REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 |
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POST-EFFECTIVE AMENDMENT NO. 6 |
☒ | |||
and/or |
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REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 |
☒ | |||
AMENDMENT NO. 67 |
☒ |
☐ | immediately upon filing pursuant to paragraph (b) of Rule 485 |
☒ | on May 1, 2024 pursuant to paragraph (b) of Rule 485 |
☐ | 60 days after filing pursuant to paragraph (a)(l) of Rule 485 |
☐ | on (date) pursuant to paragraph (a)(l) of rule 485 |
☐ | This post-effective amendment designates a new effective date for previously filed post-effective amendment. |
EFLIC and EFLOA | #413859/AA & ADL | |
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Appendices | ||||
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Statement of Additional Information |
• | If your premium payment, transfer or any other transaction request containing all the required information reaches us on any of the following, we will use the next business day: |
— | on a non-business day; |
— | after 4:00 p.m. Eastern Time on a business day; or |
— | after an early close of regular trading on the NYSE on a business day. |
FEES AND EXPENSES | ||
Charges for Early Withdrawals |
We will not deduct a charge for making a partial withdrawal from your policy; however, if you surrender the policy in its first There is an Early Distribution Adjustment on amounts withdrawn before segment maturity which could result in a loss of up to 90% of the Segment Account Value due to negative performance or increased volatility of the Index, depending on the Index Option selected. See the MSO II prospectus for more information. If your policy was issued with the original Market Stabilizer Option ® For more information on the impacts of withdrawals, please refer to “Making withdrawals from your policy” in this prospectus. For more information on surrender charges, please refer to “Deducting policy charges” in this prospectus. | |
Transaction Charges |
In addition to surrender charges, you may be subject to other transaction charges, including charges on each premium paid under the policy, charges in connection with requests to decrease your policy’s face amount, transfer fees, and other special service charges ( e.g. For more information on transaction charges, please refer to the “Fee Table” in this prospectus. | |
Ongoing Fees and Expenses (annual charges) |
In addition to surrender charges and transaction charges, an investment in the policy is subject to certain ongoing fees and expenses, including fees and expenses covering the cost of insurance under the policy, administration and mortality risks, MSO II and loan charges, and the cost of optional benefits available under the policy. Such fees and expenses may be based on characteristics of the insured ( e.g. | |
You will also bear expenses associated with the variable investment options that you invest in (the “Portfolios”) under the policy, as shown in the following table: |
Annual Fee |
Minimum |
Maximum | ||||
Portfolios | ||||||
Portfolio expenses are for the year ended December 31, 2023, and may be based, in part, on estimated amounts of such expenses and may change from year to year. For more information on ongoing fees and expenses, please refer to the “Fee Table” in this prospectus and Appendix: “Investment options available under the policy”, which is part of this prospectus. | ||||||
The Investment Expense Reduction may apply to the calculation of daily unit values of the variable investment options. The Investment Expense Reduction is described in further detail in the “Fee Table” in this prospectus. |
RISKS | ||
Risk of Loss |
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Not a Short-Term Investment |
||
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 Portfolios available under the policy, MSO II and the guaranteed interest option (“GIO”), each of which has its own unique risks. You should review the Portfolios’ prospectuses, the MSO II prospectus and the “Guaranteed Interest Option” section in “Investment options within your policy” in this prospectus before making an investment decision. Portfolio prospectuses are available at www.equitable.com/ICSR#EQH162723. For more information on the Portfolios, please refer to Appendix: “Investment options available under the policy” in this prospectus. | |
Insurance Company Risks |
||
Policy Lapse |
no-lapse guarantee, you may have to pay more premiums to have the benefit of the no lapse guarantee. If your policy provides for a policy continuation feature, and the conditions of the rider are satisfied and the rider is exercised, including that there is sufficient net policy account value to cover the Policy Continuation Charge, then the policy will not lapse. | |
RESTRICTIONS | ||
Investments |
||
(non-guaranteed) interest crediting rate on the GIO is equal to the guaranteed minimum interest crediting rate of 1.0% (annual rate). For more information, please refer to “Guaranteed Interest Option” in “Investment options within your policy” in this prospectus. | ||
Optional Benefits |
||
these benefits are generally subject to the same transaction fees as other premium payments but may be treated differently for other purposes (e.g., certain death benefit minimums). Optional benefits are not available for all ages (or may terminate at certain ages) and underwriting classifications. We may stop offering an optional benefit at any time, unless previously elected. | ||
TAXES | ||
Tax Implications |
tax-qualified plan or individual retirement account (IRA). Withdrawals will be subject to ordinary income tax, and may be subject to tax penalties. | |
to “Tax information” in this prospectus. | ||
CONFLICTS OF INTEREST | ||
Investment Professional Compensation |
over another investment. | |
Exchanges |
||
• |
Charitable Legacy Rider: An optional rider may be elected at issue that provides an additional death benefit of 1% of the base policy face amount to the qualified charitable organization(s) chosen by the policy owner at no additional cost. |
• |
Living Benefits Rider: This feature enables you to receive a portion (generally the lesser of 75% or $250,000) of the policy’s death benefit (excluding death benefits payable under certain other policy riders), if the insured person has a terminal illness (as defined in the rider). We make no additional charge for the rider, but we will deduct a one-time administrative charge of up to $250 from any living benefit we pay. This rider will automatically be included at issue if you apply for a face amount of at least $100,000. There will be a $100 administrative charge if this rider is not added at issue. |
• |
No-Lapse Guarantee Rider: This rider provides you with a guarantee against policy termination for a specific period of time. This rider is automatically added to policies at no additional cost. |
• |
Policy Continuation Rider: Your policy offers an additional feature against policy termination due to an outstanding loan if the criteria for the Rider are satisfied, called “policy continuation”, which should be exercised before there is insufficient net policy account value to pay the monthly charges. If this rider is exercised, there is a one-time charge. See “Policy Continuation Charge” in this prospectus. This rider is automatically included in your policy. |
Transaction Fees | ||||||
Charge |
When Charge is Deducted |
Amount Deducted | ||||
(1) | ||||||
(2) |
6 % of each premium(3) , not to exceed an amount per $1,000 of initial base policy face amountHighest: $ Lowest: $ | |||||
Charge for a Representative Investor (male age 35 at issue in the select non-tobacco user risk class) |
Upon surrender | Representative: $28.26 | ||||
Request a decrease in your policy’s face amount during its first 10 years (2) |
Effective date of the decrease | A pro rata portion of the charge that would apply to a full surrender at the time of the decrease. | ||||
(4) | ||||||
$ (5) (7) | ||||||
Special Services Charges • (6) • (6) • (7) • (8) • (8)(9) • (8) |
Charge: $ Charge: $ Maximum Charge: $ Charge: $ Maximum Charge: $ Charge: $ |
(1) |
(2) | This charge varies based on individual characteristics of the insured, and may not be representative of the charge that you will pay. In particular, the initial amount of the surrender charge depends on each insured’s specific characteristics. Your financial professional can provide you with more information about these charges as they relate to the insured’s particular characteristics. See “Deducting policy charges” under “More information about policy charges” in this prospectus. |
(3) | The surrender charge percentage of premium we use is determined by the policy year in which you surrender your contract to receive its cash value, or reduce the face amount of your policy as provided in the following table: |
Table of Premium Based Surrender Charges | ||||||||||||||||||||||
Policy Year of Premium Payment |
Policy Year of Surrender | |||||||||||||||||||||
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
11+ | ||||||||||||
1 |
6% | 5% | 4% | 3% | 2% | 0% | 0% | 0% | 0% | 0% | 0% | |||||||||||
2 |
6% | 5% | 4% | 3% | 2% | 0% | 0% | 0% | 0% | 0% | ||||||||||||
3 |
6% | 5% | 4% | 3% | 2% | 0% | 0% | 0% | 0% | |||||||||||||
4 |
6% | 5% | 4% | 3% | 2% | 0% | 0% | 0% | ||||||||||||||
5 |
6% | 5% | 4% | 3% | 2% | 0% | 0% | |||||||||||||||
6 |
6% | 5% | 4% | 3% | 2% | 0% | ||||||||||||||||
7 |
6% | 5% | 4% | 3% | 0% | |||||||||||||||||
8+ |
0% | 0% | 0% | 0% |
(4) | The actual amount of Early Distribution Adjustment is determined by a formula that depends on, among other things, how a specified widely published stock market index has performed since the Segment Start Date. This could happen, for example, if there was a 100% decline in the S&P 500 Price Return Index. Please refer to the MSO II Prospectus for more information about the index and Early Distribution Adjustment. If your policy was issued with the original Market Stabilizer Option ® |
(5) |
(6) | Unless you specify otherwise, this charge will be deducted from the amount you request. |
(7) | We do not currently charge this fee, but reserve the right to in the future. |
(8) | The charge for this service must be paid using funds outside of your policy. Please see “Deducting policy charges” under “More Information about policy charges” in this prospectus for more information. |
(9) | The charge for this service may be less depending on the policy history you request. Please see “Deducting policy charges” under “More Information about policy charges” in this prospectus for more information. |
Periodic Charges Other Than Annual Portfolio Company Expenses | ||||||
Charge |
When Charge is Deducted |
Amount Deducted | ||||
Base Contract Charge: |
||||||
(1)(2) |
(1) Policy Year |
Amount Deducted | ||||
1 2+ |
$ $ | |||||
plus |
(2) Charge per $1,000 of the initial base policy face amount: | ||||
Highest: $ Lowest: $ | ||||
Charge for Representative Investor (guaranteed rate for a male age 35 at issue in the select non-tobacco user risk class) |
Monthly |
Representative: $0.37 |
(1)(2)(3) :Minimum and Maximum Charge |
Charge per $1,000 of the amount for which we are at risk: (4) Highest: $ Lowest: $ | |||||
non-tobacco user risk class) |
Monthly |
Representative: $0.12 | ||||
Policy Year |
Annual % of your value in our variable investment options and MSO II (if applicable) (7) | |||||
1-10 11+ |
(6) |
Periodic Charges Other Than Annual Portfolio Company Expenses | ||||
Charge |
When Charge is Deducted |
Amount Deducted | ||
Optional Benefit Charges: |
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Market Stabilizer Option ® II (7) |
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Variable Index Segment Account Charge |
(8) | |||
MSO II loan spread (9) for Amounts of policy Loans Allocated to a Segment |
On each policy anniversary (or on loan termination, if earlier) |
|||
The charge is equal to the policy account value on the date of exercise, multiplied by the Policy Continuation Charge Rate: | ||||
Maximum rate (10) | ||||
$ | ||||
$ |
(1) |
(2) | Not applicable after the insured person reaches age 121. |
(3) |
(4) | Our amount “at risk” is the difference between the amount of death benefit and the policy account value as of the deduction date. |
(5) |
(6) | Please refer to the MSO II Prospectus for information about MSO II and related charges and deductions, as well as the meaning of special terms that are relevant to MSO II (such as “Segment,” “Segment Term,” “Segment Start Date,” “Segment Account Value” and “Early Distribution Adjustment”). MSO II is not available in all jurisdictions and your policy may have been issued with the original Market Stabilizer Option ® ® |
(7) |
(8) | We charge interest on policy loans but credit you with interest on the amount of the policy account value we hold as collateral for the loan. The “spread” is the difference between the interest rate we charge you on a policy loan and the interest rate we credit to you on the amount of your policy account value that we hold as collateral for the loan. Please refer to the MSO II Prospectus for more information. |
(9) | This is the maximum rate for an insured person who has attained age 75. The rate declines each year based on attained age. |
Annual Portfolio Company Expenses |
Minimum |
Maximum | ||||
(12b-1) fee, and other expenses)(1) |
||||||
(1) |
(1) | “Total Annual Portfolio Operating Expenses” are for the year ended December 31, 2023, and may be based, in part, on estimated amounts of such expenses. Pursuant to a contract, Equitable Investment Management Group, LLC has agreed to make payments or waive its management, administrative and other fees to limit the expenses of certain affiliated Portfolios through April 30, 2025, (“Expense Limitation Arrangement”) (unless the Trust’s Board of Trustees consents to an earlier revision or termination of this agreement). The Expense Limitation Arrangement may be terminated by Equitable Investment Management Group, LLC at any time after April 30, 2025. The Expense Limitation Arrangement does not apply to unaffiliated Portfolios. |
Investment Expense Reduction Applied to the Calculation of Daily Unit Values |
If the Net Total Annual Portfolio Operating Expenses (before the Investment Expense Reduction) are: |
Then the annual Investment Expense Reduction(**) for that Variable Investment Option will be: | |
Less than 0.80% | The amount equal to the greater of 0.15% and any excess of the Net Total Annual Portfolio Operating Expense over 0.40%. However, in no event will the annual Investment Expense Reduction exceed the Net Total Annual Portfolio Operating Expenses. | |
0.80% through 1.15% | The amount equal to the greater of 0.15% and any excess of the Net Total Annual Portfolio Operating Expense over 0.80%. However, in no event will the annual Investment Expense Reduction exceed the Net Total Annual Portfolio Operating Expenses. | |
Greater than 1.15% | 0.15% |
** | Because the expenses contained in the Trust prospectus for each Portfolio reflect annual expenses, the actual expenses incurred may be higher or lower on any given day. |
After applying the Investment Expense Reduction to the variable investment options, the lowest and highest net annual portfolio operating expenses paid by the policy owner for the year ended December 31, 2023, would have been: | Lowest 0.39% |
Highest 2.21% |
• | If the investment options you choose perform poorly, you could lose some or all of the premiums you pay. |
• | If the investment options you choose do not make enough money to pay for the policy charges, except to the extent provided by any no-lapse guarantee you may have to pay more premiums to keep your policy from terminating. |
• | Your policy will lapse and possibly terminate without value if it does not have enough net policy account value to pay monthly charges when due, and this could occur due to insufficient premium payments, policy charges, policy loans, partial withdrawals, and/or poor investment performance. If your policy lapses and terminates you will not be paid a death benefit. |
• | If you take a policy loan or a partial withdrawal you may decrease the net policy account value, cash surrender value and/or death benefit and may risk the loss of the no lapse guarantee. |
• | There are unique risks associated with MSO II including loss of up to 90% of principal and previously credited interest due to negative performance or increased volatility of the Index even if the Index has experienced positive performance since the Segment Start Date. This could happen, for example, if there was a 100% decline in the S&P 500 Price Return Index. |
• | We can increase, without your consent and subject to any necessary regulatory approvals, any charge that you currently pay at less than the maximum amount. We will not increase any charge beyond the highest maximum noted in the tables in “Fee Table” in this prospectus. |
• | There may be adverse tax consequences associated with taking a policy loan or making a partial withdrawal from your policy. |
• | You may have to pay a surrender charge and there may be adverse tax consequences if you wish to discontinue some or all of your insurance coverage under a policy. |
• | Partial withdrawals from your policy are available only after the first policy year and must be at least $500 and no more than the net cash surrender value. Under certain circumstances, we will automatically reduce your policy’s face amount as a result of a partial withdrawal. |
• | The guarantees we make to you under this policy are supported by the Company’s general account and are subject to the Company’s claims paying ability. You should look solely to the financial strength of the Company for its claims-paying ability. |
(1) | request for our automatic transfer service (our dollar cost averaging service); |
(2) | request for our asset rebalancing service; |
(3) | transfers among investment options (if submitted by e-mail); |
(4) | designation of new policy owner(s); |
(5) | designation of new beneficiary(ies); and |
(6) | authorization for transfers by your financial professional. |
(a) | policy surrenders; |
(b) | transfers among investment options (not submitted by e-mail); and |
(c) | changes in allocation percentages for premiums and deductions. |
(a) | By requiring a Portfolio sub-adviser to buy and sell large amounts of securities at inopportune times, a Portfolio’s investment performance and the ability of the sub-adviser to fully implement the Portfolio’s investment strategy could be negatively affected; and |
(b) | By generating higher turnover in its securities or other assets than it would have experienced without being impacted by the ATP, a Portfolio could incur higher operating expense ratios and transaction costs than comparable funds. In addition, even Portfolios structured as funds-of-funds that are not available for investment by contract owners who are subject to the ATP could also be impacted by the ATP if those Portfolios invest in underlying funds that are themselves subject to significant asset turnover caused by the ATP. Because the ATP formulas generate unique results for each contract, not all contract owners who are subject to the ATP will be affected by operation of the ATP in the same way. On any particular day on which the ATP is activated, some contract owners may have a portion of their account value transferred to the EQ/Ultra Conservative Strategy Portfolio investment option and others may not. If the ATP causes significant transfers of total account value out of one or more Portfolios, any resulting negative effect on the performance of those Portfolios will be experienced to a greater extent by a contract owner (with or without the ATP) invested in those Portfolios whose account value was not subject to the transfers. |
— | Direct billing is available on monthly, quarterly, semiannual, and annual modes. The Company will send premium reminder notices approximately 25 days before the due date based on the mode chosen, i.e., monthly, quarterly, semi-annually, or annually. |
— | Military allotment billing is available on monthly mode only. |
— | Salary allotment is available on monthly, quarterly, semiannual, and annual modes. The minimum case requirement for new salary allotment billing units is five lives. |
— | Systematic billing is available on monthly and quarterly modes. Under systematic billing, the policy owner may specify the day of the month on which the premiums should be deducted from their account (draft date). |
• | you have paid sufficient premiums to keep the no-lapse guarantee in effect, the no-lapse guarantee is still in effect and any outstanding loan and accrued loan interest does not exceed the policy account value (see “You can guarantee that your policy will not terminate before a certain date” below); or |
• | you satisfy the requirements of the Policy Continuation Rider including that there is sufficient net policy account value to cover the Policy Continuation Charge (see “Policy Continuation Rider” in “Other benefits available under the policy”). |
Issue Age |
Qualification Requirements |
Policy Duration |
Credit Percentage | |||
18-29 |
5 target premiums by the end of the first 7 policy years or 2.25 target premiums by the end of the first 2 policy years |
policy years 15-20 policy years 21 and later |
0.45% 0.25% | |||
30-39 |
5 target premiums by the end of the first 7 policy years or 2.25 target premiums by the end of the first 2 policy years |
policy years 10-20 policy years 21 and later |
0.45% 0.25% | |||
40-49 |
4.5 target premiums by the end of the first 7 policy years or 2.25 target premiums by the end of the first 2 policy years |
policy years 10-20 policy years 21 and later |
0.45% 0.25% | |||
50-65 |
3 target premiums by the end of the first 5 policy years or 2.25 target premiums by the end of the first 2 policy years |
policy years 6-20 policy years 21 and later |
0.45% 0.25% |
• | For individually owned policies for which you are the owner, by logging onto our website, described under “By Internet” in “How to reach us” in this prospectus; or |
• | For corporation and trust owned policies, we require a special authorization form to obtain access. The form is available on our website www.equitable.com or by contacting our Administrative Office. |
• | you cannot make transfers or withdrawals of the collateral; |
• | we expect to credit different rates of interest to loan collateral than we credit under our guaranteed interest option; |
• | we do not count the collateral when we compute our customer loyalty credit; and |
• | the collateral is not available to pay policy charges. |
• | the death benefit received by the beneficiary under your policy will not be subject to federal income tax; and |
• | increases in your policy account value as a result of interest or investment experience will not be subject to federal income tax, unless and until there is a distribution from your policy, such as a surrender, a partial withdrawal, loan or a payment to you. |
Name of Benefit |
Purpose |
Is Benefit Standard or Optional |
Brief Description of Restrictions/Limitation | |||
• Only available at issue and an accredited charitable beneficiary must be named at that time. • Available for base policy face amounts of $1 million and above, where the minimum benefit would be $10,000 and the maximum benefit would be $100,000 ( i.e. • If the base policy face amount is reduced after issue for any reason, the benefit will be payable on the face amount at the time of the insured’s death, provided the face amount is at least $1 million. • If the base policy face amount has been decreased below $1 million at the time of death, then no benefit is payable. | ||||||
• May be elected either at policy issue or after policy issue. If elected after issue, we will deduct $100 from your policy account value at the time of the transaction. • Subject to underwriting guidelines and state availability, your policy will automatically include this rider if you apply for a face amount of at least $100,000. • The maximum aggregate amount of payments that will be paid under this rider for all policies issued by the Company or an affiliate company on the life of the same insured person is $500,000. | ||||||
No-Lapse Guarantee Rider |
• Subject to the payment of certain specified amounts of premiums. • Rider will not prevent the policy from entering a grace period if the amount of your outstanding policy loans and accrued loan interest is greater than your policy account value. • Subject to certain conditions, provides a guarantee against policy lapse for 15 years. |
Name of Benefit |
Purpose |
Is Benefit Standard or Optional |
Brief Description of Restrictions/Limitation | |||
• You can exercise the rider and be placed on “policy continuation,” if at the beginning of any policy month on or following the policy anniversary nearest the insured person’s 75 th birthday, but not earlier than the 15th policy anniversary, all of the following conditions apply:• The amount of any outstanding policy loan and accrued loan interest equals or exceeds the policy account value multiplied by the Policy Continuation Trigger Percentage as provided in your policy; • There must be sufficient net policy account value to cover the Policy Continuation Charge; • The policy must not be a Modified Endowment Contract as defined in section 7702A of the Internal Revenue Code of 1986 and exercising the rider must not cause the policy to become a Modified Endowment Contract. • The amount of any outstanding policy loan and accrued loan interest is greater than the current base policy face amount; • The policy is not in a grace period; and • No current or future distributions will be required to be paid from the policy to maintain its qualification as “life insurance” under the Internal Revenue Code. • When the rider is in effect the following are prohibited: • partial withdrawals; • premium payments; • changes to the policy face amount or death benefit option; • transfers out of, or allocations out of, the unloaned guaranteed interest option to the variable investment options even if the loan is fully repaid; and • any other requested policy changes. • All additional benefit riders and endorsements terminate when the Policy Continuation Rider is exercised. |
• | Rider termination. |
— | the termination of the policy; |
— | the surrender of the policy; |
— | the date we receive the policy owner’s written request to terminate the rider; or |
— | the date of the insured’s death |
Before Payment of Living Benefits: |
||||
Policy Loan Outstanding | $ | 25,000 | ||
Net Death Benefit | $ | 175,000 | ||
Net Cash Surrender Value | $ | 25,000 | ||
Living Benefits Payment Requested | $ | 65,625 | ||
Net Amount Minus $250 Processing Fee | $ | 65,375 |
Immediately After Payment of Living Benefits |
||||
Net Death Benefit | $ | 175,000 | ||
Lien Outstanding | $ | 65,625 | ||
Death Benefit Net of the Policy Loan and Lien | $ | 109,375 | ||
Net Cash Surrender Value | $ | 25,000 | ||
Initial Lien against Cash Value [65,625 x (25,000/175,000)] 1 |
$ | 9,375 | ||
Cash Surrender Value Net of Policy Loan and Lien | $ | 15,625 |
1 | The lien resulting from the Living Benefit payment is equal to the amount of Living Benefit plus accrued interest plus additional amounts, if any, that are advanced to keep the policy in force. The amount of cash value net of existing policy loans, in excess of a specified percentage (which will not be greater than 100%) of the lien, is available for additional policy loans or partial withdrawals. The specified percentage is equal to the net cash value divided by the net death benefit. The net cash value is the cash value minus any outstanding policy loan and accrued loan interest. The net death benefit is the death benefit minus any outstanding policy loan and accrued loan interest. |
Ten Months Later: |
||||
Lien | $ | 65,625 | ||
Interest on Lien 2 |
$ | 2,852 | ||
Lien Plus Interest | $ | 68,477 | ||
Policy Loan | $ | 25,000 | ||
Interest on Policy Loan 2 |
$ | 1,037 | ||
Policy Loan Plus Interest | $ | 26,037 | ||
Death Benefit Net of Policy Loan and Lien [200,000 – $68,477 – $26,037] | $ | 105,486 |
2. | Assumes a hypothetical 8% annual rate for the outstanding policy loan and the Lien. For policies with cash values, the actual interest rate for the Lien at the time the living benefits payment is made will not exceed the greater of: (i) the 90-Day Treasury Bill or (ii) the higher of (a) the maximum adjustable policy loan interest rate based on the “Published Monthly Average,” as defined below, for the calendar month that ends two months before the date of application for the living benefits payment or (b) the policy guaranteed cash value interest rate plus 1% per year.* The interest rate accrued on the portion of the Lien that is allocated to the policy cash value will not be more than the policy loan interest rate. |
* | For policies without cash values, the actual interest rate for the Lien at the time the living benefits payment is made will not exceed the greater of: (i) the 90-Day Treasury Bill or (ii) the “Published Monthly |
Average,” as defined below, for the calendar month that ends two months before the date of application for the living benefits payment. |
• | You have satisfied the “guarantee premium test” (discussed below); and |
• | Any outstanding loan and accrued loan interest does not exceed the policy account value. |
(1) | the amount of any outstanding policy loan and accrued loan interest equals or exceeds the policy account value multiplied by the Policy Continuation Trigger Percentage as provided in your policy. |
(2) | your policy has been in force for at least 15 policy years; |
(3) | the insured person’s attained age is at least 75; |
(4) | the outstanding loan amount and accrued loan interest exceeds the current base policy face amount; |
(5) | the policy is not then in a grace period; |
(6) | no current or future distribution from the policy will be required to maintain its qualification as life insurance under the Internal Revenue Code; |
(7) | there must be sufficient net policy account value to cover the Policy Continuation Charge described in “Fee Table”; and |
(8) | the policy must not be a Modified Endowment Contract as defined in section 7702A of the Internal Revenue Code of 1986 and exercising this rider must not cause the policy to become a Modified Endowment Contract. |
(1) | the policy will not lapse and no further premiums will be required; |
(2) | loan interest will continue to be due on each policy anniversary. If the interest is not paid when due, it will be added to your outstanding loan; |
(3) | any payments we receive from you while the policy is on Policy Continuation will be applied as loan repayments and will be allocated to the unloaned portion of the guaranteed interest option to the extent of any outstanding loan and accrued loan interest. Any excess will be refunded to you; and |
(4) | on each policy anniversary and any time you repay all of a policy loan, interest credited to the loaned portion of the guaranteed interest option will be allocated to the unloaned portion of the guaranteed interest option. |
(1) | partial withdrawals; |
(2) | premium payments; |
(3) | changes to the policy face amount; |
(4) | transfers out of, or allocations out of, the unloaned guaranteed interest option to the variable investment options even if the loan is fully repaid; and |
(5) | any other requested policy changes. |
Table of Premium Based Surrender Charges |
||||||||||||||||||||||||||||||||||||||||||||
Policy Year of Premium Payment |
Policy Year of Surrender |
|||||||||||||||||||||||||||||||||||||||||||
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
11 + |
||||||||||||||||||||||||||||||||||
1 |
6% | 5% | 4% | 3% | 2% | 0% | 0% | 0% | 0% | 0% | 0% | |||||||||||||||||||||||||||||||||
2 |
6% | 5% | 4% | 3% | 2% | 0% | 0% | 0% | 0% | 0% | ||||||||||||||||||||||||||||||||||
3 |
6% | 5% | 4% | 3% | 2% | 0% | 0% | 0% | 0% | |||||||||||||||||||||||||||||||||||
4 |
6% | 5% | 4% | 3% | 2% | 0% | 0% | 0% | ||||||||||||||||||||||||||||||||||||
5 |
6% | 5% | 4% | 3% | 2% | 0% | 0% | |||||||||||||||||||||||||||||||||||||
6 |
6% | 5% | 4% | 3% | 2% | 0% | ||||||||||||||||||||||||||||||||||||||
7 |
6% | 5% | 4% | 3% | 0% | |||||||||||||||||||||||||||||||||||||||
8+ |
0% | 0% | 0% | 0% |
• | Management fees. |
• | 12b-1 fees. |
• | Operating expenses, such as trustees’ fees, independent public accounting firms’ fees, legal counsel fees, administrative service fees, custodian fees and liability insurance. |
• | Investment-related expenses, such as brokerage commissions. |
If the Net Total Annual Portfolio Operating Expenses (before the Investment Expense Reduction) are: |
Then the annual Investment Expense Reduction(**) for that variable investment option will be: | |
Less than 0.80% | The amount equal to the greater of 0.15% and any excess of the Net Total Annual Portfolio Operating Expense over 0.40%. However, in no event will the annual Investment Expense Reduction exceed the Net Total Annual Portfolio Operating Expenses. | |
0.80% through 1.15% | The amount equal to the greater of 0.15% and any excess of the Net Total Annual Portfolio Operating Expense over 0.80%. However, in no event will the annual Investment Expense Reduction exceed the Net Total Annual Portfolio Operating Expenses. | |
Greater than 1.15% | 0.15% |
** | Because the expenses contained in the Trust prospectus for each Portfolio reflect annual expenses, the actual expenses incurred may be higher or lower on any given day. |
• | premium payments received after the policy’s investment start date (discussed below) |
• | loan repayments and interest payments |
• | withdrawals |
• | tax withholding elections |
• | face amount decreases that result from a withdrawal |
• | changes of allocation percentages for premium payments or monthly deductions |
• | surrenders |
• | changes of owner |
• | changes of beneficiary |
• | transfers from a variable investment option to the guaranteed interest option |
• | loans |
• | transfers among variable investment options |
• | assignments |
• | policy cancellation |
• | changes in face amount |
• | restoration of terminated policies |
• | termination of any additional benefit riders you have elected |
• | If you submit the full minimum initial premium to your financial professional at the time you sign the application and before the policy is issued, and we issue the policy as it was applied for (or on a better risk class than applied for), then the register date will be the later of (a) the date you signed part I, section D of the policy application or (b) the date a medical or paramedical professional signed part II of the policy application. |
• | In general, if we do not receive your full minimum initial premium at our Administrative Office before the issue date or, if we issue the policy on a different (less favorable) basis than you applied for, the register date initially will appear on your policy as the date the policy is issued; however, we will move the register date to the date we deliver the policy provided we received your full minimum initial premium. If your policy was delivered on the 29th, 30th or 31st of the month, we will move the register date to the 1st of the following month. In certain circumstances, even if we issue your policy on a less favorable basis, the premium amount you paid may be sufficient to cover your full minimum initial premium. In this event, we will not move the register date to the delivery date. These procedures are designed to ensure that premiums and charges will commence on the same date as your insurance coverage. We will determine the interest rate applicable to the guaranteed interest option based on the register date. This rate will be applied to funds allocated to the guaranteed interest option as of the date we receive the full minimum initial premium at our Administrative Office. |
• | For Section 1035 exchanges: |
• | If you submit the full initial premium to your financial professional at the time you sign the application, and we issue the policy as it was applied for, then the register date will be the later of (a) the date you signed part I, section D of the policy application, or (b) the date a medical professional signed part II of the policy application. |
• | If we do not receive your full initial premium payment at our Administrative Office before the issue date, or we issue the policy on a different (less favorable) basis than you applied for, the register date will be: |
• | The date we receive the 1035 exchange proceeds, provided it meets the full minimal initial premium. If we receive the full minimum initial premium on the 29th, 30th or 31st of the month, we will move the register date to the 28th of the month. |
• | changes of premium allocation percentages |
• | changes of address |
• | request forms and statements |
• | enroll for electronic delivery and view statements/documents online |
• | to pay your premium or make a loan repayment |
• | combine two or more variable investment options or withdraw assets relating to the policy from one investment option and put them into another; |
• | end the registration of, or re-register, each Separate Account under the Investment Company Act of 1940; |
• | operate each Separate Account under the direction of a “committee” or discharge such a committee at any time; |
• | restrict or eliminate any voting rights or privileges of policy owners (or other persons) that affect each Separate Account; |
• | operate each Separate Account, or one or more of the variable investment options, in any other form the law allows. This includes any form that allows us to make direct investments, in which case we may charge the Separate Account an advisory fee. We may make any legal investments we wish for the Separate Account. In addition, we may disapprove any change in investment advisers or in investment policy unless a law or regulation provides differently. |
— | 8.5% of the premiums you pay up to one target premium in your policy’s first year, plus 3.5% of all other premiums you pay in your policy’s first year; |
— | 14% of the premiums you pay up to one target premium in your policy’s second year, plus 5% of all other premiums you pay in your policy’s second year; |
— | 12.75% of the premiums you pay up to one target premium in policy years three through five, plus 5% of all other premiums you pay in your policy years three through five; |
— | 10.75% of the premiums you pay up to one target premium in policy years six through seven, plus 3% of all other premiums you pay in your policy years six through seven; plus |
— | 3% of all other premiums you pay in policy years eight through ten; plus |
— | 2% of all other premiums you pay in policy years eleven and later. |
— | 14.5% of the premiums you pay up to one target premium in your policy’s first year, plus 2.8% of all other premiums you pay in your policy’s first year; plus |
— | 9% of the premiums you pay up to one target premium in policy years two through seven, plus 2.8% of all other premiums you pay in your policy years two through seven; plus |
— | 2.8% of all other premiums you pay in policy years eight through ten. |
TYPE |
Portfolio Company – Investment Adviser; Sub-Adviser(s), as applicable |
Current Expenses |
Average Annual Total Returns (as of 12/31/2023) |
|||||||||||||||
1 year |
5 year |
10 year |
||||||||||||||||
%^ | % | % | % | |||||||||||||||
%^ | % | % | ||||||||||||||||
Barrow, Hanley, Mewhinney & Strauss, LLC d/b/a Barrow Hanley Global Investors |
%^ | % | % | % | ||||||||||||||
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% | % | % | % | |||||||||||||||
% | % | % | % | |||||||||||||||
%^ | % | |||||||||||||||||
† |
% | % | % | % | ||||||||||||||
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%^ | % | % | ||||||||||||||||
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† |
%^ | % | % | % | ||||||||||||||
† |
%^ | % | % | % |
TYPE |
Portfolio Company – Investment Adviser; Sub-Adviser(s), as applicable |
Current Expenses |
Average Annual Total Returns (as of 12/31/2023) |
|||||||||||||||
1 year |
5 year |
10 year |
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%^ | % | % | % | |||||||||||||||
Brandywine Global Investment Management, LLC, Loomis, Sayles & Company, L.P. |
%^ | % | % | % | ||||||||||||||
%^ | % | % | % | |||||||||||||||
%^ | % | % | % | |||||||||||||||
%^ | % | % | ||||||||||||||||
%^ | % | % | ||||||||||||||||
(1) — |
%^ | |||||||||||||||||
%^ | % | % | % | |||||||||||||||
† |
% | % | % | % | ||||||||||||||
%^ | % | % | % | |||||||||||||||
† |
% | % | % | % | ||||||||||||||
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% | % | % | ||||||||||||||||
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† |
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† |
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(1) — |
%^ | % | ||||||||||||||||
Loomis, Sayles & Company, L.P. |
%^ | % | % | % | ||||||||||||||
%^ | % | % | % | |||||||||||||||
%^ | % | % |
TYPE |
Portfolio Company – Investment Adviser; Sub-Adviser(s), as applicable |
Current Expenses |
Average Annual Total Returns (as of 12/31/2023) |
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1 year |
5 year |
10 year |
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%^ | % | % | ||||||||||||||||
% | % | % | ||||||||||||||||
%^ | - |
% | % | |||||||||||||||
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† |
% | % | % | % | ||||||||||||||
† |
% | % | % | % | ||||||||||||||
† |
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%^ | % | % | ||||||||||||||||
% | % | % | % | |||||||||||||||
%^ | % | % | % | |||||||||||||||
(1) — |
%^ | % | ||||||||||||||||
(1) — |
%^ | % | ||||||||||||||||
% | % | % | % | |||||||||||||||
%^ | % | % | % |
^ |
This Portfolio’s annual expenses reflect temporary fee reductions. |
† | EQ Managed Volatility Portfolios that include the EQ volatility management strategy as part of their investment objective and/or principal investment strategy, and the EQ/affiliated Fund of Fund Portfolios that invest in Portfolios that use the EQ volatility management strategy, are identified in the chart by a “†“. See “Portfolios of the Trusts” for more information regarding volatility management. |
* |
The Portfolio operates as a “government money market fund.” The Portfolio will invest at least 99.5% of its total assets in U.S. government securities, cash, and/or repurchase agreements that are fully collateralized by U.S. government securities or cash. |
(1) |
This variable investment option will not be available until May 13, 2024. |
TYPE |
Portfolio Company – Investment Adviser; Sub-Adviser(s), as applicable |
Current Expenses |
Average Annual Total Returns (as of 12/31/2023) |
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1 year |
5 year |
10 year |
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% | % | % | % | |||||||||||||||
%^ | % | % | % | |||||||||||||||
%^ | % | % | % | |||||||||||||||
® |
% | % | % | % | ||||||||||||||
® |
%^ | % | % | % | ||||||||||||||
® ® |
%^ | % | % | % | ||||||||||||||
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® |
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® |
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® |
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® |
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(1) — |
% | % | % | % | ||||||||||||||
® |
%^ | - |
% | % | - |
% | ||||||||||||
%^ | % | % | % |
TYPE |
Portfolio Company – Investment Adviser; Sub-Adviser(s), as applicable |
Current Expenses |
Average Annual Total Returns (as of 12/31/2023) |
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1 year |
5 year |
10 year |
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% | % | % | % | |||||||||||||||
Mid-Cap Growth Portfolio |
%^ | % | % | % | ||||||||||||||
%^ | % | % | % | |||||||||||||||
%^ | % | - |
% | - |
% | |||||||||||||
% | - |
% | % | - |
% |
^ | This Portfolio’s annual expenses reflect temporary fee reductions. |
(1) |
This is the variable investment option’s new name. The variable investment option’s former name is Delaware Ivy VIP High Income which may continue to be used in certain documents for a period of time after the date of this prospectus. |
Death Benefit |
Account Value |
Net Cash Surrender Value |
||||||||||||||||||||||||||||||||||||||||
End Of Policy Year |
Premiums Accum. At 5% Interest Per Year |
Assuming Hypothetical Gross Annual Investment Return of: |
Assuming Hypothetical Gross Annual Investment Return of: |
Assuming Hypothetical Gross Annual Investment Return of: |
||||||||||||||||||||||||||||||||||||||
0% Gross |
6% Gross |
12% Gross |
0% Gross |
6% Gross |
12% Gross |
0% Gross |
6% Gross |
12% Gross |
||||||||||||||||||||||||||||||||||
1 | $ | 43,267 | $ | 650,000 | $ | 650,000 | $ | 650,000 | $ | 35,287 | $ | 37,498 | $ | 39,708 | $ | 32,814 | $ | 35,026 | $ | 37,235 | ||||||||||||||||||||||
2 | $ | 88,698 | $ | 650,000 | $ | 650,000 | $ | 650,000 | $ | 70,492 | $ | 77,128 | $ | 84,017 | $ | 65,960 | $ | 72,595 | $ | 79,484 | ||||||||||||||||||||||
3 | $ | 136,400 | $ | 650,000 | $ | 650,000 | $ | 650,000 | $ | 105,156 | $ | 118,496 | $ | 132,890 | $ | 98,975 | $ | 112,315 | $ | 126,709 | ||||||||||||||||||||||
4 | $ | 186,488 | $ | 650,000 | $ | 650,000 | $ | 650,000 | $ | 139,289 | $ | 161,682 | $ | 186,804 | $ | 131,872 | $ | 154,265 | $ | 179,387 | ||||||||||||||||||||||
5 | $ | 239,079 | $ | 650,000 | $ | 650,000 | $ | 650,000 | $ | 172,896 | $ | 206,767 | $ | 246,281 | $ | 164,655 | $ | 198,526 | $ | 238,039 | ||||||||||||||||||||||
6 | $ | 294,301 | $ | 650,000 | $ | 650,000 | $ | 685,549 | $ | 205,989 | $ | 253,840 | $ | 311,897 | $ | 197,748 | $ | 245,598 | $ | 303,655 | ||||||||||||||||||||||
7 | $ | 352,283 | $ | 650,000 | $ | 654,466 | $ | 829,882 | $ | 238,578 | $ | 302,994 | $ | 384,205 | $ | 230,337 | $ | 294,752 | $ | 375,963 | ||||||||||||||||||||||
8 | $ | 369,897 | $ | 650,000 | $ | 664,484 | $ | 892,254 | $ | 231,686 | $ | 312,993 | $ | 420,280 | $ | 225,917 | $ | 307,224 | $ | 414,511 | ||||||||||||||||||||||
9 | $ | 388,392 | $ | 650,000 | $ | 677,330 | $ | 963,425 | $ | 225,658 | $ | 324,547 | $ | 461,631 | $ | 221,949 | $ | 320,838 | $ | 457,923 | ||||||||||||||||||||||
10 | $ | 407,812 | $ | 650,000 | $ | 693,544 | $ | 1,045,255 | $ | 220,664 | $ | 338,149 | $ | 509,632 | $ | 220,664 | $ | 338,149 | $ | 509,632 | ||||||||||||||||||||||
15 | $ | 520,483 | $ | 650,000 | $ | 814,965 | $ | 1,618,380 | $ | 209,618 | $ | 433,262 | $ | 860,383 | $ | 209,618 | $ | 433,262 | $ | 860,383 | ||||||||||||||||||||||
20 | $ | 664,282 | $ | 650,000 | $ | 956,613 | $ | 2,503,132 | $ | 197,611 | $ | 554,558 | $ | 1,451,091 | $ | 197,611 | $ | 554,558 | $ | 1,451,091 | ||||||||||||||||||||||
25 | $ | 847,811 | $ | 650,000 | $ | 1,110,886 | $ | 3,830,048 | $ | 181,019 | $ | 700,874 | $ | 2,416,434 | $ | 181,019 | $ | 700,874 | $ | 2,416,434 | ||||||||||||||||||||||
30 | $ | 1,082,046 | $ | 650,000 | $ | 1,291,998 | $ | 5,868,853 | $ | 160,052 | $ | 883,115 | $ | 4,011,519 | $ | 160,052 | $ | 883,115 | $ | 4,011,519 | ||||||||||||||||||||||
35 | $ | 1,380,995 | $ | 650,000 | $ | 1,504,068 | $ | 9,000,798 | $ | 130,752 | $ | 1,108,377 | $ | 6,632,865 | $ | 130,752 | $ | 1,108,377 | $ | 6,632,865 | ||||||||||||||||||||||
40 | $ | 1,762,539 | $ | 650,000 | $ | 1,756,191 | $ | 13,844,400 | $ | 87,195 | $ | 1,386,102 | $ | 10,926,914 | $ | 87,195 | $ | 1,386,102 | $ | 10,926,914 | ||||||||||||||||||||||
45 | $ | 2,249,496 | $ | 650,000 | $ | 2,058,328 | $ | 21,373,532 | $ | 13,906 | $ | 1,725,338 | $ | 17,915,786 | $ | 13,906 | $ | 1,725,338 | $ | 17,915,786 | ||||||||||||||||||||||
50 | $ | 2,870,990 | ** | $ | 2,418,247 | $ | 33,074,704 | ** | $ | 2,136,261 | $ | 29,217,937 | ** | $ | 2,136,261 | $ | 29,217,937 | |||||||||||||||||||||||||
55 | $ | 3,664,192 | ** | $ | 2,867,737 | $ | 51,659,085 | ** | $ | 2,635,788 | $ | 47,480,776 | ** | $ | 2,635,788 | $ | 47,480,776 | |||||||||||||||||||||||||
60 | $ | 4,676,540 | ** | $ | 3,428,570 | $ | 81,341,911 | ** | $ | 3,243,680 | $ | 76,955,451 | ** | $ | 3,243,680 | $ | 76,955,451 | |||||||||||||||||||||||||
65 | $ | 5,968,582 | ** | $ | 4,097,081 | $ | 128,013,206 | ** | $ | 4,028,595 | $ | 125,873,359 | ** | $ | 4,028,595 | $ | 125,873,359 |
* | The illustrations assume that planned periodic premiums are paid at the start of policy years one through seven. The death benefit, account value and net cash surrender value will differ if premiums are paid in different amounts or frequencies. |
** | Policy lapses unless additional payments are made. |
Death Benefit |
Account Value |
Net Cash Surrender Value |
||||||||||||||||||||||||||||||||||||||||
End Of Policy Year |
Premiums Accum. At 5% Interest Per Year |
Assuming Hypothetical Gross Annual Investment Return of: |
Assuming Hypothetical Gross Annual Investment Return of: |
Assuming Hypothetical Gross Annual Investment Return of: |
||||||||||||||||||||||||||||||||||||||
0% Gross |
6% Gross |
12% Gross |
0% Gross |
6% Gross |
12% Gross |
0% Gross |
6% Gross |
12% Gross |
||||||||||||||||||||||||||||||||||
1 | $ | 43,267 | $ | 650,000 | $ | 650,000 | $ | 650,000 | $ | 34,496 | $ | 36,677 | $ | 38,856 | $ | 32,024 | $ | 34,205 | $ | 36,384 | ||||||||||||||||||||||
2 | $ | 88,698 | $ | 650,000 | $ | 650,000 | $ | 650,000 | $ | 68,294 | $ | 74,773 | $ | 81,501 | $ | 63,762 | $ | 70,240 | $ | 76,968 | ||||||||||||||||||||||
3 | $ | 136,400 | $ | 650,000 | $ | 650,000 | $ | 650,000 | $ | 101,363 | $ | 114,297 | $ | 128,259 | $ | 95,182 | $ | 108,116 | $ | 122,078 | ||||||||||||||||||||||
4 | $ | 186,488 | $ | 650,000 | $ | 650,000 | $ | 650,000 | $ | 133,714 | $ | 155,306 | $ | 179,536 | $ | 126,297 | $ | 147,888 | $ | 172,119 | ||||||||||||||||||||||
5 | $ | 239,079 | $ | 650,000 | $ | 650,000 | $ | 650,000 | $ | 165,370 | $ | 197,869 | $ | 235,792 | $ | 157,129 | $ | 189,628 | $ | 227,551 | ||||||||||||||||||||||
6 | $ | 294,301 | $ | 650,000 | $ | 650,000 | $ | 653,962 | $ | 196,345 | $ | 242,052 | $ | 297,526 | $ | 188,103 | $ | 233,811 | $ | 289,284 | ||||||||||||||||||||||
7 | $ | 352,283 | $ | 650,000 | $ | 650,000 | $ | 788,528 | $ | 226,665 | $ | 287,939 | $ | 365,059 | $ | 218,423 | $ | 279,697 | $ | 356,818 | ||||||||||||||||||||||
8 | $ | 369,897 | $ | 650,000 | $ | 650,000 | $ | 840,872 | $ | 217,951 | $ | 294,900 | $ | 396,077 | $ | 212,182 | $ | 289,131 | $ | 390,308 | ||||||||||||||||||||||
9 | $ | 388,392 | $ | 650,000 | $ | 650,000 | $ | 897,416 | $ | 209,375 | $ | 302,119 | $ | 430,003 | $ | 205,666 | $ | 298,410 | $ | 426,294 | ||||||||||||||||||||||
10 | $ | 407,812 | $ | 650,000 | $ | 650,000 | $ | 958,038 | $ | 200,930 | $ | 309,603 | $ | 467,108 | $ | 200,930 | $ | 309,603 | $ | 467,108 | ||||||||||||||||||||||
15 | $ | 520,483 | $ | 650,000 | $ | 678,264 | $ | 1,373,397 | $ | 164,903 | $ | 360,587 | $ | 730,142 | $ | 164,903 | $ | 360,587 | $ | 730,142 | ||||||||||||||||||||||
20 | $ | 664,282 | $ | 650,000 | $ | 729,080 | $ | 1,986,632 | $ | 129,697 | $ | 422,655 | $ | 1,151,670 | $ | 129,697 | $ | 422,655 | $ | 1,151,670 | ||||||||||||||||||||||
25 | $ | 847,811 | $ | 650,000 | $ | 787,765 | $ | 2,889,626 | $ | 92,692 | $ | 497,012 | $ | 1,823,108 | $ | 92,692 | $ | 497,012 | $ | 1,823,108 | ||||||||||||||||||||||
30 | $ | 1,082,046 | $ | 650,000 | $ | 855,272 | $ | 4,218,875 | $ | 49,083 | $ | 584,601 | $ | 2,883,715 | $ | 49,083 | $ | 584,601 | $ | 2,883,715 | ||||||||||||||||||||||
35 | $ | 1,380,995 | ** | $ | 931,575 | $ | 6,168,984 | ** | $ | 686,496 | $ | 4,546,046 | ** | $ | 686,496 | $ | 4,546,046 | |||||||||||||||||||||||||
40 | $ | 1,762,539 | ** | $ | 1,017,945 | $ | 9,031,859 | ** | $ | 803,429 | $ | 7,128,539 | ** | $ | 803,429 | $ | 7,128,539 | |||||||||||||||||||||||||
45 | $ | 2,249,496 | ** | $ | 1,114,748 | $ | 13,226,826 | ** | $ | 934,407 | $ | 11,087,029 | ** | $ | 934,407 | $ | 11,087,029 | |||||||||||||||||||||||||
50 | $ | 2,870,990 | ** | $ | 1,221,911 | $ | 19,354,400 | ** | $ | 1,079,427 | $ | 17,097,526 | ** | $ | 1,079,427 | $ | 17,097,526 | |||||||||||||||||||||||||
55 | $ | 3,664,192 | ** | $ | 1,341,312 | $ | 28,317,848 | ** | $ | 1,232,824 | $ | 26,027,434 | ** | $ | 1,232,824 | $ | 26,027,434 | |||||||||||||||||||||||||
60 | $ | 4,676,540 | ** | $ | 1,474,287 | $ | 41,432,305 | ** | $ | 1,394,785 | $ | 39,198,018 | ** | $ | 1,394,785 | $ | 39,198,018 | |||||||||||||||||||||||||
65 | $ | 5,968,582 | ** | $ | 1,634,941 | $ | 61,088,845 | ** | $ | 1,607,612 | $ | 60,067,694 | ** | $ | 1,607,612 | $ | 60,067,694 |
* | The illustrations assume that planned periodic premiums are paid at the start of policy years one through seven. The death benefit, account value and net cash surrender value will differ if premiums are paid in different amounts or frequencies. |
** | Policy lapses unless additional payments are made. |
Policy 1 |
Policy 2 |
|||||||
Face Amount | $100,000 | $100,000 | ||||||
Policy Account Value on the Date of Death | $ 35,000 | $ 85,000 | ||||||
Death Benefit Percentage | 144.0% | 144.0% | ||||||
Standard Death Benefit | $100,000 | $100,000 | ||||||
Alternative Death Benefit | $ 50,400 | $122,400 | ||||||
Death Benefit Paid | $100,000 | $122,400 |
State |
Features and Benefits |
Availability or Variation | ||
Florida |
See “Borrowing from your policy” in “Death benefits and accessing your money” | There is no minimum loan amount. | ||
Indiana |
See “Market Stabilizer Option ® II” in “Payment of premiums and determining your policy’s value” |
MSO II is not available in Indiana. | ||
Massachusetts |
See “Market Stabilizer Option ® II” in “Payment of premiums and determining your policy’s value” |
MSO II is not available in Massachusetts. | ||
Maryland |
See “Market Stabilizer Option ® II” in “Payment of premiums and determining your policy’s value” |
MSO II is not available in Maryland. | ||
New Jersey |
See “Market Stabilizer Option ® II” in “Payment of premiums and determining your policy’s value” |
MSO II is not available in New Jersey. | ||
New York (applicable to Equitable Financial Life Insurance Company only) |
See “Fee Table” | Surrender Charge is 6% of each premium, not to exceed an amount per 1,000 of initial base policy face amount: Highest per 1,000: $46.17 Lowest per 1,000: $11.23 Charge for a Representative Investor (male age 35 at issue in the select non-tobacco user risk class): $17.00 | ||
See “Payment of premiums and determining your policy’s value” | Fixed paid-up option If you exercise the fixed paid-up option of your policy, your coverage under this policy will be continued in a reduced amount and there will be no further charges for this rider. | |||
If such exercise occurs during the period of coverage, the accumulated benefit lien amount will be reset to zero after policy values have been reduced as described in the Period of Coverage” subsection. The face amount of paid-up insurance will be whatever the resulting net cash surrender value will buy when applied as a net single premium. | ||||
If benefits have previously been paid under this rider, the maximum monthly benefit will not change. If benefits have not previously been paid under this rider, the maximum monthly benefit will be equal to the maximum total benefit as determined immediately before the fixed paid-up option went into effect multiplied by the benefit percentage. |
State |
Features and Benefits |
Availability or Variation | ||
New York (continued) (applicable to Equitable Financial Life Insurance Company only) |
When the fixed paid-up option goes into effect, the maximum total benefit will be re-determined as the sum of all monthly charges deducted for this rider since policy issue, excluding any such charges that were not deducted while rider benefits were being paid. This maximum total benefit will be reduced, but not below zero, by all monthly benefit payments made under this rider, including any loan repayments. However, the resulting maximum total benefit will not exceed the lesser of (a) the maximum total benefit of this rider as determined immediately before the fixed paid-up option went into effect, and (b) the face amount of paid-up insurance multiplied by the acceleration percentage. | |||
If you elect to continue coverage as described above, you will receive additional information regarding this benefit, including the available maximum total benefit. | ||||
See “Borrowing from your policy” in “Death benefits and accessing your money” | There is no minimum loan amount. | |||
See “Loan Interest We Charge” in “Death benefits and accessing your money” | Your policy will not terminate solely due to a change in the policy loan interest rate during the policy year. | |||
See “Changes in Charges” in “More information about policy charges” | The following paragraph replaces the second paragraph in this section in its entirety: | |||
Changes in policy cost factors (interest rates we credit to the Guaranteed Interest Option, cost of insurance rates, the premium charge, the administrative charge, any mortality and expense risk charge, and the rates for any additional benefit riders) will be on a basis that is equitable to all policies belonging to a given class, and will be determined based on reasonable assumptions as to expenses, mortality, investment income, persistency and, with respect to any rider that provides for accelerated death benefits for chronic illness, policy and contract claims associated with morbidity. For the sake of clarity, the assumptions referenced above include taxes; longevity; surrenders; lapses; conversions; disability; accident; illness; and with respect to the rates for any rider that provides accelerated death benefits for chronic illness, inability to perform activities of daily living and cognitive impairment, if applicable. Any change in policy cost factors will never result in an interest crediting rate that is lower than that guaranteed in the policy, or policy charges that exceed the maximum policy charges guaranteed in the policy. Any change in policy cost factors will be on a prospective basis; that is, any change will be determined based on future anticipated or emerging experience. | ||||
See “Market Stabilizer Option ® See “Assigning your policy” in “More information about procedures that apply to your policy” |
The original Market Stabilizer Option ® We may restrict changes in ownership only to maintain the tax qualification status of the policy. |
State |
Features and Benefits |
Availability or Variation | ||
North Dakota |
See “Suicide and certain misstatements” in “More information about other matters” | All references to “two years” are changed to “one year.” | ||
Oregon |
See “Market Stabilizer Option ® |
MSO II is not available in Oregon. | ||
Virginia |
See “Market Stabilizer Option ® |
MSO II is not available in Virgina. | ||
Washington |
See “Market Stabilizer Option ® |
MSO II is not available in Washington. |
Variation |
||||
For policies issued with the original Market Stabilizer Option ® |
Early Distribution Adjustment: Up to 75% of Segment Account Value Variable Index Benefit Charge: 0.75% deducted on the Segment Start Date from the amount being transferred from the MSO Holding Account into the Segment. Loan Spread for Amounts of Policy Loans Allocated to a Segment: 5% Risks including loss of principal and and previously credited interest: Up to 75% |
Age |
Yr |
Mth |
CVAT PCR Guaranteed Charges (Beginning of Month) |
New Loan Taken |
Policy Account Value End of Month |
End of Month Loan Balance |
Accrued Loan Interest |
Net AV End of Month |
End of Month Net Death Benefit |
Total Face Amount |
||||||||||||||||||||||||||||
78 | 32 | 1 | $ | — | 0 | $ | 3,936,863 | $ | 3,464,907 | $ | 11,343 | $ | 460,613 | $ | 1,271,607 | $ | 1,500,000 | |||||||||||||||||||||
78 | 32 | 2 | $ | 460,613 | 0 | $ | 3,484,823 | $ | 3,464,907 | $ | 22,724 | $ | — | $ | 718,452 | $ | 1,500,000 | |||||||||||||||||||||
78 | 32 | 3 | $ | — | 0 | $ | 3,493,418 | $ | 3,464,907 | $ | 34,141 | $ | — | $ | 720,804 | $ | 1,500,000 | |||||||||||||||||||||
78 | 32 | 4 | $ | — | 0 | $ | 3,502,034 | $ | 3,464,907 | $ | 45,596 | $ | — | $ | 723,164 | $ | 1,500,000 | |||||||||||||||||||||
78 | 32 | 5 | $ | — | 0 | $ | 3,510,671 | $ | 3,464,907 | $ | 57,089 | $ | — | $ | 725,531 | $ | 1,500,000 | |||||||||||||||||||||
78 | 32 | 6 | $ | — | 0 | $ | 3,519,329 | $ | 3,464,907 | $ | 68,619 | $ | — | $ | 727,906 | $ | 1,500,000 | |||||||||||||||||||||
78 | 32 | 7 | $ | — | 0 | $ | 3,528,008 | $ | 3,464,907 | $ | 80,187 | $ | — | $ | 730,289 | $ | 1,500,000 | |||||||||||||||||||||
78 | 32 | 8 | $ | — | 0 | $ | 3,536,709 | $ | 3,464,907 | $ | 91,792 | $ | — | $ | 732,680 | $ | 1,500,000 | |||||||||||||||||||||
78 | 32 | 9 | $ | — | 0 | $ | 3,545,432 | $ | 3,464,907 | $ | 103,436 | $ | — | $ | 735,079 | $ | 1,500,000 | |||||||||||||||||||||
78 | 32 | 10 | $ | — | 0 | $ | 3,554,176 | $ | 3,464,907 | $ | 115,118 | $ | — | $ | 737,485 | $ | 1,500,000 | |||||||||||||||||||||
78 | 32 | 11 | $ | — | 0 | $ | 3,562,941 | $ | 3,464,907 | $ | 126,838 | $ | — | $ | 739,899 | $ | 1,500,000 | |||||||||||||||||||||
78 | 32 | 12 | $ | — | 0 | $ | 3,571,729 | $ | 3,464,907 | $ | 138,596 | $ | — | $ | 742,322 | $ | 1,500,000 |
(a) | The policy account value reflects a hypothetical annual crediting rate on loan collateral of 3%. |
(b) | The amounts in this column reflect the Accrued Loan Interest based on a hypothetical annual rate of 4%. The maximum rate is the greater of (a) 2% or (b) the “Monthly Average Corporate” yield published in Moody’s Corporate Bond Yield Averages for the month that ends two months before the interest rate is set. In Month 2 and all subsequent months, the amounts are calculated as follows: |
The previous Accrued Loan Interest, plus the monthly loan interest rate (0.32737% which is equivalent to 4% annually), multiplied by the Loan Balance plus the previous Accrued Loan Interest. For example, the Accrued Loan Interest for Month 2 is calculated as follows: $11,343 + 0.32737% x ($3,464,907 + $11,343) = $22,724. |
(c) | The amounts in this column reflect the Net Death Benefit. The amounts are calculated as follows: The Death Benefit is the greatest of: (a) the Policy Account Value or the outstanding loan and accrued loan interest, whichever is greater, multiplied by a percentage shown in your policy for the insured person’s age (nearest birthday) at the beginning of each policy year, (b) the outstanding loan and accrued loan interest on the insured person’s date of death plus $10,000, or (c) the current base policy face amount. The Net Death Benefit is the Death Benefit less Loan Balance and the Accrued Loan Interest. Therefore, the Net Death Benefit for Month 2 is calculated as follows: [the greatest of: (a) [the maximum of ($3,484,823, $3,464,907 + $22,724)] x 120.6%; (b) ($3,464,907 + $22,724 + $10,000); (c) ($1,500,000)] less ($3,464,907 + $22,724). That is, [the greatest of [$4,206,082; $3,497,631; $1,500,000] – ($3,464,907 + $22,724) = $718,452. |
(1) | The policy owner is attained age 78, and the policy year is 32, meeting the minimum age (75) and duration (15 years) requirements; |
(2) | the loan balance and accrued loan interest ($3,464,907 + $11,343 = $3,476,250) exceeds the current policy face amount ($1,500,000); |
(3) | the loan balance and accrued loan interest ($3,464,907 + $11,343 = $3,476,250) equals or exceeds the Policy Account Value, multiplied by the applicable Policy Continuation Trigger Percentage (shown in the policy) ($3,936,863 x 80% = $3,149,490); and |
(4) | the Net Policy Account Value ($460,613) is sufficient to cover the Policy Continuation Benefit Charge, which equals the Policy Account Value times the Policy Continuation Benefit Charge rate of 11.70%, which is the rate for a policy in which the insured has attained age 78 ($3,936,863 x 11.70% = $460,613). |
C000229053 - Equitable Financial Life Insurance Company | #579312 | |
C000229054 - Equitable Financial Life Insurance Company of America |
EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA
Life Operations
8501 IBM Drive, Suite 150
Charlotte, NC 28262-4333
Statement of Additional Information
dated May 1, 2024
• | Equitable AdvantageSM |
• | Incentive Life Legacy® |
• | Incentive Life Legacy® II |
• | IncentiveLife Legacy® III |
• | IncentiveLife Optimizer® III |
• | VUL Incentive Life ProtectSM |
• | VUL Legacy® |
• | VUL Optimizer® |
Flexible premium variable life insurance policies issued by Equitable Financial Life Insurance Company of America (“the Company“) with variable investment options offered under Equitable America Variable Account K.
This Statement of Additional Information (“SAI“) is not a prospectus. It should be read in conjunction with the related prospectus, dated May 1, 2024. Each prospectus provides detailed information concerning the policy and the variable investment options, as well as the guaranteed interest option, that fund the policy. Each variable investment option is a subaccount of Equitable America Variable Account K (“Variable Account K“). We established Variable Account K under Arizona Law in 2013. The guaranteed interest option is part of the Company’s general account. Definitions of special terms used in the SAI are found in the prospectuses.
A copy of the prospectuses are available free of charge by writing the Administrative Office (P.O. Box 1047, Charlotte, North Carolina 28201-1047), by calling toll free 1-800-777-6510 (for U.S. residents) or 1-704-341-7000 (outside of the U.S.), by sending an email request to lifeservice@equitable.com or by contacting your financial professional.
The Company
We are Equitable Financial Life Insurance Company of America (the “Company”, “we”, “our” and “us”) (until 2020, known as MONY Life Insurance Company of America), an Arizona stock life insurance corporation organized in 1969. The Company is an indirect wholly owned subsidiary of Equitable Holdings, Inc. No other company has any legal responsibility to pay amounts that the Company owes under the policies. The Company is solely responsible for paying all amounts owed to you under your policy.
Equitable Advisors and Equitable Distributors serve as the principal underwriters of the Variable Account and distributor of the Policies.
We are subject to regulation by the state of Arizona and regulation by the Commissioner of Insurance in Arizona. We file an annual statement with the state of Arizona, and periodically, the Commissioner of Insurance for the State of Arizona assesses our liabilities and reserves and those of the Variable Account and assesses their adequacy. We are also subject to the insurance laws and regulation of other states in which we are licensed to operate.
Equitable America Variable Account K
The Variable Account is registered with the SEC as a unit investment trust under the Investment Company Act of 1940 (the “1940 Act“), and meets the definition of a separate account under the federal securities laws. Registration with the SEC does not involve supervision of the management of investment practices or policies by the SEC.
Ways we pay policy proceeds
The payee for death benefit or other policy proceeds (e.g., upon surrenders) may name a successor to receive any amounts that we still owe following the payee’s death. Otherwise, we will pay any such amounts to the payee’s estate.
We must approve any payment arrangements that involve a payee who is not a natural person (for example, a corporation) or a payee who is a fiduciary. Also, the details of all payment arrangements will be subject to our rules at the time the arrangements are selected and take effect.
Distribution of the policies
Equitable Advisors distributes these policies pursuant to a selling agreement between Equitable Advisors and the Company. The Company paid Equitable Advisors as the distributor of these policies and as the principal underwriter of Equitable America Variable Account K, $295,713,271 in 2023, $128,020,090 in 2022 and $108,766,165 in 2021. Of these amounts, for each of these three years, Equitable Advisors retained $134,463,331, $53,750,680 and $46,654,267, respectively.
Under a distribution agreement between Equitable Distributors and the Company and certain of the Company’s separate accounts, including Variable Account K, the Company paid Equitable Distributors distribution fees of $281,932,594 in 2023, $41,028,502 in 2022 and $32,861,179 in 2021 as the distributor of certain policies, including these policies, and as the principal underwriter of several Company separate accounts, including Variable Account K. Of these amounts, for each of these three years, Equitable Distributors retained $19,523, $6,094 and $2,207,749, respectively.
#566656 |
Underwriting a policy
The underwriting of a policy determines: (1) whether the policy application will be approved or disapproved; and (2) into what premium class the insured should be placed. Risk factors that are considered for these determinations are: (i) the insured’s age; (ii) whether the insured uses tobacco or not; and (iii) the admitted medical history of the insured. Many other factors make up the overall evaluation of an individual’s assessment for insurance, but all of these items are determined through the questions asked during the application process.
For Incentive Life Legacy®, Incentive Life Legacy® II, IncentiveLife Legacy® III and IncentiveLife Optimizer® III policies
We base guaranteed cost of insurance rates under the policy on the 2001 Commissioner’s Standard Ordinary Mortality Tables.
For Equitable AdvantageSM, VUL Legacy® and VUL Optimizer® policies
We base guaranteed cost of insurance rates under the policy on the 2017 Commissioner’s Standard Ordinary Mortality Tables.
Insurance regulation that applies to the Company
We are regulated and supervised by the Arizona State Insurance Department. In addition, we are subject to the insurance laws and regulations in every state where we sell policies. We submit annual reports on our operations and finances to insurance officials in all of these states. The officials are responsible for reviewing our reports to see that we are financially sound. Such regulation, however, does not guarantee or provide absolute assurance of our soundness.
Custodian
Equitable Financial Life Insurance Company is the custodian for shares of the Trusts owned by Variable Account K. Equitable Financial Life Insurance Company’s principal offices are located at 1345 Avenue of the Americas, New York, NY 10105.
Independent registered public accounting firm
The (i) financial statements of each of the variable investment options of Equitable America Variable Account K as of December 31, 2023 and for each of the periods indicated therein and the (ii) consolidated financial statements and financial statement schedules of Equitable Financial Life Insurance Company of America as of December 31, 2023 and 2022 and for each of the three years in the period ended December 31, 2023 incorporated in this Statement of Additional Information by reference to the filed Form N-VPFS/A (for Equitable America Variable Account K) and Form N-VPFS/A (for Equitable Financial Life Insurance Company of America) have been so incorporated in reliance on the reports of PricewaterhouseCoopers LLP, an independent registered public accounting firm, given on the authority of said firm as experts in auditing and accounting.
PricewaterhouseCoopers LLP provides independent audit services and certain other non-audit services to Equitable Financial Life Insurance Company of America as permitted by the applicable SEC independence rules, and as disclosed in Equitable Financial Life Insurance Company of America’s Form 10-K. PricewaterhouseCoopers LLP’s address is 214 North Tryon Street, Suite 4200, Charlotte, North Carolina 28202.
Financial statements
The financial statements and financial statement schedules of the Company incorporated by reference should be considered only as bearing upon the ability of the Company to meet its obligations under the policies.
2
PART C
OTHER INFORMATION
ITEM 30. | EXHIBITS |
(a) | Board of Directors Resolutions. |
(1) |
(b) | Custodian Agreements. Not applicable. |
(c) | Underwriting Contracts. |
(1) |
(a) |
(b) |
(2) |
(3) |
(4) |
(a) |
(5) |
(a) |
(b) |
(c) |
(d) |
(e) |
(f) |
(g) |
(h) |
(i) |
(j) |
(k) |
(l) |
(d) | Contracts. |
(1) |
(2) |
(3) |
(4) |
(5) |
(6) |
(7) |
(8) |
(9) |
(10) |
(11) |
(12) |
(13) |
(e) | Applications. |
(1) |
(2) |
(3) |
(4) |
(5) |
(6) |
(7) |
(8) |
(9) |
(10) |
(11) |
C-1
(f) | Depositor’s Certificate of Incorporation and By-Laws. |
(1) |
(2) |
(3) |
(g) | Reinsurance Contracts. |
(1) |
(a) |
(2) |
(3) |
(a) |
(4) |
(5) |
(h) | Participation Agreements. |
(1) |
(1)(a) |
(a) |
(b) |
(c) |
(d) |
(e) |
(f) |
(g) |
(h) |
(i) |
(j) |
(k) |
(l) |
(m) |
(n) |
(o) |
(p) |
(q) |
(r) |
(s) |
(t) |
(u) |
(v) |
(w) |
(2) |
C-2
(a) |
(b) |
(c) |
(d) |
(e) |
(f) |
(g) |
(h) |
(i) |
(3) |
(a) |
(b) |
(c) |
(d) |
(4) |
(a) |
(b) |
(c) |
(d) |
(e) |
(f) |
(5) |
(a) |
(b) |
(c) |
(d) |
(e) |
(6) |
(a) |
(b) |
(c) |
(7) |
(a) |
(b) |
(c) |
(d) |
(8) |
(a) |
(b) |
(c) |
(d) |
(e) |
(f) |
(9) |
(a) |
(b) |
(c) |
(10) |
(a) |
(b) |
(c) |
(d) |
(e) |
(f) |
(g) |
(11) |
(a) |
(b) |
(c) |
(d) |
(e) |
(12) |
(a) |
(b) |
(c) |
(d) |
(e) |
(13) |
(a) |
(b) |
(c) |
C-3
(i) | Administrative Contracts. |
(1) |
(j) | Other Material Contracts. Not applicable. |
(k) | Legal Opinion. |
(1) |
(l) | Actuarial Opinion. |
(1) | Opinion and consent of Brian Lessing, FSA, MAAA, Actuary and Signatory Officer, filed herewith. |
(m) | Calculation. |
(1) |
(n) | Other Opinions. |
(1) |
(2) |
(o) | Omitted Financial Statements. No financial statements are omitted from Item 24. |
(p) | Initial Capital Agreements. Not applicable. |
(q) | Redeemability Exemption. |
(1) |
(r) | Form of Initial Summary Prospectuses. |
(1) |
101.INS | XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document |
101.SCH | XBRL Taxonomy Extension Schema Document |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
C-4
ITEM 31. | DIRECTORS AND OFFICERS OF THE DEPOSITOR |
* | The business address for all officers and directors of the Depositor is 8501 IBM Drive, Suite 150, Charlotte, NC 28262-4333. |
NAME AND PRINCIPAL BUSINESS ADDRESS |
POSITIONS AND OFFICES WITH THE DEPOSITOR | |
DIRECTORS |
||
Francis Hondal |
Director | |
10050 Suburban Drive |
||
Pinecrest, FL 33156 |
||
Arlene Isaacs-Lowe |
Director | |
1830 South Ocean Drive, #1411 |
||
Hallandale, FL 33009 |
||
Daniel G. Kaye |
Director | |
767 Quail Run |
||
Inverness, IL 60067 |
||
Joan Lamm-Tennant |
Director | |
135 Ridge Common |
||
Fairfield, CT 06824 |
||
Craig MacKay |
Director | |
England & Company |
||
1133 Avenue of the Americas |
||
Suite 2719 |
||
New York, NY 10036 |
||
Bertram L. Scott |
Director | |
3601 Hampton Manor Drive |
||
Charlotte, NC 28226 |
||
George Stansfield |
Director | |
AXA |
||
25, Avenue Matignon |
||
75008 Paris, France |
||
Charles G.T. Stonehill |
Director | |
Founding Partner |
||
Green & Blue Advisors |
||
20 East End Avenue, Apt 5C |
||
New York, New York 10028 |
||
OFFICER-DIRECTOR |
||
*Mark Pearson |
Director and Chief Executive Officer | |
OTHER OFFICERS |
||
*Nicholas B. Lane |
President | |
*José Ramón González |
Chief Legal Officer and Secretary | |
*Jeffrey J. Hurd |
Chief Operating Officer |
C-5
*Robin M. Raju |
Chief Financial Officer | |
*Michael B. Healy |
Chief Information Officer | |
*Nicholas Huth |
Chief Compliance Officer | |
*William Eckert |
Chief Accounting Officer | |
*Darryl Gibbs |
Chief Diversity Officer | |
*David W. Karr |
Signatory Officer | |
*Jessica Baehr |
Signatory Officer | |
*Mary Jean Bonadonna |
Signatory Officer | |
*Eric Colby |
Signatory Officer | |
*Steven M. Joenk |
Chief Investment Officer | |
*Kenneth Kozlowski |
Signatory Officer | |
*Carol Macaluso |
Signatory Officer | |
*Hector Martinez |
Signatory Officer | |
*James Mellin |
Signatory Officer | |
*Hillary Menard |
Signatory Officer | |
*Kurt Meyers |
Deputy General Counsel and Signatory Officer | |
*Maryanne (Masha) Mousserie |
Signatory Officer | |
*Prabha (“Mary”) Ng |
Chief Information Security Officer | |
*Antonio Di Caro |
Signatory Officer | |
*Glen Gardner |
Deputy Chief Investment Officer | |
*Shelby Hollister-Share |
Signatory Officer | |
*Manuel Prendes |
Signatory Officer | |
*Meredith Ratajczak |
Chief Actuary | |
*Aaron Sarfatti |
Chief Strategy Officer | |
*Stephen Scanlon |
Signatory Officer | |
*Samuel Schwartz |
Signatory Officer | |
*Stephanie Shields |
Signatory Officer | |
*Joseph M. Spagnuolo |
Signatory Officer | |
*Gina Tyler |
Chief Communications Officer | |
*Constance Weaver |
Chief Marketing Officer | |
*Stephanie Withers |
Chief Auditor | |
*Yun (“Julia”) Zhang |
Treasurer |
C-6
ITEM 32. | PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH THE DEPOSITOR OR REGISTRANT |
No person is directly or indirectly controlled by the Registrant. The Registrant is a separate account of Equitable Financial Life Insurance Company of America, an indirect wholly-owned subsidiary of Equitable Holdings, Inc.
Set forth below is the subsidiary chart for the Holding Company:
C-7
ITEM 33. INDEMNIFICATION
The By-Laws of Equitable Financial Life Insurance Company of America provide, in Article VI as follows:
SECTION 1. NATURE OF INDEMNITY. The Corporation shall indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative, or investigative, by reason of the fact that he or she is or was or has agreed to become a director or officer of the Corporation, or is or was serving or has agreed to serve at the request of the Corporation as a director or officer of another corporation, partnership, joint venture, trust or other enterprise, or by reason of any action alleged to have been taken or omitted in such capacity, and shall indemnify any person who was or is a party or is threatened to be made a party to such an action, suit or proceeding by reason of the fact that he or she is or was or has agreed to become an employee or agent of the Corporation, or is or was serving or has agreed to serve at the request of the Corporation as an employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by him or her or on his or her behalf in connection with such action, suit or proceeding and any appeal therefrom, if he or she acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the best interests of the Corporation, and, with respect to any criminal action or proceeding had no reasonable cause to believe his or her conduct was unlawful; except that in the case of an action or suit by or in the right of the Corporation to procure a judgment in its favor (1) such indemnification shall be limited to expenses (including attorneys’ fees) actually and reasonably incurred by such person in the defense or settlement of such action or suit, and (2) no indemnification shall be made in respect of any claim, issue or matter as to which such person shall have been adjudged to be liable to the Corporation unless and only to the extent that the court in which such action or suit was brought or other court of competent jurisdiction shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, such person is fairly and reasonably entitled to indemnity.
The termination of any action, suit or proceeding by judgment, order, settlement, conviction or upon a plea of no contest or its equivalent, shall not, of itself, create a presumption that the person did not act in good faith and in a manner which he or she reasonably believed to be in or not opposed to the best interests of the Corporation, and, with respect to any criminal action or proceeding, had reasonable cause to believe that his or her conduct was unlawful.
SECTION 6. SURVIVAL; PRESERVATION OF OTHER RIGHTS. The foregoing indemnification provisions shall be deemed to be a contract between the Corporation and each director, officer, employee and agent who serves in any such capacity at any time while these provisions as well as the relevant provisions of Title 10, Arizona Revised Statutes are in effect and any repeal or modification thereof shall not affect any right or obligation then existing with respect to any state of facts then or previously existing or any action, suit or proceeding previously or thereafter brought or threatened based in whole or in part upon any such state of facts. Such a “contract right” may not be modified retroactively without the consent of such director, officer, employee or agent.
The indemnification provided by this Article shall not be deemed exclusive of any other right to which those indemnified may be entitled under any by-law, agreement, vote of stockholders or disinterested directors or otherwise, both as to action in his or her official capacity and as to action in another capacity while holding such office, and shall continue as to a person who has ceased to be a director, officer, employee or agent and shall inure to the benefit of the heirs, executors and administrators of such a person.
SECTION 7. INSURANCE. The Corporation may purchase and maintain insurance on behalf of any person who is or was a director or officer of the Corporation, or is or was serving at the request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise against any liability asserted against such person and incurred by such person in any such capacity or arising out of his or her status as such, whether or not the Corporation would have the power to indemnify such person against such liability under the provisions of this By-Law.
The directors and officers of the Company are insured under policies issued by X. L. Insurance Company, Arch Insurance Company, Endurance Specialty Insurance Company, U.S. Specialty Insurance, ACE, Chubb Insurance Company, AXIS Insurance Company, Zurich Insurance Company, AWAC (Allied World Assurance Company, Ltd.), Aspen Bermuda XS, CNA, AIG, One Beacon, Nationwide, Berkley, Berkshire, SOMPO, Chubb, Markel and ARGO Re Ltd. The annual limit on such policies is $300 million, and the policies insure the officers and directors against certain liabilities arising out of their conduct in such capacities.
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Insofar as indemnification for liability arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the Registrant pursuant to the foregoing provisions, or otherwise, the Registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification for such liabilities (other than the payment by the Registrant of expense incurred or paid by a director, officer, or controlling person of the Registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the Registrant will (unless in the opinion of its counsel the matter has been settled by controlling precedent) submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.
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ITEM 34. PRINCIPAL UNDERWRITERS
(a) | Equitable Advisors, LLC and Equitable Distributors, LLC are the principal underwriters for: |
(i) | Separate Account No. 49, Separate Account No. 70, Separate Account A, Separate Account FP, Separate Account I and Separate Account No. 45 of Equitable Financial |
(ii) | Separate Account No. 49B of Equitable Colorado |
(iii) | EQ Advisors Trust |
(iv) | Variable Account AA, Equitable America Variable Account A, Equitable America Variable Account K, Equitable America Variable Account L, and Equitable America Variable Account 70A. |
(b) | Equitable Advisors is the principal underwriter of Equitable Financial’s Separate Account No. 301. |
(c) | Set forth below is certain information regarding the directors and principal officers of Equitable Advisors, LLC and Equitable Distributors, LLC: |
EQUITABLE ADVISORS, LLC
NAME AND PRINCIPAL BUSINESS ADDRESS |
POSITIONS AND OFFICES WITH UNDERWRITER | |
*David Karr | Director, Chairman of the Board and Chief Executive Officer | |
*Nicholas B. Lane | Director | |
*Frank Massa | Director and President | |
*Aaron Sarfatti | Director | |
*Ralph E. Browning, II | Chief Privacy Officer | |
*Mary Jean Bonadonna | Chief Risk Officer | |
*Patricia Boylan | Broker Dealer Chief Compliance Officer | |
*Yun (“Julia”) Zhang | Director, Senior Vice President and Treasurer | |
*Nia Dalley | Vice President and Chief Conflicts Officer | |
*Brett Esselburn | Vice President, Investment Sales and Financial Planning | |
*Gina Jones | Vice President and Financial Crime Officer | |
*Tracy Zimmerer | Vice President, Principal Operations Officer | |
*Page Pennell | Vice President | |
*Sean Donovan | Assistant Vice President | |
*Alan Gradzki | Assistant Vice President | |
*Janie Smith | Assistant Vice President | |
*James Mellin | Chief Sales Officer | |
*Candace Scappator | Assistant Vice President, Controller and Principal Financial Officer | |
*Prabha (“Mary”) Ng | Chief Information Security Officer | |
*Alfred Ayensu-Ghartey | Vice President | |
*Joshua Katz | Vice President | |
*Christopher LaRussa | Investment Advisor Chief Compliance Officer | |
*Christian Cannon | Vice President and General Counsel | |
*Samuel Schwartz | Vice President | |
*Dennis Sullivan | Vice President | |
* Michael Cole | Vice President and Assistant Treasurer | |
*Constance (Connie) Weaver | Vice President | |
*Michael Brudoley | Secretary | |
*Christine Medy | Assistant Secretary | |
*Francesca Divone | Assistant Secretary |
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EQUITABLE DISTRIBUTORS, LLC
NAME AND PRINCIPAL BUSINESS ADDRESS |
POSITIONS AND OFFICES WITH UNDERWRITER | |
*Nicholas B. Lane | Director, Chairman of the Board, President and Chief Executive Officer | |
*Jessica Baehr | Director, Executive Vice President and Head of Group Retirement | |
*Hector Martinez | Director, Executive Vice President and Head of Life Business | |
*Eric Brown | Senior Vice President | |
*James Crimmins | Senior Vice President | |
*James Daniello | Senior Vice President | |
*Michael B. Healy | Senior Vice President | |
*Patrick Ferris | Senior Vice President | |
*Brett Ford | Senior Vice President | |
*Bernard Heffernon | Senior Vice President | |
*David Kahal | Senior Vice President | |
*Fred Makonnen | Senior Vice President | |
*Matthew Schirripa | Senior Vice President | |
*David Veale | Senior Vice President | |
*Arielle D’Auguste | Vice President and General Counsel | |
*Alfred D’Urso | Vice President and Chief Compliance Officer | |
*Mark Teitelbaum | Senior Vice President | |
*Candace Scappator | Vice President, Chief Financial Officer, Principal Financial Officer and Principal Operations Officer | |
*Gina Jones | Vice President and Financial Crime Officer | |
*Yun (“Julia”) Zhang | Senior Vice President and Treasurer | |
*Francesca Divone | Secretary | |
*Richard Frink | Senior Vice President | |
*Michael J. Gass | Vice President | |
*Kathi Gopie | Vice President | |
*Timothy Jaeger | Vice President | |
*Jeremy Kachejian | Vice President | |
*Laird Johnson | Vice President | |
*Enrico Mossa | Assistant Vice President | |
*James C. Pazareskis | Assistant Vice President | |
*Caitlin Schirripa | Assistant Vice President | |
*Samuel Schwartz | Vice President | |
*Greg Seavey | Vice President | |
* Michael Cole | Assistant Treasurer | |
*Stephen Scanlon | Director, Executive Vice President and Head of Individual Retirement | |
*Prabha (“Mary”) Ng | Senior Vice President and Chief Information Security Officer | |
*Michael Brudoley | Assistant Secretary | |
*Christine Medy | Assistant Secretary | |
* Principal Business Address: 1345 Avenue of the Americas NY, NY 10105 |
(d) |
Name of Principal Underwriter |
Net Underwriting Discounts |
Compensation on Redemption |
Brokerage Commission |
Other Compensation | ||||
Equitable Advisors, LLC |
N/A | $0 | $0 | $0 | ||||
Equitable Distributors, LLC |
N/A | $0 | $0 | $0 |
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ITEM 35. LOCATION OF ACCOUNTS AND RECORDS
This information is omitted as it is provided in the Registrant’s most recent report on Form N-CEN.
ITEM 36. MANAGEMENT SERVICES
All management contracts are discussed in Part A or Part B.
ITEM 37. FEE REPRESENTATION
Equitable Financial Life Insurance Company of America hereby represents that the fees and charges deducted under the Policy, in the aggregate, are reasonable in relation to the services rendered, the expenses expected to be incurred, and the risks assumed by Equitable Financial Life Insurance Company of America.
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SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant certifies that it meets all the requirements for effectiveness of this Registration Statement under Rule 485(b) under the Securities Act of 1933 and has duly caused this Registration Statement to be signed on its behalf by the undersigned, duly authorized, in the City and State of New York, on the 23rd day of April, 2024.
Equitable America Variable Account K | ||
(Registrant) | ||
Equitable Financial Life Insurance Company of America | ||
(Depositor) | ||
By: | /s/ Alfred Ayensu-Ghartey | |
Alfred Ayensu-Ghartey | ||
Vice President and Associate General Counsel |
Pursuant to the requirements of the Securities Act of 1933, this Amendment to the Registration Statement has been signed by the following persons in the capacities and on the date indicated:
PRINCIPAL EXECUTIVE OFFICER: | ||
*Mark Pearson | Chief Executive Officer and Director | |
PRINCIPAL FINANCIAL OFFICER: | ||
*Robin Raju | Chief Financial Officer | |
PRINCIPAL ACCOUNTING OFFICER: | ||
*William Eckert | Chief Accounting Officer |
*DIRECTORS: | ||||||
Joan Lamm-Tennant Daniel G. Kaye Arlene Isaacs-Lowe |
Mark Pearson Bertram Scott George Stansfield |
Charles G.T. Stonehill Craig MacKay Francis Hondal |
*By: | /s/ Alfred Ayensu-Ghartey | |
Alfred Ayensu-Ghartey | ||
Attorney-in-Fact | ||
April 23, 2024 |