As filed with the Securities and Exchange Commission
on February 24, 1999
Registration No. 33-19718
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
POST-EFFECTIVE AMENDMENT NO. 18
TO
FORM S-6
CUNA MUTUAL LIFE VARIABLE ACCOUNT
(Exact Name of Trust)
CUNA MUTUAL LIFE INSURANCE COMPANY
2000 Heritage Way
Waverly, Iowa 50677
(319) 352-4090, ext. 2157
(Name, Address and Telephone Number of Depositor)
Name and complete address of agent for service:
Barbara L. Secor, Esq.
CUNA Mutual Life Insurance Company
2000 Heritage Way
Waverly, IA 50677
It is proposed that this filing will become effective (check appropriate box)
|_| immediately upon filing pursuant to paragraph (b) of Rule 485
|_| on pursuant to paragraph (b) of Rule 485
|_| 60 days after filing pursuant to paragraph (a)(i) of Rule 485
|X| on May 1, 1999 pursuant to paragraph (a)(i) of Rule 485
|_| 75 days after filing pursuant to paragraph (a)(ii)
|_| on pursuant to paragraph (a)(ii) of Rule 485
Title of Securities: Interest in the Seperate Account issued through Variable
Life Insurance Policies.
The index to attached exhibits is found following the signature pages and
consents after page II-4.
================================================================================
<PAGE>
CROSS REFERENCE TO ITEMS REQUIRED
BY FORM N-8B-2
N-8B-2 Item Caption in Prospectus
1 . . . . . . . . . The Company Separate Account
2 . . . . . . . . . The Company
3 . . . . . . . . . The Company
4 . . . . . . . . . Distribution of Policies
5 . . . . . . . . . The Separate Account
6(a) . . . . . . . . Not Applicable
(b) . . . . . . . . Not Applicable
9 . . . . . . . . . Legal Proceedings
10 . . . . . . . . . The Policy
11 . . . . . . . . . Ultra Series Fund
12 . . . . . . . . . Ultra Series Fund
13 . . . . . . . . . Charges and Deductions
14 . . . . . . . . . The Policy
15 . . . . . . . . . The Separate Account
16 . . . . . . . . . Policy Values
17 . . . . . . . . . Other Policy Benefits and Provisions
18 . . . . . . . . . The Policy
19 . . . . . . . . . Not Applicable
20 . . . . . . . . . Not Applicable
21 . . . . . . . . . Not Applicable
22 . . . . . . . . . Not Applicable
23 . . . . . . . . . Not Applicable
24 . . . . . . . . . Not Applicable
25 . . . . . . . . . The Company
26 . . . . . . . . . Charges and Deductions
27 . . . . . . . . . The Company
28 . . . . . . . . . The Company, CUNA Mutual Life Insurance Company
Directors and Executive Officers
29 . . . . . . . . . The Company
30 . . . . . . . . . The Company
31 . . . . . . . . . Not Applicable
32 . . . . . . . . . Not Applicable
33 . . . . . . . . . Not Applicable
34 . . . . . . . . . Not Applicable
35 . . . . . . . . . Not Applicable
37 . . . . . . . . . Not Applicable
38 . . . . . . . . . Distribution of Policies
39 . . . . . . . . . Distribution of Policies
40 . . . . . . . . . Not Applicable
41(a) . . . . . . . . Distribution of Policies
42. . . . . . . . . ..Not Applicable
43 . . . . . . . . . Not Applicable
44 . . . . . . . . . The Policy
45 . . . . . . . . . Not Applicable
46 . . . . . . . . . Other Policy Benefits and Provisions
47 . . . . . . . . . Not Applicable
48 . . . . . . . . . The Company
49 . . . . . . . . . The Company
50 . . . . . . . . . Not Applicable
51 . . . . . . . . . The Company, The Policy
52 . . . . . . . . . Ultra Series Fund
53 . . . . . . . . . Federal Income Tax Considerations
54 . . . . . . . . . Financial Statements
55 . . . . . . . . . Not Applicable
<PAGE>
CUNA MUTUAL LIFE INSURANCE COMPANY PROSPECTUS
2000 Heritage Way, Waverly, Iowa 50677-9202
(319) 352-4090 (800) 798-5500 MAY 1, 1999
- --------------------------------------------------------------------------------
This Prospectus describes the MEMBERS(R) Variable Universal Life Policy
("Policy") an individual flexible premium variable universal life insurance
policy issued by CUNA Mutual Life Variable Account ("Separate Account") and CUNA
Mutual Life Insurance Company ("Company") .
The Company designed the Policy to provide insurance for the entire life of the
insured as well as an investment element. The Policy's flexibility allows you to
provide for changing insurance needs under a single insurance policy. You, as
the owner of a Policy, may make the following choices:
(1) The amount of insurance you desire.
(2) The size and frequency of premium payments.
(3) How you want your premiums allocated. You may allocate premiums to one or
more of the Subaccounts of the Separate Account which in turn invest in
one or more of the following Funds:
o Ultra Series Fund
o Capital Appreciation Stock Fund
o Growth and Income Stock Fund
o Balanced Fund
o Bond Fund
o Money Market Fund
o Treasury 2000 Fund
o T. Rowe Price International Series, Inc.
o International Stock Portfolio
o MFS(R) Variable Insurance TrustSM ("MFS Variable Insurance Trust")
o MFS(R) Global Governments SeriesSM ("MFS Global
Governments Series")
o MFS(R) Emerging Growth SeriesSM ("MFS Emerging Growth
Series")
You may also choose to allocate all or a portion of premium to the Interest
Bearing Account, an account held in the general account of the Company. The
Company guarantees the principal held within the Interest Bearing Account and
will pay interest of at least 4% annually. At its discretion, the Company may
pay a higher rate.
(4) Which death benefit you desire:
Option 1 is equal to the Specified Amount (or Face Amount) of your Policy
Option 2 is equal to the Specified Amount plus the Accumulated Value of
your Policy
It may not be advantageous to replace existing insurance with the Policy
described in this Prospectus. In addition, a person who currently owns a
flexible premium life insurance policy should compare the benefit and cost of
purchasing additional life insurance under the existing policy with the benefits
and cost of purchasing the Policy described in this Prospectus. Since the
charges imposed upon surrender or Lapse during the first nine policy years will
be significant, purchase a Policy only if you have the financial capability to
keep it In Force for a substantial period.
Please read this prospectus carefully and keep it for future reference. A
current prospectus for the Funds must accompany this prospectus.
Unlike credit union and bank accounts, policy value invested in the Separate
Account is not insured. Investment in the Separate Account involves certain
risks including loss of purchase payment (principal). Your money will not be
deposited in or guaranteed by any credit union or bank and is not guaranteed by
any government agency.
These securities have not been approved or disapproved by the Securities and
Exchange Commission nor has the i
Commission passed upon the accuracy or adequacy of this prospectus. Any
representation to the contrary is a criminal offense.
<PAGE>
TABLE OF CONTENTS
PAGE
SUMMARY OF THE POLICY..........................................................1
Other..........................................................................2
Expenses.......................................................................2
INDEX OF TERMS.................................................................3
THE POLICY.....................................................................5
PREMIUMS....................................................................5
Applying for a Policy.....................................................5
Flexibility of Premiums...................................................5
Minimum Death Benefit Guarantee...........................................5
Target Premium............................................................5
Net Premiums..............................................................5
PREMIUMS TO PREVENT LAPSE...................................................5
Grace Period..............................................................5
Lapse.....................................................................5
No-Lapse Guarantee........................................................5
Reinstatement.............................................................6
ALLOCATION OF NET PREMIUMS..................................................6
Dollar Cost Averaging.....................................................6
ULTRA SERIES FUND...........................................................7
T. ROWE PRICE INTERNATIONAL SERIES, INC.....................................7
MFS VARIABLE INSURANCE TRUST................................................8
RESOLVING MATERIAL CONFLICTS................................................8
INTEREST BEARING ACCOUNT....................................................9
CHARGES AND DEDUCTIONS......................................................9
Fund Changes..............................................................9
State Premium Taxes.......................................................9
Monthly Deduction.........................................................9
Mortality and Expense Risk Charge........................................10
Contingent Deferred Sales and Administrative Charges.....................10
Transfer Fee.............................................................12
Federal and State Income Taxes...........................................12
Duplicate Policy Charge..................................................12
Change of Specified Amount Charge........................................12
POLICY VALUES..............................................................12
Accumulated Value........................................................12
Cash Value...............................................................12
Net Cash Value...........................................................13
Unit Value Guarantee.....................................................13
POLICY BENEFITS............................................................13
Death Proceeds...........................................................13
Minimum Death Benefit Guarantee..........................................14
Surrender Proceeds.......................................................14
Maturity Proceeds........................................................15
Payment of Proceeds/Settlement Options...................................15
OTHER POLICY BENEFITS AND PROVISIONS.......................................16
Conditions for Policy Issue..............................................16
Issue Date...............................................................16
Owner, Beneficiary.......................................................16
Incontestability.........................................................16
Right-to-Examine Period..................................................17
Policy Loans.............................................................18
Transfer of Values.......................................................18
Change of Allocations....................................................19
Change of Death Benefit Option...........................................19
Change of Specified Amount...............................................20
Conversion/Exchange of Policy............................................20
Transfer of Ownership....................................................21
Collateral Assignments...................................................21
Effect of Misstatement of Age or Sex.....................................21
Suicide..................................................................21
Dividends................................................................21
Suspension of Payments...................................................21
Accelerated Benefit Option...............................................22
RIDERS.....................................................................23
Children's Insurance.....................................................23
Guaranteed Insurability..................................................23
Accidental Death Benefit.................................................23
Automatic Increase.......................................................23
Other Insured............................................................23
Term Insurance...........................................................23
Disability Waiver of Monthly Deductions..................................23
Waiver of Premium and Monthly Deduction Disability Benefit...............23
Executive Benefits Plan Endorsement......................................23
THE COMPANY...................................................................24
THE SEPARATE ACCOUNT..........................................................24
FEDERAL INCOME TAX CONSIDERATIONS.............................................25
TAX STATUS OF THE POLICY...................................................25
TAX TREATMENT OF POLICY BENEFITS...........................................25
SPECIAL RULES FOR PENSION AND PROFIT-SHARING PLANS.........................26
BUSINESS USES OF THE POLICY................................................27
POSSIBLE TAX LAW CHANGES...................................................27
THE COMPANY'S TAXES........................................................27
CUNA MUTUAL LIFE INSURANCE COMPANY DIRECTORS AND EXECUTIVE OFFICERS...........27
ADDITIONAL INFORMATION........................................................29
STATE REGULATION...........................................................29
LEGAL PROCEEDINGS..........................................................29
INDEPENDENT AUDITORS.......................................................29
ACTUARIAL MATTERS..........................................................29
REGISTRATION STATEMENT.....................................................30
PREPARING FOR YEAR 2000....................................................30
DISTRIBUTION OF POLICIES...................................................30
UNISEX POLICIES............................................................30
FINANCIAL STATEMENTS..........................................................31
APPENDIX A ILLUSTRATIONS OF POLICY VALUES AND DEATH BENEFITS..................34
APPENDIX B FIRST YEAR CONTINGENT DEFERRED CHARGES PER $1,000
OF SPECIFIED AMOUNT........................................................44
APPENDIX C FIRST YEAR CONTINGENT DEFERRED CHARGES PER $1,000
OF SPECIFIED AMOUNT UNISEX..................................................46
APPENDIX D DEATH BENEFIT RATIO................................................47
<PAGE>
SUMMARY OF THE POLICY
You should read the following summary of the Policy in conjunction with the
detailed information appearing elsewhere in this prospectus. Unless otherwise
indicated, the description of the Policy in this prospectus assumes that the
Insured is alive, the Policy is In Force, and there is no outstanding Policy
loan.
The Owner has flexibility, within limitations, to determine the frequency and
amount of premiums. (See Premiums - Flexibility of Premiums). The Policy does
not require the Owner to follow a fixed premium payment schedule. The Company
does not guarantee the amount and/or duration of the life insurance coverage and
value of the Policy, and the value may increase or decrease to reflect the
investment performance of the applicable Subaccounts. Accordingly, the Owner
bears the investment risk of any decrease, but reaps the benefit of any increase
in the value of the underlying assets.
As long as the Policy remains In Force, the Policy will provide for death
proceeds payable to the Beneficiary upon the Insured's death, Accumulated Value,
surrender rights, and Policy loan privileges. The Policy will remain In Force so
long as Net Cash Value is sufficient to pay certain monthly charges imposed in
connection with the Policy, otherwise, after a grace period, the Policy will
Lapse without value. (See Premiums to Prevent Lapse, Grace Period, Lapse,
No-Lapse Guarantee, and Reinstatement). However, the Company guarantees that the
Policy will remain In Force during the first three Policy Years as long as you
meet certain requirements related to the required minimum premium during those
years. If a Policy Lapses while loans are outstanding, certain amounts may
become subject to income tax and a 10% penalty tax. (See Tax Status of the
Policy). The minimum Specified Amount for which the Company normally will issue
a Policy is $50,000 ($10,000 for Issue Ages 65 and over).
Purpose of the Policy. The Policy is designed to provide lifetime insurance
benefits and long-term investment of Accumulated Value. A prospective Owner
should evaluate the Policy in conjunction with other insurance coverage that he
or she may have, as well as his or her needs for insurance and the Policy's
long-term investment potential. It may not be advantageous to replace existing
insurance coverage with the Policy. In particular, replacement should be
carefully considered if the decision to replace existing coverage is based
solely on a comparison of Policy illustrations.
Cancellation Privilege. For a limited time after the Policy is issued, the Owner
may cancel the Policy and receive a refund. This refund will equal Accumulated
Value on the date the Company receives the returned Policy, plus any charges the
Company deducted, minus any Policy Indebtedness. A refund will equal the exact
amount of premiums paid if required by applicable state law. (See Other Policy
Benefits and Provisions - Right-to-Examine Period).
Premiums. The policy requires an initial premium. After the initial premium, the
Owner may select an annual premium plan, and pay premiums in accordance with a
schedule. The Owner may vary the amount and frequency and skip planned annual
payments. (See Premiums - Flexibility of Premiums).
The initial premium and the minimum premium depend on the Insured's age, sex,
and risk class, Specified Amount selected, and any supplemental riders. You may
pay premiums after the initial premium at any time while the Policy is In Force,
within limits. (See Premiums - Flexibility of Premiums). You may then allocate
your Net Premiums to the Subaccounts and the Interest Bearing Account.
Charges and Expenses
State Taxes. The Company deducts a charge from premium payments to cover state
taxes. The charge deducted is equal to the actual amount of Premium Tax (or tax
in lieu of Premium Tax) in the Owner's state of residence.
(See Charges and Deductions - State Premium Taxes).
Monthly Deductions. The Monthly Deductions, are deducted from Net Cash Value
(or, in limited circumstances, the Deferred Charges Account) on each Monthly
Day. The Monthly Deductions equal the sum of
(1) a cost of insurance charge,
(2) the cost of additional insurance riders and benefits, if any,
(3) a policy fee of $3 per month for Policies with Issue Ages 0-19 and
$6 per month for all remaining Policies, and
(4) an administrative fee which equals $.45 per thousand dollars of
Specified Amount per year.
The administrative fee is assessed only during the first 10 Policy years, or on
an increase in Specified Amount, during the first 10 years after the increase.
(See Charges and Deductions - Monthly Deduction).
Daily Charges. The Company assesses mortality and expense risk charges against
net assets (whether held in the Subaccounts and/or Interest Bearing Account)
equal on an annual basis, to .9% of the average daily net assets.
(See Charges and Deductions - Mortality and Expense Risk Charge).
Fund Expenses. The Fund prospectuses describe the Fund expenses in detail. The
table below summarizes the annual Fund expenses (as a percentage of average net
assets) for the year ended December 31, 1998.
Management Fees Other Total Annual
Expenses Fund Expenses
- ------------------------------- ------------------------------------------------
Capital Appreciation Stock Fund 0.80% 0.01% 0.81%
- ------------------------------- ------------------------------------------------
Growth and Income Stock Fund 0.60% 0.01% 0.61%
- ------------------------------- ------------------------------------------------
Balanced Fund 0.70% 0.01% 0.71%
- ------------------------------- ------------------------------------------------
Bond Fund 0.55% 0.01% 0.56%
- ------------------------------- ------------------------------------------------
Money Market Fund 0.45% 0.01% 0.46%
- ------------------------------- ------------------------------------------------
Treasury 2000 0.45% 0.00% 0.45%
- ------------------------------- ------------------------------------------------
International Stock Portfolio 1.05% 0.00% 1.05%
- ------------------------------- ------------------------------------------------
MFS Global Governments Series 0.75% 0.25%(1)(2) 1.00%
- ------------------------------- ------------------------------------------------
MFS Emerging Growth Series 0.75% 0.12%(1) 0.87%
- ------------------------------- ------------------------------------------------
(1) These Funds have an expense offset arrangement which reduces the
Funds' custodian fee based upon the amount of cash maintained by
the Funds with its custodian and dividend disbursing agent, and
may enter into other such arrangements and directed brokerage
arrangements (which would also have the effect of reducing the
Funds' expenses). Any such fee reductions are not reflected under
"Other Expenses".
(2) The annual expenses listed for the MFS Global Governments Series
are net of certain reimbursements by its investment adviser. The
investment adviser has agreed to bear, subject to reimbursement,
until December 31, 2004, expenses of the Global Governments Series
such that the Series' aggregate operating expenses do not exceed
1.00%, on an annualized basis, of its average daily net assets.
See "Information Concerning Shares of The Series - Expenses" in
the prospectus of the MFS Global Governments Series. For the 1998
fiscal year, absent this expense arrangement, the "Other Expenses"
and the "Total Annual Fund Expenses" shown above would be .40% and
1.15%, respectively.
Partial Surrender Charge. On each partial surrender, the Company assesses a
charge equal to the lesser of $25 or 2% of the amount surrendered.
Contingent Deferred Charges. The Company assesses contingent deferred sales and
administrative charges upon full surrender of Policy during the first 10 Policy
years. The charges vary by the age of Insured at issue, sex, and smoking status.
In no instance will the charges exceed 30% of the lesser of premiums paid or the
guideline annual premium of the Policy. (See Charges and Deductions - Contingent
Deferred Sales and Administrative Charges; and Appendix B).
Transfer Fee. After the fourth transfer in a Policy year, an Owner is charged
$20 per transfer for Accumulated Value transferred between and among the
Subaccounts and the Interest Bearing Account. (See Charges and Deductions -
Transfer Fee).
Change of Specified Amount Charge. The Company will assess a $50 charge for each
change of Specified Amount after the first request in a Policy year. (See Other
Policy Benefits and Provisions - Change of Specified Amount).
Policy Benefits. Two death benefit options are available under the Policy: a
level death benefit ("Option 1") and a death benefit that may increase or
decrease ("Option 2"). (See Death Benefit Options page 13 ). The Owner may
change the death benefit option and the Specified Amount. Death Proceeds are
available as a lump sum or under a variety of settlement options. (See Policy
Benefits - Death Proceeds). Supplemental benefits and/or riders are available.
(See Other Policy Benefits and Provisions).
The Owner may surrender the Policy in full at any time. Declining contingent
deferred sales and administrative charges are deducted from the proceeds in the
event of a full surrender during the first ten Policy years. (See Surrender
Proceeds - Policy Surrender).
Within limits, the Owner may also make a partial surrender from the Policy and
obtain a Policy loan. The Owner may make a partial surrender so long as the
Specified Amount remaining is not less than $40,000 ($8,000 if Issue Age is 65
and over). The Company will assess a charge on each partial surrender. (See
Surrender Proceeds Partial Surrender). Loans may be taken from amounts up to 80%
(90% for Virginia residents) of Cash Value, at an 8% interest rate compounded
annually. (See Other Policy Benefits and Provisions - Policy Loans).
Transfer of Values. The Owner may transfer Accumulated Value between and among
the Subaccounts and the Interest Bearing Account. The Owner may make four
transfers a year without charge. (See Other Policy Benefits and Provisions -
Transfer of Values).
The Separate Account. The Separate Account consists of nine Subaccounts. Each
Subaccount invests in the corresponding portfolio or series of Ultra Series
Fund, T. Rowe Price International Series, Inc., and the MFS Variable Insurance
Trust.
The Interest Bearing Account. As an alternative to the Separate Account, the
Owner may allocate or transfer all or a portion of the Accumulated Value to the
Interest Bearing Account, which guarantees a specified minimum rate of return.
(See Interest Bearing Account).
Illustrations. Illustrations in this prospectus or used in connection with the
purchase of a Policy are based on hypothetical rates of return. These rates are
not guaranteed. They are illustrative only and should not be considered a
representation of past or future performance. Actual rates of return may be
higher or lower than those reflected in Policy illustrations, and therefore,
actual Policy values will be different from those illustrated.
Tax Considerations. The Company intends for the Policy to satisfy the definition
of a life insurance contract under Section 7702 of the Internal Revenue Code. A
Policy may be a "modified endowment contract" under federal tax law depending
upon the amount of premiums made in relation to the Death Benefit provided under
the Policy. The Company will monitor Policies and will attempt to notify you on
a timely basis if your Policy is in jeopardy of becoming a modified endowment
contract. For further discussion of the tax status of a Policy and the tax
consequences of being treated as a life insurance contract or a modified
endowment contract, see "Federal Income Tax Considerations."
Conversion/Exchange Right. At any time within 24 months after the Issue Date,
the Owner may exchange the Policy for a policy of permanent fixed benefit
insurance or for any other policy that the Company may agree to issue on the
life of the Insured. The Owner also may transfer without charge on the exchange
date, any portion of the Net Cash Value of the original Policy as premium to the
new policy. (See Other Policy Benefits and Provisions - Conversions/Exchange
Privilege).
Owner Inquiries. If you have questions, you may write or call the Company at
2000 Heritage Way, Waverly, Iowa 50677-9202, 1-800-798-5500.
INDEX OF TERMS
We have tried to use simple, clear language as much as possible in this
prospectus. However, the very nature of the contract requires certain technical
words or terms. We have described those terms throughout the prospectus. In
addition, the following is a brief explanation of some of the terms used in the
Policy.
Accumulated Value. The total of the values attributable to a Policy in all
Subaccounts and the Interest Bearing Account plus the values attributable to it,
if any, in the Loan Account and Deferred Charges Account.
Age. The number of completed years from the Insured's date of birth.
Attained Age. Age of the Insured on the most recent Policy Anniversary.
Beneficiary. Person or entity named to receive all or part of the Death
Proceeds.
Cash Value. Accumulated Value minus Deferred Charges, but not less than zero.
CUNA Mutual Group. CUNA Mutual Insurance Society, its subsidiaries and
affiliates, including the Company.
Death Benefit Ratio. The ratio of Face Amount to Accumulated Value required by
the Internal Revenue Code for treatment of the Policy as a life insurance
Policy. The Death Benefit Ratio varies by the Attained Age.
Death Proceeds. Amount to be paid if the Insured dies while the Policy is In
Force.
Face Amount. Under death benefit option 1, the Face Amount is the greater of the
Specified Amount, or the Accumulated Value on the date of death multiplied by
the Death Benefit Ratio. Under death benefit option 2, the Face Amount is the
greater of the Specified Amount plus the Accumulated Value on the date of death,
or the Accumulated Value on the date of death multiplied by the Death Benefit
Ratio.
Fund. An investment portfolio (sometimes called a Series) of the Ultra Series
Fund, the T. Rowe Price International Series, Inc. or the MFS Variable Insurance
Trust or any other open-end management investment company or unit investment
trust in which a Subaccount invests.
Home Office. The Company's principal office at 2000 Heritage Way, Waverly, Iowa
50677-9202
In Force. Condition under which the Policy is active and the Insured's life
remains insured and sufficient Net Cash Value exists from premium payment or
otherwise to pay the Monthly Deductions on a Monthly Day.
Indebtedness. Policy loans plus accrued interest on the loans.
Insured. Person whose life is insured under the Policy.
Issue Age. Age of Insured at the time the Policy was issued.
Issue Date. The date from which Policy Anniversaries, Policy years, and Policy
months are determined.
Lapse. Condition when the Insured's life is no longer insured under the Policy.
Loan Account. A portion of the Company's general account into which amounts are
transferred from the Separate Account as collateral for Policy loans.
Monthly Day. Same day as the Issue Date for each month the Policy remains In
Force. The Monthly Day is the first day of the Policy month. If there is no
Monthly Day in a calendar month, the Monthly Day will be the first day of the
next calendar month.
Net Asset Value. The total current value of portfolio securities, cash,
receivables, and other assets minus liabilities.
Net Premiums. Premiums paid less any charges for Premium Tax (or tax in lieu of
Premium Tax).
Owner (you, your). The Owner as named in the application. The Owner may be other
than the Insured.
Policy Anniversary. Same day and month as the Issue Date for each year the
Policy remains In Force.
Portfolio Maturity. Day upon which the Stripped Treasury Securities in a
Treasury Series become payable.
Premium Tax. An amount deducted from premium payments to cover Premium Tax (and
tax in lieu of Premium Tax) currently charged by the Owner's state of residence
(except in Pennsylvania and Texas). State of residence is determined by the
Owner's mailing address as shown in the Company's records. The term "in lieu of
Premium Tax" means any income and any franchise tax assessed by a state as a
substitute for Premium Tax.
Record Date. The date the Company records the Policy on its books as an In Force
Policy.
Separate Account. CUNA Mutual Life Variable Account, a segregated investment
account of CUNA Mutual Life Insurance Company into which Net Premiums may be
allocated. The Owner bears the investment risk for amounts allocated to Separate
Account Subaccounts.
Specified Amount. The amount chosen by the Owner which is used to determine the
Face Amount.
Target Premium. The Target Premium is shown on the specifications page of the
Policy. It is determined by dividing the minimum premium by .60.
Unit Value. The value determined by dividing Net Asset Value by the number of
Subaccount units outstanding at the time of calculation.
Valuation Day. Any day the New York Stock Exchange is open for business, except
the following Company holidays: (1) Thanksgiving Day; (2) Christmas Day; (3) New
Year's Day; and (4) Independence Day, the day itself if those days fall Monday
through Friday, the day immediately preceding if those days fall on a Saturday,
and the day immediately following if those days fall on a Sunday; and (5) any
day that a Subaccount's corresponding Fund does not value its shares. Federal
securities regulations will be followed in case of an emergency which makes
valuation extremely difficult, for example, fire, blizzard or tornado.
Valuation Period. The period commencing at the close of the New York Stock
Exchange (currently 3:00 p.m. Central Standard Time) of one Valuation Day and
continuing to 3:00 p.m. Central Standard Time or the close of the New York Stock
Exchange, whichever is earlier, of the next succeeding Valuation Day.
THE POLICY
Premiums
Applying for a Policy. To purchase a Policy, you must complete an application
and submit it to an authorized representative. You must also pay an initial
premium as further described below. You must pay the Initial Premium during the
lifetime of the Insured, on or before the Issue Date. All premiums after the
Initial Premium must be paid to the Home Office.
Flexibility of Premiums. The Policy provides for a planned annual premium
determined by the Owner. The Owner is not required to pay premiums in accordance
with the planned schedule. Premiums are generally flexible both as to timing and
amount. Premiums must be large enough to keep the Policy In Force. You may pay
premiums after the initial premium at any time while the Policy is In Force.
The initial premium must be at least equal to one-twelfth (1/12th) of the
minimum premium.
The minimum premium is the minimum annual amount that, if paid each year for the
first three Policy years, will keep the no-lapse guarantee in effect for that
time. The specifications page of the Policy will indicate the minimum premium.
The Company reserves the right to refuse any premium payment that is less than
$25.
The total of all premiums paid may never exceed the maximum premium limitation
determined by the Internal Revenue Code for treatment of the Policy as a life
insurance policy. If at any time a premium is paid which would result in total
premiums exceeding the maximum premium limitation, the Company will only accept
that portion of the premium which would make total premiums equal the maximum.
The Company will return any excess amount and will not accept further premiums
until the maximum premium limitation increases.
The Company reserves the right to refuse any premium or part of a premium which
would increase the Face Amount of the Policy by more than the amount of the
premium.
Minimum Death Benefit Guarantee. If the Target Premium is paid until the later
of Attained Age 65 or 10 years from the Issue Date, the Policy will not Lapse
during those years. (See Policy Benefits - Minimum Death Benefit Guarantee.)
Target Premium. The Target Premium will be shown on each Policy. Generally, it
is determined by dividing the minimum premium by .60, and is stated on the
specifications page of the Policy.
Net Premiums. Net Premiums are premiums paid less any charge for state Premium
Taxes (or taxes in lieu of Premium Taxes). The amount of this deduction varies
by amount of premium and by state of residence of the Owner. (See Charges And
Deductions - State Premium Taxes.)
Premiums to Prevent Lapse
Grace Period. If the Net Cash Value on any Monthly Day is less than the amount
needed to pay the Monthly Deduction, and the no-lapse guarantee or minimum death
benefit guarantee is not in effect, the Company will mail a notice of
termination to the Owner. A grace period of 61 days will begin on the date the
notice is mailed. To avoid the Policy lapsing at the end of the grace period,
the Owner must: (1) pay sufficient premium to increase the Net Cash Value to
zero by the end of the grace period, or (2) if prior to the third Policy
Anniversary, and no requested increase in Specified Amount was made, either the
above amount or the amount needed to qualify for the no-lapse guarantee. In
addition to allowing the Policy to remain In Force, payment of the latter amount
will reinstate the no-lapse guarantee.
Lapse. If the premium due is not paid during the grace period, the Policy will
Lapse without value. If the Insured dies during the grace period, the overdue
charges will be deducted from the Death Proceeds.
No-Lapse Guarantee. If at all times during the first three Policy years the sum
of the premiums received to date, less all partial surrenders and Indebtedness,
is at least equal to the monthly minimum premium multiplied by the number of
months (plus one month) the Policy has been In Force, the Policy will not Lapse.
The monthly minimum premium is the minimum premium (the minimum annual amount
needed each year during the first three Policy years to keep the no-lapse
guarantee in effect) divided by 12. If any requested increase in Specified
Amount is made during the first three Policy years, the no-lapse guarantee is
voided.
In cases where the no-lapse guarantee is in effect and there is insufficient Net
Cash Value to pay the Monthly Deduction. Deferred Charges (The contingent
deferred sales charge and contingent deferred administrative charge which are
collected only if the Policy is surrendered during the first nine Policy years
after the Issue Date or the first nine years after an increase in Specified
Amount, whichever is applicable) will be used to pay the Monthly Deduction. (See
Charges And Deductions - Contingent Deferred Sales and Administrative Charges.)
Deferred Charges are collected only if the Policy is surrendered during the
first nine Policy years after the Issue Date or the first nine years after an
increase in Specified Amount, whichever is applicable. The Company will waive
any Monthly Deduction remaining after the Deferred Charges have been exhausted.
(See Charges And Deductions Monthly Deduction.)
Reinstatement. The Owner may ask to have a Lapsed Policy reinstated. The Company
will make reinstatement based upon the original terms of the Policy if the
following conditions are met:
o the Owner requests the Company to reinstate the Policy within five
years after the end of the grace period;
o the request is in writing;
o satisfactory evidence of insurability is provided to the Company
(the Cost of Insurance rates following reinstatement will be based
upon the risk classification of the reinstated Policy);
o payment of an amount sufficient to increase the Net Cash Value to
zero by the end of the grace period, assuming no investment gains or
losses,
o the Owner pays the amount of the Monthly Deductions due on the first
three Monthly Days after the reinstatement is effective; and
o the Owner pays an amount equal to the difference between Deferred
Charges on the date of Lapse and Deferred Charges on date of
reinstatement, if greater than zero, computed as if the Lapse had
not occurred (this amount will be reinstated in the Deferred Charges
Account). Deferred Charges Account is a portion of the Company's
general account in which Policy values are held in support of
Deferred Charges.
The reinstatement will become effective immediately upon the Company's approval
of the reinstatement. The Company will reinstate Accumulated Value to the
Deferred Charges Account in an amount equal to the lesser of the Deferred
Charges on date of Lapse or Deferred Charges on date of reinstatement, computed
as if the Policy had not Lapsed. After reinstatement, the Deferred Charges will
be handled as if the Lapse had not occurred.
Allocation of Net Premiums
All Net Premiums are allocated among the Subaccounts and the Interest Bearing
Account. The Owner determines what percentages of the Net Premiums are allocated
to each Subaccount and the Interest Bearing Account. Any allocation to a
Subaccount or the Interest Bearing Account must be at least 5% of amount applied
and only whole percentages are permitted.
Allocation of initial premium payments will be handled as follows:
If the initial premium is received before the Record Date, it is held in the
Company's general account. If a Policy is subsequently issued, interest is
credited on the net initial premium (initial premium less charge for State
Premium Tax) at a rate of at least 4% compounded annually. The Company may, at
its sole discretion, credit interest at a rate in excess of 4%. On the first
Valuation Day following the Record Date, this Net Premium plus interest from the
Issue Date, and less Monthly Deductions and amounts held in the Deferred Charges
Account are allocated to the Subaccounts of the Separate Account and the
Interest Bearing Account in the percentages established by the Owner and
recorded on the application for the Policy. (See Charges And Deductions -
Monthly Deduction and Contingent Deferred Sales and Administrative Charges.)
These allocation percentages apply to future Net Premiums until the allocation
is changed by the Owner. (See Other Policy Benefits and Provisions - Change of
Allocations.)
Dollar Cost Averaging. Through the dollar cost averaging program, an Owner may
purchase units of the Subaccounts at regular intervals in fixed dollar amounts.
The fixed dollar amount will purchase more units when the value of a Subaccount
is low and fewer units when the value of a Subaccount is high. Over time, the
cost per unit averages out to be not as high as if all purchases had been made
at the highest cost and not as low as if all purchases had been made at the
lowest cost. Dollar cost averaging reduces the risk of making purchases only
when prices are high. It does not assure profit or protect against loss in
declining markets. Owners interested in the dollar cost averaging program should
consider their ability to maintain steady purchases at times when prices are
low.
The dollar cost averaging request form permits an Owner to make transfers each
month from the Money Market Subaccount to any other Subaccount and to the
Interest Bearing Account. The minimum transfer is $200 per month. The amount
transferred to a Subaccount must be at least 5% of the amount transferred and
must be in whole percentages. The transfer is made on the 20th day of each month
if that day is a Valuation Day. If the 20th is not a Valuation Day, the transfer
will be made on the next Valuation Day. Once elected, dollar cost averaging
remains in effect until the earliest of: (1) the Money Market Subaccount is
depleted to zero; (2) the Owner cancels the election (by written notice or by
telephone or fax if the Company has the Owner's telephone and fax authorization
form on file); or (3) for three successive months, the amount in the Money
Market Subaccount has been insufficient to implement the dollar cost averaging
instructions the Owner has given to the Company. The Company will notify the
Owner when dollar cost averaging is no longer in effect. There is no additional
charge for using dollar cost averaging. The Company reserves the right to
discontinue offering the dollar cost averaging facility at any time and for any
reason.
The Separate Account invests in shares of open-end management investment
companies of the series type with one or more investment portfolios or series.
Each investment company is registered with the Securities and Exchange
Commission ("SEC").
The Separate Account invests in Class Z shares of the Ultra Series Fund. The
Separate Account, CUNA Mutual Group qualified retirement plans, and two other
separate accounts of the Company are shareholders of the Ultra Series Fund.
Other Separate Accounts of the Company or separate accounts of other affiliated
and unaffiliated life insurance companies and qualified retirement plans may
also invest in the Ultra Series Fund. The Separate Account also invests in
shares of the MFS Variable Insurance Trust and the T. Rowe Price International
Series, Inc. (See The Separate Account.)
The paragraphs below summarize the investment objectives and policies of each
Fund. There is no assurance that any Fund will achieve its stated objectives.
More detailed information, including a description of risks and expenses, may be
found in the prospectuses for the Ultra Series Fund, the T. Rowe Price
International Series, Inc. and the MFS Variable Insurance Trust which follow
this prospectus. Please read these prospectuses carefully and retain them for
future reference.
Ultra Series Fund
The Ultra Series Fund is a fund with two classes of shares within each of seven
investment portfolios. Class C shares are offered to unaffiliated insurance
company separate accounts and unaffiliated qualified retirement plans. Class Z
shares are offered to CUNA Mutual Group affiliates separate accounts and
qualified retirement plans. CIMCO Inc. serves as investment adviser to the Ultra
Series Fund and manages assets in accordance with general policies and
guidelines established by the board of trustees of the Ultra Series Fund.
Currently, the Ultra Series Fund offers six Funds as investment options under
the Policies.
Capital Appreciation Stock Fund. This Fund seeks a long-term growth of capital.
It pursues this objective by investing in common stocks, including those of
smaller companies and of companies undergoing significant change.
Growth and Income Stock Fund. This Fund seeks long-term growth of capital with
income as a secondary consideration. It pursues this objective by investing in
common stocks of companies with financial and market strengths and long-term
records of performance.
Balanced Fund. This Fund seeks a high total return through the combination of
income and capital growth. It pursues this objective by investing in the types
of common stocks owned by the Capital Appreciation Stock and Growth and Income
Stock Funds, the type of bonds owned by the Bond Fund, and the type of money
market instruments owned by the Money Market Fund.
Bond Fund. This Fund seeks a high level of current income, consistent with the
prudent limitation of investment risk, through investment in a diversified
portfolio of fixed-income securities with maturities of up to 30 years.
It principally invests in securities of intermediate term maturities.
Money Market Fund. This Fund seeks high current income from money market
instruments consistent with preservation of capital and liquidity. An investment
in the Money Market Fund is neither insured nor guaranteed by the U.S.
Government. There can be no assurance that the Money Market Fund will be able to
maintain a stable Net Asset Value of $1.00 per share.
Treasury 2000 Fund. The investment objective of this Fund is to provide safety
of capital and a relatively predictable payout upon Portfolio Maturity,
primarily by investing in Stripped Treasury Securities. The Stripped
Treasury Securities held by this Fund mature November 15, 2000.
T. Rowe Price International Series, Inc.
International Stock Portfolio. This Fund seeks long-term growth of capital
through investments primarily in common stocks of established, non-U.S.
companies.
Rowe Price-Fleming International, Inc. ("RPFI") serves as the investment adviser
to the International Stock Portfolio and manages its assets in accordance with
general policies and guidelines established by the board of directors of the T.
Rowe Price International Series, Inc. RPFI was founded in 1979 as a joint
venture between T. Rowe Price Associates, Inc. and Robert Fleming Holdings
Limited.
MFS Variable Insurance Trust
MFS Global Governments Series. This Fund seeks to provide income and capital
appreciation.
MFS Emerging Growth Series. This Fund seeks long-term growth of capital through
investments primarily in common stocks of emerging growth companies.
Massachusetts Financial Services Company ("MFS") serves as the investment
adviser to the MFS Global Governments Series and MFS Emerging Growth Series and
manages its assets in accordance with general policies and guidelines
established by the board of trustees of the MFS Variable Insurance Trust. MFS is
a subsidiary of Sun Life Assurance Company of Canada (U.S.) which, in turn, is a
wholly owned subsidiary of Sun Life Assurance Company of Canada.
Availability of the Funds. The Separate Account purchases shares of
International Stock Portfolio, MFS Global Governments Series, and MFS Emerging
Growth Series in accordance with separate participation agreements between the
Company and T. Rowe Price International Series, Inc. and MFS Variable Insurance
Trust, as appropriate. The agreements contain varying termination provisions. If
a participation agreement terminates, the Separate Account may not be able to
purchase additional shares of the Fund(s) covered by that agreement. Likewise,
in certain circumstances, it is possible that shares of a Fund may not be
available to the Separate Account even if the participation agreement relating
to that Fund has not been terminated. In either event, Owners will no longer be
able to allocate purchase payments or transfer Policy value to the Subaccount
investing in that Fund.
Resolving Material Conflicts
Ultra Series Fund. The Ultra Series Fund may sell shares to the Separate Account
and to other separate accounts of the Company and to affiliated and unaffiliated
insurance company separate accounts supporting individual variable annuity
contracts and to variable annuity contracts sold solely in connection with
qualified retirement plans (annuity contracts). Currently, the Company does not
foresee any disadvantages to Owners arising from the sale of shares to support
such annuity contracts or that would arise if the Ultra Series Fund were to
offer its shares to support products other than the Policies and such annuity
contracts. However, the management of the Ultra Series Fund will monitor events
in order to identify any material irreconcilable conflicts that might possibly
arise
(1) as a result of the Ultra Series Fund offering its shares to support both the
Policies and such annuity contracts,
(2) as a result of the Ultra Series Fund offering its shares to support products
other than the Policies or such annuity contracts or
(3) as a result of the sale of its shares to qualified retirement plans.
In the event of such a conflict, the Company would determine what action, if
any, should be taken in response to the conflict. In addition, if the Company
believes that Ultra Series Fund's response to any such conflict insufficiently
protects Owners, it will take appropriate action on its own, including
withdrawing the Separate Account's investment in the Ultra Series Fund.
The T. Rowe Price International Series, Inc. and the MFS Variable Insurance
Trust. The T. Rowe Price International Series, Inc. currently sells shares of
the International Stock Portfolio to the Separate Account and to separate
accounts of life insurance companies not affiliated with the Company to support
other variable annuity contracts. The MFS Variable Insurance Trust currently
sells shares of its MFS Global Governments Series and MFS Emerging Growth Series
to Separate Accounts of the Company for annuity contracts, sells shares to
companies not affiliated with the Company, and has sold shares to MFS as a seed
money investment. Shares of both the International Stock Portfolio, the MFS
Global Governments Series and the MFS Emerging Growth Series may in the future
be sold to other separate accounts of the Company. Shares of the MFS Global
Governments Series and the MFS Emerging Growth Series may in the future be sold
to separate accounts of other affiliated or unaffiliated life insurance
companies to support other variable annuity or variable life insurance
contracts. Shares of the MFS Global Governments Series and MFS Emerging Growth
Series may in the future also be sold to qualified retirement plans. Currently,
the Company does not foresee any disadvantages to Owners arising from the sale
of such shares to support variable life insurance contracts or variable annuity
contracts of other companies or to qualified retirement plans. However, the
management of the T. Rowe Price International Series, Inc. and the MFS Variable
Insurance Trust will each monitor events related to their Fund in order to
identify any material irreconcilable conflicts that might possibly arise as a
result of such Fund's offering its shares to (1) support both variable life
insurance contracts and variable annuity contracts, or (2) support the variable
life insurance contracts and/or variable annuity contracts issued by various
unaffiliated insurance companies. In addition, the management of the MFS
Variable Insurance Trust will monitor the Trust in order to identify any
material irreconcilable conflicts that might possibly arise as a result of the
sale of its shares to qualified retirement plans. In the event of such a
conflict, the management of the appropriate Fund would determine what action, if
any, should be taken in response to the conflict. In addition, if the Company
believes that the response of the T. Rowe Price International Series, Inc. or
the MFS Variable Insurance Trust to any such conflict insufficiently protects
Owners, it will take appropriate action on its own, including withdrawing the
Separate Account's investment in the International Stock Portfolio or the MFS
Global Governments Series or the MFS Emerging Growth Series, as appropriate.
Addition, Deletion or Substitution of Investments. The Company reserves the
right, subject to applicable law, to make additions to, deletions from, or
substitutions for the shares of a Fund that are held in the Separate Account or
that the Separate Account may purchase. If the shares of a Fund are no longer
available for investment or if, in the Company's judgment, further investment in
any Fund should become inappropriate, the Company may redeem the shares, if any,
of that Fund and substitute shares of another Fund. To the extent required by
the 1940 Act or other applicable law, the Company will not substitute any shares
attributable to a Policy's interest in a Subaccount without notice and prior
approval of the SEC and state insurance authorities.
The Company also reserves the right to establish additional Subaccounts of the
Separate Account, each of which would invest in shares of a new corresponding
Fund having a specified investment objective. The Company may, in its sole
discretion, establish new Subaccounts or eliminate or combine one or more
Subaccounts if marketing needs, tax considerations or investment conditions
warrant. Any new Subaccounts may be made available to existing Owners on a basis
to be determined by the Company. Subject to obtaining any approvals or consents
required by applicable law, the assets of one or more Subaccounts may be
transferred to any other Subaccount if, in the sole discretion of the Company,
marketing, tax, or investment conditions warrant.
In the event of any such substitution or change, the Company (by appropriate
endorsement, if necessary) may change the Policy to reflect the substitution or
change. Affected Owners will be notified of such a material substitution or
change. If an Owner objects to the change, the Owner may exchange the Policy for
a fixed benefit whole life insurance policy then issued by the Company. The new
policy will be subject to normal underwriting rules and other conditions
determined by the Company. No evidence of insurability will be necessary. The
option to exchange must be exercised within sixty (60) days of notification to
the Owner of the investment policy change. The Owner may also Surrender the
Policy. (See Policy Benefits - Surrender Proceeds.)
If the Company considers it to be in the best interest of Owners, and subject to
any approvals that may be required under applicable law, the Separate Account
may be operated as a management investment company under the 1940 Act, it may be
deregistered under the 1940 Act if registration is no longer required, it may be
combined with other Company separate accounts, or its assets may be transferred
to another separate account of the Company. In addition, the Company may, when
permitted by law, restrict or eliminate any voting rights of Owners or other
persons who have such rights under the Policies.
Interest Bearing Account
The Interest Bearing Account is an investment option under the Policy. Under
this option, premiums may be allocated and values transferred to the general
account of the Company. Assets attributable to the Interest Bearing Account are
subject to the claims of the Company's general creditors. Net premiums allocated
and values transferred to the Interest Bearing Account will earn interest at a
rate of no less than 4% annually, with the Company crediting a higher rate
solely at its discretion. (See Other Policy Benefits and Provisions - Transfer
of Values.)
Charges and Deductions
Fund Charges. Charges made by the Funds are discussed in the Funds' prospectuses
and in their statements of additional information available from the address
shown on the first page of this prospectus. Charges and deductions for state
Premium Taxes and charges against the Separate Account and the Interest Bearing
Account are described below.
State Premium Taxes. The Company makes a deduction from premiums for Premium
Taxes (or taxes in lieu of Premium Taxes) charged by the Owner's state of
residence. The Company determines the Owner's state of residence by his mailing
address as shown on Company records. The initial percentage of reduction for
state taxes is shown on the specifications page of the Policy.
Monthly Deduction. The Monthly Deduction due on each Monthly Day will be the sum
of:
o the Cost of Insurance for that month; plus
o the monthly Policy fee; plus
o the monthly administrative fee; plus
o the cost of any additional benefits provided by rider, if any.
The Monthly Deduction is made by redeeming the number of units (or fraction of
units) in Subaccounts (and/or withdrawing values from the Interest Bearing
Account) in an amount equal to the amount of the Monthly Deduction, except
during the second through ninth Policy years, in which case the amount in the
Deferred Charges Account in excess of the Deferred Charges will be first applied
to the Monthly Deduction. The excess amount will include interest earned in the
account and, when the Monthly Day falls on a Policy Anniversary, the amount
released from the Deferred Charges Account.
On any Monthly Day when there is insufficient Net Cash Value to pay the Monthly
Deduction and the no-lapse guarantee or minimum death benefit guarantee is in
effect, the Monthly Deduction remaining after the Net Cash Value is exhausted
will be made from the Deferred Charges Account. If the Deferred Charges Account
balance is insufficient to pay the Monthly Deduction, the Company will waive any
Monthly Deduction remaining after the amount in the Deferred Charges Account has
been exhausted.
In the 10th Policy year and beyond, any Monthly Deduction in excess of the Net
Cash Value will be waived by the Company if the minimum death benefit guarantee
is still in effect.
The Owner may specify what percentages of the Monthly Deduction will be
withdrawn from each Subaccount and the Interest Bearing Account. Each withdrawal
from a Subaccount or the Interest Bearing Account must be at least 5% of the
total Monthly Deduction. Only whole percentages are permitted. If a
specification is not made, the withdrawals will be made in the same percentages
as premiums are currently allocated among the Subaccounts and the Interest
Bearing Account.
Cost of Insurance. The Company will determine a Cost of Insurance rate to be
used on each Monthly Day. The Cost of Insurance rate for the Policy will be
determined by the Insured's Attained Age, sex, smoker status, and rating class.
(For factors used in unisex Policies, see the Section entitled Unisex Policies.)
Attained Age means Age on the most recent Policy Anniversary. Cost of Insurance
rate charges will depend on the Company's expectations as to future mortality
experience. The monthly Cost of Insurance rate will not exceed the rates shown
in Table I Guaranteed Maximum Insurance Rates contained in the Policy. However,
the Company may charge less than these rates. While not guaranteeing to do so,
the Company intends to charge less than the guaranteed maximum insurance rates
after the 10th Policy year. The guaranteed maximum insurance rates are based on
the 1980 CSO Mortality Tables, Age last birthday.
If death benefit option 1 has been selected, and if there have been increases in
the Specified Amount, then the Accumulated Value will be considered first to be
part of the initial Specified Amount. Any excess Accumulated Value will be
considered to be part of the additional Specified Amounts in the order of the
increases.
Monthly Policy Fee. The monthly Policy fee is a fee the Company charges to
compensate it for some of the administrative expenses associated with the
Policy. The fee cannot be increased. It is equal to $3 per month for Policies
with Issue Ages of 0-19 and $6 per month for all other Policies. It is not based
on the Specified Amount.
Monthly Administrative Fee. The Company assesses an administrative fee of $.45
per thousand dollars of Specified Amount per year on a monthly basis to
reimburse the Company for some of the administrative expenses associated with
the Policy. On a monthly basis, the administrative fee amounts to $.0375 per
thousand dollars of Specified Amount. The fee is based on the Specified Amount
and cannot be increased unless the Specified Amount is changed. The fee will not
be decreased in the event of a Specified Amount decrease. This fee is charged
only during the first 10 Policy years of the Policy or, on an increase in
Specified Amount, during the first 10 Policy years after the increase.
The monthly administrative fee, together with the monthly Policy fee, is
designed to equitably distribute the administrative costs among all Policies.
Cost of Additional Benefits. The cost of additional benefits will include
charges for any additional insurance benefits added to the Policy by rider.
These charges are for insurance protection, and the amounts will be specified in
the Policy.
Mortality and Expense Risk Charge. The Company daily deducts a mortality and
expense risk charge of .00002466% of the Policy's Net Asset Value in the
Separate Account (and the Policy's Accumulated Value in the Interest Bearing
Account), which is equal on an annual basis to 0.9% of the daily value of the
net assets of the Separate Account (and the value in the general account
attributable to the Interest Bearing Account). The mortality risk assumed is
that the Insured may not live as long as expected. The expense risk assumed by
the Company is that the actual expense will be greater than that expected by the
Company. The Company has primary responsibility for all administration for the
Policy, the Separate Account and the Interest Bearing Account. Such
administration includes, among other things, Policy issuance, underwriting,
maintenance of Policy records, Policy service, and all accounting, reserves
calculations, regulatory and reporting requirements, and audit of the Separate
Account. If proceeds from this charge are not needed to cover mortality and
expense risks, the Company may use proceeds to finance distribution of the
Policies or for any other lawful purpose.
Contingent Deferred Sales and Administrative Charges. To reimburse the Company
for sales expenses and Policy issue expenses, the Company deducts contingent
deferred sales and administrative charges ("Deferred Charges") from the proceeds
in the event of a complete surrender of the Policy during the first ten years. A
chart showing the percentage of Deferred Charges remaining at the beginning of
Policy years 2 through 9 is shown below. The contingent deferred sales charge
will be used to offset the expenses that were incurred in the distribution of
the Policy, including but not limited to representatives' commissions,
advertising, sales materials, training allowances, and preparation of
prospectuses. In no instance will the charge exceed 30% of the lesser of
premiums paid or the "guideline annual premium" The "guideline annual premium"
is approximately equal to the amount of premium that would be required on an
annual basis to keep the Policy In Force if the Policy had a mandatory fixed
premium schedule assuming (among other things) a 5% net investment return.
The Deferred Charges vary by the Age of Insured , sex, and smoking status. For a
35-year-old male nonsmoker, the charges would be $7.71 per $1,000 of the
Specified Amount. For a 50-year-old male nonsmoker, the charges would be $15.91
per $1,000 of Specified Amount. For a chart showing how the charges vary, see
Appendix B.
The Company will use the contingent deferred administrative charge to recover
the first-year costs of underwriting and issuing the Policy. They are contingent
in that they will not be collected unless the Policy is surrendered during the
first nine Policy years. The Company will not deduct any Deferred Charges from
the proceeds in the event of a partial surrender of the Policy.
The Deferred Charges generally build up monthly during the first Policy year in
twelve equal increments to the total Deferred Charges. Then the Deferred Charges
decrease annually after the first year. The percentage of the Deferred Charges
remaining in each Policy year is:
Beginning Percentage of
Policy Year Deferred Charges Remaining
----------- --------------------------
2 95%
3 90%
4 85%
5 75%
6 65%
7 50%
8 35%
9 20%
10+ 0%
At the time the Policy is issued, the first month's portion of the Deferred
Charges is placed in a non-segregated portion of the general account of the
Company, which is referred to as the Deferred Charges Account. This amount will
earn interest at a minimum rate of 4% per annum with the Company crediting
additional interest, at its option, from time to time. At the next Monthly Day,
taking into account the interest earned, the Company will transfer from the
Separate Account and/or the Interest Bearing Account to the Deferred Charges
Account the amount necessary to equal the current Deferred Charges. This
withdrawal will be made in the same percentages as premiums are currently
allocated among the Subaccounts and the Interest Bearing Account.
The Company will do the same for each month of the first Policy year. If the
Owner has not paid sufficient premium to build up the Deferred Charges to the
appropriate level in the first Policy year, additional amounts will be
transferred out of the Separate Account and/or Interest Bearing Account in
subsequent years. The transfers will continue until the Deferred Charges equal
premiums required in the first year to completely fund the Deferred Charges, and
the corresponding deductions had taken place every year, as scheduled.
The Company will release on the first Monthly Day of the second Policy year the
amount in the Deferred Charges Account in excess of 95% of the first Policy year
Deferred Charges, taking into account the interest earned. This process
continues each Policy year until the 10th Policy year or until the Policy is
surrendered.
The amount in the Deferred Charges Account is included in calculating the
Accumulated Value of the Policy. The Company will withdraw Deferred Charges from
the Deferred Charges Account only in the following instances:
o to pay surrender charges upon full surrender of the Policy;
o to release amounts back to the Separate Account and/or Interest
Bearing Account on the second through ninth Policy Anniversaries;
and
o to pay the Monthly Deduction when there is insufficient Net Cash
Value and the no-lapse guarantee or minimum death benefit guarantee
is in effect.
In the latter two situations, allocations will be made in the same percentages
as premiums are currently allocated among the Subaccounts and the Interest
Bearing Account.
Net Premiums paid following the payment of the Monthly Deduction with Deferred
Charges will first be transferred from the Subaccounts and/or Interest Bearing
Account to the Deferred Charges Account on the day the premiums are received, to
the extent necessary to bring the Deferred Charges Account to the same level as
if no Deferred Charges had been used to pay the Monthly Deduction, and if on a
Policy Anniversary, the reduction in Deferred Charges had taken place as
scheduled. If the premium is paid on a Monthly Day during the first Policy year,
additional amounts will be transferred to the Deferred Charges Account. This
process of using Deferred Charges to pay the Monthly Deduction will continue
every Monthly Day that: (1) there is insufficient Net Cash Value to pay the
Monthly Deduction; and (2) the no-lapse guarantee or minimum death benefit
guarantee are in effect; and (3) the Policy is not beyond the ninth Policy year.
Transfer Fee. An Owner may transfer a Policy's Accumulated Value among one or
more of the Subaccounts and the Interest Bearing Account. Currently, the Company
allows four transfers in each Policy year without charge. After four transfers
in any given Policy year, the Company may deduct up to $20 per transfer from the
amount transferred. (See Other Policy Benefits and Provisions - Transfer of
Values.)
Federal and State Income Taxes. Other than Premium Taxes (and taxes in lieu of
Premium Taxes), no charges are currently made against the Separate Account
and/or Interest Bearing Account for federal or state income taxes. In the event
the Company should determine that any such taxes will be imposed, the Company
may make deductions from the Separate Account and/or Interest Bearing Account to
pay such taxes.
Duplicate Policy Charge. You can obtain a certification of your policy at no
charge. There will be a $30 charge for a duplicate policy.
Change of Specified Amount Charge. The Company will assess a $50 charge for each
change in Specified Amount after the first in a Policy year.
Policy Values
Accumulated Value. The Accumulated Value of the Policy is the sum of the values
attributable to the Policy in the Loan Account, Deferred Charges Account, each
Subaccount, and Interest Bearing Account. Accumulated Value is determined as of
the end of each Valuation Period. The Loan Account is part of the Company's
general account into which is transferred an amount equal to any Policy loans.
(See Other Policy Benefits and Provisions - Policy Loans.) The Deferred Charges
Account is part of the Company's general account in which Policy values are held
in support of the deferred sales and administrative charges. (See Charges And
Deductions - Contingent Deferred Sales and Administrative Charges.)
Accumulated Value will increase whenever there is:
o an investment gain in any Subaccount;
o interest credited to the Policy for amounts held in the Deferred
Charges Account and/or Interest Bearing Account;
o interest credited to the Policy for any loan amounts held in the
Loan Account;
o additional premium paid; or o Policy dividends paid into the
Subaccounts.
Accumulated Value will decrease whenever there is:
o an investment loss in any Subaccount;
o a Monthly Deduction;
o a partial surrender; or
o a charge made for reallocating Net Cash Value between the
Subaccounts or between the Interest Bearing Account and
Subaccounts. The amount reallocated would be reduced by the
amount of the transfer charge.
Accumulated Value will neither increase nor decrease when:
o a Policy loan is either disbursed or repaid; or
o amounts are transferred between any Subaccount and either the
Deferred Charges Account or the Loan Account, or when amounts
are transferred among the Subaccounts and the Interest Bearing
Account (exclusive of any transfer charge).
The Owner may, at any time, surrender or partially surrender the Policy for some
or all of its Net Cash Value (Accumulated Value less Deferred Charges and
Indebtedness). In addition, the Owner can borrow at any time up to 80% (90% for
Virginia residents) of the Policy's Cash Value (Accumulated Value less current
Deferred Charges). The written consent of all assignees and Irrevocable
Beneficiaries, if any, must be furnished before the Company will release either
loan or surrender proceeds.
The value in a Subaccount attributable to a Policy is equal to the number of
units that the Policy has in each Subaccount, multiplied by the Unit Value of
that Subaccount. Because the Separate Account purchases shares of the Fund, the
value of the Subaccounts will reflect the investment advisory or
advisory/administrative fee and other expenses incurred by the Fund.
The Unit Value of each Subaccount (other than the Treasury 2000 Subaccount) was
set at $10 for the first Valuation Period. The Unit Value of the Treasury 2000
Subaccount was originally set at $3.62 per unit. The Unit Value may increase or
decrease from one Valuation Period to the next. The Unit Value will vary between
Subaccounts.
Cash Value. The Cash Value at any time is equal to the Accumulated Value less
any Deferred Charges which would be applicable if the Policy were surrendered at
that time. (See Charges And Deductions - Contingent Deferred Sales and
Administrative Charges.)
Net Cash Value. The Net Cash Value at any time is equal to the Cash Value less
any Policy Indebtedness. (See Other Policy Benefits and Provisions - Policy
Loans.) This value is equal to the value attributable to the Policy in each
Subaccount and the Interest Bearing Account and represents the amount an Owner
would receive upon full surrender of the Policy (see Policy Benefits - Surrender
Proceeds) or when the Policy matures (see Policy Benefits - Maturity Proceeds).
Unit Value Guarantee. The Company guarantees the payment of at least $10 per
unit of a Subaccount which invests in a treasury series if the units are held to
Portfolio Maturity. The Stripped Treasury Securities held by the Treasury 2000
Series become payable on (have a Portfolio Maturity date of) November 15, 2000.
The Company does not guarantee the Unit Value of any units redeemed prior to
Portfolio Maturity. Any such unit will be redeemed at a price based on the then
current Net Asset Value, which may be more or less than the purchase price or
the price at Portfolio Maturity. Taking a Monthly Deduction and transferring
value from a Subaccount investing in a treasury series will force a redemption
and thus void the Unit Value Guarantee on those units. The Company reserves the
right to discontinue offering units of a Subaccount investing in a treasury
series if shares from that series become unavailable prior to the maturity of
the Stripped Treasury Securities in that series or, if in the judgment of the
Company's Board of Directors, further investment in such units is no longer
deemed to be in the best interest of policies generally within the class
represented by the Policy. When the Treasury 2000 Series portfolio matures, the
Company will give written notice to current Owners of units of the Treasury 2000
Subaccount. Owners may transfer Treasury Unit Values to any other Subaccount or
to the Interest Bearing Account. In the absence of a selection by the Owner upon
maturity, value in the Treasury 2000 Subaccount will be transferred to the Money
Market Subaccount.
Policy Benefits
Death Proceeds
Payment of Death Proceeds. When the Company receives proof of the Insured's
death in writing on a form satisfactory to the Company, the Company will pay the
Death Proceeds to the Beneficiary. If no Beneficiary survives the Insured, The
Company will pay the Death Proceeds to the Owner, if living, or to the Owner's
estate.
The Company will pay Death Proceeds payable to an estate in one sum. The Company
will pay Death Proceeds payable to other beneficiaries in one sum unless another
settlement option is selected. If the Owner, Beneficiary, or payee is not a
natural person, any Death Proceeds due will be applied only under settlement
options consented to by the Company.
Interest will accumulate from the Insured's date of death until a lump sum
payment is made or until a settlement option is effective. Each year the Company
determines the interest rate. The rate will not be less than 3.5% per year.
During the Insured's lifetime, the Owner may direct that the Company pay the
Death Proceeds under one of the settlement options. The Company must receive the
written consent of all Irrevocable Beneficiaries prior to the selection. After
the Insured's death, if the Owner did not select a settlement option, any
Beneficiary entitled to receive the proceeds in one sum may select a settlement
option. (See Other Policy Benefits and Provisions Payment of Proceeds/Settlement
Options.)
An accelerated payment of a portion of the eligible death benefit may be elected
if the Insured is terminally ill. (See Other Policy Provisions, Definitions -
Accelerated Benefit Option.)
Death Benefit Options 1 and 2. The Owner may select one of two death benefit
options. The Owner's selection will affect the Face Amount, the Monthly
Deduction, and the Cash Value. Under either option, Death Proceeds are equal to:
o the Face Amount on the date of death; plus
o any premiums received after date of death; minus
o Policy Indebtedness.
The Face Amount, however, differs under the two death benefit options.
Under Death Benefit Option 1, the Face Amount is the greater of:
o The Specified Amount, or
o The Accumulated Value on the date of death multiplied by the Death
Benefit Ratio.
Under Death Benefit Option 2, the Face Amount is the greater of:
o The Specified Amount plus the Accumulated Value on the date of death, or
o The Accumulated Value on the date of death multiplied by the Death
Benefit Ratio.
The Death Benefit Ratio is the ratio of Face Amount to Accumulated Value
required by the Internal Revenue Code for treatment of the Policy as a life
insurance Policy. The Death Benefit Ratio varies by Attained Age as shown in
Appendix D. The death benefit factor decreases from year to year as the Attained
Age of the Insured increases.
The illustrations in Appendix A show how the death benefit option affects Policy
values. Illustrations 1, 2, 5 and 6 assume death benefit option 1 is in effect.
Illustrations 3, 4, 7, and 8 assume death benefit option 2 is in effect.
The Owner may change from one death benefit option to the other. (See Other
Policy Benefits and Provisions Change of Death Benefit Option.)
Minimum Death Benefit Guarantee
The minimum death benefit guarantee provides that the Company will pay a minimum
amount of death benefit if, at all times, the sum of the premiums received to
date, less all partial surrenders and Policy loans, is at least equal to the
monthly target premium multiplied by the number of months (plus one month) the
Policy has been In Force. The Target Premium is stated on the specifications
page of the Policy and is generally determined by dividing the minimum premium
by 0.60. Thus, if the Owner pays a premium at least equal to the Target Premium
each year, the Policy will remain In Force and the minimum death benefit will be
paid even if the Net Cash Value is insufficient to pay Monthly Deductions on a
Monthly Day and the Policy would otherwise Lapse. The monthly target premium is
the Target Premium divided by twelve. The minimum death benefit guarantee
expires at the later of Attained Age 65 or 10 years from the Issue Date.
The Target Premium will be increased or decreased, as appropriate, when the
Owner requests the following: increase or decrease in the Specified Amount,
change in the death benefit option, or adds or deletes riders.
If the premiums required to maintain the minimum death benefit guarantee are not
paid, the minimum death benefit guarantee will be lost. Notice of this loss will
be mailed to the Owner, after which the Owner has 60 days to reinstate the
minimum death benefit guarantee by paying premiums sufficient to raise the total
premiums to the required amount. If the necessary premiums are not paid within
the 60-day grace period, the minimum death benefit guarantee cannot be
reinstated.
Where the minimum death benefit guarantee is in effect and there is insufficient
Net Cash Value to pay the Monthly Deduction, Deferred Charges will be used to
pay the Monthly Deduction during the first nine Policy years. (See Charges and
Deductions - Contingent Deferred Sales and Administrative Charges.) During those
years, any Monthly Deduction remaining after amounts in the Deferred Charges
Account have been exhausted will be waived. In the 10th Policy year and beyond,
any Monthly Deduction in excess of the Net Cash Value will be waived. (See
Charges and Deductions - Monthly Deduction.)
Surrender Proceeds
Policy Surrender. The Owner may Surrender the Policy for its Net Cash Value. The
Owner must obtain the written consent of all assignees or Irrevocable
Beneficiaries prior to any partial or total surrender. The Company may require
the return of the Policy.
The surrender date of the Policy is the date the Company receives a written
request for surrender at the Home Office in a form satisfactory to the Company
and containing all necessary signatures. The Company will determine the Net Cash
Value as of the end of the Valuation Period during which the surrender date
occurs. The Policy and all insurance will terminate as of the surrender date.
To reimburse the Company for sales expenses and Policy expenses incurred at
issue, contingent deferred sales and administrative charges will be deducted
from the proceeds in the event of a complete surrender of the Policy during the
first nine Policy years. (See Charges and Deductions - Contingent Deferred Sales
and Administrative Charges.)
Partial Surrender. The Owner may also surrender a portion of the Policy for an
amount less than the full Net Cash Value. The effective date of such partial
surrender will be the date the partial surrender request is received at the Home
Office. The Company will not deduct any contingent deferred sales or
administrative charges in the case of a partial surrender, but will make a
service charge equal to the lesser of $25 or 2% of the amount surrendered for
each partial surrender. The Owner may specify the allocation percentages among
the Subaccount(s) and Interest Bearing Account from which the surrender is to be
made. If no specification is made, the Company will withdraw the surrendered
amount from the Subaccounts and Interest Bearing Account in the same percentages
as Monthly Deductions are withdrawn from the Subaccounts and Interest Bearing
Account. If there are insufficient values to follow these percentages, the
partial surrender amount will be withdrawn on a pro rata basis based on values
in the Subaccounts and Interest Bearing Account. The partial surrender fee will
be deducted from amounts withdrawn from the Subaccounts and the Interest Bearing
Account on the same pro rata basis unless otherwise directed by the Owner. No
partial surrender will be allowed if the Specified Amount remaining would be
less than $40,000 ($8,000 if Issue Age is 65 and over). (For limits applicable
to Policies sold to employee benefit plans, see Unisex Policies.)
Unless the Face Amount derived from application of the Death Benefit Ratio
applies, under either death benefit option 1 or option 2, a partial surrender
will reduce both the Accumulated Value and Face Amount by the amount surrendered
but will not affect the Cost of Insurance. Under death benefit option 1, the
Specified Amount is also reduced by the same amount, but the Specified Amount is
not changed by a partial surrender under death benefit option 2.
If the Face Amount derived from application of the Death Benefit Ratio applies,
the effect on the monthly Cost of Insurance and Face Amount is somewhat
different. The Face Amount is then decreased by more than the amount
surrendered, and the monthly Cost of Insurance is less than it would have been
without the surrender.
Payment will be made within seven days of the surrender or partial surrender
date unless a suspension of payments is in effect. (See Other Policy Benefits
and Provisions - Suspension of Payments.) For information on possible tax
effects of partial surrenders (see Tax Treatment Of Policy Proceeds).
Maturity Proceeds
The Policy matures on the Policy Anniversary following the Insured's 95th
birthday. Coverage under the Policy ceases on that date, and the Owner will
receive maturity proceeds equal to the Net Cash Value as of that date.
Payment of Proceeds/Settlement Options
Settlement options other than lump sum payments are available for Death
Proceeds, surrender proceeds, and maturity proceeds, payable to natural persons,
subject to certain restrictions on Death Proceeds. (See Policy Benefits - Death
Proceeds and Payment of Proceeds/Settlement Options.) Proceeds payable to other
than a natural person will be applied only under settlement options agreed to by
the Company. The four available settlement options are as follows:
1) Interest Option. The Policy proceeds may be left at interest with
the Company during the lifetime of the payee. The interest rate is
determined each year by the Company. It is guaranteed to be not less
than the settlement option rate of interest shown on the specifications
page contained in the Policy.
The payee may choose to receive interest payments either once a year or once a
month unless the amount of interest to be paid monthly is less than $25 per
month, then interest will be paid annually. The payee may withdraw any remaining
proceeds, if this right was given at the time the option was selected.
2) Installment Option. The proceeds may be left with the Company to
provide equal monthly installments for a specified period. No period can
be greater than 30 years. The interest the Company guarantees to pay is
set forth in the Policy. Additional interest, if any, will be payable as
determined by the Company.
The payee may withdraw the present value of any remaining guaranteed
installments, but only if this right was given at the time the option was
selected.
3) Life Income - Guaranteed Period Certain. The proceeds may be left
with the Company to provide monthly installments for as long as the
original payee lives. A guaranteed period may be selected. Payments
will cease when the original payee dies or at the end of the guaranteed
period, whichever is later. If the original payee dies during the
guaranteed period, the remaining guaranteed payments will be paid to
the successor payee.
Guaranteed periods which may be selected are:
o 10 years.
o 20 years.
o A period of years such that the total installments during the period
will be at least equal to the proceeds applied under the option.
It is also possible to take the life income without a guaranteed period. In such
case, the monthly installment amount will depend on the Age and sex of the
original payee on the date of the first payment.
Dividends, if any, will be payable as determined by the Company.
4) Joint and Survivor Life. The proceeds may be left with the Company
to provide monthly installments for two payees for a guaranteed period
of 10 years. After the 10-year period is over, payments will continue
as long as either of the original payees is living. The monthly
installment amount will depend on the Age and sex of both payees at the
date of the first payment.
The minimum amount that can be applied under settlement options 2, 3 and 4 is
that amount which will provide monthly installments of at least $25.
Additional monthly income may be purchased under settlement options 2 and 3. The
amount of additional annuity which can be purchased with new money is 95% of the
amount which can be purchased with the net Policy Death Proceeds under those
options. The additional annuity amount may not exceed twice that which the
application of proceeds under the selected option would provide.
The selection of an additional annuity purchase must be in writing and on file
at the Home Office. Selection must be within 30 days of settlement under this
Policy and is available only if the settlement is on or after the later of the
10th Policy Anniversary or the annuitant's 55th birthday.
The Company may, at its option, provide for additional settlement options or
delete any of the settlement options described above. Monthly installment
amounts for settlement options selected for use in conjunction with unisex
Policies will not be based on the sex of the Insured.
OTHER POLICY BENEFITS AND PROVISIONS
Conditions for Policy Issue
The minimum Specified Amount for this Policy is $50,000 ($10,000 for Issue Ages
65 and over). The Policy may be issued on individuals up to 75 years of Age. The
Company requires evidence of insurability satisfactory to it before issuing a
Policy. In some cases, this evidence will include a medical examination. Smoker
rates are determined based on Age, sex, and duration. Higher rates are charged
if the Company determines that for some reason the Insured is a higher mortality
risk. Nonsmoker rates are charged for nonsmokers over the Age of 19 who have
completed and returned to the Company a Nonsmoker Statement, and when required
by underwriting guidelines, a Part 2 Health Statement. (For limits on Specified
Amount and factors considered in determining the Cost of Insurance rate for
Policies sold to employee benefit plans, see Unisex Policies.)
Issue Date
The Issue Date is the date used to determine Policy Anniversaries and Monthly
Days. If a premium is paid with the application, the Issue Date will be no
earlier than the date the application is received and no later than the Record
Date. Insurance coverage will begin as of the Issue Date provided the applicant
subsequently is deemed to have been insurable. If a premium is not paid with the
application, the Issue Date will ordinarily be approximately 10 days after
underwriting approval. Insurance coverage will begin on the later of the Issue
Date or the date the premium is received.
Owner, Beneficiary
The Owner is named in the application. The Owner may be other than the Insured.
One or more Beneficiaries may be named in the application. Beneficiaries may be
classified as primary or contingent. If no primary Beneficiary survives the
Insured, payment will be made to contingent Beneficiaries. Beneficiaries in the
same class will receive equal payments unless otherwise directed. A Beneficiary
must survive the Insured in order to receive his or her share of the Death
Proceeds. If a Beneficiary dies before the Insured dies, his or her unpaid share
is divided among the Beneficiaries who survive the Insured. The unpaid share
will be divided equally unless the Owner directs otherwise. If no Beneficiary
survives the Insured, the Death Proceeds will be paid to the Owner, if living,
or to the Owner's estate.
The Owner may change the Beneficiary while the Insured is living. The written
consent of all Irrevocable Beneficiaries must be obtained prior to such change.
To make a change, the Owner must provide the Company with a written request
satisfactory to the Company. The request will not be effective until the Company
records it. After the request is recorded, it will take effect as of the date
the Owner signed the request. The Company will not be responsible for any
payment or other action it takes before it records the request. The Company may
require the Policy be returned for endorsement of the Beneficiary change.
Incontestability
The incontestability provision in the Policy, which prevents the Company from
denying coverage for misrepresentation after the Policy has been In Force for
two years, applies only to the initial Specified Amount designated in the
application. The incontestability period for any amount over and above the
initial Specified Amount is governed by its own two-year incontestability period
to which such additional amount is attributable.
While the Policy is contestable, the Company may rescind the policy (to treat
the Policy as though it had never been issued) or defend a claim only on the
basis of a material misrepresentation in the application. A misrepresentation is
material if, on the basis of correct and complete information in the
application, the Company would have:
o declined the application;
o issued the Policy at a higher premium; or,
o issued the Policy on some other basis than applied for.
If a Policy is reinstated, it is incontestable after it has been In Force during
the Insured's lifetime for two years from the date of reinstatement. This
contestable period applies only to statements made in the application for
reinstatement.
If the Policy is rescinded pursuant to the incontestability or suicide
provisions of the Policy, rescission proceeds payable to the Owner shall be
equal to:
o charges deducted for state Premium Taxes (or taxes in lieu of
Premium Taxes); plus
o the total amount of Monthly Deductions and any other charges
deducted from Accumulated Value; plus
o the Accumulated Value on the date the refund is calculated; minus
o Indebtedness.
Right-to-Examine Period
The Owner may cancel the Policy on the latest of the following three events:
o 45 days after the date of the application;
o 20 days after the Company has personally delivered or has sent the
Policy and a Notice of Right of Withdrawal to the Owner by first
class mail; or,
o 20 days after the Owner receives the Policy.
To cancel the Policy, the Owner must mail or deliver the Policy to the
representative who sold it or to the Company at its Home Office. Unless
prohibited by state law the refund will include:
o All charges for state taxes deducted from premiums; plus
o Total amount of Monthly Deductions; plus
o Any other charges taken from the accumulated value; plus
o The Accumulated Value on the date the Company received the returned
Policy; minus
o Any Policy indebtedness.
If required by state law, the refund amount will be equal to the total of all
premiums paid for the policy."
If there is an increase in Specified Amount and such increase is not the result
of the Automatic Increase Rider or change in death benefit option, the Owner
will be granted a right-to-examine period, with respect to the increase. The
Owner may request a cancellation of the increase during the right-to-examine
period. The Owner will than receive a refund (if actual payment was received) or
a credit. A credit will be made to the Policy's Accumulated Value allocated
among the Subaccounts and Interest Bearing Account as if it were Net Premium,
equal to all Monthly Deductions attributable to the increase in Specified
Amount, including rider costs arising from the increase. The refund or credit
will be made within seven days after the Company receives the request for
cancellation on the appropriate form containing all necessary signatures. Net
Premiums paid upon application of and after an increase in Specified Amount will
be allocated to the Subaccounts and/or the Interest Bearing Account and will not
be refunded following cancellation of the increase. Owners who request an
increase in Specified Amount should take this into consideration in deciding
whether to make any premium payments during the right-to-examine period for the
increase. (See Other Policy Benefits and Provisions - Change of Specified
Amount.)
Policy Loans
Application For Loan. The Owner can borrow up to 80% (90% for Virginia
residents) of the Policy's Cash Value. The Owner must obtain the written consent
of all assignees and Irrevocable Beneficiaries before the loan is made.
The Policy will be the sole security for the Policy loan.
The loan date is the date a written loan request containing the necessary
signatures is received at the Home Office. The loan value will be determined as
of the loan date. Payment will be made within seven days of the loan date unless
a suspension of payment is in effect. (See Other Policy Provisions - Suspension
of Payments.)
An amount equal to the loan will be withdrawn from the Subaccounts and/or
Interest Bearing Account and transferred to the Loan Account until the loan is
repaid. The Subaccounts and/or Interest Bearing Account subject to the
withdrawal may be specified by the Owner. If no specification is made, the loan
amount will be withdrawn in the same percentages as Monthly Deductions are
withdrawn from the Subaccounts and Interest Bearing Account. If the Owner makes
a specification but there are insufficient values in one or more of the
Subaccounts and the Interest Bearing Account for withdrawal as the Owner
specified, the loan amount will be withdrawn from all Subaccounts and the
Interest Bearing Account on a pro rata basis based on values in the Subaccounts
and Interest Bearing Account.
Policy Loan Interest. Interest is payable on Policy loans at 8% compounded
annually. This rate is subject to change by the Company.
Interest accrues on a daily basis from the loan date. Interest is due and
payable at the end of each Policy year. If interest is not paid when due, an
amount equal to the interest due less interest earned on the Loan Account will
be transferred from the Subaccounts and Interest Bearing Account to the Loan
Account. The amount of loan interest billed will increase the loan principal and
be charged the same rate of interest as the loan.
Policy values transferred to the Loan Account to secure Policy loans earn
interest at the rate of 6% compounded annually.
Repayment of Policy Loans. Any Indebtedness may be repaid while the Policy is In
Force before the death of the Insured or before surrender. As the loan is
repaid, the amount repaid will be transferred from the Loan Account to the
Subaccounts and Interest Bearing Account in the same manner as premiums are
allocated.
Transfer of Values
The Owner may transfer Accumulated Value from certain Subaccounts to other
Subaccounts and to the Interest Bearing Account. A transfer may be requested in
writing or by an authorized telephone transaction. A written request to transfer
amounts must be made on a form satisfactory to the Company and contain the
original signature of the Owner. The written request will take effect on the day
the written notice is received at the Home Office.
Transfers from a Subaccount to another Subaccount or to the Interest Bearing
Account may be made at any time. The amount transferred to a Subaccount must be
at least 5% of the amount transferred and must be in whole percentages.
An Owner may make transfers from the Interest Bearing Account into the
Subaccounts only during the 30 day period beginning on and immediately following
the Policy Anniversary.
The first four transfers in a Policy year are free. The Company charges $20 for
the fifth and each additional transfer in a Policy year.
An Owner's telephone or fax request to transfer amounts will be honored if the
Owner has a valid telephone and fax authorization on file at the Home Office. An
Owner may change the telephone and fax authorization or may request that it be
terminated. The change or termination is effective when received in the Home
Office.
The Company will exercise reasonable care to prevent unauthorized telephone
transactions. For example, the Company will:
o record calls requesting transfers;
o ask the caller questions in an attempt to determine if the caller is
the Owner;
o transfer funds only to other Subaccounts and to the Interest Bearing
Account;
o send a written confirmation of each transfer; and
If the Company uses reasonable procedures and believes the instructions to be
genuine, the Owner is at risk of loss if someone gives unauthorized or
fraudulent information to the Company.
A request to transfer amounts from one or more Subaccounts to other Subaccounts
and/or the Interest Bearing Account or from the Interest Bearing Account to one
or more Subaccounts which is received prior to 3:00 p.m. Central Standard Time
or the close of the New York Stock Exchange, whichever is earlier, will take
effect on the day the request is received. Transfer requests received after that
time will be processed the following Valuation Day. All transfers requested on
the same Valuation Day are considered one transfer for purposes of the transfer
fee.
An Owner who is unable to contact the Company by telephone must submit the
transfer request in writing. An Owner is more likely to experience difficulty in
contacting the Company by telephone during periods of unusual economic or market
changes.
The Company reserves the right to discontinue allowing telephone and fax
transfers at any time and for any reason. In the event the Company discontinues
this privilege, it will send written notice to all Owners who have currently
valid telephone and fax authorizations on file. Such discontinuance will become
effective on the fifth Valuation Day following mailing of the notice by the
Company.
The Company further reserves the right to restrict the ability to transfer
amounts among Subaccounts and/or the Interest Bearing Account if the Company
feels such action is necessary to prevent the Owner from being considered the
Owner of the assets of the Separate Account.
Change of Allocations
The owner may request a change in the allocation of future Net Premiums in
writing or by telephone. (See Allocation of Net Premiums.) The Owner may also
change the percentages of Monthly Deductions withdrawn from each Subaccount and
Interest Bearing Account in writing or by telephone. (See Charges And Deductions
- - Monthly Deduction.) Any allocation to, or withdrawal from, a Subaccount or
Interest Bearing Account must be at least 5% of Net Premiums and only whole
percentages are allowed.
Allocation changes quested by telephone or fax will be followed only if the
Owner has a telephone or fax authorization on file at the Home Office. (See
Other Policy Benefits and Provisions - Transfer of Values.)
A telephone or fax request to change allocation of premiums will be effective
for the first premium payment on or following the date the request for change is
received at the Home Office. A request to change the allocation of withdrawal of
Monthly Deductions will be effective on the first Monthly Day on or following
the date the request is received at the Home Office.
Change of Death Benefit Option
The Owner may change the death benefit option. The change will become effective
on the first Monthly Day after a written request satisfactory to the Company is
received at the Home Office. The Company reserves the right to require evidence
of insurability as a condition to change the death benefit option.
If the change is from death benefit option 1 to death benefit option 2, the
Specified Amount will be reduced by the amount of the Accumulated Value on the
effective date of the change. This change will not alter the amount of the
Policy's death benefit at the time of the change, but will affect how the death
benefit is determined from that point on. The death benefit will vary with
Accumulated Value from that point on, unless the death benefit derived from
application of the Death Benefit Ratio applies. (See Policy Benefits - Death
Proceeds.) No change from death benefit option 1 to death benefit option 2 will
be allowed if the resulting Specified Amount would be less than $40,000 ($8,000
if Issue Age is 65 and over). (For limits applicable to Policies sold to
employee benefit plans, see Unisex Policies.)
If the change is from death benefit option 2 to death benefit option 1, the
Specified Amount will be increased by the amount of the Accumulated Value on the
effective date of the change. This change does not alter the amount of the
Policy's Face Amount at the time of the change, but will affect the
determination of the Face Amount from that point on. The Face Amount as of the
date of the change becomes the new Specified Amount and will remain at that
level, unless the Face Amount derived from application of the Death Benefit
Ratio applies.
The insurance goals of the Owner determine the appropriate death benefit option.
Owners who prefer to have favorable investment results and greater than
scheduled premiums show up partly in the form of an increased death benefit
should choose death benefit option 2. Owners who are satisfied with the amount
of their insurance coverage and wish to have favorable investment results and
additional premiums reflected to the maximum extent in increasing Cash Values
should choose death benefit option 1.
A change of death benefit option will also change the Cost of Insurance for the
duration of the Policy. The Cost of Insurance on any Monthly Day is equal to the
Face Amount minus the Accumulated Value, multiplied by the Cost of Insurance
rate. The Cost of Insurance rate is the same under both options, but the
difference between Face Amount and Accumulated Value varies inversely with
Accumulated Value under option 1, but is constant under option 2, unless the
Face Amount derived from application of the Death Benefit Ratio applies.
Change of Specified Amount
The Specified Amount may be changed at any time after the first Policy year. If
more than one change is requested per policy year, the Company will charge $50
for each request after the first request. Changes must be requested in writing
and are subject to the conditions below:
Decreases. After the decrease, the Specified Amount must be at least $50,000
($10,000 for Issue Ages 65 and over). (For limits applicable to Policies sold to
employee benefit plans, see Unisex Policies.) The decrease will become effective
on the some Monthly Day or the following day the request is received at the Home
Office. For purposes of determining the Cost of Insurance, the decrease will be
applied to the initial Specified Amount and to increases in the Specified Amount
in reverse order in which they become effective. Such a decrease does not result
in reduced Deferred Charges.
Increases. A supplemental application must be filed, and you must provide the
evidence of insurability satisfactory to the Company. The effective date of the
increase will be shown on an endorsement to the Policy. The incontestable and
suicide provisions apply to the increase as if a new Policy had been issued for
the amount of the increase. These provisions are described on page 16.
When an increase in Specified Amount occurs, the Owner will be given a
right-to-examine and conversion/exchange right on the increase. In the event of
exercise of the exchange right with respect to an increase in Specified Amount
(See Other Policy Benefits and Provisions - Conversion/Exchange of Policy), the
amount of Cash Value transferable to the new Policy shall be limited to the
amount allocated to the increase in the Specified Amount.
The Net Cash Value of the original Policy, as well as any premiums paid at the
time of the increase, and any premiums paid after the increase will be allocated
between the original Specified Amount and the increased Specified Amount
according to the ratios of their respective guideline annual premiums (as
defined under the 1940 Act).
If the Specified Amount is increased after the Issue Date, additional Deferred
Charges will be incurred and released as though a new Policy had been issued for
the amount of the increase. In no instance, however, will the additional
deferred sales charge exceed the lesser of 30% of the guideline annual premium
for the increase or of the Cash Value and premiums paid which are allocable to
the increase. No additional Deferred Charges will accrue for increases in
Specified Amount due to the Automatic Increase Rider or a change from death
benefit option 2 to death benefit option 1.
If the Specified Amount is increased upon request of an Owner, a separate
monthly administrative fee will be assessed. This separate monthly
administrative expense charge will be calculated in the same manner as for the
initial Specified Amount. No additional monthly administrative fee will be
assessed due to an increase in Specified Amount as a result of the Automatic
Increase Rider.
The Company reserves the right to require the payment of additional premiums in
an amount equal to the minimum premium which would be charged based on Attained
Age and rating class for a newly-issued Policy with a Specified Amount equal to
the amount of increase, as a condition of allowing an increase where the Cash
Value allocated to the increase is insufficient to support the increase. (See
Charges And Deductions - Contingent Deferred Sales and Administrative Charges.)
The rating class assigned to an increase in Specified Amount may result in the
use of Cost of Insurance charges different than the Cost of Insurance rate
charged on the original Specified Amount.
Conversion/Exchange of Policy
The Policy may be exchanged any time within 24 months after the Issue Date for a
policy of permanent fixed benefit insurance, or for any other policy which the
Company may agree to issue on the life of the Insured. "Fixed benefit insurance"
means any permanent plan of insurance providing benefits which do not depend on
the investment experience of a Separate Account. No evidence of insurability is
required. All Indebtedness must be repaid before the change is made.
The exchange will be effective when the Company receives:
o written request for the Policy exchange or change signed by the Owner;
o surrender of the Policy; and
o payment of any required costs.
The new policy will have the same Issue Date, Issue Age, and risk classification
as the Policy. The new policy will have either the same death benefit or the
same net amount at risk as the Policy on the exchange date. The exchange will be
subject to an equitable adjustment in payments and Cash Values to reflect
differences, if any, between the Policy and the new policy. It will be subject
to normal underwriting rules and other conditions determined by the Company. If
there is an increase in Specified Amount and such increase is not the result of
a change in death benefit option or Automatic Increase Rider, the Owner will be
granted an exchange privilege with respect to the increase, subject to the
conditions and principles applicable to an exchange of the entire policy. The
Owner will also have the option to transfer without charge on the exchange date,
any portion of the Net Cash Value of the original Policy as premium to the new
Policy. (See Other Policy Benefits and Provisions - Change of Specified Amount.)
Transfer of Ownership
The Owner may transfer ownership of the Policy. The written consent of all
Irrevocable Beneficiaries must be obtained prior to such transfer. The notice of
transfer must be in writing and filed at the Home Office. The transfer will take
effect as of the date the notice was signed. The Company may require that the
Policy be sent in for endorsement to show the transfer of ownership.
The Company is not responsible for the validity or effect of any transfer of
ownership. The Company will not be responsible for any payment or other action
the Company has taken before having received written notice of the transfer.
Collateral Assignments
The Owner may assign the Policy as collateral security. The written consent of
all Irrevocable Beneficiaries must be obtained prior to such assignment. The
assignment must be in writing and filed at the Home Office. The assignment will
then take effect as of the date the notice was signed.
The Company is not responsible for the validity or effect of any collateral
assignment. The Company will not be responsible for any payment or other action
the Company has taken before having received the written collateral assignment.
A collateral assignment takes precedence over the interest of a Beneficiary. Any
Policy proceeds payable to an assignee will be paid in one sum. Any remaining
proceeds will be paid to the designated Beneficiary or Beneficiaries.
A collateral assignee is not an Owner. A collateral assignee is a person or
entity to who the Owner give some, but not all ownership rights under the
Policy. A collateral assignment is not a transfer of ownership.
Effect of Misstatement of Age or Sex
If the Insured's Age or sex has been misstated, the amount payable and other
benefits will be adjusted without regard to the two-year contestability period.
The death benefits payable will be adjusted based on what the Cost of Insurance
charge for the most recent Monthly Day would have purchased based on the current
Age and sex.
Suicide
Suicide of the Insured, while sane or insane, within two years of the Issue
Date, is not covered by the Policy. If the Insured does commit suicide, the
amount payable will be calculated as described in the Policy's incontestability
section describing rescission proceeds.
Dividends
While the Policy is In Force, it will share in the divisible surplus of the
Company. The Policy's share is determined annually by the Company. It is payable
annually on the Policy Anniversary. The Owner may select to have dividends paid
into the Subaccounts and the Interest Bearing Account as Net Premiums or to have
dividends paid in cash. If no option is selected, the dividends will be paid
into Subaccounts and/or Interest Bearing Account as Net Premiums. The Company
currently does not expect to pay dividends during the first 10 Policy Years. For
each of Policy years 11-20, the Company projects annual dividends equal to 0.61%
of the Accumulated Value at the end of the policy year, plus $39 per Policy. For
each Policy year 21 and after the Company project annual dividend equal to 1.01%
of the Accumulated Value at the end of the policy year plus $39 per Policy. For
Issue Ages 0-19, the projected dividends are the same as those for Ages 20 and
above, except the per Policy dividend is $3 in years 11 and above, instead of
$39. These dividends are not guaranteed. They are reflected in Illustrations 1,
3, 5 and 7 of Appendix A.
Suspension of Payments
For amounts allocated to the Separate Account, the Company may suspend or
postpone the right to transfer among Subaccounts, make a surrender or partial
surrender, and take a Policy loan when:
1) the New York Stock Exchange is closed other than for customary
weekend and holiday closings;
2) during periods when trading on the Exchange is restricted as
determined by the SEC;
3) during any emergency as determined by the SEC which makes it
impractical for the Separate Account to dispose of its securities or
value its assets; or,
4) during any other period permitted or required by order of the SEC for
the protection of investors.
To the extent values are allocated to the Interest Bearing Account, the payment
of full or partial surrender proceeds or loan proceeds may be deferred for up to
six (6) months from the date of the surrender or loan request. Death proceeds
may be deferred for up to 60 days from the date the Company receives proof of
death.
Accelerated Benefit Option
The Company will advance up to 50% of a Policy's eligible death benefit, subject
to a $250,000 maximum per Insured, if the Company receives satisfactory proof
that the Insured is terminally ill and if the Owner elects to receive an
accelerated payment of the death benefit. The Accelerated Benefit Option
Endorsement (Endorsement) refers to terminal illness as a non-correctable
medical condition in which the Insured's life expectancy is no more than twelve
months. Accumulated Value is excluded from the calculation of the eligible death
benefit. If an Owner elects to receive an accelerated benefit, the Company will
assess an administrative charge (of no more than $300) and will deduct interest
on the amount being accelerated. As a result, the amount payable to the
Beneficiary at death is reduced by an amount greater than the amount received by
the Owner as an accelerated benefit. The accelerated benefit is available only
in states which have approved the Endorsement and may vary from state to state.
The tax consequences of accelerated benefits is uncertain and a tax advisor
should be consulted. (See Tax Treatment of Policy Proceeds.)
Reports To Owners. The Company will confirm any of the following within seven
days:
o the receipt of any Net Premium (except premiums received before Record Date
or by preauthorized check); any change of allocation of Net Premiums or
Monthly Deduction;
o any transfer between Subaccounts; any loan, interest repayment, or loan
repayment; any partial surrender; any return of premium necessary to comply
with applicable maximum premium limitations; and,
o any restoration to Cash Value following exercise of the right-to-examine
privilege for an increase in Specified Amount. Upon request, an Owner shall
be entitled to a receipt of any premium payment including those made by
preauthorized check.
The Company will also mail to the Owner, at the last known address of record, a
report containing such information as may be required by any applicable law or
regulation, and a statement for the Policy year showing all transactions
previously confirmed, all Monthly Deductions and transfers into and out of the
Deferred Charges Account, and any credit to the Separate Account of interest on
amounts held in the Loan Account or Deferred Charges Account.
The Company will send to the Owner a confirmation within seven days of any of
the following:
o exercise of the right-to-examine privilege,
o an exchange of the Policy or increase in Specified Amount,
o full surrender of the Policy, and
o payment of Death Proceeds.
Voting Rights. The Company will vote Fund shares held in the Separate Account at
regular and special shareholder meetings of the underlying funds in accordance
with instructions received from persons having voting interests in the
corresponding Subaccounts. The Company will vote shares for which it has not
received timely instructions and shares attributable to Policies sold to
employee benefit plans not registered pursuant to an exemption from the
registration provisions of the Securities Act of 1933, in the same proportion as
the Company votes shares for which it has received instructions. If, however,
the 1940 Act or any regulation thereunder should be amended, or if the present
interpretation thereof should change, or the Company otherwise determines that
it is allowed to vote the shares in its own right, it may elect to do so.
The Owner shall have the voting interest under a Policy. The number of votes the
Owner has a right to instruct will be calculated separately for each Subaccount.
The Owner shall have the right to instruct one vote for each $1 of Accumulated
Value in the Subaccount with fractional votes allocated for amounts less than
$1. The number of votes available to an Owner will coincide with the date
established by the fund for determining shareholders eligible to vote at the
relevant meeting of the Fund's shareholders. Voting instructions will be
solicited by written communication before such meeting in accordance with
procedures established by the funds. Each Owner having a voting interest in a
Subaccount will receive proxy materials and reports relating to any meeting of
shareholders of the fund in which that Subaccount invests.
The Company may, when required by state insurance regulatory authorities, vote
shares of a fund without regard to voting instructions from Owners, if the
instructions would require that the shares be voted so as to cause a change in
the sub-classification of a fund, or investment objectives of a fund, or to
approve or disapprove an investment advisory contract for a fund. In addition,
the Company itself may, under certain circumstances, vote shares of a fund
without regard to voting instructions from Owners in favor of changes initiated
by Owners in the investment policy, or the investment adviser or the principal
underwriter of a Fund. For example, the Company may vote against a change if the
Company in good faith determines that the proposed change is contrary to state
or federal law or the Company determines that the change would not be consistent
with the investment objectives of a fund and would result in the purchase of
securities for the Separate Account which vary from the general quality and
nature of investments and investment techniques used by other Separate Accounts
of the Company.
Riders
A rider attached to a Policy adds additional insurance and benefits. The rider
explains the coverage it offers. A rider is available only in states which have
approved the rider. A rider may vary from state to state. Some riders are not
available to Policies sold to employee benefit plans. The cost for riders is
deducted as a part of the Monthly Deduction. Riders are subject to normal
underwriting requirements. The Company reserves the right to stop offering the
riders mentioned below and to offer additional riders.
Children's Insurance. The rider provides level term insurance to Age 23 of the
child or Age 65 of the parent, if sooner, on the children of the Owner. The
death benefit will be payable to the Beneficiary stated in the rider upon the
death of any Insured child. If the Insured parent dies prior to the termination
of this rider, the coverage on each child becomes paid-up term insurance to Age
23. This rider may be converted without evidence of insurability on each Insured
child's 23rd birthday or at Age 65 of the owner, if sooner.
Guaranteed Insurability. The rider provides that additional insurance may be
purchased on the life of the Insured on specific future dates at standard rates
without evidence of insurability. It is issued only to standard risks. It may be
issued until the Policy Anniversary following the Insured's 37th birthday.
Accidental Death Benefit. The rider provides for the payment of an additional
death benefit on the life of the Insured should death occur due to accidental
bodily injury occurring before Age 70. The premium for the Accidental Death
Benefit is payable to Age 70.
Automatic Increase. The rider provides for automatic increases in the Policy's
Specified Amount on each Policy Anniversary without evidence of insurability.
This rider may be issued until the earlier of the 15th Policy Anniversary or the
Policy Anniversary following the Insured's 55th birthday.
Other Insured. This rider provides level term insurance. The "other Insured"
could be the Insured or could be another person within the immediate family of
the Insured. The death benefit expires on the "other Insured's" 95th birthday or
upon termination of the Policy, whichever comes first. Evidence of insurability
is required for issuance of the rider or to increase the amount of the death
benefit. The rider may be issued until the Policy Anniversary following the
Insured's 65th birthday.
Term Insurance. This rider is available only on Policies with a face value of at
least $250,000. It is available only on the primary Insured. The rider is
convertible to Age 75. The death benefit expires on the Insured's 95th birthday
or upon termination of the Policy. This rider is not available to UltraVers-ALL
LIFESM Policies.
Disability Waiver of Monthly Deductions. This rider provides that, during the
Insured's total disability, the Company will waive Monthly Deductions for
administrative and life insurance costs. The rider may be issued until the
Policy Anniversary following the Insured's 55th birthday. It may be renewed
until the Policy Anniversary following the Insured's 65th birthday.
Waiver of Premium and Monthly Deduction Disability Benefit. Like the rider just
described, this rider provides that, during the Insured's total disability, the
Company will waive the Monthly Deduction for administrative and life insurance
costs. In addition, this rider provides that the Company will contribute
additional premium. The amount of additional premium the Company will contribute
will be shown on the specifications page for the rider. The maximum amount the
Company will contribute is $12,000 on an annual basis. The rider may be issued
until the Policy Anniversary following the Insured's 55th birthday. It may be
renewed until the Policy Anniversary following the Insured's 65th birthday at
which time the rider terminates. This rider is not available to UltraVers-ALL
LIFESM Policies.
Executive Benefits Plan Endorsement. This endorsement is available on policies
issued in conjunction with certain types of deferred compensation and/or
employee benefits plans. The executive benefits plan endorsement waives the
deferred charges on the policy to which it is attached subject to the following
conditions:
1. the policy is surrendered and the proceeds are used to fund a new
policy provided through CUNA Mutual Life Insurance Company or an
affiliate;
2. the contract (policy) is owned by a business or trust;
3. the new contract (policy) is owned by the same entity;
4. the annuitant (insured) under the contract (policy) is a selected
manager or a highly compensated employee (as those terms are defined
by Title 1 of the Employee Retirement Income Security Act, as
amended);
5. the annuitant (insured) under the new contract is also a selected
manager or highly compensated employee;
6. we receive an application for the new contract (and have evidence of
insurability satisfactory to us).
There is no charge for this benefit. However, if you exercise this benefit
during the first two contract (policy) years, we reserve the right to charge a
fee to offset expenses incurred. This fee will not exceed $150.
The Executive Benefits Plan Endorsement may not be available in all states.
THE COMPANY
CUNA Mutual Life Insurance Company is a mutual life insurance company organized
under the laws of Iowa in 1879 and incorporated on June 21, 1882. The Home
Office is located at 2000 Heritage Way, Waverly, Iowa 50677-9202. The Company,
organized as a fraternal benefit society with the name "Mutual Aid Society of
the Evangelical Lutheran Synod of Iowa and Other States," changed its name to
"Lutheran Mutual Aid Society" in 1911, and reorganized as a mutual life
insurance company called "Lutheran Mutual Life Insurance Company" on January 1,
1938. On December 28, 1984, the Company changed its name to "Century Life of
America." On January 1, 1997, the Company changed its name to "CUNA Mutual Life
Insurance Company."
On July 1, 1990, the Company entered into a permanent affiliation with CUNA
Mutual Insurance Society ("CUNA Mutual"), 5910 Mineral Point Road, Madison WI
53705-4456. The terms of an Agreement of Permanent Affiliation provide for
extensive financial sharing between the Company and CUNA Mutual of individual
life insurance business through reinsurance arrangements, the joint development
of business plans and distribution systems for individual insurance and other
financial service products within the credit union movement, and the sharing of
certain resources and facilities. At the current time, all of the directors of
the Company are also directors of CUNA Mutual and many of the senior executive
officers of the Company hold similar positions with CUNA Mutual. The
affiliation, however, is not a merger or consolidation. Both companies remain
separate corporate entities and their respective Owners retain their voting
rights. CUNA Mutual and its subsidiaries and affiliates, including the Company
are referred to herein as "CUNA Mutual Group."
As of December 31, 1998, the Company had more than $4 billion in assets and $11
billion of life insurance In Force. Effective June 1998 and through the date of
this Prospectus, A.M. Best rated the Company A (Excellent). Effective March 1998
and through the date of this Prospectus, Duff & Phelps rated the Company AA.
These are the most recent ratings available as of the date of this Prospectus.
Periodically, the rating agencies review our ratings. To obtain our current
ratings, contact the Company at the address and telephone number shown on the
first page of this Prospectus.
The Company and CUNA Mutual are members of the Insurance Marketplace Standards
Association (IMSA). IMSA is a newly formed independent industry organization
dedicated to the practice of high ethical standards in the sale of
individually-sold life insurance and annuity products. IMSA members have adopted
policies and procedures that demonstrate a commitment to honesty, fairness and
integrity in all customer contacts involving sales and service of individual
life insurance and annuity products.
The Company and CUNA Mutual Investment Corporation each own a one-half interest
in CIMCO Inc. (the investment adviser to the Ultra Series Fund). CUNA Mutual
owns CUNA Mutual Investment Corporation. CUNA Mutual Investment Corporation owns
CUNA Brokerage Services, Inc.
THE SEPARATE ACCOUNT
The Company established the Separate Account on August 16, 1983. Its IRS
Employer Identification number is 42-0388260. The Separate Account will receive
and invest Net Premium payments made under the Policy. In addition, the Separate
Account may receive and invest purchase payments for other variable life
insurance policies issued now or in the future by the Company.
Although the assets in the Separate Account are the property of the Company, the
assets in the Separate Account attributable to the Policies are not chargeable
with liabilities arising out of any other business which the Company may
conduct. The assets of the Separate Account are available to cover the general
liabilities of the Company only to the extent that the Separate Account's assets
exceed its liabilities arising under the Policies and any other policies
supported by the Separate Account. The Company has the right to transfer to the
general account any assets of the Separate Account which are in excess of
reserves and other contract liabilities. The Company has placed seed money in
the Treasury 2000 Separate Account and reserves the right to withdraw it.
Periodically, the Separate Account makes payments to the Company for mortality
and expense charges.
The Separate Account is divided into Subaccounts. In the future, additional
Subaccounts may be added. Each Subaccount invests exclusively in shares of a
single corresponding Fund. The income, gains and losses, realized or unrealized,
from the assets allocated to each Subaccount are credited to or charged against
that Subaccount without regard to income, gains or losses from any other
Subaccount.
The Separate Account has been registered with the Securities and Exchange
Commission ("SEC") as a unit investment trust under the Investment Company Act
of 1940 ("1940 Act") and meets the definition of a Separate Account under the
federal securities laws. Registration with the SEC does not involve supervision
of the management, investment practices, or policies of the Separate Account or
of the Company by the SEC. The Separate Account is also subject to the laws of
the State of Iowa which regulate the operations of insurance companies domiciled
in Iowa. The Separate Account's fiscal year ends on December 31.
The Company does not guarantee the investment performance of the Separate
Account. Accumulated Value of Policies will vary daily with the value of the
assets under the Separate Account and, depending upon the death benefit option
chosen. The Death Proceeds may also vary with the value of the assets under the
Separate Account. To the extent that the Death Proceeds payable upon the death
of the Insured exceed the Accumulated Value of the Policy, such amounts are
general obligations of the Company and payable out of the general account of the
Company.
The Company may, from time to time, offer other policies which may be similar to
those offered herein. The Company will act as custodian of the assets of the
Separate Account.
FEDERAL INCOME TAX CONSIDERATIONS
Introduction
The following summary provides a general description of the federal income tax
considerations associated with the Policy and does not purport to be complete or
to cover all tax situations. This discussion is not intended as tax advice.
Counsel or other competent tax advisors should be consulted for more complete
information. This discussion is based upon the Company's understanding of the
present federal income tax laws. No representation is made as to the likelihood
of continuation of the present federal income tax laws or as to how they may be
interpreted by the Internal Revenue Service.
Tax Status of the Policy
In order to qualify as a life insurance contract for federal income tax purposes
and to receive the tax treatment normally accorded life insurance contracts
under federal tax law, a Policy must satisfy certain requirements which are set
forth in the Internal Revenue Code. Guidance as to how these requirements should
be applied is limited. Nevertheless, the Company believes that Policies issued
on a standard premium class basis should satisfy the applicable requirements.
There is less guidance, however, with respect to Policies issued on a
substandard basis, and it is not clear whether such Policies will in all cases
satisfy the applicable requirements, particularly if the Owner pays the full
amount of premiums permitted under the Policy. If it is subsequently determined
that a Policy does not satisfy the applicable requirements, we may take
appropriate steps to bring the Policy into compliance with such requirements and
we reserve the right to restrict Policy transactions in order to do so.
In certain circumstances, owners of variable life insurance contracts have been
considered for federal income tax purposes to be the owners of the assets of the
separate account supporting their contracts due to their ability to exercise
investment control over those assets. Where this is the case, the contract
owners have been currently taxed on income and gains attributable to the
separate account assets. There is little guidance in this area, and some
features of the Policies, such as the flexibility of an Owner to allocate
premium payments and Accumulated Value and the narrow investment objective of
certain Funds (e.g., the Treasury 2000 Fund), have not been explicitly addressed
in published rulings. While the Company believes that the Policies do not give
Owners investment control over Separate Account assets, the Company reserves the
right to modify the Policies as necessary to prevent an Owner from being treated
as the owner of the Separate Account assets supporting the Policy.
In addition, the Code requires that the investments of the Separate Accounts be
"adequately diversified" in order for the Policies to be treated as life
insurance contracts for federal income tax purposes. It is intended that the
Separate Accounts, through the Funds, will satisfy these diversification
requirements.
The following discussion assumes that the Policy will qualify as a life
insurance contract for federal income tax purposes.
Tax Treatment of Policy Benefits
In General. The Company believes that the death benefit under a Policy should be
excludible from the gross income of the beneficiary.
Federal, state and local transfer, estate, inheritance, and other tax
consequences of ownership or receipt of Policy proceeds depend on the
circumstances of each Owner or beneficiary. A tax advisor should be consulted on
these consequences.
Generally, the Owner will not be deemed to be in constructive receipt of the
Policy's Accumulated Value until there is a distribution. When distributions
from a Policy occur, or when loans are taken out from or secured by a Policy,
the tax consequences depend on whether the Policy is classified as a "Modified
Endowment Contract."
Modified Endowment Contracts. Under the Internal Revenue Code, certain life
insurance contracts are classified as "Modified Endowment Contracts," with less
favorable tax treatment than other life insurance contracts. Due to the
flexibility of the Policies as to premiums and benefits, the individual
circumstances of each Policy will determine whether it is classified as a
Modified Endowment Contract. The rules are too complex to be summarized here,
but generally depend on the amount of premiums paid during the first seven
Policy years or seven years following a material change to the Policy. Certain
changes in a Policy after it is issued could also cause it to be classified as a
Modified Endowment Contract. A current or prospective Owner should consult with
a competent advisor to determine whether a Policy transaction will cause the
Policy to be classified as a Modified Endowment Contract.
Distributions Other Than Death Benefits from Modified Endowment Contracts.
Policies classified as Modified Endowment Contracts are subject to the following
tax rules:
All distributions other than death benefits from a Modified Endowment Contract,
including distributions upon surrender and withdrawals, are treated first as
distributions of gain taxable as ordinary income and as tax-free recovery of the
Owner's investment in the Policy only after all gain has been distributed.
Loans taken from or secured by a Policy classified as a Modified Endowment
Contract are treated as distributions and taxed in same manner as surrenders and
withdrawals.
A 10 percent additional income tax is imposed on the amount subject to tax
except where the distribution or loan is made when the Owner has attained age 59
1/2 or is disabled, or where the distribution is part of a series of
substantially equal periodic payments for the life (or life expectancy) of the
Owner or the joint lives (or joint life expectancies) of the Owner and the
Owner's beneficiary or designated beneficiary.
Distributions Other Than Death Benefits from Policies that are not Modified
Endowment Contracts. Distributions other than death benefits from a Policy that
is not classified as a Modified Endowment Contract are generally treated first
as a recovery of the Owner's investment in the Policy and only after the
recovery of all investment in the Policy as taxable income. However, certain
distributions which must be made in order to enable the Policy to continue to
qualify as a life insurance contract for federal income tax purposes if Policy
benefits are reduced during the first 15 Policy years may be treated in whole or
in part as ordinary income subject to tax.
Loans from or secured by a Policy that is not a Modified Endowment Contract are
generally not treated as distributions. However, the tax consequences associated
with Policy loans after the later of the 10th Policy Anniversary or Attained Age
65 is less clear and a tax advisor should be consulted about such loans.
Finally, neither distributions from nor loans from or secured by a Policy that
is not a Modified Endowment Contract are subject to the 10 percent additional
income tax.
Investment in the Policy. The Owner's investment in the Policy is generally the
aggregate premium payments. When a distribution is taken from the Policy, the
Owner's investment in the Policy is reduced by the amount of the distribution
that is tax-free.
Policy Loans. In general, interest on a Policy loan will not be deductible.
Before taking out a Policy loan, an Owner should consult a tax advisor as to the
tax consequences.
Multiple Policies. All Modified Endowment Contracts that are issued by the
Company (or its affiliates) to the same Owner during any calendar year are
treated as one Modified Endowment Contract for purposes of determining the
amount includible in the Owner's income when a taxable distribution occurs.
Accelerated Death Benefit Rider. The federal income tax consequences associated
with the Accelerated Benefit Option Endorsement are uncertain. Owners should
consult a qualified tax advisor about the consequences of requesting payment
under this Endorsement. (See page 22for more information regarding the
Endorsement.)
Special Rules for Pension and Profit-Sharing Plans
If a Policy is purchased by a pension or profit-sharing plan, or similar
deferred compensation arrangement, the federal, state and estate tax
consequences could differ. A competent tax advisor should be consulted in
connection with such a purchase.
The amounts of life insurance that may be purchased on behalf of a participant
in a pension or profit-sharing plan are limited. The current cost of insurance
for the net amount at risk is treated as a "current fringe benefit" and must be
included annually in the plan participant's gross income. The Company reports
this cost (generally referred to as the "P.S. 58" cost) to the participant
annually. If the plan participant dies while covered by the plan and the Policy
proceeds are paid to the participant's beneficiary, then the excess of the death
benefit over the Policy's Accumulated Value is not taxable. However, the cash
value will generally be taxable to the extent it exceeds the participant's cost
basis in the Policy. Policies owned under these types of plans may be subject to
restrictions under the Employee Retirement Income Security Act of 1974
("ERISA"). You should consult a qualified advisor regarding ERISA.
Department of Labor ("DOL") regulations impose requirements for participant
loans under retirement plans covered by ERISA. Plan loans must also satisfy tax
requirements to be treated as nontaxable. Plan loan requirements and provisions
may differ from Policy loan provisions. Failure of plan loans to comply with the
requirements and provisions of the DOL regulations and of tax law may result in
adverse tax consequences and/or adverse consequences under ERISA. Plan
fiduciaries and participants should consult a qualified advisor before
requesting a loan under a Policy held in connection with a retirement plan.
Business Uses of the Policy
Businesses can use the Policy in various arrangements, including nonqualified
deferred compensation or salary continuance plans, split dollar insurance plans,
executive bonus plans, tax exempt and nonexempt welfare benefit plans, retiree
medical benefit plans and others. The tax consequences of such plans may vary
depending on the particular facts and circumstances. If an Owner is purchasing
the Policy for any arrangement the value of which depends in part on its tax
consequences, he or she should consult a qualified tax advisor. In recent years,
moreover, Congress has adopted new rules relating to life insurance owned by
businesses. Any business contemplating the purchase of a new Policy or a change
in an existing Policy should consult a tax advisor.
Possible Tax Law Changes
Although the likelihood of legislative changes is uncertain, there is always the
possibility that the tax treatment of the Policy could change by legislation or
otherwise. Consult a tax advisor with respect to legislative developments and
their effect on the Policy.
The Company's Taxes
Under current federal income tax law, the Company is not taxed on the Separate
Account's operations. Thus, currently the Company does not deduct charges from
the Separate Account for its federal income taxes. The Company reserves the
right to charge the Separate Account for any future federal income taxes that it
may incur.
Under current laws in several states, the Company may incur state and local
taxes (in addition to premium taxes). These taxes are not now significant and we
are not currently charging for them. If they increase, the Company may deduct
charges for such taxes.
CUNA MUTUAL LIFE INSURANCE COMPANY DIRECTORS AND EXECUTIVE OFFICERS
<TABLE>
<CAPTION>
Name Occupation
<S> <C> <C>
Directors
James C. Barbre 1994-Present ACT Technologies, Inc.
President/Chief Operating Officer
1985-1993 Self-employed consultant in carpet
Manufacturing and distribution in Dalton, GA
Robert W. Bream 1991-Present United Airlines Employees Credit Union
President/Chief Executive Officer
Wilfred F. Broxterman 1997-Present Broxterman Group
President/Chief Executive Officer
1989-1997 Hughes Aircraft Employees Federal Credit Union
President/Chief Executive Officer
James L. Bryan 1974-Present Texans Credit Union
President/Chief Executive Officer
Loretta M. Burd 1987-Present Centra Credit Union
President/Chief Executive Officer
Ralph B. Canterbury 1965-Present US Airways Federal Credit Union
President
Joseph N. Cugini 1959-Present Westerly Community Credit Union
President/Chief Executive Officer
Rudolf J. Hanley 1982-Present Orange County Teachers Federal Credit Union
President/Chief Executive Officer
Jerald R. Hinrichs 1990-Present Hinrichs & Associates
Insurance Marketing Consultants
Owner/President
Michael B. Kitchen 1995-Present CUNA Mutual Life Insurance Company*
President and Chief Executive Officer
1992-1995 The CUMIS Group Limited
President/Chief Executive Officer
Robert T. Lynch 1996-Present Retired
1970-1996 Detroit Teachers Credit Union
Treasurer/General Manager
Brian L. McDonnell 1977-Present Navy Federal Credit Union
President/Chief Executive Officer
C. Alan Peppers 1992-Present Denver Public Schools Credit Union
President/Chief Executive Officer
Omer K. Reed 1997-Present Retired
1959-1997 Self-employed dentist
Richard C. Robertson 1959-Present Arizona State Savings & Credit Union
President/General Manager
Rosemarie M. Shultz 1997-Present Retired
1976-1997 North Coast Credit Union
President/Chief Executive Officer
Neil A. Springer 1994-Present Springer & Associates, L.L.C.
Managing Director
1992-1994 Slayton International, Inc.
Senior Vice President
Farouk D.G. Wang 1987-Present University of Hawaii at Manoa
Director of Buildings and Grounds Management
Larry T. Wilson 1974-Present Coastal Federal Credit Union
President/Chief Executive Officer
Executive Officers
Wayne A. Benson 1997 - Present CUNA Mutual Life Insurance Company*
Chief Officer - Sales
Michael S. Daubs 1973-Present CUNA Mutual Life Insurance Company*
Chief Officer - Investments
CIMCO Inc.
President
John A. Gibson 1988-Present CUNA Mutual Life Insurance Company*
Chief Officer - Marketing
James M. Greaney 1998-Present CUNA Mutual Life Insurance Company*
Chief Officer - Corporate Services
Richard J. Keintz 1979-Present CUNA Mutual Life Insurance Company*
Chief Officer - Finance and Information Services
Michael B. Kitchen 1995-Present CUNA Mutual Life Insurance Company*
President and Chief Executive Officer
1992-1995 The CUMIS Group Limited
President and Chief Executive Officer
Reid A. Koenig 1999-Present CUNA Mutual Life Insurance Company
Chief Officer - Operating
1994-Present Vice President - Members Services
Daniel E. Meylink, Sr. 1983-Present CUNA Mutual Life Insurance Company*
Chief Officer - Member Services
Kevin G. Shea 1976-Present CUNA Mutual Life Insurance Company*
Chief Officer - Lending Services
John M. Waggoner 1977-Present CUNA Mutual Life Insurance Company*
Chief Officer - Legal
<FN>
* The Company entered into a permanent affiliation with the CUNA Mutual on
July 1, 1990. Those persons marked with an "*" hold identical titles with
CUNA Mutual. The most recent position has been given for those persons
who have held more than one position with the Company or CUNA Mutual
Insurance Society during the last five year period. Each person has
business addresses at both 2000 Heritage Way, Waverly, Iowa 50677-9202,
and 5910 Mineral Point Road, Madison, Wisconsin 53705-4456.
</FN>
</TABLE>
ADDITIONAL INFORMATION
STATE REGULATION
The Company is subject to the laws of Iowa governing insurance companies and to
regulation by the Iowa Insurance Department. An annual statement in a prescribed
form is filed with the Insurance Department each year covering the operation of
the Company for the preceding year and its financial condition as of the end of
such year. Regulation by the Insurance Department includes periodic examination
to determine the Company's liabilities and reserves so that the Insurance
Department may certify the items are correct. The Company's books and accounts
are subject to review by the Insurance Department at all times and a full
examination of its operations is conducted periodically by the National
Association of Insurance Commissioners. Such regulation does not, however,
involve any supervision of management or investment practices or policies. In
addition, the Company is subject to regulation under the insurance laws of other
jurisdictions in which it may operate.
LEGAL PROCEEDINGS
The Company and its subsidiaries, like other life insurance companies, are
involved in lawsuits, including class action lawsuits. In some class action and
other lawsuits involving insurers, substantial damages have been sought and/or
material settlement payments have been made. Although the outcome of any
litigation cannot be predicted with certainty, the Company believes that at the
present time there are not pending or threatened lawsuits that are reasonably
likely to have a material adverse impact on the Separate Account or the Company.
INDEPENDENT AUDITORS
The financial statements included herein and elsewhere in the Registration
Statement have been included in reliance upon the reports of KPMG Peat Marwick
LLP, Des Moines, Iowa, independent auditors, and upon the authority of said firm
as experts in accounting and auditing.
ACTUARIAL MATTERS
Actuarial matters included in this prospectus have been examined by Scott Allen,
FSA, MAAA Product Manager Variable Products, CUNA Mutual Life Insurance Company,
Waverly, Iowa, as stated in the opinion filed as an exhibit to the Registration
Statement.
REGISTRATION STATEMENT
A Registration Statement under the Securities Act of 1933 relating to this
offering has been filed with the SEC. Certain portions of the Registration
Statement and amendments have been omitted from this prospectus pursuant to the
rules and regulations of the Securities and Exchange Commission. Statements
contained in this prospectus concerning the Policy and other legal documents are
summaries. The complete documents and omitted information may be obtained from
the SEC's principal office in Washington, D.C.
PREPARING FOR YEAR 2000
Like all financial service providers, the Company and its affiliates utilize
systems that may be affected by Year 2000 transition issues, and they rely on
service providers, including administrators and investment managers, that also
may be affected. The Company and its affiliates have developed, and are in the
process of implementing, a Year 2000 readiness plan, and are confirming that its
service providers are also so engaged. The resources that are being devoted to
this effort are substantial. It is difficult to predict with precision whether
the amount of resources ultimately devoted, or the outcome of these efforts will
have a negative impact on the Company or its affiliates. However, as of the date
of this prospectus, it is not anticipated that Owners will experience negative
effects on their investment, or on the services provided in connection
therewith, as a result of Year 2000 readiness implementation. As of the date of
this prospectus, the Company and its affiliates believe that all of their
critical systems are Year 2000 ready, but there can be no assurance that the
Company was successful, or that interaction with other service providers will
not impair the Company's or its affiliates' services at that time. We will be
testing the remainder of our systems through out 1999, and will have continuity
plans in place designed to minimize the impact of any unforeseen failures.
DISTRIBUTION OF POLICIES
Questions regarding the Policy should be directed to CUNA Brokerage Services,
Inc., Office of Supervisory Jurisdiction, 2000 Heritage Way, Waverly, Iowa,
50677-9202, (800) 798-5500, (319) 352-4090. Its IRS employer identification
number is 39-1438257. CUNA Brokerage Services, Inc. is wholly-owned by CUNA
Mutual Investment Corporation which in turn is wholly-owned by CUNA Mutual. CUNA
Brokerage Services, Inc., 5910 Mineral Point Road, Madison, Wisconsin,
53705-4456, the principal underwriter for the Policy is a broker/dealer
registered under the Securities Exchange Act of 1934 and a member of the
National Association of Securities Dealers. CUNA Mutual Life Insurance Company,
the issuer of the Policy, entered into a permanent affiliation with CUNA Mutual
on July 1, 1990. The Policies will be sold through registered representatives
who will be paid first-year and renewal commissions for their services.
The Company may pay sales commissions to broker-dealers up to an amount equal to
8.5% of the total premiums paid under the Policy. These broker-dealers are
expected to compensate sales representatives in varying amounts from these
commissions. The Company also may pay other distribution expenses such as
agents' insurance and pension benefits, agency expense allowances, and overhead
attributable to distribution. In addition, the Company may from time to time pay
or allow additional promotional incentives in the form of cash or other
compensation. These distribution expenses do not result in any additional
charges under the Contracts that are not described under CHARGES AND DEDUCTIONS.
UNISEX POLICIES
The U.S. Supreme Court ruled in the 1983 Norris decision that employer-sponsored
benefit plans (employee benefit plans) are a "privilege of employment" and as
such, males and females must receive equal benefits. Policies sold to employee
benefit plans which must comply with this decision will be governed by all the
provisions described in this prospectus, and by the following provisions.
The Cost of Insurance rates will be determined as previously set forth except
that sex shall not be considered. These unisex monthly Cost of Insurance rates
will not exceed the rates shown in Table I - Guaranteed Maximum Insurance Rates
which is contained in the Policy.
Deferred Charges will vary by Issue Age, Specified Amount, and in the case of
deferred sales charge, smoker status. The Deferred Charges for unisex Policies
(including Policies sold to Owners other than employee benefit plans) are shown
in the table in Appendix C.
The minimum Specified Amount is $25,000 ($10,000 for Issue Ages 65 and over).
Requested reductions in Specified Amount cannot go below these amounts.
Specified Amounts reduced as a result of a partial surrender or a change in
death benefit option cannot go below $20,000 ($8,000 for Issue Ages 65 and
over). The Company may waive this minimum from time to time. In deciding whether
to waive this minimum, the Company will consider the required and minimum
contributions under a qualified plan, the size of the group involved, and the
difference between the proposed Specified Amount and the required minimum, as
well as other factors.
Because unisex mortality tables are used for this Policy, misstatement of sex
cannot result in a material misrepresentation by the Owner. Accordingly, neither
the Policy nor the Death Proceeds will be modified as a result of misstatement
of sex.
Illustrations of Policy values and accumulations based on unisex Cost of
Insurance rates for 35 and 50 year old nonsmokers may be obtained without cost
from the address shown on the first page of this prospectus.
The Accelerated Benefit Option feature is not available to employee benefit
plans. Unisex Policies sold to Owners other than employee benefit plans will be
governed by the terms of this prospectus (other than the provisions in this
section) except that Deferred Charges will not vary by sex, unisex Cost of
Insurance rates will be used, and no correction to or modification of the Policy
or Death Proceeds will be made as a result of misstatement of sex. It is
anticipated that unisex Policies will be sold to Owners other than employee
benefit plans only if required by law or regulation. The Company does not
currently anticipate offering the Policy for sale in states requiring the use of
unisex Cost of Insurance rates.
FINANCIAL STATEMENTS
The financial statements for the Company are immediately following the financial
statements of the Separate Account. The financial statements of the Company
should be considered only as bearing upon the ability of the Company to meet its
obligations under the Policy and should not be considered as bearing on the
investment performance of the Separate Account.
<PAGE>
CUNA MUTUAL LIFE VARIABLE ACCOUNT
Financial Statements to be included in b filing.
CUNA MUTUAL LIFE INSURANCE COMPANY
Financial Statements and Supplementary Information to be included in b filing
<PAGE>
APPENDIX A
ILLUSTRATIONS OF POLICY VALUES AND DEATH BENEFITS
The following tables have been prepared to help show how values under the Policy
can change with investment performance. Separate tables based on unisex
mortality rates are available from the address shown on the first page of this
prospectus. At your request, the Company will provide an illustration based upon
your Age, planned premium payments and other factors.
The illustrations are based on the following five factors. (The upper right hand
corner of each illustration identifies those factors.)
1. Age at issue - Some show Age 35. Others show Age 50.
2. Planned annual premium - The premium illustrated is $1,200 or $2,500.
3. Cost of Insurance - Some show the mortality rates currently being charged.
Others show the guaranteed rate (the maximum rate the Policy allows the
Company to charge).
4. Projected Dividends - Illustrations based on current mortality rates include
projected dividends. Illustrations based on guaranteed mortality rates do
not.
5. Choice of death benefit option - Some show option 1 and others show option
2.
Factors That Do Not Vary
All the illustrations make the following assumptions:
o The Insured is a non smoker.
o The Specified Amount of coverage is $100,000.
o Planned premiums are paid on the first day of the Policy year for 30 years.
o No loans are taken.
o No partial surrenders are made.
o All Net Premium is allocated to the Separate Account and invested equally in
each Fund.
o No changes are made to the Specified Amount.
o No transfer fees are incurred.
o The Policy has no riders.
o The charge for state Premium Tax is 2%.
o No federal income tax is paid.
Effect of Hypothetical Investment Returns
To show how investment return affects Policy values, the tables illustrate three
different hypothetical rates of return. The tables show gross annual rates of
return of 0%, 6% and 12%, which produce approximate net annual rates of return
of -1.64%, 4.36% and 10.36%, respectively. Net returns are lower than gross
returns due to charges made by the Separate Account and by the underlying funds.
Charges are expressed as a percentage of average daily net assets.
The table below shows for each Subaccount the total of the mortality and expense
fee and the underlying series level fees.
Mortality & Expense Fund Fees* Total
Capital Appreciation Stock .90 .81 1.71
Growth and Income Stock .90 .61 1.51
Balanced .90 .71 1.61
Bond .90 .56 1.46
Money Market .90 .46 1.36
Treasury 2000 .90 .45 1.35
International Stock .90 1.05 1.95
MFS World Governments .90 1.00 1.90
MFS Emerging Growth .90 0.87 1.77
Average .90 .72 1.62
*These are current charges. Each Fund has the right to change its charge in
the future. These charges are more fully described in the Funds'
Prospectuses and in the Statements of Additional Information available
without charge from the address shown on the first page of this prospectus.
How Varying a Factor Affects Hypothetical Investment Returns
Changing any factor in the illustrations would change many numbers throughout
the table. For example, illustrated values would be different if the Insured
were a different Age, a different risk classification, or if unisex mortality
rates were used. Policy values would change if premiums were paid at different
times or in different amounts or if investment rates of return fluctuated up and
down. Policy values based on current mortality charges would be lower if the
Company did not pay the dividends it has projected but not guaranteed.
(Dividends are expected to be $39 beginning in Policy year 11, plus .61% of
average Accumulated Value during Policy years 11-20 and 1.01% beginning in
Policy year 21.) Policy values would be lower if more expenses were paid.
Expenses vary by each underlying fund portfolio and each has the right to change
its charge in the future. The illustrations do not show any charges for federal
income taxes. If in the future taxes were due, gross annual rates of return
would have to exceed 0%, 6% and 12% by an amount sufficient to cover the charge
for taxes in order to produce the Policy values shown.
<PAGE>
ILLUSTRATION OF POLICY VALUES
MEMBERSAE Variable Universal Life
ISSUED BY CUNA MUTUAL LIFE INSURANCE COMPANY
NUMBER 1
<TABLE>
<CAPTION>
Male Non Smoker Age at Issue: 35
Specified Amount: $100,000 Annual Premium: $1,200
Planned Premium Payable Annually for: 30 years Based on: Current Mortality Charges
Policy Loans and Withdrawals: None Projected Dividends: Included
Hypothetical Gross Rates of Return: 0%, 6% and 12% Death Benefit: Option 1*
------- ------------- ---------------------------------- ----------------------------------- =====================================
Premiums
End Accum at 5% 0.00% GROSS 6.00% GROSS 12.00% GROSS
of Interest (-1.64% NET) (4.36% NET) (10.36% NET)
Year Per Year
---------------------------------- ----------------------------------- =====================================
Death Accum Net Death Accum Net Death Accum Value Net
Benefit Value Cash Value Benefit Value Cash Value Benefit Cash Value
------- ------------- ------------ --------- ----------- ------------ --------- ------------ ----------- ------------ ============
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 1,260 100,000 871 100 100,000 932 161 100,000 994 223
2 2,583 100,000 1,721 988 100,000 1,898 1,166 100,000 2,083 1,351
3 3,972 100,000 2,546 1,852 100,000 2,896 2,202 100,000 3,275 2,581
4 5,431 100,000 3,347 2,692 100,000 3,926 3,271 100,000 4,580 3,925
5 6,962 100,000 4,123 3,545 100,000 4,990 4,412 100,000 6,010 5,431
6 8,570 100,000 4,873 4,372 100,000 6,086 5,585 100,000 7,574 7,073
7 10,259 100,000 5,595 5,209 100,000 7,216 6,831 100,000 9,287 8,902
8 12,032 100,000 6,289 6,019 100,000 8,380 8,111 100,000 11,165 10,895
9 13,893 100,000 6,954 6,800 100,000 9,579 9,425 100,000 13,223 13,069
10 15,848 100,000 7,590 7,590 100,000 10,813 10,813 100,000 15,481 15,481
15 27,189 100,000 11,734 11,734 100,000 19,308 19,308 100,000 32,806 32,806
20 41,663 100,000 15,234 15,234 100,000 29,777 29,777 100,000 61,902 61,902
25 60,136 100,000 18,190 18,190 100,000 43,473 43,473 151,177 112,818 112,818
30 83,713 100,000 19,803 19,803 100,000 60,847 60,847 242,899 199,098 199,098
======= ============= ============ ========= =========== ============ ========= ============ =========== ============ ============
IMPORTANT NOTICE: The hypothetical investment rates of return shown are
illustrative only and should not be deemed a representation of past or future
investment rates of return. Actual rates of return may be more or less than
those shown and will depend on a number of factors, including the Owner's choice
of investment allocations and the investment results of each series of each
underlying fund. The death benefits and Policy values would be different from
those shown if the actual rates of return averaged 0%, 6%, and 12% over a period
of years but also fluctuated above or below those averages for individual Policy
years. No representations can be made that these hypothetical rates of return
can be achieved for any one year or sustained over any period of time.
<FN>
*Under Option 1 the death benefit is the greater of (1) the Specified Amount or
(2) the Accumulated Value on the date of death multiplied by the Death Benefit
Ratio described in the section of the prospectus titled POLICY BENEFITS, Death
Proceeds - Death Benefit Options 1 and 2.
</FN>
</TABLE>
<PAGE>
ILLUSTRATION OF POLICY VALUES
MEMBERSAE Variable Universal Life
ISSUED BY CUNA MUTUAL LIFE INSURANCE COMPANY
NUMBER 2
<TABLE>
<CAPTION>
Male Non Smoker Age at Issue: 35
Specified Amount: $100,000 Annual Premium: $1,200
Planned Premium Payable Annually for: 30 years Based on: Guaranteed Mortality Charges
Policy Loans and Withdrawals: None Projected Dividends: Not Included
Hypothetical Gross Rates of Return: 0, 6 and 12% Death Benefit: Option 1*
------- ------------- ---------------------------------- ----------------------------------- =====================================
End Premiums
of Accum at 5% 0.00% GROSS 6.00% GROSS 12.00% GROSS
Year Interest (-1.64% NET) (4.36% NET) (10.36% NET)
Per Year
---------------------------------- ----------------------------------- =====================================
Death Accum Net Death Accum Net Death Accum Net
Benefit Value Cash Value Benefit Value Cash Value Benefit Value Cash Value
------- ------------- ------------ --------- ----------- ------------ --------- ------------ ------------ ---------- =============
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 1,260 100,000 871 100 100,000 932 161 100,000 994 223
2 2,583 100,000 1,721 988 100,000 1,898 1,166 100,000 2,083 1,351
3 3,972 100,000 2,546 1,852 100,000 2,896 2,202 100,000 3,275 2,581
4 5,431 100,000 3,347 2,692 100,000 3,926 3,271 100,000 4,580 3,925
5 6,962 100,000 4,123 3,545 100,000 4,990 4,412 100,000 6,010 5,431
6 8,570 100,000 4,873 4,372 100,000 6,086 5,585 100,000 7,574 7,073
7 10,259 100,000 5,595 5,209 100,000 7,216 6,831 100,000 9,287 8,902
8 12,032 100,000 6,289 6,019 100,000 8,380 8,111 100,000 11,165 10,895
9 13,893 100,000 6,954 6,800 100,000 9,579 9,425 100,000 13,223 13,069
10 15,848 100,000 7,590 7,590 100,000 10,813 10,813 100,000 15,481 15,481
15 27,189 100,000 10,480 10,480 100,000 17,763 17,763 100,000 30,857 30,857
20 41,663 100,000 12,274 12,274 100,000 25,607 25,607 100,000 55,757 55,757
25 60,136 100,000 12,353 12,353 100,000 34,129 34,129 129,494 96,638 96,638
30 83,713 100,000 9,637 9,637 100,000 43,010 43,010 198,019 162,311 162,311
======= ============= ============ ========= =========== ============ ========= ============ ============ ========== =============
IMPORTANT NOTICE: The hypothetical investment rates of return shown are
illustrative only and should not be deemed a representation of past or future
investment rates of return. Actual rates of return may be more or less than
those shown and will depend on a number of factors, including the Owner's choice
of investment allocations and the investment results of each series of each
underlying fund. The death benefits and Policy values would be different from
those shown if the actual rates of return averaged 0%, 6%, and 12% over a period
of years but also fluctuated above or below those averages for individual Policy
years. No representations can be made that these hypothetical rates of return
can be achieved for any one year or sustained over any period of time.
<FN>
*Under Option 1 the death benefit is the greater of (1) the Specified Amount or
(2) the Accumulated Value on the date of death multiplied by the Death Benefit
Ratio described in the section of the prospectus titled POLICY BENEFITS, Death
Proceeds - Death Benefit Options 1 and 2.
</FN>
</TABLE>
<PAGE>
ILLUSTRATION OF POLICY VALUES
MEMBERSAE Variable Universal Life
ISSUED BY CUNA MUTUAL LIFE INSURANCE COMPANY
NUMBER 3
<TABLE>
<CAPTION>
Male Non Smoker Age at Issue: 35
Specified Amount: $100,000 Annual Premium: $1,200
Planned Premium Payable Annually for: 30 years Based on: Current Mortality Charges
Policy Loans and Withdrawals: None Projected Dividends: Included
Hypothetical Gross Rates of Return: 0%, 6% and 12% Death Benefit: Option 2*
------- ------------- ---------------------------------- ----------------------------------- ====================================
Premiums
End Accum at 5% 0.00% GROSS 6.00% GROSS 12.00% GROSS
of Interest (-1.64% NET) (4.36% NET) (10.36% NET)
Year Per Year
---------------------------------- ----------------------------------- ====================================
Death Accum Net Death Accum Net Death Accum Net
Benefit Value Cash Value Benefit Value Cash Value Benefit Value Cash Value
------- ------------- ------------ --------- ----------- ------------ --------- ------------ ------------ ---------- ============
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 1,260 100,869 869 98 100,930 930 159 100,992 992 221
2 2,583 101,715 1,715 983 101,892 1,892 1,160 102,077 2,077 1,344
3 3,972 102,536 2,536 1,842 102,884 2,884 2,190 103,262 3,262 2,568
4 5,431 103,330 3,330 2,674 103,905 3,905 3,250 104,556 4,556 3,900
5 6,962 104,097 4,097 3,519 104,957 4,957 4,379 105,969 5,969 5,390
6 8,570 104,835 4,835 4,333 106,037 6,037 5,536 107,510 7,510 7,009
7 10,259 105,542 5,542 5,157 107,146 7,146 6,760 109,192 9,192 8,807
8 12,032 106,220 6,220 5,950 108,283 8,283 8,013 111,029 11,029 10,759
9 13,893 106,865 6,865 6,711 109,449 9,449 9,295 113,034 13,034 12,879
10 15,848 107,477 7,477 7,477 110,642 10,642 10,642 115,222 15,222 15,222
15 27,189 111,508 11,508 11,508 118,886 18,886 18,886 132,013 32,013 32,013
20 41,663 114,779 14,779 14,779 128,752 28,752 28,752 159,533 59,533 59,533
25 60,136 117,287 17,287 17,287 141,014 41,014 41,014 206,497 106,497 106,497
30 83,713 118,080 18,080 18,080 155,065 55,065 55,065 284,813 184,813 184,813
======= ============= ============ ========= =========== ============ ========= ============ ============ ========== ============
IMPORTANT NOTICE: The hypothetical investment rates of return shown are
illustrative only and should not be deemed a representation of past or future
investment rates of return. Actual rates of return may be more or less than
those shown and will depend on a number of factors, including the Owner's choice
of investment allocations and the investment results of each series of each
underlying fund. The death benefits and Policy values would be different from
those shown if the actual rates of return averaged 0%, 6%, and 12% over a period
of years but also fluctuated above or below those averages for individual Policy
years. No representations can be made that these hypothetical rates of return
can be achieved for any one year or sustained over any period of time.
<FN>
*Under Option 2 the death benefit is the greater of (1) the Specified Amount
plus the Accumulated Value on date of death, or (2) the Accumulated Value on the
date of death multiplied by the Death Benefit Ratio described in the section of
the prospectus titled POLICY BENEFITS, Death Proceeds - Death Benefit Options 1
and 2.
</FN>
</TABLE>
<PAGE>
ILLUSTRATION OF POLICY VALUES
MEMBERSAE Variable Universal Life
ISSUED BY CUNA MUTUAL LIFE INSURANCE COMPANY
NUMBER 4
<TABLE>
<CAPTION>
Male Non Smoker Age at Issue: 35
Specified Amount: $100,000 Annual Premium: $1,200
Planned Premium Payable Annually for: 30 years Based on: Guaranteed Mortality Charges
Policy Loans and Withdrawals: None Projected Dividends: Not Included
Hypothetical Gross Rates of Return: 0%, 6% and 12% Death Benefit: Option 2*
------- ------------- ---------------------------------- ----------------------------------- ====================================
Premiums
End Accum at 5% 0.00% GROSS 6.00% GROSS 12.00% GROSS
of Interest (-1.64% NET) (4.36% NET) (10.36 NET)
Year Per Year
---------------------------------- ----------------------------------- ====================================
Death Accum Net Death Accum Net Death Accum Net
Benefit Value Cash Value Benefit Value Cash Value Benefit Value Cash Value
------- ------------- ------------ --------- ----------- ------------ --------- ------------ ------------ ---------- ============
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 1,260 100,869 869 98 100,930 930 159 100,992 992 221
2 2,583 101,715 1,715 983 101,892 1,892 1,160 102,077 2,077 1,344
3 3,972 102,536 2,536 1,842 102,884 2,884 2,190 103,262 3,262 2,568
4 5,431 103,330 3,330 2,674 103,905 3,905 3,250 104,556 4,556 3,900
5 6,962 104,097 4,097 3,519 104,957 4,957 4,379 105,969 5,969 5,390
6 8,570 104,835 4,835 4,333 106,037 6,037 5,536 107,510 7,510 7,009
7 10,259 105,542 5,542 5,157 107,146 7,146 6,760 109,192 9,192 8,807
8 12,032 106,220 6,220 5,950 108,283 8,283 8,013 111,029 11,029 10,759
9 13,893 106,865 6,865 6,711 109,449 9,449 9,295 113,034 13,034 12,879
10 15,848 107,477 7,477 7,477 110,642 10,642 10,642 115,222 15,222 15,222
15 27,189 110,184 10,184 10,184 117,216 17,216 17,216 129,839 29,839 29,839
20 41,663 111,638 11,638 11,638 124,161 24,161 24,161 152,400 52,400 52,400
25 60,136 111,134 11,134 11,134 130,638 30,638 30,638 186,898 86,898 86,898
30 83,713 107,578 7,578 7,578 135,105 35,105 35,105 239,297 139,297 139,297
======= ============= ============ ========= =========== ============ ========= ============ ============ ========== ============
IMPORTANT NOTICE: The hypothetical investment rates of return shown are
illustrative only and should not be deemed a representation of past or future
investment rates of return. Actual rates of return may be more or less than
those shown and will depend on a number of factors, including the Owner's choice
of investment allocations and the investment results of each series of each
underlying fund. The death benefits and Policy values would be different from
those shown if the actual rates of return averaged 0%, 6%, and 12% over a period
of years but also fluctuated above or below those averages for individual Policy
years. No representations can be made that these hypothetical rates of return
can be achieved for any one year or sustained over any period of time.
<FN>
*Under Option 2 the death benefit is the greater of (1) the Specified Amount
plus the Accumulated Value on date of death, or (2) the Accumulated Value on the
date of death multiplied by the Death Benefit Ratio described in the section of
the prospectus titled POLICY BENEFITS, Death Proceeds - Death Benefit Options 1
and 2.
</FN>
</TABLE>
<PAGE>
ILLUSTRATION OF POLICY VALUES
MEMBERSAE Variable Universal Life
ISSUED BY CUNA MUTUAL LIFE INSURANCE COMPANY
NUMBER 5
<TABLE>
<CAPTION>
Male Non Smoker Age at Issue: 50
Specified Amount: $100,000 Annual Premium: $2,500
Planned Premium Payable Annually for: 30 years Based on: Current Mortality Charges
Policy Loans and Withdrawals: None Projected Dividends: Included
Hypothetical Gross Rates of Return: 0%, 6% and 12% Death Benefit: Option 1*
------- ------------- ---------------------------------- ------------------------------------ ====================================
Premiums
End Accum at 5% 0.00% GROSS 6.00% GROSS 12.00% GROSS
of Interest (-1.64% NET) (4.36% NET) (10.36% NET)
Year Per Year
------------------------------------ ====================================
------------ --------- -----------
Death Accum Net Death Accum Net Death Accum Net
Benefit Value Cash Value Benefit Value Cash Value Benefit Value Cash Value
------- ------------- ------------ --------- ----------- ------------ ----------- ----------- ----------- ---------- =============
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 2,625 100,000 1,796 205 100,000 1,924 333 100,000 2,051 460
2 5,381 100,000 3,538 2,026 100,000 3,906 2,395 100,000 4,290 2,779
3 8,275 100,000 5,223 3,791 100,000 5,948 4,516 100,000 6,735 5,303
4 11,314 100,000 6,851 5,499 100,000 8,051 6,699 100,000 9,409 8,057
5 14,505 100,000 8,426 7,233 100,000 10,223 9,030 100,000 12,341 11,148
6 17,855 100,000 9,949 8,915 100,000 12,468 11,434 100,000 15,561 14,527
7 21,373 100,000 11,399 10,604 100,000 14,770 13,974 100,000 19,083 18,288
8 25,066 100,000 12,780 12,223 100,000 17,133 16,577 100,000 22,946 22,389
9 28,945 100,000 14,085 13,767 100,000 19,559 19,241 100,000 27,186 26,868
10 33,017 100,000 15,315 15,315 100,000 22,051 22,051 100,000 31,850 31,850
15 56,644 100,000 22,906 22,906 100,000 38,790 38,790 100,000 67,450 67,450
20 86,798 100,000 28,359 28,359 100,000 59,427 59,427 148,897 128,360 128,360
25 125,284 100,000 31,201 31,201 100,000 87,916 87,916 250,281 233,908 233,908
30 174,402 100,000 28,707 28,707 133,383 127,031 127,031 434,258 413,579 413,579
======= ============= ============ ========= =========== ============ =========== =========== =========== ========== =============
IMPORTANT NOTICE: The hypothetical investment rates of return shown are
illustrative only and should not be deemed a representation of past or future
investment rates of return. Actual rates of return may be more or less than
those shown and will depend on a number of factors, including the Owner's choice
of investment allocations and the investment results of each series of each
underlying fund. The death benefits and Policy values would be different from
those shown if the actual rates of return averaged 0%, 6%, and 12% over a period
of years but also fluctuated above or below those averages for individual Policy
years. No representations can be made that these hypothetical rates of return
can be achieved for any one year or sustained over any period of time.
<FN>
*Under Option 1 the death benefit is the greater of (1) the Specified Amount or
(2) the Accumulated Value on the date of death multiplied by the Death Benefit
Ratio described in the section of the prospectus titled POLICY BENEFITS, Death
Proceeds - Death Benefit Options 1 and 2.
</FN>
</TABLE>
<PAGE>
ILLUSTRATION OF POLICY VALUES
MEMBERSAE Variable Universal Life
ISSUED BY CUNA MUTUAL LIFE INSURANCE COMPANY
NUMBER 6
<TABLE>
<CAPTION>
Male Non Smoker Age at Issue: 50
Specified Amount: $100,000 Annual Premium: $2,500
Planned Premium Payable Annually for: 30 years Based on: Guaranteed Mortality Charges
Policy Loans and Withdrawals: None Projected Dividends: Not Included
Hypothetical Gross Rates of Return: 0%, 6% and 12% Death Benefit: Option 1*
------- ------------- ---------------------------------- ----------------------------------- =====================================
Premiums
End Accum at 5% 0.00% GROSS 6.00% GROSS 12.00% GROSS
of Interest (-1.64% NET) (4.36% NET) (10.36% NET)
Year Per Year
---------------------------------- ----------------------------------- =====================================
Death Accum Net Death Accum Net Death Accum Net
Benefit Value Cash Value Benefit Value Cash Value Benefit Value Surrender
------- ------------- ------------ --------- ----------- ------------ --------- ------------ ------------ ---------- =============
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 2,625 100,000 1,796 205 100,000 1,924 333 100,000 2,051 460
2 5,381 100,000 3,527 2,016 100,000 3,895 2,384 100,000 4,279 2,768
3 8,275 100,000 5,189 3,757 100,000 5,912 4,480 100,000 6,698 5,266
4 11,314 100,000 6,776 5,424 100,000 7,972 6,619 100,000 9,325 7,973
5 14,505 100,000 8,285 7,092 100,000 10,072 8,879 100,000 12,179 10,986
6 17,855 100,000 9,712 8,678 100,000 12,211 11,177 100,000 15,283 14,249
7 21,373 100,000 11,053 10,258 100,000 14,388 13,593 100,000 18,664 17,869
8 25,066 100,000 12,308 11,751 100,000 16,605 16,048 100,000 22,355 21,799
9 28,945 100,000 13,469 13,151 100,000 18,858 18,540 100,000 26,392 26,073
10 33,017 100,000 14,530 14,530 100,000 21,146 21,146 100,000 30,812 30,812
15 56,644 100,000 18,203 18,203 100,000 33,219 33,219 100,000 60,917 60,917
20 86,798 100,000 17,476 17,476 100,000 45,709 45,709 129,991 112,062 112,062
25 125,284 100,000 8,784 8,784 100,000 58,443 58,443 208,657 195,007 195,007
30 174,402 ** ** ** 100,000 71,907 71,907 345,695 329,233 329,233
======= ============= ============ ========= =========== ============ ========= ============ ============ ========== =============
IMPORTANT NOTICE: The hypothetical investment rates of return shown are
illustrative only and should not be deemed a representation of past or future
investment rates of return. Actual rates of return may be more or less than
those shown and will depend on a number of factors, including the Owner's choice
of investment allocations and the investment results of each series of each
underlying fund. The death benefits and Policy values would be different from
those shown if the actual rates of return averaged 0%, 6%, and 12% over a period
of years but also fluctuated above or below those averages for individual Policy
years. No representations can be made that these hypothetical rates of return
can be achieved for any one year or sustained over any period of time.
<FN>
*Under Option 1 the death benefit is the greater of (1) the Specified Amount or
(2) the Accumulated Value on the date of death multiplied by the Death Benefit
Ratio described in the section of the prospectus titled POLICY BENEFITS, Death
Proceeds - Death Benefit Options 1 and 2.
** Policy terminated prior to year 30.
</FN>
</TABLE>
<PAGE>
ILLUSTRATION OF POLICY VALUES
MEMBERSAE Variable Universal Life
ISSUED BY CUNA MUTUAL LIFE INSURANCE COMPANY
NUMBER 7
<TABLE>
<CAPTION>
Male Non Smoker Age at Issue: 50
Specified Amount: $100,000 Annual Premium: $2,500
Planned Premium Payable Annually for: 30 years Based on: Current Mortality Charges
Policy Loans and Withdrawals: None Projected Dividends: Included
Hypothetical Gross Rates of Return: 0%, 6% and 12% Death Benefit: Option 2*
------- ------------- ---------------------------------- ----------------------------------- =====================================
Premiums
End Accum at 5% 0.00% GROSS 6.00% GROSS 12.00% GROSS
of Interest (-1.64% NET) (4.36% NET) (10.36% NET)
Year Per Year
---------------------------------- ----------------------------------- =====================================
Death Accum Net Death Accum Net Death Accum Net
Benefit Value Cash Value Benefit Value Cash Value Benefit Value Cash Value
------- ------------- ------------ --------- ----------- ------------ --------- ------------ ------------ ---------- =============
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 2,625 101,785 1,785 194 101,912 1,912 321 102,039 2,039 448
2 5,381 103,506 3,506 1,994 103,871 3,871 2,359 104,251 4,251 2,740
3 8,275 105,159 5,159 3,727 105,874 5,874 4,442 106,650 6,650 5,219
4 11,314 106,742 6,742 5,390 107,921 7,921 6,569 109,254 9,254 7,902
5 14,505 108,260 8,260 7,066 110,016 10,016 8,822 112,084 12,084 10,891
6 17,855 109,711 9,711 8,677 112,160 12,160 11,126 115,164 15,164 14,130
7 21,373 111,074 11,074 10,278 114,330 14,330 13,534 118,493 18,493 17,697
8 25,066 112,348 12,348 11,791 116,526 16,526 15,969 122,096 22,096 21,540
9 28,945 113,526 13,526 13,208 118,741 18,741 18,422 125,994 25,994 25,676
10 33,017 114,607 14,607 14,607 120,971 20,971 20,971 130,212 30,212 30,212
15 56,644 121,350 21,350 21,350 135,869 35,869 35,869 161,947 61,947 61,947
20 86,798 124,961 24,961 24,961 151,639 51,639 51,639 211,646 111,646 111,646
25 125,284 124,155 24,155 24,155 167,603 67,603 67,603 292,520 192,520 192,520
30 174,402 115,670 15,670 15,670 179,408 79,408 79,408 420,749 320,749 320,749
======= ============= ============ ========= =========== ============ ========= ============ ============ ========== =============
IMPORTANT NOTICE: The hypothetical investment rates of return shown are
illustrative only and should not be deemed a representation of past or future
investment rates of return. Actual rates of return may be more or less than
those shown and will depend on a number of factors, including the Owner's choice
of investment allocations and the investment results of each series of each
underlying fund. The death benefits and Policy values would be different from
those shown if the actual rates of return averaged 0%, 6%, and 12% over a period
of years but also fluctuated above or below those averages for individual Policy
years. No representations can be made that these hypothetical rates of return
can be achieved for any one year or sustained over any period of time.
<FN>
*Under Option 2 the death benefit is the greater of (1) the Specified Amount
plus the Accumulated Value on date of death, or (2) the Accumulated Value on the
date of death multiplied by the Death Benefit Ratio described in the section of
the prospectus titled POLICY BENEFITS, Death Proceeds - Death Benefit Options 1
and 2.
</FN>
</TABLE>
<PAGE>
ILLUSTRATION OF POLICY VALUES
MEMBERSAE Variable Universal Life
ISSUED BY CUNA MUTUAL LIFE INSURANCE COMPANY
NUMBER 8
<TABLE>
<CAPTION>
Male Non Smoker Age at Issue: 50
Specified Amount: $100,000 Annual Premium: $2,500
Planned Premium Payable Annually for: 30 years Based on: Guaranteed Mortality Charges
Policy Loans and Withdrawals: None Projected Dividends: Not Included
Hypothetical Gross Rates of Return: 0%, 6% and 12% Death Benefit: Option 2*
------- ------------- ---------------------------------- ----------------------------------- =====================================
Premiums
End Accum at 5% 0.00% GROSS 6.00% GROSS 12.00% GROSS
of Interest (-1.64% NET) (4.36% NET) (10.36% NET)
Year Per Year
---------------------------------- ----------------------------------- =====================================
Death Accum Net Death Accum Net Death Accum Net
Benefit Value Cash Value Benefit Value Cash Value Benefit Value Cash Value
------- ------------- ------------ --------- ----------- ------------ --------- ------------ ------------- ---------- ============
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 2,625 101,785 1,785 194 101,912 1,912 321 102,039 2,039 448
2 5,381 103,495 3,495 1,984 103,859 3,859 2,348 104,240 4,240 2,728
3 8,275 105,123 5,123 3,691 105,836 5,836 4,404 106,611 6,611 5,179
4 11,314 106,663 6,663 5,311 107,836 7,836 6,484 109,163 9,163 7,811
5 14,505 108,109 8,109 6,916 109,852 9,852 8,659 111,907 11,907 10,713
6 17,855 109,455 9,455 8,421 111,878 11,878 10,843 114,853 14,853 13,819
7 21,373 110,696 10,696 9,901 113,905 13,905 13,110 118,016 18,016 17,221
8 25,066 111,828 11,828 11,272 115,930 15,930 15,373 121,413 21,413 20,856
9 28,945 112,844 12,844 12,526 117,942 17,942 17,624 125,057 25,057 24,739
10 33,017 113,733 13,733 13,733 119,928 19,928 19,928 128,962 28,962 28,962
15 56,644 116,034 16,034 16,034 129,101 29,101 29,101 153,099 53,099 53,099
20 86,798 112,901 12,901 12,901 134,405 34,405 34,405 185,654 85,654 85,654
25 125,284 101,279 1,279 1,279 130,942 30,942 30,942 227,445 127,445 127,445
30 174,402 ** ** ** 110,136 10,136 10,136 276,810 176,810 176,810
======= ============= ============ ========= =========== ============ ========= ============ ============= ========== ============
IMPORTANT NOTICE: The hypothetical investment rates of return shown are
illustrative only and should not be deemed a representation of past or future
investment rates of return. Actual rates of return may be more or less than
those shown and will depend on a number of factors, including the Owner's choice
of investment allocations and the investment results of each series of each
underlying fund. The death benefits and Policy values would be different from
those shown if the actual rates of return averaged 0%, 6%, and 12% over a period
of years but also fluctuated above or below those averages for individual Policy
years. No representations can be made that these hypothetical rates of return
can be achieved for any one year or sustained over any period of time.
<FN>
*Under Option 2 the death benefit is the greater of (1) the Specified Amount
plus the Accumulated Value on date of death, or (2) the Accumulated Value on the
date of death multiplied by the Death Benefit Ratio described in the section of
the prospectus titled POLICY BENEFITS, Death Proceeds - Death Benefit Options 1
and 2.
** Policy terminated prior to year 30.
</FN>
</TABLE>
<PAGE>
APPENDIX B
FIRST YEAR CONTINGENT DEFERRED CHARGES
PER $1,000 OF SPECIFIED AMOUNT
<TABLE>
<CAPTION>
Issue MALE FEMALE
Age COMPOSITE DAC + DSC = TDC COMPOSITE DAC + DSC = TDC
- --------- -------------------------------------------------- -----------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
0 .75 .20 .95 .75 .12 .87
1 .80 .27 1.07 .80 .19 .99
2 .85 .34 1.19 .85 .26 1.11
3 .90 .40 1.30 .90 .32 1.22
4 .95 .47 1.42 .95 .39 1.34
5 1.00 .54 1.54 1.00 .46 1.46
6 1.06 .64 1.70 1.06 .53 1.59
7 1.12 .76 1.88 1.12 .60 1.72
8 1.18 .88 2.06 1.18 .67 1.85
9 1.25 .99 2.24 1.25 .73 1.98
10 1.31 1.08 2.39 1.31 .80 2.11
11 1.37 1.14 2.51 1.37 .86 2.23
12 1.43 1.19 2.62 1.43 .92 2.35
13 1.49 1.22 2.71 1.49 .97 2.46
14 1.55 1.25 2.80 1.55 1.02 2.57
15 1.60 1.28 2.88 1.60 1.07 2.67
16 1.64 1.30 2.94 1.64 1.10 2.74
17 1.67 1.32 2.99 1.67 1.13 2.80
18 1.69 1.34 3.03 1.69 1.16 2.85
19 1.73 1.37 3.10 1.73 1.19 2.92
Issue MALE FEMALE
Age STANDARD NONSMOKER STANDARD NONSMOKER
DAC + DSC = TDC DAC + DSC = TDC DAC + DSC = TDC DAC + DSC = TDC
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
20 1.80 1.44 3.24 1.80 1.41 3.21 1.80 1.25 3.05 1.80 1.23 3.03
21 1.89 1.60 3.49 1.89 1.48 3.37 1.89 1.39 3.28 1.89 1.29 3.18
22 1.99 1.75 3.74 1.99 1.57 3.56 1.99 1.52 3.51 1.99 1.38 3.37
23 2.12 1.88 4.00 2.12 1.66 3.78 2.12 1.63 3.75 2.12 1.45 3.57
24 2.26 1.99 4.25 2.26 1.77 4.03 2.26 1.72 3.98 2.26 1.53 3.79
25 2.42 2.08 4.50 2.42 1.87 4.29 2.42 1.79 4.21 2.42 1.60 4.02
26 2.61 2.18 4.79 2.61 1.96 4.57 2.61 1.90 4.51 2.61 1.65 4.26
27 2.83 2.28 5.11 2.83 2.05 4.88 2.83 2.02 4.85 2.83 1.68 4.51
28 3.07 2.38 5.45 3.07 2.14 5.21 3.07 2.15 5.22 3.07 1.70 4.77
29 3.31 2.51 5.82 3.31 2.24 5.55 3.31 2.28 5.59 3.31 1.74 5.05
30 3.55 2.63 6.18 3.55 2.34 5.89 3.55 2.40 5.95 3.55 1.78 5.33
31 3.78 2.76 6.54 3.78 2.45 6.23 3.78 2.53 6.31 3.78 1.85 5.63
32 4.02 2.89 6.91 4.02 2.57 6.59 4.02 2.66 6.68 4.02 1.91 5.93
33 4.25 3.05 7.30 4.25 2.70 6.95 4.25 2.79 7.04 4.25 2.00 6.25
34 4.49 3.21 7.70 4.49 2.83 7.32 4.49 2.93 7.42 4.49 2.08 6.57
35 4.74 3.39 8.13 4.74 2.97 7.71 4.74 3.05 7.79 4.74 2.16 6.90
36 4.99 3.59 8.58 4.99 3.12 8.11 4.99 3.18 8.17 4.99 2.23 7.22
37 5.25 3.80 9.05 5.25 3.28 8.53 5.25 3.30 8.55 5.25 2.30 7.55
38 5.51 4.03 9.54 5.51 3.44 8.95 5.51 3.43 8.94 5.51 2.37 7.88
39 5.78 4.29 10.07 5.78 3.62 9.40 5.78 3.54 9.32 5.78 2.44 8.22
- --------- -------- ------- --------- ------- ------- ------- ------ -------- ------- ------- ------- -------
</TABLE>
<PAGE>
APPENDIX B
FIRST YEAR CONTINGENT DEFERRED CHARGES
PER $1,000 OF SPECIFIED AMOUNT
<TABLE>
<CAPTION>
ISSUE MALE FEMALE
AGE STANDARD NONSMOKER STANDARD NONSMOKER
DAC + DSC = TDC DAC + DSC = TDC DAC + DSC = TDC DAC + DSC = TDC
- ---------- ------------------------ ----------------------- ------------------------ -----------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
40 6.06 4.56 10.62 6.06 3.81 9.87 6.06 3.64 9.70 6.06 2.52 8.58
41 6.35 4.86 11.21 6.35 4.01 10.36 6.35 3.71 10.06 6.35 2.61 8.96
42 6.64 5.18 11.82 6.64 4.22 10.86 6.64 3.77 10.41 6.64 2.71 9.35
43 6.95 5.51 12.46 6.95 4.44 11.39 6.95 3.81 10.76 6.95 2.81 9.76
44 7.27 5.87 13.14 7.27 4.67 11.94 7.27 3.85 11.12 7.27 2.91 10.18
45 7.60 6.26 13.86 7.60 4.93 12.53 7.60 3.92 11.52 7.60 3.04 10.64
46 7.94 6.67 14.61 7.94 5.20 13.14 7.94 3.98 11.92 7.94 3.16 11.10
47 8.27 7.12 15.39 8.27 5.49 13.76 8.27 4.03 12.30 8.27 3.29 11.56
48 8.63 7.58 16.21 8.63 5.78 14.41 8.63 4.10 12.73 8.63 3.43 12.06
49 9.02 8.06 17.08 9.02 6.10 15.12 9.02 4.23 13.25 9.02 3.60 12.62
50 9.46 8.54 18.00 9.46 6.45 15.91 9.46 4.45 13.91 9.46 3.82 13.28
51 9.97 9.03 19.00 9.97 6.82 16.79 9.97 4.80 14.77 9.97 4.10 14.07
52 10.54 9.53 20.07 10.54 7.20 17.74 10.54 5.25 15.79 10.54 4.44 14.98
53 11.13 10.05 21.18 11.13 7.61 18.74 11.13 5.76 16.89 11.13 4.81 15.94
54 11.73 10.58 22.31 11.73 8.05 19.78 11.73 6.27 18.00 11.73 5.19 16.92
55 12.31 11.12 23.43 12.31 8.52 20.83 12.31 6.73 19.04 12.31 5.55 17.86
56 12.85 11.63 24.48 12.85 9.00 21.85 12.85 7.11 19.96 12.85 5.85 18.70
57 13.39 12.08 25.47 13.39 9.45 22.84 13.39 7.41 20.80 13.39 6.10 19.49
58 13.92 12.58 26.50 13.92 9.96 23.88 13.92 7.73 21.65 13.92 6.38 20.30
59 14.46 13.22 27.68 14.46 10.58 25.04 14.46 8.13 22.59 14.46 6.74 21.20
60 15.00 14.11 29.11 15.00 11.39 26.39 15.00 8.71 23.71 15.00 7.30 22.30
61 15.00 14.87 29.87 15.00 12.01 27.01 15.00 9.53 24.53 15.00 8.08 23.08
62 15.00 15.48 30.48 15.00 12.42 27.42 15.00 10.32 25.32 15.00 8.84 23.84
63 15.00 16.00 31.00 15.00 12.73 27.73 15.00 11.06 26.06 15.00 9.55 24.55
64 15.00 16.50 31.50 15.00 13.04 28.04 15.00 11.71 26.71 15.00 10.20 25.20
65 15.00 17.05 32.05 15.00 13.45 28.45 15.00 12.25 27.25 15.00 10.75 25.75
66 15.00 17.58 32.58 15.00 13.96 28.96 15.00 12.60 27.60 15.00 11.18 26.18
67 15.00 18.05 33.05 15.00 14.50 29.50 15.00 12.78 27.78 15.00 11.49 26.49
68 15.00 18.55 33.55 15.00 15.07 30.07 15.00 12.91 27.91 15.00 11.74 26.74
69 15.00 19.19 34.19 15.00 15.70 30.70 15.00 13.07 28.07 15.00 12.00 27.00
70 15.00 20.07 35.07 15.00 16.39 31.39 15.00 13.39 28.39 15.00 12.31 27.31
71 15.00 21.52 36.52 15.00 17.25 32.25 15.00 14.01 29.01 15.00 12.72 27.72
72 15.00 22.97 37.97 15.00 18.12 33.12 15.00 14.64 29.64 15.00 13.12 28.12
73 15.00 24.41 39.41 15.00 18.98 33.98 15.00 15.26 30.26 15.00 13.53 28.53
74 15.00 25.86 40.86 15.00 19.85 34.85 15.00 15.89 30.89 15.00 13.93 28.93
75 15.00 27.31 42.31 15.00 20.71 35.71 15.00 16.51 31.51 15.00 14.34 29.34
- ---------- ------- -------- ------- ------- ------- ------- ------- -------- ------- ------- ------- -------
</TABLE>
COLUMN HEADINGS: DAC = First Year Contingent Deferred Administrative Charge
DSC = First Year Contingent Deferred Sales Charge
TDC = Total First Year Deferred Charge
<PAGE>
APPENDIX C
FIRST YEAR CONTINGENT DEFERRED CHARGES
PER $1,000 OF SPECIFIED AMOUNT
UNISEX
<TABLE>
<CAPTION>
Issue COMPOSITE Issue SMOKER NONSMOKER
Age DAC + DSC = TDC Age DAC + DSC = TDC DAC + DSC = TDC
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
0 .75 .18 .93 40 6.06 4.38 10.44 6.06 3.55 9.61
1 .80 .25 1.05 41 6.35 4.63 10.98 6.35 3.73 10.08
2 .85 .32 1.17 42 6.64 4.90 11.54 6.64 3.92 10.56
3 .90 .38 1.28 43 6.95 5.17 12.12 6.95 4.11 11.06
4 .95 .45 1.40 44 7.27 5.47 12.74 7.27 4.32 11.59
5 1.00 .52 1.52 45 7.60 5.79 13.39 7.60 4.55 12.15
6 1.06 .62 1.68 46 7.94 6.13 14.07 7.94 4.79 12.73
7 1.12 .73 1.85 47 8.27 6.50 14.77 8.27 5.05 13.32
8 1.18 .84 2.02 48 8.63 6.88 15.51 8.63 5.31 13.94
9 1.25 .94 2.19 49 9.02 7.29 16.31 9.02 5.60 14.62
10 1.31 1.02 2.33 50 9.46 7.72 17.18 9.46 5.92 15.38
11 1.37 1.08 2.45 51 9.97 8.18 18.15 9.97 6.28 16.25
12 1.43 1.14 2.57 52 10.54 8.67 19.21 10.54 6.65 17.19
13 1.49 1.17 2.66 53 11.13 9.19 20.32 11.13 7.05 18.18
14 1.55 1.20 2.75 54 11.73 9.72 21.45 11.73 7.48 19.21
15 1.60 1.24 2.84 55 12.31 10.24 22.55 12.31 7.93 20.24
16 1.64 1.26 2.90 56 12.85 10.73 23.58 12.85 8.37 21.22
17 1.67 1.28 2.95 57 13.39 11.15 24.54 13.39 8.78 22.17
18 1.69 1.30 2.99 58 13.92 11.61 25.53 13.92 9.24 23.16
19 1.73 1.33 3.06 59 14.46 12.20 26.66 14.46 9.81 24.27
<S> <C> <C> <C> <C> <C> <C> <C>
Issue SMOKER NONSMOKER 60 15.00 13.03 28.03 15.00 10.57 25.57
Age DAC + DSC = TDC DAC + DSC = TDC 61 15.00 13.80 28.80 15.00 11.22 26.22
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
20 1.80 1.40 3.20 1.80 1.37 3.17 62 15.00 14.45 29.45 15.00 11.70 26.70
21 1.89 1.56 3.45 1.89 1.44 3.33 63 15.00 15.01 30.01 15.00 12.09 27.09
22 1.99 1.70 3.96 1.99 1.53 3.52 64 15.00 15.54 30.54 15.00 12.47 27.47
23 2.12 1.83 3.95 2.12 1.62 3.74 65 15.00 16.09 31.09 15.00 12.91 27.91
24 2.26 1.94 4.20 2.26 1.72 3.98 66 15.00 16.58 31.58 15.00 13.40 28.40
25 2.42 2.02 4.44 2.42 1.82 4.24 67 15.00 17.00 32.00 15.00 13.90 28.90
26 2.61 2.12 4.73 2.61 1.90 4.51 68 15.00 17.42 32.42 15.00 14.40 29.40
27 2.83 2.23 5.06 2.83 1.98 4.81 69 15.00 17.97 32.97 15.00 14.96 29.96
28 3.07 2.33 5.40 3.07 2.05 5.12 70 15.00 18.73 33.73 15.00 15.57 30.57
29 3.31 2.46 5.77 3.31 2.14 5.45 71 15.00 20.02 35.02 15.00 16.34 31.34
30 3.55 2.58 6.13 3.55 2.23 5.78 72 15.00 21.30 36.30 15.00 17.12 32.12
31 3.78 2.71 6.49 3.78 2.33 6.11 73 15.00 22.58 37.58 15.00 17.89 32.89
32 4.02 2.84 6.86 4.02 2.44 6.46 74 15.00 23.87 38.87 15.00 18.67 33.67
33 4.25 3.00 7.25 4.25 2.56 6.81 75 15.00 25.15 40.15 15.00 19.44 34.44
34 4.49 3.15 7.64 4.49 2.68 7.17
35 4.74 3.32 8.06 4.74 2.81 7.55
36 4.99 3.51 8.50 4.99 2.94 7.93
37 5.25 3.70 8.95 5.25 3.08 8.33
38 5.51 3.91 9.42 5.51 3.23 8.74
39 5.78 4.14 9.92 5.78 3.38 9.16
COLUMN HEADINGS: DAC = First Year Contingent Deferred Administrative Charge
DSC = First Year Contingent Deferred Sales Charge
TDC = Total First Year Deferred Charge
</TABLE>
<PAGE>
APPENDIX D
DEATH BENEFIT RATIO
The Death Benefit Ratio required by the Internal Revenue Code for treatment of
the Policy as a life insurance Policy.
Attained Age | Death Benefit Ratio
-------------------------------------
0-40 | 2.50
41 | 2.43
42 | 2.36
43 | 2.29
44 | 2.22
45 | 2.15
------------------------------
46 | 2.09
47 | 2.03
48 | 1.97
49 | 1.91
50 | 1.85
------------------------------
51 | 1.78
52 | 1.71
53 | 1.64
54 | 1.57
55 | 1.50
------------------------------
56 | 1.46
57 | 1.42
58 | 1.38
59 | 1.34
60 | 1.30
------------------------------
61 | 1.28
62 | 1.26
63 | 1.24
64 | 1.22
65 | 1.20
------------------------------
66 | 1.19
67 | 1.18
68 | 1.17
69 | 1.16
70 | 1.15
------------------------------
71 | 1.13
72 | 1.11
73 | 1.09
74 | 1.07
75-90 | 1.05
------------------------------
91 | 1.04
92 | 1.03
93 | 1.02
94 | 1.01
95 | 1.00
------------------------------
<PAGE>
PART II
UNDERTAKINGS
1. Subject to the terms and conditions of Section 15(d) of the Securities
Exchange Act of 1934, the undersigned registrant hereby undertakes to
file with the Securities and Exchange Commission (the "SEC") such
supplementary and periodic information, documents, and reports as may
be prescribed by any rule or regulation of the SEC theretofore or
hereafter duly adopted pursuant to authority conferred in that section.
2. Section 11 of the Bylaws of CUNA Mutual Life Insurance Company provides
for indemnification of officers and directors of the Company against
claims and liabilities the officers or directors become subject to by
reason of having served as officer or director of the Company or any
subsidiary or affiliate company. Such indemnification covers liability
for all actions alleged to have been taken, omitted, or neglected by
such person in the line of duty as director or officer, except
liability arising out of the officers' or directors' willful
misconduct.
3. Insofar as indemnification for liability arising under the Securities
Act of 1933 may be permitted to directors, officers and controlling
persons of the registrant pursuant to the foregoing provisions, or
otherwise, the registrant has been advised that in the opinion of the
SEC such indemnification is against public policy as expressed in the
Securities Act of 1933 and is, therefore, unenforceable. In the event
that a claim for indemnification against such liabilities (other than
the payment by the registrant of expenses incurred or paid by a
director, officer or controlling person of the registrant in the
successful defense of any action, suit or proceeding) is asserted by
such director, officer or controlling person in connection with the
securities being registered, the registrant will, unless in the opinion
of its counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in the
Securities Act of 1933 and will be governed by the final adjudication
of such issue.
REPRESENTATIONS
CUNA Mutual Life Insurance Company represents that the fees and charges deducted
under the Policies, in the aggregate, are reasonable in relation to the services
rendered, the expenses expected to be incurred, and the risks assumed by CUNA
Mutual Life Insurance Company.
<PAGE>
CONTENTS OF REGISTRATION STATEMENT
This Registration Statement comprises the following papers and documents:
The facing sheet.
The Prospectus consisting of 46 pages.
Undertakings.
Representations.
The signatures.
Written consent or opinion of the following persons: (to be included in
b filing)
KPMG Peat Marwick LLP
Scott Allen - Associate Actuary
The following exhibits:
1. Exhibits required by paragraph A of instructions for Exhibits in Form N-8B-2:
1. Resolutions of the Board of Directors of CUNA Mutual Life
Insurance Company. Incorporated herein by reference to
post-effective amendment number 14 to this Form S-6
registration statement (File No. 33-19718) filed with the
Commission on April 18, 1996.
2. Not Applicable
3. Distribution Agreement between CUNA Mutual Life Insurance
Company and CUNA Brokerage Services, Inc. effective January 1,
1996. Incorporated herein by reference to post-effective
amendment number 14 to this Form S-6 registration statement
(File No. 33-19718) filed with the Commission on April 18,
1996.
Servicing Agreement related to the Distribution Agreement
between CUNA Mutual Life Insurance Company and CUNA Brokerage
Services, Inc. effective January 1, 1996. Incorporated herein
by reference to post-effective amendment number 14 to this
Form S-6 registration statement (File No. 33-19718) filed with
the Commission on April 18, 1996.
4. a. Termination Agreement dated December 31, 1993
concerning Agreement Governing Contribution dated
September 30, 1983. Incorporated herein by reference
to post-effective amendment number 14 to this Form
S-6 registration statement (File No. 33-19718) filed
with the Commission on April 18, 1996.
Agreement Governing Contribution. Incorporated herein
by reference to post-effective amendment number 14 to
this Form S-6 registration statement (File No.
33-19718) filed with the Commission on April 18,
1996.
b. Termination Agreement dated December 31, 1993
concerning Agreement Governing Contribution dated May
31, 1988. Incorporated herein by reference to
post-effective amendment number 14 to this Form S-6
registration statement (File No. 33-19718) filed with
the Commission on April 18, 1996.
Agreement Governing Contribution. Incorporated herein
by reference to post-effective amendment number 14 to
this Form S-6 registration statement (File No.
33-19718) filed with the Commission on April 18,
1996.
5. a. Standard VUL Contract Form 5202. Incorporated
herein by reference to post-effective amendment
number 14 to this Form S-6 registration statement
(File No. 33-19718) filed with the Commission on
April 18, 1996.
i. Accelerated Benefit Option Endorsement, Form
1668. Incorporated herein by reference to
post-effective amendment number 14 to this
Form S-6 registration statement (File No.
33-19718) filed with the Commission on April
18, 1996.
ii. Accidental Death Benefit Rider, Form 3601.
Incorporated herein by reference to
post-effective amendment number 14 to this
Form S-6 registration statement (File No.
33-19718) filed with the Commission on April
18, 1996.
iii. Guaranteed Insurability Rider, Form 3652.
Incorporated herein by reference to
post-effective amendment number 14 to this
Form S-6 registration statement (File No.
33-19718) filed with the Commission on April
18, 1996.
iv. Waiver of Monthly Deduction, Form 3955.
Incorporated herein by reference to
post-effective amendment number 14 to this
Form S-6 registration statement (File No.
33-19718) filed with the Commission on April
18, 1996.
v. Other Insured Rider, Form 3956. Incorporated
herein by reference to post-effective
amendment number 14 to this Form S-6
registration statement (File No. 33-19718)
filed with the Commission on April 18, 1996.
vi. Automatic Increase Rider, Form 3957 1085.
Incorporated herein by reference to
post-effective amendment number 14 to this
Form S-6 registration statement (File No.
33-19718) filed with the Commission on April
18, 1996.
vii. Child Rider, Form 6005. Incorporated herein
by reference to post-effective amendment
number 14 to this Form S-6 registration
statement (File No. 33-19718) filed with the
Commission on April 18, 1996.
viii. Juvenile Rider, Form 6012. Incorporated
herein by reference to post-effective
amendment number 14 to this Form S-6
registration statement (File No. 33-19718)
filed with the Commission on April 18, 1996.
ix. Level Term Rider (Sex-Distinct), Form 6017.
Incorporated herein by reference to
post-effective amendment number 14 to this
Form S-6 registration statement (File No.
33-19718) filed with the Commission on April
18, 1996.
x. Waiver of Premium and Monthly Deduction
Disability Benefit Rider, Form 6029 0994.
Incorporated herein by reference to
post-effective amendment number 14 to this
Form S-6 registration statement (File No.
33-19718) filed with the Commission on April
18, 1996.
xi. Executive Benefit Plan Endorsement, Form EBP
b. Unisex Version Form 5203. Incorporated herein by
reference to post-effective amendment number 14 to
this Form S-6 registration statement (File No.
33-19718) filed with the Commission on April 18,
1996.
i. Level Term Rider (Unisex), Form 6018.
Incorporated herein by reference to
post-effective amendment number 14 to this
Form S-6 registration statement (File No.
33-19718) filed with the Commission on April
18, 1996.
ii. 403(B) Endorsement, Form 1608(VUL) 0994
Incorporated herein by reference to
post-effective amendment number17 to this
Form S-6 registration statement (File No.
33-19718) filed with the Commission on April
17, 1998.
c. State Variation List.
6. a. Articles of Incorporation of the Company.
Incorporated herein by reference to post-effective
amendment number 15 to this Form S-6 registration
statement (File No. 33-19718) filed with the
Commission on April 18, 1997.
b. Bylaws. Incorporated herein by reference to
post-effective amendment number 15 to this Form S-6
registration statement (File No. 33-19718) filed with
the Commission on April 18, 1997.
7. Not Applicable
8. Servicing Agreement Between CUNA Mutual Life Insurance Company
and CIMCO Inc. dated May 1, 1997.
9. a. Participation Agreement between T. Rowe Price
International Series, Inc. and the Company dated
April 22, 1994. Amendment to Participation Agreement
dated November 1994. Incorporated herein by reference
to post-effective amendment number 14 to this Form
S-6 registration statement (File No. 33-19718) filed
with the Commission on April 18, 1996.
b. Participation Agreement between MFS Variable
Insurance Trust and the Company dated April 29, 1994.
Amendment to Participation Agreement dated November
1994. Amendment to Participation Agreement effective
May 1, 1996. Incorporated herein by reference to
post-effective amendment number 14 to this Form S-6
registration statement (File No. 33-19718) filed with
the Commission on April 18, 1996.
10. Application. Incorporated herein by reference to
post-effective amendment number 14 to this Form S-6
registration statement (File No. 33-19718) filed with the
Commission on April 18, 1996.
2. Opinion of Counsel. Incorporated herein by reference to post-effective
amendment number 14 to this Form S-6 registration statement (File No.
33-19718) filed with the Commission on April 18, 1996.
3. Not applicable
4. Not applicable
5. Financial Data Schedule
6. Not applicable
Power of Attorney
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the registrant, CUNA
Mutual Life Variable Account, has duly caused this Registration Statement to be
signed on its behalf by the undersigned thereunto duly authorized, all in the
City of Madison, and State of Wisconsin, on the 22nd day of February, 1999.
CUNA Mutual Life Variable Account (Registrant)
By: /s/ Michael B. Kitchen
Michael B. Kitchen
President
Pursuant to the requirements of the Securities Act of 1933, the Depositor, CUNA
Mutual Life Insurance Company, has duly caused this Registration Statement to be
signed on its behalf by the undersigned thereunto duly authorized, all in the
City of Madison, and State of Wisconsin, on the 22nd day of February, 1999.
CUNA Mutual Life Insurance Company (Depositor)
By: /s/ Michael B. Kitchen
Michael B. Kitchen
President
<PAGE>
Pursuant to the requirements of the Securities Act of 1933, this Registration
Statement has been signed by the following persons in the capacities indicated
and on the dates indicated.
<TABLE>
<CAPTION>
SIGNATURES AND TITLE DATE SIGNATURES AND TITLE DATE
<S> <C> <C> <C> <C> <C>
James C. Barbre * Omer K. Reed *
James C. Barbre, Director Omer K. Reed, Director
Robert W. Bream * *
Robert W. Bream, Director
Wilfred F. Broxterman * Richard C. Robertson *
Wilfred F. Broxterman, Director Richard C. Robertson, Director
James L. Bryan * Rosemarie M. Shultz *
James L. Bryan, Director Rosemarie M. Shultz, Director
Loretta M. Burd * Neil A. Springer *
Loretta M. Burd, Director Neil A. Springer, Director
Ralph B. Canterbury * Farouk D. G. Wang *
Ralph B. Canterbury, Director Farouk D. G. Wang, Director
Joseph N. Cugini * Larry T. Wilson *
Joseph N. Cugini, Director Larry T. Wilson, Director
Rudolf J. Hanley * /s/ Kevin S. Thompson 02/22/99
Rudolf J. Hanley, Director Kevin S. Thompsn, Attorney-In-Fact
Jerald R. Hinrichs *
Jerald R. Hinrichs, Director
/s/ Michael B. Kitchen 02/22/99
Michael B. Kitchen, Director
Robert T. Lynch *
Robert T. Lynch, Director
Brian L. McDonnell *
Brian L. McDonnell, Director
C. Alan Peppers *
C. Alan Peppers, Director
<FN>
*Pursuant to Powers of Attorney filed herewith
</FN>
</TABLE>
Pursuant to the requirements of the Securities Act of 1933, this Registration
Statement has been signed by the following person in the capacity indicated on
the date indicated.
SIGNATURE AND TITLE DATE
/s/ Michael G. Joneson 02/22/99
Michael G. Joneson
Vice President - Accounting & Financial Systems
/s/ Richard J. Keintz 02/22/99
Richard J. Keintz
Chief Officer - Finance & Information Services
/s/ Michael B. Kitchen 02/22/99
Michael B. Kitchen
President and Chief Executive Officer
<PAGE>
EXHIBIT INDEX
5. a. (xi) Executive Benefit Plan Endorsement, Form 98-EBP.
5. c. State Variations List
8. Servicing Agreement Between CUNA Mutual Life Insruance
Company and CIMCO Inc. dated May 1, 1997.
Power of Attorney
<PAGE>
CUNA Mutual Life Insurance Company
A Mutual Insurance Company
2000 Heritage Way, Waverly, Iowa 50677
Phone: 800/798-5500
<TABLE>
<CAPTION>
EXECUTIVE BENEFIT PLAN ENDORSEMENT
- ------------------------------------------ ------------------------------------------------------------------------------------
SECTION 1. GENERAL INFORMATION
- ------------------------------------------ ------------------------------------------------------------------------------------
<S> <C>
What is our agreement with you? Our agreement with you includes this endorsement as a part of the policy or
contract (herein referred to as "policy") to which it is attached. The provisions
of the policy apply to this endorsement unless changed by this endorsement.
- ------------------------------------------ ------------------------------------------------------------------------------------
SECTION 2. BENEFIT
- ------------------------------------------ ------------------------------------------------------------------------------------
What is the benefit provided by this This endorsement waives the surrender charges or deferred charges on the policy to
endorsement? which it is attached subject to the following:
a.) this policy is surrendered and the proceeds are used to fund a new
policy provided through CUNA Mutual Life Insurance Company or an affiliate;
b.) this policy is owned by a business or a trust;
c.) the new policy is owned by the same entity;
d.) the insured or annuitant under this policy is a selected manager or a
highly compensated employee (as those terms are defined by
Title 1 of the Employee Retirement Income Security Act, as amended);
e.) the insured or annuitant under the new policy is also a selected manager
or a highly compensated employee;
f.) we receive an application for the new policy; and
g.) we have evidence of insurability satisfactory to us.
- ------------------------------------------ ------------------------------------------------------------------------------------
SECTION 3. CHARGES
- ------------------------------------------ ------------------------------------------------------------------------------------
Is there a charge for this There is no charge for this benefit. However, if you exercise the right provided
benefit? by this endorsement during the first two policy years, we reserve the right to
charge a fee to offset expenses incurred. Any fee charged will never be greater
than $150.00.
</TABLE>
CUNA Mutual Life Insurance Company
A Mutual Insurance Company
/s/ Michael B. Kitchen
President
EXHIBIT 5c
Flexible Premium Variable Life Insurance Policy
State Variations
Contract Form No. 5202 attached as Exhibit 5 is a copy of the Policy language
used in the following states:
Alaska Nevada
Arizona New Jersey
Arkansas Ohio
Delaware Oregon
Hawaii Rhode Island
Iowa Wyoming
Maryland Wisconsin
Montana
Nebraska
The following state contract forms vary from the Form No. 5202 as indicated
below:
Alabama -- Contract No. 5202AL -- Section 1.5, Suicide, deletes the language "or
the reinstatement date" after the word "date" in the first line and sentence of
that section. Section 9.3C., Cost of Insurance Rate, adds the language "for
attained ages less than 20, and the 1980 CSO Smoker and Nonsmoker Mortality
Tables, age last birthday, for attained ages 20 and above." at the end of the
last sentence after the word "birthday."
California --Contract No. 5202CA changes Form 5202 language adding as a second
paragraph on the first page and last page "Minimum death benefit at least equal
to the specified amount will be payable if the Minimum Death Benefit Guarantee
is in effect." It also changes the RIGHT TO CANCEL paragraph to change the
period from 20 days to 30 days and adds a sentence to the RIGHT TO CANCEL
paragraph at the bottom of page 1 stating "The refund will be the total of all
premiums paid for this policy." Section 3.5, Lapse and Grace Period, includes
language requiring mailing of a Report to Policyholder as well as notice of
termination. Section 9.2 adds paragraph at the end of the section stating: "The
number of units purchased or redeemed is determined by dividing A or B by C
where A is the net premium being allocated to the subaccount(s), B is the money
being deducted from the subaccount(s) and C is the unit value on the monthly
day. Section 9.3B, Cost of Insurance, adds language indicating that "The total
cost of insurance is the sum of the cost of insurance for the initial specified
amount and the cost of insurance for any increases in specified amount." And
"The total accumulated value will be used in the calculation of the total cost
of insurance as follows: 1. The accumulated value will be allocated first to the
calculation of cost of insurance for the initial specified amount. 2. If the
total accumulated value exceeds the initial specified amount, the excess will be
allocated to the calculation of the cost of insurance for any increases in
specified amount, in the order those increases were made, up to the amount of
each increase." Section 9.3C, Cost of Insurance Rate, adds at the end of the
section after the word "birthday," the language "for attained ages less than 20
and the 1980 CSO Smoker and Nonsmoker Mortality Tables, age last birthday, for
attained ages 20 and above.
Colorado -- Contract No. 5202CO -- Section 1.5, Suicide, reduces the suicide
payment limitation from 2 years to 1 year after the issue date and 1 year after
an increase in specified amount.
Connecticut -- Contract No. 5202CT -- Right to Cancel language reads as follows:
"The owner may cancel this policy by returning the policy before midnight of the
twentieth day after the date the owner receives the policy to Century life of
America, 2000 Heritage Way, Waverly, Iowa 50677. Return of the policy by mail to
the Company or to the agent from whom it was purchased are effective on being
postmarked, properly addressed, and postage paid. If the policy is returned, it
will be considered void from the beginning, and Century Life of America will
make a refund for this policy within seven days after it receives the returned
policy." Section 11.2, Policy Loan Interest establishes the loan interest rate
at 8%.
Florida -- Contract No. 5202FL changes Form 5202 language on the cover page to
allow 30 days for cancellation by owner instead of 20.
Georgia -- Contract No. 5202GA adds language to the cover pages stating "A full
refund of the premium paid will be returned to the policyholder" to the Right to
Cancel section. Section 1.5, Suicide, deletes the language "or the reinstatement
date" after the word "date" in the first sentence, first line.
Idaho -- Contract No. 5202ID changes Form 5202 language adding to Section 10.3,
Surrender and Partial Surrender Payments, the following paragraph: "In the event
that the Company defers payment of the surrender or partial surrender for more
than 30 days, it will pay interest on the surrender benefit at the rate
specified in Idaho Code, Section 28-22-104(2)."
Illinois -- Contract No. 5202IL changes the Right to Cancel section on the cover
page to read as follows: "The owner may cancel this policy by delivering or
mailing a written notice or sending a telegram to Century Life of America, 2000
Heritage Way, Waverly, Iowa 50677, and by returning the policy before midnight
of the twentieth day after the date the owner receives the policy. Notice given
by mail and return of the policy by mail to the Company or to the agent from
whom it was purchased are effective on being postmarked, properly addressed, and
postage paid. If the policy is returned, it will be considered void from the
beginning, and Century Life of America will return all payments made for this
policy within ten days after it receives notice of cancellation and the returned
policy."
Indiana -- Contract No. 5202IN -- "Minimum Premium" is defined as "The
annualized premium amount used to determine the status of the no lapse guarantee
during the first three policy years (see Section 3.6). The minimum premium is
shown on the specifications page." Section 3.1, Time and Place of Payment,
second paragraph is changed to read: "The minimum premium, also shown on the
specifications page, is the annualized premium amount used to determine the
status of the no lapse guarantee during the first three policy years (see
Section 3.6). Section 9.3 C, Cost of Insurance Rate, adds "Attained age means
age on the most recent policy anniversary. Cost of insurance rate changes will
depend on the Company's expectations as to future mortality experience. the
annual cost of insurance rates will not exceed the rates shown in Table 1 -
Guaranteed Maximum Cost of Insurance Rates. The guaranteed maximum insurance
rates are based on the 1980 CSO Mortality Tables, age last birthday, for
attained ages less than 20, and the 1980 CSO Smoker and Nonsmoker Mortality
Tables, age last birthday, for attained ages 20 and above. Section 9.3D., Basis
of Values, reads as follows: "The Company has filed a detailed description of
the method of computation of the cash values. the description is filed with the
insurance supervisory official of the state in which this policy is issued. If
the net investment income return credited to the policy is equal to 4% at all
times from the date of issue, then cash values will never be less than the
minimum cash surrender values calculated according to the Standard Nonforfeiture
Law, using 4% and the 1980 CSO Mortality Tables (same as described in Section
6.3C)."
Kansas - Contract No. 5202KS changes Form 5202 language in the second paragraph
of Section 8.3, Method of Payment, to add the sentence: " It is guaranteed to be
not less than the Company's current rate of interest on death proceeds left on
deposit, plus one percent."
Kentucky -- Contract No. 5202KY changes Form 5202 language on the cover page to
allow 30 days for cancellation by owner instead of 20.
Louisiana -- Contract No. 5202LA adds the following language to the bottom of
page 1 cover page: "No premium will be payable to Century Life of America when a
policyholder receives notice of an injunction or order of rehabilitation or
liquidation."
Maine -- Contract No. 5202ME deletes the last sentence of section 1.2B., Policy.
Massachusetts -- Contract No. 5202MA adds the following sentence to the Right to
Cancel paragraph on page 1 cover page "The refund will be the total of all
premiums paid for this policy." Paragraph 5 is deleted from section 1.3,
Incontestability.
Michigan -- Contract No. 5202MI deletes the language "or the reinstatement date"
after the word "date" in the first sentence of Section 1.5, Suicide. Section
9.3, Item C., Cost of Insurance, last sentence, is changed to read: "The
guaranteed maximum insurance rates are based on the 1980 CSO Mortality Tables,
age last birthday, for attained ages less than 20, on the 1980 CSO smoker and
nonsmoker mortality tables, age last birthday, for attained ages 20 and above.
Minnesota -- Contract No. 5202MN deletes the section entitled "Introduction,"
and changes the definition of "Death Proceeds" to read: "The amount to be paid
if the insured dies while the policy is in force. When the policy becomes a
claim by the death of the insured, settlement will be made within two months
after receipt of due proof of death." Section 1.2 A, application, third and
fourth sentences, are changed to read: "The Company agrees that, in the absence
of fraud, all statements made in the application as representations and not
warranties. No statement will be used to rescind the policy or defend a claim
under the policy unless that statement is in the written application." Paragraph
2 of Section 1.3, Incontestability is changed to read "While this policy is
contestable, the Company may contest the policy or defend a claim only on the
basis of fraudulent statements in the application. The next paragraph in
Contract No. 5202 is deleted from Contract No. 5202MN. The new fourth paragraph
is changed to read "While any increase in specified amount is contestable, the
Company may contest the increase or defend a claim for the difference in death
benefit only on the basis of fraudulent statements in the supplemental
application."
Missouri -- Contract No. 5202MO, section 1.3, Contestability, reads: "After the
policy has been in force during the insured's lifetime for two years from the
policy date, we cannot contest this policy except for the nonpayment of
premiums." Section 1.5, Suicide, reads: "Suicide is no defense to payment of
life insurance benefits or to provision of benefits under an attached rider, nor
is suicide while insane a defense to payment of accidental death benefits under
this policy where the policy is issued to a Missouri citizen, unless the insurer
can show that the insured intended suicide when he applied for the policy and/or
rider."
Mississippi - Contract No. 5202MS, Section 9.3, Item C, Cost of Insurance, reads
"The guaranteed maximum insurance rates are based on the 1980 CSO Male or Female
Mortality Table, age last birthday, for attained ages less than 20 and the 1980
CSO Male or Female Smoker or Non Smoker Mortality table, age last birthday, for
attained ages 20 and above.
New Mexico -- Contract No. 5202NM changes the first paragraph of Section 3.5,
Lapse and Grace Period as follows: " If the net case value on any monthly day is
less than the amount needed to pay the monthly deduction, and if the no lapse
guarantee does not apply, the Company will mail a notice of termination and a
copy of the Report to Policyholder to the owner at his or her last known
address. The Company will grant a 61-day grace period for the payment of the
amount due. The grace period will end on a date not less than 61 days after the
mailing date of the notice and Report."
North Carolina -- Contract No. 5202NC adds the following sentence to Right to
Cancel, page 1: "The refund will be equal to the original payment." The Cost of
Insurance Rate section 9.3C and Section 9.4 add references to Smoking and
Non-Smoking status ("S" status).
North Dakota -- Contract No. 5202ND -- Section 1.5, Suicide, reduces the suicide
payment limitation from 2 years to 1 year after the issue date and 1 year after
an increase in specified amount.
Oklahoma -- Contract No. 5202OK adds to the RIGHT TO EXAMINE Section on the
Policy Cover the following sentences: "The refund will be the total of all
premiums paid for this policy. Interest will be paid on refunds made more than
thirty days from the date of cancellation. Also adds to section 5.3 Underlying
Mutual Funds and 9.8 Projection Report to the Guide to Policy Provisions.
Section 1.5, Suicide deletes the phrase "or the reinstatement date" after the
word "date" in the first sentence, first line. Section 9.8, Projection Report,
reads as follows: "The Company will provide a projection report at any time upon
the request of the owner. This report will show the current accumulated value
and the accumulated value for the next 20 policy years. The accumulated values
for future years will be calculated using 4% interests and the guaranteed
maximum cost of insurance rates. The maximum charge for this report is $25.
Pennsylvania -- Contract No. 5202PA adds to the cover page "Minimum death
benefit at least equal to the specified amount will be payable if the Minimum
Death Benefit Guarantee is in effect." The Right to Cancel Section on the cover
page reads: "The owner may cancel this policy by delivering or mailing a written
notice or sending a telegram to Century Life of America, 2000 Heritage Way,
Waverly, Iowa 50677, and by returning the policy within 45 days of the date of
execution of the application for insurance, within 20 days of the owner's
receipt of the issued policy, or within 20 days of the owner's receipt of the
Notice of Right of Withdrawal, whichever is later. Notice given by mail and
return of the policy by mail are effective on being postmarked, properly
addressed, and postage paid. If the policy is returned to the Company or to the
Agent through whom it was purchased, it will be considered void from the
beginning, and Century Life of America will make a refund for this policy within
seven days after it receives notice of cancellation and the returned policy. The
refund will be the total of all premiums paid for this policy." The first
sentence of Section 1.4, Misstatement of Age or Sex, reads as follows: "If the
insured's age or sex has been misstated, no adjustment will be made to the
accumulated value." The phrase "or the reinstatement date" is removed after the
word "date" in the first sentence of Section 1.5, Suicide. The first paragraph
of Section 3.5, Lapse and Grace Period, reads as follows: "If the net cash value
on any monthly day is less than the amount needed to pay the monthly deduction,
and if the no lapse guarantee does not apply, the Company will mail a notice of
termination and a copy of the Report to Policyholder to the owner at his or her
last known address. The Company will grant a 61-day grace period for the payment
of the amount due. The grace period will end on a date not less than 61 days
after the mailing date of the notice and Report." The following paragraph is
added to the end of Section 9.2, Accumulated Value: "The number of units
purchased or redeemed is determined by dividing A or B by C where A is the net
premium being allocated to the Subaccount(s), B is the money being deducted from
the Subaccount(s) and C is the unit value on the monthly day." Section 9.3B.,
Cost of Insurance reads as follows: "The total cost of insurance is the sum of
the cost of insurance for the initial specified amount and the cost of insurance
for any increases in specified amount. The cost of insurance is the cost of
insurance rate multiplied by the excess of 1 over 2, divided by 1000, where 1
and 2 are the following: 1. The face amount of the monthly day. 2. The
accumulated value on the monthly day, prior to the cost of insurance being
deducted. The total accumulated value will be used in the calculation of the
total cost of insurance as follows: 1. The accumulated value will be allocated
first to the calculation of cost of insurance for the initial specified amount.
2. If the total accumulated value exceeds the initial specified amount, the
excess will be allocated to the calculation of the cost of insurance for any
increases in specified amount, in the order those increases were made, up to the
amount of each increase." The last sentence of Section 9.3C., Cost of Insurance
Rate, reads as follows: "The guaranteed maximum insurance rates are based on the
1980 CSO Mortality Table, age last birthday, for attained ages less than 20 and
the 1980 CSO Smoker and Nonsmoker Mortality Tables, age last birthday or
attained ages 20 and above." The phrase "partial surrenders or policy loan
transactions" is deleted from the second sentence of the second paragraph in
Section 9.6, Deferred Charges Account. The phrase "The payment of any premiums
due the Company will not be deferred." is added to the end of Section 10.3,
Surrender and Partial Surrender Payments. The second sentence of the third
paragraph of Section 12.1, Exchange of Policy, reads as follows: "It will have
the same risk classification and shall include the same incidental insurance
benefits as were included in this policy if those incidental insurance benefits
were then available for issue with the new policy." The sentence "Minimum death
benefit at least equal to the specified amount will be payable if the Minimum
Death Benefit Guarantee is in effect" is added to the end page of the policy.
South Carolina -- Contract No. 5202SC removes the definition "Rescind a Policy."
Section 1.2A. changes the word "rescind" in the last sentence to "contest." The
last sentence of the first paragraph of Section 1.3, Incontestability, reads:
"Any rider(s) attached to this policy will be incontestable after each such
rider has been in force from the later of two years from this rider's issue date
or two years from the date of its last reinstatement." Paragraph 6 of Section
1.3 is deleted from 5202SC. Section 1.5, Suicide, deletes the phrase "or the
reinstatement date" after the word "date." The phrase "not less than the legal
rate of interest" is added to the end of the last sentence of the second
paragraph of Section 8.3, Method of Payment.
South Dakota -- Contract No. 5202SD adds the words "Variable Life" under the
heading on the first policy page.
Tennessee -- Contract No. 5202TN deletes the phrase "or the reinstatement date"
after the word "date" in the first sentence of Section 1.5, Suicide. The phrase
"and any assignee of record at their last known address" is added to the end of
the first sentence of the first paragraph of Section 3.5, Lapse and Grace
Period.
Texas -- Contract No. 5202TX adds the sentence "The refund will be the total of
all premiums paid for this policy." to the Right to Cancel section on page one
of the policy. The word "state" is removed before the word "taxes" in the
definition of "Charge for State Taxes" under Definitions and throughout the
policy. The definition for "Per Thousand Expense Charge" adds the following
sentences: "It applies to the original specified amount, lasting ten years from
the issue date. It also applies to any requested increases in specified amount,
lasting for ten years following the effective date of such increase." Delete
"Rescind a Policy" from the Definitions Section. The definition of "Valuation
Day" adds "It coincides with the end of the valuation period." Section 3.1C adds
the word "unplanned" before the first use of the word "premium." The sentence
"Notice of the new target premium will be mailed to the insured." is added after
Section 3.7C. Section 5.3, Underlying Mutual Funds, last two sentences read as
follows: "The unit value of each series other than a Treasury Series was
originally established at $10 per unit. The unit value of each Treasury Series
will be established at a price that is calculated to grow to $10 per unit upon
maturity of the Treasury Series held in that series." The parenthetical phrase
in Section 5.5B.2 reads as follows: "(The daily amount of this charge is equal
to the net assets of the Subaccount multiplied by the daily mortality and
expense risk charge factor shown on the specifications page)." The last sentence
of Section 9.3C, Cost of Insurance Rate, reads: "The guarantee maximum insurance
rates are based on the 1980 CSO Mortality Tables, age last birthday, for
attained ages less than 20, and the 1980 CSO Smoker and Nonsmoker Mortality
Tables, age last birthday, for attained ages 20 and above." Section 9.5,
Deferred Charge, reads as follows: "a charge for sales expense and a charge for
administrative expense, collectively called "deferred charges," is incurred
incrementally each month during the first policy year but deferred. Deferred
charges become payable in amounts which decrease annually after the first policy
year, but only if the policy is surrendered within the first nine policy years.
The amount of deferred charges payable in any policy year is shown on the
specifications page. The amount of deferred charges is based on the specified
amount, age, sex and rating class of the insured as illustrated in the tables
below. No additional deferred charges are incurred after the first policy year
unless the specified amount is increased. Where there is an increase in
specified amount, the amount of additional deferred charges, if any, is based
only on the amount of the increase and the insured's age, sex and rating class
for this purpose at the time the increase in specified amount is issued as
illustrated in the table below. Like deferred charges in the first policy year,
such additional deferred charges in the first year of the increase build up on a
monthly basis over the first 12 months of the increase so that if the policy is
surrendered during the first 11 policy months of such increase, the deferred
charges attributable to the increase will be prorated to include only the
charges incurred on the date of such surrender. If the policy is surrendered
during any of the nine years following the date of the increase, the reduced
amount of such deferred charges payable shall be calculated on the basis of the
annualized deferred charge per $1,000 as illustrated in the table below. No
additional deferred charges will apply if the increase is specified amount is
due solely to a change in death benefit option. The accumulated value at the
time of any increase in specified amount must be at least as great as the sum of
the existing deferred charges plus the additional deferred charges, if any."
Table follows. The first sentence of Section 9.6, Deferred Charges Account
reads: "The deferred charges account is a non-segregated portion of the
Company's general account in which a portion of the policy's accumulated value
is held while this policy has deferred sales and administrative charges."
Utah -- Contract No. 5202UT second paragraph of Right to Cancel on page one
reads: "A full refund of the premium paid will be returned to the policyholder."
The words "or the reinstatement date" are deleted after the word "date" in the
first sentence of Section 1.5, Suicide. The words "in arrears" is added after
the word "payable" in the first sentence of Section 11.2, Policy Loan Interest.
Vermont - Contract No. 5202VT changes the first paragraph in Section 5.2,
Subaccounts, to read: "The Separate Account has several Subaccounts. Each
Subaccount corresponds to a series of the Ultra Series Fund. The Company may
from time to time add Subaccounts to the Separate Account. Any Subaccounts that
are added to the Separate Account will invest in a new series of the Ultra
Series fund or another investment company. Subaccounts that invest in a Treasury
Series will be discontinued if that series is no longer available because of
maturity. Also, Section 5.3, Underlying Mutual Funds, is changed to be titled
"Ultra Series Fund", with the language of the section reading: "The Ultra Series
Fund is registered under the Investment Company Act of 1940 as an open-end
diversified management investment company. Each series of the Ultra Series Fund
represents a different investment objective. The series that are available on
the Issue Date are shown on the Specifications Page. The Owner will be notified
in writing of any changes to the current series that are available.
Virginia -- Contract No. 5202VA adds the phrase "when issued or delivered" after
the word "contract" in the first sentence of Section 1.2, The Entire Contract.
The last sentence of Section 1.2A., Application, will read: No statement will be
used in defense of a claim under the policy unless that statement is contained
in a written application that is endorsed upon or attached to the policy when
issued or delivered." Section 11.1, Application for Policy Loan, adds the words
"up to 90%" after the word "amount" in the first sentence of the first
paragraph.
Washington -- Contract No. 5202WA the last sentence of the definition "Death
Proceeds" reads: "The Company will pay interest from the date of settlement at a
specified rate but no less than that required by law." The last sentence of the
definition "Maturity Date" reads: "The Company will pay interest from the
maturity date to the date of settlement at a specified rate but not less than
that required by law." The words "in arrears" are added after the word "payable"
in the first sentence of Section 11.2, Policy Loan Interest."
West Virginia -- Contract No. 5202WV the last sentence of Section 10.3,
Surrender and Partial Surrender Payments, reads: "The payment of any surrender
amount or policy loan proceeds from the Interest Bearing Account may be deferred
for up to 30 days from the date of the surrender request or six months from the
date of the loan request."
<PAGE>
EXHIBIT 8
SERVICING AGREEMENT BETWEEN
CUNA MUTUAL LIFE INSURANCE COMPANY
AND
CIMCO INC.
THIS AGREEMENT is made by and between CUNA Mutual Life Insurance Company (CUNA
Mutual Life ), a mutual life insurance company domiciled in the state of Iowa
with its principal office located in Waverly, Iowa, and CIMCO Inc. (CIMCO), a
duly licensed registered investment adviser domiciled in the state of Iowa with
its principal office located in Madison, Wisconsin.
WHEREAS, CIMCO is an independent registered investment adviser, engaged
primarily in the business of providing investment advice and investment
management services on a fee for service basis, and currently acts as investment
adviser to the Ultra Series Fund and other clients, and
WHEREAS, CIMCO alone will have control over its investment advisory business,
and
WHEREAS, CIMCO wishes to purchase from CUNA Mutual Life various services
required by CIMCO in the ordinary course of administering its business,
NOW, THEREFORE, for good and valuable consideration, the parties agree as
follows:
1. CIMCO shall purchase from CUNA Mutual Life certain accounting,
administrative, clerical, legal, tax and other services necessary to
fulfill CIMCO's obligation under the Investment Advisory Agreement
between CIMCO and the Ultra Series Fund.
2. As full compensation for the above-described services, CIMCO will pay
to CUNA Mutual Life a monthly fee equal to 1/12th of .15% of the entire
net assets of Ultra Series Fund determined as of the close of business
on the last business day of the preceding month.
3. This agreement shall be nonassignable and shall remain in effect until
terminated and may be terminated by any party as of the first day of
any month by giving the other party at least 30 days prior written
notice.
4. This agreement shall be applied, interpreted, construed and enforced in
accordance with the laws of the state of Iowa.
IN WITNESS WHEREOF, this agreement is executed by CUNA Mutual Life and CIMCO by
their respective duly authorized officers to become effective on the 1st day of
May, 1997.
CUNA MUTUAL LIFE INSURANCE COMPANY
By: /s/ Michael B. Kitchen
Michael B. Kitchen
President and Chief Executive Officer
CIMCO INC.
By: /s/ Michael S. Daubs
Michael S. Daubs
President
<PAGE>
POWER OF ATTORNEY
KNOW ALL BY THESE PRESENTS, that I, James C. Barbre, a director of CUNA Mutual
Life Insurance Company, a life insurance company incorporated under the laws of
and domiciled in the State of Iowa, hereby appoint, authorize and empower Kevin
S. Thompson, Michael A. Murphy, or John M. Waggoner, severally, as my attorneys
and agents for me and in my name as director of CUNA Mutual Life Insurance
Company on behalf of CUNA Mutual Life Insurance Company and CUNA Mutual Life
Variable Account (or otherwise) with full power to prepare, review, execute,
deliver and file Post-Effective Amendments with the Securities and Exchange
Commission for the CUNA Mutual Life Variable Account, Registration No. 33-19718.
This Power of Attorney shall terminate at the end of my appointed term as
Director.
WITNESS MY HAND AND SEAL this 19th day of February, 1999.
/s/ James C. Barbre
James C. Barbre
Director, CUNA Mutual Life Insurance Company
<PAGE>
POWER OF ATTORNEY
KNOW ALL BY THESE PRESENTS, that I, Robert W. Bream, a director of CUNA Mutual
Life Insurance Company, a life insurance company incorporated under the laws of
and domiciled in the State of Iowa, hereby appoint, authorize and empower Kevin
S. Thompson, Michael A. Murphy, or John M. Waggoner, severally, as my attorneys
and agents for me and in my name as director of CUNA Mutual Life Insurance
Company on behalf of CUNA Mutual Life Insurance Company and CUNA Mutual Life
Variable Account (or otherwise) with full power to prepare, review, execute,
deliver and file Post-Effective Amendments with the Securities and Exchange
Commission for the CUNA Mutual Life Variable Account, Registration No. 33-19718.
This Power of Attorney shall terminate at the end of my appointed term as
Director.
WITNESS MY HAND AND SEAL this 19th day of February, 1999.
/s/ Robert W. Bream
Robert W. Bream
Director, CUNA Mutual Life Insurance Company
<PAGE>
POWER OF ATTORNEY
KNOW ALL BY THESE PRESENTS, that I, W. F. Broxterman, a director of CUNA Mutual
Life Insurance Company, a life insurance company incorporated under the laws of
and domiciled in the State of Iowa, hereby appoint, authorize and empower Kevin
S. Thompson, Michael A. Murphy, or John M. Waggoner, severally, as my attorneys
and agents for me and in my name as director of CUNA Mutual Life Insurance
Company on behalf of CUNA Mutual Life Insurance Company and CUNA Mutual Life
Variable Account (or otherwise) with full power to prepare, review, execute,
deliver and file Post-Effective Amendments with the Securities and Exchange
Commission for the CUNA Mutual Life Variable Account, Registration No. 33-19718.
This Power of Attorney shall terminate at the end of my appointed term as
Director.
WITNESS MY HAND AND SEAL this 19th day of February, 1999.
/s/ W. F. Broxterman
W. F. Broxterman
Director, CUNA Mutual Life Insurance Company
<PAGE>
POWER OF ATTORNEY
KNOW ALL BY THESE PRESENTS, that I, James L. Bryan, a director of CUNA Mutual
Life Insurance Company, a life insurance company incorporated under the laws of
and domiciled in the State of Iowa, hereby appoint, authorize and empower Kevin
S. Thompson, Michael A. Murphy, or John M. Waggoner, severally, as my attorneys
and agents for me and in my name as director of CUNA Mutual Life Insurance
Company on behalf of CUNA Mutual Life Insurance Company and CUNA Mutual Life
Variable Account (or otherwise) with full power to prepare, review, execute,
deliver and file Post-Effective Amendments with the Securities and Exchange
Commission for the CUNA Mutual Life Variable Account, Registration No. 33-19718.
This Power of Attorney shall terminate at the end of my appointed term as
Director.
WITNESS MY HAND AND SEAL this 19th day of February, 1999.
/s/ James L. Bryan
James L. Bryan
Director, CUNA Mutual Life Insurance Company
<PAGE>
POWER OF ATTORNEY
KNOW ALL BY THESE PRESENTS, that I, Loretta M. Burd, a director of CUNA Mutual
Life Insurance Company, a life insurance company incorporated under the laws of
and domiciled in the State of Iowa, hereby appoint, authorize and empower Kevin
S. Thompson, Michael A. Murphy, or John M. Waggoner, severally, as my attorneys
and agents for me and in my name as director of CUNA Mutual Life Insurance
Company on behalf of CUNA Mutual Life Insurance Company and CUNA Mutual Life
Variable Account (or otherwise) with full power to prepare, review, execute,
deliver and file Post-Effective Amendments with the Securities and Exchange
Commission for the CUNA Mutual Life Variable Account, Registration No. 33-19718.
This Power of Attorney shall terminate at the end of my appointed term as
Director.
WITNESS MY HAND AND SEAL this 19th day of February, 1999.
/s/ Loretta M. Burd
Loretta M. Burd
Director, CUNA Mutual Life Insurance Company
<PAGE>
POWER OF ATTORNEY
KNOW ALL BY THESE PRESENTS, that I, Ralph B. Canterbury, a director of CUNA
Mutual Life Insurance Company, a life insurance company incorporated under the
laws of and domiciled in the State of Iowa, hereby appoint, authorize and
empower Kevin S. Thompson, Michael A. Murphy, or John M. Waggoner, severally, as
my attorneys and agents for me and in my name as director of CUNA Mutual Life
Insurance Company on behalf of CUNA Mutual Life Insurance Company and CUNA
Mutual Life Variable Account (or otherwise) with full power to prepare, review,
execute, deliver and file Post-Effective Amendments with the Securities and
Exchange Commission for the CUNA Mutual Life Variable Account, Registration No.
33-19718. This Power of Attorney shall terminate at the end of my appointed term
as Director.
WITNESS MY HAND AND SEAL this 19th day of February, 1999.
/s/ Ralph B. Canterbury
Ralph B. Canterbury
Director, CUNA Mutual Life Insurance Company
<PAGE>
POWER OF ATTORNEY
KNOW ALL BY THESE PRESENTS, that I, Joseph N. Cugini, a director of CUNA Mutual
Life Insurance Company, a life insurance company incorporated under the laws of
and domiciled in the State of Iowa, hereby appoint, authorize and empower Kevin
S. Thompson, Michael A. Murphy, or John M. Waggoner, severally, as my attorneys
and agents for me and in my name as director of CUNA Mutual Life Insurance
Company on behalf of CUNA Mutual Life Insurance Company and CUNA Mutual Life
Variable Account (or otherwise) with full power to prepare, review, execute,
deliver and file Post-Effective Amendments with the Securities and Exchange
Commission for the CUNA Mutual Life Variable Account, Registration No. 33-19718.
This Power of Attorney shall terminate at the end of my appointed term as
Director.
WITNESS MY HAND AND SEAL this 19th day of February, 1999.
/s/ Joseph N. Cugini
Joseph N. Cugini
Director, CUNA Mutual Life Insurance Company
<PAGE>
POWER OF ATTORNEY
KNOW ALL BY THESE PRESENTS, that I, Rudolf J. Hanley, a director of CUNA Mutual
Life Insurance Company, a life insurance company incorporated under the laws of
and domiciled in the State of Iowa, hereby appoint, authorize and empower Kevin
S. Thompson, Michael A. Murphy, or John M. Waggoner, severally, as my attorneys
and agents for me and in my name as director of CUNA Mutual Life Insurance
Company on behalf of CUNA Mutual Life Insurance Company and CUNA Mutual Life
Variable Account (or otherwise) with full power to prepare, review, execute,
deliver and file Post-Effective Amendments with the Securities and Exchange
Commission for the CUNA Mutual Life Variable Account, Registration No. 33-19718.
This Power of Attorney shall terminate at the end of my appointed term as
Director.
WITNESS MY HAND AND SEAL this 19th day of February, 1999.
/s/ Rudolf J. Hanley
Rudolf J. Hanley
Director, CUNA Mutual Life Insurance Company
<PAGE>
POWER OF ATTORNEY
KNOW ALL BY THESE PRESENTS, that I, Jerald R. Hinrichs, a director of CUNA
Mutual Life Insurance Company, a life insurance company incorporated under the
laws of and domiciled in the State of Iowa, hereby appoint, authorize and
empower Kevin S. Thompson, Michael A. Murphy, or John M. Waggoner, severally, as
my attorneys and agents for me and in my name as director of CUNA Mutual Life
Insurance Company on behalf of CUNA Mutual Life Insurance Company and CUNA
Mutual Life Variable Account (or otherwise) with full power to prepare, review,
execute, deliver and file Post-Effective Amendments with the Securities and
Exchange Commission for the CUNA Mutual Life Variable Account, Registration No.
33-19718. This Power of Attorney shall terminate at the end of my appointed term
as Director.
WITNESS MY HAND AND SEAL this 19th day of February, 1999.
/s/ Jerald R. Hinrichs
Jerald R. Hinrichs
Director, CUNA Mutual Life Insurance Company
<PAGE>
POWER OF ATTORNEY
KNOW ALL BY THESE PRESENTS, that I, Michael B. Kitchen, a director of CUNA
Mutual Life Insurance Company, a life insurance company incorporated under the
laws of and domiciled in the State of Iowa, hereby appoint, authorize and
empower Kevin S. Thompson, Michael A. Murphy, or John M. Waggoner, severally, as
my attorneys and agents for me and in my name as director of CUNA Mutual Life
Insurance Company on behalf of CUNA Mutual Life Insurance Company and CUNA
Mutual Life Variable Account (or otherwise) with full power to prepare, review,
execute, deliver and file Post-Effective Amendments with the Securities and
Exchange Commission for the CUNA Mutual Life Variable Account, Registration No.
33-19718. This Power of Attorney shall terminate at the end of my appointed term
as Director.
WITNESS MY HAND AND SEAL this 21st day of February, 1999.
/s/ Michael B. Kitchen
Michael B. Kitchen
Director, CUNA Mutual Life Insurance Company
<PAGE>
POWER OF ATTORNEY
KNOW ALL BY THESE PRESENTS, that I, Robert T. Lynch, a director of CUNA Mutual
Life Insurance Company, a life insurance company incorporated under the laws of
and domiciled in the State of Iowa, hereby appoint, authorize and empower Kevin
S. Thompson, Michael A. Murphy, or John M. Waggoner, severally, as my attorneys
and agents for me and in my name as director of CUNA Mutual Life Insurance
Company on behalf of CUNA Mutual Life Insurance Company and CUNA Mutual Life
Variable Account (or otherwise) with full power to prepare, review, execute,
deliver and file Post-Effective Amendments with the Securities and Exchange
Commission for the CUNA Mutual Life Variable Account, Registration No. 33-19718.
This Power of Attorney shall terminate at the end of my appointed term as
Director.
WITNESS MY HAND AND SEAL this 19th day of February, 1999.
/s/ Robert T. Lynch
Robert T. Lynch
Director, CUNA Mutual Life Insurance Company
<PAGE>
POWER OF ATTORNEY
KNOW ALL BY THESE PRESENTS, that I, Brian L. McDonnell, a director of CUNA
Mutual Life Insurance Company, a life insurance company incorporated under the
laws of and domiciled in the State of Iowa, hereby appoint, authorize and
empower Kevin S. Thompson, Michael A. Murphy, or John M. Waggoner, severally, as
my attorneys and agents for me and in my name as director of CUNA Mutual Life
Insurance Company on behalf of CUNA Mutual Life Insurance Company and CUNA
Mutual Life Variable Account (or otherwise) with full power to prepare, review,
execute, deliver and file Post-Effective Amendments with the Securities and
Exchange Commission for the CUNA Mutual Life Variable Account, Registration No.
33-19718. This Power of Attorney shall terminate at the end of my appointed term
as Director.
WITNESS MY HAND AND SEAL this 19th day of February, 1999.
/s/ Brian L. McDonnell
Brian L. McDonnell
Director, CUNA Mutual Life Insurance Company
<PAGE>
POWER OF ATTORNEY
KNOW ALL BY THESE PRESENTS, that I, C. Alan Peppers, a director of CUNA Mutual
Life Insurance Company, a life insurance company incorporated under the laws of
and domiciled in the State of Iowa, hereby appoint, authorize and empower Kevin
S. Thompson, Michael A. Murphy, or John M. Waggoner, severally, as my attorneys
and agents for me and in my name as director of CUNA Mutual Life Insurance
Company on behalf of CUNA Mutual Life Insurance Company and CUNA Mutual Life
Variable Account (or otherwise) with full power to prepare, review, execute,
deliver and file Post-Effective Amendments with the Securities and Exchange
Commission for the CUNA Mutual Life Variable Account, Registration No. 33-19718.
This Power of Attorney shall terminate at the end of my appointed term as
Director.
WITNESS MY HAND AND SEAL this 19th day of February, 1999.
/s/ C. Alan Peppers
C. Alan Peppers
Director, CUNA Mutual Life Insurance Company
<PAGE>
POWER OF ATTORNEY
KNOW ALL BY THESE PRESENTS, that I, Omer K. Reed, a director of CUNA Mutual Life
Insurance Company, a life insurance company incorporated under the laws of and
domiciled in the State of Iowa, hereby appoint, authorize and empower Kevin S.
Thompson, Michael A. Murphy, or John M. Waggoner, severally, as my attorneys and
agents for me and in my name as director of CUNA Mutual Life Insurance Company
on behalf of CUNA Mutual Life Insurance Company and CUNA Mutual Life Variable
Account (or otherwise) with full power to prepare, review, execute, deliver and
file Post-Effective Amendments with the Securities and Exchange Commission for
the CUNA Mutual Life Variable Account, Registration No. 33-19718. This Power of
Attorney shall terminate at the end of my appointed term as Director.
WITNESS MY HAND AND SEAL this 19th day of February, 1999.
/s/ Omer K. Reed
Omer K. Reed
Director, CUNA Mutual Life Insurance Company
<PAGE>
POWER OF ATTORNEY
KNOW ALL BY THESE PRESENTS, that I, Richard C. Robertson, a director of CUNA
Mutual Life Insurance Company, a life insurance company incorporated under the
laws of and domiciled in the State of Iowa, hereby appoint, authorize and
empower Kevin S. Thompson, Michael A. Murphy, or John M. Waggoner, severally, as
my attorneys and agents for me and in my name as director of CUNA Mutual Life
Insurance Company on behalf of CUNA Mutual Life Insurance Company and CUNA
Mutual Life Variable Account (or otherwise) with full power to prepare, review,
execute, deliver and file Post-Effective Amendments with the Securities and
Exchange Commission for the CUNA Mutual Life Variable Account, Registration No.
33-19718. This Power of Attorney shall terminate at the end of my appointed term
as Director.
WITNESS MY HAND AND SEAL this 19th day of February, 1999.
/s/ Richard C. Robertson
Richard C. Robertson
Director, CUNA Mutual Life Insurance Company
<PAGE>
POWER OF ATTORNEY
KNOW ALL BY THESE PRESENTS, that I, Rosemarie M. Shultz, a director of CUNA
Mutual Life Insurance Company, a life insurance company incorporated under the
laws of and domiciled in the State of Iowa, hereby appoint, authorize and
empower Kevin S. Thompson, Michael A. Murphy, or John M. Waggoner, severally, as
my attorneys and agents for me and in my name as director of CUNA Mutual Life
Insurance Company on behalf of CUNA Mutual Life Insurance Company and CUNA
Mutual Life Variable Account (or otherwise) with full power to prepare, review,
execute, deliver and file Post-Effective Amendments with the Securities and
Exchange Commission for the CUNA Mutual Life Variable Account, Registration No.
33-19718. This Power of Attorney shall terminate at the end of my appointed term
as Director.
WITNESS MY HAND AND SEAL this 19th day of February, 1999.
/s/ Rosemarie M. Shultz
Rosemarie M. Shultz
Director, CUNA Mutual Life Insurance Company
<PAGE>
POWER OF ATTORNEY
KNOW ALL BY THESE PRESENTS, that I, Neil A. Springer, a director of CUNA Mutual
Life Insurance Company, a life insurance company incorporated under the laws of
and domiciled in the State of Iowa, hereby appoint, authorize and empower Kevin
S. Thompson, Michael A. Murphy, or John M. Waggoner, severally, as my attorneys
and agents for me and in my name as director of CUNA Mutual Life Insurance
Company on behalf of CUNA Mutual Life Insurance Company and CUNA Mutual Life
Variable Account (or otherwise) with full power to prepare, review, execute,
deliver and file Post-Effective Amendments with the Securities and Exchange
Commission for the CUNA Mutual Life Variable Account, Registration No. 33-19718.
This Power of Attorney shall terminate at the end of my appointed term as
Director.
WITNESS MY HAND AND SEAL this 19th day of February, 1999.
/s/ Neil A. Springer
Neil A. Springer
Director, CUNA Mutual Life Insurance Company
<PAGE>
POWER OF ATTORNEY
KNOW ALL BY THESE PRESENTS, that I, Farouk D. G. Wang, a director of CUNA Mutual
Life Insurance Company, a life insurance company incorporated under the laws of
and domiciled in the State of Iowa, hereby appoint, authorize and empower Kevin
S. Thompson, Michael A. Murphy, or John M. Waggoner, severally, as my attorneys
and agents for me and in my name as director of CUNA Mutual Life Insurance
Company on behalf of CUNA Mutual Life Insurance Company and CUNA Mutual Life
Variable Account (or otherwise) with full power to prepare, review, execute,
deliver and file Post-Effective Amendments with the Securities and Exchange
Commission for the CUNA Mutual Life Variable Account, Registration No. 33-19718.
This Power of Attorney shall terminate at the end of my appointed term as
Director.
WITNESS MY HAND AND SEAL this 19th day of February, 1999.
/s/ Farouk D. G. Wang
Farouk D. G. Wang
Director, CUNA Mutual Life Insurance Company
<PAGE>
POWER OF ATTORNEY
KNOW ALL BY THESE PRESENTS, that I, Larry T. Wilson, a director of CUNA Mutual
Life Insurance Company, a life insurance company incorporated under the laws of
and domiciled in the State of Iowa, hereby appoint, authorize and empower Kevin
S. Thompson, Michael A. Murphy, or John M. Waggoner, severally, as my attorneys
and agents for me and in my name as director of CUNA Mutual Life Insurance
Company on behalf of CUNA Mutual Life Insurance Company and CUNA Mutual Life
Variable Account (or otherwise) with full power to prepare, review, execute,
deliver and file Post-Effective Amendments with the Securities and Exchange
Commission for the CUNA Mutual Life Variable Account, Registration No. 33-19718.
This Power of Attorney shall terminate at the end of my appointed term as
Director.
WITNESS MY HAND AND SEAL this 19th day of February, 1999.
/s/ Larry T. Wilson
Larry T. Wilson
Director, CUNA Mutual Life Insurance Company
