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<TABLE>
<S> <C>
[MERRILL LYNCH LOGO] MERRILL LYNCH LIFE INSURANCE COMPANY
Home Office: 320 West Capitol Avenue, Little Rock, Arkansas 72201
Variable Life Service Center: P.O. Box 9023, 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 Beneficiary after we receive Due Proof of the death
Provided By This of the Insured.
Policy
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 Benefit for the owner and Insurance Benefits.
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Cash Value Benefits During the Insured's lifetime while this policy is in effect, we provide cash value benefits and
Provided By other important rights as described in this policy.
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 the subaccounts. Each subaccount invests in a
For This Policy designated Fund. The Account Value and Death Benefit may increase or decrease depending on the
investment experience 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 the free look period. That period ends 10 days
This Policy 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'll
promptly return any Premium paid.
[SIG] [SIG]
Secretary President
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Modified Single Premium Variable life insurance payable upon death of Insured. Modified single Premium. Non-participating.
Variable Life Investment results reflected in policy benefits. Guaranteed Minimum Death Benefit and Guarantee Period
Insurance Policy as described in Guaranteed Benefits Rider.
</TABLE>
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<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 the next Policy Processing Date or policy
anniversary, 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 any amounts payable under additional insurance riders.
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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 performance 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, the Initial Premium payment is received 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 sum of all policy loans taken, less loan repayments, plus loan interest capitalized, 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.
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Net Surrender Value The Surrender Value minus any Loan Debt. This is the amount that we would pay upon surrender of the
policy.
</TABLE>
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<TABLE>
<CAPTION>
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DEFINITIONS (CONTINUED)
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<S> <C>
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 underlying mutual funds, unit investment trusts or other investment portfolios 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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POLICY NUMBER SPECIMEN
OWNER Richard Roe
ISSUE DATE 02/10/2001
POLICY DATE 02/11/2001
INSURED Richard Roe
ISSUE AGE/SEX 35 Male
UNDERWRITING CLASS Standard Non-Smoker.
INITIAL PREMIUM $50,000.00
INITIAL FACE AMOUNT $1,000,000
INITIAL GUARANTEED
MINIMUM DEATH BENEFIT $1,000,000
INITIAL GUARANTEE PERIOD 65 years.
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POLICY SCHEDULE 1
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INSURED Richard Roe
POLICY NUMBER SPECIMEN
Issue Age 35 (The Insured's age on his/her birthday
nearest the Policy Date)
Initial Premium $2000
Annual Planned Periodic $2000 Number of years: 4
Premiums We must receive the Planned Periodic Premium
while the Insured is alive and not more than
30 days after the corresponding policy
anniversary.
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 10%
Merrill Lynch Fundamental Growth Fund 50%
Alliance Premier Growth Portfolio 20%
Delaware Trend Series 10%
Allocation of Planned Periodic As of the date we accept your Planned
Premiums Periodic Premium, we allocate it in
accordance with your instructions in effect
as of the date of the payment 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, Planned Periodic Premiums will be
allocated to the Merrill Lynch Domestic Money
Market subaccount.
Allocation of Additional Once we complete any necessary underwriting
Premiums other than Planned and accept your Premium payment, we allocate
Periodic Premiums the payment in accordance with your
instructions in effect as of the date we
accept the payment, 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
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POLICY SCHEDULE 2
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<TABLE>
<CAPTION>
INSURED Richard Roe
POLICY NUMBER SPECIMEN
<S> <C> <C>
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Additional Premiums Payments are subject to our underwriting
(Other than Planned requirements and limits.
Periodic Payments)
Maximum Attained Age of Insured at time of payment 80
Minimum additional Premium $2,000 per policy year
Number of additional Premium payments permitted 1 per policy year
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Transfers Minimum transfer amount $100
Maximum number of transfers 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 Date
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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 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>
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POLICY SCHEDULE 2 (CONTINUED)
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INSURED Richard Roe
POLICY NUMBER SPECIMEN
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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 1980 CSO Male Non-Smoker Mortality Table
in Our Computations
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 3 months
PERIOD
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CHARGES, FEES AND CREDITS FOR THIS POLICY
DEDUCTIONS TO DETERMINE SUBACCOUNT ACCUMULATION UNIT VALUE
<TABLE>
<CAPTION>
TYPE OF CHARGE POLICY YEARS AMOUNT OF CHARGE
-------------- ------------ ----------------
<S> <C> <C>
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
-------------- ------------ ----------------
Expense Charge(3) 1-10 Quarterly charge of .1125%
(.45% annually)
Cost of Insurance All Quarterly Gtd. Max. Cost of
Charge(4) (until Insured's Attained Age 100) Insurance Rates (see Policy Schedule 5)
Net Loan Cost(5) Any Policy Year Loan Maximum 2.00%
Debt Exists annually
CREDITS TO ACCOUNT VALUE
TYPE OF CREDIT(6) POLICY YEARS AMOUNT OF CREDIT
-------------- ------------ ----------------
Asset-Based Credit(6) 11+ Quarterly credit of .1125%
(.45% annually)
</TABLE>
(1)Deducted daily from the investment results of each subaccount.
(2)Any charge we accrue for is deducted from the Contract Value, which is used
to determine the Surrender Value.
(3)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.
(4)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. 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.
(5)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.
(6)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.
Policy Schedule 3
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POLICY SCHEDULE 3 (CONTINUED)
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INSURED Richard Roe
POLICY NUMBER SPECIMEN
SURRENDER CHARGE
The surrender charge consists of a contingent deferred sales load and an
unamortized expense charge. We deduct surrender charges from the Account Value.
<TABLE>
<S> <C>
Contingent The contingent deferred sales load is calculated as a
Deferred Sales percentage of each Premium withdrawn or surrendered
Load during the first 10 years following payment of that
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.
Completed
Years Since
Premium Payment 1 2 3 4 5 6 7 8 9 10
--------------- - - - - - - - - - --
Contingent Deferred 6 5 5 4 4 3 3 2 2 1
Sales Load (% of
Premium Withdrawn)
Unamortized Expense 4 3.6 3.2 2.8 2.4 2.0 1.6 1.2 0.8 .04
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.
OTHER CHARGES DEDUCTED FROM ACCOUNT VALUE
<TABLE>
<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>
Policy Schedule 3
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POLICY SCHEDULE 4
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INSURED Richard Roe
POLICY 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 3.97197 40 3.37136 45 2.87749 50 2.47233
36 3.84281 41 3.26461 46 2.79004 51 2.40027
37 3.71808 42 3.16191 47 2.70588 52 2.33112
38 3.59795 43 3.06323 48 2.62495 53 2.26483
39 3.48248 44 2.96853 49 2.54713 54 2.20135
</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 the date.
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>
Age Rate Age Rate Age Rate Age Rate
<S> <C> <C> <C> <C> <C> <C> <C>
35 0.53 40 0.76 45 1.14 50 1.68
36 0.56 41 0.82 46 1.23 51 1.83
37 0.60 42 0.89 47 1.33 52 2.00
38 0.65 43 0.97 48 1.44 53 2.19
39 0.70 44 1.05 49 1.56 54 2.40
</TABLE>
Rates shown are based on the Insured's Attained Age as of each policy
anniversary. They do not change during a Policy Year.
<PAGE> 12
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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 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.
Basic Value Focus Fund
Domestic Money Market Fund
Fundamental Growth Focus Fund
Government Bond Fund
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 Investment Trust
Emerging Growth Portfolio
<PAGE> 13
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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 authorize the use of
telephone transfer privileges, you or your
authorized representative may make transfers and
give Premium allocation instructions for additional
Premium payments by telephone. The Company reserves
the right to terminate or modify telephone transfer
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 the policy.
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PREMIUM PAYMENTS
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When To Pay Premiums We require payment of the Initial Premium to put
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 Premiums Pay the Premiums to our Variable Life Service
Center. On request we'll 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 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.
Additional Premiums other than Planned Periodic
Premiums
After 14 days following the In Force date, you may
pay additional Premiums, other than Planned Periodic
Premiums, under this policy. Such additional
Premiums are subject to the restrictions shown in
Policy Schedule 2. They may 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.
Planned Periodic Premiums
You may pay additional Premiums under a periodic
plan. The amount of any Planned Periodic Premiums,
and the consecutive number of years following the
Policy Date that such Premiums are scheduled to be
paid, is shown in Policy Schedule 1. Unless you
specify otherwise, we will send reminder notices for
the Planned Periodic Premiums.
Guarantee of Insurability
You have the right to pay any Planned
Periodic Premiums without our requiring a
medical examination or other proof that the
Insured is still insurable. We show the
charge, if any, for this guarantee in Policy
Schedule 3.
When The Guarantee of Insurability Ends
This guarantee will end on the earliest of
the following:
- Upon written request from you;
- The failure to make a Planned
Periodic Premium payment within
the period indicated in Policy
Schedule 1; or
- The date this policy ends.
If the guarantee of insurability ends, any
additional Premium payments will not be
considered to be Planned Periodic Premiums.
Effect of Additional Premium Payments on Face Amount
and Policy Guarantees
See the Guaranteed Benefits Rider.
7
<PAGE> 15
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HOW VARIABLE LIFE INSURANCE WORKS
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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.
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Subaccounts The Separate Account is divided into the subaccounts
shown in Policy Schedule 6. Each subaccount invests
in a designated Fund.
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Value in Each On each business day, we calculate the value in each
Subaccount 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 any Premium sales load is shown in
Policy Schedule 3.
(3) We add to (2) any loan repayments received
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
shown in Policy Schedule 3 under "Deductions
from Account Value" from (4), and add the
credits shown in Policy Schedule 3 under
"Credits to Account Value" to (4). We also
subtract any other applicable charges shown
in Policy Schedule 3 under "Other Charges
Deducted From Account Value."
(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.
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<PAGE> 16
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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.
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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.
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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.
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Changes Within The We may from time to time make additional subaccounts
Separate Account 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 1040 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.
9
<PAGE> 17
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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 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.
10
<PAGE> 18
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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 among
Transfer the subaccounts. To make a transfer, you must provide
Account Value us with satisfactory notice at our 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 1.
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 an underlying portfolio 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 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
the 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 minimum 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.
11
<PAGE> 19
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Policy Loans (Continued) Allocation of Loans and Repayments
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'll 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 security
This Policy As for a loan or other obligation. This does not
Collateral Security 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.
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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 such 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.
Effective of Withdrawals on Face Amount and
Policy Guarantees
See the Guaranteed Benefits Rider.
12
<PAGE> 20
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.
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Surrendering You can surrender this policy at any time and
to Receive receive its Net Surrender Value. The Net Surrender
the Net Surrender Value 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 plans. See Choosing An
Income Plan.
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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.
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How to Reinstate If we have terminated this policy at the end
This Policy 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 policy with
for Fixed Life Insurance 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.
13
<PAGE> 21
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INSURANCE BENEFITS
--------------------------------------------------------------------------------
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
Amount equals the Contract Value as of such date
multiplied by the appropriate Attained Age Factor
for the Insured's Issue Age shown on Policy
Schedule 4. 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 The We will pay the Death Benefit Proceeds to the
Beneficiary Beneficiary upon the Insured's death. The Death
Benefit Proceeds equal the Death Benefit less any
Loan Debt, plus any amounts payable under
additional insurance riders. 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 the Insured's Death, 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.
14
<PAGE> 22
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CHOOSING AN INCOME OPTION
--------------------------------------------------------------------------------
You may choose one or more income options for the
payment of Death Benefit Proceeds during the
Insured's lifetime. 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 FOR INCOME FOR A FIXED PERIOD
(Payments for Each $1,000 Applied)
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------
Fixed Period Monthly Fixed Period Monthly
of Years Income of Years Income
------------ -------------- ------------ ---------
<S> <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 10.58 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>
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.
15
<PAGE> 23
-------------------------------------------------------------------------------
The Income Options
(Continued)
<TABLE>
<CAPTION>
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>
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.
16
<PAGE> 24
--------------------------------------------------------------------------------
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>
<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>
Option 6. Immediate Annuity
An amount can be used to buy any single premium
immediate annuity we offer at the time.
--------------------------------------------------------------------------------
Payments When Payee When the Payee dies, we will pay any amounts still due.
Dies The amounts still due are 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.
17
<PAGE> 25
--------------------------------------------------------------------------------
OTHER IMPORTANT INFORMATION
--------------------------------------------------------------------------------
Limits On Our Contesting We rely on the statements made in the applications.
This Policy Legally, they are considered 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
Applicable Tax Law treatment accorded to life 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 an 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.
18
<PAGE> 26
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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.
--------------------------------------------------------------------------------
Claims Of Creditors The proceeds of this policy will be free from
creditors claims to the extent allowed by law.
--------------------------------------------------------------------------------
Non-Participating This policy does not participate in our divisible
surplus.
--------------------------------------------------------------------------------
Authority To Make All agreements made by us must be signed by our
Agreements president or a vice president and by 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.
--------------------------------------------------------------------------------
Changes In Policy Cost Any changes in policy cost factors (such as
Factors current cost of insurance rates and 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.
--------------------------------------------------------------------------------
Maturity Date If this policy has a maturity date, it is shown in
Of This Policy Policy Schedule 2. On the 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.
--------------------------------------------------------------------------------
Payment Under The We usually pay the amount of a loan or partial
Policy withdrawal, or the Net Surrender Value within 7
days after we receive a request satisfactory to
us. But we may delay making a payment of 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.
19
<PAGE> 27
--------------------------------------------------------------------------------
Note Regarding Our We base our computations of reserves, any
Computations guaranteed benefits and the maximum 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.
--------------------------------------------------------------------------------
Modified Single Premium Variable life insurance payable upon death of
Varible Life Insurance insured. Modified single premium.
Policy Non-participating. Investment results reflected
in policy benefits. Guaranteed Minimum Death
Benefit and Guarantee Period as described in
Guaranteed Benefits Rider.
20
