Table of Contents |
DEFINITIONS | |||||
UPDATED INFORMATION ABOUT YOUR POLICY | |||||
IMPORTANT INFORMATION YOU SHOULD CONSIDER ABOUT YOUR POLICY | |||||
Fees and Expenses | |||||
Risks | |||||
Restrictions | |||||
Taxes | |||||
Conflicts of Interest | |||||
APPENDIX: PORTFOLIOS COMPANIES AVAILABLE UNDER THE POLICY |
Definitions |
Updated Information About Your Policy |
Important Information You Should Consider About the Policy |
Fees and Expenses | Location in Prospectus | ||||||||||||||||
Charges for Early Withdrawals | Upon surrender, the Policyowner will receive the Net Cash Value of the Policy. The Net Cash Value is equal to the Accumulated Value less any applicable surrender charge and any Indebtedness. If you surrender the Contract within the first 8 Contract years after a Premium Payment, you will be assessed a surrender charge. The maximum surrender charge is 8% of each premium paid under the Policy, and a surrender charge may be assessed up to the first 8 Contract years after a Premium Payment. For example, if you surrender your Policy in year one, you could pay a surrender charge of $8,000 on a Contract with $100,000 investment. Partial withdrawals are not permitted. | Surrender Privilege | |||||||||||||||
Transaction Charges | In addition to surrender charges (if applicable), the investor may also be charged for other transactions. A $10 Transfer Fee may be charged for the third and subsequent transfers made during the Policy Year. Transfers are not taxable transactions. | Charges and Deductions | |||||||||||||||
Ongoing Fees and Expenses (annual charges) | In addition to surrender charges and transaction charges, the Policy is subject to certain ongoing fees and expenses, including fees and expenses covering the cost of insurance under the Policy , which are set based on characteristics of the insured (e.g., Attained Age, sex, and rate class of the Insured). Other ongoing charges include the mortality and expense risk charge, policy administration charge, and charges against the fund, if any. Investors should view the policy specifications page of the Policy for rates applicable to their Policy. Investors will also bear expenses associated with the Portfolio Companies under the Policy, as shown in the following table: | Charges and Deductions | |||||||||||||||
Annual Fee | Minimum | Maximum | |||||||||||||||
Total Annual Fund Operating Expenses* (expenses that are deducted from Fund assets, including management fees, distribution and/or service 12b-1 fees, and other expenses) | 0.39% | 0.84% | |||||||||||||||
* Expenses are shown as a percentage of Fund average daily net assets (before any waiver or reimbursement) as of December 31, 2023. |
Risks | Location in Prospectus | |||||||
Risk of Loss | You can lose money by investing in the Policy. There is no guaranteed minimum Net Cash Value. | Cover Page – Important Notices Accumulated Value | ||||||
Not a Short-Term Investment | This Contract is not a short-term investment and is not appropriate for an investor who needs ready access to cash. The Contract is designed to provide a life insurance benefit or to help meet other long-term financial objectives. Substantial fees, expenses, and tax implications generally make variable life insurance unsuitable as a short-term savings vehicle. | Charges and Deductions | ||||||
Risks Associated with Investment Options | An investment in the Policy is subject to the risk of poor investment performance and can vary depending on the performance of the investment options available under the Policy (e.g., the Portfolios). Each investment option will have its own unique risks. You should review these investment options before making an investment decision. | The Fund | ||||||
Insurance Company Risks | An investment in the Contract is subject to the risks related to Everlake Life Insurance Company ("Everlake Life"). Any obligations, guarantees, or benefits are subject to the claims-paying ability of Everlake Life. If Everlake Life experiences financial distress, it may not be able to meet its obligations to you. More information about Everlake Life, including its financial strength ratings, is available upon request by calling 1-800-865-5237. | The Variable Account | ||||||
Contract Lapse | Lapse will occur only when the Net Cash Value of a Policy is insufficient to cover the monthly deduction for the cost of insurance, and a grace period expires without a sufficient payment being made. Thus, the failure to make an additional premium payment will not in itself cause the Policy to lapse. Death benefits will not be paid if the Contract has lapsed. A lapsed Policy may be reinstated at any time within five years after the date of lapse if:(1) a written application for reinstatement is submitted to Charter at its Home Office;(2)evidence of insurability for the original rate class satisfactory to Charter is provided; and(3)any unpaid charge or Indebtedness is repaid or restored with interest at the rate of 6% per year compounded annually from the date of the lapse. | THE POLICY - Policy Lapse and Reinstatment |
Restrictions | Location in Prospectus | |||||||
Investments | We reserve the right to add, combine, remove or substitute Portfolios as investment options. We reserve the right to limit the size of transfers and remaining balances, and to limit the number and frequency of transfers among your variable subaccounts. In addition, while we currently are not charging a transfer fee, the Policy gives us the right to impose a transfer fee in certain circumstances. We reserve the right to limit transfers in any Policy Year, or to refuse any transfer request for a Policy Owner or certain policyowners. For example, we reserve the right to limit excessive trading and transfers that would disadvantage policyowners or have a detrimental effect on Accumulation Unit Values or the share price of any Portfolio. | The Variable Account -Addition, Deletion, or Substitution of Investments |
Taxes | Location in Prospectus | |||||||
Tax Implications | You should consult with a tax professional to determine the tax implications of an investment in and payments received under the Policy. There is no additional tax benefit to the investor if the Policy is purchased through a tax-qualified plan or individual retirement account (IRA). Earnings on your policy (if any) are taxed when you withdraw them (or if a policy loan is not repaid), at ordinary income tax rates, and may be subject to a tax penalty for age 59½. | Federal Tax Matters |
Conflicts of Interest | Location in Prospectus | |||||||
Investment Professional Compensation | From time to time, we may pay or permit other promotional incentives, in cash or credit or other compensation. In addition, under certain circumstances, certain sellers of Contract may be paid persistency bonuses which will take into account, among other things, the length of time premium payments have been held under a Contract, and contract values. | Distribution of the Policy | ||||||
Exchanges | Some investment professionals may have a financial incentive to offer an investor a new Policy in place of the one you already own. You should only exchange Your Policy if you determine, after comparing the features, fees, and risks of both Policies, that it is preferable for you to purchase the new Policy rather than continue to own your existing Policy. | Distribution |
Appendix: Portfolio Companies Available Under the Contract |
Type / Investment Objective | Portfolio Company and Adviser/Subadviser | Current Expenses | Average Annual Returns (as of 12/31/23) | |||||||||||||||||
1 year | 5 year | 10 year | ||||||||||||||||||
DEUTSCHE DWS VARIABLE SERIES I | ||||||||||||||||||||
Seeks to provide long-term growth of capital. | DWS Capital Growth VIP - Class A | DWS Investment Management Americas Inc. | 0.49% | -29.14% | 10.96% | 14.10% | ||||||||||||||
Seeks long-term growth of capital. | DWS CROCI® International VIP - Class A | 0.86% | -13.19% | 0.29% | 2.25% | |||||||||||||||
DEUTSCHE DWS VARIABLE SERIES II | ||||||||||||||||||||
Seeks to maximize income while maintaining prospects for capital appreciation. | DWS Global Income Builder VIP - Class A | DWS Investment Management Americas Inc. | 0.66% | -14.98% | 2.53% | 5.35% | ||||||||||||||
Seeks maximum current income to the extent consistent with stability of principal. | DWS Government Money Market VIP - Class A | 0.40% | — | — | — |