Option 1 (Level Death Benefit Option)

The Death Benefit for this option remains level, but in limited situations will vary. The Death Benefit is the greater of the Face Amount, or the Death Benefit factor multiplied by Accumulated Value. If you keep your Contract in force for several years and your Accumulated Value continues to increase, your Death Benefit may be increased by a Death Benefit factor. This factor helps to ensure that your Death Benefit is large enough relative to Accumulated Value to assure the Contract will qualify as life insurance under federal tax law. The Death Benefit factor depends upon your Attained Age. If the CVAT is used to satisfy the tax definition, then the death benefit factor will also depend on the Insured's sex (in most states) and risk class. Your Contract includes a Table of Death Benefit Factors.

You should consider the Level Death Benefit Option if:

you do not expect your insurance needs to generally increase; or

you would like to minimize your insurance costs.

In general, the Level Death Benefit Option provides greater growth potential in Accumulated Value than the Variable Death Benefit Option. By choosing the Level Death Benefit Option, any increases in Accumulated Value reduce the actual risk amount and lower your cost of insurance.

Option 2 (Variable Death Benefit Option)

The Variable Death Benefit Option provides a Death Benefit that varies over time. The Death Benefit will be the greater of the Face Amount plus Accumulated Value, or the Death Benefit factor (described above) multiplied by Accumulated Value. The Death Benefit fluctuates correspondingly with your Accumulated Value.

You should consider the Variable Death Benefit Option if:

you expect your insurance needs to increase, or

you would like to have the potential for an increasing death benefit.

In general, the variable option provides the potential for a greater death benefit than the level option.

Guaranteed Increase Option (Optional)

A Contract is issued to an Insured at age 12, with an initial Face amount of $25,000 and a GIO rider of $25,000. The Insured's risk class at issue is Standard Nontobacco, so all GIO increases will be at this risk class, with no additional underwriting. In this example, the Owner accepts the GIO at the Option Dates at the times that the Insured is ages 22, 25 and 28. The Face amount in total is then $100,000 after these increases (initial $25,000 + 3 increases of $25,000 each). At age 30, the Insured uses a Special Option at the time of marriage, bringing the total Face amount to $125,000. The next Option at age 31 is skipped, and the Owner declines the Option at ages 34 and 37. The Options are accepted at ages 40, 43, 46 and 49. With these 4 increases of $25,000 each, the total Face amount is $225,000 after the last increase, and the GIO expires.

Disability Waiver of Monthly Deductions (Optional)

A Contract is issued to an Insured at age 45, with a Face amount of $250,000 and the Disability Waiver of Monthly Deduction rider is elected. The Insured is underwritten and given Preferred Nontobacco risk class on the base coverage and standard rating on the waiver. The charges for the waiver benefit are included in the monthly deductions collected for the next several years. At the Insured's age 52, the Insured is injured in an accident on April 1^st and is unable to work. The Insured submits a waiver claim, which is reviewed and approved, effective October 1^st (6 months after disability). The Accumulated Value of the Contract is incremented by the amount of the monthly deductions for those 6 months, and monthly deductions are waived from that date forward. The Insured submits regular proof of his disability. After 18 months of waived deductions, the Insured recovers sufficiently to begin a new occupation. The monthly deductions begin again after his recovery.

Accelerated Death Benefits for Terminal Illness Rider (Standard)

A Contract is issued to an Insured at age 45, with a Face amount of $250,000 and the Accelerated Death Benefit rider is automatically included. There is no charge for including this rider. The Contract continues for several years, with regular scheduled payments made and monthly deductions collected. When the Insured is age 68, he is diagnosed with a terminal illness. A claim is submitted to accelerate the entire death benefit, to pay for his medical care. The claim processing includes obtaining a certification from a qualified physician, which indicates that the Insured's diagnosis is terminal and his life expectancy is 24 months or less. A calculation is made to determine the present value of the death benefit, less a $150 processing fee. The Contract is terminated when that accelerated payment is made.

⁶ Cost of insurance charges depend on the [ls:insured]Insured's[le] [ls:issueage]Issue Age[le], sex (in most states), risk amount, [ls:faceamount]Face Amount[le], risk class and duration of the [ls:contract]Contract[le]. The Cost of Insurance Charge shown may not be representative of the charge that a particular investor will pay.

⁷ For more information on the calculation of this charge see Charges.

¹² Charges for [ls:additionalbenefits]Additional Benefits[le] vary based on [ls:attainedage]Attained Age[le] or [ls:issueage]Issue Age[le], sex (in most states), risk class, [ls:faceamount]Face Amount[le], risk amount, or rider coverage amount. Charges based on age may increase as the [ls:insured]Insured[le] ages. The charges noted apply if the rider is included in your [ls:contract]Contract[le] and the [ls:contract]Contract[le] and/or rider has not otherwise terminated. Before you purchase a [ls:contract]Contract[le], we will provide you a free personalized illustration of your future benefits under the [ls:contract]Contract[le].

¹³ The charge applies until [ls:insured]Insured's[le] [ls:attainedage]Attained Age[le] 65. Monthly deductions include cost of insurance charge, benefit rider charges, basic monthly charge, monthly unit charge, and mortality and expense risk charge.