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[MERRILL LYNCH LOGO] MERRILL LYNCH LIFE INSURANCE COMPANY
Home Office: 425 West Capitol Avenue, Suite 1800,
Little Rock, Arkansas 72201
Variable Life Service Center: P.O. Box 9025,
Springfield, Massachusetts 01102-9025
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INSURED [RICHARD ROE]
POLICY NUMBER [SPECIMEN]
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE
POLICY
This policy is a legal contract between its owner
and us. Please read it carefully. In this policy,
the word you or your refers to the owner. We or us
refers to Merrill Lynch Life Insurance Company.
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Death Benefit We will pay the Death Benefit Proceeds to the
Provided By This Beneficiary after we receive Due Proof of Death of
Policy the Insured.
AT ISSUE, THE DEATH BENEFIT EQUALS THIS POLICY'S
INITIAL FACE AMOUNT. AFTERWARDS, THE DEATH BENEFIT
MAY INCREASE OR DECREASE ON ANY DAY, DEPENDING ON
THIS POLICY'S INVESTMENT RESULTS, BUT WILL NEVER BE
LESS THAN THE POLICY'S GUARANTEED MINIMUM DEATH
BENEFIT. DURING THE GUARANTEE PERIOD, WE CANNOT
TERMINATE THIS POLICY AND THE DEATH BENEFIT IT
PROVIDES, REGARDLESS OF INVESTMENT RESULTS, UNLESS
LOAN DEBT EXCEEDS THE SURRENDER VALUE. FOR A
DESCRIPTION OF THE GUARANTEED MINIMUM DEATH BENEFIT
AND GUARANTEE PERIOD, SEE THE GUARANTEED BENEFITS
RIDER. FOR DETAILS ON THE DEATH BENEFIT, INCLUDING
THE EFFECT OF POLICY LOANS, SEE POLICY BENEFITS FOR
THE OWNER AND INSURANCE BENEFITS.
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Cash Value Benefits During the Insured's lifetime while this policy is
Provided By in effect, we provide cash value benefits and other
This Policy important rights as described in this policy.
THE ACCOUNT VALUE MAY INCREASE OR DECREASE ON ANY
DAY, DEPENDING ON THE INVESTMENT RESULTS FOR THIS
POLICY. NO MINIMUM SURRENDER VALUE IS GUARANTEED.
SEE POLICY BENEFITS FOR THE OWNER FOR INFORMATION
ON THE SURRENDER VALUE.
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Investment Results You can allocate this policy's Account Value among
For This Policy the subaccounts. Each subaccount invests in a
designated Fund. The Account Value and Death
Benefit may increase or decrease depending on the
investment results of the subaccounts, the
allocation of the policy's Account Value and the
timing and amount of all Premium payments, loans,
withdrawals, charges and credits. See How Variable
Life Insurance Works for details.
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Right To Examine This policy may be returned on or before the end of
This Policy the free look period. That period ends 10 days
after you receive this policy. Mail or deliver this
policy to our Variable Life Service Center or to
your Financial Consultant. The returned policy will
be treated as if we never issued it. We will
promptly return any Premium paid.
[SIG] [SIG]
Secretary President
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Modified Single Premium Variable life insurance payable upon death of
Variable Life Insured. Modified single Premium.
Insurance Policy Non-participating. Investment results reflected in
policy benefits. Guaranteed Minimum Death Benefit
and Guarantee Period as described in Guaranteed
Benefits Rider.
<PAGE> 2
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POLICY CONTENTS PAGE
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Definitions 3
Policy Summary 5
Policy Schedules
Premium Information Policy Schedule 1
Other Policy Information Policy Schedule 2
Charges, Fees and Credits for This Policy Policy Schedule 3
Table of Attained Age Factors Policy Schedule 4
Table of Guaranteed Maximum Cost of Insurance Rates Policy Schedule 5
The Separate Account Policy Schedule 6
Introduction To This Policy 6
Premium Payments 7
How Variable Life Insurance Works 8
Charges and Credits 10
Policy Benefits For The Owner 11
Insurance Benefits 14
Choosing An Income Option 15
Other Important Information 18
A copy of the application and any riders and endorsements are at the back of
this policy.
2
<PAGE> 3
<TABLE>
<CAPTION>
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DEFINITIONS
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<S> <C>
Account Value The amount available for investment under this policy at any time. It is the sum of the value in each
of the subaccounts.
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Accumulation Unit A unit of measure used to compute the value of your interest in a subaccount.
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Attained Age The Insured's Issue Age plus the number of full policy years elapsed since the Policy Date.
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Beneficiary The person to whom we pay the Death Benefit Proceeds upon the Insured's death.
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Company Merrill Lynch Life Insurance Company, also referred to as "we" or "us".
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Contract Value The Account Value plus Loan Debt, less any accrued charges. The charges we accrue for are described in
Policy Schedule 3. Accrued charges are collected as of a Policy Processing Date and upon surrender.
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Death Benefit The greater of the Guaranteed Minimum Death Benefit described in the Guaranteed Benefits Rider and the
Variable Insurance Amount.
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Death Benefit Proceeds The amount payable to the Beneficiary upon the death of the Insured. It equals the Death Benefit less
any Loan Debt, plus the amount payable under any additional insurance rider.
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Due Proof of Death A certified copy of the death certificate, Beneficiary Statement and any additional paperwork necessary
to process payment of a death claim when the Insured dies.
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Fund An investment portfolio of an open-end management investment company or unit investment trust in which a
subaccount invests.
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Guaranteed Minimum A Death Benefit payable regardless of the investment results of the subaccounts. See the Guaranteed
Death Benefit Benefits Rider for details on the amount and duration of the guaranteed minimum death benefit.
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Guarantee Period The period during which we cannot terminate the policy, regardless of investment results, unless Loan
Debt exceeds the Surrender Value. It is not necessarily the date coverage under the policy ends. After
the end of the guarantee period, the policy will remain in effect unless the Net Surrender Value is
reduced to zero. See the Guaranteed Benefits Rider for details on the guarantee period.
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In Force Date The date when the underwriting process is complete, and the Initial Premium payment and any outstanding
policy amendments are received at our Variable Life Service Center.
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Issue Age The issue age is defined and shown in Policy Schedule 1.
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Issue Date The date this policy is issued at our Variable Life Service Center. The contestable and suicide periods
are measured from this date.
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Loan Debt The loan amount on the last policy anniversary (including capitalized loan interest), plus any new
loans since that anniversary, less any repayments since that anniversary, plus accrued loan interest.
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Net Amount at Risk The Death Benefit less Contract Value, adjusted for interest.
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Net Contract Value The Contract Value less any Loan Debt.
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Net Loan Cost The difference between loan interest charged and loan interest credited. See Policy Schedule 3.
</TABLE>
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<TABLE>
<CAPTION>
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DEFINITIONS (CONTINUED)
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<S> <C>
Net Surrender Value The Surrender Value minus any Loan Debt. This is the amount that we would pay upon surrender of the
policy.
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Policy Date The date used to determine Policy Processing Dates, policy years and anniversaries. The policy date may
or may not be the same as the Issue Date.
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Policy Processing Dates The days when we deduct charges or add credits, or determine the amount of a charge or credit. Policy
processing dates begin on the Policy Date and then occur on the same day of the month as the Policy
Date at the end of each successive Policy Processing Period.
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Policy Processing Period The period between successive Policy Processing Dates. The policy processing period for this policy is
described in Policy Schedule 3.
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Premiums The money paid into this policy.
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Separate Account This policy is funded by a separate account of the Company. The separate account has multiple
subaccounts, which invest in shares or units of the Funds. The separate account and the subaccounts
currently available with this policy are identified in Policy Schedule 6.
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Surrender Value The Contract Value less any applicable surrender charges. Surrender charges for this policy, if any,
are shown in Policy Schedule 3.
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Valuation Period Each business day together with any non-business days before it. A business day is any day the New York
Stock Exchange (NYSE) is open for trading, or any day on which the SEC otherwise requires that the
policy's Funds be valued. We calculate the value of an Accumulation Unit for each subaccount at the
end of each valuation period.
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Variable Insurance The Contract Value multiplied by the appropriate Attained Age Factor shown or described in Policy
Amount Schedule 4.
</TABLE>
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Policy Summary
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<TABLE>
<S> <C>
POLICY NUMBER [SPECIMEN]
OWNER [RICHARD ROE]
ISSUE DATE [February 10, 2001]
POLICY DATE [January 15, 2001]
INSURED [RICHARD ROE]
ISSUE AGE/SEX [35 Male]
UNDERWRITING CLASS [Medical Non-Smoker]
INITIAL PREMIUM [$50,000.00]
INITIAL FACE AMOUNT [$214,520]
INITIAL GUARANTEED
MINIMUM DEATH BENEFIT [$214,520]
INITIAL GUARANTEE PERIOD [65.00 years]
</TABLE>
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POLICY SCHEDULE 1
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<TABLE>
<S> <C>
INSURED [RICHARD ROE]
POLICY NUMBER [SPECIMEN]
Issue Age [35] (The Insured's age on his/her birthday nearest the Policy Date)
Initial Premium [$50,000]
Allocation of Initial Premium We allocate the Initial Premium to the Merrill Lynch
Domestic Money Market subaccount until 14 days following the In
Force Date. No transfers are allowed during this period.
[At the end of this period, we will
reallocate the Account Value among the
subaccounts as follows:
SUBACCOUNT/ALLOCATION PERCENTAGE
[Merrill Lynch Basic Value Focus Fund] [10%]
[Merrill Lynch Domestic Money Market Fund] [lO%]
[Merrill Lynch Fundamental Growth Fund] [5O%]
[Alliance Premier Growth Portfolio] [20%]
[Delaware Trend Series] [10%]]
Additional Premiums Permitted in policy year(s) 1
Number of additional Premium payments permitted 4
Maximum Attained Age of Insured at time of payment 80
Minimum additional Premium $2,000
The maximum additional premium permitted in a policy year is
subject to our underwriting requirements and limits.
Allocation of Additional Once we complete any necessary underwriting and accept your
Premiums Premium payment, we allocate the payment in accordance with your
instructions in effect as of that date, unless you provide other
instructions at the time of payment.
Maximum Number of 5
Subaccount Allocations
at One Time
</TABLE>
SCHD1 Policy Schedule I
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POLICY SCHEDULE 1
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<TABLE>
<S> <C>
INSURED [Richard Roe]
POLICY NUMBER [SPECIMEN]
Issue age [35] (The Insured's age on his/her birthday nearest the Policy Date)
Initial Premium [$50,000]
Allocation of Initial Premium We allocate the Initial Premium to the Merrill Lynch Domestic
Money Market subaccount until 14 days following the In Force
Date. No transfers are allowed during this period.
[The Account Value will remain in the Merrill Lynch Domestic
Money Market subaccount until we receive other instructions. We
have received no reallocation instructions as of the Issue Date.]
Additional Premiums Permitted in policy year(s) 1
Number of additional Premium payments permitted 4
Maximum Attained Age of Insured at time of payment 80
Minimum additional Premium $2,000
The maximum additional premium permitted in a policy year is
subject to our underwriting requirements and limits.
Allocation of Additional Once we complete any necessary underwriting and accept your
Premiums Premium payment, we allocate the payment in accordance with your
instructions in effect as of that date, unless you provide other
instructions at the time of payment.
[If you do not provide other instructions and there are no allocation
instructions in effect, additional Premiums will be allocated to the
Merrill Lynch Domestic Money Market subaccount.]
Maximum Number of 5
Subaccount Allocations
at One Time
</TABLE>
SCHD1 Policy Schedule 1
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POLICY SCHEDULE 2
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INSURED [RICHARD ROE]
POLICY NUMBER [SPECIMEN]
<TABLE>
<CAPTION>
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<S> <C>
Transfers Minimum transfer amount $100
Maximum number of transfer each policy year without 12
charge (For amount of transfer charge, see Policy
Schedule 3)
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Policy Loans Minimum loan amount $500
Minimum repayment amount $500 or the Loan Debt,
if less
Loan Value 90% of the Surrender
Value
Maximum loan amount Loan Value less Loan
Debt
Loan interest charge Maximum 6.00% annual
Loan interest credit 4.00% annual
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Payment Required to 10% of Contract Value
Prevent Termination Due
To Excess Loan Debt
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Partial Withdrawals Permitted starting in Policy year 2
Number permitted per policy year 6
Minimum amount $1,000
Maximum amount Least of:
(i) 80% of Net
Surrender Value;
(ii) Loan Value less
Loan Debt; or
(iii) the amount that
would reduce the face
amount to the minimum
for which we would then
issue this policy
Maximum Attained Age at withdrawal None
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Grace Amount Three times the charges due on the Policy Processing
Date on which we determined that the Surrender Value
was insufficient, plus the amount by which the Surrender
Value was insufficient on that date.
</TABLE>
SCHD2 Policy Schedule 2
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POLICY SCHEDULE 2 (CONTINUED)
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INSURED [RICHARD ROE]
POLICY NUMBER [SPECIMEN]
<TABLE>
<CAPTION>
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<S> <C>
Reinstatement Premium The minimum premium for which we would then issue
this policy for the current face amount based on the
Insured's Attained Age and underwriting class as of the
effective date of the reinstated policy.
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Interest Rate Used in 4% per year
Our Computations
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Mortality Table Used in [1980 CSO Male Non-Smoker Mortality Table]
Our Computations
</TABLE>
SCHD2 Policy Schedule 2
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POLICY SCHEDULE 3
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INSURED [RICHARD ROE]
POLICY NUMBER [SPECIMEN]
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POLICY PROCESSING PERIOD 3 MONTHS
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<TABLE>
<CAPTION>
CHARGES, FEES AND CREDITS FOR THIS POLICY
DEDUCTIONS TO DETERMINE SUBACCOUNT ACCUMULATION UNIT VALUE
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<S> <C> <C>
TYPE OF CHARGE POLICY YEARS AMOUNT OF CHARGE
-------------- ------------ ----------------
ASSET BASED Charge(1) All Daily charge of .003699%
(1.35% annually)
DEDUCTIONS FROM ACCOUNT VALUE
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TYPE OF CHARGE POLICY YEARS AMOUNT OF CHARGE
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EXPENSE CHARGE(2) 1-10 Quarterly charge of .1125%
(.45% annually)
Cost of Insurance All Quarterly Gtd. Max.
Charge(3) (until Insured's Attained Age 100) Cost of Insurance Rates
(see Policy Schedule 5)
Net Loan Cost(4) Any Policy Year Loan Maximum 2.00%
Debt Exists annually
CREDITS TO ACCOUNT VALUE
------------------------
TYPE OF CREDIT POLICY YEARS AMOUNT OF CREDIT
-------------- ---------------- ----------------
Asset-Based Credit(5) 11 + Quarterly credit of .1125%
(.45% annually)
</TABLE>
(1)Deducted daily from the investment results of each subaccount.
(2)Calculated on the Policy Date and on each subsequent Policy
Processing Date by multiplying the quarterly charge by the Contract
Value. Deducted in arrears from each subaccount on a pro rata basis on
the Policy Processing Date following the calculation date. Accrued
for daily during the period between Policy Processing Dates.
(3)Calculated on the Policy Date and on each subsequent Policy
Processing Date by multiplying the appropriate guaranteed maximum cost
of insurance rate by the net amount at risk divided by 1000. Deducted
in arrears from each subaccount on a pro rata basis on the Policy
Processing Date following the calculation date. Accrued for daily
during the period between Policy Processing Dates.
(4)Calculated on the policy anniversary by multiplying the amount of
the Loan Debt as of the last policy anniversary (adjusted for loans
and repayments since that anniversary) by the annual charge. Deducted
from each subaccount on a pro rata basis on the policy anniversary.
Accrued for daily since the Policy Date or last policy anniversary.
(5)Calculated on each Policy Processing Date, beginning on the first
Policy Processing Date following the tenth policy anniversary, by
multiplying the quarterly credit by the Account Value. Added to each
subaccount on a pro rata basis on the calculation date.
SCHED3 Policy Schedule 3
<PAGE> 11
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POLICY SCHEDULE 3 (CONTINUED)
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INSURED [RICHARD ROE]
POLICY NUMBER [SPECIMEN]
SURRENDER CHARGE
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<TABLE>
<CAPTION>
The surrender charge consists of a contingent deferred sales load
and an unamortized expense charge.
<S> <C>
Contingent The contingent deferred sales load is calculated as a
Deferred percentage of each Premium withdrawn or surrendered
Sales during the first 10 years following payment of that
Load Premium in accordance with the schedule below.
Unamortized The unamortized expense charge is calculated as a
Expense Charge percentage of each Premium withdrawn or surrendered
during the first 10 years following payment of
that Premium in accordance with the schedule
below.
</TABLE>
<TABLE>
<CAPTION>
Completed
Years Since
Premium Payment 1 2 3 4 5 6 7 8 9 10
--------------- - - - - - - - - - --
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Contingent Deferred 6 5.4 4.8 4.2 3.6 3 2.4 1.8 1.2 0.6
Sales Load (% of
Premium Withdrawn)
Unamortized Expense 4.0 3.6 3.2 2.8 2.4 2.0 1.6 1.2 0.8 0.4
Charge (% of
Premium Withdrawn)
</TABLE>
Gain is never subject to a surrender charge. "Gain" is equal
to the Contract Value less Premiums remaining in the policy.
To calculate the Surrender Value, we determine the amount of
any surrender charge payable by assuming gain is withdrawn
first, followed by Premiums on a FIFO basis.
To determine the amount of any surrender charge applicable to
a partial withdrawal and Premiums remaining in the policy,
unloaned gain is assumed to be withdrawn first, followed by
Premiums on a FIFO basis. For this purpose, "unloaned gain" is
equal to the Contract Value less the Premiums remaining in
the policy, less loan interest credited to the loan collateral
account that has not been repaid. We deduct the amount of
the partial withdrawal and any applicable surrender charge
from the Account Value.
<TABLE>
<CAPTION>
OTHER CHARGES DEDUCTED FROM ACCOUNT VALUE
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<S> <C>
Transfer Charge $25 for Each Transfer in Excess of 12 in a Policy Year
Charge to exchange Maximum $500
Policy for fixed life
insurance
Change of Insured Maximum $500
charge
</TABLE>
SCHED3 Policy Schedule 3
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POLICY SCHEDULE 4
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INSURED [RICHARD ROE]
POLICY NUMBER [SPECIMEN]
Table of Attained Age Factors [(Male)]
(Per $1.00 of Contract Value)
<TABLE>
<CAPTION>
Age Factor Age Factor Age Factor Age Factor
<S> <C> <C> <C> <C> <C> <C> <C>
35 [4.29039] 52 [2.45939] 69 [1.54718] 86 [1.16997]
36 [4.14774] 53 [2.38464] 70 [1.51303] 87 [1.15829]
37 [4.00987] 54 [2.31290] 71 [1.48053] 88 [1.14738]
38 [3.87704] 55 [2.24426] 72 [1.45013] 89 [1.13702]
39 [3.74894] 56 [2.17852] 73 [1.42102] 90 [1.12701]
40 [3.62573] 57 [2.11567] 74 [1.39368] 91 [1.11711]
41 [3.50673] 58 [2.05549] 75 [1.36814] 92 [1.10707]
42 [3.39239] 59 [1.99778] 76 [1.34424] 93 [1.09662]
43 [3.28210] 60 [1.94258] 77 [1.32183] 94 [1.08538]
44 [3.17618] 61 [1.88979] 78 [1.30076] 95 [1.07313]
45 [3.07406] 62 [1.83932] 79 [1.28082] 96 [1.05986]
46 [2.97576] 63 [1.79111] 80 [1.26189] 97 [1.04581]
47 [2.88123] 64 [1.74519] 81 [1.24393] 98 [1.03190]
48 [2.79020] 65 [1.70152] 82 [1.22696] 99 [1.02207]
49 [2.70263] 66 [1.66003] 83 [1.21103] 100 [1.00000]
50 [2.61842] 67 [1.62058] 84 [1.19624]
51 [2.53732] 68 [1.58301] 85 [1.18257]
</TABLE>
Factors shown are based on the Insured's Attained Age as of each
policy anniversary.
On Policy Processing Dates other than policy anniversaries, we
determine the Factor in a manner consistent with the methodology
used to determine the Factors listed above, with allowance for
elapsed time.
The Factor on a date during a Policy Processing Period is
determined by interpolating between the factors for the Policy
Processing Date immediately preceding and immediately following
that date.
SCHD4 Policy Schedule 4
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POLICY SCHEDULE 5
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INSURED [RICHARD ROE]
POLICY NUMBER [SPECIMEN]
Table of Guaranteed Maximum Cost of Insurance Rates [(Male)]
(Attained Age Quarterly Rates per $1,000 of Net Amount at Risk)
<TABLE>
<CAPTION>
Age Rate Age Rate Age Rate Age Rate
<S> <C> <C> <C> <C> <C> <C> <C>
35 [0.42] 52 [1.47] 69 [8.00] 86 [45.42]
36 [0.44] 53 [1.61] 70 [8.85] 87 [49.84]
37 [0.47] 54 [1.78] 71 [9.97] 88 [54.38]
38 [0.50] 55 [1.96] 72 [10.93] 89 [59.13]
39 [0.54] 56 [2.17] 73 [12.22] 90 [64.15]
40 [0.57] 57 [2.39] 74 [13.69] 91 [69.56]
41 [0.62] 58 [2.62] 75 [15.27] 92 [75.56]
42 [0.66] 59 [2.89] 76 [16.96] 93 [82.46]
43 [0.72] 60 [3.19] 77 [18.76] 94 [91.57]
44 [0.77] 61 [3.52] 78 [20.64] 95 [105.29]
45 [0.83] 62 [3.89] 79 [22.66] 96 [129.02]
46 [0.90] 63 [4.32] 80 [24.89] 97 [177.72]
47 [0.97] 64 [4.81] 81 [27.41] 98 [307.64]
48 [1.05] 65 [5.35] 82 [30.29] 99 [333.33]
49 [1.14] 66 [5.94] 83 [33.59]
50 [1.23] 67 [6.57] 84 [37.25]
51 [1.34] 68 [7.25] 85 [41.22]
</TABLE>
Rates shown are based on the Insured's Attained Age as of each
policy anniversary. They do not change during a Policy Year.
SCHD5 Policy Schedule 5
<PAGE> 14
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POLICY SCHEDULE 6
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INSURED [RICHARD ROE]
POLICY NUMBER [SPECIMEN]
THE SEPARATE ACCOUNT
The Separate Account is the Merrill Lynch Variable Life
Separate Account, which is governed by the laws of Arkansas,
our state of domicile. The Separate Account is divided into
subaccounts that correspond to the following investment
portfolios:
[Merrill Lynch Variable Series Funds, Inc.]
[Merrill Lynch Basic Value Focus Fund]
[Merrill Lynch Domestic Money Market Fund]
[Merrill Lynch Fundamental Growth Focus Fund]
[Merrill Lynch Government Bond Fund]
[Merrill Lynch Index 500 Fund]
[AIM Variable Insurance Funds]
[AIM V.I. International Equity Fund]
[AIM V.I. Value Fund]
[Alliance Variable Products Series Fund, Inc.]
[Growth and Income Portfolio]
[Premier Growth Portfolio]
[Davis Variable Account Fund, Inc.]
[Davis Value Portfolio]
[Delaware Group Premium Fund]
[Trend Series]
[Mercury HW Variable Trust]
[Mercury HW International Value VIP Portfolio]
[MFS Variable Insurance Trust]
[MFS Emerging Growth Series]
[MFS Growth with Income Series]
[PIMCO Variable Insurance Trust]
[Total Return Bond Portfolio]
[Seligman Portfolios, Inc.]
[Seligman Small-Cap Value Portfolio]
[Van Kampen Life Lnvestment Trust]
[Emerging Growth Portfolio]
SCHD6 Policy Schedule 6
<PAGE> 15
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INTRODUCTION TO THIS POLICY
This policy insures the life of the Insured. The
Insured is also the owner of this policy unless
another owner has been named in the application.
The owner is shown in the Policy Summary. The owner
has the rights and options described in this
policy.
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This Policy Is A This policy is a contract between you (its owner)
Contract and us. We provide insurance coverage and other
benefits as stated in this policy. We do this upon
our acceptance of a completed application and receipt
of the Initial Premium payment.
Whenever we use the word policy, we mean the
entire contract. The entire contract consists of:
- the basic policy;
- the attached copy of the initial application;
- all subsequent applications to change the basic
policy; and
- any riders or endorsements.
Riders and endorsements add provisions or change
the terms of the basic policy.
At any time we may make such changes in this
policy as are required to make it conform with
any law, regulation, or ruling issued by a
government agency.
Only our President, a Vice President, Secretary,
or Assistant Secretary may change the policy. Any
change must be in writing.
To be effective, all notices, changes and choices
you make under this policy must be in writing,
signed and received by us at our Variable Life
Service Center. If you provide authorization, you
or your authorized representative may make
transfers, loans and partial withdrawals and give
Premium allocation instructions for additional
Premium payments by telephone. The Company
reserves the right to terminate or modify
telephone privileges at any time.
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Right To Name A You may name a contingent owner. If you name a
Contingent Owner contingent owner and you die while this policy is in
effect, ownership of the policy would then pass to
the contingent owner. If there is no contingent
owner, ownership would pass to your estate.
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The Beneficiary We pay the proceeds to the primary Beneficiary.
If the primary Beneficiary (whether or not
irrevocable) has died, we pay the proceeds to any
contingent Beneficiary. If there is no surviving
Beneficiary, we pay the proceeds to the estate of
the Insured.
You can name two or more persons as primary
Beneficiaries or contingent Beneficiaries. In
either case we assume the proceeds are to be paid
in equal shares to the surviving Beneficiaries. You
can specify payment other than in equal shares.
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Change of Owner or During the Insured's lifetime you can transfer
Beneficiary ownership of this policy and change the Beneficiary
(unless you have designated the primary Beneficiary
as irrevocable). To do this, you must send us written
notice of the change in a form satisfactory to us. If
you designate an irrevocable Beneficiary, you and the
irrevocable Beneficiary must act together to exercise
the rights and options under this policy. Any change
takes effect as of the day you sign the notice. The
change does not affect any payment made or action
taken by us before receipt of the notice of the
change at our Variable Life Service Center. We are
not responsible for the validity of the change.
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Sending Notice to Us Any written notices or requests should be sent to
our Variable Life Service Center. The address is on
the front of this policy.
MSP00 6
<PAGE> 16
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PREMIUM PAYMENTS
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When To Pay We require payment of the Initial Premium to put
Premiums this policy in effect. The amount of the Initial
Premium is shown in Policy Schedule 1. After 14
days following the In Force date, you may pay
additional Premiums under this policy. See
Additional Premiums.
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Where To Pay Pay the Premiums to our Variable Life Service
Premiums Center. On request we will forward you a receipt
signed by our Treasurer.
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Allocation of Initial Information on the Initial Premium allocation is
Premium shown in Policy Schedule 1. The maximum number of
subaccounts to which you may allocate the Initial
Premium at any one time is also shown in Policy
Schedule 1.
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Additional Premiums After 14 days following the In Force date, you may
pay additional Premiums, subject to the
restrictions shown in Policy Schedule 1. They will
also be subject to evidence of insurability based
on our underwriting rules. Unless you specify
otherwise, if there is any Loan Debt, we first
apply any additional Premium paid as a loan
repayment with any excess applied as an additional
Premium. See Policy Loans.
We allocate additional Premiums as of the date we
receive and accept such payments. Additional
Premiums are allocated among subaccounts as
described in Policy Schedule 1. We reserve the
right to return any additional Premiums that would
cause this policy to fail to qualify as life
insurance under applicable tax laws as interpreted
by us.
Effect of Additional Premium Payments on Face
Amount and Policy Guarantees
See the Guaranteed Benefits Rider.
MSP00 7
<PAGE> 17
-------------------------------------------------------------------------------
HOW VARIABLE LIFE INSURANCE WORKS
-------------------------------------------------------------------------------
The Separate Account We provide the variable life insurance benefits
under this policy through investments we make
in the Separate Account designated in Policy
Schedule 6. We keep this account separate from our
general account and any other separate accounts. We
use it to support variable life insurance policies
and may use it for other purposes permitted by
applicable laws and regulations. We own the assets
in the Separate Account. Assets equal to the
reserves and other liabilities of the account won't
be charged with liabilities that arise from any
other business we conduct. But we may transfer to
our general account assets that exceed the reserves
and other liabilities of the Separate Account.
The Separate Account is registered as a unit
investment trust with the Securities and Exchange
Commission ("SEC") under the Investment Company Act
of 1940 (the "1940 Act"). The Separate Account is
also governed by State laws as designated in Policy
Schedule 6.
-------------------------------------------------------------------------------
Subaccounts The Separate Account is divided into the
subaccounts shown in Policy Schedule 6. Each
subaccount invests in a designated Fund.
-------------------------------------------------------------------------------
Value in Each On each business day, we calculate the value
Subaccount in each subaccount as follows:
(1) We take the number of the Accumulation Units
in the subaccount at the end of the preceding
Valuation Period and multiply it by the
subaccount's Accumulation Unit Value on that
business day.
(2) We add to (1) any Premiums allocated to the
subaccount during the current Valuation
Period and subtract from (1) any Premium
sales load deducted before allocation. The
amount of the Premium sales load, if any, is
shown in Policy Schedule 3.
(3) We add to (2) any loan repayments that are
allocated to the subaccount and subtract from
(2) any loans that are taken from the
subaccount during the current Valuation
Period.
(4) We add to (3) any amounts transferred to the
subaccount and subtract from (3) any amounts
transferred from the subaccount (including
any applicable transfer charge) and any
amounts withdrawn from the subaccount
(including any applicable surrender charge)
since the end of the preceding Valuation
Period. The amount of any transfer charge or
surrender charge is shown in Policy Schedule
3.
(5) If a Policy Processing Date occurs during the
Valuation Period, we subtract the charges
allocated to the subaccount from (4) and add
the credits allocated to the subaccount to
(4). The charges and credits are shown in
Policy Schedule 3 under, respectively,
"Deductions from Account Value" and "Credits
to Account Value". We also subtract any other
applicable charges shown in Policy Schedule 3
under "Other Charges Deducted from Account
Value", which are allocated to the
subaccount.
(6) If the Account Value remaining after (5) is
negative, we calculate the Net Surrender
Value, and then set the value in each
subaccount to zero. The amount by which the
Net Surrender Value is negative is considered
an overdue charge.
MSP00
8
<PAGE> 18
-------------------------------------------------------------------------------
Number of For each subaccount the number of Accumulation Units
Accumulation Units is the sum of:
Each Premium, transfer or loan repayment allocated
to the subaccount
Divided By
The value of an Accumulation Unit for that
subaccount for the Valuation Period in which we
received the Premium, transfer or loan repayment.
We then reduce the number of units for transfers,
withdrawals, loans and charges deducted from each
subaccount. We increase the number of units for
credits added to each subaccount. We make such
reductions and additions as of the Valuation
Period in which the transfer, withdrawal, loan,
charge or credit is effective.
-------------------------------------------------------------------------------
Value of Each For each subaccount, we set the value of an
Accumulation Unit Accumulation Unit (the "Accumulation Unit Value")
when we established the subaccount. The value may
increase or decrease from one Valuation Period to
the next. For any Valuation Period the Accumulation
Unit Value is:
The Accumulation Unit Value for the last prior
Valuation Period
Multiplied By
The Net Investment Factor for that subaccount for
the current Valuation Period.
-------------------------------------------------------------------------------
Net Investment Factor This is an index used to measure the investment
performance of a subaccount from one Valuation
Period to the next. For any subaccount, we
determine the Net Investment Factor by dividing the
value of the assets of the subaccount for that
Valuation Period by the value of the assets of the
subaccount for the preceding Valuation Period. We
subtract from that result the daily equivalent of
any asset-based charge for the Valuation Period, as
shown on Policy Schedule 3. We also take
reinvestment of dividends and capital gains and
losses into account when we determine the Net
Investment Factor.
We may adjust the Net Investment Factor to make
provision for any change in tax law that requires
us to pay tax on earnings in the Separate Account
and any charge that may be assessed against the
Separate Account for assessments of federal premium
taxes or federal, state or local excise, profits or
income taxes measured by or attributable to the
receipt of Premiums.
-------------------------------------------------------------------------------
Changes Within The We may from time to time make additional
Separate Account subaccounts available. We also have the right,
subject to obtaining any necessary regulatory
approvals, to eliminate subaccounts from the
Separate Account, to combine two or more
subaccounts, or to substitute a new portfolio for the
portfolio in which a subaccount invests. We reserve
the right to transfer assets of the Separate
Account or of a subaccount, which we determine to
be associated with the class of policies to which
this policy belongs, to another separate account or
subaccount.
When permitted by law, we reserve the right to:
- deregister the Separate Account under the 1940
Act;
- make any changes required by the 1940 Act;
- operate the Separate Account as a management
company under the 1940 Act or in any other form of
organization permitted by applicable law;
- reserve, restrict or eliminate any voting rights
of policyowners, or other persons who have voting
rights as to the Separate Account;
- combine the Separate Account with other separate
accounts; and
- create a new separate account.
MSP00
9
<PAGE> 19
-------------------------------------------------------------------------------
CHARGES AND CREDITS
-------------------------------------------------------------------------------
Charges and Credits We deduct charges to help us cover our costs and
expenses for sales and administration of the
policy, and for taxes paid, services provided and
risks assumed under the policy. The specific
charges that apply to this policy, the amount of
each charge, how it is determined and when it is
collected are shown in Policy Schedule 3.
The charges include a mortality, or "cost of
insurance" charge. We may use cost of insurance
rates that produce a lower cost of insurance
charge than would be produced using the guaranteed
maximum cost of insurance rates shown in Policy
Schedule 5. Any change in the current rates will
be made as described in OTHER IMPORTANT
INFORMATION, under Changes in Policy Cost Factors.
We also may add a credit to the Account Value. If
we do so, the amount of the credit, how it is
determined and when it is credited is shown in
Policy Schedule 3.
Any applicable charge is deducted from each
subaccount in proportion to the Account Value in
that subaccount. Any credit is added to each
subaccount in proportion to the Account Value in
that subaccount.
MSP00
10
<PAGE> 20
-------------------------------------------------------------------------------
POLICY BENEFITS FOR THE OWNER
There are important rights and benefits that are
available to you during the Insured's lifetime.
-------------------------------------------------------------------------------
Owner's Right to You may transfer all or part of the Account Value
Transfer among the subaccounts. To make a transfer, you
Account Value must provide us with satisfactory notice at our
Variable Life Service Center. The transfer takes
effect when we receive the notice. The number of
transfers allowed without charge each policy year,
and the minimum amount that may be transferred
from any subaccount in any transaction, are shown
in Policy Schedule 2. We reserve the right to
charge for each additional transfer, as shown in
Policy Schedule 3.
You select the subaccounts to which to allocate a
transfer. The maximum number of subaccounts in
which you may have Account Value at any one time
is shown in Policy Schedule I.
An excessive number of transfers, including
short-term "market timing" transfers, may adversely
affect the performance of the underlying portfolio
in which a subaccount invests. If, in our sole
opinion, a pattern of an excessive number of
transfers develops for a policy, we reserve the
right not to process a transfer request. We also
reserve the right not to process a transfer
request when the sale or purchase of shares or units
of a Fund is not reasonably practicable due to
actions taken or limitations imposed by the
underlying fund.
-------------------------------------------------------------------------------
Policy Loans You may use this policy as collateral to borrow
money from us. The policy will be the only security
we require for the loan. You may take a loan at any
time this policy is in effect. You may repay all or
part of the loan at any time while the Insured is
living. Applicable minimum and maximum amounts for
any loan or repayment are shown in Policy Schedule 2.
Loan Collateral Account
When you take a loan, we transfer the amount of the
loan from the Account Value and hold it as collateral
in our general account ("loan collateral account").
When you repay a loan, we transfer the amount of the
repayment from the loan collateral account to the
Account Value.
Loan Interest Charged
We accrue interest on any Loan Debt as of the
beginning of each policy year and on any new loan
taken during the policy year. Loan repayments reduce
the amount of Loan Debt to which interest applies.
The maximum rate of loan interest charged is shown in
Policy Schedule 2. Interest accrues each day and is
due at the end of each policy year. If interest isn't
paid when due, it is capitalized (that is, considered
a new loan) and we add it to the loan amount.
Loan Interest Credited
We credit interest on the amount held in the loan
collateral account at the beginning of each policy
year and on any amounts transferred to the loan
collateral account during the policy year. Loan
repayments reduce the amount in the loan collateral
account to which interest is credited. The rate we
credit to the loan collateral account is shown in
Policy Schedule 2.
Net Loan Cost
The difference between the loan interest charge
accrued and the loan interest credit accrued is
called the "net loan cost". The net loan cost accrues
each day and reduces the amount available upon
surrender of the policy. On each policy anniversary,
we reduce the Account Value by the net loan cost and
add it to the amount held in the loan collateral
account. The maximum net loan cost is shown in Policy
Schedule 3.
MSP00
11
<PAGE> 21
--------------------------------------------------------------------------------
Policy Loans Allocation of Loans and Repayments
(Continued) You may select the subaccount(s) from
which to take a loan, and the
subaccount(s) to which to allocate a
repayment. If you do not specify, we
allocate the loan or repayment in
proportion to your Account Value in
each subaccount as of the date of the
loan or repayment.
Effect on Death Benefit and Surrender
Value
A loan, whether repaid or not, has a
permanent effect on a policy's
Surrender Value, and may have a
permanent effect on the Death Benefit.
Amounts held in the loan collateral
account do not participate in the
performance of the Separate Account.
Upon a surrender of the policy, we
deduct the amount of any Loan Debt from
the Surrender Value. Upon the Insured's
death, we deduct the Loan Debt from the
Death Benefit.
Termination Due to Excess Loan Debt
If the Loan Debt exceeds the Surrender
Value on a Policy Processing Date, we
will terminate this policy. We will not
do this, however, until 61 days after we
mail notice of our intent to terminate.
To avoid termination, you must pay us at
least the "Payment Required to Prevent
Termination Due to Excess Loan Debt, "
shown on Policy Schedule 2. We will
notify, at their last known addresses,
you and anyone who holds this policy as
collateral.
If the Insured dies during the 61-day
period, we will pay the Beneficiary the
insurance benefits under the policy as
described in Proceeds Payable to the
Beneficiary.
Effect of Loan Debt on Policy Guarantees
See the Guaranteed Benefits Rider.
--------------------------------------------------------------------------------
Assignment - Using You can assign this policy as collateral
This Policy As security for a loan or other obligation.
Collateral Security This does not change the ownership. But
your rights and any Beneficiary's rights
are subject to the terms of the
assignment. To make or release an
assignment, we must receive written
notice, satisfactory to us, at our
Variable Life Service Center. We are
not responsible for the validity of any
assignment.
--------------------------------------------------------------------------------
Withdrawals You have the right to make partial
withdrawals, subject to the requirements
shown in Policy Schedule 2. A partial
withdrawal may not be repaid. We may
apply a surrender charge to any
withdrawal. The amount of any such
charge and when it would apply is shown
in Policy Schedule 3.
Requesting A Partial Withdrawal
The request for a partial withdrawal
must be in a form satisfactory to us.
The effective date of the withdrawal is
the date we receive the request at our
Variable Life Service Center.
Effect of A Partial Withdrawal on
Account Value
As of the effective date of a partial
withdrawal, we reduce the Account Value
by the amount of the withdrawal and any
applicable surrender charge. We reduce
the value of each subaccount in
accordance with your instructions. If
we receive no instructions, we reduce
the value in each subaccount in
proportion to your Account Value in each
subaccount as of the effective date of
the partial withdrawal.
Effect of the Withdrawals on Face Amount
and Policy Guarantees
See the Guaranteed Benefits Rider.
MSP00 12
<PAGE> 22
-------------------------------------------------------------------------------
Surrender Value The Surrender Value is equal to the
Contract Value less any applicable
surrender charge. The Contract Value
equals the Account Value plus Loan Debt,
minus any accrued charges. Surrender
charges and charges we accrue for are
shown in policy Schedule 3.
-------------------------------------------------------------------------------
Surrendering You can surrender this policy at any
to Receive time and receive its Net Surrender
the Net Surrender Value Value. The Net Surrender Value is equal
to the Surrender Value less any Loan
Debt. We will determine the Net
Surrender Value as of the date we
receive this policy and the signed
request at our Variable Life Service
Center.
The surrender will take effect on the
date you send this policy to our
Variable Life Service Center with a
signed request for surrender in a form
satisfactory to us. You may receive the
Net Surrender Value in cash or under one
or more income options. See Choosing An
Income Option.
-------------------------------------------------------------------------------
Grace Period After the end of the Guarantee Period
(see the Guaranteed Benefits Rider), we
will terminate this policy on any
Policy Processing Date if the Surrender
Value on such Policy Processing Date is
negative. We will consider this
negative Surrender Value an overdue
charge as of such Policy Processing
Date.
We will not terminate this policy due to
a negative Surrender Value until the end
of the grace period. The grace period
will end 61 days after we mail you a
notice that we may terminate this policy
because of insufficient Surrender Value.
To avoid termination, you must pay us at
least the grace amount. The grace amount
is defined in Policy Schedule 2. We will
specify this amount on the notice we
send.
If the Insured dies during the grace
period, we will pay the Beneficiary the
insurance benefits under the policy as
described in Proceeds Payable to The
Beneficiary.
We can also terminate this policy at any
time, even during the Guarantee Period,
if Loan Debt exceeds the Surrender
Value. See Termination Due to Excess
Loan Debt.
-------------------------------------------------------------------------------
How to Reinstate If we have terminated this policy at the
This Policy end of the grace period, you may
reinstate it while the Insured is alive
if:
- You ask for reinstatement within
three(3) years after the end of
the grace period;
- We receive satisfactory evidence
of the Insured's insurability;
and
- You pay us at least the
Reinstatement Premium shown in
Policy Schedule 2.
The effective date of the reinstated
policy is the Policy Processing Date on
or next following the date we approve
the reinstatement application.
-------------------------------------------------------------------------------
Right to Exchange You may exchange this policy for a
for Fixed Life Insurance policy with benefits that do not vary
with the investment results of a
separate account. You must elect the
exchange within 18 months from the Issue
Date. We will require no evidence of
insurability. The maximum charge to
exchange the policy is shown in Policy
Schedule 3.
We issue the new policy on the Insured's
life after we receive:
- a proper written request; and
- this policy.
About The New Policy
The new policy's owner and Beneficiary
will be the same as those of this policy
as of the date of the exchange. The new
policy will have the same Issue Age,
Issue Date, face amount, Surrender Value
and underwriting class as this policy.
Any Loan Debt under this policy will be
carried over to the new policy.
MSP00 13
<PAGE> 23
<TABLE>
<CAPTION>
==============================================================================================================
INSURANCE BENEFITS
--------------------------------------------------------------------------------------------------------------
<S> <C>
Death Benefit The Death Benefit for this policy on any day is the greater of the Guaranteed
Minimum Death Benefit (see the Guaranteed Benefits Rider) and the Variable
Insurance Amount.
--------------------------------------------------------------------------------------------------------------
Variable Insurance The Variable Insurance Amount on the Policy Date equals the Contract Value as of
Amount such date multiplied by the Attained Age Factor shown or described on Policy
Schedule 4 for the Insured's Issue Age. Thereafter, the Variable Insurance Amount
will vary daily based on the investment results, any Premium payments or partial
withdrawals made, and any charges deducted from or credits added to the Account
Value. The Variable Insurance Amount will be determined each day by multiplying
the Contract Value by the appropriate Attained Age Factor shown or described in
Policy Schedule 4.
In no event will the Variable Insurance Amount be less than that required to keep
this policy qualified as life insurance under the Federal income tax laws.
--------------------------------------------------------------------------------------------------------------
Proceeds Payable To We will pay the Death Benefit Proceeds to the Beneficiary upon the Insured's
The death. The Death Benefit Proceeds equal the Death Benefit less any Loan Debt,
Beneficiary plus the amount payable under any additional insurance rider. We may pay the
proceeds in cash or under one or more income options. See Choosing An Income
Option.
The values we use in the calculation of the Death Benefit Proceeds will be those as
of the Insured's date of death. If the Insured dies during the 61-day period after we
mail notice of our intent to terminate (see Grace Period and Termination Due to Excess
Loan Debt), we will pay the Beneficiary the Death Benefit Proceeds in effect
immediately prior to that period reduced by any overdue charges.
The Death Benefit will never be less than that required to keep this policy
qualified as life insurance under the Federal income tax laws.
How to Claim Death Benefit Proceeds
The Beneficiary should contact our Variable Life Service Center for instructions. We
usually pay the proceeds within 7 days after we receive Due Proof of Death of the
Insured, and any other requirements. We may delay payment of all or part of the Death
Benefit if we have not been able to determine this policy's Contract Value as of the date
of death because:
(1) the NYSE is closed for trading;
(2) the SEC determines that a state of emergency exists;
(3) an order of the SEC permits a delay for the protection of policyowners; or
(4) trading on the NYSE is restricted.
If a delay is necessary and death occurs prior to the end of the Guarantee Period, we
may delay payment of any excess of the Death Benefit over the Guaranteed Minimum Death
Benefit (See the Guaranteed Benefits Rider). After the Guarantee Period we may delay
payment of the entire Death Benefit. We add interest to the Death Benefit Proceeds at
an annual rate of at least 4% from the date of death to the date of payment. Interest
added to Death Benefit Proceeds will not be less than that required by any applicable
law.
</TABLE>
MSP00 14
<PAGE> 24
<TABLE>
<CAPTION>
==============================================================================================================
CHOOSING AN INCOME OPTION
--------------------------------------------------------------------------------------------------------------
<S> <C>
During the Insured's lifetime, you may choose one or more income options for the
payment of Death Benefit Proceeds. If, at the time of the Insured's death, no option
has been chosen for paying Death Benefit Proceeds, the Beneficiary may choose one
within one year. You may also elect an income option upon surrender of the policy for
its Net Surrender Value.
Our approval is needed where:
- the person named to receive payment ("Payee") is other than you or the
Beneficiary;
- the Payee is not a natural person, such as a corporation; or
- any income payment would be less than $100.
--------------------------------------------------------------------------------------------------------------
The Income Options There are six income options to choose from. They are:
Option 1. Income For A Fixed Period
We make payment in equal installments for a fixed number of years. We guarantee each
monthly payment will be at least the amount shown in the following table. Values for
annual, semi-annual or quarterly payments are available on request.
</TABLE>
<TABLE>
<CAPTION>
TABLE FOR INCOME FOR A FIXED PERIOD
(Payments for Each $1,000 Applied)
--------------------------------------------------------------------
Fixed Period Monthly Fixed Period Monthly
of Years Income of Years Income
------------ -------- ------------- -------
<S> <C> <C> <C> <C>
1 $84.47 16 $6.53
2 42.86 17 6.23
3 28.99 18 5.96
4 22.06 19 5.73
5 17.91 20 5.51
6 15.14 21 5.32
7 13.16 22 5.15
8 11.68 23 4.99
9 10.53 24 4.84
10 9.61 25 4.71
11 8.86 26 4.59
12 8.24 27 4.47
13 7.71 28 4.37
14 7.26 29 4.27
15 6.87 30 4.18
--------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
Option 2. Income For Life
We make payment to the Payee in equal monthly installments and guarantee payment for
at least a period certain. The period certain can be 10 or 20 years. Other periods
certain are available on request. A refund certain may be chosen instead. Under this
arrangement, we guarantee income until payments equal the amount applied. If the Payee
lives beyond the guaranteed payments, payments continue until his or her death.
We guarantee each payment will be at least the amount shown in the following table. By
age we mean the Payee's age on his or her birthday nearest the effective date. Amounts
for ages not shown are available on request.
</TABLE>
MSP00 15
<PAGE> 25
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------
The Income Options
(Continued) TABLES FOR INCOME FOR LIFE
(Monthly Payments for Each $1,000 Applied)
-------------------------------------------------------------------------
PAYMENTS TO A MALE
Age 10 Years Certain 20 Years Certain Refund Certain
----------- ---------------- ---------------- --------------
<S> <C> <C> <C>
0-10 $3.24 $3.23 $3.22
15 3.32 3.31 3.30
20 3.41 3.40 3.39
25 3.52 3.51 3.50
30 3.66 3.64 3.63
35 3.84 3.81 3.79
40 4.07 4.00 3.99
45 4.36 4.23 4.24
50 4.71 4.50 4.54
55 5.14 4.79 4.92
60 5.68 5.10 5.39
65 6.35 5.38 6.01
70 7.17 5.60 6.83
75 8.07 5.72 7.94
80 8.93 5.75 9.48
85 & over 9.54 5.75 ----
-------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
-------------------------------------------------------------------------
PAYMENTS TO A FEMALE
Age 10 Years Certain 20 Years Certain Refund Certain
----------- ---------------- ---------------- --------------
<S> <C> <C> <C>
0-10 $3.17 $3.16 $3.15
15 3.23 3.22 3.21
20 3.30 3.29 3.28
25 3.39 3.38 3.37
30 3.50 3.49 3.48
35 3.64 3.62 3.61
40 3.81 3.78 3.77
45 4.04 3.99 3.98
50 4.33 4.23 4.24
55 4.70 4.53 4.57
60 5.17 4.87 4.99
65 5.80 5.22 5.55
70 6.63 5.51 6.32
75 7.64 5.68 7.39
80 8.64 5.74 8.85
85 & over 9.33 5.75
-------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
Option 3. Interest Payment
Amounts can be left with us to earn interest at an annual rate of at least 3%. We
can make interest payments annually, semi-annually, quarterly or monthly.
Option 4. Income Of A Fixed Amount
We make payments of an agreed-upon fixed amount annually, semi-annually,
quarterly or monthly. The fixed amount per year must be at least $60 for each
$1,000 of the amount applied. The amount applied earns interest at an annual
rate of at least 3%. Payments continue until we have fully paid the amount
applied and interest.
</TABLE>
MSP00 16
<PAGE> 26
<TABLE>
<S> <C>
-------------------------------------------------------------------------------------------------------------
The Income Options Option 5. Joint Life Income
(Continued) This option is available if there are two Payees. At least one of the Payees must be
either you or the Beneficiary of this policy. We make monthly payments as long as at
least one of the Payees is living. We guarantee the payments will be at least the
amount shown in the following table while both Payees are alive. When one dies, we
guarantee to continue paying the other at least two-thirds of the amount shown. By
age we mean the Payees age on his or her birthday nearest the effective date.
Amounts for two males, two females, or for ages not shown in the table below are
available on request.
</TABLE>
<TABLE>
<CAPTION>
TABLE OF JOINT LIFE INCOME
(Monthly Payments for Each $1,000 Applied)
FEMALE AGE
55 60 65 70 75
-----------------------------------------------
<S> <C> <C> <C> <C> <C>
50 $4.55 $4.76 $4.99 $5.26 $5.56
55 4.75 4.99 5.27 5.59 5.95
60 4.96 5.25 5.59 5.98 6.42
MALE AGE 65 5.15 5.53 5.94 6.43 6.99
70 5.43 5.84 6.33 6.94 7.66
75 5.69 6.16 6.73 7.49 8.41
-----------------------------------------------
</TABLE>
<TABLE>
<S> <C>
Option 6. Immediate Annuity
An amount can be used to buy any single premium immediate annuity we offer at that
time.
Payments When Payee When the Payee dies, we will pay any amounts still due. The amounts still due are
Dies determined as follows:
- For options 1, 2, or 4, any remaining guaranteed payments continue. Under
option 4, we may pay any unpaid proceeds with any accrued interest in a
single sum. Under options 1 and 2, we may pay the discounted values of the
remaining guaranteed payments in a single sum. This means we deduct the
amount of the interest each remaining guaranteed payment would have earned
had it not been paid out early. The discount interest rate is 3% for options
1 and 2. But we will use the interest rate we used to calculate the payment
for options 1 and 2, if they were not based on the table in this policy.
- For option 3, we pay the unpaid amount and any accrued interest.
- For option 5, no amounts are payable after both Payees have died.
- For option 6, the annuity contract will state the amount due, if any.
</TABLE>
MSP00
17
<PAGE> 27
<TABLE>
<CAPTION>
================================================================================================================
OTHER IMPORTANT INFORMATION
----------------------------------------------------------------------------------------------------------------
<S> <C>
Limits On Our Contesting We rely on the statements made in the applications. Legally, they are considered
This Policy representations, not warranties. We can contest the validity of this policy if you
make any material misstatements in the initial application, a copy of which is
attached. We can also contest any amount of Death Benefit which would not be
payable except for the fact that an additional Premium was paid, if any
material misstatements are made in any application required with the Premium.
We won't contest the validity of this policy after this policy has been in
effect during the Insured's lifetime for two years from the Issue Date. Nor
will we contest any amount of Death Benefit attributable to an additional
Premium after it has been in effect during the Insured's lifetime for two
years from the date we receive and accept such Premium.
If we reinstate this policy, this provision is measured from the effective
date of the reinstated policy.
----------------------------------------------------------------------------------------------------------------
Report We send you a report at least once a year, within 31 days after the end of
each policy year. The report shows the Death Benefit, Surrender Value and Loan
Debt as of the end of the policy year. The report also shows the allocation of
the Account Value as of such date and the amounts deducted from or added to
the Account Value since the last report. The report also includes any other
information that may be currently required by the insurance supervisory
official of the jurisdiction in which we delivered this policy.
----------------------------------------------------------------------------------------------------------------
Policy Changes - For the Insured and the owner to receive the tax treatment accorded to life
Applicable Tax Law insurance under Federal law, this policy must qualify initially and continue to
qualify as life insurance under the Internal Revenue Code or successor law.
Therefore, to maintain this qualification to the maximum extent permitted by
law, we have reserved in this policy the right to return any Premium payments
that would cause this policy to fail to qualify as life insurance under
applicable tax law as interpreted by us. Further, we reserve the right to make
changes in this policy or its riders or to make distributions from the policy
to the extent we deem it necessary to continue to qualify this policy as life
insurance. Any such changes will apply uniformly to all policies that are
affected. We will give you advance written notice of such changes.
----------------------------------------------------------------------------------------------------------------
Error in Age or Sex If the Insured's age or sex as stated in the application is wrong, it could mean
the Initial Face Amount or any other policy benefit is wrong. The Initial Face
Amount will be recalculated based on the Initial Premium and the Guarantee Period
(see the Guaranteed Benefits Rider). Then, the Surrender Value and Death Benefit
will be recalculated from the Policy Date using the actual cost of insurance rates
based on the correct age and sex taking into account any policy transactions such
as additional Premiums, loans, loan repayments or withdrawals.
</TABLE>
MSP00 18
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<TABLE>
<S> <C>
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Suicide If the Insured commits suicide within two years from the Issue Date, while sane or
insane, we will limit the Death Benefit to the amount of the Premiums paid less any
withdrawals and Loan Debt.
If the Insured commits suicide, while sane or insane, within two years of any date
we receive and accept an additional Premium, any amount of Death Benefit which
would not be payable except for the fact that the additional Premium was paid will
be limited to the amount of such payment, less any withdrawals and loans
attributable to such Premium payment.
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Claims Of Creditors The proceeds of this policy will be free from creditors' claims to the extent allowed
by law.
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Non-Participating This policy does not participate in our divisible surplus.
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Authority To Make All agreements made by us must be signed by our president or a vice president and by
Agreements our secretary or an assistant secretary. No other person, including an insurance
agent or broker, can:
- change any of this policy's terms;
- extend the time for paying Premiums; or
- make any agreement binding on us.
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Changes In Policy Cost Any changes in policy cost factors (such as current cost of insurance rates and
Factors loan charges) that we have reserved the right to make will be by class and based
upon changes in future expectations for such elements as mortality, persistency,
expenses and taxes. The policy cost factors are determined prospectively. We will
not recoup prior losses by means of policy cost factor changes. We will determine
any change in policy cost factors in accordance with procedures and standards on
file (if required) with the insurance supervisory official of the jurisdiction in
which we deliver this policy.
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Maturity Date If this policy has a maturity date, it is shown in Policy Schedule 2. On the
Of This Policy maturity date, we will pay you the Net Surrender Value if the Insured is then
living. We may pay the Net Surrender Value in cash or under one or more income
options. See Choosing An Income Option.
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Payments Under The We usually pay the amount of a loan or partial withdrawal, or the Net Surrender
Policy Value within 7 days after we receive a request satisfactory to us. But we may delay
making a payment or a loan when:
(1) the NYSE is closed for trading;
(2) the SEC determines that a state of emergency exists;
(3) an order of the SEC permits a delay for the protection of policyowners; or
(4) trading on the NYSE is restricted.
We may also defer transfers upon the occurrence of any of the events described
above.
</TABLE>
MSP00 19
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<S> <C>
Note Regarding Our We base our computations of reserves, any guaranteed benefits and the maximum
Computations cost of insurance charges on the mortality table and interest rate shown in Policy
Schedule 2. In calculating the maximum cost of insurance charges, we use the
Insured's Attained Age, sex and underwriting class. When making our
computations, we assume that death claims are paid immediately. Our mortality
and expense risks shall not adversely affect the dollar amount of insurance
benefits or Surrender Values.
We have filed a detailed statement of our computations with the insurance
supervisor of the state or jurisdiction where this policy is delivered. All
policy values equal or exceed those required by the law of that state or
jurisdiction. Any benefit provided by an attached rider will not increase these
values unless stated in that rider.
</TABLE>
MSP00
20
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<TABLE>
<CAPTION>
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MERRILL LYNCH MERRILL LYNCH LIFE INSURANCE COMPANY Little Rock,
Arkansas
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<S> <C>
CHANGE OF INSURED RIDER
This rider gives you the right to change the Insured under this policy
once each policy year as of a Policy Processing Date. A change of Insured
will generally be treated as a taxable transaction.
------------------------------------------------------------------------------------------------------------------
Requesting A Change You and the new insured must provide us with satisfactory notice at our
Variable Life Service Center and evidence of insurability for the new
insured that is acceptable to us. If we approve the request for change,
insurance on the new insured takes effect on the Policy Processing Date on
or next following the date of approval if the new insured is then living.
This is the effective date of change.
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Requirements for Change We will change the Insured under this policy if:
- We are satisfied that under our rules the new insured qualifies in a
standard underwriting class.
- This policy is in effect and there is no assignment on file with us.
- You have an insurable interest in the life of the new insured.
- The Attained Ages as of the effective date of change of the original
Insured and new insured are not less than the minimum nor more than
the maximum ages for which we would then issue this policy.
- The new insured was born prior to the Policy Date of this policy.
- The new insured is alive on the effective date of change.
- Any Loan Debt is repaid before the change goes into effect.
- There has been no other change of Insured under this policy during
the current policy year.
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The Policy After Change As of the effective date of change we will change this policy as follows:
- The Issue Date of this policy is changed to the effective date of
change.
- The Issue Age for the new insured is the new insured's age as of
his or her birthday nearest the Policy Date.
- The guaranteed maximum cost of insurance rates and Attained Age
Factors are those in effect on the Policy Date for a person with the
same Issue Age, sex, and underwriting class as the new insured.
- The Initial Face Amount is recalculated based on the Issue Age, sex
and underwriting class of the new insured.
- The face amount and guaranteed benefits are recalculated. See the
Guaranteed Benefits Rider.
- The maximum Change of Insured Charge, if any, is shown in Policy
Schedule 3.
</TABLE>
CIMSP00
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<CAPTION>
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Notice If the change takes effect, we send you a confirmation that we have
changed the Insured under this policy; and new Policy Schedule pages
reflecting the changes above.
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This rider is part of the policy to which it is attached.
<S> <C>
/s/Barry G. Shabind [SIG]
Secretary President
</TABLE>
CIMSP00
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<TABLE>
<CAPTION>
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[MERRILL LYNCH LOGO] MERRILL LYNCH LIFE INSURANCE COMPANY Little Rock,
Arkansas
-----------------------------------------------------------------------------
GUARANTEED BENEFITS RIDER
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<S> <C>
Note Regarding Computations All calculations in this Rider are based on:
in This Rider (a)the interest rate shown under "Interest Rate Used in Our
Computations" in Policy Schedule 2 (hereinafter referred
to as the "Interest Rate"); and
(b)the guaranteed maximum cost of insurance
rates, based on the mortality table listed in
Policy Schedule 2 (hereinafter referred to as
the "Guaranteed Rates").
All Attained Age factors with respect to transactions will be
those as of the Policy Processing Date on or next following
the effective date of the transaction.
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The Face Amount The Initial Face Amount is shown in the Policy Summary. The face amount
will increase as a result of an additional Premium payment, or decrease
as a result of a partial withdrawal as described below. It is not
affected by investment results or the allocation of the Account Value
among the subaccounts. If the Insured reaches Attained Age 100, the face
amount is set to zero.
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The Guaranteed Minimum The Death Benefit can never be less than the Guaranteed Minimum Death Benefit.
Death Benefit The Guaranteed Minimum Death Benefit is equal to the face
amount.
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The Guarantee Period The Guarantee Period is the period during which we cannot terminate
this policy regardless of investment results, unless Loan Debt
exceeds the Surrender Value on a Policy Processing Date. It is
the period that a comparable fixed life insurance contract
(with the same face amount, premium payments and withdrawals made, and
Guaranteed Rates) would remain in effect if credited with the Interest Rate.
The Guarantee Period extends to the Insured's Attained Age 100.
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Fixed Base We use the fixed base to determine any adjustments to the face amount due
to Premium payments or withdrawals. Adjustments to the face amount are made
as of the effective date of the Premium payment or withdrawal.
The fixed base on the Policy Date equals this policy's Contract Value.
Thereafter, the fixed base is calculated on each Policy Processing Date
in the same manner as the Contract Value except all calculations are
based on the Guaranteed Rates and the Interest Rate. On any date other
than a Policy Processing Date, the fixed base is equal to the fixed base
as of the next Policy Processing Date. The fixed base calculation does
not reflect Policy loans and repayments. After the expiration of the
Guarantee Period, the fixed base is set to zero.
On the effective date of a transaction, the fixed base is increased by
the amount of any Premium payment and is decreased by the amount of any
withdrawal. If the effective date of a transaction is not a Policy
Processing Date, we also increase the fixed base by the amount of
interest on the Premium paid from the effective date to the next Policy
Processing Date and decrease the fixed base by the amount of interest
on the withdrawal from the effective date to the next Policy Processing
Date.
</TABLE>
GRMSPOO
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<TABLE>
<S> <C>
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Effect of Additional Premium The face amount will increase. The amount of the increase is determined as
Payment on the Face Amount follows:
The increase in the fixed base due to the additional Premium payment
is multiplied by the appropriate Attained Age Factor shown
or described in Policy Schedule 4.
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Effect of Withdrawal on the The face amount will decrease. The amount of the decrease is determined as
Face Amount follows:
The decrease in the fixed base due to the withdrawal is multiplied
by the appropriate Attained Age Factor shown or described in
Policy Schedule 4.
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Effect of Loan Debt on The policy will be terminated during the Guarantee Period if a loan is
Guarantees outstanding and the Loan Debt exceeds the Surrender Value on a Policy
Processing Date. See Termination Due to Excess Loan Debt.
-----------------------------------------------------------------------------------------------------------
This rider is part of the policy to which it is attached. This rider is
not an "additional insurance rider" under the terms of the policy.
[SIG] [SIG]
Secretary President
</TABLE>
GRMSPOO
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<TABLE>
<CAPTION>
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[MERRILL LYNCH LOGO] MERRILL LYNCH LIFE INSURANCE COMPANY Little Rock,
Arkansas
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<S> <C>
BACKDATING ENDORSEMENT
This endorsement adds or modifies certain provisions of the policy. It controls
over any contrary provisions of the policy.
--------------------------------------------------------------------------------------------------------------------
Endorsement Data Insured: [RICHARD ROE]
Policy Number: [SPECIMEN]
Policy Date: [January 15, 2001]
Endorsement Effective Date: [February 10, 2001]
---------------------------------------------------------------------------------------------------------------------
Endorsed on this Policy on its Issue Date:
For the period from the Policy Date to the Endorsement Effective Date (the "Initial
Valuation Period"), policy values will be determined in accordance with the provisions of
the policy to which this endorsement is attached, except that on any day during the Initial
Valuation Period the Account Value is equal to Premiums paid plus interest at the "Interest
Rate Used in Our Computations" shown in Policy Schedule 2, less charges described in Policy
Schedule 3. The value in each subaccount during the Initial Valuation Period is zero.
[SIG] [SIG]
Secretary President
</TABLE>
BEMSP00
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<S> <C>
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Modified Single Premium Variable life insurance payable upon death of Insured. Modified single
Variable Life Premium. Non-participating. Investment results reflected in policy benefits.
Insurance Policy Guaranteed Minimum Death Benefit and Guarantee Period as described
in Guaranteed Benefits Rider.
</TABLE>
