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ANCHOR NATIONAL LIFE INSURANCE COMPANY
A STOCK COMPANY LOS ANGELES, CALIFORNIA
CONTRACT NUMBER P9999999999
OWNER JOHN DOE
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<S> <C> <C>
STATUTORY HOME OFFICE EXECUTIVE OFFICE ANNUITY SERVICE CENTER
2999 NORTH 44TH ST., STE 250 1 SUNAMERICA CENTER P. O. BOX 54299
PHOENIX, AZ 85018 LOS ANGELES, CA 90067-6022 LOS ANGELES, CA 90054-0299
</TABLE>
ANCHOR NATIONAL LIFE INSURANCE COMPANY ("We", "Us", the "Company", or "Anchor
National") agrees to provide benefits to the Owner in accordance with the
provisions set forth in this Contract and in consideration of the Application
and Purchase Payments We received.
THE VALUE OF AMOUNTS ALLOCATED TO THE SEPARATE ACCOUNT DURING THE
ACCUMULATION AND ANNUITY PERIODS IS NOT GUARANTEED. THE VALUE WILL INCREASE
OR DECREASE BASED UPON THE INVESTMENT EXPERIENCE OF THE INVESTMENTS
UNDERLYING THE SUBACCOUNTS YOU CHOOSE.
THE CASH SURRENDER BENEFIT OF AMOUNTS ALLOCATED TO ANY FIXED-MVA ACCOUNT
OPTION INCREASES OR DECREASES BASED ON THE APPLICATION OF THE MARKET VALUE
ADJUSTMENT. THE UNADJUSTED CASH SURRENDER BENEFIT IS AVAILABLE FOR 30 DAYS
AFTER THE END OF THE GUARANTEE PERIOD. THERE IS NO MARKET VALUE ADJUSTMENT
FOR ANY CASH SURRENDER BENEFIT OF AMOUNTS ALLOCATED TO NON-MVA FIXED ACCOUNT
OPTIONS.
RIGHT TO EXAMINE - YOU MAY RETURN THIS CONTRACT TO OUR ANNUITY SERVICE CENTER
OR TO THE AGENT THROUGH WHOM THE CONTRACT WAS PURCHASED WITHIN 10 DAYS AFTER
YOU RECEIVE IT, IF YOU ARE NOT SATISFIED WITH IT. THE COMPANY WILL REFUND THE
CONTRACT VALUE LESS ANY PAYMENT ENHANCEMENT(S) ON THE BUSINESS DAY DURING
WHICH THE CONTRACT IS RECEIVED. UPON SUCH REFUND, THE CONTRACT SHALL BE VOID.
For Individual Retirement Annuities, a refund of the Purchase Payment(s) may
be required. Therefore, We reserve the right to allocate your Purchase
Payment(s) and any Payment Enhancement to the Cash Management Subaccount
until the end of the Right To Examine period. Thereafter, allocations will be
made as shown on the Contract Data Page.
THIS IS A LEGAL DOCUMENT. READ IT CAREFULLY.
/s/ Christine A. Nixon /s/ Eli Broad
----------------------- ----------------
Christine A. Nixon Eli Broad
Assistant Secretary President
INDIVIDUAL FIXED AND
VARIABLE ANNUITY CONTRACT
Nonparticipating
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TABLE OF CONTENTS
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CONTRACT DATA PAGE..................................................................PAGE 3
PURCHASE PAYMENT ALLOCATION.........................................................PAGE 4
DEFINITIONS.........................................................................PAGE 5
PURCHASE PAYMENT PROVISIONS.........................................................PAGE 8
ACCUMULATION PROVISIONS.............................................................PAGE 9
PAYMENT ENHANCEMENT PROVISIONS.....................................................PAGE 11
FEES AND CHARGES...................................................................PAGE 12
TRANSFER PROVISION.................................................................PAGE 12
WITHDRAWAL PROVISION...............................................................PAGE 13
GENERAL PROVISIONS.................................................................PAGE 15
DEATH PROVISIONS...................................................................PAGE 17
ANNUITY PROVISIONS.................................................................PAGE 19
ANNUITY PAYMENT OPTIONS ...........................................................PAGE 21
FIXED ANNUITY PAYMENT OPTIONS TABLE................................................PAGE 22
VARIABLE ANNUITY PAYMENT OPTIONS TABLE.............................................PAGE 25
</TABLE>
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CONTRACT DATA PAGE
CONTRACT NUMBER: ANNUITY SERVICE CENTER:
P9999999999 P. O. BOX 54299
LOS ANGELES, CA 90054-0299
OWNER: AGE AT ISSUE:
JOHN DOE 35
ANNUITANT: INITIAL PURCHASE PAYMENT:
JOHN DOE $10,000.00
ANNUITY DATE: CONTRACT DATE:
JUNE 7, 2030 JUNE 7, 2000
LATEST ANNUITY DATE: UPFRONT PAYMENT ENHANCEMENT:
JUNE 7, 2055 [2.0%]
BENEFICIARY: FIXED ACCOUNT -
As stated on the Application Form Minimum Guarantee Rate: 3.0%
MORTALITY RISK CHARGE: EXPENSE RISK CHARGE:
[0.90%] [0.35%]
ANNUAL CONTRACT ADMINISTRATION CHARGE: DISTRIBUTION EXPENSE CHARGE:
$35.00 [0.15%]
SEPARATE ACCOUNT:
VARIABLE ANNUITY ACCOUNT FIVE
PAYMENT ENHANCEMENT SCHEDULE
PAYMENT ENHANCEMENT SCHEDULE FOR INITIAL PURCHASE PAYMENT
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<CAPTION>
PAYMENT ENHANCEMENT DATE UPFRONT PAYMENT ENHANCEMENT AMOUNT
<S> <C>
UPFRONT PAYMENT ENHANCEMENT:
JUNE 7, 2000 $200.00
DEFERRED PAYMENT ENHANCEMENT(S):
[JUNE 7, 2008] [$200.00]
</TABLE>
Deferred Payment Enhancement amount(s), if any, may be reduced by certain
withdrawals of Contract Value. Please see Payment Enhancement Provisions.
FOR INQUIRIES
CALL 1-800-445-SUN2
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PURCHASE PAYMENT ALLOCATION
SUBACCOUNTS
80.00% Growth Strategy
0.00% Moderate Growth Strategy
0.00% Balanced Growth Strategy
0.00% Conservative Growth Strategy
0.00% Large Cap Growth Portfolio
0.00% Large Cap Composite Portfolio
0.00% Large Cap Value Portfolio
0.00% Mid Cap Growth Portfolio
0.00% Mid Cap Value Portfolio
0.00% Small Cap Portfolio
0.00% International Equity Portfolio
0.00% Diversified Fixed Income Portfolio
0.00% Cash Management Portfolio
0.00% Focus Growth Portfolio
FIXED ACCOUNT OPTIONS
<TABLE>
<CAPTION>
GUARANTEE INITIAL
PERIOD INTEREST RATE
<S> <C> <C>
20.00% 1 Year Fixed Non-MVA 3.00%
0.00% 3 Year Fixed MVA
0.00% 5 Year Fixed MVA
0.00% 7 Year Fixed MVA
0.00% 10 Year Fixed MVA
</TABLE>
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DEFINITIONS
Defined in this section are some of the words and phrases used in this
Contract. These terms are capitalized when used in the Contract. Other
capitalized terms in the Contract refer to the captioned paragraph explaining
that particular concept in the Contract.
ACCUMULATION UNIT
A unit of measurement used to compute the Contract Value in a Subaccount
prior to the Annuity Date.
AGE
Age as of last birthday.
ANNUITANT
The natural person or persons (collectively, Joint Annuitants) whose life or
lives is/are used to determine the annuity benefits under the Contract. If
the Contract is in force and the Annuitant(s) is/are alive on the Annuity
Date, We will begin payments to the Payee. This Contract cannot have Joint
Annuitants if it is issued in connection with a tax-qualified retirement plan.
ANNUITY DATE
The date on which annuity payments ("income payments") to the Payee are to
start. The Owner must specify the Annuity Date, which must be at least two
years after the Contract Date.
ANNUITY SERVICE CENTER
As specified on the Contract Data Page.
ANNUITY UNIT
A unit of measurement used to compute annuity payments from the Subaccounts.
BENEFICIARY
The Beneficiary is as named by You unless later changed by You in a written
request to Us at Our Annuity Service Center.
CONTRACT DATE
The date Your Contract is issued, as shown on the Contract Data Page. It is
the date from which Contract Years and anniversaries are measured.
CONTRACT VALUE
The sum of: (1) Your share of the Subaccounts' Accumulation Unit values and
(2) the value of amounts allocated to the Fixed Account Options.
CONTRACT YEAR
A year starting from the Contract Date in one calendar year and ending on the
day preceding the anniversary of such date in the succeeding calendar years.
CONTRIBUTION YEAR
A year starting from the date of the Purchase Payment in one calendar year
and ending on the day preceding the anniversary of such date in the
succeeding calendar years.
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CURRENT INTEREST RATE
The rates of interest declared by Us applicable to allocations of Subsequent
Purchase Payments to the Fixed Account Options. The Current Interest Rate
will not be less than the Minimum Guarantee Rate as shown on the Contract
Data Page.
DEFERRED PAYMENT ENHANCEMENT
Any Payment Enhancement allocated to Your Contract Value on any Deferred
Payment Enhancement Date.
FIXED ACCOUNT OPTIONS
The investment options under this Contract that are credited with a fixed
rate of interest declared by the Company. All Purchase Payments allocated to
the Fixed Account Options become part of the Company's general asset account.
The general asset account contains all the assets of the Company except for
the Separate Account and other segregated asset accounts. The Fixed Account
Options for this Contract are shown on page 4.
FIXED ANNUITY
A series of periodic annuity payments of predetermined amounts that do not
vary with investment experience. Such payments are made from the Company's
general asset account.
GUARANTEE PERIOD
The period for which either the Initial Interest Rate, the Current Interest
Rate or the Renewal Interest Rate is credited to the amounts allocated to the
Fixed Account Options.
INITIAL INTEREST RATE
The rate(s) of interest credited to any portion of the Initial Purchase
Payment allocated to the Fixed Account Option(s), as described in the
Accumulation Provisions section. The Initial Interest Rate(s) for this
Contract is/are listed on page 4. The Initial Interest Rate may not be less
than the Minimum Guarantee Rate as shown on the Contract Data Page.
IRC
The Internal Revenue Code of 1986 or as it may be amended or superseded.
JOINT OWNER
If Joint Owners are named, they must be spouses. Each Joint Owner has an
equal ownership interest in the Contract unless We are advised otherwise in
writing.
NYSE
New York Stock Exchange
OWNER
The person or entity named in the Contract who is entitled to exercise all
rights and privileges of ownership under the Contract. Owner means both Joint
Owners if applicable.
PAYEE
The person receiving payment of annuity benefits under this Contract.
PAYMENT ENHANCEMENT
Payment Enhancements are amounts based on a percentage of Your Purchase
Payment(s) allocated to Your Contract Value by Us. Payment Enhancements are
not considered Purchase Payments. The Payment Enhancement percentages are
indicated on the Contract Data Page 3.
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PURCHASE PAYMENTS
Payments in U.S. currency made by or on behalf of the Owner to the Company
for the Contract. Payment Enhancements are not considered Purchase Payments.
RENEWAL INTEREST RATE
The rate(s) of interest declared by Us applicable to transfers from the
Subaccounts into any of the Fixed Account Options and to amounts previously
allocated to a Fixed Account Option wherein the Guarantee Period has expired.
The Renewal Interest Rate may not be less than the Minimum Guarantee Rate as
shown on the Contract Data Page.
SEPARATE ACCOUNT
The segregated asset account named on the Contract Data Page. The Separate
Account consists of several Subaccounts each investing in shares of the
Underlying Fund(s). The assets of the Separate Account are not commingled
with the general assets and liabilities of the Company. Each Subaccount is
not chargeable with liabilities arising out of any other Subaccount. The
value of amounts allocated to the Subaccounts of the Separate Account is not
guaranteed.
SUBACCOUNT
One or more divisions of the Separate Account which invests in shares of the
corresponding Underlying Fund of the [Anchor Series Trust or the SunAmerica
Series Trust]. Each Subaccount has its own investment objective and is not
chargeable with liabilities arising out of any other Subaccount. The
available Subaccounts are shown on page 4. Additional Subaccounts may become
available in the future.
SUBSEQUENT PURCHASE PAYMENTS
Purchase Payments made subsequent to the Initial Purchase Payment.
TOTAL INVESTED AMOUNT
The sum of all Purchase Payments less amounts previously withdrawn that
incurred a Withdrawal Charge, less Purchase Payments withdrawn that were no
longer subject to a Withdrawal Charge.
UNDERLYING FUND
The variable investment options in which the corresponding Subaccount(s)
invest.
UPFRONT PAYMENT ENHANCEMENT
The Payment Enhancement allocated to Your Contract Value on the date a
Purchase Payment is credited to Your Contract.
VARIABLE ANNUITY
A series of periodic annuity payments, which vary in amount according to the
investment experience of one or more Subaccounts, as selected by You.
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WE, OUR, US, THE COMPANY
Anchor National Life Insurance Company.
YOU, YOUR
The Owner.
PURCHASE PAYMENT PROVISIONS
PURCHASE PAYMENTS
Purchase Payments are flexible. This means that, subject to Company declared
minimums and maximums, You may change the amounts, frequency or timing of
Purchase Payments. Purchase Payments may be allocated to the Fixed Account
Options and one or more Subaccounts in accordance with instructions from You.
We reserve the right to specify the minimum Purchase Payment that may be
allocated to a Subaccount under the Contract.
DEFERMENT OF PAYMENTS
We may defer making payments from the Fixed Account Options for up to six (6)
months. Interest, subject to state requirements, will be credited during the
deferral period.
SUSPENSION OF PAYMENTS
We may suspend or postpone any payments from the Subaccounts if any of the
following occur:
(a) the NYSE is closed,
(b) trading on the NYSE is restricted,
(c) an emergency exists such that it is not reasonably practical to dispose
of or determine the value of the assets held in a Subaccount, or
(d) the Securities and Exchange Commission, by order, so permits for the
protection of Owners.
Conditions in (b) and (c) will be decided by or in accordance with rules of the
Securities and Exchange Commission.
SUBSTITUTION OF INVESTMENT PORTFOLIOS
If: (a) the shares of the underlying investment portfolios in which the
Subaccounts invest should no longer be available for investment by the Separate
Account; or (b) if further investment in the shares of an investment portfolio
is no longer appropriate in view of the purpose of the Contract, then We may
substitute shares of another underlying investment series, for shares already
purchased, or to be purchased in the future by Purchase Payments under the
Contract. No substitution of securities may take place without prior approval of
the Securities and Exchange Commission and under such requirements as it may
impose.
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ACCUMULATION PROVISIONS
SEPARATE ACCOUNT ACCUMULATION VALUE
The Separate Account Accumulation Value under the Contract shall be the sum of
the values of the Accumulation Units held in the Subaccounts for the Owner.
NUMBER OF ACCUMULATION UNITS
Your Contract is credited with Accumulation Units of the Separate Account when
Purchase Payments are allocated to the Subaccounts. For that portion of each
Purchase Payment allocated to a Subaccount, the number of Accumulation Units
credited is equal to the sum of each Purchase Payment, any Payment Enhancement
and/or transfer amount allocated to that Subaccount, reduced by premium taxes,
if any:
DIVIDED BY
The Accumulation Unit value for that Subaccount for the NYSE business day on
which the Purchase Payment, Payment Enhancement or transfer amount is allocated.
The number of Accumulation Units will be similarly adjusted for withdrawals,
annuitizations, transfers, Contract Administration Charge and Withdrawal Charge.
Adjustments will be made as of the end of the NYSE business day in which We
receive all requirements for the transaction, as appropriate.
ACCUMULATION UNIT VALUE (AUV)
The AUV of a Subaccount for any NYSE business day is calculated by subtracting
(2) from (1) and dividing the result by (3) where:
(1) is the total value at the end of the given NYSE business day of the
assets attributable to the Accumulation Units of the Subaccount minus
the total liabilities;
(2) is the cumulative unpaid charge for assumption of Expense Risk,
Distribution Expense and Mortality Risk charges (See FEES AND CHARGES);
(3) is the number of Accumulation Units outstanding at the end of the given
NYSE business day.
FIXED ACCOUNT ACCUMULATION VALUE
Under a Contract, the Fixed Account Accumulation Value shall be the sum of all
monies allocated or transferred to the Fixed Account Option(s), reduced by any
applicable premium taxes, plus all interest credited on the Fixed Account
Option(s) during the period that the Contract has been in effect. This amount
shall be adjusted for withdrawals, annuitizations, transfers, Contract
Administration Charge and Withdrawal Charge. The Fixed Account Accumulation
Value shall not be less than the minimum values required by law in the state
where this Contract is issued.
FIXED ACCOUNT GUARANTEE PERIOD OPTIONS AND INTEREST CREDITING
Any amounts allocated to the Fixed Account Options from the Initial Purchase
Payment and corresponding Upfront Payment Enhancement will earn interest at the
Initial Interest Rate for the Fixed Account Option(s) selected for the duration
of the Guarantee Period.
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Subsequent Purchase Payments and the Upfront Payment Enhancement for Subsequent
Purchase Payments, if any, allocated to the Fixed Account Options will earn
interest at the Current Interest Rate for the Fixed Account Option(s) selected
for the duration of the Guarantee Period.
Transfers to the Fixed Account Options from the Subaccounts and amounts renewed
into the Fixed Account Options will earn interest at the Renewal Interest Rate
for the Fixed Account Option(s) selected for the duration of the Guarantee
Period.
For thirty (30) days following the date of expiration of a Guarantee Period, You
may renew for the same or any other Guarantee Period at the Renewal Interest
Rate or You may transfer all or a portion of the amount to the Subaccounts. If
the Owner does not specify a Guarantee Period at the time of renewal, We will
select the same Guarantee Period as has just expired, crediting the Contract
with the Renewal Interest Rate in effect on the date of expiration of the
Guarantee Period, so long as such Guarantee Period does not extend beyond the
Annuity Date. If a renewal occurs within one year of the latest Annuity Date, We
will credit interest up to the Annuity Date at the Renewal Interest Rate for the
One Year Fixed Account Option.
MARKET VALUE ADJUSTMENT (MVA)
Any payments and values based on a multi-year Fixed Account Option may be
subject to a MVA, the operation of which may result in upward or downward
adjustments in the Contract Value, if withdrawn, transferred or annuitized prior
to the end of the respective Guarantee Period. The MVA will be calculated by
multiplying the amount withdrawn, transferred or annuitized by the formula
described below:
N/12
{(1 + I)/(1+J+0.005)} -1
I = The interest rate currently in effect for that Guarantee Period.
J = The Initial Interest Rate available for the Guarantee Period equal to the
number of years (rounded up to an integer) remaining in the current Guarantee
Period at the time of withdrawal, transfer or annuitization. In the
determination of J, if the Company currently does not offer the applicable
Guarantee Period, then the rate will be determined by linear interpolation of
the Initial Interest Rate for the nearest two Guarantee Periods that are
available.
N = The number of full months remaining in the current Guarantee Period at the
time the withdrawal or annuitization request is processed.
If a Withdrawal Charge is applied to a withdrawal, then the MVA will be applied
to the withdrawal amount net of the Withdrawal Charge.
There will be no MVA on withdrawals from the Fixed Account Options in the
following situations: (1) to pay a Death Benefit upon death of the Owner; (2) on
amounts withdrawn to pay fees or charges; (3) on amounts withdrawn from the
Fixed Account Options within thirty (30) days after the end of the Guarantee
Period; (4) on annuitizations on the Latest Annuity Date; (5) on amounts
withdrawn from the 1-Year Fixed Account Option.
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PAYMENT ENHANCEMENT PROVISIONS
Payment Enhancements are amounts allocated to Your Contract Value by Us. Payment
Enhancements are not considered Purchase Payments. Payment Enhancements are
subject to Our terms and conditions as discussed below.
PAYMENT ENHANCEMENT FOR INITIAL PURCHASE PAYMENT
We will allocate the Upfront Payment Enhancement shown on the Contract Data Page
to the Fixed Account Options and Subaccounts in the same proportion as Your
Initial Purchase Payment. The Upfront Payment Enhancement will be allocated on
Your Contract Date.
We will allocate any Deferred Payment Enhancement(s) shown on the Contract Data
Page to the Cash Management Portfolio on the corresponding Deferred Payment
Enhancement Date(s) shown. Any Deferred Payment Enhancement(s) will be reduced
proportionately by Partial Withdrawals (including any fees or charges associated
with such withdrawals) of the Initial Purchase Payment(s), prior to the Deferred
Payment Enhancement Date(s).
PAYMENT ENHANCEMENT FOR SUBSEQUENT PURCHASE PAYMENT(S)
The Upfront Payment Enhancement for Subsequent Purchase Payments is a percentage
of each Subsequent Purchase Payment. We will allocate the Upfront Payment
Enhancement for the Subsequent Purchase Payment to the Fixed Account Options and
Subaccounts in the same proportion as that Subsequent Purchase Payment.
We will allocate any Deferred Payment Enhancement(s) for Subsequent Purchase
Payments to the Cash Management Portfolio. Deferred Payment Enhancement(s)
corresponding to Subsequent Purchase Payments will be reduced proportionately by
Partial Withdrawals (including any fees or charges associated with such
withdrawals) of that Subsequent Purchase Payment, prior to the Deferred Payment
Enhancement Date(s).
The Upfront Payment Enhancement, and if applicable, any Deferred Payment
Enhancement(s) and Deferred Payment date(s) for Subsequent Purchase Payments
will be the Payment Enhancement percentages and Payment Enhancement dates in
effect at the time We receive Your Subsequent Purchase Payment. The amount of
any applicable Payment Enhancement(s) will be shown on the confirmation report
We send to You after Your Subsequent Purchase Payment is received by Us.
DEFERRED PAYMENT ENHANCEMENTS
For purposes of determining a Deferred Payment Enhancement, Partial Withdrawals
are assumed to be withdrawn from earnings first, then from Purchase Payments on
a first-in-first-out (FIFO) basis. No Deferred Payment Enhancement will be
allocated if prior to the Deferred Payment Enhancement Date: (a) the Contract
Value is fully withdrawn; or (b) a death benefit has been paid; or (c) Annuity
payments have begun; or (d) the entire Purchase Payment to which the Deferred
Payment Enhancement corresponds has been withdrawn.
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FEES AND CHARGES
We will deduct the following charges from the Contract:
CONTRACT ADMINISTRATION CHARGE
The charge specified on the Contract Data Page will be deducted on each Contract
anniversary that occurs on or prior to the Annuity Date. It will also be
deducted when the Contract Value is withdrawn in full if withdrawal is not on
the Contract anniversary. We reserve the right to assess a charge on a class
basis, which is less than the charge specified on the Contract Data Page.
EXPENSE RISK CHARGE
On an annual basis this charge, as shown on the Contract Data Page, equals a
percentage of the average daily ending value of the assets attributable to the
Accumulation Units of the Subaccounts to which the Contract is allocated. We
subtract this charge daily. This charge is to compensate Us for assuming the
expense risks under the Contract.
DISTRIBUTION EXPENSE CHARGE
On an annual basis this charge, as shown on the Contract Data Page, equals a
percentage of the average daily ending value of the assets attributable to the
Accumulation Units of the Subaccounts to which the Contract is allocated. We
subtract this charge daily. This charge is to compensate Us for all distribution
expenses associated with the Contract.
MORTALITY RISK CHARGE
On an annual basis this charge, as shown on the Contract Data Page, equals a
percentage of the average daily ending value of the assets attributable to the
Accumulation Units of the Subaccounts to which the Contract is allocated. We
subtract this charge daily. This charge is to compensate Us for assuming the
mortality risks under the Contract.
TRANSFER PROVISION
Prior to the Annuity Date, You may transfer all or part of Your Contract Value
to any of the Subaccounts or Fixed Account Options. We reserve the right to
charge a fee for transfers if the number of transfers exceeds the limit
specified by Us. The minimum amount that can be transferred and the amount that
can remain in a Subaccount or Fixed Account Option are subject to Company
limits.
TRANSFERS OF ACCUMULATION AND ANNUITY UNITS BETWEEN SUBACCOUNTS
Prior to the Annuity Date, You may transfer all or a portion of Your Contract
Value from one Subaccount to another Subaccount. A transfer will result in the
purchase of Accumulation Units in a Subaccount and the redemption of
Accumulation Units in the other Subaccount. Transfers will be effected at the
end of the NYSE business day in which We receive Your completed request for the
transfer.
After the Annuity Date, You may transfer all or a portion of Your Contract Value
from one Subaccount to another Subaccount. A transfer will result in the
purchase of Annuity Units in a Subaccount and the redemption of Annuity Units in
the other Subaccount. Transfers will be
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effected at the end of the NYSE business day in which We receive Your
completed request for the transfer.
The minimum amount that can be transferred between Subaccounts and the amount
that can remain in the Subaccount are subject to Company limits.
TRANSFERS OF ACCUMULATION UNITS TO AND FROM THE FIXED ACCOUNT
Prior to the Annuity Date, You may transfer all or any part of Your Contract
Value from the Subaccount(s) to any Fixed Account Option(s) or from the Fixed
Account Option(s) to the Subaccount(s) of the Contract.
After the Annuity Date, transfers into or out of the Fixed Account Options are
not allowed.
WITHDRAWAL PROVISION
On or before the Annuity Date and while the Owner is living, You may withdraw
all or part of Your Contract Value under this Contract by informing Us at Our
Annuity Service Center. For a full withdrawal, this Contract must be returned to
Our Annuity Service Center. The minimum amount that can be withdrawn and the
amount remaining after withdrawal are subject to Company limits.
Without a written notice to the contrary, withdrawals will be deducted from the
Contract Value in proportion to their allocation among the Fixed Account Options
and the Subaccounts. Withdrawals will be based on values at the end of the NYSE
business day in which the request for withdrawal and the Contract (in the case
of a full withdrawal), are received at the Annuity Service Center. Unless the
SUSPENSION OF PAYMENTS or DEFERMENT OF PAYMENTS sections are in effect, payment
of withdrawals will be made within seven calendar days.
WITHDRAWAL CHARGE
Withdrawals of all or a portion of the Contract Value may be subject to a
Withdrawal Charge as shown in the chart below. The Withdrawal Charge applied to
any withdrawal will depend on how long the Purchase Payment to which the
withdrawal is attributed has been in the Contract. No Withdrawal Charge is made
on an amount withdrawn, which is considered to be a withdrawal of penalty-free
earnings.
For the purpose of determining the Withdrawal Charge, a withdrawal will be
attributed to amounts in the following order: (1) penalty-free earnings in the
Contract; (2) Purchase Payments which are both no longer subject to the
Withdrawal Charge and are not yet withdrawn; (3) any remaining Penalty-Free
Withdrawal amount (except in the case of a full surrender); and (4) Purchase
Payments subject to a Withdrawal Charge. Purchase Payments, when withdrawn, are
assumed to be withdrawn on a first-in-first-out (FIFO) basis. You will not
receive the benefit of a Penalty-Free Withdrawal in a full surrender.
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<TABLE>
<CAPTION>
Number of Years Elapsed Withdrawal Charge as a
Between Purchase Payment Contribution Percentage of Withdrawn
and Date of Withdrawal Purchase Payment
--------------------------------------------- -------------------------------
<S> <C>
0 9%
1 8%
2 7%
3 6%
4 6%
5 5%
6 4%
7 3%
8 2%
9+ 0%
</TABLE>
The Withdrawal Charge will be assessed against the Subaccounts and the Fixed
Account Options in the same proportion as the remaining Contract Value is
allocated unless You request that the withdrawal come from a particular Fixed
Account Option or Subaccount. If the remaining Contract Value is insufficient to
cover the Withdrawal Charge, any remaining balance will be deducted from the
withdrawal amount requested.
PENALTY-FREE WITHDRAWALS
As of any day, You may make a withdrawal of up to the Penalty-Free Withdrawal
amount for that day without incurring a Withdrawal Charge. Any Penalty-Free
Withdrawal made in excess of penalty-free earnings in the Contract is considered
to be a withdrawal of future penalty-free earnings and is therefore not a
withdrawal of the Total Invested Amount. On any day, penalty-free earnings in
the Contract are calculated as the Contract Value at the end of that day less
the Total Invested Amount.
During the first Contract Year, the maximum Penalty-Free Withdrawal amount as of
the date of the withdrawal is the greater of:
(a) penalty-free earnings in the Contract as of that date; or
(b) through the Systematic Withdrawal Program, 10% of the Total Invested
Amount on deposit for at least one year, less any withdrawals already
made during the year.
After the first Contract Year, the maximum Penalty-Free Withdrawal amount as of
the date of the withdrawal is the greater of:
(a) penalty-free earnings in the Contract as of that date; or
(b) 10% of the Total Invested Amount on deposit for at least one year, less
any withdrawals already made during the year.
Although amounts withdrawn free of a Withdrawal Charge may reduce principal,
they do not reduce the Total Invested Amount for purposes of calculating the
Withdrawal Charge or for the purposes of calculating penalty-free earnings in
the Contract. As a result, You will not receive the benefit of a Penalty-Free
Withdrawal in a full surrender.
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SYSTEMATIC WITHDRAWAL PROGRAM
Prior to the Annuity Date, You may elect to participate in the Systematic
Withdrawal Program by informing Us at Our Annuity Service Center. The
Systematic Withdrawal Program allows You to make automatic withdrawals from
your account monthly, quarterly, semiannually or annually. The minimum
systematic withdrawal amount is subject to Company limits. Any amount
withdrawn through the Systematic Withdrawal Program may be subject to a
Withdrawal Charge and a Market Value Adjustment as discussed in the
WITHDRAWAL CHARGE, PENALTY-FREE WITHDRAWALS and MARKET VALUE ADJUSTMENT
provisions. You may terminate Your participation in the Systematic Withdrawal
Program at any time by sending a written request to Us.
Systematic withdrawals will be deducted from the Penalty-Free Withdrawal amount
available each Contract Year.
GENERAL PROVISIONS
ENTIRE CONTRACT
The entire contract between You and Us consists of the Application as completed
by You at the time of purchase, this Contract and any attached endorsement(s).
An agent cannot change the terms or conditions of this Contract. Any change must
be in writing and approved by Us. Only Our President, Secretary, or one of Our
Vice-Presidents can give Our approval.
CHANGE OF ANNUITANT
If the Owner is an individual, the Owner may change the Annuitant at any time
prior to the Annuity Date. To make a change, the Owner must send a written
notice to Us at least 30 days before the Annuity Date. If the Owner is not an
individual, the Owner may not change the Annuitant.
DEATH OF ANNUITANT
If the Owner and Annuitant are different and the Annuitant dies before the
Annuity Date, the Owner becomes the Annuitant until such time as the Owner
elects a new Annuitant. If there are Joint Annuitants, upon the death of any
Annuitant prior to the Annuity Date, the Owner may elect a new Joint Annuitant.
However, if the Owner is a non-natural person, We will treat the death of any
Annuitant as the death of the "primary Annuitant" and as the death of the Owner,
see DEATH PROVISIONS.
MISSTATEMENT OF AGE OR SEX
If the Age or sex of any Annuitant has been misstated, future annuity payments
will be adjusted using the correct Age and sex, according to Our rates in effect
on the date that annuity payments were determined. Any overpayment from the
Fixed Annuity Payment Options, plus interest at the rate of 4% per year, will be
deducted from the next payment(s) due. Any underpayment from the Fixed Annuity
Payment Options, plus interest at the rate of 4% per year, will be paid in full
with the next payment due. Any overpayment from the Subaccounts will be deducted
from the next payment(s) due. Any underpayment from the Subaccounts will be paid
in full with the next payment due.
15
<PAGE>
PROOF OF AGE, SEX, OR SURVIVAL
The Company may require satisfactory proof of correct Age or sex at any time. If
any payment under this Contract depends on the Annuitant being alive, the
Company may require satisfactory proof of survival.
CONFORMITY WITH STATE LAWS
The provisions of this Contract will be interpreted by the laws of the state in
which the Application Form was signed or such state as is required by law. Any
provision which, on the Contract Date, is in conflict with the law of such state
is amended to conform to the minimum requirements of such law.
CHANGES IN LAW
If the laws governing this Contract or the taxation of benefits under the
Contract change, We reserve the right to amend this Contract to comply with
these changes.
ASSIGNMENT
You may assign this Contract before the Annuity Date, but We will not be bound
by an assignment unless it is received by Us in writing. Your rights and those
of any other person referred to in this Contract will be subject to the
assignment. Certain assignments may be taxable. We do not assume any
responsibility for the validity or tax consequences of any assignment.
CLAIMS OF CREDITORS
To the extent permitted by law, no rights or proceeds payable under this
Contract will be subject to claims of creditors or legal process.
PREMIUM TAXES AND OTHER TAXES
The Company may deduct from Your Contract Value any premium tax or other taxes
payable to a state or other government entity, if applicable. Should We advance
any amount so due, We are not waiving any right to collect such amount at a
later date. The Company will deduct any withholding taxes required by applicable
law.
WRITTEN NOTICE
Any notice We send to You will be sent to Your address shown in the Application
unless You request otherwise. Any written request or notice to Us must be sent
to Our Annuity Service Center, as specified on the Contract Data Page.
PERIODIC REPORTS
During each Contract Year, We will send You quarterly statements of the account
activity of the Contract as well as confirmation reports after each financial
transaction. The statement will include all transactions, which have occurred
during the quarterly accounting period shown on the statement.
INCONTESTABILITY
This Contract will be incontestable from the Contract Date.
NONPARTICIPATING
This Contract does not share in Our surplus.
16
<PAGE>
DEATH PROVISIONS
Notwithstanding any provision of this Contract to the contrary, all payments of
benefits under this Contract will be made in a manner that satisfies IRC Section
72(s), as amended from time to time. If the Contract is owned by a trust or
other non-natural person, We will treat the death of the Annuitant as the death
of the "primary Annuitant", as defined in IRC Section 72(s)(6), and as the death
of any Owner.
DEATH OF OWNER BEFORE THE ANNUITY DATE
We will pay a death benefit to the Beneficiary upon Our receiving: (a) due proof
that the Owner died before the Annuity Date; and (b) an election form selecting
the death benefit option. If no election form is received within 60 days of Our
receipt of due proof of death, the death benefit will be paid in accordance with
death benefit option 1 below. The Beneficiary must select one of the following
death benefit options:
1. Immediately collect the death benefit in a lump sum
payment. If a lump sum payment is elected, payment
will be in accordance with any applicable laws and
regulations governing payments and death; or
2. Collect the death benefit in the form of one of the
Annuity Payment Options. The payments must be over
the life of the Beneficiary or over a period not
extending beyond the life expectancy of the
Beneficiary. Payments under this death benefit option
must commence within one year after the Owner's
death, otherwise, the death benefit will be paid in
accordance with death benefit option 1; or
3. If the Beneficiary is the Owner's spouse, the
Beneficiary may elect to become the Owner and
continue the Contract in force, however, no death
benefit is paid. Upon the new Owner's subsequent
death, the entire interest must be distributed
immediately.
In any event, the entire interest in the Contract will be distributed within
five years from the date of death of the Owner.
DUE PROOF OF DEATH
Due Proof of Death means:
1. a certified copy of a death certificate; or
2. a certified copy of a decree of a court of competent
jurisdiction as to the finding of death; or
3. a written statement by a medical doctor who attended the
deceased Owner at the time of death; or
4. any other proof satisfactory to Us.
AMOUNT OF DEATH BENEFIT
Before You attain age 75 the amount of the death benefit is equal to the greater
of:
1. the Contract Value at the end of the NYSE business day during which We
receive, at Our Annuity Service Center, due proof of the Owner's death
and an election of the type of payment to be made; Or
17
<PAGE>
2. Purchase Payments less any partial withdrawals, compounded until the
date of death at 3% interest, plus any Purchase Payments and less any
withdrawals recorded after the date of death.
After You attain age 75, the death benefit will be the greater of:
1. the Contract Value at the end of the NYSE business day during which We
receive, at Our Annuity Service Center, due proof of the Owner's death
and an election of the type of payment to be made; Or
2. Purchase Payments less any partial withdrawals, compounded until the
attainment of age 75 at 3% interest, plus any Purchase Payments and
less any partial withdrawals recorded after the attainment of age 75.
DEATH OF OWNER OR ANNUITANT ON OR AFTER THE ANNUITY DATE
If the Owner or Annuitant dies on or after the Annuity Date and before the
entire interest in the Contract has been distributed, We will pay the remaining
portion of the interest of the Contract as under the annuity payment option
being used on the date of death. For further information pertaining to death of
the Annuitant, see ANNUITY PAYMENT OPTIONS.
BENEFICIARY
The Beneficiary is selected by the Owner. While (a) the Owner is living; and (b)
before the Annuity Date, the Owner may change the Beneficiary by written notice
in a form satisfactory to Us. The change will take effect on the date We record
the proper notice subject to any payments We have made. If two or more persons
are named, (a) those surviving the Owner will share equally unless otherwise
stated; and (b) the Beneficiaries must elect to receive their respective
portions of the death benefit according to the options listed under DEATH OF
OWNER BEFORE THE ANNUITY DATE. If the Annuitant survives the Owner, and there
are no surviving Beneficiaries, the Annuitant will be deemed the Beneficiary.
Joint Owners, if applicable, shall be each other's primary Beneficiary. Joint
Annuitants, if any, when the Owner is a non-natural person, shall be each
other's primary Beneficiary. Any other Beneficiary designated on the Application
Form will be treated as a contingent Beneficiary.
If the Owner is also the Annuitant and there are no surviving Beneficiaries at
the death of the Owner, the death benefit will be paid to the estate of the
Owner in accordance with option 1, under DEATH OF OWNER BEFORE THE ANNUITY DATE.
18
<PAGE>
ANNUITY PROVISIONS
ANNUITY DATE
The Owner selects an Annuity Date (the date on which annuity payments are to
begin) at the time of application. The Owner may change the Annuity Date at any
time, at least seven days prior to the Annuity Date, by written notice to the
Company at its Annuity Service Center. The Annuity Date must always be the first
day of the calendar month and must be at least two years after the Contract
Date, but not beyond the later of the Owner's 90th birthday or ten years after
the Contract Date. If the Owner is a non-natural person, the latest annuity date
is the later of the Annuitant's 90th birthday or ten years after the Contract
Date. If no Annuity Date is selected, the Annuity Date will be the latest
Annuity Date, as set by the Company.
PAYMENTS TO OWNER
Unless You request otherwise, We will make annuity payments to You. If You want
the annuity payments to be made to some other Payee, We will make such payments
subject to receipt of a written request filed at the Annuity Service Center no
later than thirty (30) days before the date of the first annuity payment.
Any such request is subject to the rights of any assignee. No payments available
to or being paid to the Payee while the Annuitant is alive can be transferred,
commuted, anticipated or encumbered.
FIXED ANNUITY PAYMENTS
If a Fixed Annuity payment option has been elected, the proceeds payable under
this Contract less any applicable premium taxes, shall be applied to the payment
of the Fixed Annuity payment option elected at rates which are at least equal to
the annuity rates based upon the applicable tables in the Contract. In no event
will the Fixed Annuity payments be changed once they begin.
AMOUNT OF FIXED ANNUITY PAYMENTS
The amount of each Fixed Annuity payment will be determined by applying the
portion of the Contract Value allocated to Fixed Annuity payments less any
applicable premium taxes to the annuity table applicable to the Fixed Annuity
payment option chosen.
AMOUNT OF VARIABLE ANNUITY PAYMENTS
(a) FIRST VARIABLE ANNUITY PAYMENT: The dollar amount of the first Variable
Annuity payment will be determined by applying the portion of the
Contract Value allocated to the Subaccount, less any applicable premium
taxes, to the annuity table applicable to the Variable Annuity payment
option chosen. If the Contract Value is allocated to more than one
Subaccount, the value of Your interest in each Subaccount is applied
separately to the Variable Annuity payment option table to determine
the amount of the first annuity payment attributable to each
Subaccount.
(b) NUMBER OF VARIABLE ANNUITY UNITS: The number of Annuity Units for each
applicable Subaccount is the amount of the first annuity payment
attributable to that Subaccount divided by the value of the applicable
Annuity Unit for that Subaccount as of the Annuity Date. The number
will not change as a result of investment experience.
19
<PAGE>
(c) VALUE OF EACH VARIABLE ANNUITY UNIT: The initial value of an Annuity
Unit of each Subaccount was set at $10 when the Subaccounts were
established. The value may increase or decrease from one month to the
next. For any month, the value of an Annuity Unit of a particular
Subaccount is the value of that Annuity Unit as of the last NYSE
business day of the preceding month, multiplied by the Net Investment
Factor for that Subaccount for the last NYSE business day of the
current month.
The Net Investment Factor for any Subaccount for a certain month is determined
by dividing (1) by (2) where:
(1) the Accumulation Unit Value of the Subaccount determined as of
the last business day at the end of that month;
(2) the Accumulation Unit value of the Subaccount determined as of
the last business day at the end of the preceding month.
The result is then multiplied by a factor that neutralizes the assumed
investment rate of 3.5%.
(d) SUBSEQUENT VARIABLE ANNUITY PAYMENTS: After the first Variable Annuity
payment, payments will vary in amount according to the investment
performance of the applicable Subaccount(s) to which Your Purchase
Payments are allocated. The amount may change from month to month. The
amount of each subsequent payment for each Subaccount is:
The number of Annuity Units for each Subaccount as determined for the first
annuity payment
MULTIPLIED BY
The value of an Annuity Unit for that Subaccount at the end of the month
immediately preceding the month in which payment is due.
We guarantee that the amount of each Variable Annuity payment will not be
affected by variations in expenses or mortality experience.
20
<PAGE>
ANNUITY PAYMENT OPTIONS
During the Annuitant's life, upon written election and the return of this
Contract to the Company at its Annuity Service Center, the Contract Value may be
applied to provide one of the following options or any annuity payment option
that is mutually agreeable. After two years from the Contract Date, and prior to
the Annuity Date, You can choose one of the options described below. If no
option has been elected by the Annuity Date, You will automatically receive
Option 4 below with 120 monthly payments guaranteed.
OPTIONS 1 & 1v - LIFE ANNUITY, LIFETIME MONTHLY PAYMENTS GUARANTEED
Payments payable to a Payee during the lifetime of the Annuitant. No further
payments are payable after the death of the Annuitant.
OPTIONS 2 & 2v - JOINT AND SURVIVOR LIFE ANNUITY
Payments payable to the Payee during the lifetime of the Annuitant and during
the lifetime of a designated second person. No further payments are payable
after the deaths of both the Annuitant and the designated second person.
OPTIONS 3 & 3v - JOINT AND SURVIVOR LIFE ANNUITY - 120 OR 240 MONTHLY PAYMENTS
GUARANTEED
Payments are payable to the Payee during the lifetime of the
Annuitant and during the lifetime of a designated second person. If, at the
death of the survivor, payments have been made for less than 120 or 240 monthly
periods, the remaining guaranteed annuity payments will be continued to the
Beneficiary.
OPTIONS 4 & 4v - LIFE ANNUITY WITH 120 OR 240 MONTHLY PAYMENTS GUARANTEED
Payments payable to the Payee during the lifetime of the Annuitant. If, at the
death of the Annuitant, payments have been made for less than the 120 or 240
monthly periods, as selected at the time of annuitization, the remaining
guaranteed annuity payments will be continued to the Beneficiary.
OPTIONS 5 & 5v - FIXED PAYMENTS FOR A SPECIFIED PERIOD CERTAIN
Payments are payable to the Payee for any specified period of time of five (5)
years or more, but not exceeding thirty (30) years, as selected at the time of
annuitization. The selection must be made for full twelve-month periods. In the
event of death of the Annuitant, any remaining annuity payments will be
continued to the Beneficiary. If Variable Annuity Payments are elected under
this Annuity Payment Option, any remaining guaranteed Variable Annuity payments
may be redeemed for a discounted value determined by Us. Any applicable
Withdrawal Charges will be deducted from the discounted value as if You fully
surrendered Your Contract.
21
<PAGE>
FIXED ANNUITY PAYMENT OPTIONS TABLE
BASIS OF COMPUTATION
The actuarial basis for the Table of Annuity Rates is the 1983a Annuity
Mortality Table with projection and a guaranteed interest rate of 3%. The
mortality table is projected using Projection Scale G factors, assuming
annuitization in the year 2000. The Fixed Annuity Payment Options Table does
not include any applicable premium tax.
OPTIONS 1 & 4 - TABLE OF MONTHLY INSTALLMENTS PER $1,000.
(MONTHLY INSTALLMENTS FOR AGES NOT SHOWN WILL BE FURNISHED UPON REQUEST.)
<TABLE>
<CAPTION>
OPTION 1 OPTION 4 OPTION 4
LIFE ANNUITY LIFE ANNUITY
AGE OF (W/120 PAYMENTS (W/240 PAYMENTS
ANNUITANT LIFE ANNUITY GUARANTEED) GUARANTEED)
MALE FEMALE MALE FEMALE MALE FEMALE
<S> <C> <C> <C> <C> <C> <C>
55 4.23 3.84 4.19 3.82 4.05 3.76
56 4.32 3.91 4.27 3.88 4.11 3.81
57 4.41 3.98 4.35 3.95 4.17 3.87
58 4.51 4.05 4.44 4.02 4.24 3.93
59 4.61 4.13 4.54 4.10 4.31 4.00
60 4.72 4.22 4.64 4.18 4.37 4.06
61 4.84 4.31 4.74 4.27 4.44 4.13
62 4.96 4.40 4.85 4.36 4.51 4.20
63 5.10 4.51 4.97 4.45 4.58 4.27
64 5.24 4.62 5.10 4.55 4.65 4.35
65 5.40 4.73 5.22 4.66 4.72 4.42
66 5.56 4.86 5.36 4.78 4.79 4.50
67 5.74 4.99 5.50 4.90 4.86 4.57
68 5.93 5.14 5.65 5.02 4.92 4.65
69 6.13 5.29 5.80 5.16 4.99 4.73
70 6.35 5.46 5.96 5.30 5.05 4.80
71 6.58 5.64 6.13 5.46 5.10 4.88
72 6.82 5.84 6.29 5.62 5.16 4.95
73 7.08 6.05 6.47 5.78 5.20 5.02
74 7.36 6.28 6.64 5.96 5.25 5.08
75 7.66 6.53 6.82 6.14 5.29 5.14
76 7.98 6.80 7.00 6.33 5.33 5.19
77 8.33 7.09 7.19 6.53 5.36 5.24
78 8.69 7.41 7.37 6.73 5.39 5.29
79 9.09 7.75 7.55 6.94 5.41 5.33
80 9.51 8.11 7.73 7.14 5.43 5.36
81 9.97 8.51 7.91 7.35 5.45 5.39
82 10.45 8.94 8.08 7.55 5.47 5.42
83 10.97 9.41 8.24 7.76 5.48 5.44
84 11.52 9.92 8.40 7.95 5.49 5.46
85 12.10 10.47 8.54 8.13 5.50 5.48
</TABLE>
22
<PAGE>
OPTION 2 - TABLE OF MONTHLY INSTALLMENTS PER $1,000.
(MONTHLY INSTALLMENTS FOR AGES NOT SHOWN WILL BE FURNISHED UPON REQUEST.)
JOINT & 100% SURVIVOR LIFE ANNUITY
<TABLE>
<CAPTION>
AGE OF
MALE
ANNUITANT AGE OF FEMALE ANNUITANT
----------- -----------------------
55 60 65 70 75 80 85
<S> <C> <C> <C> <C> <C> <C> <C>
55 3.54 3.69 3.84 3.96 4.06 4.13 4.17
60 3.63 3.83 4.04 4.23 4.39 4.52 4.60
65 3.70 3.95 4.23 4.51 4.78 5.00 5.16
70 3.75 4.04 4.39 4.78 5.18 5.56 5.85
75 3.78 4.11 4.51 5.01 5.57 6.14 6.65
80 3.81 4.15 4.60 5.18 5.89 6.70 7.52
85 3.82 4.18 4.66 5.30 6.14 7.18 8.35
</TABLE>
OPTION 3 - TABLE OF MONTHLY INSTALLMENTS PER $1,000.
(MONTHLY INSTALLMENTS FOR AGES NOT SHOWN WILL BE FURNISHED UPON REQUEST)
JOINT & 100% SURVIVOR LIFE ANNUITY (W/120 PAYMENTS GUARANTEED)
<TABLE>
<CAPTION>
AGE OF
MALE
ANNUITANT AGE OF FEMALE ANNUITANT
----------- -----------------------
55 60 65 70 75 80 85
<S> <C> <C> <C> <C> <C> <C> <C>
55 3.54 3.69 3.83 3.96 4.05 4.12 4.16
60 3.63 3.83 4.03 4.22 4.38 4.50 4.57
65 3.70 3.95 4.22 4.50 4.76 4.97 5.10
70 3.75 4.04 4.38 4.76 5.15 5.48 5.72
75 3.78 4.10 4.50 4.98 5.50 6.00 6.40
80 3.80 4.14 4.58 5.13 5.78 6.46 7.04
85 3.81 4.16 4.62 5.22 5.97 6.80 7.55
</TABLE>
OPTION 3 - TABLE OF MONTHLY INSTALLMENTS PER $1,000.
(MONTHLY INSTALLMENTS FOR AGES NOT SHOWN WILL BE FURNISHED UPON REQUEST)
JOINT & 100% SURVIVOR LIFE ANNUITY (W/240 PAYMENTS GUARANTEED)
<TABLE>
<CAPTION>
AGE OF
MALE
ANNUITANT AGE OF FEMALE ANNUITANT
----------- -----------------------
55 60 65 70 75 80 85
<S> <C> <C> <C> <C> <C> <C> <C>
55 3.53 3.68 3.81 3.92 3.99 4.03 4.04
60 3.62 3.81 4.00 4.16 4.27 4.34 4.37
65 3.68 3.92 4.16 4.39 4.56 4.66 4.71
70 3.72 3.99 4.29 4.58 4.81 4.96 5.03
75 3.74 4.03 4.36 4.70 4.99 5.17 5.26
80 3.75 4.05 4.40 4.77 5.09 5.30 5.40
85 3.76 4.06 4.42 4.80 5.13 5.35 5.46
</TABLE>
23
<PAGE>
<TABLE>
<CAPTION>
FIXED PAYMENT FOR SPECIFIED PERIOD
NUMBER MONTHLY NUMBER MONTHLY NUMBER MONTHLY NUMBER MONTHLY
OF YEARS PAYMENT OF YEARS PAYMENT OF YEARS PAYMENT OF YEARS PAYMENT
-------- ------- -------- ------- -------- ------- -------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
10 9.61 17 6.23 24 4.84
11 8.86 18 5.96 25 4.71
5 17.91 12 8.24 19 5.73 26 4.59
6 15.14 13 7.71 20 5.51 27 4.47
7 13.16 14 7.26 21 5.32 28 4.37
8 11.68 15 6.87 22 5.15 29 4.27
9 10.53 16 6.53 23 4.99 30 4.18
</TABLE>
24
<PAGE>
VARIABLE ANNUITY PAYMENT OPTIONS TABLE
BASIS OF COMPUTATION
The actuarial basis for the Table of Annuity Rates is the 1983a Annuity
Mortality Table with projection and an effective annual Assumed Investment
Rate of 3.5%. The mortality table is projected using Projection Scale G
factors, assuming annuitization in the year 2000. The Variable Annuity
Payment Options Table does not include any applicable premium tax.
OPTIONS 1v& 4v - TABLE OF MONTHLY INSTALLMENTS PER $1,000
(MONTHLY INSTALLMENTS FOR AGES NOT SHOWN WILL BE FURNISHED UPON REQUEST.)
<TABLE>
<CAPTION>
OPTION 1v OPTION 4v OPTION 4v
LIFE ANNUITY LIFE ANNUITY
AGE OF (W/120 PAYMENTS (W/240 PAYMENTS
ANNUITANT LIFE ANNUITY GUARANTEED) GUARANTEED)
MALE FEMALE MALE FEMALE MALE FEMALE
<S> <C> <C> <C> <C> <C> <C>
55 4.53 4.13 4.48 4.11 4.33 4.05
56 4.62 4.20 4.56 4.18 4.39 4.10
57 4.71 4.27 4.64 4.24 4.45 4.16
58 4.80 4.34 4.73 4.31 4.52 4.22
59 4.90 4.42 4.82 4.39 4.58 4.28
60 5.01 4.51 4.92 4.47 4.65 4.34
61 5.13 4.60 5.03 4.55 4.71 4.41
62 5.26 4.69 5.14 4.64 4.78 4.48
63 5.39 4.80 5.25 4.74 4.85 4.55
64 5.54 4.91 5.38 4.84 4.92 4.62
65 5.69 5.02 5.51 4.94 4.99 4.69
66 5.86 5.15 5.64 5.06 5.05 4.77
67 6.03 5.28 5.78 5.18 5.12 4.84
68 6.22 5.43 5.93 5.30 5.18 4.92
69 6.43 5.58 6.08 5.44 5.24 4.99
70 6.64 5.75 6.23 5.58 5.30 5.06
71 6.87 5.93 6.40 5.73 5.36 5.14
72 7.12 6.13 6.56 5.89 5.41 5.21
73 7.38 6.34 6.73 6.06 5.46 5.27
74 7.66 6.57 6.91 6.23 5.50 5.33
75 7.96 6.82 7.09 6.41 5.54 5.39
76 8.28 7.09 7.27 6.60 5.57 5.44
77 8.63 7.38 7.45 6.79 5.61 5.49
78 9.00 7.70 7.63 6.99 5.63 5.54
79 9.40 8.04 7.81 7.19 5.66 5.58
80 9.82 8.41 7.98 7.40 5.68 5.61
81 10.28 8.81 8.16 7.60 5.70 5.64
82 10.76 9.24 8.32 7.81 5.71 5.66
83 11.28 9.71 8.48 8.00 5.72 5.69
84 11.83 10.23 8.64 8.19 5.73 5.70
85 12.42 10.78 8.78 8.38 5.74 5.72
</TABLE>
25
<PAGE>
OPTION 2v - TABLE OF MONTHLY INSTALLMENTS PER $1,000.
(MONTHLY INSTALLMENTS FOR AGES NOT SHOWN WILL BE FURNISHED UPON REQUEST.)
JOINT & 100% SURVIVOR LIFE ANNUITY
<TABLE>
<CAPTION>
AGE OF
MALE
ANNUITANT AGE OF FEMALE ANNUITANT
55 60 65 70 75 80 85
<S> <C> <C> <C> <C> <C> <C> <C>
55 3.83 3.98 4.12 4.24 4.34 4.42 4.46
60 3.92 4.11 4.32 4.51 4.67 4.80 4.89
65 3.99 4.23 4.50 4.79 5.05 5.28 5.44
70 4.04 4.33 4.67 5.05 5.46 5.83 6.13
75 4.07 4.39 4.79 5.28 5.84 6.41 6.93
80 4.10 4.44 4.88 5.45 6.16 6.97 7.79
85 4.11 4.47 4.94 5.57 6.41 7.45 8.61
</TABLE>
OPTION 3v - TABLE OF MONTHLY INSTALLMENTS PER $1,000.
(MONTHLY INSTALLMENTS FOR AGES NOT SHOWN WILL BE FURNISHED UPON REQUEST)
JOINT AND 100% SURVIVOR LIFE ANNUITY (W/120 PAYMENTS GUARANTEED)
<TABLE>
<CAPTION>
AGE OF
MALE
ANNUITANT AGE OF FEMALE ANNUITANT
55 60 65 70 75 80 85
<S> <C> <C> <C> <C> <C> <C> <C>
55 3.83 3.98 4.12 4.24 4.34 4.40 4.45
60 3.92 4.11 4.31 4.50 4.66 4.78 4.86
65 3.99 4.23 4.50 4.78 5.03 5.24 5.38
70 4.04 4.32 4.66 5.03 5.41 5.75 5.99
75 4.07 4.38 4.78 5.25 5.77 6.26 6.66
80 4.09 4.43 4.86 5.40 6.05 6.72 7.29
85 4.10 4.45 4.90 5.50 6.24 7.05 7.80
</TABLE>
OPTION 3v - TABLE OF MONTHLY INSTALLMENTS PER $1,000.
(MONTHLY INSTALLMENTS FOR AGES NOT SHOWN WILL BE FURNISHED UPON REQUEST)
JOINT & 100% SURVIVOR LIFE ANNUITY (W/240 PAYMENTS GUARANTEED)
<TABLE>
<CAPTION>
AGE OF
MALE
ANNUITANT AGE OF FEMALE ANNUITANT
----------- -----------------------
55 60 65 70 75 80 85
<S> <C> <C> <C> <C> <C> <C> <C>
55 3.82 3.97 4.10 4.20 4.27 4.31 4.33
60 3.91 4.09 4.28 4.44 4.55 4.61 4.64
65 3.97 4.20 4.44 4.66 4.83 4.93 4.97
70 4.01 4.27 4.56 4.84 5.07 5.21 5.28
75 4.03 4.31 4.64 4.97 5.25 5.42 5.51
80 4.04 4.33 4.67 5.03 5.34 5.55 5.65
85 4.05 4.34 4.69 5.06 5.38 5.60 5.70
</TABLE>
26
<PAGE>
OPTION 5v - TABLE OF MONTHLY INSTALLMENTS PER $1,000.
<TABLE>
<CAPTION>
PAYMENTS FOR A SPECIFIED PERIOD
NUMBER MONTHLY NUMBER MONTHLY NUMBER MONTHLY NUMBER MONTHLY
OF YEARS PAYMENT OF YEARS PAYMENT OF YEARS PAYMENT OF YEARS PAYMENT
-------- ------- -------- ------- -------- ------- -------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
10 9.83 17 6.47 24 5.09
11 9.09 18 6.20 25 4.96
5 18.12 12 8.46 19 5.97 26 4.84
6 15.35 13 7.94 20 5.75 27 4.73
7 13.38 14 7.49 21 5.56 28 4.63
8 11.90 15 7.10 22 5.39 29 4.53
9 10.75 16 6.76 23 5.24 30 4.45
</TABLE>
27
<PAGE>
ANCHOR NATIONAL LIFE INSURANCE COMPANY
A STOCK COMPANY LOS ANGELES, CALIFORNIA
INDIVIDUAL FIXED AND
VARIABLE ANNUITY CONTRACT
Nonparticipating
28
