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NYLIAC VARIABLE UNIVERSAL LIFE SEPARATE ACCOUNT-I
SUPPLEMENT DATED SEPTEMBER 21, 1998 TO PROSPECTUS DATED MAY 6, 1998
for
NYLIAC SURVIVORSHIP VARIABLE UNIVERSAL LIFE INSURANCE POLICIES
This Supplement describes the availability of a Guaranteed Minimum Death Benefit
("GMDB") rider. The Supplement provides information that a prospective investor
should know before investing. Please read it carefully and retain it for future
reference. This Supplement is not valid unless accompanied by the current
prospectus for the Policies ("Policy Prospectus"). Terms used, but not defined,
in this Supplement have the same meanings as in the Policy Prospectus.
The Policy Prospectus should be read in light of the following additional
information:
1. The following line and subsection are added to the list of riders on
page 4 under "RIDER BENEFITS" and on page 21 under "ADDITIONAL BENEFITS
THROUGH RIDERS AND OPTIONS."
- Guaranteed Minimum Death Benefit Rider
Riders are subject to state regulatory approvals and may not be
available in all states. In addition, the rider title and the
requirements for any rider may vary by state. Please contact your
registered representative to determine if the rider(s) is (are)
available in your state.
2. The following subsection is added to page 22 immediately following the
subsection titled "HOW THE RIDERS ARE AVAILABLE" under "ADDITIONAL
BENEFITS THROUGH RIDERS AND OPTIONS."
GUARANTEED MINIMUM DEATH BENEFIT RIDER
As long as this rider is in effect and the benefit period has not expired,
this rider guarantees that your Policy will never lapse due to its cash
surrender value being insufficient to cover the current monthly deduction
charges. Under this rider, if the amount of your monthly deduction charges
is greater than the cash value of your Policy, we will deduct as much of
the monthly deduction charges from the cash value as possible. We will
then waive any excess amount of these charges including the charge for
this and any other rider. Generally, this rider is available with a
benefit period up to the younger insured's age 80 or 100. You may choose
either expiry date as long as the benefit period is at least ten years.
In exchange for the guarantee provided by this rider, you must make
certain premium payments into your Policy. The premium you must pay under
this rider is called the "monthly Guaranteed Minimum Death Benefit (GMDB)
premium." You will find it on the Policy Data Page of your Policy. The
monthly GMDB premium may change if you modify your Policy or any of the
riders attached to your Policy. Although this premium is expressed as a
monthly premium, you do not need to pay it on a monthly basis. Rather, we
will perform a GMDB premium test each month to determine if you have made
enough cumulative premium payments to keep the rider in effect.
GMDB PREMIUM TEST (PERFORMED ON EACH MONTHLY DEDUCTION DAY)
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Cumulative premium less Cumulative partial must be at least Cumulative monthly GMDB
payments to date withdrawals to date equal to premiums from the Policy Date
to the date the test is performed
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FORM 22028 (998)
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If your Policy does not satisfy the GMDB premium test and your Policy
fails the test by an amount that is more than one monthly GMDB premium, we
will notify you that your Policy has failed this test. The rider will
terminate unless you make a premium payment in an amount necessary to pass
the GMDB premium test before the next Monthly Deduction Day. If the rider
terminates, we will reinstate it if we receive the required premium
payment before the Monthly Deduction Day that follows the date the rider
terminated. If the rider terminates during a period when the rider benefit
is in effect, your Policy will enter the late period and will lapse unless
the required payment is made.
Having this rider affects your ability to take Policy loans in the
following way:
(a) If you take a loan during the first two Policy Years, this
rider will end.
(b) After the first two Policy Years, you may take loans
within certain limits. On the day you take a loan (or when any
unpaid loan interest is charged as an additional loan), the cash
surrender value of your Policy less the new loan and the amount of
any current outstanding loan balance must be greater than the
cumulative monthly GMDB premiums which were required up to the time
you take the loan, accumulated at an annual effective interest rate
of 6.0%, as of that date.
AVAILABILITY:
Beginning September 21, 1998, in states where available, you may
select this rider when you apply for the Policy.
For Policies applied for prior to September 21, 1998, you have the
option to make the GMDB rider part of your Policy until December 21,
1998 and before the first Policy anniversary. In those states where
the GMDB rider is not yet available, we will notify you when it is
approved in your state. You will then have the option to make the
GMDB rider part of your Policy within 90 days of its availability as
long as it is prior to the first Policy anniversary. When you apply
for the rider, it will be made part of the Policy as of the Policy
Date. No charges for the GMDB rider will be deducted from the cash
value for the coverage period from the Policy Date to the Monthly
Deduction Day following the addition of the rider to your Policy. We
will perform the GMDB premium test for each month from the Policy
Date to the Monthly Deduction Day following the date this rider
becomes part of your Policy. When you apply, we will notify you if
any additional premium payment is required to satisfy the GMDB
premium test.
This rider is not available on a Policy with a Supplementary Term
Rider.
3. The following subsection is added to page 42 at the end of the first
paragraph of the section titled "RIDER CHARGES."
Guaranteed Minimum Death Benefit Rider Charge
If you choose this rider, we will deduct a charge equal
to $0.01 per $1000 multiplied by the sum of your Policy's face
amount and the face or benefit amount of any riders. The face
or benefit amount of a rider is the amount that is multiplied
by the cost of insurance for that rider.
4. The following line is added to page B-1 under the section for the State
of Maryland in APPENDIX B: VARIATIONS BY JURISDICTION.
- Additional Benefits through Riders - The GMDB rider is
called the Guaranteed No Lapse Benefit Rider.
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Issued by: Distributor:
New York Life Insurance and Annuity Corporation NYLIFE Distributors Inc.,
(A Delaware Corporation) Member NASD
51 Madison Avenue, New York, New York 10010
FORM 22028 (998)
