<PAGE> 1
EXHIBIT 4(b)
KEMPER INVESTORS LIFE INSURANCE COMPANY [ZURICH KEMPER LOGO]
A Stock Life Insurance Company
1 Kemper Drive
Long Grove, Illinois 60049-0001
RIGHT TO CANCEL - FREE LOOK PROVISION - At any time within 10 days of receiving
this Certificate you may return it to us or to the agent through whom it was
purchased. Immediately upon our receipt, this Certificate will be voided as if
it had never been in force. All purchase payments allocated to Guarantee Periods
plus the Fixed Account plus the Separate Account Certificate Value computed at
the end of the valuation period following our receipt of this Certificate will
then be refunded within ten days.
We agree to pay an annuity to the Annuitant provided the Annuitant is living and
this Certificate is in force on the Annuity Date.
We further agree to pay the death benefit prior to the Annuity Date upon the
death of the Certificate Owner or, in certain circumstances, the death of the
Annuitant. Payment will be made upon our receipt of due proof of death and the
return of this Certificate.
This Certificate is issued in consideration of the attached application and
payment of the initial purchase payment.
The provisions on this cover and the pages that follow are part of this
Certificate.
Signed for Kemper Investor Life Insurance Company at its home office in Long
Grove, Illinois.
/s/ Debra P. Rezabek /s/ Gale K. Caruso
Secretary President
GROUP FLEXIBLE PREMIUM MODIFIED GUARANTEED, FIXED AND VARIABLE DEFERRED ANNUITY
NON-PARTICIPATING
ALL PAYMENTS AND VALUES PROVIDED BY THIS CERTIFICATE WHEN BASED ON THE
INVESTMENT EXPERIENCE OF THE SUBACCOUNTS ARE VARIABLE AND ARE NOT GUARANTEED AS
TO DOLLAR AMOUNT. WITHDRAWALS AND TRANSFERS FROM THE GUARANTEED PERIOD VALUE
BEFORE THE END OF THE GUARANTEED PERIOD ARE SUBJECT TO A MARKET VALUE
ADJUSTMENT.
This is a legal certificate between the Certificate Owner and Kemper Investors
Life Insurance Company.
READ YOUR CERTIFICATE CAREFULLY
Policy Form No. L-8614
<PAGE> 2
INDEX
<TABLE>
<CAPTION>
Page
<S> <C>
ANNUITY OPTION TABLE Follows page 19
ANNUITY PERIOD PROVISIONS 15 - 19
Election of Annuity Option 15 - 16
Annuity Options 16
Transfers During the Annuity Period 18 - 19
APPLICATION Follows Certificate Schedule
CERTIFICATE SCHEDULE Follows Index
DEATH BENEFIT PROVISIONS 14 - 15
Amount Payable Upon Death 14
Payment of Death Benefits 14 - 15
DEFINITIONS 5 - 7
ENDORSEMENT, if any Follows Annuity Option Table
FIXED ACCOUNT PROVISIONS 10
Fixed Account 10
Fixed Account Certificate Value 10
GENERAL PROVISIONS 7 - 8
The Contract 7
The Certificate 7
Incontestability 7
Assignment 7
Reports 8
Premium Taxes 8
GUARANTEE PERIOD PROVISIONS 10
Guarantee Period Value 10
OWNERSHIP PROVISIONS 8 - 9
Owner of Certificate 8
Change of Ownership 8
Beneficiary 9
PURCHASE PAYMENT PROVISIONS 9
Initial Purchase Payment 9
Purchase Payment Limitations 9
TRANSFER AND WITHDRAWAL PROVISIONS 13 - 14
Transfers During the Accumulation Period 13
Withdrawals During the Accumulation Period 13
Transfer and Withdrawal Procedures 13 - 14
VARIABLE ACCOUNT PROVISIONS 11 - 12
Separate Account 11
Liabilities Of Separate Account 11
Subaccounts 11
Rights Reserved By the Company 11 - 12
Accumulation Unit Value 12
</TABLE>
<PAGE> 3
CERTIFICATE SCHEDULE
DESCRIPTION OF ANNUITY: GROUP FLEXIBLE PREMIUM MODIFIED
GUARANTEED, FIXED AND VARIABLE DEFERRED
ANNUITY
THE CERTIFICATE OWNER(S), BENEFICIARY(IES) AND ANNUITY DATE ARE AS
STATED IN THE APPLICATION FOR THIS CERTIFICATE UNLESS SUBSEQUENTLY
CHANGED IN ACCORDANCE WITH THE CERTIFICATE PROVISIONS.
GUARANTEED PERIODS AVAILABLE ON ISSUE DATE:
[ 1 THROUGH 10 ] YEARS
KILICO VARIABLE ANNUITY SEPARATE ACCOUNT
SUBACCOUNTS AVAILABLE ON ISSUE DATE:
[KEMPER MONEY MARKET
KEMPER GOVERNMENT SECURITIES
KEMPER HIGH YIELD
KEMPER TOTAL RETURN
KEMPER GROWTH
KEMPER SMALL CAP GROWTH
KEMPER INVESTMENT GRADE BOND
KEMPER TECHNOLOGY GROWTH
SCUDDER VLIF BOND
SCUDDER VLIF CAPITAL GROWTH
SCUDDER VLIF INTERNATIONAL
JANUS ASPEN GROWTH
JANUS ASPEN BALANCED
JANUS ASPEN AGGRESSIVE GROWTH
JANUS ASPEN WORLDWIDE GROWTH
FIDELITY VIP II INDEX 500
FIDELITY VIP EQUITY-INCOME
FIDELITY VIP GROWTH
FIDELITY VIP II CONTRAFUND
ALGER AMERICAN GROWTH
ALGER AMERICAN SMALL CAPITALIZATION
ALGER AMERICAN MIDCAP GROWTH
AMERICAN CENTURY VP INCOME & GROWTH
AMERICAN CENTURY VP VALUE
J.P. MORGAN SMALL COMPANY
DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND
WARBURG PINCUS EMERGING MARKETS]
PAGE 2
L-8614
<PAGE> 4
CERTIFICATE SCHEDULE
CERTIFICATE NUMBER: K00008589 ISSUE DATE: JULY 1, 2000
ANNUITANT: JOHN Q PUBLIC
SEX: MALE ISSUE AGE: 55
MAXIMUM ANNUITIZATION AGE: [95]
QUALIFIED OR NONQUALIFIED TYPE: QUALIFIED
MINIMUM INITIAL PURCHASE PAYMENT: [$25,000
MINIMUM SUBSEQUENT PURCHASE PAYMENT: $100
MAXIMUM PURCHASE PAYMENTS PER CERTIFICATE YEAR: $1,000,000]
INITIAL PURCHASE PAYMENT RECEIVED: $25,000
SEPARATE ACCOUNT CHARGES:
DEDUCTED DAILY FROM THE SUBACCOUNTS
MORTALITY AND EXPENSE RISK CHARGE: [1.40% ANNUALLY]
[RECORD MAINTENANCE CHARGE:
WE WILL ASSESS A RECORDS MAINTENANCE CHARGE AT THE END OF EACH CALENDAR QUARTER
IN WHICH YOU PARTICIPATE IN THE SEPARATE ACCOUNT, UPON A FULL WITHDRAWAL, AND ON
THE ANNUITY DATE. THIS CHARGE WILL NOT BE ASSESSED AFTER THE ANNUITY DATE. THIS
CHARGE WILL BE DEDUCTED ON A PROPORTIONAL BASIS FROM AMOUNTS ALLOCATED TO THE
SUBACCOUNTS. TO THE EXTENT NEEDED, IT WILL BE DEDUCTED FROM THE GUARANTEE
PERIODS. WE RESERVE THE RIGHT TO MAKE THIS DEDUCTION FROM THE FIXED ACCOUNT. THE
AMOUNT OF THIS CHARGE WILL DEPEND ON THE SIZE OF THE CERTIFICATE VALUE ON THE
DATE THE CHARGE IS MADE:
AMOUNT OF RECORDS MAINTENANCE
CERTIFICATE VALUE CHARGE
LESS THAN $25,000 $7.50
$25,000 TO $49,999.99 $3.75
$50,000 AND OVER NONE]
[TRANSFER CHARGE:
WE RESERVE THE RIGHT TO CHARGE $25 FOR EACH TRANSFER IN EXCESS OF 12 IN A
CERTIFICATE YEAR.]
PAGE 3
L-8614
<PAGE> 5
CERTIFICATE SCHEDULE
<TABLE>
<CAPTION>
INITIAL INITIAL INTEREST ALLOCATION
ALLOCATIONS RATE* PERCENTAGE
<S> <C> <C>
[JANUS ASPEN WORLWIDE GROWTH N/A 30.00%
FIDELITY VIP II INDEX 500 N/A 25.00%
FIDELITY VIP GROWTH N/A 25.00%
5 YEAR GUARANTEE PERIOD 7.00% 20.00%]
</TABLE>
* STATED AS AN ANNUAL EFFECTIVE RATE
MARKET VALUE ADJUSTMENT FORMULA:
[THIS ADJUSTMENT IS MADE FOR AMOUNTS TRANSFERRED OR WITHDRAWN BEFORE THE END OF
A GUARANTEE PERIOD. THE ADJUSTMENT MAY BE POSITIVE OR NEGATIVE BUT THE
ADJUSTMENT IS NEVER MORE THAN THE AMOUNT TRANSFERRED OR WITHDRAWN. THE MARKET
VALUE ADJUSTMENT IS SUBTRACTED FROM THE AMOUNT THAT IS WITHDRAWN FROM THE
GUARANTEE PERIOD.
THE MARKET VALUE ADJUSTMENT IS THE PRODUCT OF (1), (2), (3) AND (4) WHERE:
(1) .075
(2) THE NUMBER OF MONTHS REMAINING IN THE GUARANTEE PERIOD
(3) THE INTEREST RATE BEING GUARANTEED ON NEW ALLOCATIONS TO A GUARANTEE
PERIOD WITH THE PERIOD EQUAL TO THE GUARANTEE PERIOD LESS THE RATE
GUARANTEED ON THE MONEY BEING WITHDRAWN OR TRANSFERRED.
(4) THE AMOUNT WITHDRAWN OR TRANSFERRED.]
L-8614 PAGE 4
<PAGE> 6
DEFINITIONS ACCUMULATION PERIOD: The period between the Issue Date and
the Annuity Date.
ACCUMULATION UNIT: An accounting unit of measure used to
calculate the value of each Subaccount.
AGE: The attained age of the Annuitant.
ANNUITANT: The person named in the application during whose
lifetime the Annuity is to be paid. When two people are
named as Joint Annuitants the term "Annuitant" means the
Joint Annuitants or the survivor. Under qualified plans,
only the spouse may be named as Joint Annuitant. You may not
change the person(s) named as the Annuitant.
ANNUITY: A series of payments paid in accordance with this
Certificate which begins on the Annuity Date.
ANNUITY DATE: The date on which this Certificate matures and
Annuity payments begin. It must be at least one year from
the Issue Date and no later than the maximum age at
annuitization as stated in the Certificate Schedule, unless
otherwise agreed. The Certificate Owner may change the
Annuity Date, but not beyond the maximum age.
ANNUITY PERIOD: This is the period that starts on the
Annuity Date.
ANNUITY UNIT: An accounting unit of measure used to
calculate the amount of variable Annuity payments after the
first Annuity payment.
CERTIFICATE: An individual Certificate which we issue to you
as evidence of the rights and benefits under the contract.
CERTIFICATE OWNER: See "You, Your, Yours" below.
CERTIFICATE VALUE: The sum of the Fixed Account Certificate
Value plus the Separate Account Certificate Value plus the
Guarantee Period Value.
CERTIFICATE YEAR: A one-year period starting on the Issue
Date and successive Certificate anniversaries.
FIXED ACCOUNT: Our assets other than those allocated to the
Separate Account or any other separate account under which
we guarantee a fixed rate of return.
FIXED ACCOUNT CERTIFICATE VALUE: The Fixed Account
Certificate Value is the value of amounts allocated under
this Certificate to the Fixed Account.
FIXED ANNUITY: An Annuity payment that does not vary with
investment performance.
FUND: An investment company or separate series thereof, in
which the Subaccounts of the Separate Account invest.
GUARANTEE PERIOD: A period of time during which an amount is
to be credited with a guaranteed interest rate, subject to a
Market Value Adjustment prior to the end of the Guarantee
Period. The Guarantee Periods initially offered are stated
in the Certificate Schedule.
Policy Form No. L-8614 Page 5
<PAGE> 7
Policy Form No. L-8614 Page 6
DEFINITIONS (CONTINUED)
GUARANTEE PERIOD VALUE: The (1) Purchase Payment allocated
or the amount transferred to a Guarantee Period; plus (2)
interest credited; minus (3) withdrawals and transfers
adjusted for (4) any applicable Market Value Adjustment
previously made. There is a $5000 minimum on the sum of
Purchase Payments and amounts transferred to any Guarantee
Period Value.
ISSUE DATE: The Issue Date is stated in the Certificate
Schedule. It is the date your initial Purchase Payment is
available for use and your application has been accepted by
us. It is also the date on which your Purchase Payment
begins to be credited with interest and/or investment
experience.
MARKET ADJUSTED VALUE: A Guarantee Period Value adjusted by
the Market Value Adjustment formula prior to the end of a
Guarantee Period.
MARKET VALUE ADJUSTMENT: An adjustment of Guarantee Period
Values in accordance with the Market Value Adjustment
formula prior to the end of the Guarantee Period. The
adjustment reflects the change in the value of the Guarantee
Period Value due to changes in interest rates since the date
the Guarantee Period commenced. The Market Value Adjustment
formula is stated in the Certificate Schedule.
MORTALITY AND EXPENSE RISK CHARGE: A charge deducted in the
calculation of the Accumulation Unit value and the Annuity
Unit value. It is for our assumption of mortality risks and
expense guarantees. The charge is shown on the Certificate
Schedule.
NONQUALIFIED: This Certificate issued to other than a
qualified plan.
OWNER: The group trust maintaining this Certificate.
PURCHASE PAYMENTS: The dollar amount we receive in U.S.
currency to buy the benefits this Certificate provides.
QUALIFIED PLAN: This Certificate issued under a retirement
plan which qualifies for favorable income tax treatment
under Section 401, 403, 408 or 457 of the Internal Revenue
Code as amended.
RECORDS MAINTENANCE CHARGE: A charge assessed against your
Certificate as specified in the Certificate Schedule. We
reserve the right to make this charge against the Fixed
Account Certificate Value or the Guarantee Period Value.
RECEIVED: Received by Kemper Investors Life Insurance
Company at its home office in Long Grove, Illinois.
SEPARATE ACCOUNT: A unit investment trust registered with
the Securities and Exchange Commission under the Investment
Act of 1940 known as the KILICO Variable Annuity Separate
Account.
SEPARATE ACCOUNT CERTIFICATE VALUE: The sum of the
Subaccount Values of this Certificate on Valuation Date.
SUBACCOUNTS: The Separate Account has Subaccounts. The
Subaccounts initially available are stated in the
Certificate Schedule.
SUBACCOUNT VALUE: The value of each Subaccount calculated
separately according to the formulas stated in this
Certificate.
<PAGE> 8
DEFINITIONS (CONTINUED)
VALUATION DATE: Each business day that applicable law
requires that we value the assets of the Separate Account.
Currently this is each day that the New York Stock Exchange
is open for trading.
VALUATION PERIOD: The period that starts at the close of a
Valuation Date and ends at the close of business the next
succeeding Valuation Date.
VARIABLE ANNUITY: An Annuity payment which varies as to
dollar amount because of Subaccount investment experience.
WE, OUR, US: Kemper Investors Life Insurance Company, Long
Grove, Illinois.
YOU, YOUR, YOURS: The party(ies) named as Certificate Owner
in the application unless later changed as provided in this
Certificate. (See Change of Ownership.) The Certificate
Owner is the Annuitant unless a different Owner is named in
the application. Under a nonqualified annuity when more than
one person is named as Certificate Owner, the terms "you",
"your" means Joint Certificate Owners. The Certificate Owner
may be changed during the lifetime of the Certificate Owner
and the Annuitant. The Certificate Owner, prior to the
Annuity Date or any distribution of any death benefit, has
the exclusive right to exercise every option and right
conferred by this Certificate.
GENERAL PROVISIONS
THE CONTRACT The Contract, Certificate, any application attached to the
Certificate, and any endorsements constitute the entire
contract between the parties.
THE CERTIFICATE We will issue an individual Certificate to you as evidence
of his or her rights and benefits under the contract. All
statements made in the application are deemed representation
and not warranties. No statement will void this Certificate
or be used as a defense of a claim unless it is contained in
the application.
MODIFICATION OF
CERTIFICATE Only our president, secretary and assistant secretaries have
the power to approve a change or waive any provision of this
Certificate. Any such modifications must be in writing. No
agent or person other than the officers named has the
authority to change or waive the provisions of this
Certificate.
Upon notice to you or the payees during the annuity period,
the Certificate may be modified by us as is necessary to
comply with any law or regulation issued by a governmental
agency to which we or the Separate Account is subject or as
is necessary to assure continued qualification of the
Certificate under the Internal Revenue Code or other laws
relating to retirement plans or annuities or as otherwise
may be in your best interests. In the event of a
modification, we may make appropriate endorsement to the
Certificate and we will obtain all required regulatory
approvals.
INCONTESTABILITY We cannot contest the contract or this Certificate after it
has been in force for two years from the Issue Date.
CHANGE OF ANNUITY
DATE You may write to us prior to distribution of a death benefit
or the first Annuity payment date and request a change of
the Annuity Date.
ASSIGNMENT No assignment under the contract or this Certificate is
binding unless we receive it in writing. We assume no
responsibility for the validity or sufficiency of any
assignment. Once filed, your rights, Annuitant rights and
beneficiary rights are subject to the assignment. Any claim
is subject to proof of interest of the assignee.
Policy Form No. L-8614 Page 7
<PAGE> 9
Policy Form No. L-8614 Page 8
GENERAL PROVISIONS (CONTINUED)
DUE PROOF OF DEATH We must receive written proof upon your death or that of the
Annuitant when a death benefit is payable. The proof may be
a certified death Certificate, the written statement of a
physician, or any other proof satisfactory to us.
CERTIFICATE VALUES AND
DEATH BENEFITS Any available Certificate Value and death benefit will not
be less than the minimum benefit required by the statutes of
the state in which this Certificate is delivered.
NON-PARTICIPATING This Certificate does not pay dividends. It will not share
in our surplus or earnings.
REPORTS At least once each Certificate Year we will send you a
statement showing Purchase Payments received, interest
credited, investment experience, and charges made since the
last report, as well as any other information required by
statute.
PREMIUM TAXES We will make a deduction for state premium taxes in certain
situations. On any Certificate subject to premium tax, as
provided under applicable law, the tax will be deducted
from: a. The Purchase Payments when we receive them; b. the
Certificate Value upon total withdrawal; or c. from the
total Certificate Value applied to an annuity option at the
time Annuity payments start.
QUALIFIED PLANS If this Certificate is issued under a qualified plan
additional provisions may apply. The rider or amendment to
this Certificate used to qualify it under the applicable
section of the Internal Revenue Code will indicate the
extent of change in the provisions.
DETERMINATION
OF VALUES The method of determination by us of the investment
experience factor, the number and value of Accumulation
Units, and the number and value of Annuity Units shall be
conclusive upon you, any Payee, and any Beneficiary.
GOVERNING LAW The Certificate will be governed by the laws of the
jurisdiction where the Certificate is delivered and
interpreted under the laws of Illinois.
CREDITORS The proceeds of this Certificate and any payment under an
annuity option will be exempt from the claim of creditors
and from legal process to the extent permitted by law.
OWNERSHIP PROVISIONS
OWNER OF
CERTIFICATE The Annuitant is you unless otherwise provided in the
application.
Before the Annuity Date or any distribution of death
benefit, you have the right to cancel or amend this
Certificate if we agree. You may exercise every option and
right conferred by this Certificate. The Joint Certificate
Owners must agree to any change if more than one Certificate
Owner is named.
CHANGE OF
OWNERSHIP You may change the Certificate Owner by written request at
any time while you and the Annuitant are alive. You must
furnish information sufficient to clearly identify the new
Certificate Owner to us. The change is subject to any
existing assignment of this Certificate. When we record the
effective date of the change, it will be the date the notice
was signed except for action taken by us prior to receiving
the request. Any change is subject to the payment of any
proceeds. We may require you to return this Certificate to
us for endorsement of a change.
<PAGE> 10
OWNERSHIP PROVISIONS (CONTINUED)
BENEFICIARY The application for this Certificate shows the original
DESIGNATION AND beneficiary. You may change the beneficiary if you send us a
CHANGE OF written notice in a form acceptable to us. Changes are
BENEFICIARY subject to the following conditions:
1. The change must be filed while the Annuitant is alive;
2. This Certificate must be in force at the time you file
a change;
3. Such change must not be prohibited by the terms of an
existing assignment, beneficiary designation or other
restriction;
4. Such change will take effect when we receive it;
5. After we receive the change, it will take effect on the
date the change form is signed. However, action taken
by us before the change form was received will remain
in effect; and
6. The request for change must provide information
sufficient to identify the new beneficiary.
We may require you to return this Certificate for
endorsement of a change.
DEATH OF
BENEFICIARY The interest of a beneficiary who dies before the
distribution of the death benefit will pass to the other
beneficiaries, if any, share and share alike, unless
otherwise provided in the beneficiary designation. If no
beneficiary survives or is named, the distribution will be
made to your estate when you die, or to the estate of the
annuitant upon the death of the annuitant if you are not
also the Annuitant. If a beneficiary dies within ten days of
the date of your death, the death benefit will be paid as if
you had survived the beneficiary. If a beneficiary dies
within ten days of the death of the Annuitant and you are
not the Annuitant, we will pay the death benefit as if the
Annuitant survived the beneficiary. If you, the Annuitant,
and the beneficiary die simultaneously, we will pay the
death benefit as if you had survived the Annuitant and the
beneficiary.
PURCHASE PAYMENT PROVISIONS
INITIAL PURCHASE
PAYMENT The minimum initial Purchase Payment is shown on the
Certificate Schedule.
PURCHASE PAYMENT
LIMITATIONS The minimum and maximum Purchase Payments that may be made
are shown on the Certificate Schedule. We reserve the right
to waive or modify these limits and to not accept any
Purchase Payment.
Subsequent Purchase Payments will be allocated according to
your most recent instructions at the time we receive your
Purchase Payment.
PLACE OF PAYMENT All Purchase Payments under this Certificate must be paid to
us at our home office or such other location as we may
select. We will notify you and any other interested parties
in writing of such other locations. Purchase Payments
received by an agent will begin earning interest after we
receive it.
Policy Form No. L-8614 Page 9
<PAGE> 11
Policy Form No. L-8614 Page 10
FIXED ACCOUNT PROVISIONS
FIXED ACCOUNT
CERTIFICATE VALUE The Fixed Account Certificate Value is increased by: 1. your
Purchase Payment allocated to the Fixed Account; 2. amounts
transferred from a Guarantee Period or Subaccount to the
Fixed Account at your request; and 3. the interest credited
to amounts so allocated or transferred. Transfers, charges,
and withdrawals from the Fixed Account reduce the Fixed
Account Certificate Value.
During the Accumulation Period, the Fixed Account is
restricted to allocations that will be systematically
transferred into the Subaccounts and Guarantee Period
Accounts. At the time that you allocate a Purchase Payment
or transfer money into the Fixed Account, you must choose a
transfer schedule that is acceptable to us. We will credit
interest at an annual effective interest rate of at least
3%. At the time of each allocation, we will guarantee a rate
for at least one year or the period over which the transfer
is to be effected, if less. Different interest rates may
apply to different allocations. Any rate above 3% will be at
our discretion. We will not unfairly discriminate between
different classes of Certificates.
GUARANTEE PERIOD PROVISIONS
GUARANTEE PERIOD We hold all amounts allocated to a Guarantee Period in a
non-unitized separate account. The assets of this separate
account equal to the reserves and other liabilities of this
separate account will not be charged with liabilities
arising out of any other business we may conduct. The
initial Guarantee Periods available under the Certificate
are shown in the Certificate Schedule.
GUARANTEE PERIOD
VALUE On any Valuation Date, the Guarantee Period Value includes:
1. your Purchase Payments or transfers allocated to the
Guarantee Period Value at the beginning of its
Guarantee Period; plus
2. interest credited; minus
3. withdrawals and transfers; minus
4. any applicable portion of the Records Maintenance
Charge and charges for other benefits; adjusted for
5. any applicable Market Value Adjustment previously made.
The Guarantee Period(s) initially elected and the interest
rate(s) initially credited are shown in the Certificate
Schedule. The initial interest rate credited to subsequent
Purchase Payments will be declared at the time the payment
is received.
At the end of a Guarantee Period, the Guarantee Period Value
will be transferred to a money market Subaccount unless you
tell us to do otherwise.
ACCUMULATED On any Valuation Date, the Accumulated Guarantee Period
GUARANTEE PERIOD Value is the sum of the Guarantee Period Values. At any time
VALUE during the Accumulation Period, the Accumulated Guarantee
Period Value may be allocated to more than one Guarantee
Period with our agreement.
We calculate the interest credited to the Guarantee Period
Value by compounding daily, at daily interest rates, rates
which would produce at the end of a Certificate Year a
result identical to the one produced by applying an annual
interest rate.
MARKET VALUE
ADJUSTMENT The Market Value Adjustment formula is stated in the
Certificate Schedule. This formula is applicable for both an
upward or downward adjustment to a Guarantee Period Value
when, prior to the end of a Guarantee Period, such value is:
1. taken as a total or partial withdrawal;
2. applied to purchase an Annuity; or
3. transferred to another Guarantee Period, the Fixed
Account or a Subaccount.
<PAGE> 12
VARIABLE ACCOUNT PROVISIONS
SEPARATE ACCOUNT The variable benefits under this Certificate are provided
through the KILICO Variable Annuity Separate Account. This
is called the Separate Account. The Separate Account is
registered with the Securities and Exchange Commission as a
unit investment trust under the Investment Company Act of
1940. It is a separate investment account maintained by us
into which a portion of the company's assets have been
allocated for this Certificate and may be allocated for
certain other certificates.
LIABILITIES OF The assets equal to the reserves and other liabilities of
SEPARATE ACCOUNT the Separate Account will not be charged with liabilities
arising out of any other business we may conduct. We will
value the assets of the Separate Account on each Valuation
Date.
SEPARATE ACCOUNT On any valuation Date the Separate Account Certificate Value
CERTIFICATE VALUE is the sum of its Subaccount values.
SUBACCOUNTS The Separate Account consists of Subaccounts. The initial
Subaccounts available under this Certificate are shown in
the Certificate Schedule. We may, from time to time, combine
or remove Subaccounts in the Separate Account and establish
additional Subaccounts of the Separate Account. In such
event we may permit you to select other Subaccounts under
this Certificate. However, the right to select any other
Subaccount is limited by the terms and conditions we may
impose on such transactions.
FUND Each Subaccount of the Separate Account will buy shares of a
separate series of a fund. Each fund is registered under the
Investment Company Act of 1940 as an open-end management
investment company. Each series of a fund represents a
separate investment portfolio which corresponds to one of
the Subaccounts of the Separate Account.
If we establish additional Subaccounts each new Subaccount
will invest in a new series of a fund or in shares of
another investment company. We may also substitute other
investment companies.
RIGHTS RESERVED We reserve the right, subject to compliance with the current
BY THE COMPANY law or as it may be changed in the future:
1. To operate the Separate Account in any form permitted
under the Investment Company Act of 1940 or in any other
form permitted by law;
2. To take any action necessary to comply with or obtain
and continue any exemptions from the Investment Company Act
of 1940 or to comply with any other applicable law;
3. To transfer any assets in any Subaccount to another
Subaccount or to one or more separate accounts, or the
General Account, or to add, combine or remove Subaccounts in
the Separate Account;
Policy Form No. L-8614 Page 11
<PAGE> 13
Policy Form No. L-8614 Page 12
VARIABLE ACCOUNT PROVISIONS (CONTINUED)
4. To delete the shares of any of the portfolios of a fund
or any other open-end investment company and to substitute,
for the fund shares held in any Subaccount, the shares of
another portfolio of a fund or the shares of another
investment company or any other investment permitted by law;
and
5. To change the way we assess charges, but not to increase
the aggregate amount above that currently charged to the
Separate Account and the funds in connection with the
Certificate.
When required by law, we will obtain your approval of such
changes and the approval of any regulatory authority.
ACCUMULATION UNIT Each Subaccount has an Accumulation Unit Value. When
VALUE Purchase Payments or other amounts are allocated to a
Subaccount, a number of units are purchased based on the
Accumulation Unit Value of the Subaccount at the end of the
Valuation Period during which the allocation is made. When
amounts are transferred out of or deducted from a
Subaccount, units are redeemed in a similar manner.
The value of a Subaccount on any Valuation Date is the
number of units held in the Subaccount times the
Accumulation Unit Value on that Valuation Date.
The Accumulation Unit Value for each subsequent Valuation
Period is the investment experience factor for that period
multiplied by the Accumulation Unit Value for the period
immediately preceding. Each Valuation Period has a single
Accumulation Unit Value that is applied to each day in the
period. The number of Accumulation Units will not change as
a result of investment experience.
INVESTMENT Each Subaccount has its own investment experience factor.
EXPERIENCE FACTOR The investment experience of the Separate Account is
calculated by applying the investment experience factor to
the value in each Subaccount during a Valuation Period.
The investment experience factor of a Subaccount for a
Valuation Period is determined by dividing 1. by 2. and
subtracting 3. from the result, where:
1. is the net result of;
a. the net asset value per share of the investment held in
the Subaccount determined at the end of the current
Valuation Period; plus
b. the per share amount of any dividend or capital gain
distributions made by the investments held in the
Subaccount, if the "ex-dividend" date occurs during the
current Valuation Period; plus or minus
c. a charge or credit for taxes reserved for the current
Valuation Period which we determine resulted from the
investment operations of the Subaccount.
2. is the net asset value per share of the investment held
in the Subaccount, determined at the end of the last
Valuation Period.
3. is the factor representing the sum of the Separate
Account charges stated in the Certificate Schedule for the
number of days in the Valuation Period.
<PAGE> 14
TRANSFER AND WITHDRAWAL PROVISIONS
TRANSFERS DURING All or part of the Separate Account Certificate Value or a
THE ACCUMULATION Guarantee Period Value may be transferred to the Fixed
PERIOD Account or to another Subaccount or Guarantee Period. We
will allow the first transfer at the end of the free look
period.
The Certificate Value transferred into or out of the
Guarantee Periods must be at least $5,000 unless the entire
Guarantee Period Value is transferred. Any transfer from a
Guarantee Period is subject to a Market Value Adjustment
unless the transfer is effective on the Guarantee Period
maturity date.
No transfer may be made within seven calendar days of the
date on which the first annuity payment is due.
We reserve the right to charge for transfers as described in
the Certificate Schedule.
Any transfer request must clearly specify: 1. the amount
which is to be transferred; and 2. the names of the accounts
which are affected. We will only honor a telephone transfer
request if a properly executed telephone transfer
authorization is on file with us. Such request for a
transfer must comply with the conditions of the
authorization.
We reserve the right at any time and without notice to any
party, to terminate, suspend, or modify these transfer
rights.
WITHDRAWALS DURING During the Accumulation Period, you may withdraw all or part
THE ACCUMULATION of the Certificate Value reduced by any applicable premium
PERIOD taxes and adjusted by any applicable Market Value
Adjustment. The Market Value Adjustment formula will be
applied to the applicable portion of the total value
withdrawn. We must receive a written request that indicates
the amount of the withdrawal from the Fixed Account and each
Subaccount and Guarantee Period. You must return the
Certificate to us if you elect a total withdrawal.
Withdrawals are subject to these conditions:
Withdrawals from the Subaccounts will reduce the amounts in
each Subaccount on a proportional basis, unless you tell us
otherwise.
Each withdrawal from a Guarantee Period must be at least
$5,000 or the value that remains in the Guarantee Period, if
smaller;
The maximum you may withdraw from any account is the value
of the respective account.
We reserve the right to restrict partial withdrawals from
the Fixed Account in the first Certificate Year.
TRANSFER AND We will withdraw or transfer from the Fixed Account or
WITHDRAWAL Guarantee Periods as of the Valuation Date that follows the
PROCEDURES date we receive your written or telephone transfer request.
Amounts to be withdrawn or transferred from the Fixed
Account or Guarantee Periods will be done on a first in -
first out basis, unless you request otherwise. To process a
withdrawal, the request must contain all required
information.
Policy Form No. L-8614 Page 13
<PAGE> 15
Policy Form No. L-8614 Page 14
TRANSFER AND WITHDRAWAL PROVISIONS (CONTINUED)
We will redeem the necessary number of Accumulation Units to
achieve the dollar amount when the withdrawal or transfer is
made from a Subaccount. We will reduce the number of
Accumulation Units credited in each Subaccount by the number
of Accumulation Units redeemed. The reduction in the number
of Accumulation Units is determined on the basis of the
Accumulation Unit Value at the end of the Valuation Period
when we receive the request, provided the request contains
all required information. We will pay the amount within
seven calendar days after the date we receive the request,
except as provided below.
DEFERMENT OF If the withdrawal or transfer is to be made from a
WITHDRAWAL Subaccount, we may suspend the right of withdrawal or
TRANSFER transfer or delay payment more than seven calendar days if:
1. during any period when the New York Stock Exchange is
closed other than customary weekend and holiday closings; 2.
when trading markets normally utilized are restricted, or an
emergency exists as determined by the Securities and
Exchange Commission, so that disposal of investments or
determination of the Accumulation Unit Value is not
practical; or 3. for such other periods as the Securities
and Exchange Commission by order may permit for protection
of Owners.
We may defer the payment of a withdrawal or transfer from
the Fixed Account or Guarantee Periods, for the period
permitted by law. This can never be more than six months
after you send us a written request. During the period of
deferral, we will continue to credit interest, at the then
current interest rate(s), to the Fixed Account Certificate
Value and/or each Guarantee Period Value.
DEATH BENEFIT PROVISIONS
AMOUNT PAYABLE We compute the death benefit at the end of the Valuation
UPON DEATH Period following our receipt of due proof of death and the
return of this Certificate.
If death occurs prior to attaining age 75, we will pay the
greater of: a. the Certificate Value; or b. the total amount
of Purchase Payments, less the aggregate dollar amount of
all previous withdrawals or c. the amount that would have
been payable in the event of a full surrender. We will pay
the larger of the Certificate Value or the amount that would
have been payable in the event of a full surrender if death
occurs at age 75 or later.
PAYMENT OF DEATH If you or the last surviving annuitant dies while the
BENEFITS Certificate is in effect and before the Annuity Date, we
will pay a death benefit. If a Certificate Owner is a
non-natural person, the death of an annuitant will be
considered as the death of a Certificate Owner for purposes
of this death benefit provision.
If an annuitant dies after the Annuity Date, the death
benefit, if any, will depend on the Annuity Option in
effect. If you die after the Annuity Date, income payments
will be made at least as rapidly as under the method of
distribution being used as of the date of such death.
We will pay the death benefit to the beneficiary when we
receive due proof of death. We will then have no further
obligation under this Certificate.
When you die, we will pay the death benefit in a lump sum.
The entire interest in the Certificate must be distributed
within five years from the date of death unless it is
applied under an Annuity Option or the spouse continues the
Certificate as described below.
<PAGE> 16
DEATH BENEFIT PROVISIONS (CONTINUED)
Instead of a lump sum payment the beneficiary may elect to
have the death benefit distributed as stated in Option 1 for
a period not to exceed the beneficiary's life expectancy; or
Options 2, or 3 based upon the life expectancy of the
beneficiary as prescribed by federal regulations. The
beneficiary must make this choice within sixty days of the
time we receive due proof of death and distribution must
commence within one year of the date of death.
If the beneficiary is not a natural person, the beneficiary
must elect that the entire death benefit be distributed
within five years of your death.
Distribution of the death benefit must start within one year
after your death. It may start later if prescribed by
federal regulations.
If the primary beneficiary is the surviving spouse when you
die, the surviving spouse may elect to be the successor
Certificate Owner of this Certificate, in lieu of receiving
a death benefit. There will be no requirement to start a
distribution of death benefits.
ANNUITY PERIOD PROVISIONS
ELECTION OF We must receive an election of Annuity option in writing.
ANNUITY OPTION You may make an election before the Annuity Date providing
the Annuitant is alive. The Annuitant may make an election
on the Annuity Date unless you have restricted the right to
make such an election. The beneficiary may make an election
when we pay the death benefit.
An election will be revoked by 1. a subsequent change of
beneficiary; or 2. an assignment of this Certificate unless
the assignment provides otherwise.
Subject to the terms of the death benefit provision, the
beneficiary may elect to have the death benefit remain with
us under one of the Annuity options.
If an Annuity option is not elected, an Annuity will be paid
under Option 3 for a guaranteed period of ten years and for
as long thereafter as the Annuitant is alive.
If the total Certificate Value is applied under one of the
Annuity options, this Certificate must be surrendered to us.
An option cannot be changed after the first Annuity payment
is made.
If, on the seventh calendar day before the first Annuity
payment due date, all the Certificate Value is allocated to
the Fixed Account or Guarantee Periods, the Annuity will be
paid as a Fixed Annuity. The Fixed Annuity is funded in our
General Account, which consists of our assets other than
those allocated to the Separate Account or any other
separate account. If all of the Certificate Value on such
date is allocated to the Separate Account, the Annuity will
be paid as a Variable Annuity. If the Certificate Value on
such date is allocated to both the Fixed Account or a
Guarantee Period and a Subaccount, then the Annuity will be
paid as a combination of a Fixed and a Variable Annuity. A
Fixed and Variable Annuity payment will reflect the
investment performance of the Subaccounts in accordance with
the allocation of the Certificate Values existing on such
date. Allocations will not be changed thereafter, except as
provided in the Transfers During the Annuity Period
provision of this Certificate.
Policy Form No. L-8614 Page 15
<PAGE> 17
Policy Form No. L-8614 Page 16
ANNUITY PERIOD PROVISIONS (CONTINUED)
Payments for all options are derived from the applicable
tables. Current Annuity rates will be used if they produce
greater payments than those quoted in the Certificate. The
age in the tables is the age of the payee on the last
birthday before the first payment is due. We reserve the
right to deduct one year from the age for each 10 calendar
years that have elapsed since the year 2000.
The option selected must result in a payment that is at
least equal to our minimum payment, according to our rules,
at the time the Annuity option is chosen. If at any time the
payments are less than the minimum payment, we have the
right to increase the period between payment to quarterly,
semi-annual or annual so that the payment is at least equal
to the minimum payment or to make payment in one lump sum.
OPTION 1
SPECIFIED PERIOD We will make monthly payments for a fixed number of
installments. Payments must be made for at least 5 years,
but not more than 30 years.
OPTION 2
LIFE ANNUITY We will make monthly payments while the payee is alive.
OPTION 3
LIFE ANNUITY WITH We will make monthly payments for a guaranteed period and
INSTALLMENTS thereafter while the payee is alive. The guaranteed period
GUARANTEED must be selected at the time the Annuity option is chosen.
The guaranteed periods available are 5, 10, 15 and 20 years.
OPTION 4
JOINT AND We will pay the full monthly income while both payees are
SURVIVOR alive. Upon the death of either payee, we will continue to
ANNUITY pay the surviving payee a percentage of the original monthly
payment. The percentage payable to the surviving payee must
be selected at the time the Annuity option is chosen. The
percentages available are 50%, 66 2/3%, 75% and 100%.
OTHER OPTIONS We may make other Annuity options available. Payments are
also available on a quarterly, semi-annual or annual basis.
FIXED ANNUITY The Certificate Value allocated to the Fixed Account or the
Guarantee Periods on the first day preceding the date on
which the first Annuity Payment is due is first reduced by
any premium taxes and charges that apply. The value that
remains will be used to determine the Fixed Annuity monthly
payment in accordance with the Annuity option selected.
<PAGE> 18
ANNUITY PERIOD PROVISIONS (CONTINUED)
VARIABLE ANNUITY The Separate Account Certificate Value, at the end of the
Valuation period preceding the Valuation Period that
includes the date on which the first Annuity payment is due,
is first reduced by any Records Maintenance Charge, charges
for other benefits if any that may be added by a rider to
this Certificate and any premium taxes that apply. The value
that remains is used to determine the first monthly Annuity
payment. The first monthly Annuity payment is based upon the
guaranteed Annuity option shown in the Annuity Option Table.
You may elect any option available. The dollar amount of
subsequent payments may increase or decrease depending on
the investment experience of each Subaccount. The number of
Annuity Units per payment will remain fixed for each
Subaccount unless a transfer is made. If a transfer is made,
the number of Annuity Units per payment will change. Some
annuity options provide for a reduction in the income level
upon the death of an annuitant, which will reduce the number
of Annuity Units.
The number of Annuity Units for each Subaccount is
calculated by dividing a. by b. where:
a. is the amount of the monthly payment that can be
attributed to that Subaccount, and
b. is the Annuity Unit Value for that Subaccount at the end
of the Valuation Period. The Valuation Period includes the
date on which the payment is made.
Monthly Annuity payments, after the first payment, are
calculated by summing up, for each Subaccount, the product
of a. times b. where:
a. is the number of Annuity Units per payment in each
Subaccount; and
b. is the Annuity Unit Value for that Subaccount at the end
of the Valuation Period. The Valuation Period includes the
date on which the payment is made.
After the first payment, we guarantee that the dollar amount
of each Annuity payment will not be affected adversely by
actual expenses or changes in mortality experience from the
expense and mortality assumptions on which we based the
first payment.
ANNUITY UNIT VALUE The value of an Annuity Unit for each Subaccount, at the end
of any subsequent Valuation Period is determined by
multiplying the result of a. times b. by c. where:
a. is the Annuity Unit Value for the immediately preceding
Valuation Period; and
b. is the net investment factor for the Valuation Period for
which the Annuity Unit Value is being calculated; and
c. is the interest factor of .99993235 per calendar day of
such subsequent Valuation Period to offset the effect of the
assumed rate of 2.50% per year used in the Annuity Option
Table.
Policy Form No. L-8614 Page 17
<PAGE> 19
Policy Form No. L-8614 Page 18
ANNUITY PERIOD PROVISIONS (CONTINUED)
The net investment factor for each Subaccount for any
Valuation Period is determined by dividing a. by b. where:
a. is the value of an Annuity Unit of the applicable
Subaccount as of the end of the current Valuation Period
plus or minus the per share charge or credit for taxes
reserved.
b. is the value of an Annuity Unit of the applicable
Subaccount as of the end of the immediately preceding
Valuation Period, plus or minus the per share charge or
credit for taxes reserved.
TRANSFERS DURING During the Annuity Period, the payee(s) may not convert
THE ANNUITY Fixed Annuity payments to Variable Annuity payments.
PERIOD However, during the Annuity Period, the payee(s), by sending
us a written notice in a form satisfactory to us, may
convert Variable Annuity payments to Fixed Annuity payments;
or have Variable Annuity payments reflect the investment
experience of other Subaccounts. A transfer may be made
subject to the following:
1. Transfers from a Subaccount to the General Account can be
effective only on an anniversary of the first Annuity
payment date. We must receive notice of such transfer at
least thirty days prior to the effective date of the
transfer. Unless you specify otherwise, transfers to the
General Account from the Separate Account will be
proportional among the Subaccounts.
2. Transfers from one Subaccount to another Subaccount will
be effective during the Valuation Period next succeeding the
date the notice is received by us. However, if the notice
for the transfer is received within seven days immediately
preceding an Annuity payment date, the transfer will be
effective during the Valuation Period next succeeding that
Annuity payment date.
3. We reserve the right to limit the number of transfers
between Subaccounts to no less than once each Certificate
Year.
4. We reserve the right to limit the number of Subaccounts
that may be used at one time to no less than 3.
5. Requests for transfers must meet our current rules and be
in a form acceptable to us.
The number of Annuity Units per payment attributable to a
Subaccount to which transfer is made is equal to, in the
case of a transfer between Subaccounts, the number of
Annuity Units per payment in the Subaccount from which
transfer is being made multiplied by the Annuity Unit Value
for that Subaccount divided by the Annuity Unit Value for
the Subaccount to which transfer is being made.
<PAGE> 20
ANNUITY PERIOD PROVISIONS (CONTINUED)
The amount of money allocated to the General Account in the
event of a transfer from a Subaccount equals the annuity
reserve for the payee's interest in such Subaccount. The
annuity reserve is the product of a. multiplied by b.
multiplied by c. where: a. is the number of Annuity Units
representing the payee's interest in such Subaccount per
Annuity payment; b. is the Annuity Unit Value for such
Subaccount; and c. is the present value of $1.00 per payment
period using the attained age(s) of the payee(s) and any
remaining guaranteed payment that may be due at the time of
the transfer. The fixed monthly payments resulting from the
transfer will not be less than the amount purchased using
the guarantees under this Certificate. Money allocated to
the General Account upon such transfer will be applied under
the same Annuity option as originally elected. Any
guaranteed period payments will be adjusted to reflect the
number of guaranteed payments that have already been made.
If all guaranteed payments have already been made, no
further payments will be guaranteed.
All amounts and Annuity Unit Values are determined as of the
end of the Valuation Period which precedes the effective
date of the transfer.
We reserve the right at any time and without notice to any
party to terminate, suspend or modify the transfer
privileges.
SUPPLEMENTARY A supplementary agreement will be issued to reflect payments
AGREEMENT that will be made under a settlement option. If payment is
made as a death benefit distribution, the effective date
will be the date of death. Otherwise the effective date will
be the date chosen by the Certificate Owner.
DATE OF FIRST Interest, under an option, will start to accrue on the
PAYMENT effective date of the supplementary agreement. The
supplementary agreement will provide details on the payments
to be made.
EVIDENCE OF AGE, We may require satisfactory evidence of the age, sex and the
SEX AND SURVIVAL continued survival of any person on whose life the income is
based.
MISSTATEMENT OF If the age or sex of the payee has been misstated, the
AGE OR SEX amount payable under this Certificate will be such as the
Purchase Payments sent to us would have purchased at the
correct age or sex. Interest not to exceed 6% compounded
each year will be charged to any overpayment or credited to
any underpayment against future payments we may make under
this Certificate.
BASIS OF ANNUITY The guaranteed monthly payments are based on an interest
OPTIONS rate of 2.50% per year and where mortality is involved, the
A2000 Table developed by the Society of Actuaries. We may
also make available Variable Annuity payment options based
on assumed investment rates other than 2.50%.
DISBURSEMENT OF When the payee dies, the value of any unpaid installments
FUNDS UPON DEATH will be paid in one sum, to the estate of the payee unless
OF PAYEE: UNDER otherwise provided in the agreement. The commuted value for
OPTIONS 1 OR 3 fixed installments based upon a minimum interest rate of not
less than 2.50% will be paid. The commuted value of any
variable installments will be determined by applying the
Annuity Unit Value next determined following our receipt of
due proof of death and will be based on the Assumed
Investment Return.
PROTECTION OF Unless otherwise provided in the supplementary agreement,
BENEFITS the payee may not commute, anticipate, assign, alienate or
otherwise hinder the receipt of any payment.
Policy Form No. L-8614 Page 19
<PAGE> 21
ANNUITY OPTION TABLE
AMOUNT OF MONTHLY PAYMENT FOR EACH $1,000 OF VALUE APPLIED
OPTION ONE - SPECIFIED PERIOD
<TABLE>
<CAPTION>
Number Number Number Number
of years Monthly of years Monthly of years Monthly of years Monthly
selected Payment selected Payment selected Payment selected Payment
<S> <C> <C> <C> <C> <C> <C> <C>
5 17.69 12 8.01 19 5.48 26 4.33
6 14.92 13 7.48 20 5.27 27 4.22
7 12.94 14 7.03 21 5.08 28 4.11
8 11.46 15 6.64 22 4.90 29 4.02
9 10.31 16 6.29 23 4.74 30 3.92
10 9.39 17 5.99 24 4.59
11 8.64 18 5.72 25 4.46
</TABLE>
OPTION TWO AND THREE - LIFE ANNUITY WITH INSTALLMENTS GUARANTEED
<TABLE>
<CAPTION>
Age of Monthly Payments Guaranteed Age of Monthly Payments Guaranteed
Male Female
Payee NONE 60 120 180 240 Payee NONE 60 120 180 240
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
55 4.17 4.16 4.13 4.06 3.96 55 3.87 3.86 3.84 3.81 3.75
56 4.27 4.25 4.21 4.14 4.03 56 3.95 3.94 3.92 3.88 3.82
57 4.36 4.35 4.30 4.22 4.09 57 4.03 4.02 4.00 3.95 3.88
58 4.46 4.45 4.40 4.30 4.16 58 4.11 4.11 4.08 4.03 3.95
59 4.57 4.55 4.50 4.39 4.22 59 4.21 4.20 4.17 4.11 4.01
60 4.69 4.67 4.60 4.48 4.29 60 4.30 4.29 4.26 4.19 4.08
61 4.81 4.79 4.71 4.57 4.36 61 4.41 4.40 4.35 4.28 4.15
62 4.94 4.92 4.83 4.66 4.43 62 4.52 4.50 4.46 4.37 4.23
63 5.09 5.05 4.95 4.76 4.49 63 4.64 4.62 4.56 4.46 4.30
64 5.24 5.20 5.08 4.86 4.56 64 4.76 4.74 4.68 4.56 4.37
65 5.40 5.35 5.21 4.96 4.62 65 4.90 4.87 4.80 4.66 4.45
66 5.57 5.52 5.35 5.06 4.69 66 5.04 5.01 4.93 4.77 4.52
67 5.75 5.69 5.49 5.17 4.75 67 5.19 5.16 5.06 4.87 4.59
68 5.95 5.87 5.64 5.27 4.81 68 5.36 5.32 5.20 4.98 4.66
69 6.15 6.07 5.80 5.37 4.86 69 5.53 5.49 5.35 5.10 4.73
70 6.38 6.27 5.96 5.48 4.91 70 5.72 5.68 5.51 5.21 4.80
71 6.61 6.49 6.12 5.58 4.96 71 5.93 5.87 5.67 5.33 4.86
72 6.86 6.72 6.29 5.68 5.00 72 6.15 6.08 5.85 5.44 4.92
73 7.13 6.96 6.47 5.77 5.04 73 6.39 6.31 6.03 5.56 4.97
74 7.42 7.21 6.64 5.86 5.08 74 6.65 6.55 6.21 5.67 5.02
75 7.72 7.48 6.82 5.95 5.11 75 6.93 6.81 6.41 5.78 5.06
76 8.05 7.76 7.00 6.03 5.14 76 7.24 7.08 6.60 5.88 5.10
77 8.40 8.06 7.18 6.11 5.17 77 7.57 7.38 6.80 5.98 5.13
78 8.77 8.37 7.35 6.18 5.19 78 7.92 7.69 7.01 6.07 5.16
79 9.18 8.69 7.53 6.25 5.20 79 8.31 8.02 7.21 6.15 5.18
80 9.60 9.03 7.70 6.31 5.22 80 8.72 8.37 7.41 6.23 5.20
81 10.06 9.38 7.86 6.36 5.23 81 9.17 8.74 7.61 6.30 5.22
82 10.55 9.74 8.02 6.41 5.24 82 9.66 9.13 7.80 6.35 5.23
83 11.07 10.12 8.17 6.45 5.25 83 10.20 9.54 7.98 6.41 5.24
84 11.63 10.50 8.32 6.49 5.26 84 10.77 9.96 8.15 6.45 5.25
85 12.22 10.89 8.45 6.52 5.26 85 11.39 10.40 8.31 6.49 5.26
</TABLE>
<PAGE> 22
ANNUITY OPTION TABLE
(CONTINUED)
OPTION FOUR - JOINT AND 100% SURVIVOR ANNUITY
<TABLE>
<CAPTION>
Age of Age of Female Payee
Male
Payee 55 60 65 70 75 80 85
<S> <C> <C> <C> <C> <C> <C> <C>
55 3.49 3.66 3.81 3.93 4.02 4.08 4.12
60 3.61 3.83 4.05 4.24 4.40 4.52 4.59
65 3.69 3.97 4.28 4.57 4.84 5.05 5.20
70 3.76 4.09 4.47 4.89 5.31 5.67 5.95
75 3.80 4.17 4.63 5.16 5.75 6.34 6.83
80 3.83 4.23 4.73 5.37 6.14 6.99 7.80
85 3.84 4.26 4.80 5.51 6.44 7.55 8.75
</TABLE>
Rates for ages not shown here will be provided upon request.
<PAGE> 23
GROUP FLEXIBLE PREMIUM MODIFIED GUARANTEED, FIXED AND VARIABLE DEFERRED ANNUITY
NON-PARTICIPATING
ALL PAYMENTS AND VALUES PROVIDED BY THIS CERTIFICATE WHEN BASED ON THE
INVESTMENT EXPERIENCE OF THE SUBACCOUNTS ARE VARIABLE AND ARE NOT GUARANTEED AS
TO DOLLAR AMOUNT. WITHDRAWALS AND TRANSFERS FROM THE GUARANTEED PERIOD VALUE
BEFORE THE END OF THE GUARANTEED PERIOD ARE SUBJECT TO A MARKET VALUE
ADJUSTMENT.
This is a legal certificate between the Certificate Owner and Kemper Investors
Life Insurance Company.
READ YOUR CERTIFICATE CAREFULLY
KEMPER INVESTORS LIFE INSURANCE COMPANY
A Stock Life Insurance Company
1 Kemper Drive,
Long Grove, Illinois 60049-0001
Policy Form No. L-8614
