Cova Financial Life Insurance Company
4100 Newport Place Drive, Suite 840
Newport Beach, CA 92600
DEATH BENEFIT RIDER-- [GREATER OF ANNUAL STEP-UP OR 5% ANNUAL INCREASE]
This Rider forms a part of the Contract to which it is attached and is effective
upon issuance. In case of a conflict with any provision in the Contract, the
provisions of this Rider will control. The following amends the "Death Benefit
Provisions" of the Contract as follows:
DEATH BENEFIT PROVISIONS
DEATH BENEFIT AMOUNT DURING THE ACCUMULATION PERIOD -- This provision is amended
and superseded to provide that the death benefit will be the greater of:
(1) the Account Value; or
(2) the Enhanced Death Benefit.
The Enhanced Death Benefit is the greater of (a) or (b) below:
(a) Highest Anniversary Value: On the Issue Date, the Highest Anniversary Value
is equal to your initial Purchase Payment. Thereafter, the Highest
Anniversary Value as recalculated will be increased by subsequent Purchase
Payments and reduced proportionately by the percentage reduction in Account
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Value attributable to each subsequent partial withdrawal. On each Contract
Anniversary prior to the Owner's 81st birthday, the Highest Anniversary
Value will be recalculated and set equal to the greater of the Highest
Anniversary Value before the recalculation or the Account Value on the date
of the recalculation.
(b) Annual Increase Amount: On the Issue Date, the Annual Increase Amount is
equal to your initial Purchase Payment. Thereafter, the Annual Increase
Amount is equal to (i) less (ii), where:
(i) is Purchase Payments accumulated at the Annual Increase Rate. The
Annual Increase Rate is 5% per year through the Contract
Anniversary immediately prior to the Owner's 81st birthday, and 0%
per year thereafter; and
(ii) is Withdrawal Adjustments accumulated at the Annual Increase Rate.
A Withdrawal Adjustment is equal to the value of the Annual
Increase Amount immediately prior to a withdrawal multiplied by
the percentage reduction in Account Value attributable to that
partial withdrawal.
If a non-natural person owns the Contract, then Annuitant shall be deemed to be
Owner in determining the death benefit. If Joint Owners are named, the age of
the oldest will be used to determine the death benefit amount.
If the Owner is a natural person and the Owner is changed to someone other than
a spouse, the death benefit is equal to the greatest of (1) or (2); however, for
purposes of calculating the Enhanced Death Benefit under (2) above:
(a) for the Highest Anniversary Value, the Highest Anniversary Value shall
be recalculated to equal your Account Value as of the effective date of
the Owner change; and
(b) for the Annual Increase Amount, the current Annual Increase Amount will
be reset to equal your Account Value as of the effective date of the
Owner change. For purposes of the calculation of the Annual Increase
Amount thereafter, the Account Value on the effective date of the Owner
change will be treated as the initial Purchase Payment, and Purchase
Payments received and partial withdrawals taken prior to the change of
Owner will not be taken into account.
In the event that a Beneficiary who is the spouse of the Owner elects to
continue the Contract in his or her name in accordance with the "Death Benefit
Options During The Accumulation Period" provision, the death benefit amount is
equal to the greater of (1) or (2).
The amount of the death benefit is determined as of the end of the Business Day
on which we have received both due proof of death and an election for the
payment method. Any excess of the death benefit amount over the Account Value
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will be allocated to each applicable Subaccount in the Variable Account and/or
the Fixed Account in the ratio that the Account Value in a Subaccount and/or the
Fixed Account bears to the total Account Value. The death benefit amount in the
Separate Account remains in the Separate Account until distribution begins. From
the time the death benefit is determined until complete distribution is made,
any amount in a Subaccount will be subject to investment risk. This risk is
borne by the Beneficiary.
DEATH BENEFIT OPTIONS DURING THE ACCUMULATION PERIOD -- This provision of the
Contract is amended to add that if the Beneficiary is the spouse of the Owner,
he or she may elect to continue the Contract in his or her own name and upon
such election the Account Value will be adjusted to an amount equal to the death
benefit amount determined upon such election and receipt of due proof of death
of the Owner. Any excess of the death benefit amount over the Account Value will
be allocated to each applicable Subaccount in the Variable Account and/or the
Fixed Account in the ratio that the Account Value in a Subaccount and/or the
Fixed Account bears to the total Account Value.
MISSTATEMENT OF AGE OR SEX -- The "Misstatement of Age or Sex" provision is
modified to provide that we may also require proof of age of any Owner.
This Rider is irrevocable.
[The charge for this Rider is shown on the Contract Schedule.]
Cova Financial Life Insurance Company has caused this Rider to be signed by its
President and Secretary.
Form 7016 (11/00)
