-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, POd1lodzOh9mKbvW2cDg2811K7uNEc0qtGBX9SWzD6dGVi5ruy13s1rwsi4vD+r0 8qkUKHlD3kmRvD23jgshuA== 0000950135-08-003600.txt : 20080509 0000950135-08-003600.hdr.sgml : 20080509 20080509173004 ACCESSION NUMBER: 0000950135-08-003600 CONFORMED SUBMISSION TYPE: 497 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20080509 DATE AS OF CHANGE: 20080509 EFFECTIVENESS DATE: 20080509 FILER: COMPANY DATA: COMPANY CONFORMED NAME: JOHN HANCOCK LIFE INSURANCE CO OF NEW YORK SEPARATE ACCOUNT A CENTRAL INDEX KEY: 0000884525 IRS NUMBER: 000000000 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 497 SEC ACT: 1933 Act SEC FILE NUMBER: 333-83558 FILM NUMBER: 08819891 BUSINESS ADDRESS: STREET 1: 100 SUMMIT LAKE DRIVE STREET 2: SECOND FLOOR CITY: VALHALLA STATE: NY ZIP: 10595 BUSINESS PHONE: 6172666008 MAIL ADDRESS: STREET 1: 100 SUMMIT LAKE DRIVE STREET 2: SECOND FLOOR CITY: VAHALLA STATE: NY ZIP: 10595 FORMER COMPANY: FORMER CONFORMED NAME: JOHN HANCOCK INSURANCE CO OF NEW YORK SEPARATE ACCOUNT A DATE OF NAME CHANGE: 20050103 FORMER COMPANY: FORMER CONFORMED NAME: MANUFACTURERS LIFE INSURANCE CO OF NEW YORK SEP ACCOUNT A DATE OF NAME CHANGE: 19971022 0000884525 S000002860 JOHN HANCOCK LIFE INSURANCE CO OF NEW YORK SEPARATE ACCOUNT A C000007852 NYVenture III and NYWealthmark ML3 497 1 b68674b2e497.txt JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A Prospectus dated April 28, 2008 (JOHN HANCOCK(R) LOGO) JOHN HANCOCK ANNUITIES Venture III Variable Annuity PREVIOUSLY ISSUED CONTRACTS This Prospectus describes interests in VENTURE III flexible Purchase Payment deferred combination Fixed and Variable Annuity contracts (singly, a "Contract" and collectively, the "Contracts") issued by JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) ("John Hancock USA") in all jurisdictions except New York, or by JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK ("John Hancock New York") in New York. Unless otherwise specified, "we," "us," "our," or a "Company" refers to the applicable issuing Company of a Contract. You, the Contract Owner, should refer to the first page of your Venture III variable annuity contract for the name of your issuing Company. We do not authorize this Prospectus for use in connection with the purchase of a new Venture III variable annuity Contract on or after April 28, 2008. VARIABLE INVESTMENT OPTIONS. You may allocate Contract Values or additional Purchase Payments, to the extent permitted under your Contract, in Variable Investment Options. If you do, we will measure your Contract Value (other than value allocated to a Fixed Investment Option) and Variable Annuity payments according to the investment performance of applicable Sub-Accounts of JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H or in the case of John Hancock New York, applicable Sub-Accounts of JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A (singly, a "Separate Account" and collectively, the "Separate Accounts"). Each Sub-Account invests in one of the following Portfolios that corresponds to one of the Variable Investment Options that we make available on the date of this Prospectus: JOHN HANCOCK TRUST 500 Index Trust(1) Active Bond Trust(1) All Cap Core Trust(1) All Cap Growth Trust(1) All Cap Value Trust(1) American Asset Allocation Trust American Blue Chip Income & Growth Trust(1) American Bond Trust American Fundamental Holdings Trust American Global Diversification Trust American Global Growth Trust American Global Small Capitalization Trust American Growth Trust American Growth-Income Trust American High-Income Bond Trust American International Trust American New World Trust Blue Chip Growth Trust Capital Appreciation Trust Classic Value Trust Core Bond Trust(1) Core Equity Trust Emerging Growth Trust(1) Emerging Small Company Trust(1) Equity-Income Trust Financial Services Trust Franklin Templeton Founding Allocation Trust Fundamental Value Trust Global Trust(1) Global Allocation Trust Global Bond Trust Health Sciences Trust High Income Trust High Yield Trust Income & Value Trust Index Allocation Trust International Core Trust International Equity Index Trust A(1) International Opportunities Trust International Small Cap Trust International Value Trust Investment Quality Bond Trust Large Cap Trust(1) Large Cap Value Trust(1) Lifestyle Aggressive Trust Lifestyle Balanced Trust Lifestyle Conservative Trust Lifestyle Growth Trust Lifestyle Moderate Trust Mid Cap Index Trust(1) Mid Cap Intersection Trust Mid Cap Stock Trust(2) Mid Cap Value Trust(1) Money Market Trust Natural Resources Trust Optimized All Cap Trust(1, 3) Optimized Value Trust(1, 4) Pacific Rim Trust Real Estate Securities Trust Real Return Bond Trust(1) Science & Technology Trust Small Cap Trust(1) Small Cap Growth Trust Small Cap Index Trust(1) Small Cap Opportunities Trust Small Cap Value Trust Small Company Trust(1) Small Company Value Trust Strategic Bond Trust Strategic Income Trust(1) Total Return Trust Total Stock Market Index Trust(1) U.S. Core Trust(1) U.S. Government Securities Trust U.S. High Yield Bond Trust(1) U.S. Large Cap Trust Utilities Trust(1) Value Trust BLACKROCK VARIABLE SERIES FUNDS, INC.(5) BlackRock Basic Value V. I. Fund BlackRock Value Opportunities V. I. Fund BlackRock Global Allocation V. I. Fund PIMCO VARIABLE INSURANCE TRUST PIMCO VIT All Asset Portfolio (1) Not available with Venture III Contracts issued on or after May 1, 2006. (2) Successor to Dynamic Growth Trust. (3) Formerly "Quantitative All Cap Trust," successor to "Growth & Income Trust." (4) Formerly "Quantitative Value Trust." (5) Not available with John Hancock USA Contracts issued on or after January 28, 2002 or with any John Hancock New York Contract. CONTRACTS ARE NOT DEPOSITS OR OBLIGATIONS OF, OR INSURED, GUARANTEED OR ENDORSED BY, ANY BANK, THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD, OR ANY OTHER AGENCY. PLEASE READ THIS PROSPECTUS CAREFULLY AND KEEP IT FOR FUTURE REFERENCE. IT CONTAINS INFORMATION ABOUT THE SEPARATE ACCOUNTS AND THE VARIABLE PORTION OF THE CONTRACT THAT YOU SHOULD KNOW BEFORE INVESTING. THE CONTRACTS HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION ("SEC"). NEITHER THE SEC NOR ANY STATE HAS DETERMINED WHETHER THIS PROSPECTUS IS TRUTHFUL OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) ANNUITIES SERVICE CENTER MAILING ADDRESS 164 Corporate Drive Post Office Box 9505 Portsmouth, NH 03801-6815 Portsmouth, NH 03802-9505 (617) 663-3000 or www.jhannuities.com (800) 344-1029 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK ANNUITIES SERVICE CENTER MAILING ADDRESS 164 Corporate Drive Post Office Box 9506 Portsmouth, NH 03801-6815 Portsmouth, NH 03802-9506 (877) 391-3748 or www.jhannuitiesnewyork.com (800) 551-2078 ii Table of Contents I. GLOSSARY OF SPECIAL TERMS.............................................. 1 II. OVERVIEW.............................................................. 4 III. FEE TABLES........................................................... 8 EXAMPLES............................................................... 10 IV. GENERAL INFORMATION ABOUT US, THE SEPARATE ACCOUNTS AND THE PORTFOLIOS............................................................. 19 THE COMPANIES.......................................................... 19 THE SEPARATE ACCOUNTS.................................................. 20 THE PORTFOLIOS......................................................... 20 VOTING INTEREST........................................................ 32 V. DESCRIPTION OF THE CONTRACT............................................ 33 ELIGIBLE PLANS......................................................... 33 ACCUMULATION PERIOD PROVISIONS......................................... 33 Purchase Payments................................................... 33 Accumulation Units.................................................. 34 Value of Accumulation Units......................................... 34 Net Investment Factor............................................... 34 Transfers Among Investment Options.................................. 35 Maximum Number of Investment Options................................ 36 Telephone and Electronic Transactions............................... 36 Special Transfer Services -Dollar Cost Averaging Program............ 36 Special Transfer Services - Asset Rebalancing Program............... 37 Withdrawals......................................................... 37 Special Withdrawal Services - The Income Plan....................... 38 Optional Guaranteed Minimum Withdrawal Benefits..................... 38 Death Benefit During the Accumulation Period........................ 38 Optional Enhanced Death Benefits.................................... 40 PAY-OUT PERIOD PROVISIONS.............................................. 40 General............................................................. 40 Annuity Options..................................................... 41 Determination of Amount of the First Variable Annuity Benefit Payment.......................................................... 44 Annuity Units and the Determination of Subsequent Variable Annuity Payments......................................................... 44 Transfers During Pay-out Period..................................... 45 Death Benefit During Pay-out Period................................. 45 Optional Guaranteed Minimum Income Benefits......................... 45 OTHER CONTRACT PROVISIONS.............................................. 45 Right to Review..................................................... 45 Ownership........................................................... 46 Annuitant........................................................... 46 Beneficiary......................................................... 46 Modification........................................................ 47 Our Approval........................................................ 47 Misstatement and Proof of Age, Sex or Survival...................... 47 FIXED INVESTMENT OPTIONS............................................... 47 VI. CHARGES AND DEDUCTIONS................................................ 49 WITHDRAWAL CHARGES..................................................... 49 ASSET-BASED CHARGES.................................................... 50 Daily Administration Fee............................................ 50 Distribution Fee.................................................... 50 Mortality and Expense Risks Fee..................................... 50 REDUCTION OR ELIMINATION OF CHARGES AND DEDUCTIONS..................... 50 PREMIUM TAXES.......................................................... 51 VII. FEDERAL TAX MATTERS.................................................. 52 INTRODUCTION........................................................... 52 OUR TAX STATUS......................................................... 52 SPECIAL CONSIDERATIONS FOR OPTIONAL BENEFITS........................... 52 NON-QUALIFIED CONTRACTS................................................ 53 Undistributed Gains................................................. 53 Taxation of Annuity Payments........................................ 53 Surrenders, Withdrawals and Death Benefits.......................... 53 Taxation of Death Benefit Proceeds.................................. 53 Penalty Tax on Premature Distributions.............................. 54 Puerto Rico Non-Qualified Contracts................................. 54 Diversification Requirements........................................ 54 QUALIFIED CONTRACTS.................................................... 55 Penalty Tax on Premature Distributions.............................. 56 Rollovers and Transfers............................................. 56 Loans............................................................... 57 Puerto Rico Contracts Issued to Fund Retirement Plans............... 57 SEE YOUR OWN TAX ADVISOR............................................... 57 VIII. GENERAL MATTERS..................................................... 59 ASSET ALLOCATION SERVICES.............................................. 59 RESTRICTIONS UNDER THE TEXAS OPTIONAL RETIREMENT PROGRAM............... 59 DISTRIBUTION OF CONTRACTS.............................................. 59 Standard Compensation............................................... 60 Revenue Sharing and Additional Compensation......................... 60 Differential Compensation........................................... 60 CONFIRMATION STATEMENTS................................................ 61 REINSURANCE ARRANGEMENTS............................................... 61 APPENDIX A: EXAMPLES OF CALCULATION OF WITHDRAWAL CHARGE.................. A-1 APPENDIX B: QUALIFIED PLAN TYPES.......................................... B-1 APPENDIX C: OPTIONAL ENHANCED DEATH BENEFITS.............................. C-1 APPENDIX D: OPTIONAL GUARANTEED MINIMUM WITHDRAWAL BENEFITS............... D-1 APPENDIX E: OPTIONAL GUARANTEED MINIMUM INCOME BENEFITS................... E-1 APPENDIX F: ADDITIONAL AVAILABILITY OF GUARANTEED MINIMUM WITHDRAWAL BENEFIT RIDERS......................................................... F-1 APPENDIX U: ACCUMULATION UNIT VALUE TABLES................................ U-1
We provide additional information about the Contracts and the Separate Accounts, including information on our history, the accumulation unit value tables, services provided to the Separate Accounts and legal and regulatory matters, in Statements of Additional Information. We filed the Statement of Additional Information with the SEC on the same date as this Prospectus, and incorporate it herein by reference. You may obtain a copy of the current Statement of Additional Information applicable to your Contract without charge upon request by contacting us at the Annuities Service Center shown on page ii of this Prospectus. The SEC also maintains a Web site (http://www.sec.gov) that contains the Statements of Additional Information and other information about us, the Contracts and the Separate Accounts. We list the Table of Contents of the Statements of Additional Information below. JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H Statement of Additional Information Table of Contents General Information and History........................................... 1 Accumulation Unit Value Tables............................................ 1 Services.................................................................. 1 Independent Registered Public Accountant............................... 1 Servicing Agent........................................................ 1 Principal Underwriter.................................................. 1 Special Compensation and Reimbursement Arrangements.................... 2 Legal and Regulatory Matters.............................................. 5 Appendix A: Audited Financial Statements.................................. A-1
JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A Statement of Additional Information Table of Contents General Information and History........................................... 1 Accumulation Unit Value Tables............................................ 1 Services.................................................................. 1 Independent Registered Public Accountant............................... 1 Servicing Agent........................................................ 1 Principal Underwriter.................................................. 1 Special Compensation and Reimbursement Arrangements.................... 2 Legal and Regulatory Matters.............................................. 5 Appendix A: Audited Financial Statements................................. A-1
I. Glossary of Special Terms The following terms as used in this Prospectus have the indicated meanings. We also define other terms in specific sections of this Prospectus. 1940 ACT: The Investment Company Act of 1940, as amended. ACCUMULATION PERIOD: The period between the issue date of the Contract and the Annuity Commencement Date. ADDITIONAL PURCHASE PAYMENT: Any Purchase Payment made after the initial Purchase Payment. ANNUITANT: Any natural person or persons to whom annuity payments are made and whose life is used to determine the duration of annuity payments involving life contingencies. If the Contract Owner names more than one person as an "Annuitant," the second person named is referred to as "co-Annuitant." The "Annuitant" and "co-Annuitant" are referred to collectively as "Annuitant." The "Annuitant" is as designated on the Contract specification page or in the application, unless changed. The Annuitant becomes the Owner of the Contract during the Pay-out Period. ANNUITIES SERVICE CENTER: The mailing address of our service office is listed on page ii of this Prospectus. You can send overnight mail to us at the street address of the Service Center, 164 Corporate Drive, Portsmouth, NH 03801-6815. ANNUITY COMMENCEMENT DATE: The date we/you annuitize your Contract. That is, the Pay-out Period commences and we begin to make annuity payments to the Annuitant. You can change the Annuity Commencement Date to any date prior to the Maturity Date. ANNUITY OPTION: The method selected by the Contract Owner (or as specified in the Contract if no selection is made) for annuity payments made by us. ANNUITY UNIT: A unit of measure that is used after the election of an Annuity Option to calculate Variable Annuity payments. BENEFICIARY: The person, persons or entity entitled to the death benefit under the Contract upon the death of a Contract Owner or, in certain circumstances, an Annuitant. The Beneficiary is as specified in the application, unless changed. BUSINESS DAY: Any day on which the New York Stock Exchange is open for business. The end of a Business Day is the close of daytime trading of the New York Stock Exchange, which generally is 4:00 p.m. Eastern Time. CODE: The Internal Revenue Code of 1986, as amended. COMPANY: John Hancock USA or John Hancock New York. CONTINGENT BENEFICIARY: The person, persons or entity to become the Beneficiary if the Beneficiary is not alive. The Contingent Beneficiary is as specified in the application, unless changed. CONTRACT: The variable annuity contract offered by this Prospectus. If you purchased this annuity under a group contract, a "Contract" means the certificate issued to you under the group contract. CONTRACT ANNIVERSARY: The anniversary of the Contract Date. CONTRACT DATE: The date of issue of the Contract. CONTRACT VALUE: The total of the Investment Account values and, if applicable, any amount in the Loan Account attributable to the Contract. CONTRACT YEAR: The period of twelve consecutive months beginning on the date as of which the Contract is issued, or any anniversary of that date. DEBT: Any amounts in the Loan Account attributable to the Contract plus any accrued loan interest. The loan provision is applicable to certain Qualified Contracts only. FIXED ANNUITY: An Annuity Option with payments for a set dollar amount that we guarantee. FIXED INVESTMENT OPTION: An Investment Option in which a Company guarantees the principal value and the rate of interest credited to the Investment Account for the term of any guarantee period. 1 GENERAL ACCOUNT: All of a Company's assets, other than assets in its Separate Account and any other separate accounts it may maintain. INVESTMENT ACCOUNT: An account we establish for you which represents your interests in an Investment Option during the Accumulation Period. INVESTMENT OPTIONS: The investment choices available to Contract Owners. JOHN HANCOCK NEW YORK: John Hancock Life Insurance Company of New York. JOHN HANCOCK USA: John Hancock Life Insurance Company (U.S.A.). LOAN ACCOUNT: The portion of our General Account that we use for collateral for a loan under certain Qualified Contracts. MATURITY DATE: The latest allowable Annuity Commencement Date under your Contract. That is, the last date (unless we consent to a later date) on which the Pay-out Period commences and we begin to make annuity payments to the Annuitant. The Maturity Date is the date specified on the Contract specifications page, unless changed with our consent. NON-QUALIFIED CONTRACT: A Contract which is not issued under a Qualified Plan. OWNER OR CONTRACT OWNER ("YOU"): The person, persons (co-Owner) or entity entitled to all of the Ownership rights under the Contract. References in this Prospectus to Contract Owners are typically by use of "you." The Owner has the legal right to make all changes in contractual designations where specifically permitted by the Contract. The Owner is as specified in the application, unless changed. The Annuitant becomes the Owner of the Contract during the Pay-out Period. PAY-OUT PERIOD: The period when we make annuity payments to you following the Annuity Commencement Date. PORTFOLIO: A series of a registered open-end management investment company which corresponds to a Variable Investment Option. PROSPECTUS: This Prospectus that describes interests in the Contract. PURCHASE PAYMENT: An amount you pay to us for the benefits provided by the Contract. QUALIFIED CONTRACT: A Contract issued under a Qualified Plan. QUALIFIED PLAN: A retirement plan that receives favorable tax treatment under Section 401, 403, 408 (IRAs), 408A (Roth IRAs) or 457 of the Code. RESET: A reduction of the Benefit Base if you take Excess Withdrawals (see Appendix D: "Optional Guaranteed Minimum Withdrawal Benefits"). RIDER: An optional benefit that you may elect for an additional charge. SEPARATE ACCOUNT: John Hancock Life Insurance Company (U.S.A.) Separate Account H or John Hancock Life Insurance Company of New York Separate Account A, as applicable. A separate account is a segregated asset account of a company that is not commingled with the general assets and obligations of the company. STEP-UP: An increase in the Benefit Base and Lifetime Income Amount on certain Contract Anniversary dates when your Contract Value exceeds the previous Benefit Base (see Appendix D: "Optional Guaranteed Minimum Withdrawal Benefits"). STEP-UP DATE: The date on which we determine whether a Step-up could occur. SUB-ACCOUNT: A Sub-Account of a Separate Account. Each Sub-Account invests in shares of a specific Portfolio. UNLIQUIDATED PURCHASE PAYMENTS: The amount of all Purchase Payments in the Contract net of any withdrawals in excess of the free withdrawal amount that has been taken to date. UNPAID LOANS: The unpaid amount (including any accrued interest) of loans a Qualified Contract Owner may have taken from us, using certain Contract Value as collateral. 2 VARIABLE ANNUITY: An Annuity Option with payments which: (1) are not predetermined or guaranteed as to dollar amount, and (2) vary in relation to the investment experience of one or more specified Sub-Accounts. VARIABLE INVESTMENT OPTION: An Investment Option corresponding to a Sub-Account of a Separate Account that invests in shares of a specific Portfolio. WITHDRAWAL AMOUNT: The total amount taken from your Contract Value, including any applicable withdrawal charge, tax and proportional share of administrative fee, to process a withdrawal. 3 II. Overview This overview tells you some key points you should know about the Contract. Because this is an overview, it does not contain all the information that may be important to you. You should read carefully this entire Prospectus, including its Appendices, your Contract and the Statement of Additional Information for more detailed information. Insurance laws and regulations apply to us in every state in which our Contracts are sold. As a result, various terms and conditions of your Contract may vary from the terms and conditions described in this Prospectus, depending upon where you purchased a Contract. These variations will be reflected in your Contract or in a Rider attached to your Contract. WHAT KIND OF CONTRACT IS DESCRIBED IN THIS PROSPECTUS? The Contract is a flexible Purchase Payment deferred combination fixed and variable annuity Contract between you and a Company. "Deferred" means payments by a Company begin on a future date under a Contract. "Variable" means your investment amounts in a Contract may increase or decrease in value daily based upon your investment choices. A Contract provides for the accumulation of your investment amounts and the payment of annuity benefits on a variable and/or fixed basis. Depending on state requirements, we may have issued the Contract under a master group contract. This Prospectus describes Contracts purchased before April 28, 2008. For these purposes, "purchase" means that you completed an application and we received it before April 28, 2008. In certain instances, your Contract may have a Contract Date after this date. We do not authorize this Prospectus for use in connection with the purchase of a new Venture III Variable Annuity Contract on or after April 28, 2008. Although we still offer Venture III Contracts for sale, we make the offer through different prospectuses. WHO ISSUED MY CONTRACT? Your Contract provides the name of the Company that issued your Contract. In general, John Hancock USA may have issued the Contract in any jurisdiction except New York. John Hancock New York issues the Contract only in New York. Each Company sponsors its own Separate Account. WHAT ARE SOME BENEFITS OF THE CONTRACT? The Contract offers access to diversified money managers, a death benefit and an optional death benefit, an optional guaranteed minimum withdrawal benefit, annuity payments and tax-deferred treatment of earnings. In most cases, no income tax will have to be paid on your earning under the Contract until these earnings are paid out. We will pay a death benefit to your Beneficiary if you die during the Accumulation Period. We offer a variety of Fixed Annuity and Variable Annuity payment options. Periodic annuity payments will begin on the Annuity Commencement Date. You select the Maturity Date, the frequency of payment and the type of annuity benefit payment option. Annuity payments are made to the Annuitant. We provide more information about payout benefits in "V. Description of the Contract - Pay-Out Period Provisions." HOW DOES THE CONTRACT WORK? Under the Contract, you make one or more Purchase Payments to a Company for a period of time, known as the Accumulation Period. During the Accumulation Period, your Purchase Payments will be allocated to Investment Options. You may transfer among the investment options and take withdrawals. Later, beginning on the Annuity Commencement Date, that Company makes one or more annuity payments under the Contract, known as the Pay-out Period. Your Contract Value during the Accumulation Period and the amounts of annuity payments during the Pay-out Period may either be variable or fixed, depending upon your choice. HOW CAN I INVEST MONEY IN THE CONTRACT? We use the term Purchase Payment to refer to the investments you make in the Contract. We required you to pay an initial Purchase Payment of at least $10,000 to purchase a Contract. Each Additional Purchase Payment must be at least $30. Generally, you may make Additional Purchase Payments at any time. If a Purchase Payment would cause your Contract Value to exceed $1 million or your Contract Value already exceeds $1 million, you must obtain our approval in order to make the Purchase Payment. WHAT CHARGES DO I PAY UNDER THE CONTRACT? Your Contract has asset-based charges to compensate us primarily for our administrative and distribution expenses and for the mortality and expense risks that we assume under the Contract. These charges do not apply to assets you have in a Fixed Investment 4 Option. We take the deduction proportionally from each Variable Investment Options you are then using. We make deductions for any applicable taxes based on the amount of a Purchase Payment. If you elect a Rider, we also deduct the Rider charges shown in the Fee Tables proportionally from each of your Investment Options based on your value in each. If you withdraw some of your Purchase Payments from your Contract prior to the Annuity Commencement Date, or if you surrender your Contract, in its entirety, for cash prior to the Annuity Commencement Date, we may assess a withdrawal charge. The amount of this charge will depend on the number of years that have passed since we received your Purchase Payments, as shown in the Fee Tables. WHAT ARE MY INVESTMENT CHOICES? There are two main types of Investment Options: Variable Investment Options and Fixed Investment Options. VARIABLE INVESTMENT OPTIONS. You may invest in any of the Variable Investment Options. Each Variable Investment Option is a Sub-Account of a Separate Account that invests in a corresponding Portfolio. The Portfolio prospectus contains a full description of a Portfolio. The amount you've invested in any Variable Investment Option will increase or decrease based upon the investment performance of the corresponding Portfolio (reduced by certain charges we deduct - - see "III. Fee Tables"). Your Contract Value during the Accumulation Period and the amounts of annuity payments will depend upon the investment performance of the underlying Portfolio of the Variable Investment Option you select. Allocating assets only to one or a small number of the Variable Investment Options (other than the Lifestyle or Index Allocation Trusts) should not be considered a balanced investment strategy. In particular, allocating assets to a small number of Variable Investment Options that concentrate their investments in a particular business or market sector will increase the risk that your Contract Value will be more volatile since these Variable Investment Options may react similarly to business or market specific events. Examples of business or market sectors where this risk historically has been and may continue to be particularly high include: (a) technology-related business sectors, including internet-related businesses, (b) small cap securities and (c) foreign securities. We do not provide advice regarding appropriate investment allocations, and you should discuss this matter with your registered representative. FIXED INVESTMENT OPTIONS. Currently, we currently do not make any Fixed Investment Options available, other than a DCA Fixed Investment Option. If available, Fixed Investment Options will earn interest at the rate we have set for that Fixed Investment Option. The interest rate depends upon the length of the guarantee period of the Fixed Investment Option. Under a Fixed Investment Option, we guarantee the principal value of Purchase Payments and the rate of interest credited to the Investment Account for the term of any guarantee period we may make available. HOW CAN I CHANGE MY INVESTMENT CHOICES? ALLOCATION OF PURCHASE PAYMENTS. You designate how your Purchase Payments are to be allocated among the Investment Options. You may change this investment allocation for future Purchase Payments at any time. TRANSFERS AMONG INVESTMENT OPTIONS. During the Accumulation Period, you may transfer your investment amounts among Investment Options without charge, subject to certain restrictions described below and in the section entitled "Transfers Among Investment Options." During the Pay-out Period, you may transfer your allocations among the Variable Investment Options, subject to certain restrictions described in the section entitled "Transfers During Pay-out Period." However, during the Pay-out Period, you may not transfer from a Variable Investment Option to a Fixed Investment Option, or from a Fixed Investment Option to a Variable Investment Option. The Variable Investment Options can be a prime target for abusive transfer activity. Long-term investors in a Variable Investment Option can be harmed by frequent transfer activity since such activity may expose the Variable Investment Option's corresponding Portfolio to increased Portfolio transaction costs (affecting the value of the shares) and/or disruption to the corresponding Portfolio manager's ability to effectively manage such corresponding Portfolio, both of which may result in dilution with respect to interests held for long-term investment. To discourage disruptive frequent trading activity, we have adopted a policy for each Separate Account to restrict transfers to two per calendar month per Contract, with certain exceptions described in more detail in this Prospectus. We apply each Separate Account's policy and procedures uniformly to all Contract Owners. In addition to the transfer restrictions that we impose, the John Hancock Trust, BlackRock Variable Series Funds, Inc. and PIMCO Variable Insurance Trust also have adopted policies under Rule 22c-2 of the 1940 Act to detect and deter abusive short term trading. Accordingly, a Portfolio may require us to impose trading restrictions if it discovers violations of its frequent short-term trading policy. We will provide tax identification numbers and other Contract Owner transaction information to a Portfolio upon request, which it may use to identify any pattern or frequency of activity that violates its short-term trading policy. 5 HOW DO I ACCESS MY MONEY? During the Accumulation Period, you may withdraw all or a portion of your Contract Value. The amount you withdraw from any Investment Option must be at least $300 or, if less, your entire balance in that Investment Option. If a partial withdrawal plus any applicable withdrawal charge would reduce your Contract Value to less than $300, we will treat your withdrawal request as a request to withdraw all of your Contract Value. A withdrawal charge and an administration fee may apply to your withdrawal. A withdrawal may be subject to income tax and a 10% IRS penalty tax. WHAT TYPES OF OPTIONAL BENEFIT RIDERS MAY HAVE BEEN AVAILABLE TO ME UNDER THE CONTRACT? This Prospectus provides information about optional benefit Riders that you may have elected when you purchased a Contract. These Riders were not available in all states, and may not have been available when you purchased the Contract. If you elected any of these Riders, you will pay the additional charge shown in the Fee Tables. You should review your Contract carefully to determine which of the following optional benefit Riders, if any, you purchased: We describe the following optional benefit Riders in the Appendices to this Prospectus: Appendix C: Optional Enhanced Death Benefits - Annual Step Death Benefit - Guaranteed Earnings Multiplier Death Benefit - not offered in New York or Washington - Triple Protection Death Benefit - not offered in New York or Washington Appendix D: Optional Guaranteed Minimum Withdrawal Benefits - Income Plus for Life - Income Plus for Life - Joint Life - Principal Plus - Principal Plus for Life - Principal Plus for Life Plus Automatic Annual Step-up - Principal Plus for Life Plus Spousal Protection - Principal Returns If you elected to purchase any of these guaranteed minimum withdrawal benefit Riders, you may invest your Contract Value only in the Investment Options we make available for these benefits (see Appendix D: "Optional Guaranteed Minimum Withdrawal Benefits"). We also reserve the right to impose additional restrictions on Investment Options at any time. Appendix E: Optional Guaranteed Minimum Income Benefits - Guaranteed Retirement Income Program - offered by John Hancock USA - Guaranteed Retirement Income Program - offered by John Hancock New York CAN I CHANGE MY OPTIONAL GUARANTEED MINIMUM WITHDRAWAL BENEFIT RIDER? If you qualify, you may be eligible for our guaranteed minimum withdrawal benefit Rider exchange program. Please see Appendix F: "Additional Availability of Guaranteed Minimum Withdrawal Benefit Riders" for details. WHAT ARE THE TAX CONSEQUENCES OF OWNING A CONTRACT? In most cases, no income tax will have to be paid on amounts you earn under a Contract until these earnings are paid out. All or part of the following distributions from a Contract may constitute a taxable payout of earnings: - full or partial withdrawals (including surrenders and systematic withdrawals); - payment of any death benefit proceeds; - periodic payments under one of our annuity payment options; and - certain ownership changes. How much you will be taxed on distribution is based upon complex tax rules and depends on matters such as: - the type of the distribution; - when the distribution is made; - the nature of any Qualified Plan for which the Contract is being used; and - the circumstances under which the payments are made. If your Contract is issued in connection with a Qualified Plan, all or part of your Purchase Payments may be tax-deductible. 6 A 10% tax penalty applies in many cases to the taxable portion of any distributions from a Contract before you reach age 59 1/2. Also, most Qualified Plans require that distributions from a Contract commence and/or be completed by a certain period of time. This effectively limits the period of time during which you can continue to derive tax deferral benefits from any tax-deductible premiums you paid or on any earnings under the Contract. IF YOU PURCHASED THE CONTRACT AS AN INVESTMENT VEHICLE FOR A QUALIFIED PLAN, YOU SHOULD CONSIDER THAT THE CONTRACT DOES NOT PROVIDE ANY ADDITIONAL TAX-DEFERRAL BENEFITS BEYOND THE TREATMENT PROVIDED BY THE QUALIFIED PLAN ITSELF. THE FAVORABLE TAX BENEFITS AVAILABLE FOR QUALIFIED PLANS THAT INVEST IN ANNUITY CONTRACTS ARE ALSO GENERALLY AVAILABLE IF THE QUALIFIED PLAN PURCHASES OTHER TYPES OF INVESTMENTS, SUCH AS MUTUAL FUNDS, EQUITIES AND DEBT INSTRUMENTS. HOWEVER, THE CONTRACT OFFERS FEATURES AND BENEFITS THAT OTHER INVESTMENTS MAY NOT OFFER. YOU AND YOUR REGISTERED REPRESENTATIVE SHOULD CAREFULLY CONSIDER WHETHER THE FEATURES AND BENEFITS, INCLUDING THE INVESTMENT OPTIONS AND PROTECTION THROUGH LIVING GUARANTEES, DEATH BENEFITS AND OTHER BENEFITS PROVIDED UNDER AN ANNUITY CONTRACT ISSUED IN CONNECTION WITH A QUALIFIED PLAN ARE SUITABLE FOR YOUR NEEDS AND OBJECTIVES AND ARE APPROPRIATE IN LIGHT OF THE EXPENSE. We provide additional information on taxes in "VII Federal Tax Matters." We make no attempt to provide more than general information about use of the Contract with the various types of retirement plans. Purchasers of Contracts for use with any retirement plan should consult their legal counsel and tax advisor regarding the suitability of the Contract. CAN I RETURN MY CONTRACT? In most cases, you had the right to cancel your Contract within 10 days (or longer in some states) after you received it. In most states, you will receive a refund equal to the Contract Value (minus any Unpaid Loans) on the date of cancellation, and increased by any charges for premium taxes deducted by us to that date. In some states, or if your Contract was issued as an "IRA," you would have received a refund of any Purchase Payments you made. The date of cancellation is the date we receive the Contract. WILL I RECEIVE A CONFIRMATION STATEMENT? We will send you a confirmation statement for certain transactions in your Investment Accounts. You should carefully review these statements to verify their accuracy. You should immediately report any mistakes to our Annuities Service Center (at the address or phone number shown on page ii of this Prospectus). If you fail to notify our Annuities Service Center of any mistake within 60 days of the mailing of the confirmation statement, you will be deemed to have ratified the transaction. 7 III. Fee Tables The following tables describe the fees and expenses you paid at the time you purchased the Contract as well as the fees and expenses you pay while owning or surrendering a Venture III(R) Contract. The tables also describe the fees and expenses for optional benefit Riders that were available for certain time periods. The items listed under "Contract Owner Transaction Expenses" and "Periodic Fees and Expenses Other than Portfolio Expenses" are more completely described in this Prospectus under "Charges and Deductions." The items listed under "Total Annual Portfolio Operating Expenses" are described in detail in the Portfolio prospectuses. Unless otherwise shown, the tables entitled "Contract Owner Transaction Expenses" and "Periodic Fees and Expenses Other than Portfolio Expenses" show the maximum fees and expenses (including fees deducted from Contract Value for optional benefits). THE FOLLOWING TABLE DESCRIBES THE FEES AND EXPENSES THAT YOU PAY AT THE TIME THAT YOU BUY THE CONTRACT, SURRENDER THE CONTRACT, OR TRANSFER CASH VALUE BETWEEN INVESTMENT OPTIONS. STATE PREMIUM TAXES MAY ALSO BE DEDUCTED. CONTRACT OWNER TRANSACTION EXPENSES(1) MAXIMUM WITHDRAWAL CHARGE (as percentage of Purchase Payments)(2) First Year 6% Second Year 5% Third Year 4% Thereafter 0% TRANSFER FEE(3) Maximum Fee $25 Current Fee $ 0
(1) State premium taxes may also apply to your Contract, which currently range from 0.50% to 4.00% of each Purchase Payment (See "VI. Charges and Deductions - Premium Taxes"). (2) The charge is taken on a first-in, first-out basis within the specified period of years measured from the date of payment. (3) We reserve the right to impose a charge in the future for transfers in excess of 12 per year. The amount of this fee will not exceed the lesser of $25 or 2% of the amount transferred. 8 THE FOLLOWING TABLE DESCRIBES FEES AND EXPENSES THAT YOU PAY PERIODICALLY DURING THE TIME THAT YOU OWN THE CONTRACT. THIS TABLE DOES NOT INCLUDE ANNUAL PORTFOLIO OPERATING EXPENSES. PERIODIC FEES AND EXPENSES OTHER THAN PORTFOLIO EXPENSES
JOHN HANCOCK JOHN HANCOCK USA NEW YORK ------------ ------------ ANNUAL CONTRACT FEE $ 0 $ 0 ANNUAL SEPARATE ACCOUNT EXPENSES(1) Mortality and Expense Risks Fee 1.25% 1.25% Distribution Fee 0.25% 0.25% Administration Fee- asset based 0.15% 0.15% ----- ----- TOTAL ANNUAL SEPARATE ACCOUNT EXPENSES(1) 1.65% 1.65% (With No Optional Riders Reflected) OPTIONAL BENEFITS FEES DEDUCTED FROM SEPARATE ACCOUNT Optional Annual Step Death Benefit Fee2 0.20% 0.20% Optional Guaranteed Earnings Multiplier Benefit Fee 0.20% not offered ----- ----------- TOTAL ANNUAL SEPARATE ACCOUNT EXPENSES 2.05% 1.85% (With Annual Step Death Benefit and Guaranteed Earnings Multiplier fee reflected, as applicable) FEES DEDUCTED FROM CONTRACT VALUE OPTIONAL GUARANTEED MINIMUM WITHDRAWAL BENEFITS (as a percentage of Adjusted Benefit Base) Income Plus for Life Series Riders - Maximum Fee 1.20% 1.20% Income Plus for Life - Current Fee(3) 0.60% 0.60% Income Plus for Life - Joint Life - Current Fee(4) 0.60% not offered (as a percentage of Adjusted Guaranteed Withdrawal Balance) Principal Plus for Life - Maximum Fee(5) 0.75% 0.75% Principal Plus for Life - Current Fee(5) 0.40% 0.40% Principal Plus - Maximum Fee(6) 0.75% 0.75% Principal Plus - Current Fee(6) 0.30% 0.30% Principal Plus for Life Plus Automatic Annual Step-up - Maximum Fee(7) 1.20% 1.20% Principal Plus for Life Plus Automatic Annual Step-up - Current Fee(7) 0.60% 0.60% Principal Plus for Life Plus Spousal Protection - Maximum Fee(8) 1.20% not offered Principal Plus for Life Plus Spousal Protection - Current Fee(8) 0.65% not offered (as a percentage of Adjusted Guaranteed Withdrawal Balance) Principal Returns - Maximum Fee(9) 0.95% 0.95% Principal Returns - Current Fee(9) 0.50% 0.50% OPTIONAL GUARANTEED MINIMUM INCOME PROGRAMS(10) (as a percentage of Income Base) Guaranteed Retirement Income Program I not offered 0.30% Guaranteed Retirement Income Program II 0.45% 0.45% Guaranteed Retirement Income Program III 0.50% not offered OPTIONAL TRIPLE PROTECTION DEATH BENEFIT(11) 0.50% not offered (as a percentage of Triple Protection Death Benefit)
(1) A daily charge reflected as a percentage of the Variable Investment Options. (2) The charge for the optional Annual Step Death Benefit is 0.05% of the value of the Variable Investment Options if you purchased the Rider from John Hancock USA prior to May 2003 or from John Hancock New York prior to August 2005. (3) The current charge for the Income Plus for Life Rider is 0.60% of the Adjusted Benefit Base. We reserve the right to increase the charge to a maximum charge of 1.20 % if the Benefit Base is Stepped-up to equal the Contract Value. 9 (4) The current charge for the Income Plus for Life - Joint Life Rider is 0.60% of the Adjusted Benefit Base. We reserve the right to increase the charge to a maximum charge of 1.20 % if the Benefit Base is Stepped-up to equal the Contract Value. (5) The current charge for the Principal Plus for Life Rider is 0.40% of the Adjusted Guaranteed Withdrawal Balance. We reserve the right to increase the charge to a maximum charge of 1.20% if the Guaranteed Withdrawal Balance is Stepped-up to equal the Contract Value. (6) The current charge for the Principal Plus Rider is 0.30% of the Adjusted Guaranteed Withdrawal Balance. We reserve the right to increase the charge to a maximum charge of 0.75% if the Guaranteed Withdrawal Balance is Stepped-up to equal the Contract Value. (7) The current charge for the Principal Plus for Life Plus Automatic Annual Step-up Rider is 0.60% of the Adjusted Guaranteed Withdrawal Balance. We reserve the right to increase the charge to a maximum charge of 0.1.20% if the Guaranteed Withdrawal Balance is Stepped-up to equal the Contract Value. (8) The current charge for the Principal Plus for Life Plus Spousal Protection Rider is 0.65% of the Adjusted Guaranteed Withdrawal Balance. We reserve the right to increase the charge to a maximum charge of 0.75% if the Guaranteed Withdrawal Balance is Stepped-up to equal the Contract Value. (9) The current charge for the Principal Returns Rider is 0.50% of the Adjusted Guaranteed Withdrawal Balance. We reserve the right to increase the charge to a maximum charge of 0.95% if the Guaranteed Withdrawal Balance is Stepped-up to equal the Contract Value. (10) Guaranteed Retirement Income Programs could not be purchased if you elected to purchase Principal Plus. Availability varied by state and when you purchased your Contract. See Appendix E for availability. (11) Subject to state availability, John Hancock USA offered the Triple Protection Death Benefit from December, 2003 through December 2004. This optional benefit could not be purchased, however, if you elected to purchase Principal Plus, Guaranteed Retirement Income Program II or Guaranteed Retirement Income Program III. THE NEXT TABLE DESCRIBES THE MINIMUM AND MAXIMUM TOTAL OPERATING EXPENSES CHARGED BY THE PORTFOLIOS THAT YOU MAY PAY PERIODICALLY DURING THE TIME THAT YOU OWN THE CONTRACT. MORE DETAIL CONCERNING EACH PORTFOLIO'S FEES AND EXPENSES IS CONTAINED IN THE PORTFOLIO'S PROSPECTUS.
Total Annual Portfolio Operating Expenses Minimum(1) Maximum - ----------------------------------------- ---------- ------- Range of expenses that are deducted from Portfolio assets, including management fees, Rule 12b-1 fees, and other expenses for Contracts issued on and after May 13, 2002 0.74% 1.63% Range of expenses that are deducted from Portfolio assets, including management fees, Rule 12b-1 fees, and other expenses for Contracts issued prior to May 13, 2002 0.54% 1.63%
(1) For Contracts issued prior to May 13, 2002, the range of expenses has a lower minimum because the Separate Account invests in Class 1 Portfolio shares for certain Variable Investment Options available under those Contracts. EXAMPLES We provide the following examples that are intended to help you compare the costs of investing in the Contract with the costs of investing in other variable annuity contracts. These costs include Contract Owner expenses, Contract fees, Separate Account annual expenses and Portfolio fees and expenses. JOHN HANCOCK USA VENTURE III CONTRACTS WITH OPTIONAL BENEFIT RIDERS, ISSUED AFTER MAY 1, 2006. Example 1 below assumes that you invest $10,000 in a Contract issued after January 17, 2008 with the Annual Step Death Benefit and Income Plus for Life optional Riders. Example 2 assumes that you invest $10,000 in a Contract issued after July 17, 2006 with the Annual Step Death Benefit and Principal Plus for Life - Plus Automatic Annual Step-up optional Riders. Example 3 assumes that you invest $10,000 in a Contract issued between May 1, 2006 and July 16, 2006 with the Annual Step Death Benefit and Principal Plus for Life optional Riders. The examples also assume that your investment has a 5% return each year and assume the maximum annual Contract fee and the maximum fees and expenses of any of the Portfolios. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: Example 1. Maximum Portfolio operating expenses - John Hancock USA Contract with previously-offered optional Riders
1 YEAR 3 YEARS 5 YEARS 10 YEARS ------ ------- ------- -------- If you surrender the Contract at the end of the applicable time period: $1,025 $1,821 $2,466 $5,126 If you annuitize, or do not surrender the Contract at the end of the applicable time period: $ 476 $1,454 $2,466 $5,126
Example 2. Maximum Portfolio operating expenses - John Hancock USA Contract with previously-offered optional Riders
1 YEAR 3 YEARS 5 YEARS 10 YEARS ------ ------- ------- -------- If you surrender the Contract at the end of the applicable time period: $1,022 $1,807 $2,432 $5,008 If you annuitize, or do not surrender the Contract at the end of the applicable time period: $ 473 $1,440 $2,432 $5,008
10 Example 3. Maximum Fund operating expenses - John Hancock USA Contract with previously-offered optional Riders
1 YEAR 3 YEARS 5 YEARS 10 YEARS ------ ------- ------- -------- If you surrender the Contract at the end of the applicable time period: $975 $1,668 $2,190 $4,521 If you annuitize, or do not surrender the Contract at the end of the applicable time period: $426 $1,297 $2,190 $4,521
JOHN HANCOCK USA VENTURE III CONTRACTS WITH OPTIONAL BENEFIT RIDERS, ISSUED PRIOR TO MAY 1, 2006. Example 4 below assumes that you invest $10,000 in a Contract issued between December 8, 2003 and April 30, 2006 with the Annual Step Death Benefit, Guaranteed Earnings Multiplier Death Benefit, and Principal Plus for Life optional Riders. Example 5 assumes that you invest $10,000 in a Contract issued between May 13, 2002 and December 7, 2003 with the Annual Step Death Benefit, Guaranteed Earnings Multiplier Death Benefit and Guaranteed Retirement Income Program II optional Riders. Both examples also assume that your investment has a 5% return each year and assume the maximum annual Contract fee and the maximum fees and expenses of any of the Portfolios. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: Example 4. Maximum Portfolio operating expenses - John Hancock USA Contract with previously-offered optional Riders
1 YEAR 3 YEARS 5 YEARS 10 YEARS ------ ------- ------- -------- If you surrender the Contract at the end of the applicable time period: $996 $1,731 $2,297 $4,713 If you annuitize, or do not surrender the Contract at the end of the applicable time period: $449 $1,363 $2,297 $4,713
Example 5. Maximum Portfolio operating expenses - John Hancock USA Contract with previously-offered optional Riders
1 YEAR 3 YEARS 5 YEARS 10 YEARS ------ ------- ------- -------- If you surrender the Contract at the end of the applicable time period: $970 $1,654 $2,166 $4,467 If you annuitize, or do not surrender the Contract at the end of the applicable time period: $423 $1,284 $2,166 $4,467
JOHN HANCOCK USA VENTURE III CONTRACTS WITH NO OPTIONAL BENEFIT RIDERS. The following example assumes that you invest $10,000 in a Contract, but with no optional Riders. This example also assumes that your investment has a 5% return each year and assumes the average annual Contract fee we expect to receive for the Contracts and the minimum fees and expenses of any of the Portfolios that are available to such Contracts. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: Example 6. Minimum Portfolio operating expenses - John Hancock USA Contract with no optional Riders
1 YEAR 3 YEARS 5 YEARS 10 YEARS ------ ------- ------- -------- If you surrender the Contract at the end of the applicable time period: $797 $1,135 $1,273 $2,714 If you annuitize, or do not surrender the Contract at the end of the applicable time period: $242 $ 744 $1,273 $2,714
JOHN HANCOCK USA VENTURE III CONTRACTS ELIGIBLE TO INVEST IN SERIES I SHARES OF THE JOHN HANCOCK TRUST. The next two examples apply to Venture III Contracts issued prior to May 13, 2002 and assume that you invest $10,000 in a Contract and that your investment has a 5% return each year. Example 7 also assumes that we issued the Contract with three optional Riders that were available at the time: Annual Step Death Benefit, Guaranteed Earnings Multiplier and Guaranteed Retirement Income Program II. This example also assumes the maximum annual Contract fee and the maximum fees and expenses of any of the Portfolios. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: Example 7. Maximum Portfolio operating expenses - John Hancock USA Contract with previously-issued optional Riders (issued before May 13, 2002)
1 YEAR 3 YEARS 5 YEARS 10 YEARS ------ ------- ------- -------- If you surrender the Contract at the end of the applicable time period: $965 $1,641 $2,146 $4,442 If you annuitize, or do not surrender the Contract at the end of the applicable time period: $418 $1,272 $2,146 $4,442
11 The eighth example also applies to Contracts issued prior to May 13, 2002. This example assumes that you invest $10,000 in a Contract, but with no optional Riders. This example also assumes that your investment has a 5% return each year and assumes the average annual Contract fee we expect to receive for the Contracts and the minimum fees and expenses of any of the Portfolios. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: Example 8. Minimum Portfolio operating expenses - John Hancock USA Contract with no optional Riders (issued before May 13, 2002)
1 YEAR 3 YEARS 5 YEARS 10 YEARS ------ ------- ------- -------- If you surrender the Contract at the end of the applicable time period: $778 $1,078 $1,172 $2,513 If you annuitize, or do not surrender the Contract at the end of the applicable time period: $222 $ 684 $1,172 $2,513
JOHN HANCOCK NEW YORK VENTURE III CONTRACTS WITH OPTIONAL BENEFITS. Example 9 assumes that you invest $10,000 in a Contract with the Annual Step Death Benefit and Income Plus for Life optional Riders. Example 10 assumes that you invest $10,000 in a Contract with the Annual Step Death Benefit and Principal Plus for Life - Plus Automatic Annual Step-up optional Riders. These examples also assume that your investment has a 5% return each year and assume the maximum annual contract fee and the maximum fees and expenses of any of the Portfolios. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: Example 9. Maximum Portfolio operating expenses -- John Hancock New York Contract with optional Riders
1 YEAR 3 YEARS 5 YEARS 10 YEARS ------ ------- ------- -------- If you surrender the Contract at the end of the applicable time period: $1,025 $1,821 $2,466 $5,126 If you annuitize, or do not surrender the Contract at the end of the applicable time period: $ 476 $1,454 $2,466 $5,126
Example 10. Maximum Portfolio operating expenses -- John Hancock New York Contract with optional Riders
1 YEAR 3 YEARS 5 YEARS 10 YEARS ------ ------- ------- -------- If you surrender the Contract at the end of the applicable time period: $1,022 $1,807 $2,432 $5,008 If you annuitize, or do not surrender the Contract at the end of the applicable time period: $ 473 $1,440 $2,432 $5,008
JOHN HANCOCK NEW YORK VENTURE III CONTRACTS WITH PREVIOUSLY-OFFERED OPTIONAL BENEFITS. The following example assumes that you invest $10,000 in a Contract with the Annual Step Death Benefit and the Guaranteed Retirement Income Program II optional benefit Rider. This example also assumes that your Contract has a 5% return each year and assumes the maximum annual Contract fee and the maximum fees and expenses of any of the Portfolios. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: Example 11. Maximum Portfolio operating expenses - John Hancock New York Contract with previously-offered optional Riders
1 YEAR 3 YEARS 5 YEARS 10 YEARS ------ ------- ------- -------- If you surrender the Contract at the end of the applicable time period: $933 $1,545 $1,983 $4,142 If you annuitize, or do not surrender the Contract at the end of the applicable time period: $383 $1,169 $1,983 $4,142
JOHN HANCOCK NEW YORK VENTURE III CONTRACTS WITH NO OPTIONAL BENEFITS. The next example assumes that you invest $10,000 in a Contract, but with no optional Riders. This example also assumes that your investment has a 5% return each year and assumes the average annual Contract fee we expect to receive for the Contracts and the minimum fees and expenses of any of the Portfolios. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: Example 12. Minimum Portfolio operating expenses - John Hancock New York Contract with no optional Riders
1 YEAR 3 YEARS 5 YEARS 10 YEARS ------ ------- ------- -------- If you surrender the Contract at the end of the applicable time period: $797 $1,135 $1,273 $2,714 If you annuitize, or do not surrender the Contract at the end of the applicable time period: $242 $ 744 $1,273 $2,714
12 THE FOLLOWING TABLE DESCRIBES THE OPERATING EXPENSES FOR EACH OF THE PORTFOLIOS, AS A PERCENTAGE OF THE PORTFOLIO'S AVERAGE NET ASSETS FOR THE FISCAL YEAR ENDING DECEMBER 31, 2007. MORE DETAIL CONCERNING EACH PORTFOLIO'S FEES AND EXPENSES IS CONTAINED IN THE PORTFOLIO'S PROSPECTUS AND IN THE NOTES FOLLOWING THE TABLE. YOU SHOULD DISREGARD ANY REFERENCE TO SERIES I SHARES OF THE JOHN HANCOCK TRUST IF YOUR CONTRACT WAS ISSUED AFTER MAY 13, 2005. FOR CONTRACTS ISSUED PRIOR TO THAT DATE, WE INVEST THE ASSETS OF EACH SUB-ACCOUNT CORRESPONDING TO A JOHN HANCOCK TRUST PORTFOLIO IN SERIES I SHARES OF THAT PORTFOLIO (EXCEPT IN THE CASE OF PORTFOLIOS THAT COMMENCED OPERATIONS ON OR AFTER MAY 13, 2002. Not all funds are available for all versions of the Contracts. The Portfolios available may be restricted if you purchased a guaranteed minimum withdrawal benefit Rider (see Appendix D: "Optional Guaranteed Minimum Withdrawal Benefits").
ACQUIRED PORTFOLIO FEES TOTAL CONTRACTUAL NET MANAGEMENT OTHER AND OPERATING EXPENSE OPERATING PORTFOLIO/SERIES FEES 12B-1 FEES EXPENSES EXPENSES EXPENSES(1) REIMBURSEMENT EXPENSES - ---------------- ---------- ---------- -------- --------- ----------- ------------- --------- 500 INDEX(2, 3) Series I 0.46% 0.05% 0.03% 0.00% 0.54% 0.00% 0.54% Series II 0.46% 0.25% 0.03% 0.00% 0.74% 0.00% 0.74% ACTIVE BOND(2) Series I 0.60% 0.05% 0.03% 0.00% 0.68% 0.00% 0.68% Series II 0.60% 0.25% 0.03% 0.00% 0.88% 0.00% 0.88% ALL CAP CORE(2) Series I 0.77% 0.05% 0.04% 0.00% 0.86% 0.00% 0.86% Series II 0.77% 0.25% 0.04% 0.00% 1.06% 0.00% 1.06% ALL CAP GROWTH(2) Series I 0.85% 0.05% 0.05% 0.00% 0.95% 0.00% 0.95% Series II 0.85% 0.25% 0.05% 0.00% 1.15% 0.00% 1.15% ALL CAP VALUE(2) Series I 0.83% 0.05% 0.07% 0.00% 0.95% 0.00% 0.95% Series II 0.83% 0.25% 0.07% 0.00% 1.15% 0.00% 1.15% AMERICAN FUNDAMENTAL HOLDINGS(4,5) Series II 0.05% 0.75% 0.04% 0.40% 1.24% 0.05% 1.19% AMERICAN GLOBAL DIVERSIFICATION(4, 5) Series II 0.05% 0.75% 0.04% 0.63% 1.47% 0.05% 1.42% BLUE CHIP GROWTH(2,6) Series I 0.81% 0.05% 0.02% 0.00% 0.88% 0.00% 0.88% Series II 0.81% 0.25% 0.02% 0.00% 1.08% 0.00% 1.08% CAPITAL APPRECIATION(2) Series I 0.73% 0.05% 0.04% 0.00% 0.82% 0.00% 0.82% Series II 0.73% 0.25% 0.04% 0.00% 1.02% 0.00% 1.02% CLASSIC VALUE(2) Series II 0.80% 0.25% 0.07% 0.00% 1.12% 0.00% 1.12% CORE BOND(2) Series II 0.64% 0.25% 0.11% 0.00% 1.00% 0.00% 1.00% CORE EQUITY(2) Series II 0.77% 0.25% 0.04% 0.00% 1.06% 0.00% 1.06% EMERGING GROWTH(2) Series II 0.80% 0.25% 0.17% 0.00% 1.22% 0.00% 1.22% EMERGING SMALL COMPANY(2) Series I 0.97% 0.05% 0.05% 0.00% 1.07% 0.00% 1.07% Series II 0.97% 0.25% 0.05% 0.00% 1.27% 0.00% 1.27% EQUITY-INCOME(2,6) Series I 0.81% 0.05% 0.03% 0.00% 0.89% 0.00% 0.89% Series II 0.81% 0.25% 0.03% 0.00% 1.09% 0.00% 1.09% FINANCIAL SERVICES(2) Series I 0.81% 0.05% 0.05% 0.00% 0.91% 0.00% 0.91% Series II 0.81% 0.25% 0.05% 0.00% 1.11% 0.00% 1.11%
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ACQUIRED PORTFOLIO FEES TOTAL CONTRACTUAL NET MANAGEMENT OTHER AND OPERATING EXPENSE OPERATING PORTFOLIO/SERIES FEES 12B-1 FEES EXPENSES EXPENSES EXPENSES(1) REIMBURSEMENT EXPENSES - ---------------- ---------- ---------- -------- --------- ----------- ------------- --------- FRANKLIN TEMPLETON FOUNDING ALLOCATION(7) Series II 0.05% 0.25% 0.03% 0.86% 1.19% 0.05% 1.14% FUNDAMENTAL VALUE(2) Series I 0.76% 0.05% 0.04% 0.00% 0.85% 0.00% 0.85% Series II 0.76% 0.25% 0.04% 0.00% 1.05% 0.00% 1.05% GLOBAL(2, 8, 9, 10) Series I 0.81% 0.05% 0.11% 0.00% 0.97% 0.01% 0.96% Series II 0.81% 0.25% 0.11% 0.00% 1.17% 0.01% 1.16% GLOBAL ALLOCATION(2) Series I 0.85% 0.05% 0.11% 0.05% 1.06% 0.00% 1.06% Series II 0.85% 0.25% 0.11% 0.05% 1.26% 0.00% 1.26% GLOBAL BOND(2) Series I 0.70% 0.05% 0.11% 0.00% 0.86% 0.00% 0.86% Series II 0.70% 0.25% 0.11% 0.00% 1.06% 0.00% 1.06% HEALTH SCIENCES(2,6) Series I 1.05% 0.05% 0.09% 0.00% 1.19% 0.00% 1.19% Series II 1.05% 0.25% 0.09% 0.00% 1.39% 0.00% 1.39% HIGH INCOME(2) Series II 0.68% 0.25% 0.04% 0.00% 0.97% 0.00% 0.97% HIGH YIELD(2) Series I 0.66% 0.05% 0.04% 0.00% 0.75% 0.00% 0.75% Series II 0.66% 0.25% 0.04% 0.00% 0.95% 0.00% 0.95% INCOME & VALUE(2) Series I 0.80% 0.05% 0.06% 0.00% 0.91% 0.00% 0.91% Series II 0.80% 0.25% 0.06% 0.00% 1.11% 0.00% 1.11% INDEX ALLOCATION(11) Series II 0.05% 0.25% 0.03% 0.53% 0.86% 0.06% 0.80% INTERNATIONAL CORE(2) Series I 0.89% 0.05% 0.13% 0.00% 1.07% 0.00% 1.07% Series II 0.89% 0.25% 0.13% 0.00% 1.27% 0.00% 1.27% INTERNATIONAL EQUITY INDEX A(2, 3) Series I 0.53% 0.05% 0.03% 0.01% 0.62% 0.01% 0.61% Series II 0.53% 0.25% 0.03% 0.01% 0.82% 0.01% 0.81% INTERNATIONAL OPPORTUNITIES(2) Series II 0.87% 0.25% 0.12% 0.00% 1.24% 0.00% 1.24% INTERNATIONAL SMALL CAP(2) Series I 0.91% 0.05% 0.21% 0.00% 1.17% 0.00% 1.17% Series II 0.91% 0.25% 0.21% 0.00% 1.37% 0.00% 1.37% INTERNATIONAL VALUE(2, 8) Series I 0.81% 0.05% 0.16% 0.00% 1.02% 0.02% 1.00% Series II 0.81% 0.25% 0.16% 0.00% 1.22% 0.02% 1.20% INVESTMENT QUALITY BOND(2) Series I 0.59% 0.05% 0.07% 0.00% 0.71% 0.00% 0.71% Series II 0.59% 0.25% 0.07% 0.00% 0.91% 0.00% 0.91% LARGE CAP(2) Series I 0.71% 0.05% 0.04% 0.00% 0.80% 0.01% 0.79% Series II 0.71% 0.25% 0.04% 0.00% 1.00% 0.00% 1.00% LARGE CAP VALUE(2) Series II 0.81% 0.25% 0.04% 0.00% 1.10% 0.00% 1.10%
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ACQUIRED PORTFOLIO FEES TOTAL CONTRACTUAL NET MANAGEMENT OTHER AND OPERATING EXPENSE OPERATING PORTFOLIO/SERIES FEES 12B-1 FEES EXPENSES EXPENSES EXPENSES(1) REIMBURSEMENT EXPENSES - ---------------- ---------- ---------- -------- --------- ----------- ------------- --------- LIFESTYLE AGGRESSIVE Series I 0.04% 0.05% 0.02% 0.87% 0.98% 0.00% 0.98% Series II 0.04% 0.25% 0.02% 0.87% 1.18% 0.00% 1.18% LIFESTYLE BALANCED Series I 0.04% 0.05% 0.02% 0.82% 0.93% 0.00% 0.93% Series II 0.04% 0.25% 0.02% 0.82% 1.13% 0.00% 1.13% LIFESTYLE CONSERVATIVE Series I 0.04% 0.05% 0.02% 0.76% 0.87% 0.00% 0.87% Series II 0.04% 0.25% 0.02% 0.76% 1.07% 0.00% 1.07% LIFESTYLE GROWTH Series I 0.04% 0.05% 0.02% 0.85% 0.96% 0.00% 0.96% Series II 0.04% 0.25% 0.02% 0.85% 1.16% 0.00% 1.16% LIFESTYLE MODERATE Series I 0.04% 0.05% 0.02% 0.80% 0.91% 0.00% 0.91% Series II 0.04% 0.25% 0.02% 0.80% 1.11% 0.00% 1.11% MID CAP INDEX(2,3) Series I 0.47% 0.05% 0.03% 0.00% 0.55% 0.01% 0.54% Series II 0.47% 0.25% 0.03% 0.00% 0.75% 0.01% 0.74% MID CAP INTERSECTION(2) Series II 0.87% 0.25% 0.06% 0.00% 1.18% 0.00% 1.18% MID CAP STOCK(2) Series I 0.84% 0.05% 0.05% 0.00% 0.94% 0.01% 0.93% Series II 0.84% 0.25% 0.05% 0.00% 1.14% 0.01% 1.13% MID CAP VALUE(2) Series I 0.85% 0.05% 0.05% 0.00% 0.95% 0.00% 0.95% Series II 0.85% 0.25% 0.05% 0.00% 1.15% 0.00% 1.15% MONEY MARKET(2) Series I 0.48% 0.05% 0.03% 0.00% 0.56% 0.01% 0.55% Series II 0.48% 0.25% 0.03% 0.00% 0.76% 0.01% 0.75% NATURAL RESOURSES(2) Series II 1.00% 0.25% 0.08% 0.00% 1.33% 0.00% 1.33% OPTIMIZED ALL CAP(2) Series II 0.71% 0.25% 0.04% 0.00% 1.00% 0.00% 1.00% OPTIMIZED VALUE(2) Series II 0.65% 0.25% 0.04% 0.00% 0.94% 0.00% 0.94% PACIFIC RIM(2) Series I 0.80% 0.05% 0.27% 0.00% 1.12% 0.01% 1.11% Series II 0.80% 0.25% 0.27% 0.00% 1.32% 0.01% 1.31% REAL ESTATE SECURITIES(2) Series I 0.70% 0.05% 0.03% 0.00% 0.78% 0.00% 0.78% Series II 0.70% 0.25% 0.03% 0.00% 0.98% 0.00% 0.98% REAL RETURN BOND(2,12,13) Series II 0.68% 0.25% 0.06% 0.00% 0.99% 0.00% 0.99% SCIENCE & TECHNOLOGY (2,6) Series I 1.05% 0.05% 0.09% 0.00% 1.19% 0.00% 1.19% Series II 1.05% 0.25% 0.09% 0.00% 1.39% 0.00% 1.39% SMALL CAP(2) Series II 0.85% 0.25% 0.07% 0.01% 1.18% 0.00% 1.18% SMALL CAP GROWTH(2) Series I 1.07% 0.05% 0.06% 0.00% 1.18% 0.01% 1.17% Series II 1.07% 0.25% 0.06% 0.00% 1.38% 0.01% 1.37%
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ACQUIRED PORTFOLIO FEES TOTAL CONTRACTUAL NET MANAGEMENT OTHER AND OPERATING EXPENSE OPERATING PORTFOLIO/SERIES FEES 12B-1 FEES EXPENSES EXPENSES EXPENSES(1) REIMBURSEMENT EXPENSES - ---------------- ---------- ---------- -------- --------- ----------- ------------- --------- SMALL CAP INDEX(2, 3) Series I 0.48% 0.05% 0.03% 0.00% 0.56% 0.00% 0.56% Series II 0.48% 0.25% 0.03% 0.00% 0.76% 0.00% 0.76% SMALL CAP OPPORTUNITIES(2) Series I 0.99% 0.05% 0.04% 0.00% 1.08% 0.00% 1.08% Series II 0.99% 0.25% 0.04% 0.00% 1.28% 0.00% 1.28% SMALL CAP VALUE(2) Series II 1.06% 0.25% 0.05% 0.00% 1.36% 0.00% 1.36% SMALL COMPANY(2) Series II 1.04% 0.25% 0.34% 0.00% 1.63% 0.00% 1.63% SMALL COMPANY VALUE(2, 6) Series I 1.02% 0.05% 0.04% 0.00% 1.11% 0.00% 1.11% Series II 1.02% 0.25% 0.04% 0.00% 1.31% 0.00% 1.31% STRATEGIC BOND(2) Series I 0.67% 0.05% 0.07% 0.00% 0.79% 0.00% 0.79% Series II 0.67% 0.25% 0.07% 0.00% 0.99% 0.00% 0.99% STRATEGIC INCOME(2) Series II 0.69% 0.25% 0.09% 0.00% 1.03% 0.00% 1.03% TOTAL RETURN(2, 9, 13) Series I 0.69% 0.05% 0.06% 0.00% 0.80% 0.00% 0.80% Series II 0.69% 0.25% 0.06% 0.00% 1.00% 0.00% 1.00% TOTAL STOCK MARKET INDEX(2, 3) Series I 0.48% 0.05% 0.04% 0.00% 0.57% 0.01% 0.56% Series II 0.48% 0.25% 0.04% 0.00% 0.77% 0.01% 0.76% U.S. CORE(2) Series I 0.76% 0.05% 0.05% 0.00% 0.86% 0.01% 0.85% Series II 0.76% 0.25% 0.05% 0.00% 1.06% 0.01% 1.05% U.S. GOVERNMENT SECURITIES(2) Series I 0.61% 0.05% 0.07% 0.00% 0.73% 0.00% 0.73% Series II 0.61% 0.25% 0.07% 0.00% 0.93% 0.00% 0.93% U.S. HIGH YIELD BOND(2) Series II 0.73% 0.25% 0.05% 0.00% 1.03% 0.01% 1.02% U.S. LARGE CAP(2) Series I 0.82% 0.05% 0.03% 0.00% 0.90% 0.00% 0.90% Series II 0.82% 0.25% 0.03% 0.00% 1.10% 0.00% 1.10% UTILITIES(2) Series I(4) 0.82% 0.05% 0.15% 0.00% 1.02% 0.01% 1.01% Series II(4) 0.82% 0.25% 0.15% 0.00% 1.22% 0.01% 1.21% VALUE(2) Series I 0.74% 0.05% 0.04% 0.00% 0.83% 0.00% 0.83% Series II 0.74% 0.25% 0.04% 0.00% 1.03% 0.00% 1.03% FAM VARIABLE SERIES FUNDS, INC.: BlackRock Basic Value V.I. Fund 0.60% 0.15% 0.07%(23, 24) 0.00% 0.82% 0.00% 0.82% BlackRock Global Allocation V.I. Fund 0.65% 0.15% 0.13%(24) 0.04% 0.97%(17) 0.00% 0.97% BlackRock Value Opportunities V.I. Fund 0.75% 0.15% 0.09%(24) 0.01% 1.00%(17) 0.00% 1.00% PIMCO VARIABLE INSURANCE TRUST (CLASS M): VIT All Asset Portfolio 0.175% 0.25% 0.45%(18) 0.69%(19) 1.565%(20) 0.02%(21,22) 1.545%
16
FEEDER FUND MASTER FUND ----------------------------------------------------------------------------- -------------------------- TOTAL MASTER TOTAL FUND MASTER AND NET FUND AND NET TOTAL CONTRACTUAL PORTFOLIO FEEDER FEEDER MANAGEMENT OTHER OPERATING EXPENSE OPERATING MANAGEMENT OTHER FUND FUND PORTFOLIO/SERIES FEES 12B-1 FEES EXPENSES EXPENSES(1) REIMBURSEMENT EXPENSES FEES (15) EXPENSES EXPENSES EXPENSES - ---------------- ---------- ---------- -------- ----------- ------------- --------- ---------- -------- -------- -------- AMERICAN ASSET ALLOCATION(16) Series II 0.00% 0.75% 0.04% 0.79% 0.01% 0.78% 0.31% 0.01% 1.11% 1.10% AMERICAN BLUE CHIP INCOME & GROWTH Series II 0.00% 0.75% 0.03% 0.78% 0.00% 0.78% 0.41% 0.01% 1.20% 1.20% AMERICAN BOND(16) Series II 0.00% 0.75% 0.02% 0.77% 0.00% 0.77% 0.40% 0.01% 1.18% 1.18% AMERICAN GLOBAL GROWTH(16) Series II 0.00% 0.75% 0.06% 0.81% 0.03% 0.78% 0.53% 0.02% 1.36% 1.33% AMERICAN GLOBAL SMALL CAPITALIZATION(16) Series II 0.00% 0.75% 0.11% 0.86% 0.08% 0.78% 0.70% 0.03% 1.59% 1.51% AMERICAN GROWTH Series II 0.00% 0.75% 0.02% 0.77% 0.00% 0.77% 0.32% 0.01% 1.10% 1.10% AMERICAN GROWTH-INCOME Series II 0.00% 0.75% 0.02% 0.77% 0.00% 0.77% 0.26% 0.01% 1.04% 1.04% AMERICAN HIGH- INCOME BOND(16) Series II 0.00% 0.75% 0.21% 0.96% 0.18% 0.78% 0.47% 0.01% 1.44% 1.26% AMERICAN INTERNATIONAL Series II 0.00% 0.75% 0.02% 0.77% 0.00% 0.77% 0.49% 0.03% 1.29% 1.29% AMERICAN NEW WORLD(16) Series II 0.00% 0.75% 0.13% 0.88% 0.10% 0.78% 0.76% 0.06% 1.70% 1.60%
FOOTNOTES TO EXPENSE TABLE: (1) The "Total Operating Expenses" include fees and expenses incurred indirectly by a Portfolio as a result of its investment in other investment companies (each, an "Acquired Portfolio"). The Total Portfolio Annual Expenses shown may not correlate to the Portfolio's ratio of expenses to average net assets shown in the "Financial Highlights" section, which does not include Acquired Portfolio fees and expenses. Acquired Portfolio Fees and Expenses are estimated, not actual, amounts based on the Portfolio's current fiscal year. (2) Effective January 1, 2006, the Adviser has contractually agreed to waive its management fee for certain Portfolios of JHT or otherwise reimburse the expenses of those Portfolios ("Participating Portfolios"). The reimbursement will equal, on an annualized basis, 0.02% of that portion of the aggregate net assets of all the Participating Portfolios that exceeds $50 billion. The amount of the Reimbursement will be calculated daily and allocated among all the Participating Portfolios in proportion to the daily net assets of each Portfolio. The Reimbursement will remain in effect until May 1, 2009. (3) The Adviser has agreed to reduce its advisory fee for a class of shares of the Portfolio in an amount equal to the amount by which the Expenses of such class of the Portfolio exceed the Expense Limit (as a percentage of the average annual net assets of the Portfolio attributable to the class) of 0.05% and, if necessary, to remit to that class of the Portfolio an amount necessary to ensure that such Expenses do not exceed that Expense Limit. "Expenses" means all the expenses of a class of a Portfolio excluding: (a) advisory fees, (b) Rule 12b-1 fees, (c) transfer agency fees and service fees, (d) blue sky fees, (e) taxes, (f) portfolio brokerage commissions, (g) interest, and (h) litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of JHT's business. This expense limitation will continue in effect unless otherwise terminated by the Adviser upon notice to JHT. This voluntary expense limitation may be terminated at any time. (4) For Portfolios that have not started operations or have operations of less than six months as of December 31, 2007, expenses are based on estimates of expenses expected to be incurred over the next year. (5) The management fee of 0.05% of average annual net assets is being waived until May 1, 2010. (6) T. Rowe Price has voluntarily agreed to waive a portion of its subadvisory fee for the Blue Chip Growth Trust, Equity-Income Trust, Health Sciences Trust, Science & Technology Trust, and Small Company Value Trust. This waiver is based on the combined average daily net assets of these Portfolios and other JHT Portfolios and certain funds of John Hancock Funds II (collectively, the "T. Rowe Portfolios"). Based on the combined average daily net assets of the T. Rowe Portfolios, the percentage fee reduction (as a percentage of the Subadvisory Fee) as of November 1, 2006 is as follows: 0.00% for the First $750 million, 5.0% for the Next $750 million, 7.5% for the Next $1.5 billion, and 10.0% if over $3 billion. The Adviser has also voluntarily agreed to reduce the advisory fee for each T. Rowe Portfolio by the amount that the subadvisory fee is reduced. This voluntary fee waiver may be terminated by T. Rowe Price or the Adviser. 17 FOOTNOTES TO EXPENSE TABLE: - CONTINUED (7) The Adviser has contractually agreed to limit fund expenses to 0.025% until May 1, 2010. Portfolio expenses include advisory fees and other operating expenses of the fund but exclude 12b-1fees, underlying fund expenses, taxes, brokerage commissions, interest expenses, litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of business. (8) The Adviser has contractually agreed to waive its advisory fee so that the amount retained by the Adviser after payment of the subadvisory fees for the Portfolio does not exceed 0.45% of the Portfolio's average net assets. This advisory fee waiver will remain in place until May 1, 2010. (9) The advisory fees rate shown reflects the new tier schedule that is currently in place. (10) The Adviser has contractually agreed to reduce its advisory fee for a class of shares of the Portfolio in an amount equal to the amount by which the Expenses of such class of the Portfolio exceed the Expense Limit (as a percentage of the average annual net assets of the Portfolio attributable to the class) of 0.15% and, if necessary, to remit to that class of the Portfolio an amount necessary to ensure that such Expenses do not exceed the Expense Limit. "Expenses" means all the expenses of a class of a Portfolio excluding: (a) advisory fees, (b) Rule 12b-1 fees, (c) transfer agency fees and service fees, (d) blue sky fees, (e) taxes, (f) portfolio brokerage commissions, (g) interest, and (h) litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of JHT's business. This contractual reimbursement will be in effect until May 1, 2010 and thereafter until terminated by the Adviser on notice to the Portfolio. (11) The Adviser has contractually agreed to reimburse Expenses of the Portfolio that exceed 0.02% of the average annual net assets of the Portfolio. Expenses include all expenses of the Portfolio except Rule 12b-1 fees, underlying Portfolio expenses, class specific expenses such as blue sky and transfer agency feeds, portfolio brokerage, interest, and litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of business. This reimbursement may be terminated any time after May 1, 2010. (12) The advisory fees were changed during the previous fiscal year. Rates shown reflect what the advisory fees would have been during the fiscal year 2007 had the new rates been in effect for the whole year. (13) "Other Expenses" reflects the estimate of amounts to be paid as substitute dividend expenses on securities borrowed for the settlement of short sales. (14) The Adviser has agreed to limit portfolio level expenses to 0.71%. Portfolio level expenses consist of operating expenses of the portfolio, excluding, 12b-1 advisory fees, transfer agent fees, blue-sky, taxes, brokerage commissions, interest expenses, litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of business. This voluntary expense limitation may be terminated at any time. (15) Capital Research Management Company (the adviser to the master fund for each of the JHT Feeder Funds) is waiving a portion of its management fee. The fees shown do not reflect the waiver. See the financial highlights table in the American Funds prospectus or annual report for further information. (16) The Adviser has contractually limited other portfolio level expenses to 0.03% until May 1, 2010. Other portfolio level expenses consist of operating expenses of the portfolio, excluding advisor fees, Rule 12b-1 fees, transfer agent fees, blue sky fees, taxes, brokerage commissions, interest expenses, litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of business. (17) The Total Portfolio Operating Expenses do not correlate to the ratio of expenses to average net assets given in the Portfolio's most recent annual report, which does not include Acquired Portfolio Fund Fees and Expenses. (18) "Other Expenses" reflects an administrative fee of 0.25% and service fees of 0.20%. (19) Acquired Portfolio Fees and Expenses (underlying Portfolio Expenses) for the Portfolio are based upon an allocation of the Portfolio's assets among the underlying Portfolio and upon the total annual operating expenses of the Institutional Class shares of these underlying Portfolios. Acquired Portfolio Fees and Expenses (underlying Portfolio Expense) will vary with changes in the expenses of the underlying Portfolio, as well as allocation of the Portfolio's assets, and may be higher or lower than those shown above. For a listing of the expenses associated with each underlying Portfolio for the most recent fiscal year, please see the Annual Underlying Portfolio Expenses table in the Portfolio's prospectus. (20) The Total Annual Portfolio Operating Expenses do not match the Ratio of Expenses to Average Net Assets of the Portfolio, as set forth in the "Financial Highlights" table of the Portfolio's prospectus, because the Ratio of Expenses to Average Net Assets reflects the operating expenses of the Portfolio and does not include underlying Portfolio Expenses. (21) PIMCO has contractually agreed, for the All Asset Portfolio's current fiscal year, to reduce its advisory fee to the extent that the underlying Portfolio Expenses attributable to advisory and administrative fees exceed 0.64% of the total assets invested in underlying Portfolios. PIMCO may recoup these waivers in future periods, not exceeding three years, provided total expenses, including such recoupment, do not exceed the annual expense limit. (22) The Expense Reduction, as described in footnote 21 above, is implemented based on a calculation of underlying Portfolio Expenses attributable to advisory and administrative fees that is different from the calculation of Acquired Portfolio Fees and Expenses (underlying Portfolio Expenses) listed in the table above and described in footnote 19. Please see the Management of the Portfolios--Fund-of-Funds Fees section of the Portfolio's prospectus for additional information. (23) "Other Expenses" includes Acquired Portfolio Fees and Expenses, which are less than 0.01%. (24) "Other Expenses" includes transfer agency fees. PFPC Inc., an affiliate of the Investment Adviser, provides transfer agency services to the Portfolio. The Portfolio pays a fee for these services. The Investment Adviser or its affiliates also provide certain accounting services to the Portfolio and the Portfolio reimburses the Investment Adviser or its affiliates for these services. We include a Table of Accumulation Unit Values relating to the Contracts in Appendix U to this Prospectus. LOCATION OF FINANCIAL STATEMENTS. Our financial statements and those of the respective Separate Account may be found in the Statements of Additional Information. 18 IV. General Information About Us, the Separate Accounts and the Portfolios THE COMPANIES We are subsidiaries of Manulife Financial Corporation. Your Contract is issued by either John Hancock USA or John Hancock New York. Please refer to your Contract to determine which Company issued your Contract. John Hancock USA, formerly known as "The Manufacturers Life Insurance Company (U.S.A.)," is a stock life insurance company originally organized under the laws of Maine on August 20, 1955 by a special act of the Maine legislature. John Hancock USA redomesticated under the laws of Michigan on December 30, 1992. John Hancock USA is authorized to transact life insurance and annuity business in all states (except New York), the District of Columbia, Guam, Puerto Rico and the Virgin Islands. Its principal office is located at 601 Congress Street, Boston, Massachusetts 02210-2805. John Hancock USA also has an Annuities Service Center at 164 Corporate Drive, Portsmouth, NH 03801-6815. John Hancock New York, formerly known as "The Manufacturers Life Insurance Company of New York," is a wholly-owned subsidiary of John Hancock USA and is a stock life insurance company organized under the laws of New York on February 10, 1992. John Hancock New York is authorized to transact life insurance and annuity business only in the State of New York. Its principal office is located at 100 Summit Lake Drive, Valhalla, New York 10595. John Hancock New York also has an Annuities Service Center at 164 Corporate Drive, Portsmouth, NH 03801-6815. The ultimate parent of both companies is Manulife Financial Corporation, a publicly traded company, based in Toronto, Canada. Manulife Financial Corporation is the holding company of The Manufacturers Life Insurance Company and its subsidiaries, collectively known as Manulife Financial. The Companies changed their names to John Hancock Life Insurance Company (U.S.A.) and John Hancock Life Insurance Company of New York, respectively, on January 1, 2005 following Manulife Financial Corporation's acquisition of John Hancock Financial Services, Inc. John Hancock USA and John Hancock New York have received the following ratings from independent rating agencies: AAA Extremely strong financial security characteristics; 1st Standard & Poor's category of 21 A++ Superior companies have a very strong ability to meet their A.M. Best obligations; 1st category of 16 AA+ Very strong capacity to meet policyholder and contract Fitch obligations; 2nd category of 24 John Hancock USA has also received the following rating from Moody's: Aa1 Excellent in financial strength; Moody's 2nd category of 21 These ratings, which are current as of the date of this Prospectus and are subject to change, are assigned as a measure of John Hancock USA's and John Hancock New York's ability to honor any guarantees provided by the Contract and any applicable optional Riders, but not specifically to its products, the performance (return) of these products, the value of any investment in these products upon withdrawal or to individual securities held in any Portfolio. With respect to the fixed portion of the Contracts issued by John Hancock USA, The Manufacturers Life Insurance Company unconditionally guarantees to make funds available to John Hancock USA for the timely payment of contractual claims under certain John Hancock USA Fixed Annuity contracts pursuant to a Guarantee Agreement dated March 31, 1996. The guarantee may be terminated by The Manufacturers Life Insurance Company upon notice to John Hancock USA. Termination will not affect The Manufacturers Life Insurance Company's continuing liability with respect to all Fixed Annuity contracts and Fixed Investment Options issued by John Hancock USA prior to the termination of the guarantee except if: - the liability to pay contractual claims under the contracts is assumed by another insurer; or 19 - we are sold and the buyer's guarantee is substituted for The Manufacturers Life Insurance Company's guarantee. When you direct money into a DCA Fixed Investment Option, the Company guarantees the principal value and the rate of interest credited to that Investment Option for the term of any DCA guarantee period. THE SEPARATE ACCOUNTS We use our Separate Accounts to support the Variable Investment Options you choose. You do not invest directly in the Portfolios made available under the Contracts. When you direct or transfer money to a Variable Investment Option, we will purchase shares of a corresponding Portfolio through one of our Separate Accounts. We hold the Portfolio's shares in a "Sub-Account" (usually with a name similar to that of the corresponding Portfolio) of the applicable Separate Account. A Separate Account's assets (including the Portfolio's shares) belong to the Company that maintains that Separate Account. For Contracts issued by John Hancock USA, we purchase and hold Portfolio shares in John Hancock Life Insurance Company (U.S.A.) Separate Account H. John Hancock USA, then known as "The Manufacturers Life Insurance Company (U.S.A.)," became the owner of this Separate Account in a merger transaction with The Manufacturers Life Insurance Company of North America ("Manulife North America") on January 1, 2002. Manulife North America initially established Separate Account H on August 24, 1984 as a separate account under the laws of Delaware. When Manulife North America merged with John Hancock USA, John Hancock USA became the owner of Separate Account H and reestablished it as a Separate Account under the laws of Michigan. As a result of this merger, John Hancock USA became the owner of all of Manulife North America's assets, including the assets of Separate Account H, and assumed all of Manulife North America's obligations including those under its Contracts. The merger had no other effects on the terms and conditions of Contracts issued prior to January 1, 2002. For Contracts issued by John Hancock New York, we purchase and hold Portfolio shares in John Hancock Life Insurance Company of New York Separate Account A. John Hancock New York established this Separate Account on March 4, 1992 as a separate account under the laws of New York. The income, gains and losses, whether or not realized, from assets of a Separate Account are credited to or charged against that Separate Account without regard to a Company's other income, gains, or losses. Nevertheless, all obligations arising under a Company's Contracts are general corporate obligations of that Company. Assets of a Separate Accounts may not be charged with liabilities arising out of any of the respective Company's business. We reserve the right, subject to compliance with applicable law, to add other Sub-Accounts, eliminate existing Sub-Accounts, combine Sub-Accounts or transfer assets in one Sub-Account to another Sub-Account that we, or an affiliated company, may establish. We will not eliminate existing Sub-Accounts or combine Sub-Accounts without the prior approval of the appropriate state or federal regulatory authorities. We registered the Separate Accounts with the SEC under the 1940 Act as unit investment trusts. Registration under the 1940 Act does not involve supervision by the SEC of the management or investment policies or practices of the Separate Accounts. If a Company determines that it would be in the best interests of persons having voting rights under the Contracts it issues, that Company's Separate Account may be operated as a management investment company under the 1940 Act or it may be deregistered if 1940 Act registration were no longer required. THE PORTFOLIOS When you select a Variable Investment Option, we invest your money in a Sub-Account of our Separate Accounts and it invests in shares of a corresponding Portfolio of: - the John Hancock Trust; or - the PIMCO Variable Insurance Trust with respect to the "PIMCO VIT All Asset Portfolio"; or - for certain John Hancock USA Contracts issued before January 28, 2002, the BlackRock Variable Series Funds, Inc. with respect to the "BlackRock Basic Value V.I. Fund," the "BlackRock Value Opportunities V.I. Fund" and the "BlackRock Global Allocation V.I. Fund." THE PORTFOLIOS IN THE SEPARATE ACCOUNT ARE NOT PUBLICLY TRADED MUTUAL FUNDS. The Portfolios are only available to you as Investment Options in the Contracts or, in some cases, through other variable annuity contracts or variable life insurance policies issued by us or by other life insurance companies. In some cases, the Portfolios also may be available through participation in certain tax-qualified pension, retirement or college savings plans. 20 Investment Management The Portfolios' investment advisers and managers (i.e., subadvisers) may manage publicly traded mutual funds with similar names and investment objectives. However, the Portfolios are NOT directly related to any publicly traded mutual fund. You should not compare the performance of any Portfolio described in this Prospectus with the performance of a publicly traded mutual fund. THE PERFORMANCE OF ANY PUBLICLY TRADED MUTUAL FUND COULD DIFFER SUBSTANTIALLY FROM THAT OF ANY OF THE PORTFOLIOS HELD IN OUR SEPARATE ACCOUNT. The John Hancock Trust is a so-called "series" type mutual fund and is registered under the 1940 Act as an open-end management investment company. John Hancock Investment Management Services, LLC ("JHIMS LLC") provides investment advisory services to the John Hancock Trust and receives investment management fees for doing so. JHIMS LLC pays a portion of its investment management fees to other firms that manage the John Hancock Trust's Portfolios. JHIMS LLC is our affiliate and we indirectly benefit from any investment management fees JHIMS LLC retains. The John Hancock Trust has obtained an order from the SEC permitting JHIMS LLC, subject to approval by the Board of Trustees, to change a subadviser for a Portfolio or the fees paid to subadvisers and to enter into new subadvisory agreements from time to time without the expense and delay associated with obtaining shareholder approval of the change. This order does not, however, permit JHIMS LLC to appoint a subadviser that is an affiliate of JHIMS LLC or the John Hancock Trust (other than by reason of serving as subadviser to a portfolio) (an "Affiliated Subadviser") or to change a subadvisory fee of an Affiliated Subadviser without the approval of shareholders. The All Asset Portfolio of the PIMCO Trust receives investment advisory services from Pacific Investment Management Company LLC ("PIMCO") and pays investment management fees to PIMCO. The BlackRock Basic Value V.I. Fund, BlackRock Value Opportunities V.I. Fund, and the BlackRock Global Allocation V.I. Fund receive investment advisory services from BlackRock Advisors, LLC. BlackRock Advisors, LLC has retained BlackRock Investment Management, LLC ("BIM"), an affiliate, to act as the investment sub-adviser to the BlackRock Basic Value V.I. Fund and the BlackRock Value Opportunities V.I. Fund and BlackRock Asset Management U.K. Limited ("BAM UK"), an affiliate, to act as the investment sub-adviser to the BlackRock Global Allocation V.I. Fund and may pay BIM and BAM UK a portion of the annual management fee it receives from each respective Portfolio. If shares of a Portfolio are no longer available for investment or in our judgment investment in a Portfolio becomes inappropriate, we may eliminate the shares of a Portfolio and substitute shares of another Portfolio, or of another open-end registered investment company. A substitution may be made with respect to both existing investments and the investment of future Purchase Payments. However, we will make no such substitution without first notifying you and obtaining approval of the SEC (to the extent required by the 1940 Act). Portfolio Expenses The table in the Fee Tables section of the Prospectus shows the investment management fees, Rule 12b-1 fees and other operating expenses for these Portfolio shares as a percentage (rounded to two decimal places) of each Portfolio's average daily net assets for 2007, except as indicated in the footnotes appearing at the end of the table. Fees and expenses of the Portfolios are not fixed or specified under the terms of the Contracts and may vary from year to year. These fees and expenses differ for each Portfolio and reduce the investment return of each Portfolio. Therefore, they also indirectly reduce the return you will earn on any Separate Account Investment Options you select. The Portfolios pay us or certain of our affiliates compensation for some of the distribution, administrative, shareholder support, marketing and other services we or our affiliates provide to the Portfolios. The amount of this compensation is based on a percentage of the assets of the Portfolio attributable to the variable insurance products that we and our affiliates issue. These percentages may differ from Portfolio to Portfolio and among classes of shares within a Portfolio. In some cases, the compensation is derived from the Rule 12b-1 fees which are deducted from a Portfolio's assets and paid for the services we or our affiliates provide to that Portfolio. In addition, compensation payments of up to 0.45% of assets may be made by a Portfolio's investment adviser or its affiliates. We pay American Funds Distributors, Inc., the principal underwriter for the American Fund Insurance Series, a percentage of some or all of the amounts allocated to the "American" Funds of the John Hancock Trust for the marketing support services it provides (see "Distribution of Contracts"). Any of these compensation payments do not, however, result in any charge to you in addition to what is shown in the Total Annual Portfolio Operating Expenses table. Funds-of-Funds and Master-Feeder Funds Each of the John Hancock Trust's American Fundamental Holdings, American Global Diversification, Index Allocation, Franklin Templeton Founding Allocation, Lifestyle Aggressive, Lifestyle Balanced, Lifestyle Conservative, Lifestyle Growth and Lifestyle Moderate Portfolios ("JHT Funds of Funds") is a "fund-of-funds" that invest in other underlying Portfolios. Expenses for a fund-of-funds may be higher than that for other Portfolios because a fund-of-funds bears its own expenses and indirectly bears its proportionate share of expenses of the underlying Portfolios in which it invests. The prospectus for each of the JHT Funds of Funds contains a description of the underlying Portfolios for that Portfolio, including expenses and associated investment risks. 21 Each of the John Hancock Trust's American Asset Allocation, American Bond, American Global Growth, American Global Small Capitalization, American Growth, American Growth-Income, American High-Income Bond, American International, and American New World Trusts ("JHT American Funds") invests in Series 1 or Series 2 shares of the corresponding investment portfolio of a "master" fund. The JHT American Fund Portfolios operate as "feeder funds," which means that the each Portfolio does not buy investment securities directly. Instead, it invests in a corresponding "master fund" which in turn purchases investment securities. Each of the JHT American Fund Portfolios has the same investment objective and limitations as its corresponding master fund. The combined master and feeder 12b-1 fees for each JHT American Fund Portfolio totals 0.75% of net assets. The prospectus for the American Fund master funds is included with the prospectuses for the JHT American Fund Portfolios. Portfolio Investment Objectives and Strategies You bear the investment risk of any Portfolio you choose as a Variable Investment Option for your Contract. The following table contains a general description of the Portfolios that we make available under the Contracts. You can find a full description of each Portfolio, including the investment objectives, policies and restrictions of, and the risks relating to, investment in the Portfolio in the prospectus for that Portfolio. YOU CAN OBTAIN A COPY OF A PORTFOLIO'S PROSPECTUS (INCLUDING THE PROSPECTUS FOR A MASTER FUND FOR ANY OF THE PORTFOLIOS THAT ARE OPERATED AS "FEEDER FUNDS"), WITHOUT CHARGE, BY CONTACTING US AT THE ANNUITIES SERVICE CENTER SHOWN ON PAGE II OF THIS PROSPECTUS. YOU SHOULD READ THE PORTFOLIO'S PROSPECTUS CAREFULLY BEFORE INVESTING IN THE CORRESPONDING VARIABLE INVESTMENT OPTION. JOHN HANCOCK TRUST We show the Portfolio's manager (i.e. subadviser) in bold above the name of the Portfolio and we list the Portfolios alphabetically by subadviser. The Portfolios available may be restricted if you purchase a guaranteed minimum withdrawal benefit Rider (see Appendix D: "Optional Guaranteed Minimum Withdrawal Benefits"). INVESCO AIM CAPITAL MANAGEMENT, INC. All Cap Growth Trust Seeks long-term capital appreciation. To do this, the Portfolio invests principally in common stocks of companies likely to benefit from new or innovative products, services or processes as well as those that have experienced above-average, long-term growth in earnings and have excellent prospects for future growth. AMERICAN CENTURY INVESTMENT MANAGEMENT, INC. Small Company Trust Seeks long-term capital growth. To do this, the Portfolio invests at least 80% of its net assets in stocks of small U.S. companies. BLACKROCK INVESTMENT MANAGEMENT, LLC Large Cap Value Trust Seeks long-term growth of capital. To do this, the Portfolio invests at least 80% of its net assets in equity securities of large cap U.S. companies with strong relative earnings growth, earnings quality and good relative valuation. CAPITAL GUARDIAN TRUST COMPANY Income & Value Trust Seeks the balanced accomplishment of (a) conservation of principal and (b) long-term growth of capital and income. To do this, the Portfolio invests its assets in both equity and fixed income securities based on the expected returns of the portfolios. U.S. Large Cap Trust Seeks long-term growth of capital and income. To do this, the Portfolio invests at least 80% of its net assets in equity and equity-related securities of quality large-cap U.S. companies that will outperform their peers over time.
22 CAPITAL RESEARCH AND MANAGEMENT COMPANY (Adviser to the American Fund Insurance Series) - ADVISER TO MASTER FUND American Asset Allocation Seeks to provide high total return (including Trust income and capital gains) consistent with preservation of capital over the long term. To do this, the Portfolio invests all of its assets in the master fund, Class 1 shares of the American Funds Insurance Series Asset Allocation Fund, which invests in a diversified portfolio of common stocks and other equity securities, bonds and other intermediate and long-term debt securities, and money market instruments. American Blue Chip Income Seeks to produce income exceeding the average and Growth Trust yield on U.S. stocks generally and to provide an opportunity for growth of principal consistent with sound common stock investing. To do this, the Portfolio invests all of its assets in the master fund, Class 1 shares of the American Funds Insurance Series Blue Chip Income and Growth Fund, which invests primarily in common stocks of larger, more established companies based in the U.S. American Bond Trust Seeks to maximize current income and preserve capital. To do this, the Portfolio invests all of its assets in the master fund, Class 1 shares of the American Funds Insurance Series Bond Fund, which invests at least 80% of its assets in bonds, with at least 65% in investment-grade debt securities and up to 35% in lower rated fixed income securities. American Global Growth Seeks to make shareholders' investment grow Trust over time. To do this, the Portfolio invests all of its assets in the master fund, Class 1 shares of the American Funds Insurance Series Global Growth Fund, which invests primarily in common stocks of companies located around the world. American Global Small Seeks to make the shareholders' investment grow Capitalization Trust over time. To do this, the Portfolio invests all of its assets in the master fund, Class 1 shares of the American Funds Insurance Series Global Small Capitalization Fund, which invests primarily in stocks of smaller companies located around the world. American Growth Trust Seeks to make the shareholders' investment grow. To do this, the Portfolio invests all of its assets in the master fund, Class 1 shares of the American Funds Insurance Series Growth Fund, which invests primarily in common stocks of companies that appear to offer superior opportunities for growth of capital. American Growth-Income Seeks to make the shareholders' investments Trust grow and to provide the shareholder with income over time. To do this, the Portfolio invests all of its assets in the master fund, Class 1 shares of the American Funds Insurance Series Growth-Income Fund, which invests primarily in common stocks or other securities that demonstrate the potential for appreciation and/or dividends. American High-Income Bond Seeks to provide a high level of current income Trust and, secondarily, capital appreciation. To do this, the Portfolio invests all of its assets in the master fund, Class 1 shares of the American Funds Insurance Series High-Income Bond Fund, which invests at least 65% of its assets in higher yielding and generally lower quality debt securities.
23 CAPITAL RESEARCH AND MANAGEMENT COMPANY (Adviser to the American Fund Insurance Series) - ADVISER TO MASTER FUND - CONTINUED American International Seeks to make the shareholders' investment Trust grow. To do this, the Portfolio invests all of its assets in the master fund, Class 1 shares of the American Funds Insurance Series International Fund, which invests primarily in common stocks of companies located outside the United States. American New World Trust Seeks to make the shareholders' investment grow over time. To do this, the Portfolio invests all of its assets in the master fund, Class 1 shares of the American Funds Insurance Series New World Fund, which invests primarily in stocks of companies with significant exposure to countries with developing economies and/or markets. DAVIS SELECTED ADVISERS, L.P. Financial Services Trust Seeks growth of capital. To do this, the Portfolio invests at least 80% of its net assets in companies that are principally engaged in financial services. Fundamental Value Trust Seeks growth of capital. To do this, the Portfolio invests primarily in common stocks of U.S. companies with durable business models that can be purchased at attractive valuations relative to their intrinsic value. DECLARATION MANAGEMENT & RESEARCH LLC Active Bond Trust (1) Seeks income and capital appreciation. To do this, the Portfolio invests at least 80% of its net assets in a diversified mix of debt securities and instruments with maturity durations of approximately 4 to 6 years. DEUTSCHE INVESTMENT MANAGEMENT AMERICAS INC. ("DIMA") All Cap Core Trust Seeks long-term growth of capital. To do this, the Portfolio invests in common stocks and other equity securities within all asset classes (small-, mid- and large-cap), which may be listed on securities exchanges, traded in various over the counter markets or have no organized markets. The Portfolio may also invest in U.S. Government securities. Real Estate Securities Seeks to achieve a combination of long-term Trust(2) capital appreciation and current income. To do this, the Portfolio invests at least 80% of its net assets in equity securities of REITs and real estate companies. FRANKLIN TEMPLETON INVESTMENTS CORP. International Small Cap Seeks long-term capital appreciation. To do Trust this, the Portfolio invests at least 80% of its net assets in securities issued by foreign small-cap companies including in emerging markets. GRANTHAM, MAYO, VAN OTTERLOO & CO. LLC International Core Trust Seeks high total return. To do this, the Portfolio invests at least 80% of its total assets in a diversified portfolio of equity investments from developed markets outside the U.S. U.S. Core Trust Seeks a high total return. To do this, the Portfolio invests at least 80% of its net assets in investments tied economically to the U.S., and which are undervalued or have improving fundamentals.
24 INDEPENDENCE INVESTMENT LLC Small Cap Trust Seeks maximum capital appreciation consistent with reasonable risk to principal. To do this, the Portfolio invests at least 80% of its net assets in equity securities of small-cap companies. JENNISON ASSOCIATES LLC Capital Appreciation Trust Seeks long-term growth of capital. To do this, the Portfolio invests at least 65% of its total assets in equity and equity-related securities of companies that are attractively valued and have above-average growth prospects. LEGG MASON CAPITAL MANAGEMENT, INC. Core Equity Trust Seeks long-term capital growth. To do this, the Portfolio invests at least 80% of its net assets in equity securities that offer the potential for capital growth by purchasing securities at large discounts relative to their intrinsic value. LORD, ABBETT & CO. LLC All Cap Value Trust Seeks capital appreciation. To do this, the Portfolio invests at least 50% of its net assets in equity securities of large, seasoned U.S. and multinational companies that are believed to be undervalued. The Portfolio invests the remainder of its assets in undervalued mid-sized and small company securities. Mid Cap Value Trust Seeks capital appreciation. To do this, the Portfolio invests at least 80% of its net assets in stocks of mid-sized companies that have the potential for significant market appreciation due to growing recognition of improvement in their financial results or anticipation of such improvement. MARSICO CAPITAL MANAGEMENT, LLC International Opportunities Seeks long-term growth of capital. To do this, Trust the Portfolio invests at least 65% of its total assets in common stocks of at least three different foreign companies of any size that are selected for their long-term growth potential. MASSACHUSETTS FINANCIAL SERVICES COMPANY Utilities Trust Seeks capital growth and current income (income above that available from the Portfolio invested entirely in equity securities). To do this, the Portfolio invests at least 80% of its net assets in equity and debt securities of domestic and foreign companies (including emerging markets) in the utilities industry. MFC GLOBAL INVESTMENT MANAGEMENT (U.S.A.) LIMITED 500 Index Trust Seeks to approximate the aggregate total return of a broad-based U.S. domestic equity market index. To do this, the Portfolio invests at least 80% of its net assets in the common stocks in the S&P 500(R) index and securities that as a group will behave in a manner similar to the index. (3) American Fundamental Seeks long term growth of capital. To do this, Holdings Trust the Portfolio invests primarily in four funds of the American Funds Insurance Series: Bond Fund, Growth Fund, Growth-Income Fund, and International Fund. The Portfolio is permitted to invest in six other funds of the American Funds Insurance Series as well as other funds, investment companies, and other types of investments.
25 MFC GLOBAL INVESTMENT MANAGEMENT (U.S.A.) LIMITED - CONTINUED American Global Seeks long term growth of capital. To do this, Diversification Trust the Portfolio invests primarily in five funds of the American Funds Insurance Series: Bond Fund, Global Growth Fund, Global Small Capitalization Fund, High-Income Bond Fund, and New World Fund. The Portfolio is permitted to invest in five other funds of the American Funds Insurance Series as well as other funds, investment companies, and other types of investments. Franklin Templeton Founding Seeks long-term growth of capital. To do this, Allocation Trust the Fund invests primarily in three underlying Portfolios: Global Trust, Income Trust and Mutual Shares Trust. The Portfolio is a fund of funds and is also authorized to invest in other underlying Portfolios and investment companies. Index Allocation Trust Seeks long term growth of capital. Current income is also a consideration. To do this, the Portfolio invests approximately 70% of its total assets in underlying Portfolios which invest primarily in equity securities and approximately 30% of its total assets in underlying Portfolios which invest primarily in fixed income securities. Lifestyle Aggressive Trust Seeks long-term growth of capital. Current (4) income is not a consideration. To do this, the Portfolio invests 100% of its assets in underlying Portfolios which invest primarily in equity securities. Lifestyle Balanced Trust Seeks a balance between a high level of current (4) income and growth of capital, with a greater emphasis on growth of capital. To do this, the Portfolio invests approximately 40% of its assets in underlying Portfolios which invest primarily in fixed income securities, and approximately 60% in underlying Portfolios which invest primarily in equity securities. Lifestyle Conservative Seeks a high level of current income with some Trust (4) consideration given to growth of capital. To do this, the Portfolio invests approximately 80% of its assets in underlying Portfolios which invest primarily in fixed income securities, and approximately 20% in underlying Portfolios which invest primarily in equity securities. Lifestyle Growth Trust (4) Seeks long-term growth of capital. Current income is also a consideration. To do this, the Portfolio invests approximately 20% of its assets in underlying Portfolios which invest primarily in fixed income securities, and approximately 80% in underlying Portfolios which invest primarily in equity securities. Lifestyle Moderate Trust Seeks a balance between a high level of current (4) income and growth of capital, with a greater emphasis on income. To do this, the Portfolio invests approximately 60% of its assets in underlying Portfolios which invest primarily in fixed income securities, and approximately 40% in underlying Portfolios which invest primarily in equity securities. Mid Cap Index Trust Seeks to approximate the aggregate total return of a mid cap U.S. domestic equity market index. To do this, the Portfolio invests at least 80% of its net assets in the common stocks in the S&P MidCap 400(R) index(3) and securities that as a group behave in a manner similar to the index.
26 MFC GLOBAL INVESTMENT MANAGEMENT (U.S.A.) LIMITED - CONTINUED Money Market Trust Seeks to obtain maximum current income consistent with preservation of principal and liquidity. To do this, the Portfolio invests in high quality, U.S. dollar denominated money market instruments. Pacific Rim Trust Seeks to achieve long-term growth of capital. To do this, the Portfolio invests at least 80% of its net assets in common stocks and equity-related securities of established, larger-capitalization non-U.S. companies located in the Pacific Rim region, including emerging markets that have attractive long-term prospects for growth of capital. Optimized All Cap Trust Seeks long-term growth of capital. To do this, (formerly Quantitative All the Portfolio invests at least 65% of its total Cap Trust, successor to assets in equity securities of large, mid and Growth & Income Trust) small-cap U.S. companies with strong industry position, leading market share, proven management and strong financials. Optimized Value Trust Seeks long-term capital appreciation. To do (formerly Quantitative this, the Portfolio invests at least 65% of its Value Trust) total assets in equity securities of U.S. companies with the potential for long-term growth of capital. Small Cap Index Trust Seeks to approximate the aggregate total return of a small cap U.S. domestic equity market index. To do this, the Portfolio invests at least 80% of its net assets in the common stocks in the Russell 2000(R) Index(5) and securities that as a group behave in a manner similar to the index. Total Stock Market Index Seeks to approximate the aggregate total return Trust of a broad-based U.S. domestic equity market index. To do this, the Portfolio invests at least 80% of its net assets in the common stocks in the Dow Jones Wilshire 5000(R) Index6 and securities that as a group will behave in a manner similar to the index. MFC GLOBAL INVESTMENT MANAGEMENT (U.S.), LLC Emerging Growth Trust Seeks superior long-term rates of return through capital appreciation. To do this, the Portfolio invests primarily in high quality securities of small-cap U.S. companies whose growth prospects are better than average because they have a unique product or a technology/service edge or an expanding market share. High Income Trust Seeks high current income; capital appreciation is a secondary goal. To do this, the Portfolio invests at least 80% of its net assets in U.S. and foreign fixed-income securities that are rated BB/Ba or lower or are unrated equivalents. Strategic Income Trust Seeks a high level of current income. To do this, the Portfolio invests at least 80% of its assets in foreign government and corporate debt securities from developed and emerging markets, U.S. Government and agency securities and domestic high yield bonds. MUNDER CAPITAL MANAGEMENT Small Cap Opportunities Seeks long-term capital appreciation. To do Trust this, the Portfolio invests at least 80% of its net assets in equity securities of small-capitalization companies.
27 PACIFIC INVESTMENT MANAGEMENT COMPANY LLC Global Bond Trust Seeks maximum total return, consistent with preservation of capital and prudent investment management. To do this, the Portfolio invests at least 80% of its net assets in fixed income instruments, futures contracts (including related options) with respect to such securities and options on such securities. Real Return Bond Trust Seeks maximum real return, consistent with preservation of real capital and prudent investment management. To do this, the Portfolio invests at least 80% of its net assets in inflation-indexed bonds of varying maturities issued by the U.S. and non-U.S. governments, their agencies or instrumentalities and corporations, which may be represented by forwards or derivatives. Total Return Trust Seeks maximum total return, consistent with preservation of capital and prudent investment management. To do this, the Portfolio invests at least 65% of its total assets in a diversified Portfolio of fixed income instruments of varying maturities, which may be represented by forwards or derivatives. PZENA INVESTMENT MANAGEMENT, LLC Classic Value Trust Seeks long-term growth of capital. To do this, the Portfolio invests at least 80% of its assets in domestic equity securities of companies that are currently undervalued relative to the market, based on estimated future earnings and cash flow. RCM CAPITAL MANAGEMENT LLC Emerging Small Company Seeks long term capital appreciation. The Trust Portfolio invests at least 80% of its net assets in securities of small cap companies. The subadviser seeks to create an investment portfolio of growth stocks across major industry groups. SSGA FUNDS MANAGEMENT, INC. International Equity Index Seeks to track the performance of a broad-based Trust A equity index of foreign companies primarily in developed countries and, to a lesser extent, in emerging market countries. To do this, the Portfolio invests at least 80% of its assets in securities listed in the Morgan Stanley Capital International All Country World Excluding U.S. Index. (7) T. ROWE PRICE ASSOCIATES, INC. AND RCM CAPITAL MANAGEMENT LLC. Science & Technology Trust Seeks long-term growth of capital. Current income is incidental to the Portfolio's objective. To do this, the Portfolio invests at least 80% of its net assets in the common stocks of companies expected to benefit from the development, advancement, and/or use of science and technology. T. ROWE PRICE ASSOCIATES, INC. Blue Chip Growth Trust Seeks to provide long-term growth of capital. (successor to U.S. Global Current income is a secondary objective. To do Leaders Trust) this, the Portfolio invests at least 80% of its net assets in the common stocks of large and medium-sized blue chip growth companies that are well established in their industries.
28 T. ROWE PRICE ASSOCIATES, INC. - CONTINUED Equity-Income Trust Seeks to provide substantial dividend income and also long-term capital appreciation. To do this, the Portfolio invests at least 80% of its net assets in equity securities, with 65% in common stocks of well-established companies paying above-average dividends. Health Sciences Trust Seeks long-term capital appreciation. To do this, the Portfolio invests at least 80% of its net assets in common stocks of companies engaged in the research, development, production, or distribution of products or services related to health care, medicine, or the life sciences. Small Company Value Trust Seeks long-term growth of capital. To do this, the Portfolio invests at least 80% of its net assets in small companies whose common stocks are believed to be undervalued. TEMPLETON GLOBAL ADVISORS LIMITED Global Trust Seeks long-term capital appreciation. To do this, the Portfolio invests primarily in the equity securities of companies located throughout the world, including emerging markets. TEMPLETON INVESTMENT COUNSEL, LLC International Value Seeks long-term growth of capital. To do this, Trust(8) the Portfolio invests at least 65% of its total assets in equity securities of companies located outside the U.S., including in emerging markets. UBS GLOBAL ASSET MANAGEMENT (AMERICAS) INC. Global Allocation Trust Seeks total return, consisting of long-term capital appreciation and current income. To do this, the Portfolio invests in equity and fixed income securities of issuers located within and outside the U.S. based on prevailing market conditions. Large Cap Trust Seeks to maximize total return, consisting of capital appreciation and current income. To do this, the Portfolio invests at least 80% of its net assets in equity securities of U.S. large capitalization companies whose estimated fundamental value is greater than its market value at any given time. VAN KAMPEN (A REGISTERED TRADE NAME OF MORGAN STANLEY INVESTMENT MANAGEMENT INC.) Value Trust Seeks to realize an above-average total return over a market cycle of three to five years, consistent with reasonable risk. To do this, the Portfolio invests at least 65% of its total assets in equity securities which are believed to be undervalued relative to the stock market in general. WELLINGTON MANAGEMENT COMPANY, LLP Investment Quality Bond Seeks to provide a high level of current income Trust consistent with the maintenance of principal and liquidity. To do this, the Portfolio invests at least 80% of its net assets in bonds rated investment grade, focusing on corporate bonds and U.S. government bonds with intermediate to longer term maturities. Mid Cap Intersection Trust Seeks long-term growth of capital. To do this, the Portfolio invests at least 80% of its net assets in equity securities of medium-sized companies with significant capital appreciation potential.
29 WELLINGTON MANAGEMENT COMPANY, LLP - CONTINUED Mid Cap Stock Trust Seeks long-term growth of capital. To do this, (successor to Dynamic the Portfolio invests at least 80% of its net Growth Trust) assets in equity securities of medium-sized companies with significant capital appreciation potential. Natural Resources Trust Seeks long-term total return. To do this, the Portfolio invests at least 80% of its net assets in equity and equity-related securities of natural resource-related companies worldwide, including emerging markets. Small Cap Growth Trust Seeks long-term capital appreciation. To do this, the Portfolio invests at least 80% of its net assets in small-cap companies that are believed to offer above-average potential for growth in revenues and earnings. Small Cap Value Trust Seeks long-term capital appreciation. To do this, the Portfolio invests at least 80% of its net assets in small-cap companies that are believed to be undervalued. WELLS CAPITAL MANAGEMENT, INCORPORATED Core Bond Trust Seeks total return consisting of income and capital appreciation. To do this, the Portfolio invests at least 80% of its net assets in a broad range of investment grade debt securities, including U.S. Government obligations, corporate bonds, mortgage- and other asset-backed securities and money market instruments that offer attractive yields and are undervalued relative to issues of similar credit quality and interest rate sensitivity. U.S. High Yield Bond Trust Seeks total return with a high level of current income. To do this, the Portfolio invests at least 80% of its net assets in U.S. corporate debt securities that are below investment grade, including preferred and other convertible high yield securities. WESTERN ASSET MANAGEMENT COMPANY High Yield Trust Seeks to realize an above-average total return over a market cycle of three to five years, consistent with reasonable risk. To do this, the Portfolio invests at least 80% of its net assets in high yield securities, including corporate bonds, preferred stocks and U.S. Government and foreign securities. Strategic Bond Trust Seeks a high level of total return consistent with preservation of capital. To do this, the Portfolio invests at least 80% of its net assets in fixed income securities across a range of credit qualities and may invest a substantial portion of its assets in obligations rated below investment grade. U.S. Government Securities Seeks to obtain a high level of current income Trust consistent with preservation of capital and maintenance of liquidity. To do this, the Portfolio invests at least 80% of its net assets in debt obligations and mortgage-backed securities issued or guaranteed by the U.S. government, its agencies or instrumentalities.
30 BLACKROCK VARIABLE SERIES FUNDS, INC. (9) We show the Portfolio's manager in bold above the name of the Portfolio. BLACKROCK INVESTMENT MANAGEMENT, LLC BlackRock Basic Value V. I. The investment objective of the Portfolio is to Fund seek capital appreciation and, secondarily, income. BlackRock Value The investment objective of the Portfolio is to Opportunities V. I. Fund seek long-term growth of capital. BLACKROCK ASSET MANAGEMENT U.K. LIMITED BlackRock Global Allocation The investment objective of the Portfolio is to V. I. Fund seek high total investment return.
PIMCO VARIABLE INSURANCE TRUST We show the Portfolio's manager in bold above the name of the Portfolio. PACIFIC INVESTMENT MANAGEMENT COMPANY PIMCO VIT All Asset The Portfolio invests primarily in a Portfolio diversified mix of: (a) common stocks of large and mid sized U.S. companies, and (b) bonds with an overall intermediate term average maturity.
(1) The Active Bond Trust is also subadvised by MFC Global Investment Management (U.S.), LLC. (2) RREEF American L.L.C. provides sub-subadvisory services to DIMA in its management of the Real Estate Securities Trust. (3) "Standard & Poor's(R)," "S&P 500(R)," and "S&P MidCap 400(R)" are trademarks of The McGraw-Hill Companies, Inc. None of the Index Trusts are sponsored, endorsed, managed, advised, sold or promoted by any of these companies, and none of these companies make any representation regarding the advisability of investing in the Trust. As of February 29, 2008, the mid cap range for S&P 500(R) was from $744 million to $468.29 billion, and for the S&P MidCap 400(R), was $302 million to $11.13 billion. 4 Deutsche Asset Management Americas, Inc. provides subadvisory consulting services to MFC Global Investment Management (U.S.A.) Limited in its management of the Lifestyle Trusts. (5) "Russell 2000(R)" is a trademark of Frank Russell Company. None of the Index Trusts are sponsored, endorsed, managed, advised, sold or promoted by the Frank Russell Company, nor does Frank Russell Company make any representation regarding the advisability of investing in the Trust. As of February 29, 2008, the market capitalizations of companies included in the Russell 2000(R) Index ranged was from $25 million to $7.68 billion. (6) "Wilshire 5000(R)" is a trademark of Wilshire Associates. None of the Index Trusts are sponsored, endorsed, managed, advised, sold or promoted by Wilshire Associates, nor does Wilshire Associates make any representation regarding the advisability of investing in the Trust. As of February 29, 2008, the market capitalizations of companies included in the Dow Jones Wilshire 5000 ranged from $25 million to $468.29 billion. (7) "MSCI All Country World ex. U.S. IndexSM" is a service mark of Morgan Stanley Capital International Inc. and its affiliates ("MSCI"). None of the Index Trusts are sponsored, endorsed, managed, advised, sold or promoted by MSCI, nor does MSCI make any representation regarding the advisability of investing in the Trust. As of February 29, 2008, the market capitalization range of the Index was $56 million to $309 billion. (8) The Portfolio is subadvised by Templeton Global Advisors Limited under an agreement with Templeton Investment Counsel, LLC. (9) Not available to Contracts issued on or after January 28, 2002. 31 VOTING INTEREST You instruct us how to vote Portfolio shares. We will vote Portfolio shares held in a Separate Account at any Portfolio shareholder meeting in accordance with voting instructions received from the persons having the voting interest under the Contract. We will determine the number of Portfolio shares for which voting instructions may be given not more than 90 days prior to the meeting. We will arrange for proxy materials to be distributed to each person having the voting interest under the Contract together with appropriate forms for giving voting instructions. We will vote all Portfolio shares that we hold (including our own shares and those we hold in a Separate Account for Contract Owners) in proportion to the instructions so received. The effect of this proportional voting is that a small number of Contract Owners can determine the outcome of a vote. During the Accumulation Period, the Contract Owner has the voting interest under a Contract. We determine the number of votes for each Portfolio for which voting instructions may be given by dividing the value of the Investment Account corresponding to the Sub-Account in which such Portfolio shares are held by the net asset value per share of that Portfolio. During the Pay-out Period, the Annuitant has the voting interest under a Contract. We determine the number of votes as to each Portfolio for which voting instructions may be given by dividing the reserve for the Contract allocated to the Sub-Account in which such Portfolio shares are held by the net asset value per share of that Portfolio. Generally, the number of votes tends to decrease as annuity payments progress since the amount of reserves attributable to a Contract will usually decrease after commencement of annuity payments. We will determine the number of Portfolio shares for which voting instructions may be given not more than 90 days prior to the meeting. We reserve the right to make any changes in the voting rights described above that may be permitted by the federal securities laws, regulations, or interpretations thereof. 32 V. Description of the Contract ELIGIBLE PLANS Contracts may have been issued to fund Qualified Plans qualifying for special income tax treatment under the Code, such as individual retirement accounts and annuities, pension and profit-sharing plans for corporations and sole proprietorships/partnerships ("H.R. 10" and "Keogh" plans), tax-sheltered annuities, and state and local government deferred compensation plans (see "Qualified Plan Types"). The Contracts is also designed so that it may be used with Non-Qualified retirement plans, such as payroll savings plans and such other groups (with or without a trustee) as may be eligible under applicable law. Effective September 25, 2007, we ceased offering this Contract for use in a retirement plan intended to qualify as a Section 403(b) Qualified Plan subject to Title I of the Employee Retirement Income Security Act of 1974 (ERISA) unless, (a) we previously issued Contracts to that retirement plan and (b) the Purchase Payments to the new Contract were sent to us directly by your employer or the plan's administrator. We will not knowingly accept transfers from another existing annuity contract or other investment under a Section 403(b) Qualified Plan to a previously issued Contract used in a Section 403(b) Qualified Plan. We will require certain signed documentation in the event: - you purchased a Contract prior to September 25, 2007 that is intended to qualify under a Section 403(b) Qualified Plan; and - you direct us on or after September 25, 2007 to transfer some or all of your Contract Value to another annuity contract or other investment under a Section 403(b) Qualified Plan. In the event that we do not receive the required documentation, and you nonetheless direct us to proceed with the transfer, the transfer may be treated as a taxable transaction. ACCUMULATION PERIOD PROVISIONS We impose limits on the minimum amount of Additional Purchase Payments. Purchase Payments You make Purchase Payments to us at our Annuities Service Center. The minimum initial Purchase Payment was $10,000. Additional Purchase Payments must be at least $30. You may make Purchase Payments at any time. Purchase Payments must be in U.S. dollars. We may provide for Purchase Payments to be automatically withdrawn from your bank account on a periodic basis. If a Purchase Payment would cause your Contract Value to exceed $1 million or your Contract Value already exceeds $1 million we must grant our approval in order for you to make the Purchase Payment. John Hancock USA may have reduced or eliminated the minimum initial Purchase Payment requirement, upon your request and as permitted by state law, in the following circumstances: - You purchased your Contract through a 1035 exchange or a qualified plan transfer of an existing Contract(s) issued by another carrier(s) AND at the time of application, the value of your existing Contract(s) met or exceeded the applicable minimum initial Purchase Payment requirement AND prior to our receipt of such 1035 monies, the value dropped below the applicable minimum initial Purchase Payment requirement due to market conditions. - You purchased more than one new Contract and such Contracts cannot be combined AND the average initial Purchase Payments for these new Contracts was equal to or greater than $50,000; - You and your spouse each purchased at least one new Contract AND the average initial Purchase Payments for the new Contract(s) was equal to or greater than $50,000; or - You purchased multiple Contracts issued in conjunction with a written Retirement Savings Plan (either qualified and non-qualified), for the benefit of plan participants AND the Annuitant under each Contract was a plan participant AND the average initial Purchase Payment for these new Contracts was equal to or greater than $50,000. If permitted by state law, John Hancock USA may cancel a Contract at the end of any two consecutive Contract Years in which no Purchase Payments have been made, if both: - the total Purchase Payments made over the life of the Contract, less any withdrawals, are less than $2,000; and - the Contract Value at the end of such two year period is less than $2,000. Contracts issued by John Hancock New York may be cancelled at the end of any three consecutive Contract Years in which no Purchase Payments have been made as described above. As a matter of administrative practice, the respective Company will attempt to notify you prior to any such cancellation in order to allow you to make the necessary Purchase Payment to keep your Contract in force. The cancellation of Contract provisions may vary in certain states to comply with the requirements of insurance laws and regulations in such states. If we cancel your Contract, we will pay you the Contract Value computed as of the valuation period during which the cancellation occurs, minus the amount of any 33 Unpaid Loans. The amount paid will be treated as a withdrawal for federal tax purposes and thus may be subject to income tax and to a 10% penalty tax (see "VII. Federal Tax Matters"). You designate how your Purchase Payments are to be allocated among the Investment Options. You may change the allocation of Additional Purchase Payments at any time by notifying us in writing (or by telephone or electronically if you comply with our telephone or electronic transaction procedures described in "Telephone and Electronic Transactions" in this section, below). Accumulation Units During the Accumulation Period, we establish an Investment Account for you for each Variable Investment Option to which you allocate a portion of your Contract Value. We credit amounts to those Investment Accounts in the form of "accumulation units" to measure the value of the variable portion of your Contract during the Accumulation Period. We calculate and credit the number of accumulation units in each of your Investment Accounts by dividing (i) the amount allocated to that Investment Account by (ii) the value of an accumulation unit for that Investment Account we next compute after a purchase transaction is complete. We will usually credit initial Purchase Payments received by mail on the Business Day on which they are received at our Annuities Service Center, and no later than two Business Days after our receipt of all information necessary for issuing the Contract. We will inform you of any deficiencies preventing processing if your Contract cannot be issued. If the deficiencies are not remedied within five Business Days after receipt, we will return your Purchase Payment promptly, unless you specifically consent to our retaining your Purchase Payment until all necessary information is received. We will credit initial Purchase Payments received by wire transfer from broker-dealers on the Business Day received by us if the broker-dealers have made special arrangements with us. We will credit Additional Purchase Payments on the Business Day they are received at our Annuities Service Center. We will deduct accumulation units based on the value of an accumulation unit we next compute each time you make a withdrawal or transfer amounts from an Investment Option, and when we deduct certain Contract charges, pay death benefit proceeds, or apply amounts to an Annuity Option. We measure the value of an Investment Account in accumulation units, which vary in value with the performance of the underlying Portfolio. Value of Accumulation Units The value of your accumulation units will vary from one Business Day to the next depending upon the investment results of the Investment Options you select. We arbitrarily set the value of an accumulation unit for each Sub-Account on the first Business Day the Sub-Account was established. We determine the value of an accumulation unit for any subsequent Business Day by multiplying (i) the value of an accumulation unit for the immediately preceding Business Day by (ii) the "net investment factor" for that Sub-Account (described below) for the Business Day for which the value is being determined. We value accumulation units as of the end of each Business Day. We deem a Business Day to end, for these purposes, at the time a Portfolio determines the net asset value of its shares. We will use a Portfolio share's net asset value at the end of a Business Day to determine accumulation unit value for a Purchase Payment, withdrawal or transfer transaction only if: - your Purchase Payment transaction is complete before the close of the New York Stock Exchange (usually 4:00 p.m. Eastern time) for that Business Day, or - we receive your request for a withdrawal or transfer of Contract Value at the Annuities Service Center before the close of daytime trading of the New York Stock Exchange for that Business Day. Net Investment Factor The net investment factor is an index used to measure the investment performance of a Sub-Account from one Business Day to the next (the "valuation period"). The net investment factor may be greater or less than or equal to one; therefore, the value of an accumulation unit may increase, decrease or remain the same. The net investment factor for each Sub-Account for any valuation period is determined by dividing (a) by (b) and subtracting (c) from the result: Where (a) is: - the net asset value per share of a Portfolio share held in the Sub-Account determined at the end of the current valuation period, plus; - the per share amount of any dividend or capital gain distributions made by the Portfolio on shares held in the Sub-Account if the "ex-dividend" date occurs during the current valuation period. 34 Where (b) is the net asset value per share of a Portfolio share held in the Sub-Account determined as of the end of the immediately preceding valuation period. Where (c) is a factor representing the charges deducted from the Sub-Account on a daily basis for Separate Account annual expenses. Transfers Among Investment Options During the Accumulation Period, you may transfer amounts among the Variable Investment Options and from those Investment Options to the Fixed Investment Options, subject to the restrictions set forth below. You may make a transfer by providing written notice to us, by telephone or by other electronic means that we may provide through the internet (see "Telephone and Electronic Transactions"). We will cancel accumulation units from the Investment Account from which you transfer amounts and we will credit to the Investment Account to which you transfer amounts. Your Contract Value on the date of the transfer will not be affected by a transfer. You must transfer at least $300 or, if less, the entire value of the Investment Account. If after the transfer the amount remaining in the Investment Account is less than $100, then we may transfer the entire amount instead of the requested amount. Currently, we do not impose a charge for transfer requests. The first twelve transfers in a Contract Year are free of any transfer charge. For each additional transfer in a Contract Year, we do not currently assess a charge but reserve the right (to the extent permitted by your Contract) to assess a reasonable charge (not to exceed the lesser of $25 or 2% of the amount transferred) to reimburse us for the expenses of processing transfers. Investment options in variable annuity and variable life insurance products can be a prime target for abusive transfer activity because these products value their Investment Options on a daily basis and allow transfers among Investment Options without immediate tax consequences. As a result, some investors may seek to frequently transfer into and out of variable investment options in reaction to market news or to exploit some perceived pricing inefficiency. Whatever the reason, frequent transfer activity can harm long-term investors in a variable investment option since such activity may expose a variable investment option's underlying portfolio to increased portfolio transaction costs and/or disrupt the portfolio manager's ability to effectively manage a portfolio in accordance with its investment objective and policies, both of which may result in dilution with respect to interests held for long-term investment. We have adopted a policy and procedures to restrict frequent transfers of Contract Value among Variable Investment Options. To discourage disruptive frequent trading activity, we have adopted a policy for each Separate Account to restrict transfers to two per calendar month per Contract, with certain exceptions, and procedures to count the number of transfers made under a Contract. Under the current procedures of the Separate Accounts, we count all transfers made during each Business Day that the net asset value of the shares of a Portfolio are determined ending at the close of day-time trading of the New York Stock Exchange (usually 4 p.m.) as a SINGLE transfer. We do NOT count: (a) scheduled transfers made pursuant to our Dollar Cost Averaging program or our Asset Rebalancing Program, (b) transfers from a Fixed Investment Option at the end of its guarantee period, (c) transfers made within a prescribed period before and after a substitution of underlying Portfolios and (d) transfers made during the Pay-out Period (these transfers are subject to a 30-day notice requirement, however, as described in the "Transfers During Pay-out Period" section of this Prospectus). Under each Separate Account's policy and procedures, Contract Owners may transfer to a Money Market Investment Option even if a Contract Owner reaches the two transfer per month limit if 100% of the Contract Value in all Variable Investment Options is transferred to that Money Market Investment Option. If such a transfer to a Money Market Investment Option is made, for a 30-calendar day period after such transfer, a Contract Owner may not make any subsequent transfers from that Money Market Investment Option to another variable investment option. We apply each Separate Account's policy and procedures uniformly to all Contract Owners. We reserve the right to take other actions to restrict trading, including, but not limited to: - restricting the number of transfers made during a defined period; - restricting the dollar amount of transfers; - restricting the method used to submit transfers (e.g., requiring transfer requests to be submitted in writing via U.S. mail); and - restricting transfers into and out of certain Sub-Account(s). In addition, we reserve the right to defer a transfer at any time we are unable to purchase or redeem shares of the Portfolios (see "Withdrawals" in this section, below, for details on what suspensions of redemptions may be permissible). We also reserve the right to modify or terminate the transfer privilege at any time (to the extent permitted by applicable law). While we seek to identify and prevent disruptive frequent trading activity, it is not always possible to do so. Therefore, we cannot provide assurance that the restrictions we impose will be successful in restricting disruptive frequent trading activity and avoiding harm to long-term investors. In addition to the transfer restrictions that we impose, the John Hancock Trust, BlackRock Variable Series Funds, Inc. and PIMCO Variable 35 Insurance Trust also have adopted policies under Rule 22c-2 of the 1940 Act to detect and deter abusive short term trading. Accordingly, a Portfolio may require us to impose trading restrictions if it discovers violations of its frequent short-term trading policy. We will provide tax identification numbers and other Contract Owner transaction information to a Portfolio upon request, which it may use to identify any pattern or frequency of activity that violates its short-term trading policy. Maximum Number of Investment Options There is no limit on the number of Investment Options to which you may allocate Purchase Payments (except under a Rider - see Appendix D "Optional Guaranteed Minimum Withdrawal Benefits"). We permit you to make certain types of transactions by telephone or electronically through the internet. Telephone and Electronic Transactions We will automatically permit you to request transfers and withdrawals by telephone. We will also permit you to access information about your Contract, request transfers and perform some transactions (other than withdrawals) electronically through the internet. You can contact us at the respective telephone number or internet address shown on page ii of this Prospectus. To access information and perform electronic transactions through our website, you will be required to create an account with a username and password, and maintain a valid e-mail address. You may also authorize other people to make certain transaction requests by telephone or electronically through the internet by sending us instructions in a form acceptable to us. We will not be liable for following instructions communicated by telephone or electronically that we reasonably believe to be genuine. We will employ reasonable procedures to confirm that instructions we receive are genuine. Our procedures require you to provide information to verify your identity when you call us and we will record all conversations with you. When someone contacts us by telephone and follows our procedures, we will assume that you are authorizing us to act upon those instructions. For electronic transactions through the internet, you will need to provide your username and password. You are responsible for keeping your password confidential and must notify us of: - any loss or theft of your password; or - any unauthorized use of your password. We may only be liable for any losses due to unauthorized or fraudulent instructions where we fail to employ our procedures properly. All transaction instructions we receive by telephone or electronically will be followed by a confirmation statement of the transaction. Transaction instructions we receive by telephone or electronically before the close of any Business Day, will usually be effective at the end of that day. Your ability to access or transact business electronically may be limited due to circumstances beyond our control, such as system outages, or during periods when our telephone lines or our website may be busy. We may, for example, experience unusual volume during periods of substantial market change. We may suspend, modify or terminate our telephone or electronic transaction procedures at any time. We may, for example, impose limits on the maximum withdrawal amount available to you through a telephone transaction. Also, as stated earlier in this Prospectus, we have imposed restrictions on transfers and reserve the right to take other actions to restrict trading, including the right to restrict the method used to submit transfers (e.g., by requiring transfer requests to be submitted in writing via U.S. mail). We also reserve the right to suspend or terminate the transfer privilege altogether with respect to anyone who we feel is abusing the privilege to the detriment of others. We make available Dollar Cost Averaging and Asset Rebalancing Programs. Special Transfer Services -Dollar Cost Averaging Program We administer a Dollar Cost Averaging ("DCA") Program. If you enter into a DCA agreement, you may instruct us to transfer monthly a predetermined dollar amount from any Variable Investment Option, or from a Fixed Investment Option we permit for this purpose to other Variable Investment Options until the amount in the Investment Option from which the transfer is made is exhausted. You may establish a DCA Fixed Investment Option under the DCA Program to make automatic transfers. You may allocate only Purchase Payments (and not existing Contract Values) to the DCA Fixed Investment Option. If you elect the DCA Fixed Investment Option, we will credit the amounts allocated to this option with interest at the guaranteed interest rate in effect on the date of such allocation. From time to time, we may offer special DCA Programs where the rate of interest credited to a Fixed Investment Option exceeds our actual earnings on the supporting assets, less appropriate risk and expense adjustments. In such case, we will recover any amounts we credit to your account in excess of amounts earned by us on the assets in the General Account from existing charges described in your Contract. Your Contract charges will not increase as a result of electing to participate in any special DCA Program. The DCA Program is generally suitable if you are making a substantial deposit and desire to control the risk of investing at the top of a market cycle. The DCA Program allows investments to be made in equal installments over time in an effort to reduce that risk. Therefore, you may achieve a lower purchase price over the long-term by purchasing more accumulation units of a particular Sub-Account when the unit value is low; less when the unit value is high. However, the DCA Program does not guarantee profits or 36 prevent losses in a declining market and requires regular investment regardless of fluctuating price levels. Contract Owners interested in the DCA Program should consider their financial ability to continue purchases through periods of low price levels. If you are interested in the DCA Program, you may elect to participate in the program on the appropriate application or you may obtain a separate authorization form and full information concerning the program and its restrictions from your registered representative or our Annuities Service Center. There is no charge for participation in the DCA Program. Special Transfer Services - Asset Rebalancing Program We administer an Asset Rebalancing Program which enables you to specify the percentage levels you would like to maintain in particular Portfolios. We will automatically rebalance your Contract Value pursuant to the schedule described below to maintain the indicated percentages by transfers among the Portfolios. (Fixed Investment Options are not eligible for participation in the Asset Rebalancing Program.) You must include your entire value in the Variable Investment Options in the Asset Rebalancing Program. Other investment programs, such as the DCA Program, or other transfers or withdrawals may not work in concert with the Asset Rebalancing Program. Therefore, you should monitor your use of these other programs and any other transfers or withdrawals while the Asset Rebalancing Program is being used. If you are interested in the Asset Rebalancing Program, you may obtain a separate authorization form and full information concerning the program and its restrictions from your registered representative or our Annuities Service Center. There is no charge for participation in the Asset Rebalancing Program. We will permit asset rebalancing only on the following time schedules: - quarterly on the 25th day of the last month of the calendar quarter (or the next Business Day if the 25th is not a Business Day); - semi-annually on June 25th and December 26th (or the next Business Day if these dates are not Business Days); or - annually on December 26th (or the next Business Day if December 26th is not a Business Day). You may withdraw all or a portion of your Contract Value, but may incur withdrawal charges or tax liability as a result. Withdrawals During the Accumulation Period, you may withdraw all or a portion of your Contract Value upon written request (complete with all necessary information) to our Annuities Service Center. You may make withdrawals by telephone as described above under "Telephone and Electronic Transactions." For certain Qualified Contracts, exercise of the withdrawal right may require the consent of the Qualified Plan participant's spouse under the Code. In the case of a total withdrawal, we will pay the Contract Value as of the date of receipt of the request at our Annuities Service Center, minus any Unpaid Loans and any applicable withdrawal charge, Rider charge, administrative fee or tax. We will then cancel the Contract. In the case of a partial withdrawal, we will pay the amount requested and cancel accumulation units credited to each Investment Account equal in value to the amount withdrawn from that Investment Account plus any applicable withdrawal charge deducted from that Investment Account. When making a partial withdrawal, you should specify the Investment Options from which the withdrawal is to be made. The amount requested from an Investment Option may not exceed the value of that Investment Option minus any applicable withdrawal charge. If you do not specify the Investment Options from which a partial withdrawal is to be taken, the withdrawal will be taken from the Variable Investment Options until exhausted and then from the Fixed Investment Option, beginning with the shortest remaining guarantee period first and ending with the longest remaining guarantee period last. If the partial withdrawal is less than the total value in the Variable Investment Options, the withdrawal will be taken proportionately from all of your Variable Investment Options. For rules governing the order and manner of withdrawals from the Fixed Investment Option, see "Fixed Investment Options." There is no limit on the frequency of partial withdrawals; however, the amount withdrawn must be at least $300 or, if less, the entire balance in the Investment Option. If after the withdrawal (and deduction of any withdrawal charge) the amount remaining in the Investment Option is less than $100, we reserve the right to treat the partial withdrawal as a withdrawal of the entire amount held in the Investment Option. If a partial withdrawal plus any applicable withdrawal charge would reduce the Contract Value to less than $300, we may treat the partial withdrawal as a total withdrawal of the Contract Value. We will pay the amount of any withdrawal from the Variable Investment Options promptly, and in any event within seven days of receipt of the request, complete with all necessary information at our Annuities Service Center, except that we reserve the right to defer the right of withdrawal or postpone payments for any period when: - the New York Stock Exchange is closed (other than customary weekend and holiday closings); - trading on the New York Stock Exchange is restricted; - an emergency exists, as determined by the SEC, in which disposal of securities held in the Separate Account is not reasonably practicable or it is not reasonably practicable to determine the value of the Separate Account's net assets; or - the SEC, by order, so permits for the protection of security holders; provided that applicable rules and regulations of the SEC shall govern as to whether trading is restricted or an emergency exists. IMPACT OF DIVORCE. In the event that you and your spouse become divorced after you purchase a Contract, we will consider any request to reduce or divide benefits under a Contract as a request for a withdrawal of Contract Value. The transaction may be subject 37 to any applicable tax, or withdrawal charge. Also, for Contracts issued with an optional minimum guaranteed withdrawal benefit Rider, your guarantee may be Reset (see "Appendix D: Optional Guaranteed Minimum Withdrawal Benefits"). If you determine to divide a Contract with an optional benefit Rider, we will permit you to continue the existing Rider under one, but not both, resulting Contracts. We will also permit the owner of the new Contract to purchase any optional benefit rider then available. TAX CONSIDERATIONS. Withdrawals from the Contract may be subject to income tax and a 10% IRS penalty tax (see "VII. Federal Tax Matters"). Withdrawals are permitted from Contracts issued in connection with Section 403(b) Qualified Plans only under limited circumstances (see Appendix B: "Qualified Plan Types"). You may make Systematic "Income Plan" withdrawals. Special Withdrawal Services - The Income Plan We administer an Income Plan ("IP") which permits you to pre-authorize a periodic exercise of the contractual withdrawal rights described above. After entering into an IP agreement, you may instruct us to withdraw a level dollar amount from specified Investment Options on a periodic basis. We limit the total of IP withdrawals in a Contract Year to not more than 10% of the Purchase Payments made (to ensure that no withdrawal charge will ever apply to an IP withdrawal). If additional withdrawals, outside the IP program, are taken from a Contract in the same Contract Year in which an IP program is in effect, IP withdrawals taken after the free withdrawal amount has been exceeded are subject to a withdrawal charge. The IP is not available to Contracts for which Purchase Payments are being automatically deducted from a bank account on a periodic basis. IP withdrawals, like other withdrawals, may be subject to income tax and a 10% IRS penalty tax. If you are interested in an IP, you may obtain a separate authorization form and full information concerning the program and its restrictions from your registered representative or our Annuities Service Center. We do not charge a fee to participate in the IP program. Optional Guaranteed Minimum Withdrawal Benefits Please see Appendix D "Optional Guaranteed Minimum Withdrawal Benefits" for a general description of the Income Plus for Life, Income Plus for Life - Joint Life, Principal Plus, Principal Plus for Life, Principal Plus for Life Plus Automatic Annual Step-up, Principal Plus for Life Plus Spousal Protection, and Principal Returns optional benefit Riders that may provide guaranteed withdrawal benefits under the Contract you purchased. Under the Principal Plus for Life and Principal Plus Riders, we guarantee that you may withdraw a percentage of your investment each year until you recover your initial Purchase Payment(s), even if your Contract Value reduces to zero. We will increase the amounts we guarantee by a Bonus if you choose not to make any withdrawals at all during certain Contract Years. Depending on market performance, you may also be able to increase or "Step-up" the amounts we guarantee on certain dates. If you withdraw more than a guaranteed annual amount, however, we will reduce the amounts we guarantee for future withdrawals. If you die during the Accumulation Period, your Beneficiary will receive a death benefit that might exceed your Contract Value. Death Benefit During the Accumulation Period The Contracts described in this Prospectus provide for distribution of a death benefit if the Owner dies before the Annuity Commencement Date. In addition, you may have purchased a Contract with an optional death benefit Rider that will enhance the amount of death benefit. You should read your Contract carefully to determine the minimum death benefit and any enhanced death benefit payable during the Accumulation Period. AMOUNT OF DEATH BENEFIT. The death benefit under the Contracts is the greater of: - the Contract Value; or - the Minimum Death Benefit. We will decrease the death benefit by the amount of any Debt under a Contract (including any unpaid interest), and adjust the death benefit if you make withdrawals. We will increase the death benefit by any enhanced death benefit Riders that you may have purchased (see Appendix C: "Optional Enhanced Death Benefits"). MINIMUM DEATH BENEFIT. We determine the Minimum Death Benefit as follows: Minimum Death Benefit equals the total amount of Purchase Payments, less any amounts deducted in connection with partial withdrawals. We reduce the minimum death benefit proportionally in connection with partial withdrawals. The amount deducted equals the death benefit under your Contract before the withdrawal times the ratio of the partial withdrawal amount divided by your Contract Value before the withdrawal. We may reset the minimum death benefit to equal the Contract Value on the date you substitute or add any Contract Owner. For purposes of subsequent calculations of the death benefit prior to the Maturity Date, the Contract Value on the date of the change will be treated as a payment made on that date. This treatment of Contract Value as a payment is not included in cumulative Purchase Payments. In addition, all payments made and all amounts deducted in connection with partial withdrawals prior to the date of the change will not be considered in the determination of the death benefit. No such change in death benefit will be made if the person whose death will cause the death benefit to be paid is the same after the change in ownership or if ownership is transferred to the Owner's spouse. 38 DETERMINATION OF DEATH BENEFIT. We determine the death benefit on the date we receive written notice and "proof of death" as well as all required claims forms from all Beneficiaries at the applicable Annuities Service Center. No one is entitled to the death benefit until this time. Proof of death occurs when we receive one of the following at our Annuities Service Center: - a certified copy of a death certificate or; - a certified copy of a decree of a court of competent jurisdiction as to the finding of death; or - any other proof satisfactory to us. If any Owner is not a natural person, the death of any Annuitant will be treated as the death of an Owner. On the death of the last surviving Annuitant, the Owner, if a natural person, will become the Annuitant unless the Owner designates another person as the Annuitant. DISTRIBUTION OF DEATH BENEFITS. The following discussion applies principally to distribution of death benefits upon the death of an Owner under Contracts that are not issued in connection with Qualified Plans, i.e., "Non-Qualified Contracts." Tax law requirements applicable to Qualified Plans, including IRAs, and the tax treatment of amounts held and distributed under such plans, are quite complex. Accordingly, if your Contract is used in connection with a Qualified Plan, you should seek competent legal and tax advice regarding requirements governing the distribution of benefits, including death benefits, under the plan. In particular, if you intend to use the Contract in connection with a Qualified Plan, including an IRA, you and your tax advisor should consider that there is some uncertainty as to the income tax effects of the death benefit on Qualified Plans, including IRAs (see "VII. Federal Tax Matters" and Appendix B: "Qualified Plan Types"). In designating Beneficiaries you may impose restrictions on the timing and manner of payment of death benefits. The description of death benefits in this Prospectus does not reflect any of the restrictions that could be imposed, and it should be understood as describing what will happen if the Contract Owner chooses not to restrict death benefits under the Contract. If the Contract Owner imposes restrictions, those restrictions will govern payment of the death benefit. We will pay the death benefit to the Beneficiary if any Contract Owner dies before the earlier of the Maturity Date or the Annuity Commencement Date. If there is a surviving Contract Owner, that Contract Owner will be deemed to be the Beneficiary. No death benefit is payable on the death of any Annuitant, except that if any Owner is not a natural person, the death of any Annuitant will be treated as the death of an Owner. On the death of the last surviving Annuitant, the Owner, if a natural person, will become the Annuitant unless the Owner designates another person as the Annuitant. Upon request the death benefit proceeds may be taken in the form of a lump sum. In that case, we will the pay death benefits within seven calendar days of the date that we determine the amount of the death benefit, subject to postponement under the same circumstances that payment of withdrawals may be postponed (see "Withdrawals" above). Beneficiaries who opt for a lump sum payout of their portion of the death benefit will receive the funds in a John Hancock Safe Access Account (JHSAA). Similar to a checking account, the JHSAA provides the beneficiary access to the payout funds via a checkbook, and account funds earn interest at a variable interest rate. The Beneficiary can obtain the remaining death benefit proceeds in a single sum by cashing one check for the entire amount. Note, however, that a JHSAA is not a true checking account as the beneficiary cannot make deposits. It is solely a means of distributing the death benefit, so the beneficiary can only make withdrawals. The JHSAA is part of our general account; it is not a bank account and it is not insured by the FDIC or any other government agency. As part of our general account, it is subject to the claims of our creditors. We receive a benefit from all amounts left in the JHSAA. If the Beneficiary does not choose a form of payment, or the death benefit payable upon the death of an Owner is not taken as a lump sum under our current administrative procedures, the Contract will continue subject to the following: - The Beneficiary will become the Contract Owner. - We will allocate any excess of the death benefit over the Contract Value to the Owner's Investment Accounts in proportion to their relative values on the date of receipt by us of due proof of the Owner's death. - No Additional Purchase Payments may be made. - Withdrawal charges will be waived for all future distributions. - If the deceased Owner's spouse is the Beneficiary, the surviving spouse continues the Contract as the new Owner. In this case, the distribution rules applicable when a Contract Owner dies will apply when the spouse, as the Owner, dies. In addition, a death benefit will be paid upon the death of the spouse. For purposes of calculating the death benefit payable upon the death of the spouse (excluding any optional benefits), we will treat the death benefit paid upon the first Owner's death as a Purchase Payment to the Contract. In addition, all payments made and all amounts deducted in connection with partial withdrawals prior to the date of the first Owner's death will not be considered in the determination of the spouse's death benefit. - If the Beneficiary is not the deceased Owner's spouse, distribution of the Owner's entire interest in the Contract must be made within five years of the Owner's death, or alternatively, distribution may be made as an annuity, under one of the Annuity Options described below, which must begin within one year of the Owner's death and is payable over the life of the Beneficiary or over a period not extending beyond the life expectancy of the Beneficiary (see "Annuity Options" below). If the distribution is not made within five years and the Beneficiary has not specified one of the above forms of payment, we will distribute a lump sum cash payment of the Beneficiary's portion of the death benefit. Also, if 39 distribution is not made as an annuity, upon the death of the Beneficiary, the death benefit will equal the Contract Value and must be distributed immediately in a single sum cash payment. - Alternatively, if the Contract is not a Qualified Contract and if the Beneficiary is not the deceased Owner's spouse, distribution of the Owner's entire interest in the Contract may be made as a series of withdrawals over the Beneficiary's life expectancy. If this form of distribution is selected, the Beneficiary may not reduce or stop the withdrawals but may in any year withdraw more than the required amount for that year. If life expectancy withdrawals have been selected and the initial Beneficiary dies while value remains in the Contract, a successor Beneficiary may either take a lump sum distribution of the remaining balance or continue periodic withdrawals according to the original schedule based on the initial Beneficiary's life expectancy. We may change the way we calculate the death benefit if you substitute or add any Contract Owner. If we do, the new death benefit will equal the Contract Value as of the date of the ownership change. We will also treat the Contract Value on the date of the change as a "Purchase Payment" made on that date for any subsequent calculations on the death benefit prior to the Maturity Date, and we will not consider any Purchase Payments made and any amounts deducted in connection with partial withdrawals prior to the date of the ownership change in our determination of the death benefit. We will not change the way we calculate the death benefit if the person whose death will cause the death benefit to be paid is the same after the ownership change or if you transfer ownership to the Owner's spouse. A change of Contract Owner may be a taxable event if the Owner or co-Owner before the change is an individual and the new Owner or co-Owner is not a spouse of the previous Owner (or co-Owner). You should consult with a qualified tax advisor for further information relevant to your situation. Optional Enhanced Death Benefits Please see Appendix C: "Optional Enhanced Death Benefits" for a general description of the following optional benefit Riders that may enhance death benefits under the Contract you purchased: - GUARANTEED EARNINGS MULTIPLIER DEATH BENEFIT. (Not available in New York and Washington) John Hancock USA offered the Guaranteed Earnings Multiplier Death Benefit Rider between July 2001and May 2006, subject to state availability. Under the Guaranteed Earnings Multiplier Rider, John Hancock USA guarantees that upon the death of any Contract Owner prior to the Maturity Date, John Hancock USA will increase the death benefit otherwise payable under the Contract by a percentage of earnings, up to a maximum amount. Under Guaranteed Earnings Multiplier, John Hancock USA increases the death benefit by 40% of the appreciation in the Contract Value upon the death of any Contract Owner if you (and every joint Owner) were less than 70 years old when we issued a Contract, and by 25% of the appreciation in the Contract Value if you (or any joint Owner) were 70 or older at issue. John Hancock USA reduces the "appreciation in the Contract Value" proportionally in connection with partial withdrawals of Contract Value and, in the case of certain Qualified Contracts, by the amount of any Unpaid Loans under a Contract. Guaranteed Earnings Multiplier is available only at Contract issue and cannot be revoked once elected. - TRIPLE PROTECTION DEATH BENEFIT. (Not available in New York and Washington) John Hancock USA offered the Triple Protection Death Benefit Rider between December 2003 and December 2004. Triple Protection Death Benefit provides a guaranteed death benefit amount which can be increased or decreased as provided in the Rider. The Triple Protection Death Benefit replaces any other death benefit under the Contract. The Triple Protection Death Benefit Rider was available only at Contract issue. It cannot be revoked if you elected it. Once Triple Protection Death Benefit is elected, the Owner may only be changed to an individual who is the same age or younger than the oldest current Owner. - ANNUAL STEP DEATH BENEFIT. Under the Annual Step Death Benefit Rider, John Hancock USA and John Hancock New York guarantee a minimum death benefit up to the Maturity Date based on the Contract's highest "Anniversary Value" that may be achieved before you (or any joint owner) reach 81 years old. The Annual Step Death benefit was available only at Contract issue and only if you (and every joint Owner) were under age 80 when we issued the Contract. The Rider cannot be revoked once elected. PAY-OUT PERIOD PROVISIONS You have a choice of several different ways of receiving annuity payments from us. General Generally, the Contracts contain provisions for the commencement of annuity payments to the Annuitant up to the Contract's Maturity Date (the "Annuity Commencement Date" is the first day of the Pay-out Period). The Maturity Date is the date specified on your Contract's specifications page, unless you obtain our consent to change that date. For John Hancock USA Contracts, there is no limit on when the earliest Annuity Commencement Date may be set. For John Hancock New York Contracts, the earliest allowable Annuity Commencement Date is one year from the Contract Date. If no date is specified, the Annuity Commencement Date is the first day of the month following the later of the 90th birthday of the oldest Annuitant or the tenth Contract Anniversary. The Annuity Commencement Date may be changed at any time before annuity payments begin. The new Annuity Commencement Date may not be later than the Maturity Date specified in the Contract or a later date if we consent to the change. Annuity Commencement and Maturity Dates which occur when the Annuitant is at an advanced age, e.g., past 40 age 90, may have adverse income tax consequences (see "VII. Federal Tax Matters"). Distributions may be required from Qualified Contracts before the Maturity Date. A Contract issued in New York by John Hancock New York has as its Maturity Date the date the oldest Annuitant obtains age 90, unless the Contract's specifications page states otherwise or you later change the date. When John Hancock USA issues a Contract outside New York: - the Maturity Date for Contracts issued prior to May 1, 2006 is the first day of the month following the later of the 85th birthday of the oldest Annuitant or the tenth Contract Anniversary; and - the Maturity Date for Contracts issued on and after May 1, 2006 is the first of the month following of the 95th birthday of the oldest Annuitant or, in some cases, the tenth Contract Anniversary, if later, unless the Contract's specifications page states otherwise or you later change the date. You should review your Contract carefully to determine the Maturity Date applicable to your Contract. You may select the frequency of annuity payments. However, if the Contract Value at the Annuity Commencement is such that a monthly payment would be less than $20, we may pay the Contract Value, minus any Unpaid Loans, in one lump sum to the Annuitant on the Annuity Commencement Date. Annuity Options Annuity payments are available under the Contract on a fixed, variable, or combination fixed and variable basis. Upon purchase of the Contract, and at any time during the Accumulation Period, you may select one or more of the Annuity Options described below on a fixed and/or variable basis or choose an alternate form of payment acceptable to us. If an Annuity Option is not selected, we will provide as a default, an Annuity Option in the form of a life annuity with payments guaranteed for ten years, as described below. We will provide either variable or fixed, or a combination variable and fixed, annuity payments at the Annuity Commencement Date. We will determine annuity payments based on the Investment Account Value of each Investment Option on that date. Treasury Department regulations may preclude the availability of certain Annuity Options in connection with certain Qualified Contracts. Once annuity payments commence: - you will no longer be permitted to make any withdrawals under the Contract; - you will no longer be permitted to make or receive any withdrawals under a guaranteed minimum withdrawal benefit Rider; - we may not change the Annuity Option or the form of settlement; and - your Guaranteed Minimum Death Benefits will terminate. Please read the description of each Annuity Option carefully. In general, a non-refund life annuity provides the highest level of payments. However, because there is no guarantee that any minimum number of payments will be made, an Annuitant may receive only one payment if the Annuitant dies prior to the date the second payment is due. You may also elect annuities with payments guaranteed for a certain number of years but the amount of each payment will be lower than that available under the non-refund life Annuity Option. ANNUITY OPTIONS OFFERED IN THE CONTRACT. The Contracts guarantee the availability of the following Annuity Options: Option 1(a): Non-Refund Life Annuity - An annuity with payments during the lifetime of the Annuitant. No payments are due after the death of the Annuitant. Because we do not guarantee that we will make any minimum number of payments, an Annuitant may receive only one payment if the Annuitant dies prior to the date the second payment is due. Option 1(b): Life Annuity with Payments Guaranteed for 10 Years - An annuity with payments guaranteed for 10 years and continuing thereafter during the lifetime of the Annuitant. Because we guarantee payments for 10 years, we will make annuity payments to the end of such period if the Annuitant dies prior to the end of the tenth year. Option 2(a): Joint & Survivor Non-Refund Life Annuity - An annuity with payments during the lifetimes of the Annuitant and a designated co-Annuitant. No payments are due after the death of the last survivor of the Annuitant and co-Annuitant. Because we do not guarantee that we will make any minimum number of payments, an Annuitant or co-Annuitant may receive only one payment if the Annuitant and co-Annuitant die prior to the date the second payment is due. Option 2(b): Joint & Survivor Life Annuity with Payments Guaranteed for 10 Years - - An annuity with payments guaranteed for 10 years and continuing thereafter during the lifetimes of the Annuitant and a designated co-Annuitant. Because we guarantee payments for 10 years, we will make annuity payments to the end of such period if both the Annuitant and the co-Annuitant die prior to the end of the tenth year. 41 ADDITIONAL ANNUITY OPTIONS. We currently offer the following Annuity Options which are in addition to the ones we are contractually obligated to make available. We may cease offering the following Annuity Options at any time and may offer other Annuity Options in the future. Option 3: Life Annuity with Payments Guaranteed for 5, 15 or 20 Years - An annuity with payments guaranteed for 5, 15 or 20 years and continuing thereafter during the lifetime of the Annuitant. Because we guarantee payments for the specific number of years, we make annuity payments to the end of the last year of the 5, 15 or 20 year period. Option 4: Lifetime Annuity with Cash Refund - An annuity with payments during the lifetime of the Annuitant. After the death of the Annuitant, we will pay the Beneficiary a lump sum amount equal to the excess, if any, of the Contract Value at the election of this option over the sum of the annuity payments made under this option. Option 5: Joint Life Annuity with Payments Guaranteed for 20 Years - An annuity with payments guaranteed for 20 years and continuing thereafter during the lifetime of the Annuitant and a designated co-Annuitant. Because we guarantee payments for the specific number of years, we make annuity payments to the end of the last year of the 20 year period if both the Annuitant and the co-Annuitant die during the 20 year period. Option 6: Joint & Two-Thirds Survivor Non-Refund Life Annuity - An annuity with full payments during the joint lifetime of the Annuitant and a designated co-Annuitant and two-thirds payments during the lifetime of the survivor. Because we do not guarantee that we will make any minimum number of payments, an Annuitant or co-Annuitant may receive only one payment if the Annuitant and co-Annuitant die prior to the date the second payment is due. Option 7: Period Certain Only Annuity for 10, 15 or 20 Years - An annuity with payments for a 10, 15 or 20 year period and no payments thereafter. You may surrender all or part of your Contract for its 'Commuted Value' after the Pay-out Period has begun only if you select a variable pay-out under this Option. (See "Full Surrenders During the Pay-out Period" and "Partial Surrenders During the Pay-out Period" below.) ADDITIONAL ANNUITY OPTIONS FOR CONTRACTS WITH A GUARANTEED MINIMUM WITHDRAWAL BENEFIT RIDER. We may make one or more additional Annuity Options available if you purchased a Contract with one of our guaranteed minimum withdrawal benefit Riders (i.e., an Income Plus for Life, Income Plus for Life - Joint Life, a Principal Plus, Principal Plus for Life, Principal Plus for Life Plus Spousal Protection, a Principal Plus for Life Plus Automatic Annual Step-up or Principal Returns optional benefit Rider, as described in "Appendix D: Optional Guaranteed Minimum Withdrawal Benefits"). If you purchased a Contract with a guaranteed minimum withdrawal benefit Rider, you may select the additional Annuity Options shown below. Unless we permit otherwise, these additional Annuity Options are only available for Maturity Dates that coincide with the first day of the month following the later of the 90th birthday of the oldest Annuitant or the tenth Contract Anniversary. GMWB Alternate Annuity Option 1: Lifetime Income Amount with Cash Refund - This Annuity Option is available if you purchased a Contract with the Income Plus for Life or an Income Plus for Life - Joint Life Rider. For the Income Plus for Life - - Joint Life Rider, this Annuity Option is available only if one Covered Person (see "Income Plus for Life Series Guaranteed Minimum Withdrawal Benefit Rider Definitions" in Appendix D), not two, remains on the Rider at the Annuity Commencement Date. Under this option, we will make annuity payments during the lifetime of the Annuitant. After the death of the Annuitant, we will pay the Beneficiary a lump sum amount equal to the excess, if any, of the Contract Value at the election of this option over the sum of the annuity payments made under this option. The annual amount of the annuity payments will equal the greater of: - the Lifetime Income Amount on the Annuity Commencement Date, if any, as provided by the guaranteed minimum withdrawal benefit Rider that you purchased with your Contract; or - the annual amount that the proceeds of your Contract provides on a guaranteed basis under a life with cash refund annuity. (Unlike Option 1(b), however, we will not continue making payments for the remainder of the 10 year term upon the death of the Annuitant. Instead, we will pay a lump sum amount of the excess Contract Value, if any, described above.) GMWB Alternate Annuity Option 2: Joint & Survivor Lifetime Income Amount with Cash Refund - This Annuity Option is available if you purchased a Contract with the Income Plus for Life - Joint Life Rider and both Covered Persons remain on the Rider at the Annuity Commencement Date. Under this option, we will make annuity payments during the joint lifetime of the co-Annuitants. After the death of the last surviving Annuitant, we will pay the Beneficiary a lump sum amount equal to the excess, if any, of the Contract Value at the election of this option over the sum of the annuity payments made under this option. The annual amount of the annuity payments will equal the greater of: - the Lifetime Income Amount on the Annuity Commencement Date, if any, as provided by the guaranteed minimum withdrawal benefit Rider that you purchased with your Contract; or - the annual amount that the proceeds of your Contract provides on a guaranteed basis under a joint life with cash refund annuity. (Unlike Option 2(b), however, we will not continue making payments for the remainder of the 10 year term upon the death of the last surviving Annuitant. Instead, we will pay a lump sum amount of the excess Contract Value, if any, described above.) 42 GMWB Alternate Annuity Option 3: - Fixed Annuity with Period Certain - This Annuity Option is available if you purchased a Contract with the Principal Plus for Life, a Principal Plus for Life Plus Automatic Annual Step-up or Principal Returns optional benefit Rider. If you purchased a Contract with a Principal Plus for Life Plus Spousal Protection Rider, this Annuity Option is available only if one Covered Person, not two, remains under the Rider at the Annuity Commencement Date. This option provides an annuity with payments guaranteed for a certain period and continuing thereafter during the lifetime of a single Annuitant. We determine the certain period by dividing the Guaranteed Withdrawal Balance at the Annuity Commencement Date by the amount of the annual annuity benefit payment we determine for this option. This period will be rounded to the next higher month. We determine the annual amount of Fixed Annuity payments under this option as the greater of: - the Lifetime Income Amount on the Maturity Date, if any, as provided by the guaranteed minimum withdrawal benefit rider that you purchased with your Contract, or - the annual amount that the proceeds of your Contract provides on a guaranteed basis under Annuity Option 1(a): Non-Refund Life Annuity. GMWB Alternate Annuity Option 4: Spousal LIA Fixed Annuity with Period Certain - This Annuity Option is available if you purchase a Contract with the Principal Plus for Life Plus Spousal Protection Rider, and both Covered Persons remain under the Rider at the Annuity Commencement Date. This option provides an annuity with payments guaranteed for a certain period and continuing thereafter during the lifetimes of the Annuitant and co-Annuitant. If you elect this option, we will make payments for a certain period and after that during the joint lifetime of the Annuitant and Co-Annuitant. Payments will then continue during the remaining lifetime of the survivor. No payments are due after the death of the last surviving Annuitant or, if later, the end of the certain period. We determine the certain period by dividing the Guaranteed Withdrawal Balance at the Annuity Commencement Date by the amount of the annual annuity benefit payment we determine for this option. This period will be rounded to the next higher month. We determine the annual amount of Fixed Annuity payments under this option as the greater of: - the Lifetime Income Amount, if any, as provided by the Rider that you purchased with your Contract, or - the annual amount that the proceeds of your Contract provides on a guaranteed basis under Annuity Option 2(a): Joint and Survivor Non-Refund Annuity. GMWB Alternate Annuity Option 5: Fixed Period Certain Only - This Annuity Option is available only if: - you purchase a Contract with a Principal Plus, Principal Plus for Life, Principal Plus for Life Plus Spousal Protection, a Principal Plus for Life Plus Automatic Annual Step-up, or Principal Returns optional benefit Rider; and - there is no Lifetime Income Amount remaining (or none has been determined) at the Annuity Commencement Date. This Annuity Option provides a Fixed Annuity with payments guaranteed for a certain period and no payments thereafter. Under this option, we determine the certain period by dividing the Guaranteed Withdrawal Balance at the Maturity Date by the Guaranteed Withdrawal Amount at the Annuity Commencement Date. This period will be rounded to the next higher month. (If the period certain is less than 5 years, we may pay the benefit as a lump sum equal to the present value of the annuity payments at the rate of interest for Annuity Options as described in the Contract.) We determine the annual amount of Fixed Annuity payments under this option as the greater of: (a) the Guaranteed Withdrawal Amount on the Annuity Commencement Date as provided by the Principal Plus, Principal Plus for Life, Principal Plus for Life Plus Automatic Annual Step-up, or the Principal Plus for Life Plus Spousal Protection, or the Principal Returns Rider that you purchased with your Contract, or (b) the annual amount for a Fixed Annuity with the same period certain that we determine for this option, but based on the interest rate for Annuity Options described in your Contract. FULL SURRENDERS DURING THE PAY-OUT PERIOD. You may surrender your Contract, after the Pay-out Period has begun, only if you have selected a variable pay-out under Additional Annuity Option 7: Period Certain Only Annuity for 10, 15, or 20 years. Under this option, we will pay you the present value of any remaining guaranteed annuity payments ("Commuted Value") of your Contract. The Commuted Value is determined on the day we receive your written request for surrender. We determine the Commuted Value by: - multiplying the number of Annuity Units we currently use to determine each payment by the respective Annuity Unit value on the last payment date (see "Annuity Units and the Determination of Subsequent Variable Annuity Benefit Payments" below for a description of an "Annuity Unit"); - assuming that the net investment factor for the remainder of the guarantee period will equal the assumed interest rate of 3%, resulting in level annuity payments; and - calculating the present value of these payments at the assumed interest rate of 3%. If you elect to take the entire Commuted Value of the remaining annuity payments due in the Period Certain, no future annuity payments will be made. 43 PARTIAL SURRENDERS DURING THE PAY-OUT PERIOD. We permit partial surrenders after the Pay-out Period has begun, only if you have selected a variable pay-out under Additional Annuity Option 7: Period Certain Only Annuity for 10, 15, or 20 years. You may take partial surrenders of amounts equal to the Commuted Value of the payments that we would have made during the Period Certain. The Commuted Value is determined in the manner described above on the day we receive your written request for surrender in the manner described above. If you elect to take only the Commuted Value of some of the remaining annuity payments due in the Period Certain, we will reduce the remaining annuity payments during the remaining Period Certain by reducing the number of Annuity Units used to determine payments (see "Annuity Units and the Determination of Subsequent Variable Annuity Payments" in this section, below, for how we determine the initial number of Annuity Units used to determine payments). Since there will be fewer Annuity Units, your remaining payments will be reduced. The new number of Annuity Units used to determine future payments after an amount is commuted will equal A x (1 - ((B / C) / D)), where: A equals the number of Annuity Units used to determine future payments before the commutation; B equals the dollar amount requested to be paid out as part of the commutation; C equals the present value of all Annuity Units to be paid out if there were no commutation, where the interest rate used to present value the Annuity Units is the assumed interest rate of 3%; and D equals the Annuity Unit value on the day the commutation is executed. For example, assume that before you request a partial Commuted Value, you will receive 400 units a year for 10 years. You request $20,000 in Commuted Value. Since you are receiving those 400 units for 10 years, C equals the present value of 400 units for 10 years starting the end of this year at a rate of an assumed interest rate of 3%. This value is 3,412.08 units. Assuming the annuity unit value on the day the commutation is executed is $12.50, after the commutation you will receive 400 x (1 - (($20,000 / 3412.08) / $12.50)) = 212.43 units a year for 10 years. You will not be able to make any additional withdrawals under a Contract with a guaranteed minimum withdrawal benefit Rider once annuity payments begin under an Annuity Option. FIXED ANNUITY OPTIONS. Subject to the distribution of death benefits provisions (see "Death Benefit During the Accumulation Period"), on death, withdrawal or the Maturity Date of the Contract, the proceeds may be applied to a Fixed Annuity Option. We determine the amount of each Fixed Annuity benefit payment by applying the portion of the proceeds (minus any applicable premium taxes) applied to purchase the Fixed Annuity to the appropriate table in the Contract. If the table we are then using is more favorable to you, we will substitute that table. If you choose an Annuity Option that is not guaranteed in the Contract, we will use the appropriate table that we are currently offering. We guarantee the dollar amount of Fixed Annuity payments. Determination of Amount of the First Variable Annuity Benefit Payment We determine the first Variable Annuity benefit payment by applying the portion of the proceeds (minus any applicable premium taxes) applied to purchase a Variable Annuity to the annuity tables contained in the Contract. We will determine the amount of the Contract Value as of the date not more than ten Business Days prior to the Annuity Commencement Date. We will reduce Contract Value used to determine annuity payments by any applicable premium taxes. The rates contained in the annuity tables vary with the Annuitant's sex and age and the Annuity Option selected. However, we may not use sex-distinct tables for Contracts issued in connection with certain employer-sponsored retirement plans. Under such tables, the longer the life expectancy of the Annuitant under any life Annuity Option or the longer the period for which payments are guaranteed under the option, the smaller the amount of the first monthly variable annuity benefit payment will be. Annuity Units and the Determination of Subsequent Variable Annuity Payments We will base variable annuity payments after the first one on the investment performance of the Sub-Accounts selected during the Pay-out Period. The amount of a subsequent payment is determined by dividing the amount of the first annuity benefit payment from each Sub-Account by the Annuity Unit value of that Sub-Account (as of the same date the Contract Value to effect the annuity was determined) to establish the number of Annuity Units which will thereafter be used to determine payments. This number of Annuity Units for each Sub-Account is then multiplied by the appropriate Annuity Unit value as of a uniformly applied date not more than ten Business Days before the annuity benefit payment is due, and the resulting amounts for each Sub-Account are then totaled to arrive at the amount of the annuity benefit payment to be made. The number of Annuity Units generally remains constant throughout the Pay-out Period (assuming no transfer is made). We will deduct a pro-rata portion of the administration fee from each annuity benefit payment. We charge the same Annual Separate Account Expenses during the annuitization period as we do during the Accumulation Period. We determine the "net investment factor" for an Annuity Unit in the same manner as we determine the net investment factor for an accumulation unit (see "Value of Accumulation Units" and "Net Investment Factor" on page 34). The value of an Annuity Unit for 44 each Sub-Account for any Business Day is determined by multiplying the Annuity Unit value for the immediately preceding Business Day by the net investment factor for that Sub-Account (see "Net Investment Factor") for the valuation period for which the Annuity Unit value is being calculated and by a factor to neutralize the assumed interest rate. Generally, if the net investment factor is greater than the assumed interest rate, the payment amount will increase. If the net investment factor is less than the assumed interest rate, the payment amount will decrease. We build a 3% assumed interest rate into the annuity tables in the Contract used to determine the first Variable Annuity benefit payment. The smallest annual rate of investment return which is required to be earned on the assets of the Separate Account so that the dollar amount of Variable Annuity payments will not decrease is 4.72%. Some transfers are permitted during the Pay-out Period, but subject to different limitations than during the Accumulation Period. Transfers During Pay-out Period Once Variable Annuity payments have begun, you may transfer all or part of the investment upon which those payments are based from one Sub-Account to another. You must submit your transfer request to our Annuities Service Center at least 30 DAYS BEFORE the due date of the first annuity benefit payment to which your transfer will apply. We will make transfers after the Annuity Commencement Date by converting the number of Annuity Units being transferred to the number of Annuity Units of the Sub-Account to which the transfer is made, so that the next annuity benefit payment if it were made at that time would be the same amount that it would have been without the transfer. Thereafter, annuity payments will reflect changes in the value of the Annuity Units for the new Sub-Account selected. We reserve the right to limit, upon notice, the maximum number of transfers a Contract Owner may make per Contract Year to four. Once annuity payments have commenced, a Contract Owner may not make transfers from a Fixed Annuity Option to a Variable Annuity Option or from a Variable Annuity Option to a Fixed Annuity Option. In addition, we reserve the right to defer the transfer privilege at any time that we are unable to purchase or redeem shares of a Portfolio. We also reserve the right to modify or terminate the transfer privilege at any time in accordance with applicable law. Death Benefit During Pay-out Period If an Annuity Option providing for payments for a guaranteed period has been selected, and the Annuitant dies during the Pay-out Period, we will make the remaining guaranteed payments to the Beneficiary. We will make any remaining payments as rapidly as under the method of distribution being used as of the date of the Annuitant's death. If no Beneficiary is living, we will commute any unpaid guaranteed payments to a single sum (on the basis of the interest rate used in determining the payments) and pay that single sum to the estate of the last to die of the Annuitant and the Beneficiary. We do not make any payments to a Beneficiary, however, if we are making payments during the Settlement Phase under an optional guaranteed minimum withdrawal benefit Rider and the last surviving Covered Person dies. Please read Appendix D: "Optional Guaranteed Minimum Withdrawal Benefits" for additional information. Optional Guaranteed Minimum Income Benefits Please see Appendix E "Optional Guaranteed Minimum Income Benefits" for a general description of the Optional Guaranteed Retirement Income Program Riders that may enhance guaranteed income benefits under the Contract you purchased. These optional benefit Riders guarantee a minimum lifetime fixed income benefit in the form of fixed monthly annuity payments. We base the guarantee on an amount called the "Income Base," which can be increased or decreased as provided in the Riders. The Guaranteed Retirement Income Program Riders were available only at Contract issue. The Riders cannot be revoked once elected. OTHER CONTRACT PROVISIONS You have a right to cancel your Contract within the permitted time. Right to Review You may cancel the Contract by returning it to our Annuities Service Center or to your registered representative at any time within 10 days after receiving it or such other period as required by law. Within 7 days of receiving a returned Contract, we will pay you the Contract Value (minus any Unpaid Loans) computed at the end of the Business Day on which we receive your returned Contract or written notification acceptable to us. No withdrawal charge is imposed upon return of a Contract within the 10 day right to review period. The 10 day right to review may vary in certain states in order to comply with the requirements of state insurance laws and regulations. When the Contract is issued as an individual retirement annuity under Sections 408 or 408A of the Code, during the first 7 days of the 10 day period, we will return all Purchase Payments if this is greater than the amount otherwise payable. If you purchase your Contract in connection with a replacement of an existing contract, your Contract may provide for a longer time period to return it to us. For example, in New York, you may return the Contract at any time within 60 days after receiving it. Replacement of an existing annuity contract generally is defined as the purchase of a new contract in connection with (a) the lapse, partial or full surrender or change of, or borrowing from, an existing annuity or life insurance contract or (b) the assignment to a new 45 issuer of an existing annuity contract. This description, however, does not necessarily cover all situations which could be considered a replacement of an existing contract. Therefore, you should consult with your registered representative or attorney regarding whether the purchase of a new a Contract is a replacement of an existing contract. (Applicable to Residents of California Only) Residents in California age 60 and greater may cancel the Contract by returning it to our Annuities Service Center or agent at any time within 30 days after receiving it. We will allocate your Purchase Payments to the Money Market Investment Option during this period. We will, however, permit you to elect to allocate your Purchase Payments during this 30 day period to a Fixed Investment Option (if available), or to one or more of the Variable Investment Options. If you cancel the Contract during this 30 day period and your Purchase Payments were allocated to a Fixed Investment Option or the Money-Market Investment Option, we will pay you the original amount of your Purchase Payments. If your Purchase Payments were allocated to a Variable Investment Option (other than the Money Market Investment Option), we will pay you the Contract Value, (minus any Unpaid Loans), computed at the end of the Business Day on which we receive your returned Contract. You own the Contract. Ownership Prior to the Maturity Date, the Contract Owner is the person designated in the Contract specifications page or as subsequently named. On and after the Annuity Commencement Date, the Annuitant is the Contract Owner. If amounts become payable to any Beneficiary under the Contract, the Beneficiary is the Contract Owner. In the case of Non-Qualified Contracts, Ownership of the Contract may be changed or the Contract may be collaterally assigned at any time prior to earlier of the Annuity Commencement Date or the Maturity Date, subject to the rights of any irrevocable Beneficiary. Changing the Ownership of a Contract may be treated as a (potentially taxable) distribution from the Contract for Federal tax purposes. A collateral assignment will be treated as a distribution from the Contract and will be tax reported as such. An addition or substitution of any Contract Owner may result in resetting the death benefit to an amount equal to the Contract Value as of the date of the change and treating that value as a Purchase Payment made on that date for purposes of computing the amount of the death benefit. You must make any change of ownership or assignment in writing and we must receive such written change at the Annuities Service Center. We must approve any change. We assume no liability for any payments made or actions taken before a change is approved or an assignment is accepted or responsibility for the validity or sufficiency of any assignment. An absolute assignment will revoke the interest of any revocable Beneficiary. In the case of Qualified Contracts, Ownership of the Contract generally may not be transferred except by the trustee of an exempt employees' trust which is part of a retirement plan qualified under Section 401 of the Code or as otherwise permitted by applicable IRS regulations. Subject to the foregoing, a Qualified Contract may not be sold, assigned, transferred, discounted or pledged as collateral for a loan or as security for the performance of an obligation or for any other purpose to any person other than us. The Annuitant is either you or someone you designate. Annuitant The Annuitant is any natural person or persons whose life is used to determine the duration of annuity payments involving life contingencies. The Annuitant is entitled to receive all annuity payments under the Contract. If the Contract Owner names more than one person as an "Annuitant," the second person named shall be referred to as "co-Annuitant." The Annuitant is as designated on the Contract specifications page or in the application, unless changed. Any change of Annuitant must be made in writing in a form acceptable to us. You must make any change of Annuitant in writing in a form acceptable to us and the change must be received at our Annuities Service Center. We must approve any change. On the death of the Annuitant prior to the Annuity Commencement Date, the co-Annuitant, if living, becomes the Annuitant. If there is no living co-Annuitant, the Owner becomes the Annuitant. In the case of certain Qualified Contracts, there are limitations on the ability to designate and change the Annuitant and the co-Annuitant. The Annuitant becomes the Owner of the Contract at the Annuity Commencement Date. If any Annuitant is changed and any Contract Owner is not a natural person, the entire interest in the Contract must be distributed to the Contract Owner within five years. The amount distributed will be reduced by charges that would otherwise apply upon withdrawal. The Beneficiary is the person you designate to receive the death benefit if you die. Beneficiary The Beneficiary is the person, persons or entity designated in the Contract specifications page (or as subsequently changed). However, if there is a surviving Contract Owner, we will treat that person as the Beneficiary. You may change the Beneficiary subject to the rights of any irrevocable Beneficiary. You must make any change in writing and the change must be received at our Annuities Service Center. We must approve any change. If approved, we will effect such change as of the date on which written. We assume no liability for any payments made or actions taken before the change is approved. If no Beneficiary is living, the Contingent 46 Beneficiary will be the Beneficiary. The interest of any Beneficiary is subject to that of any assignee. If no Beneficiary or Contingent Beneficiary is living, the Beneficiary is the estate of the deceased Contract Owner. In the case of certain Qualified Contracts, Treasury Department regulations may limit designations of beneficiaries. Modification We may not modify your Contract without your consent, except to the extent required to make it conform to any law or regulation or ruling issued by a governmental agency. Our Approval We reserve the right to accept or reject any Contract application at our sole discretion. Misstatement and Proof of Age, Sex or Survival We may require proof of age, sex or survival of any person upon whose age, sex or survival any payment depends. If the age or sex of the Annuitant has been misstated, the benefits will be those that would have been provided for the Annuitant's correct age and sex. If we have made incorrect annuity payments, the amount of any underpayment will be paid immediately and the amount of any overpayment will be deducted from future annuity payments. FIXED INVESTMENT OPTIONS Interests in a Fixed Investment Option are not registered under the Securities Act of 1933, as amended (the "1933 Act"), and each Company's General Account is not registered as an investment company under the 1940 Act. Neither interests in a Fixed Investment Option nor a General Account are subject to the provisions or restrictions of the 1933 Act or the 1940 Act. Nonetheless, Federal securities laws may require disclosures relating to interests in a Fixed Investment Option and a General Account to be accurate. INTEREST RATES AND AVAILABILITY. Currently, we do not make available any Fixed Investment Options, other than a DCA Fixed Investment Option under the DCA Program (see "Special Transfer Services-Dollar Cost Averaging" for details). However, we may make available Fixed Investment Options under the Contract in the future. A Fixed Investment Option provides for the accumulation of interest on Purchase Payments at guaranteed rates for the duration of the guarantee period. We determine the guaranteed interest rates on amounts allocated or transferred to a Fixed Investment Option from time-to-time. In no event will the guaranteed rate of interest be less than guaranteed minimum interest rate stated in your Contract. Once an interest rate is guaranteed for a Fixed Investment Option, it is guaranteed for the duration of the guarantee period, and we may not change it. If you purchased a John Hancock USA Contract prior to October 7, 2002, you may have elected a one-year Fixed Investment Option. You may no longer make new Purchase Payments to the one-year Fixed Investment Option, but you may transfer money from your Variable Investment Options to the one-year Fixed Investment Option. If you purchased a John Hancock USA Contract on or after October 7, 2002, you may not make Purchase Payments or transfers to the one-year Fixed Investment Option. Certain states may impose restrictions on the availability of Fixed Investment Options under your Contract. TRANSFERS. During the Accumulation Period, you normally may transfer amounts from a Fixed Investment Option to the Variable Investment Options only at the end of a guaranteed period. You may, however, transfer amounts from Fixed to Variable Investment Options prior to the end of the guarantee period pursuant to the DCA Program. Where there are multiple Investment Accounts within a Fixed Investment Option, amounts must be transferred from that Fixed Investment Option on a first-in-first-out basis. You may also make transfers from Variable Investment Options to a Fixed Investment Option, if available, at any time prior to the Annuity Commencement Date, as permitted by applicable law. We establish a separate Investment Account each time you allocate or transfer amounts to a Fixed Investment Option, except that for amounts allocated or transferred the same day, we will establish as single Investment Account. You may not allocate amounts to a Fixed Investment Option that would extend the guarantee period beyond the Annuity Commencement Date. Subject to certain regulatory limitations, we may determine to restrict payments and transfers to Fixed Investment Options at any time the declared interest rate in effect equals the minimum interest rate specified in your Contract. RENEWALS. At the end of a guarantee period, you may establish a new Investment Account with the same guarantee period at the then current interest rate, if available, or transfer the amounts to a Variable Investment Option, all without the imposition of any charge. In the case of renewals in the last year of the Accumulation Period, the only Fixed Investment Option available is to have interest accrued for the remainder of the Accumulation Period at the then current interest rate for one-year guarantee period. WITHDRAWALS. You may make total and partial withdrawals of amounts held in a Fixed Investment Option at any time during the Accumulation Period. Withdrawals from a Fixed Investment Option will be made in the same manner and be subject to the same limitations as set forth under "Withdrawals." 47 We reserve the right to defer payment of amounts withdrawn from a Fixed Investment Option for up to six months from the date we receive the written withdrawal request. If a withdrawal is deferred for more than 30 days pursuant to this right, we will pay interest on the amount deferred at a rate not less than 3% per year (or a higher rate if required by applicable law). If you do not specify the Investment Options from which a partial withdrawal is to be taken, the partial withdrawal will be taken from the Variable Investment Options until exhausted and then from the Fixed Investment Options. Such withdrawals will be made from the Investment Options beginning with the shortest guarantee period. Within such a sequence, where there are multiple Investment Accounts within a Fixed Investment Option, withdrawals will be made on a first-in-first-out basis. For this purpose, the DCA Fixed Investment Option is considered to have a shorter guarantee period than the one-year Fixed Investment Option. Withdrawals from the Contract may be subject to income tax and a 10% penalty tax. See "VII. Federal Tax Matters" below. Withdrawals are permitted from Contracts issued in connection with Section 403(b) qualified plans only under limited circumstances. See Appendix B "Qualified Plan Types." LOANS. We offer a loan privilege only to owners of Contracts issued prior to November 12, 2007 in connection with Section 403(b) qualified plans that are not subject to Title I of ERISA. If you own such a Contract, you may borrow from us, using your Contract as the only security for the loan, in the same manner and subject to the same limitations as described under "Qualified Contracts - Loans." (See "VII. Federal Tax Matters"). THE LOAN PRIVILEGE WILL NOT BE AVAILABLE IF YOU ELECTED ANY OPTIONAL GUARANTEED MINIMUM WITHDRAWAL BENEFIT RIDER. CHARGES. No asset based charges are deducted from Fixed Investment Options. 48 VI. Charges and Deductions We assess the charges and deductions under the Contracts against Purchase Payments, Contract Values or annuity payments. Currently, there are no deductions made from Purchase Payments. In addition, there are deductions from and expenses paid out of the assets of the Portfolios that are described in the Portfolio prospectuses. For information on the optional benefit fees, see the Fee Tables and Appendix C: "Optional Enhanced Death Benefits," Appendix D: "Optional Guaranteed Minimum Withdrawal Benefits" and Appendix E: "Optional Guaranteed Minimum Income Benefits." WITHDRAWAL CHARGES If you make a withdrawal from your Contract during the Accumulation Period, we may assess a withdrawal charge. We base the withdrawal change on the length of time a Purchase Payment has been in your Contract, and the amount of the withdrawal we attribute to unliquidated Purchase Payments. We do not assess a withdrawal charge with respect to (i) earnings accumulated in the Contract, (ii) certain other "free withdrawal amounts," described below or (iii) Purchase Payments that are no longer subject to a withdrawal charge as described in the table below. We first allocate a withdrawal to a "free Withdrawal Amount" and second to "unliquidated Purchase Payments" (i.e., the amount of all Purchase Payments in the Contract net of any withdrawals in excess of the free Withdrawal Amount that have been taken to date). We do not impose a withdrawal charge on amounts allocated to a Free Withdrawal Amount. In any Contract Year, the free Withdrawal Amount for that year is the greater of: - 10% of total Purchase Payments (less all prior partial withdrawals in that Contract Year); and - the accumulated earnings of the Contract (i.e., the excess of the Contract Value on the date of withdrawal over unliquidated Purchase Payments). Withdrawals of up to the free Withdrawal Amount may be withdrawn without the imposition of a withdrawal charge. If the amount of a withdrawal exceeds the free Withdrawal Amount, the excess will be allocated to Purchase Payments which will be "liquidated" on a first-in first-out basis. On any withdrawal request, we will liquidate Purchase Payments equal to the amount of the withdrawal request which exceeds the free Withdrawal Amount in the order the Purchase Payments were made: the oldest unliquidated Purchase Payment first, the next Purchase Payment second, etc., until all Purchase Payments have been liquidated. Upon a full surrender of a Contract, we will liquidate the excess of all unliquidated Purchase Payments over the free withdrawal amount for purposes of calculating the withdrawal charge. Each Purchase Payment or portion thereof liquidated in connection with a withdrawal request is subject to a withdrawal charge based on the length of time the Purchase Payment has been in the Contract. The amount of the withdrawal charge is calculated by multiplying the amount of the Purchase Payment being liquidated by the applicable withdrawal charge percentage as shown in the table below. MAXIMUM WITHDRAWAL CHARGE (AS % OF PURCHASE PAYMENTS) First Year 6% Second Year 5% Third Year 4% Thereafter 0%
The total withdrawal charge will be the sum of the withdrawal charges for the Purchase Payments being liquidated. We deduct from the amount paid to the Contract Owner as a result of the withdrawal, any applicable withdrawal charge, Contract and Rider fees, and any taxes. In the case of a partial withdrawal, the amount requested from an Investment Account may not exceed the value of that Investment Account less any applicable fees and charges. There is generally no withdrawal charge on distributions made as a result of the death of the Contract Owner or, if applicable, the Annuitant, and no withdrawal charges are imposed on the Annuity Commencement Date if the Contract Owner annuitizes as provided in the Contract. Withdrawal charges help to compensate us for the cost of selling the Contracts. The amount of the charges in any Contract Year does not specifically correspond to sale expenses for that year. We expect to recover our total sales expenses over the life of the Contracts. To the extent that the withdrawal charges do not cover total sales expenses, the sales expenses may be recovered from other sources, including gains from the asset-based risk charge and other gains with respect to the Contracts, or from general assets. Similarly, administrative expenses not fully recovered by the administrative fees may also be recovered from such other sources. For examples of calculation of the withdrawal charge, see Appendix A: "Examples of Calculation of Withdrawal Charge." 49 ASSET-BASED CHARGES We deduct asset-based charges on an annual basis for administration, distribution and mortality and expense risks, assuming no optional benefit has been elected. We do not assess asset-based charges against Fixed Investment Options. Daily Administration Fee We allocate a portion of the asset-based charges shown in the Fee Tables to help cover our administrative expenses. We deduct on an annual basis from each Sub-Account a daily charge in an amount equal to 0.15% of the value of each Variable Investment Option to reimburse us for administrative expenses. The charge will be reflected in the Contract Value as a proportionate reduction in the value of each Variable Investment Option. Even though administrative expenses may increase, we guarantee that we will not increase the amount of the administration fees. Distribution Fee A daily fee in an amount equal to 0.25% of the value of each Variable Investment Option on an annual basis is deducted from each Sub-Account as a distribution fee. The fee is designed to compensate us for a portion of the expenses we incur in selling the Contracts and cannot be increased during the life of the Contract. Mortality and Expense Risks Fee The mortality risk we assume is the risk that Annuitants may live for a longer period of time than we estimate. We assume this mortality risk by virtue of annuity benefit payment rates incorporated into the Contract which cannot be changed. This assures each Annuitant that his or her longevity will not have an adverse effect on the amount of annuity payments. We also assume mortality risks in connection with our guarantee that, if the Contract Owner dies during the Accumulation Period, we will pay a death benefit (see "Death Benefit During the Accumulation Period" on page 38). The expense risk we assume is the risk that the administration charges, distribution charge, or withdrawal charge may be insufficient to cover actual expenses. To compensate us for assuming these risks, we deduct from each of the Sub-Accounts a daily charge in an amount equal to 1.25% of the value of the Variable Investment Options on an annual basis. The rate of the mortality and expense risks charge cannot be increased. If the charge is insufficient to cover the actual cost of the mortality and expense risks assumed, we will bear the loss. Conversely, if the charge proves more than sufficient, the excess will be profit to us and will be available for any proper corporate purpose including, among other things, payment of distribution expenses. On the Period Certain Only Annuity Option, if you elect benefits payable on a variable basis, the mortality and expense risks charge is assessed although we bear only the expense risk and not any mortality risk. The mortality and expense risks charge is not assessed against the Fixed Investment Option. REDUCTION OR ELIMINATION OF CHARGES AND DEDUCTIONS We may reduce or eliminate the amount of the charges and deductions for certain Contracts. These Contracts would involve sales that are made to individuals or to a group of individuals in a manner that results in savings of sales or maintenance expenses or that we expect may result in reduction of other risks that are normally associated with the Contracts. We will determine entitlement to such a reduction in the charges or deductions in the following manner: - We will consider the size and type of group to which sales are to be made. Generally, sales expenses for a larger group are smaller than for a smaller group because of the ability to implement large numbers of Contracts with fewer sales contacts; - We will consider the total amount of Purchase Payments to be received. Per-dollar sales expenses are likely to be less on larger Purchase Payments than on smaller ones; - We will consider the nature of the group or class for which the Contracts are being purchased, including the expected persistency, mortality or morbidity risks associated with the group or class of Contracts; - We will consider any prior or existing relationship with us. Per-Contract sales expenses are likely to be less when there is a prior or existing relationship because of the likelihood of implementing the Contract with fewer sales contacts; - We will consider the level of commissions paid to selling broker-dealers. Certain broker-dealers may offer the Contract in connection with financial planning programs offered on a fee-for-service basis. In view of the financial planning fees, such broker-dealers may elect to receive lower commissions for sales of the Contracts, thereby reducing our sales expenses; - There may be other circumstances of which we are not presently aware, which could result in reduced expenses. If after consideration of the foregoing factors, we determine that there will be a reduction in expenses, we will provide a reduction in the charges or deductions. In the case of group contracts, we may issue Contracts and certificates with a mortality or expense risks charge at rates less than those set out above, if we conclude that the mortality or expense risks of the groups involved are less than the risks it has determined for persons for whom the Contracts and certificates have been generally designed. In no event will reduction or elimination of the charges or deductions 50 be permitted where that reduction or elimination will be unfairly discriminatory to any person. For further information, contact your registered representative. PREMIUM TAXES We will charge you for state premium taxes to the extent we incur them and reserve the right to charge you for new taxes we may incur. We make deductions for any applicable premium or similar taxes based on the amount of a Purchase Payment. Currently, certain local jurisdictions assess a tax of up to 4% of each Purchase Payment. In most cases, we deduct a charge in the amount of the tax from the total value of the Contract only at the time of annuitization, death, surrender, or withdrawal. We reserve the right, however, to deduct the charge from each Purchase Payment at the time it is made. We compute the amount of the charge by multiplying the applicable premium tax percentage times the amount you are withdrawing, surrendering, annuitizing or applying to a death benefit. PREMIUM TAX RATE(1)
STATE OR QUALIFIED NON-QUALIFIED TERRITORY CONTRACTS CONTRACTS - --------- --------- ------------- CA 0.50% 2.35% GUAM 4.00% 4.00% ME(2) 0.00% 2.00% NV 0.00% 3.50% PR 1.00% 1.00% SD(2) 0.00% 1.25%(3) WV 1.00% 1.00% WY 0.00% 1.00%
(1) Based on the state of residence at the time the tax is assessed. (2) We pay premium tax upon receipt of Purchase Payment. (3) 0.80% on Purchase Payments in excess of $500,000. 51 VII. Federal Tax Matters INTRODUCTION The following discussion of the Federal income tax treatment of the Contract is not exhaustive, does not purport to cover all situations, and is not intended as tax advice. The Federal income tax treatment of an annuity contract is unclear in certain circumstances, and you should consult a qualified tax advisor with regard to the application of the law to your circumstances. This discussion is based on the Code, IRS regulations, and interpretations existing on the date of this Prospectus. These authorities, however, are subject to change by Congress, the Treasury Department, and judicial decisions. This discussion does not address state or local tax consequences associated with the purchase of a Contract. IN ADDITION, WE MAKE NO GUARANTEE REGARDING ANY TAX TREATMENT -- FEDERAL, STATE, OR LOCAL -- OF ANY CONTRACT OR OF ANY TRANSACTION INVOLVING A CONTRACT. OUR TAX STATUS We are taxed as a life insurance company. Under current tax law rules, we include the investment income (exclusive of capital gains) of a Separate Account in our taxable income and take deductions for investment income credited to our "policyholder reserves." We are also required to capitalize and amortize certain costs instead of deducting those costs when they are incurred. We do not currently charge a Separate Account for any resulting income tax costs. We also claim certain tax credits or deductions relating to foreign taxes paid and dividends received by the Portfolios. These benefits can be material. We do not pass these benefits through to a Separate Account, principally because: (i) the deductions and credits are allowed to the Company and not the Contract owners under applicable tax law; and (ii) the deductions and credits do not represent investment return on a Separate Account assets that is passed through to Contract owners. The Contracts permit us to deduct a charge for any taxes we incur that are attributable to the operation or existence of the Contracts or a Separate Account. Currently, we do not anticipate making a charge for such taxes. If the level of the current taxes increases, however, or is expected to increase in the future, we reserve the right to make a charge in the future. SPECIAL CONSIDERATIONS FOR OPTIONAL BENEFITS At present, the IRS has not provided guidance as to the tax treatment of charges for optional benefits to an annuity contract. The IRS might take the position that each charge associated with these optional benefits is deemed a withdrawal from the contract subject to current income tax to the extent of any gains and, if applicable, the 10% penalty tax for premature withdrawals. We do not currently report charges for optional benefits as partial withdrawals, but we may do so in the future if we believe that the IRS would require us to report them as such. You should consult a tax adviser for information on any optional benefit Riders. When you take a withdrawal under a Non-Qualified Contract, it ordinarily is taxable only to the extent it does not exceed gain in the Contract, if any, at the time of the withdrawal. Under current IRS guidance, we expect to determine gain on a withdrawal, including withdrawals during the "Settlement Phase" of an optional guaranteed minimum withdrawal benefit Rider using the Contract Value. See Appendix D: "Optional Guaranteed Minimum Withdrawal Benefits" for a description of the guaranteed minimum withdrawal benefit Riders available under the Contracts. It is possible, however, that the IRS may take the position that the value of amounts guaranteed to be available in the future should also be taken into account in computing the taxable portion of a withdrawal. In that event, you may be subject to a higher amount of tax on a withdrawal. If you purchased a Qualified Contract with an optional death benefit or other optional benefit Rider, the presence of these benefits may increase the amount of any required minimum distributions under the requirements of your Qualified Plan. See "Qualified Contracts (Contracts Purchased for a Qualified Plan)" below. Any annuity payments that you receive under an Annuity Option, including Annuity Options that only are available when you elect a guaranteed minimum withdrawal benefit Rider, will be taxed in the manner described in "Taxation of Annuity Payments," below. CHARITABLE REMAINDER TRUSTS This federal tax discussion does not address tax consequences of a Contract used in a charitable remainder trust. The tax consequences of charitable remainder trusts may vary depending on the particular facts and circumstances of each individual case. Additionally, the tax rules governing charitable remainder trusts, or the taxation of a Contract used with a charitable remainder trust, may be subject to change by legislation, regulatory changes, judicial decrees or other means. You should consult competent legal or tax counsel regarding the tax treatment of a charitable remainder trust before purchasing a Contract for use within it. 52 NON-QUALIFIED CONTRACTS (Contracts Not Purchased to Fund an Individual Retirement Account or Other Qualified Plan) Undistributed Gains Except where the Owner is not an individual, we expect our Contracts to be considered annuity contracts under Section 72 of the Code. This means that, ordinarily, you pay no federal income tax on any gains in your Contract until we actually distribute assets to you. However, a Contract held by an Owner other than a natural person (for example, a corporation, partnership, limited liability company or other such entity) does not generally qualify as an annuity contract for tax purposes. Any increase in value therefore would constitute ordinary taxable income to such an Owner in the year earned. Notwithstanding this general rule, a Contract will ordinarily be treated as held by a natural person if the nominal Owner is a trust or other entity which holds the Contract as an agent for a natural person. Taxation of Annuity Payments When we make payments under a Contract in the form of an annuity, normally a portion of each annuity payment is taxable as ordinary income. The taxable portion of an annuity payment is equal to the excess of the payment over the exclusion amount. In the case of variable annuity payments, the exclusion amount is the investment in the Contract when payments begin to be made divided by the number of payments expected to be made (taking into account the Annuitant's life expectancy and the form of annuity benefit selected). In the case of Fixed Annuity payments, the exclusion amount is based on the investment in the Contract and the total expected value of Fixed Annuity payments for the term of the Contract (determined under IRS regulations). In general, your investment in the Contract equals the aggregate amount of premium payments you have made over the life of the Contract, reduced by any amounts previously distributed from the Contract that were not subject to tax. A simplified method of determining the taxable portion of annuity benefit payments applies to Contracts issued in connection with certain Qualified Plans other than IRAs. Once you have recovered your total investment in the Contract tax-free, further annuity payments will be fully taxable. If annuity payments cease because the Annuitant dies before all of the investment in the Contract is recovered, the unrecovered amount generally will be allowed as a deduction on the Annuitant's last tax return or, if there is a beneficiary entitled to receive further payments, will be distributed to the beneficiary as described more fully below under "Taxation of Death Benefit Proceeds." Surrenders, Withdrawals and Death Benefits When we make a single sum payment consisting of the entire value of your Contract, you have ordinary taxable income to the extent the payment exceeds your investment in the Contract (discussed above). Such a single sum payment can occur, for example, if you surrender your Contract before the Maturity Date or if no extended payment option is selected for a death benefit payment. When you take a partial withdrawal from a Contract before the Annuity Commencement Date, including a payment under a systematic withdrawal plan or guaranteed withdrawal benefit, all or part of the payment may constitute taxable ordinary income to you. If, on the date of withdrawal, the total value of your Contract exceeds the investment in the Contract, the excess will be considered gain and the withdrawal will be taxable as ordinary income up to the amount of such gain. Taxable withdrawals may also be subject to a penalty tax for premature withdrawals as explained below. When only the investment in the Contract remains, any subsequent withdrawal made before the Annuity Commencement Date will be a tax-free return of investment, until you have recovered your entire investment in the Contract (additional withdrawals based upon a Rider guarantee will be subject to income tax). If you assign or pledge any part of your Contract's value, the value so pledged or assigned is taxed the same way as if it were a partial withdrawal. For purposes of determining the amount of taxable income resulting from a single sum payment or a partial withdrawal, all Non-Qualified annuity contracts issued by us or our affiliates to the Owner within the same calendar year will be treated as if they were a single contract. There may be special income tax issues present in situations where the Owner and the Annuitant are not the same person and are not married to each other. A tax advisor should be consulted in those situations. Taxation of Death Benefit Proceeds All or part of any death benefit proceeds may constitute a taxable payout of earnings. A death benefit payment generally results in taxable ordinary income to the extent such payment exceeds your investment in the Contract. Amounts may be distributed from a Contract because of the death of an Owner or the Annuitant. During the Accumulation Period, death benefit proceeds are includible in income as follows: - if distributed in a single sum payment under our current administrative procedures, they are taxed in the same manner as a full withdrawal, as described above; or - if distributed under an Annuity Option, they are taxed in the same manner as annuity payments, as described above; or 53 - if distributed as a series of withdrawals over the Beneficiary's life expectancy, they are taxable to the extent the Contract Value exceeds the investment in the Contract. After a Contract matures and annuity payments begin, if the Contract guarantees payments for a stated period and the Owner dies before the end of that period, payments made to the Beneficiary for the remainder of that period are includible in the Beneficiary's income as follows: - if received in a single sum under our current administrative procedures, they are includible in income to the extent that they exceed the unrecovered investment in the Contract at that time; or - if distributed in accordance with the existing Annuity Option selected, they are fully excludable from income until the remaining investment in the Contract has been recovered, and all annuity benefit payments thereafter are fully includible in income. Penalty Tax on Premature Distributions There is a 10% IRS penalty tax on the taxable portion of any payment from a Non-Qualified Contract. Exceptions to this penalty tax include distributions: - received on or after the date on which the Contract Owner reaches age 59 1/2; - attributable to the Contract Owner becoming disabled (as defined in the tax law); - made to a Beneficiary on or after the death of the Contract Owner or, if the Contract Owner is not an individual, on or after the death of the primary Annuitant; - made as a series of substantially equal periodic payments for the life (or life expectancy) of the Owner or for the joint lives (or joint life expectancies) of the Owner and designated individual Beneficiary; - made under a single-premium immediate annuity contract; or - made with respect to certain annuities issued in connection with structured settlement agreements. Note that when a series of substantially equal periodic payments is used to avoid the penalty, if the Contract Owner then modifies the payment pattern (other than by reason of death or disability) before the LATER of the Contract Owner's attaining age 59 1/2 and the passage of five years after the date of the first payment, such modification will cause retroactive imposition of the penalty plus interest on it. Puerto Rico Non-Qualified Contracts Distributions from Puerto Rico annuity contracts issued by us are subject to federal income taxation, withholding and reporting requirements as well as Puerto Rico tax laws. Both jurisdictions impose a tax on distributions. Under federal requirements, distributions are deemed to be income first. Under the Puerto Rico tax laws, however, distributions from a Contract not purchased to fund a Qualified Plan ("Non-Qualified Contract") are generally treated as a non-taxable return of principal until the principal is fully recovered. Thereafter, all distributions under a Non-Qualified Contact are fully taxable. Puerto Rico does not currently impose an early withdrawal penalty tax. The Internal Revenue Code, however, does impose such a penalty and bases it on the amount that is taxable under federal rules. Distributions under a Non-Qualified Contract after annuitization are treated as part taxable income and part non-taxable return of principal. After annuitization, the annual amount excluded from gross income after annuitization under Puerto Rico tax law is equal to the amount of the distribution in excess of 3% of the total Purchase Payments paid, until an amount equal to the total Purchase Payments paid has been excluded. Thereafter, the entire distribution from a Non-Qualified Contract is included in gross income. For federal income tax purposes, however, the portion of each annuity payment that is subject to tax is computed on the basis of investment in the Contract and the Annuitant's life expectancy. Generally Puerto Rico does not require income tax to be withheld from distributions of income. Although Puerto Rico allows a credit against its income tax for taxes paid to the federal government, you may not be able to use the credit fully Diversification Requirements Your Contract will not qualify for the tax benefits of an annuity contract unless the Separate Account follows certain rules requiring diversification of investments underlying the Contract. In addition, the rules require that the Contract Owner not have "investment control" over the underlying assets. In certain circumstances, the owner of a variable annuity contract may be considered the owner, for federal income tax purposes, of the assets of the separate account used to support the contract. In those circumstances, income and gains from the separate account assets would be includible in the contract owner's gross income. The Internal Revenue Service ("IRS") has stated in published rulings that a variable contract owner will be considered the owner of separate account assets if the contract owner possesses incidents of ownership in those assets, such as the ability to exercise investment control over the assets. A Treasury Decision issued in 1986 stated that guidance would be issued in the form of regulations or rulings on the "extent to which Policyholders may direct their investments to particular sub-accounts of a separate account without being treated as owners of the underlying assets." As of the date of this Prospectus, no comprehensive guidance on this point has been issued. In Rev. Rul. 2003-91, however, the IRS ruled that a contract holder would not be treated as the owner of assets underlying a variable life annuity contract despite the owner's ability to allocate funds among as many as twenty sub-accounts. 54 The ownership rights under your Contract are similar to, but different in certain respects from, those described in IRS rulings in which it was determined that contract owners were not owners of separate account assets. Since you have greater flexibility in allocating premiums and Contract Values than was the case in those rulings, it is possible that you would be treated as the owner of your Contract's proportionate share of the assets of the Separate Account. We do not know what future Treasury Department regulations or other guidance may require. We cannot guarantee that an underlying Portfolio will be able to operate as currently described in its prospectus, or that a Portfolio will not have to change any of its investment objectives or policies. We have reserved the right to modify your Contract if we believe doing so will prevent you from being considered the owner of your Contract's proportionate share of the assets of the Separate Account, but we are under no obligation to do so. QUALIFIED CONTRACTS (Contracts Purchased for a Qualified Plan) The Contracts are also available for use in connection with certain types of retirement plans, which receive favorable treatment under the Code ("Qualified Plans"). Numerous special tax rules apply to the participants in Qualified Plans and to the Contracts used in connection with these plans. We provide a brief description of types of Qualified Plans in Appendix B of this Prospectus, but make no attempt to provide more than general information about use of the Contracts with the various types of Qualified Plans in this Prospectus. We may limit the availability of the Contracts to certain types of Qualified Plans and may discontinue making Contracts available to any Qualified Plan in the future. If you intend to use a Contract in connection with a Qualified Plan you should consult a tax advisor. We have no responsibility for determining whether a particular retirement plan or a particular contribution to the plan satisfies the applicable requirements of the Code, or whether a particular employee is eligible for inclusion under a plan. In general, the Code imposes limitations on the amount of annual compensation that can be contributed into a Qualified Plan, and contains rules to limit the amount you can contribute to all of your Qualified Plans. Trustees and administrators of Qualified Plans may, however, generally invest and reinvest existing plan assets without regard to such Code imposed limitations on contributions. Certain distributions from Qualified Plans may be transferred directly to another plan, unless funds are added from other sources, without regard to such limitations. The tax rules applicable to Qualified Plans vary according to the type of plan and the terms and conditions of the plan itself. For example, for both withdrawals and annuity benefit payments under certain Qualified Contracts, there may be no "investment in the Contract" and the total amount received may be taxable. Also, loans from Qualified Contracts, where allowed, are subject to a variety of limitations, including restrictions as to the amount that may be borrowed, the duration of the loan, and the manner in which the loan must be repaid. (You should always consult your tax adviser and retirement plan fiduciary prior to exercising your loan privileges.) Both the amount of the contribution that may be made and the tax deduction or exclusion that you may claim for that contribution are limited under Qualified Plans. Under the tax rules, the Owner and the Annuitant may not be different individuals if a Contract is used in connection with a Qualified Plan. If a co-Annuitant is named, all distributions made while the Annuitant is alive must be made to the Annuitant. Also, if a co-Annuitant is named who is not the Annuitant's spouse, the Annuity Options which are available may be limited, depending on the difference in ages between the Annuitant and co-Annuitant. Additionally, for Contracts issued in connection with Qualified Plans subject to the Employee Retirement Income Security Act of 1974 (ERISA), the spouse or ex-spouse of the Owner will have rights in the Contract. In such a case, the Owner may need the consent of the spouse or ex-spouse to change Annuity Options or make a withdrawal from the Contract. Special minimum distribution requirements govern the time at which distributions to the Owner and beneficiaries must commence and the form in which the distributions must be paid. These special rules may also require the length of any guarantee period to be limited. They also affect the restrictions that the Owner may impose on the timing and manner of payment of death benefits to beneficiaries or the period of time over which a Beneficiary may extend payment of the death benefits under the Contract. In addition, the presence of the death benefit or a benefit provided under an optional rider may affect the amount of the required minimum distributions that must be made under the Contract. Failure to comply with minimum distribution requirements will result in the imposition of an excise tax, generally 50% of the amount by which the amount required to be distributed exceeds the actual distribution. In the case of IRAs (other than Roth IRAs), distributions of minimum amounts (as specified in the tax law) to the Owner must generally commence by April 1 of the calendar year following the calendar year in which the Owner attains age 70 1/2. In the case of certain other Qualified Plans, such distributions of such minimum amounts must generally commence by the later of this date or April 1 of the calendar year following the calendar year in which the employee retires. Distributions made under certain Qualified Plans, including IRAs and Roth IRAs, after the Owner's death must also comply with the minimum distribution requirements, and different rules governing the timing and the manner of payments apply, depending on whether the designated Beneficiary is an individual, and, if so, the Owner's spouse, or an individual other than the Owner's spouse. If you wish to impose restrictions on the timing and manner of payment of death 55 benefits to your designated beneficiaries or if your Beneficiary wishes to extend over a period of time the payment of the death benefits under your Contract, please consult your tax advisor. Penalty Tax on Premature Distributions There is also a 10% IRS penalty tax on the taxable amount of any payment from certain Qualified Contracts (but not Section 457 plans). (The amount of the penalty tax is 25% of the taxable amount of any payment received from a SIMPLE retirement account during the 2-year period beginning on the date the individual first participated in any qualified salary reduction arrangement maintained by the individual's employer.) There are exceptions to this penalty tax which vary depending on the type of Qualified Plan. In the case of an Individual Retirement Annuity or an IRA, including a SIMPLE IRA, the penalty tax does not apply to a payment: - received on or after the date on which the Contract Owner reaches age 59 1/2; - received on or after the Owner's death or because of the Owner's disability (as defined in the tax law); or - made as a series of substantially equal periodic payments (not less frequently than annually) for the life (or life expectancy) of the Owner or for the joint lives (or joint life expectancies) of the Owner and "designated beneficiary" (as defined in the tax law). Note that when a series of substantially equal periodic payments is used to avoid the penalty, if the Contract Owner then modifies the payment pattern (other than by reason of death or disability) before the LATER of the Contract Owner's attaining age 59-1/2 and the passage of five years after the date of the first payment, such modification may cause retroactive imposition of the penalty plus interest on it. These exceptions generally apply to taxable distributions from other Qualified Plans (although, in the case of plans qualified under Sections 401 and 403, the exception for substantially equal periodic payments applies only if the Owner has separated from service). In addition, the penalty tax does not apply to certain distributions from IRAs which are used for first time home purchases or for higher education expenses, or for distributions made to certain eligible individuals called to active duty after September 11, 2001 and before December 31, 2007. Special conditions must be met to qualify for these three exceptions to the penalty tax. If you wish to take a distribution from an IRA for these purposes, you should consult your tax advisor. When we issue a Contract in connection with a Qualified Plan, we will amend the Contract as necessary to conform to the requirements of the plan. However, your rights to any benefits under the plan may be subject to the terms and conditions of the plan itself, regardless of the terms and conditions of the Contracts. Rollovers and Transfers If permitted under your plan, you may take a distribution: - from a traditional IRA and make a "tax-free" rollover to another traditional IRA; - from a traditional IRA and make a "tax-free" rollover to a retirement plan qualified under Sections 401(a), 403(a), or 403(b) of the Code or a governmental deferred compensation plan described in Section 457(b) of the Code; - from any Qualified Plan (other than a Section 457 deferred compensation plan maintained by a tax-exempt organization) and make a "tax-free" rollover to a traditional IRA; or - from a retirement plan qualified under Sections 401(a), 403(a), or 403(b) of the Code or a governmental deferred compensation plan described in Section 457(b) of the Code and make a "tax-free" rollover to any such plans. In addition, if your spouse survives you, he or she is permitted to take a distribution from your tax-qualified retirement account and make a "tax-free" rollover to another tax-qualified retirement account in which your surviving spouse participates, to the extent permitted by your surviving spouse's plan. A beneficiary who is not your surviving spouse may if permitted by the plan, take the amount distributable to him or her upon your death under a Contract that is held as part of a retirement plan described in Sections 401(a), 403(a), or 403(b) of the Code or a governmental deferred compensation plan described in Section 457(b) of the Code and transfer it to a traditional IRA. The IRA is treated as an inherited IRA of the non-spouse beneficiary. You may also make a taxable rollover from a traditional IRA to a Roth IRA. In addition, distributions that you receive from a retirement plan described in Sections 401(a), 403(a), or 403(b) of the Code or a governmental deferred compensation plan described in Section 457(b) of the Code may be rolled over directly to a Roth IRA if (i) your adjusted gross income is not in excess of $100,000, and (ii) you are not a married taxpayer filing a separate return. This type of rollover is taxable. In lieu of taking a distribution from your plan (including a Section 457 deferred compensation plan maintained by a tax-exempt organization), your plan may permit you to make a direct trustee-to trustee transfer of plan assets. Withholding on Eligible Rollover Distributions. Eligible rollover distributions from a retirement plan that is qualified under Sections 401(a), 403(a), or 403(b) of the Code, or a governmental deferred compensation plan described in Section 457(b) of the Code will be subject to mandatory withholding. An eligible rollover distribution generally is any taxable distribution from such plans except (i) minimum distributions required under Section 401(a)(9) of the Code, (ii) certain distributions for life, life expectancy, or for 10 years or more which are part of a "series of substantially equal periodic payments," and (iii) if applicable, certain hardship withdrawals. 56 Federal income tax of 20% will be withheld from an eligible rollover distribution. The withholding is mandatory, and you cannot elect to have it not apply. This 20% withholding will not apply, however, if instead of receiving the eligible rollover distribution, you choose to have it directly transferred to an applicable plan or a traditional IRA. (See "Conversions and Rollovers to Roth IRAs," below.) If you take a distribution from a Qualified Contract, we may have to take a withdrawal from your Contract Value, withhold it from you, and remit to the IRS. The amount we may be required to withhold is up to 20% of the taxable gain in the Contract. We treat any amount we withhold as a withdrawal from your Contract, which could result in an Excess Withdrawal, or other reduction of the guarantees and benefits you may have purchased under an optional benefits Rider to your Contract. Please read Appendix D: "Optional Guaranteed Minimum Withdrawal Benefits" for information about the impact of withdrawals on optional benefit Riders. We do not need to withhold amounts if you provide us with information, on the forms we require for this purpose, that you wish to assign a Qualified Contract and/or transfer amounts from that Contract directly to another tax-qualified retirement plan. Similarly, if you wish to purchase a Qualified Contract, you may find it advantageous to instruct your existing retirement plan to transfer amounts directly to us, in lieu of making a distribution to you.. YOU SHOULD SEEK INDEPENDENT TAX ADVICE IF YOU INTEND TO PURCHASE A CONTRACT FOR USE WITH A TAX-QUALIFIED RETIREMENT PLAN. Conversions and Rollovers to Roth IRAs You can convert a traditional IRA to a Roth IRA or directly roll over distributions that you receive from a retirement plan described in Sections 401(a), 403(a), or 403(b) of the Code or a governmental deferred compensation plan described in Section 457(b) of the Code to a Roth IRA unless: - you have adjusted gross income over $100,000; or - you are a married tax payer filing a separate return. The Roth IRA annual contribution limit does not apply to converted or rollover amounts. You must, however, pay tax on any portion of the converted or rollover amount that would have been taxed if you had not converted or rolled over to a Roth IRA. No similar limitations apply to rollovers from one Roth IRA to another Roth IRA. Please note that the amount deemed to be the "converted amount" for tax purposes may be higher than the Contract Value because of the deemed value of guarantees. If you convert a Contract issued as a traditional IRA (or other type of Qualified Contract, if permitted under your plan) to a Roth IRA, or instruct us to transfer a rollover amount from a Qualified Contract to a Roth IRA, we may have to take a withdrawal from your Contract Value, withhold it from you, and remit to the IRS. The amount we may be required to withhold is up to 20% of the taxable gain in the Contract. We treat any amount we withhold as a withdrawal from your Contract, which could result in an Excess Withdrawal, or other reduction of the guarantees and benefits you may have purchased under an optional benefits Rider to your Contract. Please read Appendix D: "Optional Guaranteed Minimum Withdrawal Benefits" for information about the impact of withdrawals on optional benefit Riders. We do not need to withhold amounts if you provide us with information, on the forms we require for this purpose, that you will pay the tax due on the conversion of a Qualified Contract to a Roth IRA from resources outside of the Contract. Similarly, you may find it advantageous to pay the tax due from resources other than your retirement plan assets if you wish to purchase a Contract for use as a Roth IRA through a rollover from that retirement plan. You should seek independent tax advice if you intend to use the Contract in connection with a Roth IRA. Loans We currently offer a loan privilege to Owners of Contracts issued in connection with Section 403(b) retirement arrangements that are not subject to Title 1 of ERISA, unless they have elected a guaranteed minimum withdrawal benefit Rider. Puerto Rico Contracts Issued to Fund Retirement Plans The tax laws of Puerto Rico vary significantly from the provisions of the Internal Revenue Code of the United States that are applicable to various Qualified Plans. Although we may offer variable annuity contracts in Puerto Rico in connection with Puerto Rican "tax qualified" retirement plans, the text of this Prospectus addresses federal tax law only and is inapplicable to the tax laws of Puerto Rico. SEE YOUR OWN TAX ADVISOR The foregoing description of Federal income tax topics and issues is only a brief summary and is not intended as tax advice. It does not include a discussion of federal estate and gift tax or state tax consequences. The rules under the Code governing Qualified Plans are extremely complex and often difficult to understand. Changes to the tax laws may be enforced retroactively. Anything less than 57 full compliance with the applicable rules, all of which are subject to change from time to time, can have adverse tax consequences. The taxation of an Annuitant or other payee has become so complex and confusing that great care must be taken to avoid pitfalls. For further information you should always consult a qualified tax advisor. 58 VIII. General Matters ASSET ALLOCATION SERVICES We are aware that certain third parties are offering asset allocation services ("Asset Allocation Services") in connection with the Contract through which a third party may transfer amounts among Investment Options from time to time on your behalf. In certain cases we have agreed to honor transfer instructions from such Asset Allocation Services where we have received powers of attorney, in a form acceptable to us, from the Contract Owners participating in the service and where the Asset Allocation Service has agreed to the trading restrictions imposed by us. These trading restrictions include adherence to a Separate Account's policies that we have adopted to discourage disruptive frequent trading activity. (See "Transfers Among Investment Options.") WE DO NOT ENDORSE, APPROVE OR RECOMMEND SUCH SERVICES IN ANY WAY AND YOU SHOULD BE AWARE THAT FEES PAID FOR SUCH SERVICES ARE SEPARATE AND IN ADDITION TO FEES PAID UNDER THE CONTRACTS. RESTRICTIONS UNDER THE TEXAS OPTIONAL RETIREMENT PROGRAM (for Contracts issued by John Hancock USA) Section 830.105 of the Texas Government Code permits participants in the Texas Optional Retirement Program ("ORP") to withdraw their interest in a Variable Annuity contract issued under the ORP only upon: - termination of employment in the Texas public institutions of higher education; - retirement; - death; or - the participant's attainment of age 70 1/2. Accordingly, before any amounts may be distributed from the Contract, proof must be furnished to us that one of these four events has occurred. The foregoing restrictions on withdrawal do not apply in the event a participant in the ORP transfers the Contract Value to another Contract or another qualified custodian during the period of participation in the ORP. Loans are not available under Contracts subject to the ORP. DISTRIBUTION OF CONTRACTS We pay compensation for sales of the Contracts. John Hancock Distributors, LLC ("JH Distributors"), a Delaware limited liability company that John Hancock USA controls, is the principal underwriter and distributor of the Contracts offered through this Prospectus and of other annuity and life insurance products we and our affiliates offer. JH Distributors also acts as the principal underwriter of the John Hancock Trust, whose securities are used to fund certain Variable Investment Options under the Contracts and under other annuity and life insurance products we offer. JH Distributors' principal address is 200 Bloor Street East, Toronto, Canada M4W 1E5. It also maintains offices with us at 601 Congress Street, Boston, Massachusetts 02210. JH Distributors is a broker-dealer registered under the Securities Exchange Act of 1934 (the "1934 Act") and is a member of the Financial Industry Regulatory Authority ("FINRA," formerly the National Association of Securities Dealers, Inc., or "NASD"). We offer the Contracts for sale through broker-dealers that have entered into selling agreements with JH Distributors. Broker-dealers sell the Contracts through their registered representatives who have been appointed by us to act as our insurance agents. JH Distributors, or any of its affiliates that is registered under the 1934 Act and a member of the FINRA, may also offer the Contracts directly to potential purchasers. Signator Investors, Inc. is an affiliated broker-dealer. JH Distributors pays compensation to broker-dealers for the promotion and sale of the Contracts. The individual representative who sells you a Contract typically will receive a portion of the compensation, under the representative's own arrangement with his or her broker-dealer. Our affiliated broker-dealers may pay additional cash and non-cash incentives to their representatives for sales of the Contracts described in this Prospectus that they would not pay in connection with the sale of other Contracts issued by unaffiliated companies. A limited number of affiliated and/or non-affiliated broker-dealers may also be paid commissions or overrides to "wholesale" the Contracts, that is, to provide marketing support and training services to the broker-dealer firms that do the actual selling. We may also provide compensation to broker-dealers for providing ongoing service in relation to Contracts that have already been purchased. 59 Standard Compensation The amount and timing of compensation JH Distributors may pay to broker-dealers may vary depending on the selling agreement, but compensation with respect to Contracts sold through broker-dealers (inclusive of wholesaler overrides and expense allowances) and paid to broker-dealers is not expected to exceed, 6% of Purchase Payments. In addition, beginning one year after each Purchase Payment, JH Distributors may pay ongoing compensation at an annual rate of up to 1.20% of the values of the Contracts attributable to such Purchase Payments. The greater the amount paid by JH Distributors at the time you make a Purchase Payment, the less it will pay as ongoing compensation. This compensation is not paid directly by Contract Owners. JH Distributors pays the compensation from its assets but expects to recoup it through the fees and charges imposed under the Contract (see "VI. Charges and Deductions"). Revenue Sharing and Additional Compensation In addition to standard compensation arrangements and to the extent permitted by SEC and NASD rules and other applicable laws and regulations, we, either directly or through JH Distributors, may enter into special compensation or reimbursement arrangements ("revenue sharing") with selected firms. We determine which firms to support and the extent of the payments that are made. Under these arrangements, the form of payment may be any one or a combination of a flat fee, a percentage of the assets we hold that are attributable to Contract allocations, a percentage of sales revenues, reimbursement of administrative expenses (including ticket charges), conference fees, or some other type of compensation. We hope to benefit from these revenue sharing arrangements through increased sales of our annuity products. In consideration of these arrangements, a firm may feature the Contract in its sales system or give us preferential access to members of its sales force. In addition, the firm may agree to participate in our marketing efforts by allowing JH Distributors or its affiliates to participate in conferences, seminars or other programs attended by the firm's sales force. These arrangements may not be offered to all firms, and the terms of such arrangements may differ between firms. We provide additional information on special compensation or reimbursement arrangements, including a list of firms to whom we paid annual amounts greater than $5,000 under these arrangements in 2006, in the Statement of Additional Information (SAI), which is available upon request. Any such compensation, which may be significant at times, will not result in any additional direct charge to you by us. To the extent permitted by SEC and NASD rules and other applicable laws and regulations, selling broker dealers may receive additional payments from us, either directly or through JH Distributors and its affiliates, in the form of cash, other special compensation or reimbursement of expenses. These additional compensation or reimbursement arrangements payments may include, for example, payments in connection with the firm's "due diligence" examination of the Contracts, payments for providing conferences or seminars, sales or training programs for invited registered representatives and other employees, payments for travel expenses, including lodging, incurred by registered representatives and other employees for such seminars or training programs, seminars for the public, advertising and sales campaigns regarding the Contract, and payments to assist a firm in connection with its marketing expenses and/or other events or activities sponsored by the firms. We may contribute to, as well as sponsor, various educational programs, sales promotions contests and/or contests promotions in which participating firms and their sales persons may receive gifts and prizes such as merchandise, cash, or other awards,. as my be permitted by applicable NASD rules and other applicable laws and regulations, In an effort to promote the sale of our products, our affiliated broker-dealer may pay its registered representatives additional cash incentives such as bonus payments, expense payments, health and retirement benefits or the waiver of overhead costs or expenses in connection with the sale of the Contracts that they would not receive in connection with the sale of contracts issued by unaffiliated companies. Differential Compensation Compensation negotiated and paid by JH Distributors pursuant to a selling agreement with a broker-dealer may differ from compensation levels that the broker-dealer receives for selling other variable contracts. The compensation and revenue sharing arrangements may give us benefits such as greater access to registered representatives. In addition, under their own arrangements, broker-dealer firms may pay a portion of any amounts received from us under standard or additional compensation or revenue sharing arrangements to their registered representatives. The additional compensation and revenue sharing arrangements may give us benefits such as greater access to registered representatives. As a result, registered representatives may be motivated to sell the Contracts of one issuer over another issuer, or one product over another product. You should contact your registered representative for more information on compensation arrangements in connection with your purchase of the Contract. For sales representatives of certain affiliates, the amount of additional compensation paid is based primarily on the amount of proprietary products sold and serviced by the representative. Proprietary products are those issued by us or our affiliates. The managers who supervise these sales representatives may also be entitled to additional cash compensation based on the sale of proprietary products sold by their representatives. Because the additional cash compensation paid to these sales representatives and their managers is primarily based on sales of proprietary products, these sales representatives and their managers have an incentive to favor the sale of proprietary products over other products issued by non-affiliates. 60 You should contact your registered representative for more information on compensation arrangements in connection with the sale and purchase of your Contract. CONFIRMATION STATEMENTS We will send you confirmation statements for certain transactions in your Investment Accounts. You should carefully review these statements to verify their accuracy. You should report any mistakes immediately to our Annuities Service Center. If you fail to notify our Annuities Service Center of any mistake within 60 days of the mailing of the confirmation statement, we will deem you to have ratified the transaction. REINSURANCE ARRANGEMENTS From time to time we may utilize reinsurance as part of our risk management program. Under any reinsurance agreement, we remain liable for the contractual obligations of the Contracts' guaranteed benefits and the reinsurer(s) agree to reimburse us for certain amounts and obligations in connection with the risks covered in the reinsurance agreements. The reinsurer's contractual liability runs solely to us, and no Contract Owner shall have any right of action against any reinsurer. In evaluating reinsurers, we consider the financial and claims paying ability ratings of the reinsurer. Our philosophy is to minimize incidental credit risk. We do so by engaging in secure types of reinsurance transactions with high quality reinsurers and diversifying reinsurance counterparties to limit concentrations. Some of the benefits that may be reinsured include living benefits, guaranteed death benefits, Fixed Investment Option guarantees or other obligations. 61 Appendix A: Examples of Calculation of Withdrawal Charge EXAMPLE 1. Assume a single payment of $50,000 is made into the Contract, no transfers are made, no additional payments are made and there are no partial withdrawals. The table below illustrates four examples of the withdrawal charges that would be imposed if the Contract is completely withdrawn, based on hypothetical Contract Values. During any Contract Year the free withdrawal amount is the greater of accumulated earnings, or 10% of the total payments made under the Contract less any prior partial withdrawals in that Contract Year.
WITHDRAWAL CHARGE CONTRACT HYPOTHETICAL FREE WITHDRAWAL PAYMENTS ----------------- YEAR CONTRACT VALUE AMOUNT LIQUIDATED PERCENT AMOUNT - -------- -------------- --------------- ---------- -------- ------ 1 $55,000 $ 5,000(1) $50,000 6% $3,000 2 50,500 5,000(2) 45,500 5% 2,275 3 35,000 5,000(3) 45,000 4% 1,200 4 70,000 20,000(4) 50,000 0% 0
(1) In the first Contract Year the earnings under the Contract and 10% of payments both equal $5,000. Consequently, on total withdrawal $5,000 is withdrawn free of the withdrawal charge, the entire $50,000 payment is liquidated and the withdrawal charge is assessed against such liquidated payment (Contract Value less free withdrawal amount). (2) In the example for the second Contract Year, the accumulated earnings of $500 is less than 10% of payments, therefore the free withdrawal amount is equal to 10% of payments ($50,000 x 10% = $5,000) and the withdrawal charge is only applied to payments liquidated (Contract Value less free withdrawal amount). (3) In the example for the third Contract Year, the Contract has negative accumulated earnings ($35,000-$50,000) so the free withdrawal amount is equal to 10% of payments ($50,000 x 10%=$5,000) and the withdrawal charge is applied to total payments less the free withdrawal amount. This calculation only applies to John Hancock USA Contracts issued on or after April 1, 2003. For John Hancock USA Contracts issued prior to April 1, 2003 and for all John Hancock New York Contracts, the withdrawal charge would be applied to the lesser of the total payments or the Contract Value, less the free withdrawal amount. In this example, the payments liquidated would be $30,000 ($35,000 - $5,000). (4) There is no withdrawal charge on any payments liquidated that have been in the Contract for at least 3 years. EXAMPLE 2. Assume a single payment of $50,000 is made into the Contract, no transfers are made, no additional payments are made and there are a series of four partial withdrawals made during the second Contract Year of $2,000, $5,000, $7,000 and $8,000. The free withdrawal amount during any Contract Year is the greater of the Contract Value less the unliquidated payments (accumulated earnings), or 10% of payments less 100% of all prior withdrawals in that Contract Year.
PARTIAL FREE WITHDRAWAL CHARGE HYPOTHETICAL WITHDRAWAL WITHDRAWAL PAYMENTS ----------------- CONTRACT VALUE REQUESTED AMOUNT LIQUIDATED PERCENT AMOUNT - -------------- ---------- ---------- ---------- ------- ------- $65,000 $2,000 $15,000(1) $ 0 5% $ 0 49,000 5,000 3,000(2) 2,000 5% 100 52,000 7,000 4,000(3) 3,000 5% 150 44,000 8,000 0(4) 8,000 5% 400
(1) For the first example, accumulated earnings of $15,000 is the free withdrawal amount since it is greater than 10% of payments less prior withdrawals ($5,000-0). The amount requested ($2,000) is less than the free withdrawal amount so no payments are liquidated and no withdrawal charge applies. (2) The Contract has negative accumulate earnings ($49,000 - $50,000), so the free withdrawal amount is limited to 10% of payments less all prior withdrawals. Since $2,000 has already been withdrawn in the current Contract Year, the remaining free withdrawal amount during the third Contract Year is $3,000. The $5,000 partial withdrawal will consist of $3,000 free of withdrawal charge, and the remaining $2,000 will be subject to a withdrawal charge and result in payments being liquidated. The remaining unliquidated payments are $48,000. (3) The Contract has increased in value to 52,000. The unliquidated payments are $48,000 so the accumulated earnings are $4,000, which is greater than 10% of payments less prior withdrawals ($5,000 - $2,000 - $5,000 <0). Hence the free withdrawal amount is $4,000. Therefore, $3,000 of the $7,000 partial withdrawal will be subject to a withdrawal charge and result in payments being liquidated. The remaining unliquidated payments are $45,000. (4) The free withdrawal amount is zero since the Contract has negative accumulated earnings ($44,000 - $45,000) and the full 10% of payments ($5,000) has already been withdrawn. The full amount of $8,000 will result in payments being liquidated subject to a withdrawal charge. At the beginning of the next Contract Year the full 10% of payments would be available again for withdrawal requests during that year. A-1 Appendix B: Qualified Plan Types TRADITIONAL IRAS Individual Retirement Annuities Section 408 of the Code permits eligible individuals to contribute to an individual retirement program known as an Individual Retirement Annuity or IRA (sometimes referred to as a traditional IRA to distinguish it from the Roth IRA discussed below). IRAs are subject to limits on the amounts that may be contributed and deducted, the persons who may be eligible and on the time when distributions may commence. Also, distributions from certain other types of qualified retirement plans may be rolled over on a tax-deferred basis into an IRA. The Contract may not, however, be used in connection with an Education IRA under Section 530 of the Code. The Contract may be issued with a death benefit or certain benefits provided by an optional rider. The presence of such benefits may increase the amount of any required minimum distributions for IRAs and other Contracts subject to the required minimum distribution rules. Distributions In general, unless you have made non-deductible contributions to your IRA, all amounts paid out from a traditional IRA contract (in the form of an annuity, a single sum, death benefits or partial withdrawal), are taxable to the payee as ordinary income. As in the case of a Contract not purchased under a Qualified Plan, you may incur an additional 10% penalty tax if you make a surrender or withdrawal before you reach age 59 1/2 (unless certain exceptions apply as specified in Code section 72(t)). If you have made any non-deductible contributions to an IRA contract, all or part of any withdrawal or surrender distribution, single sum death benefit or annuity payment, may be excluded from your taxable income when you receive the distribution. The tax law requires that annuity payments under a traditional IRA contract begin no later than April 1 of the year following the year in which the Owner attains age 70 1/2. The amount that must be distributed each year is computed on the basis of the Owner's age and the value of the Contract, taking into account both the account balance and, in 2006 and subsequent years, the actuarial present value of other benefits provided under the Contract. ROTH IRAS Section 408A of the Code permits eligible individuals to contribute to a type of IRA known as a Roth IRA. Roth IRAs are generally subject to the same rules as non-Roth IRAs, but they differ in certain respects. Among the differences are that contributions to a Roth IRA are not deductible and qualified distributions from a Roth IRA are excluded from income. A qualified distribution is a distribution that satisfies two requirements. First, the distribution must be made in a taxable year that is at least five years after the first taxable year for which a contribution to any Roth IRA established for the Owner was made. Second, the distribution must be: - made after the Owner attains age 59 1/2; - made after the Owner's death; - attributable to the Owner being disabled; or - a qualified first-time homebuyer distribution within the meaning of Section 72(t)(2)(F) of the Code. In addition, distributions from Roth IRAs need not commence when the Owner attains age 70 1/2. A Roth IRA may (subject to constraints explained below under "Conversion or Direct Rollover to a Roth IRA") accept a "qualified rollover contribution" from another Roth IRA, a traditional IRA, a qualified retirement plan described in Section 401(a) or 403(a) of the Code, a tax-sheltered annuity contract described in Section 403(b) of the Code, or an eligible deferred compensation plan maintained by a governmental employer under Section 457(b) of the Code. If the Contract is issued with certain death benefits or benefits provided by an optional rider, the presence of these benefits may increase the amount of any required minimum distributions for IRAs (which include Roth IRAs) and other Contracts subject to the minimum distribution rules. Also, the state tax treatment of a Roth IRA may differ from the Federal income tax treatment of a Roth IRA. YOU SHOULD SEEK INDEPENDENT TAX ADVICE IF YOU INTEND TO USE THE CONTRACT IN CONNECTION WITH A ROTH IRA. Conversion or Direct Rollover to a Roth IRA You can convert a traditional IRA to a Roth IRA or, beginning in 2008, directly roll over distributions that you receive from a retirement plan described in Sections 401(a), 403(a), or 403(b) of the Code or a governmental deferred compensation plan described in Section 457(b) of the Code to a Roth IRA unless: - you have adjusted gross income over $100,000; or - you are a married taxpayer filing a separate return. B-1 The Roth IRA annual contribution limit does not apply to converted or rollover amounts. You must, however, pay tax on any portion of the converted or rollover amount that would have been taxed if you had not converted or rolled over to a Roth IRA. No similar limitations apply to rollovers from one Roth IRA to another Roth IRA. Please note that the amount deemed to be the "converted amount" for tax purposes may be higher than the Contract Value because of the deemed value of guarantees. If the converted or rollover amount is held in an annuity contract issued by us, we may have to withhold (make a contract withdrawal and remit to the IRS) up to 20% of the taxable gain in the contract. This amount withheld could reduce the benefit value of any elected optional guarantee rider, in a proportion determined by the rider. You may find it advantageous to pay the tax due on the conversion from resources outside of the annuity contract in order to avoid any benefit reduction. YOU SHOULD SEEK INDEPENDENT TAX ADVICE IF YOU INTEND TO USE THE CONTRACT IN CONNECTION WITH A ROTH IRA. SIMPLE IRA PLANS In general, under Section 408(p) of the Code a small business employer may establish a SIMPLE IRA retirement plan if the employer employed no more than 100 employees earning at least $5,000 during the preceding year. Under a SIMPLE IRA plan both employees and the employer make deductible contributions. SIMPLE IRAs are subject to various requirements, including limits on the amounts that may be contributed, the persons who may be eligible, and the time when distributions may commence. If the Contract is issued with certain death benefits or benefits provided by an optional rider, the presence of these benefits may increase the amount of any required minimum distributions for IRAs (which would include SIMPLE IRAs) and other Contracts subject to the minimum distribution rules. The requirements for minimum distributions from a SIMPLE IRA retirement plan are generally the same as those discussed above for distributions from a traditional IRA. The rules on taxation of distributions are also similar to those that apply to a traditional IRA, except that (i) tax free rollovers may be made from a SIMPLE IRA plan only to another SIMPLE IRA plan during the first two years of participation in the plan; and (ii) the penalty tax on early distribution from a SIMPLE IRA plan that occurs during the first two years of participation is 25%, instead of 10%. EMPLOYERS INTENDING TO USE THE CONTRACT IN CONNECTION WITH SUCH PLANS SHOULD SEEK INDEPENDENT TAX ADVICE. SIMPLIFIED EMPLOYEE PENSIONS (SEP-IRAS) Section 408(k) of the Code allows employers to establish simplified employee pension plans for their employees, using the employees' IRAs for such purposes, if certain criteria are met. Under these plans the employer may, within specified limits, make deductible contributions on behalf of the employees to IRAs. If the Contract is issued with certain death benefits or benefits provided by an optional rider, the presence of these benefits may increase the amount of any required minimum distributions for IRAs (which would include SEP-IRAs) and other Contracts subject to the minimum distribution rules. The requirements for minimum distributions from a SEP-IRA, and rules on taxation of distributions from a SEP-IRA, are generally the same as those discussed above for distributions from a traditional IRA. TAX-SHELTERED ANNUITIES Section 403(b) of the Code permits public school employees and employees of certain types of tax-exempt organizations to have their employers purchase annuity contracts for them and, subject to certain limitations, to exclude the Purchase Payments from gross income for tax purposes. These Contracts are commonly referred to as "tax-sheltered annuities." PURCHASERS OF THE CONTRACTS FOR SUCH PURPOSES SHOULD SEEK COMPETENT ADVICE AS TO ELIGIBILITY, LIMITATIONS ON PURCHASE PAYMENTS, AND OTHER TAX CONSEQUENCES. In particular, purchasers should note that the Contract provides death benefit options that may exceed the greater of the Purchase Payments and Contract Value. It is possible that the presence of the death benefit could be characterized by the IRS as an "incidental death benefit" and result in currently taxable income to the Owner. There also are limits on the amount of incidental benefits that may be provided under a tax-sheltered annuity. If a Contract is issued with a death benefit or benefits provided by an optional rider, the presence of these benefits may increase the amount of any required minimum distributions that must be made. Tax-sheltered annuity contracts must contain restrictions on withdrawals of: - contributions made pursuant to a salary reduction agreement in years beginning after December 31, 1988; - earnings on those contributions; and - earnings after 1988 on amounts attributable to salary reduction contributions (and earnings on those contributions) held as of the last day of 1988. These amounts can be paid only if the employee has reached age 59 1/2, separated from service, died, or become disabled (within the meaning of the tax law), or in the case of hardship (within the meaning of the tax law). Amounts permitted to be distributed in the event of hardship are limited to actual contributions for elective contributions made after 1988; earnings thereon cannot be distributed on account of hardship. Amounts subject to the withdrawal restrictions applicable to Section 403(b)(7) custodial accounts may be subject to more stringent restrictions. (These limitations on withdrawals do not apply to the extent we are directed to transfer some or all of the Contract Value to the issuer of another tax-sheltered annuity or into a Section 403(b)(7) custodial account). B-2 CORPORATE AND SELF-EMPLOYED ("H.R. 10" AND "KEOGH") PENSION AND PROFIT-SHARING PLANS Sections 401(a) and 403(a) of the code permit corporate employers to establish various types of tax-deferred retirement plans for employees. The Self-Employed Individuals' Tax Retirement Act of 1962, as amended, commonly referred to as "H.R. 10" or "Keogh", permits self-employed individuals to establish tax-favored retirement plans for themselves and their employees. Such retirement plans may permit the purchase of annuity contracts in order to provide benefits under the plans. The Contract provides death benefit options that in certain circumstances may exceed the greater of the Purchase Payments and Contract Value. It is possible that the presence of the death benefit could be characterized by the IRS as an "incidental death benefit" and result in currently taxable income to the participant. There also are limits on the amount of incidental benefits that may be provided under pension and profit sharing plans. If the Contract is issued with certain death benefits or benefits provided under an optional rider, the presence of these benefits may increase the amount of any required minimum distributions that must be made. Employers intending to use the Contract in connection with such plans should seek independent advice. Minimum distribution to the employee under an employer's pension and profit sharing plan qualified under Section 401(a) of the Code must begin no later than April 1 of the year following the calendar year in which the employee reaches age 70 1/2 or, if later, retires. In the case of an employee who is a 5 percent owner as defined in Code section 416, the required beginning date is April 1 of the year following the calendar year in which employee reaches age 70 1/2. DEFERRED COMPENSATION PLANS OF STATE AND LOCAL GOVERNMENTS AND TAX-EXEMPT ORGANIZATIONS Section 457 of the Code permits employees of state and local governments and tax-exempt organizations to defer a portion of their compensation without paying current taxes. The employees must be participants in an eligible deferred compensation plan. Generally, a Contract purchased by a state or local government or a tax-exempt organization will not be treated as an annuity contract for Federal income tax purposes. A Section 457 plan must satisfy several conditions, including the requirement that it must not permit distributions prior to your separation from service (except in the case of an unforeseen emergency). When we make payments under your Contract, the payment is taxed as ordinary income. Minimum distributions under a Section 457 plan must begin no later than April 1 of the year following the year in which the employee reaches age 70 1/2 or, if later, retires. B-3 Appendix C: Optional Enhanced Death Benefits This Appendix provides a general description of the optional enhanced death benefit Riders that may have been available at the time you purchased a Venture III Contract. If you purchased an optional enhanced death benefit Rider, you will pay the charge shown in the Fee Tables for that benefit as long as it is in effect. YOU SHOULD CAREFULLY REVIEW YOUR CONTRACT, INCLUDING ANY ATTACHED RIDERS, FOR COMPLETE INFORMATION ON BENEFITS, CONDITIONS AND LIMITATIONS OF ANY ENHANCED DEATH BENEFIT RIDERS APPLICABLE TO YOUR CONTRACT. You should also carefully review the "VII. Federal Tax Matters" section of the Prospectus for information about optional benefit Riders. The following is a list of the various optional enhanced death benefit Riders that you may have had available to you at issue. Not all Riders were available at the same time or in all states. 1. Annual Step Death Benefit 2. Guaranteed Earning Multiplier Death Benefit - Not offered in New York or Washington 3. Triple Protection Death Benefit - Not offered in New York or Washington ANNUAL STEP DEATH BENEFIT If you elected the optional Annual Step Death Benefit, we impose an additional daily charge at any annual rate of 0.20% of the value of the variable Investment Accounts. If you purchased the Annual Step Death Benefit Rider from John Hancock USA prior to May 5, 2003 or from John Hancock New York prior to August 1, 2005, however, the fee for this benefit is 0.05%. You could elect this optional benefit only at the time we issued your Contract, if the Rider was then available for sale in your state. Once you elect this benefit, it is irrevocable. Under this benefit, if the Owner dies before the Contract's Maturity Date, we will pay an "Annual Step Benefit" to your Beneficiary if it is greater than the death benefit under your Contract. (The death benefit paid under the Annual Step Benefit replaces a lower death benefit under the terms of the Contract.) The Annual Step Death Benefit is the greatest "Anniversary Value" after the effective date of the Annual Step Death Benefit but prior to the oldest Owner's 81st birthday. The Anniversary Value is equal to the Contract Value on the last day of the Contract Year, plus any Purchase Payments you have made since that anniversary, MINUS amounts we deduct for any withdrawals you have taken (and any related withdrawal charges) since that anniversary. We deduct amounts in connection with partial withdrawals on a pro rata basis by multiplying the Annual Step Death Benefit payable prior to the withdrawal, by the ratio of the partial withdrawal amount divided by the Contract Value prior to the partial withdrawal. If the Beneficiary under the Contract is the Contract Owner's surviving spouse and elects to continue the Contract, the optional Annual Step Death Benefit will continue with the surviving spouse as the new Contract Owner. For purposes of calculating the optional Annual Step Death Benefit payable upon the death of the surviving spouse, we treat the death benefit paid upon the first Owner's death as a payment to the Contract. This payment will not be included in cumulative payments. In addition, we will not consider payments made and all amounts deducted in connection with partial withdrawals prior to the date of the first Owner's death in the determination of the Annual Step Death Benefit for the surviving spouse. We also set all Anniversary Values to zero for Contract Anniversaries prior to the date of the first Owner's death. TERMINATION OF THE ANNUAL STEP DEATH BENEFIT. The Annual Step Death Benefit will terminate upon the earliest to occur of (a) the date the Contract terminates, (b) the Maturity Date; or (c) the date on which the Annual Step Death Benefit is paid. However, as noted in the paragraph above, if the deceased Owner's spouse is the Beneficiary, the spouse may elect to continue the Contract (including The Annual Step Death Benefit) as the new Owner. QUALIFIED RETIREMENT PLANS. If you intend to use your Contract in connection with a qualified retirement plan, including an IRA, you should consider the effects that the death benefit provided under the Contract (with or without Annual Step Death Benefit) may have on your plan (see Appendix B: "Qualified Plan Types"). Please consult your tax advisor. THE CONTINUATION OF THE OPTIONAL ANNUAL STEP DEATH BENEFIT TO AN EXISTING CONTRACT FOR A SURVIVING SPOUSE MAY NOT ALWAYS BE IN YOUR INTEREST SINCE AN ADDITIONAL FEE IS IMPOSED FOR THIS BENEFIT. C-1 GUARANTEED EARNINGS MULTIPLIER (Not available in New York and Washington) If you elected the optional Guaranteed Earnings Multiplier benefit, we impose an additional daily charge at an annual rate of 0.20% of the value of each variable Investment Account. With this benefit, on the death of any Contract Owner prior to the Maturity Date, we will pay the death benefit otherwise payable under the Contract plus the benefit payable under Guaranteed Earnings Multiplier. Election of Guaranteed Earnings Multiplier may only be made at issue, is irrevocable, and it may only be terminated as described below. Subject to the maximum amount described below, Guaranteed Earnings Multiplier provides a payment equal to 40% of the appreciation in the Contract Value (as defined below) upon the death of any Contract Owner if the oldest Owner is 69 or younger at issue, and 25% if the oldest Owner is 70 or older at issue. The appreciation in the Contract Value is defined as the Contract Value less the sum of all Purchase Payments, reduced proportionally by any amount deducted in connection with partial withdrawals. The death benefit will also be reduced by the amount of any Unpaid Loans under a Contract in the case of Qualified Contracts. If the oldest Owner is 69 or younger at issue, the maximum amount of the Guaranteed Earnings Multiplier benefit is equal to 40% of the sum of all Purchase Payments, less any amounts deducted in connection with partial withdrawals. If the oldest Owner is 70 or older at issue, the maximum amount of the Guaranteed Earnings Multiplier benefit is equal to 25% of the sum of all Purchase Payments, less any amounts deducted in connection with partial withdrawals. We deduct amounts in connection with partial withdrawals on a pro rata basis by multiplying the Guaranteed Earnings Multiplier benefit payable prior to the withdrawal, by the ratio of the partial withdrawal amount divided by the Contract Value prior to the partial withdrawal. If the Beneficiary under the Contract is the deceased Owner's spouse and elects to continue the Contract, Guaranteed Earnings Multiplier will continue with the surviving spouse as the new Contract Owner. In this case, upon the death of the surviving spouse prior to the Maturity Date, a second Guaranteed Earnings Multiplier benefit will be paid and the entire interest in the Contract must be distributed to the new Beneficiary. For purposes of calculating the Guaranteed Earnings Multiplier benefit payable on the death of the surviving spouse, the Guaranteed Earnings Multiplier benefit will be equal to zero on the date of the first Contract Owner's death and the Guaranteed Earnings Multiplier benefit payable upon the first Contract Owner's death will be treated as a Purchase Payment. In addition, all Purchase Payments made, and all amounts deducted in connection with partial withdrawals prior to the date of the first Contract Owner's death, will not be considered in determining the Guaranteed Earnings Multiplier benefit. TERMINATION OF GUARANTEED EARNINGS MULTIPLIER. Guaranteed Earnings Multiplier will terminate upon the earliest to occur of (a) the date the Contract terminates, (b) the Maturity Date; or (c) the date on which the Guaranteed Earnings Multiplier benefit is paid. However, as noted in the paragraph above, if the deceased Owner's spouse is the Beneficiary, the spouse may elect to continue the Contract (including Guaranteed Earnings Multiplier) as the new Owner. QUALIFIED RETIREMENT PLANS. If you intend to use your Contract in connection with a qualified retirement plan, including an IRA, you should consider the effects that the death benefit provided under the Contract (with or without Guaranteed Earnings Multiplier) may have on your plan (see Appendix B: "Qualified Plan Types"). Please consult your tax advisor. THE ELECTION OF GUARANTEED EARNINGS MULTIPLIER ON A CONTRACT MAY NOT ALWAYS BE IN YOUR INTEREST SINCE AN ADDITIONAL FEE IS IMPOSED FOR THIS BENEFIT. TRIPLE PROTECTION DEATH BENEFIT (Not available in New York or Washington) If you elected the optional Triple Protection Death Benefit, we impose an additional annual fee of 0.50% (as a percentage of the Triple Protection Death Benefit). The Triple Protection Death Benefit was available for Contracts issued between December 8, 2004 and December 31, 2004. If you elected Triple Protection Death Benefit, it is irrevocable and you may only change the Owner of your Contract to an individual that is the same age or younger than the oldest current Owner. Under this benefit, if the Owner dies before the Contract's date of maturity, the Triple Protection Death Benefit replaces any death benefit payable under the terms of your Contract. The Triple Protection Death Benefit is equal to an "Enhanced Earnings Death Benefit Factor" plus the greatest of: - the Contract Value; - the Return of Purchase Payments Death Benefit Factor; - the Annual Step Death Benefit Factor; or - the Graded Death Benefit Factor. C-2 We deduct any Debt under your Contract from the amount described above. ENHANCED EARNINGS DEATH BENEFIT FACTOR. For purposes of the Triple Protection Death Benefit, the Enhanced Earnings Death Benefit factor is equal to 50% multiplied by Earnings, as defined under the Enhanced Earnings Death Benefit Factor calculation of the Triple Protection Death Benefit Rider. For purposes of the Enhanced Earnings Death Benefit Factor calculation, Earnings is equal to the Contract Value minus the Earnings Basis. The Earnings Basis is equal to 150% of each Purchase Payment made less the sum of all Withdrawal Reductions in connection with partial withdrawals. The maximum Enhanced Earnings Death Benefit Factor is equal to 100% of the Earnings Basis. EXAMPLE. Assume you make a single Purchase Payment of $100,000 into the Contract, you make no additional Purchase Payments and you take no partial withdrawals. Also assume the Contract Value is equal to $175,000 on the date we determine the Triple Protection Death Benefit. Based on these assumptions: - The "Earnings Basis" is equal to 150% of $100,000, or $150,000. - "Earnings" is equal to $175,000 minus $150,000, or $25,000. - The "Enhanced Earnings Death Benefit" Factor is equal to 50% of $25,000, or $12,500. NOTE THAT FOR PURPOSES OF THE TRIPLE PROTECTION DEATH BENEFIT, "EARNINGS" WILL ALWAYS BE LESS THAN THE EXCESS OF CONTRACT VALUE OVER PURCHASE PAYMENTS. In this example, "Earnings" is less than $75,000 (or $175,000 minus $100,000). RETURN OF PURCHASE PAYMENTS DEATH BENEFIT FACTOR. The Return of Purchase Payments Death Benefit Factor is equal to the sum of all Purchase Payments made less the sum of all Withdrawal Reductions in connection with partial withdrawals. ANNUAL STEP DEATH BENEFIT FACTOR. For purposes of the Triple Protection Death Benefit, the Annual Step Death Benefit Factor is equal to the greatest Anniversary Value since the effective date of the Triple Protection Death Benefit Rider but prior to the oldest Owner's attained age 81. The Anniversary Value is equal to the Contract Value on a Contract Anniversary increased by all Purchase Payments made, less Withdrawal Reductions in connection with partial withdrawals since that Contract Anniversary. GRADED DEATH BENEFIT FACTOR. For purposes of the Triple Protection Death Benefit, the Graded Death Benefit Factor is equal to (1) minus (2) where: (1) is equal to the sum of each Purchase Payment multiplied by the applicable Payment Multiplier obtained from the table below:
NUMBER OF COMPLETE YEARS PAYMENT HAS BEEN IN CONTRACT PAYMENT MULTIPLIER(1) - ---------------------------- --------------------- 0 100% 1 110% 2 120% 3 130% 4 140% 5 150%
(1) If a Purchase Payment is received on or after the oldest Owner's attained age 71, the Payment Multiplier equals 100% in all years. Thus, for Purchase Payments made on or after the oldest Owner reaches attained age 71, the benefit provided by the Graded Death Benefit Factor is equal to the benefit provided by the Return of Purchase Payments Death Benefit Factor. (2) is equal to the sum of Withdrawal Reductions in connection with partial withdrawals taken. Withdrawal Reductions are recalculated each time the Graded Death Benefit Factor is recalculated, based on Purchase Payment and withdrawal history. The Graded Death Benefit Factor will never be greater than Purchase Payments less the sum of all Withdrawal Reductions in connection with partial withdrawals taken plus $250,000. THE TRIPLE PROTECTION DEATH BENEFIT FACTORS ARE SEPARATE AND DISTINCT FROM SIMILARLY NAMED TERMS, SUCH AS "ANNUAL STEP DEATH BENEFIT" THAT MAY BE CONTAINED IN OTHER OPTIONAL BENEFIT RIDERS. THE OTHER OPTIONAL BENEFIT RIDERS IMPOSE SEPARATE OPTIONAL RIDER CHARGES AND THEIR BENEFITS AND LIMITATIONS MAY BE DIFFERENT. WITHDRAWAL REDUCTIONS. If total partial withdrawals taken during a Contract Year are less than or equal to 5% of total Purchase Payments (the "Annual Withdrawal Limit"), then the Withdrawal Reductions reduce the appropriate value by the dollar amount of each partial withdrawal. Otherwise, Withdrawal Reductions reduce the appropriate value by the percentage reduction in the Contract Value attributed to the amount of each partial withdrawal. C-3 The guaranteed death benefits provided by Triple Protection Death Benefit are adjusted at the point of each partial withdrawal but may be recalculated if subsequent partial withdrawals are taken within the same Contract Year. For example, if a withdrawal causes total partial withdrawals taken during that Contract Year to exceed 5% the Annual Withdrawal Limit, then all previous Withdrawal Reductions in that Contract Year will be recalculated and will reduce the appropriate value proportionately. If a subsequent Purchase Payment is made, then the Annual Withdrawal Limit will increase potentially resulting in a recalculation of previous Withdrawal Reductions within the same Contract Year. DETERMINATION AND DISTRIBUTION OF TRIPLE PROTECTION DEATH BENEFIT. We determine the death benefit paid under Triple Protection Death Benefit as of the date our Annuities Service Center receives written notice and proof of death and all required forms in good order. If the Beneficiary is the deceased Owner's spouse, and the Triple Protection Death Benefit is not taken in one sum under our current administrative practices, the Contract and the Triple Protection Death Benefit Rider will continue with the surviving spouse as the new Owner. Upon the death of the surviving spouse prior to the Maturity Date, a second Triple Protection Death Benefit will be paid and the entire interest in the Contract must be distributed to the new Beneficiary in accordance with the provisions of the Contract. For purposes of calculating the second Triple Protection Death Benefit, payable upon the death of the surviving spouse: - The Triple Protection Death Benefit paid upon the first Owner's death ("first Triple Protection Death Benefit") is not treated as a Purchase Payment to the Contract. - In determining the Enhanced Earnings Death Benefit Factor, on the date the first Triple Protection Death Benefit was paid, the Earnings Basis is reset to equal the first Triple Protection Death Benefit. The Earnings Basis will be increased for any Purchase Payments made and decreased for any Withdrawal Reductions in connection with partial withdrawals taken after the date the first Triple Protection Death Benefit was paid. All Purchase Payments made and all amounts deducted in connection with partial withdrawals prior to the date the first Triple Protection Death Benefit was paid will not be considered in the determination of the Enhanced Earnings Death Benefit Factor. - In determining other elements of the death benefit calculation (described above as (b) the Return of Purchase Payments Death Benefit Factor; (c) the Annual Step Death Benefit Factor; and (d) the Graded Death Benefit Factor), all Purchase Payments and all withdrawals before and after the date the first Triple Protection Death Benefit was paid will be considered. INVESTMENT OPTIONS. At the current time, there are no additional Investment Option restrictions imposed when the Triple Protection Death Benefit Rider is chosen. WE RESERVE THE RIGHT TO RESTRICT INVESTMENT OPTIONS AT ANY TIME. WE WILL NOTIFY YOU IN WRITING AT LEAST 30 DAYS PRIOR TO RESTRICTING AN INVESTMENT OPTION. If an Investment Option is restricted, no transfers into the restricted Investment Options will be allowed and no new Purchase Payments may be allocated to the restricted Investment Options after the date of the restriction. Any amounts previously allocated to an Investment Option that is subsequently restricted will be unaffected by such restriction. Any amount previously allocated to Fixed Investment Options may be renewed subject to terms of the Contract. TERMINATION OF TRIPLE PROTECTION DEATH BENEFIT RIDER. The Owner may not terminate the Triple Protection Death Benefit Rider. However, Triple Protection Death Benefit will terminate automatically upon the earliest of: - the date the Contract terminates; - the Maturity Date; or - the later of the date on which the Triple Protection Death Benefit is paid, or the date on which the second Triple Protection Death Benefit is paid, if the Contract and Triple Protection Death Benefit Rider are continued by the surviving spouse after the death of the original Owner. DETERMINATION OF TRIPLE PROTECTION DEATH BENEFIT FEE. Prior to termination of the Triple Protection Death Benefit Rider, on each Contract Anniversary, the Triple Protection Death Benefit fee is calculated by multiplying 0.50% by the Triple Protection Death Benefit payable had death occurred on that Contract Anniversary. On each Contract Anniversary, the Triple Protection Death Benefit fee is withdrawn from each Investment Option in the same proportion that the value of the Investment Account of each Investment Option bears to the Contract Value. If there is a full withdrawal on any date other than a Contract Anniversary, we will deduct a pro rata portion of the Triple Protection Death Benefit fee from the amount paid upon withdrawal. The Triple Protection Death Benefit fee will be determined based on the Triple Protection Death Benefit that would have been payable had death occurred immediately prior to the full withdrawal. For purposes of determining the Triple Protection Death Benefit fee, the commencement of annuity payments shall be treated as a total withdrawal. QUALIFIED RETIREMENT PLANS. If you intend to use your Contract in connection with a qualified retirement plan, including an IRA, you should consider the effects that the death benefit provided under the Contract (with or without Triple Protection Death Benefit) may have on your plan (see Appendix B: "Qualified Plan Types"). Please consult your tax advisor. C-4 Appendix D: Optional Guaranteed Minimum Withdrawal Benefits You may have elected to purchase optional benefits when you purchase a Contract. If available in your state, you may have selected one of the following "guaranteed minimum withdrawal benefit" Riders: - Income Plus for Life - Income Plus for Life - Joint Life - Principal Plus - Principal Plus for Life - Principal Plus for Life Plus Automatic Annual Step-up - Principal Plus for Life Plus Spousal Protection - Principal Returns If you purchased any of these optional guaranteed minimum withdrawal benefit Riders, you will pay the charge shown in the Fee Tables for that benefit as long as it is in effect. These Riders were not available at all times we offered a Contract, nor were they available in all states. Where available, we only permitted one guaranteed minimum withdrawal benefit Rider to be purchased per Contract. You should review your Contract carefully to determine which of these optional benefit Riders, if any, you purchased. These Riders cannot be revoked once elected. You also may have elected an optional Enhanced Death Benefit Rider or a Guaranteed Minimum Income Benefit Rider. We describe each of these optional benefit Riders in the Appendices C and E, respectively. GUARANTEED MINIMUM WITHDRAWAL BENEFIT RIDER DEFINITIONS We use the definitions that follow to describe how our guaranteed minimum withdrawal benefit ("GMWB") Riders work. Please see the separate sections on each Rider for additional details on defined terms. AGE 65 CONTRACT ANNIVERSARY means the Contract Anniversary on, or next following, the date the older Owner attains age 65. AGE 95 CONTRACT ANNIVERSARY means the Contract Anniversary on, or next following, the date the Covered Person attains age 95 under each of the GMWB Riders except Income Plus for Life-Joint Life, Principal Plus for Life Plus Spousal Protection and Principal Plus, where it means the older Owner attains age 95. BENEFIT BASE means a value we use to determine the Lifetime Income Amount with the Income Plus for Life and Income Plus for Life - Joint Life Riders; please refer to the separate sections on those Riders. BONUS or LIFETIME INCOME BONUS means an increase in the Benefit Base on each Contract Anniversary during one or more "Lifetime Income Bonus Periods." In certain marketing materials, the Bonus may be referred to as the "Deferral Credit." These terms are further defined in each of the separate GMWB Rider sections (except Principal Returns); please refer to these sections. BONUS PERIOD (applicable to all GMWB Riders except certain Principal Plus for Life Contracts, Principal Plus for Life Plus Automatic Annual Step-up and Principal Returns) or LIFETIME INCOME BONUS PERIOD (applicable only to Income Plus for Life Series Riders) means: - initially, the first 10 Contract Years; - each time a Step-up occurs, the Bonus Period extends to the lesser of: (a) 10 years from a Step-up Date; or (b) the Age 95 Contract Anniversary. For Principal Plus, the Bonus Period is the first five Contract Years. Initially, for Principal Plus for Life and Principal Plus for Life Plus Automatic Annual Step-up it was the lesser of the first ten Contract Years or each Contract Year up to the Contract Year when the Covered Person attains age 80. COVERED PERSON is defined in each of the separate GMWB Rider sections (except Principal Returns); please refer to these sections. EXCESS WITHDRAWAL is defined in each of the separate GMWB Rider sections (except Principal Returns); please refer to these sections. FIRST YEAR PURCHASE PAYMENTS applies only to Principal Returns; please refer to the separate section on that Rider. GUARANTEED WITHDRAWAL AMOUNT (for Principal Plus, Principal Plus for Life, Principal Plus for Life Plus Automatic Annual Step-up, Principal Plus for Life Plus Spousal Protection and Principal Returns) means generally the amount we guarantee to be available D-1 each Contract Year for withdrawal during the Accumulation Period until the Guaranteed Withdrawal Balance is depleted. For details applicable to each of these Riders, please refer to the separate Rider sections. GUARANTEED WITHDRAWAL BALANCE (for Principal Plus, Principal Plus for Life, Principal Plus for Life Plus Automatic Annual Step-up, Principal Plus for Life Plus Spousal Protection and Principal Returns) means generally the total amount we guarantee to be available for future periodic withdrawals during the Accumulation Period. For details applicable to each of these Riders, please refer to the separate Rider sections. LIFETIME INCOME AMOUNT (for all GMWB Riders except Principal Plus and Principal Returns) means generally the amount we guarantee to be available each Contract Year for withdrawal during the Accumulation Period after the date you purchased the Rider (or the Lifetime Income Date, if later). For details applicable to each of these Riders, please refer to the separate Rider sections. LIFETIME INCOME DATE (for all GMWB Riders except Principal Plus and Principal Returns) means generally the date on which we determine the Lifetime Income Amount. For details applicable to each of these Riders, please refer to the separate Rider sections. RESET means a reduction in GMWB values due to Excess Withdrawals. The term is further defined in each of the separate GMWB Rider sections; please refer to these sections. STEP-UP means an increase in GMWB values. The term is further defined in each of the separate GMWB Rider sections; please refer to these sections. STEP-UP DATE means the date on which we determine whether a Step-up could occur. OVERVIEW OF GUARANTEED MINIMUM WITHDRAWAL BENEFIT RIDERS Each of our guaranteed minimum withdrawal benefit Riders provides a guaranteed minimum withdrawal benefit during the Accumulation Period. In particular, these Riders (except for Principal Plus and Principal Returns, which are described below) will permit you to withdraw a minimum annual amount, for as long as a Covered Person lives, subject to the terms and conditions of the specific Rider you elected. We may have determined the amount of the initial guarantee after we issued your Contract, depending on the age of the Covered Person when we issued the Contract and the type of guaranteed minimum withdrawal benefit you purchased. We may increase the guarantee: - by a Bonus or "Target Amount" adjustment (see "Target Amount" on page D-13 for Income Plus for Life and page D-18 for Income Plus for Life - Joint Life) if you make no withdrawals during certain Contract Years, up to limits that vary by Rider; - as a result of a Step-up of the guarantee to reflect your then current Contract Value on certain Contract Anniversary dates; or - if you make an Additional Purchase Payment up to specified limits. Our Principal Plus and Principal Returns Riders guarantee the return of your Purchase Payments in the Contract, regardless of market performance, as long as you limit your withdrawals to a Guaranteed Withdrawal Amount each year, beginning on the date you purchased the Rider. In addition, when you purchased a Principal Returns Rider, we guaranteed that your Contract Value at the end of the first 10 Contract Years will not be less than the greater of (a) the amount of your First Year Purchase Payments up to $5 million or (b) your Contract Value plus the sum of all Principal Returns Rider fees paid to date, as long as you take no withdrawals of Contract Value during the first 10 Contract Years (see "Principal Returns" below). Although these Riders guarantee a minimum annual withdrawal amount, you may take withdrawals of any amount of Contract Value during your Contract's Accumulation Period. If you take withdrawals for more than the annual amount permitted under the terms of the Rider you select, however, we may Reset the guaranteed minimum amount. For the Principal Returns Rider, if you take withdrawals during the first 10 Contract Years, you will no longer be eligible for our tenth year Accumulation Benefit. Availability You were permitted to elect a guaranteed minimum withdrawal benefit rider at the time you purchased a Contract, provided: - the Rider was available for sale in the state where the Contract was sold; - you limited your investment of Purchase Payments and Contract Value to the Investment Options we made available with the Rider; and - you (and any other Covered Person) complied with the age restrictions we may have imposed for the Rider (not applicable to Principal Plus). Please contact the John Hancock Annuities Service Center at 1-800-344-1029 (in NY: 1-800-551-2078) for additional information on availability. We offer these optional benefit Riders only where approved by local state insurance regulatory agencies. D-2 We reserve the right to accept or refuse to issue any guaranteed minimum withdrawal benefit Rider at our sole discretion. Once you elect a guaranteed minimum withdrawal benefit Rider, its effective date usually will be the Contract Date (unless we permit otherwise) and it is irrevocable. We charge an additional fee for each Rider that differs by Rider. AGE RESTRICTIONS. We did not make the Income Plus for Life, Principal Plus (for Qualified Contracts), Principal Plus for Life, Principal Plus for Life Plus Automatic Annual Step-up, or Principal Returns Riders available if you were age 81 or older at the time you purchased your Contract. If you elected an Income Plus for Life - Joint Life or Principal Plus for Life Plus Spousal Protection Rider, the older of you and your spouse must not have been age 81 or older (and must both have qualified as Covered Persons). Also, for Principal Plus for Life Plus Spousal Protection, both you and your spouse must have been at least 65 or, if not, you must have birthdates less than 6 years apart from each other. For example: Assume you purchased a Contract on NOVEMBER 1, 2006 and wanted to elect the Principal Plus for Life Plus Spousal Protection Rider. EXAMPLE #1 You are born JULY 1, 1941 and your spouse is born JUNE 1, 1947. - Since your birthdates are 5 YEARS AND 11 MONTHS apart, YOU MAY elect the Principal Plus for Life Plus Spousal Protection Rider when you purchase your Contract. EXAMPLE #2 You are born JULY 1, 1941 and your spouse is born AUGUST 1, 1947. - Since your birthdates are 6 YEARS AND 1 MONTH apart, YOU MAY NOT elect the Principal Plus for Life Plus Spousal Protection Rider. ADDITIONAL AVAILABILITY OF GUARANTEED MINIMUM WITHDRAWAL BENEFIT RIDERS. You may elect to exchange an existing guaranteed minimum withdrawal benefit Rider to your Contract for another optional guaranteed minimum withdrawal benefit Rider after you purchase a Contract. Please see Appendix F: "Additional Availability of Guaranteed Minimum Withdrawal Benefit Riders" for details. Purchase Payments RESTRICTIONS ON CONTRACTS WITH GUARANTEED MINIMUM WITHDRAWAL BENEFIT RIDERS. If you purchased a guaranteed minimum withdrawal benefit Rider, we restrict your ability to make Additional Purchase Payments to the Contract. You must obtain our prior approval if the Contract Value immediately following an Additional Purchase Payment would exceed $1 million. We do not permit Additional Purchase Payments during a Rider's "Settlement Phase" (see "Settlement Phase" in each separate GMWB Rider section below). Other limitations on additional payments may vary by state. Special Purchase Payment limits on "Non-Qualified" Contracts. If we issued your Contract not in connection with an IRA or other tax-qualified retirement plan, we also impose the following limit on your ability to make Purchase Payments: - on or after the first Contract Anniversary, without our prior approval, we will not accept an Additional Purchase Payment if your total payments after the first Contract Anniversary exceed $100,000. Special Purchase Payment limits on "Qualified" Contracts (not applicable to Principal Plus, which applies Non-Qualified Contract limits to Qualified Contracts). If we issued your Contract in connection with a tax qualified retirement plan, including an IRA, we also impose additional limits on your ability to make Purchase Payments: - on and after the Age 65 Contract Anniversary (or after the first Contract Anniversary if we issue your Contract after you become Age 65), without our prior approval, we will not accept an Additional Purchase Payment if your total payments after the first Contract Anniversary exceed $100,000; - for the year that you become age 70 1/2 and for any subsequent years, if we issue your Contract in connection with an IRA, we will only accept a Purchase Payment that qualifies as a "rollover contribution"; but - we will not accept any Purchase Payment after the oldest Owner becomes age 81. You should consult with a qualified tax advisor regarding your guaranteed minimum withdrawal benefit Rider for further information on tax rules affecting Qualified Contracts, including IRAs. General right of refusal. We reserve the right to refuse to accept Additional Purchase Payments at any time after the first Contract Anniversary to the extent permitted in the state we issued your Contract. We do not reserve this right of refusal for Additional Purchase Payments before the Age 65 Contract Anniversary that are permitted to Contracts issued in connection with tax qualified retirement plans, including IRAs. D-3 IMPACT ON BENEFIT BASE AND LIFETIME INCOME AMOUNT (Applicable to Income Plus for Life and Income Plus for Life - Joint Life). Prior to the Lifetime Income Date, we will increase the Benefit Base each time you make an Additional Purchase Payment, subject to the maximum Benefit Base limit of $5 million. On and after the Lifetime Income Date, we may increase the Benefit Base each time you make an Additional Purchase Payment, subject to the maximum Benefit Base limit of $5 million. The new Benefit Base will be the Benefit Base immediately before the Additional Purchase Payment, plus: - The excess, if any, of the Additional Purchase Payment (subject to our Purchase Payment limits); over - Any Withdrawal Amount reduced by any Purchase Payment since the later of the Lifetime Income Date or the latest: - date of a Purchase Payment that we applied to the Benefit Base, - Reset date, or - effective date of a Step-up. Examples 1d and 2d in the "Guaranteed Minimum Withdrawal Benefit Examples" at the end of this Appendix illustrate how each of these transactions affects the Benefit Base and Lifetime Income Amount. In addition, if a Purchase Payment increases the Benefit Base after the Lifetime Income Date, we will recalculate the Lifetime Income Amount and increase it to equal: - (for Income Plus for Life) 5% of the Benefit Base in effect immediately after the Purchase Payment; or - (for Income Plus for Life - Joint Life) 4.75% of the Benefit Base in effect immediately after the Purchase Payment. We will not change the Lifetime Income Amount, however, if the recalculated amount is less than the Lifetime Income Amount before the Additional Purchase Payment. IMPACT ON GUARANTEED WITHDRAWAL BALANCE AND GUARANTEED WITHDRAWAL AMOUNT AND LIFETIME INCOME AMOUNT (applicable to Principal Plus for Life, Principal Plus for Life Plus Automatic Annual Step-up and Principal Plus for Life Plus Spousal Protection). We increase the total Guaranteed Withdrawal Balance by the amount of each Additional Purchase Payment we accept (subject to the maximum Guaranteed Withdrawal Balance limit of $5 million). In addition, we recalculate the Guaranteed Withdrawal Amount and the Lifetime Income Amount and usually increase it: In the case of the Guaranteed Withdrawal Amount, to equal the lesser of: - 5% of the Guaranteed Withdrawal Balance immediately after the Purchase Payment; or - the Guaranteed Withdrawal Amount immediately prior to the Purchase Payment plus an amount equal to 5% of the Purchase Payment. In the case of the Lifetime Income Amount, to equal the lesser of: - 5% of the Guaranteed Withdrawal Balance immediately after the Purchase Payment; or - the Lifetime Income Amount immediately prior to the Purchase Payment plus an amount equal to 5% of the Purchase Payment. We do not change the Guaranteed Withdrawal Amount or the Lifetime Income Amount if the recalculated amount is less than the Guaranteed Withdrawal Amount or Lifetime Income Amount, as the case may be, before the Additional Purchase Payment. IMPACT ON GUARANTEED WITHDRAWAL BALANCE AND GUARANTEED WITHDRAWAL AMOUNT (applicable to Principal Plus and Principal Returns). We increase the total Guaranteed Withdrawal Balance by the amount of each Additional Purchase Payment we accept (subject to the maximum Guaranteed Withdrawal Balance limit of $5 million). In addition, we recalculate the Guaranteed Withdrawal Amount and usually increase it: In the case of the Guaranteed Withdrawal Amount, to equal the lesser of: - 5% of the Guaranteed Withdrawal Balance immediately after the Purchase Payment; or - the Guaranteed Withdrawal Amount immediately prior to the Purchase Payment plus an amount equal to 5% of the Purchase Payment. We do not change the Guaranteed Withdrawal Amount if the recalculated amount is less than the Guaranteed Withdrawal Amount before the Additional Purchase Payment. Rider Fees We charge an additional fee on each Contract Anniversary for a guaranteed minimum withdrawal benefit Rider, and reserve the right to increase the fee on the effective date of each Step-up in the benefits under that Rider. We withdraw the fee from each Investment Option in the same proportion that the value of Investment Accounts of each Investment Option bears to the Contract Value. We deduct a pro rata share of the annual fee from the Contract Value: - on the date we determine the death benefit; - after the Annuity Commencement Date at the time an Annuity Option begins; or D-4 - on the date an Excess Withdrawal reduces the Contract Value to zero. We do not deduct additional Rider fees during the "Settlement Phase" or after the Annuity Commencement Date once an Annuity Option begins. FEE FOR INCOME PLUS FOR LIFE SERIES RIDERS. The fee is equal to 0.60% of the "Adjusted Benefit Base." The Adjusted Benefit Base is the Benefit Base that was available on the prior Contract Anniversary (including any Step-up applied on that prior Anniversary) increased by any Additional Purchase Payments that we applied to the Benefit Base during the Contract Year prior to the current Contract Anniversary. We reserve the right to increase the Income Plus for Life or Income Plus for Life - Joint Life fee on the effective date of each Step-up. In such a situation, neither fee will ever exceed 1.20%. FEE FOR PRINCIPAL PLUS. The fee is equal to 0.30% of the "Adjusted Guaranteed Withdrawal Balance." The Adjusted Guaranteed Withdrawal Balance is the Guaranteed Withdrawal Balance that was available on the prior Contract Anniversary adjusted for any Step-up, Bonus or Additional Purchase Payment made during the Contract Year prior to the current Contract Anniversary. We reserve the right to increase the Principal Plus fee on the effective date of each Step-up. In such a situation, the Principal Plus fee will never exceed 0.75%. FEE FOR PRINCIPAL PLUS FOR LIFE. The fee is equal to 0.40% of the "Adjusted Guaranteed Withdrawal Balance." The Adjusted Guaranteed Withdrawal Balance is the Guaranteed Withdrawal Balance that was available on the prior Contract Anniversary (including any Step-up applied on that prior Anniversary) increased by any Bonus or Additional Purchase Payment made during the Contract Year prior to the current Contract Anniversary. We reserve the right to increase the Principal Plus for Life fee on the effective date of each Step-up. In such a situation, the Principal Plus for Life fee will never exceed 0.75%. FEE FOR PRINCIPAL PLUS FOR LIFE PLUS AUTOMATIC ANNUAL STEP-UP. The fee is equal to 0.60% of the "Adjusted Guaranteed Withdrawal Balance." The Adjusted Guaranteed Withdrawal Balance is the Guaranteed Withdrawal Balance that was available on the prior Contract Anniversary (including any Step-up applied on that prior Anniversary) increased by any Bonus or Additional Purchase Payment made during the Contract Year prior to the current Contract Anniversary. We reserve the right to increase the Principal Plus for Life Plus Automatic Annual Step-up Rider fee on the effective date of each Step-up. In such a situation, the Principal Plus for Life Plus Automatic Annual Step-up Rider fee will never exceed 1.20%. FEE FOR PRINCIPAL PLUS FOR LIFE PLUS SPOUSAL PROTECTION. The fee is equal to 0.65% of the "Adjusted Guaranteed Withdrawal Balance." The Adjusted Guaranteed Withdrawal Balance is the Guaranteed Withdrawal Balance that was available on the prior Contract Anniversary (including any Step-up applied on that prior Anniversary) increased by any Bonus or Additional Purchase Payment made during the Contract Year prior to the current Contract Anniversary. We reserve the right to increase the Principal Plus for Life Plus Spousal Protection Rider fee on the effective date of each Step-up. In such a situation, the Principal Plus for Life Plus Spousal Protection Rider fee will never exceed 1.20%. FEE FOR PRINCIPAL RETURNS. The fee is equal to 0.50% of the "Adjusted Guaranteed Withdrawal Balance." The Adjusted Guaranteed Withdrawal Balance is the Guaranteed Withdrawal Balance that was available on the prior Contract Anniversary (including any Step-up applied on that prior Anniversary) increased by any Additional Purchase Payment made during the Contract Year prior to the current Contract Anniversary. We reserve the right to increase the Principal Returns fee on the effective date of each Step-up. In such a situation, the Principal Returns fee will never exceed 0.95%. Comparison between Guaranteed Minimum Withdrawal Benefits and Annuity Payments If you choose to take withdrawals under one of our guaranteed minimum withdrawal benefit Riders, it is not the same as receiving annuity payments upon annuitization (as described in "Pay-out Period Provisions" in "V. Description of the Contract"). When you take withdrawals: - you will have the flexibility to start and stop withdrawals; - you will have the flexibility to choose an amount of your withdrawal that is less than or equal to your Lifetime Income Amount (without reducing your future available Lifetime Income Amount); - you will have the ability to surrender your Contract for the cash surrender value (Contract Value minus any applicable charges and premium taxes), if any; - you may receive less favorable tax treatment of your withdrawals than annuity payments would provide. See "VII. Federal Tax Matters" for information on tax considerations related to optional benefit Riders; and - you reduce the Contract Value available for annuitization. When you annuitize: - you will receive annuity payments that will be fixed in amount (or in the number of units paid if you choose Variable Annuity payments); - your annuity payments will not vary in timing once they commence (for as long as we are due to pay them to you); D-5 - you will no longer have access to the Contract Value; and - your Annuity Payments may receive more favorable tax treatment than guaranteed minimum withdrawal benefits. See "VII. Federal Tax Matters" for information on tax considerations related to optional benefit Riders. Additional Annuity Options In addition to the traditional Annuity Options we provide under the Contract, we provide additional Annuity Options for Contracts issued with a guaranteed minimum withdrawal benefit Rider. These additional Annuity Options are only available for Annuity Commencement Dates no earlier than the first day of the month following the later of the 85th birthday (for Contracts issued prior to May 1, 2006) or the 90th birthday (for Contracts issued on or after May 1, 2006) of the oldest Annuitant or the tenth Contract Anniversary. These additional Annuity Options are designed so that you will receive annuity payments that are no less than the Lifetime Income Amount at the time of annuitization, but you could receive larger payments, depending on the your investment experience prior to annuitization. The Annuity Options available to you are described in detail in "V. Description of the Contract - Pay-out Period Provisions." Tax Considerations See "VII. Federal Tax Matters" for information on tax considerations related to optional benefit Riders. No Loans under 403(b) Plans The loan privilege described in the Prospectus for Contracts issued in connection with certain Section 403(b) plans is NOT available if you elected any of our guaranteed minimum withdrawal benefit Riders. INVESTMENT OPTIONS UNDER GUARANTEED MINIMUM WITHDRAWAL BENEFIT RIDERS If you elected to purchase any of our Guaranteed Minimum Withdrawal Benefit Riders, you may invest your Contract Value only in the Investment Options we make available with that Rider. If you purchased any of our guaranteed minimum withdrawal benefit Riders, you must invest 100% of your Contract Value at all times in one or more of the investment options we make available for these Riders. Under our current rules, you must invest either: (a) among the currently available individual Investment Options (see "Available Individual Investment Options" below); or (b) in a manner consistent with any one of the currently available Model Allocations (see "Available Model Allocations" below). You may transfer between (a) and (b), or vice versa, on any date subject to our restrictions on frequent trading, provided you transfer 100% of your Contract Value. You may take withdrawals only in accordance with our default procedures; you may not specify the Investment Option from which you wish to make a withdrawal (see "Accumulation Period Provisions - Withdrawals" on page 37). We allocate Additional Purchase Payments in accordance with your instructions, subject to the restrictions described herein. All Investment Options may not be available through all distribution partners. YOU SHOULD CONSULT WITH YOUR REGISTERED REPRESENTATIVE TO ASSIST YOU IN DETERMINING WHICH AVAILABLE INDIVIDUAL INVESTMENT OPTION OR MODEL ALLOCATION IS BEST SUITED FOR YOUR FINANCIAL NEEDS AND RISK TOLERANCE. Available Individual Investment Options If you purchased a Contract with a guaranteed minimum withdrawal benefit Rider, we restrict the individual Investment Options to which you may allocate your Contract Value. These currently available Investment Options invest in the following Portfolios: - American Asset Allocation Trust - American Fundamental Holdings Trust - American Global Diversification Trust - Franklin Templeton Founding Allocation Trust - Lifestyle Growth Trust (not available with Principal Returns) - Lifestyle Balanced Trust - Lifestyle Moderate Trust - Lifestyle Conservative Trust - Index Allocation Trust - Money Market Trust You may allocate your Contract Value to any combination of these Investment Options and you may also use our DCA program from the Money Market or any available DCA Fixed Investment Option in connection with your selected Investment Options. WE RESERVE THE RIGHT TO RESTRICT INVESTMENT OPTIONS IN YOUR VARIABLE INVESTMENT ACCOUNT AT ANY TIME. If we restrict an Investment Option, we will not allow transfers into the restricted Investment Option and you may not allocate Purchase Payments to D-6 the restricted Investment Option after the date of the restriction. Any amounts you allocated to an Investment Option before we imposed restrictions will not be affected by such restrictions as long as it remains in that Investment Option. FOR MORE INFORMATION REGARDING THESE PORTFOLIOS, INCLUDING INFORMATION RELATING TO THEIR INVESTMENT OBJECTIVES, POLICIES AND RESTRICTIONS, AND THE RISKS OF INVESTING IN SUCH PORTFOLIOS, PLEASE SEE "IV. GENERAL INFORMATION ABOUT US, THE SEPARATE ACCOUNTS AND THE PORTFOLIOS" AS WELL AS THE PROSPECTUSES FOR THE APPLICABLE PORTFOLIOS. YOU CAN OBTAIN A COPY OF THE PORTFOLIOS' PROSPECTUSES BY CONTACTING THE ANNUITIES SERVICE CENTER SHOWN ON PAGE II OF THIS PROSPECTUS. YOU SHOULD READ A PORTFOLIO'S PROSPECTUS CAREFULLY BEFORE INVESTING IN THE CORRESPONDING VARIABLE INVESTMENT OPTION. Available Model Allocations You may allocate your entire Contract Value to any one of the available Model Allocations in the table shown below. You may also use our DCA program from any available DCA Fixed Investment Option in connection with your selected Model Allocation. If you select a Model Allocation, you authorize us to rebalance your entire Contract Value allocated to your selected Model Allocation on a quarterly basis to the fixed percentages shown in the table for each Investment Option in that Model Allocation. In addition, you may not transfer monies between Investment Options other than to transfer 100% of your Contract Value to another Model Allocation if available or 100% to any one, or any combination of, the available individual Investment Options. None of the Model Allocations is a fund-of-funds. We do not actively manage any Model Allocation. Once you invest in a Model Allocation, we will not change the allocation percentages (except to rebalance) or component Portfolios based on changes in investment strategy, market conditions or expectations of future performance. Because a Model Allocation does not change, you should periodically consult with your registered representative to ensure that your selected Model Allocation continues to be appropriate for your needs and circumstances. WE RESERVE THE RIGHT TO RESTRICT THE AVAILABILITY OF MODEL ALLOCATIONS AT ANY TIME. If we restrict a Model Allocation and your Contract Value is allocated to that Model Allocation on the last day it was available, you may continue to allocate your Contract Value to that Model Allocation as long as you continue to allocate your entire Contract Value (other than amounts in a Fixed Account under our DCA Program), including future Purchase Payments, to that Model Allocation. We will continue to rebalance your Contract Value to that Model Allocation on a quarterly basis. You will no longer be able to use that Model Allocation, however, if you transfer your Contract Value to any of the available individual Investment Options, to any other Model Allocation, or to any Variable Investment Option other than as permitted in that Model Allocation. A MODEL ALLOCATION MAY EXPERIENCE VOLATILITY IN ITS INVESTMENT PERFORMANCE OR LOSE MONEY, DEPENDING ON THE PERFORMANCE OF THE COMPONENT PORTFOLIOS REFERENCED BELOW. YOUR INVESTMENT IN THE PORTFOLIOS WILL FLUCTUATE AND, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN YOUR ORIGINAL INVESTMENT. FOR MORE INFORMATION REGARDING EACH PORTFOLIO THAT WE PERMIT YOU TO INVEST IN THROUGH A MODEL ALLOCATION, INCLUDING INFORMATION RELATING TO THAT PORTFOLIO'S INVESTMENT OBJECTIVES, POLICIES AND RESTRICTIONS, AND THE RISKS OF INVESTING IN THAT PORTFOLIO, PLEASE SEE "IV. GENERAL INFORMATION ABOUT US, THE SEPARATE ACCOUNTS AND THE PORTFOLIOS," AS WELL AS THE PORTFOLIO'S PROSPECTUS. YOU CAN OBTAIN A PROSPECTUS CONTAINING MORE COMPLETE INFORMATION ON EACH OF THE PORTFOLIOS BY CONTACTING THE RESPECTIVE ANNUITIES SERVICE CENTER SHOWN ON PAGE II OF THIS PROSPECTUS. YOU SHOULD READ THE PORTFOLIOS' PROSPECTUSES CAREFULLY BEFORE INVESTING IN THE CORRESPONDING INVESTMENT OPTION. We reserve the right to: - limit the actual percentages you may allocate to certain Investment Options under the Model Allocations; - require that you choose certain Investment Options in conjunction with other Investment Options under the Model Allocations; - limit your ability to transfer between existing Investment Options; and/or - require you to periodically rebalance existing Variable Investment Accounts to the percentages we require. D-7 The Model Allocations are:
MODEL ALLOCATION NAME MODEL ALLOCATION PERCENTAGE PORTFOLIO NAME - ------------------------------------------- --------------------------- -------------------------------- American Global Diversification 50% American Global Growth Trust 20% American Bond Trust 15% American Global Small Capitalization Trust 10% American High-Income Bond Trust 5% American New World Trust Fundamental Holdings of America 35% American Bond Trust 25% American Growth-Income Trust 25% American Growth Trust 15% American International Trust Global Balanced 30% Fundamental Value Trust (not available after April 30, 2007) (1) 25% American International Trust 25% Global Allocation Trust 20% Global Bond Trust Blue Chip Balanced 40% Investment Quality Bond Trust (not available after April 30, 2007) (1) 30% American Growth Trust 30% American Growth-Income Trust Value Strategy 30% Core Equity Trust (not available after February 10, 2006) (1) 30% Equity-Income Trust 20% Active Bond Trust 20% Strategic Bond Trust Growth Blend 40% Blue Chip Growth Trust (not available after February 10, 2006) (1) 20% American Growth-Income Trust 20% Active Bond Trust 20% Strategic Bond Trust Core Holdings of America 35% Active Bond Trust (not available after August 1, 2005) (1) 25% American Growth Trust 25% American Growth-Income Trust 15% American International Trust Core Solution 34% Strategic Income Trust (not available after April 30, 2005) (1) 33% U.S. Global Leaders Growth Trust 33% Classic Value Trust Value Blend 40% Equity-Income Trust (not available after April 30, 2005) (1) 20% American Growth Trust 20% Active Bond Trust 20% Strategic Bond Trust Global 30% International Value Trust (not available after April 30, 2005)(1) 30% Global Bond Trust 20% U.S. Large Cap Trust 20% Blue Chip Growth Trust
(1) If you allocated Contract Value to the Model Allocation shown on the last day it was available, you may continue to allocate your Contract Value to that Model Allocation if: (a) you continue to allocate your entire Contract Value (other than amounts in a Fixed Account under our DCA Program), including future Purchase Payments, to that Model Allocation; and (b) you rebalance your entire Contract Value to that Model Allocation on a quarterly basis. You will no longer be able to use that Model Allocation, however, if you transfer your Contract Value to any of the available individual investment options, to any other Model Allocation, or to any Variable Investment Option other than as permitted in that Model Allocation. D-8 INCOME PLUS FOR LIFE SERIES Income Plus for Life Series Definitions Unless specified otherwise, the following definitions apply to both the Income Plus for Life and Income Plus for Life - Joint Life Riders: AGE 65 CONTRACT ANNIVERSARY MEANS the Contract Anniversary on, or next following, the date the older Owner attains age 65. AGE 95 CONTRACT ANNIVERSARY means the Contract Anniversary on, or next following, the date: - the Covered Person attains age 95 under Income Plus for Life; or - the older Owner attains age 95 under Income Plus for Life-Joint Life. BENEFIT BASE means: - a value we use to determine the Lifetime Income Amount. - The initial Benefit Base is equal to your initial Purchase Payment, up to the maximum Benefit Base. - We may adjust the Benefit Base to reflect withdrawals, "Step-ups," "Bonuses" and Additional Purchase Payments as provided in the Rider. - The maximum Benefit Base is $5 million. Any adjustment to the Benefit Base will result in a corresponding adjustment to the Lifetime Income Amount. BONUS OR LIFETIME INCOME BONUS means an increase in the Benefit Base on each Contract Anniversary during one or more "Lifetime Income Bonus Periods" if you take no withdrawals during the previous Contract Year. For these purposes, the initial Lifetime Income Bonus Period coincides with the first 10 Contract Years while the Rider is in effect. Each time a Step-up occurs, we will extend the Lifetime Income Bonus Period to the lesser of 10 years from the Step-up Date or the Age 95 Contract Anniversary. In certain marketing materials, the Bonus may be referred to as the "Deferral Credit." BONUS PERIOD OR LIFETIME INCOME BONUS PERIOD means: - Initially, the first 10 Contract Years; - Each time a Step-up occurs, the Bonus Period extends to the lesser of: (a) 10 years from a Step-up Date; or (b) the Age 95 Contract Anniversary. COVERED PERSON means (for Income Plus for Life): - The person whose life we use to determine the duration of the Lifetime Income Amount payments; - The oldest Owner at issue of the Rider or the oldest Annuitant in the case of a non-natural Owner. COVERED PERSON means (for Income Plus for Life - Joint Life): - One of the two persons whose lives we use to determine the duration of the Lifetime Income Amount payments. - We determine the Covered Persons at the time you elect the Rider. A spouse must qualify as a "spouse" under federal law. (For Income Plus for Life - Joint Life Non-Qualified Contracts): - both the spouses must be named as co-Owners of the Contract; or - if only one spouse is named as an Owner of the Contract, the other spouse must be designated as the Beneficiary of the Contract. (For Income Plus for Life - Joint Life Qualified Contracts): - one spouse must be named as the Owner (or Annuitant if the Owner is a non-natural person); and - the Owner's spouse must be the designated Beneficiary. A Covered Person will no longer qualify as such (i.e., that Covered Person will be removed from the Rider) if that person is no longer designated as an Owner, co-Owner, Annuitant, co-Annuitant or Beneficiary as required above. In the event that you and your spouse become divorced after you purchase the Rider, you may not add a new spouse as a Covered Person. If you remove your spouse as an Owner, Beneficiary or Annuitant, that person will no longer be a Covered Person under the Rider. (See page 37 for additional information on the impact of divorce.) D-9 EXCESS WITHDRAWAL means: - (for Income Plus for Life) Any withdrawal you take before the Lifetime Income Date that, when combined with all other withdrawals (and applicable withdrawal charges) previously taken during the Contract Year of withdrawal, exceeds 5.0% of the Benefit Base at the prior Contract Anniversary, increased for any Additional Purchase Payments; - (for Income Plus for Life - Joint Life) Any withdrawal you take before the Lifetime Income Date that, when combined with all other withdrawals (and applicable withdrawal charges) previously taken during the Contract Year of withdrawal, exceeds 4.75% of the Benefit Base at the prior Contract Anniversary, increased for any Additional Purchase Payments; and - (for Income Plus for Life and Income Plus for Life - Joint Life) Any withdrawal you take on and after the Lifetime Income Date that, when combined with all other withdrawals (and applicable withdrawal charges) previously taken during the Contract Year of withdrawal, exceeds the Lifetime Income Amount at the time of withdrawal. LIFETIME INCOME AMOUNT means the amount we guarantee to be available each Contract Year for withdrawal during the Accumulation Period after the date you purchased the Rider (or the Lifetime Income Date, if later), as long as: - (for Income Plus for Life) the Covered Person remains alive as an Owner or Annuitant of the Contract, subject to the terms and conditions of the Rider. - (for Income Plus for Life - Joint Life) at least one Covered Person remains alive and qualified as a Covered Person, subject to the terms and conditions of the Rider. We may reduce the Lifetime Income Amount to reflect withdrawals and Resets, and we may increase the Lifetime Income Amount to reflect Step-ups, Bonuses, a Target Amount adjustment and Additional Purchase Payments as provided in the Rider. Any reduction or increase in the Benefit Base will result in a corresponding reduction or increase in the Lifetime Income Amount. LIFETIME INCOME DATE means the date on which we determine the Life Income Amount. This will be the date you purchase the Rider if: - (for Income Plus for Life) you are age 59 1/2 or older at the time (age 61 or older for Riders issued in New York); otherwise, the Lifetime Income Date is the Anniversary Date on, or immediately following, the date you attain age 59 1/2 (age 61 in NY). - (for Income Plus for Life - Joint Life) both you and your spouse are age 59 1/2 or older at the time; otherwise, the Anniversary Date on, or immediately following, the date the younger spouse would attain age 59 1/2. (The Lifetime Income Date does not change if the younger spouse does not survive to this date and the older spouse is still a Covered Person under the Rider.) RESET means a reduction of the Benefit Base if you take Excess Withdrawals. STEP-UP means an increase in the Benefit Base and Lifetime Income Amount on certain Contract Anniversary dates when your Contract Value exceeds the previous Benefit Base. STEP-UP DATE means the date on which we determine whether a Step-up could occur. D-10 Income Plus for Life The Income Plus for Life Rider provides a guaranteed minimum withdrawal benefit, called the "Lifetime Income Amount" during the Accumulation Period. We calculate the Lifetime Income Amount on the Lifetime Income Date. If the Covered Person is age 59 1/2 or older when you purchase the Income Plus for Life Rider (age 61 or older for Riders issued in New York), the initial Lifetime Income Amount equals 5% of the initial Purchase Payment for your Contract on the Rider's effective date. (We do not count Purchase Payment amounts over $5 million for this purpose.) Otherwise, the initial Lifetime Income Amount equals 5% of the Benefit Base in effect on the Lifetime Income Date. If you subsequently limit your annual withdrawals to the Lifetime Income Amount, Income Plus for Life guarantees that we will make the Lifetime Income Amount benefit available to you, as long as the Covered Person is alive and an Owner, Beneficiary or Annuitant under the Contract, even if your Contract Value reduces to zero. We may reduce the Lifetime Income Amount if you take withdrawals in excess of the Lifetime Income Amount. If you defer taking withdrawals, we may increase the Lifetime Income Amount to reflect one or more "Lifetime Income Bonuses" and a "Target Amount" adjustment (see "Target Amount" on page D-13). We also may increase the Lifetime Income Amount if you make Additional Purchase Payments, or if we Step-up the Benefit Base to reflect current Contract Value. The version of the Income Plus for Life Rider issued in the state of New York (the "NY Income Plus for Life Rider") includes differences in five features of the Income Plus for Life Rider available outside of New York. Those features are: - Lifetime Income Date; - Lifetime Income Bonuses; - Change of Riders; - Impact of Withdrawals on Guaranteed Minimum Death Benefit; and - Withdrawals under the Life Expectancy Distribution Program. We describe the NY Income Plus for Life Rider differences in the discussions of these Income Plus for Life features. We also provide new examples (at the end of this Appendix) to illustrate hypothetical results of Contracts with a NY Income Plus for Life Rider. In all other respects, including the Rider fee, the NY Income Plus for Life Rider is the same as the Income Plus for Life Rider. IMPACT OF WITHDRAWALS. Each time you take a withdrawal before the Lifetime Income Date, we reduce the Benefit Base by the Withdrawal Amount. If, however, a withdrawal is an Excess Withdrawal, we will Reset the Benefit Base to equal the lesser of: - the Contract Value immediately after the withdrawal; or - the Benefit Base minus the Withdrawal Amount. If you take withdrawals prior to the Lifetime Income Date, we reduce the Benefit Base we use to determine the guaranteed Lifetime Income Amount on the Lifetime Income Date. You could eventually lose any benefit based on the Lifetime Income Amount if you take withdrawals in excess of 5% of the Benefit Base. If Contract Value declines to zero during a Contract Year in which you have an Excess Withdrawal, you will lose the guaranteed minimum withdrawal benefit under the Income Plus for Life Rider. (See "Settlement Phase" in this section, below.) After the Lifetime Income Date, you may withdraw the guaranteed Lifetime Income Amount each Contract Year without affecting the Benefit Base. If your total withdrawals during a Contract Year exceed the Lifetime Income Amount, however, we will Reset the Benefit Base and the Lifetime Income Amount. Each time you take a withdrawal after the Lifetime Income Date, we first determine if the Withdrawal Amount is an Excess Withdrawal. If so, we will Reset the Benefit Base to equal the lesser of: - the Benefit Base before the withdrawal minus the entire amount of the Excess Withdrawal; or - the Contract Value immediately after the Excess Withdrawal. After we Reset the Benefit Base, we will Reset the Lifetime Income Amount to equal 5% of the new Benefit Base. We also will Reset the Benefit Base and the Lifetime Income Amount for each subsequent Excess Withdrawal that you take during that Contract Year. IF YOU TAKE AN EXCESS WITHDRAWAL, IT COULD LOWER YOUR LIFETIME INCOME AMOUNT. IF YOU HAVE EXPERIENCED UNFAVORABLE INVESTMENT PERFORMANCE (AND THEREFORE YOUR CONTRACT VALUE IS LESS THAN YOUR BENEFIT BASE) AND THEN YOU TAKE AN EXCESS WITHDRAWAL, IT COULD SIGNIFICANTLY REDUCE YOUR LIFETIME INCOME AMOUNT. In certain circumstances, we will not Reset the Benefit Base and/or the Lifetime Income Amount, even where a withdrawal would exceed the Lifetime Income Amount for a Contract Year. These circumstances involve withdrawals taken as "Life Expectancy Distributions" under an automatic distribution program provided by us (see "Life Expectancy Distribution Program" in this section below). We do not reduce your Benefit Base or Lifetime Income Amount when you make a withdrawal if your total Withdrawal Amounts during a Contract Year are less than or equal to the Lifetime Income Amount. Any applicable withdrawal charges cannot cause a withdrawal to exceed the Lifetime Income Amount. D-11 The Income Plus for Life Rider enters a "Settlement Phase" in any Contract Year that your Contract Value declines to zero if your Benefit Base is greater than zero at that time and you have taken no Excess Withdrawals during that Contract Year. (see "Settlement Phase" in this section, below). In the event of an Excess Withdrawal, you will lose the guaranteed minimum withdrawal benefit under the Income Plus for Life Rider if Contract Value declines to zero during the Contract Year of the Excess Withdrawal. (See "Settlement Phase," in this section, below) The Income Plus for Life benefit terminates if the Contract Value and Benefit Base immediately after a withdrawal are all equal to zero. We may Reset the Benefit Base and Lifetime Income Amount values if you take Excess Withdrawals. Excess Withdrawals may reduce or eliminate future Lifetime Income Amount values. We reduce your Contract Value each time you take a withdrawal. EFFECT OF WITHDRAWALS ON GUARANTEED MINIMUM DEATH BENEFIT AMOUNT. If you purchase Income Plus for Life, we may adjust the way we calculate the death benefit payable under your Contract upon the death of the Owner (or deemed Owner if the Owner is not a natural person) during the Accumulation Period. We reduce that death benefit each time you take a withdrawal. We will reduce the death benefit on a dollar for dollar basis if: - you limit your withdrawals (including applicable withdrawal charges) during a Contract Year to the Lifetime Income Amount; or, - you purchased the Income Plus for Life Rider before the Covered Person attained age 59 1/2, you limit your withdrawals (including applicable withdrawal charges) each Contract Year before the Lifetime Income Date to 5% of the Benefit Base, and to the Lifetime Income Amount for each Contract Year after that. If you take an Excess Withdrawal, we will deduct the entire amount of that withdrawal (including any withdrawal charges) on either a dollar-for-dollar or a pro rata basis (as described in you Contract) from the Guaranteed Minimum Death Benefit under the Contract. "Pro rata" means we reduce the Guaranteed Minimum Death Benefit by the same percentage that the Excess Withdrawal reduces the Contract Value. That is, by an amount equal to: - the Guaranteed Minimum Death Benefit before the withdrawal, multiplied by an amount equal to: - the Withdrawal Amount ; divided by - the Contract Value before the withdrawal. We also will reduce the Guaranteed Minimum Death Benefit in the same manner for any subsequent Excess Withdrawals that you take during that Contract Year. For NY Income Plus for Life Riders, we change the way we reduce the Guaranteed Minimum Death Benefit under your Contract if you limit your withdrawals (including applicable withdrawal charges) during a Contract Year: - (for NY Income Plus for Life Riders purchased on or after the Covered Person attains age 61) to the Lifetime Income Amount; or, - (for NY Income Plus for Life Riders purchased before the Covered Person attains age 61) to 5% the Benefit Base each Contract Year before the Lifetime Income Date, and to the Lifetime Income Amount for each Contract Year after that. In these circumstances, we will deduct the entire amount of the withdrawal (including any withdrawal charges) on a dollar for dollar basis from the Guaranteed Minimum Death Benefit. We will deduct any Excess Withdrawal in the manner described above. You should carefully review and compare the impact on death benefits under your current guaranteed minimum withdrawal benefit Rider to the impact on death benefits under a different guaranteed minimum withdrawal benefit Rider. INCREASES IN THE BENEFIT BASE. We will increase the Benefit Base: - by any applicable Bonus if you take no withdrawals during certain Contract Years; - by any applicable Step-up to reflect certain increases in Contract Value; - to an established Target Amount if you take no withdrawals until the later of: (a) the Contract Anniversary on or next following the date the Covered Person attains age 69; and (b) the Contract Anniversary at the end of 10 Contract Years; and - to reflect certain Additional Purchase Payments (see "Purchase Payments" on page 33). D-12 Bonuses, when applied, will increase the Benefit Base and the Lifetime Income Amount. LIFETIME INCOME BONUSES. We will increase the Benefit Base on each Contract Anniversary during one or more "Lifetime Income Bonus Periods" if you take no withdrawals during the previous Contract Year. For these purposes, the initial Lifetime Income Bonus Period coincides with the first 10 Contract Years while the Income Plus for Life Rider is in effect. Each time a Step-up occurs, we will extend the Lifetime Income Bonus Period to the lesser of 10 years from the Step-up Date or the Age 95 Contract Anniversary. Each time you qualify, we will increase the Benefit Base by a Lifetime Income Bonus equal to: - 7% (6% for NY Income Plus for Life Riders and for all Riders purchased prior to January 17, 2008) of total Purchase Payments to your Contract if we did not previously Step-up or Reset the Benefit Base and/or the Lifetime Income Amount; otherwise - 7% (6% for NY Income Plus for Life Riders and for all Riders purchased prior to January 17, 2008) of the Benefit Base immediately after the latest Step-up or Reset, increased by the amount of any Purchase Payments applied to the Benefit Base since the latest Step-up or Reset. We will not apply any Lifetime Income Bonus, however, to the extent it would increase the Benefit Base to an amount in excess of the maximum Benefit Base of $5 million. Step-ups will increase the Benefit Base and the Lifetime Income Amount. STEP-UPS. If the Contract Value on any Step-up Date is greater than the Benefit Base (including any Bonus) on that date, we will automatically Step-up the Benefit Base to equal the Contract Value (subject to the maximum Benefit Base limit of $5 million). We will also recalculate the Lifetime Income Amount (after the Lifetime Income Date) and the Rider Fee (see "Rider Fees" on page D-4). The recalculated Lifetime Income Amount will equal 5% of the new Benefit Base value after the Step-up, and the new Rider Fee will be based on the recalculated Benefit Base. We also reserve the right to increase the rate of the Income Plus for Life fee up to a maximum rate of 1.20%. If we decide to increase the rate at the time of a Step-up, you will receive advance notice and be given the opportunity of no less than 30 days to decline the automatic Step-up (see "Fee for Income Plus for Life Series Riders" on page D-5). If you decline the Step-up, the fee rate will not be increased. Step-ups may occur only while the Income Plus for Life Rider is in effect. We schedule the Step-up Dates starting with the first Contract Anniversary and on each Contract Anniversary after that, up to and including the Age 95 Contract Anniversary. Each time a Step-up occurs, we will extend the Lifetime Income Bonus Period to the lesser of 10 years from the Step-up Date or the Age 95 Contract Anniversary. If you decline an automatic Step-up, you will have the option to elect to Step-up the Benefit Base (as well as Lifetime Income Amount) within 30 days of subsequent Step-up Dates. If you decide to Step-up the Benefit Base, we will thereafter resume automatic Step-ups. TARGET AMOUNT. If you take no withdrawals under your Contract from the effective date of the Income Plus for Life Rider until the applicable "Target Date," we will calculate a "Target Amount" and increase the Benefit Base on the Target Date to equal the greater of: - the current Benefit Base, as increased by any Lifetime Income Bonus or Step-up for the Contract Year ending on the Target Date; or - the Target Amount. The "Target Date" is the later of: - the 10th Contract Anniversary after the effective date of the Income Plus for Life Rider; or - the Contract Anniversary on or next following the date the Covered Person attains age 69. The "Target Amount" is 200% of all Purchase Payments made in the first Contract Year plus 100% of all Additional Purchase Payments you make prior to the Target Date (subject to our Purchase Payment limits). In no event, however, will we set a Target Amount in excess of the maximum Benefit Base of $5 million. The Target Amount adjustment can provide higher lifetime income than you would otherwise receive under this Rider, as long as you wait until the Target Date to take your first withdrawal. If you plan to purchase this Rider and take a withdrawal prior to the Target Date, then the Target Amount adjustment will not be of value to you. In that case, you should only purchase based on the value of the other features provided under this Rider. D-13 LIFE EXPECTANCY DISTRIBUTION PROGRAM. You may request us in writing, in a form acceptable to us, to pay you withdrawals that we determine to be part of a series of substantially equal periodic payments over your "life expectancy." For purposes of Income Plus for Life, withdrawals under our Life Expectancy Distribution program are distributions within a calendar year that are intended to be paid to you: - pursuant to Code Section 72(q)(2)(D) or Section 72(t)(2)(A)(iv) upon the request of the Owner (we sometimes refer to these as "Pre-59 1/2 Distributions"); or - pursuant to Code Section 72(s)(2) upon the request of the Beneficiary (we sometimes refer to these as "Non-Qualified Death Benefit Stretch Distributions"); or - as required or contemplated by Code Section 401(a)(9), Section 403(b)(10), Section 408(b)(3), or Section 408A, as the case may be (we sometimes refer to these as "Qualified Death Benefit Stretch Distributions" or "Required Minimum Distributions"). Under our Life Expectancy Distribution program, each withdrawal will be in an amount that we determine to be your Contract's proportional share of all life expectancy distributions, based on information that you provide and our understanding of the Code. We reserve the right to make any changes we deem necessary to comply with the Code and Treasury Regulations. We base our life expectancy calculations on our understanding and interpretation of the requirements under tax law applicable to Pre-59 1/2 Distributions, Required Minimum Distributions, Non-Qualified Death Benefit Stretch Distributions and Qualified Death Benefit Stretch Distributions. You should discuss these matters with your tax advisor prior to electing Income Plus for Life. Each withdrawal under our Life Expectancy Distribution program will reduce your Contract Value. In addition, if you purchased the Rider before the Covered Person attains age 59 1/2 (age 61 for NY Income Plus for Life Riders - see below), and you take the withdrawal before the Lifetime Income Date, we will reduce your Benefit Base by the amount of the withdrawal. We will not, however, Reset your Benefit Base or Lifetime Income Amount if a withdrawal under our Life Expectancy Distribution program (based on our current understanding and interpretation of the tax law) causes total withdrawals during a Contract Year to exceed the Lifetime Income Amount and all withdrawals during that year were under our Life Expectancy Distribution program. We will not make any further withdrawals under our Life Expectancy Distribution program if both the Contract Value and the Benefit Base are depleted to zero. We will make distributions as part of the Contract's "Settlement Phase," however, if the Lifetime Income Amount is greater than zero and the Covered Person is living at that time. We designed our Life Expectancy Distribution Program to provide minimum lifetime distributions as described or as required under certain sections of the Code. Withdrawals under our automatic Life Expectancy Distribution program will not be treated as Excess Withdrawals and will not Reset the Benefit Base or Lifetime Income Amount. If you purchase a NY Income Plus for Life Rider before the Covered Person attains age 61, we will reduce your Benefit Base if you take withdrawals under this program before the Lifetime Income Date. We do this by subtracting the amount of each withdrawal under this program from the Benefit Base. We will not Reset the Benefit Base for withdrawals under our Life Expectancy Distribution program that exceed 5% of the Benefit Base. After the Lifetime Income Date, we will not Reset your Benefit Base or Lifetime Income Amount if a withdrawal under our Life Expectancy Distribution program (based on our current understanding and interpretation of the tax law) causes total withdrawals during a Contract Year to exceed the Lifetime Income Amount and all withdrawals during that year were under our Life Expectancy Distribution program. SETTLEMENT PHASE. The Settlement Phase is when we will automatically begin making payments to you, should your Contract Value reduce to zero, subject to the conditions described herein. We automatically make settlement payments during Income Plus for Life's "Settlement Phase." The Settlement Phase begins if the Contract Value reduces to zero at any time during a Contract Year, there were no Excess Withdrawals during that Contract Year and the Benefit Base is still greater than zero at the time. In the event of an Excess Withdrawal, the Income Plus for Life Rider will not enter the Settlement Phase if Contract Value declines to zero during the Contract Year of the Excess Withdrawal. During the Settlement Phase, the Contract will continue but all other rights and benefits under the Contract, including death benefits and any additional Riders, terminate. We will not accept Additional Purchase Payments, credit additional Bonus amounts, make any Step-ups or deduct any charge for the Income Plus for Life benefit during the Settlement Phase. You cannot annuitize once the Settlement Phase begins. D-14 At the beginning of the Settlement Phase, we will automatically begin paying an annual settlement amount to you. The settlement payment amount varies: - If the Lifetime Income Amount is greater than zero at the start of the Settlement Phase, we will pay an initial settlement amount equal to the remaining Lifetime Income Amount for that Contract Year and make additional annual payments of the Lifetime Income Amount as long as the Covered Person is living. - If you purchased the Income Plus for Life Rider before the Covered Person attained age 59 1/2 (age 61 for NY Income Plus for Life Riders), and the Settlement Phase begins before the Lifetime Income Date, we will begin making annual settlement payments following the Lifetime Income Date as long as the Covered Person is living. In this case, the annual amount will equal the Lifetime Income Amount (i.e., 5% of the Benefit Base at the Lifetime Income Date). - In lieu of annual payments of the settlement amount, we will permit you to elect monthly, quarterly or semi-annual installment payments of the Lifetime Income Amount. IMPACT OF DEATH BENEFITS. If a death benefit becomes payable during the Accumulation Period but before the Settlement Phase, Income Plus for Life will end if the Beneficiary takes the death benefit provided under the terms of the Contract as a lump sum under our current administrative procedures. If the Beneficiary elects not to take the death benefit as a lump sum, the following will apply:
IF THE DECEASED OWNER IS: THEN INCOME PLUS FOR LIFE: - ------------------------- ---------------------------------------------------- 1. Not the Covered - may continue if the Beneficiary elects to Person and the continue the Contract within the time we permit Beneficiary is the under our administrative rules. We will deceased Owner's automatically increase the Benefit Base to spouse equal the initial death benefit we determine, if the death benefit is greater than the Benefit Base prior to our determination. We will also recalculate the Lifetime Income Amount to equal 5% of the recalculated Benefit Base and will assess the Rider Fee based on the recalculated Benefit Base. - enters its Settlement Phase if a subsequent withdrawal would deplete the Contract Value to zero, and the remaining Lifetime Income Amount for the year of withdrawal is still greater than zero. - continues to be eligible for any remaining Bonus amounts and Step-ups, and a Target Amount adjustment, but we will change the date we determine and apply these benefits to future anniversaries of the date we determine the initial death benefit. We will permit the spouse to opt out of an increase in the Benefit Base, if any, to reflect the initial death benefit and any future Step-ups if we increase the rate of the Income Plus for Life fee at that time. 2. Not the Covered - may continue in the same manner as 1. Person and the Beneficiary is not - enters its Settlement Phase if a subsequent the deceased Owner's withdrawal would deplete the Contract Value to spouse zero, and the remaining Lifetime Income Amount for the year of withdrawal is still greater than zero. - does not continue to be eligible for any Bonus amounts and Step-ups, or a Target Amount adjustment. We will permit the Beneficiary to opt out of an increase in the Benefit Base, if any, to reflect the initial death benefit if we increase the rate of the Income Plus for Life fee at that time. 3. The Covered Person - ends without any further benefit. and the Beneficiary is the deceased Owner's spouse 4. The Covered Person - ends without any further benefit. and the Beneficiary is not the deceased Owner's spouse
If the Beneficiary does not take the death benefit as a lump sum under the terms of the Contract and Income Plus for Life continues, we will determine the Adjusted Benefit Base and the Rider fee based on the date we determine the death benefit, and anniversaries of that date, instead of the initial Contract Anniversary date. If you die during the Settlement Phase, the only death benefits we provide are the remaining settlement payments that may become due under the Income Plus for Life Rider. If the Covered Person dies during the Settlement Phase, we reduce the Lifetime Income Amount to zero and make no further payments. If the Beneficiary is not the deceased Owner's spouse, the Beneficiary may choose to receive any remaining settlement payments over a period not extending beyond the life expectancy of the Beneficiary beginning within one year of the Owner's death. Otherwise, the entire interest must be distributed within five years of the Owner's death. D-15 TERMINATION. You may not terminate the Income Plus for Life Rider once it is in effect. However, the Income Plus for Life Rider will terminate automatically upon the earliest of: - the date a death benefit is payable and the Beneficiary takes the death benefit as a lump sum under the terms of the Contract; - the date an Annuity Option begins; - the date the Contract Value and the Benefit Base both equal zero; - the death of the Covered Person; or - termination of the Contract. The addition of Income Plus for Life to a Contract may not always be in your interest since an additional fee is imposed annually for this benefit and the Covered Person must attain Age 59 1/2 (age 61 for NY Income Plus for Life Riders) and remain living for you to receive certain benefits. Furthermore, Income Plus for Life limits the Investment Options otherwise available under the Contract, requires you to defer taking withdrawals to receive certain benefits, contains age caps and limitations on a Contract Owner's rights and benefits at certain ages and values, and provides no guaranteed withdrawal benefits once payments begin under certain Annuity Options described in the Prospectus. You should carefully consider each of these factors before deciding if Income Plus for Life is suitable for your needs, especially at older ages. EXAMPLES. Please refer to the end of this Appendix for hypothetical examples that illustrate the benefits under Income Plus for Life. Income Plus for Life - Joint Life (Not available in New York or for non-Qualified Contracts in New Jersey) Three main differences between Income Plus For Life - Joint Life and Income Plus for Life are: - Income Plus for Life - Joint Life offers a Lifetime Income Amount of 4.75%, where Income Plus for Life offers a Lifetime Income Amount of 5%; - Income Plus for Life - Joint Life guarantees withdrawals for the life of two Covered Persons (spouses), commencing on the Anniversary after the younger spouse attains age 59 1/2, where Income Plus for Life guarantees withdrawals for the life of one Covered Person, commencing on the Anniversary after that person attains age 59 1/2; - The age requirement for the Target Amount adjustment (in addition to the ten-year wait requirement) for Income Plus for Life - Joint Life is based on the Anniversary after the youngest spouse attains age 69, where the Target Amount adjustment age requirement (also in addition to the ten-year wait requirement) for Income Plus for Life is based on the Anniversary after the single Covered Person attains age 69. The Income Plus for Life - Joint Life Rider provides a guaranteed minimum withdrawal benefit, called the "Lifetime Income Amount" during the Accumulation Period. If both you and your spouse are age 59 1/2 or older when you purchase the Income Plus for Life Rider, the initial Lifetime Income Amount equals 4.75% of the initial Purchase Payment for your Contract on the Rider's effective date. (We do not count Purchase Payment amounts over $5 million for this purpose.) Otherwise, the initial Lifetime Income Amount equals 4.75% of the Benefit Base in effect on the Lifetime Income Date. If you subsequently limit your annual withdrawals to the Lifetime Income Amount, Income Plus for Life - Joint Life guarantees that we will make the Lifetime Income Amount benefit available to you, as long as either Covered Person remains alive and an Owner, Beneficiary or Annuitant under the Contract, even if your Contract Value reduces to zero. The Lifetime Income Amount reduces to zero upon the death of the last Covered Person or upon a change in Owner, Beneficiary or Annuitant that removes the last Covered Person from the Contract as an Owner, Beneficiary or Annuitant. Because we provide our guarantee over the lifetime of two Covered Persons under the Income Plus for Life - Joint Life Rider, we calculate a lower Lifetime Income Amount than we do under the Income Plus for Life Rider. If you defer taking withdrawals, we may increase the Lifetime Income Amount to reflect one or more "Lifetime Income Bonuses" and a "Target Amount" adjustment (see "Target Amount" on page D-18). We also may increase the Lifetime Income Amount if you make Additional Purchase Payments, or if we Step-up the Benefit Base to reflect current Contract Value. IMPACT OF WITHDRAWALS. Each time you take a withdrawal before the Lifetime Income Date, we reduce the Benefit Base by the amount of that withdrawal (including withdrawal charges). If, however, a withdrawal is an Excess Withdrawal, we will Reset the Benefit Base to equal the lesser of: - the Contract Value immediately after the withdrawal; or - the Benefit Base minus the Withdrawal Amount for that Contract Year. If you take withdrawals prior to the Lifetime Income Date, we reduce the Benefit Base we use to determine the guaranteed Lifetime Income Amount on the Lifetime Income Date. You could eventually lose any benefit based on the Lifetime Income Amount if you take withdrawals in excess of 4.75% of the Benefit Base. If Contract Value declines to zero during a Contract Year in which you have an Excess Withdrawal, you will lose the guaranteed minimum withdrawal benefit under the Income Plus for Life Rider. (See "Settlement Phase" in this section below.) D-16 After the Lifetime Income Date, you may withdraw the guaranteed Lifetime Income Amount (inclusive of withdrawal charges) each Contract Year without affecting the Benefit Base. If your total withdrawals during a Contract Year exceed the Lifetime Income Amount, however, we will Reset the Benefit Base and the Lifetime Income Amount. Each time you take a withdrawal after the Lifetime Income Date, we first determine if the Withdrawal Amount is an Excess Withdrawal. If so, we will Reset the Benefit Base to equal the lesser of: - the Benefit Base before the withdrawal minus the entire amount of the Excess Withdrawal; or - the Contract Value immediately after the Excess Withdrawal. After we Reset the Benefit Base, we will Reset the Lifetime Income Amount to equal 4.75% of the new Benefit Base. We also will Reset the Benefit Base and the Lifetime Income Amount for each subsequent Excess Withdrawal that you take during that Contract Year. In certain circumstances, we will not Reset the Benefit Base and/or the Lifetime Income Amount, even where a withdrawal would exceed the Lifetime Income Amount for a Contract Year. These circumstances involve withdrawals taken as "Life Expectancy Distributions" under an automatic distribution program provided by us (see "Life Expectancy Distribution Program" in this section below). We do not reduce your Benefit Base or Lifetime Income Amount when you make a withdrawal if your total withdrawals during a Contract Year are less than or equal to the Lifetime Income Amount. The Income Plus for Life - Joint Life Rider enters a "Settlement Phase" in any Contract Year that your Contract Value declines to zero if your Benefit Base is greater than zero at that time and you have taken no Excess Withdrawals during that Contract Year. (See "Settlement Phase" in this section below.) In the event of an Excess Withdrawal, the Income Plus for Life - Joint Life Rider will not enter the Settlement Phase if Contract Value declines to zero during the Contract Year of the Excess Withdrawal. (See "Income Plus for Life - Impact of Withdrawals" on the preceding page.) The Income Plus for Life - Joint Life benefit terminates if the Contract Value and Benefit Base immediately after a withdrawal are all equal to zero. We may reduce Benefit Base and Lifetime Income Amount values if you take Excess Withdrawals. Excess Withdrawals may reduce or eliminate future Lifetime Income Amount values. We reduce your Contract Value each time you take a withdrawal. EFFECT OF WITHDRAWALS ON GUARANTEED MINIMUM DEATH BENEFIT AMOUNT. If you purchase the Income Plus for Life - Joint Life Rider, we may adjust the way we calculate the death benefit payable under your Contract upon death of the first Owner (or deemed Owner if the Owner is not a natural person) to die during the Accumulation Period. We reduce that death benefit each time you take a withdrawal. We will reduce the death benefit on a dollar for dollar basis if: - you limit your Withdrawal Amounts during a Contract Year to the Lifetime Income Amount; or, - if you purchased the Income Plus for Life - Joint Life Rider before the younger Covered Person attained age 59 1/2, you limit your withdrawals (including applicable withdrawal charges) each Contract Year before the Lifetime Income Date to 4.75% of the Benefit Base, and to the Lifetime Income Amount for each Contract Year after that. If you take an Excess Withdrawal, we will deduct the entire amount of that withdrawal (including any withdrawal charges) on either a dollar-for-dollar or a pro rata basis (as described in your Contract) from the Guaranteed Minimum Death Benefit under the Contract. To do this, we reduce the Guaranteed Minimum Death Benefit by an amount equal to: - the Guaranteed Minimum Death Benefit before the withdrawal, multiplied by an amount equal to: (a) the Withdrawal Amount; divided by (b) the Contract Value before the withdrawal. We also will reduce the Guaranteed Minimum Death Benefit in the same manner for any subsequent Excess Withdrawals that you take during that Contract Year. INCREASES IN THE BENEFIT BASE. We will increase the Benefit Base: - by any applicable Bonus if you take no withdrawals during certain Contract Years; - by any applicable Step-up to reflect certain increases in Contract Value; - to an established "Target Amount" if you take no withdrawals until the later of: (a) the Contract Anniversary on or next following the date the younger Covered Person attains age 69; and (b) the Contract Anniversary at the end of 10 Contract Years; and - to reflect certain Additional Purchase Payments (see "Purchase Payments" on page 33). D-17 Bonuses, when applied, will increase the Benefit Base and the Lifetime Income Amount. LIFETIME INCOME BONUSES. We will increase the Benefit Base on each Contract Anniversary during one or more "Lifetime Income Periods" if you take no withdrawals during the previous Contract Year. For these purposes, the initial Lifetime Income Period coincides with the first 10 Contract Years while the Income Plus for Life - Joint Life Rider is in effect. Each time a Step-up occurs, we will extend the Lifetime Income Bonus Period to the lesser of 10 years from the Step-up or the Age 95 Contract Anniversary. Each time you qualify, we will increase the Benefit Base by a Lifetime Income Bonus equal to: - 7% (6% for Contracts issued prior to January 17, 2008) of total Purchase Payments to your Contract if we did not previously Step-up the Benefit Base and/or the Lifetime Income Amount; otherwise - 7% (6% for Contracts issued prior to January 17, 2008) of the Benefit Base immediately after the latest Step-up or Reset, increased by the amount of any Purchase Payments applied to the Benefit Base since the latest Step-up or Reset. We will not apply any Lifetime Income Bonus; however, to the extent it would increase the Benefit Base to an amount in excess of the maximum Benefit Base of $5 million. Step-ups will increase the Benefit Base and the Lifetime Income Amount. STEP-UPS. If the Contract Value on any Step-up Date is greater than the Benefit Base (including any Bonus) on that date, we will automatically Step-up the Benefit Base to equal the Contract Value (subject to the maximum Benefit Base limit of $5 million). We will also recalculate the Lifetime Income Amount (after the Lifetime Income Date) and the Rider Fee (see "Rider Fees" on page D-4). The new Lifetime Income Amount will equal 4.75% of the new Benefit Base value after the Step-up, and the new Rider Fee will be based on the recalculated Benefit Base. We also reserve the right to increase the rate of the Income Plus for Life fee up to a maximum rate of 1.20%. If we decide to increase the rate at the time of a Step-up, you will receive advance notice and be given the opportunity of no less than 30 days to decline the automatic Step-up. If you decline the Step-up, the fee rate will not be increased. Step-ups may occur only while the Income Plus for Life Rider is in effect. We schedule the Step-up Dates starting with the first Contract Anniversary and on each Contract Anniversary after that, up to and including the Age 95 Contract Anniversary. Each time a Step-up occurs, we will extend the Lifetime Income Bonus Period to the lesser of 10 years from the Step-up Date or the Age 95 Contract Anniversary. If you decline an automatic Step-up, you will have the option to elect to Step-up the Benefit Base (as well as Lifetime Income Amount) within 30 days of subsequent Step-up Dates. If you decide to Step-up the Benefit Base, we will thereafter resume automatic Step-ups. TARGET AMOUNT. If you take no withdrawals under your Contract from the Income Plus for Life - Joint Life Rider's effective date until the applicable Target Date, we will adjust the Benefit Base to equal the greater of: - the current Benefit Base, as adjusted by any Lifetime Income Bonus or Step-up for the Contract Year ending on the Target Date; or - the Target Amount. The "Target Date" is the later of: - the 10th Contract Anniversary after the effective date of the Income Plus for Life - Joint Life Rider; or - the Contract Anniversary on or next following the date the younger spouse would have attained age 69. The "Target Amount" is 200% of Purchase Payments made in the first Contract Year plus 100% of all Additional Purchase Payments you make prior to the Target Date (subject to our Purchase Payment limits). In no event, however, will we set a Target Amount in excess of the maximum Benefit Base of $5 million. The Target Amount adjustment can provide higher lifetime income than you would otherwise receive under this Rider, as long as you wait until the Target Date to take your first withdrawal. If you plan to purchase this Rider and take a withdrawal prior to the Target Date, then the Target Amount adjustment will not be of value to you. In that case, you should only purchase based on the value of the other features provided under this Rider. LIFE EXPECTANCY DISTRIBUTION PROGRAM. You may request us in writing, in a form acceptable to us and received by us at our Annuities Service Center, to pay you withdrawals that we determine to be part of a series of substantially equal periodic payments over your "life expectancy" (or, if applicable, the joint life expectancy of you and your spouse) as described in "Income Plus for Life-Life Expectancy Distribution Program," above. Under our Life Expectancy Distribution program, each withdrawal will be in an amount that we determine to be your Contract's proportional share of all life expectancy distributions, based on information that you provide and our understanding of the Code. We reserve the right to make any changes we deem necessary to comply with the Code and Treasury Regulations. D-18 SETTLEMENT PHASE. The Settlement Phase is when we will automatically begin making payments to you, should your Contract Value reduce to zero, subject to the conditions described herein. Income Plus for Life - Joint Life will enter its Settlement Phase as described in "Income Plus for Life-Settlement Phase," above, if the Contract Value reduces to zero during a Contract Year, you have taken no Excess Withdrawals during that Contract Year and the Benefit Base is still greater than zero at the time. In the event of an Excess Withdrawal, the Income Plus for Life - Joint Life Rider will not enter the Settlement Phase if Contract Value declines to zero during the Contract Year of the Excess Withdrawal. During the Settlement Phase, the Contract will continue but all other rights and benefits under the Contract, including death benefits and any additional Riders, terminate. We will not accept Additional Purchase Payments, credit additional Bonus amounts, make any Step-ups or deduct any charge for the Income Plus for Life - Joint Life benefit during the Settlement Phase. At the beginning of the Settlement Phase, we will automatically begin paying an annual settlement amount to you. The settlement payment amount varies: - If the Lifetime Income Amount is greater than zero at the start of the Settlement Phase, we will pay an initial settlement amount equal to the remaining Lifetime Income Amount for that Contract Year and make additional annual payments of the Lifetime Income Amount as long as either Covered Person is living. - If you purchased the Income Plus for Life - Joint Life Rider before the younger Covered Person attained age 59 1/2, and the Settlement Phase begins before the Lifetime Income Date, we will begin making annual settlement payments following the Lifetime Income Date as long as either Covered Person is living. In this case, the annual amount will equal the Lifetime Income Amount (i.e., 4.75% of the Benefit Base at the Lifetime Income Date). - In lieu of annual payments of the settlement amount, we will permit you to elect monthly, quarterly or semi-annual installment payments of the Lifetime Income Amount. IMPACT OF DEATH BENEFITS. If a death benefit becomes payable during the Accumulation Period but before the Settlement Phase, Income Plus for Life - Joint Life will end if the Beneficiary takes the death benefit provided under the terms of the Contract as a lump sum under our current administrative procedures. If the Beneficiary elects not to take the death benefit as a lump sum, the following will apply. Death of First Covered Person. If the first Covered Person to die is an Owner of the Contract (or deemed to be an "Owner" if the Owner is a non-natural person), the surviving Covered Person may elect to continue the Contract in effect in lieu of receiving the Contract's death benefit as a lump sum under our current administrative procedures. (See "Death after Removal of a Covered Person" below if there is no surviving Covered Person.) If the Contract continues, the Income Plus for Life - Joint Life Rider will continue. We will continue to provide the Lifetime Income Amount guarantee only for the lifetime of the surviving Covered Person and continue to charge the Income Plus for Life - Joint Life Rider fee (See "Fee for Income Plus for Life Series Riders" on page D-5). If the death benefit is greater than the Contract Value, we will increase the Contract Value to equal the amount of the death benefit (but will not make any adjustments to the Benefit Base, Lifetime Income Amount, Bonuses or Step-ups). We will treat any distribution of death benefits under a Contract as a "withdrawal" for purposes of subsequent calculations of the Benefit Base and the Lifetime Income Amount. If the first Covered Person to die is not is not the Owner (and is not deemed to be an "Owner" if the Owner is a non-natural person), no death benefit is payable under the Contract. The Rider will continue in effect and we will base the duration of the Lifetime Income Amount only on the lifetime of the surviving Covered Person. We will continue to charge the Income Plus for Life - Joint Life Rider fee; however, we will make no adjustments to the Contract Value or make any adjustments to the Benefit Base, Lifetime Income Amount, Bonuses or Step-ups. If the death of the first Covered Person occurs while the Rider is in its Settlement Phase, no additional death benefit is payable under the Contract and, in most instances, we will continue to make settlement payments in the same manner as before the death. If the death occurs before the Lifetime Income Date, we will compute a Lifetime Income Amount during the Settlement Phase on the later of the Lifetime Income Date or the date we receive notice of the death of the first Covered Person. Settlement payments will equal the Lifetime Income Amount. WE MAY LIMIT THE ABILITY OF THE SURVIVING COVERED PERSON TO CHOOSE A SETTLEMENT PAYMENT AMOUNT AND DURATION THAT DIFFERS FROM THE AMOUNT AND DURATION IN EFFECT BEFORE THE DEATH OF THE FIRST COVERED PERSON. Death of Last Covered Person. If the surviving Covered Person dies while the Income Plus for Life - Joint Life Rider is in effect we will reduce the Lifetime Income Amount to zero and we no make no additional payments under the Rider to the Beneficiary. D-19 Death after Removal of a Covered Person. In certain instances, a person initially designated as a Covered Person may be removed as a Covered Person from the Rider (see "Covered Persons" above). If that happens and: - if the removed Covered Person subsequently dies, there will be no impact on the guarantees provided by the Rider in most cases; and - if the remaining Covered Person subsequently dies, we will consider that Covered Person to be the "last" Covered Person and the Rider will terminate. TERMINATION. The Income Plus for Life - Joint Life Rider terminates in accordance with the "Income Plus for Life-Termination" section, above. You should consult with your registered representative to assist you in determining whether the Income Plus for Life - Joint Life Rider is suited for your financial needs and investment risk tolerance. The addition of the Rider to a Contract may not always be in your interest since an additional fee is imposed annually for this benefit and at least one of the Covered Persons must attain age 59 1/2 and remain living for you to receive certain benefits. Furthermore this Rider limits the investment options otherwise available under the Contract, contains age caps and limitations on a Contract Owner's rights and benefits at certain ages and values, and provides no guaranteed withdrawal benefits once payments begin under any of the Annuity Options described in the Prospectus. You should carefully consider each of these factors before purchasing an Income Plus for Life - Joint Life Rider. EXAMPLES. Please refer to the end of this Appendix for hypothetical examples that illustrate the benefits under the Income Plus for Life - Joint Life Rider. PRINCIPAL PLUS FOR LIFE SERIES Principal Plus for Life Series Definitions The following definitions apply to the Principal Plus for Life, Principal Plus for Life Plus Automatic Annual Step-up and Principal Plus for Life Plus Spousal Protection Riders: AGE 65 CONTRACT ANNIVERSARY means the Contract Anniversary on, or next following, the date the older Owner attains age 65. AGE 95 CONTRACT ANNIVERSARY means the Contract Anniversary on, or next following, the date the older Covered Person attains age 95. BONUS means an increase in the Guaranteed Withdrawal Balance on each Contract Anniversary during the Rider's Bonus Period if you take no withdrawals during the previous Contract Year. For these purposes, the initial Bonus Period is the first 10 Contract Years. In certain marketing materials, the Bonus may be referred to as the "Deferral Credit." BONUS PERIOD means (except for Principal Plus for Life and Principal Plus for Life Plus Automatic Annual Step-up Riders issued prior to May 1, 2007, and all Principal Plus for Life Plus Spousal Protection Riders), for the initial Bonus Period, the first 10 Contract Years. Each time a Step-up occurs, we will extend the Bonus Period to the lesser of: (a) 10 years from a Step-up Date; or (b) the Age 95 Contract Anniversary. BONUS PERIOD means (for Principal Plus for Life and Principal Plus for Life Plus Automatic Annual Step-up Riders issued prior to May 1, 2007, and for all Principal Plus for Life Plus Spousal Protection Riders) the first 10 Contract Years or each Contract Year up to the Contract Year in which the Covered Person attains age 80. COVERED PERSON means (for all Riders except Principal Plus for Life Plus Spousal Protection Riders): - The person whose life we use to determine the duration of the Lifetime Income Amount payments; - The oldest Owner at issue of the Rider or the oldest Annuitant in the case of a non-natural Owner. COVERED PERSON means (for Principal Plus for Life Plus Spousal Protection): - One of the two persons whose lives we use to determine the duration of the Lifetime Income Amount payments. - We determine the Covered Persons at the time you elect the Rider. A spouse must qualify as a "spouse" under federal law. For Non-Qualified Contracts, both the spouses must be named as co-Owners and co-Beneficiaries of the Contract (or co-Annuitants if the Owner is a non-natural person). Under Qualified Contracts: - one spouse must be named as the Owner (or Annuitant if the Owner is a non-natural person); and - the Owner's spouse must be the designated Beneficiary. D-20 A Covered Person will no longer qualify as such (i.e., that Covered Person will be removed from the Rider) if that person is no longer designated as an Owner, co-Owner, Annuitant, co-Annuitant or Beneficiary as required above. In the event that you and your spouse become divorced after you purchase the Rider, you may not add a new spouse as a Covered Person. If you remove your spouse as an Owner, Beneficiary or Annuitant, that person will no longer be a Covered Person under the Rider. (See page 37 for additional information on the impact of divorce.) EXCESS WITHDRAWAL means any withdrawal you take that causes total withdrawals during a Contract Year to exceed the Guaranteed Withdrawal Amount, or causes total withdrawals during a Contract Year to exceed the Lifetime Income Amount. GUARANTEED WITHDRAWAL AMOUNT means: - the amount we guarantee to be available each Contract Year for withdrawal during the Accumulation Period until the Guaranteed Withdrawal Balance is depleted; - the initial Guaranteed Withdrawal Amount is equal to 5% of the initial Guaranteed Withdrawal Balance; - the maximum Guaranteed Withdrawal Amount at any time is $250,000. GUARANTEED WITHDRAWAL BALANCE means: - The total amount we guarantee to be available for future periodic withdrawals during the Accumulation Period. - The initial Guaranteed Withdrawal Balance is equal to your initial Purchase Payment, up to the maximum Guaranteed Withdrawal Balance. - We adjust the Guaranteed Withdrawal Balance to reflect withdrawals, "Step-ups," "Bonuses" and Additional Purchase Payments as provided in the Rider. - The maximum Guaranteed Withdrawal Balance at any time is $5 million. LIFETIME INCOME AMOUNT means the amount we guarantee to be available each Contract Year for withdrawal during the Accumulation Period after the date you purchased the Rider (or the Lifetime Income Date, if later), as long as the Covered Person remains alive as an Owner or Annuitant of the Contract, subject to the terms and conditions of the Rider. We may reduce the Lifetime Income Amount to reflect withdrawals and Resets, and we may increase the Lifetime Income Amount to reflect Step-ups, Bonuses, a Target Amount adjustment and Additional Purchase Payments as provided in the Rider. LIFETIME INCOME DATE means the date on which we determine the Life Income Amount (under Principal Plus for Life, Principal Plus for Life Plus Automatic Annual Step-up and Principal Plus for Life Plus Spousal Protection). This will be the date you purchased the Rider if: - (for Principal Plus for Life and Principal Plus for Life Plus Automatic Annual Step-up Riders purchased on and after March 12, 2007) you were age 59 1/2 or older at the time; otherwise, the Lifetime Income Date is the Anniversary Date on, or immediately following, the date you attain age 59 1/2. - (for Principal Plus for Life and Principal Plus for Life Plus Automatic Annual Step-up Riders purchased before March 12, 2007) you were age 65 or older at the time; otherwise, the Lifetime Income Date is the Anniversary Date on, or immediately following, the date you attain age 65. - (for Principal Plus for Life Plus Spousal Protection) the older of you and your spouse were age 65 or older at the time; otherwise, the Anniversary Date on, or immediately following, the date the older spouse would attain age 65. (The Lifetime Income Date does not change if the older spouse does not survive to this date and the younger spouse is still a Covered Person under the Rider.) Under the Principal Plus for Life Plus Spousal Protection Rider, the Lifetime Income Date is: - the date we determine the initial Lifetime Income Amount, - the date you purchased the Rider, if the oldest Covered Person was age 65 at that time; otherwise - the Anniversary Date on, or immediately following, the date the oldest Covered Person would attain age 65. D-21 We provide the following examples of the Lifetime Income Date for Contracts purchased with a Principal Plus for Life Plus Spousal Protection Rider: Assume you purchased a Contract on NOVEMBER 1, 2006 with the Principal Plus for Life Plus Spousal Protection Rider. EXAMPLE #1 You are born July 1, 1941 and your spouse is born June 1, 1947. - Since the oldest Covered Person has attained age 65 at the time of purchase, we will calculate the Lifetime Income Date on November 1, 2006. We provide a Lifetime Income Amount starting on this date. EXAMPLE #2 You are born December 1, 1950 and your spouse is born October 1, 1956. - Since the oldest Covered Person attains age 65 on December 1, 2015, we will calculate the Lifetime Income Date on November 1, 2016. We provide a Lifetime Income Amount starting on this date. RESET means a reduction of the Guaranteed Withdrawal Balance, Guaranteed Withdrawal Amount or the Lifetime Income Amount if your annual withdrawals of Contract Value exceed the Guaranteed Withdrawal Amount or Lifetime Income Amount. STEP-UP means an increase in the Guaranteed Withdrawal Balance, Guaranteed Withdrawal Amount or Lifetime Income Amount on certain Contract Anniversary dates to reflect market performance that exceeds previously calculated benefits. STEP-UP DATE means the date on which we determine whether a Step-up could occur. Principal Plus, Principal Plus for Life The optional Principal Plus and Principal Plus for Life Riders provide a guaranteed minimum withdrawal benefit during the Accumulation Period. In particular, these Riders guarantee the return of your investments in the Contract, regardless of market performance, as long as you limit your withdrawals to a Guaranteed Withdrawal Amount each year, beginning on the date you purchased the Rider. The initial Guaranteed Withdrawal Amount equals 5% of your initial Purchase Payment for the Contract. (We do not count Purchase Payment amounts over $5 million or, for Contracts issued in New York with a Payment Enhancement Rider, any Payment Enhancement attributable to the Purchase Payment for this purpose.) You can withdraw the Guaranteed Withdrawal Amount each year until the "Guaranteed Withdrawal Balance" is depleted to zero. In addition, we designed the Principal Plus for Life Rider to permit you to withdraw a minimum annual amount, the Lifetime Income Amount, starting on a Lifetime Income Date. If you limit your annual withdrawals to the Lifetime Income Amount, we will make this benefit available to you as long as the Covered Person is alive and an Owner, Beneficiary or Annuitant under the Contract, even after you have recovered your investments in the Contract and even if your Contract Value reduces to zero. IMPACT OF WITHDRAWALS. We decrease the Guaranteed Withdrawal Balance each time you make a withdrawal. If your total withdrawals during a Contract Year are less than or equal to the Guaranteed Withdrawal Amount, we will decrease the Guaranteed Withdrawal Balance by the amount of the withdrawals. If a withdrawal causes total withdrawals during a Contract Year to exceed the Guaranteed Withdrawal Amount (or if total withdrawals during a Contract Year have already exceeded the Guaranteed Withdrawal Amount), we will automatically Reset the Guaranteed Withdrawal Balance to equal the lesser of: - the Contract Value immediately after the withdrawal; or - the Guaranteed Withdrawal Balance immediately prior to the withdrawal minus the amount of the withdrawal. Each time we Reset the Guaranteed Withdrawal Balance, we also recalculate the Guaranteed Withdrawal Amount. The Guaranteed Withdrawal Amount will equal the lesser of: - the Guaranteed Withdrawal Amount prior to the withdrawal; or - 5% of the greater of the Contract Value after the withdrawal or the new Guaranteed Withdrawal Balance value. Under Principal Plus for Life, we also will recalculate the Lifetime Income Amount after the Lifetime Income Date if a withdrawal causes total withdrawals during a Contract Year to exceed the Lifetime Income Amount (or if total withdrawals during a Contract Year have already exceeded the Lifetime Income Amount). In that case, the Lifetime Income Amount will equal the lesser of: - the Lifetime Income Amount prior to the withdrawal; or D-22 - 5% of the greater of the Contract Value immediately after the withdrawal or the new Guaranteed Withdrawal Balance value. In certain circumstances, however, we will not Reset the Guaranteed Withdrawal Balance, Guaranteed Withdrawal Amount and/or (under Principal Plus for Life) the Lifetime Income Amount, even where a withdrawal would exceed the Guaranteed Withdrawal Amount and/or Lifetime Income Amount for a Contract Year. These involve withdrawals taken as "Life Expectancy Distributions" under an automatic distribution program provided by us (see "Life Expectancy Distribution Program" below). We do not change your Guaranteed Withdrawal Amount when you make a withdrawal if your total withdrawals during a Contract Year are less than or equal to the Guaranteed Withdrawal Amount. If your withdrawals are less than the full Guaranteed Withdrawal Amount available in any Contract Year, the remaining Guaranteed Withdrawal Amount cannot be carried forward to the next Contract Year. Under Principal Plus for Life, we do not change your Lifetime Income Amount when you make a withdrawal if your total withdrawals during a Contract Year are less than or equal to the Lifetime Income Amount. Under Principal Plus for Life, if you take any withdrawals prior to the Lifetime Income Date, the initial amount of the Lifetime Income Amount may be less than the Guaranteed Withdrawal Amount. Although you may continue to take withdrawals up to the Guaranteed Withdrawal Amount after the Lifetime Income Date without reduction of the Guaranteed Withdrawal Amount benefit (as long as there is a positive Guaranteed Withdrawal Balance value) your Lifetime Income Amount benefit may be reduced if the amount you withdraw exceeds the Lifetime Income Amount. You could eventually lose any benefit based on the Lifetime Income Amount if you continue to take withdrawals in excess of the Lifetime Income Amount. Principal Plus enters a "Settlement Phase" if a withdrawal less than or equal to the Guaranteed Withdrawal Amount reduces the Contract Value to zero but the Guaranteed Withdrawal Balance immediately after the withdrawal is greater than zero (see "Settlement Phase" below). The Principal Plus benefit terminates if the Contract Value and Guaranteed Withdrawal Balance immediately after a withdrawal are both equal to zero (See "Rider Fees" and "Termination"). Principal Plus for Life enters a "Settlement Phase" if a withdrawal less than or equal to the Guaranteed Withdrawal Amount reduces the Contract Value to zero but either the Guaranteed Withdrawal Balance or the Lifetime Income Amount immediately after the withdrawal is greater than zero (see "Settlement Phase," below). The Principal Plus for Life benefit terminates if the Contract Value, Guaranteed Withdrawal Balance and Lifetime Income Amount immediately after a withdrawal are all equal to zero (see "Rider Fees" on page D-4, and "Termination," below). If your annual withdrawals exceed the Guaranteed Withdrawal Amount, we will recalculate amounts we guarantee for future withdrawals. We may Reset the Guaranteed Withdrawal Balance, Guaranteed Withdrawal Amount and, Lifetime Income Amount (under Principal Plus for Life) values to reflect reductions that exceed the amount of your withdrawals. A Reset also may reduce the total amount guaranteed below the total of your Purchase Payments and may reduce or eliminate future Guaranteed Withdrawal Amount and (under Principal Plus for Life) Lifetime Income Amount values. Withdrawals in excess of the Lifetime Income Amount may reduce or eliminate future Lifetime Income Amount values. INCREASES IN THE GUARANTEED WITHDRAWAL BALANCE. We will increase the Guaranteed Withdrawal Balance: - by any applicable Bonus if you take no withdrawals during certain Contract Years; - by any applicable "Step-up" to reflect certain increases in Contract Value; and - to reflect Additional Purchase Payments (see "Purchase Payments" above). Bonuses, when applied, will increase the Guaranteed Withdrawal Balance and may increase the Guaranteed Withdrawal Amount and (under Principal Plus for Life) the Lifetime Income Amount. BONUSES. We will increase the Guaranteed Withdrawal Balance on each Contract Anniversary during a Bonus Period if you take no withdrawals during the previous Contract Year. For these purposes, the Bonus Period under Principal Plus is the first 5 Contract Years. The initial Bonus Period under Principal Plus for Life is the first 10 Contract Years, or (for Contracts issued prior to May 1, 2007) each Contract Year up to the Contract Year in which the Covered Person attains age 80. For Principal Plus for Life Series Contracts issued on or after May 1, 2007, it is the first 10 Contract Years. Each time a Step-up occurs, we will extend the Bonus Period to the lesser of: (a) 10 years from a Step-up Date; or (b) the Age 95 Contract Anniversary. Each time you qualify for a Bonus, we will increase the Guaranteed Withdrawal Balance: - by an amount equal to 5% of total Purchase Payments to the Contract if you did not previously Step-up the Guaranteed Withdrawal Balance and/or we did not previously Reset the Guaranteed Withdrawal Balance (see "Impact of Withdrawals" above); otherwise - by an amount equal to 5% of the Guaranteed Withdrawal Balance immediately after the latest Step-up or Reset, increased by any Purchase Payments received since such latest Step-up or Reset. Each time we apply a Bonus to the Guaranteed Withdrawal Balance, we will also recalculate the Guaranteed D-23 Withdrawal Amount. The Guaranteed Withdrawal Amount will equal the greater of the Guaranteed Withdrawal Amount prior to the Bonus or 5% of the Guaranteed Withdrawal Balance after the Bonus. Under Principal Plus for Life, we will also recalculate the Lifetime Income Amount to equal the greater of the Lifetime Income Amount prior to the Bonus or 5% of the Guaranteed Withdrawal Balance after the Bonus. Step-ups will increase the Guaranteed Withdrawal Balance and may increase the Guaranteed Withdrawal Amount and the Lifetime Income Amount. STEP-UPS. If the Contract Value on any Step-up Date is greater than the Guaranteed Withdrawal Balance (including any Bonus) on that date, we will automatically Step-up the Guaranteed Withdrawal Balance to equal the Contract Value (subject to the maximum Guaranteed Withdrawal Balance limit of $5 million). Each time we apply a Step-up, we also recalculate the Guaranteed Withdrawal Amount and the Lifetime Income Amount (with respect to Principal Plus for Life), and the Rider Fee (see "Fee for Principal Plus for Life"). The recalculated Guaranteed Withdrawal Amount will equal the greater of the Guaranteed Withdrawal Amount prior to the Step-up or 5% of the Guaranteed Withdrawal Balance value after the Step-up, and the Lifetime Income Amount will equal the greater of the Lifetime Income Amount prior to the Step-up or 5% of the Guaranteed Withdrawal Balance value after the Step-up. We also reserve the right to increase at the time of a Step-up the rate of the Rider fee up to a maximum rate of 0.75%. If we decide to increase the rate at the time of a Step-up, you will receive advance notice and be given the opportunity of no less than 30 days to decline the automatic Step-up (see "Fee for Principal Plus for Life"). If you decline the Step-up, the fee rate will not be increased. The Step-up Dates occur only while a Principal Plus or Principal Plus for Life Rider is in effect. Under Principal Plus and for Contracts issued with the Principal Plus for Life Rider before February 13, 2006, we schedule the Step-up Dates for every 3rd Contract Anniversary after the Contract Date (e.g. 3rd, 6th, 9th etc.), up to and including the 30th Contract Anniversary. Contracts issued with the Principal Plus for Life Rider on and after February 13, 2006 (may vary by state) contain an enhanced schedule of Step-up Dates. Under this enhanced schedule, after the 3rd, 6th and 9th Contract Anniversary after the Contract Date, Step-up Dates under Principal Plus for Life include each succeeding Contract Anniversary on and after the 9th Contract Anniversary (i.e., the 10th, 11th, 12th, etc.) up to and including the Age 95 Contract Anniversary. (In Oregon, we limit the duration of Step-up Dates to a maximum of 50 Contract Years.) If you purchased a Principal Plus for Life Rider without the enhanced schedule, we may have issued a special endorsement, in states where approved, after we issued your Contract. This special endorsement to the Principal Plus for Life Rider increases Step-up Dates to include each succeeding Contract Anniversary on and after the 9th Contract Anniversary (e.g., the 10th, 11th, 12th etc.) up to and including the Age 95 Contract Anniversary. In such cases, an affected Owner may decline the endorsement within 30 days of its issuance. If so, we will only schedule Step-up Dates under the original schedule. Step-ups under Principal Plus. Under Principal Plus, you may elect to Step-up the Guaranteed Withdrawal Balance (and Guaranteed Withdrawal Amount, if applicable) to the recalculated value within 30 days following each Step-up Date. Subject to state approval, however, we may issue a special endorsement to the Principal Plus Rider after we have issued the Contract. Under this special endorsement to the Principal Plus Rider, we will automatically increase the Guaranteed Withdrawal Balance (and Guaranteed Withdrawal Amount, if applicable) to equal a higher recalculated value. In such cases, an affected Owner may decline the endorsement within 30 days of its issuance. If so, you will then need to elect a Step-up within 30 days of the respective Step-up Date if you choose to make it effective. If you decline a scheduled Step-up, you will have the option to elect to Step-up the Guaranteed Withdrawal Balance (as well as the Guaranteed Withdrawal Amount) within 30 days of subsequent Step-up Dates. If you decide to Step-up the Guaranteed Withdrawal Balance and the special endorsement to your Principal Plus Rider is in effect, we will thereafter resume automatic Step-ups on each succeeding Step-up Date. Step-ups under Principal Plus for Life. We will automatically increase (Step-up) the Guaranteed Withdrawal Balance to equal the Contract Value (subject to the maximum Guaranteed Withdrawal Balance limit of $5 million). Each time we apply a Step-up, we will also recalculate the Guaranteed Withdrawal Amount, the Lifetime Income Amount, and the Rider Fee as described above. The Guaranteed Withdrawal Amount will equal the greater of the Guaranteed Withdrawal Amount prior to the Step-up or 5% of the new Guaranteed Withdrawal Balance value after the Step-up and the Lifetime Income Amount will equal the greater of the Lifetime Income Amount prior to the Step-up or 5% of the new Guaranteed Withdrawal Balance value after the Step-up. We also reserve the right to increase the rate of the Principal Plus for Life fee up to a maximum rate of 0.75%. If we decide to increase the rate at the time of a Step-up, you will receive advance notice and be given the opportunity of no less than 30 days to decline the automatic Step-up (see "Rider Fees"). If you decline an automatic scheduled Step-up, you will have the option to elect to Step-up the Guaranteed Withdrawal Balance (as well as the Guaranteed Withdrawal Amount and Lifetime Income Amount) within 30 days of subsequent Step-up Dates. If you decide to Step-up the Guaranteed Withdrawal Balance, we will thereafter resume automatic Step-ups. D-24 LIFE EXPECTANCY DISTRIBUTION PROGRAM. You may request us in writing, in a form acceptable to us and received by us at our Annuities Service Center, to pay you withdrawals that we determine to be part of a series of substantially equal periodic payments over your "life expectancy" (or, if applicable, the joint life expectancy of you and your spouse). Withdrawals under our Life Expectancy Distribution program are distributions within a calendar year that are intended to be paid to you: - pursuant to Code Section 72(q)(2)(D) or Section 72(t)(2)(A)(iv) upon the request of the Owner (we sometimes refer to these as "Pre-59 1/2 Distributions"); or - pursuant to Code Section 72(s)(2) upon the request of the Beneficiary (we sometimes refer to these as "Non-Qualified Death Benefit Stretch Distributions"); or - as required or contemplated by Code Section 401(a)(9), Section 403(b)(10), Section 408(b)(3), or Section 408A, as the case may be (we sometimes refer to these as "Qualified Death Benefit Stretch Distributions" or "Required Minimum Distributions"). Under our Life Expectancy Distribution program, each withdrawal will be in an amount that we determine to be your Contract's proportional share of all life expectancy distributions, based on information that you provide and our understanding of the Code. We reserve the right to make any changes we deem necessary to comply with the Code and Treasury Regulations. We base our life expectancy calculations on our understanding and interpretation of the requirements under tax law applicable to Pre-59 1/2 Distributions, Required Minimum Distributions, Non-Qualified Death Benefit Stretch Distributions and Qualified Death Benefit Stretch Distributions. You should discuss these matters with your tax advisor for further information. Each withdrawal under our Life Expectancy Distribution program will reduce your Contract Value and your Guaranteed Withdrawal Balance. We will not, however, Reset your Guaranteed Withdrawal Balance, Guaranteed Withdrawal Amount or the Lifetime Income Amount (with respect to Principal Plus for Life) if a withdrawal under our Life Expectancy Distribution program (based on our current understanding and interpretation of the tax law) causes total withdrawals during a Contract Year to exceed the Guaranteed Withdrawal Amount or Lifetime Income Amount, as applicable, and all withdrawals during that year were under our Life Expectancy Distribution Program. For Principal Plus, the Company's "Life Expectancy Amount" for each year is equal to the greater of: - the Contract Value as of the applicable date divided by the Owner's life expectancy; or - the Guaranteed Withdrawal Balance as of the applicable date divided by the Owner's life expectancy. For purposes of these Life Expectancy Amount calculations, the Owner's life expectancy will be determined using the applicable mortality tables (Uniform Table, if allowable) approved by the Internal Revenue Service for such specific purpose under the latest guidance or regulations, as of September 30, 2003, issued under the relevant section of the Code referred to above. In the future, the requirements under tax law for such distributions may change and the Life Expectancy Amount calculation provided under Principal Plus may not be sufficient to satisfy the requirement under tax law for these types of distributions. In such a situation, amounts withdrawn to satisfy such distribution requirements will exceed the Life Expectancy Amount and may result in a Reset of the Guaranteed Withdrawal Balance and the Guaranteed Withdrawal Amount. Please discuss these matters with your tax advisor for more information on Principal Plus. We will not make any further withdrawals under our Life Expectancy Distribution program if both the Contract Value and the Guaranteed Withdrawal Balance are depleted to zero. If your Contract includes Principal Plus for Life, we will make distributions as part of the "Settlement Phase," however, if the Lifetime Income Amount is greater than zero and the Covered Person is living at that time. We designed our Life Expectancy Distribution Program to provide minimum lifetime distributions as described or as required under certain sections of the Code. Withdrawals under our automatic Life Expectancy Distribution program will not be treated as Excess Withdrawals and will not Reset the Guaranteed Withdrawal Balance, Guaranteed Withdrawal Amount or (with respect to Principal Plus for Life) the Lifetime Income Amount. SETTLEMENT PHASE. The Settlement Phase is when we will automatically begin making payments to you, should your Contract Value reduce to zero, subject to the conditions described herein. Under Principal Plus, the Settlement Phase begins if withdrawals during the Contract Year are equal to or less than the Guaranteed Withdrawal Amount, the Contract Value reduces to zero and the Guaranteed Withdrawal Balance immediately after the withdrawal is still greater than zero. Under Principal Plus for Life, the Settlement Phase begins if total withdrawals during the Contract Year are equal to or less than the Guaranteed Withdrawal Amount, the Contract Value reduces to zero and either the Guaranteed Withdrawal Balance or the Lifetime Income Amount immediately after the withdrawal is still greater than zero. During the Settlement Phase under either Rider, your Contract will continue but all other rights and benefits under the Contract, including death benefits and any additional Riders, terminate. We will not accept Additional Purchase Payments and we will not deduct any charge for either Rider during the Settlement Phase. At the beginning of the Settlement Phase, you generally may choose an annual settlement payment amount that we will automatically pay to you. The settlement payment amount we permit you to choose varies, as described in the following sections. D-25 Principal Plus Settlement Phase. At the beginning of Principal Plus's Settlement Phase, you may choose settlement payments that total an amount no greater than the Guaranteed Withdrawal Amount, or Life Expectancy Distributions if applicable, to be paid to you automatically each Contract Year until the Guaranteed Withdrawal Balance depletes to zero (see "Life Expectancy Distribution Program"). If the Guaranteed Withdrawal Amount or the Life Expectancy Distribution, if applicable, for a Contract Year exceeds the Guaranteed Withdrawal Balance, however, then the settlement payment for that Contract Year will be limited to the Guaranteed Withdrawal Balance. The settlement payments will be paid no less frequently than annually. If any Owner dies during Principal Plus's Settlement Phase, remaining settlement payments will be paid to the Beneficiary and are subject to the distribution provisions of the "Death Benefit Before Maturity Date" section of the Contract described in the "Accumulation Period Provisions - Payment of Death Benefit" provision of this Prospectus. This provision is also applicable if the Beneficiary does not take the death benefit as a lump sum under our current administrative procedures and Principal Plus continues (as described in "Impact of Death Benefits," below) and death benefit distributions deplete the death benefit to zero. When this occurs, settlement payments made in Principal Plus's Settlement Phase are subject to the distribution provisions of the "Death Benefit Before Maturity Date" section of the Contract described in the "Accumulation Period Provisions - Payment of Death Benefit" provision of this Prospectus. Principal Plus for Life Settlement Phase. At the beginning of Principal Plus for Life's Settlement Phase, the settlement payment amount we permit you to choose varies: - You may choose an amount that is no greater than, or equal to, the Guaranteed Withdrawal Amount if the Guaranteed Withdrawal Balance is greater than zero at the beginning of the Settlement Phase. We reduce any remaining Guaranteed Withdrawal Balance each time we make a settlement payment, and automatically pay the settlement amount to you each Contract Year while the Covered Person is alive until the Guaranteed Withdrawal Balance reduces to zero. After that, we will make settlement payments to you each Contract Year during the Covered Person's lifetime in an amount that is equal to any remaining Lifetime Income Amount value. Keep in mind that in certain circumstances the Lifetime Income Amount may be less than the Guaranteed Withdrawal Amount, and under those circumstances your choice of an amount in excess of the Lifetime Income Amount could result in a reduction of the Lifetime Income Amount (see "Impact of Withdrawals"). - You may choose to continue to receive distribution payments under the Life Expectancy Distribution program if the program is in effect under your Contract and the Guaranteed Withdrawal Balance is greater than zero at the beginning of the Settlement Phase. If you do, we will reduce any remaining Guaranteed Withdrawal Balance each time we make a distribution payment and automatically make distribution payments each Contract Year while the Covered Person is alive until the Guaranteed Withdrawal Balance reduces to zero (see "Life Expectancy Distribution Program"). After that, we will make settlement payments to you each Contract Year during the Covered Person's lifetime in an amount that is equal to any remaining Lifetime Income Amount value. - We will make settlement payments to you each Contract Year during the Covered Person's lifetime in an amount that is equal to the Lifetime Income Amount if there is no remaining Guaranteed Withdrawal Balance at the beginning of the Settlement Phase. If the Covered Person is alive when the Guaranteed Withdrawal Balance is depleted, we will continue to make settlement payments each Contract Year during the Covered Person's lifetime in an amount that is equal to the Lifetime Income Amount. - After the Lifetime Income Date, if you choose to receive a settlement payment that is in excess of the Lifetime Income Amount, we will recalculate the Lifetime Income Amount in the same manner as a withdrawal that exceeds the Lifetime Income Amount (see "Impact of Withdrawals" above). We do not recalculate the Lifetime Income Amount, however, if you receive distribution payments under the Life Expectancy Distribution program. IMPACT OF DEATH BENEFITS. If a death benefit becomes payable during the Accumulation Period but before the Settlement Phase, Principal Plus and Principal Plus for Life will end if the Beneficiary takes the death benefit provided under the terms of the Contract as a lump sum under our current administrative procedures. D-26 Continuation of Principal Plus. If the Beneficiary elects not to take the death benefit as a lump sum, the following will apply:
IF THE BENEFICIARY IS: THEN PRINCIPAL PLUS: - ------------------------- ---------------------------------------------------- 1. The deceased Owner's - Continues if the Guaranteed Withdrawal Balance spouse is greater than zero. - Within 30 days following the date we determine the death benefit under the Contract, provides the Beneficiary with an option to elect to Step-up the Guaranteed Withdrawal Balance if the death benefit on the date of determination is greater than the Guaranteed Withdrawal Balance. - Enters the Settlement Phase if a withdrawal would deplete the Contract Value to zero, and the Guaranteed Withdrawal Balance is still greater than zero. (Death benefit distributions will be treated as withdrawals. Some methods of death benefit distribution may result in distribution amounts in excess of both the Guaranteed Withdrawal Amount and the Life Expectancy Distributions. In such cases, the Guaranteed Withdrawal Balance may be automatically Reset, thereby possibly reducing the Guaranteed Minimum Withdrawal Benefit provided under this Rider). - Continues to impose the Principal Plus fee. - Continues to be eligible for any remaining Bonuses and Step-ups, but we will change the date we determine and apply these benefits to future anniversaries of the date we determine the initial death benefit. Remaining eligible Step-up Dates will also be measured beginning from the death benefit determination date but the latest Step-up Date will be no later than the 30th Contract Anniversary after the Contract Date. 2. Not the deceased - Continues in the same manner as above, except Owner's spouse that Principal Plus does not continue to be eligible for any remaining Bonuses and Step-ups, other than the initial Step-up of the Guaranteed Withdrawal Balance to equal the death benefit, if greater than the Guaranteed Withdrawal Balance prior to the death benefit.
If the Beneficiary does not take the death benefit as a lump sum under the terms of the Contract and Principal Plus continues, we will determine the Adjusted Guaranteed Withdrawal Balance and the fee based on the date we determine the death benefit, and anniversaries of that date, instead of the initial Contract Anniversary date. Continuation of Principal Plus for Life. If the Beneficiary elects not to take the death benefit as a lump sum, the following will apply:
IF THE DECEASED OWNER IS: THEN PRINCIPAL PLUS FOR LIFE: - ------------------------- ---------------------------------------------------- 1. The Covered Person - Does not continue with respect to the Lifetime and the Beneficiary Income Amount, but continues with respect to is the deceased the Guaranteed Withdrawal Amount if the death Owner's spouse benefit or the Guaranteed Withdrawal Balance is greater than zero. We will automatically Step-up the Guaranteed Withdrawal Balance to equal the initial death benefit we determine, if greater than the Guaranteed Withdrawal Balance prior to the death benefit. - Enters the Settlement Phase if a withdrawal would deplete the Contract Value to zero, and the Guaranteed Withdrawal Balance is still greater than zero. - Continues to impose the Principal Plus for Life fee. - Continues to be eligible for any remaining Bonuses and Step-ups, but we will change the date we determine and apply these benefits to future anniversaries of the date we determine the initial death benefit. We will permit the spouse to opt out of the initial death benefit Step-up, if any, and any future Step-ups if we increase the rate of the Principal Plus for Life fee at that time. 2. The Covered Person - Continues in the same manner as 1, except that and the Beneficiary Principal Plus for Life does not continue to be is not the deceased eligible for any remaining Bonuses and Owner's spouse Step-ups, other than the initial Step-up of the Guaranteed Withdrawal Balance to equal the death benefit, if greater than the Guaranteed Withdrawal Balance prior to the death benefit. We will permit the Beneficiary to opt out of the initial death benefit Step-up, if any, if we increase the rate of the Principal Plus for Life fee at that time. 3. Not the Covered - Continues in the same manner as 1, except that Person and the Principal Plus for Life continues with respect Beneficiary is the to the Lifetime Income Amount for the deceased Owner's Beneficiary. If the Lifetime Income Amount has spouse not been determined prior to the payment of any portion of the death benefit, we will determine the initial Lifetime Income Amount on an anniversary of the date we determine the death benefit after the Covered Person has reached his or her Lifetime Income Date.
D-27
THEN IF THE DECEASED OWNER IS: PRINCIPAL PLUS FOR LIFE: - ------------------------- ---------------------------------------------------- 4. Not the Covered - Continues in the same manner as 1, except that Person and the Principal Plus for Life continues with respect Beneficiary is not to the Lifetime Income Amount for the the deceased Owner's Beneficiary. If the Lifetime Income Amount has spouse not been determined prior to the payment of any portion of the death benefit, we will determine the initial Lifetime Income Amount on an anniversary of the date we determine the death benefit after the Covered Person has reached his or her Lifetime Income Date. - In this case, Principal Plus for Life does not continue to be eligible for any remaining Bonuses and Step-ups, other than the initial Step-up of the Guaranteed Withdrawal Balance to equal the death benefit, if greater than the Guaranteed Withdrawal Balance prior to the death benefit. We will permit the Beneficiary to opt out of the initial death benefit Step-up, if any, if we increase the rate of the Principal Plus for Life fee at that time.
If the Beneficiary does not take the death benefit as a lump sum under the terms of the Contract and Principal Plus for Life continues, we will determine the Adjusted Guaranteed Withdrawal Balance and the fee based on the date we determine the death benefit, and anniversaries of that date, instead of the initial Contract Anniversary date. Death benefits during the Settlement Phase. If you die during the Settlement Phase, the only death benefits we provide are the remaining settlement payments that may become due under the Principal Plus or Principal Plus for Life Rider. Under the Principal Plus for Life Rider, we reduce the Lifetime Income Amount to zero if the Covered Person dies during the Settlement Phase. If the Beneficiary is the deceased Owner's spouse, the surviving spouse may choose the amount of the settlement payments up to the Guaranteed Withdrawal Amount. If the Beneficiary is not the deceased Owner's spouse, the Beneficiary may choose to receive any remaining settlement payments over a period not extending beyond the life expectancy of the Beneficiary beginning within one year of the Owner's death. Otherwise, the entire interest must be distributed within five years of the Owner's death. TERMINATION. You may not terminate either the Principal Plus or the Principal Plus for Life Rider once it is in effect. The respective Rider terminates automatically, however, upon the earliest of: - the date a death benefit is payable and the Beneficiary takes the death benefit as a lump sum under the terms of the Contract; or - under Principal Plus, the date the Guaranteed Withdrawal Balance depletes to zero; or - under Principal Plus for Life, the date the Contract Value, the Guaranteed Withdrawal Balance and the Lifetime Income Amount all equal zero; or - under Principal Plus, the Maturity Date; or - under Principal Plus for Life, the date an Annuity Option begins; or - termination of the Contract. We impose an additional annual fee for a Principal Plus or Principal Plus for Life Rider to a Contract. Under Principal Plus for Life, the Covered Person must attain age 65 (59 1/2 for Principal Plus for Life Riders issued on or after March 12, 2007) and remain living for you to receive certain benefits. Furthermore, these Riders limit the Investment Options otherwise available under the Contract, contain age caps and limitations on a Contract Owner's rights and benefits at certain ages and values, and provide no guaranteed withdrawal benefits once payments begin under any of the Annuity Options described elsewhere in the Prospectus. EXAMPLES. We provide hypothetical examples that illustrate the benefits under the Principal Plus and Principal Plus for Life Riders at the end of this Appendix. Principal Plus for Life Plus Automatic Annual Step-up This version of the Principal Plus for Life optional benefit Rider is the same as the Principal Plus for Life optional benefit Rider, except that it provides annual "Step-up Dates" and we charge a different fee (see "Rider Fees" above). Please refer to the description of Principal Plus for Life, above, for a general overview of this Rider. IMPACT OF WITHDRAWALS. Please refer to the description of Principal Plus for Life, above, for information on the impact of withdrawals on the Guaranteed Withdrawal Balance, Guaranteed Withdrawal Amount and Lifetime Income Amount. If your annual withdrawals exceed the Guaranteed Withdrawal Amount, we will recalculate amounts we guarantee for future withdrawals. We may Reset Guaranteed Withdrawal Balance, Guaranteed Withdrawal Amount and Lifetime Income Amount values to reflect reductions that exceed the amount of your withdrawals. A Reset also may reduce the total amount guaranteed below the total of your Purchase Payments and may reduce or eliminate future Guaranteed Withdrawal Amount and Lifetime Income Amount values. Withdrawals in excess of the Lifetime Income Amount may reduce or eliminate future Lifetime Income Amount values. D-28 INCREASES IN THE GUARANTEED WITHDRAWAL BALANCE. We will increase the Guaranteed Withdrawal Balance: - by any applicable Bonus if you take no withdrawals during certain Contract Years; - by any applicable "Step-up" to reflect certain increases in Contract Value; and - to reflect Additional Purchase Payments (see "Purchase Payments" in "Description of the Contract - Accumulation Period Provisions"). BONUSES. We will increase the Guaranteed Withdrawal Balance on each Contract Anniversary during a Bonus Period if you take no withdrawals during the previous Contract Year. The initial Bonus Period under Principal Plus for Life Plus Automatic Annual Step-up is the first 10 Contract Years, or (for Contracts issued prior to May 1, 2007) each Contract Year up to the Contract Year in which the Covered Person attains age 80. For Contracts issued on or after May 1, 2007, it is the first 10 Contract Years. Each time a Step-up occurs, we will extend the Bonus Period to the lesser of: (a) 10 years from a Step-up Date; or (b) the Age 95 Contract Anniversary. Each time you qualify for a Bonus, we will increase the Guaranteed Withdrawal Balance: - by an amount equal to 5% of total Purchase Payments to the Contract if you did not previously Step-up the Guaranteed Withdrawal Balance and/or we did not previously Reset the Guaranteed Withdrawal Balance (see "Impact of Withdrawals" above); otherwise - by an amount equal to 5% of the Guaranteed Withdrawal Balance immediately after the latest Step-up or Reset, increased by any Purchase Payments received since such latest Step-up or Reset. Each time we apply a Bonus to the Guaranteed Withdrawal Balance, we will also recalculate the Guaranteed Withdrawal Amount. The Guaranteed Withdrawal Amount will equal the greater of the Guaranteed Withdrawal Amount prior to the Bonus or 5% of the Guaranteed Withdrawal Balance after the Bonus. Under Principal Plus for Life, we will also recalculate the Lifetime Income Amount to equal the greater of the Lifetime Income Amount prior to the Bonus or 5% of the Guaranteed Withdrawal Balance after the Bonus. STEP-UPS. If you elected this Rider, we will automatically increase ("Step-up") the Guaranteed Withdrawal Balance (including any Bonus) to equal the Contract Value on each Contract Anniversary starting with the first Contract Anniversary up to and including the Age 95 Contract Anniversary while the Rider is in effect, provided the Contract Value is greater than the Guaranteed Withdrawal Balance on that date (and provided you have not chosen to decline the Step-up as described under "Principal Plus for Life - Step-ups"). (In Oregon, we limit the maximum duration of Step-up Dates to 50 years.) Each time we apply a Step-up, we will also recalculate the Guarantee Withdrawal Amount and the Lifetime Income Amount as described in "Principal Plus for Life - Step-ups" above. We also reserve the right to increase the rate of the Principal Plus for Life Plus Automatic Annual Step-up Rider fee up to a maximum rate of 1.20% of the adjusted Guaranteed Withdrawal Balance. If we decide to increase the rate at the time of a Step-up, you will receive advance notice and be given the opportunity of no less than 30 days to decline the automatic Step-up. If you decline the Step-up, the fee rate will not be increased. If you decline an automatic Step-up, you will have the option to elect to Step-up the Guaranteed Withdrawal Balance (as well as the Guaranteed Withdrawal Amount and Lifetime Income Amount) within 30 days of subsequent annual Step-up Dates. If you decide to Step-up the Guaranteed Withdrawal Balance, we will thereafter resume automatic annual Step-ups. We impose an additional annual fee for Step-ups, and we provide no assurance that your Contract Value will be sufficient on any Step-up Date to receive an increase in the guarantees we provide under a Principal Plus for Life Plus Automatic Annual Step-up Rider. The amount that may be provided by more frequent Step-up Dates under the Rider, may, over time, be more than offset by the additional fee associated with this Rider compared to the Principal Plus for Life Rider fee. Similar to Principal Plus for Life, this Rider limits the investment options otherwise available under the Contract, requires the Covered Person to attain age 65 (59 1/2 for Riders issued on or after March 12, 2007) and remain living for you to receive certain benefits, contains age caps and limitations on a Contract Owner's rights and benefits at certain ages and values, and provides no guaranteed withdrawal benefits once payments begin under any of the Annuity Options described in the Prospectus. EXAMPLES. We provide hypothetical examples that illustrate the benefits under the Principal Plus for Life Plus Automatic Annual Step-up Rider at the end of this Appendix. Principal Plus for Life Plus Spousal Protection The optional Principal Plus for Life Plus Spousal Protection Rider provides a guaranteed minimum withdrawal benefit during the Accumulation Period. In particular, this Rider guarantees the return of your investments in the Contract, regardless of market performance, as long as you limit your withdrawals to a Guaranteed Withdrawal Amount each year, beginning on the date you purchase the Rider. The initial Guaranteed Withdrawal Amount equals 5% of your initial Purchase Payment for the Contract. (We do not count Purchase Payment amounts over $5 million for this purpose.) You can withdraw the Guaranteed Withdrawal Amount each year until the "Guaranteed Withdrawal Balance" is depleted to zero. In addition, we designed the Principal Plus for Life Plus Spousal Protection Rider to permit you to withdraw a minimum annual amount, called the Lifetime Income Amount, starting on a Lifetime Income Date. If you limit your annual withdrawals to the Lifetime Income Amount, we will make this benefit available as long as either Covered Person remains alive and an Owner, Beneficiary or D-29 Annuitant under the Contract, even if your Contract Value reduces to zero. The Lifetime Income Amount reduces to zero upon the death of the last Covered Person or upon a change in Owner, Beneficiary or Annuitant that removes the last Covered Person from the Contract as an Owner, Beneficiary or Annuitant. IMPACT OF WITHDRAWALS. Please refer to the description of Principal Plus for Life, above, for information on the impact of withdrawals on the Guaranteed Withdrawal Balance, Guaranteed Withdrawal Amount and Lifetime Income Amount. INCREASES IN THE GUARANTEED WITHDRAWAL BALANCE. We will increase the Guaranteed Withdrawal Balance: - by any applicable Bonus if you take no withdrawals during certain Contract Years; - by any applicable "Step-up" to reflect certain increases in Contract Value; and - to reflect Additional Purchase Payments (see "Purchase Payments" above). BONUSES. We will increase the Guaranteed Withdrawal Balance on each Contract Anniversary during the Bonus Period if you take no withdrawals during the previous Contract Year as described under "Principal Plus, Principal Plus for Life - Bonuses" above. The Bonus Period for the Principal Plus for Life Plus Spousal Protection Rider is the lesser of the first 10 Contract Years or each Contract Year up to the Contract Year in which the younger of the two Covered Persons attains age 80. If you purchased the Principal Plus for Life Plus Spousal Protection Rider to replace a Principal Plus for Life Rider, and the additional Covered Person is the younger of the two Covered Persons, the Bonus Period will be based on the age of that Covered Person as of the initial Contract Date. If you elected the Spousal version of the Principal Plus for Life Rider when you purchase a Contract, the Bonus Period is determined on the Contract Date. The Bonus Period will not change upon the death of either Covered Person. STEP-UPS. The Principal Plus for Life Plus Spousal Protection Rider is subject to the Step-up benefit as described above for the Principal Plus for Life Rider (see "Principal Plus, Principal Plus for Life - Step-ups"). We schedule the Step-up Dates for the 3rd, 6th, and 9th Contract Anniversary while the Rider is in effect. After the 9th Contract Anniversary, we increase the schedule of Step-up Dates to include each succeeding Contract Anniversary (i.e., the 10th, 11th, 12th etc.) up to and including the 30th Contract Anniversary while the Rider is in effect. LIFE EXPECTANCY DISTRIBUTION PROGRAM. You may request us in writing, in a form acceptable to us and received by us at our Annuities Service Center, to pay you withdrawals that we determine to be part of a series of substantially equal periodic payments over your "life expectancy" (or, if applicable, the joint life expectancy of you and your spouse) as described for the Principal Plus for Life Rider above (see "Principal Plus, Principal Plus for Life - Life Expectancy Distribution Program"). Under our Life Expectancy Distribution program, each withdrawal will be in an amount that we determine to be your Contract's proportional share of all life expectancy distributions, based on information that you provide and our understanding of the Code. We reserve the right to make any changes we deem necessary to comply with the Code and Treasury Regulations. SETTLEMENT PHASE. The Principal Plus for Life Plus Spousal Protection Rider will enter a Settlement Phase as described above for Principal Plus for Life when: - the Contract Value reduces to zero; and - withdrawals during that Contract Year do not exceed the Guaranteed Withdrawal Amount; and - either the Guaranteed Withdrawal Balance or the Lifetime Income Amount is greater than zero. If during the Settlement Phase, the Guaranteed Withdrawal Balance equals zero and the Lifetime Income Amount is greater than zero, you will automatically receive settlement payments each Contract Year equal to the Lifetime Income Amount during the life of either Covered Person. IMPACT OF DEATH BENEFITS. Death benefits under a Principal Plus for Life Plus Spousal Protection Rider differ from those under the Principal Plus for Life Rider. Death of First Covered Person. If the first Covered Person to die is an Owner of the Contract (or deemed to be an "Owner" if the Owner is a non-natural person), the surviving Covered Person may elect to continue the Contract in effect in lieu of receiving the Contract's death benefit as a lump sum under our current administrative procedures. (See "Death after Removal of a Covered Person" below if there is no surviving Covered Person.) If the Contract continues, the Principal Plus for Life Plus Spousal Protection Rider will continue. We will continue to provide the Lifetime Income Amount guarantee only on the lifetime of the surviving Covered Person and continue to charge the Principal Plus for Life Plus Spousal Protection Rider fee (see "Rider Fees" above). If the death benefit is greater than the Contract Value, we will increase the Contract Value to equal the amount of the death benefit (but will not make any adjustments to the Guaranteed Withdrawal Balance, Guaranteed Withdrawal Amount, Lifetime Income Amount, Bonuses or Step-ups). We will treat any distribution of death benefits under a Contract as a "withdrawal" for purposes of subsequent calculations of the Guaranteed Withdrawal Balance, the Guaranteed Withdrawal Amount and the Lifetime Income Amount. If the first Covered Person to die is not the Owner (or is not deemed to be an "Owner" if the Owner is a non-natural person), no death benefit is payable under the Contract. The Rider will continue in effect, and we will base the duration of the Lifetime Income Amount D-30 only on the lifetime of the surviving Covered Person. We will continue to charge the Principal Plus for Life Plus Spousal Protection Rider fee; however, we will make no adjustments to the Contract Value or make any adjustments to the Guaranteed Withdrawal Balance, Guaranteed Withdrawal Amount, Lifetime Income Amount, Bonuses or Step-ups. If the death of the first Covered Person occurs while the Rider is in its Settlement Phase, no additional death benefit is payable under the Contract and, in most instances, we will continue to make settlement payments in the same manner as before the death. If the death occurs before the Lifetime Income Date, we will compute a Lifetime Income Amount during the Settlement Phase on the Lifetime Income Date. At the time we compute the Lifetime Income Amount, we may permit the surviving Covered Person to receive settlement payments: - no greater than the Guaranteed Withdrawal Amount until the Guaranteed Withdrawal Balance is depleted to zero; - no less than the Lifetime Income Amount during the lifetime of the surviving Covered Person (the Lifetime Income Amount may be lower than the Guaranteed Withdrawal Amount and the duration of settlement payments based on the Lifetime Income Amount may be longer or shorter than the duration of settlement payments based on the Guaranteed Withdrawal Amount); or - based on amounts we calculate under our Life Expectancy Distribution program (see "Life Expectancy Distribution Program" above). We may limit the ability of the surviving Covered Person to choose a settlement payment amount and duration that differs from the amount and duration in effect before the death of the first Covered Person. Death of Last Covered Person. If the surviving Covered Person dies while the Principal Plus for Life Plus Spousal Protection Rider is in effect and if the Beneficiary does not take the death benefit under the Contract as a lump sum under our current administrative procedures or as an Annuity Option, the Principal Plus for Life Plus Spousal Protection Rider will continue. The Rider will only continue, however, if the death benefit or the Guaranteed Withdrawal Balance is greater than zero at the time. We will Step-up the Guaranteed Withdrawal Balance to equal the death benefit, if greater than the Guaranteed Withdrawal Balance prior to the death benefit, and treat any distribution of death benefits under a Contract as a "withdrawal" for purposes of subsequent calculations of the Guaranteed Withdrawal Balance and the Guaranteed Withdrawal Amount. The Rider will not continue to provide for any remaining Bonuses or Step-ups, and will not continue with respect to the Lifetime Income Amount. If the Rider continues, the Principal Plus for Life Plus Spousal Protection Rider fee will continue (see "Rider Fees" above). We will permit the Beneficiary to opt out of the initial death benefit Step-up, if any, if we increase the rate of the Principal Plus for Life Plus Spousal Protection Rider fee at that time. The Rider will enter its Settlement Phase if the Guaranteed Withdrawal Balance is still greater than zero when distributions of death benefits under a Contract deplete any remaining death benefit proceeds to zero. If the surviving Covered Person dies during the Settlement Phase, we will reduce the Lifetime Income Amount to zero. If the Beneficiary at that time is the spouse of the decedent, that spouse may choose the amount of any remaining settlement payments up to the Guaranteed Withdrawal Amount. If the Beneficiary is not the decedent's spouse, the Beneficiary may choose to receive any remaining settlement payments over a period not extending beyond the life expectancy of the Beneficiary beginning within one year of death. Otherwise, the entire interest must be distributed within five years of the death. When settlement payments deplete the Guaranteed Withdrawal Balance to zero, the Rider terminates and we no make no additional payments to the Beneficiary. Death after Removal of a Covered Person. In certain instances, a person initially designated as a Covered Person may be removed as a Covered Person from the Rider (see "Covered Person" in the definitions above). If that happens and: - if the removed Covered Person subsequently dies, there will be no impact on the guarantees provided by the Rider in most cases; and - if the remaining Covered Person subsequently dies, the Rider may continue in certain cases as described in "Death of Last Covered Person" above. TERMINATION. The Principal Plus for Life Plus Spousal Protection Rider terminates in the same manner as described above for the Principal Plus for Life Rider. We impose an additional annual fee for a Principal Plus for Life Plus Spousal Protection Rider to a Contract. Under Principal Plus for Life Plus Spousal Protection, at least one of the Covered Persons must attain age 65 and remain living for you to receive certain benefits. Furthermore, the Riders limit the Investment Options otherwise available under the Contract, contain age caps and limitations on a Contract Owner's rights and benefits at certain ages and values, and provide no guaranteed withdrawal benefits once payments begin under any of the Annuity Options described elsewhere in the Prospectus. EXAMPLES. We provide hypothetical examples that illustrate the benefits under the Principal Plus for Life Plus Automatic Plus Spousal Protection Rider at the end of this Appendix. D-31 PRINCIPAL RETURNS Principal Returns Definitions The following definitions apply to the Principal Returns Rider: AGE 65 CONTRACT ANNIVERSARY means the Contract Anniversary on, or next following, the date the older Owner attains age 65. AGE 95 CONTRACT ANNIVERSARY means the Contract Anniversary on, or next following, the date the older Owner attains age 95. FIRST YEAR PURCHASE PAYMENTS means the amount you pay for your Contract from the date the Rider goes into effect until the next following Contract Anniversary. GUARANTEED WITHDRAWAL AMOUNT means: - The amount we guarantee to be available each Contract Year for withdrawal during the Accumulation Period until the Guaranteed Withdrawal Balance is depleted. - The initial Guaranteed Withdrawal Amount is equal to 8% of the initial Guaranteed Withdrawal Balance. - The maximum Guaranteed Withdrawal Amount at any time is $400,000. GUARANTEED WITHDRAWAL BALANCE means: - The total amount we guarantee to be available for future periodic withdrawals during the Accumulation Period. - The initial Guaranteed Withdrawal Balance is equal to your initial Purchase Payment, up to the maximum Guaranteed Withdrawal Balance. - The maximum Guaranteed Withdrawal Balance at any time is $5 million. RESET means a reduction of the Guaranteed Withdrawal Balance or Guaranteed Withdrawal Amount if your annual withdrawals of Contract Value exceed the Guaranteed Withdrawal Amount. STEP-UP means an increase in the Guaranteed Withdrawal Balance or Guaranteed Withdrawal Amount on certain anniversary dates to reflect market performance that exceeds previously calculated benefits. We use the term "withdrawal" to refer to amounts withdrawn, including any applicable withdrawal charges. STEP-UP DATE means the date on which we determine whether a Step-up could occur. Description of the Principal Returns Rider The optional Principal Returns Rider provides a guaranteed minimum withdrawal benefit during the Accumulation Period. In particular, the Rider guarantees the return of your Purchase Payments in the Contract, regardless of market performance, as long as you limit your withdrawals to a Guaranteed Withdrawal Amount each year, beginning on the date you purchase the Rider. In addition, when you purchase a Principal Returns Rider, we guarantee that your Contract Value at the end of the first 10 Contract Years will not be less than the greater of (a) the amount of your First Year Purchase Payments up to $5 million or (b) your Contract Value plus the sum of all Principal Returns Rider fees paid to date, as long as you take no withdrawals of Contract Value during the first 10 Contract Years. Although this Rider guarantees minimum annual withdrawal amounts, you may take withdrawals of any amount of Contract Value during your Contract's Accumulation Period. If you take withdrawals for more than the annual amounts permitted under the terms of the Principal Returns Rider, however, we may Reset the guaranteed minimum amounts. If you take withdrawals during the first 10 Contract Years, you will no longer be eligible for our tenth year Accumulation Benefit. IMPACT OF PURCHASE PAYMENTS AND RESTRICTIONS ON PURCHASE PAYMENTS. We increase the total Guaranteed Withdrawal Balance by the amount of each Additional Purchase Payment we accept (subject to the maximum Guaranteed Withdrawal Balance limit of $5 million). In addition, we recalculate the Guaranteed Withdrawal Amount and (unless the recalculated amount is less than the Guaranteed Withdrawal Amount before the Additional Purchase Payment) increase it to equal the lesser of: - 8% of the Guaranteed Withdrawal Balance immediately after the Purchase Payment; or - the Guaranteed Withdrawal Amount immediately prior to the Purchase Payment plus an amount equal to 8% of the Purchase Payment. Impact on Accumulation Benefit of Additional Purchase Payments during Contract Years Two through Ten. The Accumulation Benefit compares (a) your First Year Purchase Payments up to $5 million to (b) your Contract Value at the end of the first 10 Contract Years plus all fees paid for the Principal Returns Rider during that period. If you make any Additional Purchase Payments during Contract years two through ten, your Contract Value at the end of the period will reflect these investments. Therefore, these Additional Purchase Payments reduce your ability to recover investment losses, if any, on your First Year Purchase Payments through the Accumulation Benefit. D-32 Please see "Accumulation Benefit" below for further details about this feature. Restrictions on Purchase Payments for Contracts with the Principal Returns Rider. If you purchase the Principal Returns Rider, we restrict your ability to make Additional Purchase Payments to the Contract. You must obtain our prior approval if the Contract Value immediately following an Additional Purchase Payment would exceed $1 million. We do not permit Additional Purchase Payments during the Rider's "Settlement Phase." Other limitations on Additional Purchase Payments may vary by state. Special Purchase Payment limits on "Non-Qualified" Contracts. If we issue your Contract other than in connection with an IRA or other tax-qualified retirement plan, we also impose the following limit on your ability to make Additional Purchase Payments: - on or after the first Contract Anniversary, without our prior approval, we will not accept an Additional Purchase Payment if your total payments after the first Contract Anniversary exceed $100,000. Special Purchase Payment limits on "Qualified" Contracts. If we issue your Contract in connection with a tax qualified retirement plan, including an IRA, we also impose additional limits on your ability to make Purchase Payments: - on and after the Age 65 Contract Anniversary (or after the first Contract Anniversary if we issued your Contract after you become Age 65), without our prior approval, we will not accept an Additional Purchase Payment if your total payments after the first Contract Anniversary exceed $100,000; - for the year that you become age 70 1/2 and for any subsequent years, if we issue your Contract in connection with an IRA, we will only accept a Purchase Payment that qualifies as a "rollover contribution"; but - we will not accept any Purchase Payment after the Owner becomes age 81. You should consult with a qualified tax advisor regarding your Rider for further information on tax rules affecting Qualified Contracts, including IRAs. General right of refusal. We reserve the right to refuse to accept Additional Purchase Payments at any time after the first Contract Anniversary to the extent permitted in the state we issue your Contract. We do not reserve this right of refusal of additional payments before the Age 65 Contract Anniversary that are permitted to Contracts issued in connection with tax qualified retirement plans, including IRAs. IMPACT OF WITHDRAWALS. We decrease the Guaranteed Withdrawal Balance each time you make a withdrawal. If your total withdrawals during a Contract Year are less than or equal to the Guaranteed Withdrawal Amount, we will decrease the Guaranteed Withdrawal Balance by the amount of the withdrawals. If a withdrawal causes total withdrawals during a Contract Year to exceed the Guaranteed Withdrawal Amount (or if total withdrawals during a Contract Year have already exceeded the Guaranteed Withdrawal Amount), we will automatically Reset the Guaranteed Withdrawal Balance to equal the lesser of: - the Contract Value immediately after the withdrawal; or - the Guaranteed Withdrawal Balance immediately prior to the withdrawal minus the amount of the withdrawal. Each time we Reset the Guaranteed Withdrawal Balance, we also recalculate the Guaranteed Withdrawal Amount. The Guaranteed Withdrawal Amount will equal the lesser of: - the Guaranteed Withdrawal Amount prior to the withdrawal; or - 8% of the greater of the Contract Value after the withdrawal or the new Guaranteed Withdrawal Balance value. In certain circumstances, however, we will not Reset the Guaranteed Withdrawal Balance and/or Guaranteed Withdrawal Amount, even where a withdrawal would exceed the Guaranteed Withdrawal Amount for a Contract Year. These involve withdrawals taken as "Life Expectancy Distributions" under an automatic distribution program provided by us (see "Life Expectancy Distribution Program" below). We do not change your Guaranteed Withdrawal Amount when you make a withdrawal if your total withdrawals during a Contract Year are less than or equal to the Guaranteed Withdrawal Amount. If your withdrawals are less than the full Guaranteed Withdrawal Amount available in any Contract Year, the remaining Guaranteed Withdrawal Amount cannot be carried forward to the next Contract Year. The Principal Returns Rider enters a "Settlement Phase" if withdrawals during the Contract Year are equal to or less than the Guaranteed Withdrawal Amount, the Contract Value reduces to zero and the Guaranteed Withdrawal Balance immediately after the withdrawal is still greater than zero (see "Settlement Phase" below). The Principal Returns Rider benefit terminates if the Contract Value and Guaranteed Withdrawal Balance immediately after a withdrawal are both equal to zero (see "Rider Fees" and "Termination"). D-33 If your annual withdrawals exceed the Guaranteed Withdrawal Amount, we will recalculate amounts we guarantee for future withdrawals. We may Reset (i.e., reduce) the Guaranteed Withdrawal Balance and Guaranteed Withdrawal Amount by amounts that exceed the amount of your withdrawals. A Reset also may reduce the total amount guaranteed to an amount less than the total of your Purchase Payments and may reduce or eliminate future Guaranteed Withdrawal Amount values. LIFE EXPECTANCY DISTRIBUTION PROGRAM. You may request us in writing, in a form acceptable to us and received by us at our Annuities Service Center, to pay you withdrawals that we determine to be part of a series of substantially equal periodic payments over your "life expectancy" (or, if applicable, the joint life expectancy of you and your spouse). For purposes of the Principal Returns Rider, withdrawals under our Life Expectancy Distribution program are distributions within a calendar year that are intended to be paid to you: - pursuant to Code Section 72(q)(2)(D) or Section 72(t)(2)(A)(iv) upon the request of the Owner (we sometimes refer to these as "Pre-59 1/2 Distributions"); or - pursuant to Code Section 72(s)(2) upon the request of the Beneficiary (we sometimes refer to these as "Non-Qualified Death Benefit Stretch Distributions"); or - as required or contemplated by Code Section 401(a)(9), Section 403(b)(10), Section 408(b)(3), or Section 408A, as the case may be (we sometimes refer to these as "Qualified Death Benefit Stretch Distributions" or "Required Minimum Distributions"). Under our Life Expectancy Distribution program, each withdrawal will be in an amount that we determine to be your Contract's proportional share of all life expectancy distributions, based on information that you provide and our understanding of the Code. We reserve the right to make any changes we deem necessary to comply with the Code and Treasury Regulations. We base our life expectancy calculations on our understanding and interpretation of the requirements under tax law applicable to Pre-59 1/2 Distributions, Required Minimum Distributions, Non-Qualified Death Benefit Stretch Distributions and Qualified Death Benefit Stretch Distributions. You should discuss these matters with your tax advisor prior to electing a Principal Returns Rider. Each withdrawal under our automatic Life Expectancy Distribution program will reduce your Contract Value and your Guaranteed Withdrawal Balance. We will not make any further withdrawals under the program if both the Contract Value and the Guaranteed Withdrawal Balance are depleted to zero. Withdrawals under the Life Expectancy Distribution program during your life expectancy (or joint life expectancy) will not be treated as a withdrawal in excess of the permitted Guaranteed Withdrawal Amount. This means that we will not Reset your Guaranteed Withdrawal Balance or Guaranteed Withdrawal Amount if a withdrawal under the program causes total withdrawals during a Contract Year to exceed the Guaranteed Withdrawal Amount and all withdrawals during that year were under our Life Expectancy Distribution program. If you begin taking Life Expectancy Distributions during the first 10 Contract Years, you will no longer qualify for an Accumulation Benefit at your 10th Contract Anniversary. Increases in Guaranteed Amounts under the Principal Returns Rider. We will increase the Guaranteed Withdrawal Balance: - to reflect Additional Purchase Payments (see "Impact of Purchase Payments and Restrictions on Purchase Payments" above); and - by any applicable Step-up to reflect certain increases in Contract Value. We will increase your Contract Value at the end of the first 10 Contract Years if: - the Principal Returns Rider is in effect at that time; and - you did not make any withdrawals during the first 10 Contract Years. We describe how we calculate and apply the increase in the "Accumulation Benefit" paragraph, below. Step-ups will increase the Guaranteed Withdrawal Balance and may increase the Guaranteed Withdrawal Amount STEP-UPS. If the Contract Value on any Step-up Date is greater than the Guaranteed Withdrawal Balance on that date, we will recalculate the Guaranteed Withdrawal Balance to equal the Contract Value (subject to the maximum Guaranteed Withdrawal Balance limit of $5 million). Each time we recalculate a Step-up, we also recalculate the Guaranteed Withdrawal Amount. The recalculated Guaranteed Withdrawal Amount will equal the greater of the current Guaranteed Withdrawal Amount or 8% of the new Guaranteed Withdrawal Balance. The Step-up Dates occur only while the Principal Returns Rider is in effect. We schedule the Step-up Dates for the 3rd, 6th and 9th Contract Anniversary after the Contract Date. After the 9th Contract Anniversary, we increase the schedule of Step-up Dates to include each succeeding Contract Anniversary (e.g., the 10th, 11th, 12th etc.) up to and D-34 including the Age 95 Contract Anniversary. On a Step-up Date, we will automatically increase the Guaranteed Withdrawal Balance (and Guaranteed Withdrawal Amount, if applicable) to equal a higher recalculated value. We reserve the right to increase the rate of the fee on any Step-up Date, up to a maximum rate of .95%. Even if we do not increase the rate of the fee, however, each time a Step-up goes into effect the dollar amount of the Rider fee will increase to reflect the stepped-up Guaranteed Withdrawal Balance value. If we decide to increase the rate at the time of a Step-up, you will receive advance notice and be given the opportunity of no less than 30 days to decline the Step-up (see "Rider Fees"). If you decline a scheduled Step-up, you will have the option to elect to Step-up the Guaranteed Withdrawal Balance (as well as the Guaranteed Withdrawal Amount) within 30 days of subsequent Step-up Dates. If you decide to Step-up the Guaranteed Withdrawal Balance at that time, we will thereafter resume automatic Step-ups on each succeeding Step-up Date. Accumulation Benefit (not available in Washington). When you purchase the Principal Returns Rider, we guarantee that, as long as you take no withdrawals during the first 10 Contract Years, your Contract Value at the end of this period will equal the greater of (a) the amount of your First Year Purchase Payments up to $5 million or (b) your Contract Value plus the sum of all Principal Returns Rider fees paid to date. If you qualify, we will determine an Accumulation Benefit on your 10th Contract Anniversary and add it to your Contract Value. We will apply the Accumulation Benefit, if any, to each Investment Option in the same proportion that the value of Investment Accounts of each Investment Option bears to the Contract Value. You should consider your liquidity needs during the first 10 Contract Years before purchasing a Principal Returns Rider. You will not be eligible for an Accumulation Benefit if you take a partial withdrawal of Contract Value, including any required minimum distribution from a Qualified Contract or any withdrawal of death benefit proceeds, during the first 10 Contract Years. SETTLEMENT PHASE. We automatically make settlement payments during the "Settlement Phase" under the Principal Returns Rider. The Settlement Phase begins if withdrawals during the Contract Year are equal to or less than the Guaranteed Withdrawal Amount, the Contract Value reduces to zero and the Guaranteed Withdrawal Balance immediately after the withdrawal is still greater than zero. At the beginning of the Principal Returns Rider's Settlement Phase, you may choose settlement payments that total an amount no greater than the Guaranteed Withdrawal Amount, or Life Expectancy Distributions if applicable, to be paid to you automatically each Contract Year until the Guaranteed Withdrawal Balance depletes to zero (see "Life Expectancy Distribution Program"). If the Guaranteed Withdrawal Amount or the Life Expectancy Distribution, if applicable, for a Contract Year exceeds the Guaranteed Withdrawal Balance, however, then the settlement payment for that Contract Year will be limited to the Guaranteed Withdrawal Balance. The settlement payments will be paid no less frequently than annually. If any Owner dies during the Settlement Phase, remaining settlement payments will be paid to the Beneficiary and are subject to the distribution provisions of the "Death Benefit Before Maturity Date" section of the Contract, described in "Accumulation Period Provisions - Death Benefit During the Accumulation Period." This provision is also applicable if the Beneficiary does not take the death benefit as a lump sum under our current administrative procedures and the Principal Returns Rider continues (as described in "Impact of Death Benefits" below) and death benefit distributions deplete the death benefit to zero. When this occurs, settlement payments made in the Settlement Phase are subject to the distribution provisions of the "Death Benefit Before Maturity Date" section of the Contract, described in the "Accumulation Period Provisions - Death Benefit During the Accumulation Period" provision of the Prospectus. Impact of Death Benefits If a death benefit becomes payable during the Accumulation Period but before the Settlement Phase, the Principal Returns Rider will end if the Beneficiary takes the death benefit as a lump sum under our current administrative procedures. D-35 Continuation of the Principal Returns Rider. If the Beneficiary elects not to take the death benefit as a lump sum, then the Principal Returns Rider: - Continues if the Guaranteed Withdrawal Balance is greater than zero. - Steps-up the Guaranteed Withdrawal Balance to equal the death benefit if the death benefit on the date of determination is greater than the Guaranteed Withdrawal Balance. - Enters the Settlement Phase if a withdrawal would deplete the Contract Value to zero, and the Guaranteed Withdrawal Balance is still greater than zero. (Death benefit distributions will be treated as withdrawals. Some methods of death benefit distribution may result in distribution amounts that exceed the Guaranteed Withdrawal Amount and the Life Expectancy Distribution amount. In such cases, we may Reset the Guaranteed Withdrawal Balance, and reduce the Guaranteed Minimum Withdrawal Benefit provided under this Rider). - Continues to impose the Rider fee. - Continues to be eligible for any remaining Step-ups, but we will change the date we determine and apply these benefits to future anniversaries of the date we determine the initial death benefit. Remaining eligible Step-up Dates will also be measured beginning from the death benefit determination date. - Ends any remaining Step-ups on the Age 95 Contract Anniversary date based on the date the deceased owner would have attained age 95, unless the Beneficiary is older than the deceased owner. If so, any remaining Step-ups end on the Age 95 Contract Anniversary date based on the birthdate of the Beneficiary. If the Beneficiary does not take the death benefit as a lump sum under the terms of the Contract and the Principal Returns Rider continues, we will determine an Adjusted Guaranteed Withdrawal Balance and the annual Rider fee based on the date we determine the death benefit, and anniversaries of that date, instead of the initial Contract Anniversary date. Death benefits during the Settlement Phase. If you die during the Settlement Phase, the only death benefits we provide are the remaining settlement payments that may become due under the Principal Returns Rider. If the Beneficiary is the deceased Owner's spouse, the surviving spouse may choose the amount of the settlement payments up to the Guaranteed Withdrawal Amount. If the Beneficiary is not the deceased Owner's spouse, the Beneficiary may choose to receive any remaining settlement payments over a period not extending beyond the life expectancy of the Beneficiary beginning within one year of the Owner's death. Otherwise, the entire interest must be distributed within five years of the Owner's death. ADDITIONAL ANNUITY OPTION FOR CONTRACTS WITH A PRINCIPAL RETURNS RIDER. Please see "Pay-Out Period Provisions" on page 40 for a description of Annuity Options available under a Contract. TAX CONSIDERATIONS. Please see "VII. Federal Tax Matters" for information on tax considerations related to optional benefit Riders. TERMINATION. You may not terminate the Principal Returns Rider once it is in effect. The Rider terminates, automatically, however, upon the earliest of: - the date a death benefit is payable and the Beneficiary takes the death benefit as a lump sum under the terms of the Contract; or - the date the Guaranteed Withdrawal Balance and the Contract Value both deplete to zero; or - the date an Annuity Option under the Contract begins; or - the date a new guaranteed minimum withdrawal benefit Rider becomes effective under any upgrade program that we may make available in the future; or - termination of the Contract. We impose an additional annual fee for the Principal Returns Rider. Furthermore, the Rider limits the Investment Options otherwise available under the Contract, contains age caps and limitations on a Contract Owner's rights and benefits at certain ages and values, and provides no guaranteed withdrawal benefits once payments begin under any of the Annuity Options described elsewhere in the Prospectus. D-36 EXAMPLES OF GUARANTEED MINIMUM WITHDRAWAL BENEFIT RIDERS The following examples provide hypothetical illustrations of the benefits provided under the Income Plus for Life, Income Plus for Life - Joint Life, Principal Plus, Principal Plus for Life, Principal Plus for Life Plus Automatic Annual Step-up, Principal Plus for Life Plus Spousal Protection and Principal Returns optional benefit Riders. These illustrations are not representative of future performance under your Contract, which may be higher or lower than the amounts shown. EXAMPLES 1A, 1B, 1C AND 1D ILLUSTRATE THE BASIC OPERATION OF THE INCOME PLUS FOR LIFE OPTIONAL BENEFIT RIDER. EXAMPLE 1A. THIS EXAMPLE ILLUSTRATES THE IMPACT OF WAITING TO START WITHDRAWALS. CONTRACTS ISSUED ON OR AFTER JANUARY 17, 2008. Assume a single Purchase Payment of $100,000 at Covered Person's age 49 1/2, no Additional Purchase Payments are made, and withdrawals equal to the Lifetime Income Amount are taken beginning in year 11. Also assume that the Contract Value is less than the Benefit Base at the eligible Step-up Dates, so there is no Step-up and the Covered Person survives at least 20 years from issue.
LIFETIME BENEFIT BASE CONTRACT PURCHASE INCOME WITHDRAWAL ON CONTRACT YEAR PAYMENTS AMOUNT TAKEN BONUS ANNIVERSARY - -------- -------- -------- ---------- ------ ------------ At issue $100,000 N/A $ 0 $ 0 $100,000(1) 1 0 N/A 0 7,000(2) 107,000(3) 2 0 N/A 0 7,000 114,000 3 0 N/A 0 7,000 121,000 4 0 N/A 0 7,000 128,000 5 0 N/A 0 7,000 135,000 6 0 N/A 0 7,000 142,000 7 0 N/A 0 7,000 149,000 8 0 N/A 0 7,000 156,000 9 0 N/A 0 7,000 163,000 10 0 N/A 0 7,000 170,000 11 0 $8,500(4) 8,500 0 170,000 12 0 8,500 8,500 0 170,000 13 0 8,500 8,500 0 170,000 14 0 8,500 8,500 0 170,000 15 0 8,500 8,500 0 170,000 20 0 8,500 8,500 0 170,000
(1) The initial Benefit Base is equal to the initial payment of $100,000. The Benefit Base is used to determine the Lifetime Income Amount and the Rider fee. It is not available for withdrawal as a lump sum. (2) In this example, there is no withdrawal during the first Contract Year so a Bonus will be added to the Benefit Base. The Bonus amount is equal to 7% of the total Purchase Payments to date (.07 x $100,000 = $7,000). (3) Following a Bonus, the Benefit Base is recalculated. The new Benefit Base is equal to the Benefit Base before the Bonus increased by the amount of the Bonus ($100,000 + $7,000 = $107,000). (4) The Lifetime Income Amount is calculated on the Contract Anniversary after the Covered Person attains age 59 1/2. The Lifetime Income Amount is initially equal to 5% of the Benefit Base at that time (.05 x $170,000 = $8,500). D-37 CONTRACTS ISSUED PRIOR TO JANUARY 17, 2008 OR IN NEW YORK. Assume a single Purchase Payment of $100,000 at Covered Person's age 51, no Additional Purchase Payments are made, and withdrawals equal to the Lifetime Income Amount are taken beginning in year 11. Also assume that the Contract Value is less than the Benefit Base at the eligible Step-up Dates, so there is no Step-up and the Covered Person survives at least 20 years from issue.
LIFETIME BENEFIT BASE CONTRACT PURCHASE INCOME WITHDRAWAL ON CONTRACT YEAR PAYMENTS AMOUNT TAKEN BONUS ANNIVERSARY - -------- -------- -------- ---------- ------ ------------ At issue $100,000 N/A $ 0 $ 0 $100,000(1) 1 0 N/A 0 6,000(2) 106,000(3) 2 0 N/A 0 6,000 112,000 3 0 N/A 0 6,000 118,000 4 0 N/A 0 6,000 124,000 5 0 N/A 0 6,000 130,000 6 0 N/A 0 6,000 136,000 7 0 N/A 0 6,000 142,000 8 0 N/A 0 6,000 148,000 9 0 N/A 0 6,000 154,000 10 0 N/A 0 6,000 160,000 11 0 $8,000(4) 8,000 0 160,000 12 0 8,000 8,000 0 160,000 13 0 8,000 8,000 0 160,000 14 0 8,000 8,000 0 160,000 15 0 8,000 8,000 0 160,000 20 0 8,000 8,000 0 160,000
(1) The initial Benefit Base is equal to the initial payment of $100,000. The Benefit Base is used to determine the Lifetime Income Amount and the Rider fee. It is not available for withdrawal as a lump sum. (2) In this example, there is no withdrawal during the first Contract Year so a Bonus will be added to the Benefit Base. The Bonus amount is equal to 6% of the total Purchase Payments to date (.06 x $100,000 = $6,000). (3) Following a Bonus, the Benefit Base is recalculated. The new Benefit Base is equal to the Benefit Base before the Bonus increased by the amount of the Bonus ($100,000 + $6,000 = $106,000). (4) The Lifetime Income Amount is calculated on the Contract Anniversary after the Covered Person attains age 59 1/2. The Lifetime Income Amount is initially equal to 5% of the Benefit Base at that time (.05 x $160,000 = $8,000). EXAMPLE 1B. THIS EXAMPLE ILLUSTRATES ADDITIONAL PURCHASE PAYMENTS. Assume an initial Purchase Payment of $100,000 at Covered Person's age 60, an Additional Purchase Payment of $10,000 during Contract Year 1, and an Additional Purchase Payment of $10,000 in year 2. Withdrawals are taken at the end of all Contract Years. Also assume that the Contract Value is less than the Benefit Base so there is no Step-up.
BENEFIT BASE AFTER LIFETIME INCOME BENEFIT BASE LIFETIME INCOME CONTRACT PURCHASE PURCHASE AMOUNT AFTER WITHDRAWAL ON CONTRACT AMOUNT ON YEAR PAYMENTS PAYMENT PURCHASE PAYMENT TAKEN ANNIVERSARY CONTRACT ANNIVERSARY - -------- -------- ------------ ---------------- ---------- ------------ -------------------- At issue $100,000 $100,000 $5,000 -- $100,000 $5,000 1 10,000(1) 110,000(1) 5,500(1) $5,500 110,000 5,500 2 10,000(2) 114,500(2) 5,725(2) 5,725 114,500 5,725
(1) In this example, there is an Additional Purchase Payment during the first Contract Year. Following the Additional Purchase Payment, the Benefit Base is calculated as the initial Benefit Base plus the amount of the Additional Purchase Payment ($100,000 + $10,000 = $110,000). The Lifetime Income Amount is calculated as 5% of the Benefit Base immediately after the Purchase Payment (.05 x $110,000 = $5,500). (2) In the second year, there is another Additional Purchase Payment of $10,000. Since there was a withdrawal prior to this payment and after the last recalculation of the Benefit Base, the Benefit Base is increased by the excess of the Purchase Payment over the previous withdrawals ($110,000 + ($10,000 - $5,500) = $114,500) The Lifetime Income Amount is calculated as 5% of the Benefit Base immediately after the Purchase Payment (.05 x $114,500 = $5,725). D-38 EXAMPLE 1C. THIS EXAMPLE ILLUSTRATES THE IMPACT OF STEP-UPS. Assume a single Purchase Payment of $100,000 at age 59 1/2, no Additional Purchase Payments are made, withdrawals equal to the Lifetime Income Amount are taken in Contract Years 1, 2, 3 and 4. Since withdrawals are taken every year, there are no bonuses. The Benefit Base steps-up at the end of Contract Years 1, 2 and 3.
HYPOTHETICAL CONTRACT LIFETIME INCOME VALUE ON CONTRACT CONTRACT PURCHASE AMOUNT AFTER WITHDRAWAL ANNIVERSARY PRIOR BENEFIT BASE ON YEAR PAYMENTS PURCHASE PAYMENT TAKEN TO RIDER FEE CONTRACT ANNIVERSARY - -------- -------- ---------------- ---------- --------------------- -------------------- At issue $100,000 -- -- -- $100,000 1 0 $5,000 $5,000 $102,000 102,000(1) 2 0 5,100(1) 5,100(1) 103,514 103,514 3 0 5,176 5,176 105,020 105,020 4 0 5,251 5,251 94,013(2) 105,020(2) 5 0 5,251 5,251 78,793 105,020
(1) At the end of Contract Year 1, the Contract Value in this example, $102,000 is greater than the Benefit Base of $100,000. The Benefit Base will Step-up to equal the Contract Value of $102,000. The Lifetime Income Amount will equal 5% of the new Benefit Base (.05 x $102,000 = $5,100). (2) At the end of Contract Year 4, the Contract Value in this example, $94,013 is less than the Benefit Base of $105,020. The Benefit Base will remain at $105,020. EXAMPLE 1D. THIS EXAMPLE ILLUSTRATES EXCESS WITHDRAWALS AND THE IMPACT OF WITHDRAWALS ON SUBSEQUENT PAYMENTS APPLIED TO THE BENEFIT BASE. Assume an initial Purchase Payment of $100,000 at age 60 (61 in New York), Additional Purchase Payments in years 2, 13 and 15, an Excess Withdrawal in year 1 and a withdrawal of the Lifetime Income Amount in year 14.
LIFETIME INCOME AMOUNT HYPOTHETICAL LIFETIME CONTRACT BEFORE PURCHASE WITHDRAWAL CONTRACT BENEFIT INCOME YEAR TRANSACTION PAYMENTS TAKEN VALUE BASE AMOUNT - -------- ----------- -------- ---------- ------------ -------- -------- At issue -- $100,000 -- $100,000 $100,000 $5,000 1 $5,000 0 $10,000(1) 85,000 85,000(1) 4,250(1) 2 4,250 10,000(2) 0 93,500 95,000(2) 4,750(2) 12 4,750 0 0 120,000 120,000 6,000 13 6,000 10,000(3) 0 130,000 130,000(3) 6,500(3) 14 6,500 0 6,500 123,500 130,000 6,500 15 6,500 10,000(4) 0 130,000 133,500(4) 6,675(4) 16 6,675 0 0 125,000 133,500 6,675
(1) The withdrawal of $10,000 exceeds the Lifetime Income Amount of $5,000. The Benefit Base will be Reset to equal the lesser of the Contract Value after the withdrawal ($85,000) or the Benefit Base prior to the withdrawal less the amount of the withdrawal ($100,000 - $10,000 = $90,000). The Lifetime Income Amount will Reset to 5% of the new Benefit Base (.05 x $85,000 = $4,250). (2) The Additional Purchase Payment of $10,000 in year 2 is the first Payment or Withdrawal since the Reset of the Benefit Base, so the entire $10,000 is added to the Benefit Base. The new Benefit Base equals $95,000 ($85,000 + $10,000). The new Lifetime Income Amount is .05 x $95,000 = $4,750. (3) The Additional Purchase Payment of $10,000 in year 13 is the first Payment or Withdrawal since the Step-up of the Benefit Base at the end of year 12, so the entire $10,000 is added to the Benefit Base. The new Benefit Base equals $130,000 ($120,000 + $10,000). The new Lifetime Income Amount is .05 x $130,000 = $6,500. (4) The Additional Purchase Payment of $10,000 in year 15 is reduced by the $6,500 Withdrawal since the last increase of the Benefit Base in year 13 by an Additional Purchase Payment. The new Benefit Base equals $133,500 ($130,000 + $10,000 - $6,500). The new Lifetime Income Amount is .05 x $133,500 = $6,675. D-39 EXAMPLES 2A, 2B, 2C AND 2D ILLUSTRATE THE BASIC OPERATION OF THE INCOME PLUS FOR LIFE - JOINT LIFE OPTIONAL BENEFIT RIDER. EXAMPLE 2A. THIS EXAMPLE ILLUSTRATES THE IMPACT OF WAITING FOR WITHDRAWALS. CONTRACTS ISSUED ON OR AFTER JANUARY 17, 2008. Assume a single Purchase Payment of $100,000 at the youngest Covered Person's age 49 1/2, no additional Purchase Payments are made, and withdrawals equal to the Lifetime Income Amount are taken beginning in year 11. Also assume that the Contract Value is less than the Benefit Base at the eligible Step-up Dates, so there is no Step-up and at least one of the Covered Persons survives at least 20 years from issue.
CONTRACT PURCHASE LIFETIME WITHDRAWAL BENEFIT BASE ON YEAR PAYMENTS INCOME AMOUNT TAKEN BONUS CONTRACT ANNIVERSARY - -------- -------- ------------- ---------- ------ -------------------- At issue $100,000 N/A $ 0 $ 0 $100,000(1) 1 0 N/A 0 7,000(2) 107,000(3) 2 0 N/A 0 7,000 114,000 3 0 N/A 0 7,000 121,000 4 0 N/A 0 7,000 128,000 5 0 N/A 0 7,000 135,000 6 0 N/A 0 7,000 142,000 7 0 N/A 0 7,000 149,000 8 0 N/A 0 7,000 156,000 9 0 N/A 0 7,000 163,000 10 0 N/A 0 7,000 170,000 11 0 $8,075(4) 8,075 0 170,000 12 0 8,075 8,075 0 170,000 13 0 8,075 8,075 0 170,000 14 0 8,075 8,075 0 170,000 15 0 8,075 8,075 0 170,000 20 0 8,075 8,075 0 170,000
(1) The initial Benefit Base is equal to the initial payment of $100,000. The Benefit Base is used to determine the Lifetime Income Amount and the Rider fee. It is not available for withdrawal as a lump sum. (2) In this example, there is no withdrawal during the first Contract Year so a Bonus will be added to the Benefit Base. The Bonus amount is equal to 7% of the total Purchase Payments to date (.07 x $100,000 = $7,000). (3) Following a Bonus, the Benefit Base is recalculated. The new Benefit Base is equal to the Benefit Base before the Bonus increased by the amount of the Bonus ($100,000 + $7,000 = $107,000). (4) The Lifetime Income Amount is calculated on the Contract Anniversary after the youngest Covered Person's attains age 59 1/2. The Lifetime Income Amount is initially equal to 4.75% of the Benefit Base at that time (.0475 x $170,000 = $8,075) D-40 CONTRACTS ISSUED PRIOR TO JANUARY 17, 2008. Assume a single Purchase Payment of $100,000 at the youngest Covered Person's age 49 1/2, no Additional Purchase Payments are made, and withdrawals equal to the Lifetime Income Amount are taken beginning in year 11. Also assume that the Contract Value is less than the Benefit Base at the eligible Step-up Dates, so there is no Step-up and at least one of the Covered Persons survives at least 20 years from issue.
CONTRACT PURCHASE LIFETIME WITHDRAWAL BENEFIT BASE ON YEAR PAYMENTS INCOME AMOUNT TAKEN BONUS CONTRACT ANNIVERSARY - -------- -------- ------------- ---------- ------ -------------------- At issue $100,000 N/A $ 0 $ 0 $100,000(1) 1 0 N/A 0 6,000(2) 106,000(3) 2 0 N/A 0 6,000 112,000 3 0 N/A 0 6,000 118,000 4 0 N/A 0 6,000 124,000 5 0 N/A 0 6,000 130,000 6 0 N/A 0 6,000 136,000 7 0 N/A 0 6,000 142,000 8 0 N/A 0 6,000 148,000 9 0 N/A 0 6,000 154,000 10 0 N/A 0 6,000 160,000 11 0 $7,600(4) 7,600 0 160,000 12 0 7,600 7,600 0 160,000 13 0 7,600 7,600 0 160,000 14 0 7,600 7,600 0 160,000 15 0 7,600 7,600 0 160,000 20 0 7,600 7,600 0 160,000
(1) The initial Benefit Base is equal to the initial payment of $100,000. The Benefit Base is used to determine the Lifetime Income Amount and the Rider fee. It is not available for withdrawal as a lump sum. (2) In this example, there is no withdrawal during the first Contract Year so a Bonus will be added to the Benefit Base. The Bonus amount is equal to 6% of the total Purchase Payments to date (.06 x $100,000 = $6,000). (3) Following a Bonus, the Benefit Base is recalculated. The new Benefit Base is equal to the Benefit Base before the Bonus increased by the amount of the Bonus ($100,000 + $6,000 = $106,000). (4) The Lifetime Income Amount is calculated on the Contract Anniversary after the youngest Covered Person's attains age 59 1/2. The Lifetime Income Amount is initially equal to 4.75% of the Benefit Base at that time (.0475 x $160,000 = $7,600). D-41 EXAMPLE 2B. THIS EXAMPLE ILLUSTRATES ADDITIONAL PURCHASE PAYMENTS. Assume an initial Purchase Payment of $100,000 at youngest Covered Person's age 60, an Additional Purchase Payment of $10,000 during Contract Year 1, and an Additional Purchase Payment of $10,000 in year 2. Withdrawals are taken at the end of all Contract Years. Also assume that the Contract Value is less than the Benefit Base so there is no Step-up.
LIFETIME INCOME LIFETIME INCOME CONTRACT PURCHASE BENEFIT BASE AFTER AMOUNT AFTER WITHDRAWAL BENEFIT BASE ON AMOUNT ON CONTRACT YEAR PAYMENTS PURCHASE PAYMENT PURCHASE PAYMENT TAKEN CONTRACT ANNIVERSARY ANNIVERSARY - -------- -------- ------------------ ---------------- ---------- -------------------- ------------------ At issue $100,000 $100,000 $4,750 -- $100,000 $5,000 1 10,000(1) 110,000(1) 5,225(1) $5,225 110,000 5,225 2 10,000(2) 114,775(2) 5,452(2) 5,452 114,775 5,452
(1) In this example, there is an Additional Purchase Payment during the first Contract Year. Following the Additional Purchase Payment, the Benefit Base is calculated as the initial Benefit Base plus the amount of the Additional Purchase Payment ($100,000 + $10,000 = $110,000). The Lifetime Income Amount is calculated as 4.75% of the Benefit Base immediately after the Purchase Payment (.0475 x $110,000 = $5,225). (2) In the second year, there is another Additional Purchase Payment of $10,000. Since there was a withdrawal prior to this payment and after the last recalculation of the Benefit Base, the Benefit Base is increased by the excess of the Purchase Payment over the previous withdrawals ($110,000 + ($10,000 - $5,225) = $114,775). The Lifetime Income Amount is calculated as 4.75% of the Benefit Base immediately after the Purchase Payment (.0475 x $114,775 = $5,451.81). EXAMPLE 2C. THIS EXAMPLE ILLUSTRATES THE IMPACT OF STEP-UPS. Assume a single Purchase Payment of $100,000 at age 59 1/2 of the youngest Covered Person, no Additional Purchase Payments are made, and withdrawals equal to the Lifetime Income Amount are taken in Contract Years 1, 2, 3 and 4. Since withdrawals are taken every year, there are no Bonuses. The Benefit Base Steps-up at the end of Contract Years 1, 2 and 3.
HYPOTHETICAL CONTRACT LIFETIME INCOME VALUE ON CONTRACT BENEFIT BASE ON CONTRACT PURCHASE AMOUNT AFTER WITHDRAWAL ANNIVERSARY PRIOR TO CONTRACT YEAR PAYMENTS PURCHASE PAYMENT TAKEN RIDER FEE ANNIVERSARY - -------- -------- ---------------- ---------- --------------------- --------------- At issue $100,000 -- -- -- $100,000 1 0 $4,750 $4,750 $102,250 102,250 2 0 4,857(1) 4,857(1) 104,025 104,025(1) 3 0 4,941 4,941 105,800 105,800 4 0 5,026 5,026 94,977(2) 105,800(2) 5 0 5,026 5,026 79,882 105,800
(1) At the end of Contract Year 1, the Contract Value in this example, $102,250 is greater than the Benefit Base of $100,000. The Benefit Base will Step-up to equal the Contract Value of $102,000. The Lifetime Income Amount will equal 5% of the new Benefit Base (.0475 x $102,000 = $4,856.88). (2) At the end of Contract Year 4, the Contract Value in this example, $94,977 is less than the Benefit Base of $105,800. The Benefit Base will remain at $105,800. D-42 EXAMPLE 2D. THIS EXAMPLE ILLUSTRATES EXCESS WITHDRAWALS AND THE IMPACT OF WITHDRAWALS ON SUBSEQUENT PAYMENTS APPLIED TO THE BENEFIT BASE. Assume an initial Purchase Payment of $100,000 at age 60 (61 in New York), Additional Payments in years 2, 13 and 15, an excess withdrawal in year 1 and a withdrawal of the Lifetime Income Amount in year 14.
CONTRACT LIFETIME INCOME PURCHASE WITHDRAWAL HYPOTHETICAL BENEFIT LIFETIME INCOME MONTH AMOUNT BEFORE TRANSACTION PAYMENTS TAKEN CONTRACT VALUE BASE AMOUNT - -------- ------------------------- -------- ---------- -------------- -------- --------------- At issue -- $100,000 -- $100,000 $100,000 $4,750 1 $4,750 0 $10,000(1) 85,000 85,000(1) 4,038(1) 2 4,038 10,000(2) 0 93,500 95,000(2) 4,513(2) 12 4,513 0 0 120,000 120,000 5,700 13 5,700 10,000(3) 0 130,000 130,000(3) 6,175(3) 14 6,175 0 6,175 123,825 130,000 6,175 15 6,175 10,000(4) 0 130,000 133,825(4) 6,357(4) 16 6,357 0 0 125,000 133,825 6,357
(1) The withdrawal of $10,000 exceeds the Lifetime Income Amount of $4,750. The Benefit Base will be Reset to equal the lesser of the Contract Value after the withdrawal ($85,000) or the Benefit Base prior to the withdrawal less the amount of the withdrawal ($100,000 - $10,000 = $90,000). The Lifetime Income Amount will Reset to 4.75% of the new Benefit Base (.0475 x $85,000 = $4,038). (2) The Additional Purchase Payment of $10,000 in year 2 is the first Payment or Withdrawal since the Reset of the Benefit Base, so the entire $10,000 is added to the Benefit Base. The new Benefit Base equals $95,000 ($85,000 + $10,000). The new Lifetime Income Amount is .0475 x $95,000 = $4,513. (3) The Additional Purchase Payment of $10,000 in year 13 is the first Payment or Withdrawal since the Step-up of the Benefit Base at the end of year 12, so the entire $10,000 is added to the Benefit Base. The new Benefit Base equals $130,000 ($120,000 + $10,000). The new Lifetime Income Amount is .0475 x $130,000 = $6,175. (4) The Additional Purchase Payment of $10,000 in year 15 is reduced by the $6,175 Withdrawal since the last increase of the Benefit Base in year 13 by an Additional Payment. The new Benefit Base equals $133,825 ($130,000 + $10,000 - $6,175). The new Lifetime Income Amount is .0475 x $133,825 = $6,357. EXAMPLES 3A, 3B AND 3C ILLUSTRATE THE BASIC OPERATION OF THE PRINCIPAL PLUS OPTIONAL BENEFIT RIDER. EXAMPLE 3A. THIS EXAMPLE ILLUSTRATES THE IMPACT OF IMMEDIATE WITHDRAWALS. Assume a single Purchase Payment of $100,000, no Additional Purchase Payments are made, withdrawals equal to the Guaranteed Withdrawal Amount are taken in each of the first 20 Contract Years and there are no Step-ups.
GUARANTEED CONTRACT PURCHASE WITHDRAWAL WITHDRAWAL GUARANTEED WITHDRAWAL YEAR PAYMENTS AMOUNT TAKEN BONUS BALANCE ON CONTRACT ANNIVERSARY - -------- -------- ---------- ---------- ----- ------------------------------- At issue $100,000 -- -- -- $100,000(1) 1 0 $5,000(1) $5,000 $ 0(2) 95,000 2 0 5,000 5,000(2) 0 90,000(3) 3 0 5,000 5,000 0 85,000 4 0 5,000 5,000 0 80,000 5 0 5,000 5,000 0 75,000 10 0 5,000 5,000 0 50,000 20 0 5,000 5,000 0 0(4)
(1) The initial Guaranteed Withdrawal Balance is equal to the initial payment of $100,000. The initial Guaranteed Withdrawal Amount is equal to 5% of the initial Guaranteed Withdrawal Balance (.05 x $100,000 = $5,000). (2) In this example, withdrawals each year equal the Guaranteed Withdrawal Amount. There is no Bonus in any year that a withdrawal is taken. (3) Since the withdrawal taken is equal to the Guaranteed Withdrawal Amount, following the withdrawal the Guaranteed Withdrawal Balance is equal to the Guaranteed Withdrawal Balance before the withdrawal decreased by the amount of the withdrawal ($95,000 - $5,000 = $90,000). (4) In this example, withdrawals equal to the Guaranteed Withdrawal Amount were taken each year for 20 years. At the end of 20 years, the Guaranteed Withdrawal Balance is zero and the Rider will terminate. D-43 EXAMPLE 3B. THIS EXAMPLE ILLUSTRATES THE IMPACT OF ADDITIONAL PURCHASE PAYMENTS. Assume an initial Purchase Payment of $100,000, an Additional Purchase Payment of $10,000 is made at the beginning of the Contract Year 2, a withdrawal equal to the Guaranteed Withdrawal Amount is taken in Contract Year 3, no withdrawals are taken in Contract Years 1, 2, 4, 5 (resulting in Bonuses in those years) and there are no Step-ups.
GUARANTEED GUARANTEED WITHDRAWAL WITHDRAWAL AMOUNT AFTER BENEFIT ON PURCHASE PURCHASE WITHDRAWAL CONTRACT CONTRACT YEAR PAYMENTS PAYMENT TAKEN BONUS ANNIVERSARY - ------------- -------- ------------ ---------- ------ ----------- At issue $100,000 -- -- -- $ 100,000 1 0 $5,000 $ 0 $5,000(1) 105,000(1) 2 10,000(B) 5,750(2) 0 5,500 120,500 3 0 6,025 6,025(3) 0(4) 114,475(3) 4 0 6,025 0 5,500 119,975 5 0 6,025 0 5,500 125,475
(1) In this example, there is no withdrawal during the first Contract Year so a Bonus will be added to the Guaranteed Withdrawal Balance. The Bonus amount is equal to 5% of the total Purchase Payments to date (.05 x $100,000 = $5,000). The Guaranteed Withdrawal Balance is increased by the amount of the Bonus ($100,000 + $5,000 = $105,000). The new Guaranteed Withdrawal Amount is equal to the greater of (a) the Guaranteed Withdrawal Amount prior to the Bonus ($5,000) or (b) 5% of the Guaranteed Withdrawal Balance after the bonus (.05 x $105,000 - $5,250). (2) In this example, there is an Additional Purchase Payment at the beginning of the second Contract Year. Prior to that Purchase Payment the Guaranteed Withdrawal Amount is $5,250, see footnote A above. Following the Additional Purchase Payment, the Guaranteed Withdrawal Amount is calculated as the lesser of (a) 5% of the Guaranteed Withdrawal Balance immediately after the Purchase Payment (.05 x ($105,000 + $10,000) = $5,750) or (b) the Guaranteed Withdrawal Amount immediately prior to the Purchase Payment plus 5% of the Purchase Payment ($5,250 + (.05 x $10,000)) = $5,750). (3) In this example there is a withdrawal equal to the Guaranteed Withdrawal Amount $6,025 in year 3. Since this withdrawal does not exceed the Guaranteed Withdrawal Amount, the Guaranteed Withdrawal Balance is reduced by the amount of the withdrawal ($120,500 - $6,025 = $114,475). (4) No Bonus is payable in any year that a withdrawal is taken. EXAMPLE 3C. THIS EXAMPLE ILLUSTRATES THE IMPACT OF STEP-UPS AND EXCESS WITHDRAWALS. Assume a single Purchase Payment of $100,000, no Additional Purchase Payments are made, the Owner elects to Step-up the Guaranteed Withdrawal Balance at the end of Contract Year 3, withdrawals equal to the Guaranteed Withdrawal Amount are taken in Contract Years 1, 2, 3 and 4 and a withdrawal exceeding the Guaranteed Withdrawal Amount is taken at the end of Contract Year 5 (resulting in a Reset).
GUARANTEED HYPOTHETICAL GUARANTEED WITHDRAWAL CONTRACT VALUE WITHDRAWAL AMOUNT AFTER ON CONTRACT BENEFIT ON PURCHASE PURCHASE WITHDRAWAL ANNIVERSARY CONTRACT CONTRACT YEAR PAYMENTS PAYMENT TAKEN PRIOR TO FEE BONUS ANNIVERSARY - ------------- -------- ------------ ---------- -------------- ----- ----------- At issue $100,000 -- -- -- -- $100,000 1 0 $5,000 $5,000 $102,000 $ 0 95,000 2 0 5,000 5,000 103,828 0 90,000 3 0 5,000 5,000 105,781(1) 0 105,781(1) 4 0 5,289(2) 5,289 94,946 0 100,492 5 0 5,289 10,000(3) 79,898(3) 0 79,898(3)
(1) At the end of Contract Year 3, the Contract Value in this example, $105,781 is greater than the Guaranteed Withdrawal Balance ($90,000 - $5,000 = $85,000). The Guaranteed Withdrawal Balance will Step-up to equal the Contract Value of $105,781. (2) Following the Step-up of the Guaranteed Withdrawal Balance, the Guaranteed Withdrawal Amount is recalculated as the greater of (a) the Guaranteed Withdrawal Amount prior to the Step-up ($5,000) or (b) 5% of the Guaranteed Withdrawal Balance after the Step-up (.05 x $105,781 = $5,289). (3) At the end of year 5, there is a withdrawal of $10,000 which is greater than the Guaranteed Withdrawal Amount. Since this is an excess withdrawal, the Guaranteed Withdrawal Balance will be Reset to the lesser of (a) the Contract Value after the withdrawal ($79,898) or (b) the Guaranteed Withdrawal Balance prior to the withdrawal minus the amount of the withdrawal ($100,492 - $10,000 = $90,492). Since the Guaranteed Withdrawal Balance was Reset, the Guaranteed Withdrawal Amount will be Reset. The Guaranteed Withdrawal Amount will equal the lesser of (a) the Guaranteed Withdrawal Amount prior to the withdrawal ($5,289) or (b) 5% of the greater of the Contract Value after the withdrawal or the new Guaranteed Withdrawal Balance Value (.05 x $79,898 = $3,995). D-44 EXAMPLES 4A, 4B, 4C AND 4D ILLUSTRATE THE BASIC OPERATION OF THE PRINCIPAL PLUS FOR LIFE OPTIONAL BENEFIT RIDER. EXAMPLE 4A. THIS EXAMPLE ILLUSTRATES THE IMPACT OF WAITING TO START WITHDRAWALS. Assume a single Purchase Payment of $100,000 at Covered Person's age 49 1/2, no Additional Purchase Payments are made, and withdrawals equal to the Guaranteed Withdrawal Amount are taken beginning in year 11. Also assume that the Contract Value is less than the Guaranteed Withdrawal Balance at the eligible Step-up Dates, so there is no Step-up and the Covered Person survives at least 31 years from issue.
GUARANTEED WITHDRAWAL GUARANTEED LIFETIME BALANCE ON PURCHASE WITHDRAWAL INCOME WITHDRAWAL CONTRACT CONTRACT YEAR PAYMENTS AMOUNT AMOUNT TAKEN BONUS ANNIVERSARY - ------------- -------- ---------- -------- ---------- ------- ----------- At issue $100,000 N/A N/A $ 0 $ 0 $100,000(1) 1 0 $5,000(1) N/A 0 5,000(2) 105,000(3) 2 0 5,250(3) N/A 0 5,000 110,000 3 0 5,500 N/A 0 5,000 115,000 4 0 5,750 N/A 0 5,000 120,000 5 0 6,000 N/A 0 5,000 125,000 6 0 6,250 N/A 0 5,000 130,000 7 0 6,500 N/A 0 5,000 135,000 8 0 6,750 N/A 0 5,000 140,000 9 0 7,000 N/A 0 5,000 145,000 10 0 7,250 N/A 0 5,000 150,000 11 0 7,500 $7,500(4) 7,500 0 142,500 12 0 7,500 7,500 7,500 0 135,000 13 0 7,500 7,500 7,500 0 127,500 14 0 7,500 7,500 7,500 0 120,000 15 0 7,500 7,500 7,500 0 112,500 20 0 7,500 7,500 7,500 0 75,000 25 0 7,500 7,500 7,500 0 37,500 30 0 7,500 7,500 7,500 0 0 31+ 0 0 7,500 7,500 0 0
(1) The initial Guaranteed Withdrawal Balance is equal to the initial payment of $100,000. The initial Guaranteed Withdrawal Amount is equal to 5% of the initial Guaranteed Withdrawal Balance (.05 x $100,000 = $5,000). The Guaranteed Withdrawal Balance is used to determine the Guaranteed Withdrawal Amount, the Lifetime Income Amount and the Rider fee. It is not available for withdrawal as a lump sum. (2) In this example, there is no withdrawal during the first Contract Year so a Bonus will be added to the Guaranteed Withdrawal Balance. The bonus amount is equal to 5% of the total Purchase Payments to date (.05 x $100,000 = $5,000). (3) Following a Bonus, the Guaranteed Withdrawal Balance and the Guaranteed Withdrawal Amount are recalculated. The new Guaranteed Withdrawal Balance is equal to the Guaranteed Withdrawal Balance before the Bonus increased by the amount of the Bonus ($100,000 + $5,000 = $105,000). The Guaranteed Withdrawal Amount is equal to the greater of (a) the Guaranteed Withdrawal Amount prior to the Bonus ($5,000) or 5% of the Guaranteed Withdrawal Balance after the bonus (.05 x $105,000 = $5,250). (4) The Lifetime Income Amount is calculated on the Contract Anniversary after the Covered Person's attains age 59 1/2. The Lifetime Income Amount is initially equal to 5% of the Guaranteed Withdrawal Balance at that time (.05 x $150,000 = $7,500) EXAMPLE 4B. THIS EXAMPLE ILLUSTRATES ADDITIONAL PURCHASE PAYMENTS. Assume an initial Purchase Payment of $100,000 at Covered Person's age 60, an Additional Purchase Payment of $10,000 during Contract Year 1, and an Additional Purchase Payment of $10,000 in year 2. Withdrawals are taken at the end of all Contract Years. Also assume that the Contract Value is less than the Benefit Base so there is no Step-up.
LIFETIME BENEFIT INCOME LIFETIME BASE AMOUNT BENEFIT INCOME AFTER AFTER BASE ON AMOUNT ON PURCHASE PURCHASE PURCHASE WITHDRAWAL CONTRACT CONTRACT CONTRACT YEAR PAYMENTS PAYMENT PAYMENT TAKEN ANNIVERSARY ANNIVERSARY - ------------- -------- -------- -------- ---------- ----------- ----------- At issue $100,000 $100,000 $5,000 -- $100,000 $5,000 1 10,000(1) 110,000(1) 5,500(1) $5,500 104,500 5,500 2 10,000(2) 114,500(2) 5,725(2) 5,725 108,775 5,725
(1) In this example, there is an Additional Purchase Payment during the first Contract Year. Following the Additional Purchase Payment, the Benefit Base is calculated as the initial Benefit Base plus the amount of the Additional Purchase Payment ($100,000 + $10,000 = $110,000). The Lifetime Income Amount is calculated as 5% of the Benefit Base immediately after the Purchase Payment (.05 x $110,000 = $5,500). (2) In the second year, there is another Additional Purchase Payment of $10,000. Following the Additional Purchase Payment, the Benefit Base is calculated as the previous Benefit Base plus the amount of the Additional Purchase Payment ($104,500 + $10,000 = $114,500). The Lifetime Income Amount is calculated as 5% of the Benefit Base immediately after the Purchase Payment (.05 x $114,500 = $5,725). D-45 EXAMPLE 4C. THIS EXAMPLE ILLUSTRATES THE IMPACT OF STEP-UPS. Assume a single Purchase Payment of $100,000 at age 59 1/2, no Additional Purchase Payments are made, and withdrawals equal to the Guaranteed Withdrawal Amount are taken in Contract Years 1, 2, 3 and 4. Since withdrawals are taken every year, there are no Bonuses. The Guaranteed Withdrawal Balance Steps-up at the end of Contract Year 3.
HYPOTHETICAL LIFETIME CONTRACT GUARANTEED INCOME VALUE ON GUARANTEED WITHDRAWAL AMOUNT CONTRACT WITHDRAWAL AMOUNT AFTER AFTER ANNIVERSARY BALANCE ON PURCHASE PURCHASE PURCHASE WITHDRAWAL PRIOR TO CONTRACT CONTRACT YEAR PAYMENTS PAYMENT PAYMENT TAKEN RIDER FEE ANNIVERSARY - ------------- -------- ------------ -------- ---------- ------------ ----------- At issue $100,000 -- -- -- -- $100,000 1 0 $5,000 $5,000 $5,000 $102,000 95,000 2 0 5,000 5,000 5,000 103,828 90,000 3 0 5,000 5,000 5,000 105,781 105,781(1) 4 0 5,289(2) 5,289(2) 5,289 94,946 100,492
(1) At the end of Contract Year 3, the Contract Value in this example, $105,781 is greater than the Guaranteed Withdrawal Balance ($90,000 - $5,000 = $85,000). The Guaranteed Withdrawal Balance will Step-up to equal the Contract Value of $105,781. (2) Following the Step-up of the Guaranteed Withdrawal Balance, the Guaranteed Withdrawal Amount is recalculated as the greater of (a) the Guaranteed Withdrawal Amount prior to the Step-up $5,000 or (b) 5% of the Guaranteed Withdrawal Balance after the Step-up (.05 x $105,781 = $5,289). The Lifetime Income Amount is also recalculated as the greater of (a) the Lifetime Income Amount prior to the Step-up $5,000 or (b) 5% of the Guaranteed Withdrawal Balance after the Step-up (.05 x $107,881 = $5,289). EXAMPLE 4D. THIS EXAMPLE ILLUSTRATES EXCESS WITHDRAWALS. Assume the same Purchase Payments and withdrawals as example 2c, but with a withdrawal of $10,000 at the end of year 4.
HYPOTHETICAL LIFETIME CONTRACT GUARANTEED INCOME VALUE ON GUARANTEED WITHDRAWAL AMOUNT CONTRACT WITHDRAWAL AMOUNT AFTER AFTER ANNIVERSARY BALANCE ON PURCHASE PURCHASE PURCHASE WITHDRAWAL PRIOR TO CONTRACT CONTRACT YEAR PAYMENTS PAYMENT PAYMENT TAKEN RIDER FEE ANNIVERSARY - ------------- -------- ------------ -------- ---------- ------------ ----------- At issue $100,000 -- -- -- -- $ 100,000 1 0 $5,000 $5,000 $ 5,000 $102,000 95,000 2 0 5,000 5,000 5,000 103,828 90,000 3 0 5,000 5,000 5,000 105,781 105,781 4 0 5,289 5,289 10,000 90,235 90,235(1) 5 0 4,512(1) 4,512(1) 4,512 76,319 85,723
(1) The withdrawal of $10,000 exceeds the Guaranteed Withdrawal Amount and the Lifetime Income Amount of $5,289. The Benefit Base will be reset to equal the lesser of the Contract Value after the withdrawal ($90,235) or the Benefit Base prior to the withdrawal less the amount of the withdrawal ($105,781 - $10,000 = $95,781). The Guaranteed Income Amount and the Lifetime Income Amount will equal 5% of the new Benefit Base (.05 x $90,235 = $4,512). D-46 EXAMPLES 5A, 5B, 5C AND 5D ILLUSTRATE THE BASIC OPERATION OF THE PRINCIPAL PLUS FOR LIFE PLUS AUTOMATIC ANNUAL STEP-UPS OPTIONAL BENEFIT RIDER. EXAMPLE 5A. THIS EXAMPLE ILLUSTRATES THE IMPACT OF WAITING TO START WITHDRAWALS. Assume a single Purchase Payment of $100,000 at Covered Person's age 49 1/2, no Additional Purchase Payments, and withdrawals equal to the Guaranteed Withdrawal Amount are taken beginning in year 11. Also assume that the Contract Value is less than the Guaranteed Withdrawal Balance at the eligible Step-up Dates, so there is no Step-up and the Covered Person survives at least 31 years from issue.
GUARANTEED WITHDRAWAL GUARANTEED LIFETIME BALANCE ON PURCHASE WITHDRAWAL INCOME WITHDRAWAL CONTRACT CONTRACT YEAR PAYMENTS AMOUNT AMOUNT TAKEN BONUS ANNIVERSARY - ------------- -------- ---------- -------- ---------- ------- ----------- At issue $100,000 N/A N/A $ 0 $ 0 $100,000(1) 1 0 $5,000(1) N/A 0 5,000(2) 105,000(3) 2 0 5,250(3) N/A 0 5,000 110,000 3 0 5,500 N/A 0 5,000 115,000 4 0 5,750 N/A 0 5,000 120,000 5 0 6,000 N/A 0 5,000 125,000 6 0 6,250 N/A 0 5,000 130,000 7 0 6,500 N/A 0 5,000 135,000 8 0 6,750 N/A 0 5,000 140,000 9 0 7,000 N/A 0 5,000 145,000 10 0 7,250 N/A 0 5,000 150,000 11 0 7,500 $7,500(4) 7,500 0 142,500 12 0 7,500 7,500 7,500 0 135,000 13 0 7,500 7,500 7,500 0 127,500 14 0 7,500 7,500 7,500 0 120,000 15 0 7,500 7,500 7,500 0 112,500 20 0 7,500 7,500 7,500 0 75,000 25 0 7,500 7,500 7,500 0 37,500 30 0 7,500 7,500 7,500 0 0 31+ 0 0 7,500 7,500 0 0
(1) The initial Guaranteed Withdrawal Balance is equal to the initial payment of $100,000. The initial Guaranteed Withdrawal Amount is equal to 5% of the initial Guaranteed Withdrawal Balance (.05 x $100,000 = $5,000). The Guaranteed Withdrawal Balance is used to determine the Guaranteed Withdrawal Amount , the Lifetime Income Amount and the Rider fee. It is not available for withdrawal as a lump sum. (2) In this example, there is no withdrawal during the first Contract Year so a Bonus will be added to the Guaranteed Withdrawal Balance. The Bonus amount is equal to 5% of the total Purchase Payments to date (.05 x $100,000 = $5,000). (3) Following a Bonus, the Guaranteed Withdrawal Balance and the Guaranteed Withdrawal Amount are recalculated. The new Guaranteed Withdrawal Balance is equal to the Guaranteed Withdrawal Balance before the Bonus increased by the amount of the Bonus ($100,000 + $5,000 = $105,000). The Guaranteed Withdrawal Amount is equal to the greater of (a) the Guaranteed Withdrawal Amount prior to the Bonus ($5,000) or 5% of the Guaranteed Withdrawal Balance after the Bonus (.05 x $105,000 = $5,250). (4) The Lifetime Income Amount is calculated on the Contract Anniversary after the Covered Person's attains age 59 1/2. The Lifetime Income Amount is initially equal to 5% of the Guaranteed Withdrawal Balance at that time (.05 x $150,000 = $7,500) EXAMPLE 5B. THIS EXAMPLE ILLUSTRATES ADDITIONAL PURCHASE PAYMENTS. Assume an initial Purchase Payment of $100,000 at Covered Person's age 60, an Additional Purchase Payment of $10,000 during Contract Year 1, and an Additional Purchase Payment of $10,000 in year 2. Withdrawals are taken at the end of all Contract Years. Also assume that the Contract Value is less than the Benefit Base so there is no Step-up.
LIFETIME BENEFIT INCOME LIFETIME BASE AMOUNT BENEFIT INCOME AFTER AFTER BASE ON AMOUNT ON PURCHASE PURCHASE PURCHASE WITHDRAWAL CONTRACT CONTRACT CONTRACT YEAR PAYMENTS PAYMENT PAYMENT TAKEN ANNIVERSARY ANNIVERSARY - ------------- -------- -------- -------- ---------- ----------- ----------- At issue $100,000 $100,000 $5,000 -- $100,000 $5,000 1 10,000(1) 110,000(1) 5,500(1) $5,500 104,500 5,500 2 10,000(2) 114,500(2) 5,725(2) 5,725 108,775 5,725
(1) In this example, there is an Additional Purchase Payment during the first Contract Year. Following the Additional Purchase Payment, the Benefit Base is calculated as the initial Benefit Base plus the amount of the Additional Purchase Payment ($100,000 + $10,000 = $110,000). The Lifetime Income Amount is calculated as 5% of the Benefit Base immediately after the Purchase Payment (.05 x $110,000 = $5,500). (2) In the second year, there is another Additional Purchase Payment of $10,000. Following the Additional Purchase Payment, the Benefit Base is calculated as the previous Benefit Base plus the amount of the Additional Purchase Payment ($104,500 + $10,000 = $114,500). The Lifetime Income Amount is calculated as 5% of the Benefit Base immediately after the Purchase Payment (.05 x $114,500 = $5,725). D-47 EXAMPLE 5C. THIS EXAMPLE ILLUSTRATES THE IMPACT OF STEP-UPS. Assume a single Purchase Payment of $100,000 at age 59 1/2, no Additional Purchase Payments are made, and withdrawals equal to the Guaranteed Withdrawal Amount are taken in Contract Years 1, 2, 3 and 4. Since withdrawals are taken every year, there are no Bonuses. The Guaranteed Withdrawal Balance Steps-up at the end of Contract Years 1, 2 and 3,
HYPOTHETICAL CONTRACT GUARANTEED GUARANTEED WITHDRAWAL LIFETIME INCOME VALUE ON CONTRACT WITHDRAWAL BALANCE PURCHASE AMOUNT AFTER PURCHASE AMOUNT AFTER PURCHASE WITHDRAWAL ANNIVERSARY PRIOR TO ON CONTRACT CONTRACT YEAR PAYMENTS PAYMENT PAYMENT TAKEN RIDER FEE ANNIVERSARY - ------------- -------- --------------------- --------------------- ---------- --------------------- ------------------ At issue $100,000 -- -- -- -- $100,000 1 0 $5,000 $5,000 $5,000 $102,000 102,000(1) 2 0 5,100(2) 5,100 5,100 103,514 103,514 3 0 5,176 5,176 5,176 105,020 105,020 4 0 5,251 5,251 5,251 94,012 99,769
(1) At the end of Contract Year 1, the Contract Value in this example, $102,000 is greater than the Guaranteed Withdrawal Balance ($10,000 - $5,000 = $95,000). The Guaranteed Withdrawal Balance will Step-up to equal the Contract Value of $102,000. (2) Following the Step-up of the Guaranteed Withdrawal Balance, the Guaranteed Withdrawal Amount is recalculated as the greater of (a) the Guaranteed Withdrawal Amount prior to the Step-up $5,000 or (b) 5% of the Guaranteed Withdrawal Balance after the Step-up (.05 x $102,000 = $5,100). EXAMPLE 5D. THIS EXAMPLE ILLUSTRATES EXCESS WITHDRAWALS. Assume the same Purchase Payments and withdrawals as example 3c, but with a withdrawal of $10,000 at the end of year 4.
HYPOTHETICAL CONTRACT GUARANTEED GUARANTEED WITHDRAWAL LIFETIME INCOME VALUE ON CONTRACT WITHDRAWAL BALANCE PURCHASE AMOUNT AFTER PURCHASE AMOUNT AFTER PURCHASE WITHDRAWAL ANNIVERSARY PRIOR TO ON CONTRACT CONTRACT YEAR PAYMENTS PAYMENT PAYMENT TAKEN RIDER FEE ANNIVERSARY - ------------- -------- --------------------- --------------------- ---------- --------------------- ------------------ At issue $100,000 -- -- -- -- $100,000 1 0 $5,000 $5,000 $ 5,000 $102,000 102,000 2 0 5,100 5,100 5,100 103,514 103,514 3 0 5,176 5,176 5,176 105,020 105,020 4 0 5,251 5,251 10,000 89,263 89,263(1) 5 0 4,463(1) 4,463(1) 4,463 75,307 84,800
(1) The withdrawal of $10,000 exceeds the Guaranteed Withdrawal Amount and the Lifetime Income Amount of $5,251. The Benefit Base will be reset to equal the lesser of the Contract Value after the withdrawal ($89,263) or the Benefit Base prior to the withdrawal less the amount of the withdrawal ($105,020 - $10,000 = $95,020). The Guaranteed Income Amount and the Lifetime Income Amount will equal 5% of the new Benefit Base (.05 x $89,263 = $4,463). D-48 EXAMPLES 6A, 6B, 6C AND 6D ILLUSTRATE THE BASIC OPERATION OF THE PRINCIPAL PLUS FOR LIFE PLUS SPOUSAL PROTECTION OPTIONAL BENEFIT RIDER. EXAMPLE 6A. THIS EXAMPLE ILLUSTRATES THE IMPACT OF WAITING TO START WITHDRAWALS. Assume a single Purchase Payment of $100,000 at age 55 of oldest Covered Person, no Additional Purchase Payments are made, and withdrawals equal to the Guaranteed Withdrawal Amount are taken beginning in year 11. Also assume that the Contract Value is less than the Guaranteed Withdrawal Balance at the eligible Step-up Dates, so there is no Step-up and either of the Covered Persons survives at least 31 years from issue.
GUARANTEED WITHDRAWAL GUARANTEED LIFETIME BALANCE ON PURCHASE WITHDRAWAL INCOME WITHDRAWAL CONTRACT CONTRACT YEAR PAYMENTS AMOUNT AMOUNT TAKEN BONUS ANNIVERSARY - ------------- -------- ---------- -------- ---------- ------ ----------- At issue $100,000 N/A N/A $ 0 $ 0 $100,000(1) 1 0 $5,000(1) N/A 0 5,000(2) 105,000(3) 2 0 5,250(3) N/A 0 5,000 110,000 3 0 5,500 N/A 0 5,000 115,000 4 0 5,750 N/A 0 5,000 120,000 5 0 6,000 N/A 0 5,000 125,000 6 0 6,250 N/A 0 5,000 130,000 7 0 6,500 N/A 0 5,000 135,000 8 0 6,750 N/A 0 5,000 140,000 9 0 7,000 N/A 0 5,000 145,000 10 0 7,250 N/A 0 5,000 150,000 11 0 7,500 $7,500(4) 7,500 0 142,500 12 0 7,500 7,500 7,500 0 135,000 13 0 7,500 7,500 7,500 0 127,500 14 0 7,500 7,500 7,500 0 120,000 15 0 7,500 7,500 7,500 0 112,500 20 0 7,500 7,500 7,500 0 75,000 25 0 7,500 7,500 7,500 0 37,500 30 0 7,500 7,500 7,500 0 0 31+ 0 0 7,500 7,500 0 0
(1) The initial Guaranteed Withdrawal Balance is equal to the initial payment of $100,000. The initial Guaranteed Withdrawal Amount is equal to 5% of the initial Guaranteed Withdrawal Balance (.05 x $100,000 = $5,000). The Guaranteed Withdrawal Balance is used to determine the Guaranteed Withdrawal Amount, the Lifetime Income Amount and the Rider fee. It is not available for withdrawal as a lump sum. (2) In this example, there is no withdrawal during the first Contract Year so a Bonus will be added to the Guaranteed Withdrawal Balance. The Bonus amount is equal to 5% of the total Purchase Payments to date (.05 x $100,000 = $5,000). (3) Following a Bonus, the Guaranteed Withdrawal Balance and the Guaranteed Withdrawal Amount are recalculated. The new Guaranteed Withdrawal Balance is equal to the Guaranteed Withdrawal Balance before the Bonus increased by the amount of the Bonus ($100,000 + $5,000 = $105,000). The Guaranteed Withdrawal Amount is equal to the greater of (a) the Guaranteed Withdrawal Amount prior to the Bonus ($5,000) or 5% of the Guaranteed Withdrawal Balance after the Bonus (.05 x $105,000 = $5,250). (4) The Lifetime Income Amount is calculated on the Contract Anniversary after the Covered Person's attains age 59 1/2 (oldest Covered Person for Principal Plus for Life - Spousal Protection Rider). The Lifetime Income Amount is initially equal to 5% of the Guaranteed Withdrawal Balance at that time (.05 x $150,000 = $7,500). D-49 EXAMPLE 6B. THIS EXAMPLE ILLUSTRATES ADDITIONAL PURCHASE PAYMENTS. Assume an initial Purchase Payment of $100,000 at age 65 of oldest Covered Person, an Additional Purchase Payment of $10,000 during Contract Year 1, and an Additional Purchase Payment of $10,000 in year 2. Withdrawals are taken at the end of all Contract Years. Also assume that the Contract Value is less than the Benefit Base so there is no Step-up.
LIFETIME BENEFIT INCOME LIFETIME BASE AMOUNT BENEFIT INCOME AFTER AFTER BASE ON AMOUNT ON PURCHASE PURCHASE PURCHASE WITHDRAWAL CONTRACT CONTRACT CONTRACT YEAR PAYMENTS PAYMENT PAYMENT TAKEN ANNIVERSARY ANNIVERSARY - ------------- -------- -------- -------- ---------- ----------- ----------- At issue $100,000 $100,000 $5,000 -- $100,000 $5,000 1 10,000(1) 110,000(1) 5,500(1) $5,500 104,500 5,500 2 10,000(2) 114,500(2) 5,725(2) 5,725 108,775 5,725
(1) In this example, there is an Additional Purchase Payment during the first Contract Year. Following the Additional Purchase Payment, the Benefit Base is calculated as the initial Benefit Base plus the amount of the Additional Purchase Payment ($100,000 + $10,000 = $110,000). The Lifetime Income Amount is calculated as 5% of the Benefit Base immediately after the Purchase Payment (.05 x $110,000 = $5,500). (2) In the second year, there is another Additional Purchase Payment of $10,000. Following the Additional Purchase Payment, the Benefit Base is calculated as the previous Benefit Base plus the amount of the Additional Purchase Payment ($104,500 + $10,000 = $114,500). The Lifetime Income Amount is calculated as 5% of the Benefit Base immediately after the Purchase Payment (.05 x $114,500 = $5,725). EXAMPLE 6C. THIS EXAMPLE ILLUSTRATES THE IMPACT OF STEP-UPS. Assume a single Purchase Payment of $100,000 at the oldest Covered Person's age 65, no Additional Purchase Payments are made, and withdrawals equal to the Guaranteed Withdrawal Amount are taken in Contract Years 1, 2, 3 and 4. Since withdrawals are taken every year, there are no Bonuses. The Guaranteed Withdrawal Balance Steps-up at the end of Contract Year 3.
HYPOTHETICAL CONTRACT GUARANTEED GUARANTEED WITHDRAWAL LIFETIME INCOME VALUE ON CONTRACT WITHDRAWAL BALANCE PURCHASE AMOUNT AFTER PURCHASE AMOUNT AFTER PURCHASE WITHDRAWAL ANNIVERSARY PRIOR TO ON CONTRACT CONTRACT YEAR PAYMENTS PAYMENT PAYMENT TAKEN RIDER FEE ANNIVERSARY - ------------- -------- --------------------- --------------------- ---------- --------------------- ------------------ At issue $100,000 -- -- -- -- $100,000 1 0 $5,000 $5,000 $5,000 $102,000 95,000 2 0 5,000 5,000 5,000 103,560 90,000 3 0 5,000 5,000 5,000 105,240(1) 105,240(1) 4 0 5,262(2) 5,262(2) 5,262 94,245 99,978
(1) At the end of Contract Year 3, the Contract Value in this example, $105,240 is greater than the Guaranteed Withdrawal Balance ($90,000 - $5,000 = $85,000). The Guaranteed Withdrawal Balance will Step-up to equal the Contract Value of $105,240. (2) Following the Step-up of the Guaranteed Withdrawal Balance, the Guaranteed Withdrawal Amount is recalculated as the greater of (a) the Guaranteed Withdrawal Amount prior to the Step-up $5,000 or (b) 5% of the Guaranteed Withdrawal Balance after the Step-up (.05 x $105,240 = $5,262). The Lifetime Income Amount is also recalculated as the greater of (a) the Lifetime Income Amount prior to the Step-up $5,000 or (b) 5% of the Guaranteed Withdrawal Balance after the Step-up (.05 x $105,240 = $5,262). EXAMPLE 6D. THIS EXAMPLE ILLUSTRATES EXCESS WITHDRAWALS. Assume the same Purchase Payments and withdrawals as example 4c, but with a withdrawal of $10,000 at the end of year 4.
HYPOTHETICAL CONTRACT GUARANTEED GUARANTEED WITHDRAWAL LIFETIME INCOME VALUE ON CONTRACT WITHDRAWAL BALANCE PURCHASE AMOUNT AFTER PURCHASE AMOUNT AFTER PURCHASE WITHDRAWAL ANNIVERSARY PRIOR TO ON CONTRACT CONTRACT YEAR PAYMENTS PAYMENT PAYMENT TAKEN RIDER FEE ANNIVERSARY - ------------- -------- --------------------- --------------------- ---------- --------------------- ------------------ At issue $100,000 -- -- -- -- $100,000 1 0 $5,000 $5,000 $ 5,000 $102,000 95,000 2 0 5,000 5,000 5,000 103,560 90,000 3 0 5,000 5,000 5,000 105,240 105,240 4 0 5,262 5,262 10,000 89,507 89,507(1) 5 0 4,475(1) 4,475(1) 4,475 75,465 85,031
(1) The withdrawal of $10,000 exceeds the Guaranteed Withdrawal Amount and the Lifetime Income Amount of $5,262. The Benefit Base will be reset to equal the lesser of the Contract Value after the withdrawal ($89,507) or the Benefit Base prior to the withdrawal less the amount of the withdrawal ($105,240 - $10,000 = $95,240). The Guaranteed Income Amount and the Lifetime Income Amount will equal 5% of the new Benefit Base (.05 x $89,507 = $4,475). D-50 EXAMPLES 7A, 7B, 7C AND 7D ILLUSTRATE THE BASIC OPERATION OF THE PRINCIPAL RETURNS OPTIONAL BENEFIT RIDER. EXAMPLE 7A. THIS EXAMPLE ILLUSTRATES THE IMPACT OF IMMEDIATE WITHDRAWALS OF THE GUARANTEED WITHDRAWAL AMOUNT. Assume a single Purchase Payment of $100,000, no Additional Purchase Payments are made, withdrawals equal to the Guaranteed Withdrawal Amount are taken in each of the first 12 Contract Years and there are no Step-ups.
GUARANTEED GUARANTEED WITHDRAWAL CONTRACT PURCHASE WITHDRAWAL WITHDRAWAL BALANCE ON CONTRACT YEAR PAYMENTS AMOUNT TAKEN(2) ANNIVERSARY - -------- -------- ---------- ---------- --------------------- At issue $100,000 $8,000 -- $100,000(1) 1 0 8,000 $8,000 92,000(3) 2 0 8,000 8,000 84,000 3 0 8,000 8,000 76,000 4 0 8,000 8,000 68,000 5 0 8,000 8,000 60,000 10 0 8,000 8,000 20,000 12 0 8,000 8,000 4,000 13 0 8,000 4,000 0(4)
(1) The initial Guaranteed Withdrawal Balance is equal to the initial payment of $100,000. The initial Guaranteed Withdrawal Amount is equal to 8% of the initial Guaranteed Withdrawal Balance (.08 x $100,000 = $8,000). (2) In this example, withdrawals each year equal the Guaranteed Withdrawal Amount. (3) Since the withdrawal taken is equal to the Guaranteed Withdrawal Amount, following the withdrawal the Guaranteed Withdrawal Balance is equal to the Guaranteed Withdrawal Balance before the withdrawal decreased by the amount of the withdrawal ($100,000 - $8,000 = $92,000). (4) In this example, withdrawals equal to the Guaranteed Withdrawal Amount were taken each year for 12 years. At the end of 12 years, the Guaranteed Withdrawal Balance is $4,000. The withdrawal of $4,000 in the next year reduced the Guaranteed Withdrawal Balance to $0 and the Rider will terminate. EXAMPLE 7B. THIS EXAMPLE ILLUSTRATES THE IMPACT OF IMMEDIATE WITHDRAWALS THAT ARE LESS THAN GUARANTEED WITHDRAWAL AMOUNT FOR THE FIRST 5 YEARS AND EQUAL THE GUARANTEED WITHDRAWAL AMOUNT THEREAFTER. Assume a single Purchase Payment of $100,000, no Additional Purchase Payments are made, and there are no Step-ups.
GUARANTEED GUARANTEED WITHDRAWAL CONTRACT PURCHASE WITHDRAWAL WITHDRAWAL BALANCE ON CONTRACT YEAR PAYMENTS AMOUNT TAKEN(2) ANNIVERSARY - -------- -------- ---------- ---------- --------------------- At issue $100,000 $8,000 -- $100,000 1 0 8,000 $6,000 94,000(2) 2 0 8,000 6,000 88,000 3 0 8,000 6,000 82,000 4 0 8,000 6,000 76,000 5 0 8,000 6,000 70,000 10 0 8,000 8,000 30,000 14 0 8,000 8,000 6,000 15 0 8,000 6,000 0(3)
(1) In this example, withdrawals in the first 5 years are less than the Guaranteed Withdrawal Amount. (2) Since the withdrawal taken is less than the Guaranteed Withdrawal Amount, following the withdrawal the Guaranteed Withdrawal Balance is equal to the Guaranteed Withdrawal Balance before the withdrawal decreased by the amount of the withdrawal ($100,000 - $6,000 = $94,000). (3) In this example, in year 15 the remaining Guaranteed Withdrawal Balance is less than the Guaranteed Withdrawal Amount. The final withdrawal equal to the Guaranteed Withdrawal Balance will deplete the Guaranteed Withdrawal Balance to zero and the Rider will terminate. EXAMPLE 7C. THIS EXAMPLE ILLUSTRATES THE IMPACT OF WAITING 10 YEARS TO BEGIN WITHDRAWALS IN A DECLINING MARKET. Assume a single Purchase Payment of $100,000 and no Additional Purchase Payments are made.
GUARANTEED WITHDRAWAL GUARANTEED BALANCE CONTRACT PURCHASE WITHDRAWAL WITHDRAWAL ON CONTRACT CONTRACT VALUE CONTRACT VALUE AFTER YEAR PAYMENTS AMOUNT TAKEN ANNIVERSARY PRIOR TO RIDER FEE RIDER FEE ACCUMULATION BENEFIT - -------- -------- ---------- ---------- ----------- ------------------ --------- -------------------- At issue $100,000 $8,000 -- $100,000 $100,000 $500 -- 1 0 8,000 $ 0 100,000 98,000 500 -- 2 0 8,000 0 100,000 98,586 500 -- 3 0 8,000 0 100,000 96,782 500 -- 4 0 8,000 0 100,000 93,477 500 -- 5 0 8,000 0 100,000 97,594 500 -- 10 0 8,000 0 100,000 85,531(1) 500 $100,000 11 0 8,000 8,000 92,000 92,709 500
D-51 (1) At the end of Contract Year 10, the Contract Value in this example, $85,531, is less than the First Year Purchase Payment of $100,000 and the Contract Value plus Principal Returns Rider fees, ($85,531 + $4,500). The Contract Value will be adjusted to equal the First Year Purchase Payments of $100,000. EXAMPLE 7D. THIS EXAMPLE ILLUSTRATES THE IMPACT OF STEP-UPS AND WAITING 10 YEARS TO BEGIN WITHDRAWALS IN AN UP MARKET. Assume a single Purchase Payment of $100,000 and no Additional Purchase Payments are made.
GUARANTEED WITHDRAWAL BALANCE CONTRACT PURCHASE GUARANTEED WITHDRAWAL ON CONTRACT CONTRACT VALUE CONTRACT VALUE AFTER YEAR PAYMENTS WITHDRAWAL AMOUNT TAKEN ANNIVERSARY PRIOR TO RIDER FEE RIDER FEE ACCUMULATION BENEFIT - -------- -------- ----------------- ---------- ------------------ ------------------ --------- -------------------- At issue $100,000 $ 8,000 -- $100,000 $100,000 -- $ -- 1 0 8,000 $ 0 100,000 107,000 $500 -- 2 0 8,000 0 100,000 114,077 500 -- 3 0 8,000 0 121,628(1) 121,628 500 -- 4 0 9,730(2) 0 121,628 115,169 608 -- 5 0 9,730 0 121,628 103,105 608 -- 10 0 10,984 0 151,406(3) 146,258 686 $151,406(3) 11 0 12,112 12,112 150,066 150,066 757 --
(1) At the end of Contract Year 3, the Contract Value in this example, $121,628 is greater than the Guaranteed Withdrawal Balance ($100,000). The Guaranteed Withdrawal Balance will Step-up to equal the Contract Value of $121,628. (2) Following the Step-up of the Guaranteed Withdrawal Balance, the Guaranteed Withdrawal Amount is recalculated as the greater of (a) the Guaranteed Withdrawal Amount prior to the Step-up ($8,000) or (b) 8% of the Guaranteed Withdrawal Balance after the Step-up (.08 x $121,628 = $9,730). (3) Since there are no withdrawal in years 1 through 10, at the end of year the Contract Value will be increased to equal the greater of the First Year Purchase Payments, $100,000 or the Contract Value plus the total of the Principal Returns Rider fees to date ($146,258 + $5,148 = $151,406). The Guaranteed Withdrawal Balance will Step-up to equal the new Contract Value of $151,406. EXAMPLE 7E. THIS EXAMPLE ILLUSTRATES THE IMPACT OF ADDITIONAL PURCHASE PAYMENTS AND EXCESS WITHDRAWALS. Assume a single Purchase Payment of $100,000, an Additional Purchase Payment of $10,000 in year 2, there is an automatic Step-up of the Guaranteed Withdrawal Balance at the end of Contract Year 3 because of hypothetical investment gains, withdrawals equal to the Guaranteed Withdrawal Amount are taken in Contract Years 1, 2, 3 and 4 and a withdrawal exceeding the Guaranteed Withdrawal Amount is taken at the end of Contract Year 5 (resulting in a Reset).
GUARANTEED WITHDRAWAL HYPOTHETICAL CONTRACT VALUE ON CONTRACT PURCHASE AMOUNT AFTER WITHDRAWAL CONTRACT ANNIVERSARY PRIOR TO GUARANTEED WITHDRAWAL BALANCE YEAR PAYMENTS PURCHASE PAYMENT TAKEN RIDER FEE ON CONTRACT ANNIVERSARY - -------- -------- --------------------- ---------- ------------------------------ ----------------------------- At issue $100,000 -- -- -- $100,000 1 0 $8,000 $ 8,000 $99,000 92,000 2 10,000(1) 8,160(1) 8,000 97,347 83,840 3 0 8,160 8,000 95,542 95,542 4 0 8,160 8,000 82,283 87,382 5 0 8,160 10,000(2) 63,625 63,625
(1) In this example, there is an Additional Purchase Payment at the beginning of the second Contract Year. Prior to that Purchase Payment the Guaranteed Withdrawal Amount is $8,000. Following the Additional Purchase Payment, the Guaranteed Withdrawal Amount is calculated as the lesser of (a) 8% of the Guaranteed Withdrawal Balance immediately after the Purchase Payment (.08 x ($92,000 + $10,000) = $8,160) or (b) the Guaranteed Withdrawal Amount immediately prior to the Purchase Payment plus 8% of the Purchase Payment ($8,000+ (.08 x $10,000)) =$8,800). (2) At the end of year 5, there is a withdrawal of $10,000 which is greater than the Guaranteed Withdrawal Amount. Since this is an excess withdrawal, the Guaranteed Withdrawal Balance will be Reset to the lesser of (a) the Contract Value after the withdrawal ($63,625) or (b) the Guaranteed Withdrawal Balance prior to the withdrawal minus the amount of the withdrawal (87,382- $10,000 = $77,382). Since the Guaranteed Withdrawal Balance was Reset, the Guaranteed Withdrawal Amount will be Reset. The Guaranteed Withdrawal Amount will equal the lesser of (a) the Guaranteed Withdrawal Amount prior to the withdrawal ($8,160) or (b) 8% of the greater of the Contract Value after the withdrawal or the new Guaranteed Withdrawal Balance Value (.08 x $63,625 = $5,090). D-52 Appendix E: Optional Guaranteed Minimum Income Benefits This Appendix provides a general description of the optional guaranteed minimum income benefit Riders that may have been available at the time you purchased a Venture III Contract. If you purchased an optional guaranteed minimum income benefit Rider, you will pay the charge shown in the Fee Tables for that benefit as long as it is in effect. YOU SHOULD CAREFULLY REVIEW YOUR CONTRACT, INCLUDING ANY ATTACHED RIDERS, FOR COMPLETE INFORMATION ON BENEFITS, CONDITIONS AND LIMITATIONS OF ANY GUARANTEED MINIMUM INCOME BENEFIT RIDERS APPLICABLE TO YOUR CONTRACT. You should also carefully review the "VII. Federal Tax Matters" section of the Prospectus for information about optional benefit Riders. The following is a list of the various optional guaranteed minimum income benefits that you may have been available to you at issue. Not all Riders were available at the same time or in all states. John Hancock USA Guaranteed Retirement Income Program II Guaranteed Retirement Income Program III John Hancock New York Guaranteed Retirement Income Program I Guaranteed Retirement Income Program II The optional Guaranteed Retirement Income Programs guarantee a minimum lifetime fixed income benefit in the form of fixed monthly annuity payments. The amount of these payments is determined by applying an Income Base to the Monthly Income Factors described in the Guaranteed Retirement Income Benefit Rider. If the Guaranteed Retirement Income Benefit is exercised and the monthly annuity payments available under the Contract are greater than the monthly annuity payments provided by Guaranteed Retirement Income Benefit, we will pay the monthly annuity payments available under the Contract. The Guaranteed Retirement Income Benefit Riders were available only at Contract issue. The Riders are irrevocable and may only be terminated as described below. JOHN HANCOCK USA AVAILABILITY OF GUARANTEED RETIREMENT INCOME PROGRAM. Two versions of the Guaranteed Retirement Income Program were offered with John Hancock USA Contracts. Guaranteed Retirement Income Program II was available for Contracts issued between July 2001, and May, 2003 (beginning and end dates may vary by state). Guaranteed Retirement Income Program III was available for Contracts issued between May, 2003 and May, 2004 (beginning and end dates may vary by state). Any differences between Guaranteed Retirement Income Program II and Guaranteed Retirement Income Program III are described below. EXERCISE OF GUARANTEED RETIREMENT INCOME PROGRAM. Conditions of Exercise. The Guaranteed Retirement Income Program benefit may be exercised subject to the following conditions: - may not be exercised until the 10th Contract Anniversary and then must be exercised within 30 days immediately following the 10th Contract Anniversary or a subsequent Contract Anniversary, and - must be exercised by the Contract Anniversary immediately prior to the oldest Annuitant's 85th birthday or the 10th Contract Anniversary, if later. INCOME BASE. The Income Base applied in determining the amount of Guaranteed Retirement Income Program annuity payments is the greater of (i) the Growth Factor Income Base or (ii) the Step-up Income Base. The Income Base is reduced for any withdrawal charge remaining on the date of exercise of the Guaranteed Retirement Income Program benefit, and we reserve the right to reduce the Income Base by any premium taxes that may apply. THE INCOME BASE IS USED SOLELY FOR PURPOSES OF CALCULATING THE GUARANTEED RETIREMENT INCOME PROGRAM MONTHLY ANNUITY PAYMENTS AND DOES NOT PROVIDE A CONTRACT VALUE OR GUARANTEE PERFORMANCE OF ANY INVESTMENT OPTION. Growth Factor Income Base The Growth Factor Income Base is equal to (a) less (b), where: - is the sum of all Purchase Payments made, accumulated at the growth factor indicated below starting on the date each payment is allocated to the Contract; and - is the sum of Income Base reductions (defined below) in connection with partial withdrawals taken, accumulated at the growth factor indicated below starting on the date each deduction occurs. E-1 GUARANTEED RETIREMENT INCOME PROGRAM II GROWTH FACTOR: The growth factor for Guaranteed Retirement Income Program II is 6% per annum if the oldest Annuitant is 75 or younger at issue, and 4% per annum if the oldest Annuitant is 76 or older at issue. The growth factor is reduced to 0% once the oldest Annuitant has attained age 85. GUARANTEED RETIREMENT INCOME PROGRAM III GROWTH FACTOR: The growth factor is 5% per annum if the oldest Annuitant is 75 or younger at issue, and 3% per annum if the oldest Annuitant is 76 or older at issue. The growth factor is reduced to 0% once the oldest Annuitant has attained age 85. STEP-UP INCOME BASE: The Step-up Income Base is equal to the greatest anniversary value after the effective date of Guaranteed Retirement Income Program and prior to the oldest Annuitant's attained age 81. The anniversary value is equal to the Contract Value on the last day of the Contract Year, plus subsequent Purchase Payments, less any Income Base reductions (defined below) in connection with partial withdrawals since the last day of the Contract Year. GUARANTEED RETIREMENT INCOME PROGRAM II INCOME BASE REDUCTIONS: Partial withdrawals will reduce the Growth Factor Income Base and the Step-up Income Base on a pro rata basis, equal to (i) times (ii) where: (i) is equal to the Growth Factor Income Base or the Step-up Income Base, as appropriate, immediately prior to the partial withdrawal and (ii) is equal to the partial withdrawal amount divided by the Contract Value prior to the partial withdrawal. GUARANTEED RETIREMENT INCOME PROGRAM III INCOME BASE REDUCTIONS: If total partial withdrawals taken during a Contract Year are no greater than the Annual Withdrawal Limit then the Withdrawal Reduction reduces the Growth Factor Income Base on the next Contract Anniversary by the dollar amount of the partial withdrawal. If total partial withdrawals taken during a Contract Year are greater than the Annual Withdrawal Limit, then the Withdrawal Reduction will instead reduce the Growth Factor Income Base on a pro rata basis, equal to (i) times (ii) where: (i) is equal to the Growth Factor Income Base immediately prior to the partial withdrawal and (ii) is equal to the partial withdrawal amount divided by the Contract Value prior to the partial withdrawal. In any Contract Year, the Annual Withdrawal Limit is determined by multiplying the Growth Factor Income Base on the previous Contract Anniversary by the growth factor indicated below. Partial withdrawals will reduce the Step-up Income Base on a pro rata basis, equal to (i) times (ii) where: (i) is equal to the Step-up Income Base immediately prior to the partial withdrawal and (ii) is equal to the partial withdrawal amount divided by the Contract Value prior to the partial withdrawal. MONTHLY INCOME FACTORS. The Income Base may be applied to Monthly Income Factors to purchase a guaranteed lifetime income under the following Annuity Options which are described in this Prospectus (see "Pay-out Period Provisions - Annuity Options"). Life Annuity with a 10-Year Period Certain - Available for both Guaranteed Retirement Income Program II and Guaranteed Retirement Income Program III. Joint and Survivor Life Annuity with a 20-Year Period Certain - Available for Contracts with Guaranteed Retirement Income Program II issued prior to January 27, 2003 (availability may vary by state). Joint and Survivor Life Annuity with a 10-Year Period Certain - Available for Guaranteed Retirement Income Program III and for Contracts issued with Guaranteed Retirement Income Program II on or after January 27, 2003 (availability may vary by state). The Monthly Income Factors are described in the Guaranteed Retirement Income Program Rider. When you exercise Guaranteed Retirement Income Program, actual income will be based on the greater of (i) your Income Base at Monthly Income Factors, or (ii) your Contract Value at current annuity payment rates. (The Income Base cannot be applied to current annuitization rates.) If your Contract has been issued with a Guaranteed Retirement Income Program Rider, the Annuitant may only be changed to an individual that is the same age or younger than the oldest current Annuitant. A change of Annuitant will not affect the Income Base calculation. E-2 GUARANTEED RETIREMENT INCOME PROGRAM FEE. The risk assumed by us associated with Guaranteed Retirement Income Program is that annuity benefits payable under Guaranteed Retirement Income Program are greater than annuity benefits that would have been payable if you had selected another annuity benefit permitted by the Contract. To compensate us for this risk, we charge an annual fee (the "Guaranteed Retirement Income Program Fee"). On or before the Maturity Date, the Guaranteed Retirement Income Program Fee is deducted on each Contract Anniversary. The amount of the Guaranteed Retirement Income Program Fee is equal to the percentage from the table below multiplied by the Income Base in effect on that Contract Anniversary. The Guaranteed Retirement Income Program Fee is withdrawn from each Investment Option in the same proportion that the value of the Investment Account of each Investment Option bears to the Contract Value.
GUARANTEED RETIREMENT INCOME PROGRAM RIDER ANNUAL FEE - ------------------------------------------ ---------- GUARANTEED RETIREMENT INCOME PROGRAM II 0.45% GUARANTEED RETIREMENT INCOME PROGRAM III 0.50%
If there is a full withdrawal of Contract Value on any date other than the Contract Anniversary, we will deduct a pro-rata portion of the Guaranteed Retirement Income Program Fee from the amount paid upon withdrawal. In the case of a full withdrawal, the Guaranteed Retirement Income Program Fee will be multiplied by the Income Base immediately prior to withdrawal. The Guaranteed Retirement Income Program Fee will not be deducted during the Pay-out Period. For purposes of determining the Guaranteed Retirement Income Program Fee, the commencement of annuity payments will be treated as a full withdrawal TERMINATION OF GUARANTEED RETIREMENT INCOME PROGRAM. Guaranteed Retirement Income Program will terminate upon the earliest to occur of: - the Contract Anniversary immediately prior to the oldest Annuitant's 85th birthday or the tenth Contract Anniversary, if later; - the termination of the Contract for any reason; or - the exercise of the Guaranteed Retirement Income Program benefit. QUALIFIED PLANS. The use of Guaranteed Retirement Income Program is limited in connection with its use under Qualified Plans, including an IRA, because of the minimum distribution requirements imposed by federal tax law on these plans. In general, if Guaranteed Retirement Income Program is not exercised under a qualified plan while you are alive, your Beneficiary may be unable to exercise the benefit under Guaranteed Retirement Income Program. Hence, you should consider that since (a) Guaranteed Retirement Income Program may not be exercised until the 10th Contract Anniversary after its election and (b) the election of Guaranteed Retirement Income Program is irrevocable, there can be circumstances under a qualified plan in which a Guaranteed Retirement Income Program fee (discussed above) will be imposed, even though Guaranteed Retirement Income Program may not be exercised because of the restrictions imposed by the minimum distribution requirements. Please consult your advisor. In addition, the presence of an optional benefit, such as Guaranteed Retirement Income Program, could affect the amount of the required minimum distribution that must be made under your Contract. In order to comply with applicable federal income tax laws, in some circumstances, we will shorten the guarantee period under an Annuity Option so that it does not exceed the life expectancy of the Annuitant, or the joint life expectancy of the joint Annuitants, depending on the Annuity Option chosen. Once the guarantee period is shortened upon exercise of Guaranteed Retirement Income Program, it will not be further reduced. The guarantee period will never be increased based on the life expectancy of the Annuitant or at any other time or due to any other event. GUARANTEED RETIREMENT INCOME PROGRAMS DO NOT PROVIDE CONTRACT VALUE OR GUARANTEE PERFORMANCE OF ANY INVESTMENT OPTION. BECAUSE THIS BENEFIT IS BASED ON CONSERVATIVE ACTUARIAL FACTORS, THE LEVEL OF LIFETIME INCOME THAT THESE RIDERS GUARANTEE MAY OFTEN BE LESS THAN THE LEVEL THAT WOULD BE PROVIDED BY APPLICATION OF CONTRACT VALUE AT CURRENT ANNUITY FACTORS. THEREFORE, GUARANTEED RETIREMENT INCOME PROGRAMS SHOULD BE REGARDED AS A SAFETY NET. AS DESCRIBED ABOVE UNDER "INCOME BASE," WITHDRAWALS WILL REDUCE THE GUARANTEED RETIREMENT INCOME PROGRAM BENEFIT. JOHN HANCOCK NEW YORK AVAILABILITY OF GUARANTEED RETIREMENT INCOME PROGRAM. Two versions of the Guaranteed Retirement Income Program were offered. Guaranteed Retirement Income Program I was available for Contracts issued between September 10, 2001, and July 21, 2003. Guaranteed Retirement Income Program II was available for Contracts issued between December 2, 2002 and June 11, 2004. Any differences between Guaranteed Retirement Income Program I and Guaranteed Retirement Income Program II are described below. EXERCISE OF GUARANTEED RETIREMENT INCOME PROGRAM. Conditions of Exercise. The Guaranteed Retirement Income Program benefit may be exercised subject to the following conditions: E-3 may not be exercised until the 10th Contract Anniversary and then must be exercised within 30 days immediately following the 10th Contract Anniversary or a subsequent Contract Anniversary, and must be exercised by the Contract Anniversary immediately prior to the oldest Annuitant's 85th birthday or the 10th Contract Anniversary, if later. INCOME BASE. The Income Base applied in determining the amount of Guaranteed Retirement Income Program annuity payments is the greater of (i) the Growth Factor Income Base (Guaranteed Retirement Income Program II only) or (ii) the Step-up Income Base. The Income Base is reduced for any withdrawal charge remaining on the date of exercise of the Guaranteed Retirement Income Program benefit, and we reserve the right to reduce the Income Base by any premium taxes that may apply. THE INCOME BASE IS USED SOLELY FOR PURPOSES OF CALCULATING THE GUARANTEED RETIREMENT INCOME PROGRAM MONTHLY ANNUITY PAYMENTS AND DOES NOT PROVIDE A CONTRACT VALUE OR GUARANTEE PERFORMANCE OF ANY INVESTMENT OPTION. Growth Factor Income Base (Guaranteed Retirement Income Program II only). The Growth Factor Income Base is equal to (a) less (b), where: - is the sum of all Purchase Payments made, accumulated at the growth factor indicated below starting on the date each payment is allocated to the Contract; and - is the sum of Income Base reductions (defined below) in connection with partial withdrawals taken, accumulated at the growth factor indicated below starting on the date each deduction occurs. Growth Factor: The growth factor for Guaranteed Retirement Income Program II is 6% per annum if the oldest Annuitant is 75 or younger at issue, and 4% per annum if the oldest Annuitant is 76 or older at issue. The growth factor is reduced to 0% once the oldest Annuitant has attained age 85. Step-up Income Base: The Step-up Income Base is equal to the greatest anniversary value after the effective date of Guaranteed Retirement Income Program and prior to the oldest Annuitant's attained age 81. The anniversary value is equal to the Contract Value on the last day of the Contract Year, plus subsequent Purchase Payments, less any Income Base reductions (defined below) in connection with partial withdrawals since the last day of the Contract Year. Income Base Reductions: Partial withdrawals will reduce the Growth Factor Income Base and the Step-up Income Base on a pro rata basis, equal to (i) times (ii) where: (i) is equal to the Growth Factor Income Base or the Step-up Income Base, as appropriate, immediately prior to the partial withdrawal and (ii) is equal to the partial withdrawal amount divided by the Contract Value prior to the partial withdrawal. Partial withdrawals will reduce the Step-up Income Base on a pro rata basis, equal to (i) times (ii) where: (i) is equal to the Step-up Income Base immediately prior to the partial withdrawal and (ii) is equal to the partial withdrawal amount divided by the Contract Value prior to the partial withdrawal. Monthly Income Factors: The Income Base may be applied to Monthly Income Factors to purchase a guaranteed lifetime income under the following Annuity Options which are described in this Prospectus (see "Pay-out Period Provisions - Annuity Options"). LIFE ANNUITY WITH A 10-YEAR PERIOD CERTAIN JOINT AND SURVIVOR LIFE ANNUITY WITH A 20-YEAR PERIOD CERTAIN The Monthly Income Factors are described in the Guaranteed Retirement Income Program Rider. When you exercise Guaranteed Retirement Income Program, actual income will be based on the greater of (i) your Income Base at Monthly Income Factors, or (ii) your Contract Value at current annuity payment rates. (The Income Base cannot be applied to current annuitization rates.) If your Contract has been issued with a Guaranteed Retirement Income Program Rider, the Annuitant may only be changed to an individual that is the same age or younger than the oldest current Annuitant. A change of Annuitant will not affect the Income Base calculation. E-4 GUARANTEED RETIREMENT INCOME PROGRAM FEE. The risk assumed by us associated with Guaranteed Retirement Income Program is that annuity benefits payable under Guaranteed Retirement Income Program are greater than annuity benefits that would have been payable if you had selected another annuity benefit permitted by the Contract. To compensate us for this risk, we charge an annual fee (the "Guaranteed Retirement Income Program Fee"). On or before the Maturity Date, the Guaranteed Retirement Income Program Fee is deducted on each Contract Anniversary. The amount of the Guaranteed Retirement Income Program Fee is equal to the percentage from the table below multiplied by the Income Base in effect on that Contract Anniversary. The Guaranteed Retirement Income Program Fee is withdrawn from each Investment Option in the same proportion that the value of the Investment Account of each Investment Option bears to the Contract Value.
GUARANTEED RETIREMENT INCOME PROGRAM RIDER ANNUAL FEE - ------------------------------------------ ---------- Guaranteed Retirement Income Program I 0.30% Guaranteed Retirement Income Program II 0.45%
If there is a full withdrawal of Contract Value on any date other than the Contract Anniversary, we will deduct a pro-rata portion of the Guaranteed Retirement Income Program Fee from the amount paid upon withdrawal. In the case of a full withdrawal, the Guaranteed Retirement Income Program Fee will be multiplied by the Income Base immediately prior to withdrawal. The Guaranteed Retirement Income Program Fee will not be deducted during the Pay-out Period. For purposes of determining the Guaranteed Retirement Income Program Fee, the commencement of annuity payments will be treated as a full withdrawal TERMINATION OF GUARANTEED RETIREMENT INCOME PROGRAM. Guaranteed Retirement Income Program will terminate upon the earliest to occur of: - the Contract Anniversary immediately prior to the oldest Annuitant's 85th birthday or the tenth Contract Anniversary, if later; - the termination of the Contract for any reason; or - the exercise of the Guaranteed Retirement Income Program benefit. QUALIFIED PLANS. The use of Guaranteed Retirement Income Program is limited in connection with its use under Qualified Plans, including an IRA, because of the minimum distribution requirements imposed by federal tax law on these plans. In general, if Guaranteed Retirement Income Program is not exercised under a Qualified Plan while you are alive, your Beneficiary may be unable to exercise the benefit under Guaranteed Retirement Income Program. Hence, you should consider that since (a) Guaranteed Retirement Income Program may not be exercised until the 10th Contract Anniversary after its election and (b) the election of Guaranteed Retirement Income Program is irrevocable, there can be circumstances under a qualified plan in which a Guaranteed Retirement Income Program fee (discussed above) will be imposed, even though Guaranteed Retirement Income Program may not be exercised because of the restrictions imposed by the minimum distribution requirements. Please consult your advisor. In addition, the presence of an optional benefit, such as Guaranteed Retirement Income Program, could affect the amount of the required minimum distribution that must be made under your Contract. In order to comply with applicable federal income tax laws, in some circumstances, we will shorten the guarantee period under an Annuity Option so that it does not exceed the life expectancy of the Annuitant, or the joint life expectancy of the joint Annuitants, depending on the Annuity Option chosen. Once the guarantee period is shortened upon exercise of Guaranteed Retirement Income Program, it will not be further reduced. The guarantee period will never be increased based on the life expectancy of the Annuitant or at any other time or due to any other event. GUARANTEED RETIREMENT INCOME PROGRAMS DO NOT PROVIDE CONTRACT VALUE OR GUARANTEE PERFORMANCE OF ANY INVESTMENT OPTION. BECAUSE THIS BENEFIT IS BASED ON CONSERVATIVE ACTUARIAL FACTORS, THE LEVEL OF LIFETIME INCOME THAT THESE RIDERS GUARANTEE MAY OFTEN BE LESS THAN THE LEVEL THAT WOULD BE PROVIDED BY APPLICATION OF CONTRACT VALUE AT CURRENT ANNUITY FACTORS. THEREFORE, GUARANTEED RETIREMENT INCOME PROGRAMS SHOULD BE REGARDED AS A SAFETY NET. AS DESCRIBED ABOVE UNDER "INCOME BASE," WITHDRAWALS WILL REDUCE THE GUARANTEED RETIREMENT INCOME PROGRAM BENEFIT. E-5 APPENDIX F: Additional Availability of Guaranteed Minimum Withdrawal Benefit Riders Additional Availability of Guaranteed Minimum Withdrawal Benefit Riders This section describes the conditions under which you may elect to exchange an existing guaranteed minimum withdrawal benefit Rider to your Contract for one of the following optional guaranteed minimum withdrawal benefit Riders after you purchase a Contract: - Income Plus for Life or Income Plus for Life - Joint Life; - Principal Plus for Life or Principal Plus for Life Plus Automatic Annual Step-up; or - Principal Returns. FOR MORE INFORMATION REGARDING THE FEES AND FEATURES OF THESE RIDERS AND THE OTHER TOPICS DISCUSSED IN THIS APPENDIX, PLEASE SEE APPENDIX D: "OPTIONAL GUARANTEED MINIMUM WITHDRAWAL BENEFITS." DO I NEED TO SATISFY ANY CONDITIONS TO PURCHASE A NEW GUARANTEED MINIMUM WITHDRAWAL BENEFIT RIDER? Yes, we impose several conditions: - Exchange of existing guaranteed minimum withdrawal benefit Rider - If you elect to purchase a new guaranteed minimum withdrawal benefit Rider for use with a previously issued Contract, your Contract must have a guaranteed minimum withdrawal benefit Rider in effect. We will terminate the existing guaranteed minimum withdrawal benefit Rider when you purchase a new guaranteed minimum withdrawal benefit Rider. You may lose guaranteed lifetime income benefits, "accumulation benefits," "Bonuses," "Target Amount adjustments" and "Step-ups" under your existing guaranteed minimum withdrawal benefit Rider if you purchase a new guaranteed minimum withdrawal benefit Rider. - No withdrawal charges in excess of $500 - You may not purchase a new guaranteed minimum withdrawal benefit if the withdrawal charges under your Contract are greater than $500. You may need to wait until the withdrawal charges applicable to your Contract, if any, decline to $500 or less during the withdrawal charge period specified in your Contract. (We restart any withdrawal charge period specified in your Contract each time you make an Additional Purchase Payment.) Your purchase of a new guaranteed minimum withdrawal benefit Rider will not impact the withdrawal charges, if any, that we may impose under your Contract. You should review the annuity prospectus and the Contract you purchased to determine the amount and duration of any remaining withdrawal charges under your Contract. - Investment Option Restrictions - You must invest 100% of your Contract Value at all times after you purchase a new guaranteed minimum withdrawal benefit Rider in one or more of the Investment Options we make available for that Rider. Your existing guaranteed minimum withdrawal benefit Rider may permit you to invest in Investment Options that are not available under a new guaranteed minimum withdrawal benefit Rider. If you choose to purchase a new guaranteed minimum withdrawal benefit Rider, none of your Contract Value may remain in any previously "restricted" Investment Option. You must transfer your Contract Value out of any Investment Option that is not available under a new guaranteed minimum withdrawal benefit Rider before you can purchase the new Rider. For more information regarding the currently available Investment Options for guaranteed minimum withdrawal benefit Riders, please see Appendix D: "Optional Guaranteed Minimum Withdrawal Benefits." You should consult with your registered representative to assist you in determining which available individual Investment Option(s) or Model Allocation under a new guaranteed minimum withdrawal benefit Rider is best suited for your financial needs and risk tolerance. - Age Restrictions - Once you turn 81, you will not be eligible to purchase a new guaranteed minimum withdrawal benefit Rider. You and your spouse must both be less than age 81 to purchase a new Income Plus for Life - Joint Life Rider. - Settlement Phase Restriction - Your Contract must not be in the "Settlement Phase" under an existing guaranteed minimum withdrawal benefit Rider for you to elect to purchase a new guaranteed minimum withdrawal benefit Rider. The "Settlement Phase" occurs only when your Contract Value declines to zero and your existing guaranteed minimum withdrawal benefit Rider still has guaranteed benefits. F-1 - Different Rider - You cannot exchange your existing guaranteed minimum withdrawal benefit Rider for the same type of guaranteed minimum withdrawal benefit Rider (i.e., Income Plus for Life for Income Plus for Life; Income Plus for Life - Joint Life for Income Plus for Life - Joint Life; Principal Plus for Life for Principal Plus for Life; Principal Plus for Life Plus Automatic Annual Step-up for Principal Plus for Life Plus Automatic Annual Step-up; or Principal Returns for Principal Returns) unless we agree otherwise. - State of Issue Restriction - You may purchase a guaranteed minimum withdrawal benefit Rider only if it is then available in the state where we issued your Contract. You can find out if an optional guaranteed minimum withdrawal benefit Rider is available in the state where we issued your Contract by contacting our Annuities Service Office at 1-800-344-1029, or in New York State, 1-800-551-2078. We may consent to make a new guaranteed minimum withdrawal benefit Rider available to you in other states. - Availability of offer - We reserve the right to suspend, modify, or terminate our offer of any guaranteed minimum withdrawal benefit Rider at any time. We also reserve the right to refuse to issue any new guaranteed minimum withdrawal benefit Rider at our sole discretion. Before you purchase a new guaranteed minimum withdrawal benefit Rider: - compare the fees, benefits and restrictions of any existing guaranteed minimum withdrawal benefit Rider to your Contract with the fees, benefits and restrictions of the new Rider; and - consult with your registered representative to determine if the new Rider is appropriate for your needs and financial circumstances. WHEN CAN I ELECT TO PURCHASE A NEW GUARANTEED MINIMUM WITHDRAWAL BENEFIT RIDER? We provide a thirty day "Election Period" following each Contract Anniversary (assuming any withdrawal charges are $500 or less at that time) for you to elect a new guaranteed minimum withdrawal benefit Rider. You must submit all required paperwork in good order to our Annuities Service Center during the Election Period to elect to purchase a new guaranteed minimum withdrawal benefit Rider. We also provide a thirty-day Election Period in certain circumstances for a Beneficiary to elect to purchase a guaranteed minimum withdrawal benefit Rider following the death of an Owner in exchange for a then existing Rider. Under our current administrative procedures, you cannot exchange an existing guaranteed minimum withdrawal benefit Rider for a new Rider during the first Contract Year. We may change our administrative procedures from time to time to increase or decrease an Election Period, or to permit other election periods during a Contract Year. HOW DOES MY PURCHASE OF A NEW GUARANTEED MINIMUM WITHDRAWAL BENEFIT RIDER AFFECT RIDER FEES? We charge you the annual Rider fee under your existing guaranteed minimum withdrawal benefit Rider for coverage during the immediately preceding Contract Year. The date we assess this fee (i.e., a Contract Anniversary) may coincide with the date on which you qualify to purchase a new guaranteed minimum withdrawal benefit Rider (i.e., the start of an Election Period). If you purchase a new guaranteed minimum withdrawal benefit Rider, we will charge you the annual fee for the new Rider on the next succeeding Contract Anniversary and on each Contract Anniversary after that while the new Rider is in force (we may impose the new Rider fee earlier if you surrender your Contract). The amount of the Rider fee we impose may change, depending on the Rider you elect to purchase:
PRINCIPAL PLUS FOR FEES DEDUCTED FROM INCOME PLUS INCOME PLUS FOR PRINCIPAL PLUS LIFE PLUS AUTOMATIC PRINCIPAL CONTRACT VALUE(1) FOR LIFE LIFE - JOINT LIFE FOR LIFE ANNUAL STEP-UP RETURNS - ------------------ ----------- ----------------- -------------- ------------------- --------- Maximum Fee(2) 1.20% 1.20% 0.75% 1.20% 0.95% Current Fee 0.60% 0.60% 0.40% 0.60% 0.50%
(1) Fees are shown as a percentage of the "Adjusted Benefit Base" for Income Plus for Life and Income Plus for Life - Joint Life and as a percentage of the "Adjusted Guaranteed Withdrawal Balance" for Principal Plus for Life, Principal Plus for Life Plus Automatic Annual Step-Up and Principal Returns. (2) We reserve the right to increase the current fee shown to the maximum fee in the event of a Step-up of the "Benefit Base" (Income Plus for Life or Income Plus for Life - Joint Life) or "Guaranteed Withdrawal Balance" (Principal Plus for Life, Principal Plus for Life Plus Automatic Annual Step-Up or Principal Returns) to equal the Contract Value. F-2 WILL I BE ABLE TO WITHDRAW THE SAME AMOUNT UNDER A NEW GUARANTEED MINIMUM WITHDRAWAL BENEFIT RIDER AS I CAN UNDER MY EXISTING GUARANTEED MINIMUM WITHDRAWAL BENEFIT RIDER? Your ability to withdraw your Contract Value at any time does not change. We will decrease amounts guaranteed under each of our guaranteed minimum withdrawal benefit Riders, however, if your withdrawals exceed the annual amount permitted under that Rider. Since the amount "permitted" to be withdrawn each year differs, depending on the Rider you elect to purchase, the amount you can withdraw without reduction (i.e., a "Reset") may be more or less than the amount you can withdraw without a Reset under your existing guaranteed minimum withdrawal benefit Rider. The amount "permitted" to be withdrawn each year is, in most cases, the annual guaranteed amount under the new Rider. We calculate the initial annual guaranteed amount based on your Contract Value at the beginning of the Election Period ($5 million maximum). The initial annual guarantee amount may be more or less than the guarantee under your existing minimum guaranteed benefit Rider. The amount will vary, depending on the new Rider you elect to purchase, as shown in the following table:
INCOME INCOME PLUS PRINCIPAL PRINCIPAL PLUS FOR INITIAL ANNUAL GUARANTEE PLUS FOR FOR LIFE - PLUS FOR LIFE PLUS AUTOMATIC ON NEW RIDER LIFE JOINT LIFE LIFE ANNUAL STEP-UP PRINCIPAL RETURNS - ------------------------------- ---------- ----------- --------- ------------------- ----------------- Guaranteed Withdrawal Amount(1) Not Not 5.0% of 5.0% of 8.0% of Contract applicable applicable Contract Contract Value Value Value Lifetime Income Amount(2) 5.0% of 4.75% of 5.0% of 5.0% of Not applicable Contract Contract Contract Contract Value Value Value Value
(1) Amounts shown are for Contract Value at the beginning of the Election Period (i.e., the Contract Anniversary) in which you purchase a new Rider. The maximum Guaranteed Withdrawal Amount for Principal Plus for Life and Principal Plus for Life Plus Automatic Annual Step-Up is $250,000. The maximum Guaranteed Withdrawal Amount for Principal Returns is $400,000. (2) Amounts shown are for Contract Value at the beginning of the Election Period (i.e., the Contract Anniversary) in which you purchase a new Rider. We calculate the initial Lifetime Income Amount when you purchase the Rider only if the Covered Person (younger spouse for Income Plus for Life - Joint Life) is at least 59 1/2 (62 for Contracts issued in New York) at that time. Otherwise, we will calculate a Lifetime Income Amount on the Lifetime Income Date described in the annuity prospectus. The maximum Lifetime Income Amount for Income Plus for Life, Principal Plus for Life and Principal Plus for Life Plus Automatic Annual Step-Up is $250,000. The maximum Lifetime Income Amount for Income Plus for Life - Joint Life is $237,500. We will decrease amounts guaranteed under a guaranteed minimum withdrawal benefit Rider if you take annual withdrawals that exceed the annual amount permitted under that Rider. The annual permitted amount under a new Rider may be more or less than that permitted under your existing guaranteed minimum withdrawal benefit Rider. WHAT OTHER BENEFITS DO YOU CALCULATE WHEN I PURCHASE A NEW GUARANTEED MINIMUM WITHDRAWAL BENEFIT RIDER? If you purchase a guaranteed minimum withdrawal benefit Rider for an existing Contract, we will calculate other benefits under the new Rider measured from the start of the Election Period. These benefits differ by Rider, and may be more or less than other benefits under your existing minimum guaranteed withdrawal benefit Rider: - Bonuses. If you qualify for the Lifetime Income Bonus applicable to Income Plus for Life or Income Plus for Life - Joint Life, we will increase the Benefit Base by 7% (6% in New York) of the Contract Value at the time you purchased the Rider (i.e., the Contract Value we used to determine the initial "Benefit Base" under the new Rider) if we did not previously Step-up the Benefit Base and/or Lifetime Income Amount. Each time you qualify for the Bonus applicable to Principal Plus for Life or Principal Plus for Life Plus Automatic Annual Step-Up, we will increase the Guaranteed Withdrawal Balance by 5% of the Contract Value at the time you purchased the Rider (i.e., the Contract Value we used to determine the initial "Guaranteed Withdrawal Balance" under the new Rider) if we did not previously Step-up or Reset the Guaranteed Withdrawal Balance. We do not increase amounts guaranteed under Principal Returns by Bonuses. - Target Amount Adjustment (Income Plus for Life, Income Plus for Life - Joint Life). We establish the "Target Date" for the "Target Amount" adjustment described in the annuity prospectus as the later of the end of the first 10 Contract Years following your purchase of the new Rider or the Contract Anniversary on or next following the date the Covered Person (the younger Covered Person, in the case of Income Plus for Life - Joint Life) attains age 69. The Target Amount is 200% of the initial Benefit Base for the new Rider. We will increase the Target Amount by 200% of all Additional Purchase Payments you make in the first Contract Year following your purchase of the new Rider, and by 100% of all subsequent Additional Purchase Payments you make, subject to our Purchase Payment limits, until the applicable Target Date. In no event, however, will we set a Target Amount in excess of the maximum Benefit Base of $5 million. You must take no withdrawals under your Contract after you purchase the Rider until the applicable Target Date to receive a Target Amount adjustment to the Benefit Base. F-3 - Accumulation Benefit (Principal Returns). We will establish the "Accumulation Benefit" described in the Principal Returns Rider supplement on the 10th Contract Anniversary following your purchase of the new Rider. If you qualify for the Accumulation Benefit, your Contract Value at the end of this period will equal the greater of (a) your initial Guaranteed Withdrawal Balance under the new Rider or (b) your Contract Value plus the sum of all Principal Returns Rider fees paid to date. You must take no withdrawals under your Contract at any time for 10 Contract Years following your purchase of the new Rider to receive an Accumulation Benefit. Impact of Purchase Payments Since the initial guarantees and other benefits under a new guaranteed minimum withdrawal benefit Rider reflect your Contract Value at the time of purchase, the amount we guarantee under a new Rider may be more or less than the amount of any Purchase Payments made before you purchased the new Rider. WHAT IS THE IMPACT OF A NEW GUARANTEED MINIMUM WITHDRAWAL BENEFIT RIDER ON THE DEATH BENEFIT UNDER MY CONTRACT? Effect of withdrawals We reduce the death benefit payable under your Contract each time you make a withdrawal. If you purchase an Income Plus for Life or an Income Plus for Life - Joint Life Rider, we will reduce the death benefit on a dollar for dollar basis if you limit your annual withdrawals (including applicable withdrawal charges, if any) to the Lifetime Income Amount for that Rider. If you take annual withdrawals in excess of that amount, we will deduct the entire amount of that withdrawal on either a "pro rata" basis (i.e., we reduce the death benefit by a percentage equal to the ratio of the withdrawal amount divided by your Contract Value prior to the withdrawal) or on a dollar-for-dollar basis, based upon your Contractual death benefit. We reduce the death benefit on a pro rata basis under Contracts with a Principal Plus for Life, Principal Plus for Life Plus Automatic Annual Step-up or a Principal Returns Rider. Continuation of Contract after death benefits become payable Coverage under any of our guaranteed minimum withdrawal benefit Riders ends if the Beneficiary takes the death benefit as a lump sum. In certain circumstances, a Beneficiary may elect to continue a Contract in force after a death benefit becomes payable in lieu of taking the death benefit as a lump sum. The amount of coverage under a guaranteed minimum withdrawal benefit Rider will vary in these circumstances, depending on the Rider you elect to purchase and whether the Beneficiary under the Contract is a spouse (a "spousal Beneficiary"), or someone other than the spouse (a "non-spousal Beneficiary") of the deceased Owner (or deemed "Owner" if the Owner is a non-natural person). CIRCUMSTANCES WHEN COVERAGE ENDS. If the Beneficiary continues a Contract in force following the death of an Owner, coverage under a guaranteed minimum withdrawal benefit Rider ends: - (Income Plus for Life) if the deceased Owner is the Covered Person under the Rider. - (Income Plus for Life - Joint Life) if the deceased Owner is the last Covered Person under the Rider, or the only remaining Covered Person, under the Rider. - (Principal Plus for Life, Principal Plus for Life Plus Automatic Annual Step-up) (a) with respect to the Lifetime Income Amount, if the deceased Owner is the Covered Person; and (b) with respect to the Guaranteed Withdrawal Amount, if there is no remaining death benefit or Guaranteed Withdrawal Balance. - (Principal Returns) if the Guaranteed Withdrawal Balance is less than zero. CIRCUMSTANCES WHEN COVERAGE MAY CONTINUE. If the Beneficiary continues a Contract in force following the death of an Owner, coverage under a guaranteed minimum withdrawal benefit Rider may continue: - (Income Plus for Life) if the deceased Owner is not the Covered Person under the Rider. We will automatically increase the Benefit Base to equal the initial death benefit we determine, if the death benefit is greater than the Benefit Base prior to our determination. We will also recalculate the Lifetime Income Amount to equal 5% of the recalculated Benefit Base and will assess the Rider Fee based on the recalculated Benefit Base. If the Beneficiary is a spousal Beneficiary, the Rider continues to be eligible for any remaining Bonus amounts and Step-ups, but we will change the date we determine and apply these benefits to future anniversaries of the date we determine the initial death benefit. The Rider does not continue to be eligible for any remaining Bonus amounts and Step-Ups if the Beneficiary is a non-spousal Beneficiary. - (Income Plus for Life - Joint Life) only if: (a) the deceased Owner is the first Covered Person under the Rider to die; and either (b) the surviving Covered Person is a spousal Beneficiary or (c) the surviving Covered Person is a spouse of the deceased "Owner" and a tax qualified retirement plan is the non-spousal Beneficiary. If the death benefit is greater than the Contract Value, we will increase the Contract Value to equal the amount of the death benefit (but will not increase the Benefit Base, Lifetime Income Amount, Bonuses or Step-ups). - (Principal Plus for Life, Principal Plus for Life Plus Automatic Annual Step-up) (a) with respect to the Lifetime Income Amount, if the deceased Owner is not the Covered Person under the Rider; and (b) with respect to the Guaranteed Withdrawal Amount, if the Guaranteed Withdrawal Amount, the death benefit or the Guaranteed Withdrawal Balance is greater than zero. We will Step-up the Guaranteed Withdrawal Balance to equal the death benefit on the date of its determination, if it's greater than the Guaranteed Withdrawal Balance. If the Beneficiary is a spousal Beneficiary, the Rider continues to be eligible for any remaining Bonuses and Step-ups, but we will change the date we determine and F-4 apply these benefits to future anniversaries of the date we determine the initial death benefit. The Rider does not continue to be eligible for any remaining Bonuses and Step-ups (other than the initial Step-up of the Guaranteed Withdrawal Balance to equal the death benefit) if the Beneficiary is a non-spousal Beneficiary. - (Principal Returns) if the Guaranteed Withdrawal Balance is greater than zero. We will Step-up the Guaranteed Withdrawal Balance to equal the death benefit on the date of its determination, if it's greater than the Guaranteed Withdrawal Balance. The Rider continues to be eligible for any remaining Bonus amounts and Step-ups, but we will change the date we determine and apply these benefits to future anniversaries of the date we determine the initial death benefit. The latest Step-up Date will be the Age 95 Contract Anniversary Date based on the earlier of: (a) the date the deceased owner would have attained age 95; or (b) the birthdate of the Beneficiary if that Beneficiary is older than the deceased Owner. If death occurs during a Rider's "Settlement Phase," however, the only benefits we provide are the remaining settlement payments that may become due under the Rider. You should carefully review and compare the impact on death benefits under your current guaranteed minimum withdrawal benefit Rider to the impact on death benefits under a different guaranteed minimum withdrawal benefit Rider. F-5 Appendix U: Accumulation Unit Value Tables The following table provides information about Variable Investment Options available under the Contracts described in this Prospectus. We present this information in columns that compare the value of various classes of Accumulation Units for each Variable Investment Option during the periods shown. We use Accumulation Units to measure the value of your investment in a particular Variable Investment Option. Each Accumulation Unit reflects the value of underlying shares of a particular Portfolio (including dividends and distributions made by that Portfolio), as well as the charges we deduct on a daily basis for Separate Account Annual Expenses (see the Fee Tables section of the Prospectus for additional information on these charges). The table contains information on different classes of Accumulation Units because we deduct different levels of daily charges. In particular, the table shows Accumulation Units reflecting the daily charges for: - Venture III(R) Contracts with no optional benefit Riders; - Venture III(R) Contracts with the Annual Step Death Benefit optional benefit Rider; - Venture III(R) Contracts with the Guaranteed Earnings Multiplier optional benefit Rider; - Venture III(R) Contracts with the Annual Step Death Benefit optional benefit Rider and the Guaranteed Earnings Multiplier optional benefit Rider. Please note that fees for the Guaranteed Retirement Income Program II and III, Principal Plus, Principal Plus for Life, Principal Plus for Life Plus Automatic Annual Step-up, Principal Plus for Life Plus Spousal Protection, Income Plus for Life, Income Plus for Life - Joint Life, Principal Returns and the Triple Protection Death Benefit Riders are deducted from Contract Value and, therefore, are not reflected in the accumulation unit values. U-1 Venture III Prior JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A ACCUMULATION UNIT VALUES- VENTURE III VARIABLE ANNUITY
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 ----------- ----------- ---------- ---------- ---------- --------- ---------- -------- -------- -------- 500 INDEX TRUST - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 15.213962 13.441958 13.124674 12.130947 9.652858 11.811211 -- -- -- -- Value at End of Year 15.670982 15.213962 13.441958 13.124674 12.130947 9.652858 -- -- -- -- Venture III No. of Units 906,661 1,387,629 1,824,433 2,010,939 1,481,693 448,996 -- -- -- -- NY Venture III No. of Units 148,939 185,284 246,021 282,858 184,130 85,184 -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 16.063945 14.200027 13.871766 12.827902 10.212534 12.500000 -- -- -- -- Value at End of Year 16.538172 16.063945 14.200027 13.871766 12.827902 10.212534 -- -- -- -- Venture III No. of Units 763,379 1,019,553 1,839,123 2,470,054 1,213,117 1,294,117 -- -- -- -- NY Venture III No. of Units 109,086 133,285 177,509 187,769 117,994 58,512 -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 15.952726 14.122807 13.816981 12.796469 10.202778 12.500000 -- -- -- -- Value at End of Year 16.398929 15.952726 14.122807 13.816981 12.796469 10.202778 -- -- -- -- Venture III No. of Units 724,233 885,566 1,032,338 1,066,842 744,387 30,754 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 15.915795 14.097154 13.798758 12.785998 10.199530 12.500000 -- -- -- -- Value at End of Year 16.352752 15.915795 14.097154 13.798758 12.785998 10.199530 -- -- -- -- Venture III No. of Units 68,722 87,546 183,646 286,279 300,208 195,953 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 18.458926 16.374150 16.051541 14.895820 12.500000 -- -- -- -- -- Value at End of Year 18.937096 18.458926 16.374150 16.051541 14.895820 -- -- -- -- -- Venture III No. of Units 19,423 24,909 28,340 26,872 17,696 -- -- -- -- -- 500 INDEX TRUST - SERIES I SHARES (units first credited 8-01-2001) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year 11.664226 10.288118 10.028854 9.247369 7.344179 9.637624 10.191156 -- -- -- Value at End of Year 12.034583 11.664226 10.288118 10.028854 9.247369 7.344179 9.637624 -- -- -- Venture III No. of Units 258,565 327,902 450,422 577,609 739,839 825,987 193,219 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year 14.214018 12.543347 12.233328 11.285714 8.967490 11.773758 12.500000 -- -- -- Value at End of Year 14.657956 14.214018 12.543347 12.233328 11.285714 8.967490 11.773758 -- -- -- Venture III No. of Units 326,414 447,985 522,464 756,774 907,550 930,640 6,321 -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year 14.099059 12.460509 12.170731 11.244851 8.948424 11.766387 12.500000 -- -- -- Value at End of Year 14.517497 14.099059 12.460509 12.170731 11.244851 8.948424 11.766387 -- -- -- Venture III No. of Units 16,044 20,295 22,129 39,466 28,154 30,754 6,321 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 14.060925 12.433001 12.149924 11.231260 8.942069 11.763930 12.500000 -- -- -- Value at End of Year 14.470964 14.060925 12.433001 12.149924 11.231260 8.942069 11.763930 -- -- -- Venture III No. of Units 54,783 89,326 115,214 154,538 180,277 188,859 75,325 -- -- -- ACTIVE BOND TRUST - SERIES II SHARES (units first credited 4-29-2005) Contracts with no Optional Benefits Value at Start of Year 12.860867 12.546328 12.500000 -- -- -- -- -- -- -- Value at End of Year 13.127449 12.860867 12.546328 -- -- -- -- -- -- -- Venture III No. of Units 12,232,272 13,884,505 14,310,227 -- -- -- -- -- -- -- NY Venture III No. of Units 926,701 945,205 934,643 -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 12.850150 12.542123 12.500000 -- -- -- -- -- -- -- Value at End of Year 13.109909 12.850150 12.542123 -- -- -- -- -- -- -- Venture III No. of Units 201,457 277,789 419,575 -- -- -- -- -- -- -- NY Venture III No. of Units 1,194,474 1,250,322 1,290,676 -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 12.818026 12.529493 12.500000 -- -- -- -- -- -- -- Value at End of Year 13.057430 12.818026 12.529493 -- -- -- -- -- -- -- Venture III No. of Units 7,213,145 8,286,650 8,618,280 -- -- -- -- -- -- --
U-2 Venture III Prior
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 ----------- ----------- ---------- ---------- ---------- --------- ---------- -------- -------- -------- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 12.807328 12.525294 12.500000 -- -- -- -- -- -- -- Value at End of Year 13.039983 12.807328 12.525294 -- -- -- -- -- -- -- Venture III No. of Units 54,416 67,023 74,129 -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 12.775322 12.512691 12.500000 -- -- -- -- -- -- -- Value at End of Year 12.987793 12.775322 12.512691 -- -- -- -- -- -- -- Venture III No. of Units 542,711 585,001 517,554 -- -- -- -- -- -- -- ACTIVE BOND TRUST - SERIES I SHARES (units first credited 4-29-2005) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year 12.899947 12.559248 12.500000 -- -- -- -- -- -- -- Value at End of Year 13.201140 12.899947 12.559248 -- -- -- -- -- -- -- Venture III No. of Units 148,486 177,361 207,281 -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year 12.889199 12.555037 12.500000 -- -- -- -- -- -- -- Value at End of Year 13.183519 12.889199 12.555037 -- -- -- -- -- -- -- Venture III No. of Units 99,637 124,784 167,286 -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year 12.856963 12.542393 12.500000 -- -- -- -- -- -- -- Value at End of Year 13.130723 12.856963 12.542393 -- -- -- -- -- -- -- Venture III No. of Units 1,629 2,319 4,069 -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 12.846265 12.538189 12.500000 -- -- -- -- -- -- -- Value at End of Year 13.113208 12.846265 12.538189 -- -- -- -- -- -- -- Venture III No. of Units 17,166 26,298 48,888 -- -- -- -- -- -- -- AGGRESSIVE GROWTH TRUST (MERGED INTO MID CAP STOCK TRUST EFF 5-1-2005) - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year -- -- -- 12.447664 9.474119 12.392523 -- -- -- -- Value at End of Year -- -- -- 13.370729 12.447664 9.474119 -- -- -- -- Venture III No. of Units -- -- -- 554,848 513,252 184,567 -- -- -- -- NY Venture III No. of Units -- -- -- 25,667 19,575 42,198 -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year -- -- -- 12.545357 9.553245 12.500000 -- -- -- -- Value at End of Year -- -- -- 13.468892 12.545357 9.553245 -- -- -- -- Venture III No. of Units -- -- -- 493,991 483,962 276,403 -- -- -- -- NY Venture III No. of Units -- -- -- 76,237 55,954 32,572 -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year -- -- -- 12.514608 9.544114 12.500000 -- -- -- -- Value at End of Year -- -- -- 13.415687 12.514608 9.544114 -- -- -- -- Venture III No. of Units -- -- -- 326,940 247,043 9,420 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year -- -- -- 12.504379 9.541075 12.500000 -- -- -- -- Value at End of Year -- -- -- 13.398018 12.504379 9.541075 -- -- -- -- Venture III No. of Units -- -- -- 90,073 103,156 64,297 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year -- -- -- 15.697601 12.500000 -- -- -- -- -- Value at End of Year -- -- -- 16.794152 15.697601 -- -- -- -- -- Venture III No. of Units -- -- -- 15,466 13,943 -- -- -- -- -- AGGRESSIVE GROWTH TRUST (MERGED INTO MID CAP STOCK TRUST EFF 5-1-2005) - SERIES I SHARES (units first credited 8-01-2001) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year -- -- -- 11.831013 8.984433 12.172856 13.583483 -- -- -- Value at End of Year -- -- -- 12.714680 11.831013 8.984433 12.172856 -- -- -- Venture III No. of Units -- -- -- 264,572 305,049 289,211 95,319 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year -- -- -- 10.808261 8.211854 11.131670 12.500000 -- -- -- Value at End of Year -- -- -- 11.609717 10.808261 8.211854 11.131670 -- -- -- Venture III No. of Units -- -- -- 238,429 292,016 263,220 2,666 -- -- --
U-3 Venture III Prior
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 ----------- ----------- ---------- ---------- ---------- --------- ---------- -------- -------- -------- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year -- -- -- 10.769101 8.194374 11.124693 12.500000 -- -- -- Value at End of Year -- -- -- 11.550257 10.769101 8.194374 11.124693 -- -- -- Venture III No. of Units -- -- -- 6,455 8,912 9,420 2,666 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year -- -- -- 10.756101 8.188562 11.122368 12.500000 -- -- -- Value at End of Year -- -- -- 11.530542 10.756101 8.188562 11.122368 -- -- -- Venture III No. of Units -- -- -- 93,666 113,266 108,717 29,592 -- -- -- ALL CAP CORE TRUST (FORMERLY GROWTH TRUST) - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 16.707757 14.828250 13.843354 12.127142 9.392813 11.157487 -- -- -- -- Value at End of Year 16.829578 16.707757 14.828250 13.843354 12.127142 9.392813 -- -- -- -- Venture III No. of Units 72,914 88,982 145,995 161,214 179,382 102,575 -- -- -- -- NY Venture III No. of Units 4,134 4,670 6,072 3,870 2,836 3,755 -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 18.674810 16.582292 15.488613 13.575224 10.519639 12.500000 -- -- -- -- Value at End of Year 18.801518 18.674810 16.582292 15.488613 13.575224 10.519639 -- -- -- -- Venture III No. of Units 53,022 76,288 98,547 186,545 201,009 98,190 -- -- -- -- NY Venture III No. of Units 9,020 28,512 32,954 18,302 17,524 1,371 -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 18.545487 16.492106 15.427425 13.541947 10.509596 12.500000 -- -- -- -- Value at End of Year 18.643177 18.545487 16.492106 15.427425 13.541947 10.509596 -- -- -- -- Venture III No. of Units 21,189 32,565 28,697 66,175 29,866 644 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 18.502594 16.462177 15.407111 13.530881 10.506249 12.500000 -- -- -- -- Value at End of Year 18.590709 18.502594 16.462177 15.407111 13.530881 10.506249 -- -- -- -- Venture III No. of Units 8,151 8,392 14,319 15,102 21,357 8,464 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 20.724938 18.467038 17.309342 15.224346 12.500000 -- -- -- -- -- Value at End of Year 20.792248 20.724938 18.467038 17.309342 15.224346 -- -- -- -- -- Venture III No. of Units 4,766 6,517 6,049 5,404 1,042 -- -- -- -- -- ALL CAP CORE TRUST (FORMERLY GROWTH TRUST) - SERIES I SHARES (units first credited 8-01-2001) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year 20.292736 17.978039 16.754980 14.643345 11.316875 15.388542 16.428700 -- -- -- Value at End of Year 20.490638 20.292736 17.978039 16.754980 14.643345 11.316875 15.388542 -- -- -- Venture III No. of Units 22,496 33,421 40,652 54,411 67,904 75,128 11,150 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year 15.398985 13.649297 12.727064 11.128627 8.604872 11.706670 12.500000 -- -- -- Value at End of Year 15.541347 15.398985 13.649297 12.727064 11.128627 8.604872 11.706670 -- -- -- Venture III No. of Units 36,863 59,893 68,812 96,801 97,966 113,181 214 -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year 15.274409 13.559130 12.661903 11.088322 8.586561 11.699336 12.500000 -- -- -- Value at End of Year 15.392380 15.274409 13.559130 12.661903 11.088322 8.586561 11.699336 -- -- -- Venture III No. of Units -- -- -- -- 2,545 644 214 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 15.233118 13.529219 12.640273 11.074927 8.580476 11.696894 12.500000 -- -- -- Value at End of Year 15.343056 15.233118 13.529219 12.640273 11.074927 8.580476 11.696894 -- -- -- Venture III No. of Units 5,603 8,014 55,974 51,222 47,477 24,767 3,148 -- -- -- ALL CAP GROWTH TRUST - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 14.035185 13.420220 12.542810 11.992594 9.451441 11.789116 -- -- -- -- Value at End of Year 15.437035 14.035185 13.420220 12.542810 11.992594 9.451441 -- -- -- -- Venture III No. of Units 323,710 366,344 434,770 462,122 370,909 124,053 -- -- -- -- NY Venture III No. of Units 33,727 36,804 34,207 36,166 21,602 15,156 -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 14.847062 14.203607 13.281593 12.705341 10.018167 12.500000 -- -- -- -- Value at End of Year 16.321808 14.847062 14.203607 13.281593 12.705341 10.018167 -- -- -- -- Venture III No. of Units 151,984 193,883 297,339 438,693 451,315 228,302 -- -- -- -- NY Venture III No. of Units 31,034 63,471 127,457 161,605 133,554 28,524 -- -- -- --
U-4 Venture III Prior
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 ----------- ----------- ---------- ---------- ---------- --------- ---------- -------- -------- -------- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 14.744235 14.126362 13.229135 12.674210 10.008595 12.500000 -- -- -- -- Value at End of Year 16.184334 14.744235 14.126362 13.229135 12.674210 10.008595 -- -- -- -- Venture III No. of Units 87,576 131,885 169,488 219,198 128,736 6,015 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 14.710134 14.100708 13.211695 12.663850 10.005411 12.500000 -- -- -- -- Value at End of Year 16.138796 14.710134 14.100708 13.211695 12.663850 10.005411 -- -- -- -- Venture III No. of Units 16,561 24,967 34,839 78,076 106,067 90,488 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 17.308942 16.616706 15.592353 14.968279 12.500000 -- -- -- -- -- Value at End of Year 18.961368 17.308942 16.616706 15.592353 14.968279 -- -- -- -- -- Venture III No. of Units 13,932 14,486 14,715 13,776 10,409 -- -- -- -- -- ALL CAP GROWTH TRUST - SERIES I SHARES (units first credited 8-01-2001) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year 19.666681 18.759577 17.497591 16.700075 13.136686 17.667879 18.852247 -- -- -- Value at End of Year 21.674974 19.666681 18.759577 17.497591 16.700075 13.136686 17.667879 -- -- -- Venture III No. of Units 55,334 72,572 89,514 113,838 130,133 151,490 35,124 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year 12.939115 12.348462 11.523502 11.003800 8.660177 11.653136 12.500000 -- -- -- Value at End of Year 14.253239 12.939115 12.348462 11.523502 11.003800 8.660177 11.653136 -- -- -- Venture III No. of Units 90,346 113,486 145,664 241,172 238,783 251,749 8,374 -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year 12.834440 12.266906 11.464522 10.963947 8.641749 11.645841 12.500000 -- -- -- Value at End of Year 14.116632 12.834440 12.266906 11.464522 10.963947 8.641749 11.645841 -- -- -- Venture III No. of Units 1,894 1,915 9,014 10,212 19,114 19,502 8,374 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 12.799701 12.239813 11.444916 10.950696 8.635618 11.643403 12.500000 -- -- -- Value at End of Year 14.071352 12.799701 12.239813 11.444916 10.950696 8.635618 11.643403 -- -- -- Venture III No. of Units 22,793 31,673 52,140 64,513 97,820 93,012 27,423 -- -- -- ALL CAP VALUE TRUST - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 15.894955 14.233062 13.725754 12.051359 8.867339 11.474899 -- -- -- -- Value at End of Year 16.890577 15.894955 14.233062 13.725754 12.051359 8.867339 -- -- -- -- Venture III No. of Units 538,429 813,538 942,064 1,166,096 562,813 81,179 -- -- -- -- NY Venture III No. of Units 69,915 85,380 73,911 54,276 24,782 9,080 -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 17.274861 15.476422 14.932238 13.117229 9.656423 12.500000 -- -- -- -- Value at End of Year 18.347695 17.274861 15.476422 14.932238 13.117229 9.656423 -- -- -- -- Venture III No. of Units 162,389 244,765 381,046 491,188 444,272 194,899 -- -- -- -- NY Venture III No. of Units 80,712 127,680 191,896 207,579 135,616 33,747 -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 17.155276 15.392275 14.873269 13.085078 9.647188 12.500000 -- -- -- -- Value at End of Year 18.193228 17.155276 15.392275 14.873269 13.085078 9.647188 -- -- -- -- Venture III No. of Units 427,136 627,264 679,789 652,985 364,983 7,884 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 17.115581 15.364323 14.853661 13.074386 9.644122 12.500000 -- -- -- -- Value at End of Year 18.141994 17.115581 15.364323 14.853661 13.074386 9.644122 -- -- -- -- Venture III No. of Units 22,477 32,208 58,565 47,276 55,028 26,380 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 19.818025 17.816883 17.250503 15.206955 12.500000 -- -- -- -- -- Value at End of Year 20.974854 19.818025 17.816883 17.250503 15.206955 -- -- -- -- -- Venture III No. of Units 43,257 61,793 73,169 55,207 26,576 -- -- -- -- -- ALL CAP VALUE TRUST - SERIES I SHARES (units first credited 8-01-2001) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year 15.985844 14.291347 13.743516 12.049941 8.853798 12.473142 12.358472 -- -- -- Value at End of Year 17.032259 15.985844 14.291347 13.743516 12.049941 8.853798 12.473142 -- -- -- Venture III No. of Units 102,778 133,764 145,087 203,269 301,527 276,456 139,769 -- -- --
U-5 Venture III Prior
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 ----------- ----------- ---------- ---------- ---------- --------- ---------- -------- -------- -------- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year 16.048366 14.354393 13.811028 12.115197 8.906189 12.553231 12.500000 -- -- -- Value at End of Year 17.090266 16.048366 14.354393 13.811028 12.115197 8.906189 12.553231 -- -- -- Venture III No. of Units 59,248 80,515 124,010 188,315 168,168 164,435 1,015 -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year 15.918570 14.259603 13.740355 12.071343 8.887248 12.545380 12.500000 -- -- -- Value at End of Year 16.926501 15.918570 14.259603 13.740355 12.071343 8.887248 12.545380 -- -- -- Venture III No. of Units 2,312 3,429 3,494 5,386 6,173 7,884 1,015 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 15.875508 14.228126 13.716867 12.056747 8.880934 12.542764 12.500000 -- -- -- Value at End of Year 16.872236 15.875508 14.228126 13.716867 12.056747 8.880934 12.542764 -- -- -- Venture III No. of Units 37,166 43,047 47,104 66,655 67,745 53,533 12,061 -- -- -- AMERICAN ASSET ALLOCATION TRUST - SERIES II SHARES (units first credited 5-01-2007) Contracts with no Optional Benefits Value at Start of Year 12.500000 -- -- -- -- -- -- -- -- -- Value at End of Year 12.501023 -- -- -- -- -- -- -- -- -- Venture III No. of Units 12,566,264 -- -- -- -- -- -- -- -- -- NY Venture III No. of Units 819,202 -- -- -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 12.500000 -- -- -- -- -- -- -- -- -- Value at End of Year 12.496843 -- -- -- -- -- -- -- -- -- Venture III No. of Units 312,172 -- -- -- -- -- -- -- -- -- NY Venture III No. of Units 125,274 -- -- -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 12.500000 -- -- -- -- -- -- -- -- -- Value at End of Year 12.484325 -- -- -- -- -- -- -- -- -- Venture III No. of Units 7,583,009 -- -- -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 12.500000 -- -- -- -- -- -- -- -- -- Value at End of Year 12.480147 -- -- -- -- -- -- -- -- -- Venture III No. of Units 123,820 -- -- -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 12.500000 -- -- -- -- -- -- -- -- -- Value at End of Year 12.467633 -- -- -- -- -- -- -- -- -- Venture III No. of Units 34,518 -- -- -- -- -- -- -- -- -- AMERICAN BLUE-CHIP INCOME AND GROWTH TRUST - SERIES II SHARES (units first credited 5-05-2003) Contracts with no Optional Benefits Value at Start of Year 19.763469 17.202436 16.395088 15.273687 12.500000 -- -- -- -- -- Value at End of Year 19.726092 19.763469 17.202436 16.395088 15.273687 -- -- -- -- -- Venture III No. of Units 1,255,606 1,728,301 1,959,140 1,985,698 948,047 -- -- -- -- -- NY Venture III No. of Units 141,988 168,594 169,247 162,561 104,654 -- -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 19.727429 17.179614 16.381502 15.268682 12.500000 -- -- -- -- -- Value at End of Year 19.680221 19.727429 17.179614 16.381502 15.268682 -- -- -- -- -- Venture III No. of Units 156,710 253,365 308,209 388,717 288,812 -- -- -- -- -- NY Venture III No. of Units 243,417 307,120 338,484 320,556 170,467 -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 19.619624 17.111302 16.340787 15.253650 12.500000 -- -- -- -- -- Value at End of Year 19.543176 19.619624 17.111302 16.340787 15.253650 -- -- -- -- -- Venture III No. of Units 1,071,162 1,387,279 1,628,742 1,712,912 942,836 -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 19.583833 17.088608 16.327248 15.248651 12.500000 -- -- -- -- -- Value at End of Year 19.497714 19.583833 17.088608 16.327248 15.248651 -- -- -- -- -- Venture III No. of Units 20,698 39,434 76,063 87,684 63,220 -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 19.476822 17.020655 16.286664 15.233642 12.500000 -- -- -- -- -- Value at End of Year 19.361954 19.476822 17.020655 16.286664 15.233642 -- -- -- -- -- Venture III No. of Units 70,714 110,648 128,693 128,696 72,296 -- -- -- -- --
U-6 Venture III Prior
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 ----------- ----------- ---------- ---------- ---------- --------- ---------- -------- -------- -------- AMERICAN BOND TRUST - SERIES II SHARES (units first credited 8-01-2005) Contracts with no Optional Benefits Value at Start of Year 12.993980 12.405025 12.500000 -- -- -- -- -- -- -- Value at End of Year 13.132858 12.993980 12.405025 -- -- -- -- -- -- -- Venture III No. of Units 22,960,621 13,498,163 3,566,287 -- -- -- -- -- -- -- NY Venture III No. of Units 3,467,939 2,379,854 711,816 -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 12.984817 12.402457 12.500000 -- -- -- -- -- -- -- Value at End of Year 13.116997 12.984817 12.402457 -- -- -- -- -- -- -- Venture III No. of Units 164,965 93,666 74,043 -- -- -- -- -- -- -- NY Venture III No. of Units 106,455 66,443 63,355 -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 12.957378 12.394769 12.500000 -- -- -- -- -- -- -- Value at End of Year 13.069562 12.957378 12.394769 -- -- -- -- -- -- -- Venture III No. of Units 14,641,571 9,089,050 2,994,445 -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 12.948230 12.392208 12.500000 -- -- -- -- -- -- -- Value at End of Year 13.053770 12.948230 12.392208 -- -- -- -- -- -- -- Venture III No. of Units 70,053 20,449 6,797 -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 12.920853 12.384515 12.500000 -- -- -- -- -- -- -- Value at End of Year 13.006538 12.920853 12.384515 -- -- -- -- -- -- -- Venture III No. of Units 296,103 244,095 91,751 -- -- -- -- -- -- -- AMERICAN FUNDAMENTAL HOLDINGS TRUST - SERIES II SHARES (units first credited 11-12-2007) Contracts with no Optional Benefits Value at Start of Year 12.500000 -- -- -- -- -- -- -- -- -- Value at End of Year 12.560659 -- -- -- -- -- -- -- -- -- Venture III No. of Units 945,211 -- -- -- -- -- -- -- -- -- NY Venture III No. of Units 162,659 -- -- -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 12.500000 -- -- -- -- -- -- -- -- -- Value at End of Year 12.559813 -- -- -- -- -- -- -- -- -- Venture III No. of Units 11,335 -- -- -- -- -- -- -- -- -- NY Venture III No. of Units 15,692 -- -- -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 12.500000 -- -- -- -- -- -- -- -- -- Value at End of Year 12.557279 -- -- -- -- -- -- -- -- -- Venture III No. of Units 716,006 -- -- -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year -- -- -- -- -- -- -- -- -- -- Value at End of Year 12.556435 -- -- -- -- -- -- -- -- -- Venture III No. of Units 1,753 -- -- -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 12.500000 -- -- -- -- -- -- -- -- -- Value at End of Year 12.553905 -- -- -- -- -- -- -- -- -- Venture III No. of Units 659 -- -- -- -- -- -- -- -- -- AMERICAN GLOBAL DIVERSIFICATION TRUST - SERIES II SHARES (units first credited 11-12-2007) Contracts with no Optional Benefits Value at Start of Year 12.500000 -- -- -- -- -- -- -- -- -- Value at End of Year 12.556037 -- -- -- -- -- -- -- -- -- Venture III No. of Units 2,507,938 -- -- -- -- -- -- -- -- -- NY Venture III No. of Units 146,886 -- -- -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 12.500000 -- -- -- -- -- -- -- -- -- Value at End of Year 12.555190 -- -- -- -- -- -- -- -- -- Venture III No. of Units 219,740 -- -- -- -- -- -- -- -- -- NY Venture III No. of Units 7,077 -- -- -- -- -- -- -- -- --
U-7 Venture III Prior
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 ----------- ----------- ---------- ---------- ---------- --------- ---------- -------- -------- -------- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 12.500000 -- -- -- -- -- -- -- -- -- Value at End of Year 12.552660 -- -- -- -- -- -- -- -- -- Venture III No. of Units 1,669,326 -- -- -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 12.500000 -- -- -- -- -- -- -- -- -- Value at End of Year 12.551819 -- -- -- -- -- -- -- -- -- Venture III No. of Units 203,472 -- -- -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 12.500000 -- -- -- -- -- -- -- -- -- Value at End of Year 12.549288 -- -- -- -- -- -- -- -- -- Venture III No. of Units 132,028 -- -- -- -- -- -- -- -- -- AMERICAN GLOBAL GROWTH TRUST - SERIES II SHARES (units first credited 5-01-2007) Contracts with no Optional Benefits Value at Start of Year 12.500000 -- -- -- -- -- -- -- -- -- Value at End of Year 13.207762 -- -- -- -- -- -- -- -- -- Venture III No. of Units 5,515,481 -- -- -- -- -- -- -- -- -- NY Venture III No. of Units 161,723 -- -- -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 12.500000 -- -- -- -- -- -- -- -- -- Value at End of Year 13.203346 -- -- -- -- -- -- -- -- -- Venture III No. of Units 132,889 -- -- -- -- -- -- -- -- -- NY Venture III No. of Units 29,807 -- -- -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 12.500000 -- -- -- -- -- -- -- -- -- Value at End of Year 13.190115 -- -- -- -- -- -- -- -- -- Venture III No. of Units 2,678,061 -- -- -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 12.500000 -- -- -- -- -- -- -- -- -- Value at End of Year 13.185710 -- -- -- -- -- -- -- -- -- Venture III No. of Units 14,186 -- -- -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 12.500000 -- -- -- -- -- -- -- -- -- Value at End of Year 13.172497 -- -- -- -- -- -- -- -- -- Venture III No. of Units 7,459 -- -- -- -- -- -- -- -- -- AMERICAN GLOBAL SMALL CAPITALIZATION TRUST - SERIES II SHARES (units first credited 5-01-2007) Contracts with no Optional Benefits Value at Start of Year 12.500000 -- -- -- -- -- -- -- -- -- Value at End of Year 13.479711 -- -- -- -- -- -- -- -- -- Venture III No. of Units 1,857,743 -- -- -- -- -- -- -- -- -- NY Venture III No. of Units 48,866 -- -- -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 12.500000 -- -- -- -- -- -- -- -- -- Value at End of Year 13.475199 -- -- -- -- -- -- -- -- -- Venture III No. of Units 92,002 -- -- -- -- -- -- -- -- -- NY Venture III No. of Units 18,580 -- -- -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 12.500000 -- -- -- -- -- -- -- -- -- Value at End of Year 13.461693 -- -- -- -- -- -- -- -- -- Venture III No. of Units 897,948 -- -- -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 12.500000 -- -- -- -- -- -- -- -- -- Value at End of Year 13.457202 -- -- -- -- -- -- -- -- -- Venture III No. of Units 12,502 -- -- -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 12.500000 -- -- -- -- -- -- -- -- -- Value at End of Year 13.443715 -- -- -- -- -- -- -- -- -- Venture III No. of Units 11,137 -- -- -- -- -- -- -- -- --
U-8 Venture III Prior
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 ----------- ----------- ---------- ---------- ---------- --------- ---------- -------- -------- -------- AMERICAN GROWTH TRUST - SERIES II SHARES (units first credited 5-05-2003) Contracts with no Optional Benefits Value at Start of Year 20.578065 19.079472 16.780106 15.244028 12.500000 -- -- -- -- -- Value at End of Year 22.614095 20.578065 19.079472 16.780106 15.244028 -- -- -- -- -- Venture III No. of Units 18,225,185 17,328,740 13,041,370 8,375,265 2,475,448 -- -- -- -- -- NY Venture III No. of Units 2,362,167 2,062,722 1,184,869 341,820 131,990 -- -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 20.540520 19.054167 16.766196 15.239027 12.500000 -- -- -- -- -- Value at End of Year 22.561487 20.540520 19.054167 16.766196 15.239027 -- -- -- -- -- Venture III No. of Units 956,901 1,281,449 1,559,117 1,351,116 858,573 -- -- -- -- -- NY Venture III No. of Units 1,039,537 1,219,788 1,281,340 825,367 245,799 -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 20.428297 18.978428 16.724537 15.224034 12.500000 -- -- -- -- -- Value at End of Year 22.404411 20.428297 18.978428 16.724537 15.224034 -- -- -- -- -- Venture III No. of Units 12,488,242 12,553,858 10,175,695 6,880,421 2,612,352 -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 20.391006 18.953223 16.710649 15.219032 12.500000 -- -- -- -- -- Value at End of Year 22.352264 20.391006 18.953223 16.710649 15.219032 -- -- -- -- -- Venture III No. of Units 218,296 178,045 236,527 252,328 173,612 -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 20.279568 18.877881 16.669113 15.204047 12.500000 -- -- -- -- -- Value at End of Year 22.196606 20.279568 18.877881 16.669113 15.204047 -- -- -- -- -- Venture III No. of Units 558,467 602,832 553,681 419,925 180,221 -- -- -- -- -- AMERICAN GROWTH-INCOME TRUST - SERIES II SHARES (units first credited 5-05-2003) Contracts with no Optional Benefits Value at Start of Year 19.379238 17.188296 16.596120 15.362725 12.500000 -- -- -- -- -- Value at End of Year 19.913628 19.379238 17.188296 16.596120 15.362725 -- -- -- -- -- Venture III No. of Units 18,883,053 16,580,920 12,287,959 6,992,566 1,544,985 -- -- -- -- -- NY Venture III No. of Units 2,600,384 2,126,401 1,227,423 282,665 76,292 -- -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 19.343844 17.165461 16.582346 15.357677 12.500000 -- -- -- -- -- Value at End of Year 19.867263 19.343844 17.165461 16.582346 15.357677 -- -- -- -- -- Venture III No. of Units 351,538 566,331 723,902 730,270 446,416 -- -- -- -- -- NY Venture III No. of Units 928,041 1,044,345 1,141,109 639,202 165,437 -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 19.238151 17.097220 16.541142 15.342564 12.500000 -- -- -- -- -- Value at End of Year 19.728931 19.238151 17.097220 16.541142 15.342564 -- -- -- -- -- Venture III No. of Units 12,417,178 11,346,670 9,004,004 5,153,685 1,644,885 -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 19.203067 17.074541 16.527434 15.337532 12.500000 -- -- -- -- -- Value at End of Year 19.683069 19.203067 17.074541 16.527434 15.337532 -- -- -- -- -- Venture III No. of Units 79,158 93,594 99,134 193,184 107,141 -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 19.098116 17.006642 16.486348 15.322435 12.500000 -- -- -- -- -- Value at End of Year 19.545976 19.098116 17.006642 16.486348 15.322435 -- -- -- -- -- Venture III No. of Units 606,310 652,957 607,590 462,271 208,488 -- -- -- -- -- AMERICAN HIGH-INCOME BOND TRUST - SERIES II SHARES (units first credited 5-01-2007) Contracts with no Optional Benefits Value at Start of Year 12.500000 -- -- -- -- -- -- -- -- -- Value at End of Year 11.951061 -- -- -- -- -- -- -- -- -- Venture III No. of Units 1,215,193 -- -- -- -- -- -- -- -- -- NY Venture III No. of Units 34,935 -- -- -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 12.500000 -- -- -- -- -- -- -- -- -- Value at End of Year 11.947056 -- -- -- -- -- -- -- -- -- Venture III No. of Units 6,406 -- -- -- -- -- -- -- -- -- NY Venture III No. of Units 3,704 -- -- -- -- -- -- -- -- --
U-9 Venture III Prior
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 ----------- ----------- ---------- ---------- ---------- --------- ---------- -------- -------- -------- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 12.500000 -- -- -- -- -- -- -- -- -- Value at End of Year 11.935083 -- -- -- -- -- -- -- -- -- Venture III No. of Units 581,979 -- -- -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 12.500000 -- -- -- -- -- -- -- -- -- Value at End of Year 11.931100 -- -- -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 12.500000 -- -- -- -- -- -- -- -- -- Value at End of Year 11.919135 -- -- -- -- -- -- -- -- -- Venture III No. of Units 467 -- -- -- -- -- -- -- -- -- AMERICAN INTERNATIONAL TRUST - SERIES II SHARES (units first credited 5-05-2003) Contracts with no Optional Benefits Value at Start of Year 26.637067 22.885476 19.248449 16.480578 12.500000 -- -- -- -- -- Value at End of Year 31.284032 26.637067 22.885476 19.248449 16.480578 -- -- -- -- -- Venture III No. of Units 9,317,458 9,205,373 6,653,279 3,491,453 586,657 -- -- -- -- -- NY Venture III No. of Units 1,016,847 896,929 479,884 102,347 15,027 -- -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 26.588492 22.855124 19.232496 16.475177 12.500000 -- -- -- -- -- Value at End of Year 31.211299 26.588492 22.855124 19.232496 16.475177 -- -- -- -- -- Venture III No. of Units 556,481 595,306 682,654 521,883 275,436 -- -- -- -- -- NY Venture III No. of Units 403,664 509,853 585,234 301,739 70,097 -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 26.443262 22.764307 19.184723 16.458965 12.500000 -- -- -- -- -- Value at End of Year 30.994061 26.443262 22.764307 19.184723 16.458965 -- -- -- -- -- Venture III No. of Units 6,181,552 6,189,533 4,498,519 2,393,198 525,458 -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 26.394992 22.734087 19.168809 16.453567 12.500000 -- -- -- -- -- Value at End of Year 30.921939 26.394992 22.734087 19.168809 16.453567 -- -- -- -- -- Venture III No. of Units 75,994 158,306 126,331 110,296 19,661 -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 26.250808 22.643737 19.121188 16.437377 12.500000 -- -- -- -- -- Value at End of Year 30.706696 26.250808 22.643737 19.121188 16.437377 -- -- -- -- -- Venture III No. of Units 252,578 313,031 295,957 180,409 50,920 -- -- -- -- -- AMERICAN NEW WORLD TRUST - SERIES II SHARES (units first credited 5-01-2007) Contracts with no Optional Benefits Value at Start of Year 12.500000 -- -- -- -- -- -- -- -- -- Value at End of Year 14.902325 -- -- -- -- -- -- -- -- -- Venture III No. of Units 1,281,731 -- -- -- -- -- -- -- -- -- NY Venture III No. of Units 24,343 -- -- -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 12.500000 -- -- -- -- -- -- -- -- -- Value at End of Year 14.897351 -- -- -- -- -- -- -- -- -- Venture III No. of Units 150,067 -- -- -- -- -- -- -- -- -- NY Venture III No. of Units 32,490 -- -- -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 12.500000 -- -- -- -- -- -- -- -- -- Value at End of Year 14.882435 -- -- -- -- -- -- -- -- -- Venture III No. of Units 553,484 -- -- -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 12.500000 -- -- -- -- -- -- -- -- -- Value at End of Year 14.877464 -- -- -- -- -- -- -- -- -- Venture III No. of Units 17,931 -- -- -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 12.500000 -- -- -- -- -- -- -- -- -- Value at End of Year 14.862553 -- -- -- -- -- -- -- -- -- Venture III No. of Units 8,952 -- -- -- -- -- -- -- -- --
U-10 Venture III Prior
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 ----------- ----------- ---------- ---------- ---------- --------- ---------- -------- -------- -------- BLACKROCK BASIC VALUE V.I. FUND (FORMERLY, MERCURY BASIC VALUE V.I. FUND) - CLASS II SHARES (units first credited 7-20-1998) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year 17.007332 14.210588 14.055326 12.881154 9.842178 12.186911 12.500000 -- -- -- Value at End of Year 17.001762 17.007332 14.210588 14.055326 12.881154 9.842178 12.186911 -- -- -- Venture III No. of Units 1,255 1,238 1,328 5,719 7,270 7,361 1,275 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year 17.258814 14.427907 14.277389 13.091226 10.007673 10.610880 12.500000 -- -- -- Value at End of Year 17.244490 17.258814 14.427907 14.277389 13.091226 10.007673 10.610880 -- -- -- Venture III No. of Units 337 11,978 12,255 15,165 15,240 14,836 -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year 17.119195 14.332590 14.204301 13.043818 9.986389 10.610880 12.500000 -- -- -- Value at End of Year 17.079200 17.119195 14.332590 14.204301 13.043818 9.986389 10.610880 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 17.072916 14.300977 14.180035 13.028057 9.979306 12.387691 12.500000 -- -- -- Value at End of Year 17.024464 17.072916 14.300977 14.180035 13.028057 9.979306 12.387691 -- -- -- BLACKROCK GLOBAL ALLOCATION V.I. FUND (FORMERLY, MERCURY GLOBAL ALLOCATION V.I. FUND) - CLASS II SHARES (units first credited 11-21-2003) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year 20.807207 18.178953 16.746399 14.908200 13.812889 -- -- -- -- -- Value at End of Year 23.907684 20.807207 18.178953 16.746399 14.908200 -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year 23.902960 20.894086 19.257165 17.151964 15.892669 -- -- -- -- -- Value at End of Year 27.450936 23.902960 20.894086 19.257165 17.151964 -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year 23.709631 20.756111 19.158629 17.089868 15.837724 -- -- -- -- -- Value at End of Year 27.187886 23.709631 20.756111 19.158629 17.089868 -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 23.645554 20.710330 19.125904 17.069232 15.819464 -- -- -- -- -- Value at End of Year 27.100788 23.645554 20.710330 19.125904 17.069232 -- -- -- -- -- BLACKROCK VALUE OPPORTUNITIES V.I. FUND (FORMERLY, MERCURY VALUE OPPORTUNITIES V.I. FUND) - CLASS II SHARES (units first credited 7-20-1998) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year 21.041500 18.985215 17.507612 15.505126 11.051980 14.756455 12.500000 -- -- -- Value at End of Year 20.481410 21.041500 18.985215 17.507612 15.505126 11.051980 14.756455 -- -- -- Venture III No. of Units 5,832 5,867 7,024 7,926 10,803 10,911 7,527 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year 18.879272 17.042783 15.724179 13.932655 9.936083 10.299734 12.500000 -- -- -- Value at End of Year 18.367491 18.879272 17.042783 15.724179 13.932655 9.936083 10.299734 -- -- -- Venture III No. of Units 580 4,013 4,376 4,472 4,532 4,671 -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year 18.726557 16.930227 15.643710 13.882224 9.914958 10.299734 12.500000 -- -- -- Value at End of Year 18.191446 18.726557 16.930227 15.643710 13.882224 9.914958 10.299734 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 18.675949 16.892901 15.616999 13.865460 9.907923 13.262114 12.500000 -- -- -- Value at End of Year 18.133155 18.675949 16.892901 15.616999 13.865460 9.907923 13.262114 -- -- -- BLUE CHIP GROWTH TRUST - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 14.424150 13.414252 12.942556 12.090745 9.527205 11.661149 -- -- -- -- Value at End of Year 15.961624 14.424150 13.414252 12.942556 12.090745 9.527205 -- -- -- -- Venture III No. of Units 2,172,974 2,671,447 2,875,894 2,397,411 1,497,368 467,566 -- -- -- -- NY Venture III No. of Units 153,308 179,909 192,392 129,971 79,549 28,105 -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 15.426010 14.353122 13.855314 12.949904 10.209299 12.500000 -- -- -- -- Value at End of Year 17.061698 15.426010 14.353122 13.855314 12.949904 10.209299 -- -- -- -- Venture III No. of Units 652,367 851,820 1,106,527 1,287,623 1,447,638 746,218 -- -- -- -- NY Venture III No. of Units 172,849 223,115 255,418 205,768 133,615 114,270 -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 15.319182 14.275058 13.800581 12.918162 10.199546 12.500000 -- -- -- -- Value at End of Year 16.918010 15.319182 14.275058 13.800581 12.918162 10.199546 -- -- -- -- Venture III No. of Units 1,251,490 1,573,877 1,678,672 1,183,363 492,024 67,960 -- -- -- --
U-11 Venture III Prior
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 ----------- ----------- ---------- ---------- ---------- --------- ---------- -------- -------- -------- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 15.283704 14.249113 13.782369 12.907592 10.196295 12.500000 -- -- -- -- Value at End of Year 16.870353 15.283704 14.249113 13.782369 12.907592 10.196295 -- -- -- -- Venture III No. of Units 72,274 93,052 111,893 148,744 161,025 104,192 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 17.335226 16.185945 15.679183 14.706108 12.500000 -- -- -- -- -- Value at End of Year 19.106011 17.335226 16.185945 15.679183 14.706108 -- -- -- -- -- Venture III No. of Units 140,425 175,631 163,658 120,990 49,072 -- -- -- -- -- BLUE CHIP GROWTH TRUST - SERIES I SHARES (units first credited 8-01-2001) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year 24.215233 22.463880 21.626140 20.165015 15.870738 21.302974 21.898240 -- -- -- Value at End of Year 26.853044 24.215233 22.463880 21.626140 20.165015 15.870738 21.302974 -- -- -- Venture III No. of Units 151,990 185,186 224,831 273,059 405,084 400,734 169,381 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year 13.768792 12.779348 12.308902 11.483029 9.042156 12.143192 12.500000 -- -- -- Value at End of Year 15.260974 13.768792 12.779348 12.308902 11.483029 9.042156 12.143192 -- -- -- Venture III No. of Units 236,536 332,540 446,496 591,541 700,061 733,780 6,710 -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year 13.657407 12.694941 12.245907 11.441458 9.022933 12.135598 12.500000 -- -- -- Value at End of Year 15.114715 13.657407 12.694941 12.245907 11.441458 9.022933 12.135598 -- -- -- Venture III No. of Units 36,029 43,030 43,523 51,035 71,726 67,960 6,710 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 13.620501 12.666951 12.224988 11.427637 9.016527 12.133063 12.500000 -- -- -- Value at End of Year 15.066296 13.620501 12.666951 12.224988 11.427637 9.016527 12.133063 -- -- -- Venture III No. of Units 100,228 122,320 165,401 205,182 200,869 210,871 69,505 -- -- -- CAPITAL APPRECIATION TRUST - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 13.420469 13.367255 11.951649 11.124546 8.742892 11.443160 -- -- -- -- Value at End of Year 14.699512 13.420469 13.367255 11.951649 11.124546 8.742892 -- -- -- -- Venture III No. of Units 1,065,051 1,473,495 765,855 643,607 565,726 202,403 -- -- -- -- NY Venture III No. of Units 77,632 84,168 20,075 21,384 11,100 11,847 -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 14.626001 14.575285 13.038242 12.142016 9.547302 12.500000 -- -- -- -- Value at End of Year 16.011892 14.626001 14.575285 13.038242 12.142016 9.547302 -- -- -- -- Venture III No. of Units 779,261 1,073,787 614,695 714,630 788,230 397,347 -- -- -- -- NY Venture III No. of Units 144,581 198,806 42,337 45,087 36,933 26,055 -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 14.524724 14.496031 12.986742 12.112259 9.538178 12.500000 -- -- -- -- Value at End of Year 15.877051 14.524724 14.496031 12.986742 12.112259 9.538178 -- -- -- -- Venture III No. of Units 571,431 771,867 357,179 273,041 174,607 39,623 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 14.491095 14.469692 12.969608 12.102351 9.535141 12.500000 -- -- -- -- Value at End of Year 15.832329 14.491095 14.469692 12.969608 12.102351 9.535141 -- -- -- -- Venture III No. of Units 85,055 109,450 80,330 100,979 108,546 65,452 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 17.703008 17.703326 15.891750 14.851408 12.500000 -- -- -- -- -- Value at End of Year 19.312375 17.703008 17.703326 15.891750 14.851408 -- -- -- -- -- Venture III No. of Units 27,714 50,143 16,881 16,513 12,116 -- -- -- -- -- CAPITAL APPRECIATION TRUST - SERIES I SHARES (units first credited 8-01-2001) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year 9.255675 9.201080 8.205412 7.630471 5.991604 8.779269 9.195935 -- -- -- Value at End of Year 10.160213 9.255675 9.201080 8.205412 7.630471 5.991604 8.779269 -- -- -- Venture III No. of Units 360,827 520,227 254,549 358,348 387,166 366,979 80,024 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year 12.480727 12.413295 11.075538 10.304647 8.095466 11.867934 12.500000 -- -- -- Value at End of Year 13.693566 12.480727 12.413295 11.075538 10.304647 8.095466 11.867934 -- -- -- Venture III No. of Units 283,863 407,101 240,673 289,125 339,054 367,924 4,837 -- -- --
U-12 Venture III Prior
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 ----------- ----------- ---------- ---------- ---------- --------- ---------- -------- -------- -------- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year 12.379750 12.331295 11.018836 10.267322 8.078245 11.860509 12.500000 -- -- -- Value at End of Year 13.562314 12.379750 12.331295 11.018836 10.267322 8.078245 11.860509 -- -- -- Venture III No. of Units 23,094 23,849 11,535 13,330 18,973 39,623 4,837 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 12.346277 12.304093 11.000004 10.254916 8.072512 11.858037 12.500000 -- -- -- Value at End of Year 13.518837 12.346277 12.304093 11.000004 10.254916 8.072512 11.858037 -- -- -- Venture III No. of Units 182,164 221,171 67,060 94,529 109,634 103,157 20,129 -- -- -- CLASSIC VALUE TRUST - SERIES II SHARES (units first credited 5-03-2004) Contracts with no Optional Benefits Value at Start of Year 16.827712 14.768328 13.745437 12.500000 -- -- -- -- -- -- Value at End of Year 14.431459 16.827712 14.768328 13.745437 -- -- -- -- -- -- Venture III No. of Units 263,018 321,955 178,689 121,626 -- -- -- -- -- -- NY Venture III No. of Units 39,281 35,669 19,768 17,716 -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 16.805360 14.756073 13.740877 12.500000 -- -- -- -- -- -- Value at End of Year 14.405039 16.805360 14.756073 13.740877 -- -- -- -- -- -- Venture III No. of Units 74,381 136,097 40,825 11,187 -- -- -- -- -- -- NY Venture III No. of Units 15,539 20,624 25,715 18,657 -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 16.738528 14.719380 13.727218 12.500000 -- -- -- -- -- -- Value at End of Year 14.326126 16.738528 14.719380 13.727218 -- -- -- -- -- -- Venture III No. of Units 148,221 230,487 127,848 67,852 -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 16.716312 14.707182 13.722679 12.500000 -- -- -- -- -- -- Value at End of Year 14.299909 16.716312 14.707182 13.722679 -- -- -- -- -- -- Venture III No. of Units 6,599 11,406 6,688 2,559 -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 16.649828 14.670608 13.709034 12.500000 -- -- -- -- -- -- Value at End of Year 14.221562 16.649828 14.670608 13.709034 -- -- -- -- -- -- Venture III No. of Units 5,872 5,509 5,933 4,832 -- -- -- -- -- -- CORE BOND TRUST - SERIES II SHARES (units first credited 5-01-2005) Contracts with no Optional Benefits Value at Start of Year 12.702542 12.462826 12.500000 -- -- -- -- -- -- -- Value at End of Year 13.250862 12.702542 12.462826 -- -- -- -- -- -- -- Venture III No. of Units 34,960 7,442 391 -- -- -- -- -- -- -- NY Venture III No. of Units 126 479 121 -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 12.692009 12.458696 12.500000 -- -- -- -- -- -- -- Value at End of Year 13.233226 12.692009 12.458696 -- -- -- -- -- -- -- Venture III No. of Units 4,323 1,739 414 -- -- -- -- -- -- -- NY Venture III No. of Units 256 -- -- -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 12.660450 12.446319 12.500000 -- -- -- -- -- -- -- Value at End of Year 13.180435 12.660450 12.446319 -- -- -- -- -- -- -- Venture III No. of Units 8,468 6,436 3,739 -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 12.649929 12.442189 12.500000 -- -- -- -- -- -- -- Value at End of Year 13.162864 12.649929 12.442189 -- -- -- -- -- -- -- Venture III No. of Units 82 81 -- -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 12.618466 12.429816 12.500000 -- -- -- -- -- -- -- Value at End of Year 13.110349 12.618466 12.429816 -- -- -- -- -- -- -- CORE EQUITY TRUST - SERIES II SHARES (units first credited 5-03-2004) Contracts with no Optional Benefits Value at Start of Year 15.316601 14.624002 14.055449 12.500000 -- -- -- -- -- -- Value at End of Year 14.151893 15.316601 14.624002 14.055449 -- -- -- -- -- -- Venture III No. of Units 848,728 265,806 984,498 517,680 -- -- -- -- -- -- NY Venture III No. of Units 65,439 67,270 60,439 14,371 -- -- -- -- -- --
U-13 Venture III Prior
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 ----------- ----------- ---------- ---------- ---------- --------- ---------- -------- -------- -------- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 15.296266 14.611870 14.050793 12.500000 -- -- -- -- -- -- Value at End of Year 14.125997 15.296266 14.611870 14.050793 -- -- -- -- -- -- Venture III No. of Units 31,830 44,377 94,766 76,892 -- -- -- -- -- -- NY Venture III No. of Units 53,098 76,667 59,349 21,952 -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 15.235423 14.575546 14.036828 12.500000 -- -- -- -- -- -- Value at End of Year 14.048589 15.235423 14.575546 14.036828 -- -- -- -- -- -- Venture III No. of Units 430,852 482,630 640,016 334,984 -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 15.215194 14.563458 14.032175 12.500000 -- -- -- -- -- -- Value at End of Year 14.022884 15.215194 14.563458 14.032175 -- -- -- -- -- -- Venture III No. of Units 1,985 2,298 7,103 20,008 -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 15.154677 14.527250 14.018233 12.500000 -- -- -- -- -- -- Value at End of Year 13.946046 15.154677 14.527250 14.018233 -- -- -- -- -- -- Venture III No. of Units 36,549 35,430 38,636 21,509 -- -- -- -- -- -- DIVERSIFIED BOND TRUST (MERGED INTO ACTIVE BOND TRUST EFF 5-1-05) - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year -- -- -- 13.565799 13.186201 12.504601 -- -- -- -- Value at End of Year -- -- -- 13.830617 13.565799 13.186201 -- -- -- -- Venture III No. of Units -- -- -- 7,401,186 695,637 252,850 -- -- -- -- NY Venture III No. of Units -- -- -- 254,299 48,803 23,178 -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year -- -- -- 13.549724 13.177160 12.500000 -- -- -- -- Value at End of Year -- -- -- 13.807295 13.549724 13.177160 -- -- -- -- Venture III No. of Units -- -- -- 476,849 501,679 253,046 -- -- -- -- NY Venture III No. of Units -- -- -- 417,666 56,838 67,059 -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year -- -- -- 13.516543 13.164614 12.500000 -- -- -- -- Value at End of Year -- -- -- 13.752779 13.516543 13.164614 -- -- -- -- Venture III No. of Units -- -- -- 4,302,819 206,340 16,141 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year -- -- -- 13.505491 13.160436 12.500000 -- -- -- -- Value at End of Year -- -- -- 13.734656 13.505491 13.160436 -- -- -- -- Venture III No. of Units -- -- -- 85,622 106,307 70,827 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year -- -- -- 12.529076 12.500000 -- -- -- -- -- Value at End of Year -- -- -- 12.722519 12.529076 -- -- -- -- -- Venture III No. of Units -- -- -- 311,393 33,885 -- -- -- -- -- DIVERSIFIED BOND TRUST (MERGED INTO ACTIVE BOND TRUST EFF 5-1-05) - SERIES I SHARES (units first credited 8-03-1989) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year -- -- -- 18.084366 17.576042 16.605167 16.388809 -- -- -- Value at End of Year -- -- -- 18.472878 18.084366 17.576042 16.605167 -- -- -- Venture III No. of Units -- -- -- 176,824 206,285 225,423 40,386 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year -- -- -- 13.790481 13.409549 12.675169 12.500000 -- -- -- Value at End of Year -- -- -- 14.079685 13.790481 13.409549 12.675169 -- -- -- Venture III No. of Units -- -- -- 188,742 225,752 305,030 26,252 -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year -- -- -- 13.740598 13.381106 12.667251 12.500000 -- -- -- Value at End of Year -- -- -- 14.007679 13.740598 13.381106 12.667251 -- -- -- Venture III No. of Units -- -- -- 3,694 6,559 16,141 26,252 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year -- -- -- 13.724016 13.371638 12.664622 12.500000 -- -- -- Value at End of Year -- -- -- 13.983764 13.724016 13.371638 12.664622 -- -- -- Venture III No. of Units -- -- -- 84,618 86,438 78,504 34,146 -- -- --
U-14 Venture III Prior
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 ----------- ----------- ---------- ---------- ---------- --------- ---------- -------- -------- -------- DYNAMIC GROWTH TRUST - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 15.364667 14.504882 13.164527 12.164875 9.578097 11.842904 -- -- -- -- Value at End of Year 16.964468 15.364667 14.504882 13.164527 12.164875 9.578097 -- -- -- -- Venture III No. of Units 239,917 356,033 462,359 528,200 541,610 87,128 -- -- -- -- NY Venture III No. of Units 13,422 16,936 23,011 18,994 17,929 4,320 -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 16.635693 15.281869 13.876630 12.829323 10.106305 12.500000 -- -- -- -- Value at End of Year 17.855322 16.635693 15.281869 13.876630 12.829323 10.106305 -- -- -- -- Venture III No. of Units 220,015 305,451 478,947 605,108 709,524 82,533 -- -- -- -- NY Venture III No. of Units 22,354 18,373 27,519 33,123 40,444 5,544 -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 16.520499 15.198766 13.821803 12.797885 10.096656 12.500000 -- -- -- -- Value at End of Year 17.704949 16.520499 15.198766 13.821803 12.797885 10.096656 -- -- -- -- Venture III No. of Units 67,173 80,833 164,259 101,183 104,025 4,726 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 16.482262 15.171161 13.803584 12.787417 10.093444 12.500000 -- -- -- -- Value at End of Year 17.655092 16.482262 15.171161 13.803584 12.787417 10.093444 -- -- -- -- Venture III No. of Units 51,651 63,069 181,834 94,881 184,625 13,216 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 19.906212 18.350189 16.721014 15.513383 12.500000 -- -- -- -- -- Value at End of Year 21.290548 19.906212 18.350189 16.721014 15.513383 -- -- -- -- -- Venture III No. of Units 7,449 8,917 56,261 11,368 28,603 -- -- -- -- -- DYNAMIC GROWTH TRUST - SERIES I SHARES (units first credited 8-01-2001) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year 5.420845 4.963389 4.489166 4.149140 3.269019 4.639280 5.329139 -- -- -- Value at End of Year 5.825961 5.420845 4.963389 4.489166 4.149140 3.269019 4.639280 -- -- -- Venture III No. of Units 342,288 440,165 623,403 827,660 981,398 289,494 114,862 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year 12.542748 11.489988 10.397356 9.614621 7.578932 10.761173 12.500000 -- -- -- Value at End of Year 13.473348 12.542748 11.489988 10.397356 9.614621 7.578932 10.761173 -- -- -- Venture III No. of Units 156,693 215,226 280,749 441,186 518,212 140,674 3,436 -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year 12.441224 11.414064 10.344111 9.579794 7.562801 10.754429 12.500000 -- -- -- Value at End of Year 13.344146 12.441224 11.414064 10.344111 9.579794 7.562801 10.754429 -- -- -- Venture III No. of Units 4,233 7,820 8,051 9,149 15,496 4,726 3,436 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 12.407571 11.388869 10.326423 9.568210 7.557425 10.752178 12.500000 -- -- -- Value at End of Year 13.301374 12.407571 11.388869 10.326423 9.568210 7.557425 10.752178 -- -- -- Venture III No. of Units 130,999 161,032 222,815 225,775 268,434 46,340 24,817 -- -- -- EMERGING GROWTH TRUST - SERIES II SHARES (units first credited 5-05-2003) Contracts with no Optional Benefits Value at Start of Year 19.615812 17.903389 16.949671 16.158911 12.500000 -- -- -- -- -- Value at End of Year 20.013945 19.615812 17.903389 16.949671 16.158911 -- -- -- -- -- Venture III No. of Units 47,689 70,903 60,906 72,374 28,839 -- -- -- -- -- NY Venture III No. of Units 2,407 2,296 2,115 1,792 281 -- -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 19.580012 17.879631 16.935617 16.153611 12.500000 -- -- -- -- -- Value at End of Year 19.967370 19.580012 17.879631 16.935617 16.153611 -- -- -- -- -- Venture III No. of Units 9,943 13,169 11,805 11,246 7,937 -- -- -- -- -- NY Venture III No. of Units 15,924 25,712 17,623 13,145 8,439 -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 19.472992 17.808539 16.893527 16.137719 12.500000 -- -- -- -- -- Value at End of Year 19.828296 19.472992 17.808539 16.893527 16.137719 -- -- -- -- -- Venture III No. of Units 34,848 50,665 55,386 45,303 13,253 -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 19.437504 17.784948 16.879552 16.132438 12.500000 -- -- -- -- -- Value at End of Year 19.782212 19.437504 17.784948 16.879552 16.132438 -- -- -- -- -- Venture III No. of Units 1,835 2,355 12,262 6,010 5,961 -- -- -- -- --
U-15 Venture III Prior
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 ----------- ----------- ---------- ---------- ---------- --------- ---------- -------- -------- -------- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 19.331283 17.714248 16.837596 16.116569 12.500000 -- -- -- -- -- Value at End of Year 19.644434 19.331283 17.714248 16.837596 16.116569 -- -- -- -- -- Venture III No. of Units 1,308 1,896 2,029 2,310 1,165 -- -- -- -- -- EMERGING SMALL COMPANY TRUST - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 14.107436 14.035567 13.607657 12.428445 9.058585 11.864879 -- -- -- -- Value at End of Year 14.963352 14.107436 14.035567 13.607657 12.428445 9.058585 -- -- -- -- Venture III No. of Units 497,182 746,640 973,157 1,033,645 835,003 174,849 -- -- -- -- NY Venture III No. of Units 27,338 30,605 32,329 32,486 22,745 15,125 -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 14.828192 14.760010 14.317145 13.083021 9.540441 12.500000 -- -- -- -- Value at End of Year 15.719936 14.828192 14.760010 14.317145 13.083021 9.540441 -- -- -- -- Venture III No. of Units 229,315 357,208 576,528 721,122 813,809 284,420 -- -- -- -- NY Venture III No. of Units 55,562 77,144 99,979 96,469 46,979 19,621 -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 14.725513 14.679762 14.260613 13.050958 9.531326 12.500000 -- -- -- -- Value at End of Year 15.587548 14.725513 14.679762 14.260613 13.050958 9.531326 -- -- -- -- Venture III No. of Units 292,180 433,321 616,145 624,965 444,605 5,714 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 14.691441 14.653113 14.241810 13.040296 9.528294 12.500000 -- -- -- -- Value at End of Year 15.543662 14.691441 14.653113 14.241810 13.040296 9.528294 -- -- -- -- Venture III No. of Units 151,099 46,472 160,149 71,109 154,311 57,058 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 18.114319 18.094145 17.612588 16.150962 12.500000 -- -- -- -- -- Value at End of Year 19.136211 18.114319 18.094145 17.612588 16.150962 -- -- -- -- -- Venture III No. of Units 71,902 34,297 83,935 30,299 31,578 -- -- -- -- -- EMERGING SMALL COMPANY TRUST - SERIES I SHARES (units first credited 8-01-2001) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year 19.217988 19.077816 16.949671 16.831817 12.246107 17.585667 17.911806 -- -- -- Value at End of Year 20.422648 19.217988 19.077816 16.949671 16.831817 12.246107 17.585667 -- -- -- Venture III No. of Units 66,699 93,755 136,855 6,561 208,059 187,231 45,391 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year 13.210507 13.120694 16.935617 11.587592 8.434835 12.118671 12.500000 -- -- -- Value at End of Year 14.031537 13.210507 13.120694 16.935617 11.587592 8.434835 12.118671 -- -- -- Venture III No. of Units 88,896 122,288 185,432 2,628 327,397 284,440 2,557 -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year 13.103594 13.034017 16.893527 11.545630 8.416899 12.111098 12.500000 -- -- -- Value at End of Year 13.897004 13.103594 13.034017 16.893527 11.545630 8.416899 12.111098 -- -- -- Venture III No. of Units 17,665 17,708 18,488 75 27,653 28,910 2,557 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 13.068155 13.005257 16.879552 11.531676 8.410923 12.108565 12.500000 -- -- -- Value at End of Year 13.852453 13.068155 13.005257 16.879552 11.531676 8.410923 12.108565 -- -- -- Venture III No. of Units 36,229 38,613 91,110 52 127,291 110,428 25,841 -- -- -- EQUITY-INCOME TRUST - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 17.738726 15.184057 14.882379 13.202023 10.702893 12.848754 -- -- -- -- Value at End of Year 17.998360 17.738726 15.184057 14.882379 13.202023 10.702893 -- -- -- -- Venture III No. of Units 3,098,317 4,134,460 4,382,894 4,038,819 2,428,665 789,636 -- -- -- -- NY Venture III No. of Units 246,063 279,115 317,099 247,244 186,829 94,077 -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 17.217347 14.745104 14.459352 12.833195 10.409074 12.500000 -- -- -- -- Value at End of Year 17.460563 17.217347 14.745104 14.459352 12.833195 10.409074 -- -- -- -- Venture III No. of Units 1,457,607 1,888,043 2,573,331 2,845,382 3,022,629 1,472,896 -- -- -- -- NY Venture III No. of Units 322,274 401,804 464,276 354,708 170,015 208,253 -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 17.098121 14.664912 14.402241 12.801739 10.399131 12.500000 -- -- -- -- Value at End of Year 17.313521 17.098121 14.664912 14.402241 12.801739 10.399131 -- -- -- -- Venture III No. of Units 1,666,223 2,172,178 2,534,354 2,129,976 922,828 72,429 -- -- -- --
U-16 Venture III Prior
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 ----------- ----------- ---------- ---------- ---------- --------- ---------- -------- -------- -------- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 17.058555 14.638276 14.383246 12.791261 10.395821 12.500000 -- -- -- -- Value at End of Year 17.264776 17.058555 14.638276 14.383246 12.791261 10.395821 -- -- -- -- Venture III No. of Units 171,482 214,354 295,590 431,918 447,595 254,248 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 19.886808 17.090789 16.818170 14.979182 12.500000 -- -- -- -- -- Value at End of Year 20.096881 19.886808 17.090789 16.818170 14.979182 -- -- -- -- -- Venture III No. of Units 94,625 128,197 130,409 113,811 51,449 -- -- -- -- -- EQUITY-INCOME TRUST - SERIES I SHARES (units first credited 8-01-2001) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year 33.349708 28.484603 27.864315 24.674518 19.976038 23.419227 23.987293 -- -- -- Value at End of Year 33.898825 33.349708 28.484603 27.864315 24.674518 19.976038 23.419227 -- -- -- Venture III No. of Units 203,444 287,725 339,253 450,077 484,523 535,366 133,370 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year 17.254183 14.744455 14.430566 12.785015 10.355686 12.146730 12.500000 -- -- -- Value at End of Year 17.529462 17.254183 14.744455 14.430566 12.785015 10.355686 12.146730 -- -- -- Venture III No. of Units 459,791 637,450 801,467 1,052,521 1,142,868 1,276,620 28,697 -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year 17.114628 14.647090 14.356729 12.738737 10.333675 12.139130 12.500000 -- -- -- Value at End of Year 17.361487 17.114628 14.647090 14.356729 12.738737 10.333675 12.139130 -- -- -- Venture III No. of Units 23,296 27,983 52,412 55,715 74,231 72,429 28,697 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 17.068339 14.614762 14.332181 12.723328 10.326336 12.136595 12.500000 -- -- -- Value at End of Year 17.305825 17.068339 14.614762 14.332181 12.723328 10.326336 12.136595 -- -- -- Venture III No. of Units 144,321 198,807 251,739 327,655 316,798 469,145 72,763 -- -- -- FINANCIAL SERVICES TRUST - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 19.147497 15.854914 14.702700 13.578107 10.347728 12.638293 -- -- -- -- Value at End of Year 17.527454 19.147497 15.854914 14.702700 13.578107 10.347728 -- -- -- -- Venture III No. of Units 581,504 854,054 617,520 644,275 585,235 239,270 -- -- -- -- NY Venture III No. of Units 42,078 45,403 33,508 31,040 24,981 5,638 -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 18.894186 15.652956 14.522649 13.418556 10.231240 12.500000 -- -- -- -- Value at End of Year 17.286880 18.894186 15.652956 14.522649 13.418556 10.231240 -- -- -- -- Venture III No. of Units 151,574 312,480 380,115 431,763 468,599 175,574 -- -- -- -- NY Venture III No. of Units 61,185 75,084 66,298 75,100 40,520 28,212 -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 18.763373 15.567838 14.465294 13.385674 10.221472 12.500000 -- -- -- -- Value at End of Year 17.141316 18.763373 15.567838 14.465294 13.385674 10.221472 -- -- -- -- Venture III No. of Units 223,376 399,160 278,434 267,698 193,147 25,104 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 18.719976 15.539574 14.446232 13.374740 10.218222 12.500000 -- -- -- -- Value at End of Year 17.093070 18.719976 15.539574 14.446232 13.374740 10.218222 -- -- -- -- Venture III No. of Units 24,201 56,529 69,839 74,119 86,863 54,273 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 21.785238 18.111131 16.862052 15.634885 12.500000 -- -- -- -- -- Value at End of Year 19.861955 21.785238 18.111131 16.862052 15.634885 -- -- -- -- -- Venture III No. of Units 17,085 37,600 32,445 30,536 21,333 -- -- -- -- -- FINANCIAL SERVICES TRUST - SERIES I SHARES (units first credited 8-01-2001) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year 17.336582 14.314742 13.256232 12.210054 9.292550 11.504833 12.109477 -- -- -- Value at End of Year 15.888716 17.336582 14.314742 13.256232 12.210054 9.292550 11.504833 -- -- -- Venture III No. of Units 88,638 127,639 179,945 280,690 313,309 329,587 79,463 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year 17.760449 14.672050 13.593885 12.527328 9.538791 11.815615 12.500000 -- -- -- Value at End of Year 16.269001 17.760449 14.672050 13.593885 12.527328 9.538791 11.815615 -- -- -- Venture III No. of Units 54,442 98,212 113,493 147,080 157,593 162,475 -- -- -- --
U-17 Venture III Prior
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 ----------- ----------- ---------- ---------- ---------- --------- ---------- -------- -------- -------- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year 17.616793 14.575147 13.524311 12.481976 9.518501 11.808217 12.500000 -- -- -- Value at End of Year 16.113076 17.616793 14.575147 13.524311 12.481976 9.518501 11.808217 -- -- -- Venture III No. of Units 3,621 4,978 6,553 15,814 22,989 25,104 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 17.569209 14.543022 13.501225 12.466911 9.511759 11.805755 12.500000 -- -- -- Value at End of Year 16.061468 17.569209 14.543022 13.501225 12.466911 9.511759 11.805755 -- -- -- Venture III No. of Units 51,320 84,336 95,825 131,727 132,728 147,104 30,899 -- -- -- FRANKLIN TEMPLETON FOUNDING ALLOCATION TRUST - SERIES II SHARES (units first credited 5-01-2007) Contracts with no Optional Benefits Value at Start of Year 12.500000 -- -- -- -- -- -- -- -- -- Value at End of Year 11.972891 -- -- -- -- -- -- -- -- -- Venture III No. of Units 30,024,016 -- -- -- -- -- -- -- -- -- NY Venture III No. of Units 1,839,487 -- -- -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 12.500000 -- -- -- -- -- -- -- -- -- Value at End of Year 11.968888 -- -- -- -- -- -- -- -- -- Venture III No. of Units 665,711 -- -- -- -- -- -- -- -- -- NY Venture III No. of Units 137,635 -- -- -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 12.500000 -- -- -- -- -- -- -- -- -- Value at End of Year 11.956886 -- -- -- -- -- -- -- -- -- Venture III No. of Units 17,986,003 -- -- -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 12.500000 -- -- -- -- -- -- -- -- -- Value at End of Year 11.952894 -- -- -- -- -- -- -- -- -- Venture III No. of Units 485,164 -- -- -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 12.500000 -- -- -- -- -- -- -- -- -- Value at End of Year 11.940903 -- -- -- -- -- -- -- -- -- Venture III No. of Units 177,565 -- -- -- -- -- -- -- -- -- FUNDAMENTAL VALUE TRUST - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 17.850530 15.884823 14.855745 13.552445 10.633144 12.594671 -- -- -- -- Value at End of Year 18.236957 17.850530 15.884823 14.855745 13.552445 10.633144 -- -- -- -- Venture III No. of Units 6,152,981 6,237,118 4,405,762 2,947,953 1,743,830 515,915 -- -- -- -- NY Venture III No. of Units 416,854 354,968 175,138 74,489 39,812 87,372 -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 17.675396 15.736804 14.724657 13.439595 10.549867 12.500000 -- -- -- -- Value at End of Year 18.048958 17.675396 15.736804 14.724657 13.439595 10.549867 -- -- -- -- Venture III No. of Units 921,813 1,328,832 1,767,029 1,917,991 1,873,345 929,985 -- -- -- -- NY Venture III No. of Units 265,727 334,350 318,196 254,902 120,094 99,581 -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 17.553010 15.651225 14.666493 13.406652 10.539789 12.500000 -- -- -- -- Value at End of Year 17.896959 17.553010 15.651225 14.666493 13.406652 10.539789 -- -- -- -- Venture III No. of Units 3,861,173 3,883,211 2,625,432 1,597,541 724,423 40,455 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 17.512409 15.622816 14.647175 13.395703 10.536441 12.500000 -- -- -- -- Value at End of Year 17.846600 17.512409 15.622816 14.647175 13.395703 10.536441 -- -- -- -- Venture III No. of Units 114,452 163,735 181,238 193,886 199,283 157,548 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 20.012126 17.879526 16.788033 15.376750 12.500000 -- -- -- -- -- Value at End of Year 20.363279 20.012126 17.879526 16.788033 15.376750 -- -- -- -- -- Venture III No. of Units 132,627 158,633 151,883 83,418 46,913 -- -- -- -- -- FUNDAMENTAL VALUE TRUST - SERIES I SHARES (units first credited 8-01-2001) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year 16.195064 14.377102 13.428205 12.211223 9.561490 11.600607 11.960105 -- -- -- Value at End of Year 16.572136 16.195064 14.377102 13.428205 12.211223 9.561490 11.600607 -- -- -- Venture III No. of Units 332,249 456,599 584,896 797,463 1,102,100 1,126,983 489,147 -- -- --
U-18 Venture III Prior
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 ----------- ----------- ---------- ---------- ---------- --------- ---------- -------- -------- -------- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year 16.811144 14.931470 13.952931 12.694757 9.945065 12.072032 12.500000 -- -- -- Value at End of Year 17.193911 16.811144 14.931470 13.952931 12.694757 9.945065 12.072032 -- -- -- Venture III No. of Units 368,902 483,599 658,777 957,799 1,022,920 1,103,460 40,942 -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year 16.675213 14.832896 13.881560 12.648823 9.923939 12.064485 12.500000 -- -- -- Value at End of Year 17.029177 16.675213 14.832896 13.881560 12.648823 9.923939 12.064485 -- -- -- Venture III No. of Units 51,880 52,594 53,878 32,731 39,988 40,455 40,942 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 16.630127 14.800180 13.857847 12.633542 9.916901 12.061966 12.500000 -- -- -- Value at End of Year 16.974596 16.630127 14.800180 13.857847 12.633542 9.916901 12.061966 -- -- -- Venture III No. of Units 230,648 294,750 379,986 404,510 373,487 361,506 116,042 -- -- -- GLOBAL ALLOCATION TRUST (FORMERLY TACTICAL ALLOCATION TRUST) - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 15.308258 13.737958 13.183540 11.911549 9.575126 11.800056 -- -- -- -- Value at End of Year 15.789675 15.308258 13.737958 13.183540 11.911549 9.575126 -- -- -- -- Venture III No. of Units 4,162,261 3,953,167 2,344,078 838,415 241,284 49,036 -- -- -- -- NY Venture III No. of Units 362,827 310,890 137,976 26,592 8,273 2,183 -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 16.178779 14.526422 13.947145 12.607788 10.139860 12.500000 -- -- -- -- Value at End of Year 16.679186 16.178779 14.526422 13.947145 12.607788 10.139860 -- -- -- -- Venture III No. of Units 133,986 202,916 300,268 271,077 215,426 121,427 -- -- -- -- NY Venture III No. of Units 64,092 107,441 109,834 99,867 76,541 11,718 -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 16.066762 14.447430 13.892059 12.576878 10.130181 12.500000 -- -- -- -- Value at End of Year 16.538745 16.066762 14.447430 13.892059 12.576878 10.130181 -- -- -- -- Venture III No. of Units 2,618,626 2,476,013 1,364,373 531,937 155,717 12,394 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 16.029603 14.421207 13.873751 12.566607 10.126955 12.500000 -- -- -- -- Value at End of Year 16.492195 16.029603 14.421207 13.873751 12.566607 10.126955 -- -- -- -- Venture III No. of Units 14,992 20,799 27,023 30,370 34,337 20,731 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 18.831961 16.967731 16.348045 14.830076 12.500000 -- -- -- -- -- Value at End of Year 19.346231 18.831961 16.967731 16.348045 14.830076 -- -- -- -- -- Venture III No. of Units 103,523 108,797 99,196 51,466 10,306 -- -- -- -- -- GLOBAL ALLOCATION TRUST (FORMERLY TACTICAL ALLOCATION TRUST) - SERIES I SHARES (units first credited 8-01-2001) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year 12.388848 11.096081 10.621190 9.578808 7.702576 10.197351 10.834371 -- -- -- Value at End of Year 12.810371 12.388848 11.096081 10.621190 9.578808 7.702576 10.197351 -- -- -- Venture III No. of Units 42,452 56,921 72,936 92,760 110,472 137,152 40,851 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year 14.202193 12.726550 12.187943 10.997305 8.847644 11.719158 12.500000 -- -- -- Value at End of Year 14.678046 14.202193 12.726550 12.187943 10.997305 8.847644 11.719158 -- -- -- Venture III No. of Units 76,763 95,229 79,038 103,250 105,136 134,626 -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year 14.087292 12.642477 12.125553 10.957473 8.828827 11.711820 12.500000 -- -- -- Value at End of Year 14.537342 14.087292 12.642477 12.125553 10.957473 8.828827 11.711820 -- -- -- Venture III No. of Units 10,169 10,247 10,591 10,796 11,919 12,394 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 14.049211 12.614590 12.104837 10.944234 8.822564 11.709378 12.500000 -- -- -- Value at End of Year 14.490764 14.049211 12.614590 12.104837 10.944234 8.822564 11.709378 -- -- -- Venture III No. of Units 22,145 24,605 24,348 34,794 40,883 135,425 11,123 -- -- -- GLOBAL BOND TRUST - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 17.397156 16.832660 18.331732 16.932377 14.946973 13.065634 -- -- -- -- Value at End of Year 18.710557 17.397156 16.832660 18.331732 16.932377 14.946973 -- -- -- -- Venture III No. of Units 3,609,284 3,567,522 2,482,846 1,609,236 862,965 266,414 -- -- -- -- NY Venture III No. of Units 242,358 200,869 94,948 43,981 18,393 17,778 -- -- -- --
U-19 Venture III Prior
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 ----------- ----------- ---------- ---------- ---------- --------- ---------- -------- -------- -------- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 16.605512 16.074715 17.515004 16.186110 14.295351 12.500000 -- -- -- -- Value at End of Year 17.850183 16.605512 16.074715 17.515004 16.186110 14.295351 -- -- -- -- Venture III No. of Units 293,695 346,195 577,708 551,915 592,595 207,523 -- -- -- -- NY Venture III No. of Units 91,642 133,171 102,785 91,274 44,080 73,987 -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 16.490540 15.987312 17.445870 16.146477 14.281750 12.500000 -- -- -- -- Value at End of Year 17.699877 16.490540 15.987312 17.445870 16.146477 14.281750 -- -- -- -- Venture III No. of Units 2,634,752 2,298,488 1,552,367 793,677 263,005 9,637 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 16.452389 15.958285 17.422887 16.133296 14.277221 12.500000 -- -- -- -- Value at End of Year 17.650067 16.452389 15.958285 17.422887 16.133296 14.277221 -- -- -- -- Venture III No. of Units 35,386 43,793 74,572 105,122 99,515 51,802 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 13.615495 13.226348 14.461843 13.411572 12.500000 -- -- -- -- -- Value at End of Year 14.584646 13.615495 13.226348 14.461843 13.411572 -- -- -- -- -- Venture III No. of Units 119,230 124,943 116,178 80,275 59,221 -- -- -- -- -- GLOBAL BOND TRUST - SERIES I SHARES (units first credited 8-01-2001) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year 18.619642 17.981109 19.559001 18.037496 15.890969 13.448939 13.259113 -- -- -- Value at End of Year 20.077481 18.619642 17.981109 19.559001 18.037496 15.890969 13.448939 -- -- -- Venture III No. of Units 72,830 87,463 123,116 141,559 135,305 122,886 8,068 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year 17.491423 16.900006 18.392205 16.969963 14.957944 12.665620 12.500000 -- -- -- Value at End of Year 18.851456 17.491423 16.900006 18.392205 16.969963 14.957944 12.665620 -- -- -- Venture III No. of Units 155,798 93,302 116,053 151,103 141,883 159,585 1,821 -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year 17.349979 16.788441 18.298149 16.908591 14.926222 12.657716 12.500000 -- -- -- Value at End of Year 18.670835 17.349979 16.788441 18.298149 16.908591 14.926222 12.657716 -- -- -- Venture III No. of Units 5,850 6,126 6,703 14,147 12,385 9,637 1,821 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 17.303097 16.751423 18.266917 16.888191 14.915657 12.655085 12.500000 -- -- -- Value at End of Year 18.611038 17.303097 16.751423 18.266917 16.888191 14.915657 12.655085 -- -- -- Venture III No. of Units 17,567 22,402 32,345 31,689 36,711 43,687 4,688 -- -- -- GLOBAL TRUST (FORMERLY GLOBAL EQUITY TRUST) - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 18.425388 15.596883 14.349048 12.737013 10.177657 12.324414 -- -- -- -- Value at End of Year 18.320655 18.425388 15.596883 14.349048 12.737013 10.177657 -- -- -- -- Venture III No. of Units 249,795 410,093 440,210 328,873 237,217 109,336 -- -- -- -- NY Venture III No. of Units 18,700 22,399 12,723 9,161 4,890 6,453 -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 18.644647 15.790358 14.534304 12.907925 10.319378 12.500000 -- -- -- -- Value at End of Year 18.529341 18.644647 15.790358 14.534304 12.907925 10.319378 -- -- -- -- Venture III No. of Units 182,095 255,941 323,448 358,860 338,502 215,905 -- -- -- -- NY Venture III No. of Units 33,500 38,474 53,562 30,068 15,472 15,985 -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 18.515556 15.704495 14.476898 12.876284 10.309521 12.500000 -- -- -- -- Value at End of Year 18.373314 18.515556 15.704495 14.476898 12.876284 10.309521 -- -- -- -- Venture III No. of Units 150,702 176,574 189,376 131,024 76,294 18,265 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 18.472716 15.675974 14.457803 12.865753 10.306231 12.500000 -- -- -- -- Value at End of Year 18.321599 18.472716 15.675974 14.457803 12.865753 10.306231 -- -- -- -- Venture III No. of Units 21,387 28,756 33,789 42,942 40,555 25,931 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 21.532776 18.300087 16.903271 15.064561 12.500000 -- -- -- -- -- Value at End of Year 21.324423 21.532776 18.300087 16.903271 15.064561 -- -- -- -- -- Venture III No. of Units 18,366 23,333 15,693 9,974 4,657 -- -- -- -- --
U-20 Venture III Prior
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 ----------- ----------- ---------- ---------- ---------- --------- ---------- -------- -------- -------- GLOBAL TRUST (FORMERLY GLOBAL EQUITY TRUST) - SERIES I SHARES (units first credited 8-01-2001) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year 25.214625 21.303555 19.560024 17.329337 13.821990 17.371743 18.932407 -- -- -- Value at End of Year 25.131381 25.214625 21.303555 19.560024 17.329337 13.821990 17.371743 -- -- -- Venture III No. of Units 44,994 54,289 71,685 103,717 132,638 153,924 68,230 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year 16.451514 13.906629 12.774840 11.323632 9.036317 11.362716 12.500000 -- -- -- Value at End of Year 16.388962 16.451514 13.906629 12.774840 11.323632 9.036317 11.362716 -- -- -- Venture III No. of Units 54,127 48,509 93,754 118,180 124,289 174,250 1,126 -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year 16.318435 13.814786 12.709470 11.282635 9.017096 11.355598 12.500000 -- -- -- Value at End of Year 16.231891 16.318435 13.814786 12.709470 11.282635 9.017096 11.355598 -- -- -- Venture III No. of Units 905 2,729 9,186 9,095 17,187 18,265 1,126 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 16.274304 13.784289 12.687743 11.268996 9.010705 11.353229 12.500000 -- -- -- Value at End of Year 16.179860 16.274304 13.784289 12.687743 11.268996 9.010705 11.353229 -- -- -- Venture III No. of Units 88,763 90,599 97,354 112,476 100,494 93,038 14,279 -- -- -- GREAT COMPANIES-AMERICA TRUST (REPLACED BY U.S. GLOBAL LEADERS GROWTH TRUST EFF 4-29-05) - SERIES II SHARES (units first credited 8-04-2003) Contracts with no Optional Benefits Value at Start of Year -- -- -- 13.915189 12.500000 -- -- -- -- -- Value at End of Year -- -- -- 13.933872 13.915189 -- -- -- -- -- Venture III No. of Units -- -- -- 9,707 19,667 -- -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year -- -- -- 13.901020 12.500000 -- -- -- -- -- Value at End of Year -- -- -- 13.884836 13.901020 -- -- -- -- -- Venture III No. of Units -- -- -- 142 143 -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year -- -- -- 13.915189 12.500000 -- -- -- -- -- Value at End of Year -- -- -- 13.933872 13.915189 -- -- -- -- -- Venture III No. of Units -- -- -- 9,707 19,667 -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year -- -- -- 13.901020 12.500000 -- -- -- -- -- Value at End of Year -- -- -- 13.884836 13.901020 -- -- -- -- -- Venture III No. of Units -- -- -- 142 143 -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year -- -- -- 13.892531 12.500000 -- -- -- -- -- Value at End of Year -- -- -- 13.855506 13.892531 -- -- -- -- -- HEALTH SCIENCES TRUST - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 16.972950 15.951784 14.424059 12.746949 9.534743 11.223440 -- -- -- -- Value at End of Year 19.605936 16.972950 15.951784 14.424059 12.746949 9.534743 -- -- -- -- Venture III No. of Units 740,503 861,464 1,011,800 1,089,573 772,102 299,587 -- -- -- -- NY Venture III No. of Units 46,740 58,061 58,297 51,998 42,899 8,334 -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 18.859710 17.733870 16.043469 14.185179 10.615849 12.500000 -- -- -- -- Value at End of Year 21.774442 18.859710 17.733870 16.043469 14.185179 10.615849 -- -- -- -- Venture III No. of Units 317,472 463,291 550,178 605,996 587,894 255,642 -- -- -- -- NY Venture III No. of Units 89,384 126,020 134,034 128,574 67,695 33,548 -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 18.729095 17.637420 15.980101 14.150421 10.605710 12.500000 -- -- -- -- Value at End of Year 21.591059 18.729095 17.637420 15.980101 14.150421 10.605710 -- -- -- -- Venture III No. of Units 410,361 514,020 588,658 541,226 310,055 14,361 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 18.685734 17.605376 15.959023 14.138853 10.602331 12.500000 -- -- -- -- Value at End of Year 21.530253 18.685734 17.605376 15.959023 14.138853 10.602331 -- -- -- -- Venture III No. of Units 48,874 80,698 124,753 123,486 134,349 58,653 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 19.725075 18.612465 16.897181 14.992537 12.500000 -- -- -- -- -- Value at End of Year 22.693563 19.725075 18.612465 16.897181 14.992537 -- -- -- -- -- Venture III No. of Units 21,524 45,858 63,089 59,654 40,234 -- -- -- -- --
U-21 Venture III Prior
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 ----------- ----------- ---------- ---------- ---------- --------- ---------- -------- -------- -------- HEALTH SCIENCES TRUST - SERIES I SHARES (units first credited 8-01-2001) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year 17.203115 16.137302 14.563722 12.840795 9.583435 13.390760 12.786642 -- -- -- Value at End of Year 19.910780 17.203115 16.137302 14.563722 12.840795 9.583435 13.390760 -- -- -- Venture III No. of Units 139,073 211,460 286,983 373,518 522,566 543,042 207,903 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year 16.904410 15.865008 14.325124 12.636757 9.435859 13.191182 12.500000 -- -- -- Value at End of Year 19.555233 16.904410 15.865008 14.325124 12.636757 9.435859 13.191182 -- -- -- Venture III No. of Units 181,030 219,928 265,282 342,683 350,008 339,355 3,599 -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year 16.767677 15.760255 14.251835 12.591031 9.415806 13.182940 12.500000 -- -- -- Value at End of Year 19.367837 16.767677 15.760255 14.251835 12.591031 9.415806 13.182940 -- -- -- Venture III No. of Units 3,138 5,943 6,542 5,453 12,004 14,361 3,599 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 16.722329 15.725474 14.227479 12.575813 9.409123 13.180193 12.500000 -- -- -- Value at End of Year 19.305747 16.722329 15.725474 14.227479 12.575813 9.409123 13.180193 -- -- -- Venture III No. of Units 65,245 103,457 117,394 145,164 165,233 176,335 46,697 -- -- -- HIGH INCOME TRUST - SERIES II SHARES (units first credited 5-01-2007) Contracts with no Optional Benefits Value at Start of Year 12.500000 -- -- -- -- -- -- -- -- -- Value at End of Year 11.516806 -- -- -- -- -- -- -- -- -- Venture III No. of Units 3,829 -- -- -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 12.500000 -- -- -- -- -- -- -- -- -- Value at End of Year 11.947056 -- -- -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 12.500000 -- -- -- -- -- -- -- -- -- Value at End of Year 11.501411 -- -- -- -- -- -- -- -- -- Venture III No. of Units 838 -- -- -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 12.500000 -- -- -- -- -- -- -- -- -- Value at End of Year 11.497563 -- -- -- -- -- -- -- -- -- Venture III No. of Units 1,728 -- -- -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 12.500000 -- -- -- -- -- -- -- -- -- Value at End of Year 11.919135 -- -- -- -- -- -- -- -- -- HIGH YIELD TRUST - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 16.730415 15.428438 15.145567 13.891244 11.370655 12.141727 -- -- -- -- Value at End of Year 16.679296 16.730415 15.428438 15.145567 13.891244 11.370655 -- -- -- -- Venture III No. of Units 1,061,694 1,564,435 1,797,146 2,120,483 1,762,068 284,891 -- -- -- -- NY Venture III No. of Units 81,199 104,589 126,053 163,790 175,755 16,234 -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 17.184243 15.854859 15.571927 14.289454 11.702451 12.500000 -- -- -- -- Value at End of Year 17.123127 17.184243 15.854859 15.571927 14.289454 11.702451 -- -- -- -- Venture III No. of Units 365,731 482,504 646,754 1,098,262 1,233,595 310,509 -- -- -- -- NY Venture III No. of Units 54,861 89,565 100,941 171,945 143,636 43,415 -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 17.065272 15.768654 15.510445 14.254457 11.691304 12.500000 -- -- -- -- Value at End of Year 16.978950 17.065272 15.768654 15.510445 14.254457 11.691304 -- -- -- -- Venture III No. of Units 475,768 696,966 800,087 872,757 542,096 54,491 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 17.025788 15.740008 15.489994 14.242800 11.687584 12.500000 -- -- -- -- Value at End of Year 16.931163 17.025788 15.740008 15.489994 14.242800 11.687584 -- -- -- -- Venture III No. of Units 42,985 55,007 62,867 118,927 161,852 39,407 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 16.323573 15.113401 14.895606 13.716878 12.500000 -- -- -- -- -- Value at End of Year 16.208378 16.323573 15.113401 14.895606 13.716878 -- -- -- -- -- Venture III No. of Units 56,233 77,223 96,377 178,225 73,648 -- -- -- -- --
U-22 Venture III Prior
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 ----------- ----------- ---------- ---------- ---------- --------- ---------- -------- -------- -------- HIGH YIELD TRUST - SERIES I SHARES (units first credited 8-01-2001) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year 16.805267 15.479357 15.175076 13.891585 11.348366 12.388789 12.878927 -- -- -- Value at End of Year 16.799171 16.805267 15.479357 15.175076 13.891585 11.348366 12.388789 -- -- -- Venture III No. of Units 124,505 181,294 241,663 343,184 572,282 426,440 177,553 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year 16.219763 14.947494 14.660969 13.427690 10.974884 11.987059 12.500000 -- -- -- Value at End of Year 16.205740 16.219763 14.947494 14.660969 13.427690 10.974884 11.987059 -- -- -- Venture III No. of Units 108,487 148,760 219,258 334,866 400,190 256,238 3,624 -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year 16.088595 14.848800 14.585968 13.379105 10.951578 11.979562 12.500000 -- -- -- Value at End of Year 16.050456 16.088595 14.848800 14.585968 13.379105 10.951578 11.979562 -- -- -- Venture III No. of Units 44,319 50,468 51,756 61,876 58,692 54,491 3,624 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 16.045125 14.816071 14.561077 13.362964 10.943828 11.977070 12.500000 -- -- -- Value at End of Year 15.999051 16.045125 14.816071 14.561077 13.362964 10.943828 11.977070 -- -- -- Venture III No. of Units 42,720 54,964 70,122 150,394 231,535 152,818 23,587 -- -- -- INCOME & VALUE TRUST - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 15.122225 14.179404 13.730294 12.995332 10.461390 12.065818 -- -- -- -- Value at End of Year 15.008378 15.122225 14.179404 13.730294 12.995332 10.461390 -- -- -- -- Venture III No. of Units 1,161,731 1,379,833 1,597,506 1,816,378 1,187,425 299,598 -- -- -- -- NY Venture III No. of Units 73,901 90,859 94,668 87,863 50,556 21,089 -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 15.630104 14.662929 14.205594 13.451943 10.834389 12.500000 -- -- -- -- Value at End of Year 15.504641 15.630104 14.662929 14.205594 13.451943 10.834389 -- -- -- -- Venture III No. of Units 621,429 780,201 943,761 1,149,939 1,027,704 389,937 -- -- -- -- NY Venture III No. of Units 143,920 218,821 253,761 224,293 107,445 42,937 -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 15.521881 14.583201 14.149495 13.418984 10.824045 12.500000 -- -- -- -- Value at End of Year 15.374070 15.521881 14.583201 14.149495 13.418984 10.824045 -- -- -- -- Venture III No. of Units 621,431 805,475 917,091 1,196,450 534,443 27,012 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 15.485972 14.556722 14.130840 13.408012 10.820604 12.500000 -- -- -- -- Value at End of Year 15.330796 15.485972 14.556722 14.130840 13.408012 10.820604 -- -- -- -- Venture III No. of Units 77,487 91,076 124,401 159,627 144,050 57,010 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 16.575805 15.604484 15.170618 14.416264 12.500000 -- -- -- -- -- Value at End of Year 16.384972 16.575805 15.604484 15.170618 14.416264 -- -- -- -- -- Venture III No. of Units 48,178 71,569 76,555 91,542 56,698 -- -- -- -- -- INCOME & VALUE TRUST - SERIES I SHARES (units first credited 8-01-2001) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year 22.222596 20.790265 20.086607 18.972143 15.248938 18.440571 18.678710 -- -- -- Value at End of Year 22.099604 22.222596 20.790265 20.086607 18.972143 15.248938 18.440571 -- -- -- Venture III No. of Units 175,383 235,083 296,296 374,814 361,461 315,040 79,229 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year 14.774094 13.828735 13.367350 12.632027 10.158114 12.290367 12.500000 -- -- -- Value at End of Year 14.684935 14.774094 13.828735 13.367350 12.632027 10.158114 12.290367 -- -- -- Venture III No. of Units 209,366 281,201 335,218 511,095 443,764 448,378 7,959 -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year 14.654598 13.737414 13.298961 12.586301 10.136519 12.282680 12.500000 -- -- -- Value at End of Year 14.544202 14.654598 13.737414 13.298961 12.586301 10.136519 12.282680 -- -- -- Venture III No. of Units 3,237 7,589 11,416 17,097 23,174 27,012 7,959 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 14.614954 13.707101 13.276229 12.571095 10.129331 12.280120 12.500000 -- -- -- Value at End of Year 14.497574 14.614954 13.707101 13.276229 12.571095 10.129331 12.280120 -- -- -- Venture III No. of Units 54,979 67,816 100,800 162,405 159,514 157,833 47,904 -- -- --
U-23 Venture III Prior
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 ----------- ----------- ---------- ---------- ---------- --------- ---------- -------- -------- -------- INDEX ALLOCATION TRUST - SERIES II SHARES (units first credited 2-13-2006) Contracts with no Optional Benefits Value at Start of Year 13.491510 12.500000 -- -- -- -- -- -- -- -- Value at End of Year 14.139189 13.491510 -- -- -- -- -- -- -- -- Venture III No. of Units 4,355,699 2,024,581 -- -- -- -- -- -- -- -- NY Venture III No. of Units 724,828 344,725 -- -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 13.485621 12.500000 -- -- -- -- -- -- -- -- Value at End of Year 14.125913 13.485621 -- -- -- -- -- -- -- -- Venture III No. of Units 13,900 12,201 -- -- -- -- -- -- -- -- NY Venture III No. of Units 65,033 22,820 -- -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 13.467954 12.500000 -- -- -- -- -- -- -- -- Value at End of Year 14.086153 13.467954 -- -- -- -- -- -- -- -- Venture III No. of Units 5,978,100 2,741,963 -- -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 13.462066 12.500000 -- -- -- -- -- -- -- -- Value at End of Year 14.072914 13.462066 -- -- -- -- -- -- -- -- Venture III No. of Units 6,642 6,778 -- -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 13.444433 12.500000 -- -- -- -- -- -- -- -- Value at End of Year 14.033307 13.444433 -- -- -- -- -- -- -- -- Venture III No. of Units 338 2,361 -- -- -- -- -- -- -- -- INTERNATIONAL CORE TRUST (FORMERLY INTERNATIONAL STOCK TRUST) - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 20.207740 16.484777 14.483618 12.765244 9.962987 12.868047 -- -- -- -- Value at End of Year 22.088298 20.207740 16.484777 14.483618 12.765244 9.962987 -- -- -- -- Venture III No. of Units 561,368 535,764 488,083 509,688 450,208 176,920 -- -- -- -- NY Venture III No. of Units 24,593 19,747 8,135 8,907 4,807 14,269 -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 19.584336 15.984195 14.050808 12.389988 9.674956 12.500000 -- -- -- -- Value at End of Year 21.396118 19.584336 15.984195 14.050808 12.389988 9.674956 -- -- -- -- Venture III No. of Units 259,931 267,642 329,380 395,719 422,409 284,865 -- -- -- -- NY Venture III No. of Units 25,286 45,979 17,799 19,936 16,892 12,367 -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 19.448735 15.897270 13.995306 12.359623 9.665705 12.500000 -- -- -- -- Value at End of Year 21.215964 19.448735 15.897270 13.995306 12.359623 9.665705 -- -- -- -- Venture III No. of Units 270,034 174,590 125,223 133,773 101,503 28,119 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 19.403727 15.868390 13.976842 12.349503 9.662625 12.500000 -- -- -- -- Value at End of Year 21.156220 19.403727 15.868390 13.976842 12.349503 9.662625 -- -- -- -- Venture III No. of Units 34,349 31,196 43,834 65,951 75,853 70,786 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 25.475383 20.864973 18.405332 16.286845 12.500000 -- -- -- -- -- Value at End of Year 27.734405 25.475383 20.864973 18.405332 16.286845 -- -- -- -- -- Venture III No. of Units 4,874 5,219 8,058 6,902 6,302 -- -- -- -- -- INTERNATIONAL CORE TRUST (FORMERLY INTERNATIONAL STOCK TRUST) - SERIES I SHARES (units first credited 8-01-2001) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year 18.108996 14.754587 12.936882 11.378475 8.879457 11.527320 12.212749 -- -- -- Value at End of Year 19.845136 18.108996 14.754587 12.936882 11.378475 8.879457 11.527320 -- -- -- Venture III No. of Units 42,193 66,919 99,150 122,226 140,930 131,348 35,653 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year 18.232655 14.862751 13.038216 11.473346 8.957969 11.635074 12.500000 -- -- -- Value at End of Year 19.970619 18.232655 14.862751 13.038216 11.473346 8.957969 11.635074 -- -- -- Venture III No. of Units 75,565 87,303 88,700 136,031 154,065 176,546 1,577 -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year 18.085168 14.764581 12.971477 11.431790 8.938910 11.627790 12.500000 -- -- -- Value at End of Year 19.779227 18.085168 14.764581 12.971477 11.431790 8.938910 11.627790 -- -- -- Venture III No. of Units 17,451 17,510 18,995 20,912 25,089 28,119 1,577 -- -- --
U-24 Venture III Prior
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 ----------- ----------- ---------- ---------- ---------- --------- ---------- -------- -------- -------- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 18.036280 14.732014 12.949312 11.417982 8.932575 11.625360 12.500000 -- -- -- Value at End of Year 19.715848 18.036280 14.732014 12.949312 11.417982 8.932575 11.625360 -- -- -- Venture III No. of Units 35,969 42,894 51,870 67,431 76,243 81,325 27,818 -- -- -- INTERNATIONAL EQUITY INDEX TRUST A - SERIES II SHARES (units first credited 5-03-2004) Contracts with no Optional Benefits Value at Start of Year 20.626678 16.740309 14.621376 12.500000 -- -- -- -- -- -- Value at End of Year 23.363563 20.626678 16.740309 14.621376 -- -- -- -- -- -- Venture III No. of Units 187,505 448,041 403,664 337,941 -- -- -- -- -- -- NY Venture III No. of Units 20,912 31,002 36,615 25,103 -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 20.599294 16.726412 14.616527 12.500000 -- -- -- -- -- -- Value at End of Year 23.320820 20.599294 16.726412 14.616527 -- -- -- -- -- -- Venture III No. of Units 147,438 227,017 335,510 358,653 -- -- -- -- -- -- NY Venture III No. of Units 47,963 49,272 45,556 48,108 -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 20.517383 16.684842 14.602007 12.500000 -- -- -- -- -- -- Value at End of Year 23.193094 20.517383 16.684842 14.602007 -- -- -- -- -- -- Venture III No. of Units 175,723 247,228 255,295 218,106 -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 20.490174 16.671019 14.597181 12.500000 -- -- -- -- -- -- Value at End of Year 23.150692 20.490174 16.671019 14.597181 -- -- -- -- -- -- Venture III No. of Units 15,379 19,667 21,823 42,376 -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 20.408670 16.629555 14.582668 12.500000 -- -- -- -- -- -- Value at End of Year 23.023861 20.408670 16.629555 14.582668 -- -- -- -- -- -- Venture III No. of Units 10,051 14,557 11,860 9,318 -- -- -- -- -- -- INTERNATIONAL EQUITY INDEX TRUST A - SERIES I SHARES (units first credited 5-03-2004) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year 20.736074 16.798844 14.644673 12.500000 -- -- -- -- -- -- Value at End of Year 23.540445 20.736074 16.798844 14.644673 -- -- -- -- -- -- Venture III No. of Units 31,322 50,827 37,794 51,643 -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year 20.708540 16.784899 14.639807 12.500000 -- -- -- -- -- -- Value at End of Year 23.497359 20.708540 16.784899 14.639807 -- -- -- -- -- -- Venture III No. of Units 49,610 93,238 96,260 137,510 -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year 20.626197 16.743181 14.625267 12.500000 -- -- -- -- -- -- Value at End of Year 23.368670 20.626197 16.743181 14.625267 -- -- -- -- -- -- Venture III No. of Units 580 1,260 1,690 1,250 -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 20.598804 16.729279 14.620416 12.500000 -- -- -- -- -- -- Value at End of Year 23.325914 20.598804 16.729279 14.620416 -- -- -- -- -- -- Venture III No. of Units 24,239 33,724 26,017 24,487 -- -- -- -- -- -- INTERNATIONAL OPPORTUNITIES TRUST - SERIES II SHARES (units first credited 5-01-2005) Contracts with no Optional Benefits Value at Start of Year 18.698360 15.341517 12.500000 -- -- -- -- -- -- -- Value at End of Year 22.026318 18.698360 15.341517 -- -- -- -- -- -- -- Venture III No. of Units 597,292 357,911 144,781 -- -- -- -- -- -- -- NY Venture III No. of Units 23,719 11,821 1,006 -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 18.682835 15.336432 12.500000 -- -- -- -- -- -- -- Value at End of Year 21.996964 18.682835 15.336432 -- -- -- -- -- -- -- Venture III No. of Units 128,635 86,504 56,591 -- -- -- -- -- -- -- NY Venture III No. of Units 16,222 30,299 6,025 -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 18.636406 15.321220 12.500000 -- -- -- -- -- -- -- Value at End of Year 21.909254 18.636406 15.321220 -- -- -- -- -- -- -- Venture III No. of Units 251,802 199,270 53,237 -- -- -- -- -- -- --
U-25 Venture III Prior
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 ----------- ----------- ---------- ---------- ---------- --------- ---------- -------- -------- -------- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 18.620954 15.316149 12.500000 -- -- -- -- -- -- -- Value at End of Year 21.880081 18.620954 15.316149 -- -- -- -- -- -- -- Venture III No. of Units 41,955 16,569 6,809 -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 18.574672 15.300939 12.500000 -- -- -- -- -- -- -- Value at End of Year 21.792827 18.574672 15.300939 -- -- -- -- -- -- -- Venture III No. of Units 14,026 9,436 30,054 -- -- -- -- -- -- -- INTERNATIONAL SMALL CAP TRUST - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 25.044797 19.960658 18.468207 15.534502 10.206568 12.923106 -- -- -- -- Value at End of Year 27.070792 25.044797 19.960658 18.468207 15.534502 10.206568 -- -- -- -- Venture III No. of Units 530,150 523,687 551,672 508,429 316,160 137,846 -- -- -- -- NY Venture III No. of Units 23,128 29,375 25,055 22,890 7,350 4,073 -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 24.168787 19.272082 17.840011 15.013613 9.869257 12.500000 -- -- -- -- Value at End of Year 26.110792 24.168787 19.272082 17.840011 15.013613 9.869257 -- -- -- -- Venture III No. of Units 127,573 134,362 172,609 234,775 276,036 78,980 -- -- -- -- NY Venture III No. of Units 60,222 69,857 77,841 84,383 35,182 4,421 -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 24.001472 19.167310 17.769580 14.976847 9.859838 12.500000 -- -- -- -- Value at End of Year 25.890967 24.001472 19.167310 17.769580 14.976847 9.859838 -- -- -- -- Venture III No. of Units 314,851 325,857 333,776 354,469 157,210 9,734 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 23.945969 19.132518 17.746163 14.964601 9.856697 12.500000 -- -- -- -- Value at End of Year 25.818119 23.945969 19.132518 17.746163 14.964601 9.856697 -- -- -- -- Venture III No. of Units 29,045 26,277 43,454 69,407 66,406 46,421 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 28.633932 22.912379 21.283927 17.974839 12.500000 -- -- -- -- -- Value at End of Year 30.826091 28.633932 22.912379 21.283927 17.974839 -- -- -- -- -- Venture III No. of Units 14,624 19,159 25,876 28,603 14,669 -- -- -- -- -- INTERNATIONAL SMALL CAP TRUST - SERIES I SHARES (units first credited 8-01-2001) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year 25.522666 20.313661 18.755616 15.750610 10.334358 12.616712 13.367973 -- -- -- Value at End of Year 27.646646 25.522666 20.313661 18.755616 15.750610 10.334358 12.616712 -- -- -- Venture III No. of Units 39,408 36,757 47,391 64,365 59,349 57,816 13,083 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year 23.583850 18.779909 17.348142 14.575939 9.568402 11.687448 12.500000 -- -- -- Value at End of Year 25.533652 23.583850 18.779909 17.348142 14.575939 9.568402 11.687448 -- -- -- Venture III No. of Units 28,167 30,668 31,531 46,825 41,942 27,695 321 -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year 23.393153 18.655922 17.259400 14.523185 9.548061 11.680121 12.500000 -- -- -- Value at End of Year 25.289035 23.393153 18.655922 17.259400 14.523185 9.548061 11.680121 -- -- -- Venture III No. of Units 687 901 1,169 3,085 9,655 9,734 321 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 23.329894 18.614757 17.229899 14.505634 9.541288 11.677685 12.500000 -- -- -- Value at End of Year 25.207987 23.329894 18.614757 17.229899 14.505634 9.541288 11.677685 -- -- -- Venture III No. of Units 16,309 17,116 84,068 21,580 28,195 49,057 11,321 -- -- -- INTERNATIONAL VALUE TRUST - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 24.168284 19.005873 17.515517 14.671519 10.320663 13.194820 -- -- -- -- Value at End of Year 25.995262 24.168284 19.005873 17.515517 14.671519 10.320663 -- -- -- -- Venture III No. of Units 1,636,467 2,136,477 2,365,952 1,963,880 1,169,969 396,766 -- -- -- -- NY Venture III No. of Units 113,646 113,836 111,421 65,522 48,600 56,165 -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 22.842673 17.972367 16.571302 13.887566 9.774073 12.500000 -- -- -- -- Value at End of Year 24.557093 22.842673 17.972367 16.571302 13.887566 9.774073 -- -- -- -- Venture III No. of Units 859,755 1,275,306 1,778,386 1,776,210 1,735,805 872,145 -- -- -- -- NY Venture III No. of Units 167,119 219,452 274,198 239,822 155,887 40,129 -- -- -- --
U-26 Venture III Prior
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 ----------- ----------- ---------- ---------- ---------- --------- ---------- -------- -------- -------- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 22.684518 17.874645 16.505871 13.853534 9.764733 12.500000 -- -- -- -- Value at End of Year 24.350324 22.684518 17.874645 16.505871 13.853534 9.764733 -- -- -- -- Venture III No. of Units 951,421 1,309,416 1,308,769 1,011,065 524,999 13,226 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 22.632058 17.842191 16.484112 13.842199 9.761622 12.500000 -- -- -- -- Value at End of Year 24.281790 22.632058 17.842191 16.484112 13.842199 9.761622 -- -- -- -- Venture III No. of Units 170,936 202,221 247,003 151,299 168,196 97,871 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 28.131184 22.210653 20.550785 17.283080 12.500000 -- -- -- -- -- Value at End of Year 30.136303 28.131184 22.210653 20.550785 17.283080 -- -- -- -- -- Venture III No. of Units 97,883 127,272 120,713 62,710 38,651 -- -- -- -- -- INTERNATIONAL VALUE TRUST - SERIES I SHARES (units first credited 8-01-2001) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year 19.960650 15.658687 14.400513 12.045466 8.453467 10.459987 10.762649 -- -- -- Value at End of Year 21.502622 19.960650 15.658687 14.400513 12.045466 8.453467 10.459987 -- -- -- Venture III No. of Units 265,433 350,485 417,916 377,884 383,809 345,356 61,580 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year 22.782724 17.881443 16.452869 13.769068 9.667908 11.968682 12.500000 -- -- -- Value at End of Year 24.530369 22.782724 17.881443 16.452869 13.769068 9.667908 11.968682 -- -- -- Venture III No. of Units 232,842 304,004 348,919 283,755 286,750 288,965 4,571 -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year 22.598446 17.763346 16.368662 13.719209 9.647340 11.961174 12.500000 -- -- -- Value at End of Year 24.295291 22.598446 17.763346 16.368662 13.719209 9.647340 11.961174 -- -- -- Venture III No. of Units 21,454 24,927 29,355 7,261 9,676 13,226 4,571 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 22.537330 17.724137 16.340688 13.702625 9.640492 11.958679 12.500000 -- -- -- Value at End of Year 24.217417 22.537330 17.724137 16.340688 13.702625 9.640492 11.958679 -- -- -- Venture III No. of Units 64,452 89,461 126,013 104,824 116,289 97,258 12,424 -- -- -- INVESTMENT QUALITY BOND TRUST - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 14.857266 14.612716 14.560248 14.145464 13.410129 12.572482 -- -- -- -- Value at End of Year 15.477902 14.857266 14.612716 14.560248 14.145464 13.410129 -- -- -- -- Venture III No. of Units 2,683,110 2,448,788 1,409,281 788,314 688,538 287,878 -- -- -- -- NY Venture III No. of Units 732,403 689,638 401,675 46,103 38,438 36,633 -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 14.737426 14.502086 14.457233 14.052420 13.328579 12.500000 -- -- -- -- Value at End of Year 15.345332 14.737426 14.502086 14.457233 14.052420 13.328579 -- -- -- -- Venture III No. of Units 322,493 396,365 503,001 789,728 900,531 419,580 -- -- -- -- NY Venture III No. of Units 98,014 87,768 117,279 82,884 69,069 127,399 -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 14.635390 14.423226 14.400139 14.017992 13.315887 12.500000 -- -- -- -- Value at End of Year 15.216137 14.635390 14.423226 14.400139 14.017992 13.315887 -- -- -- -- Venture III No. of Units 1,455,125 1,379,440 742,543 424,978 261,061 25,767 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 14.601510 14.397011 14.381138 14.006517 13.311657 12.500000 -- -- -- -- Value at End of Year 15.173291 14.601510 14.397011 14.381138 14.006517 13.311657 -- -- -- -- Venture III No. of Units 47,538 68,692 59,544 85,289 137,550 78,495 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 13.198409 13.033043 13.038177 12.717659 12.500000 -- -- -- -- -- Value at End of Year 13.694575 13.198409 13.033043 13.038177 12.717659 -- -- -- -- -- Venture III No. of Units 37,746 40,606 35,487 33,403 15,991 -- -- -- -- -- INVESTMENT QUALITY BOND TRUST - SERIES I SHARES (units first credited 8-01-2001) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year 17.603593 17.279213 17.177225 16.662143 15.783782 14.596065 14.548528 -- -- -- Value at End of Year 18.388651 17.603593 17.279213 17.177225 16.662143 15.783782 14.596065 -- -- -- Venture III No. of Units 57,965 69,304 95,627 168,152 199,382 241,676 79,417 -- -- --
U-27 Venture III Prior
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 ----------- ----------- ---------- ---------- ---------- --------- ---------- -------- -------- -------- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year 15.097579 14.826768 14.746605 14.311576 13.563910 12.549501 12.500000 -- -- -- Value at End of Year 15.762954 15.097579 14.826768 14.746605 14.311576 13.563910 12.549501 -- -- -- Venture III No. of Units 79,167 101,409 145,901 203,908 281,029 338,463 36,249 -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year 14.975472 14.728863 14.671153 14.259793 13.535125 12.541663 12.500000 -- -- -- Value at End of Year 15.611907 14.975472 14.728863 14.671153 14.259793 13.535125 12.541663 -- -- -- Venture III No. of Units 7,421 7,248 7,439 11,049 13,473 25,767 36,249 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 14.935012 14.696388 14.646103 14.242579 13.525539 12.539051 12.500000 -- -- -- Value at End of Year 15.561908 14.935012 14.696388 14.646103 14.242579 13.525539 12.539051 -- -- -- Venture III No. of Units 94,249 103,652 119,558 147,811 164,404 223,041 70,365 -- -- -- LARGE CAP GROWTH TRUST (MERGED INTO CAPITAL APPRECIATION TRUST EFF 4-28-2006) - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year -- 12.081617 12.285043 11.782886 9.564734 11.840595 -- -- -- -- Value at End of Year -- 12.337955 12.081617 12.285043 11.782886 9.564734 -- -- -- -- Venture III No. of Units -- 14,380 1,329,866 1,476,772 1,240,492 437,895 -- -- -- -- NY Venture III No. of Units -- -- 88,515 86,595 59,592 48,413 -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year -- -- 12.952105 12.428913 10.094184 12.500000 -- -- -- -- Value at End of Year -- -- 12.731269 12.952105 12.428913 10.094184 -- -- -- -- Venture III No. of Units -- -- 1,053,481 1,213,022 1,301,240 635,202 -- -- -- -- NY Venture III No. of Units -- -- 358,362 398,919 325,705 54,024 -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year -- -- 12.900915 12.398438 10.084538 12.500000 -- -- -- -- Value at End of Year -- -- 12.661997 12.900915 12.398438 10.084538 -- -- -- -- Venture III No. of Units -- -- 568,378 611,324 45,555 13,459 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year -- -- 12.883936 12.388316 10.081330 12.500000 -- -- -- -- Value at End of Year -- -- 12.639036 12.883936 12.388316 10.081330 -- -- -- -- Venture III No. of Units -- -- 89,460 101,051 135,004 90,514 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year -- -- 15.214354 14.651116 12.500000 -- -- -- -- -- Value at End of Year -- -- 14.902853 15.214354 14.651116 -- -- -- -- -- Venture III No. of Units -- -- 45,580 32,842 26,494 -- -- -- -- -- LARGE CAP GROWTH TRUST (MERGED INTO CAPITAL APPRECIATION TRUST EFF 4-28-2006) - SERIES I SHARES (units first credited 8-01-2001) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year -- -- 15.587143 14.925307 12.107110 15.950869 17.312358 -- -- -- Value at End of Year -- -- 15.370201 15.587143 14.925307 12.107110 15.950869 -- -- -- Venture III No. of Units -- -- 265,189 347,545 379,071 420,217 109,977 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year -- -- 11.162316 10.693727 8.678872 11.439961 12.500000 -- -- -- Value at End of Year -- -- 11.001474 11.162316 10.693727 8.678872 11.439961 -- -- -- Venture III No. of Units -- -- 344,821 535,598 620,112 672,721 9,276 -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year -- -- 11.105180 10.654992 8.660404 11.432796 12.500000 -- -- -- Value at End of Year -- -- 10.928800 11.105180 10.654992 8.660404 11.432796 -- -- -- Venture III No. of Units -- -- 19,012 30,300 45,555 47,632 9,276 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year -- -- 11.086209 10.642123 8.654260 11.430412 12.500000 -- -- -- Value at End of Year -- -- 10.904690 11.086209 10.642123 8.654260 11.430412 -- -- -- Venture III No. of Units -- -- 226,691 254,429 251,384 370,673 40,103 -- -- -- LARGE CAP TRUST - SERIES II SHARES (units first credited 5-01-2005) Contracts with no Optional Benefits Value at Start of Year 15.464239 13.771538 12.500000 -- -- -- -- -- -- -- Value at End of Year 15.403139 15.464239 13.771538 -- -- -- -- -- -- -- Venture III No. of Units 210,981 9,102 3,117 -- -- -- -- -- -- -- NY Venture III No. of Units 3,523 -- -- -- -- -- -- -- -- --
U-28 Venture III Prior
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 ----------- ----------- ---------- ---------- ---------- --------- ---------- -------- -------- -------- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 15.451403 13.766971 12.500000 -- -- -- -- -- -- -- Value at End of Year 15.382615 15.451403 13.766971 -- -- -- -- -- -- -- Venture III No. of Units 249,447 8,948 3,843 -- -- -- -- -- -- -- NY Venture III No. of Units 10,966 175 176 -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 15.412990 13.753296 12.500000 -- -- -- -- -- -- -- Value at End of Year 15.321252 15.412990 13.753296 -- -- -- -- -- -- -- Venture III No. of Units 139,843 6,203 3,601 -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 15.386352 -- -- -- -- -- -- -- -- -- Value at End of Year 15.300838 -- -- -- -- -- -- -- -- -- Venture III No. of Units 39,921 -- -- -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 15.347784 -- -- -- -- -- -- -- -- -- Value at End of Year 15.239793 -- -- -- -- -- -- -- -- -- Venture III No. of Units 14,332 -- -- -- -- -- -- -- -- -- LARGE CAP VALUE TRUST - SERIES II SHARES (units first credited 5-05-2003) Contracts with no Optional Benefits Value at Start of Year 24.328781 21.366136 18.844382 15.764264 12.500000 -- -- -- -- -- Value at End of Year 24.929139 24.328781 21.366136 18.844382 15.764264 -- -- -- -- -- Venture III No. of Units 369,691 567,625 511,731 273,710 81,629 -- -- -- -- -- NY Venture III No. of Units 40,069 48,715 26,031 12,343 861 -- -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 24.284397 21.337786 18.828756 15.759084 12.500000 -- -- -- -- -- Value at End of Year 24.871156 24.284397 21.337786 18.828756 15.759084 -- -- -- -- -- Venture III No. of Units 167,980 233,528 171,268 91,834 7,623 -- -- -- -- -- NY Venture III No. of Units 27,911 41,153 27,951 19,031 11,164 -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 24.151759 21.253004 18.781986 15.743584 12.500000 -- -- -- -- -- Value at End of Year 24.698030 24.151759 21.253004 18.781986 15.743584 -- -- -- -- -- Venture III No. of Units 302,182 390,817 315,857 138,211 41,873 -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 24.107693 21.224802 18.766420 15.738428 12.500000 -- -- -- -- -- Value at End of Year 24.640576 24.107693 21.224802 18.766420 15.738428 -- -- -- -- -- Venture III No. of Units 44,661 124,578 60,611 26,724 498 -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 23.975972 21.140428 18.719780 15.722930 12.500000 -- -- -- -- -- Value at End of Year 24.469003 23.975972 21.140428 18.719780 15.722930 -- -- -- -- -- Venture III No. of Units 25,413 67,994 26,753 7,061 1,844 -- -- -- -- -- LIFESTYLE AGGRESSIVE TRUST (FORMERLY LIFESTYLE AGGRESSIVE 1000 TRUST) - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 18.641126 16.451344 15.138919 13.261867 9.993367 12.481030 -- -- -- -- Value at End of Year 19.875931 18.641126 16.451344 15.138919 13.261867 9.993367 -- -- -- -- Venture III No. of Units 3,167,682 3,951,950 3,739,525 3,500,583 1,645,281 174,966 -- -- -- -- NY Venture III No. of Units 218,345 222,271 211,686 202,664 123,453 65,066 -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 18.626277 16.446429 15.141947 13.271161 10.005369 12.500000 -- -- -- -- Value at End of Year 19.850108 18.626277 16.446429 15.141947 13.271161 10.005369 -- -- -- -- Venture III No. of Units 976,542 1,539,646 2,053,300 2,154,929 1,976,258 622,163 -- -- -- -- NY Venture III No. of Units 467,027 1,161,176 1,238,355 1,214,706 592,625 20,954 -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 18.497309 16.357014 15.082149 13.238642 9.995815 12.500000 -- -- -- -- Value at End of Year 19.682962 18.497309 16.357014 15.082149 13.238642 9.995815 -- -- -- -- Venture III No. of Units 2,295,079 3,224,882 3,479,824 3,436,912 1,576,341 19,680 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 18.454504 16.327296 15.062247 13.227795 9.992622 12.500000 -- -- -- -- Value at End of Year 19.627538 18.454504 16.327296 15.062247 13.227795 9.992622 -- -- -- -- Venture III No. of Units 133,141 218,831 228,050 250,519 219,644 99,657 -- -- -- --
U-29 Venture III Prior
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 ----------- ----------- ---------- ---------- ---------- --------- ---------- -------- -------- -------- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 22.129911 19.608352 18.116158 15.933705 12.500000 -- -- -- -- -- Value at End of Year 23.501099 22.129911 19.608352 18.116158 15.933705 -- -- -- -- -- Venture III No. of Units 266,055 351,055 370,668 388,358 223,845 -- -- -- -- -- LIFESTYLE AGGRESSIVE TRUST (FORMERLY LIFESTYLE AGGRESSIVE 1000 TRUST) - SERIES I SHARES (units first credited 8-01-2001) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year 18.350949 16.157401 14.846236 13.005463 9.800163 12.565579 13.142476 -- -- -- Value at End of Year 19.592323 18.350949 16.157401 14.846236 13.005463 9.800163 12.565579 -- -- -- Venture III No. of Units 198,439 211,684 204,235 303,369 188,984 190,227 25,184 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year 17.262798 15.206907 13.979846 12.252635 9.237487 11.850047 12.500000 -- -- -- Value at End of Year 18.421294 17.262798 15.206907 13.979846 12.252635 9.237487 11.850047 -- -- -- Venture III No. of Units 211,714 331,015 335,991 397,658 325,147 292,431 1,949 -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year 17.123186 15.106492 13.908310 12.208281 9.217842 11.842624 12.500000 -- -- -- Value at End of Year 18.244776 17.123186 15.106492 13.908310 12.208281 9.217842 11.842624 -- -- -- Venture III No. of Units 13,443 13,443 14,607 14,773 14,728 19,680 1,949 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 17.076860 15.073143 13.884521 12.193514 9.211296 11.840156 12.500000 -- -- -- Value at End of Year 18.186272 17.076860 15.073143 13.884521 12.193514 9.211296 11.840156 -- -- -- Venture III No. of Units 52,104 248,846 109,718 140,531 122,785 120,911 19,005 -- -- -- LIFESTYLE BALANCED TRUST (FORMERLY LIFESTYLE BALANCED 640 TRUST) - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 17.683960 15.979079 15.209160 13.634469 11.180582 12.327537 -- -- -- -- Value at End of Year 18.482582 17.683960 15.979079 15.209160 13.634469 11.180582 -- -- -- -- Venture III No. of Units 175,395,483 144,947,752 94,296,454 37,702,364 10,629,539 1,901,755 -- -- -- -- NY Venture III No. of Units 9,408,903 7,525,973 4,738,222 1,650,704 555,532 168,815 -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 17.889904 16.173228 15.401622 13.813917 11.333399 12.500000 -- -- -- -- Value at End of Year 18.688431 17.889904 16.173228 15.401622 13.813917 11.333399 -- -- -- -- Venture III No. of Units 6,464,214 8,269,917 9,920,421 9,759,355 9,000,114 2,866,630 -- -- -- -- NY Venture III No. of Units 4,238,871 5,084,282 5,378,750 3,354,894 1,316,951 486,764 -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 17.766037 16.085280 15.340795 13.780067 11.322585 12.500000 -- -- -- -- Value at End of Year 18.531063 17.766037 16.085280 15.340795 13.780067 11.322585 -- -- -- -- Venture III No. of Units 96,407,643 82,807,828 55,966,479 25,445,741 7,057,793 183,344 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 17.724929 16.056061 15.320561 13.768789 11.318976 12.500000 -- -- -- -- Value at End of Year 18.478899 17.724929 16.056061 15.320561 13.768789 11.318976 -- -- -- -- Venture III No. of Units 1,216,107 1,579,146 2,092,464 2,147,299 1,902,040 640,910 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 18.603997 16.877598 16.128566 14.516768 12.500000 -- -- -- -- -- Value at End of Year 19.366137 18.603997 16.877598 16.128566 14.516768 -- -- -- -- -- Venture III No. of Units 3,356,916 3,861,646 3,369,127 2,197,134 1,035,517 -- -- -- -- -- LIFESTYLE BALANCED TRUST (FORMERLY LIFESTYLE BALANCED 640 TRUST) - SERIES I SHARES (units first credited 8-01-2001) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year 21.428160 19.323172 18.378638 16.463825 13.500740 15.242085 15.555750 -- -- -- Value at End of Year 22.439424 21.428160 19.323172 18.378638 16.463825 13.500740 15.242085 -- -- -- Venture III No. of Units 1,426,261 1,679,197 1,774,783 2,007,240 1,711,418 1,494,115 306,070 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year 17.115932 15.442248 14.694746 13.170349 10.805397 12.205200 12.500000 -- -- -- Value at End of Year 17.914691 17.115932 15.442248 14.694746 13.170349 10.805397 12.205200 -- -- -- Venture III No. of Units 1,676,411 1,864,446 1,992,227 2,277,577 2,120,763 1,798,668 6,123 -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year 16.977513 15.340293 14.619557 13.122672 10.782427 12.197559 12.500000 -- -- -- Value at End of Year 17.743022 16.977513 15.340293 14.619557 13.122672 10.782427 12.197559 -- -- -- Venture III No. of Units 192,489 213,874 231,639 187,058 161,405 183,344 6,123 -- -- --
U-30 Venture III Prior
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 ----------- ----------- ---------- ---------- ---------- --------- ---------- -------- -------- -------- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 16.931594 15.306429 14.594574 13.106824 10.774795 12.195023 12.500000 -- -- -- Value at End of Year 17.686130 16.931594 15.306429 14.594574 13.106824 10.774795 12.195023 -- -- -- Venture III No. of Units 846,164 1,088,237 1,403,312 1,504,706 1,375,475 1,136,156 245,748 -- -- -- LIFESTYLE CONSERVATIVE TRUST (FORMERLY LIFESTYLE CONSERVATIVE 280 TRUST) - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 15.778569 14.834829 14.669371 13.744482 12.526309 12.551523 -- -- -- -- Value at End of Year 16.321823 15.778569 14.834829 14.669371 13.744482 12.526309 -- -- -- -- Venture III No. of Units 15,451,718 11,332,448 9,393,143 5,445,174 2,396,267 439,049 -- -- -- -- NY Venture III No. of Units 977,809 766,116 504,755 207,725 133,615 54,752 -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 15.677437 14.747100 14.589891 13.676874 12.470921 12.500000 -- -- -- -- Value at End of Year 16.209057 15.677437 14.747100 14.589891 13.676874 12.470921 -- -- -- -- Venture III No. of Units 734,284 810,075 1,164,691 1,468,065 1,727,749 785,173 -- -- -- -- NY Venture III No. of Units 554,030 722,780 684,576 292,196 191,143 237,071 -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 15.568876 14.666899 14.532273 13.643360 12.459034 12.500000 -- -- -- -- Value at End of Year 16.072557 15.568876 14.666899 14.532273 13.643360 12.459034 -- -- -- -- Venture III No. of Units 6,487,890 4,920,253 3,457,488 2,136,364 878,833 11,178 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 15.532843 14.640250 14.513110 13.632204 12.455071 12.500000 -- -- -- -- Value at End of Year 16.027304 15.532843 14.640250 14.513110 13.632204 12.455071 -- -- -- -- Venture III No. of Units 162,235 206,170 259,431 257,387 365,880 221,760 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 15.036366 14.193526 14.091319 13.255928 12.500000 -- -- -- -- -- Value at End of Year 15.491650 15.036366 14.193526 14.091319 13.255928 -- -- -- -- -- Venture III No. of Units 387,319 474,461 567,074 280,001 145,481 -- -- -- -- -- LIFESTYLE CONSERVATIVE TRUST (FORMERLY LIFESTYLE CONSERVATIVE 280 TRUST) - SERIES I SHARES (units first credited 8-01-2001) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year 20.864642 19.560572 19.327860 18.096503 16.492074 16.482670 16.436319 -- -- -- Value at End of Year 21.625223 20.864642 19.560572 19.327860 18.096503 16.492074 16.482670 -- -- -- Venture III No. of Units 182,846 186,546 275,146 314,008 390,941 450,477 132,143 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year 15.800718 14.820541 14.651524 13.724973 12.514382 12.513503 12.500000 -- -- -- Value at End of Year 16.368469 15.800718 14.820541 14.651524 13.724973 12.514382 12.513503 -- -- -- Venture III No. of Units 263,358 250,578 230,460 304,138 368,076 394,634 4,879 -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year 15.672934 14.722676 14.576568 13.675309 12.487808 12.505683 12.500000 -- -- -- Value at End of Year 16.211642 15.672934 14.722676 14.576568 13.675309 12.487808 12.505683 -- -- -- Venture III No. of Units 3,600 3,600 5,251 7,153 9,355 11,178 4,879 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 15.630568 14.690205 14.551671 13.658793 12.478970 12.503081 12.500000 -- -- -- Value at End of Year 16.159688 15.630568 14.690205 14.551671 13.658793 12.478970 12.503081 -- -- -- Venture III No. of Units 89,295 78,538 98,194 113,234 96,118 138,479 71,318 -- -- -- LIFESTYLE GROWTH TRUST (FORMERLY LIFESTYLE GROWTH 820 TRUST) - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 17.989081 16.143470 15.124169 13.417365 10.537942 12.345414 -- -- -- -- Value at End of Year 18.977428 17.989081 16.143470 15.124169 13.417365 10.537942 -- -- -- -- Venture III No. of Units 217,127,345 178,248,910 96,307,550 37,246,678 9,147,664 1,221,069 -- -- -- -- NY Venture III No. of Units 11,824,648 8,891,714 3,888,784 1,885,475 508,291 49,114 -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 18.172203 16.315932 15.293355 13.574266 10.666497 12.500000 -- -- -- -- Value at End of Year 19.160985 18.172203 16.315932 15.293355 13.574266 10.666497 -- -- -- -- Venture III No. of Units 5,829,855 7,198,032 8,510,674 8,582,094 7,642,690 2,318,975 -- -- -- -- NY Venture III No. of Units 4,235,285 5,105,055 4,979,384 3,205,885 1,015,744 324,491 -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 18.046363 16.227210 15.232955 13.540994 10.656315 12.500000 -- -- -- -- Value at End of Year 18.999627 18.046363 16.227210 15.232955 13.540994 10.656315 -- -- -- -- Venture III No. of Units 141,935,228 119,503,584 66,073,107 27,495,124 6,423,351 75,942 -- -- -- --
U-31 Venture III Prior
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 ----------- ----------- ---------- ---------- ---------- --------- ---------- -------- -------- -------- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 18.004608 16.197734 15.212876 13.529929 10.652927 12.500000 -- -- -- -- Value at End of Year 18.946131 18.004608 16.197734 15.212876 13.529929 10.652927 -- -- -- -- Venture III No. of Units 1,130,645 1,448,763 1,619,428 1,741,522 1,520,746 631,146 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 20.104498 18.113956 17.038038 15.175979 12.500000 -- -- -- -- -- Value at End of Year 21.123947 20.104498 18.113956 17.038038 15.175979 -- -- -- -- -- Venture III No. of Units 3,265,652 3,745,256 2,896,914 1,650,078 756,310 -- -- -- -- -- LIFESTYLE GROWTH TRUST (FORMERLY LIFESTYLE GROWTH 820 TRUST) - SERIES I SHARES (units first credited 8-01-2001) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year 20.311120 18.192018 17.019485 15.100432 11.849829 14.315720 14.735583 -- -- -- Value at End of Year 21.479795 20.311120 18.192018 17.019485 15.100432 11.849829 14.315720 -- -- -- Venture III No. of Units 968,318 1,260,618 1,372,384 1,371,887 1,278,452 1,181,524 286,359 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year 17.079916 15.305550 14.326199 12.717199 9.984603 12.068379 12.500000 -- -- -- Value at End of Year 18.053594 17.079916 15.305550 14.326199 12.717199 9.984603 12.068379 -- -- -- Venture III No. of Units 1,538,251 1,803,470 1,929,805 2,209,873 1,906,901 1,801,133 6,575 -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year 16.941748 15.204461 14.252881 12.671161 9.963377 12.060834 12.500000 -- -- -- Value at End of Year 17.880560 16.941748 15.204461 14.252881 12.671161 9.963377 12.060834 -- -- -- Venture III No. of Units 53,710 80,911 105,686 68,477 63,807 75,942 6,575 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 16.895948 15.170921 14.228530 12.655845 9.956305 12.058318 12.500000 -- -- -- Value at End of Year 17.823269 16.895948 15.170921 14.228530 12.655845 9.956305 12.058318 -- -- -- Venture III No. of Units 614,788 1,020,418 959,607 1,053,932 966,730 823,238 148,069 -- -- -- LIFESTYLE MODERATE TRUST (FORMERLY LIFESTYLE MODERATE 460 TRUST) - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 16.631475 15.345154 14.999837 13.733715 11.849812 12.455604 -- -- -- -- Value at End of Year 17.189671 16.631475 15.345154 14.999837 13.733715 11.849812 -- -- -- -- Venture III No. of Units 39,400,814 32,031,060 23,696,672 11,582,654 4,375,936 898,122 -- -- -- -- NY Venture III No. of Units 2,223,182 1,663,651 972,142 564,943 215,066 81,435 -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 16.652186 15.371921 15.033490 13.771413 11.888265 12.500000 -- -- -- -- Value at End of Year 17.202429 16.652186 15.371921 15.033490 13.771413 11.888265 -- -- -- -- Venture III No. of Units 2,000,045 2,474,041 2,947,609 3,473,439 3,593,850 1,246,184 -- -- -- -- NY Venture III No. of Units 1,439,735 1,645,168 1,665,305 998,003 387,094 214,108 -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 16.536852 15.288301 14.974101 13.737664 11.876927 12.500000 -- -- -- -- Value at End of Year 17.057546 16.536852 15.288301 14.974101 13.737664 11.876927 -- -- -- -- Venture III No. of Units 18,541,134 15,782,723 10,558,478 5,301,216 1,857,801 34,204 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 16.498632 15.260576 14.954394 13.726448 11.873154 12.500000 -- -- -- -- Value at End of Year 17.009566 16.498632 15.260576 14.954394 13.726448 11.873154 -- -- -- -- Venture III No. of Units 280,148 367,012 536,227 649,668 587,221 279,254 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 16.614587 15.390838 15.104613 13.885213 12.500000 -- -- -- -- -- Value at End of Year 17.103296 16.614587 15.390838 15.104613 13.885213 -- -- -- -- -- Venture III No. of Units 775,469 871,648 986,641 712,600 327,981 -- -- -- -- -- LIFESTYLE MODERATE TRUST (FORMERLY LIFESTYLE MODERATE 460 TRUST) - SERIES I SHARES (units first credited 8-01-2001) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year 21.252207 19.566797 19.098413 17.486321 15.087623 15.984331 16.172399 -- -- -- Value at End of Year 22.008601 21.252207 19.566797 19.098413 17.486321 15.087623 15.984331 -- -- -- Venture III No. of Units 366,149 448,294 528,972 635,589 624,029 557,523 115,445 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year 16.342275 15.053744 14.700722 13.466590 11.625111 12.322172 12.500000 -- -- -- Value at End of Year 16.915413 16.342275 15.053744 14.700722 13.466590 11.625111 12.322172 -- -- -- Venture III No. of Units 441,138 533,594 638,792 744,900 783,613 851,567 8,967 -- -- --
U-32 Venture III Prior
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 ----------- ----------- ---------- ---------- ---------- --------- ---------- -------- -------- -------- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year 16.210086 14.954326 14.625498 13.417828 11.600405 12.314464 12.500000 -- -- -- Value at End of Year 16.753300 16.210086 14.954326 14.625498 13.417828 11.600405 12.314464 -- -- -- Venture III No. of Units 24,345 27,267 24,007 21,112 36,387 34,204 8,967 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 16.166273 14.921341 14.600514 13.401637 11.592190 12.311897 12.500000 -- -- -- Value at End of Year 16.699627 16.166273 14.921341 14.600514 13.401637 11.592190 12.311897 -- -- -- Venture III No. of Units 192,207 279,300 288,994 372,448 511,850 500,929 159,770 -- -- -- MID CAP CORE TRUST (MERGED INTO MID CAP INDEX TRUST EFF 12-01-2006) - SERIES II SHARES (units first credited 5-05-2003) Contracts with no Optional Benefits Value at Start of Year -- -- 16.990840 15.135149 12.500000 -- -- -- -- -- Value at End of Year -- -- 17.697987 16.990840 15.135149 -- -- -- -- -- Venture III No. of Units -- -- 387,718 343,304 201,343 -- -- -- -- -- NY Venture III No. of Units -- -- 29,763 40,501 20,504 -- -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year -- -- 16.976776 15.130185 12.500000 -- -- -- -- -- Value at End of Year -- -- 17.674522 16.976776 15.130185 -- -- -- -- -- Venture III No. of Units -- -- 63,822 89,751 48,056 -- -- -- -- -- NY Venture III No. of Units -- -- 41,745 98,814 51,742 -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year -- -- 16.934560 15.115286 12.500000 -- -- -- -- -- Value at End of Year -- -- 17.604230 16.934560 15.115286 -- -- -- -- -- Venture III No. of Units -- -- 221,679 243,114 110,465 -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year -- -- 16.920510 15.110324 12.500000 -- -- -- -- -- Value at End of Year -- -- 17.580858 16.920510 15.110324 -- -- -- -- -- Venture III No. of Units -- -- 7,503 12,799 8,264 -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year -- -- 16.878461 15.095447 12.500000 -- -- -- -- -- Value at End of Year -- -- 17.510952 16.878461 15.095447 -- -- -- -- -- Venture III No. of Units -- -- 23,820 22,544 16,944 -- -- -- -- -- MID CAP INDEX TRUST - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 18.588250 17.266146 15.701105 13.803063 10.446948 13.063020 -- -- -- -- Value at End of Year 19.622979 18.588250 17.266146 15.701105 13.803063 10.446948 -- -- -- -- Venture III No. of Units 668,289 948,753 777,606 789,337 578,414 153,193 -- -- -- -- NY Venture III No. of Units 42,752 68,563 45,505 42,610 23,420 35,062 -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 17.745959 16.491984 15.004583 13.197348 9.993492 12.500000 -- -- -- -- Value at End of Year 18.724370 17.745959 16.491984 15.004583 13.197348 9.993492 -- -- -- -- Venture III No. of Units 364,692 438,383 524,786 605,135 632,676 346,118 -- -- -- -- NY Venture III No. of Units 103,360 139,280 115,037 119,148 72,672 26,727 -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 17.623083 16.402310 14.945326 13.165014 9.983954 12.500000 -- -- -- -- Value at End of Year 18.566702 17.623083 16.402310 14.945326 13.165014 9.983954 -- -- -- -- Venture III No. of Units 572,126 678,826 515,525 511,084 295,326 1,169 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 17.582301 16.372512 14.925609 13.154235 9.980766 12.500000 -- -- -- -- Value at End of Year 18.514422 17.582301 16.372512 14.925609 13.154235 9.980766 -- -- -- -- Venture III No. of Units 28,565 53,385 72,368 106,929 110,364 59,448 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 21.143110 19.717803 18.002151 15.889526 12.500000 -- -- -- -- -- Value at End of Year 22.230459 21.143110 19.717803 18.002151 15.889526 -- -- -- -- -- Venture III No. of Units 37,610 48,679 27,551 21,883 18,378 -- -- -- -- -- MID CAP INDEX TRUST - SERIES I SHARES (units first credited 8-01-2001) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year 19.164306 17.757013 16.114510 14.144608 10.685918 12.805647 12.923685 -- -- -- Value at End of Year 20.264949 19.164306 17.757013 16.114510 14.144608 10.685918 12.805647 -- -- -- Venture III No. of Units 92,379 122,584 132,888 152,792 202,602 161,361 28,983 -- -- --
U-33 Venture III Prior
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 ----------- ----------- ---------- ---------- ---------- --------- ---------- -------- -------- -------- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year 18.387203 17.045469 15.476488 13.591381 10.273100 12.317115 12.500000 -- -- -- Value at End of Year 19.433446 18.387203 17.045469 15.476488 13.591381 10.273100 12.317115 -- -- -- Venture III No. of Units 119,657 149,371 191,144 260,098 271,347 258,651 3,203 -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year 18.238478 16.932924 15.397313 13.542198 10.251258 12.309409 12.500000 -- -- -- Value at End of Year 19.247202 18.238478 16.932924 15.397313 13.542198 10.251258 12.309409 -- -- -- Venture III No. of Units 5,687 7,060 6,992 6,949 7,126 1,169 3,203 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 18.189161 16.895556 15.370988 13.525824 10.243985 12.306843 12.500000 -- -- -- Value at End of Year 19.185514 18.189161 16.895556 15.370988 13.525824 10.243985 12.306843 -- -- -- Venture III No. of Units 46,444 61,027 68,406 76,236 75,013 111,154 16,546 -- -- -- MID CAP INTERSECTION TRUST - SERIES II SHARES (units first credited 5-01-2007) Contracts with no Optional Benefits Value at Start of Year 12.500000 -- -- -- -- -- -- -- -- -- Value at End of Year 11.492455 -- -- -- -- -- -- -- -- -- Venture III No. of Units 22,484 -- -- -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 12.500000 -- -- -- -- -- -- -- -- -- Value at End of Year 11.488617 -- -- -- -- -- -- -- -- -- Venture III No. of Units 9,233 -- -- -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 12.500000 -- -- -- -- -- -- -- -- -- Value at End of Year 11.477096 -- -- -- -- -- -- -- -- -- Venture III No. of Units 28,302 -- -- -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 12.500000 -- -- -- -- -- -- -- -- -- Value at End of Year 11.473251 -- -- -- -- -- -- -- -- -- Venture III No. of Units 183 -- -- -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 12.500000 -- -- -- -- -- -- -- -- -- Value at End of Year 11.461746 -- -- -- -- -- -- -- -- -- MID CAP STOCK TRUST - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 19.634726 17.616489 15.651048 13.399635 9.595389 11.871001 -- -- -- -- Value at End of Year 23.821451 19.634726 17.616489 15.651048 13.399635 9.595389 -- -- -- -- Venture III No. of Units 1,745,175 1,969,886 2,162,180 1,750,637 1,301,845 270,179 -- -- -- -- NY Venture III No. of Units 73,201 81,808 78,688 55,175 33,593 33,898 -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 20.627270 18.516250 16.458620 14.098106 10.100601 12.500000 -- -- -- -- Value at End of Year 25.013074 20.627270 18.516250 16.458620 14.098106 10.100601 -- -- -- -- Venture III No. of Units 664,861 876,479 1,190,521 1,043,898 1,108,921 470,778 -- -- -- -- NY Venture III No. of Units 154,535 192,866 231,243 194,931 112,955 47,469 -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 20.484464 18.415590 16.393632 14.063561 10.090950 12.500000 -- -- -- -- Value at End of Year 24.802476 20.484464 18.415590 16.393632 14.063561 10.090950 -- -- -- -- Venture III No. of Units 1,048,264 1,204,656 1,352,596 1,054,442 634,970 2,327 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 20.437053 18.382133 16.372012 14.052054 10.087730 12.500000 -- -- -- -- Value at End of Year 24.732638 20.437053 18.382133 16.372012 14.052054 10.087730 -- -- -- -- Venture III No. of Units 180,300 108,062 146,800 128,480 130,373 76,387 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 22.684520 20.434180 18.226877 15.667622 12.500000 -- -- -- -- -- Value at End of Year 27.411128 22.684520 20.434180 18.226877 15.667622 -- -- -- -- -- Venture III No. of Units 137,705 121,643 124,862 110,240 61,204 -- -- -- -- -- MID CAP STOCK TRUST - SERIES I SHARES (units first credited 8-01-2001) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year 16.197229 14.501747 12.867467 10.989664 7.849726 10.305876 10.223407 -- -- -- Value at End of Year 19.686116 16.197229 14.501747 12.867467 10.989664 7.849726 10.305876 -- -- -- Venture III No. of Units 296,237 370,523 494,884 378,185 398,229 349,686 81,844 -- -- --
U-34 Venture III Prior
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 ----------- ----------- ---------- ---------- ---------- --------- ---------- -------- -------- -------- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year 19.585300 17.543915 15.574551 13.308373 9.510684 12.492798 12.500000 -- -- -- Value at End of Year 23.792013 19.585300 17.543915 15.574551 13.308373 9.510684 12.492798 -- -- -- Venture III No. of Units 277,918 363,977 472,099 465,827 519,332 411,914 6,547 -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year 19.426825 17.428009 15.494815 13.260165 9.490451 12.484975 12.500000 -- -- -- Value at End of Year 23.563952 19.426825 17.428009 15.494815 13.260165 9.490451 12.484975 -- -- -- Venture III No. of Units 6,839 7,499 9,418 9,400 23,248 11,558 6,547 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 14.965469 17.389576 15.468345 13.244140 9.483712 12.482364 12.500000 -- -- -- Value at End of Year 23.488465 14.965469 17.389576 15.468345 13.244140 9.483712 12.482364 -- -- -- Venture III No. of Units 119,748 217,859 207,376 214,910 285,760 195,459 53,822 -- -- -- MID CAP VALUE TRUST - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 20.071809 18.213594 17.182183 14.063217 11.425215 13.178405 -- -- -- -- Value at End of Year 19.841181 20.071809 18.213594 17.182183 14.063217 11.425215 -- -- -- -- Venture III No. of Units 1,458,156 2,100,363 2,676,295 2,841,264 1,871,116 691,652 -- -- -- -- NY Venture III No. of Units 101,303 121,906 138,879 121,447 69,806 91,791 -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 18.994497 17.244617 16.276189 13.328360 10.833606 12.500000 -- -- -- -- Value at End of Year 18.766813 18.994497 17.244617 16.276189 13.328360 10.833606 -- -- -- -- Venture III No. of Units 927,777 1,285,793 1,936,626 2,299,574 2,359,949 1,190,734 -- -- -- -- NY Venture III No. of Units 223,183 332,855 427,207 391,738 225,965 112,237 -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 18.862992 17.150869 16.211925 13.295703 10.823274 12.500000 -- -- -- -- Value at End of Year 18.608784 18.862992 17.150869 16.211925 13.295703 10.823274 -- -- -- -- Venture III No. of Units 977,612 1,446,695 1,746,231 1,709,773 891,759 44,437 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 18.819365 17.119736 16.190566 13.284836 10.819828 12.500000 -- -- -- -- Value at End of Year 18.556423 18.819365 17.119736 16.190566 13.284836 10.819828 -- -- -- -- Venture III No. of Units 168,958 294,001 365,042 496,235 470,354 274,196 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 21.996393 20.039781 18.980491 15.597483 12.500000 -- -- -- -- -- Value at End of Year 21.656355 21.996393 20.039781 18.980491 15.597483 -- -- -- -- -- Venture III No. of Units 61,614 129,057 147,276 150,617 88,023 -- -- -- -- -- MID CAP VALUE TRUST - SERIES I SHARES (units first credited 8-01-2001) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year 20.272240 18.356318 17.278144 14.113941 11.446104 12.945151 12.507840 -- -- -- Value at End of Year 20.077281 20.272240 18.356318 17.278144 14.113941 11.446104 12.945151 -- -- -- Venture III No. of Units 282,157 391,450 472,621 667,733 692,949 725,241 151,681 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year 20.286404 18.378308 17.307471 14.144985 11.477020 12.986625 12.500000 -- -- -- Value at End of Year 20.081219 20.286404 18.378308 17.307471 14.144985 11.477020 12.986625 -- -- -- Venture III No. of Units 346,285 468,765 621,742 782,002 810,601 869,847 11,864 -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year 20.122333 18.256956 17.218926 14.093791 11.452627 12.978503 12.500000 -- -- -- Value at End of Year 19.888775 20.122333 18.256956 17.218926 14.093791 11.452627 12.978503 -- -- -- Venture III No. of Units 12,237 18,412 20,289 37,560 40,962 44,437 11,864 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 20.067949 18.216689 17.189511 14.076760 11.444511 12.975798 12.500000 -- -- -- Value at End of Year 19.825058 20.067949 18.216689 17.189511 14.076760 11.444511 12.975798 -- -- -- Venture III No. of Units 98,224 144,280 292,470 375,914 274,159 264,964 63,706 -- -- -- MID VALUE TRUST - SERIES II SHARES (units first credited 4-29-2005) Contracts with no Optional Benefits Value at Start of Year 16.484199 13.958589 12.500000 -- -- -- -- -- -- -- Value at End of Year 16.262812 16.484199 13.958589 -- -- -- -- -- -- -- Venture III No. of Units 87,651 99,300 37,150 -- -- -- -- -- -- -- NY Venture III No. of Units 16,228 17,216 1,266 -- -- -- -- -- -- --
U-35 Venture III Prior
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 ----------- ----------- ---------- ---------- ---------- --------- ---------- -------- -------- -------- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 16.470526 13.953971 12.500000 -- -- -- -- -- -- -- Value at End of Year 16.241162 16.470526 13.953971 -- -- -- -- -- -- -- Venture III No. of Units 34,723 36,130 20,183 -- -- -- -- -- -- -- NY Venture III No. of Units 1,662 4,759 1,128 -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 16.429585 13.940107 12.500000 -- -- -- -- -- -- -- Value at End of Year 16.176368 16.429585 13.940107 -- -- -- -- -- -- -- Venture III No. of Units 51,710 71,461 23,834 -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 16.415952 13.935495 12.500000 -- -- -- -- -- -- -- Value at End of Year 16.154820 16.415952 13.935495 -- -- -- -- -- -- -- Venture III No. of Units 4,458 8,964 14,364 -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 16.375135 13.921653 12.500000 -- -- -- -- -- -- -- Value at End of Year 16.090360 16.375135 13.921653 -- -- -- -- -- -- -- Venture III No. of Units 11,149 9,429 9,333 -- -- -- -- -- -- -- MONEY MARKET TRUST - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 12.540461 12.230815 12.135513 12.263567 12.420152 12.476982 -- -- -- -- Value at End of Year 12.871071 12.540461 12.230815 12.135513 12.263567 12.420152 -- -- -- -- Venture III No. of Units 9,799,567 7,771,103 4,457,608 2,613,385 2,483,355 1,435,813 -- -- -- -- NY Venture III No. of Units 773,035 609,764 386,402 361,164 222,804 200,546 -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 12.534527 12.231129 12.141864 12.276141 12.439109 12.500000 -- -- -- -- Value at End of Year 12.858525 12.534527 12.231129 12.141864 12.276141 12.439109 -- -- -- -- Venture III No. of Units 1,159,215 1,287,045 1,477,736 1,517,588 2,110,911 1,967,421 -- -- -- -- NY Venture III No. of Units 609,898 489,008 206,103 122,567 313,967 565,393 -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 12.447715 12.164600 12.093901 12.246054 12.427253 12.500000 -- -- -- -- Value at End of Year 12.750227 12.447715 12.164600 12.093901 12.246054 12.427253 -- -- -- -- Venture III No. of Units 5,498,000 4,847,943 2,706,502 1,411,618 731,580 61,394 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 12.418910 12.142504 12.077955 12.236045 12.423303 12.500000 -- -- -- -- Value at End of Year 12.714328 12.418910 12.142504 12.077955 12.236045 12.423303 -- -- -- -- Venture III No. of Units 164,350 155,929 309,180 363,462 228,877 363,599 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 12.486443 12.226792 12.180008 12.357999 12.500000 -- -- -- -- -- Value at End of Year 12.764190 12.486443 12.226792 12.180008 12.357999 -- -- -- -- -- Venture III No. of Units 350,062 264,448 404,852 301,161 179,964 -- -- -- -- -- MONEY MARKET TRUST - SERIES I SHARES (units first credited 8-01-2001) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year 13.062034 12.714084 12.589853 12.697270 12.833898 12.895798 12.857677 -- -- -- Value at End of Year 13.433220 13.062034 12.714084 12.589853 12.697270 12.833898 12.895798 -- -- -- Venture III No. of Units 267,379 259,114 322,364 431,108 739,705 1,453,977 651,917 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year 12.663807 12.332616 12.218199 12.328626 12.467518 12.533918 12.500000 -- -- -- Value at End of Year 13.017131 12.663807 12.332616 12.218199 12.328626 12.467518 12.533918 -- -- -- Venture III No. of Units 385,611 428,404 564,750 646,844 813,415 1,722,514 121,926 -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year 12.561398 12.251186 12.155704 12.284027 12.441060 12.526094 12.500000 -- -- -- Value at End of Year 12.892408 12.561398 12.251186 12.155704 12.284027 12.441060 12.526094 -- -- -- Venture III No. of Units 12,652 10,646 29,552 62,791 39,223 61,394 121,926 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 12.527425 12.224145 12.134914 12.269168 12.432238 12.523480 12.500000 -- -- -- Value at End of Year 12.851071 12.527425 12.224145 12.134914 12.269168 12.432238 12.523480 -- -- -- Venture III No. of Units 107,786 127,270 185,651 170,388 166,699 863,062 551,853 -- -- --
U-36 Venture III Prior
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 ----------- ----------- ---------- ---------- ---------- --------- ---------- -------- -------- -------- NATURAL RESOURCES TRUST - SERIES II SHARES (units first credited 5-05-2003) Contracts with no Optional Benefits Value at Start of Year 37.521393 31.256944 21.701596 17.786425 12.500000 -- -- -- -- -- Value at End of Year 51.827047 37.521393 31.256944 21.701596 17.786425 -- -- -- -- -- Venture III No. of Units 703,323 724,103 679,763 491,491 118,335 -- -- -- -- -- NY Venture III No. of Units 35,730 39,141 36,487 24,341 11,654 -- -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 37.452987 31.215522 21.683626 17.780593 12.500000 -- -- -- -- -- Value at End of Year 51.706546 37.452987 31.215522 21.683626 17.780593 -- -- -- -- -- Venture III No. of Units 342,562 437,418 510,142 363,500 217,836 -- -- -- -- -- NY Venture III No. of Units 57,249 63,128 70,979 49,771 20,424 -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 37.248500 31.091556 21.629775 17.763098 12.500000 -- -- -- -- -- Value at End of Year 51.346740 37.248500 31.091556 21.629775 17.763098 -- -- -- -- -- Venture III No. of Units 447,709 524,349 554,874 420,594 127,146 -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 37.180576 31.050333 21.611852 17.757275 12.500000 -- -- -- -- -- Value at End of Year 51.227337 37.180576 31.050333 21.611852 17.757275 -- -- -- -- -- Venture III No. of Units 55,676 73,379 88,906 50,175 31,605 -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 36.977563 30.927015 21.558188 17.739809 12.500000 -- -- -- -- -- Value at End of Year 50.870848 36.977563 30.927015 21.558188 17.739809 -- -- -- -- -- Venture III No. of Units 63,459 70,112 73,708 28,858 5,467 -- -- -- -- -- OVERSEAS EQUITY TRUST - SERIES II SHARES (units first credited 4-29-2005) Contracts with no Optional Benefits Value at Start of Year 17.811590 15.134751 12.500000 -- -- -- -- -- -- -- Value at End of Year 19.657624 17.811590 15.134751 -- -- -- -- -- -- -- Venture III No. of Units 42,097 52,618 64,770 -- -- -- -- -- -- -- NY Venture III No. of Units 6,842 9,960 -- -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 17.796822 15.129746 12.500000 -- -- -- -- -- -- -- Value at End of Year 19.631448 17.796822 15.129746 -- -- -- -- -- -- -- Venture III No. of Units 11,558 19,022 15,453 -- -- -- -- -- -- -- NY Venture III No. of Units 4,397 10,356 4,295 -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 17.752580 15.114728 12.500000 -- -- -- -- -- -- -- Value at End of Year 19.553144 17.752580 15.114728 -- -- -- -- -- -- -- Venture III No. of Units 37,144 43,326 21,650 -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 17.737849 15.109718 12.500000 -- -- -- -- -- -- -- Value at End of Year 19.527100 17.737849 15.109718 -- -- -- -- -- -- -- Venture III No. of Units 575 71 7,620 -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 17.693766 15.094716 12.500000 -- -- -- -- -- -- -- Value at End of Year 19.449220 17.693766 15.094716 -- -- -- -- -- -- -- Venture III No. of Units 1,483 1,483 10,013 -- -- -- -- -- -- -- OVERSEAS TRUST (MERGED INTO INTERNATIONAL VALUE TRUST EFF 5-1-2005) - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year -- -- -- 14.150722 10.010302 12.974060 -- -- -- -- Value at End of Year -- -- -- 15.528252 14.150722 10.010302 -- -- -- -- Venture III No. of Units -- -- -- 570,019 317,889 184,066 -- -- -- -- NY Venture III No. of Units -- -- -- 24,404 12,925 7,480 -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year -- -- -- 13.622510 9.641458 12.500000 -- -- -- -- Value at End of Year -- -- -- 14.941139 13.622510 9.641458 -- -- -- -- Venture III No. of Units -- -- -- 331,843 325,599 252,300 -- -- -- -- NY Venture III No. of Units -- -- -- 72,615 25,076 13,229 -- -- -- --
U-37 Venture III Prior
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 ----------- ----------- ---------- ---------- ---------- --------- ---------- -------- -------- -------- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year -- -- -- 13.589131 9.632245 12.500000 -- -- -- -- Value at End of Year -- -- -- 14.882137 13.589131 9.632245 -- -- -- -- Venture III No. of Units -- -- -- 235,635 118,496 2,345 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year -- -- -- 13.578018 9.629170 12.500000 -- -- -- -- Value at End of Year -- -- -- 14.862517 13.578018 9.629170 -- -- -- -- Venture III No. of Units -- -- -- 145,592 37,591 19,627 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year -- -- -- 17.899785 12.500000 -- -- -- -- -- Value at End of Year -- -- -- 19.563686 17.899785 -- -- -- -- -- Venture III No. of Units -- -- -- 61,639 4,640 -- -- -- -- -- OVERSEAS TRUST (MERGED INTO INTERNATIONAL VALUE TRUST EFF 5-1-2005) - SERIES I SHARES (units first credited 8-01-2001) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year -- -- -- 11.418499 8.070566 10.444462 11.328059 -- -- -- Value at End of Year -- -- -- 12.555243 11.418499 8.070566 10.444462 -- -- -- Venture III No. of Units -- -- -- 144,765 141,443 165,874 36,514 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year -- -- -- 12.436745 8.794649 11.387239 12.500000 -- -- -- Value at End of Year -- -- -- 13.668010 12.436745 8.794649 11.387239 -- -- -- Venture III No. of Units -- -- -- 133,321 150,058 152,627 173 -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year -- -- -- 12.391721 8.775947 11.380104 12.500000 -- -- -- Value at End of Year -- -- -- 13.598078 12.391721 8.775947 11.380104 -- -- -- Venture III No. of Units -- -- -- 1,343 2,441 2,345 173 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year -- -- -- 12.376751 8.769721 11.377732 12.500000 -- -- -- Value at End of Year -- -- -- 13.574826 12.376751 8.769721 11.377732 -- -- -- Venture III No. of Units -- -- -- 63,866 30,148 50,642 6,459 -- -- -- PACIFIC RIM TRUST (FORMERLY PACIFIC RIM EMERGING MARKETS TRUST) - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 22.844730 20.937537 16.970541 14.772045 10.687117 13.476975 -- -- -- -- Value at End of Year 24.456090 22.844730 20.937537 16.970541 14.772045 10.687117 -- -- -- -- Venture III No. of Units 379,078 457,272 484,961 334,235 313,910 88,949 -- -- -- -- NY Venture III No. of Units 19,977 22,770 24,196 10,490 2,175 484 -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 21.139640 19.384470 15.719562 13.689980 9.909224 12.500000 -- -- -- -- Value at End of Year 22.619368 21.139640 19.384470 15.719562 13.689980 9.909224 -- -- -- -- Venture III No. of Units 210,694 269,178 401,349 296,557 230,924 103,642 -- -- -- -- NY Venture III No. of Units 48,478 58,788 56,001 49,762 33,108 5,834 -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 20.993298 19.279095 15.657484 13.656433 9.899754 12.500000 -- -- -- -- Value at End of Year 22.428940 20.993298 19.279095 15.657484 13.656433 9.899754 -- -- -- -- Venture III No. of Units 270,538 307,681 318,021 254,982 101,718 537 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 20.944750 19.244107 15.636854 13.645273 9.896593 12.500000 -- -- -- -- Value at End of Year 22.365846 20.944750 19.244107 15.636854 13.645273 9.896593 -- -- -- -- Venture III No. of Units 28,679 33,105 40,792 44,329 38,717 7,229 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 27.891677 25.665349 20.885631 18.252955 12.500000 -- -- -- -- -- Value at End of Year 29.739240 27.891677 25.665349 20.885631 18.252955 -- -- -- -- -- Venture III No. of Units 15,532 21,385 31,423 27,491 22,767 -- -- -- -- -- PACIFIC RIM TRUST (FORMERLY PACIFIC RIM EMERGING MARKETS TRUST) - SERIES I SHARES (units first credited 8-01-2001) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year 13.522547 12.379492 10.007594 8.703482 6.287752 7.308701 7.603140 -- -- -- Value at End of Year 14.515980 13.522547 12.379492 10.007594 8.703482 6.287752 7.308701 -- -- -- Venture III No. of Units 30,968 52,304 79,291 112,687 136,386 108,733 61,078 -- -- --
U-38 Venture III Prior
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 ----------- ----------- ---------- ---------- ---------- --------- ---------- -------- -------- -------- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year 21.823308 19.988559 16.166820 14.067127 10.167731 11.824607 12.500000 -- -- -- Value at End of Year 23.414796 21.823308 19.988559 16.166820 14.067127 10.167731 11.824607 -- -- -- Venture III No. of Units 53,938 60,712 73,379 54,008 37,168 33,772 361 -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year 21.646813 19.856583 16.084077 14.016174 10.146089 11.817183 12.500000 -- -- -- Value at End of Year 23.190433 21.646813 19.856583 16.084077 14.016174 10.146089 11.817183 -- -- -- Venture III No. of Units -- -- 107 129 268 537 361 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 21.588289 19.812776 16.056601 13.999250 10.138893 11.814713 12.500000 -- -- -- Value at End of Year 23.116133 21.588289 19.812776 16.056601 13.999250 10.138893 11.814713 -- -- -- Venture III No. of Units 5,268 8,291 12,229 6,213 12,978 18,651 912 -- -- -- PIMCO VIT ALL ASSET PORTFOLIO - CLASS M SHARES (units first credited 5-03-2004) Contracts with no Optional Benefits Value at Start of Year 14.815439 14.431816 13.848564 12.500000 -- -- -- -- -- -- Value at End of Year 15.737687 14.815439 14.431816 13.848564 -- -- -- -- -- -- Venture III No. of Units 167,318 505,509 706,874 76,998 -- -- -- -- -- -- NY Venture III No. of Units 35,085 44,375 16,003 865 -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 14.795774 14.419844 13.843983 12.500000 -- -- -- -- -- -- Value at End of Year 15.708909 14.795774 14.419844 13.843983 -- -- -- -- -- -- Venture III No. of Units 62,041 138,216 437,009 76,612 -- -- -- -- -- -- NY Venture III No. of Units 81,539 122,370 157,252 44,529 -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 14.736913 14.383990 13.830221 12.500000 -- -- -- -- -- -- Value at End of Year 15.622831 14.736913 14.383990 13.830221 -- -- -- -- -- -- Venture III No. of Units 127,743 161,921 289,925 35,267 -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 14.717347 14.372062 13.825649 12.500000 -- -- -- -- -- -- Value at End of Year 15.594248 14.717347 14.372062 13.825649 -- -- -- -- -- -- Venture III No. of Units 20,354 12,336 21,067 19,229 -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 14.658796 14.336314 13.811900 12.500000 -- -- -- -- -- -- Value at End of Year 15.508807 14.658796 14.336314 13.811900 -- -- -- -- -- -- Venture III No. of Units 5,774 10,983 20,534 1,049 -- -- -- -- -- -- QUANTITATIVE ALL CAP TRUST - SERIES II SHARES (units first credited 5-05-2003) Contracts with no Optional Benefits Value at Start of Year 20.901763 18.491562 17.347808 15.380200 12.500000 -- -- -- -- -- Value at End of Year 21.291677 20.901763 18.491562 17.347808 15.380200 -- -- -- -- -- Venture III No. of Units 11,981 16,853 14,729 6,731 4,328 -- -- -- -- -- NY Venture III No. of Units 791 800 856 860 -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 20.863633 18.467027 17.333422 15.375155 12.500000 -- -- -- -- -- Value at End of Year 21.242142 20.863633 18.467027 17.333422 15.375155 -- -- -- -- -- Venture III No. of Units 5,094 7,685 8,207 684 4,049 -- -- -- -- -- NY Venture III No. of Units 5,649 5,963 6,941 6,990 5,527 -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 20.749612 18.393606 17.290349 15.360025 12.500000 -- -- -- -- -- Value at End of Year 21.094209 20.749612 18.393606 17.290349 15.360025 -- -- -- -- -- Venture III No. of Units 16,818 16,617 18,443 36,490 5,674 -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 20.711751 18.136921 17.276008 15.354982 12.500000 -- -- -- -- -- Value at End of Year 21.045131 20.711751 18.136921 17.276008 15.354982 -- -- -- -- -- Venture III No. of Units 177 771 -- 983 -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 20.598563 18.296166 17.233077 15.339873 12.500000 -- -- -- -- -- Value at End of Year 20.898568 20.598563 18.296166 17.233077 15.339873 -- -- -- -- -- Venture III No. of Units 1,934 1,765 1,786 1,937 1,574 -- -- -- -- --
U-39 Venture III Prior
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 ----------- ----------- ---------- ---------- ---------- --------- ---------- -------- -------- -------- QUANTITATIVE MID CAP TRUST - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 17.428477 17.071006 15.305359 13.199297 9.700786 12.291491 -- -- -- -- Value at End of Year 16.765997 17.428477 17.071006 15.305359 13.199297 9.700786 -- -- -- -- Venture III No. of Units 111,444 164,533 189,346 148,228 89,981 22,133 -- -- -- -- NY Venture III No. of Units 9,135 9,884 9,903 19,878 9,400 1,821 -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 17.683145 17.329093 15.544496 13.412249 9.862213 12.500000 -- -- -- -- Value at End of Year 17.002437 17.683145 17.329093 15.544496 13.412249 9.862213 -- -- -- -- Venture III No. of Units 57,179 80,579 144,739 134,711 128,830 59,910 -- -- -- -- NY Venture III No. of Units 5,976 20,115 19,167 17,868 6,549 6,951 -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 17.560689 17.234864 15.483093 13.379370 9.852784 12.500000 -- -- -- -- Value at End of Year 16.859239 17.560689 17.234864 15.483093 13.379370 9.852784 -- -- -- -- Venture III No. of Units 35,642 59,417 98,119 80,946 29,791 2,463 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 17.520053 17.203563 15.462681 13.368436 9.849650 12.500000 -- -- -- -- Value at End of Year 16.811771 17.520053 17.203563 15.462681 13.368436 9.849650 -- -- -- -- Venture III No. of Units 4,161 4,632 7,966 10,575 10,242 4,978 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 20.465171 20.125576 18.116062 15.686017 12.500000 -- -- -- -- -- Value at End of Year 19.608221 20.465171 20.125576 18.116062 15.686017 -- -- -- -- -- Venture III No. of Units 3,436 5,553 6,934 5,151 3,144 -- -- -- -- -- QUANTITATIVE MID CAP TRUST - SERIES I SHARES (units first credited 8-01-2001) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year 13.916118 13.590692 12.159586 10.458280 7.674908 10.087326 11.372501 -- -- -- Value at End of Year 13.403011 13.916118 13.590692 12.159586 10.458280 7.674908 10.087326 -- -- -- Venture III No. of Units 24,116 30,315 46,617 52,250 51,043 50,378 6,044 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year 15.215133 14.866743 13.307899 11.451664 8.408113 11.056543 12.500000 -- -- -- Value at End of Year 14.646758 15.215133 14.866743 13.307899 11.451664 8.408113 11.056543 -- -- -- Venture III No. of Units 10,708 25,112 52,568 58,120 60,884 57,203 -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year 15.092058 14.768563 13.239784 11.410195 8.390229 11.049613 12.500000 -- -- -- Value at End of Year 14.506378 15.092058 14.768563 13.239784 11.410195 8.390229 11.049613 -- -- -- Venture III No. of Units 327 328 330 1,634 2,179 2,463 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 15.051242 14.735979 13.217161 11.396411 8.384271 11.047303 12.500000 -- -- -- Value at End of Year 14.459870 15.051242 14.735979 13.217161 11.396411 8.384271 11.047303 -- -- -- Venture III No. of Units 6,995 8,128 12,151 23,133 12,693 20,554 639 -- -- -- QUANTITATIVE VALUE TRUST - SERIES II SHARES (units first credited 5-03-2004) Contracts with no Optional Benefits Value at Start of Year 18.482234 15.521468 14.500571 12.500000 -- -- -- -- -- -- Value at End of Year 17.197522 18.482234 15.521468 14.500571 -- -- -- -- -- -- Venture III No. of Units 29,780 69,914 48,446 4,284 -- -- -- -- -- -- NY Venture III No. of Units 170 155 163 -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 18.457685 15.508590 14.495768 12.500000 -- -- -- -- -- -- Value at End of Year 17.166043 18.457685 15.508590 14.495768 -- -- -- -- -- -- Venture III No. of Units 35,469 58,164 41,133 1,321 -- -- -- -- -- -- NY Venture III No. of Units 134 920 927 -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 18.384309 15.470041 14.481363 12.500000 -- -- -- -- -- -- Value at End of Year 17.072013 18.384309 15.470041 14.481363 -- -- -- -- -- -- Venture III No. of Units 8,860 11,998 7,515 967 -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 18.359904 15.457203 14.476562 12.500000 -- -- -- -- -- -- Value at End of Year 17.040783 18.359904 15.457203 14.476562 -- -- -- -- -- -- Venture III No. of Units 1,390 701 468 471 -- -- -- -- -- --
U-40 Venture III Prior
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 ----------- ----------- ---------- ---------- ---------- --------- ---------- -------- -------- -------- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 18.286900 15.418784 14.462180 12.500000 -- -- -- -- -- -- Value at End of Year 18.286900 18.286900 15.418784 14.462180 -- -- -- -- -- -- Venture III No. of Units -- 358 -- -- -- -- -- -- -- -- REAL ESTATE SECURITIES TRUST - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 33.503097 24.712132 22.499805 17.360006 12.702902 13.427582 -- -- -- -- Value at End of Year 27.755905 33.503097 24.712132 22.499805 17.360006 12.702902 -- -- -- -- Venture III No. of Units 774,393 1,165,660 1,197,178 1,321,526 958,408 371,522 -- -- -- -- NY Venture III No. of Units 43,369 50,986 48,150 44,969 26,331 33,209 -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 31.116602 22.963269 20.917923 16.147570 11.821624 12.500000 -- -- -- -- Value at End of Year 25.765825 31.116602 22.963269 20.917923 16.147570 11.821624 -- -- -- -- Venture III No. of Units 294,056 416,372 566,773 720,356 748,678 457,392 -- -- -- -- NY Venture III No. of Units 88,717 107,222 121,253 103,622 55,444 81,806 -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 30.901244 22.838433 20.835346 16.108031 11.810352 12.500000 -- -- -- -- Value at End of Year 25.548904 30.901244 22.838433 20.835346 16.108031 11.810352 -- -- -- -- Venture III No. of Units 395,189 620,476 613,953 765,647 333,783 18,135 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 30.829831 22.797006 20.807916 16.094888 11.806602 12.500000 -- -- -- -- Value at End of Year 25.477044 30.829831 22.797006 20.807916 16.094888 11.806602 -- -- -- -- Venture III No. of Units 64,459 95,704 124,890 152,972 152,575 91,989 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 29.904376 22.145736 20.243721 15.682026 12.500000 -- -- -- -- -- Value at End of Year 24.674994 29.904376 22.145736 20.243721 15.682026 -- -- -- -- -- Venture III No. of Units 34,220 74,059 72,841 83,658 35,464 -- -- -- -- -- REAL ESTATE SECURITIES TRUST - SERIES I SHARES (units first credited 8-01-2001) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year 37.302639 27.458274 24.956417 19.215936 14.039348 13.913544 13.919999 -- -- -- Value at End of Year 30.961424 37.302639 27.458274 24.956417 19.215936 14.039348 13.913544 -- -- -- Venture III No. of Units 95,820 132,883 188,012 247,494 264,917 266,268 39,205 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year 33.171757 24.429704 22.214869 17.113563 12.509571 12.403674 12.500000 -- -- -- Value at End of Year 27.518925 33.171757 24.429704 22.214869 17.113563 12.509571 12.403674 -- -- -- Venture III No. of Units 95,010 138,754 171,824 255,261 265,024 255,266 11,076 -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year 32.903581 24.268441 22.101250 17.051656 12.483003 12.395916 12.500000 -- -- -- Value at End of Year 27.255277 32.903581 24.268441 22.101250 17.051656 12.483003 12.395916 -- -- -- Venture III No. of Units 2,951 4,905 6,384 24,127 31,185 18,135 11,076 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 32.814718 24.214951 22.063526 17.031078 12.474170 12.393335 12.500000 -- -- -- Value at End of Year 27.168001 32.814718 24.214951 22.063526 17.031078 12.474170 12.393335 -- -- -- Venture III No. of Units 31,473 51,405 51,849 75,797 69,864 82,310 25,944 -- -- -- REAL RETURN BOND TRUST - SERIES II SHARES (units first credited 5-05-2003) Contracts with no Optional Benefits Value at Start of Year 13.598918 13.797933 13.858598 12.958589 12.500000 -- -- -- -- -- Value at End of Year 14.859338 13.598918 13.797933 13.858598 12.958589 -- -- -- -- -- Venture III No. of Units 1,134,181 1,491,904 2,001,717 2,015,752 694,471 -- -- -- -- -- NY Venture III No. of Units 87,509 94,120 176,928 139,565 96,503 -- -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 13.574111 13.779624 13.847111 12.954331 12.500000 -- -- -- -- -- Value at End of Year 14.824786 13.574111 13.779624 13.847111 12.954331 -- -- -- -- -- Venture III No. of Units 137,445 236,161 435,130 534,620 415,081 -- -- -- -- -- NY Venture III No. of Units 134,462 186,732 293,002 224,928 48,673 -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 13.499888 13.724802 13.812662 12.941550 12.500000 -- -- -- -- -- Value at End of Year 14.721514 13.499888 13.724802 13.812662 12.941550 -- -- -- -- -- Venture III No. of Units 582,487 898,133 1,168,944 1,153,879 731,647 -- -- -- -- --
U-41 Venture III Prior
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 ----------- ----------- ---------- ---------- ---------- --------- ---------- -------- -------- -------- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 13.475199 13.706543 13.801190 12.937290 12.500000 -- -- -- -- -- Value at End of Year 14.687208 13.475199 13.706543 13.801190 12.937290 -- -- -- -- -- Venture III No. of Units 25,121 47,326 98,904 100,383 58,343 -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 13.401543 13.652029 13.766871 12.924535 12.500000 -- -- -- -- -- Value at End of Year 14.584916 13.401543 13.652029 13.766871 12.924535 -- -- -- -- -- Venture III No. of Units 54,814 73,422 111,484 139,292 80,811 -- -- -- -- -- SCIENCE & TECHNOLOGY TRUST - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 11.225213 10.829359 10.811722 10.906148 7.368796 9.909366 -- -- -- -- Value at End of Year 13.168256 11.225213 10.829359 10.811722 10.906148 7.368796 -- -- -- -- Venture III No. of Units 948,698 873,435 975,766 1,201,486 1,130,156 184,060 -- -- -- -- NY Venture III No. of Units 29,706 56,375 85,514 90,668 73,783 6,103 -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 14.127066 13.635681 13.620276 13.746139 9.292277 12.500000 -- -- -- -- Value at End of Year 16.564084 14.127066 13.635681 13.620276 13.746139 9.292277 -- -- -- -- Venture III No. of Units 317,258 382,261 520,780 677,523 785,025 202,175 -- -- -- -- NY Venture III No. of Units 76,041 81,351 124,014 144,225 110,727 25,846 -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 14.029230 13.561529 13.566483 13.712452 9.283395 12.500000 -- -- -- -- Value at End of Year 16.424593 14.029230 13.561529 13.566483 13.712452 9.283395 -- -- -- -- Venture III No. of Units 417,561 516,414 532,896 580,571 411,007 5,580 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 13.996766 13.536887 13.548589 13.701244 9.280436 12.500000 -- -- -- -- Value at End of Year 16.378349 13.996766 13.536887 13.548589 13.701244 9.280436 -- -- -- -- Venture III No. of Units 45,331 51,846 64,311 74,166 123,891 52,918 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 16.445003 15.928502 15.966134 16.170333 12.500000 -- -- -- -- -- Value at End of Year 19.214176 16.445003 15.928502 15.966134 16.170333 -- -- -- -- -- Venture III No. of Units 36,115 40,430 42,766 53,131 38,435 -- -- -- -- -- SCIENCE & TECHNOLOGY TRUST - SERIES I SHARES (units first credited 8-01-2001) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year 12.581250 12.120661 12.070466 12.165419 8.223253 14.113845 16.449799 -- -- -- Value at End of Year 14.795398 12.581250 12.120661 12.070466 12.165419 8.223253 14.113845 -- -- -- Venture III No. of Units 114,578 182,862 249,641 354,318 442,928 179,857 57,406 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year 9.170535 8.839220 8.807004 8.880742 6.005954 10.313402 12.500000 -- -- -- Value at End of Year 10.779033 9.170535 8.839220 8.807004 8.880742 6.005954 10.313402 -- -- -- Venture III No. of Units 246,593 303,102 316,805 392,679 437,547 282,494 4,076 -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year 9.096322 8.780814 8.761904 8.848557 5.993162 10.306931 12.500000 -- -- -- Value at End of Year 10.675688 9.096322 8.780814 8.761904 8.848557 5.993162 10.306931 -- -- -- Venture III No. of Units 2,900 3,476 3,560 8,664 16,904 5,580 4,076 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 9.071718 8.761431 8.746927 8.837861 5.988905 10.304778 12.500000 -- -- -- Value at End of Year 10.641465 9.071718 8.761431 8.746927 8.837861 5.988905 10.304778 -- -- -- Venture III No. of Units 88,293 112,717 130,547 167,848 331,907 150,920 55,036 -- -- -- SMALL CAP GROWTH TRUST - SERIES II SHARES (units first credited 4-29-2005) Contracts with no Optional Benefits Value at Start of Year 17.596843 15.800825 12.500000 -- -- -- -- -- -- -- Value at End of Year 19.691111 17.596843 15.800825 -- -- -- -- -- -- -- Venture III No. of Units 241,664 248,248 177,098 -- -- -- -- -- -- -- NY Venture III No. of Units 7,746 3,535 683 -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 17.582246 15.795593 12.500000 -- -- -- -- -- -- -- Value at End of Year 19.664892 17.582246 15.795593 -- -- -- -- -- -- -- Venture III No. of Units 87,951 98,234 80,821 -- -- -- -- -- -- -- NY Venture III No. of Units 5,017 7,702 2,437 -- -- -- -- -- -- --
U-42 Venture III Prior
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 ----------- ----------- ---------- ---------- ---------- --------- ---------- -------- -------- -------- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 17.538545 15.779928 12.500000 -- -- -- -- -- -- -- Value at End of Year 19.586459 17.538545 15.779928 -- -- -- -- -- -- -- Venture III No. of Units 139,418 138,254 78,343 -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 17.523987 15.774704 12.500000 -- -- -- -- -- -- -- Value at End of Year 19.560362 17.523987 15.774704 -- -- -- -- -- -- -- Venture III No. of Units 18,800 8,490 1,082 -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 17.480421 15.759048 12.500000 -- -- -- -- -- -- -- Value at End of Year 19.482330 17.480421 15.759048 -- -- -- -- -- -- -- Venture III No. of Units 9,672 10,567 5,849 -- -- -- -- -- -- -- SMALL CAP INDEX TRUST - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 19.026705 16.483014 16.158254 14.025090 9.810708 12.921851 -- -- -- -- Value at End of Year 18.274060 19.026705 16.483014 16.158254 14.025090 9.810708 -- -- -- -- Venture III No. of Units 300,367 487,758 639,496 649,660 492,023 124,484 -- -- -- -- NY Venture III No. of Units 19,482 28,874 29,011 21,977 16,147 23,187 -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 18.362985 15.915966 15.610151 13.556141 9.487407 12.500000 -- -- -- -- Value at End of Year 17.627729 18.362985 15.915966 15.610151 13.556141 9.487407 -- -- -- -- Venture III No. of Units 289,106 363,779 521,675 568,237 624,153 268,338 -- -- -- -- NY Venture III No. of Units 84,097 106,566 122,961 131,345 73,769 23,713 -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 18.235864 15.829445 15.548509 13.522919 9.478339 12.500000 -- -- -- -- Value at End of Year 17.479297 18.235864 15.829445 15.548509 13.522919 9.478339 -- -- -- -- Venture III No. of Units 319,945 409,175 456,066 482,820 307,301 2,660 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 18.193653 15.800683 15.528002 13.511860 9.475320 12.500000 -- -- -- -- Value at End of Year 17.430065 18.193653 15.800683 15.528002 13.511860 9.475320 -- -- -- -- Venture III No. of Units 35,267 48,334 61,834 76,647 85,100 57,304 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 22.393595 19.477337 19.169848 16.705957 12.500000 -- -- -- -- -- Value at End of Year 21.421385 22.393595 19.477337 19.169848 16.705957 -- -- -- -- -- Venture III No. of Units 13,140 16,812 19,880 20,584 17,485 -- -- -- -- -- SMALL CAP INDEX TRUST - SERIES I SHARES (units first credited 8-01-2001) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year 17.466510 15.097565 14.773203 12.801395 8.926733 11.557294 11.506253 -- -- -- Value at End of Year 16.807315 17.466510 15.097565 14.773203 12.801395 8.926733 11.557294 -- -- -- Venture III No. of Units 72,230 88,928 101,535 111,695 166,389 121,096 14,176 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year 18.742569 16.208638 15.868313 13.757234 9.598062 12.432687 12.500000 -- -- -- Value at End of Year 18.026147 18.742569 16.208638 15.868313 13.757234 9.598062 12.432687 -- -- -- Venture III No. of Units 107,325 129,209 165,319 201,964 251,915 198,216 1,266 -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year 18.591009 16.101637 15.787139 13.707465 9.577659 12.424901 12.500000 -- -- -- Value at End of Year 17.853415 18.591009 16.101637 15.787139 13.707465 9.577659 12.424901 -- -- -- Venture III No. of Units 4,842 6,130 6,997 10,322 10,447 2,660 1,266 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 18.540737 16.066111 15.760164 13.690899 9.570860 12.422319 12.500000 -- -- -- Value at End of Year 17.796174 18.540737 16.066111 15.760164 13.690899 9.570860 12.422319 -- -- -- Venture III No. of Units 42,238 43,813 44,081 59,294 63,048 94,702 7,324 -- -- -- SMALL CAP OPPORTUNITIES TRUST - SERIES II SHARES (units first credited 5-05-2003) Contracts with no Optional Benefits Value at Start of Year 14.985828 22.591391 21.342308 17.291875 12.500000 -- -- -- -- -- Value at End of Year 22.204676 14.985828 22.591391 21.342308 17.291875 -- -- -- -- -- Venture III No. of Units 456,256 673,916 806,725 254,329 59,939 -- -- -- -- -- NY Venture III No. of Units 35,043 45,457 32,017 2,878 38 -- -- -- -- --
U-43 Venture III Prior
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 ----------- ----------- ---------- ---------- ---------- --------- ---------- -------- -------- -------- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 24.442703 22.561415 21.324613 17.286206 12.500000 -- -- -- -- -- Value at End of Year 22.153013 24.442703 22.561415 21.324613 17.286206 -- -- -- -- -- Venture III No. of Units 225,620 312,505 465,918 70,908 17,378 -- -- -- -- -- NY Venture III No. of Units 74,258 90,014 114,661 23,672 6,795 -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 24.309159 22.471750 21.271647 17.269212 12.500000 -- -- -- -- -- Value at End of Year 21.998747 24.309159 22.471750 21.271647 17.269212 -- -- -- -- -- Venture III No. of Units 333,100 479,610 600,588 181,511 53,999 -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 24.264795 22.441920 21.254009 17.263548 12.500000 -- -- -- -- -- Value at End of Year 21.947552 24.264795 22.441920 21.254009 17.263548 -- -- -- -- -- Venture III No. of Units 23,635 28,782 39,445 18,993 90,696 -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 24.132249 22.352761 21.201227 17.246575 12.500000 -- -- -- -- -- Value at End of Year 21.794745 24.132249 22.352761 21.201227 17.246575 -- -- -- -- -- Venture III No. of Units 24,882 35,492 37,110 14,306 5,881 -- -- -- -- -- SMALL CAP OPPORTUNITIES TRUST - SERIES I SHARES (units first credited 5-01-2005) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year 24.577935 22.620826 12.500000 -- -- -- -- -- -- -- Value at End of Year 22.321982 24.577935 22.620826 -- -- -- -- -- -- -- Venture III No. of Units 72,472 109,619 142,270 -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year 24.533080 22.590808 12.500000 -- -- -- -- -- -- -- Value at End of Year 22.270035 24.533080 22.590808 -- -- -- -- -- -- -- Venture III No. of Units 65,996 109,420 146,030 -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year 24.399054 22.501032 12.500000 -- -- -- -- -- -- -- Value at End of Year 22.114952 24.399054 22.501032 -- -- -- -- -- -- -- Venture III No. of Units 880 1,754 1,513 -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 24.354507 22.471163 12.500000 -- -- -- -- -- -- -- Value at End of Year 22.063486 24.354507 22.471163 -- -- -- -- -- -- -- Venture III No. of Units 72,288 78,415 95,549 -- -- -- -- -- -- -- SMALL CAP TRUST - SERIES II SHARES (units first credited 5-01-2005) Contracts with no Optional Benefits Value at Start of Year 14.944698 14.144604 12.500000 -- -- -- -- -- -- -- Value at End of Year 14.741241 14.944698 14.144604 -- -- -- -- -- -- -- Venture III No. of Units 16,984 15,514 1,803 -- -- -- -- -- -- -- NY Venture III No. of Units -- 1 72 -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 14.932301 14.139925 12.500000 -- -- -- -- -- -- -- Value at End of Year 14.721613 14.932301 14.139925 -- -- -- -- -- -- -- Venture III No. of Units 83 8,554 6,265 -- -- -- -- -- -- -- NY Venture III No. of Units 3,056 3,069 2,656 -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 14.895166 14.125877 12.500000 -- -- -- -- -- -- -- Value at End of Year 14.662846 14.895166 14.125877 -- -- -- -- -- -- -- Venture III No. of Units 8,003 8,704 12,639 -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 14.882817 14.121205 12.500000 -- -- -- -- -- -- -- Value at End of Year 14.643332 14.882817 14.121205 -- -- -- -- -- -- -- Venture III No. of Units 1,214 1,843 1,323 -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year -- 14.107181 12.500000 -- -- -- -- -- -- -- Value at End of Year -- 14.845803 14.107181 -- -- -- -- -- -- -- Venture III No. of Units -- 364 364 -- -- -- -- -- -- --
U-44 Venture III Prior
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 ----------- ----------- ---------- ---------- ---------- --------- ---------- -------- -------- -------- SMALL CAP VALUE TRUST - SERIES II SHARES (units first credited 4-29-2005) Contracts with no Optional Benefits Value at Start of Year 16.666922 14.234274 12.500000 -- -- -- -- -- -- -- Value at End of Year 15.878329 16.666922 14.234274 -- -- -- -- -- -- -- Venture III No. of Units 535,994 676,921 291,038 -- -- -- -- -- -- -- NY Venture III No. of Units 22,856 17,955 4,835 -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 16.653108 14.229566 12.500000 -- -- -- -- -- -- -- Value at End of Year 15.857185 16.653108 14.229566 -- -- -- -- -- -- -- Venture III No. of Units 123,249 119,204 72,897 -- -- -- -- -- -- -- NY Venture III No. of Units 14,422 21,076 9,531 -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 16.611700 14.215428 12.500000 -- -- -- -- -- -- -- Value at End of Year 15.793901 16.611700 14.215428 -- -- -- -- -- -- -- Venture III No. of Units 244,944 208,489 93,639 -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 16.597923 14.210720 12.500000 -- -- -- -- -- -- -- Value at End of Year 15.772875 16.597923 14.210720 -- -- -- -- -- -- -- Venture III No. of Units 14,281 29,004 8,198 -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 16.556659 14.196612 12.500000 -- -- -- -- -- -- -- Value at End of Year 15.709939 16.556659 14.196612 -- -- -- -- -- -- -- Venture III No. of Units 28,054 18,398 22,693 -- -- -- -- -- -- -- SMALL COMPANY BLEND TRUST (MERGED INTO SMALL CAP OPPORTUNITIES TRUST EFF 5-1-2005) - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year -- -- -- 12.901400 9.393008 12.939785 -- -- -- -- Value at End of Year -- -- -- 13.581778 12.901400 9.393008 -- -- -- -- Venture III No. of Units -- -- -- 1,057,471 821,306 265,584 -- -- -- -- NY Venture III No. of Units -- -- -- 53,231 33,016 18,573 -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year -- -- -- 12.452707 9.070868 12.500000 -- -- -- -- Value at End of Year -- -- -- 13.102854 12.452707 9.070868 -- -- -- -- Venture III No. of Units -- -- -- 1,071,424 1,067,398 478,150 -- -- -- -- NY Venture III No. of Units -- -- -- 188,429 124,416 19,341 -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year -- -- -- 12.422207 9.062208 12.500000 -- -- -- -- Value at End of Year -- -- -- 13.051120 12.422207 9.062208 -- -- -- -- Venture III No. of Units -- -- -- 889,536 546,646 12,145 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year -- -- -- 12.412061 9.059320 12.500000 -- -- -- -- Value at End of Year -- -- -- 13.033916 12.412061 9.059320 -- -- -- -- Venture III No. of Units -- -- -- 71,277 90,696 53,391 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year -- -- -- 16.206671 12.500000 -- -- -- -- -- Value at End of Year -- -- -- 16.993063 16.206671 -- -- -- -- -- Venture III No. of Units -- -- -- 41,071 26,962 -- -- -- -- -- SMALL COMPANY BLEND TRUST (MERGED INTO SMALL CAP OPPORTUNITIES TRUST EFF 5-1-2005) - SERIES I SHARES (units first credited 8-01-2001) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year -- -- -- 12.133841 8.829509 12.058116 12.219420 -- -- -- Value at End of Year -- -- -- 12.793206 12.133841 8.829509 12.058116 -- -- -- Venture III No. of Units -- -- -- 275,802 319,465 322,040 58,747 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year -- -- -- 12.242875 8.913306 12.178671 12.500000 -- -- -- Value at End of Year -- -- -- 12.901687 12.242875 8.913306 12.178671 -- -- -- Venture III No. of Units -- -- -- 316,014 372,895 364,615 10,681 -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year -- -- -- 12.198568 8.894344 12.171046 12.500000 -- -- -- Value at End of Year -- -- -- 12.835676 12.198568 8.894344 12.171046 -- -- -- Venture III No. of Units -- -- -- 5,671 8,316 12,145 10,681 -- -- --
U-45 Venture III Prior
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 ----------- ----------- ---------- ---------- ---------- --------- ---------- -------- -------- -------- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year -- -- -- 12.183827 8.888032 12.168505 12.500000 -- -- -- Value at End of Year -- -- -- 12.813729 12.183827 8.888032 12.168505 -- -- -- Venture III No. of Units -- -- -- 204,268 207,926 199,977 22,152 -- -- -- SMALL COMPANY TRUST - SERIES II SHARES (units first credited 5-01-2004) Contracts with no Optional Benefits Value at Start of Year 16.264297 15.685780 15.044608 12.500000 -- -- -- -- -- -- Value at End of Year 14.922002 16.264297 15.685780 15.044608 -- -- -- -- -- -- Venture III No. of Units 38,307 51,474 228,347 75,065 -- -- -- -- -- -- NY Venture III No. of Units 3,949 3,818 3,017 -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 16.242714 15.672776 15.039623 12.500000 -- -- -- -- -- -- Value at End of Year 14.894705 16.242714 15.672776 15.039623 -- -- -- -- -- -- Venture III No. of Units 2,896 3,454 29,216 3,612 -- -- -- -- -- -- NY Venture III No. of Units 838 842 846 -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 16.178110 15.633809 15.024675 12.500000 -- -- -- -- -- -- Value at End of Year 14.813089 16.178110 15.633809 15.024675 -- -- -- -- -- -- Venture III No. of Units 16,506 23,832 36,537 23,197 -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 16.156638 15.620859 15.019705 12.500000 -- -- -- -- -- -- Value at End of Year 14.785985 16.156638 15.620859 15.019705 -- -- -- -- -- -- Venture III No. of Units -- 1,574 10,960 4,666 -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 16.092374 15.582019 15.004776 12.500000 -- -- -- -- -- -- Value at End of Year 14.704964 16.092374 15.582019 15.004776 -- -- -- -- -- -- Venture III No. of Units 1,086 1,412 3,679 3,409 -- -- -- -- -- -- SMALL COMPANY VALUE TRUST - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 22.112812 19.512373 18.576036 15.116060 11.505543 14.080585 -- -- -- -- Value at End of Year 21.442806 22.112812 19.512373 18.576036 15.116060 11.505543 -- -- -- -- Venture III No. of Units 1,290,443 1,888,948 2,236,737 2,430,543 1,761,384 614,080 -- -- -- -- NY Venture III No. of Units 98,580 114,100 120,806 113,567 82,962 58,245 -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 19.585209 17.290634 16.469112 13.408283 10.210756 12.500000 -- -- -- -- Value at End of Year 18.982240 19.585209 17.290634 16.469112 13.408283 10.210756 -- -- -- -- Venture III No. of Units 714,205 1,076,265 1,612,445 1,912,889 1,911,009 929,346 -- -- -- -- NY Venture III No. of Units 178,592 262,887 299,276 292,522 194,102 140,797 -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 19.449636 17.196655 16.404097 13.375438 10.201010 12.500000 -- -- -- -- Value at End of Year 18.822412 19.449636 17.196655 16.404097 13.375438 10.201010 -- -- -- -- Venture III No. of Units 834,357 1,247,856 1,504,042 1,509,955 748,523 41,340 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 19.404652 17.165435 16.382482 13.364515 10.197768 12.500000 -- -- -- -- Value at End of Year 18.769442 19.404652 17.165435 16.382482 13.364515 10.197768 -- -- -- -- Venture III No. of Units 121,407 238,304 200,783 342,303 282,478 159,691 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 22.073509 19.555543 18.691495 15.271109 12.500000 -- -- -- -- -- Value at End of Year 21.318735 22.073509 19.555543 18.691495 15.271109 -- -- -- -- -- Venture III No. of Units 43,916 107,033 82,189 131,148 65,180 -- -- -- -- -- SMALL COMPANY VALUE TRUST - SERIES I SHARES (units first credited 8-01-2001) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year 23.148177 20.388484 19.364563 15.725754 11.960450 12.925755 12.779817 -- -- -- Value at End of Year 22.494997 23.148177 20.388484 19.364563 15.725754 11.960450 12.925755 -- -- -- Venture III No. of Units 225,659 324,931 440,746 610,555 658,413 634,847 137,793 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year 22.531324 19.855069 18.867322 15.329629 11.664988 12.612748 12.500000 -- -- -- Value at End of Year 21.884537 22.531324 19.855069 18.867322 15.329629 11.664988 12.612748 -- -- -- Venture III No. of Units 230,192 339,801 433,769 606,663 637,716 661,005 13,189 -- -- --
U-46 Venture III Prior
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 ----------- ----------- ---------- ---------- ---------- --------- ---------- -------- -------- -------- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year 22.349129 19.724004 18.770822 15.274154 11.640194 12.604862 12.500000 -- -- -- Value at End of Year 21.674848 22.349129 19.724004 18.770822 15.274154 11.640194 12.604862 -- -- -- Venture III No. of Units 18,841 22,205 22,391 26,322 41,726 41,340 13,189 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 22.288732 19.680508 18.738753 15.255705 11.631943 12.602235 12.500000 -- -- -- Value at End of Year 21.605402 22.288732 19.680508 18.738753 15.255705 11.631943 12.602235 -- -- -- Venture III No. of Units 66,852 109,791 140,455 291,525 268,943 233,288 63,197 -- -- -- SPECIAL VALUE TRUST (MERGED INTO SMALL CAP VALUE EFF 11-9-2007) - SERIES II SHARES (units first credited 5-05-2003) Contracts with no Optional Benefits Value at Start of Year -- 19.100756 18.440333 15.629832 12.500000 -- -- -- -- -- Value at End of Year -- 20.779355 19.100756 18.440333 15.629832 -- -- -- -- -- Venture III No. of Units -- 50,920 64,036 55,925 13,039 -- -- -- -- -- NY Venture III No. of Units -- 1,370 1,899 1,944 947 -- -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year -- 19.075418 18.425047 15.624705 12.500000 -- -- -- -- -- Value at End of Year -- 20.741447 19.075418 18.425047 15.624705 -- -- -- -- -- Venture III No. of Units -- 4,225 5,988 12,726 1,905 -- -- -- -- -- NY Venture III No. of Units -- 6,712 12,468 12,028 4,205 -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year -- 18.999575 18.379252 15.609324 12.500000 -- -- -- -- -- Value at End of Year -- 20.628091 18.999575 18.379252 15.609324 -- -- -- -- -- Venture III No. of Units -- 29,836 45,610 48,103 15,073 -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year -- 18.974385 18.364031 15.604207 12.500000 -- -- -- -- -- Value at End of Year -- 20.590483 18.974385 18.364031 15.604207 -- -- -- -- -- Venture III No. of Units -- 3,145 3,682 4,367 3,066 -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year -- 18.898939 18.318383 15.588845 12.500000 -- -- -- -- -- Value at End of Year -- 20.477943 18.898939 18.318383 15.588845 -- -- -- -- -- Venture III No. of Units -- 2,434 2,684 2,833 7,681 -- -- -- -- -- STRATEGIC BOND TRUST - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 16.274311 15.481727 15.363692 14.681293 13.217126 12.681238 -- -- -- -- Value at End of Year 15.965153 16.274311 15.481727 15.363692 14.681293 13.217126 -- -- -- -- Venture III No. of Units 1,544,330 1,829,380 1,935,818 1,374,409 731,600 199,341 -- -- -- -- NY Venture III No. of Units 129,989 136,005 144,159 69,421 47,473 9,379 -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 16.004585 15.232731 15.124141 14.459631 13.024081 12.500000 -- -- -- -- Value at End of Year 15.692653 16.004585 15.232731 15.124141 14.459631 13.024081 -- -- -- -- Venture III No. of Units 208,073 251,996 344,500 402,567 494,156 198,913 -- -- -- -- NY Venture III No. of Units 123,426 153,583 182,102 141,989 83,675 86,329 -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 15.893786 15.149912 15.064431 14.424221 13.011678 12.500000 -- -- -- -- Value at End of Year 15.560540 15.893786 15.149912 15.064431 14.424221 13.011678 -- -- -- -- Venture III No. of Units 930,532 1,076,127 1,221,568 753,789 197,544 7,865 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 15.856999 15.122384 15.044558 14.412429 13.007548 12.500000 -- -- -- -- Value at End of Year 15.516712 15.856999 15.122384 15.044558 14.412429 13.007548 -- -- -- -- Venture III No. of Units 25,342 33,085 43,313 72,879 83,515 52,117 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 14.174827 13.538375 13.488853 12.941526 12.500000 -- -- -- -- -- Value at End of Year 13.849738 14.174827 13.538375 13.488853 12.941526 -- -- -- -- -- Venture III No. of Units 137,934 133,976 115,872 84,711 19,571 -- -- -- -- -- STRATEGIC BOND TRUST - SERIES I SHARES (units first credited 8-01-2001) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year 21.040442 19.979884 19.777881 18.851344 16.942885 15.808358 15.636470 -- -- -- Value at End of Year 20.662241 21.040442 19.979884 19.777881 18.851344 16.942885 15.808358 -- -- -- Venture III No. of Units 64,525 103,890 123,426 180,879 160,200 118,693 23,734 -- -- --
U-47 Venture III Prior
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 ----------- ----------- ---------- ---------- ---------- --------- ---------- -------- -------- -------- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year 16.791223 15.952802 15.799393 15.066776 13.548238 12.647340 12.500000 -- -- -- Value at End of Year 16.481113 16.791223 15.952802 15.799393 15.066776 13.548238 12.647340 -- -- -- Venture III No. of Units 78,245 87,080 128,519 174,724 190,846 123,232 4,812 -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year 16.655428 15.847474 15.718575 15.012276 13.519486 12.639442 12.500000 -- -- -- Value at End of Year 16.323198 16.655428 15.847474 15.718575 15.012276 13.519486 12.639442 -- -- -- Venture III No. of Units 5,602 5,367 4,362 9,063 9,640 7,865 4,812 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 16.610418 15.812526 15.691734 14.994155 13.509914 12.636812 12.500000 -- -- -- Value at End of Year 16.270901 16.610418 15.812526 15.691734 14.994155 13.509914 12.636812 -- -- -- Venture III No. of Units 33,634 33,494 49,657 58,930 81,169 64,005 7,332 -- -- -- STRATEGIC GROWTH TRUST (MERGED INTO U.S. GLOBAL LEADERS GROWTH TRUST EFF 5-1-2005) - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year -- -- -- 11.545878 9.270921 11.176534 -- -- -- -- Value at End of Year -- -- -- 12.069021 11.545878 9.270921 -- -- -- -- Venture III No. of Units -- -- -- 473,573 463,299 193,976 -- -- -- -- NY Venture III No. of Units -- -- -- 29,740 25,641 42,059 -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year -- -- -- 12.902525 10.365441 12.500000 -- -- -- -- Value at End of Year -- -- -- 13.480380 12.902525 10.365441 -- -- -- -- Venture III No. of Units -- -- -- 584,007 631,182 313,890 -- -- -- -- NY Venture III No. of Units -- -- -- 58,319 57,142 19,777 -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year -- -- -- 12.870913 10.355534 12.500000 -- -- -- -- Value at End of Year -- -- -- 13.427134 12.870913 10.355534 -- -- -- -- Venture III No. of Units -- -- -- 290,089 180,067 6,655 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year -- -- -- 12.860371 10.352231 12.500000 -- -- -- -- Value at End of Year -- -- -- 13.409417 12.860371 10.352231 -- -- -- -- Venture III No. of Units -- -- -- 140,760 156,701 127,270 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year -- -- -- 14.516135 12.500000 -- -- -- -- -- Value at End of Year -- -- -- 15.113120 14.516135 -- -- -- -- -- Venture III No. of Units -- -- -- 26,231 16,521 -- -- -- -- -- STRATEGIC GROWTH TRUST (MERGED INTO U.S. GLOBAL LEADERS GROWTH TRUST EFF 5-1-2005) - SERIES I SHARES (units first credited 8-01-2001) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year -- -- -- 9.625797 7.713797 10.898344 11.491985 -- -- -- Value at End of Year -- -- -- 10.089005 9.625797 7.713797 10.898344 -- -- -- Venture III No. of Units -- -- -- 281,922 299,602 337,579 93,971 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year -- -- -- 10.403829 8.341450 11.791031 12.500000 -- -- -- Value at End of Year -- -- -- 10.899006 10.403829 8.341450 11.791031 -- -- -- Venture III No. of Units -- -- -- 459,993 513,126 582,524 3,810 -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year -- -- -- 10.366149 8.323706 11.783648 12.500000 -- -- -- Value at End of Year -- -- -- 10.843210 10.366149 8.323706 11.783648 -- -- -- Venture III No. of Units -- -- -- 2,519 4,507 6,655 3,810 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year -- -- -- 10.353624 8.317788 11.781186 12.500000 -- -- -- Value at End of Year -- -- -- 10.824678 10.353624 8.317788 11.781186 -- -- -- Venture III No. of Units -- -- -- 86,540 115,290 132,025 67,667 -- -- -- STRATEGIC INCOME TRUST - SERIES II SHARES (units first credited 5-03-2004) Contracts with no Optional Benefits Value at Start of Year 13.798396 13.504989 13.460520 12.500000 -- -- -- -- -- -- Value at End of Year 14.322722 13.798396 13.504989 13.460520 -- -- -- -- -- -- Venture III No. of Units 150,676 234,437 210,144 70,921 -- -- -- -- -- -- NY Venture III No. of Units 33,367 37,466 27,411 18,640 -- -- -- -- -- --
U-48 Venture III Prior
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 ----------- ----------- ---------- ---------- ---------- --------- ---------- -------- -------- -------- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 13.780078 13.493789 13.456061 12.500000 -- -- -- -- -- -- Value at End of Year 14.296524 13.780078 13.493789 13.456061 -- -- -- -- -- -- Venture III No. of Units 36,698 85,568 65,847 4,572 -- -- -- -- -- -- NY Venture III No. of Units 41,751 64,857 50,440 23,487 -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 13.725268 13.460229 13.442692 12.500000 -- -- -- -- -- -- Value at End of Year 14.218200 13.725268 13.460229 13.442692 -- -- -- -- -- -- Venture III No. of Units 149,812 182,133 186,092 84,315 -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 13.707053 13.449067 13.438241 12.500000 -- -- -- -- -- -- Value at End of Year 14.192201 13.707053 13.449067 13.438241 -- -- -- -- -- -- Venture III No. of Units 2,790 2,924 1,420 3,062 -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 13.652506 13.415609 13.424880 12.500000 -- -- -- -- -- -- Value at End of Year 14.114421 13.652506 13.415609 13.424880 -- -- -- -- -- -- Venture III No. of Units 22,275 13,402 9,711 7,650 -- -- -- -- -- -- STRATEGIC OPPORTUNITIES TRUST (MERGED INTO LARGE CAP TRUST EFF 04-27-2007) - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year -- 11.711401 10.867778 9.831290 7.956590 12.128718 -- -- -- -- Value at End of Year -- 12.892669 11.711401 10.867778 9.831290 7.956590 -- -- -- -- Venture III No. of Units -- 275,318 334,152 371,134 304,615 118,519 -- -- -- -- NY Venture III No. of Units -- 5,198 9,616 9,400 6,980 5,652 -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year -- 12.048006 11.185706 10.123966 8.197543 12.500000 -- -- -- -- Value at End of Year -- 13.256623 12.048006 11.185706 10.123966 8.197543 -- -- -- -- Venture III No. of Units -- 278,943 364,014 476,434 534,952 258,022 -- -- -- -- NY Venture III No. of Units -- 15,480 16,796 17,190 10,783 8,850 -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year -- 11.982461 11.141500 10.099132 8.189696 12.500000 -- -- -- -- Value at End of Year -- 13.164796 11.982461 11.141500 10.099132 8.189696 -- -- -- -- Venture III No. of Units -- 229,746 259,133 335,200 217,406 7,523 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year -- 11.960681 11.126800 10.090869 8.187087 12.500000 -- -- -- -- Value at End of Year -- 13.134312 11.960681 11.126800 10.090869 8.187087 -- -- -- -- Venture III No. of Units -- 32,523 42,545 46,995 51,338 30,273 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year -- 17.153632 15.981579 14.515469 12.500000 -- -- -- -- -- Value at End of Year -- 18.808667 17.153632 15.981579 14.515469 -- -- -- -- -- Venture III No. of Units -- 14,279 11,843 8,122 5,404 -- -- -- -- -- STRATEGIC OPPORTUNITIES TRUST (MERGED INTO LARGE CAP TRUST EFF 04-27-2007) - SERIES I SHARES (units first credited 8-01-2001) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year -- 19.699364 18.251275 16.520961 13.346692 22.159728 25.156266 -- -- -- Value at End of Year -- 21.733589 19.699364 18.251275 16.520961 13.346692 22.159728 -- -- -- Venture III No. of Units -- 49,694 63,469 84,438 96,580 104,292 14,316 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year -- 9.665590 8.959536 8.114196 6.558439 10.894550 12.500000 -- -- -- Value at End of Year -- 10.658385 9.665590 8.959536 8.114196 6.558439 10.894550 -- -- -- Venture III No. of Units -- 108,045 141,060 224,142 251,177 296,124 9,469 -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year -- -- 8.913663 8.084801 6.544483 10.887723 12.500000 -- -- -- Value at End of Year -- -- 9.601737 8.913663 8.084801 6.544483 10.887723 -- -- -- Venture III No. of Units -- -- 1,246 4,226 8,615 7,523 9,469 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year -- 9.580530 8.898420 8.075022 6.539831 10.885446 12.500000 -- -- -- Value at End of Year -- 10.543530 9.580530 8.898420 8.075022 6.539831 10.885446 -- -- -- Venture III No. of Units -- 27,576 42,030 64,683 81,657 92,531 22,580 -- -- --
U-49 Venture III Prior
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 ----------- ----------- ---------- ---------- ---------- --------- ---------- -------- -------- -------- STRATEGIC VALUE TRUST (FORMERLY CAPITAL OPPORTUNITIES TRUST) (MERGED INTO LARGE CAP VALUE TRUST EFF 12-01-2006) - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year -- -- 13.676015 11.804094 9.325864 11.883508 -- -- -- -- Value at End of Year -- -- 13.381606 13.676015 11.804094 9.325864 -- -- -- -- Venture III No. of Units -- -- 443,948 480,426 330,022 83,925 -- -- -- -- NY Venture III No. of Units -- -- 22,355 19,800 6,785 3,533 -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year -- -- 14.366513 12.406298 9.806543 12.500000 -- -- -- -- Value at End of Year -- -- 14.050230 14.366513 12.406298 9.806543 -- -- -- -- Venture III No. of Units -- -- 219,140 255,690 256,896 141,909 -- -- -- -- NY Venture III No. of Units -- -- 52,154 47,897 18,276 34,800 -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year -- -- 14.309779 12.375906 9.797175 12.500000 -- -- -- -- Value at End of Year -- -- 13.973818 14.309779 12.375906 9.797175 -- -- -- -- Venture III No. of Units -- -- 239,367 245,268 172,326 46,866 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year -- -- 14.290909 12.365784 9.794058 12.500000 -- -- -- -- Value at End of Year -- -- 13.948434 14.290909 12.365784 9.794058 -- -- -- -- Venture III No. of Units -- -- 24,230 26,643 30,334 16,945 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year -- -- 17.250275 14.948942 12.500000 -- -- -- -- -- Value at End of Year -- -- 16.811719 17.250275 14.948942 -- -- -- -- -- Venture III No. of Units -- -- 16,330 17,608 11,341 -- -- -- -- -- STRATEGIC VALUE TRUST (FORMERLY CAPITAL OPPORTUNITIES TRUST) (MERGED INTO LARGE CAP VALUE TRUST EFF 12-01-2006) - SERIES I SHARES (units first credited 8-01-2001) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year -- -- 11.139193 9.598785 7.577610 10.581831 11.372482 -- -- -- Value at End of Year -- -- 10.925030 11.139193 9.598785 7.577610 10.581831 -- -- -- Venture III No. of Units -- -- 153,819 186,805 207,736 222,003 43,972 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year -- -- 12.159321 10.483095 8.279854 11.568273 12.500000 -- -- -- Value at End of Year -- -- 11.919593 12.159321 10.483095 8.279854 11.568273 -- -- -- Venture III No. of Units -- -- 145,076 197,678 195,166 253,289 1,245 -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year -- -- 12.097062 10.445118 8.262230 11.561026 12.500000 -- -- -- Value at End of Year -- -- 11.840840 12.097062 10.445118 8.262230 11.561026 -- -- -- Venture III No. of Units -- -- 5,444 46,144 48,905 46,866 1,245 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year -- -- 12.076407 10.432501 8.256374 11.558615 12.500000 -- -- -- Value at End of Year -- -- 11.814739 12.076407 10.432501 8.256374 11.558615 -- -- -- Venture III No. of Units -- -- 62,510 69,068 89,700 97,380 22,359 -- -- -- TOTAL RETURN TRUST - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 14.511115 14.264224 14.181967 13.770063 13.348694 12.525844 -- -- -- -- Value at End of Year 15.453799 14.511115 14.264224 14.181967 13.770063 13.348694 -- -- -- -- Venture III No. of Units 2,876,211 3,460,133 4,055,380 4,271,882 3,688,116 1,428,781 -- -- -- -- NY Venture III No. of Units 291,916 318,095 339,003 361,284 283,169 236,863 -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 14.447658 14.208930 14.134043 13.730415 13.316914 12.500000 -- -- -- -- Value at End of Year 15.378494 14.447658 14.208930 14.134043 13.730415 13.316914 -- -- -- -- Venture III No. of Units 1,470,507 1,919,042 2,679,092 3,243,797 3,740,167 2,269,393 -- -- -- -- NY Venture III No. of Units 270,013 337,355 420,975 417,710 345,500 584,424 -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 14.347633 14.131682 14.078249 13.696789 13.304234 12.500000 -- -- -- -- Value at End of Year 15.249011 14.347633 14.131682 14.078249 13.696789 13.304234 -- -- -- -- Venture III No. of Units 1,363,522 1,676,309 1,806,043 1,653,518 1,148,470 124,496 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 14.314436 14.106012 14.059682 13.685592 13.300010 12.500000 -- -- -- -- Value at End of Year 15.206089 14.314436 14.106012 14.059682 13.685592 13.300010 -- -- -- -- Venture III No. of Units 247,785 303,455 370,639 435,854 566,374 396,702 -- -- -- --
U-50 Venture III Prior
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 ----------- ----------- ---------- ---------- ---------- --------- ---------- -------- -------- -------- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 13.034561 12.864009 12.840954 12.518111 12.500000 -- -- -- -- -- Value at End of Year 13.825627 13.034561 12.864009 12.840954 12.518111 -- -- -- -- -- Venture III No. of Units 81,533 99,704 152,513 187,010 124,121 -- -- -- -- -- TOTAL RETURN TRUST - SERIES I SHARES (units first credited 8-01-2001) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year 16.775870 16.462014 16.330866 15.819221 15.314133 14.216074 13.912457 -- -- -- Value at End of Year 17.900785 16.775870 16.462014 16.330866 15.819221 15.314133 14.216074 -- -- -- Venture III No. of Units 365,881 466,203 678,650 891,028 1,072,260 1,445,513 309,022 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year 15.054949 14.780661 14.670229 14.217728 13.770668 12.789672 12.500000 -- -- -- Value at End of Year 16.056392 15.054949 14.780661 14.670229 14.217728 13.770668 12.789672 -- -- -- Venture III No. of Units 486,720 577,049 816,731 1,117,633 1,420,034 1,827,800 46,568 -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year 14.933203 14.683079 14.595185 14.166295 13.741449 12.781691 12.500000 -- -- -- Value at End of Year 15.902558 14.933203 14.683079 14.595185 14.166295 13.741449 12.781691 -- -- -- Venture III No. of Units 81,117 84,588 88,416 112,185 131,301 124,496 46,568 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 14.892854 14.650719 14.570278 14.149209 13.731734 12.779035 12.500000 -- -- -- Value at End of Year 15.851624 14.892854 14.650719 14.570278 14.149209 13.731734 12.779035 -- -- -- Venture III No. of Units 165,549 202,808 284,000 398,695 449,544 588,469 194,521 -- -- -- TOTAL STOCK MARKET INDEX TRUST - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 16.195019 14.304970 13.795381 12.568032 9.804582 12.003319 -- -- -- -- Value at End of Year 16.722760 16.195019 14.304970 13.795381 12.568032 9.804582 -- -- -- -- Venture III No. of Units 256,037 339,281 406,518 479,910 525,659 122,800 -- -- -- -- NY Venture III No. of Units 47,821 59,680 69,242 61,545 44,972 10,275 -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 16.826141 14.869841 14.347282 13.077379 10.207029 12.500000 -- -- -- -- Value at End of Year 17.365728 16.826141 14.869841 14.347282 13.077379 10.207029 -- -- -- -- Venture III No. of Units 187,870 225,910 342,595 408,338 426,605 156,620 -- -- -- -- NY Venture III No. of Units 132,817 178,745 208,141 233,882 112,148 16,300 -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 16.709622 14.788968 14.290616 13.045337 10.197284 12.500000 -- -- -- -- Value at End of Year 17.219476 16.709622 14.788968 14.290616 13.045337 10.197284 -- -- -- -- Venture III No. of Units 288,043 296,626 341,843 283,265 170,872 8,489 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 16.670965 14.762111 14.271768 13.034659 10.194035 12.500000 -- -- -- -- Value at End of Year 17.171006 16.670965 14.762111 14.271768 13.034659 10.194035 -- -- -- -- Venture III No. of Units 24,744 26,358 44,365 53,204 64,988 26,237 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 19.321987 17.135195 16.590815 15.175489 12.500000 -- -- -- -- -- Value at End of Year 19.871538 19.321987 17.135195 16.590815 15.175489 -- -- -- -- -- Venture III No. of Units 5,458 8,849 13,571 24,670 20,779 -- -- -- -- -- TOTAL STOCK MARKET INDEX TRUST - SERIES I SHARES (units first credited 8-01-2001) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year 12.486983 11.010141 10.589961 9.635326 7.503914 9.692272 10.176022 -- -- -- Value at End of Year 12.917335 12.486983 11.010141 10.589961 9.635326 7.503914 9.692272 -- -- -- Venture III No. of Units 42,325 48,977 77,655 150,518 157,636 135,388 42,924 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year 15.223990 13.430148 12.924053 11.764902 9.166981 11.846265 12.500000 -- -- -- Value at End of Year 15.740753 15.223990 13.430148 12.924053 11.764902 9.166981 11.846265 -- -- -- Venture III No. of Units 61,150 81,217 104,354 122,312 166,760 128,273 182 -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year 15.100840 13.341445 12.857906 11.722288 9.147475 11.838850 12.500000 -- -- -- Value at End of Year 15.589894 15.100840 13.341445 12.857906 11.722288 9.147475 11.838850 -- -- -- Venture III No. of Units 556 2,811 3,199 13,741 13,904 8,489 182 -- -- --
U-51 Venture III Prior
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 ----------- ----------- ---------- ---------- ---------- --------- ---------- -------- -------- -------- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 15.060035 13.312027 12.835949 11.708141 9.140988 11.836381 12.500000 -- -- -- Value at End of Year 15.539955 15.060035 13.312027 12.835949 11.708141 9.140988 11.836381 -- -- -- Venture III No. of Units 26,555 28,139 33,756 48,624 59,374 51,456 4,897 -- -- -- U.S. CORE TRUST (FORMERLY GROWTH & INCOME TRUST) - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 13.331231 12.434326 12.412328 11.843741 9.525105 11.563082 -- -- -- -- Value at End of Year 13.241955 13.331231 12.434326 12.412328 11.843741 9.525105 -- -- -- -- Venture III No. of Units 889,344 1,162,614 1,446,914 1,647,147 1,357,569 453,624 -- -- -- -- NY Venture III No. of Units 56,478 94,345 117,697 139,437 97,353 69,557 -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 14.378049 13.417411 13.400354 12.792926 10.293610 12.500000 -- -- -- -- Value at End of Year 14.274588 14.378049 13.417411 13.400354 12.792926 10.293610 -- -- -- -- Venture III No. of Units 629,409 808,151 1,142,432 1,505,611 1,564,714 701,296 -- -- -- -- NY Venture III No. of Units 70,692 98,954 231,550 306,910 237,376 157,975 -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 14.278498 13.344452 13.347440 12.761586 10.283785 12.500000 -- -- -- -- Value at End of Year 14.154384 14.278498 13.344452 13.347440 12.761586 10.283785 -- -- -- -- Venture III No. of Units 392,147 584,735 759,238 847,551 471,703 46,298 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 14.245436 13.320200 13.329829 12.751140 10.280506 12.500000 -- -- -- -- Value at End of Year 14.114507 14.245436 13.320200 13.329829 12.751140 10.280506 -- -- -- -- Venture III No. of Units 75,223 89,508 143,910 190,792 210,033 114,115 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 16.551163 15.499334 15.533742 14.881736 12.500000 -- -- -- -- -- Value at End of Year 16.374321 16.551163 15.499334 15.533742 14.881736 -- -- -- -- -- Venture III No. of Units 42,741 61,689 75,794 71,022 33,796 -- -- -- -- -- U.S. CORE TRUST (FORMERLY GROWTH & INCOME TRUST) - SERIES I SHARES (units first credited 8-01-2001) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year 25.480465 23.726364 23.639930 22.509721 18.077695 24.289203 25.399185 -- -- -- Value at End of Year 25.378820 25.480465 23.726364 23.639930 22.509721 18.077695 24.289203 -- -- -- Venture III No. of Units 148,076 204,218 293,782 377,834 503,113 534,526 192,389 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year 12.466506 11.614096 11.577551 11.029558 8.862332 11.913393 12.500000 -- -- -- Value at End of Year 12.410528 12.466506 11.614096 11.577551 11.029558 8.862332 11.913393 -- -- -- Venture III No. of Units 323,281 475,961 640,661 913,120 1,024,581 1,025,162 31,888 -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year 12.365623 11.537349 11.518267 10.989611 8.843472 11.905935 12.500000 -- -- -- Value at End of Year 12.291557 12.365623 11.537349 11.518267 10.989611 8.843472 11.905935 -- -- -- Venture III No. of Units 18,099 21,614 27,048 30,729 46,925 46,298 31,888 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 12.332194 11.511903 11.498591 10.976335 8.837200 11.903453 12.500000 -- -- -- Value at End of Year 12.252154 12.332194 11.511903 11.498591 10.976335 8.837200 11.903453 -- -- -- Venture III No. of Units 132,063 160,841 248,509 327,149 394,503 428,051 130,404 -- -- -- U.S. GLOBAL LEADERS GROWTH TRUST - SERIES II SHARES (units first credited 5-03-2004) Contracts with no Optional Benefits Value at Start of Year 12.943408 12.964305 13.066805 12.500000 -- -- -- -- -- -- Value at End of Year 13.175163 12.943408 12.964305 13.066805 -- -- -- -- -- -- Venture III No. of Units 277,680 386,887 495,325 71,835 -- -- -- -- -- -- NY Venture III No. of Units 35,317 37,510 40,163 18,636 -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 12.926217 12.953542 13.062474 12.500000 -- -- -- -- -- -- Value at End of Year 13.151043 12.926217 12.953542 13.062474 -- -- -- -- -- -- Venture III No. of Units 200,450 301,204 424,410 85 -- -- -- -- -- -- NY Venture III No. of Units 40,589 62,741 87,301 19,626 -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 12.874789 12.921319 13.049486 12.500000 -- -- -- -- -- -- Value at End of Year 13.078978 12.874789 12.921319 13.049486 -- -- -- -- -- -- Venture III No. of Units 143,182 233,045 304,919 51,871 -- -- -- -- -- --
U-52 Venture III Prior
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 ----------- ----------- ---------- ---------- ---------- --------- ---------- -------- -------- -------- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 12.857691 12.910600 13.045166 12.500000 -- -- -- -- -- -- Value at End of Year 13.055044 12.857691 12.910600 13.045166 -- -- -- -- -- -- Venture III No. of Units 36,693 44,371 58,861 -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 12.806554 12.878499 13.032206 12.500000 -- -- -- -- -- -- Value at End of Year 12.983512 12.806554 12.878499 13.032206 -- -- -- -- -- -- Venture III No. of Units 15,154 25,150 26,557 5,083 -- -- -- -- -- -- U.S. GLOBAL LEADERS GROWTH TRUST - SERIES I SHARES (units first credited 5-01-2005) Contracts with no Optional Benefits Value at Start of Year 12.969536 12.950895 12.500000 -- -- -- -- -- -- -- Value at End of Year 13.219065 12.969536 12.950895 -- -- -- -- -- -- -- Venture III No. of Units 98,858 129,449 153,310 -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year 12.952312 12.940143 12.500000 -- -- -- -- -- -- -- Value at End of Year 13.194870 12.952312 12.940143 -- -- -- -- -- -- -- Venture III No. of Units 172,908 217,058 254,132 -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year 12.900774 12.907963 12.500000 -- -- -- -- -- -- -- Value at End of Year 13.122560 12.900774 12.907963 -- -- -- -- -- -- -- Venture III No. of Units 2,372 3,921 4,212 -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 12.883649 12.897247 12.500000 -- -- -- -- -- -- -- Value at End of Year 13.098563 12.883649 12.897247 -- -- -- -- -- -- -- Venture III No. of Units 28,808 34,434 48,085 -- -- -- -- -- -- -- U.S. GOVERNMENT SECURITIES TRUST - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 13.657521 13.325803 13.352760 13.219027 13.228371 12.615206 -- -- -- -- Value at End of Year 13.826238 13.657521 13.325803 13.352760 13.219027 13.228371 -- -- -- -- Venture III No. of Units 1,159,441 1,186,616 1,535,167 2,276,112 1,868,640 706,239 -- -- -- -- NY Venture III No. of Units 39,669 48,218 114,800 119,680 136,243 52,169 -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 13.501489 13.180139 13.213383 13.087595 13.103404 12.500000 -- -- -- -- Value at End of Year 13.661396 13.501489 13.180139 13.213383 13.087595 13.103404 -- -- -- -- Venture III No. of Units 426,002 564,405 831,527 1,280,511 1,696,560 1,055,375 -- -- -- -- NY Venture III No. of Units 89,990 109,795 144,792 219,941 252,802 293,643 -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 13.407988 13.108456 13.161193 13.055529 13.090912 12.500000 -- -- -- -- Value at End of Year 13.546353 13.407988 13.108456 13.161193 13.055529 13.090912 -- -- -- -- Venture III No. of Units 283,726 330,894 357,519 413,421 341,401 15,548 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 13.376967 13.084646 13.143837 13.044856 13.086765 12.500000 -- -- -- -- Value at End of Year 13.508211 13.376967 13.084646 13.143837 13.044856 13.086765 -- -- -- -- Venture III No. of Units 84,373 121,730 168,320 265,357 432,596 245,705 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 12.644133 12.386347 12.461012 12.385790 12.500000 -- -- -- -- -- Value at End of Year 12.748953 12.644133 12.386347 12.461012 12.385790 -- -- -- -- -- Venture III No. of Units 28,416 17,357 28,701 46,691 45,968 -- -- -- -- -- U.S. GOVERNMENT SECURITIES TRUST - SERIES I SHARES (units first credited 8-01-2001) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year 16.166325 15.743938 15.756371 15.569817 15.559146 14.647092 14.436950 -- -- -- Value at End of Year 16.401174 16.166325 15.743938 15.756371 15.569817 15.559146 14.647092 -- -- -- Venture III No. of Units 103,644 110,677 163,744 263,651 358,655 516,015 121,534 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year 13.970542 13.612325 13.629862 13.475239 13.472743 12.689331 12.500000 -- -- -- Value at End of Year 14.166368 13.970542 13.612325 13.629862 13.475239 13.472743 12.689331 -- -- -- Venture III No. of Units 124,026 137,168 189,994 298,512 405,665 639,740 26,818 -- -- --
U-53 Venture III Prior
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 ----------- ----------- ---------- ---------- ---------- --------- ---------- -------- -------- -------- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year 13.857536 13.522425 13.560125 13.426478 13.444151 12.681412 12.500000 -- -- -- Value at End of Year 14.030599 13.857536 13.522425 13.560125 13.426478 13.444151 12.681412 -- -- -- Venture III No. of Units 8,765 11,100 15,132 20,866 23,225 42,239 26,818 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 13.820101 13.492618 13.536977 13.410281 13.434646 12.678773 12.500000 -- -- -- Value at End of Year 13.985678 13.820101 13.492618 13.536977 13.410281 13.434646 12.678773 -- -- -- Venture III No. of Units 20,492 29,367 47,907 86,647 210,255 487,625 78,307 -- -- -- U.S. HIGH YIELD BOND TRUST - SERIES II SHARES (units first credited 5-01-2005) Contracts with no Optional Benefits Value at Start of Year 13.845589 12.858589 12.500000 -- -- -- -- -- -- -- Value at End of Year 13.983914 13.845589 12.858589 -- -- -- -- -- -- -- Venture III No. of Units 43,968 30,339 19,752 -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 13.834111 12.854330 12.500000 -- -- -- -- -- -- -- Value at End of Year 13.965294 13.834111 12.854330 -- -- -- -- -- -- -- Venture III No. of Units 12,919 37,683 12,890 -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 13.799697 12.841547 12.500000 -- -- -- -- -- -- -- Value at End of Year 13.909560 13.799697 12.841547 -- -- -- -- -- -- -- Venture III No. of Units 8,153 11,031 1,513 -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 13.788263 12.837297 12.500000 -- -- -- -- -- -- -- Value at End of Year 13.891054 13.788263 12.837297 -- -- -- -- -- -- -- Venture III No. of Units 448 3,517 5,217 -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 13.753981 12.824537 -- -- -- -- -- -- -- -- Value at End of Year 13.835628 13.753981 -- -- -- -- -- -- -- -- Venture III No. of Units 861 10,054 -- -- -- -- -- -- -- -- U.S. LARGE CAP TRUST (FORMERLY U.S. LARGE CAP VALUE TRUST) - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 15.345044 14.135691 13.591728 12.664320 9.419481 11.886116 -- -- -- -- Value at End of Year 15.014071 15.345044 14.135691 13.591728 12.664320 9.419481 -- -- -- -- Venture III No. of Units 1,049,829 1,244,178 1,602,506 1,961,610 1,462,835 642,992 -- -- -- -- NY Venture III No. of Units 102,502 133,898 150,052 155,958 132,369 38,532 -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 16.100219 14.838746 14.274847 13.307497 9.902818 12.500000 -- -- -- -- Value at End of Year 15.745027 16.100219 14.838746 14.274847 13.307497 9.902818 -- -- -- -- Venture III No. of Units 983,914 1,284,989 1,714,204 2,067,264 2,066,680 1,174,328 -- -- -- -- NY Venture III No. of Units 142,468 185,835 319,494 429,814 341,199 78,162 -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 15.988741 14.758060 14.218473 13.274886 9.893359 12.500000 -- -- -- -- Value at End of Year 15.612438 15.988741 14.758060 14.218473 13.274886 9.893359 -- -- -- -- Venture III No. of Units 397,789 523,972 585,268 654,850 76,646 7,784 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 15.951748 14.731264 14.199735 13.264045 9.890208 12.500000 -- -- -- -- Value at End of Year 15.568493 15.951748 14.731264 14.199735 13.264045 9.890208 -- -- -- -- Venture III No. of Units 100,916 122,859 161,390 300,120 220,893 155,489 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 18.334977 16.957493 16.370100 15.314397 12.500000 -- -- -- -- -- Value at End of Year 17.867479 18.334977 16.957493 16.370100 15.314397 -- -- -- -- -- Venture III No. of Units 28,643 47,596 48,942 91,385 30,859 -- -- -- -- -- U.S. LARGE CAP TRUST (FORMERLY U.S. LARGE CAP VALUE TRUST) - SERIES I SHARES (units first credited 8-01-2001) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year 14.886458 13.676088 13.138724 12.211016 9.057170 12.307781 12.658745 -- -- -- Value at End of Year 14.591540 14.886458 13.676088 13.138724 12.211016 9.057170 12.307781 -- -- -- Venture III No. of Units 292,300 376,821 470,989 655,604 627,288 642,670 118,594 -- -- --
U-54 Venture III Prior
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 ----------- ----------- ---------- ---------- ---------- --------- ---------- -------- -------- -------- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year 14.570228 13.392238 12.872436 11.969518 8.882477 12.076441 12.500000 -- -- -- Value at End of Year 14.274401 14.570228 13.392238 12.872436 11.969518 8.882477 12.076441 -- -- -- Venture III No. of Units 272,523 392,469 490,787 677,477 725,126 805,400 13,438 -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year 14.452351 13.303775 12.806545 11.926177 8.863588 12.068885 12.500000 -- -- -- Value at End of Year 14.137566 14.452351 13.303775 12.806545 11.926177 8.863588 12.068885 -- -- -- Venture III No. of Units 32,337 32,376 36,858 55,972 76,646 68,919 13,438 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 14.413274 13.274423 12.784664 11.911766 8.857296 12.066364 12.500000 -- -- -- Value at End of Year 14.092258 14.413274 13.274423 12.784664 11.911766 8.857296 12.066364 -- -- -- Venture III No. of Units 73,770 90,019 128,844 223,280 198,149 208,756 43,256 -- -- -- UTILITIES TRUST - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 24.789544 19.271293 16.807837 13.222661 10.012642 11.514948 -- -- -- -- Value at End of Year 30.989899 24.789544 19.271293 16.807837 13.222661 10.012642 -- -- -- -- Venture III No. of Units 487,933 520,557 552,143 485,377 347,539 136,524 -- -- -- -- NY Venture III No. of Units 40,567 41,179 27,420 9,793 5,898 1,856 -- -- -- -- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 26.847968 20.881905 18.221642 14.342071 10.865724 12.500000 -- -- -- -- Value at End of Year 33.546335 26.847968 20.881905 18.221642 14.342071 10.865724 -- -- -- -- Venture III No. of Units 129,562 193,282 233,855 225,798 190,234 101,440 -- -- -- -- NY Venture III No. of Units 45,373 67,955 64,311 51,787 14,381 9,361 -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 26.662134 20.768391 18.149695 14.306938 10.855356 12.500000 -- -- -- -- Value at End of Year 33.263962 26.662134 20.768391 18.149695 14.306938 10.855356 -- -- -- -- Venture III No. of Units 262,129 297,814 330,595 255,137 110,420 17,159 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 26.600468 20.730689 18.125780 14.295247 10.851911 12.500000 -- -- -- -- Value at End of Year 33.170358 26.600468 20.730689 18.125780 14.295247 10.851911 -- -- -- -- Venture III No. of Units 36,452 48,417 62,875 54,183 37,657 14,272 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 27.824050 21.716710 19.016315 15.020136 12.500000 -- -- -- -- -- Value at End of Year 34.643904 27.824050 21.716710 19.016315 15.020136 -- -- -- -- -- Venture III No. of Units 38,771 43,534 45,405 29,784 12,075 -- -- -- -- -- UTILITIES TRUST - SERIES I SHARES (units first credited 8-01-2001) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year 17.341447 13.456892 11.710274 9.198854 6.951501 9.243770 10.844677 -- -- -- Value at End of Year 21.730128 17.341447 13.456892 11.710274 9.198854 6.951501 9.243770 -- -- -- Venture III No. of Units 79,120 136,213 174,178 252,067 276,737 264,826 76,161 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year 19.862364 15.420799 13.425966 10.551871 7.977953 10.614010 12.500000 -- -- -- Value at End of Year 24.876532 19.862364 15.420799 13.425966 10.551871 7.977953 10.614010 -- -- -- Venture III No. of Units 81,943 87,809 100,167 115,721 119,753 119,237 567 -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year 19.701770 15.318994 13.357274 10.513672 7.960992 10.607363 12.500000 -- -- -- Value at End of Year 24.638240 19.701770 15.318994 13.357274 10.513672 7.960992 10.607363 -- -- -- Venture III No. of Units 5,328 5,832 6,172 19,800 15,233 17,159 567 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 19.648495 15.285191 13.334453 10.500964 7.955341 10.605146 12.500000 -- -- -- Value at End of Year 24.559275 19.648495 15.285191 13.334453 10.500964 7.955341 10.605146 -- -- -- Venture III No. of Units 21,711 27,139 33,725 41,942 32,834 32,617 15,856 -- -- -- VALUE TRUST - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 19.486187 16.399020 14.838145 13.113578 9.618617 12.656613 -- -- -- -- Value at End of Year 20.699764 19.486187 16.399020 14.838145 13.113578 9.618617 -- -- -- -- Venture III No. of Units 555,610 762,073 652,914 805,980 399,055 135,128 -- -- -- -- NY Venture III No. of Units 45,299 40,150 28,146 24,103 4,930 3,908 -- -- -- --
U-55 Venture III Prior
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 ----------- ----------- ---------- ---------- ---------- --------- ---------- -------- -------- -------- Contracts with the Annual Step Death Benefit (all contracts issued in NY or issued prior to 5-5-2003 in all other states) Value at Start of Year 19.200557 16.166695 14.635222 12.940716 9.496575 12.500000 -- -- -- -- Value at End of Year 20.386088 19.200557 16.166695 14.635222 12.940716 9.496575 -- -- -- -- Venture III No. of Units 131,979 179,690 234,496 269,435 282,804 195,802 -- -- -- -- NY Venture III No. of Units 44,247 44,974 45,053 48,220 19,711 22,239 -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003) or Contracts with GEM (all issue dates) Value at Start of Year 19.067621 16.078797 14.577434 12.909015 9.487504 12.500000 -- -- -- -- Value at End of Year 20.214439 19.067621 16.078797 14.577434 12.909015 9.487504 -- -- -- -- Venture III No. of Units 277,579 341,532 317,248 290,234 142,695 26,508 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 19.023541 16.049614 14.558218 12.898462 9.484479 12.500000 -- -- -- -- Value at End of Year 20.157565 19.023541 16.049614 14.558218 12.898462 9.484479 -- -- -- -- Venture III No. of Units 24,934 23,342 43,909 50,385 56,142 21,726 -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-2003) Value at Start of Year 23.993769 20.273142 18.416813 16.341700 12.500000 -- -- -- -- -- Value at End of Year 25.385763 23.993769 20.273142 18.416813 16.341700 -- -- -- -- -- Venture III No. of Units 20,726 22,490 22,585 26,969 16,361 -- -- -- -- -- VALUE TRUST - SERIES I SHARES (units first credited 8-01-2001) Contracts with no Optional Benefits (not issued in NY) Value at Start of Year 26.785403 22.495273 20.316970 17.934088 13.139390 17.304087 17.953510 -- -- -- Value at End of Year 28.509469 26.785403 22.495273 20.316970 17.934088 13.139390 17.304087 -- -- -- Venture III No. of Units 83,029 99,856 126,879 199,666 171,980 265,249 76,144 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003 (not issued in NY)) Value at Start of Year 18.458164 15.509501 14.014638 12.377130 9.072620 11.954290 12.500000 -- -- -- Value at End of Year 19.636370 18.458164 15.509501 14.014638 12.377130 9.072620 11.954290 -- -- -- Venture III No. of Units 87,871 107,622 133,116 199,589 186,281 217,663 8,999 -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 5-5-2003 (not issued in NY)) or Contracts with GEM (all issue dates (not issued in NY)) Value at Start of Year 18.308850 15.407059 13.942906 12.332304 9.053320 11.946808 12.500000 -- -- -- Value at End of Year 19.448172 18.308850 15.407059 13.942906 12.332304 9.053320 11.946808 -- -- -- Venture III No. of Units 16,260 17,075 19,106 18,710 19,287 26,508 8,999 -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-2003) Value at Start of Year 18.259349 15.373062 13.919071 12.317400 9.046893 11.944310 12.500000 -- -- -- Value at End of Year 19.385840 18.259349 15.373062 13.919071 12.317400 9.046893 11.944310 -- -- -- Venture III No. of Units 34,251 40,841 59,482 73,701 113,062 160,771 90,953 -- -- --
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