, you may:
- change your death benefit option;
- increase the Specified Face Amount,
subject to satisfactory evidence of
insurability; or
- decrease the Specified Face Amount,
provided that the Specified Face
Amount after the decrease is not less
than an amount we specify in your
Policy.
THE VARIABLE ACCOUNT
- We have established a variable separate account to
fund the variable benefits under the Policy.
FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE INSURANCE
<PAGE>
- The assets of the variable separate account are
insulated from the claims of our general creditors.
INVESTMENT OPTIONS
- You may allocate your net premium payments among the
31 variable Sub-Accounts and the fixed account option
listed on page ii of this prospectus.
- Each Sub-Account invests exclusively in shares of a
mutual fund portfolio.
- You may transfer amounts from one Sub-Account to
another or to the Fixed Account Value, subject to any
limits that may be imposed by the Funds.
- You may transfer amounts from the fixed account
option, subject to our rules as they may exist from
time to time.
SUPPLEMENTAL BENEFITS
- You may supplement your Policy with the following
riders, where available--
- estate preservation; and
- maturity extension with full death
benefit.
- We will deduct the cost, if any, of the rider(s) from
your Policy's Account Value on a monthly basis.
ACCESSING YOUR ACCOUNT VALUE
<TABLE>
<S> <C>
CASH SURRENDER VALUE is -
Account Value minus any You may borrow from us using your Account Value as collateral. Loans may be
surrender charges and the taxable events if your Policy is a "modified endowment contract" for federal
amount of any Policy Debt. income tax purposes and the value of your Policy exceeds its cost.
The SURRENDER CHARGE PERIOD - You may surrender your Policy for its CASH SURRENDER VALUE. If you surrender
ends generally 15 years your Policy during the SURRENDER CHARGE PERIOD, you will incur any applicable
after you purchase or surrender charges.
increase the Specified Face - You may make a partial surrender of some of your Policy's Cash Surrender Value
Amount of your Policy. after the Policy has been in force for one year. A partial surrender will cause a
decrease in the Specified Face Amount of your Policy if your death benefit option
is the Specified Face Amount.
</TABLE>
2 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE
INSURANCE
<PAGE>
ACCOUNT VALUE
<TABLE>
<S> <C>
ACCOUNT VALUE is the sum of -
the amounts in each Sub- Your Policy's ACCOUNT VALUE will reflect--
Account and the Fixed - the premiums you pay;
Account Value with respect - the investment performance of the Sub-Accounts you select, and/or the
to your Policy. interest credited in the fixed account option;
- any loans or partial surrenders;
- the charges we deduct under the Policy.
</TABLE>
POLICY CHARGES AND DEDUCTIONS
- EXPENSE CHARGES APPLIED TO PREMIUMS--We will deduct a
charge from your premium payments as a sales load and
for our federal, state and local tax obligations. For
the first Policy Year, the charge is 10% of premiums
up to an amount specified in the policy. The charge on
premiums in excess of that amount is guaranteed not to
exceed 7.25%. The current charge is 5.25%. For Policy
Year 2 and thereafter, the charge on all premiums is
guaranteed not to exceed 7.25%. The current charge is
5.25%.
- MORTALITY AND EXPENSE RISK CHARGE--We deduct a daily
charge from your Variable Account Value for the
mortality and expense risks we assume with respect to
the Policy. The guaranteed maximum daily rate is
equivalent to an annual rate of 0.80% of the Variable
Account Value. Our current daily rate is equivalent to
an annual rate of 0.50%.
- MONTHLY COST OF INSURANCE CHARGE--We will deduct a
monthly charge from your Account Value for the cost of
insurance. Our guaranteed Monthly Cost of Insurance
rates are based on the 1980 Commissioner's Standard
Ordinary Smoker and Nonsmoker Mortality Tables. The
applicable charge will vary based on the amount of
insurance coverage you request and other factors,
including the age, sex and rating class of each
Insured.
- MONTHLY FACE AMOUNT CHARGE--We will deduct a monthly
charge from your Account Value for the first 10 Policy
Years following the issuance of your Policy based on
the initial Specified Face Amount and for the first 10
Policy Years following the effective date for each
increase in the Specified Face Amount, if any, based
on the amount of increase. The applicable charge is
equal to the initial Specified Face Amount or the
amount of increase, as the case may be, times a rate
that varies based on the age, sex and rating class of
each Insured.
- MONTHLY COST OF SUPPLEMENTAL BENEFITS--We will deduct
a monthly charge from your Account Value for the cost,
if any, of any supplemental benefit riders issued with
your Policy. The applicable charge will vary based on
various
3 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE
INSURANCE
<PAGE>
factors which may include, among others, the amount of
coverage and the age, sex and rating class of each
Insured.
- SURRENDER CHARGES--We will deduct a surrender charge
from your Account Value if you surrender your Policy
or request a decrease in the Specified Face Amount
during the surrender charge period. There is a
separate surrender charge period for the initial
Specified Face Amount and each increase in the
Specified Face Amount you request, which starts on the
date we issue your Policy and on the effective date
for the increase, respectively. Each surrender charge
period will generally end after 15 Policy Years, but
may end sooner under certain circumstances. The
surrender charge will be an amount based on certain
factors, including the Specified Face Amount and the
age, sex and rating class of each Insured. The
following are examples of surrender charges at
representative Issue Ages.
FIRST YEAR SURRENDER CHARGES
PER $1,000 OF SPECIFIED FACE AMOUNT
(Male/Female Insured Pair, Non-Tobacco)
<TABLE>
<CAPTION>
ISSUE AGES ISSUE AGES ISSUE AGES
35 & 35 45 & 45 55 & 55
---------- ----------- -----------
<S> <C> <C>
$16.10 $20.25 $27.22
<CAPTION>
ISSUE AGES ISSUE AGES ISSUE AGES
65 & 65 75 & 75 85 & 85
---------- ----------- -----------
$ 40.02 $ 45.00 $ 45.00
<S> <C> <C>
</TABLE>
- INTEREST ON POLICY LOANS--Policy loans accrue interest
daily at 4% annually during Policy Years 1 through 10
and 3% annually thereafter.
FEES AND EXPENSES OF THE FUNDS
<TABLE>
<S> <C>
You should read the You will indirectly bear the costs of investment management fees and other
Funds' prospectuses before expenses paid from the assets of the Funds you select. The following table shows
investing. the fees and expenses paid by the Funds as a percentage of average net assets
based on information for the year ended December 31, 1998. This information was
provided by the Funds and we have not independently verified it. The Funds' fees
and expenses are more fully described in the current prospectuses for the Funds.
You should read them before investing.
</TABLE>
4 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE
INSURANCE
<PAGE>
ANNUAL FUND EXPENSES
(As a Percentage of Fund Average Net Assets)
<TABLE>
<CAPTION>
TOTAL ANNUAL
MANAGEMENT OTHER FUND OPERATING
FEES EXPENSES EXPENSES
------------------- ------------------- ----------------------
<S> <C> <C> <C>
AIM VARIABLE INSURANCE FUNDS, INC.
- --------------------------------------------
AIM V.I. Capital Appreciation Fund 0.62 0.05 0.67
AIM V.I. Growth Fund 0.64 0.08 0.72
AIM V.I.Growth and Income Fund 0.61 0.04 0.65
AIM V.I.International Equity Fund 0.75 0.16 0.91
THE ALGER AMERICAN FUND
- --------------------------------------------
Alger American Growth Portfolio 0.75 0.04 0.79
Alger American Income and Growth Portfolio 0.62 0.08 0.70
Alger American Small Capitalization
Portfolio 0.85 0.04 0.89
GOLDMAN SACHS VARIABLE INSURANCE TRUST
(after expense reimbursement or waiver) (1)
- --------------------------------------------
Goldman Sachs VIT CORE Large Cap Growth
Fund 0.70 0.10 0.80
Goldman Sachs VIT CORE Small Cap Equity
Fund 0.75 0.15 0.90
Goldman Sachs VIT CORE U.S. Equity Fund 0.70 0.10 0.80
Goldman Sachs VIT Growth and Income Fund 0.75 0.15 0.90
Goldman Sachs VIT International Equity
Fund 1.00 0.25 1.25
MFS/SUN LIFE SERIES TRUST
- --------------------------------------------
Capital Appreciation Series 0.73 0.04 0.77
Emerging Growth Series 0.72 0.06 0.78
Government Securities Series 0.55 0.07 0.62
High Yield Series 0.75 0.07 0.82
Massachusetts Investors Growth Stock 0.75 0.22 0.97
Series Massachusetts Investor Trust Series 0.55 0.04 0.59
Trust Series New Discovery Series 0.90 0.35 1.25
(after expense reimbursement or waiver)
(1)
Total Return Series 0.65 0.05 0.70
Utilities Series 0.75 0.11 0.86
OCC ACCUMULATION TRUST
- --------------------------------------------
Equity Portfolio 0.80 0.14 0.94
Managed Portfolio 0.78 0.04 0.82
Mid Cap Portfolio 0.80 0.25 1.05
(after expense reimbursement or
waiver) (1)
Small Cap Portfolio 0.80 0.08 0.88
SUN CAPITAL ADVISERS TRUST
(after expense reimbursement or waiver) (1)
- --------------------------------------------
Sun Capital Blue Chip Mid Cap Fund (2) 0.80 0.20 1.00
Sun Capital Investors Foundation Fund (2) 0.75 0.15 0.90
Sun Capital Investment Grade Bond Fund 0.60 0.15 0.75
Sun Capital Money Market Fund 0.50 0.15 0.65
Sun Capital Real Estate Fund 0.95 0.30 1.25
Sun Capital Select Equity Fund (2) 0.75 0.15 0.90
</TABLE>
5 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE
INSURANCE
<PAGE>
<TABLE>
<S> <C> <C> <C>
NOTES
- ------------------------
</TABLE>
(1) "Other Expenses" are based on actual expenses for the last fiscal year
ended December 31, 1998, including any applicable expense reimbursement
or waiver. The investment advisers for the indicated Funds have
voluntarily agreed to waive or reimburse a portion of the management
fees and/or operating expenses resulting in a reduction of the total
operating expenses. Absent any such waiver or reimbursement,
"Management Fees," "Other Expenses" and "Total Annual Fund Operating
Expenses" were --
0.70%, 2.17% and 2.87% for the Goldman Sachs VIT CORE Large Cap Growth
Fund;
0.75%, 3.17% and 3.92% for the Goldman Sachs VIT CORE Small Cap
Equity Fund;
0.70%, 2.13% and 2.83% for the Goldman Sachs VIT CORE U.S. Equity
Fund;
0.75%, 1.94% and 2.69% for the Goldman Sachs VIT CORE Growth and
Income Fund;
1.00%, 1.97% and 2.97% for the Goldman Sachs VIT International
Equity Fund;
0.90%, 0.70% and 1.60% for the MFS/Sun Life New Discovery Series;
0.80%, 3.48% and 4.28% for the OCC Mid Cap Portfolio;
0.80%, 3.50% and 4.10% for the Sun Capital Investment Grade Bond
Fund;
0.50%, 11.79% and 12.29% for the Sun Capital Money Market Fund;
and
0.95%, 6.49% and 7.44% for the Sun Capital Real Estate Fund.
(2) These Funds commenced operations in 1999. Accordingly, "Other Expenses"
are based on estimates for the fiscal year ended December 31, 1999, net
of any applicable expense reimbursement or waiver. The investment
advisers for the indicated Funds have voluntarily agreed to waive or
reimburse a portion of the management fees and/or operating expenses
resulting in a reduction of the total expenses.
To the extent that the expense ratio of any Fund of Sun Capital
Advisers Trust falls below the Fund's expense limit, the Fund's
investment adviser reserves the right to be reimbursed for management
fees waived and Fund expenses paid by it during the prior two years.
WHAT IF CHARGES AND DEDUCTIONS EXCEED CASH SURRENDER
VALUE?
- Your Policy will terminate if your Cash Surrender
Value at the beginning of any Policy Month is less
than the charges and deductions then due.
- We will send you notice and allow you a 61-day Grace
Period.
- If, within the Grace Period, you do not make a premium
payment sufficient to cover all accrued and unpaid
charges and deductions, your Policy will terminate at
the end of the Grace Period without further notice.
MINIMUM PREMIUM TEST (NO-LAPSE GUARANTEE)
Your insurance coverage will remain in force during
the first five Policy Years even if your Policy's Cash
Surrender Value is insufficient to keep the Policy in
force, provided that your Policy meets certain
requirements.
REINSTATEMENT
If your Policy terminates due to insufficient value,
we will reinstate it within five years at your request,
subject to certain conditions.
6 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE
INSURANCE
<PAGE>
MATURITY
Your Policy will terminate when the younger Insured
reaches Attained Age 100. If either Insured is living and
your Policy is in force on the Maturity date, your
Policy's Cash Surrender Value will be payable to you.
MATURITY EXTENSION
The Maturity date may be extended at your request.
The death benefit will be your Account Value on the date
of death of the last Insured to die.
FEDERAL TAX CONSIDERATIONS
Your purchase of, and transactions under, your Policy
may have tax consequences that you should consider before
purchasing a Policy. You may wish to consult a tax
adviser. In general, the beneficiary will receive Policy
Proceeds without there being taxable income. Increases in
Account Value will not be taxable as earned, although
there may be income tax due on a full or partial
surrender of your Policy or on policy loans.
SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.)
<TABLE>
<S> <C>
We are an indirect wholly- Sun Life Assurance Company of Canada (U.S.) is a stock life insurance
owned subsidiary of Sun Life company incorporated under the laws of Delaware on January 12, 1970. We are
Assurance Company of Canada, authorized to do business in forty-eight states, the District of Columbia and
a Canadian mutual life Puerto Rico, and anticipate that we will eventually be authorized to do business
insurance company. in all states except New York. We issue individual and group life insurance
policies and annuity contracts.
</TABLE>
We are an indirect, wholly-owned subsidiary of Sun
Life Assurance Company of Canada, a Canadian mutual life
insurance company located at 150 King Street West,
Toronto, Ontario, Canada.
THE VARIABLE ACCOUNT
We established Sun Life of Canada (U.S.) Variable
Account I in accordance with Delaware law on December 1,
1998. The Variable Account may also be used to fund
benefits payable under other life insurance policies
issued by us.
We own the assets of the Variable Account. The
income, gains or losses, realized or unrealized, from
assets allocated to the Variable Account are credited to
or charged against the Variable Account without regard to
our other income, gains or losses.
7 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE
INSURANCE
<PAGE>
<TABLE>
<S> <C>
The assets of the Variable We will at all times maintain assets in the Variable Account with a total
Account are insulated from market value at least equal to the reserves and other liabilities relating to the
our general liabilities. variable benefits under all policies participating in the Variable Account. Those
assets may not be charged with our liabilities from our other business. Our
obligations under those policies are, however, our general corporate obligations.
</TABLE>
<TABLE>
<S> <C>
The Variable Account is reg- The Variable Account is registered with the Securities and Exchange
istered with the SEC. Commission under the Investment Company Act of 1940 as a unit investment trust.
Registration under the Investment Company Act does not involve any supervision by
the Securities and Exchange Commission of the management or investment practices
or policies of the Variable Account.
</TABLE>
<TABLE>
<S> <C>
The Variable Account has 31 The Variable Account is divided into 31 Sub-Accounts. Each Sub- Account
Sub-Accounts. Each Sub- invests exclusively in shares of a corresponding investment portfolio of a
Account invests exclusively registered investment company (commonly known as a mutual fund). We may in the
in shares of a single mutual future add new or delete existing Sub-Accounts. The income, gains or losses,
fund portfolio. realized or unrealized, from assets allocated to each Sub-Account are credited to
or charged against that Sub-Account without regard to the other income, gains or
losses of the other Sub-Accounts. All amounts allocated to a Sub-Account will be
used to purchase shares of the corresponding mutual fund. The Sub-Accounts will
at all times be fully invested in mutual fund shares.
</TABLE>
THE FUNDS
<TABLE>
<S> <C>
The Fund Prospectuses have The Policy offers a number of Fund options, which are briefly discussed
more information about the below. Each Fund is a mutual fund registered under the Investment Company Act of
Funds, and may be obtained 1940, or a separate series of shares of such a mutual fund. More comprehensive
from us without charge. information, including a discussion of potential risks, is found in the current
prospectuses for the Funds (the "Fund Prospectuses"). The Fund Prospectuses
should be read in connection with this prospectus. A copy of each Fund Prospectus
may be obtained without charge by calling (800) 700-6554, or writing to Sun Life
Assurance Company of Canada (U.S.), One Sun Life Executive Park, Wellesley Hills,
Massachusetts 02481.
</TABLE>
The Funds currently available are:
AIM VARIABLE INSURANCE FUNDS, INC. (advised by AIM
Advisors, Inc.)
AIM V.I. CAPITAL APPRECIATION FUND seeks to provide
growth of capital through investment in common stocks,
with emphasis on medium- and small-sized growth
companies.
AIM V.I. GROWTH FUND seeks to provide growth of
capital by investing primarily in seasoned and better
capitalized companies considered to have strong earnings
momentum.
8 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE
INSURANCE
<PAGE>
AIM V.I. GROWTH AND INCOME FUND seeks to provide
growth of capital, with a secondary objective of current
income.
AIM V.I. INTERNATIONAL EQUITY FUND seeks to provide
long-term growth of capital by investing in a diversified
portfolio of international equity securities, whose
issuers are considered to have strong earnings momentum.
THE ALGER AMERICAN FUND (advised by Fred Alger
Management, Inc.)
ALGER AMERICAN GROWTH PORTFOLIO seeks long-term
capital appreciation by investing primarily in equity
securities of companies with market capitalizations of $1
billion or more.
ALGER AMERICAN INCOME AND GROWTH PORTFOLIO seeks
primarily to provide a high level of dividend income by
investing in dividend paying equity securities. Capital
appreciation is a secondary objective.
ALGER AMERICAN SMALL CAPITALIZATION PORTFOLIO seeks
long-term capital appreciation by investing primarily in
equity securities of companies with market
capitalizations within the range of the Russell 2000
Growth Index or the S&P SmallCap 600 Index.
GOLDMAN SACHS VARIABLE INSURANCE TRUST (advised by
Goldman Sachs Asset Management, a separate operating
division of Goldman, Sachs & Co., except for Goldman
Sachs International Equity Fund, which is advised by
Goldman Sachs Asset Management International, an
affiliate of Goldman, Sachs & Co.)
GOLDMAN SACHS VIT CORE LARGE CAP GROWTH FUND seeks
long-term growth of capital through a broadly diversified
portfolio of equity securities of large cap U.S. issuers
that are expected to have better prospects for earnings
growth than the growth rate of the general domestic
economy. Dividend income is a secondary consideration.
GOLDMAN SACHS VIT CORE SMALL CAP EQUITY FUND seeks
long-term growth of capital through a broadly diversified
portfolio of equity securities of U.S. issuers which are
included in the Russell 2000 Index at the time of
investment.
GOLDMAN SACHS VIT CORE U.S. EQUITY FUND seeks
long-term growth of capital and dividend income through a
broadly diversified portfolio of large cap and blue chip
equity securities representing all major sectors of the
U.S. economy.
GOLDMAN SACHS VIT GROWTH AND INCOME FUND seeks
long-term growth of capital and growth of income through
investments in equity securities that
9 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE
INSURANCE
<PAGE>
are considered to have favorable prospects for capital
appreciation and/or dividend paying ability.
GOLDMAN SACHS VIT INTERNATIONAL EQUITY FUND seeks
long-term capital appreciation through investments in
equity securities of companies that are organized outside
the U.S. or whose securities are principally traded
outside the U.S.
MFS/SUN LIFE SERIES TRUST (advised by our affiliate
Massachusetts Financial Services Company)
CAPITAL APPRECIATION SERIES seeks capital
appreciation by investing in securities of all types,
with a major emphasis on common stocks.
EMERGING GROWTH SERIES seeks to provide long-term
growth of capital by investing primarily (i.e. at least
80% of all its assets under normal circumstances) in
common stocks of emerging growth companies, including
companies that the series' investment adviser believes
are early in their life cycle but which have the
potential to become major enterprises. Dividend and
interest income from portfolio securities, if any, is
incidental to its objective of long-term growth of
capital.
GOVERNMENT SECURITIES SERIES seeks current income and
preservation of capital by investing in U.S. Government
and U.S. Government-related securities.
HIGH YIELD SERIES seeks high current income and
capital appreciation by investing primarily in fixed
income securities of U.S. and foreign issuers which may
be in the lower rated categories or unrated (commonly
known as "junk bonds") and which may include equity
features. The series may invest up to 100% of its net
assets in these securities, which generally involve
greater risks, including volatility of price, risk of
principal and income, default risks and less liquidity,
than securities in the higher rated categories.
MASSACHUSETTS INVESTORS GROWTH STOCK SERIES seeks to
provide long-term growth of capital and future income
rather than current income. The series invests, under
normal market conditions, at least 80% of its total
assets in common stocks and related securities, such as
preferred stocks, convertible securities and depositary
receipts for those securities, of companies which the
series' adviser believes offer better than average
prospects for long-term growth.
MASSACHUSETTS INVESTORS TRUST SERIES seeks long-term
growth of capital and future income while providing more
current dividend income than is normally obtainable from
a portfolio of only growth stocks. The series invests,
under normal market conditions, at least 65% of its total
assets in common stock and related securities, such as
preferred stocks, convertible securities and depositary
receipts for those securities. While the series may
invest in companies
10 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE
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<PAGE>
of any size, the series generally focuses on companies
with larger market capitalizations that the series'
adviser believes have sustainable growth prospects and
attractive valuations based on current and expected
earnings of cash flow. This series was formerly known as
the Conservative Growth Series.
NEW DISCOVERY SERIES seeks capital appreciation. The
series invests, under normal market conditions, at least
65% of its total assets in common stocks and related
securities, such as preferred stocks, convertible
securities and depositary receipts for those securities,
of emerging growth companies. These companies are
companies that the series' adviser believes are either
early in their life cycle but have the potential to
become major enterprises or are major enterprises whose
rates of earnings growth are expected to accelerate.
TOTAL RETURN SERIES seeks to obtain above-average
income (compared to a portfolio entirely invested in
equity securities) consistent with prudent employment of
capital; its secondary objective is to take advantage of
opportunities for growth of capital and income since many
securities offering a better than average yield may also
possess growth potential. The series is a "balanced
fund," and invests in a combination of equity and fixed
income securities. Under normal market conditions, the
series invests (i) at least 40%, but not more than 75%,
of its net assets in common stocks and related
securities, such as preferred stocks, bonds, warrants or
rights convertible into stock, and depositary receipts
for those securities; and (ii) at least 25% of its net
assets in non-convertible fixed income securities.
UTILITIES SERIES seeks capital growth and current
income (income above that available from a portfolio
invested entirely in equity securities) by investing
under normal market conditions, at least 65% of its
assets in equity and debt securities issued by both
domestic and foreign utility companies.
OCC ACCUMULATION TRUST (advised by OpCap Advisors)
EQUITY PORTFOLIO seeks long-term capital appreciation
through investment in a diversified portfolio of equity
securities selected on the basis of a value oriented
approach to investing.
MANAGED PORTFOLIO seeks to achieve growth of capital
over time through investment in a portfolio consisting of
common stocks, bonds and cash equivalents, the
percentages of which will vary based on the portfolio
manager's assessments of the relative outlook for such
investments.
MID CAP PORTFOLIO seeks long-term capital
appreciation through investment in a diversified
portfolio of equity securities. The portfolio will invest
primarily in companies with market capitalizations of
between $500 million and $5 billion.
11 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE
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<PAGE>
SMALL CAP PORTFOLIO seeks capital appreciation
through investment in a diversified portfolio of equity
securities of companies with market capitalizations of
under $1 billion.
SUN CAPITAL ADVISERS TRUST (advised by our affiliate Sun
Capital Advisers, Inc.)
SUN CAPITAL BLUE CHIP MID CAP FUND seeks long-term
capital growth by investing primarily in a diversified
portfolio of common stocks and other equity securities of
U.S. companies with market capitalizations within the
range represented by the Standard & Poor's (S&P) Mid Cap
400 Index.
SUN CAPITAL INVESTORS FOUNDATION FUND seeks long-term
capital growth by investing primarily in a diversified
portfolio of common stocks and other equity securities of
U.S. companies. The fund will generally hold stocks of
companies with market capitalizations within the range
represented by the S&P 500 Index.
SUN CAPITAL INVESTMENT GRADE BOND FUND seeks high
current income consistent with relative stability of
principal by investing primarily in investment grade
bonds, including those issued by U.S. and foreign
companies (including companies in emerging market
countries), the U.S. Government and its agencies and
instrumentalities (including those which issue
mortgage-backed securities), foreign governments
(including those of emerging market countries), and
multinational organizations such as the World Bank.
SUN CAPITAL MONEY MARKET FUND seeks to maximize
current income, consistent with maintaining liquidity and
preserving capital, by investing exclusively in high
quality U.S. dollar-denominated money market securities,
including those issued by U.S. and foreign banks,
corporate issuers, the U.S. Government and its agencies
and instrumentalities, foreign governments and
multinational organizations such as the World Bank. The
fund may invest in all types of money market securities,
including commercial paper, certificates of deposit,
bankers' acceptances, mortgage-backed and asset-backed
securities, repurchase agreements and other short-term
debt securities.
SUN CAPITAL REAL ESTATE FUND primarily seeks
long-term capital growth and, secondarily, seeks current
income and growth of income. The fund invests at least
80% of its assets in securities of real estate trusts and
other real estate companies. The fund generally focuses
its investments in equity REITs, which invest most of
their assets directly in U.S. or foreign real property,
receive most of their income from rents and may also
realize gains by selling appreciated properties.
SUN CAPITAL SELECT EQUITY FUND seeks long-term
capital growth. The fund will normally invest in twenty
to forty common stocks and other equity securities
12 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE
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<PAGE>
of large capitalization U.S. companies. These investments
are selected primarily from the S&P 500 Index.
Although the investment objectives and policies of
the Funds may be similar to those of other mutual funds
managed by the Funds' investment advisers, the investment
results of the Funds can differ significantly from those
of such other mutual funds.
Some of the Funds' investment advisers may compensate
us for administering the Funds as investment options
under the Policy. Such compensation is paid from the
advisers' assets.
The Funds may also be available to separate accounts
offering variable annuity and variable life products of
other affiliated and unaffiliated insurance companies, as
well as our other separate accounts. Although we do not
anticipate any disadvantages in this, there is a
possibility that a material conflict may arise between
the interests of the Variable Account and one or more of
the other separate accounts participating in the Funds. A
conflict may occur due to a change in law affecting the
operations of variable life and variable annuity separate
accounts, differences in the voting instructions of
policyowners and those of other companies, or some other
reason. In the event of conflict, we will take any steps
necessary to protect policyowners, including withdrawal
of the Variable Account from participation in the Funds
which are involved in the conflict or substitution of
shares of other Funds.
FEES AND EXPENSES OF THE FUNDS
Fund shares are purchased at net asset value, which
reflects the deduction of investment management fees and
certain other expenses. The management fees are charged
by each Fund's investment adviser for managing the Fund
and selecting its portfolio of securities. Other Fund
expenses can include such items as interest expense on
loans and contracts with transfer agents, custodians, and
other companies that provide services to the Fund.
The Fund expenses are assessed at the Fund level and
are not direct charges against Variable Account assets or
reductions from Cash Values. These expenses are taken
into consideration in computing each Fund's net asset
value, which is the share price used to calculate the
Unit Values of the Variable Account. The table contained
in the front part of this prospectus shows annual
expenses paid by the Funds as a percentage of average net
assets.
The management fees and other expenses of the Funds
are more fully described in the Fund Prospectuses. The
information relating to the Fund expenses was provided by
the Fund and was not independently verified by us.
13 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE
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<PAGE>
OUR GENERAL ACCOUNT
Our general account consists of all of our assets
other than those in our variable separate accounts.
Subject to applicable law, we have sole discretion over
the investment of our general account assets.
<TABLE>
<S> <C>
Fixed account investments Interests in our general account offered through the fixed account
are not securities and we investment option have not been registered under the Securities Act of 1933 and
are not an investment our general account has not been registered as an investment company under the
company. Investment Company Act of 1940.
</TABLE>
You may allocate net premiums to the fixed account
investment option and may transfer any portion of your
investments in the Sub-Accounts to the fixed account. You
may also transfer a portion of your investment in the
fixed account to any of the variable Sub-Accounts.
Transfers may be subject to certain restrictions.
<TABLE>
<S> <C>
Fixed account investments An investment in the fixed account option does not entitle you to share
earn at least 3% interest. in the investment experience of our general account. Instead, we guarantee that
your fixed account investment will accrue interest daily at an effective annual
rate of at least 3%, without regard to the actual investment experience of our
general account. We may, at our sole discretion, credit a higher rate of
interest, but are not obligated to do so.
</TABLE>
INVESTMENT PROGRAMS
DOLLAR COST AVERAGING
You may select, at no extra charge, a dollar cost
averaging program by allocating a minimum of $5,000 to a
Sub-Account designated by us. Each month or quarter, a
level amount will be transferred automatically, at no
cost, to one or more Sub-Accounts chosen by you, up to a
maximum of twelve. The program continues until your
Account Value allocated to the program is depleted or you
elect to stop the program.
The main objective of a dollar cost averaging program
is to minimize the impact of short-term price
fluctuations. Since the same dollar amount is transferred
to other available investment options at set intervals,
dollar cost averaging allows you to purchase more Units
(and, indirectly, more Fund shares) when prices are low
and fewer Units (and, indirectly, fewer Fund shares) when
prices are high. Therefore, a lower average cost per Unit
may be achieved over the long-term. A dollar cost
averaging program allows you to take advantage of market
fluctuations. However, it is important to understand that
a dollar cost averaging program does not assure a profit
or protect against loss in a declining market.
14 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE
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<PAGE>
ASSET REBALANCING
Once your money has been allocated among the
investment options, the earnings may cause the percentage
invested in each investment option to differ from your
allocation instructions. You can direct us to
automatically rebalance your contract to return to your
allocation percentages by selecting our asset rebalancing
program. The rebalancing will be on a calendar quarter,
semi-annual or annual basis, depending on your
instructions. The minimum amount of each rebalancing is
$1,000.
There is no charge for asset rebalancing. In
addition, rebalancing will not be counted against any
limit we may place on your number of transfers in a
Policy Year. You may not select dollar cost averaging and
asset rebalancing at the same time. We reserve the right
to modify, suspend or terminate this program at anytime.
We also reserve the right to waive the $1,000 minimum
amount for asset rebalancing.
ASSET ALLOCATION
One or more asset allocation investment programs may
be made available in connection with your Policy, at no
extra charge. An asset allocation program provides for
the allocation of your Account Value among the available
investment options. These programs will be fully
described in a separate brochure. You may elect to enter
into an asset allocation investment program under the
terms and conditions described in the brochure.
ABOUT THE POLICY
POLICY APPLICATION, ISSUANCE AND INITIAL PREMIUM
To purchase a Policy, you must first submit an
application to our Principal Office. We may then follow
certain underwriting procedures designed to determine the
insurability of the proposed Insureds. We offer the
Policy on a regular (medical) underwriting basis and may
require medical examinations and further information
before the proposed application is approved. Both
Insureds must generally be acceptable risks based on our
underwriting limits and standards. We may, however, issue
a Policy based on the health of one Insured where the
other Insured would not normally be an acceptable risk
for comparable individual life insurance coverage. A
Policy cannot be issued until the underwriting process
has been completed to our satisfaction. We reserve the
right to reject an application that does not meet our
underwriting requirements or to apply extra charges for
the underwriting classification for an Insured, which
will result in increased Monthly Cost of Insurance
charges.
15 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE
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<PAGE>
You must specify certain information in the
application, including the Specified Face Amount, the
death benefit option and supplemental benefits, if any.
The Specified Face Amount generally may not be decreased
below $250,000--the "Minimum Specified Face Amount."
While your application is being reviewed, we may make
available to you temporary last survivor life insurance
coverage if you have signed a Policy Application and, at
that same time, submitted a separate signed application
for temporary coverage and made an advance payment. The
temporary coverage, if available, begins on the date that
separate application for it is signed, has a maximum
amount and is subject to other conditions.
Pending approval of your application, any advance
payments will be held in our general account. Upon
approval of the application, we will issue to you a
Policy on the lives of the Insureds. A specified Initial
Premium is due and payable as of the date of issue for
the Policy. The Effective Date of Coverage for your
Policy will be the later of--
<TABLE>
<S> <C>
The ISSUE DATE is the date - the ISSUE DATE, OR
we produce your Policy on - the date a premium is paid equal to or in excess of the specified Initial
our system and is specified Premium.
in your Policy.
</TABLE>
If an application is not approved, we will promptly
return all advance payments to you.
RIGHT OF RETURN PERIOD
If you are not satisfied with your Policy, it may be
returned by delivering or mailing it to our Principal
Office or to the representative from whom the Policy was
purchased within 10 days from the date of receipt of your
Policy (the "Right of Return Period"). A longer period
may apply in some states.
A Policy returned under this provision will be deemed
void. You will receive a refund equal to the sum of all
premium payments made, if required by applicable state
insurance law; otherwise, your refund will equal the sum
of--
- the difference between any premium
payments made, including fees and
charges, and the amounts allocated to
the Variable Account;
- the value of the amounts allocated to
the Variable Account on the date the
cancellation request is received by us
at our Principal Office; and
- any fees or charges imposed on amounts
allocated to the Variable Account.
16 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE
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<PAGE>
Unless you are entitled under applicable law to
receive a full refund of premiums paid, you bear all of
the investment risks with respect to the amount of any
net premiums allocated to the Variable Account during the
Right of Return Period.
During the Right of Return Period, we will allocate
the net premium payments to the Sun Capital Money Market
Sub-Account or to the fixed account investment option,
whichever we specify in your Policy. Upon expiration of
the Right of Return Period, the Account Value in that
Sub-Account or in the fixed account option, as
applicable, will be transferred to the Sub-Accounts of
the Variable Account and to the fixed account option in
accordance with your allocation instructions.
PREMIUM PAYMENTS
All premium payments must be made payable to Sun Life
Assurance Company of Canada (U.S.) and mailed to our
Principal Office. The Initial Premium will be due and
payable as of your Policy's Issue Date. Additional
premium payments may be paid to us subject to the
limitations described below.
PREMIUM. We reserve the right to limit the number of
premium payments we accept in a year. No premium payment
may be less than $50 without our consent, although we
will accept a smaller premium payment if necessary to
keep your Policy in force. We reserve the right not to
accept a premium payment that causes the death benefit to
increase by an amount that exceeds the premium received.
Evidence of insurability satisfactory to us may be
required before we accept any such premium.
We will not accept premium payments that would, in
our opinion, cause your Policy to fail to qualify as life
insurance under applicable federal tax law. If a premium
payment is made in excess of these limits, we will accept
only that portion of the premium within those limits, and
will refund the remainder to you.
NET PREMIUMS. The net premium is the amount you pay
as the premium less the Expense Charges Applied to
Premium.
ALLOCATION OF NET PREMIUM. Except as otherwise
described herein, net premium will be allocated in
accordance with your allocation percentages. You must
allocate at least 5% of net premium to any Sub-Account
you choose. Percentages must be in whole numbers. We
reserve the right to limit the number of Sub-Accounts to
which you may allocate your Account Value to not more
than 20 Sub-Accounts.
17 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE
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<PAGE>
Premiums received prior to the end of the Right of
Return Period will be credited to the Sun Capital Money
Market Sub-Account or to the fixed account investment
option, whichever we specify in your Policy. Your initial
allocation percentages will take effect at the end of the
Right of Return Period.
You may change your allocation percentages at any
time by telephone or written request to our Principal
Office. Telephone requests will be honored only if we
have a properly completed telephone authorization form
for you on file. We, our affiliates and the
representative from whom you purchased your Policy will
not be responsible for losses resulting from acting upon
telephone requests reasonably believed to be genuine. We
will use reasonable procedures to confirm that
instructions communicated by telephone are genuine. You
will be required to identify yourself by name and a
personal identification number for transactions initiated
by telephone. An allocation change will be effective as
of the date we receive the request for that change.
PLANNED PERIODIC PREMIUMS. While you are not
required to make additional premium payments according to
a fixed schedule, you may select a planned periodic
premium schedule and corresponding billing period,
subject to our limits. We will send you reminder notices
for the planned periodic premium at each billing period
as specified in your Policy, unless reminder notices have
been suspended as described below. You are not required,
however, to pay the planned periodic premium; you may
increase or decrease the planned periodic premium subject
to our limits, and you may skip a planned payment or make
unscheduled payments. You may change your planned payment
schedule or the billing period, subject to our approval.
Depending on the investment performance of the
Sub-Accounts you select, the planned periodic premium may
not be sufficient to keep your Policy in force, and you
may need to change your planned payment schedule or make
additional payments in order to prevent termination of
your Policy. We will suspend reminder notices at your
written request, and we reserve the right to suspend
reminder notices if premiums are not being paid (except
for notices in connection with the Grace Period). We will
notify you prior to suspending reminder notices.
DEATH BENEFIT
If your Policy is in force at the time of the death
of the last Insured to die, we will pay the beneficiary
an amount based on the death benefit option you select
once we have received Due Proof of the death of each
Insured. The amount payable will be:
- the amount of the selected death
benefit option, PLUS
- any amounts payable under any
supplemental benefits added to your
Policy, MINUS
18 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE
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<PAGE>
- the value of any Policy Debt on the
date of the last Insured to die, MINUS
- any Unpaid Policy Charges.
We will pay this amount to the beneficiary in one
lump sum, unless we and the beneficiary agree on another
form of settlement.
<TABLE>
<S> <C>
You may select between two The Policy has two death benefit options. You may change the death
death benefit options. benefit option after the first Policy Year.
</TABLE>
OPTION A. Under this option, the death benefit is--
- the Policy's Specified Face Amount on
the date of death of the last Insured
to die; OR, IF GREATER,
- the Policy's Account Value on the date
of death of the last Insured to die
multiplied by the applicable
percentage shown in the table set
forth in Appendix B.
This death benefit option should be selected if you
want to minimize your cost of insurance.
OPTION B. Under this option, the death benefit is--
- the sum of the Specified Face Amount
and Account Value of the Policy on the
date of death of the last Insured to
die; OR, IF GREATER,
- the Policy's Account Value on the date
of death of the last Insured to die
multiplied by the applicable
percentage shown in the table set
forth in Appendix B.
This death benefit option should be selected if you
want your death benefit to increase with your Policy's
Account Value.
CHANGES IN SPECIFIED FACE AMOUNT
<TABLE>
<S> <C>
You may increase or decrease You may increase or decrease the Specified Face Amount of your Policy
the Specified Face Amount after the first Policy Year within certain limits.
within certain limits. MINIMUM CHANGES. Each increase in the Specified Face Amount must be at least
$20,000. We reserve the right to change the minimum amount by which you may
change the Specified Face Amount.
</TABLE>
INCREASES. To request an increase, you must provide
satisfactory evidence of insurability for each Insured.
Once requested, an increase will become effective at the
next policy anniversary following our approval of your
request. The Policy does not allow for an increase if the
Attained Age of either Insured is greater than 80 on the
effective date of the increase.
19 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE
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<PAGE>
DECREASES. A decrease will become effective at the
beginning of the next Policy Month following our approval
of your request. The Specified Face Amount after the
decrease must be at least $250,000. Surrender charges
will apply to decreases in the Specified Face Amount
during the surrender charge period except for decreases
in the Specified Face Amount resulting from a change in
the death benefit option or a partial surrender.
For purposes of determining surrender charges and
later cost of insurance charges, we will apply a decrease
in Specified Face Amount in the following order--
- first, to the most recent increase;
- second, to the next most recent
increases, in reverse chronological
order; and
- third, to the initial Specified Face
Amount.
ACCESSING YOUR ACCOUNT VALUE
<TABLE>
<S> <C>
If you surrender your Policy SURRENDERS AND SURRENDER CHARGES. You may surrender your Policy for its
and receive its Cash Surren- Cash Surrender Value at any time while either Insured is living. If you do, the
der Value, you may incur insurance coverage and all other benefits under the Policy will terminate.
surrender charges, taxes, CASH SURRENDER VALUE is your Policy's Account Value less the sum of--
and tax penalties.
</TABLE>
- the outstanding balance of any Policy
Debt; and
- any surrender charges.
We will deduct surrender charges from your Account
Value if you surrender your Policy or request a decrease
in the Specified Face Amount during the surrender charge
period. There are separate surrender charges for the
initial Specified Face Amount and any increase in the
Specified Face Amount you request. The surrender charge
period will start on your Policy's Issue Date and on the
effective date for the increase, respectively. The
surrender charge period will be the shortest of--
- the 15-year period following the
applicable surrender charge period
start date;
- the longer of the 9-year period
following the applicable surrender
charge period start date, and the
period ending when the younger Insured
reaches Attained Age 85; and
- the period ending when the younger
Insured reaches Attained Age 95.
20 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE
INSURANCE
<PAGE>
We will determine your Cash Surrender Value at the
next close of business on the New York Stock Exchange
after we receive your written request for surrender at
our Principal Office.
If you surrender your Policy, we will apply a
surrender charge to the initial Specified Face Amount and
to each increase in the Specified Face Amount other than
an increase resulting from a change in the death benefit
option. The surrender charge will be calculated
separately for the initial Specified Face Amount and each
increase in the Specified Face Amount. The surrender
charge will be an amount based on certain factors,
including the Policy's Specified Face Amount and the age,
sex and rating class of each Insured. The following are
examples of surrender charges at representative Issue
Ages.
FIRST YEAR SURRENDER CHARGES
PER $1,000 OF SPECIFIED FACE AMOUNT
(Male/Female Insured Pair, Non-Tobacco)
<TABLE>
<CAPTION>
ISSUE AGES ISSUE AGES ISSUE AGES
35 & 35 45 & 45 55 & 55
---------- ----------- -----------
<S> <C> <C>
$16.10 $20.25 $27.22
<CAPTION>
ISSUE AGES ISSUE AGES ISSUE AGES
65 & 65 75 & 75 85 & 85
---------- ----------- -----------
$ 40.02 $ 45.00 $ 45.00
<S> <C> <C>
</TABLE>
The surrender charge will be calculated based on
surrender charge percentages for the initial Specified
Face Amount and each increase in the Specified Face
Amount. The surrender charge percentages begin at 100% in
the first year and decrease with time. Examples of
surrender charge percentages at representative Issue Ages
are shown below
21 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE
INSURANCE
<PAGE>
SURRENDER CHARGE
(As Percentage of First Year Surrender Charge)
<TABLE>
<CAPTION>
ISSUE AGES
YEAR 35 & 35 45 & 45 55 & 55 65 & 65 75 & 75 85 & 85
---- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
1 100.000 100.000 100.000 100.000 100.000 100.000
2 90.000 90.000 90.000 90.000 90.000 90.000
3 80.000 80.000 80.000 80.000 80.000 80.000
4 70.000 70.000 70.000 70.000 70.000 70.000
5 60.000 60.000 60.000 60.000 60.000 60.000
6 50.000 50.000 50.000 50.000 50.000 50.000
7 45.000 45.000 45.000 45.000 40.000 37.500
8 40.000 40.000 40.000 40.000 30.000 25.000
9 35.000 35.000 35.000 35.000 20.000 12.500
10 30.000 30.000 30.000 30.000 10.000 0.000
11 25.000 25.000 25.000 25.000 0.000 0.000
12 20.000 20.000 20.000 20.000 0.000 0.000
13 15.000 15.000 15.000 15.000 0.000 0.000
14 10.000 10.000 10.000 10.000 0.000 0.000
15 5.000 5.000 5.000 5.000 0.000 0.000
16 and thereafter 0.000 0.000 0.000 0.000 0.000 0.000
</TABLE>
A surrender charge will be applied for each decrease
in the Specified Face Amount except for decreases in
Specified Face Amount resulting from a change in death
benefit option or partial surrender. These surrender
charges will be applied in the following order:
- first, to the most recent increase;
- second, to the next most recent
increases, in reverse chronological
order; and
- third, to the initial Specified Face
Amount.
On a decrease in the initial Specified Face Amount,
you will pay a proportion of the full surrender charge
based on the ratio of the Face Amount decrease to the
Initial Face Amount. The surrender charge you pay on a
decrease that is less than the full amount of an increase
in Specified Face Amount will be calculated on the same
basis. Future surrender charges will be reduced by any
applicable surrender charges for a decrease in the
Specified Face Amount.
You may allocate any surrender charges resulting from
a decrease in the Specified Face Amount among the
Sub-Accounts and the Fixed Account Value. If you do not
specify the allocation, then the surrender charges will
be allocated proportionally among the Sub-Accounts and
the Fixed Account Value in excess of any Policy Debt.
22 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE
INSURANCE
<PAGE>
PARTIAL SURRENDERS. You may make a partial surrender
of your Policy once each Policy Year after the first
Policy Year by written request to us. Each partial
surrender must be for at least $200, and no partial
surrender may be made--
- during the first ten Policy Years for
more than 20 percent of your Cash
Surrender Value at the end of the
first Valuation Date after we receive
your request; or
- thereafter for more than your Cash
Surrender Value.
If the applicable death benefit option is Option A,
the Specified Face Amount will be decreased by the amount
of the partial surrender. We will apply the decrease to
the initial Specified Face Amount and to each increase in
Specified Face Amount in the following order--
- first, to the most recent increase;
- second, to the next most recent
increases, in reverse chronological
order; and
- third, to the initial Specified Face
Amount.
We will not accept requests for a partial surrender
if the Specified Face Amount remaining in force after the
partial surrender would be less than the Minimum
Specified Face Amount. We will effect a partial surrender
at the next close of business on the New York Stock
Exchange after we receive your written request for
surrender.
POLICY LOANS. You may request a policy loan of up to
90% of your Policy's Cash Value, decreased by the amount
of any outstanding Policy Debt on the date the policy
loan is made. Your Policy will terminate for no value
subject to a Grace Period if the Policy Debt exceeds the
Cash Value. During the first five Policy Years, however,
your Policy will not terminate if it satisfies the
minimum premium test.
<TABLE>
<S> <C>
You may borrow from us using You may allocate the policy loan among the Sub-Accounts and the Fixed
your Policy as collateral. Account Value. If you do not specify the allocation, then the policy loan will be
allocated proportionally among the Sub-Accounts and the Fixed Account Value in
excess of any Policy Debt. Loan amounts allocated to the Sub-Accounts will be
transferred to the Fixed Account Value. We will periodically credit interest at
an effective annual rate of 3% on the loaned values of the Fixed Account Value.
</TABLE>
Interest on the policy loan will accrue daily at 4%
annually during Policy Years 1 through 10 and 3% annually
thereafter. This interest will be due and payable to us
in arrears on each policy anniversary. Any unpaid
interest will be added to the principal amount as an
additional policy loan and will bear interest at the same
rate and will be assessed in the same manner as the prior
policy loan.
23 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE
INSURANCE
<PAGE>
There is no definitive guidance concerning the tax
treatment of a policy loan when the interest rate
credited to the loan is the same as the interest rate
charged against the loan. You should consult your tax
adviser regarding loan amounts in Policy Years 11 and
thereafter.
All funds we receive from you will be credited to
your Policy as premium unless we have received written
notice, in a form satisfactory to us, that the funds are
for loan repayment. In the event you have a loan against
the Policy, it is generally advantageous to repay the
loan rather than make a premium payment because premium
payments incur expense charges whereas loan repayments do
not. Loan repayments will first reduce the outstanding
balance of the policy loan and then accrued but unpaid
interest on such loans. We will accept repayment of any
policy loan at any time before Maturity.
A policy loan, whether or not repaid, will affect the
Policy Proceeds payable upon the death of the last
Insured to die and the Account Value because the
investment results of the Sub-Accounts will apply only to
the non-loaned portion of the Account Value. The longer a
loan is outstanding, the greater the effect is likely to
be and, depending on the investment results of the
Sub-Accounts or the Fixed Account Value while the loan is
outstanding, the effect could be favorable or
unfavorable.
TRANSFER PRIVILEGES
Subject to our rules as they may exist from time to
time and to any limits that may be imposed by the Funds,
you may at any time transfer to another Sub-Account all
or a portion of the Account Value allocated to a
Sub-Account or to the Fixed Account Value. We will make
transfers pursuant to an authorized written or telephone
request to us. Telephone requests will be honored only if
we have a properly completed telephone authorization form
for you on file. We, our affiliates and the
representative from whom you purchased your Policy will
not be responsible for losses resulting from acting upon
telephone requests reasonably believed to be genuine. We
will use reasonable procedures to confirm that
instructions communicated by telephone are genuine. For
transactions initiated by telephone, you will be required
to identify yourself by name and a personal
identification number.
Transfers may be requested by indicating the transfer
of either a specified dollar amount or a specified
percentage of the Fixed Account Value or the Sub-
Account's value from which the transfer will be made. If
you request a transfer based on a specified percentage of
the Fixed Account Value or the Sub-Account's value, that
percentage will be converted into a request for the
transfer of a specified dollar amount based on
application of the specified percentage to the Fixed
Account Value or the Sub-Account's value at the time the
request is
24 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE
INSURANCE
<PAGE>
received. We reserve the right to limit the number of
Sub-Accounts to which you may allocate your Account Value
to not more than 20 Sub-Accounts.
Transfer privileges are subject to our consent. We
reserve the right to impose limitations on transfers,
including, but not limited to: (1) the minimum amount
that may be transferred; and (2) the minimum amount that
may remain in a Sub-Account following a transfer from
that Sub-Account.
We reserve the right to restrict amounts transferred
to the Variable Account from the Fixed Account Value to
20% of that portion of the Account Value attributable to
the Fixed Account Value as of the end of the previous
Policy Year.
We reserve the right to restrict amounts transferred
to the Fixed Account Value from the Variable Account to
20% of that portion of the Account Value attributable to
the Variable Account as of the end of the previous Policy
Year. We further reserve the right to restrict amounts
transferred to the Fixed Account Value from the Variable
Account in the event the portion of the Account Value
attributable to the Fixed Account Value would exceed 30%
of the Account Value.
ACCOUNT VALUE
Your Account Value is the sum of the amounts in each
Sub-Account of the Variable Account with respect to your
Policy, plus the amount of the Fixed Account Value. The
Account Value varies depending upon the Premiums paid,
Expense Charges Applied to Premium, Mortality and Expense
Risk Percentage charges, Monthly Face Amount Charges,
Monthly Cost of Insurance charges, partial surrenders,
fees, policy loans and the net investment factor
(described below) for the Sub-Accounts to which your
Account Value is allocated.
<TABLE>
<S> <C>
A VALUATION DATE is any day VARIABLE ACCOUNT VALUE. We measure the amounts in the Sub- Accounts in
on which we, the applicable terms of Units and Unit Values. On any given date, the amount you have in a
Fund, and the NYSE are open Sub-Account is equal to the Unit Value multiplied by the number of Units credited
for business. to you in that Sub-Account. Amounts allocated to a Sub-Account will be used to
THE VALUATION PERIOD is the purchase Units of that Sub-Account. Units are redeemed when you make partial
period of time from one surrenders, undertake policy loans or transfer amounts from a Sub-Account, and
determination of Unit Values for the payment of Monthly Face Amount Charges, and Monthly Cost of Insurance
to the next. charges and other fees. The number of Units of each Sub-Account purchased or
redeemed is determined by dividing the dollar amount of the transaction by the
Unit Value for the Sub-Account. The Unit Value for each Sub-Account is
established at $10.00 for the first VALUATION DATE of the Sub-Account. The Unit
Value for any subsequent Valuation Date is equal to the Unit Value for the
preceding Valuation Date multiplied by the net investment factor
</TABLE>
25 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE
INSURANCE
<PAGE>
(determined as provided below). The Unit Value of a
Sub-Account for any Valuation Date is determined as of
the close of the VALUATION PERIOD ending on that
Valuation Date.
Transactions are processed on the date we receive a
premium at our Principal Office or any acceptable written
or telephonic request is received at our Principal
Office. If your premium or request is received on a date
that is not a Valuation Date, or after the close of the
New York Stock Exchange on a Valuation Date, the
transaction will be processed on the next Valuation Date.
<TABLE>
<S> <C>
The INVESTMENT START DATE is The Account Value attributable to each Sub-Account of the Variable
the date we apply your first Account on the INVESTMENT START DATE equals:
premium payment, which will - that portion of net premium received and allocated to the Sub-Account, MINUS
be the later of the Issue - that portion of the Monthly Face Amount Charges due on the policy date and
Date, the Policy Date or the subsequent Monthly Anniversary Days through the Investment Start Date charged
Valuation Date we receive a to the Sub-Account, MINUS
premium equal to or in
excess of the Initial Pre-
mium.
</TABLE>
- that portion of the Monthly Cost of
Insurance deductions due from the
policy date through the Investment
Start Date charged to the Sub-Account.
The Account Value attributable to each Sub-Account of
the Variable Account on subsequent Valuation Dates is
equal to:
- the Account Value attributable to the
Sub-Account on the preceding Valuation
Date multiplied by that Sub-Account's
net investment factor, PLUS
- that portion of net premium received
and allocated to the Sub-Account
during the current Valuation Period,
PLUS
- any amounts transferred by you to the
Sub-Account from another Sub-Account
or from the Fixed Account Value during
the current Valuation Period, MINUS
- any amounts transferred by you from
the Sub-Account to another Sub-Account
or to the Fixed Account Value during
the current Valuation Period, MINUS
- that portion of any partial surrenders
deducted from the Sub-Account during
the current Valuation Period, MINUS
- that portion of any policy loan
transferred from the Sub-Account to
the Fixed Account Value during the
current Valuation Period, MINUS
- that portion of any surrender charges
associated with a decrease in the
Specified Face Amount charged to the
26 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE
INSURANCE
<PAGE>
Sub-Account during the current
Valuation Period, MINUS
- if a Monthly Anniversary Day occurs
during the current Valuation Period,
that portion of the Monthly Face
Amount Charge for the Policy Month
just beginning charged to the
Sub-Account, MINUS
- if a Monthly Anniversary Day occurs
during the current Valuation Period,
that portion of the Monthly Cost of
Insurance for the Policy Month just
ending charged to the Sub-Account.
NET INVESTMENT FACTOR. The NET INVESTMENT FACTOR for
each Sub-Account for any Valuation Period is determined
by deducting the Mortality and Expense Risk Charge for
each day in the Valuation Period from the quotient of
(1) and (2) where:
(1) is the net result of--
- the net asset value of a Fund share
held in the Sub-Account determined as
of the end of the Valuation Period,
PLUS
- the per share amount of any dividend
or other distribution declared on Fund
shares held in the Sub-Account if the
"ex-dividend" date occurs during the
Valuation Period, PLUS OR MINUS
- a per share credit or charge with
respect to any taxes reserved for by
us, or paid by us if not previously
reserved for, during the Valuation
Period which are determined by us to
be attributable to the operation of
the Sub-Account; and
(2) is the net asset value of a Fund share held in the
Sub-Account determined as of the end of the preceding
Valuation Period.
The Mortality and Expense Risk Charge for the
Valuation Period is the Daily Risk Charge times the
number of days in the Valuation Period.
The net investment factor may be greater or less than
one.
FIXED ACCOUNT VALUE. The Fixed Account Value on the
Investment Start Date equals:
- that portion of net premium received
and allocated to the Fixed Account
Value accrued at interest, MINUS
- that portion of the Monthly Face
Amount Charges due on the policy date
and subsequent Monthly Anniversary
27 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE
INSURANCE
<PAGE>
Days through the Investment Start Date
charged to the Fixed Account Value
accrued at interest, MINUS
- that portion of the Monthly Cost of
Insurance deductions due from the
policy date through the Investment
Start Date charged to the Fixed
Account Value accrued at interest.
The Fixed Account Value on subsequent Valuation Dates
is equal to:
- the Fixed Account Value on the
preceding Valuation Date accrued at
interest, PLUS
- that portion of net premium received
and allocated to the Fixed Account
Value during the current Valuation
Period accrued at interest, PLUS
- any amounts transferred by you to the
Fixed Account Value from the Variable
Account during the current Valuation
Period accrued at interest, MINUS
- any amounts transferred by you from
the Fixed Account Value to the
Variable Account during the current
Valuation Period accrued at interest,
MINUS
- that portion of any partial surrenders
deducted from the Fixed Account Value
during the current Valuation Period
accrued at interest, PLUS
- any policy loan transferred from the
Variable Account to the Fixed Account
Value during the current Valuation
Period accrued at interest, MINUS
- that portion of any surrender charges
associated with a decrease in the
Specified Face Amount charged to the
Fixed Account Value during the current
Valuation Period, MINUS
- if a Monthly Anniversary Day occurs
during the current Valuation Period,
that portion of the Monthly Face
Amount Charge for the Policy Month
just beginning charged to the Fixed
Account Value accrued at interest,
MINUS
- if a Monthly Anniversary Day occurs
during the current Valuation Period,
that portion of the Monthly Cost of
Insurance for the Policy Month just
ending charged to the Fixed Account
Value accrued at interest.
The minimum guaranteed interest rate applicable to
the Fixed Account Value is 3% annually. Interest in
excess of the guaranteed rate may be applied in the
calculation of the Fixed Account Value at such increased
rates and in such manner as we may determine, based on
our expectations of future interest,
28 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE
INSURANCE
<PAGE>
mortality costs, persistency, expenses and taxes.
Interest credited will be computed on a compound interest
basis.
INSUFFICIENT VALUE. Your Policy will terminate for
no value, subject to a Grace Period described below if,
on a Valuation Date, a Monthly Anniversary Day occurred
during the Valuation Period and--
- your Policy's Cash Surrender Value is
equal to or less than zero or
- the Policy Debt exceeds the Cash
Value.
During the first five Policy Years, a policy will not
terminate by reason of insufficient value if it satisfies
the "minimum premium test," described below.
MINIMUM PREMIUM TEST (NO-LAPSE GUARANTEE). A Policy
satisfies the minimum premium test if the premiums paid
less any partial surrenders less any Policy Debt exceed
the sum of the "Minimum Monthly Premiums" which applied
to the Policy in each Policy Month from the policy date
to the Valuation Date.
The applicable Minimum Monthly Premiums are specified
in your Policy. We will revise the Minimum Monthly
Premiums as a result of any of the following changes to a
Policy:
- an increase in the Specified Face
Amount;
- an increase in the cost of any rider;
- when requested by you, the addition of
any rider.
The revised Minimum Monthly Premiums will be
effective as of the effective date of the change to the
Policy and will remain in effect until again revised by
any of the above changes.
GRACE PERIOD. If, on a Valuation Date, your Policy
will terminate by reason of insufficient value, we will
allow a Grace Period. This Grace Period will allow 61
days from that Valuation Date for the payment of a
premium sufficient to keep the Policy in force. Notice of
premium due will be mailed to your last known address or
the last known address of any assignee of record. We will
assume that your last known address is the address shown
on your Policy Application (or notice of assignment),
unless we receive written notice of a change in address
in a form satisfactory to us. If the premium due is not
paid within 61 days after the beginning of the Grace
Period, then the Policy and all rights to benefits will
terminate without value at the end of the 61-day period.
The Policy will continue to remain in force during this
Grace Period. If the Policy Proceeds become payable by us
during the Grace Period, then any Unpaid Policy Charges
will be deducted from the amount payable by us.
29 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE
INSURANCE
<PAGE>
SPLITTING UNITS. We reserve the right to split or
combine the value of Units. In effecting any such change,
strict equity will be preserved and no change will have a
material effect on the benefits or other provisions of
your Policy.
CHARGES AND DEDUCTIONS
EXPENSE CHARGES APPLIED TO PREMIUM. We will deduct a
charge from your premium payments as a sales load and for
our federal, state and local tax obligations, which we
will determine from time to time. For the first Policy
Year, the charge is 10% of premiums up to an amount
specified in the policy. The charge on premiums in excess
of that amount is guaranteed not to exceed 7.25%. The
current charge is 5.25%. For Policy Year 2 and
thereafter, the charge on all premiums is guaranteed not
to exceed 7.25%. The current charge is 5.25%.
MORTALITY AND EXPENSE RISK CHARGE. This charge is
for the mortality and expense risks we assume with
respect to the Policy. It is based on an annual rate that
we apply against the Variable Account on a daily basis.
The Mortality and Expense Risk Charge will be
determined by us from time to time based on our
expectations of future interest, mortality costs,
persistency, expenses and taxes, but will not exceed
0.80% annually. Currently, the charge is 0.50% annually.
The mortality risk we assume is that the group of
lives insured under the Policies may, on average, live
for shorter periods of time than we estimated. The
expense risk we assume is that our costs of issuing and
administering Policies may be more than we estimated.
MONTHLY FACE AMOUNT CHARGE. We will deduct a monthly
charge from your Account Value for the first 10 Policy
Years following the issuance of your Policy based on the
initial Specified Face Amount and for the first 10 Policy
Years following the effective date for each increase in
the Specified Face Amount, if any, based on the amount of
increase. The applicable charge is equal to the initial
Specified Face Amount or the amount of increase, as the
case may be, times a rate that varies based on the age,
sex and rating class of each Insured.
MONTHLY COST OF INSURANCE. We deduct a Monthly Cost
of Insurance charge from your Account Value to cover
anticipated costs of providing insurance coverage. The
Monthly Cost of Insurance deduction will be charged
proportionally to the amounts in the Sub-Accounts and the
Fixed Account Value in excess of any Policy Debt.
The Monthly Cost of Insurance equals the sum of (1),
(2) and (3) where:
30 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE
INSURANCE
<PAGE>
(1) is the cost of insurance charge equal to the Monthly
Cost of Insurance rate (described below) multiplied
by the net amount at risk divided by 1,000;
(2) is the monthly rider cost for any riders which are a
part of your Policy (with the monthly rider cost, if
any riders are added, as described in the rider
itself); and
(3) is any additional insurance charge calculated as
specified in your Policy, for, among other reasons,
occupational or avocational risks.
The NET AMOUNT AT RISK equals:
- the death benefit divided by 1.00247,
MINUS
- your Account Value on the Valuation
Date prior to assessing the Monthly
Face Amount Charge and the cost of
insurance charges.
If there are increases in the Specified Face Amount
other than increases caused by changes in the death
benefit option, the cost of insurance charge described
above is determined separately for the initial Specified
Face Amount and each increase in the Specified Face
Amount. In calculating the net amount at risk, your
Account Value will first be allocated to the initial
death benefit and then to each increase in the Specified
Face Amount in the order in which the increases were
made.
MONTHLY COST OF INSURANCE RATES. The Monthly Cost of
Insurance rates (except for any such rate applicable to
an increase in the Specified Face Amount) are based on
the length of time your Policy has been in force and the
sex, Issue Age and rating class, if any, of each Insured.
The Monthly Cost of Insurance rates applicable to each
increase in the Specified Face Amount are based on the
length of time the increase has been in force and the
sex, Issue Age and rating class, if any, of each Insured.
The Monthly Cost of Insurance rates will be determined by
us from time to time based on our expectations of future
experience with respect to mortality costs, persistency,
interest rates, expenses and taxes, but will not exceed
the Guaranteed Maximum Monthly Cost of Insurance Rates
based on the 1980 Commissioner's Standard Ordinary Smoker
and Nonsmoker Mortality Tables.
BASIS OF COMPUTATION. Guaranteed Maximum Monthly
Cost of Insurance Rates are based on the 1980
Commissioner's Standard Ordinary Smoker and Nonsmoker
Mortality Tables. The Guaranteed Maximum Monthly Cost of
Insurance Rates reflect any underwriting rating
applicable to the Policy. We have filed a detailed
statement of our methods for computing Cash Values with
the insurance department in each jurisdiction where the
Policy was delivered. These values equal or exceed the
minimum required by law.
31 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE
INSURANCE
<PAGE>
WAIVERS; REDUCED CHARGES; CREDITS; BONUS INTEREST RATES
We may reduce or waive the sales load or surrender
charge, credit additional amounts, or grant bonus
interest rates in situations where selling and/or
maintenance costs associated with the Policies are
reduced, sales of large Policies, and certain group or
sponsored arrangements. In addition, we may waive
charges, credit additional amounts, or grant bonus
interest rates in connection with Policies sold to our or
our affiliates' officers, directors and employees.
MATURITY
Your Policy will terminate when the younger Insured
reaches Attained Age 100. If either Insured is living and
your Policy is in force on the Maturity date, your
Policy's Cash Surrender Value will be payable to you.
MATURITY DATE EXTENSION
The Maturity date of your Policy will be extended
beyond the original Maturity date shown in your Policy,
if you so request in writing at our Principal Office
prior to the original Maturity date and the Policy has a
Cash Value on the original Maturity date. The new
Maturity date will be the one you request.
After the original Maturity date (if you have
requested a new Maturity date):
- We will not accept any more premium
payments for your Policy.
- No more deductions for the Monthly
Face Amount Charges or for Monthly
Cost of Insurance charges will be made
from your Account Value.
- The death benefit will be your Account
Value on the date of the death of the
last Insured to die.
- Your Policy's reinstatement provisions
will not apply.
Except as provided above, an extension of the
Maturity date does not alter your Policy.
If the Maturity date is extended as described above
or if the Maturity date is extended under the terms of
the Maturity Extension With Full Death Benefit Rider
described below, your Policy may not qualify as life
insurance beyond the original Maturity date and may be
subject to tax consequences. We recommend that you
receive counsel from your tax adviser. We will not be
responsible for any adverse tax consequences resulting
from the extension of the Maturity date of your Policy.
32 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE
INSURANCE
<PAGE>
SUPPLEMENTAL BENEFITS
You may supplement your Policy with the riders
described below; provided, however, that riders may not
be available in some states. An additional cost of
insurance will be charged for each rider in force as part
of the Monthly Cost of Insurance charge.
ESTATE PRESERVATION RIDER. This rider increases the
death benefit in the first four Policy Years.
MATURITY EXTENSION WITH FULL DEATH BENEFIT RIDER.
This rider allows you, upon request, to extend the
Maturity date of your Policy beyond the original Maturity
date. The Specified Face Amount and death benefit option
in effect at the original Maturity date will apply beyond
the original Maturity date.
TERMINATION OF POLICY
Your Policy will terminate on the earlier of the date
we receive your request to surrender, the expiration date
of the Grace Period due to insufficient value, the date
of death of the last Insured to die, or the Maturity
date.
REINSTATEMENT
We will reinstate your Policy prior to the Maturity
date, provided that the Policy has not been surrendered
and neither of the Insureds died after the date of that
termination and you--
- make a request for reinstatement
within five years from the date of
termination;
- submit satisfactory evidence of
insurability with respect to each
surviving Insured; and
- pay an amount sufficient to put the
Policy in force.
To put your Policy in Force, you must pay an amount
of at least--
- the Unpaid Policy Charges at the date
of termination; PLUS
- any excess of the Policy Debt over the
Cash Value at the date of termination;
PLUS
- three times the Monthly Cost of
Insurance charges applicable at the
date of reinstatement; PLUS
- three times the Monthly Face Amount
Charge.
During the first five Policy Years, an amount is
sufficient to put your Policy in force if it meets the
minimum premium test.
33 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE
INSURANCE
<PAGE>
A reinstated Policy's Specified Face Amount may not
exceed the Specified Face Amount at the time of
termination. The Account Value on the reinstatement date
reinstatement will reflect:
- the Account Value at the time of
termination; PLUS
- net premiums attributable to premiums
paid to reinstate the Policy; MINUS
- the Monthly Face Amount Charge; MINUS
- the Monthly Cost of Insurance charge
applicable on the date of
reinstatement; MINUS
- Any Unpaid Policy Charges at the time
of termination.
The effective date of reinstatement will be the
Monthly Anniversary Day that falls on or next follows the
date we approve your request.
Any Policy Debt at the time of termination must be
repaid upon the reinstatement of the Policy or carried
over to the reinstated Policy.
If your Policy was subject to surrender charges when
it lapsed, the reinstated Policy will be subject to
surrender charges as if it had not terminated.
The incontestability provision of the Policy will
apply to the Policy after reinstatement as regards
statements made in the application for reinstatement. The
suicide provision of the Policy will apply to the policy
after reinstatement. In those provisions of a reinstated
Policy, "Issue Date" means the effective date of
reinstatement.
DEFERRAL OF PAYMENT
We will usually pay any amount due from the Variable
Account within seven days after the Valuation Date
following our receipt of written notice satisfactory to
us giving rise to such payment or, in the case of the
death of the last Insured to die, Due Proof of the death
of each Insured. Payment is subject to our rights under
the Policy's incontestability and suicide provisions.
Payment of any amount payable from the Variable Account
on death of the last Insured to die, surrender, partial
surrender, or policy loan may be postponed whenever:
- the New York Stock Exchange is closed
other than customary weekend and
holiday closing, or trading on the
NYSE is otherwise restricted;
- the Securities and Exchange
Commission, by order, permits
postponement for the protection of
policyowners; or
34 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE
INSURANCE
<PAGE>
- an emergency exists as determined by
the Securities and Exchange
Commission, as a result of which
disposal of securities is not
reasonably practicable, or it is not
reasonably practicable to determine
the value of the assets of the
Variable Account.
RIGHTS OF OWNER
While either Insured is alive, unless you have
assigned any of these rights, you may:
- transfer ownership to a new owner;
- name a contingent owner who will
automatically become the owner of the
Policy if you die before the last
Insured to die;
- change or revoke a contingent owner;
- change or revoke a beneficiary;
- exercise all other rights in the
Policy;
- increase or decrease the Specified
Face Amount, subject to the other
provisions of the Policy;
- change the death benefit option,
subject to the other provisions of the
Policy.
When you transfer your rights to a new owner, you
automatically revoke any prior contingent owner
designation. When you want to change or revoke a prior
beneficiary designation, you have to specify that action.
You do not affect a prior beneficiary designation when
you merely transfer ownership, or change or revoke a
contingent owner designation.
You do not need the consent of a beneficiary or a
contingent owner in order to exercise any of your rights.
However, you must give us written notice satisfactory to
us of the requested action. Your request will then,
except as otherwise specified herein, be effective as of
the date you signed the form, subject to any action taken
before we received it.
RIGHTS OF BENEFICIARY
The beneficiary has no rights in the Policy until the
death of the last Insured to die. If a beneficiary is
alive at that time, the beneficiary will be entitled to
payment of the Policy Proceeds as they become due.
35 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE
INSURANCE
<PAGE>
OTHER POLICY PROVISIONS
ADDITION, DELETION OR SUBSTITUTION OF
INVESTMENTS. We may decide to add new Sub-Accounts at
any time. Also, shares of any or all of the Funds may not
always be available for purchase by the Sub-Accounts of
the Variable Account, or we may decide that further
investment in any such shares is no longer appropriate.
In either event, shares of other registered open-end
investment companies or unit investment trusts may be
substituted both for Fund shares already purchased by the
Variable Account and/or as the security to be purchased
in the future, provided that these substitutions have
been approved by the Securities and Exchange Commission,
to the extent necessary. In addition, the investment
policies of the Sub-Accounts will not be changed without
the approval of the Insurance Commissioner of the State
of Delaware. We also reserve the right to eliminate or
combine existing Sub-Accounts or to transfer assets
between Sub-Accounts. In the event of any substitution or
other act described in this paragraph, we may make
appropriate amendments to the Policy to reflect the
substitution.
ENTIRE CONTRACT. Your entire contract with us
consists solely of the Policy, including the attached
copy of your Policy Application and any attached copies
of supplemental applications for increases in the
Specified Face Amount.
ALTERATION. Sales representatives do not have any
authority to either alter or modify your Policy or to
waive any of its provisions. The only persons with this
authority are our president, actuary, secretary, or one
of our vice presidents.
MODIFICATION. Upon notice to you, we may modify the
Policy if such a modification--
- is necessary to make the Policy or the
Variable Account comply with any law
or regulation issued by a governmental
agency to which we are or the Variable
Account is subject;
- is necessary to assure continued
qualification of the Policy under the
Internal Revenue Code or other federal
or state laws as a life insurance
policy;
- is necessary to reflect a change in
the operation of the Variable Account
or the Sub-Accounts; or
- adds, deletes or otherwise changes
Sub-Account options.
We also reserve the right to modify certain
provisions of the Policy as stated in those provisions.
In the event of any such modification, we may make
appropriate amendments to the Policy to reflect such
modification.
ASSIGNMENTS. While either Insured is alive, you may
assign all or some of your rights under the Policy. All
assignments must be filed at our Principal Office and
must be in written form satisfactory to us. The
assignment will then
36 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE
INSURANCE
<PAGE>
be effective as of the date you signed the form, subject
to any action taken before we received it. We are not
responsible for the validity or legal effect of any
assignment.
NONPARTICIPATING. The Policy does not pay dividends.
The Policy does not share in our profits or surplus
earnings.
MISSTATEMENT OF AGE OR SEX. If the age or sex of
either Insured is stated incorrectly, the amounts payable
by us will be adjusted upon the death of the last Insured
to die as follows:
Misstatement Discovered at Death--The death benefit
will be recalculated to that which would be purchased by
the most recently charged Monthly Cost of Insurance rate
for the correct age or sex of each Insured.
Misstatement Discovered Prior to Death--Your Account
Value will be recalculated from the policy date using the
Monthly Cost of Insurance Rates based on the correct age
or sex of each Insured.
SUICIDE. If the last surviving Insured, whether sane
or insane, commits suicide within two years after your
Policy's Issue Date, we will not pay any part of the
Policy Proceeds. We will refund the premiums paid, less
the amount of any Policy Debt and any partial surrenders.
If the last surviving Insured, whether sane or
insane, commits suicide within two years after the
effective date of an increase in the Specified Face
Amount, then our liability as to that increase will be
the cost of insurance for that increase.
INCONTESTABILITY. All statements made in the
application or in a supplemental application are
representations and not warranties. We relied and will
rely on those statements when approving the issuance,
increase in face amount, increase in death benefit over
premium paid, or change in death benefit option of the
Policy. No statement can be used by us in defense of a
claim unless the statement was made in the application or
in a supplemental application. In the absence of fraud,
after the Policy has been in force during the lifetime of
the Insureds for a period of two years from its Issue
Date, we cannot contest it except for non-payment of
premiums. However, any increase in the face amount which
is effective after the Issue Date will be incontestable
only after such increase has been in force during the
lifetime of the Insureds for two years from the Effective
Date of Coverage of such increase. Any increase in death
benefit over premium paid or increase in death benefit
due to a death benefit option change will be
incontestable only after such increase has been in force
during the lifetime of the Insureds for two years from
the date of the increase.
REPORT TO OWNER. We will send you a report at least
once each Policy Year. The report will show current
policy values, premiums paid, and deductions made since
the last report. It will also show the balance of any
outstanding
37 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE
INSURANCE
<PAGE>
policy loans and accrued interest on such loans. There is
no charge for this report.
ILLUSTRATIONS. After the first Policy Year, we will
provide you with an illustration of future Account Values
and death benefits upon request. We may charge a fee not
to exceed $25 per illustration.
PERFORMANCE INFORMATION
<TABLE>
<S> <C>
We may present mutual fund We may sometimes publish performance information related to the Fund, the
portfolio performance and Variable Account or the Policy in advertising, sales literature and other
hypothetical Policy illus- promotional materials. This information is based on past investment results and
trations in sales is not an indication of future performance.
literature.
</TABLE>
PORTFOLIO PERFORMANCE
We may publish a mutual fund portfolio's TOTAL RETURN
OR AVERAGE ANNUAL TOTAL RETURN. Total return is the
change in value of an investment over a given period,
assuming reinvestment of any dividends and capital gains.
Average annual total return is a hypothetical rate of
return that, if achieved annually, would have produced
the same total return over a stated period if performance
had been constant over the entire period. Average annual
total returns smooth variations in performance, and are
not the same as actual year-by-year results.
We may also publish a mutual fund portfolio's yield.
Yield refers to the income generated by an investment in
a portfolio over a given period of time, expressed as an
annual percentage rate. When a yield assumes that income
earned is reinvested, it is called an EFFECTIVE YIELD.
SEVEN-DAY YIELD illustrates the income earned by an
investment in a money market fund over a recent seven-
day period.
TOTAL RETURNS AND YIELDS QUOTED FOR A MUTUAL FUND
PORTFOLIO INCLUDE THE INVESTMENT MANAGEMENT FEES AND
OTHER EXPENSES OF THE PORTFOLIO, BUT DO NOT INCLUDE
CHARGES AND DEDUCTIONS ATTRIBUTABLE TO YOUR POLICY. These
expenses would reduce the performance quoted.
ADJUSTED PORTFOLIO PERFORMANCE
We may publish a mutual fund portfolio's total return
and yields adjusted for charges against the assets of the
Variable Account.
We may publish total return and yield quotations
based on the period of time that a mutual fund portfolio
has been in existence. The results for any period prior
to any Policy being offered will be calculated as if the
Policy had been offered during that period of time, with
all charges assumed to be those applicable to the Policy.
38 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE
INSURANCE
<PAGE>
OTHER INFORMATION
Performance information may be compared, in reports
and promotional literature, to:
- the S&P 500, Dow Jones Industrial
Average, Lehman Brothers Aggregate
Bond Index or other unmanaged indices
so that investors may compare the
Sub-Account results with those of a
group of unmanaged securities widely
regarded by investors as
representative of the securities
markets in general;
- other groups of variable life variable
accounts or other investment products
tracked by Lipper Analytical Services,
a widely used independent research
firm which ranks mutual funds and
other investment products by overall
performance, investment objectives,
and assets, or tracked by other
services, companies, publications, or
persons, such as Morningstar, Inc.,
who rank such investment products on
overall performance or other criteria;
or
- the Consumer Price Index (a measure
for inflation) to assess the real rate
of return from an investment in the
Sub-Account. Unmanaged indices may
assume the reinvestment of dividends
but generally do not reflect
deductions for administrative and
management expenses.
We may provide policy information on various topics
of interest to you and other prospective policyowners.
These topics may include:
- the relationship between sectors of
the economy and the economy as a whole
and its effect on various securities
markets;
- investment strategies and techniques
(such as value investing, market
timing, dollar cost averaging, asset
allocation, constant ratio transfer
and account rebalancing);
- the advantages and disadvantages of
investing in tax-deferred and taxable
investments;
- customer profiles and hypothetical
purchase and investment scenarios;
- financial management and tax and
retirement planning; and
- investment alternatives to
certificates of deposit and other
financial instruments, including
comparisons between a Policy and the
characteristics of, and market for,
such financial instruments.
39 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE
INSURANCE
<PAGE>
FEDERAL INCOME TAX CONSIDERATIONS
<TABLE>
<S> <C>
We do not make any guar- The following summary provides a general description of the federal
antees about the Policy's income tax considerations associated with the Policy and does not purport to be
tax status. complete or to cover all situations. This discussion is NOT intended as tax
advice. You should consult counsel or other competent tax advisers for more
complete information. This discussion is based upon our understanding of the
present federal income tax laws as they are currently interpreted by the Internal
Revenue Service (the "IRS"). We make no representation as to the likelihood of
continuation of the present federal income tax laws or of the current interpreta-
tions by the IRS. WE DO NOT MAKE ANY GUARANTEE REGARDING THE TAX STATUS OF ANY
POLICY OR ANY TRANSACTION REGARDING THE POLICY.
</TABLE>
The Policy may be used in various arrangements,
including non-qualified deferred compensation or salary
continuance plans, split dollar insurance plans,
executive bonus plans, retiree medical benefit plans and
others. The tax consequences of such plans may vary
depending on the particular facts and circumstances of
each individual arrangement. Therefore, if the use of the
Policy in any such arrangement is contemplated, you
should consult a qualified tax adviser for advice on the
tax attributes of the particular arrangement.
TAX STATUS OF THE POLICY
<TABLE>
<S> <C>
We believe the Policy will A Policy has certain tax advantages when treated as a life insurance
be treated as a life contract within the meaning of Section 7702 of the Internal Revenue Code of 1986,
insurance contract under as amended (the "Code"). We believe that the Policy meets the Section 7702
federal tax laws. definition of a life insurance contract and will take whatever steps are
appropriate and reasonable to attempt to cause the Policy to comply with Sec-
tion 7702.
</TABLE>
DIVERSIFICATION OF INVESTMENTS
Section 817(h) of the Code requires that the Variable
Account's investments be "adequately diversified" in
accordance with certain Treasury regulations. We believe
that the Variable Account will be adequately diversified.
In certain circumstances, the owner of a variable
life insurance policy may be considered, for federal
income tax purposes, the owner of the assets of the
separate account used to support the policy. In those
circumstances, income and gains from the separate
accountassets would be includible in the variable
policyowner's gross income. We do not know what standards
will be established, if any, in the regulations or
rulings which the Treasury has stated it expects to issue
on this question. We therefore reserve the right to
modify the Policy as necessary to attempt to prevent a
policyowner from being considered the owner of a pro-rata
share of the assets of the Variable Account.
40 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE
INSURANCE
<PAGE>
The following discussion assumes that your Policy
will qualify as a life insurance contract for federal
income tax purposes.
TAX TREATMENT OF POLICY BENEFITS
<TABLE>
<S> <C>
Death benefits do not incur LIFE INSURANCE DEATH BENEFIT PROCEEDS. In general, the amount of the
federal income tax. death benefit payable under your Policy is excludible from your gross income
under the Code.
</TABLE>
<TABLE>
<S> <C>
Investment gains are nor- TAX DEFERRED ACCUMULATION. Any increase in your Account Value is
mally not taxed unless dis- generally not taxable to you unless you receive or are deemed to receive amounts
tributed to you before the from the Policy before the death of the last Insured to die.
death of the last Insured to DISTRIBUTIONS. If you surrender your Policy, the amount you will receive
die. as a result will be subject to tax as ordinary income to the extent that amount
exceeds the "investment in the contract," which is generally the total of
premiums and other consideration paid for the Policy, less all amounts previously
received under the Policy to the extent those amounts were excludible from gross
income.
</TABLE>
Depending on the circumstances, any of the following
transactions may have federal income tax consequences:
- the exchange of a Policy for a life
insurance, endowment or annuity
contract;
- a change in the death benefit option;
- a policy loan;
- a partial surrender;
- a surrender;
- a change in the ownership of a Policy;
- an election to extend the Maturity
Date; or
- an assignment of a Policy.
In addition, federal, state and local transfer and
other tax consequences of ownership or receipt of Policy
Proceeds will depend on your circumstances and those of
the named beneficiary. Whether partial surrenders (or
other amounts deemed to be distributed) constitute income
subject to federal income tax depends, in part, upon
whether your Policy is considered a "modified endowment
contract."
<TABLE>
<S> <C>
If you pay more premiums MODIFIED ENDOWMENT CONTRACTS. Section 7702A of the Code treats certain
than permitted under the life insurance contracts as "modified endowment contracts" ("MECs"). The Code
seven-pay test, your Policy defines MECs as those Policies issued or materially changed after June 21, 1988
will be a MEC. on which the total premiums paid during the first seven years exceed the amount
that would have been paid if the Policy provided for paid-up benefits for seven
annual premiums ("seven-pay test").
</TABLE>
41 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE
INSURANCE
<PAGE>
We will monitor the Policy to determine whether
additional premium payments would cause the Policy to
become a MEC and will take certain steps in an attempt to
avoid this result.
Further, if a transaction occurs which decreases the
face amount of your Policy, we will retest your Policy,
as of the date of its purchase, based on the lower face
amount to determine compliance with the seven-pay test.
Also, if a decrease in face amount occurs following a
"material change," we will retest your Policy for
compliance as of the date of the "material change."
Failure to comply in either case would result in the
Policy's classification as a MEC regardless of our
efforts to provide a payment schedule that would not
otherwise violate the seven-pay test.
The rules relating to whether a Policy will be
treated as a MEC are complex and cannot be fully
described in the limited confines of this summary.
Therefore, you should consult with a competent tax
adviser to determine whether a particular transaction
will cause your Policy to be treated as a MEC.
<TABLE>
<S> <C>
If your Policy becomes a DISTRIBUTIONS UNDER MODIFIED ENDOWMENT CONTRACTS. If treated as a MEC,
MEC, partial surrenders, your Policy will be subject to the following tax rules:
loans and surrenders may - First, partial surrenders are treated as ordinary income subject to tax up to
incur taxes and tax the amount equal to the excess (if any) of your Account Value immediately
penalties. before the distribution over the "investment in the contract" at the time of
the distribution.
</TABLE>
- Second, policy loans and loans secured by a Policy
are treated as partial surrenders and taxed
accordingly. Any past-due loan interest that is added
to the amount of the loan is treated as a loan.
- Third, a 10 percent additional income tax is imposed
on that portion of any distribution (including
distributions upon surrender), policy loan, or loan
secured by a Policy, that is included in income,
except where the distribution or loan is:
- made when you are age 59 1/2 or older;
- attributable to your becoming
disabled; or
- is part of a series of substantially
equal periodic payments for the
duration of your life (or life
expectancy) or for the duration of the
longer of your or the beneficiary's
life (or life expectancies).
DISTRIBUTIONS UNDER A POLICY THAT IS NOT A MEC. If
your Policy is not a MEC, a distribution is generally
treated first as a tax-free recovery of the "investment
in the contract," and then as a distribution of taxable
income to the extent the distribution exceeds the
"investment in the contract." An exception is made for
cash distributions that occur in the first 15 Policy
Years as a result of a decrease in the death benefit or
other change which reduces benefits under the Policy
which are made for purposes of maintaining compliance
with
42 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE
INSURANCE
<PAGE>
Section 7702. Such distributions are taxed in whole or
part as ordinary income (to the extent of any gain in the
Policy) under rules prescribed in Section 7702.
If your Policy is not a MEC, policy loans and loans
secured by the Policy are generally not treated as
distributions. Such loans are instead treated as your
indebtedness.
Finally, if your Policy is not a MEC, distributions
(including distributions upon surrender), policy loans
and loans secured by the Policy are not subject to the 10
percent additional tax.
POLICY LOAN INTEREST. Generally, no tax deduction is
allowed for interest paid or accrued on any indebtedness
under a Policy. In addition, if the policyowner is not a
natural person, or is a direct or indirect beneficiary
under the Policy, Section 264(f) of the Code disallows a
pro-rata portion of the taxpayer's otherwise allowable
interest expense deduction. This rule may not, however,
apply if you are such a policyowner engaged in a trade
business and the Policy covers an officer, director,
employee, or 20 percent owner of your business, within
the meaning of Section 264(f)(4). You should consult your
tax adviser for further guidance on these issues.
Also, there is no definitive guidance concerning the
tax treatment of a policy loan when the interest rate
credited to the loan is the same as the interest rate
charged against the loan, as is the case for loan amounts
in Policy Years 11 and thereafter. You should consult
your tax adviser regarding loan amounts in those Policy
Years.
MULTIPLE POLICIES. All modified endowment contracts
issued by us (or our affiliates) to you during any
calendar year will be treated as a single MEC for
purposes of determining the amount of a policy
distribution which is taxable to you.
<TABLE>
<S> <C>
We may be required to with- FEDERAL INCOME TAX WITHHOLDING. We will withhold and remit to the
hold taxes from certain dis- federal government the amount of any tax due on that portion of a policy
tributions to you. distribution which is taxable if we do not have a valid social security number
for you, unless you direct us otherwise in writing at or before the time of the
distribution. As the policyowner, however, you will be responsible for the pay-
ment of any taxes and early distribution penalties that may be due on policy
distributions, regardless of whether those amounts are subject to withholding.
</TABLE>
OUR TAXES
As a result of the Omnibus Budget Reconciliation Act
of 1990, we are currently and are generally required to
capitalize and amortize certain policy acquisition
expenses over a 10-year period rather than currently
deducting such expenses. This so-called "deferred
acquisition cost" tax ("DAC tax") applies to the deferred
acquisition expenses of a Policy and results in a
significantly higher corporate income tax liability for
us.
43 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE
INSURANCE
<PAGE>
At present, we do not assess any charge against the
assets of the Variable Account for any federal, state or
local taxes that we incur which may be attributable to
the Variable Account or any Policy. We, however, reserve
the right in the future to assess a charge against the
assets of the Variable Account for any such taxes or
other economic burdens resulting from the application of
any tax laws that we determine to be properly
attributable to the Variable Account or any Policy.
DISTRIBUTION OF POLICY
The Policy will be sold by licensed insurance agents
in those states where the Policy may be lawfully sold.
Such agents will be registered representatives of
broker-dealers registered under the Securities Exchange
Act of 1934 who are members of the National Association
of Securities Dealers, Inc. and who have entered into
distribution agreements with us and our general
distributor, Clarendon Insurance Agency, Inc.
("Clarendon"), One Sun Life Executive Park, Wellesley
Hills, Massachusetts 02481. Clarendon is our wholly-owned
subsidiary and is registered with the Securities and
Exchange Commission under the Securities Exchange Act of
1934 as a broker-dealer and is a member of the National
Association of Securities Dealers, Inc. Clarendon also
acts as the general distributor of certain variable
annuity contracts and other variable life insurance
contracts we issue.
Gross first year commissions plus any expense
allowance payments we pay on the sale of the Policy may
vary with the sales agreement with broker-dealers
depending on the particular circumstances, but is not
expected to exceed 100% of the target premium, which will
vary based on the Insured's age, sex and rating Class,
plus an amount not to exceed 5% of any excess premium
payments. Gross renewal commissions in Policy Years 2
through 10 will not exceed 5% of actual premium payment,
and will not exceed 2% in Policy Years 11 and thereafter.
In addition, we may also pay override payments, expense
allowances, bonuses, wholesaler fees, and training
allowances. In Policy Year 3 and thereafter, 0.10% of the
Variable Account Value per annum will be paid to broker-
dealers.
VOTING RIGHTS
We are the legal owner of all shares of the Funds
held in the Sub-Accounts of the Variable Account, and as
such have the right to vote upon matters that are
required by the Investment Company Act of 1940 Act to be
approved or ratified by the shareholders of the Funds and
to vote upon any other matters that may be voted upon at
a shareholders' meeting. We will, however, vote shares
held in the Sub-Accounts in accordance with instructions
received from policyowners who have an interest in the
respective Sub-Accounts.
44 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE
INSURANCE
<PAGE>
We will vote shares held in each Sub-Account for
which no timely instructions from policyowners are
received, together with shares not attributable to a
Policy, in the same proportion as those shares in that
Sub-Account for which instructions are received. Should
the applicable federal securities laws change so as to
permit us to vote shares held in the Variable Account in
our own right, we may elect to do so.
The number of shares in each Sub-Account for which a
policyowner may give instructions is determined by
dividing the portion of the Account Value derived from
participation in that Sub-Account, if any, by the value
of one share of the corresponding Fund. We will determine
the number as of a date we choose, but not more than 90
days before the shareholders' meeting. Fractional votes
are counted. Voting instructions will be solicited in
writing at least 14 days prior to the shareholders'
meeting.
We may, if required by state insurance regulators,
disregard voting instructions if those instructions would
require shares to be voted so as to cause a change in the
sub-classification or investment policies of one or more
of the Funds, or to approve or disapprove an investment
management contract. In addition, we may disregard voting
instructions that would require changes in the investment
policies or investment adviser, provided that we
reasonably disapprove of those changes in accordance with
applicable federal regulations. If we disregard voting
instructions, we will advise you of that action and our
reasons for it in our next communication to policyowners.
OUR DIRECTORS AND EXECUTIVE OFFICERS
Our directors and executive officers are listed
below, together with information as to their ages, dates
of election and principal business occupations during the
last five years (if other than their present business
occupations). Except as otherwise indicated, those
directors and officers who are associated with Sun Life
Assurance Company of Canada and/or its subsidiaries have
been associated with Sun Life Assurance Company of Canada
for more than five years either in the position shown or
in other positions. The asterisks below denote the year
that the indicated director was elected to our board of
directors.
DONALD A. STEWART, 53, Chairman and Director (1996*)
150 King Street West
Toronto, Ontario, Canada M5H 1J9
He is Chairman, Chief Executive Officer and a
Director of Sun Life Assurance Company of Canada;
Chairman and a Director of Sun Life Insurance and Annuity
Company of New York; and a Director of Massachusetts
Financial Services Company and Sun Life of Canada UK
Holdings, plc.
45 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE
INSURANCE
<PAGE>
C. JAMES PRIEUR, 48, President and Director (1998*)
150 King Street West
Toronto, Ontario, Canada M5H 1J9
He is President and Chief Operating Officer of Sun
Life Assurance Company of Canada; President and a
Director of Sun Life Insurance and Annuity Company of New
York; Chairman and a Director of Sun Life of Canada
(U.S.) Distributors, Inc. and Sun Capital
Advisers, Inc.; Chairman of the Board and Executive Vice
President, Sun Capital Advisers Trust; President and a
Director of Sun Life of Canada (U.S.) Holdings, Inc., and
Sun Life Assurance Company of Canada--U.S. Operations
Holdings, Inc.; and a Director of Sun Life Information
Services Ireland Limited.
JAMES A. MCNULTY, III, 57, Senior Vice President, General
Manager and Director (1999*)
One Sun Life Executive Park
Wellesley Hills, Massachusetts 02481
He is Senior Vice President and General Manager for
the United States of Sun Life Assurance Company of Canada
and Senior Vice President and General Manager and a
Director of Sun Life Insurance and Annuity Company of New
York. He is President and a Director of Sun Life of
Canada (U.S.) SPE 97-1, Inc., Sun Benefit Services
Company, Inc., Sun Life of Canada (U.S.) Holdings General
Partner, Inc., Sun Life Financial Services Limited, and
Sun Canada Financial Co.; Senior Vice President and a
Director of Sun Life Assurance Company of Canada--U.S.
Operations Holdings, Inc., Sun Life of Canada (U.S.)
Holdings, Inc., and Sun Life of Canada (U.S.) Financial
Services Holdings, Inc.; and a Director of Sunesco
Insurance Agency, Inc. and the Support Committee for
Battered Women.
RICHARD B. BAILEY, 73, Director (1983*)
63 Atlantic Ave 11D
Boston, Massachusetts 02110
He is a Director of Sun Life Insurance and Annuity
Company of New York and a Director/Trustee of certain
Funds in the MFS Family of Funds. He is a Director of
Cambridge Bancorp.
M. COLYER CRUM, 67, Director (1986*)
104 Westcliff Road
Weston, Massachusetts 02493-1410
He is Professor Emeritus of the Harvard Business
School; a Director of Sun Life Assurance Company of
Canada, Sun Life Insurance and Annuity Company of New
York, Cambridge Bancorp, Cambridge Trust Company, Merrill
Lynch Ready Assets Trust, Merrill Lynch Basic Value
Fund, Inc., Merrill Lynch Global Growth Fund, Inc.,
Merrill Lynch U.S. Treasury Money Fund, Merrill
46 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE
INSURANCE
<PAGE>
Lynch Special Value Fund, Inc., Merrill Lynch Capital
Fund, Inc., Merrill Lynch U.S.A. Government Reserves,
Merril Lynch Michigan Insured Fund II, Merrill Lynch
Displined Equity Fund, Inc., MuniVest Florida Fund,
MuniVest Michigan Insured Fund, Inc., MuniVest New Jersey
Fund, Inc., MuniYield Michigan Insured Fund, Inc., and
MuniYield New Jersey Insured Fund, Inc.; and a Trustee of
Merrill Lynch Global Resources Trust, Merrill Lynch Ready
Assets Trust, MuniYield Florida Insured Fund, and
MuniYield Pennsylvania Fund. Prior to July 1996, he was a
Professor at the Harvard Business School.
GREGORY W. GEE, 51, Director (1999*)
150 King Street West
Toronto, Ontario, Canada M5H 1J9
He is Vice Chairman of Sun Life Assurance Company of
Canada and a Director of Sun Life Insurance and Annuity
Company of New York.
DAVID D. HORN, 58, Director (1985*)
Strong Road
P.O. Box 24
New Vineyard, Maine 04956
He was formerly Senior Vice President and General
Manager for the United States of Sun Life Assurance
Company of Canada, retiring in December 1997. He is a
Director of Sun Life Insurance and Annuity Company of New
York; a Trustee of MFS/Sun Life Series Trust; and a
Member of the Boards of Managers of Money Market Variable
Account, High Yield Variable Account, Capital
Appreciation Variable Account, Government Securities
Variable Account, Global Governments Variable Account,
Total Return Variable Account, and Managed Sectors
Variable Account.
ANGUS A. MACNAUGHTON, 68, Director (1985*)
Genstar Investment Corporation
555 California Street
Suite 4850
San Francisco, California 94104
He is President and a Director of Genstar Investment
Corporation and a Director of Sun Life Assurance Company
of Canada, Sun Life Insurance and Annuity Company of New
York, Canadian Pacific, Ltd., Varian Associates, Inc.,
and Diversified Collection Services, Inc.; and Vice
Chairman and a Director of Barrick Gold Corporation.
47 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE
INSURANCE
<PAGE>
S. CAESAR RABOY, 63, Director (1997*)
220 Boylston Street
Boston, Massachusetts 02110
He is a former Senior Vice President and Deputy
General Manager for the United States of Sun Life
Assurance Company of Canada; a Director of Sun Life
Insurance and Annuity Company of New York; and a Director
of Sun Life of Canada (U.S.) Distributors, Inc. and Fleet
International Bank.
JAMES M.A. ANDERSON, 50, Vice President, Investments
(1998)
One Sun Life Executive Park
Wellesley Hills, Massachusetts 02481
He is Vice President, Investments of Sun Life
Assurance Company of Canada and Sun Life Insurance and
Annuity Company of New York; President and Chief
Executive Officer of Sun Capital Advisers Trust;
President and a Director of Sun Life of Canada (U.S.)
Holdings, Inc., Sun Life of Canada (U.S.) Financial
Services Holdings, Inc., and Sun Life Assurance Company
of Canada--U.S. Operations Holdings, Inc.; Vice President
and a Director of Sun Life of Canada (U.S.)
Distributors, Inc. and Sun Life of Canada (U.S.) Holdings
General Partner, Inc.; Vice President of Sun Canada
Financial Co.; and a Director of Clarendon Insurance
Agency, Inc., Sunesco Insurance Agency, Inc., and Sun
Benefit Services Company, Inc.
DAVEY SCOON, 53, Vice President, Finance and Treasurer
(1999)
One Sun Life Executive Park
Wellesley Hills, Massachusetts 02481
He is Vice President and Chief Financial Officer of
U.S. Operations for Sun Life Assurance Company of Canada;
Vice President, Finance, Controller, and Treasurer of Sun
Life Insurance and Annuity Company of New York; Vice
President and Treasurer and a Director of Sun Benefit
Services Company, Inc.; Vice President and a Director of
Sun Life Assurance Company of Canada--U.S. Operations
Holdings, Inc., Sun Life of Canada (U.S.)
Holdings, Inc.; Sun Life of Canada (U.S.) Financial
Services Holdings, Inc., Sun Life of Canada (U.S.)
Holdings General Partner, Inc., Sun Life Financial
Services Limited, and Sun Canada Financial Co.; a Regular
Trustee of Sun Life of Canada (U.S.) Capital Trust I; a
Director of Senesco Insurance Agency, Inc. and Chairman
and a Director of Tufts Associated Health Plan, and a
Lead Director of Tufts Associated Heath Maintenance
Organization, and Board Chairman of Managed Comp. Prior
to October 1999, he was Executive Vice President and
Chief Operating Officer of Liberty Funds Group.
48 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE
INSURANCE
<PAGE>
ROBERT P. VROLYK, 46, Vice President and Actuary (1986)
One Sun Life Executive Park
Wellesley Hills, Massachusetts 02481
He is Vice President and Chief Actuary of Sun Life
Assurance Company of Canada; Vice President and Actuary
of Sun Life Insurance and Annuity Company of New York;
Vice President and a Director of Sun Life of Canada
(U.S.) Holdings, Inc., Sun Life of Canada (U.S.)
Financial Services Holdings, Inc., Sun Life of Canada
(U.S.) Distributors, Inc., Sun Canada Financial Co., and
Sun Life of Canada (U.S.) Holdings General
Partner, Inc.; Vice President and a Director of Sun Life
of Canada (U.S.) SPE 97-1, Inc.; Treasurer and Chief
Financial Officer of Sun Capital Advisers Trust; a
Director of Sun Benefit Services Company, Inc. and Sun
Life Information Services Ireland Limited; and a Regular
Trustee of Sun Life of Canada (U.S.) Capital Trust I.
PETER F. DEMUTH, 41, Vice President, Chief Counsel and
Assistant Secretary (1998)
One Sun Life Executive Park
Wellesley Hills, Massachusetts 02481
He is Vice President and Chief Counsel of U.S.
Operations for Sun Life Assurance Company of Canada; Vice
President and Chief Counsel and Assistant Secretary for
Sun Life Insurance and Annuity Company of New York; a
Director of Sun Life of Canada (U.S.) Holdings, Inc., Sun
Life of Canada (U.S.) Financial Services Holdings, Inc.,
and Sun Life Assurance Company of Canada--U.S. Operations
Holdings, Inc.; Assistant Secretary for Sun Capital
Advisers Trust; and a Regular Trustee of Sun Life of
Canada (U.S.) Capital Trust I. Prior to February 1998, he
was a partner at the firm of Mintz, Levin, Cohn, Ferris,
Glovsky and Popeo, P.C.
ELLEN B. KING, 42, Counsel and Secretary (1998)
One Sun Life Executive Park
Wellesley Hills, Massachusetts 02481
She is Counsel of Sun Life Assurance Company of
Canada; Counsel and Secretary of Sun Life Insurance and
Annuity Company of New York.; and Secretary of Sun Life
of Canada (U.S.) Holdings, Inc., Sun Life of Canada
(U.S.) Financial Services Holdings, Inc., Sun Life
Assurance Company of Canada--U.S. Operations
Holdings, Inc., Sun Benefit Services Company, Inc., Sun
Life of Canada (U.S.) SPE 97-1, Inc., Sun Canada
Financial Co., and Sun Life of Canada (U.S.) Holdings
General Partner, Inc.
49 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE
INSURANCE
<PAGE>
ROBERT K. LEACH, 44, Vice President, Finance and Product,
Retirement Products and Services (1996)
One Sun Life Executive Park
Wellesley Hills, Massachusetts 02481
He has been affiliated with Sun Life Assurance
Company of Canada since January 1987 in various
management positions. In October 1999, he was appointed
Vice President, Finance and Product, Retirement Products
and Services. Prior to 1987, he was a 2nd Vice President
at New England Life Insurance Company.
EDWARD J. RONAN, 46, Vice President, Retirement Products
and Services (1997)
One Sun Life Executive Park
Wellesley Hills, Massachusetts 02481
He has been affiliated with Sun Life Assurance
Company of Canada since August 1997. From June 1987 to
July 1997, he was Vice President, Division Manager at
First Data Investor Services Group.
Our directors, officers and employees are covered
under a commercial blanket bond and a liability policy.
The directors, officers and employees of Clarendon
Insurance Agency, Inc. are covered under a fidelity bond.
OTHER INFORMATION
STATE REGULATION
We are subject to the laws of Delaware governing life
insurance companies and to regulation by Delaware's
Commissioner of Insurance, whose agents periodically
conduct an examination of our financial condition and
business operations. We are also subject to the insurance
laws and regulations of the jurisdictions in which we are
authorized to do business.
We are required to file an annual statement with the
insurance regulatory authority of those jurisdictions
where we are authorized to do business relating to our
business operations and financial condition as of
December 31st of the preceding year.
LEGAL PROCEEDINGS
There are no pending legal proceedings which would
have a material adverse effect on the Variable Account.
We are engaged in various kinds of routine litigation
which, in our judgment, is not material to the Variable
Account.
50 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE
INSURANCE
<PAGE>
EXPERTS
Actuarial matters concerning the policy have been
examined by Georges C. Rouhart, FSA, MAAA, Product
Officer.
ACCOUNTANTS
To be added by amendment.
REGISTRATION STATEMENTS
This prospectus is part of a registration statement
that has been filed with the Securities and Exchange
Commission under the Securities Act of 1933 with respect
to the Policy. It does not contain all of the information
set forth in the registration statement and the exhibits
filed as part of the registration statement. You should
refer to the registration statement for further
information concerning the Variable Account, Sun Life of
Canada (U.S.), the mutual fund investment options, and
the Policy.
FINANCIAL STATEMENTS
Financial statements to be added by amendment.
There are no financial statements for the Variable
Account with respect to the Sub-Accounts because the
Sub-Accounts had not commenced operations as of the date
of this prospectus. Our financial statements, which are
included in this prospectus, should be considered only as
bearing on our ability to meet our obligations with
respect to the death benefit and our assumption of the
mortality and expense risks. They should not be
considered as bearing on the investment performance of
the Fund shares held in the Variable Account.
51 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE
INSURANCE
<PAGE>
APPENDIX A
GLOSSARY OF POLICY TERMS
ACCOUNT VALUE--The sum of the amounts in each Sub-Account of the Variable
Account and the Fixed Account Value with respect to a Policy.
ANNIVERSARY--The same day in each succeeding year as the day of the year
corresponding to the policy date.
ATTAINED AGE--With respect to an Insured, the Insured's Issue Age plus the
number of completed Policy Years.
BUSINESS DAY--Any day that we are open for business.
CASH VALUE--Account Value less any surrender charges.
CASH SURRENDER VALUE--The Cash Value decreased by the balance of any
outstanding Policy Debt.
CLASS--The risk and underwriting classification of an Insured.
DAILY RISK PERCENTAGE--The daily rate for deduction of the Mortality and
Expense Risk Charge.
DUE PROOF--Such evidence as we may reasonably require in order to establish
that a benefit is due and payable.
EFFECTIVE DATE OF COVERAGE--Initially, the Investment Start Date; with
respect to any increase in the Specified Face Amount, the Anniversary that falls
on or next follows the date we approve the supplemental application for that
increase; with respect to any decrease in the Specified Face Amount, the Monthly
Anniversary Day that falls on or next follows the date we receive your request.
EXPENSE CHARGES APPLIED TO PREMIUM--A percentage charge deducted from each
premium payment.
FIXED ACCOUNT VALUE--The portion of the Account Value funded by the assets
of our general account.
FUND--A mutual fund portfolio in which a Sub-Account invests.
INITIAL PREMIUM--The initial premium amount specified in your Policy.
INSURED--A person on whose life a Policy is issued.
INVESTMENT START DATE--The date the first premium is applied, which will be
the later of the Issue Date, the Policy Date or the Valuation Date we receive a
premium equal to or in excess of the Initial Premium.
ISSUE AGE--With respect to an Insured, the age as of the Insured's birthday
nearest the policy date.
ISSUE DATE--The date we produce a Policy from our system as specified in the
Policy.
MATURITY--The Anniversary on which the younger Insured's Attained Age is
100.
MONTHLY ANNIVERSARY DAY--The same day in each succeeding month as the day of
the month corresponding to the policy date.
MONTHLY COST OF INSURANCE--A deduction made on a monthly basis for the
insurance coverage provided by the Policy.
A-1 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE INSURANCE
<PAGE>
MONTHLY FACE AMOUNT CHARGE--A deduction made on a monthly basis for
administration and other expenses.
MORTALITY AND EXPENSE RISK CHARGE--The annual rate deducted from the Account
Value in the Sub-Accounts for the mortality and expense risk we assume by
issuing the Policy. This annual rate is converted to a daily rate, the Daily
Risk Percentage, and deducted from the Unit Values of the Sub-Accounts on a
daily basis.
POLICY APPLICATION--The application for a Policy, a copy of which is
attached to and incorporated in the Policy.
POLICY DEBT--The principal amount of any outstanding loan against the
Policy, plus accrued but unpaid interest on such loan.
POLICY MONTH--A Policy Month is a one-month period commencing on the policy
date or any Monthly Anniversary Day and ending on the next Monthly Anniversary
Day.
POLICY PROCEEDS--The amount determined in accordance with the terms of the
Policy which is payable at the death of the last Insured to die prior to the
Policy Maturity date. This amount is the death benefit, decreased by the amount
of any outstanding Policy Debt and any Unpaid Policy Charges, and increased by
the amounts payable under any supplemental benefits.
POLICY YEAR--A Policy Year is a one-year period commencing on the policy
date or any Anniversary and ending on the next Anniversary.
PRINCIPAL OFFICE--Sun Life Assurance Company of Canada (U.S.), One Sun Life
Executive Park, Wellesley Hills, Massachusetts, 02481, or such other address as
we may hereafter specify to you by written notice.
SPECIFIED FACE AMOUNT--The amount of life insurance coverage you request as
specified in your Policy.
SUB-ACCOUNTS--Sub-accounts into which the assets of the Variable Account are
divided, each of which corresponds to an investment choice available to you.
UNIT--A unit of measurement that we use to calculate the value of each
Sub-Account.
UNIT VALUE--The value of each Unit of assets in a Sub-Account.
UNPAID POLICY CHARGES--The amounts by which the Monthly Face Amount Charges
plus the Monthly Costs of Insurance plus the Policy Debt exceed the Account
Value.
VALUATION DATE--Any day that benefits vary and on which we, the applicable
Fund, and the New York Stock Exchange are open for business and any other day as
may be required by the applicable rules and regulations of the Securities and
Exchange Commission.
VALUATION PERIOD--The period of time from one determination of Unit Values
to the next following determination of Unit Values. We will determine Unit
Values for each Valuation Date as of the close of the New York Stock Exchange on
that Valuation Date.
VARIABLE ACCOUNT--Sun Life of Canada (U.S.) Variable Account I
A-2 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE INSURANCE
<PAGE>
APPENDIX B
TABLE OF DEATH BENEFIT PERCENTAGES
(Based on the Age of the Younger Insured)
<TABLE>
<CAPTION>
APPLICABLE APPLICABLE
AGE PERCENTAGE AGE PERCENTAGE
- --- ---------- --- ----------
<S> <C> <C> <C>
20 250% 60 130%
21 250% 61 128%
22 250% 62 126%
23 250% 63 124%
24 250% 64 122%
25 250% 65 120%
26 250% 66 119%
27 250% 67 118%
28 250% 68 117%
29 250% 69 116%
30 250% 70 115%
31 250% 71 113%
32 250% 72 111%
33 250% 73 109%
34 250% 74 107%
35 250% 75 105%
36 250% 76 105%
37 250% 77 105%
38 250% 78 105%
39 250% 79 105%
40 250% 80 105%
41 243% 81 105%
42 236% 82 105%
43 229% 83 105%
44 222% 84 105%
45 215% 85 105%
46 209% 86 105%
47 203% 87 105%
48 197% 88 105%
49 191% 89 105%
50 185% 90 105%
51 178% 91 104%
52 171% 92 103%
53 164% 93 102%
54 157% 94 101%
55 150% 95 100%
56 146% 96 100%
57 142% 97 100%
58 138% 98 100%
59 134% 99 100%
</TABLE>
FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE INSURANCE
<PAGE>
APPENDIX C
SAMPLE HYPOTHETICAL ILLUSTRATIONS
HYPOTHETICAL ILLUSTRATIONS OF CASH SURRENDER VALUES,
ACCOUNT VALUES AND DEATH BENEFITS
The illustrations in this prospectus have been prepared to help show how
values under the Policy change with investment performance. The illustrations on
the following pages illustrate the way in which a Policy's death benefit,
Account Value and Cash Surrender Value could vary over an extended period of
time. They assume that all premiums are allocated to and remain in the Variable
Account for the entire period shown and are based on hypothetical gross annual
investment returns for the Funds (i.e., investment income and capital gains and
losses, realized or unrealized) equivalent to constant gross annual rates of 0%,
6% and 12% over the periods indicated.
The Account Values and death benefits would be different from those shown if
the gross annual investment rates of return averaged 0%, 6% and 12% over a
period of years, but fluctuated above or below such averages for individual
Policy Years. The values would also be different depending on the allocation of
a Policy's total Account Value among the Sub-Accounts, if the actual rates of
return averaged 0%, 6% or 12%, but the rates of each Fund varied above and below
such averages.
The amounts shown for the death benefits and Account Values take into
account all charges and deductions imposed under the Policy based on the
assumptions set forth in the tables below. These include the Expense Charges
Applied to Premium, the Daily Risk Percentage charged against the Variable
Account for mortality and expense risks, the Monthly Face Amount Charge and the
Monthly Cost of Insurance. The Expense Charges Applied to Premium are deducted
as a sales load and for our federal, state and local tax obligations. In the
first Policy Year the Expense Charges Applied to Premium are 10% of premiums up
to an amount specified in the policy. The charge on premiums in excess of the
amount specified is currently 5.25% and is guaranteed not to exceed 7.25%. The
charge we will deduct from premiums in Policy Years 2 and after is 5.25% and is
guaranteed not to exceed 7.25%. The Daily Risk Percentage charge is an annual
effective rate of 0.50% and is guaranteed not to exceed an annual effective rate
of 0.80%.
The amounts shown in the tables also take into account the Funds' advisory
fees and operating expenses, which are assumed to be at an annual rate of 0.86%
of the average daily net assets of each Fund. This is based upon a simple
average of the advisory fees and expenses of all the Funds for the most recent
fiscal year taking into account any applicable expense caps or expense
reimbursement arrangements. Actual fees and expenses of the Funds may be more or
less than 0.86%, will vary from year to year, and will depend upon how Account
Value is allocated among the Sub-Accounts. See the Fund Prospectuses for more
information on Fund expenses. The gross annual rates of investment return of 0%,
6% and 12% correspond to net annual rates of -1.36%, 4.64% and 10.64%,
respectively, taking into account the current Daily Risk Percentage charge and
the assumed 0.86% charge for the Funds' advisory fees and operating expenses;
and -1.66%, 4.34% and 10.34%, respectively, taking into account the guaranteed
Daily Risk Percentage charge.
The hypothetical returns shown in the tables do not reflect any charges for
income taxes against the Variable Account since no charges are currently made.
If, in the future, such charges are made, in order to
C-1 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE INSURANCE
<PAGE>
produce the illustrated death benefits and Cash Values, the gross annual
investment rate of return would have to exceed 0%, 6% or 12% by a sufficient
amount to cover the tax charges.
The second column of each table shows the amount which would accumulate if
an amount equal to each premium were invested and earned interest, after taxes,
at 5% per year, compounded annually.
We will furnish upon request a comparable table using any specific set of
circumstances. In addition to a table assuming policy charges at their maximum,
we will furnish a table assuming current policy charges.
C-2 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE INSURANCE
<PAGE>
TABLE 1
SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.)
FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE INSURANCE
MALE, PREFERRED, AGE 55, NON TOBACCO; AND FEMALE, STANDARD, AGE 55, NON TOBACCO
$1,000,000 SPECIFIED FACE AMOUNT
ANNUAL PREMIUM $10,000.00
DEATH BENEFIT OPTION A
CURRENT POLICY CHARGES
<TABLE>
<CAPTION>
HYPOTHETICAL 0% HYPOTHETICAL 6%
GROSS INVESTMENT RETURN GROSS INVESTMENT RETURN
NET -1.36% NET 4.64%
PREMIUMS -------------------------------- --------------------------------
PAID PLUS CASH CASH
POLICY INTEREST AT 5% SURRENDER ACCOUNT DEATH SURRENDER ACCOUNT DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
- --------------------- -------------- --------- -------- --------- --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
1 10,500 -- 7,695 1,000,000 -- 8,197 1,000,000
2 21,525 -- 15,707 1,000,000 -- 17,222 1,000,000
3 33,101 1,772 23,552 1,000,000 4,827 26,607 1,000,000
4 45,256 12,145 31,195 1,000,000 17,279 36,329 1,000,000
5 58,019 22,272 38,602 1,000,000 30,037 46,367 1,000,000
6 71,420 32,235 45,845 1,000,000 43,198 56,808 1,000,000
7 85,491 40,612 52,862 1,000,000 55,354 67,604 1,000,000
8 100,266 48,757 59,647 1,000,000 67,875 78,765 1,000,000
9 115,779 56,686 66,216 1,000,000 80,793 90,323 1,000,000
10 132,068 64,402 72,572 1,000,000 94,128 102,298 1,000,000
11 149,171 73,029 79,839 1,000,000 109,062 115,872 1,000,000
12 167,130 81,351 86,791 1,000,000 124,430 129,870 1,000,000
13 185,986 89,327 93,407 1,000,000 140,212 144,292 1,000,000
14 205,786 96,885 99,605 1,000,000 156,363 159,083 1,000,000
15 226,575 104,037 105,397 1,000,000 172,910 174,270 1,000,000
16 248,404 110,728 110,728 1,000,000 189,826 189,826 1,000,000
17 271,324 115,522 115,522 1,000,000 205,704 205,704 1,000,000
18 295,390 119,718 119,718 1,000,000 221,872 221,872 1,000,000
19 320,660 123,217 123,217 1,000,000 238,265 238,265 1,000,000
20 347,193 125,916 125,916 1,000,000 254,820 254,820 1,000,000
21 375,052 127,681 127,681 1,000,000 271,447 271,447 1,000,000
22 404,305 128,357 128,357 1,000,000 288,049 288,049 1,000,000
23 435,020 127,764 127,764 1,000,000 304,508 304,508 1,000,000
24 467,271 125,690 125,690 1,000,000 320,691 320,691 1,000,000
25 501,135 121,878 121,878 1,000,000 336,440 336,440 1,000,000
26 536,691 116,071 116,071 1,000,000 351,607 351,607 1,000,000
27 574,026 107,957 107,957 1,000,000 366,018 366,018 1,000,000
28 613,227 97,199 97,199 1,000,000 379,496 379,496 1,000,000
29 654,388 83,424 83,424 1,000,000 391,857 391,857 1,000,000
30 697,608 66,171 66,171 1,000,000 402,875 402,875 1,000,000
<CAPTION>
HYPOTHETICAL 12%
GROSS INVESTMENT RETURN
NET 10.64%
---------------------------------
CASH
POLICY SURRENDER ACCOUNT DEATH
YEAR VALUE VALUE BENEFIT
- --------------------- --------- --------- ---------
<S> <C> <C> <C>
1 -- 8,700 1,000,000
2 -- 18,800 1,000,000
3 8,132 29,912 1,000,000
4 23,058 42,108 1,000,000
5 39,134 55,464 1,000,000
6 56,567 70,177 1,000,000
7 74,077 86,327 1,000,000
8 93,173 104,063 1,000,000
9 114,040 123,570 1,000,000
10 136,873 145,043 1,000,000
11 163,088 169,898 1,000,000
12 191,777 197,217 1,000,000
13 223,175 227,255 1,000,000
14 257,524 260,244 1,000,000
15 295,174 296,534 1,000,000
16 336,461 336,461 1,000,000
17 380,397 380,397 1,000,000
18 428,783 428,783 1,000,000
19 482,105 482,105 1,000,000
20 540,932 540,932 1,000,000
21 605,919 605,919 1,000,000
22 677,844 677,844 1,000,000
23 757,632 757,632 1,000,000
24 846,400 846,400 1,000,000
25 945,506 945,506 1,000,000
26 1,055,811 1,055,811 1,108,601
27 1,177,617 1,177,617 1,236,498
28 1,312,084 1,312,084 1,377,689
29 1,460,485 1,460,485 1,533,510
30 1,624,208 1,624,208 1,705,418
</TABLE>
(1) Assumes a $10,000.00 premium is paid at the beginning of each Policy Year.
Values will be different if premiums are paid with a different frequently or
in different amounts.
(2) Assumes that no policy loans have been made. Excessive loans or partial
surrenders may cause this Policy to lapse due to insufficient policy value.
THE HYPOTHETICAL INVESTMENT RATES OF RETURN ARE ILLUSTRATIVE ONLY, AND
SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RATES OF
RETURN. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN, AND WILL
DEPEND ON A NUMBER OF FACTORS, INCLUDING THE INVESTMENT ALLOCATIONS BY A POLICY
OWNER, AND THE DIFFERENT INVESTMENT RATES OF RETURN FOR THE FUNDS. THE CASH
SURRENDER VALUE AND DEATH BENEFIT FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL RATES OF INVESTMENT RETURN AVERAGED 0%, 6%, AND 12% OVER A
PERIOD OF YEARS, BUT FLUCTUATED ABOVE AND BELOW THOSE AVERAGES FOR INDIVIDUAL
POLICY YEARS. THEY WOULD ALSO BE DIFFERENT IF ANY POLICY LOANS OR PARTIAL
SURRENDERS WERE MADE. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL
INVESTMENT RATES OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER
ANY PERIOD OF TIME.
C-3 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE INSURANCE
<PAGE>
TABLE 2
SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.)
FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE INSURANCE
MALE, PREFERRED, AGE 55, NON TOBACCO; AND FEMALE, STANDARD, AGE 55, NON TOBACCO
$1,000,000 SPECIFIED FACE AMOUNT
ANNUAL PREMIUM $10,000.00
DEATH BENEFIT OPTION A
GUARANTEED POLICY CHARGES
<TABLE>
<CAPTION>
HYPOTHETICAL 0% HYPOTHETICAL 6%
GROSS INVESTMENT RETURN GROSS INVESTMENT RETURN
NET -1.66% NET 4.34%
PREMIUMS -------------------------------- --------------------------------
PAID PLUS CASH CASH
POLICY INTEREST AT 5% SURRENDER ACCOUNT DEATH SURRENDER ACCOUNT DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
- --------------------- -------------- --------- -------- --------- --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
1 10,500 -- 7,670 1,000,000 -- 8,172 1,000,000
2 21,525 -- 15,319 1,000,000 -- 16,816 1,000,000
3 33,101 927 22,707 1,000,000 3,917 25,697 1,000,000
4 45,256 10,772 29,822 1,000,000 15,759 34,809 1,000,000
5 58,019 20,301 36,631 1,000,000 27,795 44,125 1,000,000
6 71,420 29,494 43,104 1,000,000 40,010 53,620 1,000,000
7 85,491 36,945 49,195 1,000,000 50,999 63,249 1,000,000
8 100,266 43,966 54,856 1,000,000 62,077 72,967 1,000,000
9 115,779 50,474 60,004 1,000,000 73,161 82,691 1,000,000
10 132,068 56,382 64,552 1,000,000 84,159 92,329 1,000,000
11 149,171 62,773 69,583 1,000,000 96,189 102,999 1,000,000
12 167,130 68,349 73,789 1,000,000 107,977 113,417 1,000,000
13 185,986 72,978 77,058 1,000,000 119,382 123,462 1,000,000
14 205,786 76,562 79,282 1,000,000 130,291 133,011 1,000,000
15 226,575 78,943 80,303 1,000,000 140,536 141,896 1,000,000
16 248,404 79,908 79,908 1,000,000 149,888 149,888 1,000,000
17 271,324 77,743 77,743 1,000,000 156,620 156,620 1,000,000
18 295,390 73,582 73,582 1,000,000 161,836 161,836 1,000,000
19 320,660 66,862 66,862 1,000,000 164,960 164,960 1,000,000
20 347,193 57,000 57,000 1,000,000 165,382 165,382 1,000,000
21 375,052 43,354 43,354 1,000,000 162,417 162,417 1,000,000
22 404,305 25,226 25,226 1,000,000 155,303 155,303 1,000,000
23 435,020 1,808 1,808 1,000,000 143,145 143,145 1,000,000
24 467,271 (*) (*) (*) 124,893 124,893 1,000,000
25 501,135 (*) (*) (*) 99,187 99,187 1,000,000
26 536,691 (*) (*) (*) 64,152 64,152 1,000,000
27 574,026 (*) (*) (*) 17,235 17,235 1,000,000
28 613,227 (*) (*) (*) (*) (*) (*)
29 654,388 (*) (*) (*) (*) (*) (*)
30 697,608 (*) (*) (*) (*) (*) (*)
<CAPTION>
HYPOTHETICAL 12%
GROSS INVESTMENT RETURN
NET 10.34%
---------------------------------
CASH
POLICY SURRENDER ACCOUNT DEATH
YEAR VALUE VALUE BENEFIT
- --------------------- --------- --------- ---------
<S> <C> <C> <C>
1 -- 8,675 1,000,000
2 -- 18,374 1,000,000
3 7,155 28,935 1,000,000
4 21,380 40,430 1,000,000
5 36,589 52,919 1,000,000
6 52,862 66,472 1,000,000
7 68,899 81,149 1,000,000
8 86,129 97,019 1,000,000
9 104,596 114,126 1,000,000
10 124,346 132,516 1,000,000
11 146,690 153,500 1,000,000
12 170,562 176,002 1,000,000
13 196,028 200,108 1,000,000
14 223,205 225,925 1,000,000
15 252,190 253,550 1,000,000
16 283,071 283,071 1,000,000
17 314,503 314,503 1,000,000
18 348,021 348,021 1,000,000
19 383,628 383,628 1,000,000
20 421,415 421,415 1,000,000
21 461,575 461,575 1,000,000
22 504,433 504,433 1,000,000
23 550,471 550,471 1,000,000
24 600,382 600,382 1,000,000
25 655,084 655,084 1,000,000
26 715,779 715,779 1,000,000
27 784,113 784,113 1,000,000
28 862,412 862,412 1,000,000
29 954,026 954,026 1,001,727
30 1,058,148 1,058,148 1,111,056
</TABLE>
(1) Assumes a $10,000.00 premium is paid at the beginning of each Policy Year.
Values will be different if premiums are paid with a different frequently or
in different amounts.
(2) Assumes that no policy loans have been made. Excessive loans or partial
surrenders may cause this Policy to lapse due to insufficient policy value.
(*) Policy terminates unless additional premiums are paid.
THE HYPOTHETICAL INVESTMENT RATES OF RETURN ARE ILLUSTRATIVE ONLY, AND
SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RATES OF
RETURN. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN, AND WILL
DEPEND ON A NUMBER OF FACTORS, INCLUDING THE INVESTMENT ALLOCATIONS BY A POLICY
OWNER, AND THE DIFFERENT INVESTMENT RATES OF RETURN FOR THE FUNDS. THE CASH
SURRENDER VALUE AND DEATH BENEFIT FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL RATES OF INVESTMENT RETURN AVERAGED 0%, 6%, AND 12% OVER A
PERIOD OF YEARS, BUT FLUCTUATED ABOVE AND BELOW THOSE AVERAGES FOR INDIVIDUAL
POLICY YEARS. THEY WOULD ALSO BE DIFFERENT IF ANY POLICY LOANS OR PARTIAL
SURRENDERS WERE MADE. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL
INVESTMENT RATES OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER
ANY PERIOD OF TIME.
C-4 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE INSURANCE
<PAGE>
TABLE 3
SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.)
FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE INSURANCE
MALE, PREFERRED, AGE 55, NON TOBACCO; AND FEMALE, STANDARD, AGE 55, NON TOBACCO
$1,000,000 SPECIFIED FACE AMOUNT
ANNUAL PREMIUM $12,000.00
DEATH BENEFIT OPTION B
CURRENT POLICY CHARGES
<TABLE>
<CAPTION>
HYPOTHETICAL 0% HYPOTHETICAL 6%
GROSS INVESTMENT RETURN GROSS INVESTMENT RETURN
NET -1.36% NET 4.64%
PREMIUMS -------------------------------- --------------------------------
PAID PLUS CASH CASH
POLICY INTEREST AT 5% SURRENDER ACCOUNT DEATH SURRENDER ACCOUNT DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
- --------------------- -------------- --------- -------- --------- --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
1 12,600 -- 9,565 1,009,565 -- 10,180 1,010,180
2 25,830 -- 19,419 1,019,419 -- 21,279 1,021,279
3 39,722 7,300 29,080 1,029,080 11,052 32,832 1,032,832
4 54,308 19,461 38,511 1,038,511 25,769 44,819 1,044,819
5 69,623 31,345 47,675 1,047,675 40,888 57,218 1,057,218
6 85,704 43,035 56,645 1,056,645 56,512 70,122 1,070,122
7 102,589 53,104 65,354 1,065,354 71,231 83,481 1,083,481
8 120,319 62,907 73,797 1,073,797 86,416 97,306 1,097,306
9 138,935 72,456 81,986 1,081,986 102,100 111,630 1,111,630
10 158,481 81,755 89,925 1,089,925 118,306 126,476 1,126,476
11 179,006 91,919 98,729 1,098,729 136,206 143,016 1,143,016
12 200,556 101,726 107,166 1,107,166 154,627 160,067 1,160,067
13 223,184 111,132 115,212 1,115,212 173,544 177,624 1,177,624
14 246,943 120,052 122,772 1,122,772 192,887 195,607 1,195,607
15 271,890 128,493 129,853 1,129,853 212,676 214,036 1,214,036
16 298,084 136,392 136,392 1,136,392 232,860 232,860 1,232,860
17 325,589 142,298 142,298 1,142,298 251,997 251,997 1,251,997
18 354,468 147,500 147,500 1,147,500 271,377 271,377 1,271,377
19 384,791 151,879 151,879 1,151,879 290,881 290,881 1,290,881
20 416,631 155,318 155,318 1,155,318 310,380 310,380 1,310,380
21 450,063 157,661 157,661 1,157,661 329,702 329,702 1,329,702
22 485,166 158,735 158,735 1,158,735 348,643 348,643 1,348,643
23 522,024 158,339 158,339 1,158,339 366,962 366,962 1,366,962
24 560,725 156,246 156,246 1,156,246 384,375 384,375 1,384,375
25 601,361 152,192 152,192 1,152,192 400,543 400,543 1,400,543
26 644,030 145,927 145,927 1,145,927 415,123 415,123 1,415,123
27 688,831 137,163 137,163 1,137,163 427,714 427,714 1,427,714
28 735,873 125,617 125,617 1,125,617 437,897 437,897 1,437,897
29 785,266 111,011 111,011 1,111,011 445,234 445,234 1,445,234
30 837,129 93,019 93,019 1,093,019 449,215 449,215 1,449,215
<CAPTION>
HYPOTHETICAL 12%
GROSS INVESTMENT RETURN
NET 10.64%
---------------------------------
CASH
POLICY SURRENDER ACCOUNT DEATH
YEAR VALUE VALUE BENEFIT
- --------------------- --------- --------- ---------
<S> <C> <C> <C>
1 -- 10,797 1,010,797
2 -- 23,215 1,023,215
3 15,111 36,891 1,036,891
4 32,867 51,917 1,051,917
5 52,065 68,395 1,068,395
6 72,942 86,552 1,086,552
7 94,243 106,493 1,106,493
8 117,508 128,398 1,128,398
9 142,956 152,486 1,152,486
10 170,819 178,989 1,178,989
11 202,539 209,349 1,209,349
12 237,236 242,676 1,242,676
13 275,174 279,254 1,279,254
14 316,604 319,324 1,319,324
15 361,897 363,257 1,363,257
16 411,391 411,391 1,411,391
17 464,068 464,068 1,464,068
18 521,687 521,687 1,521,687
19 584,637 584,637 1,584,637
20 653,349 653,349 1,653,349
21 728,257 728,257 1,728,257
22 809,823 809,823 1,809,823
23 898,522 898,522 1,898,522
24 994,852 994,852 1,994,852
25 1,099,321 1,099,321 2,099,321
26 1,212,502 1,212,502 2,212,502
27 1,334,988 1,334,988 2,334,988
28 1,467,435 1,467,435 2,467,435
29 1,610,569 1,610,569 2,610,569
30 1,765,141 1,765,141 2,765,141
</TABLE>
(1) Assumes a $12,000.00 premium is paid at the beginning of each Policy Year.
Values will be different if premiums are paid with a different frequently or
in different amounts.
(2) Assumes that no policy loans have been made. Excessive loans or partial
surrenders may cause this Policy to lapse due to insufficient policy value.
THE HYPOTHETICAL INVESTMENT RATES OF RETURN ARE ILLUSTRATIVE ONLY, AND
SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RATES OF
RETURN. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN, AND WILL
DEPEND ON A NUMBER OF FACTORS, INCLUDING THE INVESTMENT ALLOCATIONS BY A POLICY
OWNER, AND THE DIFFERENT INVESTMENT RATES OF RETURN FOR THE FUNDS. THE CASH
SURRENDER VALUE AND DEATH BENEFIT FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL RATES OF INVESTMENT RETURN AVERAGED 0%, 6%, AND 12% OVER A
PERIOD OF YEARS, BUT FLUCTUATED ABOVE AND BELOW THOSE AVERAGES FOR INDIVIDUAL
POLICY YEARS. THEY WOULD ALSO BE DIFFERENT IF ANY POLICY LOANS OR PARTIAL
SURRENDERS WERE MADE. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL
INVESTMENT RATES OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER
ANY PERIOD OF TIME.
C-5 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE INSURANCE
<PAGE>
TABLE 4
SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.)
FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE INSURANCE
MALE, PREFERRED, AGE 55, NON TOBACCO; AND FEMALE, STANDARD, AGE 55, NON TOBACCO
$1,000,000 SPECIFIED FACE AMOUNT
ANNUAL PREMIUM $12,000.00
DEATH BENEFIT OPTION B
GUARANTEED POLICY CHARGES
<TABLE>
<CAPTION>
HYPOTHETICAL 0% HYPOTHETICAL 6%
GROSS INVESTMENT RETURN GROSS INVESTMENT RETURN
NET -1.66% NET 4.34%
PREMIUMS -------------------------------- --------------------------------
PAID PLUS CASH CASH
POLICY INTEREST AT 5% SURRENDER ACCOUNT DEATH SURRENDER ACCOUNT DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT
- --------------------- -------------- --------- -------- --------- --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
1 12,600 -- 9,534 1,009,534 -- 10,149 1,010,149
2 25,830 -- 18,973 1,018,973 -- 20,812 1,020,812
3 39,722 6,338 28,118 1,028,118 10,014 31,794 1,031,794
4 54,308 17,902 36,952 1,036,952 24,039 43,089 1,043,089
5 69,623 29,113 45,443 1,045,443 38,340 54,670 1,054,670
6 85,704 39,945 53,555 1,053,555 52,899 66,509 1,066,509
7 102,589 48,986 61,236 1,061,236 66,306 78,556 1,078,556
8 120,319 57,543 68,433 1,068,433 79,869 90,759 1,090,759
9 138,935 65,527 75,057 1,075,057 93,491 103,021 1,103,021
10 158,481 72,837 81,007 1,081,007 107,064 115,234 1,115,234
11 179,006 80,546 87,356 1,087,356 121,680 128,490 1,128,490
12 200,556 87,340 92,780 1,092,780 136,036 141,476 1,141,476
13 223,184 93,074 97,154 1,097,154 149,955 154,035 1,154,035
14 246,943 97,639 100,359 1,100,359 163,286 166,006 1,166,006
15 271,890 100,866 102,226 1,102,226 175,811 177,171 1,177,171
16 298,084 102,531 102,531 1,102,531 187,239 187,239 1,187,239
17 325,589 100,903 100,903 1,100,903 195,755 195,755 1,195,755
18 354,468 97,128 97,128 1,097,128 202,395 202,395 1,202,395
19 384,791 90,648 90,648 1,090,648 206,467 206,467 1,206,467
20 416,631 80,925 80,925 1,080,925 207,257 207,257 1,207,257
21 450,063 67,419 67,419 1,067,419 204,011 204,011 1,204,011
22 485,166 49,610 49,610 1,049,610 195,950 195,950 1,195,950
23 522,024 26,975 26,975 1,026,975 182,253 182,253 1,182,253
24 560,725 (*) (*) (*) 162,073 162,073 1,162,073
25 601,361 (*) (*) (*) 134,433 134,433 1,134,433
26 644,030 (*) (*) (*) 98,099 98,099 1,098,099
27 688,831 (*) (*) (*) 51,578 51,578 1,051,578
28 735,873 (*) (*) (*) (*) (*) (*)
29 785,266 (*) (*) (*) (*) (*) (*)
30 837,129 (*) (*) (*) (*) (*) (*)
<CAPTION>
HYPOTHETICAL 12%
GROSS INVESTMENT RETURN
NET 10.34%
---------------------------------
CASH
POLICY SURRENDER ACCOUNT DEATH
YEAR VALUE VALUE BENEFIT
- --------------------- --------- --------- ---------
<S> <C> <C> <C>
1 -- 10,766 1,010,766
2 -- 22,725 1,022,725
3 13,994 35,774 1,035,774
4 30,953 50,003 1,050,003
5 49,164 65,494 1,065,494
6 68,723 82,333 1,082,333
7 88,349 100,599 1,100,599
8 109,484 120,374 1,120,374
9 132,179 141,709 1,141,709
10 156,482 164,652 1,164,652
11 183,686 190,496 1,190,496
12 212,700 218,140 1,218,140
13 243,542 247,622 1,247,622
14 276,265 278,985 1,278,985
15 310,865 312,225 1,312,225
16 347,272 347,272 1,347,272
17 383,893 383,893 1,383,893
18 421,988 421,988 1,421,988
19 461,080 461,080 1,461,080
20 500,652 500,652 1,500,652
21 540,123 540,123 1,540,123
22 578,864 578,864 1,578,864
23 616,169 616,169 1,616,169
24 651,271 651,271 1,651,271
25 683,228 683,228 1,683,228
26 710,781 710,781 1,710,781
27 732,328 732,328 1,732,328
28 745,884 745,884 1,745,884
29 749,066 749,066 1,749,066
30 739,402 739,402 1,739,402
</TABLE>
(1) Assumes a $12,000.00 premium is paid at the beginning of each Policy Year.
Values will be different if premiums are paid with a different frequently or
in different amounts.
(2) Assumes that no policy loans have been made. Excessive loans or partial
surrenders may cause this Policy to lapse due to insufficient policy value.
(*) Policy terminates unless additional premiums are paid.
THE HYPOTHETICAL INVESTMENT RATES OF RETURN ARE ILLUSTRATIVE ONLY, AND
SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RATES OF
RETURN. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN, AND WILL
DEPEND ON A NUMBER OF FACTORS, INCLUDING THE INVESTMENT ALLOCATIONS BY A POLICY
OWNER, AND THE DIFFERENT INVESTMENT RATES OF RETURN FOR THE FUNDS. THE CASH
SURRENDER VALUE AND DEATH BENEFIT FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL RATES OF INVESTMENT RETURN AVERAGED 0%, 6%, AND 12% OVER A
PERIOD OF YEARS, BUT FLUCTUATED ABOVE AND BELOW THOSE AVERAGES FOR INDIVIDUAL
POLICY YEARS. THEY WOULD ALSO BE DIFFERENT IF ANY POLICY LOANS OR PARTIAL
SURRENDERS WERE MADE. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL
INVESTMENT RATES OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER
ANY PERIOD OF TIME.
C-6 FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE INSURANCE
<PAGE>
You can review and copy the complete registration statement which contains
additional information about us, the Policy and the Variable Account at the
SEC's Public Reference Room in Washington, D.C. To find out more about this
public service, call the Securities and Exchange Commission at 1-800-SEC-0330.
Reports and other information about the Policy and its mutual fund investment
options are also available on the SEC's website (www.sec.gov), or you can
receive copies of this information, for a fee, by writing the Public Reference
Section, Securities and Exchange Commission, Washington, D.C. 20549-6009.
Investment Company Act File No. 811-9137
FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE INSURANCE
<PAGE>
PART II
UNDERTAKING TO FILE REPORTS
Subject to the terms and conditions of Section 15(d) of the Securities
Exchange Act of 1934, the undersigned Registrant hereby undertakes to file
with the Securities and Exchange Commission such supplementary and periodic
information, documents, and reports as may be prescribed by any rule or
regulation of the Commission heretofore or hereafter duly adopted pursuant to
authority conferred in that section.
REPRESENTATION OF REASONABLENESS OF FEES
UNDERTAKING ON INDEMNIFICATION
Insofar as indemnification for liability arising under the Securities Act of
1933 may be permitted to directors, officers and controlling persons of the
depositor pursuant to its certificate of incorporation, bylaws, or otherwise,
the depositor has been advised that in the opinion of the Securities and
Exchange Commission such indemnification is against public policy as
expressed in the Act and is, therefore, unenforceable. In the event that a
claim for indemnification against such liabilities (other than the payment by
the depositor of expenses incurred or paid by a director, officer or
controlling person of the depositor in the successful defense of any action,
suit or proceeding) is asserted by such director, officer or controlling
person in connection with the securities being registered, the depositor
will, unless in the opinion of its counsel the matter has been settled by
controlling precedent, submit to a court of appropriate jurisdiction the
question whether such indemnification by it is against public policy as
expressed in the act and will be governed by the final adjudication of such
issue.
CONTENTS OF REGISTRATION STATEMENT
This Registration Statement comprises the following papers and documents:
The facing sheet.
The prospectuses consisting of 65 pages.
The undertaking to file reports.
Representation of reasonableness of fees.*
The Rule 484 undertaking.
The signatures.
Written consents of the following persons:
Roy P. Creedon, Esq. (Exhibit 2)*
Georges C. Rouhart, FSA, MAAA (Exhibit 6)
Accountants (Exhibit 7)*
<PAGE>
The following exhibits:
1. Copies of all exhibits required by paragraph A of
instructions for Exhibits to Form N-8B-2:
(1)(a) Resolutions of the Board of Directors of Sun Life Assurance
Company of Canada (U.S.), dated October 29, 1998,
authorizing the establishment of one or more separate
accounts**
(1)(b) Record of Action, dated December 1, 1998, authorizing the
establishment of Sun Life of Canada (U.S.) Variable Account
I**
(1)(c) Record of Action, dated March 30, 1999, relating to the
establishment of Sun Life of Canada (U.S.) Variable Account
I***
(2) Not applicable
(3)(a) Form of Marketing Coordination Agreement*
(3)(b) Specimen Sales Operations and General Agent Agreement*
(3)(c) Schedule of Sales Commissions*
(4) Not applicable
(5)(a) Form of Last Survivor Flexible Premium Combination Fixed and
Variable Universal Life Insurance Policy
(5)(b) Form of Estate Preservation Rider
(5)(c) Form of Maturity Extension With Full Death Benefit Rider
(6)(a) Certificate of Incorporation of Sun Life of Canada
(U.S.)****
(6)(b) Bylaws of Sun Life of Canada (U.S.)****
(7) Not applicable
(8)(a)(i) Form of Participation Agreement by and among AIM Variable
Insurance Funds, Inc., AIM Distributors, Inc., Sun
Life Assurance Company of Canada (U.S.), and Clarendon
Insurance Agency, Inc.***
(8)(a)(ii) Amendment No. 1 to Participation Agreement by and among AIM
Variable Insurance Funds, Inc., AIM Distributors,
Inc., Sun Life Assurance Company of Canada (U.S.), and
Clarendon Insurance Agency, Inc.***
(8)(a)(iii) Amendment No. 2 to Participation Agreement by and among AIM
Variable Insurance Funds, Inc., AIM Distributors, Inc., Sun
Life Assurance Company of Canada (U.S.), and Clarendon
Insurance Agency, Inc.***
(8)(b) Form of Participation Agreement by and among The Alger
American Fund, Sun Life Assurance Company of Canada (U.S.),
and Fred Alger and Company, Incorporated***
(8)(c) Form of Participation Agreement by and among Goldman Sachs
Variable Insurance Trust, Goldman, Sachs & Co., and Sun Life
Assurance Company of Canada (U.S.)***
(8)(d) Form of Participation Agreement by and among MFS/Sun Life
Series Trust, Sun Life Assurance Company of Canada (U.S.),
and Massachusetts Financial Services Company***
(8)(e) Form of Participation Agreement by and among Sun Life
Assurance Company of Canada (U.S.), OCC Accumulation Trust,
and OCC Distributors***
II-2
<PAGE>
(8)(f) Form of Participation Agreement by and among Sun Life
Assurance Company of Canada (U.S.), Sun Capital Advisers
Trust, and Sun Capital Advisers, Inc.***
(9) Not applicable
(10) Form of Application for Last Survivor Flexible Premium
Combination Fixed and Variable Universal Life Insurance
Policy
(11) Memorandum describing Sun Life of Canada (U.S.)'s Issuance,
Transfer and Redemption Procedures
2. Opinion and Consent of Counsel as to the Legality of the
Securities Being Registered*
3. None
4. Not applicable
5. Not applicable
6. Opinion and Consent of Georges C. Rouhart, FSA, MAAA
7. Consent of Accountants, Independent Public Accountants*
8. Powers of Attorney
- --------------------
* To be filed by amendment.
** Incorporated herein by reference to the Registration Statement of Sun Life
of Canada (U.S.) Variable Account I on Form S-6, File No. 333-68601, filed
with the Securities and Exchange Commission on December 9, 1998
*** Incorporated herein by reference to Pre-Effective Amendment No. 1 to the
Registration Statement of Sun Life of Canada (U.S.) Variable Account I on
Form S-6, File No. 333-68601, filed with the Securities and Exchange
Commission on April 27, 1999
**** Incorporated by reference to the Registration Statement of Sun Life of
Canada (U.S.) Variable Account F on Form N-4, File No. 333-37907, filed
with the Securities and Exchange Commission on October 14, 1997
II-3
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the registrant
has duly caused this registration statement to be signed on its behalf by the
undersigned thereunto duly authorized, and attested, all in the town of
Wellesley, and the Commonwealth of Massachusetts, on the 7th day of January,
2000.
SUN LIFE OF CANADA (U.S.)
VARIABLE ACCOUNT I
(Registrant)
By: SUN LIFE ASSURANCE COMPANY
OF CANADA (U.S.)
(Depositor)
By: /s/ C. James Prieur
-------------------
C. James Prieur, President
Attest: /s/ Ellen B. King
-----------------
Ellen B. King, Secretary
Pursuant to the requirements of the Securities Act of 1933, this registration
statement has been signed by the following persons and in the capacities and
on the dates indicated.
<TABLE>
<S> <C>
/s/ C. James Prieur President and Director
- ------------------- (Principal Executive Officer)
C. James Prieur
/s/ Davey Scoon Vice President, Finance, and Treasurer
- --------------- (Principal Financial & Accounting Officer)
Davey Scoon
*/s/ Donald A. Stewart Chairman and Director
- ----------------------
Donald A. Stewart
Director
- ----------------------
Richard B. Bailey
*/s/ M. Colyer Crum Director
- -------------------
M. Colyer Crum
*/s/ Gregory W. Gee Director
- -------------------
Gregory W. Gee
- -------------------
David D. Horn Director
/s/ James A. McNulty, III Senior Vice President and General Manager
- ------------------------- and Director
James A. McNulty, III
</TABLE>
<PAGE>
<TABLE>
<S> <C>
*/s/ Angus A. MacNaughton Director
- -------------------------
Angus A. MacNaughton
*/s/ S. Caesar Raboy Director
- --------------------
S. Caesar Raboy
By: /s/ Ellen B. King January 7, 2000
-----------------
Ellen B. King, Attorney-In-Fact
* By Ellen B. King pursuant to Powers of Attorney filed with this registration
statement.
</TABLE>
<PAGE>
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit No.
- -----------
<S> <C>
1.A(1)(a) Resolution of the Board of Directors of Sun Life Assurance
Company of Canada (U.S.), dated October 29, 1998, authorizing
the establishment of one or more separate accounts*
1.A(1)(b) Record of Action, dated December 1, 1998, authorizing the
establishment of Sun Life of Canada (U.S.) Variable Account I*
1.A(1)(c) Record of Action, dated March 30, 1999, relating to the
establishment of Sun Life of Canada (U.S.) Variable Account I*
1.A(3)(a) Form of Marketing Coordination Agreement**
1.A(3)(b) Specimen Sales Operations and General Agent Agreement**
1.A(3)(c) Schedule of Sales Commissions**
1.A(5)(a) Form of Last Survivor Flexible Premium Combination Fixed and
Variable Universal Life Insurance Policy
1.A(5)(b) Form of Estate Preservation Rider
1.A(5)(c) Form of Maturity Extension With Full Death Benefit Rider
1.A(6)(a) Certificate of Incorporation of Sun Life Assurance Company of
Canada (U.S.)*
1.A(6)(b) Bylaws of Sun Life Assurance Company of Canada (U.S.)*
1.A(8)(a)(i) Form of Participation Agreement by and among AIM Variable
Insurance Funds, Inc., AIM Distributors, Inc., Sun Life
Assurance Company of Canada (U.S.), and Clarendon Insurance
Agency, Inc.*
1.A(8)(a)(ii) Amendment No. 1 to Participation Agreement by and among AIM
Variable Insurance Funds, Inc., AIM Distributors, Inc., Sun
Life Assurance Company of Canada (U.S.), and Clarendon
Insurance Agency, Inc.*
1.A(8)(a)(iii) Amendment No. 2 to Participation Agreement by and among AIM
Variable Insurance Funds, Inc., AIM Distributors, Inc., Sun
Life Assurance Company of Canada (U.S.), and Clarendon
Insurance Agency, Inc.*
1.A(8)(b) Form of Participation Agreement by and among The Alger American
Fund, Sun Life Assurance Company of Canada (U.S.), and Fred
Alger and Company, Incorporated*
1.A(8)(c) Form of Participation Agreement by and among Goldman Sachs
Variable Insurance Trust, Goldman, Sachs & Co., and Sun Life
Assurance Company of Canada (U.S.)*
1.A(8)(d) Form of Participation Agreement by and among MFS/Sun Life Series
Trust, Sun Life Assurance Company of Canada (U.S.), and
Massachusetts Financial Services Company*
1.A(8)(e) Form of Participation Agreement by and among Sun Life Assurance
Company of Canada (U.S.), OCC Accumulation Trust, and OCC
Distributors*
1.A(8)(f) Form of Participation Agreement by and among Sun Life Assurance
Company of Canada (U.S.), Sun Capital Advisers Trust, and Sun
Capital Advisers, Inc.*
</TABLE>
<PAGE>
<TABLE>
<S> <C>
1.A(10) Form of Application for Last Survivor Flexible Premium
Combination Fixed and Variable Universal Life Insurance Policy
1.A(11) Memorandum describing Sun Life Assurance Company of Canada
(U.S.)'s Issuance, Transfer and Redemption Procedures
2. Opinion and Consent of Counsel as to the Legality of the
Securities Being Registered**
6. Opinion and Consent of Georges Rouhart, FSA, MAAA
7. Consent of Accountants, Independent Public Accountants**
8. Powers of Attorney
</TABLE>
- --------------------
* Incorporated herein by reference.
** To be filed by amendment
<PAGE>
EXECUTIVE OFFICE:
One Sun Life Executive Park
Wellesley Hills, Massachusetts 02481
800-700-6554
[LOGO] SUN LIFE ASSURANCE
COMPANY OF CANADA (U.S.) HOME OFFICE:
Wilmington, Delaware
- --------------------------------------------------------------------------------
LAST SURVIVOR FLEXIBLE PREMIUM VARIABLE UNIVERSAL LIFE INSURANCE POLICY
INSUREDS -
--------------------------------
-
--------------------------------
POLICY NUMBER -
-------------------
- --------------------------------------------------------------------------------
This Policy is a legal contract in which We, Sun Life Assurance Company of
Canada (U.S.), promise to provide the kind of insurance described below. Upon
death of the last Insured to die prior to Maturity, We agree to pay the
Beneficiary such amounts as then become due and payable. Until that time, We
agree to provide You, as Owner, the other rights and benefits of the Policy.
These rights and benefits are subject to the provisions on the pages which
follow.
Signed at Wellesley Hills, Massachusetts, on the Issue Date.
---------------------
---------------------
---------------------
---------------------
---------------------
/s/ Ellen B. King
C. James Prieur, President Ellen B. King, Secretary
- --------------------------------------------------------------------------------
THE AMOUNT OF THE DEATH BENEFIT OR THE DURATION OF THE DEATH BENEFIT MAY
INCREASE OR DECREASE TO REFLECT THE INVESTMENT EXPERIENCE OF THE VARIABLE
ACCOUNT, AS DESCRIBED IN SECTION 8.
THE ACCOUNT VALUE IN EACH SUB-ACCOUNT OF THE VARIABLE ACCOUNT MAY INCREASE OR
DECREASE IN ACCORDANCE WITH THE INVESTMENT EXPERIENCE OF THAT SUB-ACCOUNT OF THE
VARIABLE ACCOUNT. THERE IS NO MINIMUM GUARANTEED ACCOUNT VALUE FOR AMOUNTS IN
THE SUB-ACCOUNTS OF THE VARIABLE ACCOUNT.
UPON RECEIPT OF DUE PROOF THE POLICY PROCEEDS ARE PAYABLE AT THE DEATH OF THE
LAST INSURED TO DIE PRIOR TO MATURITY AND WHILE THE POLICY IS IN FORCE. THE
CASH SURRENDER VALUE, IF ANY, IS PAYABLE ON MATURITY.
THE POLICY DOES NOT PARTICIPATE IN DIVIDENDS.
FLEXIBLE PREMIUMS ARE PAYABLE WHILE EITHER INSURED IS ALIVE PRIOR TO MATURITY.
RIGHT TO RETURN POLICY.
PLEASE READ YOUR POLICY CAREFULLY. IF YOU ARE NOT SATISFIED WITH IT, YOU MAY
RETURN IT BY DELIVERING OR MAILING IT TO US AT ONE SUN LIFE EXECUTIVE PARK,
WELLESLEY HILLS, MASSACHUSETTS 02481, OR TO THE SALES REPRESENTATIVE THROUGH
WHOM YOU PURCHASED THE POLICY, WITHIN 10 DAYS FROM THE DATE OF RECEIPT (THE
"RIGHT TO RETURN POLICY PERIOD"). THE POLICY WILL THEN BE DEEMED VOID, AS THOUGH
IT HAD NEVER BEEN APPLIED FOR. YOU WILL RECEIVE A REFUND EQUAL TO THE SUM OF (1)
THE DIFFERENCE BETWEEN ANY PREMIUM PAYMENTS MADE, INCLUDING FEES AND CHARGES,
AND THE AMOUNTS ALLOCATED TO THE VARIABLE ACCOUNT, (2) THE VALUE OF THE AMOUNTS
ALLOCATED TO THE VARIABLE ACCOUNT ON THE DATE THE CANCELLATION REQUEST IS
RECEIVED BY THE COMPANY OR THE SALES REPRESENTATIVE THROUGH WHOM YOU PURCHASED
THE POLICY, AND (3) ANY FEES OR CHARGES IMPOSED ON AMOUNTS ALLOCATED TO THE
VARIABLE ACCOUNT.
SVUL-2000 Page 1-AV10
<PAGE>
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
1. POLICY SPECIFICATIONS Page 3
2. TABLE OF GUARANTEED MAXIMUM MONTHLY COST OF INSURANCE
RATES PER $1,000 OF NET AMOUNT AT RISK Page 4
3. DEFINITIONS Page 5
4. GENERAL PROVISIONS Page 8
5. RIGHTS OF OWNERS AND BENEFICIARIES Page 10
6. THE VARIABLE ACCOUNT Page 11
7. PREMIUMS Page 13
8. DEATH BENEFIT Page 14
9. ACCOUNT VALUE Page 15
10. POLICY BENEFITS Page 20
RIDERS AND ENDORSEMENTS
APPLICATION
SVUL-2000 Page 2
<PAGE>
<TABLE>
<CAPTION>
<S><C>
-----------------------------------------------------------------------------------------------------
1. POLICY SPECIFICATIONS
Insureds John Doe
Jane Doe
Policy Number VL0000001
Office ABC Insurance Agency
Issue Age, Sex, Class John Doe
35, Male, Non Tobacco Preferred
Jane Doe
35, Female, Non Tobacco Preferred
Underwriting classification for
additional charges John Doe
150% multiple plus 1.00 per 1,000
Jane Doe
None
Specified Face Amount $250,000
Minimum Specified Face Amount $250,000
Initial Premium $ xxx
Minimum Monthly Premium $ xxx
Planned Periodic Premium $ xxx
Billing Period Annual
Issue Date January 1, 2000
Policy Date January 1, 2000
Maturity January 1, 2065
Protected Period 60 months
Currency United States Dollars
Owner Jean D'Eau
Beneficiary As stated in the Application unless subsequently
changed
Death Benefit Option Option A: Specified Face Amount
Variable Account
Name Sun Life of Canada (U.S.) Variable Account I
Securities & Exchange Commission Registration Unit Investment Trust
Allocation of Premiums during Right to Return Period Fixed Account Value
</TABLE>
NOTE: THE PLANNED PERIODIC PREMIUM SHOWN ABOVE MAY BE INSUFFICIENT TO CONTINUE
COVERAGE TO MATURITY. THE PERIOD FOR WHICH THE POLICY WILL REMAIN IN FORCE
DEPENDS ON THE AMOUNT AND TIMING OF PREMIUMS PAID, DEDUCTIONS FOR BENEFITS AND
RIDERS, CHANGES IN THE SPECIFIED FACE AMOUNT AND DEATH BENEFIT OPTION,
SUB-ACCOUNT PERFORMANCE, POLICY LOANS, PARTIAL SURRENDERS AND FEES.
SVUL-2000 Page 3
<PAGE>
<TABLE>
<CAPTION>
<S><C>
- -----------------------------------------------------------------------------------------------------
1. POLICY SPECIFICATIONS
Expense Charge Applied to Premium
In Policy Year 1
- percentage applied to the first $xx.xx each Premium 10.00%
- percentage applied to the amount of each Premium in
excess of $xx.xx 7.25%
After Policy Year 1, percentage applied to each Premium 7.25%
Monthly Face Amount Charge
Policy Years 1-10 $xxx
Mortality and Expense Risk Percentage .80% (annual)
Daily Risk Charge .0021831% (daily)
Policy Loan Interest Rate (payable in arrears) 4.00% annually during Policy
Years 1-10
3.00% annually in Policy Years
11 and after
Interest Credited on Fixed Account 3.00% annually
- -----------------------------------------------------------------------------------------------------
Supplemental Benefits and Changes
- -----------------------------------------------------------------------------------------------------
</TABLE>
SVUL-2000 Page 3a
<PAGE>
---------------------------------------------------------------------------
1. POLICY SPECIFICATIONS
Insureds John Doe, Jane Doe
SURRENDER CHARGE ON THE SPECIFIED FACE AMOUNT ON THE POLICY DATE
<TABLE>
<CAPTION>
----------------------------------------------------------
POLICY YEAR SURRENDER CHARGE
----------------------------------------------------------
<S> <C>
1 xxxx
2 Xxxx
3 Xxxx
4 Xxxx
5 Xxxx
6 Xxxx
7 Xxxx
8 Xxxx
9 Xxxx
10 Xxxx
11 Xxxx
12 Xxxx
13 Xxxx
14 Xxxx
15 Xxxx
16 and after 0
----------------------------------------------------------
</TABLE>
Surrender Charges apply upon the surrender of the Policy for its Cash Surrender
Value. Partial Surrender Charges are deducted from the Account Value upon
requested decreases in the Specified Face Amount. See Section 10.
SVUL-2000 Page 3b
<PAGE>
<TABLE>
<CAPTION>
<S><C>
- ----------------------------------------------------------------------------------------------------------------
1. POLICY SPECIFICATIONS
NET PREMIUM ALLOCATION PERCENTAGES
AIM VARIABLE INSURANCE FUNDS, INC. MFS/SUN LIFE SERIES TRUST
___% AIM V.I. Capital Appreciation Fund ___% MFS/Sun Life Capital Appreciation Series
___% AIM V.I. Growth Fund ___% MFS/Sun Life Emerging Growth Series
___% AIM V.I. Growth and Income Fund ___% MFS/Sun Life Government Securities Series
___% AIM V.I. International Equity Fund ___% MFS/Sun Life High Yield Series
___% MFS/Sun Life Massachusetts Investors
THE ALGER AMERICAN FUND Growth Series Stocks
___% Alger American Growth Portfolio ___% MFS/Sun Life Massachusetts Investors
___% Alger American Income and Growth Portfolio Trust Series
___% Alger American Small Capitalization Portfolio ___% MFS/Sun Life New Discovery Series
___% MFS/Sun Life Total Return Series
GOLDMAN SACHS VARIABLE INSURANCE TRUST ___% MFS/Sun Life Utilities Series
___% Goldman Sachs V.I.T. CORE Large Cap
Growth Fund OCC ACCUMULATION TRUST
___% Goldman Sachs V.I.T. CORE Small Cap ___% OCC Accumulation Trust Equity Portfolio
Equity Fund ___% OCC Accumulation Trust Managed Portfolio
___% Goldman Sachs V.I.T. CORE U.S. Equity ___% OCC Accumulation Trust Mid Cap Portfolio
Fund ___% OCC Accumulation Trust Small Cap
___% Goldman Sachs V.I.T. Growth and Income Portfolio
Fund
___% Goldman Sachs International Equity Fund SUN CAPITAL ADVISERS, INC (WELLINGTON
MANAGEMENT SUBADVISED FUNDS)
SUN CAPITAL ADVISERS, INC. ___% Sun Capital Blue Chip Mid Cap Fund
___% Sun Capital Money Market Fund ___% Sun Capital Investors Foundation Fund
___% SunCapital Investment Grade Bond Fund ___% Sun Capital Select Equity Fund
___% Sun Capital Real Estate Fund
SUN LIFE OF CANADA (U.S.) FIXED ACCOUNT
GUARANTEE OPTION
___% Fixed Account
</TABLE>
SVUL-2000 Page 3c
<PAGE>
- --------------------------------------------------------------------------------
1. POLICY SPECIFICATIONS
TABLE OF DEATH BENEFIT PERCENTAGES
--------------------------------------------------------------------------
<TABLE>
<CAPTION>
APPLICABLE APPLICABLE
AGE PERCENTAGE AGE PERCENTAGE
<S> <C> <C> <C>
20 250% 60 130%
21 250% 61 128%
22 250% 62 126%
23 250% 63 124%
24 250% 64 122%
25 250% 65 120%
26 250% 66 119%
27 250% 67 118%
28 250% 68 117%
29 250% 69 116%
30 250% 70 115%
31 250% 71 113%
32 250% 72 111%
33 250% 73 109%
34 250% 74 107%
35 250% 75 105%
36 250% 76 105%
37 250% 77 105%
38 250% 78 105%
39 250% 79 105%
40 250% 80 105%
41 243% 81 105%
42 236% 82 105%
43 229% 83 105%
44 222% 84 105%
45 215% 85 105%
46 209% 86 105%
47 203% 87 105%
48 197% 88 105%
49 191% 89 105%
50 185% 90 105%
51 178% 91 104%
52 171% 92 103%
53 164% 93 102%
54 157% 94 101%
55 150% 95 100%
56 146% 96 100%
57 142% 97 100%
58 138% 98 100%
59 134% 99 100%
</TABLE>
--------------------------------------------------------------------------
DEATH BENEFIT PERCENTAGES ARE BASED ON THE AGE OF THE YOUNGER INSURED.
SVUL-2000 Page 3d
<PAGE>
- --------------------------------------------------------------------------------
2. TABLE OF GUARANTEED MAXIMUM MONTHLY COST OF INSURANCE
RATES PER $1,000 OF NET AMOUNT AT RISK
<TABLE>
<CAPTION>
Policy Monthly Policy Monthly
Year Rate Year Rate
<S> <C> <C> <C>
1 $ 0.000000 34 $ 0.000000
2 35
3 36
4 37
5 38
6 39
7 40
8 41
9 42
10 43
11 44
12 45
13 46
14 47
15 48
16 49
17 50
18 51
19 52
20 53
21 54
22 55
23 56
24 57
25 58
26 59
27 60
28 61
29 62
30 63
31 64
32 65
33
</TABLE>
This Table of Guaranteed Maximum Monthly Cost of Insurance Rates reflects
additional charges due to any underwriting classification shown in Section 1 of
the Policy.
SVUL-2000 Page 4
<PAGE>
- --------------------------------------------------------------------------------
3. DEFINITIONS
ACCOUNT VALUE: The sum of the amounts in each Sub-Account of the Variable
Account with respect to the Policy plus the amount of the Fixed Account Value.
ANNIVERSARY: The same day in each succeeding year as the day of the year
corresponding to the Policy Date shown in Section 1.
APPLICATION: Your application for the Policy, a copy of which is attached hereto
and incorporated herein.
ATTAINED AGE: An Insured's Issue Age plus the number of completed Policy Years.
BENEFICIARY: The person or entity entitled to receive the Policy Proceeds as
they become due at death.
BUSINESS DAY: Any day that We are open for business.
CASH VALUE: The Account Value less any Surrender Charges.
CASH SURRENDER VALUE: The Cash Value decreased by the balance of any outstanding
Policy Debt.
CLASS: The risk and underwriting classification of an Insured, as specified in
Section 1.
COMPANY: Sun Life Assurance Company of Canada (U.S.).
DAILY RISK CHARGE: The daily rate for deduction of the Mortality and Expense
Risk Charge as specified in Section 1.
DUE PROOF: Such evidence as We may reasonably require in order to establish that
Policy Proceeds or any other benefits are due and payable. Due Proof is required
of the death of each Insured.
EFFECTIVE DATE OF COVERAGE: Initially, the Investment Start Date; with respect
to any increase in the Specified Face Amount, the Anniversary that falls on or
next follows the date We approve the supplemental application for such increase;
with respect to any decrease in the Specified Face Amount, the Monthly
Anniversary Day that falls on or next follows the date We receive Your request.
EXPENSE CHARGE APPLIED TO PREMIUM: The expense charge applied to Premium
specified in Section 1.
FIXED ACCOUNT VALUE: The portion of the Account Value funded by the assets of
the General Account.
FUND: A mutual fund portfolio in which a Sub-Account invests.
GENERAL ACCOUNT: The assets held by Us, other than those allocated to the
Sub-Accounts of the Variable Account or any other separate account of the
Company.
INITIAL PREMIUM: The Premium amount specified as such in Section 1.
INSUREDS: The persons whose lives are insured under this Policy.
INVESTMENT START DATE: The date the first Premium is applied, which will be the
later of the Issue Date, the Policy Date or the Valuation Date We receive a
Premium equal to or in excess of the Initial Premium.
ISSUE AGE: For each Insured, the age as of the Insured's birthday nearest the
Policy Date shown in Section 1.
ISSUE DATE: The date We produce the Policy from Our systems and specified as
such in Section 1.
SVUL-2000 Page 5
<PAGE>
- --------------------------------------------------------------------------------
MATURITY: The Anniversary on which the younger Insured's Attained Age is 100. If
either Insured is living and the Policy is in force on this date, the Cash
Surrender Value is payable to You. This date may be extended at Your request and
in accordance with the Maturity Date Extension provision in Section 4. It is
possible that insurance coverage may not continue to Maturity as described in
the Insufficient Value Provision of Section 9, even if Planned Periodic Premiums
are paid in a timely manner.
MINIMUM MONTHLY PREMIUM: The Premium amount specified as such in Section 1.
MONTHLY ANNIVERSARY DAY: The same day in each succeeding month as the day of the
month corresponding to the Policy Date shown in Section 1.
MONTHLY COST OF INSURANCE: An amount deducted from the Account Value on a
monthly basis for the insurance coverage provided by the Policy, as specified in
Section 9.
MONTHLY FACE AMOUNT CHARGE: An amount deducted from the Account Value on a
monthly basis for administrative and other expenses shown in Section 1.
MORTALITY AND EXPENSE RISK CHARGE: An amount deducted from the Account Value in
the Sub-Accounts for the Mortality and Expense Risk Charge annual rate specified
in Section 1. This annual rate is converted to a daily rate, the Daily Risk
Charge, and deducted from the the Unit Values of the Sub-Acounts on a daily
basis.
NET PREMIUM: A Premium less the Expense Charge Applied to Premium.
OUR PRINCIPAL OFFICE: Sun Life Assurance Company of Canada (U.S.), One Sun Life
Executive Park, Wellesley Hills, Massachusetts 02481, or such other address as
We may hereafter specify to You by written notice.
OWNER: The person, persons or entity entitled to the ownership rights stated in
the Policy while either Insured is alive.
PARTIAL SURRENDER: A surrender of a portion of the Account Value in exchange for
a payment to the Owner in accordance with the terms of Section 10.
POLICY: This life insurance contract, including the attached copy of the
Application and any copies of supplemental applications for increases in the
face amount.
POLICY DATE: The date specified as such in Section 1.
POLICY DEBT: The principal amount of any outstanding loan against the Policy,
plus accrued but unpaid interest on such loan.
POLICY MONTH: A one-month period commencing on the Policy Date or any Monthly
Anniversary Day and ending on the next Monthly Anniversary Day.
POLICY PROCEEDS: The amount determined in accordance with the terms of the
Policy which is payable at the death of the last Insured to die prior to
Maturity. This amount is the Death Benefit as described in Section 8, decreased
by the amount of any outstanding Policy Debt, and increased by the amounts
payable under any supplemental benefits.
POLICY YEAR: A one-year period commencing on the Policy Date or any Anniversary
and ending on the next Anniversary.
PREMIUM: An amount paid to Us by the Owner or on the Owner's behalf as
consideration for the benefits provided by the Policy.
SVUL-2000 Page 6
<PAGE>
- --------------------------------------------------------------------------------
PROTECTED PERIOD: The period during which the Policy will not terminate without
value as long as it satisfies the minimum premium test described in Section 9.
The Protected Period begins on the Policy Date shown in Section 1.
SPECIFIED FACE AMOUNT: The amount of life insurance coverage You request as
specified in Section 1.
SUB-ACCOUNTS: Sub-accounts into which the assets of the Variable Account are
divided, each of which corresponds to an investment choice available to You.
UNIT: A unit of measurement that We use to calculate the value of each
Sub-Account.
UNIT VALUE: The value of each Unit of assets in a Sub-Account.
UNPAID POLICY CHARGES: The amounts by which the Monthly Face Amount Charges plus
the Monthly Costs of Insurance plus the Policy Debt exceed the Account Value
during the Grace Period.
VALUATION DATE: Any day on which the New York Stock Exchange, We, and the
relevant Fund are open for business. A Valuation Date will also include any day
that may be required by any applicable Securities and Exchange Commission Rules
and Regulations.
VALUATION PERIOD: The period of time from one determination of Unit Values to
the next, subsequent determination of Unit Values. We will determine Unit Values
for each Valuation Date as of the close of the New York Stock Exchange on that
Valuation Date.
VARIABLE ACCOUNT: Sun Life Assurance Company of Canada (U.S.) Variable Account
I, a separate account of the Company consisting of assets set aside by the
Company, the investment performance of which is kept separate from that of the
general assets of the Company (also referred to as "Variable Account I").
WE, OUR AND US: We, Our and Us refer to Sun Life Assurance Company of Canada
(U.S.).
YOU, YOUR AND YOURSELF: You, Your and Yourself refer to the Owner of the Policy.
SVUL-2000 Page 7
<PAGE>
- --------------------------------------------------------------------------------
4. GENERAL PROVISIONS
ENTIRE CONTRACT
Your entire contract with Us consists of the Policy, including the attached copy
of the Application and any copies of supplemental applications for increases in
the Specified Face Amount.
ALTERATION
Sales representatives do not have the authority either to alter or to modify the
Policy or to waive any of its provisions. The only persons with this authority
are Our president, actuary, secretary, or one of Our vice presidents.
MODIFICATION
Upon notice to You, We may modify the Policy if such modification (1) is
necessary to make the Policy or the Variable Account comply with any law or
regulation issued by a governmental agency to which the Company or the Variable
Account is subject; or (2) is necessary to assure continued qualification of the
Policy under the Internal Revenue Code or other federal or state laws as a life
insurance policy; or (3) is necessary to reflect a change in the operation of
the Variable Account or the Sub-Accounts: or (4) adds, deletes or otherwise
changes Sub-Account options. We also reserve the right to modify certain
provisions of the Policy as stated in those provisions. We may make appropriate
amendment to the Policy to reflect any such modification.
ASSIGNMENTS
At any time before Maturity of the Policy and while either Insured is alive, You
may assign all or some of Your rights under the Policy. All assignments must
be filed at Our Principal Office and must be in written form satisfactory to Us.
The assignment will then be effective as of the date You signed the form,
subject to any action taken before it was received by Us. We are not responsible
for the validity or legal effect of any assignment.
NONPARTICIPATING
The Policy does not pay dividends.
MISSTATEMENT OF AGE OR SEX
If the age or sex of either Insured is stated
incorrectly, the amounts payable by Us will be adjusted as follows:
- - Misstatement discovered at death: Upon the death of the last Insured to
die, the Death Benefit will be recalculated to that which would be
purchased by the most recently charged Monthly Cost of Insurance
Rate for the correct age or sex of each Insured.
- - Misstatement discovered prior to death: Upon the death of the last
Insured to die, the Account Value will be recalculated from the
Policy Date using the Monthly Cost of Insurance Rates based on the
correct age or sex of each Insured.
SUICIDE
If the last surviving
Insured, whether sane or insane, commits suicide within two years after the
Issue Date, We will not pay any part of the Policy Proceeds. We will refund to
You the Premiums paid, less the amount of any Policy Debt and any Partial
Surrenders.
If the last surviving Insured, whether sane or insane, commits suicide within
two years after the effective date of an increase in the Specified Face Amount,
then Our liability as to that increase will be the cost of insurance for that
increase.
SVUL-2000 Page 8
<PAGE>
- --------------------------------------------------------------------------------
INCONTESTABILITY
All statements made in the Application or in a supplemental application are
representations and not warranties. We relied and will rely on these statements
when approving the issuance, increase in Specified Face Amount, increase in
Death Benefit over Premium paid, or change in death benefit option of the
Policy. No statement can be used by Us in defense of a claim unless the
statement was made in the Application or in a supplemental application. In the
absence of fraud, after the Policy has been in force during the lifetime of the
Insureds for a period of two years from its Issue Date, We cannot contest it
except for non-payment of Premiums in accordance with the Insufficient Value
provision of Section 9. However, any increase in the Specified Face Amount which
is effective after the Issue Date will be incontestable only after such increase
has been in force during the lifetime of the Insureds for two years from the
Effective Date of Coverage of such increase. Any increase in death benefit over
Premium paid or increase in death benefit due to a death benefit option change
will be incontestable only after such increase has been in force during the
lifetime of the Insureds for two years from the date of the increase.
REPORT TO OWNER
We will send You a report at least once each Policy Year. The report will show
current Policy values, Premiums paid, and deductions made since the last report.
It will also show the balance of any outstanding Policy loans and accrued
interest on such loans. There is no charge for this report.
ILLUSTRATIONS
At your request, after the first Policy Year, we will provide You with
illustrations of future Account Values and death benefits. The first
illustration in a Policy Year will be provided free of charge. For each
additional illustration provided in a Policy Year, we may charge a fee not to
exceed $25 per illustration.
MATURITY DATE EXTENSION
The Maturity date of this Policy will be extended beyond the Maturity date shown
in Section 1 (the original Maturity date, if You so request in writing prior
thereto and this Policy has a Cash Value on the original Maturity date. The new
Maturity date will be the one You request.
After the original Maturity date (if You have requested a new Maturity date):
1. We will not accept any more Premium payments for this Policy.
2. No more deductions for any applicable Monthly Face Amount Charges or for
the Monthly Cost of Insurance will be made from the Account Value.
3. The death benefit will be the Account Value on the date of death of the
last Insured.
4. The Reinstatement provision will not apply.
Except as provided in this Maturity Date Extension provision, an extension of
the Maturity date does not alter this Policy.
SVUL-2000 Page 9
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5. RIGHTS OF OWNERS AND BENEFICIARIES
RIGHTS OF OWNER
While either Insured is alive, unless You have assigned any of these rights, You
may:
- - transfer ownership to a new Owner;
- - name a contingent Owner who will automatically become the Owner of the
Policy if You die before the last Insured to die;
- - change or revoke a contingent Owner;
- - change or revoke a Beneficiary;
- - exercise all other rights in the Policy;
- - increase or decrease the Specified Face Amount, subject to the other
provisions of the Policy;
- - change the death benefit option, subject to the Changes in the Death
Benefit Option provision of Section 8 of the Policy.
When You transfer Your rights to a new Owner, You automatically revoke any prior
contingent Owner designation. When You want to change or revoke a prior
Beneficiary designation, You have to specify that action. You do not affect a
prior Beneficiary designation when You
merely transfer ownership, or change or revoke a contingent Owner designation.
PROCEDURE
You do not need the consent of a Beneficiary or a contingent Owner in order to
exercise any of Your rights. However, You must give Us written notice
satisfactory to Us of the requested action. Your request will then, except as
otherwise specified, be effective as of the date You signed the form, subject to
any action taken before We received it.
RIGHTS OF BENEFICIARY
The Beneficiary has no rights in the Policy until the death of the last Insured
to die. If a Beneficiary is alive at that time, the Beneficiary will be entitled
to payment of the Policy Proceeds as they become due.
SSVUL-1999 Page 10
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6. THE VARIABLE ACCOUNT
The assets of the Variable Account shall be kept separate from Our other assets.
We have the right to transfer to the General Account any assets of the Variable
Account which are in excess of the reserves and other Policy liabilities of the
Variable Account. The income, gains and losses, realized or unrealized, from
assets allocated to the Variable Account shall be credited to or charged against
the Variable Account without regard to any other income, gains or losses. Also,
the income, gains and losses, realized or unrealized, from assets allocated to
any Sub-Account shall be credited to or charged against that Sub-Account,
without regard to other income, gains or losses of Us or of any other
Sub-Account. The portion of the assets of the Variable Account equal to the
reserves and other Policy liabilities with respect to the Variable Account will
not be chargeable with liabilities arising out of any other business the Company
may conduct. Although the assets maintained in the Variable Account will not be
charged with any liabilities arising out of any other business conducted by Us,
all obligations arising under the Policy, including the promise to make all
benefit payments, are Our general corporate obligations.
At Our election, and subject to any necessary vote by those having voting
rights, the Variable Account may be operated as a unit investment trust or a
management company under the Investment Company Act of 1940. It may be
registered under the Investment Company Act of 1940 or de-registered in the
event registration is no longer required. In the event of any change in the
operation of the Variable Account pursuant to this provision, We may make
appropriate amendment to the contract to reflect the change and take such other
action as may be necessary and appropriate to effect the change.
SUB-ACCOUNTS
The assets of the Variable Account are divided into Sub-Accounts. Each
Sub-Account invests exclusively in a different investment portfolio. Income,
gains and losses, whether or not realized, from the assets of each Sub-Account
are credited to or charged against that Sub-Account without regard to income,
gains or losses in other Sub-Accounts of the Variable Account. All amounts
allocated to the Variable Account will be used to purchase shares of one or more
of the Funds, as You designate. Deductions and surrenders from the Variable
Account will, in effect, be made by redeeming the number of Fund shares at net
Unit Value equal in total value to the amount to be deducted. The Variable
Account will be fully invested in Fund shares at all times.
ADDITION, DELETION OR SUBSTITUTION OF SUB-ACCOUNTS
We may decide to add Sub-Accounts at any time. Also, shares of any or all of the
portfolios may not always be available for purchase by the Sub-Accounts of the
Variable Account, or We may decide that further investment in any such shares is
no longer appropriate. In either event, shares of other registered open-end
investment companies or unit investment trusts may be substituted both for
portfolio shares already purchased by the Variable Account and/or as the
security to be purchased in the future, provided that to the extent necessary
these substitutions have been approved by the Securities and Exchange
Commission. The investment policies of the Sub-Accounts will not be changed
without the approval of the Insurance Commissioner of the State of Delaware. We
also reserve the right to eliminate or combine existing Sub-Accounts or transfer
assets between Sub-Accounts. In the event of any act pursuant to this provision,
We may make appropriate amendment to the Policy to reflect the substitution.
TRANSFERS BETWEEN SUB-ACCOUNTS
Subject to our rules as they may exist from time to time and any limits that may
be imposed by the Funds, You may at any time transfer to another Sub-Account all
or a portion of the Account Value allocated to a Sub-Account. We will make
transfers pursuant to an authorized written or telephone request to Us.
Telephone requests will be honored only if We have a properly completed
telephone authorization form for You on file. We, Our affiliates and the
representative from whom You purchased Your Policy will not be responsible for
losses resulting from acting upon telephone requests reasonably believed to be
genuine. We will use reasonable procedures to confirm that instructions
communicated by telephone are genuine. The procedures We follow for transactions
initiated by telephone include requirements that You identify Yourself by name
and identify a personal identification number.
SVUL-2000 Page 11
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Transfers may be requested by indicating the transfer of either a specified
dollar amount or a specified percentage of the Sub-Account's value from which
the transfer will be made. If You request a transfer based on a specified
percentage of the Sub-Account's value, that percentage will be converted into a
request for the transfer of a specified dollar amount based on application of
the specified percentage to the Sub-Account's value at the time the request is
received. We reserve the right to limit the number of Sub-Accounts to which you
may allocate Your Account Value to not more than 20 Sub-Accounts.
Transfer privileges are subject to Our consent. We reserve the right to impose
limitations on transfers, including, but not limited to: (1) the minimum amount
that may be transferred; and (2) the minimum amount that may remain in a
Sub-Account following a transfer from that Sub-Account.
We reserve the right to restrict amounts transferred to the Variable Account
from the Fixed Account to 20% of that portion of the Account Value attributable
to the Fixed Account Value as of the end of the previous Policy Year.
We reserve the right to restrict amounts transferred to the Fixed Account Value
from the Variable Account to 20% of that portion of the Account Value
attributable to the Variable Account as of the end of the previous Policy Year.
We further reserve the right to restrict amounts transferred to the Fixed
Account Value from the Variable Account in the event the portion of the Account
Value attributable to the Fixed Account Value would exceed 30% of the Account
Value.
SVUL-2000 Page 12
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7. PREMIUMS
All Premium payments are payable to Us, and should be mailed to Our Principal
Office. The Initial Premium is due and payable as of the Issue date of the
Policy. Subsequent Premiums may be paid to Us subject to the limitations
described below. All Premiums are to be paid to Us at Our Principal Office.
PREMIUM
We reserve the right to limit the number of Premium payments We accept during a
year. No Premium payment may be less than $50 without Our consent, although We
will accept any Premium payment if it is necessary to keep Your Policy in force.
We reserve the right not to accept a Premium payment that causes the Death
Benefit to increase by an amount that exceeds the Premium received.
Evidence of insurability satisfactory to Us for each Insured may be required
before We accept such a Premium.
We will not accept Premium payments that would, in Our opinion, cause the Policy
to fail to qualify as life insurance under applicable tax law. If a Premium
payment is made in excess of these limits, We will accept only that portion of
the Premium within those limits, and will refund the remainder to You.
NET PREMIUMS
The Net Premium is the amount paid as the Premium less the Expense Charge
Applied to Premium. The Expense Charge Applied to Premium will be determined by
Us from time to time based on Our expectations of future expenses and taxes.
However, the Expense Charge Applied to Premium will not be greater than the
guaranteed maximum shown for this Charge in Section 1.
ALLOCATION OF NET PREMIUM
Except as otherwise provided herein, Net Premium will be allocated to the
Sub-Accounts in accordance with the allocation percentages specified by You.
Your initial allocation percentages are shown in Section 1. The minimum
allocation for any Sub-Account to which You choose to allocate Account Value is
5% of Net Premium, and percentages must be in whole numbers. We reserve the
right to limit the number of Sub Accounts to which you may allocate your Account
Value to not more than 20 Sub-Accounts. Net Premiums will first be applied to
reduce any Unpaid Policy Charges.
Premiums received prior to the end of the Right to Return Policy Period will be
credited as shown in Section 1 for allocation of Premiums during the Right to
Return Policy Period. Your initial allocation percentages will take effect at
the end of the Right to Return Policy Period.
You may change the allocation percentages at any time pursuant to written or
telephone request to Our Principal Office. Telephone requests will be honored
only if We have a properly completed telephone authorization form for You on
file. We, Our affiliates and the representative from whom You purchased Your
Policy will not be responsible for losses resulting from acting upon telephone
requests reasonably believed to be genuine. We will use reasonable procedures to
confirm that instructions communicated by telephone are genuine. The procedures
We follow for transactions initiated by telephone include requirements that You
identify Yourself by name and identify a personal identification number.
An allocation change will be effective as of the date We receive a timely
request for that change.
PLANNED PERIODIC PREMIUMS
While You are not required to make subsequent Premium payments according to a
fixed schedule, You may select a planned periodic Premium schedule and
corresponding billing period, subject to Our limits. We will send You reminder
notices for the planned periodic Premium at each billing period as specified in
Section 1 unless reminder notices have been suspended as described below.
However, You are not required to pay the planned periodic Premium; You may
increase or decrease the planned periodic Premium subject to Our limits, and You
may skip a planned payment or make unscheduled payments. You may change Your
planned payment schedule or the billing period, subject to Our approval.
Depending on the investment performance of the Sub-Accounts You select, the
planned periodic Premium may not be sufficient to keep the Policy in force, and
You may need to change Your planned payment schedule or make additional payments
in order to prevent termination of Your Policy. We will suspend reminder notices
at Your written request, and We reserve the right to suspend reminder notices if
Premiums are not being paid (except for notices in connection with the grace
period). We will notify You prior to suspending reminder notices.
SVUL-2000 Page 13
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8. DEATH BENEFIT
DEATH BENEFIT AND DEATH BENEFIT OPTION
The death benefit depends upon the death benefit option in effect at that time.
The death benefit option in effect on the Issue Date is specified in Section 1.
The two options are:
Option A - Specified Face Amount. The death benefit is the greater of: 1) the
Specified Face Amount; or 2) the Account Value multiplied by the applicable
death benefit percentage shown in Section 1.
Option B - Specified Face Amount plus Account Value. The death benefit is the
greater of: 1) the Specified Face Amount plus the Account Value; or 2) the
Account Value multiplied by the applicable death benefit percentage shown in
Section 1.
The death benefit will be determined based on the Account Value on the date of
death of the last Insured to die. The actual Policy Proceeds payable on the date
of the death of the last Insured to die. The Policy Proceeds payable on the
death of the last Insured to die will be the death benefit described above less
any Policy Debt and less any Unpaid Policy Charges. Under certain circumstances
the Policy Proceeds may be adjusted (see "Incontestability", "Misstatement of
Age or Sex" and "Suicide" in Section 4).
CHANGES IN SPECIFIED FACE AMOUNT
After the end of the first Policy Year, You may request a change in the
Specified Face Amount. You must send Your request for a change to Our Principal
Office in writing. Each such change will be effective on the Effective Date of
Coverage for the change.
DECREASES IN SPECIFIED FACE AMOUNT
The Specified Face Amount may not be decreased to less than the Minimum
Specified Face Amount specified in Section 1. A decrease in Specified Face
Amount will be applied to the initial Specified Face Amount and to each increase
in Specified Face Amount in the following order:
1. first, to the most recent increase;
2. second, to the next most recent increases, in reverse chronological order;
and
3. finally, to the initial Specified Face Amount.
INCREASES IN SPECIFIED FACE AMOUNT
An increase in the Specified Face Amount is subject to Our underwriting rules in
effect at the time of the increase. Both Insureds must be living when You
request the increase. You may be required to submit evidence of an Insured's
insurability satisfactory to Us. We will not accept a request for an increase if
the age of either Insured is greater than 80 at the next Anniversary following
the request.
CHANGES IN THE DEATH BENEFIT OPTION
After the end of the first Policy Year You may request a change in the death
benefit option. Changes in the death benefit option are subject to Our
underwriting rules in effect at the time of change. Requests for a change must
be made in writing to Us. The effective date of the change will be the
Anniversary on or next following the date We receive Your request.
Both Insureds must be living when You request a change to option B.
If the death benefit option change is from option A to option B, the Specified
Face Amount will be reduced by the Account Value. The Specified Face Amount
after a reduction may not be less than the Minimum Specified Face Amount shown
in Section 1. If the death benefit option change is from option B to option A,
the Specified Face Amount will be increased by the Account Value. This increase
in the Specified Face Amount is not subject to evidence of the Insureds'
insurability. In any case, the amount of the death benefit at the time of change
will not be altered, but the change in death benefit option will affect the
determination of the death benefit from that point on.
SVUL-2000 Page 14
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9. ACCOUNT VALUE
ACCOUNT VALUE
The Account Value is the sum of the amounts in each Sub-Account of the Variable
Account with respect to the Policy plus the amount of the Fixed Account Value.
The Account Value varies depending upon the Premiums paid, Expense Charge
Applied to Premium, Mortality and Expense Risk Charge deductions, Monthly Face
Amount Charges, Monthly Cost of Insurance charges, Partial Surrenders, fees,
policy loans and the Net Investment Factor for the Sub-Accounts to which Your
Account Value is allocated.
VARIABLE ACCOUNT VALUE
We measure the amounts in the Sub-Accounts in terms of Units and Unit Values. On
any given date, the amount You have in a Sub-Account is equal to the Unit Value
multiplied by the number of Units credited to You in that Sub-Account. Amounts
allocated to a Sub-Account will be used to purchase Units of that Sub-Account.
Units are redeemed when You make Partial Surrenders, undertake Policy loans or
transfer amounts from a Sub-Account, and for the deductions of the Monthly Face
Amount Charge, fees and the Monthly Cost of Insurance charge. The number of
Units of each Sub-Account purchased or redeemed is determined by dividing the
dollar amount of the transaction by the Unit Value for the Sub-Account. The Unit
Value for each Sub-Account is established at $10.00 for the first Valuation Date
of the Sub-Account. The Unit Value for any subsequent Valuation Date is equal to
the Unit Value for the preceding Valuation Date multiplied by the Net Investment
Factor (determined as provided below). The Unit Value of a Sub-Account for any
Valuation Date is determined as of the close of the Valuation Period ending on
that Valuation Date.
Transactions are processed on the date We receive a Premium at Our Principal
Office or any acceptable written or telephonic request is received at Our
Principal Office. If Your Premium or request is received on a date that is not a
Valuation Date, or after the close of the New York Stock Exchange on a Valuation
Date, the transaction will be processed on the next subsequent Valuation Date.
VARIABLE ACCOUNT VALUE IN THE SUB-ACCOUNTS
The Variable Account Value attributable to each Sub-Account of the Variable
Account on the Investment Start Date equals:
1. that portion of Net Premium received and allocated to the Sub-Account,
less
2. that portion of the Monthly Face Amount Charges due on the Policy Date and
subsequent Monthly Anniversary Days through the Investment Start Date
charged to the Sub-Account, less
3. that portion of the Monthly Cost of Insurance deductions due from the
Policy Date through the Investment Start Date charged to the Sub-Account.
SVUL-2000 Page 15
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The Account Value attributable to each Sub-Account of the Variable Account on
subsequent Valuation Dates is equal to:
1. the Account Value attributable to the Sub-Account on the preceding
Valuation Date multiplied by that Sub-Account's Net Investment Factor, plus
2. that portion of Net Premium received and allocated to the Sub-Account
during the current Valuation Period, plus
3. any amounts transferred by You to the Sub-Account from another Sub-Account
or from the Fixed Account Value during the current Valuation Period, less
4. any amounts transferred by You from the Sub-Account to another Sub-Account
or to the Fixed Account Value during the current Valuation Period, less
5. that portion of any Partial Surrenders deducted from the Sub-Account during
the current Valuation Period, less
6. that portion of any Policy loan transferred from the Sub-Account to the
Fixed Account Value during the current Valuation Period, less
7. that portion of any surrender charges associated with a decrease in the
Specified Face Amount charged to the Sub-Account during the current
Valuation Period, less
8. if a Monthly Anniversary Day occurs during the current Valuation Period,
that portion of the Monthly Face Amount Charge for the Policy Month just
beginning charged to the Sub-Account, less
9. if a Monthly Anniversary Day occurs during the current Valuation Period,
that portion of the Monthly Cost of Insurance for the Policy Month just
ending charged to the Sub-Account.
NET INVESTMENT FACTOR
The Net Investment Factor for each Sub-Account for any Valuation Period is
determined by deducting the Mortality and Expense Risk Charge for each day of
the Valuation Period from the quotient of (1) divided by (2) where:
(1) is the net result of:
(a) the net asset value of a Fund share held in the Sub-Account
determined as of the end of the Valuation Period, plus
(b) the per share amount of any dividend or other distribution declared
on Fund shares held in the Sub-Account if the "ex-dividend" date
occurs during the Valuation Period, plus or minus
(c) a per share credit or charge with respect to any taxes reserved for
by the Company, or paid by the Company if not previously reserved
for, during the the Valuation Period which are determined by the
Company to be attributable to the operation of the Sub-Account; and
(2) is the net asset value of a Fund share held in the Sub-Account determined as
of the end of the preceding Valuation Period.
The Mortality and Expense Risk Charge for the Valuation Period is the Daily Risk
Charge times the number of days in the Valuation Period.
The Net Investment Factor may be greater or less than one.
SVUL-2000 Page 16
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MORTALITY AND EXPENSE RISK CHARGE
The Mortality and Expense Risk Charge will be determined by Us from time to time
based on Our expectations of future interest, mortality costs, persistency,
expenses and taxes. However, the Mortality and Expense Risk Charge will not be
greater than the guaranteed maximum shown for this Charge in Section 1.
FIXED ACCOUNT VALUE
The Fixed Account Value on the Investment Start Date equals:
1. that portion of Net Premium received and allocated to the Fixed Account
Value and accrued at interest, less
2. that portion of the Monthly Face Amount due on the Policy Date and
subsequent Monthly Anniversary Days through the Investment Start Date
charged to the Fixed Account Value and accrued at interest, less
3. that portion of the Monthly Cost of Insurance deductions due from the
Policy Date through the Investment Start Date charged to the Fixed Account
Value and accrued at interest.
The Fixed Account Value on subsequent Valuation Dates is equal to:
1. the Fixed Account Value on the preceding Valuation Date accrued at
interest, plus
2. that portion of Net Premium received and allocated to the Fixed Account
Value during the current Valuation Period and accrued at interest, plus
3. any amounts transferred by You to the Fixed Account Value from the Variable
Account during the current Valuation Period and accrued at interest, less
4. any amounts transferred by You from the Fixed Account Value to the Variable
Account during the current Valuation Period and accrued at interest, less
5. that portion of any Partial Surrenders deducted from the Fixed Account
Value during the current Valuation Period and accrued at interest, plus
6. any Policy loan transferred from the Variable Account to the Fixed Account
Value during the current Valuation Period and accrued at interest, less
7. that portion of any surrender charges associated with a decrease in the
Specified Face Amount charged to the Fixed Account Value during the current
Valuation Period, less
8. if a Monthly Anniversary Day occurs during the current Valuation Period,
that portion of the Monthly Face Amount Charge for the Policy Month just
beginning charged to the Fixed Account Value and accrued at interest, less
9. if a Monthly Anniversary Day occurs during the current Valuation Period,
that portion of the Monthly Cost of Insurance for the Policy Month just
ending charged to the Fixed Account Value and accrued at interest.
The guaranteed effective annual interest rate applicable to the Fixed Account
Value is specified in Section 1. Interest in excess of the guaranteed rate may
be applied in the calculation of the Fixed Account Value at such increased rates
and in such manner as we may determine, based on Our expectations of future
interest, mortality costs, persistency, expenses and taxes. Interest credited
will be computed on a compound interest basis.
MONTHLY FACE AMOUNT CHARGE
The Monthly Face Amount Charge is shown in Section 1. The Monthly Face Amount
Charge deduction will be charged proportionately to the amounts in the
Sub-Accounts and the amount of the Fixed Account Value in excess of the Policy
Debt.
SVUL-2000 Page 17
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MONTHLY COST OF INSURANCE
We deduct a Monthly Cost of Insurance charge from Your Account Value to cover
anticipated costs of providing insurance coverage. The Monthly Cost of Insurance
deduction will be charged proportionally to the amounts in the Sub-Accounts and
of the Fixed Account Value in excess of the Policy Debt.
The Monthly Cost of Insurance equals the sum of (1) and (2) where
(1) is the cost of insurance charges equal to the Monthly Cost of Insurance rate
(described below) multiplied by the net amount at risk divided by 1,000; and
(2) is the monthly rider cost (as described in the riders) for any riders which
are a part of the Policy.
The net amount at risk equals:
1. the death benefit divided by 1.00247 ; less
2. the Account Value on the Valuation Date prior to assessing the Monthly Face
Amount Charge and the Monthly Cost of Insurance charges.
If there are increases in the Specified Face Amount other than increases caused
by changes in the death benefit option, the cost of insurance charges described
above are determined separately for the initial Specified Face Amount and each
increase in the Specified Face Amount. In calculating the net amount at risk the
Account Value will first be allocated to the initial Specified Face Amount and
then to each increase in the Specified Face Amount in the order in which the
increases were made.
MONTHLY COST OF INSURANCE RATES
The Monthly Cost of Insurance rates (except for any such rate applicable to an
increase in the Specified Face Amount) are based on the length of time the
Policy has been in force and each Insured's sex, Issue Age, Class and any
additional charges for underwriting classification.
The Monthly Cost of Insurance rates will be determined by Us from time
to time based on Our expectations of future experience with respect to mortality
costs, persistency, interest rates, expenses and taxes. However, the Monthly
Cost of Insurance rates will not be greater than those shown in Section 2.
The Monthly Cost of Insurance rates applicable to each increase in the Specified
Face Amount are based on the length of time the increase has been in force and
each Insured's sex, Issue Age, Class and any additional charges for underwriting
classification. The Monthly Cost of Insurance rates will be determined by Us
from time to time based on Our expectations of future experience with respect to
mortality costs, persistency, interest rates, expenses and taxes. However, the
Monthly Cost of Insurance rates will not be greater than the maximum cost of
insurance rates provided by Us in Section 2 for each increase.
BASIS OF COMPUTATION
Guaranteed maximum Monthly Cost of Insurance rates are based on the 1980
Commissioner's Standard Ordinary Smoker and Nonsmoker Mortality Table. The
guaranteed maximum Monthly Cost of Insurance rates reflect any additional
charges for underwriting classification shown in Section 1. We have filed a
detailed statement of Our methods for computing Cash Values with the insurance
department in the jurisdiction where the Policy was delivered. These values are
equal to or exceed the minimum required by law.
INSUFFICIENT VALUE
If on a Valuation Date a Monthly Anniversary Day occurred during the Valuation
Period and the Cash Surrender Value is equal to or less than zero, then the
Policy will terminate for no value, subject to the Grace Period provision.
During the Protected Period shown in Section 1, the Policy will not terminate by
reason of insufficient value if the Policy satisfies the minimum premium test as
described below. The Protected Period begins on the Policy Date shown in
Section 1.
SVUL-2000 Page 18
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MINIMUM PREMIUM TEST
The Policy satisfies the minimum premium test if the Premiums paid less any
Partial Surrenders and less any Policy Debt exceed the sum of the Minimum
Monthly Premiums which applied to the Policy in each Policy Month from the
Policy Date to the Valuation Date on which the test is applied.
The Minimum Monthly Premium applicable to the Policy is shown in Section 1. The
Minimum Monthly Premium will be revised as a result of any of the following
changes to the Policy:
- - an increase in the Specified Face Amount;
- - an increase in supplemental benefits;
- - when requested by You, the addition of any supplemental benefits.
The revised Minimum Monthly Premium will be effective as of the effective date
of the change to the Policy and will remain in effect until again revised by any
of the above changes.
GRACE PERIOD
If, on a Valuation Date, the Policy will terminate by reason of insufficient
value, We will allow a grace period. This grace period will allow 61 days from
that Valuation Date for the payment of a Premium sufficient to keep the policy
in force. Notice of Premium due will be mailed to Your last known address or the
last known address of any assignee of record. We will assume that Your last
known address is the address shown on the Application (or notice of assignment),
unless We receive notice of a change in address in a form satisfactory to Us. If
the Premium due is not paid within 61 days after the beginning of the grace
period, then the Policy and all rights to benefits will terminate without value
at the end of the 61 day period. The Policy will continue to remain in force
during this grace period. Unpaid Policy Charges are any overdue Monthly Cost of
Insurance amounts and Mortality and Expense Risk Charges. If the Policy Proceeds
become payable during the grace period, then Unpaid Policy Charges will be
deducted from the amount payable by Us. Net Premium paid will first reduce any
Unpaid Policy Charges and the remainder will be allocated to the Account Value.
SPLITTING UNITS
We reserve the right to split or combine the value of Units. In effecting any
such change, strict equity will be preserved and no change will have a material
effect on the benefits or other provisions of the Policy.
SVUL-2000 Page 19
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10. POLICY BENEFITS
BENEFITS AT DEATH
The Policy Proceeds will be paid as they become due upon the death of the last
Insured to die prior to Maturity, in accordance with Section 8. We will make
payment when We receive Due Proof of the death of each Insured.
CASH SURRENDER VALUE
You may surrender the Policy for its Cash Surrender Value at any time. The Cash
Surrender Value is the Account Value decreased by any surrender charges and by
the balance of any Policy Debt. We will determine the Cash Surrender Value at
the end of the first Valuation Date after we receive Your written request for
surrender.
SURRENDER CHARGES
If this Policy is surrendered for its Cash Surrender Value, a surrender charge
will be applied to the initial Specified Face Amount and to each increase in the
Specified Face Amount, except that a surrender charge will not be applied to an
increase in the Specified Face Amount resulting from a change in the death
benefit option. The surrender charge will be calculated separately for the
initial Specified Face Amount and each increase in the Specified Face Amount.
The surrender charges for the initial Specified Face Amount and each increase in
the Specified Face Amount are shown in the current Section 1. We will send You a
current table of revised surrender charges resulting from an increase in the
Specified Face Amount that affects the surrender charges.
SURRENDER CHARGE ON DECREASE IN SPECIFIED FACE AMOUNT
A surrender charge will be deducted from the Account Value for each decrease
in the Specified Face Amount, except for a decrease in the Specified Face Amount
resulting from a change of death benefit option or from a Partial Surrender. A
surrender charge will be determined for the initial Specified Face Amount and
for each increase in the Specified Face Amount. These surrender charges will be
applied in the following order:
1. first, to the most recent increase;
2. second, to the next most recent increases, in reverse chronological order;
and
3. finally, to the initial Specified Face Amount.
The amounts of the surrender charges applied will be equal to the surrender
charges shown in the current Section 1, revised for any increases in the
Specified Face Amount, for the Policy Year in which the decrease is made
multiplied by (a) over (b), where: (a) is the decrease in the initial Specified
Face Amount or any subsequent increase in the Specified Face Amount; and (b) is
the initial Specified Face Amount or any subsequent increase in the Specified
Face Amount immediately prior to the decrease. Future surrender charges for the
initial Specified Face Amount and any increase in the Specified Face Amount will
be reduced by the surrender charges applied because of the decrease in the
initial Specified Face Amount or any subsequent increases in the Specified Face
Amount. We will send You a current table of revised surrender charges reflecting
the decrease in the initial Specified Face Amount or any subsequent increases in
the Specified Face Amount.
The surrender charge will be deducted from the Account Value. You may allocate
the surrender charges applied among the Sub-Accounts and the Fixed Account Value
pursuant to written or telephone request to Our Principal Office. Telephone
requests will be honored only if We have a properly completed telephone
authorization form for You on file. We, our affiliates and the representative
from whom You purchased Your Policy will not be responsible for losses resulting
from acting upon telephone requests reasonably believed to be genuine. We will
use reasonable procedures to confirm that instructions communicated by telephone
are genuine. The procedures We follow for transactions initiated by telephone
include requirements that You identify Yourself by name and identify a personal
identification number. If You do not specify the allocation, then the surrender
charge will be allocated among the Sub-Accounts in the proportion the amounts in
the Sub-Account and the Fixed Account Value in excess of the Policy Debt bear to
the Account Value in excess of the Policy Debt.
SVUL-2000 Page 20
<PAGE>
- --------------------------------------------------------------------------------
PARTIAL SURRENDER
You may make a Partial Surrender of the Policy once each Policy Year after the
first Policy Year by written request to Us. The amount of any Partial Surrender
must be at least $200. During the first ten Policy Years the maximum amount of
each Partial Surrender is 20% of the Cash Surrender Value at the end of the
first Valuation Date after We receive Your request. After the first ten Policy
years, the maximum amount of any Partial Surrender is the Cash Surrender Value.
If the Policy's death benefit option is option A, the Specified Face Amount will
be decreased by the amount of the Partial Surrender. The decrease in Specified
Face Amount will be applied to the initial Specified Face Amount and to each
increase in Specified Face Amount in the following order:
1. first, to the most recent increase;
2. second, to the next most recent increases, in reverse chronological order;
3. and finally, to the initial Specified Face Amount.
The Specified Face Amount remaining in force after the Partial Surrender must be
no lower than the minimum Specified Face Amount shown in Section 1.
We will effect a Partial Surrender at the end of the first Business Day after we
receive Your written request for surrender.
ALLOCATION OF PARTIAL SURRENDER
You may allocate the Partial Surrender among the Sub-Accounts of the Variable
Account and the Fixed Account Value. If You do not specify the allocation, then
the Partial Surrender will be allocated among the Sub-Accounts in the proportion
the amounts in the Sub-Account and the Fixed Account Value in excess of the
Policy Debt bear to the Account Value in excess of the Policy Debt.
POLICY LOAN
You may request a Policy loan of up to 90% of the Policy's Cash Value, decreased
by the amount of any outstanding Policy Debt on the date the Policy loan is
made. You may allocate the Policy loan among the Sub-Accounts and the Fixed
Account Value. If You do not specify the allocation, then the Policy loan will
be allocated among the Sub-Accounts in the proportion the amounts in the
Sub-Account and the Fixed Account Value in excess of the Policy loan bear to the
Account Value in excess of the Policy loan. Loan amounts allocated to the
Sub-Accounts will be transferred to the Fixed Account Value. If on a Valuation
Date the Policy Debt exceeds the Cash Value, the Policy will terminated for no
value, subject to the Grace Period provision as described in the Insufficient
Value provision in Section 9.
Interest on the Policy Debt will accrue daily at the Policy loan interest rate
specified in Section 1. This interest shall be due and payable to Us in arrears
on each Policy Anniversary. Any unpaid interest will be added to the principal
amount of the Policy loan.
All funds We receive from You will be credited to Your Policy as Premium unless
We have received written notice, in form satisfactory to Us, that the funds are
for loan repayment. Loan repayments will first reduce the outstanding balance of
the Policy loan and then accrued but unpaid interest on such loans. We will
accept repayment of any Policy loan at any time.
SVUL-2000 Page 21
<PAGE>
- --------------------------------------------------------------------------------
DEFERRAL OF PAYMENT
We will usually pay any amount due within seven days after the Valuation Date
following Our receipt of written notice in a form satisfactory to us giving rise
to such payment or, in the case of death of the last Insured to die. Due Proof
of the death of each Insured. Payment of any amount payable from the Variable
Account on death, surrender, Partial Surrender, or Policy loan may be postponed
whenever:
- - the New York Stock Exchange ("NYSE") is closed other than customary weekend
and holiday closing, or trading on the NYSE is otherwise restricted,
- - the Securities and Exchange Commission, by order, permits postponement for
the protection of Policy Owners, or
- - an emergency exists as determined by the Securities and Exchange
Commission, as a result of which disposal of securities is not reasonably
practicable, or it is not reasonably practicable to determine the value of
the assets of the Variable Account.
We reserve the right to defer payment of any portion of the Cash Surrender
Value, Policy loan or Partial Surrender payable from the Fixed Account Value for
a period not exceeding six months from the date We receive Your request.
TERMINATION
The Policy terminates on the earlier of the date We receive Your request to
surrender it for the Cash Surrender Value, the expiration date of the grace
period due to insufficient value, the date of death of the last Insured to die,
or the date of Maturity.
REINSTATEMENT
The Policy may be reinstated prior to the Maturity Date, provided the Policy has
not been surrendered for the Cash Surrender Value, and provided that:
- - You make Your reinstatement request within five years from the Policy
termination date;
- - If both Insureds are living at the time We receive Your request for
reinstatement, You will be required to provide evidence of insurability,
satisfactory to Us, with respect to each Insured;
- - If an Insured died before this Policy terminated, You will be required to
provide evidence of insurability, satisfactory to Us, for the surviving
Insured; and
- - You pay an amount sufficient to put the Policy in force.
If an Insured dies after the Policy terminates for insufficient value, You will
not be able to reinstate it.
An amount sufficient to put the Policy in force is not less than:
- - the Unpaid Policy Charges on the Policy Termination Date; plus
- - any excess of the Policy Debt over the Cash Value on the Policy Termination
Date; plus
- - three times the Monthly Cost of Insurance charges applicable at the date of
reinstatement; plus
- - three times the Monthly Face Amount Charge.
During the Protected Period shown in Section 1 an amount is sufficient to put
the Policy in force if it meets the minimum premium test.
SVUL-2000 Page 22
<PAGE>
- --------------------------------------------------------------------------------
The Specified Face Amount of the reinstated Policy cannot exceed the Specified
Face Amount at the time of termination. The Account Value on the Policy
reinstatement date will reflect:
1. the Account Value at the time of termination; plus
2. Net Premium attributable to the amount paid to reinstate the Policy; less
3. the Monthly Face Amount Charge; less the Monthly Cost of Insurance charge
applicable on the date of reinstatement; less
4. any Unpaid Policy Charges at the time of termination.
The effective date of reinstatement will be the Monthly Anniversary Day that
falls on or next follows the date We approve Your request
Any Policy Debt at the time of termination must be repaid upon the reinstatement
of the Policy or carried over to the reinstated Policy.
If the Policy was subject to surrender charges when it lapsed, the reinstated
Policy will be subject to surrender charges as if the Policy had not terminated.
The Incontestability provision of the Policy will apply to the Policy after
reinstatement as regards statements made in the application for reinstatement.
The Suicide provision of the Policy will apply to the Policy after
reinstatement. In those provisions in the reinstated Policy, "Issue Date" means
the effective date of reinstatement.
SVUL-2000 Page 23
<PAGE>
EXECUTIVE OFFICE:
One Sun Life Executive Park
Wellesley Hills, Massachusetts 02481
800-700-6554
[LOGO] SUN LIFE ASSURANCE
COMPANY OF CANADA (U.S.) HOME OFFICE:
Wilmington, Delaware
- --------------------------------------------------------------------------------
LAST SURVIVOR FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
THE AMOUNT OF THE DEATH BENEFIT OR THE DURATION OF THE DEATH BENEFIT MAY
INCREASE OR DECREASE TO REFLECT THE INVESTMENT EXPERIENCE OF THE VARIABLE
ACCOUNT, AS DESCRIBED IN SECTION 8.
THE ACCOUNT VALUE IN EACH SUB-ACCOUNT OF THE VARIABLE ACCOUNT MAY INCREASE OR
DECREASE IN ACCORDANCE WITH THE INVESTMENT EXPERIENCE OF THAT SUB-ACCOUNT OF THE
VARIABLE ACCOUNT. THERE IS NO MINIMUM GUARANTEED ACCOUNT VALUE FOR AMOUNTS IN
THE SUB-ACCOUNTS OF THE VARIABLE ACCOUNT.
UPON RECEIPT OF DUE PROOF, THE POLICY PROCEEDS ARE PAYABLE AT THE DEATH OF THE
LAST INSURED TO DIE PRIOR TO MATURITY AND WHILE THE POLICY IS IN FORCE. THE CASH
SURRENDER VALUE, IF ANY, IS PAYABLE ON MATURITY.
THE POLICY DOES NOT PARTICIPATE IN DIVIDENDS.
FLEXIBLE PREMIUMS ARE PAYABLE WHILE EITHER INSURED IS ALIVE PRIOR TO MATURITY.
- --------------------------------------------------------------------------------
SLPC XXXX
SVUL-2000
<PAGE>
EXECUTIVE OFFICE:
One Sun Life Executive Park
Wellesley Hills, Massachusetts 02481
800-700-6554
[LOGO] SUN LIFE ASSURANCE
COMPANY OF CANADA (U.S.) HOME OFICE:
Wilmington, Delaware
- -------------------------------------------------------------------------------
FOUR YEAR ADDITIONAL INSURANCE RIDER
- -------------------------------------------------------------------------------
THIS RIDER IS EFFECTIVE IF IT IS SHOWN IN SECTION 1 OF THIS POLICY AS A
SUPPLEMENTAL BENEFIT. THIS RIDER IS A PART OF THIS POLICY AND IS SUBJECT TO THE
OTHER TERMS AND CONDITIONS OF THIS POLICY.
- -------------------------------------------------------------------------------
BENEFIT
If the death of the last Insured to die occurs while this rider is in force, the
amount of added insurance provided by this rider (the additional death benefit)
will be due. We will make payment when we receive Due Proof of the death of each
Insured.
ADDITIONAL DEATH BENEFIT
The additional death benefit is shown in Section 1 of this Policy and does not
change while this rider is in force.
DURATION
This rider will terminate four years from its effective date on the rider
expiration date shown in Section 1 of this Policy, unless it terminates earlier
in accordance with the Termination provision below. It can not be renewed or
reinstated once it terminates.
SUICIDE
If either Insured, whether sane or insane, commits suicide within two years
after the effective date of this rider, the additional death benefit will not be
payable.
MONTHLY RIDER COST
The Monthly Cost of Insurance for this rider is shown in Section 1 of this
Policy.
TERMINATION
This rider will terminate on the earliest of the following dates:
- - receipt of Your written request for termination;
- - termination of this Policy;
- - surrender of this Policy;
- - the rider expiration date shown in Section 1 of this Policy;
- - the effective date of any decrease in this Policy's Specified Face Amount
that results in a Specified Face Amount that is less than this Policy's
initial Specified Face Amount, except for a decrease that is the result of
a change from death benefit option A to death benefit option B.
- ----------------------
- ----------------------
- ----------------------
- ----------------------
- ----------------------
President
- -------------------------------------------------------------------------------
SVUL-2000-EPR SLPC #
<PAGE>
EXECUTIVE OFFICE:
One Sun Life Executive Park
Wellesley Hills, Massachusetts 02481
800-700-6554
[LOGO] SUN LIFE ASSURANCE
COMPANY OF CANADA (U.S.) HOME OFICE:
Wilmington, Delaware
- -------------------------------------------------------------------------------
MATURITY EXTENSION RIDER
- -------------------------------------------------------------------------------
THIS RIDER IS EFFECTIVE IF IT IS SHOWN IN SECTION 1 OF THIS POLICY AS A
SUPPLEMENTAL BENEFIT. THIS RIDER IS A PART OF THIS POLICY AND IS SUBJECT TO THE
OTHER TERMS AND CONDITIONS OF THIS POLICY.
- -------------------------------------------------------------------------------
BENEFIT
Item 3 of this Policy's Maturity Date Extension provision described in
Section 4 is hereby deleted. This Policy's death benefit will continue to be
the death benefit as described in the Death Benefit section of this Policy.
MONTHLY RIDER COST
The Monthly Cost of Insurance for this rider (the monthly rider cost) is part of
the cost of insurance described in this Policy's Computation of Values section.
The monthly rider cost is the sum of (a) plus (b), where: (a) is the Monthly
Cost of Insurance rate for this rider multiplied by this Policy's net amount at
risk (exclusive of any increases in the net amount at risk caused by increases
in the Specified Face Amount) and divided by 1,000; and (b) is the sum of the
results obtained by multiplying the cost of insurance rate for this rider by the
amount of increase in this Policy's net amount at risk caused by each increase
in the Specified Face Amount and dividing by 1,000.
The Monthly Cost of Insurance rate applicable in (a) above is based on the
length of time this rider has been in force and each Insured's sex, age on
the Policy Date and Class. These Monthly Cost of Insurance rates are shown in
section 2 of this Policy in the applicable table of cost of insurance rates
per $1000 of net amount at risk.
The Monthly Cost of Insurance rate applicable in (b) above is based on the
length of time each increase in this policy's Specified Face Amount has been in
force and each Insured's sex, age and rating class as of the effective date of
each increase. These Monthly Cost of Insurance rates are shown in section 2 of
this Policy in the table of cost of insurance rates applicable to this rider for
each increase in this Policy's Specified Face Amount.
TERMINATION
This rider will terminate on the earlier of:
- - the date We receive Your request request that it be terminated; or
- - the date this Policy terminates.
Termination of this rider at your request will restore item 3 of this Policy's
Maturity Date Extension provision as of the date this rider terminates.
- --------------------
- --------------------
- --------------------
- --------------------
- --------------------
President
- -------------------------------------------------------------------------------
SVUL-2000-MDE SLPC #
<PAGE>
[GRAPHIC] FUTURITY VARIABLE UNIVERSAL LIFE
SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.)
P.O. BOX 81312
1 SUN LIFE EXECUTIVE PARK
WELLESLEY HILLS, MA 02481 1-800-700-6554
FUTURITY VARIABLE UNIVERSAL LIFE
INSURANCE APPLICATION
INSTRUCTIONS TO AGENT
- Use black ink, it copies better.
- Print legibly.
- Record all answers as given by the Proposed Insured(s).
- Complete the Pre-Authorized Check Plan, if applicable.
- Complete the Temporary Life Insurance Agreement, if applicable.
- Make sure all checks are made payable to Sun Life Assurance Company of
Canada (U.S.).
- Obtain all necessary signatures.
INSTRUCTIONS FOR TEMPORARY LIFE INSURANCE AGREEMENT
- Temporary Life Insurance Agreement is valid for 90 days.
- All questions on the Temporary Life Insurance Agreement must be
answered, and the Insured(s) and owner(s) signatures obtained on the
appropriate lines.
- The Application must be bound with an amount equal to the initial
premium specified in the illustration.
- The date on the check, Temporary Life Insurance Agreement, and initial
Application must all be the same. Otherwise, the money will be refunded.
- The initial Application must have a designated owner and beneficiary.
- Do not take money if the face amount exceeds $2,000,000 on a single life
application, $4,000,000 on a joint and last survivor application, or if
any of the questions on the Temporary Life Insurance Agreement are
answered "Yes."
- If money is taken on Applications exceeding $2,000,000 on a single life
application, $4,000,000 on a joint and last survivor application, or any
"Yes" answer(s) are given on the Temporary Life Insurance Agreement, all
monies paid will be refunded immediately to the contract owner.
INSTRUCTIONS FOR PRE-AUTHORIZED CHECKING
Complete Pre-Authorized Checking form.
- Obtain necessary signature(s).
- Elect a draft day of the 1st, 10th, or 20th day of the month.
- Collect initial premium, shown on page two of the illustration, along
with void check from account to be drafted.
- If backdating, collect premium for each backdated month.
<PAGE>
PRIVACY INFORMATION NOTIFICATION
Sun Life Assurance Company of Canada (U.S.) ["Sun Life (U.S.)"] provides
insurance, annuities and other financial services to our customers, and as part
of these services, we are entrusted with confidential information. Sun Life
(U.S.) takes this responsibility seriously and all of our employees and our
authorized representatives recognize the importance of maintaining
confidentiality. Sun Life (U.S.) gathers information about you to determine fair
and reasonable charges for your insurance. Once you are a policyholder, we will
need information about you to provide a variety of services, to reinstate a
policy or to evaluate requests for changes in coverage.
CONFIDENTIALITY
Life insurance companies are among the largest gatherers of information about
individuals. Sun Life (U.S.) has long been aware of the importance of guarding
the confidentiality of such information and we have internal standards and
controls governing its use. All employees must follow the procedures outlined in
our Code of Business Conduct and Business Conduct Guide. Other than as required
or permitted by law, the information gathered will not be released to anyone
without your authorization or consent.
AUTHORIZATION FOR INFORMATION
Your signed authorization will allow Sun Life (U.S.), or authorized
representatives of Sun Life (U.S.) to gather information from physicians, health
care providers, hospitals, medically related facilities, specialized clinics
dealing in substance abuse and treatment, mental health facilities, the Medical
Information Bureau, other insurance companies to which you have applied,
consumer reporting agencies, or public records such as a motor vehicle record.
Your signed authorization also allows Sun Life (U.S.) to share this information
with the Medical Information Bureau, reinsurers used by Sun Life (U.S.) and
other insurance companies to which you have applied for coverage.
THE UNDERWRITING PROCESS
Underwriting is a process by which an insurance company determines fair and
reasonable charges for the risk we are asked to consider. Underwriting may start
with the submission of a formal or informal Application which contains medical
information needed to evaluate the risks. The information obtained as part of
this process may consist of a medical examination, blood and urine tests,
special tests, medical records from health care providers or hospitals, motor
vehicle reports or investigative consumer reports. Using this information the
underwriters will further evaluate the risk based on other factors, such as
tobacco use, driving record or hazardous activities.
After the evaluation process is completed, charges and the terms of the contract
may be altered or the underwriter may find the risk to be unacceptable
altogether. The majority of contracts are issued as applied for. If we increase
your charges or do not accept the risk, you will be notified. You have the right
to request in writing the reason for this action within 30 days of our decision.
Due to the confidential nature of the decision, a written authorization and
request to our medical director will be required. We will promptly forward the
requested information. Our policy is to respond through your attending
physician, as they are familiar with your medical history and would be better
equipped to answer any questions you may have concerning the medical findings
leading to our decision. In those states that require the release of information
directly to you we will do so upon receipt of your written request. In those
states that prohibit the release of sensitive information directly to the
prospective Insured we will do so through a named physician or health
department.
PLEASE DIRECT THIS TYPE OF REQUEST TO: SUN LIFE ASSURANCE COMPANY OF CANADA
(U.S.)
ATTN. MEDICAL DIRECTOR, SUN CODE 1294
ONE SUN LIFE EXECUTIVE PARK
WELLESLEY HILLS, MA 02481
TO BE LEFT WITH PROSPECTIVE INSURED(S)
<PAGE>
LABORATORY TESTING
To assist in determining your eligibility for insurance, Sun Life (U.S.) will
request some lab testing to be completed. This could include an analysis of
blood, urine and/or saliva obtained as part of your insurance exam. The testing
is done by a licensed laboratory and the results will be sent directly to Sun
Life (U.S.)
The blood testing may include tests for HIV antibody, diabetes, kidney and liver
functions, hepatitis, and cholesterol, as well as other tests. Urine testing
will include tests for diabetes, kidney function, prescription medications,
drugs of abuse and nicotine/cotinine tests. As with the rest of your medical
information all test results are treated confidentially and shared only with
your authorization and consent, except as required by law. Some states require
the reporting of positive test for HIV and for hepatitis to the state department
of health.
INFORMATION EXCHANGE
With your signed authorization Sun Life (U.S.) and its reinsurers may make a
brief report on the information received in some Applications to the Medical
Information Bureau ("MIB, Inc.") The MIB, Inc. is a non-profit membership
organization of life insurance companies which operates an information exchange
on behalf of its members. Upon request by another insurance member company to
which you have applied for life or health insurance coverage, or to which a
claim has been submitted, and to whom you have given a signed authorization, The
MIB, Inc. will supply such a company with whatever information it may have in
its files, which may include information provided by Sun Life (U.S.)
Upon receipt of a request from you, the MIB, Inc. will arrange disclosure of any
information it may have in your file. If you question the accuracy of any
information in your file, you may contact the MIB, Inc. and seek a correction in
accordance with the procedures set forth in the Fair Credit Reporting Act. The
address of the MIB, Inc. information office is:
MEDICAL INFORMATION BUREAU, INC.
P.O. BOX 105
ESSEX STATION, BOSTON, MA 02112
TEL # (617) 426-3660
FEDERAL FAIR CREDIT REPORTING ACT
As part of our underwriting , an investigative consumer report may be requested.
This report obtained through an independent reporting service may include
information concerning your character, general reputation, personal
characteristics and mode of living. This information is obtained through
personal interviews with you, your friends, neighbors and associates. If a
report is requested in connection with your Application, you have the right to
make a written request as to the nature and scope of the report under the Fair
Credit Reporting Act. If information from a consumer report is used in our
underwriting decision, you will be notified of the source of this information.
If you choose to obtain the information, you have 60 days from notification to
request the information. Your written request should be directed to:
SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.)
ATTN: UNDERWRITING DEPT. SUN CODE 1215
ONE SUN LIFE EXECUTIVE PARK
WELLESLEY HILLS, MA 02481
MISREPRESENTATION OF FACTS
Any person who knowingly and with intent to defraud any insurance company, files
an Application for insurance or submits a change to a current policy or files a
claim, containing any materially false information or conceals any material
information may be guilty of a fraudulent act, which is a crime, and subject to
criminal and civil penalties.
TO BE LEFT WITH PROSPECTIVE INSURED(S)
<PAGE>
[GRAPHIC] FUTURITY VARIABLE UNIVERSAL LIFE
SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.)
P.O. BOX 81312
1 SUN LIFE EXECUTIVE PARK
WELLESLEY HILLS, MA 02481 1-800-700-6554
<TABLE>
<CAPTION>
<S><C>
PART ONE OF APPLICATION FOR VARIABLE UNIVERSAL LIFE INSURANCE
- -----------------------------------------------------------------------------------------------------------------
A. PROPOSED INSURED
- -----------------------------------------------------------------------------------------------------------------
NAME
----------------------------------------------------------------------------------------------------------
ADDRESS
--------------------------------------------------------------------------------------------------------
CITY STATE ZIP
-------------------------------------------- --------------------------- -----------------
SOCIAL SECURITY NUMBER - - OR TAX IDENTIFICATION NUMBER
-------- -------- -------- ------------------------------
DRIVER'S LICENSE NUMBER DRIVER'S LICENSE STATE OF ISSUE
------------------------- ---------------------------
DATE OF BIRTH / / PLACE OF BIRTH
----------- ----------- ----------- --------------------------------------------
TELEPHONE # SEX / / Male / / Female
-------------------------------------
PERMANENT U.S. RESIDENT? / / Yes / / No
U.S. CITIZEN? / / Yes / / No
OCCUPATION EMPLOYER
-------------------------------------- --------------------------------------------------
EMPLOYER'S ADDRESS
-----------------------------------------------------------
CITY STATE ZIP
-------------------------------------------- --------------------------- -----------------
- -----------------------------------------------------------------------------------------------------------------
A. SECOND PROPOSED INSURED
(COMPLETE ONLY FOR FUTURITY LAST SURVIVOR FLEXIBLE PREMIUM VARIABLE UNIVERSAL LIFE INSURANCE)
- -----------------------------------------------------------------------------------------------------------------
NAME
----------------------------------------------------------------------------------------------------------
ADDRESS
-------------------------------------------------------------------------------------------------------
CITY STATE ZIP
-------------------------------------------- --------------------------- -----------------
SOCIAL SECURITY NUMBER - - OR TAX IDENTIFICATION NUMBER
-------- -------- -------- ------------------------------
DRIVER'S LICENSE NUMBER DRIVER'S LICENSE STATE OF ISSUE
------------------------- ---------------------------
DATE OF BIRTH / / PLACE OF BIRTH / /
----------- ----------- ----------- ---------- ---------- -----------
TELEPHONE # SEX / / Male / / Female
-------------------------------------
PERMANENT U.S. RESIDENT? / / Yes / / No
U.S. CITIZEN? / / Yes / / No
<PAGE>
<CAPTION>
<S><C>
- ------------------------------------------------------ ----------------------------------------------------
B. OWNER INFORMATION C. CONTINGENT OWNER INFORMATION
- ------------------------------------------------------ ----------------------------------------------------
NAME NAME
----------------------------------------------- -----------------------------------------------
ADDRESS ADDRESS
-------------------------------------------- --------------------------------------------
CITY CITY
----------------------------------------------- -----------------------------------------------
STATE ZIP STATE ZIP
------------------- --------------------- ------------------- ---------------------
SOCIAL SECURITY RELATIONSHIP TO INSURED(S)
------------------------------------ -------------------------
DATE OF BIRTH / / SOCIAL SECURITY OR TAX IDENTIFICATION NO.
------------ ------------ ------------ ----------
PERMANENT U.S. RESIDENT? / / YES / / NO DATE OF BIRTH / /
------------ ------------ ------------
U.S. CITIZEN? / / YES / / NO PERMANENT U.S. RESIDENT? / / YES / / NO
RELATIONSHIP TO INSURED(S) U.S. CITIZEN? / / YES / / NO
-------------------------
TRUST DATE / /
------------ ------------- --------------
STATE TRUST ESTABLISHED IN
-------------------------
TAX IDENTIFICATION NO.
-----------------------------
- -------------------------------------------------------------------------------------------------------------
D. BENEFICIARY INFORMATION
- -------------------------------------------------------------------------------------------------------------
<CAPTION>
<S><C>
NAME RELATIONSHIP TO INSURED(S) SOCIAL SECURITY NUMBER
/ / PRIMARY / /
---------------------- -------------------------- ----------------------------
/ / PRIMARY / / CONTINGENT / /
---------------------- -------------------------- ----------------------------
/ / PRIMARY / / CONTINGENT / /
---------------------- -------------------------- ----------------------------
Unless otherwise specified, the proceeds will be divided equally among all primary Beneficiaries who survive
the Insured(s). If no primary Beneficiary survives the Insured(s), then the proceeds will be divided equally
among all contingent Beneficiaries. If no Beneficiary (primary or contingent) is living, then the proceeds
for a single life policy will be paid to the Insured's estate, or in the case of a joint life policy, the
estate of the last Insured to die.
- -------------------------------------------------------------------------------------------------------------
E. PLAN, AMOUNT, DEATH BENEFIT OPTION
- -------------------------------------------------------------------------------------------------------------
<CAPTION>
<S><C>
/ / FUTURITY FLEXIBLE PREMIUM / / FUTURITY LAST SURVIVOR / / OTHER
VARIABLE UNIVERSAL LIFE FLEXIBLE PREMIUM VARIABLE -----------------------
INSURANCE (SINGLE LIFE) UNIVERSAL LIFE INSURANCE -----------------------------
-----------------------------
SPECIFIED FACE AMOUNT (EXCLUDING SUPPLEMENTAL BENEFITS) $
----------------------------
/ / DEATH BENEFIT OPTION A (specified face amount) / / DEATH BENEFIT OPTION B (specified face
amount plus account value)
<PAGE>
<CAPTION>
<S><C>
- ---------------------------------------------------------------------------------------------------------------------------------
F. SUPPLEMENTAL BENEFITS
- ---------------------------------------------------------------------------------------------------------------------------------
/ / FUTURITY FLEXIBLE PREMIUM VARIABLE / / FUTURITY LAST SURVIVOR FLEXIBLE / / OTHER
UNIVERSAL LIFE INSURANCE (SINGLE LIFE) PREMIUM VARIABLE UNIVERSAL LIFE -------------------------
/ / Payment of Stipulated Amount INSURANCE -------------------------
Rider $_______________ / / Estate Preservation Rider -------------------------
/ / to age 65 / / to age 70 / / Maturity Extension Rider -------------------------
/ / Other -------------------------
/ / Accidental Death Benefit Rider -------------------------
Face Amount $ _____________
/ / Waiver of Monthly Deductions Rider
/ / Other _________________________
- ---------------------------------------------------------------------------------------------------------------------------------
G. PREMIUM PAYMENT PLAN
- ---------------------------------------------------------------------------------------------------------------------------------
PLANNED PERIODIC PREMIUM AMOUNT $____________________________________(SUBJECT TO SUN LIFE (U.S.) LIMITATIONS)
FREQUENCY: / / Monthly * / / Quarterly / / Semi-Annually / / Annually
* / / Pre-Authorized Checking Plan Form must be completed.
- ---------------------------------------------------------------------------------------------------------------------------------
H. ADVANCED PAYMENT
- ---------------------------------------------------------------------------------------------------------------------------------
/ / Amount paid with Application $_________________________(REFER TO TEMPORARY LIFE INSURANCE AGREEMENT)
- ---------------------------------------------------------------------------------------------------------------------------------
I. CORRECTIONS OR AMENDMENTS (for Home Office use only)
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
J. OTHER INSURANCE
- ---------------------------------------------------------------------------------------------------------------------------------
Is there insurance in force and/or pending on the Proposed Insured(s) with any company including Sun Life (U.S.) and its
affiliates?
/ / Yes / / No
IF YES, COMPLETE THE FOLLOWING INFORMATION:
COMPANY BUSINESS OR PERSONAL ISSUE YEAR OR PENDING TOTAL AMOUNT
PROPOSED INSURED:
/ / /
- ---------------------------- ------------------------------- ---------------------------------- ------------------------------
/ / /
- ---------------------------- ------------------------------- ---------------------------------- ------------------------------
2ND PROPOSED INSURED:
/ / /
- ---------------------------- ------------------------------- ---------------------------------- ------------------------------
/ / /
- ---------------------------- ------------------------------- ---------------------------------- ------------------------------
Has an Application for insurance on the Proposed Insured(s) life(lives) been
declined or offered on a basis other than applied for?
/ / Yes / / No IF YES, PROVIDE DETAILS:
---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
<PAGE>
<CAPTION>
<S><C>
- ---------------------------------------------------------------------------------------------------------------------------------
K. REPLACEMENT INFORMATION
- ---------------------------------------------------------------------------------------------------------------------------------
Will any existing life insurance or annuity with this or any other insurance company be replaced, changed or used as a source of
premium payment for the insurance applied for? IF YES, PROVIDE DETAILS AND NECESSARY FORMS. / / Yes / / No
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
If a replacement is involved, is it intended as an IRC Section 1035 exchange? / / Yes / / No
- ---------------------------------------------------------------------------------------------------------------------------------
L. LIFESTYLE INFORMATION ON PROPOSED INSURED(S)
- ---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
PROPOSED INSURED 2ND PROPOSED INSURED
<S> <C> <C>
1. Have you, the Proposed Insured, used tobacco (cigarettes, cigars, chewing
tobacco, etc.) or nicotine-containing products (nicorette gum, nicotine
patch, etc.) within the past 12 months?
IF YES, PROVIDE DETAILS:___________________________________ / / Yes / / No / / Yes / / No
2. Have you, the Proposed Insured, previously used tobacco or nicotine
products but have since stopped?
IF YES, PROVIDE DETAILS:___________________________________ / / Yes / / No / / Yes / / No
3. Do you, the Proposed Insured, plan to travel or reside outside of the
U.S. in the next two years?
IF YES, PROVIDE DETAILS:____________________________________ / / Yes / / No / / Yes / / No
4. Have you, the Proposed Insured, within the past two years flown as a pilot
or co-pilot in any type of aircraft?
IF YES, AN AVIATION QUESTIONNAIRE IS REQUIRED ON THE PROPOSED INSURED. / / Yes / / No / / Yes / / No
5. Have you, the Proposed Insured, within the past two years participated
in scuba diving, parachuting, hang gliding, motorized racing or any other
hazardous sport?
IF YES, ADDITIONAL INFORMATION MAY BE REQUIRED. / / Yes / / No / / Yes / / No
6. Have you, the Proposed Insured, in the last three years while operating a
motor vehicle, boat or aircraft;
a. been charged with any moving violations? / / Yes / / No / / Yes / / No
b. had an operator's license restricted, suspended or revoked? / / Yes / / No / / Yes / / No
c. been charged with operating under the influence of alcohol and/or
drugs? / / Yes / / No / / Yes / / No
IF YES, PROVIDE DETAILS:___________________________________
- ---------------------------------------------------------------------------------------------------------------------------------
M. FAMILY HISTORY OF PROPOSED INSURED(S)
- ---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
1. Family History of the Proposed Insured(s)
AGE IF LIVING AGE OF DEATH STATE OF HEALTH OR CAUSE OF DEATH
PROPOSED 2ND PROPOSED PROPOSED 2ND PROPOSED PROPOSED 2ND PROPOSED
INSURED INSURED INSURED INSURED INSURED INSURED
<S> <C> <C> <C> <C> <C> <C>
FATHER
-------------- -------------- -------------- -------------- -------------- --------------
MOTHER
-------------- -------------- -------------- -------------- -------------- --------------
BROTHER(S)
-------------- -------------- -------------- -------------- -------------- --------------
SISTER(S)
-------------- -------------- -------------- -------------- -------------- --------------
2. Has any parent, brother or sister of the Proposed Insured(s) had diabetes, heart disease or high
blood pressure? / / Yes / / No
IF YES, PROVIDE DETAILS:_______________________________________________________
<PAGE>
<CAPTION>
<S><C>
- ---------------------------------------------------------------------------------------------------------------------------------
N. HEATH INFORMATION - Complete for non-medical application of Proposed Insured(s)
- ---------------------------------------------------------------------------------------------------------------------------------
1. Proposed Insured's height: Proposed Insured's weight:
--------------------- -------------------
2nd Proposed Insured's height: 2nd Proposed Insured's weight:
-------------------- --------------------
2. Name and address of primary physician or health care provider of the Proposed Insured(s):
PROPOSED INSURED 2ND PROPOSED INSURED
Primary Health Care Provider Medical Specialist seen Primary Health Care Provider Medical Specialist seen
---------------------------- ---------------------------- ---------------------------- ----------------------------
---------------------------- ---------------------------- ---------------------------- ----------------------------
---------------------------- ---------------------------- ---------------------------- ----------------------------
Date last seen: Date last seen:
------------------------------------------- --------------------------------------------
Reason for visit: Reason for visit:
----------------------------------------- -------------------------------------
For all yes responses to questions 3-8c give diagnosis, dates, duration, names and addresses of attending physicians and
medical facilities in the space provided at the end of this section.
<CAPTION>
PROPOSED 2ND PROPOSED
INSURED INSURED
<C> <C> <C>
3. Have you, the Proposed Insured, had a change of weight of more than
10 pounds within the past? 12 months? / / Yes / / No / / Yes / / No
4. Are you, the Proposed Insured, being treated by diet, drugs or other means? / / Yes / / No / / Yes / / No
5. Have you, the Proposed Insured, EVER been diagnosed with or been treated by
a physician for:
a. high blood pressure, chest discomfort, stroke, circulatory or heart disorder? / / Yes / / No / / Yes / / No
b. diabetes, sugar in the urine, thyroid, or other glandular (endocrine) disorder? / / Yes / / No / / Yes / / No
c. kidney, bladder, urinary, reproductive organ or prostate disorder? / / Yes / / No / / Yes / / No
d. protein (albumin), blood or pus in the urine, sexually transmitted disease or
venereal disease? / / Yes / / No / / Yes / / No
e. cancer, tumor, polyp, or disorder of the skin or breast? / / Yes / / No / / Yes / / No
f. asthma, pneumonia, emphysema, or any other respiratory or lung disorder? / / Yes / / No / / Yes / / No
g. seizure, convulsion, fainting, loss of consciousness, tremor, paralysis or
other disorder of the nervous system? / / Yes / / No / / Yes / / No
h. anxiety, depression, stress, or any other psychological or emotional
condition or disorder? / / Yes / / No / / Yes / / No
i. colitis, hepatitis, ulcers, or other disorders of the stomach, liver or
digestive system? / / Yes / / No / / Yes / / No
j. arthritis, gout, back or joint pain, bone fracture, or muscle disorder? / / Yes / / No / / Yes / / No
k. anemia, bleeding, or blood disorder? / / Yes / / No / / Yes / / No
l. acquired Immune Deficiency Syndrome (AIDS) or AIDS-related complex? / / Yes / / No / / Yes / / No
m. a positive blood test for antibodies to the AIDS (Human Immunodeficiency
Virus) virus? / / Yes / / No / / Yes / / No
6. Have you, the Proposed Insured:
a. regularly used amphetamines, marijuana, cocaine, hallucinogens, heroin or
other drugs except as prescribed by a physician? / / Yes / / No / / Yes / / No
b. been treated or counseled for alcoholism or drug abuse? / / Yes / / No / / Yes / / No
c. been advised to reduce consumption of alcohol? / / Yes / / No / / Yes / / No
7. Do you, the Proposed Insured, have any health symptoms for which a physician
has not been consulted or treatment received? For example, persistent fever,
unexplained weight loss, loss of appetite, pain or swelling? / / Yes / / No / / Yes / / No
8. Other than previously stated, have you, the Proposed Insured, within the past
five years:
a. had a checkup, consultation, illness, surgery or been hospitalized? / / Yes / / No / / Yes / / No
b. had an electrocardiogram, stress or exercise test, x-ray, blood test or
other diagnostic test? / / Yes / / No / / Yes / / No
c. been advised to have, or scheduled, any diagnostic test, hospitalization
or surgery which was not completed? / / Yes / / No / / Yes / / No
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S><C>
PROPOSED INSURED - DETAILS TO AFFIRMATIVE ANSWERS TO QUESTIONS 3-8c
- ------------------------------------------------------------------------------------------------------------------------------------
QUESTION DATE DURATION DIAGNOSIS NAME AND ADDRESSES OF ATTENDING
NUMBER PHYSICIANS AND MEDICAL FACILITIES
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
2ND PROPOSED INSURED - DETAILS TO AFFIRMATIVE ANSWERS TO QUESTIONS 3-8c
- ------------------------------------------------------------------------------------------------------------------------------------
QUESTION DATE DURATION DIAGNOSIS NAME AND ADDRESSES OF ATTENDING
NUMBER PHYSICIANS AND MEDICAL FACILITIES
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S><C>
- ---------------------------------------------------------------------------------------------------------------------------------
O. PLAN USE/SUITABILITY
- ---------------------------------------------------------------------------------------------------------------------------------
This policy is intended to be used primarily for (check one):
/ / Income Replacement / / Supplemental Retirement Income / / Estate Plan / / Charitable Gift
/ / Split Dollar / / Deferred Compensation Plan / / Key Person / / Bonus Plan
/ / Business Continuity / / Other________________________
1. Total household income $___________________________ Total household net worth $___________________________
2. Has it been explained that the values and benefits provided by this policy are based on the investment experience of
a separate account and may increase or decrease depending upon the investment experience? / / Yes / / No
3. Has it been acknowledged that the policy, as applied for, is in accord with the insurance and financial objectives
which have been expressed? / / Yes / / No
- ---------------------------------------------------------------------------------------------------------------------------------
P. SIGNATURE SECTION
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
DECLARATIONS:
I/We understand and agree that:
1. The information provided in this Application (Part I, Part II Medical, if
required) is the basis for and becomes part of the insurance issued as a
result of this Application.
2. No registered representative or medical examiner has the authority to make
or modify a Sun Life (U.S.) policy, to decide whether anyone proposed for an
insurance policy is an acceptable risk or to waive any of Sun Life (U.S.)'s
rights or requirements.
3. In accepting a policy, I/we also accept any corrections and amendments made
by Sun Life (U.S.). No change in plan, amount, benefits, age at issue or
classification can be made without my/our written consent; however, Sun Life
(U.S.) may change any non-guaranteed elements of the policy at its sole
discretion.
4. Except as provided in a Temporary Life Insurance Agreement having the same
date as the Application, no insurance requested in this Application will be
effective (a) until a policy is issued during the lifetime of the Insured(s)
and (b) until Sun Life (U.S.) has received the initial premium due on the
policy requested, and (c) the statements made in this Application are still
complete and true as of the date the policy is delivered.
5. Sales illustrations are used to assist in understanding how the policy could
perform over time under a number of assumptions. I/We acknowledge that rates
of return assumed in sales illustrations are hypothetical only and are not
estimates or guarantees. The actual performance of any such policy,
including account values, cash surrender values, death benefit and duration
of coverage, will be different from what may be illustrated because the
hypothetical assumptions used in an illustration may not be indicative of
actual future performance. I/We also understand that any sales illustration
used is not a contract and will not become part of any policy issued by Sun
Life (U.S.).
6. In connection herewith, it is expressly acknowledged that the policy, as
applied for, is suitable for the insurance needs and financial objectives of
the undersigned.
I/We declare that the statements and answers in this Application are complete
and true to the best of my/our knowledge and believe they are correctly
recorded. I/We understand that any person who knowingly and with intent to
defraud any insurance company or other person files an Application for insurance
or statement of claim containing any materially false information or conceals
for the purpose of misleading, information concerning any fact material thereto
commits a fraudulent insurance act, which is a crime and subjects such person to
criminal and civil penalties.
<PAGE>
- --------------------------------------------------------------------------------
P. SIGNATURE SECTION (CONTINUED)
- --------------------------------------------------------------------------------
I/We also hereby understand and agree that values and benefits provided by the
life insurance policy applied for are based on the investment experience of a
separate account and are not guaranteed, such that:
- - THE DEATH BENEFIT AMOUNT MAY INCREASE OR DECREASE TO REFLECT THE INVESTMENT
EXPERIENCE OF THE VARIOUS SUB-ACCOUNTS.
- - THE DURATION OF COVERAGE MAY ALSO INCREASE OR DECREASE, DUE TO THE INVESTMENT
EXPERIENCE OF THESE VARIABLE SUB-ACCOUNTS.
- - THE ACCOUNT VALUE AND CASH SURRENDER VALUE MAY INCREASE OR DECREASE TO
REFLECT THE INVESMENT EXPERIENCE OF THESE VARIABLE SUB-ACCOUNTS.
- - WITH RESPECT TO THE VARIABLE SUB-ACCOUNTS, THERE IS NO GURARANTEED MINIMUM
POLICY VALUE NOR ARE ANY POLICY VALUES GUARANTEED AS TO DOLLAR AMOUNT.
I/We also acknowledge receipt of a current prospectus from Sun Life (U.S.) for
the life insurance product applied for as indicated in Section E of this
Application.
AUTHORIZATION
Sun Life (U.S.), its reinsurers, insurance support organizations, and authorized
representatives of these companies may need to collect information on a Proposed
Insured in regards to this proposed life insurance coverage. The purpose of this
authorization is to allow the companies to collect information for the express
purpose of determining eligibility for life insurance.
Often Sun Life (U.S.) is assisted in the retrieval of a prospective client's
confidential medical records. Your medical records may be obtained through a
third party vendor specializing in the retrieval of medical records, by an
independent general agent who has a relationship with Sun Life (U.S.) and who is
working with your sales representative to obtain your life insurance coverage,
and by Sun Life (U.S.) directly from your health care provider. Sun Life (U.S.)
recognizes each of these organizations as professionals who understand and will
maintain the privacy and confidentiality of the material they are handling. Sun
Life (U.S.) considers each of these organizations authorized representatives of
Sun Life (U.S.) for the purposes of obtaining these medical records.
_________ Proposed Insured ________2nd Proposed Insured By initialing here I/We,
the Proposed Insured(s), acknowledge and confirm receipt of the Pre-Notification
Disclosure form detailing the underwriting process, prenotifications relating to
investigative consumer reports, the Medical Information Bureau (MIB, Inc.), and
disclosure of my/our blood and/or bodily fluid testing.
_________Proposed Insured _________2nd Proposed Insured By initialing here I/We,
the Proposed Insured(s), authorize Sun Life (U.S.) to release the entire
underwriting file to a another insurer's underwriting department if coverage is
declined or offered on terms other than as applied for. I/we, the Proposed
Insured(s), authorize my/our broker to name the other insurer(s) and understand
there may be a fee for Sun Life (U.S.) providing this information.
I/We, the Proposed Insured(s), authorize any physician, health care provider,
hospital, or other medically related facility, specialized clinics dealing in
alcohol or substance abuse, treatment of HIV or AIDS, mental illness; insurance
company, the Medical Information Bureau, or other organization or person that
may have any records or knowledge of me/us or my/our health to give such
information to Sun Life Assurance Company of Canada (U.S.), its authorized
representatives, or its reinsurers. The information collected may be disclosed
to other insurance companies to which I/we have applied or may apply,
reinsurance companies, the Medical Information Bureau, Inc., or other persons or
organizations performing business, professional or insurance functions for Sun
Life Assurance Company of Canada (U.S.), or as otherwise legally allowed. I
acknowledge receipt of copies of the pre-notification relating to investigative
consumer reports and the MIB, Inc. (Medical Information Bureau). This
authorization is valid for twenty-six (26) months from its date. A photocopy of
this authorization shall be as valid as the original.
Signed at on this day of
----------------------------- ----------- ----------------
City/State Month/Year
X X
------------------------------------- ---------------------------------------
Signature of Proposed Insured (not Signature of 2nd Proposed Insured
required if under age 15) (not required if under age 15)
X
------------------------------------- ---------------------------------------
Signature of Owner (if other than Owner's Daytime Telephone Number
Proposed Insured)
X
------------------------------------- ---------------------------------------
Signature of Co-Owner Co-Owner's Daytime Telephone Number
X X
------------------------------------- ---------------------------------------
Signature of witness/Registered Registered Representative State
Representative Insurance License Number
<PAGE>
- --------------------------------------------------------------------------------
Q. REQUEST FOR TAXPAYER IDENTIFICATION AND CERTIFICATION
- --------------------------------------------------------------------------------
The INTERNAL REVENUE SERVICE does not require your consent to any provision of
this document, other than the certification required to avoid backup
withholding.
ITEM 1 OWNER'S TAXPAYER IDENTIFICATION NUMBER (TIN)
Enter your TIN in the appropriate box. For individuals, this is your
social security number (SSN). For sole proprietors, this is the owner's
SSN. For other entities, it is your employer identification number
(EIN).
Social Security Number - -
---------- ---------- ------------
OR
Employer Identification Number - -
-------- -------- --------
ITEM 2 FOR PAYEES EXEMPT FROM BACKUP WITHHOLDING
- -------------------------------------------------------------
Requestor's Name (OPTIONAL)
-----------------------------------------------------
Address
------------------------------------------------------------------------
City State Zip
--------------------------------- ------------------ ------------
CERTIFICATION-UNDER PENALTIES OF PERJURY, I CERTIFY THAT:
1. The number shown on this form is my correct taxpayer identification number
(or, I am waiting for a number to be issued to me), and
2. I am not subject to backup withholding because: (a) I am exempt from backup
withholding, or (b) I have not been notified by the Internal Revenue
Service that I am subject to backup withholding as a result of a failure to
report all interest or dividends, or (c) the IRS has notified me that I am
no longer subject to backup withholding.
Certification Instructions - You must cross out Item 2 above if you have been
notified by the IRS that you are currently subject to backup witholding because
of underreporting interest or dividends on your tax returns. For real estate
transactions, Item 2 does not apply. For mortgage interest paid, the acquisition
or abandonment of secured property, contributions to an individual retirement
arrangement (IRA), and generally payments other than interest and dividends, you
are not required to sign the Certification, but you must provide your correct
TIN. If you are an individual, you should use the name shown on your social
security card unless you have changed your name, in which case you should enter
the full name on the card plus your new last name. If you are a sole proprietor,
you must enter your individual name as shown on your social security card. You
may also enter your business name as it was used when you applied for your EIN.
- ------------------------------------------------- -----------------------------
Owner/Taxpayer Signature Date
<PAGE>
- --------------------------------------------------------------------------------
R. FOR REGISTERED REPRESENTATIVE USE ONLY
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S><C>
PROPOSED 2ND PROPOSED
INSURED INSURED
1. If the Application was taken on a non-medical basis, were answers from the
Proposed Insured(s) obtained personally and in your presence? / / Yes / / No / / Yes / / No
2. Does the Proposed Insured(s) appear to be in good health? / / Yes / / No / / Yes / / No
3. Are you aware of anything about the Proposed Insured(s) lifestyle, habits
or driving record that would have an adverse affect on insurability?
IF YES, PROVIDE DETAILS. / / Yes / / No / / Yes / / No
-----------------------------------------------------------------------------------------------------------------------------
4. Previous address of Insured(s) if moved within the last two years:
-----------------------------------------------------------------------------------------------------------------------------
5. Will any existing life insurance or annuity with this or any other company
be replaced, changed or used as source of premium payment for the insurance
applied for? IF YES, PROVIDE DETAILS AND NECESSARY FORMS. / / Yes / / No
----------------------------------------------------------------------------------------------------
6. Based on your reasonable inquiry about the Owner's financial situation,
insurance objectives and needs, do you believe that the policy as applied
for is suitable for the insurance needs and anticipated financial
objectives of the Owner? / / Yes / / No
7. Proposed Insured's Marital Status / / Single / / Married / / Divorced / / Separated / / Other ______________
8. Proposed Insured's Annual Household Income:
/ / $50,000 or less / / $75,001-$100,000 / / $150,001-$200,000
/ / $50,000-$75,000 / / $100,001-$150,000 / / $200,001 or more
9. 2nd Proposed Insured's Marital Status / / Single / / Married / / Divorced / / Separated / / Other ______________
10. 2nd Proposed Insured's Annual Household Income:
/ / $50,000 or less / / $75,001-$100,000 / / $150,001-$200,000
/ / $50,000-$75,000 / / $100,001-$150,000 / / $200,001 or more
11. Source of prospect:
/ / Existing Client / / Referral / / Cold Call / / Orphan / / Orphan Referral / / Direct Mail / / Client's request
12. Registered Representatives who will share commission:
Registered Representative State Insurance License Number Share % Servicing Rep? (Select One)
/ / Yes / / No
--------------------------------------- ------------------------------------ -------------
/ / Yes / / No
--------------------------------------- ------------------------------------ -------------
13. Registered Representative's Broker-Dealer Name
---------------------------------------------------------------
Address
------------------------------------------------------------------------------------------------------
City State Zip
--------------------------------------------------- ------------------ ------------------------
Phone Fax
--------------------------------------------- -----------------------------------------------------
Broker/Dealer Account
---------------------------
14. General Agent General Agent's Broker Dealer (if different):
----------------------------- ----------------------
</TABLE>
CERTIFICATION:
I, __________________________________________________________________ certify:
Print Registered Representative's Name
1. (a) that the questions contained in this Application were asked of the
Proposed Insured(s) and Owner and correctly recorded; (b) that this
Application, report and any accompanying information are complete and true
to the best of my knowledge and belief; (c) that I have given the Proposed
Insured(s) the Medical Information Bureau, Inc. (MIB, Inc.) and Consumer
Report Notices; and (d) that the provisions of the Temporary Life Insurance
Agreement, including limitations and exclusions, have been explained to the
Owner.
2. (a) that I have reviewed with the Owner all the policy features and have
given a current prospectus for the plan of insurance indicated in section E
of this Application, and (b) that information regarding the policy applied
for and the Owner's financial situation, insurance objectives and needs has
been submitted to my Broker/Dealer for suitability review.
3. that evidence as to the identities of the Proposed Insured(s) and the Owner
and source of funds has been obtained and recorded under procedures
maintained by the institution from which payments will be made.
- ---------------- -------------------------------- ----------------------------
Date State Insurance License No. Signature of Registered
Representative
<PAGE>
[GRAPHIC] FUTURITY VARIABLE UNIVERSAL LIFE
SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.)
P.O. BOX 81312
1 SUN LIFE EXECUTIVE PARK
WELLESLEY HILLS, MA 02481 1-800-700-6554
PRE-AUTHORIZED CHECKING PLAN FORM
- --------------------------------------------------------------------------------
ACCOUNT INFORMATION
- --------------------------------------------------------------------------------
Applicant's Name
----------------------------------------------------------------
Name on Bank Account Name of Bank
--------------------------- --------------------
Bank Address
-------------------------------------------------------------------
City State Zip
-------------------------------- ------------- ------------------
Bank Telephone Number
---------------------------------
Select the day of the month the premium should be drafted from your account:
/ / 1st / / 10th / / 20th
Attach a voided check to this form. Please note that this form can only be used
for the Application to which it is attached.
- --------------------------------------------------------------------------------
AUTHORIZATION
- --------------------------------------------------------------------------------
I/we authorize (a) Sun Life (U.S.) to initiate debit entries, electronically, by
paper means or by any other commercially accepted method, to my (our) checking
account designated above, and (b) my (our) bank designated above (BANK) to debit
my (our) account for such amount. This authorization is to remain in effect
until Sun Life (U.S.) and the BANK have each received written notification from
me (or either of us) of its termination in such time and manner as to afford Sun
Life (U.S.) and the BANK a reasonable opportunity to act on it. I/we agree that
Sun Life (U.S.) shall be fully protected in initiating such a debit entry, and
that the BANK shall be fully protected from any liability in the event such a
debit entry is dishonored for any reason. Sun Life (U.S.) is instructed to
forward this authorization to the BANK.
- --------------------------------------- ---------------------------------------
Payor's Signature Date
- --------------------------------------- ---------------------------------------
Joint Payor's Signature Date
- --------------------------------------- ---------------------------------------
FOR SUN LIFE (U.S.) USE ONLY
- --------------------------------------- ---------------------------------------
------------------------------------------------------------------------------
------------------------------------------------------------------------------
ROUTING/TRANSIT NUMBER
------------------------------------------------------------------------------
------------------------------------------------------------------------------
ACCOUNT NUMBER
<PAGE>
TEMPORARY LIFE INSURANCE APPLICATION
<TABLE>
<CAPTION>
<S><C>
- ---------------------------------------------------------------------------------------------------------------------------------
TEMPORARY LIFE INSURANCE APPLICATION
- ---------------------------------------------------------------------------------------------------------------------------------
PROPOSED INSURED 2ND PROPOSED INSURED
1. Within the last three years, have you, the Proposed Insured, consulted a
physician or received treatment for cancer, stroke, pneumonia, heart
attack or any disease of the heart? / / Yes / / No / / Yes / / No
2. Have you, the Proposed Insured, within the last 60 days had or been
advised to have any diagnostic test, treatment or surgery not yet performed? / / Yes / / No / / Yes / / No
3. Do you, the Proposed Insured, have health symptoms or complaints for which
a physician has not yet been consulted or treatment received? For example,
persistent fever, unexplained weight loss, loss of appetite,
pain or swelling, etc.? / / Yes / / No / / Yes / / No
IF ANY OF THE PREVIOUS QUESTIONS HAS A "YES" ANSWER, NO PAYMENT WILL BE ACCEPTED. IN ADDITION,
DO NOT DETACH RECEIPT.
I/we have read and understand the conditions of the Temporary Life Insurance Agreement and agree that the
above statements are complete and true to the best of my/our knowledge and believe that they are correctly recorded.
- ------------------------------------------------------- -------------------------------------------------------
Signature of Proposed Insured Date Signature of 2nd Proposed Insured Date
- ------------------------------------------------------- -------------------------------------------------------
Signature of Owner Date
</TABLE>
- --------------------------------------------------------------------------------
TEMPORARY LIFE INSURANCE AGREEMENT AND RECEIPT
- --------------------------------------------------------------------------------
Sun Life (U.S) will provide Temporary Life Insurance coverage on the person(s)
proposed for insurance, who have signed the Temporary Life Insurance
Application, made an advance payment and completed Part 1 of the Application for
the policy, subject to the following:
PERSON COVERED--Coverage will be provided on (a) the Proposed Insured, or (b)
the surviving Insured on a plan which insures two lives and provides a benefit
on the death of the surviving Insured.
START OF COVERAGE--Coverage begins the date you sign the Temporary Life
Insurance Application.
LIMITATIONS OF COVERAGE--No coverage will be provided if: (a) any questions
material to our assessment of the risk on the Temporary Life Insurance
Application is not answered completely and truthfully; (b) any question on the
Temporary Life Insurance Application is answered "Yes"; or (c) a Proposed
Insured, whether sane or insane, commits suicide.
AMOUNT AND LIMITATIONS ON AMOUNT--Amount of coverage will be the amount you
request in Part 1 of the Application associated with this Temporary Life
Insurance Application subject to limitations. Coverage on any person under this
and all other Sun Life (U.S.) Temporary Life Insurance Agreements will be
limited to the total coverage provided by such agreements or to $2,000,000 on a
single life application or $4,000,000 on a joint and last survivor application,
including Accidental Death Benefit, whichever is less. If more than one
Application is pending on any person proposed for insurance herein and the total
amount of insurance applied for exceeds $2,000,000 on a single life application
or $4,000,000 on a joint and last survivor application then the coverage under
this Temporary Life Insurance Agreement will be reduced to that proportion of
$2,000,000 on a single life application or $4,000,000 on a joint and last
survivor application which the amount applied for under Part 1 of the
Application associated with this Temporary Life Insurance Application bears to
the total amount applied for under all such Applications for temporary life
insurance coverage.
TERMINATION OF COVERAGE--Coverage will terminate: (a) on written notice from Sun
Life (U.S.), or (b) on the date a policy is issued and Sun Life (U.S.) has
received the balance of any premiums owed, or (c) on the refund of any advance
payment made with the Application associated with this Temporary Life Insurance
Application; or (d) on the date of your request; or (e) on the ninetieth (90th)
day following the date of the Temporary Life Insurance Application.
PAYMENT OF BENEFITS--No benefit will be paid on first death on a plan which
insures two lives while covered by this Temporary Life Insurance Agreement. If
Proposed Insureds' deaths occur simultaneously or within 30 days of each other,
the benefit will be paid to the beneficiary named in the Application associated
with this Temporary Life Insurance Application.
AMOUNT PAID--The amount paid, as listed below, will be held by Sun Life (U.S.)
while this Temporary Life Insurance coverage is provided; but this amount is not
allocated to any Sub-Account and/or Fixed Account until such date as a policy is
issued and Sun Life (U.S.) receives the balance of any premiums owed. Prior to
such date, Sun Life (U.S.) may deduct Cost of Insurance charges for the period
of this Temporary Life Insurance coverage.
Sun Life (U.S) acknowledges receipt of $__________________________ paid in
connection with application for life insurance on the life
of ________________________________________ dated this _______________ day
of ________________________
Month/year
- ---------------------------------------- --------------------------------------
Name of Owner Signature of Owner
- ---------------------------------------- --------------------------------------
Name of Registered Representative Signature of Registered Representative
SUN LIFE (U.S.) COPY Premium checks must be made payable to Sun
Life Assurance Company of Canada (U.S.)
<PAGE>
<TABLE>
<CAPTION>
<S><C>
TEMPORARY LIFE INSURANCE APPLICATION
- ---------------------------------------------------------------------------------------------------------------------------------
TEMPORARY LIFE INSURANCE APPLICATION
- ---------------------------------------------------------------------------------------------------------------------------------
PROPOSED INSURED 2ND PROPOSED INSURED
4. Within the last three years, have you, the Proposed Insured, consulted a
physician or received treatment for cancer, stroke, pneumonia, heart
attack or any disease of the heart? / / Yes / / No / / Yes / / No
5. Have you, the Proposed Insured, within the last 60 days had or been
advised to have any diagnostic test, treatment or surgery not yet
performed? / / Yes / / No / / Yes / / No
6. Do you, the Proposed Insured, have health symptoms or complaints for which
a physician has not yet been consulted or treatment received? For example,
persistent fever, unexplained weight loss, loss of appetite,
pain or swelling, etc.? / / Yes / / No / / Yes / / No
IF ANY OF THE PREVIOUS QUESTIONS HAS A "YES" ANSWER, NO PAYMENT WILL BE ACCEPTED. IN ADDITION,
DO NOT DETACH RECEIPT.
I/we have read and understand the conditions of the Temporary Life Insurance Agreement and agree that
the above statements are complete and true to the best of my/our knowledge and believe that they are correctly recorded.
- ------------------------------------------------------- -------------------------------------------------------
Signature of Proposed Insured Date Signature of 2nd Proposed Insured Date
- ------------------------------------------------------- -------------------------------------------------------
Signature of Owner Date
</TABLE>
- --------------------------------------------------------------------------------
TEMPORARY LIFE INSURANCE AGREEMENT AND RECEIPT
- --------------------------------------------------------------------------------
Sun Life (U.S) will provide Temporary Life Insurance coverage on the person(s)
proposed for insurance, who have signed the Temporary Life Insurance
Application, made an advance payment and completed Part 1 of the Application for
the policy, subject to the following:
PERSON COVERED--Coverage will be provided on (a) the Proposed Insured, or (b)
the surviving Insured on a plan which insures two lives and provides a benefit
on the death of the surviving Insured.
START OF COVERAGE--Coverage begins the date you sign the Temporary Life
Insurance Application.
LIMITATIONS OF COVERAGE--No coverage will be provided if: (a) any questions
material to our assessment of the risk on the Temporary Life Insurance
Application is not answered completely and truthfully; (b) any question on the
Temporary Life Insurance Application is answered "Yes"; or (c) a Proposed
Insured, whether sane or insane, commits suicide.
AMOUNT AND LIMITATIONS ON AMOUNT--Amount of coverage will be the amount you
request in Part 1 of the Application associated with this Temporary Life
Insurance Application subject to limitations. Coverage on any person under this
and all other Sun Life (U.S.) Temporary Life Insurance Agreements will be
limited to the total coverage provided by such agreements or to $2,000,000 on a
single life application or $4,000,000 on a joint and last survivor application,
including Accidental Death Benefit, whichever is less. If more than one
Application is pending on any person proposed for insurance herein and the total
amount of insurance applied for exceeds $2,000,000 on a single life application
or $4,000,000 on a joint and last survivor application then the coverage under
this Temporary Life Insurance Agreement will be reduced to that proportion of
$2,000,000 on a single life application or $4,000,000 on a joint and last
survivor application which the amount applied for under Part 1 of the
Application associated with this Temporary Life Insurance Application bears to
the total amount applied for under all such Applications for temporary life
insurance coverage.
TERMINATION OF COVERAGE--Coverage will terminate: (a) on written notice from
Sun Life (U.S.), or (b) on the date a policy is issued and Sun Life (U.S.) has
received the balance of any premiums owed, or (c) on the refund of any advance
payment made with the Application associated with this Temporary Life Insurance
Application; or (d) on the date of your request; or (e) on the ninetieth (90th)
day following the date of the Temporary Life Insurance Application.
PAYMENT OF BENEFITS--No benefit will be paid on first death on a plan which
insures two lives while covered by this Temporary Life Insurance Agreement. If
Proposed Insureds' deaths occur simultaneously or within 30 days of each other,
the benefit will be paid to the beneficiary named in the Application associated
with this Temporary Life Insurance Application.
AMOUNT PAID--The amount paid, as listed below, will be held by Sun Life (U.S.)
while this Temporary Life Insurance coverage is provided; but this amount is not
allocated to any Sub-Account and/or Fixed Account until such date as a policy is
issued and Sun Life (U.S.) receives the balance of any premiums owed. Prior to
such date, Sun Life (U.S.) may deduct Cost of Insurance charges for the period
of this Temporary Life Insurance coverage.
Sun Life (U.S) acknowledges receipt of $__________________________paid in
connection with for life insurance on the life of _____________________________
dated this_______________ day of ________________________
Month/year
- ---------------------------------------- --------------------------------------
Name of Owner Signature of Owner
- ---------------------------------------- --------------------------------------
Name of Registered Representative Signature of Registered Representative
CLIENT COPY Premium checks must be made payable to Sun
Life Assurance Company of Canada (U.S.)
<PAGE>
INVESTMENT DESIGNATION AND OPTIONAL PROGRAM SELECTION
INVESTMENT DESIGNATION
This form should be used to establish a model for allocation of future premium
payments and loan repayments. You may elect to design your own allocation model
(Section A.) or you may choose to have your payments allocated using one of the
professionally managed Asset Allocation Programs (Section B.) Your request will
become effective upon expiration of the Right of Return period applicable to
your contract, and the election will remain in effect until we receive
authorized instructions to change this election. Elect your allocation model
(Section A. or Section B.) and sign on the appropriate signature lines.
<TABLE>
<CAPTION>
<S><C>
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
A. Premium Payment Allocation Model
Instructions: Complete this section if you would like to design your own payment
allocation model. Please be sure to use whole percentages of no less than 5% and
check that the percentages add up to 100%.
- ---------------------------------------------------------------------------------------------------------------------------------
SUB-ACCOUNTS ___ % MFS/Sun Life High Yield Series
___ % MFS/Sun Life Massachusetts Investors Growth Stock Series
AIM VARIABLE INSURANCE FUNDS, INC. ___ % MFS/Sun Life Massachusetts Investors Trust Series
___ % AIM V.I. Capital Appreciation Fund ___ % MFS/Sun Life New Discovery Series
___ % AIM V.I. Growth Fund ___ % MFS/Sun Life Total Return Series
___ % AIM V.I. Growth and Income Fund ___ % MFS/Sun Life Utilities Series
___ % AIM V.I. International Equity Fund
OCC ACCUMULATION TRUST
THE ALGER AMERICAN FUND ___ % OCC Accumulation Trust Equity Portfolio
___ % Alger American Growth Portfolio ___ % OCC Accumulation Trust Managed Portfolio
___ % Alger American Income and Growth Portfolio ___ % OCC Accumulation Trust Mid Cap Portfolio
___ % Alger American Small Capitalization Portfolio ___ % OCC Accumulation Trust Small Cap Portfolio
GOLDMAN SACHS VARIABLE INSURANCE TRUST SUN CAPITAL ADVISERS, INC.
___ % Goldman Sachs V.I.T. CORE Large Cap Growth Fund ___ % Sun Capital Money Market Fund
___ % Goldman Sachs V.I.T. CORE Small Cap Equity Fund ___ % Sun Capital Investment Grade Bond Fund
___ % Goldman Sachs V.I.T. CORE U.S. Equity Fund ___ % Sun Capital Real Estate Fund
___ % Goldman Sachs V.I.T. Growth and Income Fund
___ % Goldman Sachs V.I.T. International Equity Fund SUN CAPITAL ADVISERS, INC. (WELLINGTON MANAGEMENT SUBADVISED
FUNDS)
MFS/SUN LIFE SERIES TRUST ___ % Sun Capital Blue Chip Mid Cap Fund
___ % MFS/Sun Life Capital Appreciation Series ___ % Sun Capital Investors Foundation Fund
___ % MFS/Sun Life Emerging Growth Series ___ % Sun Capital Select Equity Fund
___ % MFS/Sun Life Government Securities Series
SUN LIFE OF CANADA (U.S.) FIXED ACCOUNT GUARANTEE OPTION
___ % Fixed Account
- ---------------------------------------------------------------------------------------------------------------------------------
Please establish the payment model I have indicated above. I understand that all
payments made to my policy will be applied using this Premium Payment Allocation
Model unless I, or another authorized party, provide clear instruction (as
determined by the Home Office) to apply a payment/all future payments
differently.
Owner/Authorized Signature: Date:
--------------------------------------------------- -----------------------
Owner/Authorized Signature: Date:
--------------------------------------------------- -----------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
B. Asset Allocation Program Election
Complete this section if you would like to participate in one of the three
professionally managed programs available to you.
1. Select ONLY ONE of the following programs:
/ / Conservative Asset Allocation Model
/ / Moderate Asset Allocation Model
/ / Aggressive Asset Allocation Model
NOTE: DO NOT complete Section A, Premium Payment Allocation Model.
Please make the changes indicated above to my policy. I understand that
participation in this program involves periodic exchanges of my account value to
ensure they reflect the model I have chosen, and that the Asset Allocation
Committee, upon review each quarter, may make changes to the model I have
elected. I further understand that if I make a request either to (1) allocate a
payment using different allocations, or (2) transfer funds among the
sub-accounts in a way that is not consistent with my Asset Allocation Program,
that my participation in this program will be terminated.
Owner Signature: Date:
---------------------------------------- ----------------
Owner Signature: Date:
---------------------------------------- ----------------
<PAGE>
SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.)
DESCRIPTION OF ISSUANCE, TRANSFER
AND REDEMPTION PROCEDURES FOR
FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE INSURANCE POLICIES
Pursuant to Rule *6e-3(T) (b) (iii)
This document sets forth the administrative procedures that will be followed
by Sun Life Assurance Company of Canada (U.S.). (the "Company" or "we"), in
connection with the issuance of a Futurity Survivorship Variable Universal
Life Insurance Policy, (the "Policy"), the transfer of assets held
thereunder, and the redemption by Owners of their interests in such Policy.
I. PROCEDURES RELATING TO ISSUANCE AND PURCHASE OF POLICIES
A. Application, Underwriting and Initial Premium Processing
To purchase a Policy, an application must be submitted to our Principal
Office so that we may follow certain underwriting procedures designed to
determine the insurability of the proposed Insureds. We offer the Policy on a
regular (medical) underwriting basis and may require medical examinations and
further information before the proposed application is approved. Proposed
Insureds must be acceptable risks based on our underwriting limits and
standards. A policy cannot be issued until the underwriting process has been
completed to our satisfaction and we reserve the right to reject an
application that does not meet our underwriting requirements or to "rate" an
Insured as a substandard risk, which will result in the charging of increased
Monthly Cost of Insurance charges. The company may issue a policy where one
of the Insured would normally be uninsurable, provided the combination of the
Insureds meets certain requirements.
The applicant must specify certain information in the application including
the Specified Face Amount, the death benefit option and supplemental benefits.
The Specified Face Amount must not be below the Minimum Specified Face
Amount, which is $250,000.
The Policy must satisfy the Guideline Premium compliance test in order to
qualify as life insurance under section 7702 of the Internal Revenue Code.
Under the Guideline Premium compliance test the premiums paid may not exceed
the guideline premiums specified by section 7702 of the Internal Revenue
Code. In addition, the Policy's death benefit may not be less than the
Account Value multiplied by the applicable Death Benefit Percentage specified
by section 7702 of the Internal Revenue Code.
The Policy provides the following two death benefit options:
Option A - Specified Face Amount. The death benefit is the greater of the
Specified Face Amount or the Account Value multiplied by the applicable Death
Benefit Percentage.
Option B - Specified Face Amount plus Account Value. The death benefit is the
greater of the Specified Face Amount plus the Account Value, or the Account
Value multiplied by the applicable Death Benefit Percentage.
FSVUL-2000 1 January 2000
<PAGE>
SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.)
DESCRIPTION OF ISSUANCE, TRANSFER
AND REDEMPTION PROCEDURES FOR
FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE INSURANCE POLICIES
Pursuant to Rule *6e-3(T) (b) (iii)
Prior to the approval of the application, any advance payments received are
not premiums for the policy and will be held in the Company's General
Account. The Company may offer a Temporary Insurance Agreement to the owner
on the lives of the Insureds (due on the death of the last living Insured)
subject to our conditions and limitations. The Temporary Insurance Agreement
provides coverage up to 90 days. However, this coverage will not extend
beyond the effective date of the Policy if earlier than the end of the 90-day
period. Coverage will not exceed the lesser of the specified face amount
being applied for; and $2,000,000. If the Temporary Insurance Agreement
terminates prior to the issuance of the Policy the total amount of the
advance payment will be refunded. Upon approval of the application, the
Policy on the lives of the Insureds will be issued. The initial premium is
due and payable as of the Issue Date. If a Temporary Insurance Agreement is
in effect when the Policy is issued, any such advance payment will be
credited toward the initial premium for the Policy that has been issued. The
effective date of coverage for the Policy will be the date the initial
premium is received at our Principal Office. If an application is not
approved, any advance payment received for a Temporary Insurance Agreement
will be returned promptly.
During the Free Look period for a Policy, the Company will allocate the net
premiums received to the Sun Capital Money Market Fund or the fixed account
investment option. Upon expiration of this period, the account value, as so
allocated, will be transferred, as applicable to the sub-accounts of the
variable account and to the sub-account that invests in the Fixed Account in
accordance with the Owner's allocation instructions.
B. PREMIUM PAYMENTS
The initial premium is an amount specified for each Policy based on the
requested Specified Face Amount, issue age, sex, classes of each of the
Insureds, and any supplemental benefits requested. Coverage under the Policy
does not exist until we have received the initial premium at the Company's
Principal Office. The initial premium for the Policy will not be the same for
all owners of policies.
All premium payments are payable to the Company, at our Principal Office. The
Owner is not required to make premium payments according to a fixed schedule,
but may select a planned periodic premium amount and corresponding billing
period, subject to our Premium limits. The billing period must be annual,
semi-annual, quarterly or by pre-authorized check on a monthly basis. We will
send a billing notice for the annual, semi-annual and quarterly planned
periodic premium at the beginning of each billing period. However, the Owner
is not required to pay the planned periodic premium; he or she may increase
or decrease premium payments, subject to our limits, and may skip a planned
premium payment or make unscheduled payments. If premium payments are being
made by pre-authorized check, skipping payments may result in a billing
period change to quarterly. The Owner may change the planned premium amount
or billing
FSVUL-2000 2 January 2000
<PAGE>
SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.)
DESCRIPTION OF ISSUANCE, TRANSFER
AND REDEMPTION PROCEDURES FOR
FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE INSURANCE POLICIES
Pursuant to Rule *6e-3(T) (b) (iii)
period, subject to our approval. The payment of a planned periodic premium
may not be sufficient to keep the Policy in force, and the Owner may need to
change the planned periodic premium payment amount and/or the corresponding
billing period or make additional payments in order to prevent the
termination of the Policy.
The Company reserves the right to limit the number of premium payments we
accept on an annual basis on each Policy. No premium payment may be less than
$50 without our consent, although we will accept a smaller premium payment if
it is necessary to keep a Policy in force. We reserve the right not to accept
a premium payment that causes the death benefit to increase by an amount that
exceeds the premium received; evidence of the Insureds' insurability
satisfactory to us may be required before we accept such a premium.
The Company will not accept premium payments, which would cause the Policy to
fail to qualify as life insurance under section 7702 of the Internal Revenue
Code, or any successor provision. The maximum premium limit for each policy
year is the largest premium that can be paid such that the sum of all
premiums paid will not exceed the guideline premium limitations of section
7702 of the Internal Revenue Code, or any successor provision. If a premium
is made in excess of these limits, we will accept only that portion of the
premium within those limits, and will refund the remainder. The portion
accepted will be applied in accordance with the allocation percentages.
A Policy will remain in force as long as the Cash Surrender Value is
sufficient to cover the Policy deductions. However, during the first five
policy years the Policy will remain in force if the sum of premiums paid less
any partial surrender less the policy debt is equal or greater than the
cumulative minimum monthly premiums. Thus, the amount of a premium, if any,
that must be paid to keep the Policy in force depends upon the Cash Surrender
Value of the Policy and the Minimum Monthly Premium applicable to each policy
month of the Policy. The Account Value, and therefore the Cash Surrender
Value, depends on such factors as the premiums paid, the investment
experience of the sub-accounts, the interest rate credited to the Fixed
Account, the monthly cost of insurance, the monthly face amount charge and
the mortality and expense risk charge. The rate utilized in computing the
cost of insurance will not be the same for each pair of Insureds. The reason
for this is that the principle of pooling and distribution of mortality risks
is based on the assumption that each pair of Insureds incurs an insurance
rate commensurate with the mortality risk which is actuarially determined
based on such factors as issue age, attained age, sex, and risk class.
Accordingly, while not all pairs of Insureds will be subject to the same cost
of insurance rate, there will be a single rate for all pairs of Insureds in a
given actuarial category.
Current cost of insurance rates will be determined by the Company based upon
expectations of future experience with respect to mortality costs,
persistency, interest rates, expenses and taxes. The costs of insurance rates
are guaranteed not to exceed rates based on the 1980 CSO Mortality
FSVUL-2000 3 January 2000
<PAGE>
SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.)
DESCRIPTION OF ISSUANCE, TRANSFER
AND REDEMPTION PROCEDURES FOR
FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE INSURANCE POLICIES
Pursuant to Rule *6e-3(T) (b) (iii)
Tables. The Policies will be offered and sold pursuant to established
standards in accordance with state insurance laws.
The interest rate credited to the Fixed Account Value is guaranteed to be
3.00% annual effective rate. Interest in excess of the guaranteed rate may be
applied in the calculation of the Fixed Account Value at such increased rates
and in such manner as we may determine, based on our expectations of future
interest, mortality costs, persistency, expenses and taxes.
II. REDEMPTION PROCEDURES: SURRENDER AND RELATED TRANSACTIONS
Set forth below is a summary of the principal policy provisions and
administrative procedures which might be deemed to constitute, either
directly or indirectly, a redemption transaction. The summary shows that
because of the insurance nature of the Policies, the procedures involved
necessarily differ in certain significant respects from the redemption
procedures for mutual funds and contractual plans.
A. SURRENDERS AND PARTIAL SURRENDERS
The Owner may surrender the Policy for the Cash Surrender Value at any time
by sending a written request, in a form satisfactory to us, to our Principal
Office. The amount available for surrender is the Cash Surrender Value at the
end of the valuation period during which the surrender request is received in
our Principal Office. The Cash Surrender Value is the Account Value,
decreased by any Surrender Charges, and decreased by any Policy Debt.
Coverage under a Policy terminates as of the date of surrender.
The Owner may make a Partial Surrender of the Policy once each policy year
after the first policy year. The maximum Partial Surrender in the first 10
policy years is 20% of the Cash Surrender Value, and after year 10 it is the
amount of the Cash Surrender Value. The minimum Partial Surrender is $200.
The Specified Face Amount will be reduced to the extent necessary so that the
death benefit less the Account Value immediately after the Partial Surrender
does not exceed the death benefit less the Account Value immediately before
the Partial Surrender. The Specified Face Amount remaining in force after a
Partial Surrender must not be lower than the Minimum Specified Face Amount
which is generally $250,000.
The Owner may allocate the Partial Surrender amount to the sub-accounts of
the Variable Account and the Fixed Account. If the allocation is not
specified, then the Partial Surrender will be allocated in proportion to the
amounts in the Sub-Account and the Fixed Account in excess of the Policy Debt
bear to the Account Value in excess of the Policy Debt.
Amounts payable from the Variable Account upon a Surrender or Partial
Surrender will ordinarily be paid within seven days of receipt of a written
request in a form satisfactory to us, at
FSVUL-2000 4 January 2000
<PAGE>
SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.)
DESCRIPTION OF ISSUANCE, TRANSFER
AND REDEMPTION PROCEDURES FOR
FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE INSURANCE POLICIES
Pursuant to Rule *6e-3(T) (b) (iii)
our Principal Office, and any additional requirements deemed necessary by
the state and federal governments.
B. CHANGES IN SPECIFIED FACE AMOUNT
After the end of the first policy year, the Owner may change the Specified
Face Amount. The Owner must send a written request in a form satisfactory to
us, for a change to our Principal Office. The effective date of coverage for
changes in Specified Face Amount is:
- -- For any increase in coverage, the next policy anniversary follows
the date we approve the supplemental application for such
increase, and
- -- For any decrease in coverage, the Monthly Anniversary Day that
falls on or next follows the date we receive the request.
The Specified Face Amount may not decrease to less than the Minimum Specified
Face Amount, which is $250,000 and is specified in the Policy. A decrease is
the Specified Face Amount will cause a Partial Surrender Charge to be
deducted form the Account Value. A decrease in the Specified Face Amount will
be applied to the initial Specified Face Amount and to each increase in
Specified Face Amount in the following order:
- -- First, to the most recent increase;
- -- Second, to the next most recent increase in reverse chronological
order; and
- -- Finally, to the initial Specified Face Amount.
An increase in the Specified Face Amount is subject to our underwriting rules
in effect at the time of the increase. The Owner may be required to submit
evidence of the Insureds' insurability satisfactory to us.
C. CHANGES IN DEATH BENEFIT OPTION
After the end of the first policy year the Owner may change the Death Benefit
Option on the Policy. Requests for a change in death benefit option must be
made in writing, in a form satisfactory to us, and submitted to our Principal
Office. Changes in the death benefit option are subject to our underwriting
rules in effect at the time of the change. The effective date of the change
will be the Policy Anniversary on or next following the date of receipt of
the request.
If the Death Benefit Option change is from Option A to Option B, the
Specified Face Amount will be reduced by the Account Value. If the Death
Benefit Option change is from Option B to Option A, the Specified Face Amount
will be increased by the Account Value. In both cases, the amount of the
Death Benefit at the time of change will not be altered, but the change in
Death Benefit Option will affect the amount of the Death Benefit from that
point on.
FSVUL-2000 5 January 2000
<PAGE>
SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.)
DESCRIPTION OF ISSUANCE, TRANSFER
AND REDEMPTION PROCEDURES FOR
FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE INSURANCE POLICIES
Pursuant to Rule *6e-3(T) (b) (iii)
D. DEATH CLAIMS
While the Policy remains in force, the Company ordinarily will pay a death
benefit to the named beneficiary of record, subject to the rights of any
assignment, in accordance with the designated death benefit option within
seven days after receipt in its Principal Office of due proof of death of
both Insureds. The policy pays the death benefit upon the death of the last
Insured to die. Payment of death benefits may be postponed or delayed under
certain circumstances. By example, an investigation may be warranted to
verify the validity of the claim, to resolve unclear beneficiary
arrangements, or to investigate a death occurring during a suicide or
contestability period. Also, the New York Stock Exchange being closed for
reasons other than customary weekend and holiday closings may impact the
ability to pay a death benefit within seven days.
Unless otherwise specified, the proceeds will be divided equally among all
primary Beneficiaries who survive the Insureds. If no primary Beneficiary
survives the Insureds, then the proceeds will be divided equally among all
contingent Beneficiaries. If no Beneficiary (primary or contingent) is
living, then the proceeds will be paid to the estate of the last Insured to
die.
The amount of the death benefit is determined at the end of the valuation
period on the date of death of the last Insured to die. The amount of the
death benefit will never be less than the Specified Face Amount of the Policy
prior to the maturity date of the policy. The Policy Proceeds, paid to the
beneficiary, equal the death benefit decreased by any Policy Debt.
If either or both Insureds is(are) living on the date of maturity and the
maturity date is not extended, the Company will then pay in a lump sum the
cash surrender value of the Policy.
The policy provides for an extension of the maturity date upon request by the
Owner. The death benefit beyond the original maturity date will be the
Account Value.
The Company offers a Maturity Extension Rider which may be elected by the
Owner at the issue of the Policy. The Maturity Extension Rider has monthly
cost of insurance charges. The Maturity Extension Rider extends the maturity
date beyond age 100 of the younger Insured. Under the Maturity Extension
Rider the death benefit beyond age 100 of the younger Insured is the full
death benefit, based on Option A or Option B as applicable.
E. POLICY LOANS
The Owner may request a Policy loan of up to 90% of the Cash Value less any
outstanding debt on the date the Policy loan is made. Any amount due to an
Owner under a loan ordinarily will be paid within seven days after the
Company receives a written request in a form satisfactory to us,
FSVUL-2000 6 January 2000
<PAGE>
SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.)
DESCRIPTION OF ISSUANCE, TRANSFER
AND REDEMPTION PROCEDURES FOR
FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE INSURANCE POLICIES
Pursuant to Rule *6e-3(T) (b) (iii)
at our Principal Office, although payments may be delayed or postponed under
some circumstances.
The Owner may allocate the Policy loan among the Sub-Accounts and the Fixed
Account Value. If the Owner does not specify the allocation, then the Policy
loan shall be allocated among the Sub-Accounts in the proportion the amounts
in the Sub-Account and the Fixed Account Value in excess of the Policy Loan
bear to the Account Value in excess of the Policy loan. The Policy loan
amounts allocated to the sub-accounts will be transferred to the Fixed
Account.
The outstanding loan amounts will earn interest at an annual rate of 3.00%.
Interest on the Policy loan will accrue at the policy loan interest rate of
4.00% annual in policy years one through ten and 3.00% annual thereafter.
This interest shall be due and payable to us in arrears on each Policy
Anniversary. Any unpaid interest will be added to the principal loan amount
as an additional Policy loan and will bear interest in the same manner as the
prior policy loan.
All funds we receive from the Owner will be credited to the Policy as Premium
unless we have received written notice, in a form satisfactory to us, at our
Principal Office, that the funds are for loan repayment. Loan repayments will
first reduce the outstanding balance of the Policy loan and then accrued but
unpaid interest on such loans. We will accept repayment of any Policy loan at
any time before Maturity.
III. TRANSFERS
Subject to the Company's rules as they may exist from time to time and to any
limits that may be imposed by the Funds, including those set forth in the
Policy, the Owner may at any time transfer to another sub-account all or a
portion of the Account Value allocated to a sub-account. The Owner may also
transfer amounts to or from the Fixed Account.
All requests for transfers must be made to our Principal Office. The Company
will make transfers pursuant to a valid request, made in writing or by
telephone, received at our Principal Office. Telephone requests will be
honored only if the Company has a properly completed and signed telephone
authorization form for the Owner on file. The Company and its agents and
affiliates will not be responsible for losses resulting from acting upon
telephone requests reasonably believed to be genuine. The Company will use
reasonable procedures to confirm that instructions communicated by telephone
are genuine. The procedures followed for transactions initiated by telephone
include requirements that the Owner (or other Owner-authorized party)
identify himself or herself by name and identify a personal identification
number. For additional protection, all changes in allocation percentages by
telephone may be recorded.
Transfers may be requested by indicating the transfer of either a specified
dollar amount or a specified percentage of the sub-account's value from which
the transfer will be made. If a
FSVUL-2000 7 January 2000
<PAGE>
SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.)
DESCRIPTION OF ISSUANCE, TRANSFER
AND REDEMPTION PROCEDURES FOR
FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE INSURANCE POLICIES
Pursuant to Rule *6e-3(T) (b) (iii)
transfer is based on a specified percentage of the sub-account's value, that
percentage will be converted into a request for the transfer of a specified
dollar amount based on application of the specified percentage to the
sub-account at the end of the valuation period during which the request was
made.
These transfer privileges are subject to the Company's consent. The Company
reserves the right to impose limitations on transfers, including but not
limited to: (1) the minimum amount that may be transferred, and (2) the
minimum amount that may remain in a sub-account following a transfer from
that sub-account. In addition, transfer privileges are subject to any
restrictions that may be imposed by the Funds.
IV. REFUNDS
A. FREE LOOK PERIOD
The Policy has a "Right to Return" provision which gives certain cancellation
rights. If the Owner is not satisfied with the Policy, it may be returned by
delivering or mailing it to our Principal Office or to the sales
representative from whom the Policy was purchased within 10 days from the
date of receipt ("Right of Return Period.") A longer period applies in some
states.
A Policy returned under this provision will be deemed void. The Owner will
receive a refund equal to the sum of all premium payments made, with no
adjustment for investment experience, if required by applicable state law;
otherwise, the refund will equal the sum of:
(1) the difference between any premium payments made, including
fees and charges, and the total of amounts allocated to the
Variable Account,
(2) the value of the amounts allocated to the Variable Account on the
date the cancellation request is received by the Company or its
sales representative from whom the Policy was purchased; less
(3) any fees or charges imposed on amounts allocated to the
Variable Account.
B. SUICIDE
In most states, if the last Insured to die, whether sane or insane, commits
suicide within two years after the Issue date, the Company will not pay any
part of the Policy Proceeds. The Company's obligation will be limited to the
refund of the premiums paid, less the amount of any Policy Debt and any
Partial Surrenders.
INCONTESTABILITY CLAUSE
All statements made in the Application or in a supplemental application are
representations and not warranties. The Company will rely on these statements
when approving the issuance,
FSVUL-2000 8 January 2000
<PAGE>
SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.)
DESCRIPTION OF ISSUANCE, TRANSFER
AND REDEMPTION PROCEDURES FOR
FUTURITY SURVIVORSHIP VARIABLE UNIVERSAL LIFE INSURANCE POLICIES
Pursuant to Rule *6e-3(T) (b) (iii)
increase in face amount, increase in Death Benefit over Premium paid, or
change in Death Benefit Option of the Policy. The Company in defense of a
claim can use no statement unless the statement was made in the Application
or in a supplemental application. In the absence of fraud, after the Policy
has been in force during the lifetime of the Insureds for a period of two
years from its Issue Date, the Company cannot contest it except for
non-payment of Premiums in accordance with the Insufficient Value provision.
However, any increase in the face amount, which is effective after the Issue
Date, will be incontestable only after such increase has been in force during
the lifetime of the Insureds for two years from the Effective Date of
Coverage of such increase. Any increase in Death Benefit over Premium paid or
increases in Death Benefit due to a Death Benefit Option change will be
incontestable only after such increase has been in force during the lifetime
of the Insureds for two years from the date of the increase.
D. MISSTATEMENT OF AGE OR SEX
If the age or sex of either Insured is stated incorrectly in the Application,
the amounts payable by the Company will be adjusted as follows:
-- Misstatement discovered at death: The Death Benefit will be
recalculated to that which would be purchased by the most recently
charged Monthly Cost of Insurance Rate for the correct age or
sex of each Insured.
-- Misstatement discovered prior to death: The Account Value will
be recalculated from the Policy Effective Date using the
Monthly Cost of Insurance Rates based on the correct age or sex
of each Insured.
FSVUL-2000 9 January 2000
<PAGE>
[LOGO] One Sun Life Executive Park
Wellesley Hills, MA 02481
Tel: (781) 237-6030
January 5, 2000
Gentlemen:
In my capacity as Product Officer for Sun Life Assurance Company of Canada, I
have provided actuarial advice concerning: (a) the preparation of a
registration statement for Sun Life of Canada (U.S.) Variable Account I filed
on Form S-6 with the Securities and Exchange Commission under the Securities
Act of 1933 (the "Registration Statement") regarding the offer and sale of
last survivor flexible premium combination fixed and variable life insurance
policies (the "Policies"); and (b) the preparation of policy forms for the
Policies described in the Registration Statement.
It is my professional opinion that:
The illustrations of cash surrender values, account values, death benefits
and accumulated premiums in the Appendix C to the prospectus contained in the
Registration Statement, are based on the assumptions stated in the
illustrations, and are consistent with the provisions of the Policies. The
rate structure of the Policies has not been designed so as to make the
relationship between premiums and benefits, as shown in the illustrations,
appear to be more favorable to prospective purchasers of Policies in the rate
class illustrated than to prospective purchasers of Policies for other rate
classes.
I hereby consent to the filing of this opinion as an exhibit to the
Registration Statement and to the use of my name under the heading "Experts"
in the prospectus.
Very truly yours,
/s/ Georges Rouhart
Georges Rouhart, FSA, MAAA
Product Officer
<PAGE>
SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.)
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that M. Colyer Crum, whose signature
appears below, constitutes and appoints Edward M. Shea, Sandra DaDalt, Ellen B.
King, Peter F. Demuth, C. James Prieur, and James A. McNulty, III, and each of
them, his attorneys-in-fact, each with the power of substitution, for him in any
and all capacities, to sign:
(i) the Registration Statements on Form S-6 of Sun Life Assurance
Company of Canada (U.S.) Variable Account I, to be filed with the
Securities and Exchange Commission on or about January 6, 2000,
and any amendments thereto.
(ii) any Registration Statements under the Securities Act of 1933 and
the Investment Company Act of 1940 of any of Sun Life of Canada
(U.S.) Variable Account C, Sun Life of Canada (U.S.) Variable
Account D, Sun Life of Canada (U.S.) Variable Account F, Sun Life
of Canada (U.S.) Variable Account G, and Sun Life of Canada (U.S.)
Variable Account I or any other variable account established by
Sun Life Assurance Company of Canada (U.S.) (the "Company"), and
(iii)any and all instruments, including applications for exemptions
from such Acts, which said attorneys-in-fact deem necessary and
advisable to enable the Company or any variable account of the
Company to comply with the Securities Act of 1933, as amended, the
Investment Company Act of 1940, as amended, and the rules and
regulations and requirements of the Securities and Exchange
Commission in respect thereof;
and to file the same, with exhibits thereto, and other amendments in connection
therewith with the Securities and Exchange Commission, hereby ratifying and
confirming all that each of said attorneys-in-fact or his substitute or
substitutes may do or cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his hand on the
date shown.
/s/ M. Colyer Crum
-------------------------
M. Colyer Crum
Dated: December 28, 1999
<PAGE>
SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.)
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that Gregory W. Gee, whose signature
appears below, constitutes and appoints Edward M. Shea, Sandra DaDalt, Ellen B.
King, Peter F. Demuth, C. James Prieur, and James A. McNulty, III, and each of
them, his attorneys-in-fact, each with the power of substitution, for him in any
and all capacities, to sign:
(i) the Registration Statements on Form S-6 of Sun Life Assurance
Company of Canada (U.S.) Variable Account I, to be filed with the
Securities and Exchange Commission on or about January 6, 2000,
and any amendments thereto.
(ii) any Registration Statements under the Securities Act of 1933 and
the Investment Company Act of 1940 of any of Sun Life of Canada
(U.S.) Variable Account C, Sun Life of Canada (U.S.) Variable
Account D, Sun Life of Canada (U.S.) Variable Account F, Sun Life
of Canada (U.S.) Variable Account G, and Sun Life of Canada (U.S.)
Variable Account I or any other variable account established by
Sun Life Assurance Company of Canada (U.S.) (the "Company"), and
(iii)any and all instruments, including applications for exemptions
from such Acts, which said attorneys-in-fact deem necessary and
advisable to enable the Company or any variable account of the
Company to comply with the Securities Act of 1933, as amended, the
Investment Company Act of 1940, as amended, and the rules and
regulations and requirements of the Securities and Exchange
Commission in respect thereof;
and to file the same, with exhibits thereto, and other amendments in connection
therewith with the Securities and Exchange Commission, hereby ratifying and
confirming all that each of said attorneys-in-fact or his substitute or
substitutes may do or cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his hand on the
date shown.
/s/ Gregory W. Gee
-------------------------
Gregory W. Gee
Dated: January 4, 2000
<PAGE>
SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.)
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that Angus A. MacNaughton, whose signature
appears below, constitutes and appoints Edward M. Shea, Sandra DaDalt, Ellen B.
King, Peter F. Demuth, C. James Prieur, and James A. McNulty, III, and each of
them, his attorneys-in-fact, each with the power of substitution, for him in any
and all capacities, to sign:
(i) the Registration Statements on Form S-6 of Sun Life Assurance
Company of Canada (U.S.) Variable Account I, to be filed with the
Securities and Exchange Commission on or about January 6, 2000,
and any amendments thereto.
(ii) any Registration Statements under the Securities Act of 1933 and
the Investment Company Act of 1940 of any of Sun Life of Canada
(U.S.) Variable Account C, Sun Life of Canada (U.S.) Variable
Account D, Sun Life of Canada (U.S.) Variable Account F, Sun Life
of Canada (U.S.) Variable Account G, and Sun Life of Canada (U.S.)
Variable Account I or any other variable account established by
Sun Life Assurance Company of Canada (U.S.) (the "Company"), and
(iii)any and all instruments, including applications for exemptions
from such Acts, which said attorneys-in-fact deem necessary and
advisable to enable the Company or any variable account of the
Company to comply with the Securities Act of 1933, as amended, the
Investment Company Act of 1940, as amended, and the rules and
regulations and requirements of the Securities and Exchange
Commission in respect thereof;
and to file the same, with exhibits thereto, and other amendments in connection
therewith with the Securities and Exchange Commission, hereby ratifying and
confirming all that each of said attorneys-in-fact or his substitute or
substitutes may do or cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his hand on the
date shown.
/s/ Angus A. MacNaughton
-------------------------
Angus A. MacNaughton
Dated: January 3, 2000
<PAGE>
SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.)
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that James A. McNulty, III, whose signature
appears below, constitutes and appoints Edward M. Shea, Sandra DaDalt, Ellen B.
King, Peter F. Demuth, and C. James Prieur, and each of them, his
attorneys-in-fact, each with the power of substitution, for him in any and all
capacities, to sign:
(i) the Registration Statements on Form S-6 of Sun Life Assurance
Company of Canada (U.S.) Variable Account I, to be filed with the
Securities and Exchange Commission on or about January 6, 2000,
and any amendments thereto.
(ii) any Registration Statements under the Securities Act of 1933 and
the Investment Company Act of 1940 of any of Sun Life of Canada
(U.S.) Variable Account C, Sun Life of Canada (U.S.) Variable
Account D, Sun Life of Canada (U.S.) Variable Account F, Sun Life
of Canada (U.S.) Variable Account G, and Sun Life of Canada (U.S.)
Variable Account I or any other variable account established by
Sun Life Assurance Company of Canada (U.S.) (the "Company"), and
(iii)any and all instruments, including applications for exemptions
from such Acts, which said attorneys-in-fact deem necessary and
advisable to enable the Company or any variable account of the
Company to comply with the Securities Act of 1933, as amended, the
Investment Company Act of 1940, as amended, and the rules and
regulations and requirements of the Securities and Exchange
Commission in respect thereof;
and to file the same, with exhibits thereto, and other amendments in connection
therewith with the Securities and Exchange Commission, hereby ratifying and
confirming all that each of said attorneys-in-fact or his substitute or
substitutes may do or cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his hand on the
date shown.
/s/ James A. McNulty, III
-------------------------
James A. McNulty, III
Dated: January 3, 2000
<PAGE>
SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.)
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that C. James Prieur, whose signature
appears below, constitutes and appoints Edward M. Shea, Sandra DaDalt, Ellen B.
King, Peter F. Demuth, and James A. McNulty, III, and each of them, his
attorneys-in-fact, each with the power of substitution, for him in any and all
capacities, to sign:
(i) the Registration Statements on Form S-6 of Sun Life Assurance
Company of Canada (U.S.) Variable Account I, to be filed with the
Securities and Exchange Commission on or about January 6, 2000,
and any amendments thereto.
(ii) any Registration Statements under the Securities Act of 1933 and
the Investment Company Act of 1940 of any of Sun Life of Canada
(U.S.) Variable Account C, Sun Life of Canada (U.S.) Variable
Account D, Sun Life of Canada (U.S.) Variable Account F, Sun Life
of Canada (U.S.) Variable Account G, and Sun Life of Canada (U.S.)
Variable Account I or any other variable account established by
Sun Life Assurance Company of Canada (U.S.) (the "Company"), and
(iii)any and all instruments, including applications for exemptions
from such Acts, which said attorneys-in-fact deem necessary and
advisable to enable the Company or any variable account of the
Company to comply with the Securities Act of 1933, as amended, the
Investment Company Act of 1940, as amended, and the rules and
regulations and requirements of the Securities and Exchange
Commission in respect thereof;
and to file the same, with exhibits thereto, and other amendments in connection
therewith with the Securities and Exchange Commission, hereby ratifying and
confirming all that each of said attorneys-in-fact or his substitute or
substitutes may do or cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his hand on the
date shown.
/s/ C. James Prieur
-------------------------
C. James Prieur
Dated: January 3, 2000
<PAGE>
SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.)
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that S. Caesar Raboy, whose signature
appears below, constitutes and appoints Edward M. Shea, Sandra DaDalt, Ellen B.
King, Peter F. Demuth, C. James Prieur, and James A. McNulty, III, and each of
them, his attorneys-in-fact, each with the power of substitution, for him in any
and all capacities, to sign:
(i) the Registration Statements on Form S-6 of Sun Life Assurance
Company of Canada (U.S.) Variable Account I, to be filed with the
Securities and Exchange Commission on or about January 6, 2000,
and any amendments thereto.
(ii) any Registration Statements under the Securities Act of 1933 and
the Investment Company Act of 1940 of any of Sun Life of Canada
(U.S.) Variable Account C, Sun Life of Canada (U.S.) Variable
Account D, Sun Life of Canada (U.S.) Variable Account F, Sun Life
of Canada (U.S.) Variable Account G, and Sun Life of Canada (U.S.)
Variable Account I or any other variable account established by
Sun Life Assurance Company of Canada (U.S.) (the "Company"), and
(iii)any and all instruments, including applications for exemptions
from such Acts, which said attorneys-in-fact deem necessary and
advisable to enable the Company or any variable account of the
Company to comply with the Securities Act of 1933, as amended, the
Investment Company Act of 1940, as amended, and the rules and
regulations and requirements of the Securities and Exchange
Commission in respect thereof;
and to file the same, with exhibits thereto, and other amendments in connection
therewith with the Securities and Exchange Commission, hereby ratifying and
confirming all that each of said attorneys-in-fact or his substitute or
substitutes may do or cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his hand on the
date shown.
/s/ S. Caesar Raboy
-------------------------
S. Caesar Raboy
Dated: January 3, 2000
<PAGE>
SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.)
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that Donald A. Stewart, whose signature
appears below, constitutes and appoints Edward M. Shea, Sandra DaDalt, Ellen B.
King, Peter F. Demuth, C. James Prieur, and James A. McNulty, III, and each of
them, his attorneys-in-fact, each with the power of substitution, for him in any
and all capacities, to sign:
(i) the Registration Statements on Form S-6 of Sun Life Assurance
Company of Canada (U.S.) Variable Account I, to be filed with the
Securities and Exchange Commission on or about January 6, 2000,
and any amendments thereto.
(ii) any Registration Statements under the Securities Act of 1933 and
the Investment Company Act of 1940 of any of Sun Life of Canada
(U.S.) Variable Account C, Sun Life of Canada (U.S.) Variable
Account D, Sun Life of Canada (U.S.) Variable Account F, Sun Life
of Canada (U.S.) Variable Account G, and Sun Life of Canada (U.S.)
Variable Account I or any other variable account established by
Sun Life Assurance Company of Canada (U.S.) (the "Company"), and
(iii)any and all instruments, including applications for exemptions
from such Acts, which said attorneys-in-fact deem necessary and
advisable to enable the Company or any variable account of the
Company to comply with the Securities Act of 1933, as amended, the
Investment Company Act of 1940, as amended, and the rules and
regulations and requirements of the Securities and Exchange
Commission in respect thereof;
and to file the same, with exhibits thereto, and other amendments in connection
therewith with the Securities and Exchange Commission, hereby ratifying and
confirming all that each of said attorneys-in-fact or his substitute or
substitutes may do or cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his hand on the
date shown.
/s/ Donald A. Stewart
-------------------------
Donald A. Stewart
Dated: January 3, 2000
