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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-4
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
Post-Effective Amendment No. 11 (File No. 33-4173) X
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
(File No. 811-3217) Amendment No. 13 X
IDS LIFE ACCOUNT F
IDS LIFE ACCOUNT IZ
IDS LIFE ACCOUNT JZ
IDS LIFE ACCOUNT G
IDS LIFE ACCOUNT H
IDS LIFE ACCOUNT N
___________________________________________________________________
(Exact Name of Registrant)
IDS Life Insurance Company
___________________________________________________________________
(Name of Depositor)
IDS Tower 10, Minneapolis, MN 55440-0010
___________________________________________________________________
(Address of Depositor's Principal Executive Offices) (Zip Code)
Depositor's Telephone Number, including Area Code (612) 671-3678
Mary Ellyn Minenko, IDS Tower 10, Minneapolis, MN 55440-0010
___________________________________________________________________
(Name and Address of Agent for Service)
It is proposed that this filing will become effective:
immediately upon filing pursuant to paragraph (b) of Rule 486
on (date) pursuant to paragraph (b) of Rule 486
60 days after filing pursuant to paragraph (a) of Rule 486
X on April 29, 1994, pursuant to paragraph (a) of Rule 486
The Registrant has registered an indefinite number or amount of
securities under the Securities Act of 1933 pursuant to Section
24-f of the Investment Company Act of 1940. Registrant's Rule
24f-2 Notice for its most recent fiscal year will be filed on or
about February 25, 1994.
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<TABLE>
<CAPTION>
CROSS REFERENCE SHEET
Cross reference sheet showing location in the prospectus of the information
called for by the items enumerated in Part A and B of Form N-4.
Negative answers omitted from prospectus are so indicated.
PART A PART B
Page Number in
Page Number Statement of
Item No. in Prospectus Item No. Additional Information
<C> <C> <C> <C>
1 3 15 33
2 5-6 16 34
3(a) 8-9 17(a) NA
(b) 6-8 (b) NA
(c) 30-31*
4(a) 9
(b) 10 18(a) NA
(c) 9-10 (b) NA
(c) 41
5(a) 3, 30-31 (d) NA
(b) 11 (e) NA
(c) 11-12 (f) 41
(d) 3, 12
(e) 30 19(a) 41
(f) NA (b) 16-17*
6(a) 15-17 20(a) 41
(b) 16-17 (b) 41
(c) 17 (c) 41
(d) NA (d) NA
(e) 12
(f) NA 21(a) 36-38
(b) 36-38
7(a) 13
(b) 11, 19-22, 29 22 38-39
(c) 12, 20
(d) 3 23(a) NA
(b) NA
8(a) 25-26
(b) 13-14
(c) 26
(d) 39
(e) 27
(f) 27
9(a) 24-25
(b) 24-25
10(a) 13, 14-15, 17-18
(b) 17-18
(c) 13, 14-15, 17-18
(d) NA
11(a) 22-24
(b) 24
(c) 22
(d) 14
(e) 6-7
12(a) 27-30
(b) 6
(c) NA
13 NA
14 31
*Designates page number in the prospectus, which is hereby incorporated by
reference in this Statement of Additional Information.
</TABLE>
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IDS Life Flexible Annuity
Prospectus
April 29, 1994
The Flexible Annuity is an individual deferred fixed/variable
annuity contract offered by IDS Life Insurance Company (IDS Life),
a subsidiary of IDS Financial Corporation (IDS). Purchase payments
may be allocated among different accounts, providing variable
and/or fixed returns and payouts. The annuity is available for
qualified and non-qualified retirement plans.
IDS Life Accounts F, IZ, JZ, G, H and N
Sold by: IDS Life Insurance Company, IDS Tower 10 Minneapolis, MN
55440-0010 Telephone: 612-671-3131.
THIS PROSPECTUS CONTAINS THE INFORMATION ABOUT THE VARIABLE
ACCOUNTS THAT YOU SHOULD KNOW BEFORE INVESTING. Refer to "The
variable accounts" in this prospectus.
THE PROSPECTUS IS ACCOMPANIED OR PRECEDED BY THE RETIREMENT ANNUITY
MUTUAL FUND PROSPECTUS FOR IDS LIFE AGGRESSIVE GROWTH FUND, IDS
LIFE INTERNATIONAL EQUITY FUND, IDS LIFE CAPITAL RESOURCE FUND, IDS
LIFE MANAGED FUND, INC., IDS LIFE SPECIAL INCOME FUND, INC. AND IDS
LIFE MONEYSHARE FUND, INC. PLEASE KEEP THESE PROSPECTUSES FOR
FUTURE REFERENCE.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
SECURITIES AND EXCHANGE COMMISSION, OR ANY STATE SECURITIES
COMMISSION, NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR
ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR
ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY
IS A CRIMINAL OFFENSE.
IDS LIFE IS NOT A BANK AND THE SECURITIES IT OFFERS ARE NOT
DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR ENDORSED BY ANY BANK
NOR ARE THEY INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION,
THE FEDERAL RESERVE BOARD OR ANY OTHER AGENCY.
A Statement of Additional Information (SAI) dated April 29, 1994
(incorporated by reference into this prospectus) has been filed
with the Securities and Exchange Commission (SEC), and is available
without charge by contacting IDS Life at the telephone number above
or by completing and sending the order form on the last page of
this prospectus. The table of contents of the SAI is on the last
page of this prospectus.
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Contents
Key Terms.....................................................p.
The Flexible Annuity in brief.................................p.
Expense summary...............................................p.
Condensed financial information...............................p.
Financial statements..........................................p.
Performance information.......................................p.
The variable accounts.........................................p.
The funds.....................................................p.
Aggressive Growth Fund...................................p.
International Equity Fund................................p.
Capital Resource Fund....................................p.
Managed Fund.............................................p.
Special Income Fund......................................p.
Moneyshare Fund..........................................p.
The fixed account.............................................p.
Buying your annuity...........................................p.
Setting the retirement date...................................p.
Beneficiary...................................................p.
Two ways to make purchase payments............................p.
Charges.......................................................p.
Contract administrative charge...........................p.
Mortality and expense risk fee...........................p.
Surrender charge.........................................p.
Other information on charges.............................p.
Premium taxes............................................p.
Valuing your investment.......................................p.
Number of units..........................................p.
Accumulation unit value..................................p.
Net investment factor................ ...................p.
Factors that affect variable account
accumulation units.......................................p.
Making the most of your annuity...............................p.
Automated dollar - cost averaging during
the accumulation period..................................p.
How dollar - cost averaging works........................p.
Transferring money between accounts......................p.
Transfer policies........................................p.
Three ways to request a transfer or a surrender..........p.
Surrendering your contract....................................p.
Surrender policies.......................................p.
Receiving payment when you request a surrender...........p.
Special surrender provisions.............................p.
Changing ownership............................................p.
Benefits in case of death.....................................p.
The annuity payout period.....................................p.
Annuity payout plans.....................................p.
Death after annuity payouts begin........................p.
Transfers between accounts after annuity
payouts begin............................................p.
Taxes.........................................................p.
Voting Rights.................................................p.
About IDS Life................................................p.
Regular and special reports...................................p.
Table of contents of the Statement of Additional
Information...................................................p.
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Key terms
These terms can help you understand details about your annuity.
Annuity - A contract purchased from an insurance company that
offers tax-deferred growth of the contract owner's investment until
earnings are withdrawn, and that can be tailored to meet the
specific needs of the individual during retirement.
Accumulation unit - A measure of the value of each variable account
before annuity payouts begin.
Annuitant - The person on whose life or life expectancy the payouts
are based.
Annuity payouts - An amount paid at regular intervals under one of
several plans available to the owner and/or any other payee. This
amount may be paid on a variable or fixed basis.
Annuity unit - A measure of the value of each variable account used
to calculate the annuity payouts you receive.
Beneficiary - The person designated to receive annuity benefits in
case of the owner's or annuitant's death.
Close of business - When the New York Stock Exchange (NYSE) closes,
normally 3:00 p.m. Central time.
Code - Internal Revenue Code of 1986, as amended.
Contract owner (owner) - The person or party entitled to ownership
rights stated in the contract and in whose name the contract is
issued.
Contract value - The total value of your annuity before any
applicable surrender charge and any contract administrative charge
have been deducted.
Contract year - A period of 12 months, starting on the effective
date of your contract and on each anniversary of the effective
date.
Fixed account - An account to which you may allocate purchase
payments. Amounts allocated to this account earn interest at rates
that are declared periodically by IDS Life.
IDS Life - In this prospectus, "we," "us," "our," and "IDS Life"
refer to IDS Life Insurance Company.
Mutual funds (funds) - Six IDS Life Retirement Annuity mutual
funds, each with a different investment objective. (See "The
funds.") You may allocate your purchase payments into variable
accounts investing in shares of any or all of these funds.
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Owner (you, your) - The person who controls the annuity (decides on
investment allocations, transfers, payout options, etc.). Usually,
but not always, the owner is also the annuitant. The owner is
responsible for taxes, regardless of whether he or she receives the
annuity's benefits.
Purchase payments - Payments made to IDS Life for an annuity.
Qualified annuity - An annuity purchased for a retirement plan
that is subject to applicable federal law and any rules of the plan
itself. These plans include:
o Individual Retirement Annuities (IRAs)
o Simplified Employee Pension Plans (SEPs)
o Section 401(k) plans
o Custodial and trusteed pension and profit sharing plans
o Tax Sheltered Annuities (TSAs)
o Section 457 plans.
All other annuities are considered non-qualified annuities.
Retirement date - The date when annuity payouts are scheduled to
begin. You select this date when you start your contract. It can
be changed in the future.
Surrender charge - A deferred sales charge that may be applied if
you surrender your annuity before the retirement date.
Surrender value - The amount you are entitled to receive if you
surrender your annuity. It is the contract value minus any
applicable surrender charge and contract administrative charge.
Valuation date - Any normal business day, Monday through Friday,
that the NYSE is open. The value of each variable account is
calculated at the close of business on each valuation date.
Variable accounts - Six separate accounts to which you may allocate
purchase payments; each invests in shares of one mutual fund. (See
"The variable accounts.") The value of your investment in each
variable account changes with the performance of the particular
fund.
The Flexible Annuity in brief
Purpose: The Flexible Annuity is designed to allow you to build up
funds for retirement. You do this by making one or more investments
(purchase payments) that may earn returns that increase the value
of the annuity. Beginning at a specified future date (the
retirement date), the annuity provides lifetime or other forms of
payouts to you or to anyone you designate.
Ten-day free look: You may return your annuity to your financial
planner or our Minneapolis office within 10 days after it is
delivered to you and receive a full refund of the contract value.
No charges will be deducted. However, you bear the investment risk
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from the time of purchase until return of the contract; the refund
amount may be more or less than the payment you made. (Exceptions:
If the law so requires, all of your purchase payment will be
refunded.)
Accounts: You may allocate your purchase payments among any or all
of:
o six variable accounts, each of which invests in mutual funds
with a particular investment objective. The value of each
variable account varies with the performance of the particular
fund. We cannot guarantee that the value at the retirement date
will equal or exceed the total of purchase payments allocated to
the variable accounts. (p.)
o one fixed account, which earns interest at rates that are
adjusted periodically by IDS Life (p.)
Buying the annuity: Your IDS personal financial planner will help
you complete and submit an application. Applications are subject
to acceptance at our Minneapolis office. You may buy a non-
qualified annuity or a qualified annuity including an IRA. Payment
may be made either in a lump sum or installments:
o Minimum purchase payment - $2,000 ($1,000 for qualified
annuities) unless you pay in installments by means of a bank
authorization or under a group billing arrangement such as a
payroll deduction.
o Minimum installment payment - $50 monthly; $23.08 bi-weekly
payroll deductions.
o Maximum first-year payment(s) - $50,000 to $1,000,000 depending
on your age.
o Maximum payment for each subsequent year - $50,000. (p.)
Transfers: You may redistribute your money among accounts without
charge at any time until annuity payouts begin, and once per
contract year thereafter. You may establish automated transfers
among the fixed and variable account(s), subject to certain
restrictions. (p.)
Surrenders: You may surrender all or part of your contract value at
any time before the retirement date. You also may establish
automated partial surrenders. Surrenders may be subject to charges
and tax penalties and may have other tax consequences; also,
certain restrictions apply. (p.)
Changing ownership: You may change ownership of a non-qualified
annuity by written instruction, however, such changes of non-
qualified annuities may have federal income tax consequences.
Certain restrictions apply concerning change of ownership of a
qualified annuity. (p.)
Payment in case of death: If you or the annuitant dies before
annuity payouts begin, we will pay the beneficiary an amount at
least equal to the contract value. (p.)
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Annuity payouts: The contract value of your investment can be
applied to an annuity payout plan that begins on your retirement
date. You may choose from a variety of plans to make sure that
payouts continue as long as they are needed. If you purchased a
qualified annuity, the payout schedule must meet requirements of
the qualified plan. Payouts may be made on a fixed or variable
basis, or both. Total monthly payouts include amounts from each
variable account and the fixed account. (p.)
Taxes: Generally your annuity grows tax deferred until you
surrender it or begin to receive payouts. (Under certain
circumstances, IRS penalty taxes may apply.) Even if you direct
payouts to someone else, you will still be taxed on the income if
you are the owner. Certain state and local governments impose
premium taxes. (p.)
Charges: Your Flexible Annuity is subject to a $6 quarterly ($24
annual) contract administrative charge, a 1% mortality and expense
risk charge, a 7% surrender charge on purchase payments up to six
contract years old, and premium taxes. (p.)
Expense summary
The purpose of this summary is to help you understand the various
costs and expenses associated with the Flexible Annuity.
You pay no sales charge when you purchase the Flexible Annuity.
All costs that you bear directly or indirectly for the variable
accounts and underlying mutual funds are shown below. Some
expenses may vary as explained under "Contract charges."
Direct charges. These are deducted directly from the contract
value. They include:
o Surrender charge - 7% of purchase payments up to six contract
years old; no charge on earnings and purchase payments six years
old or more.
o Annual contract administrative charge - $24 ($6 per quarter).
Indirect charges. The variable account pays these expenses out of
its assets. They are reflected in the variable account's daily
accumulation unit value and are not charged directly to your
account. They include:
o Mortality and expense risk fee - 1% per year, deducted from the
variable account as a percentage of the average daily net assets
of the underlying fund.
o Operating expenses of underlying mutual funds - management fees
and other expenses deducted as a percentage of average net
assets as follows: *
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<TABLE>
<CAPTION>
Aggressive International Capital Special
Growth Equity Resource Managed Income Moneyshare
<S> <C> <C> <C> <C> <C> <C>
Management fees .__% .__% .__% .__% .__% .__%
Other expenses .__ .__ .__ .__ .__ .__
Total** .__% .__% .__% .__% .__% .__%
</TABLE>
* Premium taxes imposed by some state and local governments are not
reflected in this table.
** Annualized operating expenses of underlying mutual funds at Dec.
31, 1993.
Example*
You would pay the following expenses on a $1,000 investment,
assuming 5% annual return and surrender at the end of each time
period:
1 year $_____ $_____ $_____ $_____ $_____ $_____
3 years _____ _____ _____ _____ _____ _____
5 years _____ _____ _____ _____ _____ _____
10 years _____ _____ _____ _____ _____ _____
You would pay the following expenses on the same investment
assuming no surrender:
1 year $_____ $_____ $_____ $_____ $_____ $_____
3 years _____ _____ _____ _____ _____ _____
5 years _____ _____ _____ _____ _____ _____
10 years _____ _____ _____ _____ _____ _____
This example should not be considered a representation of past or
future expenses. Actual expenses may be more or less than those
shown.
* In this example, the $24 annual contract administrative charge is
approximated as a .___% charge based on our average contract size.
Condensed financial information
(unaudited)
The following tables give per-unit information about the financial
history of each variable account.
Financial statements
The SAI dated April 29, 1994, contains:
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o complete audited financial statements of the variable accounts
including:
- - statements of net assets as of Dec. 31, 1993;
- - statements of operations for the year ended Dec. 31, 1993; and
- - statements of changes in net assets for the years ended Dec. 31,
1993 and Dec. 31, 1992 (for Accounts IZ and JZ, the period from
Jan. 13, 1992 when they commenced operations, to Dec. 31, 1992).
o complete audited financial statements for IDS Life including:
- - consolidated balance sheets as of Dec. 31, 1993 and Dec. 31,
1992; and
- - related consolidated statements of income and cash flows for each
of three years in the period ended Dec. 31, 1993.
Performance information
Performance information for the variable accounts may appear from
time to time in advertisements or sales literature. In all cases,
such information reflects the performance of a hypothetical
investment in a particular account during a particular time period.
Calculations are performed as follows:
Simple yield - Account H (investing in Moneyshare Fund): Income
over a given seven-day period (not counting any change in the
capital value of the investment) is annualized (multiplied by 52)
by assuming that the same income is received for 52 weeks. This
annual income is then stated as an annual percentage return on the
investment.
Compound yield - Account H: Calculated like simple yield, except
that, when annualized, the income is assumed to be reinvested.
Compounding of reinvested returns increases the yield as compared
to a simple yield.
Yield - all other accounts: Net investment income (income less
expenses) per accumulation unit during a given 30-day period is
divided by the value of the unit on the last day of the period.
The result is converted to an annual percentage.
Average annual total return: Expressed as an average annual
compounded rate of return of a hypothetical investment over a
period of one, five and ten years (or up to the life of the account
if it is less than ten years old). This figure reflects deduction
of all applicable charges, including the contract administrative
charge, mortality and expense risk fee and surrender charge,
assuming a surrender at the end of the illustrated period.
Optional total return quotations may be made that do not reflect a
surrender charge deduction (assuming no surrender).
Aggregate total return: Represents the cumulative change in value
of an investment for a given period (reflecting change in an
account's accumulation unit value). The calculation assumes
reinvestment of investment earnings. Aggregate total return may be
shown by means of schedules, charts or graphs.
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Performance information should be considered in light of the
investment objectives and policies, characteristics and quality of
the fund in which the account invests, and the market conditions
during the given time period. Such information is not intended to
indicate future performance. Because advertised yields and total
return figures include all charges attributable to the annuity,
which has the effect of decreasing advertised performance, account
performance should not be compared to that of mutual funds that
sell their shares directly to the public. (See the SAI for a
further description of methods used to determine yield and total
return for the accounts.)
If you would like additional information about actual performance,
contact your financial planner.
The variable accounts
Purchase payments can be allocated to any or all of the variable
accounts that invest in shares of the following funds:
IDS Life Account Established
Aggressive Growth Fund JZ Sept. 20, 1991
International Equity Fund IZ Sept. 20, 1991
Capital Resource Fund F May 13, 1981
Managed Fund N April 12, 1985
Special Income Fund G May 13, 1981
Moneyshare Fund H May 13, 1981
Each variable account meets the definition of a separate account
under federal securities laws. Income, capital gains and capital
losses of each account are credited or charged to that account
alone. No variable account will be charged with liabilities of any
other account or of our general business.
All variable accounts were established under Minnesota law and are
registered together as a single unit investment trust under the
Investment Company Act of 1940 (the 1940 Act). This registration
does not involve any supervision of our management or investment
practices and policies by the SEC.
The funds
Aggressive Growth Fund
Objective: capital appreciation. Invests primarily in common stock
of small and medium-size companies. The fund also may invest in
warrants or debt securities or in large well-established companies
when the portfolio manager believes such investments offer the best
opportunity for capital appreciation.
International Equity Fund
Objective: capital appreciation. Invests primarily in common stock
of foreign issuers and foreign securities convertible into common
stock. The fund also may invest in certain international bonds if
the portfolio manager believes they have a greater potential for
capital appreciation than equities.
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Capital Resource Fund
Objective: capital appreciation. Invests primarily in U.S. common
stocks listed on national securities exchanges and other securities
convertible into common stock, diversified over many different
companies in a variety of industries.
Managed Fund
Objective: maximum total investment return. Invests primarily in
U.S. common stocks listed on national securities exchanges,
securities convertible into common stock, warrants, fixed income
securities (primarily high-quality corporate bonds), and
money-market instruments. The fund invests in many different
companies in a variety of industries.
Special Income Fund
Objective: to provide a high level of current income while
conserving the value of the investment for the longest time period.
Invests primarily in high-quality, lower-risk corporate bonds
issued by many different companies in a variety of industries, and
in government bonds.
Moneyshare Fund
Objective: maximum current income consistent with liquidity and
conservation of capital. Invests in high-quality money market
securities with remaining maturities of 13 months or less. The
fund also will maintain a dollar-weighted average portfolio
maturity not exceeding 90 days. The fund attempts to maintain a
constant net asset value of $1 per share.
The Internal Revenue Service (IRS) has issued final regulations
relating to the diversification requirements under section 817(h)
of the Code. Each mutual fund intends to comply with these
requirements.
The U.S. Treasury and the IRS have indicated they may provide
additional guidance concerning how many variable accounts may be
offered and how many exchanges among variable accounts may be
allowed before the owner is considered to have investment control,
and thus is currently taxed on income earned within variable
account assets. We do not know at this time what the additional
guidance will be or when action will be taken. We reserve the
right to modify the contract, as necessary, to ensure that the
owner will not be subject to current taxation as the owner of the
variable account assets.
We intend to comply with all federal tax laws to ensure that the
contract continues to qualify as an annuity for federal income tax
purposes. We reserve the right to modify the contract as necessary
to comply with any new tax laws.
We are the investment adviser for each of the funds. We cannot
guarantee that the funds will meet their investment objectives.
Please read the Retirement Annuity Mutual Fund prospectus for
complete information on investment risks, deductions, expenses and
other facts you should know before investing. It is available by
contacting IDS Life at the address or telephone number on the front
of this publication, or from your financial planner.
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The fixed account
Purchase payments can also be allocated to the fixed account. The
cash value of the fixed account increases as interest is credited
to the account. Purchase payments and transfers to the fixed
account become part of the general account of IDS Life, the
company's main portfolio of investments. Interest is credited
daily and compounded annually. We may change the interest rates
from time to time.
Because of exemptive and exclusionary provisions, interests in the
fixed account have not been registered under the Securities Act of
1933 (1933 Act), nor is the fixed account registered as an
investment company under the 1940 Act. Accordingly, neither the
fixed account nor any interests in it are generally subject to the
provisions of the 1933 or 1940 Acts, and we have been advised that
the staff of the SEC has not reviewed the disclosures in this
prospectus that relate to the fixed account. Disclosures regarding
the fixed account, however, may be subject to certain generally
applicable provisions of the federal securities laws relating to
the accuracy and completeness of statements made in prospectuses.
Buying your annuity
Your financial planner will help you prepare and submit your
application, and send it along with your initial purchase payment
to our Minneapolis office. As the owner, you have all rights and
may receive all benefits under the contract. Annuities cannot be
owned in joint tenancy. You cannot buy an annuity or be an
annuitant if you are 91 or older. (In Pennsylvania, the annuitant
must be under age 79.)
When you apply, you can select:
o the account(s) in which you want to invest;
o how you want to make purchase payments;
o the date you want to start receiving annuity payouts (the
retirement date); and
o a beneficiary.
If your application is complete, we will process it and apply your
purchase payment to your account(s) within two days after we
receive it. If your application is accepted, we will send you a
contract. If we cannot accept your application within five days,
we will decline it and return your payment. We will credit
additional purchase payments to your account(s) at the next close
of business.
Setting the retirement date
You'll start receiving annuity payouts on the retirement date you
select. This date can be aligned with your actual retirement from
a job, or it can be a different future date, depending on your
needs and goals and on certain restrictions. You can also change
the date, provided you send us written instructions at least 30
days before the change.
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PAGE 14
For non-qualified annuities, the retirement date you select must
be:
o no earlier than the 60th day after the contract's effective
date; and
o no later than the annuitant's 85th birthday (or before the 10th
contract anniversary, if purchased after age 75).
For qualified annuities, to avoid IRS penalty taxes, the retirement
date generally must be:
o on or after the annuitant reaches age 59 1/2; and
o by April 1 of the year following the calendar year when the
annuitant reaches age 70 1/2.
If you are taking the minimum IRA or TSA distributions as required
by the Code from another tax-qualified investment, or in the form
of partial surrenders from this annuity, annuity payouts can start
as late as the annuitant's 85th birthday or the 10th contract
anniversary.
Certain restrictions on retirement dates apply to participants in
the Texas Optional Retirement Program. (See "Special surrender
provisions".)
Beneficiary
If death benefits become payable before the retirement date, your
named beneficiary will receive all or part of the contract value.
If there is no named beneficiary, then you or your estate will be
the beneficiary. (See "Payment in case of death" for more about
beneficiaries.)
Minimum purchase payment
If Single payment:
Non-qualified: $2,000
Qualified: $1,000
If installment payments:
$50 monthly; $23.08 bi-weekly
Installments must total at least $600 in the first year*
*If you make no purchase payments for 24 months, and your previous
payments total $600 or less, we have the right to give you 30 days'
written notice and pay you the total value of your contract in a
lump sum. This right does not apply to contracts sold to New
Jersey residents.
Minimum additional purchase payment(s): $50; $23.08 bi-weekly
Maximum first-year payment(s)
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PAGE 15
This maximum is based on your age or age of the annuitant (whomever
is older) on the effective date of the contract.
Up to age 75 $1 million
76 to 85 $500,000
86 to 90 $50,000
Maximum payment for each subsequent year $50,000**
**These limits apply in total to all IDS Life annuities you own.
We reserve the right to increase maximum limits or reduce age
limits. For qualified annuities the qualified plan's limits on
annual contribution also apply.
Two ways to make purchase payments
1 By letter
Send your check along with your name and account number to:
Regular mail:
IDS Life Insurance Company
P.O. Box 74
Minneapolis, MN 55440-0074
Express mail:
IDS Life Insurance Company
733 Marquette Avenue
Minneapolis, MN 55402
2 By scheduled payment plan
Your financial planner can help you set up:
o an automatic payroll deduction, salary reduction, or other group
billing arrangement; or
o a bank authorization.
Charges
Contract administrative charge
This fee is for establishing and maintaining your records. We
deduct $6 from the contract value at the end of each contract
quarter (each three-month period measured from the effective date
of your contract). Annual charge: $24.
If you surrender your contract, the quarterly charge will be
deducted at the time of surrender. The quarterly charge cannot be
increased and does not apply after annuity payouts begin.
Mortality and expense risk fee
This fee is to cover the annuity mortality risk and annuity expense
risk and is applied daily to the variable accounts and reflected in
the unit values of the accounts. Annually it totals 1% of their
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average daily net assets. Approximately two-thirds of this amount
is for our assumption of mortality risk, and one-third is for our
assumption of expense risk. This fee does not apply to the fixed
account.
Mortality risk arises because of our guarantee to make annuity
payouts according to the terms of the contract, no matter how long
a specific annuitant lives and no matter how long the entire group
of IDS Life annuitants live. If, as a group, IDS Life annuitants
outlive the life expectancy we have assumed in our actuarial
tables, then we must take money from our general assets to meet our
obligations. If, as a group, IDS Life annuitants do not live as
long as expected, we could profit from the mortality risk fee.
Expense risk arises because the contract administrative charge
cannot be increased and may not cover our expenses. Any deficit
would have to be made up from our general assets. We could profit
from the expense risk fee if the annual contract administrative
charge is more than sufficient to meet expenses.
We do not plan to profit from the contract administrative charge.
However, we hope to profit from the mortality and expense risk fee.
We may use any profits realized from this fee for any proper
corporate purpose, including, among others, payment of distribution
(selling) expenses. We do not expect that the surrender charge,
discussed in the following paragraphs, will cover sales and
distribution expenses.
Surrender charge
If you surrender part or all of your contract, you may be subject
to a surrender charge. The surrender amount you request is
determined by drawing from your total contract value in the
following order:
1. First we surrender any contract earnings (contract value minus
all purchase payments received and not previously surrendered).
There is no surrender charge on contract earnings.
2. Next, if necessary, we surrender purchase payments six contract
years old or more and not previously surrendered. There is no
surrender charge on these old purchase payments.
3. Finally, if necessary, we surrender purchase payments up to six
contract years old and not previously surrendered. A surrender
charge of 7% applies to any amount surrendered from these new
purchase payments.
The surrender charge is calculated so that the total amount
surrendered, minus any surrender charge, equals the amount you
request for:
o a total surrender, the surrender charge equals the amount
withdrawn from new purchase payments times 7%; and
o a partial surrender, the surrender charge equals the amount
withdrawn from new purchase payments divided by 0.93 times 7%;
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Example of surrender charge on new purchase payments
you request..............$1,000 partial surrender = $1,075.27
.93
Total amount surrendered.........$1,075.27
X 0.07
Total surrender charge...........$ 75.27
There are no surrender charges for:
o amounts surrendered after the later of the annuitant reaching
the age of 65, or the 10th contract anniversary (except in
Washington and Oregon);
o contracts settled using an annuity payout plan; and
o death benefits.
Other information on charges
IDS makes certain custodial services available to some custodial
and trusteed pension and profit sharing plans and 401(k) plans
funded by IDS Life annuities. Fees for these services start at $30
per calendar year per participant. A termination fee for owners
under 59 1/2 will be charged (fee waived in case of death or
disability).
Possible group reductions - In some cases (for example an employer
making the annuity available to employees) lower sales and
administrative expenses may be incurred due to the size of the
group, the average contribution and the use of group enrollment
procedures. In such cases, we may be able to reduce or eliminate
the contract administrative and surrender charges. However, we
expect this to occur infrequently.
Premium taxes
Certain state and local governments impose premium taxes which may
reach to 3.5%. These taxes are dependent upon the state of
residence or the state in which the contract was sold. In some
cases, premium taxes are deducted from your purchase payments
before they are allocated. In other cases, the deduction is made
when you surrender your contract or when annuity payouts begin.
Valuing your investment
Here is how your accounts are valued:
Fixed account: The amounts allocated to the fixed account are
valued directly in dollars and equal the sum of your purchase
payments plus interest earned, less any amounts surrendered or
transferred.
Variable accounts: Amounts allocated to the variable accounts are
converted into accumulation units. Each time you make a purchase
payment or transfer amounts into one of the variable accounts, a
certain number of accumulation units are credited to your contract
for that account. Conversely, each time you take a partial
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surrender, transfer amounts out of a variable account, or are
assessed a contract administrative charge, a certain number of
accumulation units are subtracted from your contract.
The accumulation units are the true measure of investment value in
each account during the accumulation period. They are related to,
but not the same as, the net asset value of the underlying fund.
The dollar value of each accumulation unit can rise or fall daily
depending on the performance of the underlying mutual fund and on
certain fund expenses. Here is how unit values are calculated:
Number of units:
To calculate the number of accumulation units for a particular
account, we divide your investment, after deduction of any premium
taxes, by the current accumulation unit value.
Accumulation unit value:
The current accumulation unit value for each variable account
equals the last value times the account's current net investment
factor.
Net investment factor:
o Determined each business day by adding the underlying mutual
fund's current net asset value per share plus per-share amount
of any current dividend or capital gain distribution; then
o dividing that sum by the previous net asset value per share; and
o subtracting the percentage factor representing the mortality and
expense risk fee from the result.
Because the net asset value of the underlying mutual fund may
fluctuate, the net investment factor may be greater or less than
one, and the accumulation unit value may increase or decrease. You
bear this investment risk in a variable account.
Factors that affect variable account accumulation units
Accumulation units may change in two ways; in number and in value.
Here are the factors that influence those changes:
The number of accumulation units you own may fluctuate due to:
o additional purchase payments allocated to the variable accounts;
o transfers into or out of the account(s);
o partial surrenders;
o surrender charges; and/or
o contract administrative charges.
Accumulation unit values may fluctuate due to:
o changes in underlying mutual fund(s) net asset value;
o dividends distributed to the variable account(s);
o capital gains or losses of underlying mutual funds;
o mutual fund operating expenses; or
o mortality and expense risk fees.
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Making the most of your annuity
Automated dollar-cost averaging during the accumulation period
You can use automated transfers to take advantage of dollar-cost
averaging (investing a fixed amount at regular intervals). For
example, you might have a set amount transferred monthly from a
relatively conservative variable account to a more aggressive one,
or to several others.
This systematic approach can help you benefit from fluctuations in
accumulation unit values caused by fluctuations in the market
value(s) of the underlying mutual fund(s). Since you invest the
same amount each period, you automatically acquire more units when
the market value falls, fewer units when it rises. The potential
effect is to lower your average cost per unit and increase your
long-term return. For specific features contact your financial
planner.
How dollar-cost averaging works
Month Amount Accumulation Number of units
invested unit value purchased
Jan $100 $20 5.00
Feb 100 16 6.25
Mar 100 9 11.11
Apr 100 5 20.00
May 100 7 14.29
June 100 10 10.00
July 100 15 6.67
Aug 100 20 5.00
Sept 100 17 5.88
Oct 100 12 8.33
(footnotes to table) By investing an equal number of dollars each
month...
(arrow in table pointing to April) you automatically buy more units
when the per unit market price is low
(arrow in table pointing to August) and fewer units when the per
unit market price is high.
You have paid an average price of only $10.81 per unit over the 10
months, while the average market price actually was $13.10.
Dollar-cost averaging does not guarantee that any variable account
will gain in value, nor will it protect against a decline in value
if market prices fall. However, if you can continue to invest
regularly throughout changing market conditions, it can be an
effective strategy to help meet your long term goals.
Transferring money between accounts
You may transfer money from any one account, including the fixed
account, to another before the annuity payouts begin. If we
receive your request before the close of business, we will process
it that day. Requests received after the close of business will be
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processed the next business day. There is no charge for transfers.
Before making a transfer, you should consider the risks involved in
switching investments.
We may suspend or modify transfer privileges at any time. Certain
restrictions apply to transfers involving the fixed account. (For
information on transfers after annuity payouts begin, see "The
annuity payout period.")
Transfer policies
o You may transfer contract values between the variable accounts,
or from the variable account(s) to the fixed account at any
time. However, if you have made a transfer from the fixed
account to the variable account(s), you may not make a transfer
from any variable account back to the fixed account until the
next contract anniversary.
o You may transfer contract values from the fixed account to the
variable account(s) once a year during a 31-day transfer period
starting on each contract anniversary (except for automated
transfers, which can be set up for transfer periods of your
choosing subject to certain minimums.)
o If we receive your transfer request within 30 days before the
contract anniversary date, the transfer from the fixed account
to the variable account(s) will be effective on the anniversary.
o If we receive your request on or within 30 days after the
contract anniversary date, the transfer from the fixed account
to the variable account(s) will be effective on the day we
receive it.
o We will not accept requests for transfers from the fixed account
at any other time.
o No transfers may be made to or from the fixed account once
annuity payouts begin.
Three ways to request a transfer or surrender
1 By letter
Send your name, account number, Social Security number or Taxpayer
Identification number and signed request for a transfer or
surrender to:
Regular mail:
IDS Life Insurance Company
IDS Tower 10
Minneapolis, MN 55440-0010
Express mail:
IDS Life Insurance Company
733 Marquette Avenue
Minneapolis MN 55402
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Minimum amount
Mail transfers: $250 or entire account balance
Mail surrenders: none
Maximum amount
Mail transfers: none-up to contract value
Mail surrenders: none-up to contract value
2 By phone
Call between 7 a.m. and 6 p.m. Central time:
1-800-437-0602 (toll free) or
(612) 671-1888 (Minneapolis/St. Paul area)
Minimum amount
Phone transfers: $250 or entire account balance
Phone surrenders: $100
Maximum amount
Phone transfers: none - up to contract value
Phone surrenders: $50,000
TTY service for the hearing impaired:
1-800-285-8846 (toll free) or
(612) 671-4695 (Minneapolis/St. Paul area)
We answer phone requests promptly, but you may experience delays
when the call volume is unusually high. If you are unable to get
through, use the mail procedure as an alternative.
o We will honor any telephone transfer or surrender request
believed to be authentic and will use reasonable procedures to
confirm that they are. This includes asking identifying
questions and tape recording calls. As long as the procedures
are followed, neither IDS Life nor its affiliates will be
liable for any loss resulting from fraudulent requests.
o You may request that telephone withdrawals not be authorized
from your account by writing IDS Life.
3 By automated transfers and automated partial surrenders
o Your financial planner can help you set up automated transfers
among your accounts or partial surrenders from the accounts.
You can start or stop this service by written request or other
method acceptable to IDS Life. You must allow 30 days for IDS Life
to change any instructions that are currently in place.
o Automated transfers from the fixed to variable account(s) may
not exceed an amount that, if continued, would deplete the fixed
account within 12 months.
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o Automated transfers and automated partial surrenders are subject
to all of the contract provisions and terms, including transfer
of contract values between accounts. Automated surrenders may
be restricted by applicable law under some contracts.
o You may not make additional purchase payments if automated
partial surrenders are in effect.
o Automated partial surrenders may result in IRS taxes and
penalties on all or part of the amount surrendered.
Minimum amount
Automated transfers or surrenders: $50
Maximum amount
Automated transfers or surrenders: None - except for automated
transfers from the fixed
account
Surrendering your contract
As owner, you may surrender all or part of your contract at any
time before annuity payouts begin by sending a written request or
calling IDS Life. For total surrenders we will compute the value
of your contract at the close of business after we receive your
request. We may ask you to return the contract. You may have to
pay surrender charges (see "Surrender charge") and IRS taxes and
penalties (see "Taxes"). No surrenders may be made after annuity
payouts begin.
Surrender policies
If you have a balance in more than one account and request a
partial surrender, we will withdraw money from all your accounts in
the same proportion as your value in each account correlates to
your total contract value, unless you request otherwise.
Receiving payment when you request a surrender
By regular or express mail:
o Payable to owner.
o Normally mailed to address of record within seven days after
receiving your request. However, we may postpone the payment
if:
-the surrender amount includes a purchase payment check that
has not cleared;
-the NYSE is closed, except for normal holiday and weekend
closings;
-trading on the NYSE is restricted, according to SEC rules;
-an emergency, as defined by SEC rules, makes it impractical
to sell securities or value the net assets of the accounts; or
-the SEC permits us to delay payment for the protection of
security holders.
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Note: The express mail delivery charges you pay will vary. The
express mailing cost for partial surrenders is deducted from
remaining balance whereas the express mailing cost for full
surrenders is deducted from proceeds.
Special surrender provisions
Participants in Tax-Sheltered Annuities: The Code imposes certain
restrictions on your right as owner to receive early distributions
from a TSA:
o Distributions attributable to salary reduction contributions
made after Dec. 31, 1988, plus the earnings on them, or to
transfers or rollovers of such amounts from other contracts, may
be made from the TSA only if:
-you have attained age 59 1/2;
-you have become disabled as defined in the Code;
-you have separated from the service of the employer who
purchased the annuity; or
-the distribution is made to your beneficiary because of your
death.
o If you encounter a financial hardship (within the meaning of the
Code), you may receive a distribution of all contract values
attributable to salary reduction contributions made after Dec.
31, 1988, but not the earnings on them.
o Even though a distribution may be permitted under the above
rules, it still may be subject to IRS taxes and penalties. (See
"Taxes.")
o The above restrictions on the right to receive a distribution do
not affect the availability of the amount credited to the
contract as of Dec. 31, 1988. The restrictions do not apply to
transfers or exchanges of contract value within the annuity, or
to another registered variable annuity contract or investment
vehicle available through the employer.
o If the contract has a loan provision, the right to receive a
loan from your fixed account continues to exist and is described
in detail in your contract. You may borrow from the contract
value allocated to the fixed account.
o For certain types of contributions under a TSA contract to be
excluded from taxable income, the employer must comply with
certain nondiscrimination requirements. You should consult your
employer to determine whether the nondiscrimination rules apply
to you.
Participation in the Portland Public Schools TSA program: IDS Life
will guarantee that your fixed account surrender value will not be
less than the purchase payments paid, less any amounts previously
surrendered, provided:
o all purchase payments under the contract have been allocated
only to the fixed account; and
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o there have been no transfers of fixed account contract values to
any variable account. If payments are allocated to a variable
account or monies are transferred from the fixed account to a
variable account, the guarantee does not apply.
Participants in the Texas Optional Retirement Program: You cannot
receive any distribution before retirement unless you become
totally disabled or end your employment at a Texas college or
university. This restriction affects your right to:
o surrender all or part of your annuity at any time; and
o move up your retirement date.
If you are in the program for only one year, the portion of the
purchase payments made by the state of Texas will be refunded to
the state with no surrender charge. These restrictions are based
on an opinion of the Texas Attorney General interpreting Texas law.
Changing ownership
You may change ownership of your non-qualified annuity at any time
by filing a change of ownership with us at our Minneapolis office.
The change will become binding upon us when we receive and record
it. We take no responsibility for the validity of the change.
If you have a non-qualified annuity, you may lose your tax
advantages by transferring, assigning or pledging any part of it.
(See "Taxes".)
If you have a qualified annuity, you may not sell, assign,
transfer, discount or pledge your contract as collateral for a
loan, or as security for the performance of an obligation or for
any other purpose to any person except IDS Life. However, if the
owner is a trust or custodian, or an employer acting in a similar
capacity, ownership of a contract may be transferred to the
annuitant.
Benefits in case of death
If you or the annuitant dies (or, for qualified annuities, if the
annuitant dies) before annuity payouts begin, we will pay the
beneficiary as follows.
For contracts issued in all states except Oregon, Texas and
Washington:
If death occurs before the annuitant's 75th birthday, the
beneficiary receives the greatest of:
o the contract value;
o the contract value as of the most recent 6th contract
anniversary, minus any surrenders since that anniversary; or
o purchase payments, minus any surrenders.
If death occurs on or after the annuitant's 75th birthday, the
beneficiary receives the greatest of:
o the contract value; or
o the contract value as of the most recent 6th contract
anniversary, minus any surrenders since that anniversary.
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For contracts issued in Oregon, Texas and Washington:
If death occurs before the annuitant's 75th birthday, the
beneficiary receives the greatest of:
o purchase payments minus any surrenders; or
o the contract value.
If death occurs on or after the annuitant's 75th birthday, the
beneficiary receives
o the contract value.
If your spouse is sole beneficiary under a non-qualified annuity
and you die before the retirement date, your spouse may keep the
annuity as owner. To do this your spouse must, within 60 days
after we receive proof of death, give us written instructions to
keep the contract in force.
Under a qualified annuity, if the annuitant dies before reaching
age 70 1/2 and before the retirement date, and the spouse is the
only beneficiary, the spouse may keep the annuity in force until
the date on which the annuitant would have reached age 70 1/2. To
do this, the spouse must give us written instructions within 60
days after we receive proof of death.
Payments: We will pay the beneficiary in a single sum unless you
have given us other written instructions, or the beneficiary may
receive payouts under any annuity payout plan available under this
contract if:
o the beneficiary asks us in writing within 60 days after we
receive proof of death;
o payouts begin no later than one year after death; and
o the payout period does not extend beyond the beneficiary's life
or life expectancy.
When paying the beneficiary, we will determine the contract's value
at the next close of business after our death claim requirements
are fulfilled. Interest, if any, will be paid from the date of
death at a rate no less than required by law. We will mail payment
to the beneficiary within seven days after our death claim
requirements are fulfilled. (See "Taxes.")
The annuity payout period
As owner of the contract, you have the right to decide how and to
whom annuity payouts will be made starting at the retirement date.
You may select one of the annuity payout plans outlined below, or
we will mutually agree on other payout arrangements. The amount
available for payouts under the plan you select is the contract
value on your retirement date. No surrender charges are deducted
under the payout plans listed below.
You also decide whether annuity payouts are to be made on a fixed
or variable basis, or a combination of fixed and variable. Amounts
of fixed and variable payouts depend on:
o the annuity payout plan you select;
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o the annuitant's age and, in most cases, sex;
o the annuity table in the contract;
o the amounts you allocated to the account(s) at settlement.
In addition, for variable payouts only, amounts depend on the
investment performance of the account(s) you select. These payouts
will vary from month to month because the performance of the
underlying mutual funds will fluctuate. (In the case of fixed
annuities, payouts remain the same from month to month.)
Annuity payout plans
You may choose any one of these annuity payout plans by giving us
written instructions at least 30 days before contract values are to
be used to purchase the payout plan:
o Plan A - Life annuity - no refund: Monthly payouts are made
until the annuitant's death. Payouts end with the last payout
before the annuitant's death; no further payouts will be made.
This means that if the annuitant dies after only one monthly payout
has been made, no more payouts will be made.
o Plan B - Life annuity with five, ten or fifteen years certain:
Monthly payouts are made for a guaranteed payout period of five,
ten or fifteen years that the annuitant elects. This election will
determine the length of the payout period to the beneficiary if the
annuitant should die before the elected period has expired. The
guaranteed payout period is calculated from the retirement date.
If the annuitant outlives the elected guaranteed payout period,
payouts will continue until the annuitant's death.
o Plan C - Life annuity - installment refund: Monthly payouts are
made until the annuitant's death, with our guarantee that payouts
will continue for some period of time. Payouts will be made for at
least the number of months determined by dividing the amount
applied under this option by the first monthly payout, whether or
not the annuitant is living.
o Plan D - Joint and last survivor life annuity - no refund:
Monthly payouts are made to the annuitant and a joint annuitant
while both are living. If either annuitant dies, monthly payouts
continue at the full amount until the death of the surviving
annuitant. Payouts end with the death of the second annuitant.
o Plan E - Payouts for a specified period (available as a fixed
payout only): Monthly payouts are made for a specific payout
period of 10 to 30 years chosen by the annuitant. Payouts will be
made only for the number of years specified whether the annuitant
is living or not. Depending on the time period selected, it is
foreseeable that an annuitant can outlive the payout period
selected. In addition, a 10% IRS penalty tax could apply under
this payout plan. (See "Taxes".)
Retrictions for some qualified plans: If you purchased a qualified
annuity, you must select a payout plan that provides for payouts:
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o over the life of the annuitant;
o over the joint lives of the annuitant and a designated
beneficiary;
o for a period not exceeding the life expectancy of the
annuitant; or
o for a period not exceeding the joint life expectancies
of the annuitant and a designated beneficiary.
If we do not receive instructions: You must give us written
instructions for the annuity payouts at least 30 days before the
annuitant's retirement date. If you do not, we will make payouts
under Plan B, with 120 monthly payouts guaranteed.
If monthly payouts would be less than $20: We will calculate the
amount of monthly payouts at the time the contract value is used to
purchase a payout plan. If the calculations show that monthly
payouts would be less than $20, we have the right to pay the
contract value to the owner in a lump sum.
Death after annuity payouts begin
If you or the annuitant dies after annuity payouts begin, any
amount payable to the beneficiary will be provided in the annuity
payout plan in effect.
Transfers between accounts after annuity payouts begin
After the annuity payouts begin, you may transfer the value of your
annuity from one variable account to another once each contract
year. You must send us written instructions to do this. We will
make the transfer at the next close of business after we receive
your instructions.
Taxes
Generally, under current law, any increase in your contract value
is not taxable until you receive a payout or surrender. (See
detailed discussion below.) Any portion of the annuity payouts and
any surrenders you request that represent ordinary income are
normally taxable. You will receive a 1099 tax information form for
any year in which a taxable distribution was made.
Annuity payouts under non-qualified annuities: A portion of each
payout will be ordinary income and subject to tax, and a portion of
each payout will be considered a return of part of your investment
and will not be taxed. All amounts received after your investment
in the annuity is fully recovered will be subject to tax.
Tax law requires that all non-qualified deferred annuity contracts
issued by the same company to the same owner during a calendar year
are to be taxed as a single, unified contract when distributions
are taken from any one of such contracts.
Annuity payouts under qualified annuities: Under a qualified
annuity, the entire payout generally will be includable as ordinary
income and subject to tax except to the extent that contributions
were made with after-tax dollars. If you or your employer invested
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in your contract with pre-tax dollars as part of a qualified
retirement plan, such amounts are not considered to be part of your
investment in the contract and will be taxed when paid to you.
Surrenders: If you surrender part or all of your contract before
your annuity payouts begin, your surrender payment will be taxed to
the extent that the value of your contract exceeds your investment.
You also may have to pay a 10% IRS penalty for surrenders before
reaching age 59 1/2. For qualified annuities, other penalties may
apply if you surrender your annuity before your plan specifies that
you can receive payouts.
Death benefits to beneficiaries: The death benefit under an
annuity is not tax exempt. Any amount received by the beneficiary
that represents previously deferred earnings within the contract,
is taxable as ordinary income to the beneficiary in the year(s) he
or she receives the payments.
Annuities owned by corporations, partnerships or trusts: Any
annual increase in the value of annuities held by such entities
generally will be treated as ordinary income received during that
year. This provision is effective for purchase payments made after
Feb. 28, 1986. However, if the trust was set up for the benefit of
a natural person only, the income will continue to be tax-deferred.
Penalties: If you receive amounts from your contract before
reaching age 59 1/2, you may have to pay a 10% IRS penalty on the
amount includable in your ordinary income. However, this penalty
will not apply to any amount received by you or your beneficiary:
o because of your death;
o because you become disabled (as defined in the Code);
o if the distribution is part of a series of substantially equal
periodic payments, made at least annually, over your life or
life expectancy (or joint lives or life expectancies of you and
your beneficiary); or
o if it is allocable to an investment before Aug. 14, 1982 (except
for qualified annuities).
For a qualified annuity, other penalties or exceptions may apply if
you surrender your annuity before your plan specifies that payouts
can be made.
Withholding, generally: If you receive all or part of the contract
value from an annuity, withholding may be imposed against the
taxable income portion of the payment. Any withholding that is
done represents a prepayment of your tax due for the year. You
take credit for such amounts on the annual tax return that you
file.
If the payout is part of an annuity payout plan the amount of
withholding generally is computed using payroll tables. You can
provide us with a statement of how many exemptions to use in
calculating the withholding. As long as you've provided us with a
valid Social Security number or Taxpayer Identification number, you
can elect not to have any withholding occur.
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If the distribution is any other type of payment (such as a partial
or full surrender) withholding is computed using 10% of the taxable
portion. Similar to above, as long as you've provided us with a
valid Social Security number or Taxpayer Identification number, you
can elect not to have this withholding occur.
Some states also impose withholding requirements similar to the
federal withholding described above.
Withholding from qualified annuities: If you receive directly all
or part of the contract value from a qualified annuity (except an
IRA), mandatory 20% income tax withholding generally will be
imposed at the time the payout is made. This mandatory withholding
is in place of the elective withholding discussed above. This
mandatory withholding will not be imposed if:
o instead of receiving the distribution check, you elect to have
the distribution rolled over directly to an IRA or another
eligible plan;
o the payout is one in a series of substantially equal periodic
payouts, made at least annually, over your life or life
expectancy (or the joint lives or life expectancies of you and
your beneficiary) or over a specified period of 10 years or
more; or
o the payment is a minimum distribution required under the Code.
Payments made to a surviving spouse instead of being directly
rolled over to an IRA may also be subject to 20% mandatory income
tax withholding.
State withholding also may be imposed on taxable distributions.
Transfer of ownership of a non-qualified annuity: If you make such
a transfer without receiving adequate consideration, the transfer
is considered a gift, and also may be considered a surrender for
federal income tax purposes. If the gift is a currently taxable
event, the amount of the earnings at the time of the transfer will
be taxed to the original owner, who also may be subject to a 10%
IRS penalty as discussed earlier. In this case, the new owner's
investment in the annuity will be the value of the annuity at the
time of the transfer.
Exchanges: Code section 1035 generally provides that no gain or
loss is recognized on the exchange of one annuity contract for
another annuity contract. If the old contract contained premium
payments made prior to Aug. 14, 1982, the tax rules which
previously applied to that investment will continue to apply.
However, not all characteristics of the old contract carry forward
to your new contract. The IRS 10% penalty and required
distribution-at-death rules may apply to your new contract.
Special rules and procedures must be followed in order to take
advantage of Code section 1035. If you consider such a
transaction, you should consult your tax advisor before preceeding.
Collateral assignment of a non-qualified annuity: If you
collaterally assign or pledge your contract, earnings on purchase
payments you made on or after Aug. 13, 1982 will be taxed to you
like a surrender.
<PAGE>
PAGE 30
Important: Our discussion of federal tax laws is based upon our
understanding of these laws as they are currently interpreted.
Federal tax laws or current interpretations of them may change.
For this reason and because tax consequences are complex and highly
individual and cannot always be anticipated, you should consult a
tax adviser if you have any questions about taxation of your
contract.
Voting rights
As contract owner with investments in the variable account(s), you
may vote on important mutual fund policies until annuity payouts
begin. Once they begin, the person receiving them has voting
rights. We will vote fund shares according to the instructions of
the person with voting rights.
Before annuity payouts begin, the number of votes you have is
determined by applying your percentage interest in each variable
account to the total number of votes allowed to the account.
After payouts begin, the number of votes you have is equal to:
o the reserve held in each account for your contract, divided by
o the net asset value of one share of the applicable underlying
mutual fund.
As we make annuity payouts, the reserve for the contract decreases;
therefore, the number of votes also will decrease.
We calculate votes separately for each account not more than 60
days before a shareholders' meeting. Notice of these meetings,
proxy materials and a statement of the number of votes to which the
voter is entitled, will be sent.
We will vote shares for which we have not received instructions in
the same proportion as the votes for which we have received
instructions. We also will vote the shares for which we have
voting rights in the same proportion as the votes for which we have
received instructions.
About IDS Life
The Flexible Annuity is issued by IDS Life, a wholly owned
subsidiary of IDS, which itself is a wholly owned subsidiary of the
American Express Company (American Express), a financial services
company headquartered in New York City.
IDS Life is a stock life insurance company organized in 1957 under
the laws of the State of Minnesota and located at IDS Tower 10,
Minneapolis, MN 55440-0010. IDS Life conducts a conventional life
insurance business in the District of Columbia and all states
except New York.
The IDS family of companies offers not only insurance and
annuities, but also mutual funds, investment certificates and a
broad range of financial management services.
<PAGE>
PAGE 31
As a subsidiary of IDS, IDS Life is part of a 100-year tradition of
excellent service and responsible financial management. Today, the
IDS group of companies owns or manages assets of more than __
billion.
IDS Financial Services Inc., serves individuals and businesses
through its nationwide network of more than ___ offices and more
than _____ planners.
Other subsidiaries provide investment management and related
services for pension, profit-sharing, employee savings and
endowment funds of businesses and institutions.
Regular and special reports
Services
To help you track and evaluate the performance of your annuity, IDS
Life provides:
Quarterly statements showing the value of your investment.
Annual reports containing required information on the annuity and
its underlying investments.
A personalized annuity progress report detailing the cumulative
return since the contract was purchased and the average annual rate
of return on your investments. This report, which is unique in the
industry, is available upon request from your financial planner.
Table of contents of the Statement of Additional Information
IDS Preferred Retirement Account..............p.
Performance information.......................p.
Rating agencies...............................p.
Principal underwriter.........................p.
Independent auditors..........................p.
Prospectus....................................p.
Financial statements -
IDS Life Accounts F, IZ, JZ, G, H and N...........p.
IDS Life Insurance Company........................p.
___________________________________________________________________
Please check the appropriate box to receive a copy of the Statement
of Additional Information for:
_____ IDS Life Flexible Annuity
_____ IDS Life Retirement Annuity Mutual Funds
<PAGE>
PAGE 32
Please return this request to:
IDS Life Insurance Company
IDS Tower 10
Minneapolis, MN 55440-0010
Your name _______________________________________________________
Address _________________________________________________________
City ______________________ State ______________ Zip ___________
<PAGE>
PAGE 33
STATEMENT OF ADDITIONAL INFORMATION
for
FLEXIBLE ANNUITY
IDS LIFE ACCOUNTS F, IZ, JZ, G, H and N
April 29, 1994
IDS Life Accounts F, IZ, JZ, G, H and N are separate accounts
established and maintained by IDS Life Insurance Company (IDS
Life).
This Statement of Additional Information, dated April 29, 1994, is
not a prospectus. It should be read together with the Accounts'
prospectus, dated April 29, 1994, which may be obtained from your
IDS financial planner, or by writing or calling IDS Life at the
address or telephone number below.
IDS Life Insurance Company
P10/199
P.O. Box 74
Minneapolis, MN 55440-0074
612-671-3131
<PAGE>
PAGE 34
TABLE OF CONTENTS
IDS Preferred Retirement Account..............................p. 3
Performance Information.......................................p. 4
Calculating Annuity Payouts...................................p. 6
Rating Agencies...............................................p. 8
Principal Underwriter.........................................p. 9
Independent Auditors..........................................p. 9
Prospectus....................................................p. 9
Financial Statements
- IDS Life Accounts F, IZ, JZ, G, H and N...........p.
- IDS Life Insurance Company........................p.
<PAGE>
PAGE 35
IDS PREFERRED RETIREMENT ACCOUNT
The Flexible Annuity may be used to fund the IDS Preferred
Retirement Account (PRA) as a way to build tax-deferred retirement
income. The PRA can be used to supplement, or as an alternative
to, a non-deductible IRA or other retirement plan.
The advantages of the IDS Preferred Retirement Account over a
non-deductible IRA are shown below:
IDS Preferred Non-deductible
Retirement IRA
Account
_____________________________________________________________
Maximum $1 million initially, $2,000 per year
amount you then $50,000 per (only $250 for
can year (spouse can non-working spouse)
contribute have own plan and
also contribute
$50,000, whether
or not employed)
______________________________________________________________
Highest age The later of age 85 70 1/2 years old
you can or the 10th contract
contribute anniversary
______________________________________________________________
Types of Any type: wages, Generally limited
income you investment income, to income from
can gifts, inheritance, employment
contribute etc.
______________________________________________________________
Records None required, but You must keep all
you must IDS furnishes you records yourself
keep regular reports
for your files
______________________________________________________________
Reports you None You must report all
must file contributions and
with the withdrawals each
IRS year
______________________________________________________________
Age at which The later of age 85 70 1/2 years old
you must or the 10th contract
begin anniversary
withdrawals
______________________________________________________________
<PAGE>
PAGE 36
PERFORMANCE INFORMATION
Calculation of yield for Account H
IDS Life Account H, which invests in IDS Life Moneyshare Fund,
Inc., calculates an annualized simple yield and a compound yield
based on a seven-day period.
The simple yield is calculated by determining the net change in the
value of a hypothetical account having the balance of one
accumulation unit at the beginning of the seven-day period. (The
net change does not include capital change, but does include a pro
rata share of the annual contract charges, including the annual
contract administrative charge and the mortality and expense risk
fee.) The net change in the account value is divided by the value
of the account at the beginning of the period to obtain the return
for the period. That return is then multiplied by 365/7 to obtain
an annualized figure. The value of the hypothetical account
includes the amount of any declared dividends, the value of any
shares purchased with any dividend paid during the period and any
dividends declared for such shares. The variable account's
(account) yield does not include any realized or unrealized gains
or losses, nor does it include the effect of any applicable
surrender charge.
The account calculates its compound yield according to the
following formula:
Compound Yield = [(return for seven-day period +1) 365/7] - 1
On Dec. 31, 1993, the account's annualized yield was ___% and its
compound yield was ___%.
The rate of return, or yield, on the account's accumulation unit
may fluctuate daily and does not provide a basis for determining
future yields. Investors must consider, when comparing an
investment in Account H with fixed annuities, that fixed annuities
often provide an agreed-to or guaranteed fixed yield for a stated
period of time, whereas the account's yield fluctuates. In
comparing the yield of Account H to a money market fund, you should
consider the different services that the annuity provides.
Calculation of yield for non-money market accounts
For an account other than the money market account, quotations of
yield will be based on all investment income earned during a
particular 30-day period, less expenses accrued during the period
(net investment income) and will be computed by dividing net
investment income per accumulation unit by the value of an
accumulation unit on the last day of the period, according to the
following formula:
YIELD = 2[(a-b + 1)6 - 1]
cd
<PAGE>
PAGE 37
where: a = dividends and investment income earned during the
period.
b = expenses accrued for the period (net of
reimbursements).
c = the average daily number of accumulation units
outstanding during the period that were entitled to
receive dividends.
d = the maximum offering price per accumulation unit on
the last day of the period.
Yield on the account is earned from the increase in the net asset
value of shares of the fund in which the account invests and from
dividends declared and paid by the fund, which are automatically
invested in shares of the fund.
Calculation of average annual total return
Quotations of average annual total return for an account will be
expressed in terms of the average annual compounded rate of return
of a hypothetical investment in the annuity contract over a period
of one, five and 10 years (or, if less, up to the life of the
account), calculated according to the following formula:
P(1+T)n = ERV
where: P = a hypothetical initial payment of $1,000.
T = average annual total return.
n = number of years.
ERV = Ending Redeemable Value of a hypothetical $1,000
payment made at the beginning of the one, five,
or ten year (or other) period at the end of the
one, five, or ten year (or other) period (or
fractional portion thereof).
Account total return figures reflect the deduction of the contract
administrative charge and mortality and expense risk fee.
Performance figures will be shown with and may be shown without the
deduction of a surrender charge. The Securities and Exchange
Commission requires that an assumption be made that the contract
owner surrenders the entire contract at the end of the one, five
and ten year periods (or, if less, up to the life of the account)
for which performance is required to be calculated.
Aggregate Total Return
Aggregate total return represents the cumulative change in the net
asset value of shares of the fund in which the account invests over
a specified period of time and is computed by the following
formula:
<PAGE>
PAGE 38
ERV - P
P
where: P = a hypothetical initial payment of $1,000.
ERV = Ending Redeemable Value of a hypothetical $1,000
payment made at the beginning of the one, five,
or ten year (or other) period at the end of the
one, five, or ten year (or other) period (or
fractional portion thereof).
Performance of the accounts may be quoted or compared to rankings,
yields, or returns as published or prepared by independent rating
or statistical services or publishers or publications such as The
Bank Rate Monitor National Index, Barron's, Business Week,
Donoghue's Money Market Fund Report, Financial Services Week,
Financial Times, Financial World, Forbes, Fortune, Global Investor,
Institutional Investor, Investor's Daily, Kiplinger's Personal
Finance, Lipper Analytical Services, Money, Mutual Fund Forecaster,
Newsweek, The New York Times, Personal Investor, Stanger Report,
Sylvia Porter's Personal Finance, USA Today, U.S. News and World
Report, The Wall Street Journal and Wiesenberger Investment
Companies Service.
CALCULATING ANNUITY PAYOUTS
The Variable Account
The following calculations are done separately for each of the
variable accounts. The separate monthly payouts, added together,
make up your total variable annuity payout.
Initial Payout: To compute your first monthly payment, we:
o determine the dollar value of your annuity as of the valuation
date seven days before the retirement date and then deduct any
applicable premium tax.
o apply the result to the annuity table contained in the contract
or another table at least as favorable. The annuity table shows
the amount of the first monthly payment for each $1,000 of value
which depends on factors built into the table, as described below.
Annuity Units: The value of your account is then converted to
annuity units. To compute the number credited to you, we divide
the first monthly payment by the annuity unit value (see below) on
the valuation date on (or next day preceding) the seventh calendar
day before the retirement date. The number of units in your
account is fixed. The value of the units fluctuate with the
performance of the underlying mutual fund.
Subsequent Payouts: To compute later payouts, we multiply:
o the annuity unit value on the valuation date on or immediately
preceding the seventh calendar day before the payout is due; by
o the fixed number of annuity units credited to you.
<PAGE>
PAGE 39
Annuity Table: The table shows the amount of the first monthly
payment for each $1,000 of contract value according to the age and,
when applicable, the sex of the annuitant. (Where required by law,
we will use a unisex table of settlement rates.) The table assumes
that the contract value is invested at the beginning of the annuity
payout period and earns a 5% rate of return, which is reinvested
and helps to support future payouts.
Substitution of 3.5% Table: If you ask us at least 30 days before
the retirement date, we will substitute an annuity table based on
an assumed 3.5% investment rate for the 5% table in the contract.
The assumed investment rate affects both the amount of the first
payout and the extent to which subsequent payouts increase or
decrease. Using the 5% table results in a higher initial payment,
but later payouts will increase more slowly when annuity unit
values are rising and decrease more rapidly when they are
declining.
Annuity Unit Values: This value was originally set at $1 for each
variable account. To calculate later values we multiply the last
annuity value by the product of:
o the net investment factor; and
o the neutralizing factor. The purpose of the neutralizing factor
is to offset the effect of the assumed investment rate built into
the annuity table. With an assumed investment rate of 5%, the
neutralizing factor is 0.999866 for a one day valuation period.
Net Investment Factor:
o Determined each business day by adding the underlying mutual
fund's current net asset value per share plus per share amount of
any current dividend or capital gain distribution; then
o dividing that sum by the previous net asset value per share; and
o subtracting the percentage factor representing the mortality and
expense risk fee from the result.
Because the net asset value of the underlying mutual fund may
fluctuate, the net investment factor may be greater or less than
one, and the accumulation unit value may increase or decrease. You
bear this investment risk in a variable account.
The Fixed Account
Your fixed annuity payout amounts are guaranteed. Once calculated,
your payout will remain the same and never change. To calculate
your annuity payouts we:
o take the value of your fixed account at the retirement date or
the date you have selected to begin receiving your annuity payouts;
then
o using an annuity payout table we apply the value according to
the annuity payout plan you select; and
o the annuity payout table we use will be the one in effect at the
time you choose to begin your annuity payouts. The table will be
equal to or greater than the table in your contract.
<PAGE>
PAGE 40
RATING AGENCIES
The following chart provides information on the relevance of
ratings* given to IDS Life by independent rating agencies that
evaluate the financial soundness of insurance companies. IDS Life
has one of the most liquid and highest quality balance sheets of
the largest insurance companies in the industry.**
Rating Agency Rating Relevance of Rating
A.M. Best A+ Reflects A.M. Best's opinion
(Superior) regarding IDS Life's strong
distribution network, favorable
overall balance sheet profile,
consistently improving
profitability, adequate level of
capitalization and asset-liability
management expertise.
Duff & Phelps AAA Reflects Duff & Phelps' opinion
regarding IDS Life's consistently
excellent profitability record,
stable operating leverage,
leadership position in chosen
markets and effective use of
asset/liability management
techniques.
Moody's Aa2 Reflects Moody's opinion regarding
IDS Life's leadership position in
financial planning, strong
asset/liability management and
good capitalization. IDS Life has
a strong market focus, and it
greatly emphasizes quality
service.
A.M. Best rates over 1,600 insurance companies on a 15 level scale
with letters ranging from A++ to F to "NA" ratings based on a
company's financial strength and claims paying ability.
Duff & Phelps rates over 125 companies for claims-paying ability
with 19 rating categories from AAA to CCC-.
Moody's rates over 80 companies for financial strength with 19
rating categories ranging from Aaa to C.
* Ratings relate to IDS Life's ability to fulfill its obligations
under its contracts and not to the management or performance of the
separate accounts.
** Measured by comparing the 15 largest life insurance companies'
investments in below investment grade (junk) bonds, mortgages and
real estate to a percentage of those companies' total assets.
<PAGE>
PAGE 41
PRINCIPAL UNDERWRITER
The principal underwriter for the accounts is IDS Life which offers
the variable annuities on a continuous basis.
Surrender charges received by IDS Life for 1993, 1992 and 1991,
aggregated $_________, $3,649,836 and $3,264,084, respectively.
Commissions paid by IDS Life for 1993, 1992 and 1991, aggregated
$__________, $10,334,092 and $5,205,239, respectively. The
surrender charges were applied toward payment of commissions.
INDEPENDENT AUDITORS
The Financial Statements of the accounts and of IDS Life appearing
in this Statement of Additional Information, have been audited by
Ernst & Young, independent auditors, 1400 Pillsbury Center,
Minneapolis, MN 55402, to the extent indicated in their reports.
Ernst & Young are experts in accounting and auditing.
PROSPECTUS
The prospectus dated April 29, 1994, is hereby incorporated in this
Statement of Additional Information by reference.
<PAGE>
PAGE 42
PART C.
Item 24. Financial Statements and Exhibits
(a) To be filed by amendment.
(b) Exhibits:
1.1 Resolution of the Executive Committee of the Board of
Directors of IDS Life adopted May 13, 1981, filed
electronically herewith.
1.2 Resolution of the Board of Directors of IDS Life establishing
Account N on April 17, 1985, filed electronically herewith.
1.3 Resolution of the Board of Directors of IDS Life establishing
Account IZ and Account JZ on Sept. 20, 1991, filed
electronically herewith.
2. Not applicable.
3. Not applicable.
4.1 Copy of Qualified Deferred Annuity Contract (form 30307) filed
electronically herewith.
4.2 Copy of Non-Qualified Deferred Annuity Contract (form 30302D)
filed electronically herewith.
4.3 Copy of Deferred Annuity Contract (IRA) (form 30307) filed
electronically herewith.
5.1 Form of Application for IDS Life Deferred Variable Annuity
Contract (form 34512), filed as exhibit 10 to Post-Effective
Amendment No. 2 to Registration Statement 2-73114 is
incorporated herein by reference.
5.2 Copy of Application for IDS Flexible Annuity Contract, filed
as exhibit 5(b) to Registration Statement 33-4173 is
incorporated herein by reference.
6.1 Copy of Articles of Incorporation of IDS Life filed as exhibit
6(a) to INOVEST I Registration Statement* is incorporated
herein by reference.
6.2 Copy of Amendment to By-Laws of IDS Life filed as exhibit 6(b)
to INOVEST I Registration Statement*, filed as exhibit 6(b) to
Post-Effective Amendment No. 6 to Registration Statement 2-
73114, is incorporated herein by reference.
7. Not applicable.
8. Not applicable.
9. Opinion of counsel and consent to its use as to the legality
of the securities being registered will be filed with
Registrant's 24f-2 Notice on or about February 25, 1994.
<PAGE>
PAGE 43
10. Consent of Independent Auditors to be filed by amendment.
11. Not applicable.
12. Not applicable.
13. Not applicable.
14.1 Financial Data Schedule to be filed by amendment.
14.2 Power of Attorney dated April 23, 1990, filed as exhibit 14 to
Post-Effective Amendment No. 5 to Registration Statement No.
33-4173.
14.3 Power of Attorney dated April 1, 1993, filed as exhibit 14 to
Post-Effective Amendment No. 10, to Registration Statement No.
33-4173.
*"INOVEST I Registration Statement" refers to the Registration
Statement on Form N-8B-2 of IDS Life Account C, IDS Life Account D
and IDS Life Account E (File No. 811-3195) filed May 29, 1981.
<PAGE>
PAGE 44
Item 25. Directors and Officers of the Depositor
<TABLE>
<CAPTION>
Positions and Positions and
Name & Principal Offices with Name & Principal Offices with
Business Address Depositor Business Address Depositor
<S> <C> <C> <C>
Timothy V. Bechtold Vice President, Ryan R. Larson Vice President,
IDS Tower 10 Ins. Product IDS Tower 10 Annuity Product
Minneapolis, MN Development Minneapolis, MN Development
David J. Berry Vice President James A. Mitchell Director; President
IDS Tower 10 IDS Tower 10 and Chief Executive
Minneapolis, MN Minneapolis, MN Officer
John L. Burbidge Vice President Patricia A. Mitshulis Vice President,
IDS Tower 10 IDS Tower 10 Real Estate Loan
Minneapolis, MN Minneapolis, MN Management
Alan R. Dakay Vice President, Mary O. Neal Vice President,
IDS Tower 10 Institutional IDS Tower 10 Sales Support
Minneapolis, MN Insurance Minneapolis, MN
Marketing
William H. Dudley Vice President James R. Palmer Vice President,
IDS Tower 10 IDS Tower 10 Taxes
Minneapolis, MN Minneapolis, MN
Lorraine R. Hart Vice President, ReBecca K. Roloff Director; Executive
IDS Tower 10 Investments IDS Tower 10 Vice President,
Minneapolis, MN Minneapolis, MN Operations
David R. Hubers Director William A. Smith Director
IDS Tower 10 IDS Tower 10
Minneapolis, MN Minneapolis, MN
Roger P. Husemoller Vice President, Jeffrey E. Stiefler Chairman of the
IDS Tower 10 Intercorporate IDS Tower 10 Board and Director
Minneapolis, MN Insurance Minneapolis, MN
Operations
Thomas J. Kelly Vice President, William A. Stoltzmann Vice President,
IDS Tower 10 Insurance IDS Tower 10 General Counsel
Minneapolis, MN New Business Minneapolis, MN and Secretary
Richard W. Kling Director; Jeffrey Sullivan Vice President
IDS Tower 10 Executive Vice IDS Tower 10 and Medical
Minneapolis, MN President, Minneapolis, MN Director
Marketing and
Products Melinda Urion Director, Vice
IDS Tower 10 President, Controller
Paul F. Kolkman Director; Minneapolis, MN and Treasurer
IDS Tower 10 Vice President,
Minneapolis, MN Finance Daniel J. Willis Vice President,
IDS Tower 10 Annuity New Business/
Christopher Kudrna Director; Vice Minneapolis, MN 1035 Services
IDS Tower 10 President, Systems
Minneapolis, MN and Technology
Development
/TABLE
<PAGE>
PAGE 45
Item 26. Persons Controlled by or Under Common Control with the
Depositor or Registrant
IDS Life Insurance Company is a wholly owned subsidiary
of IDS Financial Corporation. IDS Financial Corporation
is a wholly owned subsidiary of American Express Company
(American Express).
The following list includes the names of major
subsidiaries of American Express.
Jurisdiction
Name of Subsidiary of Incorporation
I. Travel Related Services
American Express Travel Related New York
Services Company, Inc.
II. International Banking Services
American Express Bank Ltd. Connecticut
III. Investment Services
Shearson Lehman Brothers Holdings Inc. Delaware
IV. Companies engaged in Investors Diversified
Financial Services
IDS Financial Corporation Delaware
IDS Certificate Company Delaware
Investors Syndicate Development Corp. Nevada
IDS Financial Services Inc. Delaware
IDS Securities Corporation Delaware
IDS Bank & Trust Minnesota
IDS Real Estate Services, Inc. Delaware
IDS Life Insurance Company Minnesota
IDS Life Insurance Company of New York New York
American Enterprise Life Insurance Company Indiana
IDS International, Inc. Delaware
IDS Fund Management Limited U.K.
IDS Insurance Agency of North Carolina Inc. North Carolina
IDS Insurance Agency of Arkansas Inc. Arkansas
IDS Insurance Agency of Alabama Inc. Alabama
IDS Insurance Agency of Massachusetts Inc. Massachusetts
IDS Insurance Agency of Nevada Inc. Nevada
IDS Insurance Agency of New Mexico Inc. New Mexico
IDS Insurance Agency of Utah Inc. Utah
IDS Insurance Agency of Wyoming Inc. Wyoming
IDS Advisory Group Inc. Minnesota
IDS Property Casualty Insurance Company Wisconsin
IDS Management Corporation Minnesota
IDS Futures Corporation Minnesota
<PAGE>
PAGE 46
Item 26. Persons Controlled by or Under Common Control with the
Depositor or Registrant (Continued)
Jurisdiction
Name of Subsidiary of Incorporation
IDS Cable Corporation Minnesota
IDS Realty Corporation Minnesota
IDS Partnership Services Corporation Minnesota
IDS Futures III Corporation Minnesota
IDS Cable II Corporation Minnesota
American Express Minnesota Foundation Minnesota
IDS Deposit Corp. Utah
IDS Sales Support Inc. Minnesota
IDS Plan Services of California, Inc. Minnesota
American Enterprise Investment
Services, Inc. Minnesota
IDS Aircraft Services Corporation Minnesota
IDS Capital Holdings Inc. Minnesota
Mankato Ventures
Item 27. Number of Contractowners
On Jan. 31, 1994, there were 342,682 contract owners of
qualified Flexible Annuity contracts. There were 146,575
owners of non-qualified contracts.
Item 28. Indemnification
The By-Laws of the depositor provide that it shall
indemnify any person who was or is a party or is
threatened to be made a party, by reason of the fact that
he is or was a director, officer, employee or agent of
this Corporation, or is or was serving at the direction
of the Corporation as a director, officer, employee or
agent of another corporation, partnership, joint venture,
trust or other enterprise, to any threatened, pending or
completed action, suit or proceeding, wherever brought,
to the fullest extent permitted by the laws of the State
of Minnesota, as now existing or hereafter amended,
provided that this Article shall not indemnify or protect
any such director, officer, employee or agent against any
liability to the Corporation or its security holders to
which he would otherwise be subject by reason of willful
misfeasance, bad faith, or gross negligence, in the
performance of his duties or by reason of his reckless
disregard of his obligations and duties.
Item 29. Principal Underwriters
(a) IDS Life is the principal underwriter for IDS Life
Accounts F, IZ, JZ, G, H and N, IDS Life Variable
Annuity Fund A, IDS Life Variable Annuity Fund B,
IDS Life Account RE, IDS Life Account MGA and IDS
Life Account SLB.
(b) This table is the same as our response to Item 25 of
this Registration Statement.
<PAGE>
PAGE 47
<TABLE>
<CAPTION>
(c)
Name of Net Underwriting
Principal Discounts and Compensation on Brokerage Other
Underwriter Commissions Redemption Commissions Compensation
<S> <C> <C> <C> <C>
IDS Life None $4,408,562 None None
</TABLE>
Item 30. Location of Accounts and Records
IDS Life Insurance Company
IDS Tower 10
Minneapolis, MN
Item 31. Management Services
Not applicable.
Item 32. Undertakings
(a) (b) & (c) These undertakings were filed with the
Registrant's initial Registration Statements,
File No. 33-4173 and 811-3217.
(d) Registrant represents that it is relying upon
the no-action assurance given to the American
Council of Life Insurance (pub. avail. Nov. 28,
1989). Further, Registrant represents that it
has complied with the provisions of paragraphs
(1)-(4) of that no-action letter.
<PAGE>
PAGE 48
SIGNATURES
As required by the Securities Act of 1933 and the Investment
Company Act of 1940, IDS Life Insurance Company, on behalf of the
Registrant has caused this Registration Statement to be signed on
its behalf in the City of Minneapolis, and State of Minnesota, on
the 25th day of February, 1994.
IDS LIFE ACCOUNT F
IDS LIFE ACCOUNT IZ
IDS LIFE ACCOUNT JZ
IDS LIFE ACCOUNT G
IDS LIFE ACCOUNT H
IDS LIFE ACCOUNT N
(Registrant)
By IDS Life Insurance Company
(Sponsor)
By /s/ James A. Mitchell*
James A. Mitchell
President
As required by the Securities Act of 1933, this Registration
Statement has been signed by the following persons in the
capacities indicated on the 25th day of February, 1994.
Signature Title
/s/ James A. Mitchell* Director, President and Chief
James A. Mitchell Executive Officer
/s/ Richard W. Kling* Director and Executive Vice
Richard W. Kling President, Marketing and
Products
/s/ Paul F. Kolkman* Director and Vice President,
Paul F. Kolkman Finance
/s/ Melinda S. Urion** Director, Vice President,
Melinda S. Urion Controller and Treasurer
/s/ David R. Hubers* Director
David R. Hubers
/s/ Christopher R. Kudrna* Director and Vice President,
Christopher R. Kudrna Systems and Technology
Development
/s/ ReBecca K. Roloff* Director and Executive Vice
ReBecca K. Roloff President, Operations
<PAGE>
PAGE 49
Signature Title
___________________________ Director
William A. Smith
/s/ Jeffrey E. Stiefler** Director and Chairman of the
Jeffrey E. Stiefler Board
* Signed pursuant to Power of Attorney dated April 23, 1990, filed
as Exhibit 14 to Post-Effective Amendment No. 5 to Registration
Statement No. 33-4173.
** Signed pursuant to Power of Attorney dated April 1, 1993, filed
as Exhibit 14 to this Post-Effective Amendment No. 10 to
Registration Statement No. 33-4173.
___________________________
Mary Ellyn Minenko
<PAGE>
PAGE 50
CONTENTS OF REGISTRATION STATEMENT NO. 11
This Registration Statement is comprised of the following papers
and documents:
The Cover Page.
Cross-reference sheet.
Part A.
The prospectus.
Part B.
Statement of Additional Information.
Part C.
Other Information.
The signatures.
Exhibits.
<PAGE>
PAGE 1
IDS LIFE ACCOUNTS F, IZ, JZ, G, H & N
Registration Number 33-4173/811-3217
EXHIBIT INDEX
Exhibit 1.1 Resolution of the Executive Committee of the Board of
Directors of IDS Life.
Exhibit 1.2 Resolution of the Board of Directors of IDS Life
establishing Account N.
Exhibit 1.3 Resolution of the Board of Directors of IDS Life
establishing Account IZ and Account JZ.
Exhibit 4.1 Copy of Qualified Deferred Annuity Contract (form
30307).
Exhibit 4.2 Copy of Non-Qualified Deferred Annuity Contract (form
30302D).
Exhibit 4.3 Copy of Deferred Annuity Contract (IRA) (form 30307).
<PAGE>
PAGE 1
IDS LIFE INSURANCE COMPANY
MINUTES OF THE ANNUAL MEETING OF THE BOARD OF DIRECTORS
May 13, 1981
The Annual Meeting of the Board of Directors of IDS
Life Insurance Company, a Minnesota corporation, was held at 10:45
a.m., Wednesday, May 13, 1981, at the offices of the Corporation,
IDS Tower, Minneapolis, Minnesota, immediately following
adjournment of the Annual Meeting of Stockholders of the
Corporation, pursuant to written notice duly given.
Mr. W. D. Scott, Chairman of the Board, called the
meeting to order and presided as Chairman. Mr. D. H. Bruer,
Assistant Secretary of the Corporation, acted as Secretary of the
meeting. All members of the Board elected at said Annual Meeting
of Stockholders were present, except Messrs. Ceithaml and Haase,
together with Messrs. R. N. Latzer, Vice President, Investments,
and R. J. O'Brien, Vice President, General Counsel and Secretary,
of the Corporation.
Mr. Pickering directed the Board to a memorandum dated
May 1, 1981, and, after discussion, the following resolutions were
duly adopted:
WHEREAS, This Board of Directors has determined that it
is desirable for the Corporation to issue variable
annuity contracts, the values and benefits of which
will vary with the investment performance of certain
mutual funds ("the Funds") which the Corporation has
caused to be established, now, therefore, be it
RESOLVED, That the six separate accounts set forth
below are hereby established in accordance with Section
61A.14, Minnesota Statutes:
IDS Life Account C, to invest in shares of
IDS Life Capital Resource Fund I, Inc.
IDS Life Account D, to invest in shares of
IDS Life Special Income Fund I, Inc.
IDS Life Account E, to invest in the shares of
IDS Life Moneyshare Fund, Inc.
IDS Life Account F, to invest in the shares of
IDS Life Capital Resource Fund II, Inc.
IDS Life Account G, to invest in the shares of
IDS Life Special Income Fund II, Inc.
IDS Life Account H, to invest in the shares of
IDS Life Moneyshare Fund, Inc.
<PAGE>
PAGE 1
CONSENT IN WRITING IN LIEU
OF MEETING OF BOARD OF DIRECTORS
Pursuant to Section 300.20
of the Minnesota Statutues
TO THE SECRETARY OF
IDS LIFE INSURANCE COMPANY
As a member of the Board of Directors of IDS Life Insurance
Company, a Minnesota corporation, I hereby consent to and authorize
the adoption of the following resolutions by the Board of Directors
of said Corporation, to become effective at the time of your
receipt of executed counterparts hereof from all other members of
said Board of Directors:
WHEREAS, This Board of Directors has determined that it
is desirable for the Corporation to provide for the
acquisition of shares of IDS Life Managed Fund under
its variable annuity contracts, now, therefore, be it
RESOLVED, That the two separate accounts set forth
below are hereby established in accordance with Section
61A.14, Minnesota Statutes:
IDS Life Account M, to invest in shares of IDS
Life Managed Fund Inc.
IDS Life Account N, to invest in shares of IDS
Life Managed Fund Inc.
RESOLVED FURTHER, That the Unit Investment Trust
comprised of IDS Life Accounts C, D, and E is hereby
reconstituted as IDS Life Accounts C, D, E, and M; and
the Unit Investment Trust comprised of IDS Life
Accounts F, G, and H is hereby reconstituted as IDS
Life Accounts F, G, H and N.
RESOLVED FURTHER, That the proper officers of the
Corporation are hereby authorized and directed to
accomplish all filings and registrations necessary to
carry the foregoing into effect.
Executed this 17th day of April, 1985
/s/ Harvey Golub /s/ Earlon L. Milbrath
Harvey Golub Earlon L. Milbrath
/s/ Richard W. Kling /s/ Paul F. Kolkman
Richard W. Kling Paul F. Kolkman
/s/ James A. Mitchell
James A. Mitchell
<PAGE>
PAGE 2
Received by the Secretary
April 17 , 1985
/s/ Richard J. O'Brien
Secretary
Effective: April 17 , 1985
<PAGE>
PAGE 1
CONSENT IN WRITING IN LIEU
OF MEETING OF BOARD OF DIRECTORS
TO THE SECRETARY OF
IDS LIFE INSURANCE COMPANY
By this consent in writing in lieu of a meeting of the Board of
Directors of IDS Life Insurance Company, a Minnesota corporation,
we the Directors of said Corporation do hereby consent to and
authorize the adoption of the following resolution to be effective
immediately upon receipt by the Secretary of the Corporation:
WHEREAS, This Board of Directors has determined that it
is desirable for the Corporation to provide for the
acquisition of shares of IDS Life International Equity
Fund and IDS Life Aggressive Growth Fund under its
variable annuity contracts. Now, therefore, be it
RESOLVED, That the two separate accounts set forth
below are hereby established in accordance with Section
61A.14 of the Minnesota Statutes:
IDS Life Account IZ, to invest in shares of IDS
Life International Equity Fund; and
IDS Life Account JZ, to invest in shares of IDS
Life Aggressive Growth Fund.
RESOLVED FURTHER, That the proper officers of the
Corporation are hereby authorized to accomplish all
filings, registrations, and applications for exemptive
relief necessary to carry the foregoing into effect.
/s/ David R. Hubers /s/ Richard W. Kling
David R. Hubers Richard W. Kling
/s/ Paul F. Kolkman /s/ Christopher R. Kudrna
Paul F. Kolkman Christopher R. Kudrna
/s/ James A. Mitchell /s/ ReBecca K. Roloff
James A. Mitchell ReBecca K. Roloff
/s/ Jeffrey E. Stiefler
Jeffrey E. Stiefler
Received by the Secretary
September 20 , 1991
/s/ William A. Stoltzmann
William A. Stoltzmann
<PAGE>
PAGE 1
DEFERRED ANNUITY CONTRACT
- - Flexible purchase payments.
- - Optional fixed dollar or variable accumulation values and annuity
payments.
- - Annuity payments to begin on the retirement date.
- - This contract is nonparticipating. Dividends are not payable.
Annuitant: John Doe
Contract Number: 9310-1234567
Contract Date: October 1, 1993
Retirement Date: October 1, 2013
This is a deferred annuity contract. It is a legal contract
between you, as the owner, and us, IDS Life Insurance Company, a
Stock Company, Minneapolis, Minnesota. PLEASE READ YOUR CONTRACT
CAREFULLY.
If the annuitant is living on the Retirement Date, upon your
request, we will begin to pay you monthly annuity payments. Any
payments made by us are subject to the terms of this contract.
We issue this contract in consideration of your application and the
payment of the purchase payments.
Signed for and issued by IDS Life Insurance Company in Minneapolis,
Minnesota, as of the contract date shown above.
ACCUMULATION VALUES AND ANNUITY PAYMENTS, WHEN BASED ON THE
INVESTMENT RESULTS OF THE SEPARATE ACCOUNTS, ARE VARIABLE AND NOT
GUARANTEED AS TO FIXED DOLLAR AMOUNT. SEE PAGE 9 FOR VARIABLE
PROVISIONS.
NOTICE OF YOUR RIGHT TO EXAMINE THIS CONTRACT FOR 10 DAYS
If for any reason you are not satisfied with this contract, return
it to us or our representative within 10 days after you receive it.
We will then cancel this contract. Upon such cancellation we will
then cancel this contract. Upon such cancellation we will refund
an amount equal to the sum of: (1) the contract value; and (2) any
premium tax charges paid. This contract will then be considered
void from its start.
President
James A. Mitchell
Secretary
William A. Stoltzmann
<PAGE>
PAGE 2
GUIDE TO CONTRACT PROVISIONS
Definitions Important words and meanings/Page 3
General Provisions Entire contract; Incontestability;
Benefits based upon incorrect data;
State Laws; Reports to owner;
Evidence of survival; Protection of
proceeds; Payments by us; Voting
rights/Page 4
Ownership and Beneficiary Owner rights; Trust or custodial
ownership; Change of ownership;
Beneficiary; Change of Beneficiary;
Page 5
Payments to Beneficiary Describes options and amounts
payable upon death/Page 6
Purchase Payments Purchase payments amounts and
intervals; Payment limits;
Allocation of purchase payments
Page 7
Contract Value Describes the fixed and variable
account contract values; Interest to
be credited; Contract administrative
charge; Premium taxes; Transfers of
contract values/Page 8
Fixed and Variable Accounts Describes the variable accounts,
accumulation units and values; Net
investment factor; Mortality and
expense risk charge; Annuity unit
value/Page 9
Surrender Provisions Surrender of the contract for its
surrender value; Rules for
surrender/Page 10
Annuity Provisions When annuity payments begin;
Different ways to receive annuity
payments; Determination of payment
amounts/Page 12
Table of Settlement Rates Tables showing the amount of the
first variable annuity payment and
fixed annuity payments for the
various payment plans/Page 14
<PAGE>
PAGE 3
CONTRACT DATA
Annuitant: John Doe
Contract Number: 9310-1234567
Contract Date: October 1, 1993
Retirement Date: October 1, 2013
Contract Owner: John Doe
Deferred Annuity Contract ("Flexible Annuity")
Upon issuance of this contract your purchase payments have been
scheduled to be paid and applied to the fixed and variable accounts
as shown below. You may change the amount, frequency and
allocations as provided in this contract. Refer to the purchase
payments provisions on Page 7.
Amount Submitted With Application: None
Scheduled Purchase Payment:
Annual Amount: $1,200
Variable Purchase Payment
Accounts Mutual Fund Allocation Percentage
F IDS Life Capital Resource Fund 20%
G IDS Life Special Income Fund 20%
H IDS Life Moneyshare Fund 20%
N IDS Life Managed Fund 10%
IZ IDS Life International Equity Fund 10%
JZ IDS Life Aggressive Growth Fund 10%
Fixed Account 10%
Surrender Charge: If you surrender all or a portion of this
contract, a surrender charge of 7% will be
applied to amounts representing 'New Purchase
Payments'. See Page 10 for a definition of
'New Purchase Payments'.
Contract Administrative Charge: $6 per quarter. See page 8.
Maximum Purchase Payments Permitted:
1st contract year: $1,000,000
Each contract year
thereafter: $ 50,000
<PAGE>
PAGE 4
CONTRACT DATA (continued)
Annuitant: John Doe
Contract Number: 9310-1234567
Fixed Account
Table of Guaranteed Minimum Contract and Surrender Values
Guaranteed Interest Rate: 3% Annual Effective Rate
The following table shows the guaranteed minimum fixed account
contract and surrender values based on these assumptions: (1) $100
purchase payments are received and allocated 100% to the fixed
account at the beginning of each month; (2) There have been no
surrenders; (3) There are no premium tax charges. This table
reflects the $6 per quarter contract administrative charge. If
purchase payments are otherwise paid or allocated or if there are
surrenders, or premium tax charges, the values below will be
adjusted in accordance with the provisions of this contract.
<TABLE>
<CAPTION>
Guaranteed Guaranteed Guaranteed Guaranteed
End of Minimum Minimum End of Minimum Minimum
Contract Fixed Account Fixed Account Contract Fixed Account Fixed Account
Year Contract Value Surrender Value Year Contract Value Surrender Value
<C> <C> <C> <C> <C> <C>
1 $ 1,195.14 $ 1,111.14 11 $15,307.16 $14,803.16
2 2,426.14 2,258.14 12 16,961.51 16,457.51
3 3,694.07 3,442.07 13 18,665.50 18,161.50
4 5,000.04 4,664.04 14 20,420.61 19,916.61
5 6,345.18 5,925.18 15 22,228.37 21,724.37
6 7,730.68 7,226.68 16 24,090.37 23,586.37
7 9,157.74 8,653.74 17 26,008.22 25,504.22
8 10,627.62 10,123.62 18 27,983.61 27,479.61
9 12,141.59 11,637.59 19 30,018.26 29,514.26
10 13,700.98 13,196.98 20 32,113.96 31,609.96
</TABLE>
Variable account contract and surrender values are not guaranteed.
Information concerning contract and surrender values will be
provided to you at any time upon written request.
As of the date this contract was issued, any amounts allocated to
the fixed account will earn interest, for the first year, at the
annual effective rate of 5.15%. If a new rate is declared, it will
apply to amounts paid or allocated to the fixed account after the
new rate is effective.
<PAGE>
PAGE 5
DEFINITIONS
The following words are used often in this contract. When we use
these words, this is what we mean:
annuitant
The person or persons on whose life monthly annuity payments
depend.
you, your
The owner of this contract. The owner may be changed as provided
in this contract.
we, our, us
IDS Life Insurance Company.
accumulation unit
An accumulation unit is an accounting unit of measure. It is used
to calculate the contract value prior to settlement.
annuity unit
An annuity unit is an accounting unit of measure. It is used to
calculate the value of annuity payments from the variable accounts
on and after the retirement date.
contract date
It is the date from which contract anniversaries, contract years,
and contract months are determined. Your contract date is shown
under Contract Data.
contract anniversary
The same day and month as the contract date each year that the
contract remains in force.
contract value
The sum of the: (1) Fixed Account Contract Value; and (2) Variable
Account Contract Value.
retirement date
The date shown under Contract Data on which annuity payments are to
begin. This date may be changed as provided in this contract. You
will be notified prior to the retirement date in order to select an
appropriate annuity payment plan.
<PAGE>
PAGE 6
DEFINITIONS (contined)
settlement
The application of the contract value of this contract to provide
annuity payments.
valuation date
A valuation date is each day the New York Stock Exchange is open
for trading.
valuation period
A valuation period is the interval of time commencing at the close
of business on each valuation date and ending at the close of
business on the next valuation date.
fixed account
The fixed account is made up of all our assets other than those in
any separate account.
variable accounts
The variable accounts are named under Contract Data. Each is a
separate investment account of ours.
fixed annuity
A fixed annuity is an annuity with payments which are guaranteed by
us as to dollar amount during the annuity payment period.
variable annuity
A variable annuity is an annuity with payments which (1) are not
predetermined or guaranteed as to dollar amount; and (2) vary in
amount with the investment experience of one or more of the
variable accounts.
written request
A request in writing signed by you and delivered to us at our home
office.
<PAGE>
PAGE 7
GENERAL PROVISIONS
Entire Contract
This contract form is the entire contract between you and us.
No one except one of our corporate officers (President, Vice
President, Secretary or Assistant Secretary) can change or waive
any of our rights or requirements under this contract. That person
must do so in writing. None of our representatives or other
persons has the authority to change or waive any of our rights or
requirements under this contract.
Incontestable
This contract is incontestable from its date of issue.
Benefits Based on Incorrect Data
If the amount of benefits is determined by data as to a person's
age that is incorrect, benefits will be recalculated on the basis
of the correct data. Any underpayments made by us will be made up
immediately. Any overpayments made by us will be subtracted from
the future payments.
State Laws
This contract is governed by the law of the state in which it is
delivered. The values and benefits of this contract are at least
equal to those required by such state.
Reports to Owner
At least once a year we will send you a statement showing the
contract value and the cash surrender value of this contract. This
statement will be based on any laws or regulations that apply to
contracts of this type.
Evidence of Survival
Where any payments under this contract depend on the recipient or
annuitant being alive on a given date, proof that such condition
has been met may be required by us. Such proof may be required
prior to making the payments.
Protection of Proceeds
Payments under this contract are not assignable by any beneficiary
prior to the time they are due. To the extent allowed by law,
payments are not subject to the claims of creditors or to legal
process.
<PAGE>
PAGE 8
GENERAL PROVISIONS (continued)
Payments By Us
All sums payable by us are payable at our home office. Any payment
of a variable annuity or surrender based on the variable contract
value shall be payable only from the variable accounts.
Voting Rights
So long as federal law requires, we will give certain voting rights
to contract owners. As contract owner, if you have voting rights
we will send a notice to you telling you the time and place of a
shareholder meeting. The notice will also explain matters to be
voted upon and how many votes you get.
Trustee or custodian owners shall cast votes according to
instructions received from appropriate annuitants. All other votes
of such trustee or custodian under the same trust or custodial
agreement shall be cast in the same proportion. If no instructions
are received, the votes may be cast at the trustee's or custodian's
discretion.
<PAGE>
PAGE 9
OWNERSHIP AND BENEFICIARY
Owner's Rights
As long as the annuitant is living and unless otherwise provided in
this contract, you may exercise all rights and privileges provided
in this contract or allowed by us.
Trust or Custodial Ownership
If you are a tax qualified trust or tax qualified custodial
account, then your trustees or custodian (or their successors)
properly named by your trust or custodial agreement may exercise
all rights and privileges provided in this contract or allowed by
us.
Change of Ownership (Restricted)
Your right to change the ownership of this contract is restricted.
This contract may not be sold, assigned, transferred, discounted or
pledged as collateral for a loan or as security for the performance
of an obligation or for any other purpose to any person other than
to us. However, if you are a trust or a custodian or an employer
as a part of a qualified plan under Sections 401 or 403 or a
deferred compensation plan under Section 457 of the Internal
Revenue Code of 1986, you may transfer ownership of this contract
to the annuitant. Such transfer must be on a form approved by us.
The change must be made while the annuitant is living. Once the
change is recorded by us, it will take effect as of the date of
your request, subject to any action taken or payment made by us
before the recording.
Beneficiary
Beneficiaries are those you name, in a form satisfactory to us, to
receive benefits of this contract if you or the annuitant die while
this contract is in force.
Only those beneficiaries who are living when death benefits become
payable may share in the benefits, if any. If no beneficiary is
then living, we will pay the benefits to you, if living, otherwise
to your estate.
Change of Beneficiary
You may change the beneficiary anytime while the annuitant is
living by satisfactory written request to us. Once the change is
recorded by us, it will take effect as of the date of your request,
subject to any action taken or payment made by us before the
recording.
<PAGE>
PAGE 10
PAYMENTS TO BENEFICIARY
Death Benefit Before the Retirement Date
If the annuitant dies before the retirement date and age 75 while
this contract is in force we will pay to the beneficiary the
greater of:
1. the contract value; or
2. the contract value as of the most recent sixth contract
anniversary less any amounts surrendered; or
3. the purchase payments paid less any amounts
surrendered.
If the annuitant dies before the retirement date and on or after
the annuitant's 75th birthday, while this contract is in force, we
will pay to the beneficiary the greater of:
1. the contract value; or
2. the contract value as of the most recent sixth contract
anniversary, less any amounts surrendered.
The above amount will be payable in a lump sum upon the receipt of
due proof of death of the annuitant. The beneficiary may elect to
receive payment anytime within 5 years after the date of death of
the annuitant.
In lieu of a lump sum, payment may be made under an Annuity Payment
Plan, provided:
1. the beneficiary elects the plan within 60 days after we
receive due proof of death; and
2. payments begin no later than one year after the date of
death; and
3. the plan provides payments over a period which does not
exceed the life of the beneficiary, or the life
expectancy of the beneficiary.
In this event, the reference to "annuitant" in the Annuity
Provisions shall apply to the beneficiary.
Any amounts payable or applied by us as described in this section
will be based on the contract value as of the valuation date on or
next following the date on which due proof of death is received at
our Home Office.
Spouse Option to Continue Contract Upon Annuitant's Death
If the annuitant dies prior to the retirement date, a spouse who is
designated as sole beneficiary may elect in writing to forego
receipt of the death benefit and instead continue this contract in
force. The election by the spouse must be made within 60 days
after we receive due proof of death.<PAGE>
PAGE 11
PAYMENTS TO BENEFICIARY (continued)
In this event, the retirement date may not be later than the April
1 following the calendar year in which the annuitant would have
attained age 70 1/2, or such other date which allows the spouse to
satisfy the minimum distribution requirements under the Internal
Revenue Code of 1986, as amended, its regulations and/or
promulgations by the Internal Revenue Service.
Annuitant's Death After the Retirement Date
If the annuitant dies after the retirement date, the amount
payable, if any, will be as provided in the Annuity Payment Plan
then in effect.
<PAGE>
PAGE 12
PURCHASE PAYMENTS
Purchase Payments
Purchase payments are the payments you make for this contract and
the benefits it provides. Purchase payments must be paid or mailed
to us at our home office or to an authorized agent. If requested,
we'll give you a receipt for your purchase payments. Upon payment
to us, purchase payments become our property.
Net purchase payments are that part of your purchase payments
applied to the contract value. A net purchase payment is equal to
the purchase payment less any applicable premium tax charge.
Amount and Intervals
Purchase payments may be paid in a single sum or in installments
until the earlier of: (1) the date this contract terminates by
surrender or otherwise; or (2) the date on which annuity payments
begin.
Subject to the Payment Limits Provision you may: (1) stop and/or
restart purchase payments; or (2) increase or decrease the amount
of your purchase payments; or (3) change the interval of your
purchase payments.
Payment Limits Provision
Maximum Purchase Payments - The maximum purchase payments in the
first or later contract years may not exceed the amounts shown
under Contract Data. We reserve the right to increase the
maximums.
Minimum Purchase Payments - Upon issue of this contract, a purchase
payment intended as a Single Purchase Payment must be at least
$1,000. If you intend to make installment purchase payments such
payments, on an annualized basis, must be at least equal to $600.
We also reserve the right to cancel this contract if both of the
following conditions exist at the same time: (1) no purchase
payments have been paid for a continuous period of 24 months; and
(2) less than $600 in purchase payments have been paid under this
contract. In this event we will give you 30 days written notice of
our intent to cancel this contract. Upon such cancellation we will
pay you the contract value in one sum. This contract will then
terminate.
Allocation of Purchase Payments
You instruct us on how you want your purchase payments allocated
among the fixed account and variable accounts. Your choice for
each account may be made in any whole percent from 0% to 100% as
long as the total adds up to 100%. Your allocation instructions as
<PAGE>
PAGE 13
PURCHASE PAYMENTS (continued)
of the Contract Date are shown under Contract Data. By written
request, or by another method agreed to by us, you may change your
choice of accounts or percentages. The first net purchase payment
will be allocated as of the end of the valuation period during
which we make an affirmative decision to issue this contract. Net
purchase payments after the first will be allocated as of the end
of the valuation period during which we receive the payment at our
home office.
<PAGE>
PAGE 14
CONTRACT VALUE
Contract Value
The contract value at any time is the sum of: (1) the Fixed Account
Contract Value; and (2) the Variable Account Contract Value.
If: (1) part or all of the contract value is surrendered; or (2)
charges described herein are made against the contract value; then
a number of accumulation units from the variable accounts and an
amount from the fixed account will be deducted to equal such
amount. For surrenders, deductions will be made from the fixed or
variable accounts that you specify. Otherwise, the number of units
from the variable accounts and the amount from the fixed account
will be deducted in the same proportion that your interest in each
bears to the total contract value.
Fixed Account Contract Value
The fixed account contract value at any time will be: (1) the sum
of all amounts credited to the fixed account under this contract;
less (2) any amounts deducted for charges or surrenders.
Interest to be Credited
We will credit interest to the fixed account contract value.
Interest will begin to accrue on the date the purchase payments
which are received in our home office become available to us for
use. Such interest will be credited at rates that we determine
from time to time. However, we guarantee that the rate will not be
less than the Guaranteed Interest Rate shown under Contract Data.
Variable Account Contract Value
The variable account contract value at any time will be: (1) the
sum of the value of all variable account accumulation units under
this contract resulting from purchase payments so allocated, or
transfers among the variable and fixed accounts; less (2) any units
deducted for charges or surrenders.
Contract Administrative Charge
We charge a fee for establishing and maintaining our records for
this contract. The charge is $6 per quarter and is deducted from
the contract value at the end of each three-month period measured
from the contract date or, if earlier, when the contract is
surrendered. The charge does not apply after settlement of this
contract.
Premium Tax Charges
A charge will be made by us against the contract value of this
contract at the time that any premium taxes not previously deducted
are payable.
<PAGE>
PAGE 15
CONTRACT VALUE (continued)
Transfers of Contract Values
While this contract is in force prior to the settlement date,
transfer of contract values may be made as outlined below:
1. You may transfer all or a part of the values held in
one or more of the variable accounts to another one or
more of the variable accounts. Subject to item 2, you
may also transfer values held in one or more of the
variable accounts to the fixed account.
2. On or within the 30 days after a contract anniversary
you may transfer values from the fixed account to one
or more of the variable accounts. Only one such
transfer is allowed during this period each year. If
such a transfer is made, no transfers from a variable
account to the fixed account may be made until the next
contract anniversary.
You may make a transfer by written request. Transfer requests may
also be made according to telephone procedures or automated
transfer procedures that are then currently in effect, if any.
There is no fee or charge for these transfers. However, the
minimum transfer amount is $250, or if less, the entire value in
the account from which the transfer is being made. Smaller
minimums may apply to automated transfer procedures. This transfer
privilege may be suspended or modified by us at any time.
<PAGE>
PAGE 16
FIXED AND VARIABLE ACCOUNTS
The Fixed Account
The fixed account is our general account. It is made up of all of
our assets other than: (1) those in the variable accounts; and (2)
those in any other segregated asset account.
The Variable Accounts
The variable accounts are separate investment accounts of ours.
They are named under Contract Data. We have allocated a part of
our assets for this and certain other contracts to the variable
accounts. Such assets remain our property. However, they may not
be charged with the liabilities from any other business in which we
may take part.
Investments of the Variable Accounts
Purchase payments applied to the variable accounts will be
allocated as specified by the owner. Each variable account will
buy, at net asset value, shares of the fund shown for that account
under Contract Data or as later added or changed.
Valuation of Assets
Mutual fund shares in the variable accounts will be valued at their
net asset value.
Variable Account Accumulation Units
The number of accumulation units for each of the variable accounts
is found by dividing: (1) the net amount allocated to the account;
by (2) the accumulation unit value for the account for the
valuation period during which we received the purchase payment.
Variable Account Accumulation Unit Value
The value of an accumulation unit for each of the variable accounts
was arbitrarily set at $1 when the first mutual fund shares were
bought. The value for any later valuation period is found as
follows:
The accumulation unit value for each variable account
for the last prior valuation period is multiplied by
the net investment factor for the same account for the
next following valuation period. The result is the
accumulation unit value. The value of an accumulation
unit may increase or decrease from one valuation period
to the next.
<PAGE>
PAGE 17
FIXED AND VARIABLE ACCOUNTS (continued)
Net Investment Factor
The net investment factor is an index applied to measure the
investment performance of a variable account from one valuation
period to the next. The net investment factor may be greater or
less than one; therefore, the value of an accumulation unit may
increase or decrease.
The net investment factor for any such account for any valuation
period is determined by: dividing (1) by (2) and subtracting (3)
from the result. This is done where:
(1) is the sum of:
a. the net asset value per share of the mutual fund
held in the variable account 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 mutual fund held in
the variable account, if the "ex-dividend" date
occurs during the current valuation period.
(2) is the net asset value per share of the mutual fund
held in the variable account, determined at the end of
the last prior valuation period.
(3) is a factor representing the mortality and expense risk
charge.
Mortality and Expense Risk Charge
In calculating accumulation unit values we will deduct a mortality
and expense risk charge from the variable accounts equal, on an
annual basis, to 1.00% of the daily net asset value. This
deduction is made to compensate us for assuming the mortality and
expense risks under contracts of this type. We estimate that
approximately 2/3 of this charge is for assumption of mortality
risk and 1/3 is for assumption of expense risk. The deduction will
be: (1) made from each variable account; and (2) computed on a
daily basis.
Annuity Unit Value
The value of an annuity unit for each variable account was
arbitrarily set at $1 when the first mutual funds were bought. The
value for any later valuation period is found as follows:
1. The annuity unit value for each variable account for
the last prior valuation period is multiplied by the
net investment factor for the account for the valuation
period for which the annuity unit value is being
calculated.
<PAGE>
PAGE 18
FIXED AND VARIABLE ACCOUNTS (continued)
2. The result is multiplied by an interest factor. This
is done to neutralize the assumed investment rate which
is built into the annuity tables on page 14.
<PAGE>
PAGE 19
SURRENDER PROVISIONS
Surrender
By written request and subject to the rules below you may:
1. surrender this contract for the total surrender value;
or
2. partially surrender this contract for a part of the
surrender value.
Surrender Value
The surrender value at any time will be:
1. the contract value;
2. minus the contract administrative charge;
3. minus any surrender charge.
Surrender Charge
In order to determine if a surrender charge applies to a partial or
total surrender we first divide the contract value into three
parts.
1. Contract Earnings - This is the contract value minus
the sum of all purchase payments we have received that
have not been previously surrendered.
2. Old Purchase Payments - These are purchase payments we
received in any contract year six or more years prior
to the contract year of surrrender.
3. New Purchase Payments - These are purchase payments we
received during the contract year in which the
surrender is made and in the five immediately preceding
contract years.
We will then surrender your contract value in the following order
so that the amount surrendered, less any surrender charge that
applies, equals your requested surrender amount:
1. Contract Earnings, if any, are surrendered first.
There is no surrender charge on contract earnings.
2. Next, if necessary, we surrender Old Purchase Payments
not previously surrendered. There is no surrender
charge on Old Purchase payments.
3. Finally, if necessary, we surrender New Purchase
Payments not previously surrendered. There is a
surrender charge of 7% applied to New Purchase Payments
surrendered.
<PAGE>
PAGE 20
SURRENDER PROVISIONS (continued)
Notwithstanding the previous provisions, the surrender charge is
waived upon the later of:
1. Surrenders made after the annuitant's 65th birthay; or
2. the 10th contract anniversary.
No surrender charges will apply to payments made in the event of
death of the owner or annuitant or to setlement payments using an
annuity payment plan.
Surrender Charge Calculation
The surrender charge for a total surrender is calculated by
multiplying the amount representing new purchase payments by .07.
The surrender charge for a partial surrender is calculated by
dividing the surrender amount requested representing "new purchase
payments" by .93 and multiplying the result by .07.
For example, the surrender charge on a $1,000 partial surrender
request (representing all "new purchase payments") would be $75.27,
resulting from the following calculation: ($1,000/.93) X .07 =
$75.27.
Rules For Surrender
All surrenders will have the following conditions:
1. You must apply by written request or other method
agreed to by us: (a) while this contract is in force;
and (b) prior to the earlier of the retirement date or
the death of the annuitant.
2. Unless we agree otherwise, you must surrender an amount
equal to at least $250. The contract value after a
partial surrender must be at least $600.
3. The amount surrendered, less any charges, will normally
be paid to you within seven days of the receipt of your
written request and this contract, if required. For
surrenders from the fixed account, we have the right to
defer payment to you for up to 6 months from the date
we receive your request.
4. For partial surrenders, if you do not specify from
which accounts the surrender is to be made, the
surrender will be made from the variable accounts and
fixed account in the same proportion as your interest
in each bears to the contract value.
5. Any amounts surrendered and charges which may apply can
not be repaid.
<PAGE>
PAGE 21
SURRENDER PROVISIONS (continued)
Upon surrender for the full surrender value this contract will
terminate. We may require that you return the contract to us
before we pay the full surrender value.
Suspension or Delay in Payment of Surrender
We have the right to suspend or delay the date of any surrender
payment from the variable accounts for any period:
1. When the New York Stock Exchange is closed; or
2. When trading on the New York Stock Exchange is
restricted; or
3. When an emergency exists as a result of which: (a)
disposal of securities held in the variable accounts is
not reasonably practicable; or (b) it is not reasonably
practicable to fairly determine the value of the net
assets of the variable account; or
4. During any other period when the Securities and
Exchange Commission, by order, so permits for the
protection of security holders.
Rules and regulations of the Securities and Exchange Commission
will govern as to whether the conditions set forth in 2 and 3 exit.
<PAGE>
PAGE 22
ANNUITY PROVISIONS
Settlement
When settlement occurs, the contract value will be applied to make
annuity payments. The first payment will be made as of the
retirement date. This date is shown under Contract Data. Before
payments begin we will require satisfactory proof that the
annuitant is alive. We may also require that you exchange this
contract for a supplemental contract which provides the annuity
payments.
Change of Retirement Date
You may change the retirement date shown for this contract. Tell
us the new date by written request. The maximum Retirement Date is
the later of:
1. April 1 following the calendar year in which the
annuitant attains age 70 1/2; or
2. such other date which satisfies the minimum
distribution requirements under Internal Revenue Code
of 1986, as amended, its regulations and/or
promulgations by the Internal Revenue Service; or
3. such other date as agreed upon by us.
Notwithstanding the above, the maximum Retirement Date is the later
of:
1. The contract anniversary on or preceding the
annuitant's 85th birthday; or
2. the 10th contract anniversary.
Also, if you select a new retirement date, it must be at least 30
days after we receive your written request at our home office.
Annuity Payment Plans
Subject to the terms of this contract, annuity payments may be made
on a fixed-dollar basis, a variable basis or a combination of both.
You can schedule receipt of annuity payment according to one of the
Plans A through E below or another plan agreed to by us provided:
1. the Plan selected provides for payments over the life
of the annuitant or over the life of the annuitant and
a joint annuitant; or
2. the Plan selected provides for payments over a period
which does not exceed the life expectancy of the
annuitant, or the life expectancy of the annuitant and
a joint annuitant; and
3. the Plan selected meets the minimum death incidental
benefit requirements under the Internal Revenue Code of
1986, as amended. <PAGE>
PAGE 23
ANNUITY PROVISIONS (continued)
Plan A - This provides monthly annuity payments during
the lifetime of the annuitant. No payments will be
made after the annuitant dies.
Plan B - This provides monthly annuity payments during
the lifetime of the annuitant with a guarantee by us
that payments will be made for a period of at least
five, ten or fifteen years. You must select the
guaranteed period.
Plan C - This provides monthly annuity payments during
the lifetime of the annuitant with a guarantee by us
that payments will be made for a certain number of
months. We determine the number of months by dividing
the amount applied under this Plan by the amount of the
first monthly annuity payment.
Plan D - Monthly payments will be paid during the
lifetime of the annuitant and a joint annuitant. When
either the annuitant or the joint annuitant dies we
will continue to make monthly payments during the
lifetime of the survivor. No payments will be paid
after the death of both the annuitant and joint
annuitant.
Plan E - (Installment for a specified period) This
provides monthly fixed dollar annuity payments for a
period of years. The period of years may be no less
than 10 nor more than 30.
By written request to us at least 30 days before the Retirement
Date, you may select the Plan. If at least 30 days before the
Retirement Date we have not received at our home office your
written request to select a Plan, we will make fixed-dollar
payments according to Plan B with payments guaranteed for ten
years.
If the amount to be applied to a Plan would not provide an initial
monthly payment of at least $20, we have the right to make a lump
sum payment of the contract value.
Fixed Annuity
A fixed annuity is an annuity with payments that are guaranteed by
us as to dollar amount. Fixed annuity payments after the first
payment will never be less than the amount of the first payment.
At settlement, the fixed account contract value will be applied to
the applicable Annuity Table. This will be done in accordance with
the Payment Plan chosen. The amount payable for each $1,000 so
applied is shown in Table B on page 15.
Variable Annuity
A variable annuity is an annuity with payments which: (1) are not
predetermined or guaranteed as to dollar amount; and (2) vary in
amount with the investment experience of the variable accounts.<PAGE>
PAGE 24
ANNUITY PROVISIONS (continued)
Determination of First Variable Annuity Payment
At settlement, the variable account contract value will be applied
to the applicable Annuity Table. This will be done: (1) on the
valuation date on or next preceding the seventh calendar day before
the retirement date; and (2) in accordance with the Payment Plan
chosen. The amount payable for the first payment for each $1,000
so applied is shown in Table A on page 14.
Variable Annuity Payments After the First Payment
Variable annuity payments after the first payment vary in amount.
The amount changes with the investment performance of the variable
accounts. The dollar amount of variable annuity payments after the
first is not fixed. It may change from month to month. The dollar
amount of such payments is determined as follows:
1. The dollar amount of the first annuity payment is
divided by the value of an annuity unit as of the
valuation date on or next preceding the seventh
calendar day before the retirement date. This result
establishes the fixed number of annuity units for each
monthly annuity payment after the first payment. This
number of annuity units remains fixed during the
annuity payment period.
2. The fixed number of annuity units is multiplied by the
annuity unit value as of the valuation date on or next
preceding the seventh calendar day before the date the
payment is due. This result establishes the dollar
amount of the payment.
We guarantee that the dollar amount of each payment after the first
will not be affected by variations in expenses or mortality
experience.
Exchange of Annuity Units
Annuity units of any variable account may be exchanged for units of
any of the other variable accounts. This may be done no more than
once a year. Once annuity payments start no exchanges may be made
to or from any fixed annuity.
<PAGE>
PAGE 25
TABLE OF SETTLEMENT RATES
Annuity payments for each $1,000 of value applied under a Payment
Plan will be based on our table of settlement rates in effect on
the date of settlement. The amount of the first monthly variable
annuity payment, based on a 5% assumed investment return, is
guaranteed to be not less than the amount shown in Table A for the
adjusted age of the annuitant(s). The amount of the first and all
subsequent fixed dollar annuity payments is guaranteed to be not
less than the amount shown in Table B for the adjusted age of the
annuitant(s). Adjusted Age shall be equal to the age nearest
birthday minus an "adjustment" depending on the calendar year of
birth of the annuitant as follows:
Calendar
Year of
Annuitant's
Birth Adjustment
Prior to 1920 0
1920 through 1924 1
1925 through 1929 2
1930 through 1934 3
1935 through 1939 4
1940 through 1944 5
1945 through 1949 6
1950 through 1959 7
1960 through 1969 8
1970 through 1979 9
1980 through 1989 10
After 1989 11
<PAGE>
PAGE 26
TABLE OF SETTLEMENT RATES (continued)
<TABLE>
<CAPTION>
TABLE A Dollar Amount of First Monthly Variable Annuity Payment Per $1,000 Applied
PLAN A PLAN B PLAN C PLAN D - Joint and Survivor
Adjusted Age of Joint Annuitant
Adj. Life 5 Years 10 Years 15 Years With Adj. 10 Years 5 Years Same 5 Years 10 Years
Age* Income Certain Certain Certain Refund Age* Younger Younger Age Older Older
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
40 4.69 4.68 4.68 4.67 4.66 40 4.34 4.40 4.45 4.50 4.54
41 4.72 4.72 4.71 4.70 4.69 41 4.36 4.41 4.47 4.52 4.57
42 4.75 4.75 4.74 4.73 4.72 42 4.38 4.43 4.49 4.55 4.60
43 4.79 4.79 4.78 4.76 4.75 43 4.39 4.45 4.52 4.57 4.63
44 4.83 4.83 4.82 4.80 4.79 44 4.41 4.48 4.54 4.60 4.66
45 4.87 4.87 4.86 4.84 4.82 45 4.43 4.50 4.57 4.63 4.69
46 4.91 4.91 4.90 4.88 4.86 46 4.45 4.52 4.60 4.67 4.73
47 4.96 4.96 4.94 4.92 4.91 47 4.47 4.55 4.63 4.70 4.77
48 5.01 5.00 4.99 4.96 4.95 48 4.49 4.57 4.66 4.74 4.81
49 5.06 5.05 5.04 5.01 4.99 49 4.52 4.60 4.69 4.77 4.85
50 5.12 5.11 5.09 5.06 5.04 50 4.54 4.63 4.73 4.82 4.89
51 5.17 5.17 5.14 5.11 5.09 51 4.57 4.67 4.77 4.86 4.94
52 5.23 5.23 5.20 5.16 5.15 52 4.60 4.70 4.81 4.91 4.99
53 5.30 5.29 5.26 5.22 5.20 53 4.63 4.74 4.85 4.95 5.05
54 5.37 5.36 5.33 5.28 5.26 54 4.66 4.77 4.89 5.01 5.11
55 5.44 5.43 5.40 5.34 5.33 55 4.69 4.82 4.94 5.06 5.17
56 5.52 5.51 5.47 5.40 5.39 56 4.73 4.86 4.99 5.12 5.24
57 5.60 5.59 5.54 5.47 5.47 57 4.77 4.91 5.05 5.19 5.31
58 5.69 5.68 5.62 5.54 5.54 58 4.81 4.95 5.11 5.26 5.38
59 5.79 5.77 5.71 5.62 5.62 59 4.85 5.01 5.17 5.33 5.46
60 5.89 5.87 5.80 5.69 5.70 60 4.89 5.06 5.24 5.41 5.55
61 6.00 5.97 5.90 5.78 5.79 61 4.94 5.12 5.31 5.49 5.65
62 6.11 6.08 6.00 5.86 5.89 62 4.99 5.19 5.39 5.58 5.75
63 6.23 6.20 6.11 5.95 5.99 63 5.05 5.26 5.47 5.68 5.85
64 6.37 6.33 6.22 6.04 6.10 64 5.11 5.33 5.56 5.78 5.97
65 6.51 6.47 6.34 6.14 6.21 65 5.17 5.41 5.65 5.89 6.09
66 6.66 6.61 6.47 6.24 6.33 66 5.24 5.49 5.76 6.01 6.23
67 6.82 6.77 6.60 6.34 6.46 67 5.31 5.58 5.86 6.14 6.37
68 7.00 6.93 6.74 6.44 6.60 68 5.38 5.68 5.98 6.28 6.53
69 7.19 7.11 6.89 6.54 6.74 69 5.46 5.78 6.11 6.43 6.70
70 7.39 7.31 7.05 6.65 6.90 70 5.55 5.89 6.25 6.59 6.88
71 7.62 7.51 7.21 6.75 7.06 71 5.65 6.01 6.40 6.77 7.07
72 7.86 7.74 7.38 6.86 7.24 72 5.75 6.14 6.56 6.96 7.29
73 8.12 7.98 7.56 6.96 7.42 73 5.85 6.28 6.73 7.16 7.52
74 8.41 8.23 7.74 7.06 7.63 74 5.97 6.43 6.92 7.39 7.77
75 8.72 8.51 7.93 7.15 7.84 75 6.09 6.59 7.22 7.63 8.04
* Adjusted age of annuitant.
Table A above is based on the "1983 Individual Annuitant Mortality Table A." Settlement rates for any age not shown above, will be
calculated on the same basis as those rates shown in the table above. Such rates will be furnished by us upon request.
</TABLE>
<PAGE>
PAGE 27
TABLE OF SETTLEMENT RATES (continued)
<TABLE>
<CAPTION>
TABLE B Dollar Amount of Each Monthly Fixed Dollar Annuity Payment Per $1,000 Applied
PLAN A PLAN B PLAN C PLAN D - Joint and Survivor
Adjusted Age of Joint Annuitant
Adj. Life 5 Years 10 Years 15 Years With Adj. 10 Years 5 Years Same 5 Years 10 Years
Age* Income Certain Certain Certain Refund Age* Younger Younger Age Older Older
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
40 3.42 3.42 3.42 3.41 3.38 40 3.03 3.10 3.17 3.24 3.29
41 3.46 3.46 3.46 3.45 3.42 41 3.05 3.13 3.20 3.27 3.32
42 3.50 3.50 3.50 3.49 3.45 42 3.07 3.15 3.23 3.30 3.36
43 3.54 3.54 3.54 3.53 3.49 43 3.10 3.18 3.26 3.33 3.39
44 3.59 3.59 3.58 3.57 3.53 44 3.12 3.21 3.29 3.37 3.43
45 3.63 3.63 3.63 3.61 3.57 45 3.15 3.24 3.33 3.41 3.47
46 3.68 3.68 3.67 3.66 3.61 46 3.17 3.27 3.36 3.44 3.51
47 3.73 3.73 3.72 3.71 3.66 47 3.20 3.30 3.40 3.48 3.56
48 3.79 3.79 3.77 3.76 3.70 48 3.23 3.33 3.44 3.53 3.60
49 3.84 3.84 3.83 3.81 3.75 49 3.26 3.37 3.48 3.57 3.65
50 3.90 3.90 3.89 3.86 3.80 50 3.29 3.41 3.52 3.62 3.71
51 3.97 3.96 3.95 3.92 3.86 51 3.32 3.44 3.56 3.67 3.76
52 4.03 4.03 4.01 3.98 3.91 52 3.36 3.48 3.61 3.72 3.82
53 4.10 4.10 4.08 4.04 3.97 53 3.39 3.53 3.66 3.78 3.88
54 4.18 4.17 4.15 4.11 4.03 54 3.43 3.57 3.71 3.84 3.94
55 4.25 4.25 4.22 4.18 4.10 55 3.47 3.62 3.77 3.90 4.01
56 4.34 4.33 4.30 4.25 4.17 56 3.51 3.67 3.83 3.97 4.08
57 4.42 4.41 4.38 4.32 4.24 57 3.56 3.72 3.89 4.04 4.16
58 4.52 4.50 4.47 4.40 4.31 58 3.60 3.78 3.95 4.11 4.24
59 4.61 4.60 4.56 4.48 4.39 59 3.65 3.84 4.02 4.19 4.33
60 4.72 4.70 4.66 4.57 4.48 60 3.71 3.90 4.10 4.28 4.42
61 4.83 4.81 4.76 4.66 4.56 61 3.76 3.97 4.17 4.36 4.52
62 4.95 4.93 4.86 4.75 4.66 62 3.82 4.04 4.26 4.46 4.63
63 5.07 5.05 4.98 4.85 4.75 63 3.88 4.11 4.35 4.56 4.74
64 5.21 5.18 5.10 4.95 4.86 64 3.94 4.19 4.44 4.67 4.86
65 5.35 5.32 5.22 5.05 4.97 65 4.01 4.28 4.54 4.79 4.99
66 5.51 5.47 5.36 5.16 5.08 66 4.08 4.36 4.65 4.91 5.13
67 5.67 5.63 5.50 5.26 5.20 67 4.16 4.46 4.76 5.04 5.28
68 5.85 5.80 5.65 5.37 5.33 68 4.24 4.56 4.89 5.19 5.43
69 6.04 5.98 5.80 5.49 5.47 69 4.33 4.67 5.02 5.34 5.61
70 6.25 6.18 5.96 5.60 5.61 70 4.42 4.79 5.16 5.51 5.79
71 6.47 6.39 6.14 5.71 5.76 71 4.52 4.91 5.31 5.69 5.99
72 6.71 6.62 6.31 5.83 5.93 72 4.63 5.04 5.48 5.88 6.20
73 6.97 6.86 6.50 5.94 6.10 73 4.74 5.19 5.66 6.09 6.43
74 7.26 7.12 6.69 6.04 6.28 74 4.86 5.34 5.85 6.32 6.68
75 7.56 7.39 6.89 6.14 6.48 75 4.99 5.51 6.06 6.56 6.96
* Adjusted age of annuitant.
Table B above is based on the "1983 Individual Annuitant Mortality Table A" assuming a 3% annual effective interest rate.
Settlement rates for any age not shown above, will be calculated on the same basis as those rates shown in the table above. Such
rates will be furnished by us upon request. Amounts shown in the Table below are based on assuming a 3% annual effective interest
rate.
</TABLE>
<TABLE>
<CAPTION>
PLAN E Dollar Amount of Each Monthly Fixed Dollar Annuity Payment Per $1,000 Applied
Years Monthly Years Monthly Years Monthly
Payable Payment Payable Payment Payable Payment
<C> <C> <C> <C> <C> <C>
10 $ 9.61 17 $ 6.23 24 $ 4.84
11 8.86 18 5.96 25 4.71
12 8.24 19 5.73 26 4.59
13 7.71 20 5.51 27 4.47
14 7.26 21 5.32 28 4.37
15 6.87 22 5.15 29 4.27
16 6.53 23 4.99 30 4.18
</TABLE>
<PAGE>
PAGE 28
ENDORSEMENT - LOAN PROVISIONS
This endorsement is made a part of this contract to which it is
attached. It changes the terms and provisions of this contract.
Definition of "Debt"
"Debt" means the loan balance outstanding including any interest
added to the initial loan amount.
Request for Loan
While this contract is in force and prior to settlement you may
request a loan of a part of the fixed account contract value
provided there is no existing debt. Subject to the rules and
limits of this contract, we will grant a loan on the sole security
of this contract's fixed account upon receipt of a signed written
loan request and supplemental loan agreement in a form satisfactory
to us. A loan request and supplemental loan agreement may not be
made until at least 30 days after any prior debt has been repaid in
full.
We have the right to defer granting of any loan for six months from
receipt of your request.
Loan Amount
The minimum loan amount you may request is $600. The maximum loan
amount, including any loan interest added to the initial loan
amount, cannot exceed the smaller of the amounts determined in a.
or b. below and in no event shall such amount exceed 93% of the
fixed account contract value:
a. 50% of the contract value; or
b. $50,000 reduced by the largest loan balance under the
contract in the 12-month period ending on the day
before the loan is made.
The Loan Request and Supplemental Loan Agreement form will specify
loan amount restrictions under Section 72(p) of the Internal
Revenue Code with which you must agree to comply.
Loan Interest
There is an interest charge for the loan. Interest shall be at the
rate of 7.4% of the debt payable annually in advance to the next
loan anniversary. When we grant the loan and prior to each loan
anniversary we will notify you of the interest due for the next
year. If interest is not paid when it is due it will be added to
your debt and charged the same interest rate provided the debt
amount would not exceed the maximum loan amount shown above. If by
adding interest, debt would exceed the maximum loan amount we will
terminate your loan but not until 31 days after we mail notice to
your last known address. Upon such termination your debt will be
<PAGE>
PAGE 29
ENDORSEMENT - LOAN PROVISIONS (continued)
treated as a surrender. Surrender charges, if applicable, will be
deducted. If interest is added to your debt, it must be repaid as
provided below.
Loan Period and Repayment
Debt must be repaid within 5 years unless the loan request and
supplemental loan agreement specifies that the loan period shall be
10 years and is agreed to by us. The Loan Request and Supplemental
Loan Agreement form will specify the amount and frequency of loan
repayments that are necessary to meet the requirements under
Section 72(p) of the Code with which you must agree to comply.
If your debt is not repaid by the end of the loan period or prior
to surrender or settlement of the contract, your debt will be
treated as a surrender. Surrender charges, if applicable, will be
deducted.
Repayments of debt should be clearly marked as "loan repayments".
Repayments will reduce the debt and will be applied to the contract
according to existing purchase payment allocations unless you
notify us otherwise.
Effect of Loan on Contract Value
Loans and loan interest will be processed from and charged against
the fixed account contract value. Any existing debt will reduce,
by the same amount, the amounts available from the fixed account
for: surrender; settlement; or death benefits payable. During the
loan period the portion of the fixed account contract value equal
to your debt, as it is adjusted form time to time, will earn
interest at 4% per year compounded annually in lieu of the current
interest rate.
Transfers and Partial Surrenders During Loan Period
While there is existing debt, transfers or partial surrenders from
the fixed account may be made (if otherwise permitted under the
contract) but only with fixed account values that exceed an amount
determined by dividing the debt by 93% In addition, the contract
value, less any debt, after a partial surrender must be at least
$600.
Tax Status
Loans taken under the terms of this endorsement together with the
Loan Request and Supplemental Loan Agreement are intended to meet
the requirements under Section 72(p) of the Internal Revenue Code
(the Code) as it now exists or may later be amended. With respect
to remaining so qualified, we reserve the right to modify this
contract to comply with: future changes in the Code; any
regulations or rulings issued under the Code; and any other
requirements imposed by the Internal Revenue Service. We will
provide you notice and copy of any such modifications.
<PAGE>
PAGE 30
This endorsement is issued as of the contract date of this contract
unless a different date is shown here.
IDS Life Insurance Company
William A. Stoltzmann
Secretary
<PAGE>
PAGE 31
ANNUITY ENDORSEMENT
This endorsement is made a part of the contract or certificate to
which it is attached. It changes the terms and provisions therein
with respect to distributions. The contract or certificate is
intended to meet the requirements of Section 403(b) of the Internal
Revenue Code of 1986, as amended.
Definition
Code - This means the Internal Revenue Code of 1986, as amended,
and all related regulations which are in effect during the term of
this contract or certificate.
Restrictions on Distributions From the Contract/Certificate
Unless otherwise provided in the Code, no amounts may be
distributed unless the employee has:
1. attained age 59-1/2; or
2. separated from service; or
3. died; or
4. become disabled (as defined in Section 72(m)(7) of the
Code); or
5. encountered hardship (within the meaning of Section
403(b) of the Code);
and then only such amounts as the Code may provide.
The Company shall require satisfactory written proof of the
event(s) in items 1 through 5 above prior to any distribution from
the contract or certificate.
This endorsement is issued and executed as of January 1, 1989 or as
of the contract/certificate date if later.
IDS Life Insurance Company
William A. Stoltzmann
Secretary
<PAGE>
PAGE 32
DEFERRED ANNUITY CONTRACT
- - Flexible purchase payments.
- - Optional fixed dollar or variable accumulation values and annuity
payments.
- - Annuity payments to begin on the retirement date.
- - This contract is nonparticipating. Dividends are not payable.
IDS Life Insurance Company
IDS Tower 10
Minneapolis, MN 55440
<PAGE>
PAGE 1
DEFERRED ANNUITY CONTRACT
- - Flexible purchase payments.
- - Optional fixed dollar or variable accumulation values and annuity
payments.
- - Annuity payments to begin on the retirement date.
- - This contract is nonparticipating. Dividends are not payable.
Annuitant: John Doe
Contract Number: 9300-1234567
Contract Date: October 1, 1993
Retirement Date: October 1, 2013
This is a deferred annuity contract. It is a legal contract
between you, as the owner, and us, IDS Life Insurance Company, a
Stock Company, Minneapolis, Minnesota. PLEASE READ YOUR CONTRACT
CAREFULLY.
If the annuitant is living on the Retirement Date, upon your
request, we will begin to pay you monthly annuity payments. Any
payments made by us are subject to the terms of this contract.
We issue this contract in consideration of your application and the
payment of the purchase payments.
Signed for and issued by IDS Life Insurance Company in Minneapolis,
Minnesota, as of the contract date shown above.
ACCUMULATION VALUES AND ANNUITY PAYMENTS, WHEN BASED ON THE
INVESTMENT RESULTS OF THE SEPARATE ACCOUNTS, ARE VARIABLE AND NOT
GUARANTEED AS TO FIXED DOLLAR AMOUNT. SEE PAGE 9 FOR VARIABLE
PROVISIONS.
NOTICE OF YOUR RIGHT TO EXAMINE THIS CONTRACT FOR 10 DAYS
If for any reason you are not satisfied with this contract, return
it to us or our representative within 10 days after you receive it.
We will then cancel this contract. Upon such cancellation we will
then cancel this contract. Upon such cancellation we will refund
an amount equal to the sum of: (1) the contract value; and (2) any
premium tax charges paid. This contract will then be considered
void from its start.
President
James A. Mitchell
Secretary
William A. Stoltzmann
<PAGE>
PAGE 2
GUIDE TO CONTRACT PROVISIONS
Definitions Important words and meanings/Page 3
General Provisions Entire contract; Incontestability;
Benefits based upon incorrect data;
State Laws; Reports to owner;
Evidence of survival; Protection of
proceeds; Payments by us; Voting
rights/Page 4
Ownership and Beneficiary Owner rights; Change of ownership;
Beneficiary; Change of Beneficiary;
Assignment/Page 5
Payments to Beneficiary Describes options and amounts
payable upon death/Page 6
Purchase Payments Purchase payments amounts and
intervals; Payment limits;
Allocation of purchase payments/
Page 7
Contract Value Describes the fixed and variable
account contract values; Interest to
be credited; Contract administrative
charge; Premium taxes; Transfers of
contract values/Page 8
Fixed and Variable Accounts Describes the variable accounts,
accumulation units and values; Net
investment factor; Mortality and
expense risk charge; Annuity unit
value/Page 9
Surrender Provisions Surrender of the contract for its
surrender value; Rules for
surrender/Page 10
Annuity Provisions When annuity payments begin;
Different ways to receive annuity
payments; Determination of payment
amounts/Page 12
Table of Settlement Rates Tables showing amount of first
variable annuity payment and the
guaranteed fixed annuity payments
for the various payment plans/Page
14
<PAGE>
PAGE 3
CONTRACT DATA
Annuitant: John Doe
Contract Number: 9300-1234567
Contract Date: October 1, 1993
Retirement Date: October 1, 2013
Contract Owner: John Doe
Deferred Annuity Contract ("Flexible Annuity")
Upon issuance of this contract your purchase payments have been
scheduled to be paid and applied to the fixed and variable accounts
as shown below. You may change the amount, frequency and
allocations as provided in this contract. Refer to the purchase
payments provisions on Page 7.
Amount Submitted With Application: None
Scheduled Purchase Payment:
Annual Amount: $1,200
Variable Purchase Payments
Accounts Mutual Fund Allocation Percentage
F IDS Life Capital Resource Fund 20%
G IDS Life Special Income Fund 20%
H IDS Life Moneyshare Fund 20%
N IDS Life Managed Fund 10%
IZ IDS Life International Equity Fund 10%
JZ IDS Life Aggressive Growth Fund 10%
Fixed Account 10%
Surrender Charge: If you surrender all or a portion of this
contract, a surrender charge of 7% will be applied to amounts
representing 'New Purchase Payments'. See Page 10 for a definition
of 'New Purchase Payments'.
Contract Administrative Charge: $6 per quarter. See page 8.
Maximum Purchase Payments Permitted:
1st contract year: $1,000,000
Each contract year
thereafter: $ 50,000
<PAGE>
PAGE 4
CONTRACT DATA (continued)
Annuitant: John Doe
Contract Number: 9300-1234567
Fixed Account
Table of Guaranteed Minimum Contract and Surrender Values
Guaranteed Interest Rate: 3% Annual Effective Rate
The following table shows the guaranteed minimum fixed account
contract and surrender values based on these assumptions: (1) $100
purchase payments are received and allocated 100% to the fixed
account at the beginning of each month; (2) There have been no
surrenders; (3) There are no premium tax charges. This table
reflects the $6 per quarter contract administrative charge. If
purchase payments are otherwise paid or allocated or if there are
surrenders, or premium tax charges, the values below will be
adjusted in accordance with the provisions of this contract.
<TABLE>
<CAPTION>
Guaranteed Guaranteed Guaranteed Guaranteed
End of Minimum Minimum End of Minimum Minimum
Contract Fixed Account Fixed Account Contract Fixed Account Fixed Account
Year Contract Value Surrender Value Year Contract Value Surrender Value
<C> <C> <C> <C> <C> <C>
1 $ 1,195.14 $ 1,111.14 11 $15,307.16 $14,803.16
2 2,426.14 2,258.14 12 16,961.51 16,457.51
3 3,694.07 3,442.07 13 18,665.50 18,161.50
4 5,000.04 4,664.04 14 20,420.61 19,916.61
5 6,345.18 5,925.18 15 22,228.37 21,724.37
6 7,730.68 7,226.68 16 24,090.37 23,586.37
7 9,157.74 8,653.74 17 26,008.22 25,504.22
8 10,627.62 10,123.62 18 27,983.61 27,479.61
9 12,141.59 11,637.59 19 30,018.26 29,514.26
10 13,700.98 13,196.98 20 32,113.96 31,609.96
</TABLE>
Variable account contract and surrender values are not guaranteed.
Information concerning contract and surrender values will be
provided to you at any time upon written request.
As of the date this contract was issued, any amounts allocated to
the fixed account will earn interest, for the first year, at the
annual effective rate of 4.65%. If a new rate is declared, it will
apply to amounts paid or allocated to the fixed account after the
new rate is effective.
<PAGE>
PAGE 5
DEFINITIONS
The following words are used often in this contract. When we use
these words, this is what we mean:
annuitant
The person or persons on whose life monthly annuity payments
depend.
you, your
The owner of this contract. The owner may be someone other than
the annuitant. The owner may be changed as provided in this
contract.
we, our, us
IDS Life Insurance Company.
accumulation unit
An accumulation unit is an accounting unit of measure. It is used
to calculate the contract value prior to settlement.
annuity unit
An annuity unit is an accounting unit of measure. It is used to
calculate the value of annuity payments from the variable accounts
on and after the retirement date.
contract date
It is the date from which contract anniversaries, contract years,
and contract months are determined. Your contract date is shown
under Contract Data.
contract anniversary
The same day and month as the contract date each year that the
contract remains in force.
contract value
The sum of the: (1) Fixed Account Contract Value; and (2) Variable
Account Contract Value.
retirement date
The date shown under Contract Data on which annuity payments are to
begin. This date may be changed as provided in this contract. You
will be notified prior to the retirement date in order to select an
appropriate annuity payment plan.
<PAGE>
PAGE 6
DEFINITIONS (contined)
settlement
The application of the contract value of this contract to provide
annuity payments.
valuation date
A valuation date is each day the New York Stock Exchange is open
for trading.
valuation period
A valuation period is the interval of time commencing at the close
of business on each valuation date and ending at the close of
business on the next valuation date.
fixed account
The fixed account is made up of all our assets other than those in
any separate account.
variable accounts
The variable accounts are named under Contract Data. Each is a
separate investment account of ours.
fixed annuity
A fixed annuity is an annuity with payments which are guaranteed by
us as to dollar amount during the annuity payment period.
variable annuity
A variable annuity is an annuity with payments which (1) are not
predetermined or guaranteed as to dollar amount; and (2) vary in
amount with the investment experience of one or more of the
variable accounts.
written request
A request in writing signed by you and delivered to us at our home
office.
<PAGE>
PAGE 7
GENERAL PROVISIONS
Entire Contract
This contract form is the entire contract between you and us.
No one except one of our corporate officers (President, Vice
President, Secretary or Assistant Secretary) can change or waive
any of our rights or requirements under this contract. That person
must do so in writing. None of our representatives or other
persons has the authority to change or waive any of our rights or
requirements under this contract.
Incontestable
This contract is incontestable from its date of issue.
Benefits Based on Incorrect Data
If the amount of benefits is determined by data as to a person's
age or sex that is incorrect, benefits will be recalculated on the
basis of the correct data. Any underpayments made by us will be
made up immediately. Any overpayments made by us will be
subtracted from the future payments.
State Laws
This contract is governed by the law of the state in which it is
delivered. The values and benefits of this contract are at least
equal to those required by such state.
Reports to Owner
At least once a year we will send you a statement showing the
contract value and the cash surrender value of this contract. This
statement will be based on any laws or regulations that apply to
contracts of this type.
Evidence of Survival
Where any payments under this contract depend on the recipient or
annuitant being alive on a given date, proof that such condition
has been met may be required by us. Such proof may be required
prior to making the payments.
Protection of Proceeds
Payments under this contract are not assignable by any beneficiary
prior to the time they are due. To the extent allowed by law,
payments are not subject to the claims of creditors or to legal
process.
<PAGE>
PAGE 8
GENERAL PROVISIONS (continued)
Payments By Us
All sums payable by us are payable at our home office. Any payment
of a variable annuity or surrender based on the variable contract
value shall be payable only from the variable accounts.
Voting Rights
So long as federal law requires, we will give certain voting rights
to contract owners. As contract owner, if you have voting rights
we will send a notice to you telling you the time and place of a
shareholder meeting. The notice will also explain matters to be
voted upon and how many votes you get.
<PAGE>
PAGE 9
OWNERSHIP AND BENEFICIARY
Owner's Rights
As long as the annuitant is living and unless otherwise provided in
this contract, you may exercise all rights and privileges provided
in this contract or allowed by us.
Change of Ownership
You can change the ownership of this contract by written request on
a form approved by us. The change must be made while the annuitant
is living. Once the change is recorded by us, it will take effect
as of the date of your request, subject to any action taken or
payment made by us before the recording.
Beneficiary
Beneficiaries are those you name, in a form satisfactory to us, to
receive benefits of this contract if you or the annuitant die while
this contract is in force.
Only those beneficiaries who are living when death benefits become
payable may share in the benefits, if any. If no beneficiary is
then living, we will pay the benefits to you, if living, otherwise
to your estate.
Change of Beneficiary
You may change the beneficiary anytime while the annuitant is
living by satisfactory written request to us. Once the change is
recorded by us, it will take effect as of the date of your request,
subject to any action taken or payment made by us before the
recording.
Assignment
While the annuitant is living, you can assign this contract or any
interest in it. Your interest and the interest of any beneficiary
is subject to the interest of the assignee. An assignment is not a
change of ownership and an assignee is not an owner as these terms
are used in this contract. Any amounts payable to the assignee
will be paid in a single sum.
A copy of any assignment must be submitted to us at our home
office. Any assignment is subject to any action taken or payment
made by us before the assignment was recorded at our home office.
We are not responsible for the validity of any assignment.
<PAGE>
PAGE 10
PAYMENTS TO BENEFICIARY
Death Benefit Before the Retirement Date
If the annuitant or owner dies before the retirement date and the
annuitant's age 75, while this contract is in force we will pay to
the beneficiary the greater of:
1. the contract value; or
2. the contract value as of the most recent sixth contract
anniversary less any amounts surrendered; or
3. the purchase payments paid less any amounts
surrendered.
If the annuitant or owner dies before the retirement date and on or
after the annuitant's 75th birthday, while this contract is in
force, we will pay to the beneficiary the greater of:
1. the contract value; or
2. the contract value as of the most recent sixth contract
anniversary, less any amounts surrendered.
The above amount will be payable in a lump sum upon the receipt of
due proof of death of the annuitant or owner whichever first
occurs. The beneficiary may elect to receive payment anytime
within 5 years after the date of death.
In lieu of a lump sum, payment may be made under an Annuity Payment
Plan, provided:
1. the beneficiary elects the plan within 60 days after we
receive due proof of death; and
2. payments begin no later than one year after the date of
death; and
3. the plan provides payments over a period which does not
exceed the life of the beneficiary, or the life
expectancy of the beneficiary.
In this event, the reference to "annuitant" in the Annuity
Provisions shall apply to the beneficiary.
Any amounts payable or applied by us as described in this section
will be based on the contract value as of the valuation date on or
next following the date on which due proof of death is received at
our Home Office.
Spouse Option to Continue Contract Upon Owner's Death
If the owner's death occurs prior to the retirement date, the
owner's spouse, if designated as sole beneficiary, may elect in
writing to forego receipt of the death benefit and instead continue
this contract in force as owner. The election by the spouse must
be made within 60 days after we receive due proof of death.<PAGE>
PAGE 11
PAYMENTS TO BENEFICIARY (continued)
Death Benefit After the Retirement Date
If the annuitant or owner dies after the retirement date, the
amount payable, if any, will be as provided in the Annuity Payment
Plan then in effect.
<PAGE>
PAGE 12
PURCHASE PAYMENTS
Purchase Payments
Purchase payments are the payments you make for this contract and
the benefits it provides. Purchase payments must be paid or mailed
to us at our home office or to an authorized agent. If requested,
we'll give you a receipt for your purchase payments. Upon payment
to us, purchase payments become our property.
Net purchase payments are that part of your purchase payments
applied to the contract value. A net purchase payment is equal to
the purchase payment less any applicable premium tax charge.
Amount and Intervals
Purchase payments may be paid in a single sum or in installments
until the earlier of: (1) the date this contract terminates by
surrender or otherwise; or (2) the date on which annuity payments
begin.
Subject to the Payment Limits Provision you may: (1) stop and/or
restart purchase payments; or (2) increase or decrease the amount
of your purchase payments; or (3) change the interval of your
purchase payments.
Payment Limits Provision
Maximum Purchase Payments - The maximum purchase payments in the
first or later contract years may not exceed the amounts shown
under Contract Data. We reserve the right to increase the
maximums.
Minimum Purchase Payments - Upon issue of this contract, a purchase
payment intended as a Single Purchase Payment must be at least
$2,000. If you intend to make installment purchase payments such
payments, on an annualized basis, must be at least equal to $600.
We also reserve the right to cancel this contract if both of the
following conditions exist at the same time: (1) no purchase
payments have been paid for a continuous period of 24 months; and
(2) less than $600 in purchase payments have been paid under this
contract. In this event we will give you 30 days written notice of
our intent to cancel this contract. Upon such cancellation we will
pay you the contract value in one sum. This contract will then
terminate.
Allocation of Purchase Payments
You instruct us on how you want your purchase payments allocated
among the fixed account and variable accounts. Your choice for
each account may be made in any whole percent from 0% to 100% as
long as the total adds up to 100%. Your allocation instructions as
<PAGE>
PAGE 13
PURCHASE PAYMENTS (continued)
of the Contract Date are shown under Contract Data. By written
request, or by another method agreed to by us, you may change your
choice of accounts or percentages. The first net purchase payment
will be allocated as of the end of the valuation period during
which we make an affirmative decision to issue this contract. Net
purchase payments after the first will be allocated as of the end
of the valuation period during which we receive the payment at our
home office.
<PAGE>
PAGE 14
CONTRACT VALUE
Contract Value
The contract value at any time is the sum of: (1) the Fixed Account
Contract Value; and (2) the Variable Account Contract Value.
If: (1) part or all of the contract value is surrendered; or (2)
charges described herein are made against the contract value; then
a number of accumulation units from the variable accounts and an
amount from the fixed account will be deducted to equal such
amount. For surrenders, deductions will be made from the fixed or
variable accounts that you specify. Otherwise, the number of units
from the variable accounts and the amount from the fixed account
will be deducted in the same proportion that your interest in each
bears to the total contract value.
Fixed Account Contract Value
The fixed account contract value at any time will be: (1) the sum
of all amounts credited to the fixed account under this contract;
less (2) any amounts deducted for charges or surrenders.
Interest to be Credited
We will credit interest to the fixed account contract value.
Interest will begin to accrue on the date the purchase payments
which are received in our home office become available to us for
use. Such interest will be credited at rates that we determine
from time to time. However, we guarantee that the rate will not be
less than the Guaranteed Interest Rate shown under Contract Data.
Variable Account Contract Value
The variable account contract value at any time will be: (1) the
sum of the value of all variable account accumulation units under
this contract resulting from purchase payments so allocated, or
transfers among the variable and fixed accounts; less (2) any units
deducted for charges or surrenders.
Contract Administrative Charge
We charge a fee for establishing and maintaining our records for
this contract. The charge is $6 per quarter and is deducted from
the contract value at the end of each three-month period measured
from the contract date or, if earlier, when the contract is
surrendered. The charge does not apply after settlement of this
contract.
Premium Tax Charges
A charge will be made by us against the contract value of this
contract at the time that any premium taxes not previously deducted
are payable.
<PAGE>
PAGE 15
CONTRACT VALUE (continued)
Transfers of Contract Values
While this contract is in force prior to the settlement date,
transfer of contract values may be made as outlined below:
1. You may transfer all or a part of the values held in
one or more of the variable accounts to another one or
more of the variable accounts. Subject to item 2, you
may also transfer values held in one or more of the
variable accounts to the fixed account.
2. On or within the 30 days after a contract anniversary
you may transfer values from the fixed account to one
or more of the variable accounts. Only one such
transfer is allowed during this period each year. If
such a transfer is made, no transfers from a variable
account to the fixed account may be made until the next
contract anniversary.
You may make a transfer by written request. Transfer requests may
also be made according to telephone procedures or automated
transfer procedures that are then currently in effect, if any.
There is no fee or charge for these transfers. However, the
minimum transfer amount is $250, or if less, the entire value in
the account from which the transfer is being made. Smaller
minimums may apply to automated transfer procedures. This transfer
privilege may be suspended or modified by us at any time.
<PAGE>
PAGE 16
FIXED AND VARIABLE ACCOUNTS
The Fixed Account
The fixed account is our general account. It is made up of all of
our assets other than: (1) those in the variable accounts; and (2)
those in any other segregated asset account.
The Variable Accounts
The variable accounts are separate investment accounts of ours.
They are named under Contract Data. We have allocated a part of
our assets for this and certain other contracts to the variable
accounts. Such assets remain our property. However, they may not
be charged with the liabilities from any other business in which we
may take part.
Investments of the Variable Accounts
Purchase payments applied to the variable accounts will be
allocated as specified by the owner. Each variable account will
buy, at net asset value, shares of the fund shown for that account
under Contract Data or as later added or changed.
Valuation of Assets
Mutual fund shares in the variable accounts will be valued at their
net asset value.
Variable Account Accumulation Units
The number of accumulation units for each of the variable accounts
is found by dividing: (1) the net amount allocated to the account;
by (2) the accumulation unit value for the account for the
valuation period during which we received the purchase payment.
Variable Account Accumulation Unit Value
The value of an accumulation unit for each of the variable accounts
was arbitrarily set at $1 when the first mutual fund shares were
bought. The value for any later valuation period is found as
follows:
The accumulation unit value for each variable account
for the last prior valuation period is multiplied by
the net investment factor for the same account for the
next following valuation period. The result is the
accumulation unit value. The value of an accumulation
unit may increase or decrease from one valuation period
to the next.
<PAGE>
PAGE 17
FIXED AND VARIABLE ACCOUNTS (continued)
Net Investment Factor
The net investment factor is an index applied to measure the
investment performance of a variable account from one valuation
period to the next. The net investment factor may be greater or
less than one; therefore, the value of an accumulation unit may
increase or decrease.
The net investment factor for any such account for any valuation
period is determined by: dividing (1) by (2) and subtracting (3)
from the result. This is done where:
(1) is the sum of:
a. the net asset value per share of the mutual fund
held in the variable account 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 mutual fund held in
the variable account, if the "ex-dividend" date
occurs during the current valuation period.
(2) is the net asset value per share of the mutual fund
held in the variable account, determined at the end of
the last prior valuation period.
(3) is a factor representing the mortality and expense risk
charge.
Mortality and Expense Risk Charge
In calculating accumulation unit values we will deduct a mortality
and expense risk charge from the variable accounts equal, on an
annual basis, to 1.00% of the daily net asset value. This
deduction is made to compensate us for assuming the mortality and
expense risks under contracts of this type. We estimate that
approximately 2/3 of this charge is for assumption of mortality
risk and 1/3 is for assumption of expense risk. The deduction will
be: (1) made from each variable account; and (2) computed on a
daily basis.
Annuity Unit Value
The value of an Annuity Unit for each variable account was
arbitrarily set at $1 when the first mutual funds were bought. The
value for any later valuation period is found as follows:
1. The annuity unit value for each variable account for
the last prior valuation period is multiplied by the
net investment factor for the account for the valuation
period for which the annuity unit value is being
calculated.
<PAGE>
PAGE 18
FIXED AND VARIABLE ACCOUNTS (continued)
2. The result is multiplied by an interest factor. This
is done to neutralize the assumed investment rate which
is built into the annuity tables on page 14.
<PAGE>
PAGE 19
SURRENDER PROVISIONS
Surrender
By written request and subject to the rules below you may:
1. surrender this contract for the total surrender value;
or
2. partially surrender this contract for a part of the
surrender value.
Surrender Value
The surrender value at any time will be:
1. the contract value;
2. minus the contract administrative charge;
3. minus any surrender charge.
Surrender Charge
In order to determine if a surrender charge applies to a partial or
total surrender we first divide the contract value into three
parts.
1. Contract Earnings - This is the contract value minus
the sum of all purchase payments we have received that
have not been previously surrendered.
2. Old Purchase Payments - These are purchase payments we
received in any contract year six or more years prior
to the contract year of surrrender.
3. New Purchase Payments - These are purchase payments we
received during the contract year in which the
surrender is made and in the five immediately preceding
contract years.
We will then surrender your contract value in the following order
so that the amount surrendered, less any surrender charge that
applies, equals your requested surrender amount:
1. Contract Earnings, if any, are surrendered first.
There is no surrender charge on contract earnings.
2. Next, if necessary, we surrender Old Purchase Payments
not previously surrendered. There is no surrender
charge on Old Purchase payments.
3. Finally, if necessary, we surrender New Purchase
Payments not previously surrendered. There is a
surrender charge of 7% applied to New Purchase Payments
surrendered.
<PAGE>
PAGE 20
SURRENDER PROVISIONS (continued)
Notwithstanding the previous provisions, the surrender charge is
waived upon the later of:
1. Surrenders made after the annuitant's 65th birthay; or
2. the 10th contract anniversary.
No surrender charges will apply to payments made in the event of
death of the owner or annuitant or to setlement payments using an
annuity payment plan.
Surrender Charge Calculation
The surrender charge for a total surrender is calculated by
multiplying the amount representing new purchase payments by .07.
The surrender charge for a partial surrender is calculated by
dividing the surrender amount requested representing "new purchase
payments" by .93 and multiplying the result by .07.
For example, the surrender charge on a $1,000 partial surrender
request (representing all "new purchase payments") would be $75.27,
resulting from the following calculation: ($1,000/.93) X .07 =
$75.27.
Rules For Surrender
All surrenders will have the following conditions:
1. You must apply by written request or other method
agreed to by us: (a) while this contract is in force;
and (b) prior to the earlier of the retirement date or
the death of the annuitant.
2. Unless we agree otherwise, you must surrender an amount
equal to at least $250 or the contract value, if less.
The contract value after a partial surrender must be at
least $600.
3. The amount surrendered, less any charges, will normally
be paid to you within seven days of the receipt of your
written request and this contract, if required. For
surrenders from the fixed account, we have the right to
defer payment to you for up to 6 months from the date
we receive your request.
4. For partial surrenders, if you do not specify from
which accounts the surrender is to be made, the
surrender will be made from the variable accounts and
fixed account in the same proportion as your interest
in each bears to the contract value.
5. Any amounts surrendered and charges which may apply can
not be repaid.
<PAGE>
PAGE 21
SURRENDER PROVISIONS (continued)
Upon surrender for the full surrender value this contract will
terminate. We may require that you return the contract to us
before we pay the full surrender value.
Suspension or Delay in Payment of Surrender
We have the right to suspend or delay the date of any surrender
payment from the variable accounts for any period:
1. When the New York Stock Exchange is closed; or
2. When trading on the New York Stock Exchange is
restricted; or
3. When an emergency exists as a result of which: (a)
disposal of securities held in the variable accounts is
not reasonably practicable; or (b) it is not reasonably
practicable to fairly determine the value of the net
assets of the variable account; or
4. During any other period when the Securities and
Exchange Commission, by order, so permits for the
protection of security holders.
Rules and regulations of the Securities and Exchange Commission
will govern as to whether the conditions set forth in 2 and 3 exit.
<PAGE>
PAGE 22
ANNUITY PROVISIONS
Settlement
When settlement occurs, the contract value will be applied to make
annuity payments. The first payment will be made as of the
retirement date. This date is shown under Contract Data. Before
payments begin we will require satisfactory proof that the
annuitant is alive. We may also require that you exchange this
contract for a supplemental contract which provides the annuity
payments.
Change of Retirement Date
You may change the retirement date shown for this contract. Tell
us the new date by written request. However the retirement date
may not be later than the later of: (1) the annuitant's 85th
birthday; or (2) the tenth contract anniversary. Also, if you
select a new date, it must be at least 30 days after we receive
your written request at our home office.
Annuity Payment Plans
Subject to the terms of this contract annuity payments may be made
on a fixed-dollar basis, a variable basis, or a combination of
both. You can schedule receipt of annuity payments according to
one of the Plans A through E below or another plan agreed to by us.
Plan A - This provides monthly annuity payments during
the lifetime of the annuitant. No payments will be
made after the annuitant dies.
Plan B - This provides monthly annuity payments during
the lifetime of the annuitant with a guarantee by us
that payments will be made for a period of at least
five, ten or fifteen years. You must select the
guaranteed period.
Plan C - This provides monthly annuity payments during
the lifetime of the annuitant with a guarantee by us
that payments will be made for a certain number of
months. We determine the number of months by dividing
the amount applied under this Plan by the amount of the
first monthly annuity payment.
Plan D - Monthly payments will be paid during the
lifetime of the annuitant and a joint annuitant. When
either the annuitant or the joint annuitant dies we
will continue to make monthly payments during the
lifetime of the survivor. No payments will be paid
after the death of both the annuitant and joint
annuitant.
Plan E - (Installments for a specified period) This
provides monthly fixed dollar annuity payments for a
period of years. The period of years may be no less
than 10 nor more than 30.
<PAGE>
PAGE 23
ANNUITY PROVISIONS (continued)
By written request to us at least 30 days before the Retirement
Date, you may select the Plan. If at least 30 days before the
Retirement Date we have not received at our home office your
written request to select a Plan, we will make fixed-dollar
payments according to Plan B with payments guaranteed for ten
years.
If the amount to be applied to a Plan would not provide an initial
monthly payment of at least $20, we have the right to make a lump
sum payment of the contract value.
Fixed Annuity
A fixed annuity is an annuity with payments that are guaranteed by
us as to dollar amount. Fixed annuity payments after the first
will never be less than the amount of the first payment. At
settlement, the fixed account contract value will be applied to the
applicable Annuity Table. This will be done in accordance with the
Payment Plan chosen. The amount payable for each $1,000 so applied
is shown in Table B on page 15.
Variable Annuity
A variable annuity is an annuity with payments which: (1) are not
predetermined or guaranteed as to dollar amount; and (2) vary in
amount with the investment experience of the variable accounts.
Determination of First Variable Annuity Payment
At settlement, the variable account contract value will be applied
to the applicable Annuity Table. This will be done: (1) on the
valuation date on or next preceding the 7th calendar day before the
retirement date; and (2) in accordance with the Payment Plan
chosen. The amount payable for the first payment for each $1,000
so applied is shown in Table A on page 14.
Variable Annuity Payments After the First Payment
Variable annuity payments after the first vary in amount. The
amount changes with the investment performance of the variable
accounts. The dollar amount of variable annuity payments after the
first is not fixed. It may change from month to month. The dollar
amount of such payments is determined as follows:
1. The dollar amount of the first annuity payment is
divided by the value of an annuity unit as of the
valuation date on or next preceding the 7th calendar
day before the retirement date. This result
establishes the fixed number of annuity units for each
monthly annuity payment after the first. This number
of annuity units remains fixed during the annuity
payment period.
<PAGE>
PAGE 24
ANNUITY PROVISIONS (continued)
2. The fixed number of annuity units is multiplied by the
annuity unit value as of the valuation date on or next
preceding the 7th calendar day before the date the
payment is due. This result establishes the dollar
amount of the payment.
We guarantee that the dollar amount of each payment after the first
will not be affected by variations in expenses or mortality
experience.
Exchange of Annuity Units
Annuity units of any variable account may be exchanged for units of
any of the other variable accounts. This may be done no more than
once a year. Once annuity payments start no exchanges may be made
to or from any fixed annuity.
<PAGE>
PAGE 25
TABLE OF SETTLEMENT RATES
Table A below shows the amount of the first monthly variable
annuity payment, based on a 5% assumed investment return, for each
$1,000 of value applied under any Payment Plan. The amount of the
first and all subsequent monthly fixed dollar annuity payments for
each $1,000 of value applied under any Payment Plan will be based
on our fixed dollar Table of Settlement Rates in effect on the
settlement date. Such rates are guaranteed to be not less than
those shown in Table B. The amount of such annuity payments under
Plans A, B, and C will depend upon the sex and the adjusted age of
the annuitant on the date of settlement. The amount of such
annuity payments under Plan D will depend upon the sex and the
adjusted age of the annuitant and joint annuitant on the date of
settlement. Adjusted age shall be equal to the age nearest
birthday minus an "adjustment" depending on the calendar year of
birth of the annuitant as follows:
Calendar
Year of
Annuitant's
Birth Adjustment
Prior to 1920 0
1920 through 1924 1
1925 through 1929 2
1930 through 1934 3
1935 through 1939 4
1940 through 1944 5
1945 through 1949 6
1950 through 1959 7
1960 through 1969 8
1970 through 1979 9
1980 through 1989 10
After 1989 11
<PAGE>
PAGE 26
TABLE OF SETTLEMENT RATES (continued)
<TABLE>
<CAPTION>
TABLE A Dollar Amount of First Monthly Variable Annuity Payment Per $1,000 Applied
PLAN A PLAN B PLAN C PLAN D - Joint and Survivor
Adjusted Age of Female Joint Annuitant
Life 5 Years 10 Years 15 Years With Adj.
Adj. Income Certain Certain Certain Refund Male 10 years 5 years Same 5 years 10 years
Age* M F M F M F M F M F Age* Younger Younger Age Older Older
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
40 4.91 4.69 4.90 4.68 4.89 4.68 4.86 4.67 4.85 4.66 40 4.36 4.43 4.49 4.56 4.63
41 4.95 4.72 4.95 4.72 4.93 4.71 4.90 4.70 4.88 4.69 41 4.38 4.44 4.52 4.59 4.66
42 5.00 4.75 4.99 4.75 4.97 4.74 4.94 4.73 4.93 4.72 42 4.40 4.47 4.54 4.62 4.69
43 5.05 4.79 5.04 4.79 5.02 4.78 4.98 4.76 4.97 4.75 43 4.41 4.49 4.57 4.65 4.73
44 5.10 4.83 5.09 4.83 5.07 4.82 5.03 4.80 5.01 4.79 44 4.43 4.51 4.60 4.68 4.77
45 5.16 4.87 5.15 4.87 5.12 4.86 5.07 4.84 5.06 4.82 45 4.45 4.54 4.63 4.72 4.81
46 5.21 4.91 5.20 4.91 5.17 4.90 5.12 4.88 5.11 4.86 46 4.47 4.56 4.66 4.76 4.85
47 5.28 4.96 5.26 4.96 5.23 4.94 5.17 4.92 5.16 4.91 47 4.50 4.59 4.69 4.80 4.90
48 5.34 5.01 5.33 5.00 5.29 4.99 5.23 4.96 5.21 4.95 48 4.52 4.62 4.73 4.84 4.94
49 5.41 5.06 5.39 5.05 5.35 5.04 5.28 5.01 5.27 4.99 49 4.55 4.65 4.76 4.88 5.00
50 5.48 5.12 5.46 5.11 5.41 5.09 5.34 5.06 5.33 5.04 50 4.57 4.68 4.80 4.93 5.05
51 5.55 5.17 5.53 5.17 5.48 5.14 5.40 5.11 5.39 5.09 51 4.60 4.72 4.85 4.98 5.11
52 5.63 5.23 5.61 5.23 5.55 5.20 5.46 5.16 5.46 5.15 52 4.63 4.75 4.89 5.03 5.17
53 5.71 5.30 5.69 5.29 5.63 5.26 5.53 5.22 5.53 5.20 53 4.66 4.79 4.94 5.09 5.23
54 5.80 5.37 5.77 5.36 5.70 5.33 5.60 5.28 5.60 5.26 54 4.70 4.84 4.99 5.15 5.30
55 5.89 5.44 5.86 5.43 5.79 5.40 5.67 5.34 5.68 5.33 55 4.73 4.88 5.04 5.21 5.38
56 5.99 5.52 5.96 5.51 5.88 5.47 5.74 5.40 5.76 5.39 56 4.77 4.93 5.10 5.28 5.46
57 6.10 5.60 6.06 5.59 5.97 5.54 5.82 5.47 5.84 5.47 57 4.81 4.98 5.16 5.35 5.54
58 6.21 5.69 6.17 5.68 6.07 5.62 5.90 5.54 5.94 5.54 58 4.85 5.03 5.23 5.43 5.63
59 6.33 5.79 6.29 5.77 6.17 5.71 5.98 5.62 6.03 5.62 59 4.90 5.09 5.30 5.52 5.73
60 6.46 5.89 6.42 5.87 6.28 5.80 6.07 5.69 6.13 5.70 60 4.94 5.15 5.37 5.61 5.83
61 6.60 6.00 6.55 5.97 6.40 5.90 6.16 5.78 6.24 5.79 61 5.00 5.21 5.45 5.70 5.95
62 6.75 6.11 6.69 6.08 6.52 6.00 6.25 5.86 6.36 5.89 62 5.05 5.28 5.54 5.81 6.07
63 6.91 6.23 6.84 6.20 6.64 6.11 6.34 5.95 6.48 5.99 63 5.11 5.35 5.63 5.92 6.20
64 7.09 6.37 7.01 6.33 6.78 6.22 6.43 6.04 6.61 6.10 64 5.17 5.43 5.73 6.04 6.34
65 7.27 6.51 7.18 6.47 6.91 6.34 6.52 6.14 6.74 6.21 65 5.23 5.52 5.83 6.17 6.49
66 7.47 6.66 7.36 6.61 7.06 6.47 6.62 6.24 6.88 6.33 66 5.30 5.61 5.95 6.30 6.65
67 7.68 6.82 7.56 6.77 7.21 6.60 6.71 6.34 7.04 6.46 67 5.38 5.70 6.07 6.45 6.82
68 7.91 7.00 7.76 6.93 7.36 6.74 6.81 6.44 7.19 6.60 68 5.46 5.80 6.20 6.61 7.01
69 8.15 7.19 7.98 7.11 7.52 6.89 6.90 6.54 7.36 6.74 69 5.54 5.92 6.34 6.79 7.21
70 8.41 7.39 8.21 7.31 7.68 7.04 6.98 6.65 7.54 6.90 70 5.63 6.03 6.49 6.97 7.42
71 8.69 7.62 8.46 7.51 7.84 7.21 7.07 6.75 7.73 7.06 71 5.73 6.16 6.65 7.17 7.66
72 8.99 7.86 8.71 7.74 8.01 7.38 7.15 6.86 7.92 7.24 72 5.84 6.30 6.83 7.39 7.90
73 9.31 8.12 8.98 7.98 8.18 7.56 7.23 6.96 8.13 7.42 73 5.95 6.44 7.02 7.62 8.17
74 9.65 8.41 9.27 8.23 8.35 7.74 7.30 7.06 8.35 7.63 74 6.07 6.60 7.22 7.87 8.46
75 10.02 8.72 9.57 8.51 8.52 7.93 7.37 7.15 8.58 7.84 75 6.19 6.77 7.44 8.14 8.77
* Adjusted age of annuitant. M = Male F = Female
Table A above is based on the "1983 Individual Annuitant Mortality Table A." Settlement rates for any age, or any combination of
age and sex not shown above, will be calculated on the same basis as those rates shown in the table above. Such rates will be
furnished by us upon request.
</TABLE>
<PAGE>
PAGE 27
TABLE OF SETTLEMENT RATES (continued)
<TABLE>
<CAPTION>
TABLE B Dollar Amount of Each Monthly Fixed Dollar Annuity Payment Per $1,000 Applied
PLAN A PLAN B PLAN C PLAN D - Joint and Survivor
Adjusted Age of Female Joint Annuitant
Life 5 Years 10 Years 15 Years With Adj
Adj. Income Certain Certain Certain Refund Male 10 Years 5 Years Same 5 Years 10 Years
Age* M F M F M F M F M F Age* Younger Younger Age Older Older
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
40 3.66 3.42 3.65 3.42 3.64 3.42 3.63 3.41 3.57 3.38 40 3.05 3.14 3.23 3.32 3.40
41 3.71 3.46 3.70 3.46 3.69 3.46 3.67 3.45 3.61 3.42 41 3.07 3.17 3.26 3.35 3.43
42 3.76 3.50 3.75 3.50 3.74 3.50 3.72 3.49 3.66 3.45 42 3.10 3.19 3.29 3.39 3.47
43 3.81 3.54 3.81 3.54 3.79 3.54 3.77 3.53 3.70 3.49 43 3.12 3.22 3.32 3.42 3.52
44 3.87 3.59 3.86 3.59 3.85 3.58 3.82 3.57 3.75 3.53 44 3.15 3.25 3.36 3.46 3.56
45 3.93 3.63 3.92 3.63 3.90 3.63 3.87 3.61 3.80 3.57 45 3.17 3.28 3.39 3.50 3.61
46 3.99 3.68 3.98 3.68 3.96 3.67 3.92 3.66 3.85 3.61 46 3.20 3.31 3.43 3.55 3.66
47 4.05 3.73 4.05 3.73 4.02 3.72 3.98 3.71 3.90 3.66 47 3.23 3.35 3.47 3.59 3.71
48 4.12 3.79 4.11 3.79 4.09 3.77 4.04 3.76 3.96 3.70 48 3.26 3.38 3.51 3.64 3.76
49 4.19 3.84 4.18 3.84 4.15 3.83 4.10 3.81 4.01 3.75 49 3.29 3.42 3.56 3.69 3.82
50 4.27 3.90 4.26 3.90 4.22 3.89 4.17 3.86 4.08 3.80 50 3.32 3.46 3.60 3.75 3.88
51 4.34 3.97 4.33 3.96 4.29 3.95 4.23 3.92 4.14 3.86 51 3.36 3.50 3.65 3.80 3.94
52 4.43 4.03 4.41 4.03 4.37 4.01 4.30 3.98 4.20 3.91 52 3.39 3.54 3.70 3.86 4.01
53 4.51 4.10 4.50 4.10 4.45 4.08 4.37 4.04 4.27 3.97 53 3.43 3.59 3.76 3.93 4.08
54 4.60 4.18 4.59 4.17 4.54 4.15 4.45 4.11 4.35 4.03 54 3.47 3.64 3.82 3.99 4.16
55 4.70 4.25 4.68 4.25 4.62 4.22 4.53 4.18 4.42 4.10 55 3.51 3.69 3.88 4.06 4.23
56 4.80 4.34 4.78 4.33 4.72 4.30 4.61 4.25 4.50 4.17 56 3.56 3.74 3.94 4.14 4.32
57 4.91 4.42 4.89 4.41 4.82 4.38 4.69 4.32 4.58 4.24 57 3.60 3.80 4.01 4.22 4.41
58 5.03 4.52 5.00 4.50 4.92 4.47 4.78 4.40 4.67 4.31 58 3.65 3.86 4.08 4.30 4.51
59 5.15 4.61 5.12 4.60 5.03 4.56 4.87 4.48 4.76 4.39 59 3.70 3.92 4.15 4.39 4.61
60 5.28 4.72 5.25 4.70 5.14 4.66 4.96 4.57 4.86 4.48 60 3.76 3.99 4.24 4.49 4.72
61 5.42 4.83 5.39 4.81 5.26 4.76 5.06 4.66 4.96 4.56 61 3.81 4.06 4.32 4.59 4.83
62 5.57 4.95 5.53 4.93 5.39 4.86 5.16 4.75 5.07 4.66 62 3.87 4.13 4.41 4.70 4.96
63 5.74 5.07 5.69 5.05 5.52 4.98 5.26 4.85 5.19 4.75 63 3.94 4.21 4.51 4.81 5.09
64 5.91 5.21 5.85 5.18 5.66 5.10 5.36 4.95 5.30 4.86 64 4.00 4.29 4.61 4.94 5.24
65 6.10 5.35 6.03 5.32 5.81 5.22 5.46 5.05 5.43 4.97 65 4.07 4.38 4.72 5.07 5.39
66 6.29 5.51 6.21 5.47 5.96 5.36 5.56 5.16 5.56 5.08 66 4.15 4.48 4.84 5.21 5.55
67 6.50 5.67 6.41 5.63 6.11 5.50 5.66 5.26 5.70 5.20 67 4.23 4.58 4.97 5.36 5.73
68 6.73 5.85 6.62 5.80 6.28 5.65 5.76 5.37 5.85 5.33 68 4.31 4.69 5.10 5.53 5.92
69 6.97 6.04 6.84 5.98 6.44 5.80 5.86 6.49 6.00 5.47 69 4.40 4.80 5.25 5.70 6.12
70 7.23 6.25 7.07 6.18 6.61 5.96 5.96 6.60 6.16 5.61 70 4.50 4.93 5.40 5.89 6.34
71 7.51 6.47 7.32 6.39 6.78 6.14 6.05 6.71 6.33 5.76 71 4.60 5.06 5.57 6.10 6.57
72 7.80 6.71 7.58 6.62 6.96 6.31 6.14 6.83 6.51 5.93 72 4.71 5.20 5.75 6.31 6.82
73 8.12 6.97 7.85 6.86 7.14 6.50 6.23 6.94 6.70 6.10 73 4.83 5.35 5.94 6.55 7.09
74 8.45 7.26 8.14 7.12 7.32 6.69 6.31 6.04 6.90 6.28 74 4.95 5.51 6.15 6.80 7.37
75 8.82 7.56 8.44 7.39 7.49 6.89 6.38 7.14 7.11 6.48 75 5.08 5.68 6.37 7.07 7.68
* Adjusted age of annuitant. M = Male F = Female
Table B above is based on the "1983 Individual Annuitant Mortality Table A" assuming a 3% annual effective interest rate.
Settlement rates for any age, or any combination of age and sex not shown above, will be calculated on the same basis as those
rates shown in the table above. Such rates will be furnished by us upon request. Amounts shown in the Table below are based on
assuming a 3% annual effective interest rate.
</TABLE>
<TABLE>
<CAPTION>
PLAN E Dollar Amount of Each Monthly Fixed Dollar Annuity Payment Per $1,000 Applied
Years Monthly Years Monthly Years Monthly
Payable Payment Payable Payment Payable Payment
<C> <C> <C> <C> <C> <C>
10 $ 9.61 17 $ 6.23 24 $ 4.84
11 8.86 18 5.96 25 4.71
12 8.24 19 5.73 26 4.59
13 7.71 20 5.51 27 4.47
14 7.26 21 5.32 28 4.37
15 6.87 22 5.15 29 4.27
16 6.53 23 4.99 30 4.18
</TABLE>
<PAGE>
PAGE 28
DEFERRED ANNUITY CONTRACT
- - Flexible purchase payments.
- - Optional fixed dollar or variable accumulation values and annuity
payments.
- - Annuity payments to begin on the retirement date.
- - This contract is nonparticipating. Dividends are not payable.
IDS Life Insurance Company
IDS Tower 10
Minneapolis, MN 55440
<PAGE>
PAGE 1
DEFERRED ANNUITY CONTRACT
- - Flexible purchase payments.
- - Optional fixed dollar or variable accumulation values and annuity
payments.
- - Annuity payments to begin on the retirement date.
- - This contract is nonparticipating. Dividends are not payable.
Annuitant: John Doe
Contract Number: 9310-1234567
Contract Date: October 1, 1993
Retirement Date: October 1, 2013
This is a deferred annuity contract. It is a legal contract
between you, as the owner, and us, IDS Life Insurance Company, a
Stock Company, Minneapolis, Minnesota. PLEASE READ YOUR CONTRACT
CAREFULLY.
If the annuitant is living on the Retirement Date, upon your
request, we will begin to pay you monthly annuity payments. Any
payments made by us are subject to the terms of this contract.
We issue this contract in consideration of your application and the
payment of the purchase payments.
Signed for and issued by IDS Life Insurance Company in Minneapolis,
Minnesota, as of the contract date shown above.
ACCUMULATION VALUES AND ANNUITY PAYMENTS, WHEN BASED ON THE
INVESTMENT RESULTS OF THE SEPARATE ACCOUNTS, ARE VARIABLE AND NOT
GUARANTEED AS TO FIXED DOLLAR AMOUNT. SEE PAGE 9 FOR VARIABLE
PROVISIONS.
NOTICE OF YOUR RIGHT TO EXAMINE THIS CONTRACT FOR 10 DAYS
If for any reason you are not satisfied with this contract, return
it to us or our representative within 10 days after you receive it.
We will then cancel this contract. Upon such cancellation we will
then cancel this contract. Upon such cancellation we will refund
an amount equal to the sum of: (1) the contract value; and (2) any
premium tax charges paid. This contract will then be considered
void from its start.
President
James A. Mitchell
Secretary
William A. Stoltzmann
<PAGE>
PAGE 2
GUIDE TO CONTRACT PROVISIONS
Definitions Important words and meanings/Page 3
General Provisions Entire contract; Incontestability;
Benefits based upon incorrect data;
State Laws; Reports to owner;
Evidence of survival; Protection of
proceeds; Payments by us; Voting
rights/Page 4
Ownership and Beneficiary Owner rights; Trust or custodial
ownership; Change of ownership;
Beneficiary; Change of Beneficiary/
Page 5
Payments to Beneficiary Describes options and amounts
payable upon death/Page 6
Purchase Payments Purchase payments amounts and
intervals; Payment limits;
Allocation of purchase payments/
Page 7
Contract Value Describes the fixed and variable
account contract values; Interest to
be credited; Contract administrative
charge; Premium taxes; Transfers of
contract values/Page 8
Fixed and Variable Accounts Describes the variable accounts,
accumulation units and values; Net
investment factor; Mortality and
expense risk charge; Annuity unit
value/Page 9
Surrender Provisions Surrender of the contract for its
surrender value; Rules for
surrender/Page 10
Annuity Provisions When annuity payments begin;
Different ways to receive annuity
payments; Determination of payment
amounts/Page 12
Table of Settlement Rates Tables showing the amount of the
first variable annuity payment and
fixed annuity payments for the
various Payment plans/Page 14
<PAGE>
PAGE 3
CONTRACT DATA
Annuitant: John Doe
Contract Number: 9310-1234567
Contract Date: October 1, 1993
Retirement Date: October 1, 2013
Contract Owner: John Doe
Deferred Annuity Contract ("Flexible Annuity")
Upon issuance of this contract your purchase payments have been
scheduled to be paid and applied to the fixed and variable accounts
as shown below. You may change the amount, frequency and
allocations as provided in this contract. Refer to the purchase
payments provisions on Page 7.
Amount Submitted With Application: None
Scheduled Purchase Payment:
Annual Amount: $1,200
Variable Purchase Payment
Accounts Mutual Fund Allocation Percentage
F IDS Life Capital Resource Fund 20%
G IDS Life Special Income Fund 20%
H IDS Life Moneyshare Fund 20%
N IDS Life Managed Fund 10%
IZ IDS Life International Equity Fund 10%
JZ IDS Life Aggressive Growth Fund 10%
Fixed Account 10%
Surrender Charge: If you surrender all or a portion of this
contract, a surrender charge of 7% will be
applied to amounts representing 'New Purchase
Payments'. See Page 10 for a definition of
'New Purchase Payments'.
Contract Administrative Charge: $6 per quarter. See Page 8.
Maximum Purchase Payments Permitted:
1st contract year: $1,000,000
Each contract year
thereafter: $ 50,000
<PAGE>
PAGE 4
CONTRACT DATA (continued)
Annuitant: John Doe
Contract Number: 9310-1234567
Fixed Account
Table of Guaranteed Minimum Contract and Surrender Values
Guaranteed Interest Rate: 3% Annual Effective Rate
The following table shows the guaranteed minimum fixed account
contract and surrender values based on these assumptions: (1) $100
purchase payments are received and allocated 100% to the fixed
account at the beginning of each month; (2) There have been no
surrenders; (3) There are no premium tax charges. This table
reflects the $6 per quarter contract administrative charge. If
purchase payments are otherwise paid or allocated or if there are
surrenders, or premium tax charges, the values below will be
adjusted in accordance with the provisions of this contract.
<TABLE>
<CAPTION>
Guaranteed Guaranteed Guaranteed Guaranteed
End of Minimum Minimum End of Minimum Minimum
Contract Fixed Account Fixed Account Contract Fixed Account Fixed Account
Year Contract Value Surrender Value Year Contract Value Surrender Value
<C> <C> <C> <C> <C> <C>
1 $ 1,195.14 $ 1,111.14 11 $15,307.16 $14,803.16
2 2,426.14 2,258.14 12 16,961.51 16,457.51
3 3,694.07 3,442.07 13 18,665.50 18,161.50
4 5,000.04 4,664.04 14 20,420.61 19,916.61
5 6,345.18 5,925.18 15 22,228.37 21,724.37
6 7,730.68 7,226.68 16 24,090.37 23,586.37
7 9,157.74 8,653.74 17 26,008.22 25,504.22
8 10,627.62 10,123.62 18 27,983.61 27,479.61
9 12,141.59 11,637.59 19 30,018.26 29,514.26
10 13,700.98 13,196.98 20 32,113.96 31,609.96
</TABLE>
Variable account contract and surrender values are not guaranteed.
Information concerning contract and surrender values will be
provided to you at any time upon written request.
As of the date this contract was issued, any amounts allocated to
the fixed account will earn interest, for the first year, at the
annual effective rate of 5.15%. If a new rate is declared, it will
apply to amounts paid or allocated to the fixed account after the
new rate is effective.
<PAGE>
PAGE 5
DEFINITIONS
The following words are used often in this contract. When we use
these words, this is what we mean:
annuitant
The person or persons on whose life monthly annuity payments
depend.
you, your
The owner of this contract.
we, our, us
IDS Life Insurance Company.
accumulation unit
An accumulation unit is an accounting unit of measure. It is used
to calculate the contract value prior to settlement.
annuity unit
An annuity unit is an accounting unit of measure. It is used to
calculate the value of annuity payments from the variable accounts
on and after the retirement date.
contract date
It is the date from which contract anniversaries, contract years,
and contract months are determined. Your contract date is shown
under Contract Data.
contract anniversary
The same day and month as the contract date each year that the
contract remains in force.
contract value
The sum of the: (1) Fixed Account Contract Value; and (2) Variable
Account Contract Value.
retirement date
The date shown under Contract Data on which annuity payments are to
begin. This date may be changed as provided in this contract. You
will be notified prior to the retirement date in order to select an
appropriate annuity payment plan.
<PAGE>
PAGE 6
DEFINITIONS (contined)
settlement
The application of the contract value of this contract to provide
annuity payments.
valuation date
A valuation date is each day the New York Stock Exchange is open
for trading.
valuation period
A valuation period is the interval of time commencing at the close
of business on each valuation date and ending at the close of
business on the next valuation date.
fixed account
The fixed account is made up of all our assets other than those in
any separate account.
variable accounts
The variable accounts are named under Contract Data. Each is a
separate investment account of ours.
fixed annuity
A fixed annuity is an annuity with payments which are guaranteed by
us as to dollar amount during the annuity payment period.
variable annuity
A variable annuity is an annuity with payments which (1) are not
predetermined or guaranteed as to dollar amount; and (2) vary in
amount with the investment experience of one or more of the
variable accounts.
written request
A request in writing signed by you and delivered to us at our home
office.
<PAGE>
PAGE 7
GENERAL PROVISIONS
Entire Contract
This contract form is the entire contract between you and us.
No one except one of our corporate officers (President, Vice
President, Secretary or Assistant Secretary) can change or waive
any of our rights or requirements under this contract. That person
must do so in writing. None of our representatives or other
persons has the authority to change or waive any of our rights or
requirements under this contract.
This contract is intended to qualify as an Individual Retirement
Annuity (IRA). We agree to and reserve the right to modify this
contract to the extent necessary to qualify this contract as an
Individual Retirement Annuity as described in Sections 408(b) and
219 of the Internal Revenue Code of 1986, as amended and all
related sections and regulations which are in effect during the
term of the contract.
Incontestable
This contract is incontestable from its date of issue.
Benefits Based on Incorrect Data
If the amount of benefits is determined by data as to a person's
age or sex that is incorrect, benefits will be recalculated on the
basis of the correct data. Any underpayments made by us will be
made up immediately. Any overpayments made by us will be
subtracted from the future payments.
State Laws
This contract is governed by the law of the state in which it is
delivered. The values and benefits of this contract are at least
equal to those required by such state.
Reports to Owner
At least once a year we will send you a statement showing the
contract value and the cash surrender value of this contract. This
statement will be based on any laws or regulations that apply to
contracts of this type.
Evidence of Survival
Where any payments under this contract depend on the recipient or
annuitant being alive on a given date, proof that such condition
has been met may be required by us. Such proof may be required
prior to making the payments.
<PAGE>
PAGE 8
GENERAL PROVISIONS (continued)
Protection of Proceeds
Payments under this contract are not assignable by any beneficiary
prior to the time they are due. To the extent allowed by law,
payments are not subject to the claims of creditors or to legal
process.
Payments By Us
All sums payable by us are payable at our home office. Any payment
of a variable annuity or surrender based on the variable contract
value shall be payable only from the variable accounts.
Voting Rights
So long as federal law requires, we will give certain voting rights
to contract owners. As contract owner, if you have voting rights
we will send a notice to you telling you the time and place of a
shareholder meeting. The notice will also explain matters to be
voted upon and how many votes you get.
Trustee or custodian owners shall cast votes according to
instructions received from appropriate annuitants. All other votes
of such trustee or custodian under the same trust or custodial
agreement shall be cast in the same proportion. If no instructions
are received, the votes may be cast at the trustee's or custodian's
discretion.
<PAGE>
PAGE 9
OWNERSHIP AND BENEFICIARY
Owner's Rights
As long as the annuitant is living you may exercise all rights and
privileges provided in this contract or allowed by us. Your entire
interest is non-forfeitable.
Trust or Custodial Ownership
If you are a tax qualified trust or tax qualified custodial
account, then your trustees or custodian (or their successors)
properly named by your trust or custodial agreement may exercise
all rights and privileges provided in this contract or allowed by
us.
Change of Ownership (Restricted)
Your right to change the ownership of this contract is restricted.
This contract may not be sold, assigned, transferred, discounted or
pledged as collateral for a loan or as security for the performance
of an obligation or for any other purpose to any person other than
as may be required or permitted under Section 408 of the Internal
Revenue Code of 1986, as amended. Your interest in this contract
may be transferred to your former spouse, if any, under a divorce
decree or a written instrument incident to such divorce.
However, if this contract is owned by a trustee of a tax-qualified
trust or the custodian of a tax-qualified custodial account, such
trustee or custodian may transfer ownership of this contract to the
annuitant or to a qualified successor trustee or custodian. Such
transfer shall be effective only if received by us at our home
office. When so received, such transfer shall take effect as of
the date of the instrument, subject to any payment made or other
action taken by us before such receipt.
Beneficiary
Beneficiaries are those you name, in a form satisfactory to us, to
receive benefits of this contract if you or the annuitant dies
while this contract is in force.
Only those beneficiaries who are living when death benefits become
payable may share in the benefits, if any. If no beneficiary is
then living, we will pay the benefits to you, if living, otherwise
to your estate.
Change of Beneficiary
You may change the beneficiary anytime while the annuitant is
living by satisfactory written request to us. Once the change is
recorded by us, it will take effect as of the date of your request,
subject to any action taken or payment made by us before the
recording.
<PAGE>
PAGE 10
PAYMENTS TO BENEFICIARY
Death Benefit Before the Retirement Date
If the annuitant dies before the retirement date and age 75 while
this contract is in force we will pay to the beneficiary the
greater of:
1. the contract value; or
2. the contract value as of the most recent sixth contract
anniversary less any amounts surrendered; or
3. the purchase payments paid less any amounts
surrendered.
If the annuitant dies before the retirement date and on or after
the annuitant's 75th birthday, while this contract is in force, we
will pay to the beneficiary the greater of:
1. the contract value; or
2. the contract value as of the most recent sixth contract
anniversary, less any amounts surrendered.
The above amount will be payable in a lump sum upon the receipt of
due proof of death of the annuitant. The beneficiary may elect to
receive payment anytime within 5 years after the date of death of
the annuitant.
In lieu of a lump sum, payment may be made under an Annuity Payment
Plan, provided:
1. the beneficiary elects the plan within 60 days after we
receive due proof of death; and
2. payments begin no later than one year after the date of
death; and
3. the plan provides payments over a period which does not
exceed the life of the beneficiary, or the life
expectancy of the beneficiary.
In this event, the reference to "annuitant" in the Annuity
Provisions shall apply to the beneficiary.
Any amounts payable or applied by us as described in this section
will be based on the contract value as of the valuation date on or
next following the date on which due proof of death is received at
our Home Office.
Spouse Option to Continue Contract Upon Annuitant's Death
If the annuitant dies prior to the retirement date, a spouse who is
designated as sole beneficiary may elect in writing to forego
receipt of the death benefit and instead continue this contract in
force as its owner and annuitant. The election by the spouse must
be made within 60 days after we receive due proof of death.<PAGE>
PAGE 11
PAYMENTS TO BENEFICIARY (continued)
In this event, the retirement date may not be later than the April
1 following the calendar year in which the spouse attains age
70-1/2, or such other date which allows the spouse to satisfy the
minimum distribution requirements under the Internal Revenue Code
of 1986, as amended, its regulations and/or promulgations by the
Internal Revenue Service.
Annuitant's Death After the Retirement Date
If the annuitant dies after the retirement date, the amount
payable, if any, will be as provided in the Annuity Payment Plan
then in effect.
<PAGE>
PAGE 12
PURCHASE PAYMENTS
Purchase Payments
Purchase payments are the payments you make for this contract and
the benefits it provides. Purchase payments must be paid or mailed
to us at our home office or to an authorized agent. If requested,
we'll give you a receipt for your purchase payments. Upon payment
to us, purchase payments become our property.
Net purchase payments are that part of your purchase payments
applied to the contract value. A net purchase payment is equal to
the purchase payment less any applicable premium tax charge.
Amount and Intervals
Purchase payments may be paid in a single sum or in installments
until the earlier of: (1) the date this contract terminates by
surrender or otherwise; or (2) the date on which annuity payments
begin.
Subject to the Payment Limits Provision you may: (1) stop and/or
restart purchase payments; or (2) increase or decrease the amount
of your purchase payments; or (3) change the interval of your
purchase payments.
With the exception of employer purchase payments made in connection
with a Simplified Employee Pension Plan, no annual purchase
payments may be made with respect to the taxable year in which the
annuitant attains age 70-1/2 or any later year.
Payment Limits Provision
Maximum Purchase Payments - The maximum purchase payments in the
first or later contract years may not exceed the amounts shown
under Contract Data. We reserve the right to increase the
maximums.
Minimum Purchase Payments - Upon issue of this contract, a purchase
payment intended as a Single Purchase Payment must be at least
$1,000. If you intend to make installment purchase payments such
payments, on an annualized basis, must be at least equal to $600.
In addition, except as otherwise provided in this paragraph, the
total purchase payments for any taxable year may not exceed $2,000.
In the case of a rollover contribution described in Sections
402(a)(5), 402(a)(7), 403(a)(4), 403(b)(8) or, 408(d)(3), of the
Internal Revenue Code of 1986, as amended, there is no limit on the
amount of your purchase payment. If this contract is maintained in
connection with a Simplified Employee Pension Plan, employer
purchase payments for any taxable year may not exceed 15% of your
compensation or $30,000, whichever is less. All purchase payments
must be made in cash. If you die before your entire interest in
this contract has been distributed to you, and your beneficiary is
other than your surviving spouse, no additional purchase payments
will be accepted from your beneficiary under this contract.
<PAGE>
PAGE 13
PURCHASE PAYMENTS (continued)
We also reserve the right to cancel this contract if both of the
following conditions exist at the same time: (1) no purchase
payments have been paid for a continuous period of 24 months; and
(2) less than $600 in purchase payments have been paid under this
contract. In this event we will give you 30 days written notice of
our intent to cancel this contract. Upon such cancellation we will
pay you the contract value in one sum. This contract will then
terminate.
Allocation of Purchase Payments
You instruct us on how you want your purchase payments allocated
among the fixed account and variable accounts. Your choice for
each account may be made in any whole percent from 0% to 100% as
long as the total adds up to 100%. Your allocation instructions as
of the Contract Date are shown under Contract Data. By written
request, or by another method agreed to by us, you may change your
choice of accounts or percentages. The first net purchase payment
will be allocated as of the end of the valuation period during
which we make an affirmative decision to issue this contract. Net
purchase payments after the first will be allocated as of the end
of the valuation period during which we receive the payment at our
home office.
<PAGE>
PAGE 14
CONTRACT VALUE
Contract Value
The contract value at any time is the sum of: (1) the Fixed
Account Contract Value; and (2) the Variable Account Contract
Value.
If: (1) part or all of the contract value is surrendered; or (2)
charges described herein are made against the contract value; then
a number of accumulation units from the variable accounts and an
amount from the fixed account will be deducted to equal such
amount. For surrenders, deductions will be made from the fixed or
variable accounts that you specify. Otherwise, the number of units
from the variable accounts and the amount from the fixed account
will be deducted in the same proportion that your interest in each
bears to the total contract value.
Fixed Account Contract Value
The fixed account contract value at any time will be: (1) the sum
of all amounts credited to the fixed account under this contract;
less (2) any amounts deducted for charges or surrenders.
Interest to be Credited
We will credit interest to the fixed account contract value.
Interest will begin to accrue on the date the purchase payments
which are received in our home office become available to us for
use. Such interest will be credited at rates that we determine
from time to time. However, we guarantee that the rate will not be
less than the Guaranteed Interest Rate shown under Contract Data.
Variable Account Contract Value
The variable account contract value at any time will be: (1) the
sum of the value of all variable account accumulation units under
this contract resulting from purchase payments so allocated, or
transfers among the variable and fixed accounts; less (2) any units
deducted for charges or surrenders.
Contract Administrative Charge
We charge a fee for establishing and maintaining our records for
this contract. The charge is $6 per quarter and is deducted from
the contract value at the end of each three-month period measured
from the contract date or, if earlier, when the contract is
surrendered. The charge does not apply after settlement of this
contract.
Premium Tax Charges
A charge will be made by us against the contract value of this
contract at the time that any premium taxes not previously deducted
are payable.
<PAGE>
PAGE 15
CONTRACT VALUE (continued)
Transfers of Contract Values
While this contract is in force prior to the settlement date,
transfer of contract values may be made as outlined below:
1. You may transfer all or a part of the values held in
one or more of the variable accounts to another one or
more of the variable accounts. Subject to item 2, you
may also transfer values held in one or more of the
variable accounts to the fixed account.
2. On or within the 30 days after a contract anniversary
you may transfer values from the fixed account to one
or more of the variable accounts. Only one such
transfer is allowed during this period each year. If
such a transfer is made, no transfers from a variable
account to the fixed account may be made until the next
contract anniversary.
You may make a transfer by written request. Transfer requests may
also be made according to telephone procedures or automated
transfer procedures that are then currently in effect, if any.
There is no fee or charge for these transfers. However, the
minimum transfer amount is $250, or if less, the entire value in
the account from which the transfer is being made. Smaller
minimums may apply to automated transfer procedures. This transfer
privilege may be suspended or modified by us at any time.
<PAGE>
PAGE 16
FIXED AND VARIABLE ACCOUNTS
The Fixed Account
The fixed account is our general account. It is made up of all of
our assets other than: (1) those in the variable accounts; and (2)
those in any other segregated asset account.
The Variable Accounts
The variable accounts are separate investment accounts of ours.
They are named under Contract Data. We have allocated a part of
our assets for this and certain other contracts to the variable
accounts. Such assets remain our property. However, they may not
be charged with the liabilities from any other business in which we
may take part.
Investments of the Variable Accounts
Purchase payments applied to the variable accounts will be
allocated as specified by the owner. Each variable account will
buy, at net asset value, shares of the fund shown for that account
under Contract Data or as later added or changed.
Valuation of Assets
Mutual fund shares in the variable accounts will be valued at their
net asset value.
Variable Account Accumulation Units
The number of accumulation units for each of the variable accounts
is found by dividing: (1) the net amount allocated to the account;
by (2) the accumulation unit value for the account for the
valuation period during which we received the purchase payment.
Variable Account Accumulation Unit Value
The value of an accumulation unit for each of the variable accounts
was arbitrarily set at $1 when the first mutual fund shares were
bought. The value for any later valuation period is found as
follows:
The accumulation unit value for each variable account
for the last prior valuation period is multiplied by
the net investment factor for the same account for the
next following valuation period. The result is the
accumulation unit value. The value of an accumulation
unit may increase or decrease from one valuation period
to the next.
<PAGE>
PAGE 17
FIXED AND VARIABLE ACCOUNTS (continued)
Net Investment Factor
The net investment factor is an index applied to measure the
investment performance of a variable account from one valuation
period to the next. The net investment factor may be greater or
less than one; therefore, the value of an accumulation unit may
increase or decrease.
The net investment factor for any such account for any valuation
period is determined by: dividing (1) by (2) and subtracting (3)
from the result. This is done where:
(1) is the sum of:
a. the net asset value per share of the mutual fund
held in the variable account 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 mutual fund held in
the variable account, if the "ex-dividend" date
occurs during the current valuation period.
(2) is the net asset value per share of the mutual fund
held in the variable account, determined at the end of
the last prior valuation period.
(3) is a factor representing the mortality and expense risk
charge.
Mortality and Expense Risk Charge
In calculating accumulation unit values we will deduct a mortality
and expense risk charge from the variable accounts equal, on an
annual basis, to 1.00% of the daily net asset value. This
deduction is made to compensate us for assuming the mortality and
expense risks under contracts of this type. We estimate that
approximately 2/3 of this charge is for assumption of mortality
risk and 1/3 is for assumption of expense risk. The deduction will
be: (1) made from each variable account; and (2) computed on a
daily basis.
Annuity Unit Value
The value of an annuity unit for each variable account was
arbitrarily set at $1 when the first mutual funds were bought. The
value for any later valuation period is found as follows:
1. The annuity unit value for each variable account for
the last prior valuation period is multiplied by the
net investment factor for the account for the valuation
period for which the annuity unit value is being
calculated.
<PAGE>
PAGE 18
FIXED AND VARIABLE ACCOUNTS (continued)
2. The result is multiplied by an interest factor. This
is done to neutralize the assumed investment rate which
is built into the annuity tables on page 14.
<PAGE>
PAGE 19
SURRENDER PROVISIONS
Surrender
By written request and subject to the rules below you may:
1. surrender this contract for the total surrender value;
or
2. partially surrender this contract for a part of the
surrender value.
Surrender Value
The surrender value at any time will be:
1. the contract value;
2. minus the contract administrative charge;
3. minus any surrender charge.
Surrender Charge
In order to determine if a surrender charge applies to a partial or
total surrender we first divide the contract value into three
parts.
1. Contract Earnings - This is the contract value minus
the sum of all purchase payments we have received that
have not been previously surrendered.
2. Old Purchase Payments - These are purchase payments we
received in any contract year six or more years prior
to the contract year of surrrender.
3. New Purchase Payments - These are purchase payments we
received during the contract year in which the
surrender is made and in the five immediately preceding
contract years.
We will then surrender your contract value in the following order
so that the amount surrendered, less any surrender charge that
applies, equals your requested surrender amount:
1. Contract Earnings, if any, are surrendered first.
There is no surrender charge on contract earnings.
2. Next, if necessary, we surrender Old Purchase Payments
not previously surrendered. There is no surrender
charge on Old Purchase payments.
3. Finally, if necessary, we surrender New Purchase
Payments not previously surrendered. There is a
surrender charge of 7% applied to New Purchase Payments
surrendered.
<PAGE>
PAGE 20
SURRENDER PROVISIONS (continued)
Notwithstanding the previous provisions, the surrender charge is
waived upon the later of:
1. Surrenders made after the annuitant's 65th birthay; or
2. the 10th contract anniversary.
No surrender charges will apply to payments made in the event of
death of the owner or annuitant or to setlement payments using an
annuity payment plan.
Surrender Charge Calculation
The surrender charge for a total surrender is calculated by
multiplying the amount representing new purchase payments by .07.
The surrender charge for a partial surrender is calculated by
dividing the surrender amount requested representing "new purchase
payments" by .93 and multiplying the result by .07.
For example, the surrender charge on a $1,000 partial surrender
request (representing all "new purchase payments") would be $75.27,
resulting from the following calculation: ($1,000/.93) X .07 =
$75.27.
Rules For Surrender
All surrenders will have the following conditions:
1. You must apply by written request or other method
agreed to by us: (a) while this contract is in force;
and (b) prior to the earlier of the retirement date or
the death of the annuitant.
2. Unless we agree otherwise, you must surrender an amount
equal to at least $250. The contract value after a
partial surrender must be at least $600.
3. The amount surrendered, less any charges, will normally
be paid to you within seven days of the receipt of your
written request and this contract, if required. For
surrenders from the fixed account, we have the right to
defer payment to you for up to 6 months from the date
we receive your request.
4. For partial surrenders, if you do not specify from
which accounts the surrender is to be made, the
surrender will be made from the variable accounts and
fixed account in the same proportion as your interest
in each bears to the contract value.
5. Any amounts surrendered and charges which may apply can
not be repaid.
<PAGE>
PAGE 21
SURRENDER PROVISIONS (continued)
Upon surrender for the full surrender value this contract will
terminate. We may require that you return the contract to us
before we pay the full surrender value.
Suspension or Delay in Payment of Surrender
We have the right to suspend or delay the date of any surrender
payment from the variable accounts for any period:
1. When the New York Stock Exchange is closed; or
2. When trading on the New York Stock Exchange is
restricted; or
3. When an emergency exists as a result of which: (a)
disposal of securities held in the variable accounts is
not reasonably practicable; or (b) it is not reasonably
practicable to fairly determine the value of the net
assets of the variable account; or
4. During any other period when the Securities and
Exchange Commission, by order, so permits for the
protection of security holders.
Rules and regulations of the Securities and Exchange Commission
will govern as to whether the conditions set forth in 2 and 3 exit.
<PAGE>
PAGE 22
ANNUITY PROVISIONS
Settlement
When settlement occurs, the contract value will be applied to make
annuity payments. The first payment will be made as of the
retirement date. This date is shown under Contract Data. Before
payments begin we will require satisfactory proof that the
annuitant is alive. We may also require that you exchange this
contract for a supplemental contract which provides the annuity
payments.
Change of Retirement Date
You may change the retirement date shown for this contract. Tell
us the new date by written request. The maximum Retirement Date is
the later of:
1. April 1 following the calendar year in which the
annuitant attains age 70 1/2; or
2. such other date which satisfies the minimum
distribution requirements under Internal Revenue Code
of 1986, as amended, its regulations and/or
promulgations by the Internal Revenue Service; or
3. such other date as agreed upon by us.
Notwithstanding the above, the maximum Retirement Date is the later
of:
1. The contract anniversary on or preceding the
annuitant's 85th birthday; or
2. the 10th contract anniversary.
Also, if you select a new retirement date, it must be at least 30
days after we receive your written request at our home office.
Annuity Payment Plans
Subject to the terms of this contract, annuity payments may be made
on a fixed-dollar basis, a variable basis or a combination of both.
You can schedule receipt of annuity payment according to one of the
Plans A through E below or another plan agreed to by us provided:
1. the Plan selected provides for payments over the life
of the annuitant or over the life of the annuitant and
a joint annuitant; or
2. the Plan selected provides for payments over a period
which does not exceed the life expectancy of the
annuitant, or the life expectancy of the annuitant and
a joint annuitant; and
3. the Plan selected meets the minimum death incidental
benefit requirements under the Internal Revenue Code of
1986, as amended. <PAGE>
PAGE 23
ANNUITY PROVISIONS (continued)
Plan A - This provides monthly annuity payments during
the lifetime of the annuitant. No payments will be
made after the annuitant dies.
Plan B - This provides monthly annuity payments during
the lifetime of the annuitant with a guarantee by us
that payments will be made for a period of at least
five, ten or fifteen years. You must select the
guaranteed period.
Plan C - This provides monthly annuity payments during
the lifetime of the annuitant with a guarantee by us
that payments will be made for a certain number of
months. We determine the number of months by dividing
the amount applied under this Plan by the amount of the
first monthly annuity payment.
Plan D - Monthly payments will be paid during the
lifetime of the annuitant and a joint annuitant. When
either the annuitant or the joint annuitant dies we
will continue to make monthly payments during the
lifetime of the survivor. No payments will be paid
after the death of both the annuitant and joint
annuitant.
Plan E - (Installment for a specified period) This
provides monthly fixed dollar annuity payments for a
period of years. The period of years may be no less
than 10 nor more than 30.
By written request to us at least 30 days before the Retirement
Date, you may select a Plan or elect a lump sum payment of the
surrender value. If at least 30 days before the Retirement Date we
have not received at our home office your written request to select
a Plan, we will make fixed-dollar payments according to Plan B with
payments guaranteed for ten years.
If the amount to be applied to a Plan would not provide an initial
monthly payment of at least $20, we have the right to make a lump
sum payment of the contract value.
Fixed Annuity
A fixed annuity is an annuity with payments that are guaranteed by
us as to dollar amount. Fixed annuity payments after the first
payment will never be less than the amount of the first payment.
At settlement, the fixed account contract value will be applied to
the applicable Annuity Table. This will be done in accordance with
the Payment Plan chosen. The amount payable for each $1,000 so
applied is shown in Table B on page 15.
Variable Annuity
A variable annuity is an annuity with payments which: (1) are not
predetermined or guaranteed as to dollar amount; and (2) vary in
amount with the investment experience of the variable accounts.<PAGE>
PAGE 24
ANNUITY PROVISIONS (continued)
Determination of First Variable Annuity Payment
At settlement, the variable account contract value will be applied
to the applicable Annuity Table. This will be done: (1) on the
valuation date on or next preceding the seventh calendar day before
the retirement date; and (2) in accordance with the Payment Plan
chosen. The amount payable for the first payment for each $1,000
so applied is shown in Table A on page 14.
Variable Annuity Payments After the First Payment
Variable annuity payments after the first payment vary in amount.
The amount changes with the investment performance of the variable
accounts. The dollar amount of variable annuity payments after the
first is not fixed. It may change from month to month. The dollar
amount of such payments is determined as follows:
1. The dollar amount of the first annuity payment is
divided by the value of an annuity unit as of the
valuation date on or next preceding the seventh
calendar day before the retirement date. This result
establishes the fixed number of annuity units for each
monthly annuity payment after the first payment. This
number of annuity units remains fixed during the
annuity payment period.
2. The fixed number of annuity units is multiplied by the
annuity unit value as of the valuation date on or next
preceding the seventh calendar day before the date the
payment is due. This result establishes the dollar
amount of the payment.
We guarantee that the dollar amount of each payment after the first
will not be affected by variations in expenses or mortality
experience.
Exchange of Annuity Units
Annuity units of any variable account may be exchanged for units of
any of the other variable accounts. This may be done no more than
once a year. Once annuity payments start no exchanges may be made
to or from any fixed annuity.
<PAGE>
PAGE 25
TABLE OF SETTLEMENT RATES
Table A below shows the amount of the first monthly variable
annuity payment, based on a 5% assumed investment return, for each
$1,000 of value applied under any Payment Plan. The amount of the
first and all subsequent monthly fixed dollar annuity payments for
each $1,000 of value applied under any Payment Plan will be based
on our fixed dollar Table of Settlement Rates in effect on the
settlement date. Such rates are guaranteed to be not less than
those shown in Table B. The amount of such annuity payments under
Plans A, B, and C will depend upon the sex and adjusted age of the
annuitant on the date of settlement. The amount of such annuity
payments under Plan D will depend upon the sex and the adjusted age
of the annuitant and joint annuitant on the date of settlement.
Adjusted Age shall be equal to the age nearest birthday minus an
"adjustment" depending on the calendar year of birth of the
annuitant as follows:
Calendar
Year of
Annuitant's
Birth Adjustment
Prior to 1920 0
1920 through 1924 1
1925 through 1929 2
1930 through 1934 3
1935 through 1939 4
1940 through 1944 5
1945 through 1949 6
1950 through 1959 7
1960 through 1969 8
1970 through 1979 9
1980 through 1989 10
After 1989 11
<PAGE>
PAGE 26
TABLE OF SETTLEMENT RATES (continued)
<TABLE>
<CAPTION>
TABLE A Dollar Amount of First Monthly Variable Annuity Payment Per $1,000 Applied
PLAN A PLAN B PLAN C PLAN D - Joint and Survivor
Adjusted Age of Joint Annuitant
Life 5 Years 10 Years 15 Years With Adj.
Adj. Income Certain Certain Certain Refund Male 10 years 5 years Same 5 years 10 years
Age* M F M F M F M F M F Age* Younger Younger Age Older Older
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
40 4.91 4.69 4.90 4.68 4.89 4.68 4.86 4.67 4.85 4.66 40 4.36 4.43 4.49 4.56 4.63
41 4.95 4.72 4.95 4.72 4.93 4.71 4.90 4.70 4.88 4.69 41 4.38 4.44 4.52 4.59 4.66
42 5.00 4.75 4.99 4.75 4.97 4.74 4.94 4.73 4.93 4.72 42 4.40 4.47 4.54 4.62 4.69
43 5.05 4.79 5.04 4.79 5.02 4.78 4.98 4.76 4.97 4.75 43 4.41 4.49 4.57 4.65 4.73
44 5.10 4.83 5.09 4.83 5.07 4.82 5.03 4.80 5.01 4.79 44 4.43 4.51 4.60 4.68 4.77
45 5.16 4.87 5.15 4.87 5.12 4.86 5.07 4.84 5.06 4.82 45 4.45 4.54 4.63 4.72 4.81
46 5.21 4.91 5.20 4.91 5.17 4.90 5.12 4.88 5.11 4.86 46 4.47 4.56 4.66 4.76 4.85
47 5.28 4.96 5.26 4.96 5.23 4.94 5.17 4.92 5.16 4.91 47 4.50 4.59 4.69 4.80 4.90
48 5.34 5.01 5.33 5.00 5.29 4.99 5.23 4.96 5.21 4.95 48 4.52 4.62 4.73 4.84 4.94
49 5.41 5.06 5.39 5.05 5.35 5.04 5.28 5.01 5.27 4.99 49 4.55 4.65 4.76 4.88 5.00
50 5.48 5.12 5.46 5.11 5.41 5.09 5.34 5.06 5.33 5.04 50 4.57 4.68 4.80 4.93 5.05
51 5.55 5.17 5.53 5.17 5.48 5.14 5.40 5.11 5.39 5.09 51 4.60 4.72 4.85 4.98 5.11
52 5.63 5.23 5.61 5.23 5.55 5.20 5.46 5.16 5.46 5.15 52 4.63 4.75 4.89 5.03 5.17
53 5.71 5.30 5.69 5.29 5.63 5.26 5.53 5.22 5.53 5.20 53 4.66 4.79 4.94 5.09 5.23
54 5.80 5.37 5.77 5.36 5.70 5.33 5.60 5.28 5.60 5.26 54 4.70 4.84 4.99 5.15 5.30
55 5.89 5.44 5.86 5.43 5.79 5.40 5.67 5.34 5.68 5.33 55 4.73 4.88 5.04 5.21 5.38
56 5.99 5.52 5.96 5.51 5.88 5.47 5.74 5.40 5.76 5.39 56 4.77 4.93 5.10 5.28 5.46
57 6.10 5.60 6.06 5.59 5.97 5.54 5.82 5.47 5.84 5.47 57 4.81 4.98 5.16 5.35 5.54
58 6.21 5.69 6.17 5.68 6.07 5.62 5.90 5.54 5.94 5.54 58 4.85 5.03 5.23 5.43 5.63
59 6.33 5.79 6.29 5.77 6.17 5.71 5.98 5.62 6.03 5.62 59 4.90 5.09 5.30 5.52 5.73
60 6.46 5.89 6.42 5.87 6.28 5.80 6.07 5.69 6.13 5.70 60 4.94 5.15 5.37 5.61 5.83
61 6.60 6.00 6.55 5.97 6.40 5.90 6.16 5.78 6.24 5.79 61 5.00 5.21 5.45 5.70 5.95
62 6.75 6.11 6.69 6.08 6.52 6.00 6.25 5.86 6.36 5.89 62 5.05 5.28 5.54 5.81 6.07
63 6.91 6.23 6.84 6.20 6.64 6.11 6.34 5.95 6.48 5.99 63 5.11 5.35 5.63 5.92 6.20
64 7.09 6.37 7.01 6.33 6.78 6.22 6.43 6.04 6.61 6.10 64 5.17 5.43 5.73 6.04 6.34
65 7.27 6.51 7.18 6.47 6.91 6.34 6.52 6.14 6.74 6.21 65 5.23 5.52 5.83 6.17 6.49
66 7.47 6.66 7.36 6.61 7.06 6.47 6.62 6.24 6.88 6.33 66 5.30 5.61 5.95 6.30 6.65
67 7.68 6.82 7.56 6.77 7.21 6.60 6.71 6.34 7.04 6.46 67 5.38 5.70 6.07 6.45 6.82
68 7.91 7.00 7.76 6.93 7.36 6.74 6.81 6.44 7.19 6.60 68 5.46 5.80 6.20 6.61 7.01
69 8.15 7.19 7.98 7.11 7.52 6.89 6.90 6.54 7.36 6.74 69 5.54 5.92 6.34 6.79 7.21
70 8.41 7.39 8.21 7.31 7.68 7.04 6.98 6.65 7.54 6.90 70 5.63 6.03 6.49 6.97 7.42
71 8.69 7.62 8.46 7.51 7.84 7.21 7.07 6.75 7.73 7.06 71 5.73 6.16 6.65 7.17 7.66
72 8.99 7.86 8.71 7.74 8.01 7.38 7.15 6.86 7.92 7.24 72 5.84 6.30 6.83 7.39 7.90
73 9.31 8.12 8.98 7.98 8.18 7.56 7.23 6.96 8.13 7.42 73 5.95 6.44 7.02 7.62 8.17
74 9.65 8.41 9.27 8.23 8.35 7.74 7.30 7.06 8.35 7.63 74 6.07 6.60 7.22 7.87 8.46
75 10.02 8.72 9.57 8.51 8.52 7.93 7.37 7.15 8.58 7.84 75 6.19 6.77 7.44 8.14 8.77
* Adjusted age of annuitant. M = Male F = Female
Table A above is based on the "1983 Individual Annuitant Mortality Table A." Settlement rates for any age, or any combination of
age and sex not shown above, will be calculated on the same basis as those rates shown in the table above. Such rates will be
furnished by us upon request.
</TABLE>
<PAGE>
PAGE 27
TABLE OF SETTLEMENT RATES (continued)
<TABLE>
<CAPTION>
TABLE B Dollar Amount of Each Monthly Fixed Dollar Annuity Payment Per $1,000 Applied
PLAN A PLAN B PLAN C PLAN D - Joint and Survivor
Adjusted Age of Female Joint Annuitant
Life 5 Years 10 Years 15 Years With Adj
Adj. Income Certain Certain Certain Refund Male 10 Years 5 Years Same 5 Years 10 Years
Age* M F M F M F M F M F Age* Younger Younger Age Older Older
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
40 3.66 3.42 3.65 3.42 3.64 3.42 3.63 3.41 3.57 3.38 40 3.05 3.14 3.23 3.32 3.40
41 3.71 3.46 3.70 3.46 3.69 3.46 3.67 3.45 3.61 3.42 41 3.07 3.17 3.26 3.35 3.43
42 3.76 3.50 3.75 3.50 3.74 3.50 3.72 3.49 3.66 3.45 42 3.10 3.19 3.29 3.39 3.47
43 3.81 3.54 3.81 3.54 3.79 3.54 3.77 3.53 3.70 3.49 43 3.12 3.22 3.32 3.42 3.52
44 3.87 3.59 3.86 3.59 3.85 3.58 3.82 3.57 3.75 3.53 44 3.15 3.25 3.36 3.46 3.56
45 3.93 3.63 3.92 3.63 3.90 3.63 3.87 3.61 3.80 3.57 45 3.17 3.28 3.39 3.50 3.61
46 3.99 3.68 3.98 3.68 3.96 3.67 3.92 3.66 3.85 3.61 46 3.20 3.31 3.43 3.55 3.66
47 4.05 3.73 4.05 3.73 4.02 3.72 3.98 3.71 3.90 3.66 47 3.23 3.35 3.47 3.59 3.71
48 4.12 3.79 4.11 3.79 4.09 3.77 4.04 3.76 3.96 3.70 48 3.26 3.38 3.51 3.64 3.76
49 4.19 3.84 4.18 3.84 4.15 3.83 4.10 3.81 4.01 3.75 49 3.29 3.42 3.56 3.69 3.82
50 4.27 3.90 4.26 3.90 4.22 3.89 4.17 3.86 4.08 3.80 50 3.32 3.46 3.60 3.75 3.88
51 4.34 3.97 4.33 3.96 4.29 3.95 4.23 3.92 4.14 3.86 51 3.36 3.50 3.65 3.80 3.94
52 4.43 4.03 4.41 4.03 4.37 4.01 4.30 3.98 4.20 3.91 52 3.39 3.54 3.70 3.86 4.01
53 4.51 4.10 4.50 4.10 4.45 4.08 4.37 4.04 4.27 3.97 53 3.43 3.59 3.76 3.93 4.08
54 4.60 4.18 4.59 4.17 4.54 4.15 4.45 4.11 4.35 4.03 54 3.47 3.64 3.82 3.99 4.16
55 4.70 4.25 4.68 4.25 4.62 4.22 4.53 4.18 4.42 4.10 55 3.51 3.69 3.88 4.06 4.23
56 4.80 4.34 4.78 4.33 4.72 4.30 4.61 4.25 4.50 4.17 56 3.56 3.74 3.94 4.14 4.32
57 4.91 4.42 4.89 4.41 4.82 4.38 4.69 4.32 4.58 4.24 57 3.60 3.80 4.01 4.22 4.41
58 5.03 4.52 5.00 4.50 4.92 4.47 4.78 4.40 4.67 4.31 58 3.65 3.86 4.08 4.30 4.51
59 5.15 4.61 5.12 4.60 5.03 4.56 4.87 4.48 4.76 4.39 59 3.70 3.92 4.15 4.39 4.61
60 5.28 4.72 5.25 4.70 5.14 4.66 4.96 4.57 4.86 4.48 60 3.76 3.99 4.24 4.49 4.72
61 5.42 4.83 5.39 4.81 5.26 4.76 5.06 4.66 4.96 4.56 61 3.81 4.06 4.32 4.59 4.83
62 5.57 4.95 5.53 4.93 5.39 4.86 5.16 4.75 5.07 4.66 62 3.87 4.13 4.41 4.70 4.96
63 5.74 5.07 5.69 5.05 5.52 4.98 5.26 4.85 5.19 4.75 63 3.94 4.21 4.51 4.81 5.09
64 5.91 5.21 5.85 5.18 5.66 5.10 5.36 4.95 5.30 4.86 64 4.00 4.29 4.61 4.94 5.24
65 6.10 5.35 6.03 5.32 5.81 5.22 5.46 5.05 5.43 4.97 65 4.07 4.38 4.72 5.07 5.39
66 6.29 5.51 6.21 5.47 5.96 5.36 5.56 5.16 5.56 5.08 66 4.15 4.48 4.84 5.21 5.55
67 6.50 5.67 6.41 5.63 6.11 5.50 5.66 5.26 5.70 5.20 67 4.23 4.58 4.97 5.36 5.73
68 6.73 5.85 6.62 5.80 6.28 5.65 5.76 5.37 5.85 5.33 68 4.31 4.69 5.10 5.53 5.92
69 6.97 6.04 6.84 5.98 6.44 5.80 5.86 6.49 6.00 5.47 69 4.40 4.80 5.25 5.70 6.12
70 7.23 6.25 7.07 6.18 6.61 5.96 5.96 6.60 6.16 5.61 70 4.50 4.93 5.40 5.89 6.34
71 7.51 6.47 7.32 6.39 6.78 6.14 6.05 6.71 6.33 5.76 71 4.60 5.06 5.57 6.10 6.57
72 7.80 6.71 7.58 6.62 6.96 6.31 6.14 6.83 6.51 5.93 72 4.71 5.20 5.75 6.31 6.82
73 8.12 6.97 7.85 6.86 7.14 6.50 6.23 6.94 6.70 6.10 73 4.83 5.35 5.94 6.55 7.09
74 8.45 7.26 8.14 7.12 7.32 6.69 6.31 6.04 6.90 6.28 74 4.95 5.51 6.15 6.80 7.37
75 8.82 7.56 8.44 7.39 7.49 6.89 6.38 7.14 7.11 6.48 75 5.08 5.68 6.37 7.07 7.68
* Adjusted age of annuitant. M = Male F = Female
Table B above is based on the "1983 Individual Annuitant Mortality Table A" assuming a 3% annual effective interest rate.
Settlement rates for any age, or any combination of age and sex not shown above, will be calculated on the same basis as those
rates shown in the table above. Such rates will be furnished by us upon request. Amounts shown in the Table below are based on
assuming a 3% annual effective interest rate.
</TABLE>
<TABLE>
<CAPTION>
PLAN E Dollar Amount of Each Monthly Fixed Dollar Annuity Payment Per $1,000 Applied
Years Monthly Years Monthly Years Monthly
Payable Payment Payable Payment Payable Payment
<C> <C> <C> <C> <C> <C>
10 $ 9.61 17 $ 6.23 24 $ 4.84
11 8.86 18 5.96 25 4.71
12 8.24 19 5.73 26 4.59
13 7.71 20 5.51 27 4.47
14 7.26 21 5.32 28 4.37
15 6.87 22 5.15 29 4.27
16 6.53 23 4.99 30 4.18
</TABLE>
<PAGE>
PAGE 28
DEFERRED ANNUITY CONTRACT
- - Flexible purchase payments.
- - Optional fixed dollar or variable accumulation values and annuity
payments.
- - Annuity payments to begin on the retirement date.
- - This contract is nonparticipating. Dividends are not payable.
IDS Life Insurance Company
IDS Tower 10
Minneapolis, MN 55440
