485BPOS 1 vadupdate08.htm REGISTRATION STATEMENT ON FORM N-6 -- HTML vadupdate08.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing
As filed with the Securities and Exchange    Registration No. 333-47094 
Commission on April 10, 2008    Registration No. 811-04208 
 
 
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-6
 
         REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933    [X] 
                   Pre-Effective Amendment No.    [ ] 
                   Post-Effective Amendment No. 13    [X] 
 
         AMENDMENT TO REGISTRATION STATEMENT UNDER THE INVESTMENT 
         COMPANY ACT OF 1940    [X] 
(Check appropriate box or boxes.)

 
Select*Life Variable Account
(Exact Name of Registrant)
 
ReliaStar Life Insurance Company
(Name of Depositor)
 
20 Washington Avenue So.
Minneapolis, MN 55401
(Address of Depositor’s Principal Executive Offices) (Zip Code)
 
(612) 372-5507
(Depositor’s Telephone Number, including Area Code)

J. Neil McMurdie, Counsel
ING Americas (U.S. Legal Services)
One Orange Way, Windsor, Connecticut 06095-4774
(Name and Address of Agent for Service)
 
Jeffery R. Berry, Chief Counsel
ING Americas (U.S. Legal Services)
One Orange Way, Windsor, Connecticut 06095-4774

 
It is proposed that this filing will become effective (check appropriate box):     
[ ]                   immediately upon filing pursuant to paragraph (b) of Rule 485     
[X]                   on April 28, 2008, pursuant to paragraph (b) of Rule 485     
[ ]                   60 days after filing pursuant to paragraph (a)(1)     
[ ]                   on    , pursuant to paragraph (a)(1) of Rule 485.     
 
If appropriate, check the following box:     
[ ]                   This post-effective amendment designates a new effective date for a previously filed post- 
                   effective amendment.     


PART A

INFORMATION REQUIRED IN A PROSPECTUS


VARIABLE ACCUMULATION DESIGNSM

A SURVIVORSHIP FLEXIBLE PREMIUM VARIABLE UNIVERSAL LIFE INSURANCE POLICY
 
issued by
ReliaStar Life Insurance Company and its Select*Life Variable Account

The Policy    Fund Managers 
· Is issued by ReliaStar Life Insurance Company.    Funds managed by the following investment 
· Is returnable by you during the free look period if you are not satisfied.    managers are available through the policy: 
Premium Payments    · Alliance Bernstein, L.P. 
· Are flexible, so the premium amount and frequency may vary.    · BAMCO, Inc. 
· Are allocated to the variable account and the fixed account, based on your    · BlackRock Investment Management, LLC 
   instructions.    · Capital Research and Management 
· Are subject to specified fees and charges.       Company 
The Policy Value    · Columbia Management Advisors, LLC 
· Is the sum of your holdings in the fixed account, the variable account and the    · Directed Services LLC  
   loan account.    · Evergreen Investment Management 
· Has no guaranteed minimum value under the variable account. The value       Company, LLC 
     varies with the value of the subaccounts you select.    · Fidelity Management & Research Co. 
· Has a minimum guaranteed rate of return for amounts in the fixed account.    · Ibbotson Associates 
· Is subject to specified fees and charges, including possible surrender charges.    · ING Clarion Real Estate Securities L.P. 
Death Benefit Proceeds    · ING Investment Management Advisors, 
· Are paid if your policy is in force when the surviving joint insured person       B.V. 
   dies.    · ING Investment Management Co. 
· Are calculated under your choice of options until age 100 of the younger of    · J.P. Morgan Investment Management Inc. 
   the joint insured persons:    · Julius Baer Investment Management, LLC 
    Option 1 – the base death benefit is the greater of the amount of insurance    · Legg Mason Capital Management, Inc. 
         coverage you have selected or your policy value multiplied by the    · Lehman Brothers Asset Management 
         appropriate factor described in Appendix A;        LLC  
    Option 2 – the base death benefit is the greater of the amount of insurance    · Marsico Capital Management, LLC 
         coverage you have selected plus the policy value or your policy value    · Massachusetts Financial Services 
         multiplied by the appropriate factor described in Appendix A; or       Company 
    Option 3 – the base death benefit is the greater of the amount of insurance    · Morgan Stanley Investment Management, 
         coverage you have selected plus premiums paid minus withdrawals taken       Inc. (d/b/a Van Kampen) 
         or your policy value multiplied by the appropriate factor described in    · Neuberger Berman, LLC 
         Appendix A.    · Neuberger Berman Management Inc. 
· Are equal to the base death benefit plus any rider benefits minus any    · OppenheimerFunds, Inc. 
   outstanding policy loans, accrued loan interest and unpaid fees and charges.    · Pacific Investment Management Company 
· Are generally not subject to federal income tax if your policy continues to       LLC 
   meet the federal income tax definition of life insurance.    · Pioneer Investment Management, Inc. 
Sales Compensation    · T. Rowe Price Associates, Inc. 
· We pay compensation to broker/dealers whose registered representatives sell    · UBS Global Asset Management 
   the policy. See Distribution of the Policy, page 73, for further information       (Americas) Inc. 
   about the amount of compensation we may pay.    · Wells Capital Management, Inc. 



This prospectus describes what you should know before purchasing the Variable Accumulation DesignSM survivorship variable universal life insurance policy. Please read it carefully and keep it for future reference.

Neither the Securities and Exchange Commission (“SEC”) nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is accurate or complete. Any representation to the contrary is a criminal offense.

The policy described in this prospectus is not a deposit with, obligation of or guaranteed or endorsed by any bank, nor is it insured or guaranteed by the FDIC, the Federal Reserve Board or any other government agency.

The date of this prospectus is April 28, 2008.


TABLE OF CONTENTS
 
    Page            Page 
POLICY SUMMARY    3    Termination of Coverage        56 
The Policy's Features and Benefits    3    TAX CONSIDERATIONS        58 
Factors You Should Consider Before        Tax Status of the Company        58 
   Purchasing a Policy    6    Tax Status of the Policy        59 
Fees and Charges    8    Diversification and Investor Control Requirements    59 
THE COMPANY, THE VARIABLE        Tax Treatment of Policy Death Benefits        60 
   ACCOUNT AND THE FIXED ACCOUNT    14    Distributions Other than Death Benefits        60 
ReliaStar Life Insurance Company    14    Other Tax Matters        62 
The Investment Options    16    ADDITIONAL INFORMATION        66 
DETAILED INFORMATION ABOUT        General Policy Provisions        66 
   THE POLICY    20    Distribution of the Policy        73 
Underwriting     21    Legal Proceedings        76 
Purchasing a Policy    21    Financial Statements        77 
Fees and Charges    25    APPENDIX A        A-1 
Death Benefits    32    APPENDIX B        B-1 
Additional Insurance Benefits    38    APPENDIX C        B-1 
Policy Value    44    MORE INFORMATION IS AVAILABLE    Back Cover 
Special Features and Benefits    47             

TERMS TO UNDERSTAND

The following is a list of some of the key defined terms and the page number on which each is defined:

    Page Where        Page Where 
Term    Defined    Term    Defined 
Age    21    Policy Value    44 
Fixed Account    4    Preferred Loans    47 
Fixed Account Value    44    Segment or Coverage Segment    32 
Loan Account    46    Surrender Value    56 
Loan Account Value    46    Valuation Date    45 
Monthly Processing Date    27    Variable Account    4 
Net Premium    3    Variable Account Value    45 
Policy Date    21         

“ReliaStar,” “we,” “us,” “our” and the “company” refer to ReliaStar Life Insurance Company. “You” and “your” refer to the policy owner. The policy owner is the individual, entity, partnership, representative or party who may exercise all rights over the policy and receive the policy benefits during the surviving joint insured person's lifetime.

State Variations – State variations are covered in a special policy form used in that state. This prospectus provides a general description of the policy. Your actual policy and any riders are the controlling documents. If you would like to review a copy of the policy and riders, contact our Customer Service Center or your agent/registered representative.

You may contact us about the policy at our:    ING Customer Service Center 
    P.O. Box 5011 
    Minot, North Dakota 58702-5011 
    1-877-886-5050 
    www.ingservicecenter.com  

Variable Accumulation DesignSM
2


POLICY SUMMARY

This summary highlights the features and benefits of the policy, the risks that you should consider before purchasing a policy and the fees and charges associated with the policy and its benefits. More detailed information is included in the other sections of this prospectus that should be read carefully before you purchase the policy.

  The Policy's Features and Benefits

Premium    · You choose when to pay and how much to pay; but you cannot pay additional premiums 
Payments          after age 100 of the younger of the joint insured persons and we may refuse to accept any 
          premium less than $25. 
    · You will need to pay sufficient premiums to keep the policy in force. Failure to pay 
See Premium         sufficient premiums may cause your policy to lapse without value. 
Payments, page     
22.     · We may refuse any premium that would disqualify your policy as life insurance under 
          Section 7702 of the Internal Revenue Code or that would cause your policy to become a 
          modified endowment contract.  
    · We deduct a premium expense charge from each premium payment and credit the 
          remaining premium (the “net premium”) to the variable account or the fixed account 
          according to your instructions. 

Free Look Period    · During the free look period, you have the right to examine your policy and return it for a 
        refund if you are not satisfied for any reason. 
See Free Look    · The free look period is generally ten days from your receipt of the policy, although certain 
Period, page 24.        states may allow more than ten days. The length of the free look period and the free look 
    refund that applies in your state will be stated in your policy.
    · During the free look period, your net premium will be allocated to the subaccount that invests in 
        the ING Liquid Assets Portfolio. See Allocation of Net Premium, page 23.  
    · Generally, there are two types of free look refunds: 
        Some states require a return of all premium we have received; and 
        Other states require a return of all premium we have received plus any earnings or less 
        any losses attributable to the amount allocated to the money market subaccount. 

Temporary    · If you apply and qualify, we may issue temporary insurance equal to the amount of 
Insurance        insurance for which you applied. 
    · The maximum amount of temporary insurance is $1 million, which includes other in-force 
        coverage you have with us. 
See Temporary    · Temporary insurance may not be available in all states. 
Insurance, page 24.     

 
Death Benefits    · Death benefits are paid if your policy is in force when the surviving joint insured person 
        dies. 
See Death Benefits,    · Until age 100 of the younger of the joint insured persons, the amount of the death benefit 
page 32.        will depend on which death benefit option is in effect when the surviving joint insured 
        person dies. 
    · You may choose between one of three death benefit options: 
            Option 1 – the base death benefit is the greater of the amount of insurance coverage 
            you have selected or your policy value multiplied by the appropriate factor described in 
            Appendix A; 
            Option 2 – the base death benefit is the greater of the amount of insurance coverage 
            you have selected plus your policy value or your policy value multiplied by the 
            appropriate factor described in Appendix A; or 
            Option 3 – the base death benefit is the greater of the amount of insurance coverage 
            you have selected plus premiums paid minus withdrawals taken or your policy value 
            multiplied by the appropriate factor described in Appendix A. 
    · After age 100 of the younger of the joint insured persons, the base death benefit under all 
        options will be the policy value. 
    · We will reduce the death benefit proceeds payable under any death benefit option by any 
        outstanding policy loans and accrued loan interest and unpaid fees and charges. 
    · The death benefit is generally not subject to federal income tax if your policy continues to 
        meet the federal income tax definition of life insurance. 


Variable Accumulation DesignSM
3


Death Benefit    · Generally, your policy will not lapse as long as your policy value minus any surrender 
Guarantees        charge, loan amount and unpaid fees and charges (the “surrender value”) is enough to 
        cover the periodic fees and charges, when due. 
See Death Benefit    · However, the policy has three death benefit guarantees which provide that the policy will 
Guarantees,        not lapse even if the surrender value is not enough to pay the periodic fees and charges, 
page 36.        when due: 
            The Basic Death Benefit Guarantee is standard on every policy. The length of the 
            guarantee period is specified in your policy and is uniquely determined on a policy-by- 
            policy basis and depends on the issue ages and risk classes of the joint insured persons, 
            the death benefit option and any optional rider benefits. Under this guarantee your 
            policy will not lapse provided your cumulative premium payments, minus any partial 
            withdrawals or loans, are at least equal to the sum of minimum premium payments to 
            the next monthly processing date. There is no charge for this guarantee; 
            The Supplemental Death Benefit Guarantee is standard on every policy. Under this 
            guarantee your policy will not lapse during the Supplemental Death Benefit Guarantee 
            period if on each monthly processing date since the policy date your cumulative 
            premium payments, minus any partial withdrawals or loans, are at least equal to 40% of 
            the sum of minimum premium payments to the next monthly processing date. The 
            supplemental guarantee period begins on the policy date and is equal to the death 
            benefit guarantee period shown in your policy, multiplied by 40% and rounded to the 
            lower whole number of policy years. The supplemental guarantee period may not 
            exceed ten policy years. There is no charge for this guarantee; and 
            The lifetime death benefit guarantee is an optional rider benefit that may be available 
            on new policies issued on or after the later of February 20, 2006, or the date the rider is 
            approved in your state. You may add this rider only when you apply for the policy. 
            Under this guarantee your policy will not lapse provided your cumulative premium 
            payments, minus any partial withdrawals and loans, are at least equal to the sum of 
            lifetime death benefit guarantee premium payments as shown in your policy to the next 
            monthly processing date. There is no charge for this rider guarantee. 

Rider Benefits    · Your policy may include additional insurance benefits, attached by rider. There are two 
        types of rider benefits: 
See Additional    Optional rider benefits that you must select before they are added to your policy; 
Insurance Benefits,            and  
page 38.            Rider benefits that automatically come with your policy. 
    · In many cases, we deduct an additional monthly charge for these benefits. 
    · Not all riders may be available under your policy. 

Investment    · You may allocate your net premiums to the subaccounts of the Select*Life Variable 
Options        Account (the “variable account”) and our fixed account. 
    · The variable account is one of our separate accounts and consists of subaccounts that 
        invest in corresponding funds. When you allocate premiums to a subaccount, we invest 
See The Investment        any net premiums in shares of the corresponding fund. 
Options, page 16.    · Your variable account value will vary with the investment performance of the funds 
        underlying the subaccounts and the charges we deduct from your variable account value. 
    · The fixed account is part of our general account and consists of all of our assets other than 
        those in our separate accounts (including the variable account) and loan account. 
    · We credit interest of at least 3.00% per year on amounts allocated to the fixed account. 
· We may, in our sole discretion, credit interest in excess of 3.00%.

Transfers    · You currently may make an unlimited number of transfers between the subaccounts 
        and to the fixed account each policy year. We reserve the right, however, to limit you to 
See Transfers,        12 transfers each policy year, and transfers are subject to any other limits, conditions and 
page 48.        restrictions that we or the funds whose shares are involved may impose. See Limits on 
    Frequent or Disruptive Transfers, page 50.
· There are certain restrictions on transfers from the fixed account.
    · We currently do not charge for transfers. We reserve the right, however, to charge up to 
        $25 for each transfer. 


Variable Accumulation DesignSM
4


Asset Allocation    · Dollar cost averaging is a systematic program of transferring policy values to selected 
Programs         investment options. It is intended to help reduce the risk of investing too much when the 
         price of a fund's shares is high. It also helps to reduce the risk of investing too little when 
         the price of a fund's shares is low. 
See Dollar Cost    · Automatic rebalancing is a systematic program through which your variable and fixed 
Averaging, page 49.         account values are periodically reallocated among your selected investment options to 
         maintain the allocation percentages you have chosen. 
See Automatic    · There is currently no charge to participate in the dollar cost averaging or automatic 
Rebalancing,         rebalancing programs, although we reserve the right to assess a charge in the future. 
page 50.    · Neither of these asset allocation programs assures a profit nor do they protect you 
         against a loss in a declining market. 

Loans    · You may take loans against your policy's surrender value. We reserve the right to limit 
         borrowing during the first policy year. 
See Loans, page 47.    · Generally, a loan must be at least $500 and may not exceed 90% of your surrender value. 
    · When you take a loan from your policy we transfer an amount equal to your loan to the 
         loan account as collateral for your loan. The loan account is part of our general account. 
    · We credit amounts held in the loan account with interest at an annual rate equal to 3.00%. 
    · We also charge interest on loans. Interest is payable in advance and accrues daily at a 
         current annual rate of 4.76%. 
    · After the tenth policy year, preferred loans are available. For preferred loans interest is 
         payable in advance at an annual rate currently equal to 2.91% (guaranteed not to exceed 
         3.38%) on the portion of your loan account that is not in excess of the policy value, minus 
the total of all premiums paid net of all partial withdrawals.
    · Loans reduce your policy's death benefit proceeds and may cause your policy to 
         lapse.  
    · Loans may have tax consequences, and you should consult with a qualified tax adviser 
         before taking a loan against your policy’s surrender value. 

Partial    · After the first policy year, you may withdraw part of your policy's surrender value. 
Withdrawals    · We currently allow one partial withdrawal each year during policy years two through ten 
         and 12 partial withdrawals each policy year thereafter. 
See Partial    · A partial withdrawal must be at least $500. 
Withdrawals,    · In policy years two through 15 you may not withdraw more than 20% of your surrender 
page 55.          value. 
    · We currently charge $10 for each partial withdrawal, but we reserve the right to charge up 
         to $25 for each partial withdrawal. 
    · Partial withdrawals reduce your policy's base death benefit and policy value. 
    · Partial withdrawals may also have tax consequences, and you should consult with a 
         qualified tax adviser before taking a partial withdrawal from your policy. 

Surrenders    · You may surrender your policy for its surrender value at any time before the death of the 
         surviving joint insured person. 
See Surrender,    · The surrender value of a policy is equal to the policy value minus any surrender charge, 
page 56.         loan amount and unpaid fees and charges. 
    · Surrender charges apply for 15 years from the issue date of your policy and for 15 years 
         after each increase in your insurance coverage. The initial surrender charges are level for 
         the first five years and then decrease uniformly each month to zero at the end of the 
         fifteenth policy year. For any requested increase in your insurance coverage, an additional 
         surrender charge begins at zero, increases uniformly each month until it reaches the 
         maximum after three years and then reduces uniformly each month until it becomes zero 
         at the end of the fifteenth segment year. 


Variable Accumulation DesignSM 5


Surrenders    · The initial surrender charge rates vary depending on the gender, risk class and age of each 
(continued)          of the joint insured persons at issue. Surrender charge rates for increases in your insurance 
         coverage vary depending on the gender, risk class and age of each of the joint insured 
         persons at the time of the increase. 
    · The surrender charge is neither assessed upon nor reduced because of a requested decrease 
         in your insurance coverage. 
    · If the surrender charge exceeds the available policy value minus the loan amount and 
         unpaid fees and charges, there will be no proceeds paid to you on surrender. 
    · All insurance coverage ends on the date we receive your surrender request, in good order. 
    · If you surrender your policy, it cannot be reinstated. 
    · Surrendering the policy may have tax consequences, and you should consult with a 
         qualified tax adviser before surrendering your policy. 

Reinstatement    · Reinstatement means putting a lapsed policy back in force. 
    · You may reinstate your policy and riders within five years of its lapse if you did not 
See Reinstatement,         surrender your policy, you still own the policy and each joint insured person is still 
page 57.         insurable. 
    · You will need to pay the required reinstatement premium. 
    · If the Supplemental Death Benefit Guarantee lapses, it cannot be reinstated. 
    · A policy that is reinstated more than 90 days after lapsing may be considered a modified 
         endowment contract for tax purposes. 
    · Reinstating your policy may have tax consequences, and you should consult with a 
         qualified tax adviser before reinstating your policy. 


Factors You Should Consider Before Purchasing a Policy

The decision to purchase a policy should be discussed with your agent/registered representative. Make sure you understand the policy's investment options, its other features and benefits, its risks and the fees and charges you will incur when you consider purchasing the policy and investing in the subaccounts of the variable account.

Life Insurance    · The policy is not a short-term investment and should be purchased only if you need life 
Coverage         insurance coverage. Evaluate your need for life insurance coverage before purchasing a 
         policy. 
    · You should purchase a policy only if you intend and have the financial capability to keep 
         the policy in force for a substantial period of time. 

Fees and Charges    · In the early policy years the surrender charge usually exceeds the policy value because the 
         surrender charge is usually more than the cumulative minimum monthly premiums minus 
See Fees and         policy fees and charges. Therefore, you should purchase a policy only if you intend and 
Charges, page 25.         have the financial capability to keep the policy in force for a substantial period of time. 
    · A policy's fees and charges reflect the costs associated with its features and benefits, the 
         services we render, the expenses we expect to incur and the risks we assume under the 
         policy. 
    · We believe the policy's fees and charges, in the aggregate, are reasonable, but before 
         purchasing a policy you should compare the value that the policy’s various features and 
         benefits and the available services have to you, given your particular circumstances, with 
         the fees and charges associated with those features, benefits and services. 

Lapse    · Your policy will not lapse and your insurance coverage under the policy will continue if 
         on any monthly processing date: 
See Lapse, page 56.          A death benefit guarantee is in effect; or 
          Your surrender value is enough to pay the periodic fees and charges when due. 
    · If you do not meet these conditions, we will send you notice and give you a 61 day grace 
         period to make a sufficient premium payment. 
    · If you do not make a sufficient premium payment by the end of the 61 day grace period, 
         your life insurance coverage will terminate and your policy will lapse. 


Variable Accumulation DesignSM
6


Exchanges    · Replacing your existing life insurance policy(ies) and/or annuity contract(s) with the 
         policy described in this prospectus may not be beneficial to you. 
See Purchasing a    · Before purchasing a policy, determine whether your existing policy(ies) and/or contract(s) 
Policy, page 21.         will be subject to fees or penalties upon surrender or cancellation. 
    · Also compare the fees, charges, coverage provisions and limitations, if any, of your 
         existing policy(ies) and/or contract(s) with those of the policy described in this prospectus. 

Investment Risk    · You should evaluate the policy's long-term investment potential and risks before 
         purchasing a policy.     
See The Variable    · For amounts you allocate to the subaccounts of the variable account: 
Account, page 16.            Your values will fluctuate with the markets, interest rates and the performance of the 
            underlying funds;     
            You assume the risk that your values may decline or not perform to your expectations; 
            Your policy could lapse without value or you may be required to pay additional 
            premium because of poor fund performance;     
            Each fund has various investment risks, and some funds are riskier than others; 
            There is no assurance that any of the funds will achieve its stated investment objective; 
            and     
            You should read each fund's prospectus and understand the risks associated with the 
            fund before allocating your premiums to its corresponding subaccount. 
    · For amounts you allocate to the fixed account:     
            Interest rates we declare will change over time; and     
            You assume the risk that interest rates may decline, although never below the 
            guaranteed minimum interest rate of 3.00%.     

Taxation    · Under current federal income tax law, death benefits of life insurance policies generally 
        are not subject to income tax. In order for this treatment to apply, the policy must qualify 
See TAX        as a life insurance contract. We believe it is reasonable to conclude that the policy will 
CONSIDERATIONS,        qualify as a life insurance contract.     
page 58.    · Assuming the policy qualifies as a life insurance contract under current federal income tax 
        law, your policy earnings are generally not subject to income tax as long as they remain 
        within your policy. Depending on your circumstances, however, the following events may 
        have tax consequences for you:     
          Reduction in the amount of your insurance coverage    Partial withdrawals 
          Loans    Surrender 
          Lapse    Reinstatement 
    · In addition, if your policy is a modified endowment contract, a partial withdrawal, 
        surrender or a loan against or secured by the policy will be taxable to you to the extent of 
        any gain in the policy. A penalty tax may be imposed on a distribution from a modified 
        endowment contract as well.      
    · There is always the possibility that the tax treatment of the policy could be changed by 
        legislation or otherwise. You should consult a qualified tax adviser with respect to 
        legislative developments and their effect on the policy.     
    · Consult with a qualified legal or tax adviser before you purchase a policy. 

Sales    · We pay compensation to broker/dealers whose registered representatives sell the policy. 
Compensation    · Broker/dealers may be able to choose to receive compensation under various payment 
        options, but their choice will not affect the fees and charges you will pay for the policy. 
See Distribution of the    · We generally pay more compensation on premiums paid for base insurance coverage than 
Policy, page 73.        we do on premiums paid for coverage under a term rider. Discuss with your 
        agent/registered representative the right blend of base coverage and term rider coverage 
        for you.     

Other Products    · We and our affiliates offer other insurance products that may have different features, 
         benefits, fees and charges. These other products may better match your needs. 
    · Contact your agent/registered representative if you would like information about these 
         other products.     


Variable Accumulation DesignSM
7


Fees and Charges

The following tables describe the fees and charges you will pay when buying, owning and surrendering the policy.

Transaction Fees and Charges. The following table describes the fees and charges deducted at the time you make a premium payment or make certain other transactions. See Transaction Fees and Charges, page 25.

        Amount Deducted 

Charge    When Deducted    Maximum Guaranteed Charges 

Premium Expense    · When you make a    · 6.25% of each premium payment. 
Charge         premium payment.     

 
Partial Withdrawal    · When you take a    · $25. 
Fee         partial withdrawal.     

 
Surrender Charge 1    · When you    Range from 
         surrender or lapse    · $11.83 to $47.82 per $1,000 of insurance coverage. 
         your policy during     
         the first 15 policy    Representative joint insured persons 
         years (or 15 years    · $28.85 per $1,000 of insurance coverage. 
         from an increase in    · The representative joint insured persons are a male, age 55 in the 
         your insurance         preferred no tobacco risk class, and a female, age 55, in the 
         coverage).    preferred no tobacco risk class, with an amount of insurance in 
             effect of $250,000. 

 
Transfer Charge 2    · Each time you    · $25. 
         make a transfer     
         between     
         investment options.     

 
Excess Illustration    · Each time you    · $50. 
Fee 2         request an     
         illustration after     
         the first each     
         policy year.     

 
Excess Annual    · Each time you    · $50. 
Policy Report Fee 2         request an annual     
         policy report after     
         the first each     
         policy year.     

1      The surrender charge rates vary based on the gender, age and risk class of each joint insured person. The rates shown for the representative insured person are for the first segment year, and you may get information about the rates that would apply to you by contacting your agent/registered representative for a personalized illustration. Surrender charge rates remain level for the first five years then decrease uniformly each month to zero at the end of the surrender charge period. For any requested increase in your insurance coverage, the surrender charge begins at zero and increases uniformly each month to the maximum after three years and then reduces uniformly each month to zero at the end of the fifteenth segment year.
 
2      We currently do not assess this charge.
 

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Transaction Fees and Charges, continued.

        Amount Deducted 

Charge    When Deducted    Maximum Guaranteed Charges 

 
Overloan Lapse    · On the monthly    · $3.50 of the policy value. 3 
Protection Rider         processing date on     
         or next following     
         the date we receive     
         your request to     
         exercise the rider     
         benefit.     

Periodic Fees and Charges. The following table describes the maximum guaranteed and charges that could be deducted each month on the monthly processing date, not including fund fees and expenses. See Periodic Fees and Charges, page 27; and Loan Interest, page 47.

        Amount Deducted 

Charge    When Deducted    Maximum Guaranteed Charges 4 

 
Cost of Insurance    · On each monthly    Range from 
Charge 5         processing date.    · $0.01 to $83.33 per $1,000 of insurance coverage. 
 
        Representative joint insured persons 
        · $0.01 per $1,000 of insurance coverage. 
        · The representative joint insured persons are a male, age 55 in the 
             preferred no tobacco risk class, and a female, age 55, in the 
             preferred no tobacco risk class, with an amount of insurance in 
             effect of $250,000. 

 
Administrative    · On each monthly    · $12.  
Charge         processing date.     

3      Your policy value is the sum of your holdings in the fixed account, the variable account and the loan account.
 
4      This table shows the maximum guaranteed charges that may be assessed during any policy year. Current charges may be less than the maximum guaranteed charges shown and you may get information about the charges that would apply to you by contacting your agent/registered representative for a personalized illustration.
 
5      The cost of insurance rates vary based on the amount of insurance coverage and the ages, genders and risk classes of the joint insured persons. Different rates will apply to each segment of insurance coverage. The rates shown for the representative joint insured persons are for the first policy year and they generally increase each year thereafter. The rates shown have been rounded to the nearest penny, and you may get information about the charge that would apply to you by contacting your agent/registered representative for a personalized illustration.
 

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Periodic Fees and Charges, continued.     

 
        Amount Deducted 

Charge    When Deducted    Maximum Guaranteed Charges 6 

 
Monthly Amount    · On each monthly    Range from 
Charge 7         processing date    · $0.07 to $0.68 per $1,000 of insurance coverage. 
         during the first 20     
         policy years (or for    Representative joint insured persons 
         20 years following    · $0.16 per $1,000 of insurance coverage. 
         an increase in your    · The representative joint insured persons are a male, age 55 in the 
         insurance         preferred no tobacco risk class, and a female, age 55, in the 
         coverage).         preferred no tobacco risk class, with an amount of insurance in 
             effect of $250,000. 

 
Mortality and    · On each monthly    · 0.008% monthly (0.90% annually) of variable account value. 
Expense Risk         processing date     
Charge 8         during the first ten     
         policy years.     

 
Loan Interest    · Payable in advance    · 4.76% annually of the amount held in the loan account for non- 
Charge         at the time you         preferred loans. 
         take a loan and    · 3.38% annually of the amount held in the loan account for 
         each policy year         preferred loans. 
         thereafter.     

6      This table shows the maximum guaranteed charges that may be assessed during any policy year. Current charges may be less than the maximum guaranteed charges shown and you may get information about the charges that would apply to you by contacting your agent/registered representative for a personalized illustration.
 
7      The monthly amount charge rates vary based on the amount of insurance coverage and each joint insured person’s age on the policy date and age on the effective date of an increase in insurance coverage, gender and risk class. Different rates will apply to each segment of insurance coverage. The rates shown for the representative joint insured persons are for the first policy year and they generally increase each year thereafter. The rates have been rounded to the nearest penny, and you may get information about the charge that would apply to you by contacting your agent/representative representative for a personalized illustration.
 
8      For policies with policy dates on or after February 20, 2006, the monthly mortality and expense risk charge decreases after the fifth policy year and then again after the tenth policy year. For policies with policy dates prior to February 20, 2006, the monthly mortality and expense risk charge may decrease after the tenth policy year. The monthly mortality and expense risk charge rate shown is rounded to the nearest one hundredth of one percent. See Mortality and Expense Risk Charge, page 28, for the monthly rate without rounding and more information about the amount of this charge.
 

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Optional Rider Fees and Charges. The following table describes the maximum guaranteed charges that could be deducted each month on the monthly processing date for each of the optional rider benefits. See Rider Fees and Charges, page 29.

        Amount Deducted 

Charge    When Deducted    Maximum Guaranteed Charges 9 

 
Additional Insured    · On each monthly    Range from 
Rider 10         processing date.    · $0.08 to $83.33 per $1,000 of rider benefit. 
 
        Representative insured person 
        · $0.69 per $1,000 of rider benefit. 
        · The representative insured person is a male age 55 in the preferred 
             no tobacco risk class. 

 
Four Year Term    · On each monthly    Range from 
Insurance Rider 11         processing date.    · $0.02 to $12.83 per $1,000 of rider benefit. 
 
        Representative joint insured persons 
        · $0.02 per $1,000 of rider benefit. 
        · The representative joint insured persons are a male, age 55 in the 
             preferred no tobacco risk class, and a female, age 55 in the 
             preferred no tobacco risk class, with an amount of insurance 
             coverage in effect of $250,000. 

 
Survivorship Term    · On each monthly    Range from 
Rider 11         processing date.    · $0.02 to $83.33 per $1,000 of rider benefit. 
 
        Representative joint insured persons 
        · $0.02 per $1,000 of rider benefit. 
        · The representative joint insured persons are a male, age 55 in the 
             preferred no tobacco risk class, and a female, age 55 in the 
             preferred no tobacco risk class, with an amount of insurance 
             coverage in effect of $250,000. 

9      This table shows the maximum guaranteed charges that may be assessed during any policy year. Current charges may be less than the maximum guaranteed charges shown and you may get information about the charges that would apply to you by contacting your agent/registered representative for a personalized illustration.
 
10      The rates for this rider vary based on several factors that may include the insured person’s age, gender and risk class. The rates shown for the representative insured person are for the first policy year and they generally increase each year thereafter. The rates shown have been rounded to the nearest penny, and you may get information about the charge that would apply to you by contacting your agent/registered representative for a personalized illustration.
 
11      The rates for these riders vary based on several factors that may include the issue age, gender and risk class of each joint insured person. The rates shown for the representative insured person are for the first policy year and they generally increase thereafter.
 
  The rates shown have been rounded to the nearest penny, and you may get information about the charge that would apply to you by contacting your agent/registered representative for a personalized illustration.
 

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Fund Fees and Expenses. The following table shows the minimum and maximum total gross annual fund expenses that you may pay during the time you own the policy. Fund expenses vary from fund to fund and may change from year to year. For more detail about a fund’s fees and expenses, review the fund’s prospectus. See also Fund Fees and Expenses, page 29.

    Minimum    Maximum 
Total Gross Annual Fund Expenses (deducted from fund assets) 12    0.26%    1.25%  

Total gross annual fund expenses are deducted from amounts that are allocated to the fund. They include management fees and other expenses and may include distribution (12b-1) fees. Other expenses may include service fees that may be used to compensate service providers, including the company and its affiliates, for administrative and policy owner services provided on behalf of the fund. Distribution (12b-1) fees are used to finance any activity that is primarily intended to result in the sale of fund shares.

If a fund is structured as a “fund of funds,” total gross annual fund expenses also include the fees associated with the funds in which it invests. Because of this a fund that is structured as a “fund of funds” may have higher fees and expenses than a fund that invests directly in debt and equity securities. For a list of the “fund of funds” available through the policy, see the chart of funds available through the variable account on page 17.

12      Some funds that are available through the policy have contractual arrangements to waive and/or reimburse certain fund fees and expenses. The minimum and maximum total gross annual fund expenses shown above do not reflect any of these waiver and/or reimbursement arrangements.
 

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     THE COMPANY, THE VARIABLE ACCOUNT AND THE FIXED ACCOUNT

ReliaStar Life Insurance Company

We are a stock life insurance company organized in 1885 and incorporated under the laws of the State of Minnesota. We are admitted to do business in the District of Columbia and all states except New York. Our headquarters is at 20 Washington Avenue South, Minneapolis, Minnesota 55401.

We are a wholly owned indirect subsidiary of ING Groep N.V., a global financial institution active in the fields of insurance, banking and asset management. ING Groep N.V. is headquartered in Amsterdam, The Netherlands. Although we are a subsidiary of ING Groep N.V., ING Groep N.V. is not responsible for the obligations under the policy. The obligations under the policy are solely the responsibility of ReliaStar Life Insurance Company.

We are also a member of the Insurance Marketplace Standards Association (“IMSA”). Companies that belong to IMSA subscribe to a rigorous set of standards that cover the various aspects of sales and service for individually sold life insurance and annuities. IMSA members have adopted policies and procedures that demonstrate a commitment to honesty, fairness and integrity in all customer contacts involving sales and service of individual life insurance and annuity products.

Regulatory Developments – - The Company and the Industry

As with many financial services companies, the company and its affiliates have received informal and formal requests for information from various state and federal governmental agencies and self-regulatory organizations in connection with inquiries and investigations of the products and practices of the financial services industry. In each case, the company and its affiliates have been and are providing full cooperation.

Insurance and Retirement Plan Products and Other Regulatory Matters.

Federal and state regulators and self-regulatory agencies are conducting broad inquiries and investigations involving the insurance and retirement industries. These initiatives currently focus on, among other things, compensation, revenue sharing, and other sales incentives; potential conflicts of interest; potential anticompetitive activity; reinsurance; sales and marketing practices (including sales to seniors); specific product types (including group annuities and indexed annuities); and disclosure. It is likely that the scope of these industry investigations will further broaden before they conclude. The company and certain of its U.S. affiliates have received formal and informal requests in connection with such investigations, and are cooperating fully with each request for information. Some of these matters could result in regulatory action

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involving the company. These initiatives also may result in new legislation and regulation that could significantly affect the financial services industry, including businesses in which the company is engaged. In light of these and other developments, U.S. affiliates of ING, including the company, periodically review whether modifications to their business practices are appropriate.

Investment Product Regulatory Issues. Since 2002, there has been increased governmental and regulatory activity relating to mutual funds and variable insurance products. This activity has primarily focused on inappropriate trading of fund shares; directed brokerage; compensation; sales practices, suitability, and supervision; arrangements with service providers; pricing; compliance and controls; adequacy of disclosure; and document retention.

In addition to responding to governmental and regulatory requests on fund trading issues, ING management, on its own initiative, conducted, through special counsel and a national accounting firm, an extensive internal review of mutual fund trading in ING insurance, retirement, and mutual fund products. The goal of this review was to identify any instances of inappropriate trading in those products by third parties or by ING investment professionals and other ING personnel.

The internal review identified several isolated arrangements allowing third parties to engage in frequent trading of mutual funds within the variable insurance and mutual fund products of ING, and identified other circumstances where frequent trading occurred despite measures taken by ING intended to combat market timing. Each of the arrangements has been terminated and disclosed to regulators, to the independent trustees of ING Funds (U.S.) and in reports previously filed by affiliates of the company with the SEC pursuant to the Securities Exchange Act of 1934, as amended.

Action may be taken by regulators with respect to the company or certain ING affiliates before investigations relating to fund trading are completed. The potential outcome of such action is difficult to predict but could subject the company or certain affiliates to adverse consequences, including, but not limited to, settlement payments, penalties, and other financial liability. It is not currently anticipated, however, that the actual outcome of any such action will have a material adverse effect on ING or ING’s U.S. based operations, including the company.

ING has agreed to indemnify and hold harmless the ING Funds from all damages resulting from wrongful conduct by ING or its employees or from ING’s internal investigation, any investigations conducted by any governmental or self-regulatory agencies, litigation or other formal proceedings, including any proceedings by the SEC. Management reported to the ING Funds Board that ING management believes that the total amount of any indemnification obligations will not be material to ING or ING’s U.S. based operations, including the company.

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Product Regulation. Our products are subject to a complex and extensive array of state and federal tax, securities and insurance laws, and regulations, which are administered and enforced by a number of governmental and self-regulatory authorities. Specifically, U.S. federal income tax law imposes certain requirements relating to product design, administration, and investments that are conditions for beneficial tax treatment of such products under the Internal Revenue Code. See Tax Considerations, page 58, for further discussion of some of these requirements. Failure to administer certain product features could affect such beneficial tax treatment. In addition, state and federal securities and insurance laws impose requirements relating to insurance product design, offering and distribution, and administration. Failure to meet any of these complex tax, securities, or insurance requirements could subject the company to administrative penalties, unanticipated remediation, or other claims and costs.

The Investment Options

You may allocate your premium payments to any of the available investment options. These options include the subaccounts of the variable account and the fixed account. The investment performance of a policy depends on the performance of the investment options you choose.

The Variable Account

We established the Select*Life Variable Account (the “variable account”) on October 11, 1984, as one of our separate accounts under the laws of the State of Minnesota. It is a unit investment trust, registered with the SEC under the Investment Company Act of 1940, as amended (“1940 Act”).

We own all of the assets of the variable account and are obligated to pay all amounts due under a policy according to the terms of the policy. Income, gains and losses credited to, or charged against, the variable account reflect the investment experience of the variable account and not the investment experience of our other assets. Additionally, Minnesota law provides that we cannot charge the variable account with liabilities arising out of any other business we may conduct. This means that if we ever became insolvent, the variable account assets will be used first to pay variable account policy claims. Only if variable account assets remain after these claims have been satisfied can these assets be used to pay owners of other policies and creditors.

The variable account is divided into subaccounts. Each subaccount invests in a corresponding fund. When you allocate premium payments to a subaccount, you acquire accumulation units of that subaccount. You do not invest directly in or hold shares of the funds when you allocate premium payments to the subaccounts of the variable account.

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Funds Available Through the Variable Account. The following chart lists the funds that are available through the variable account.

Certain of these funds are structured as “fund of funds.” A “fund of funds” may have higher fees and expenses than a fund that invests directly in debt and equity securities because they also incur the fees and expenses of the underlying funds in which they invest. The “fund of funds” available through the policy are identified below.

Funds Available Through the Variable Account

· American Funds – Growth Fund (Class 2)    · ING Pioneer Fund Portfolio (Class I) 
· American Funds – Growth-Income Fund (Class 2)    · ING Pioneer Mid Cap Value Portfolio (Class I) 
· American Funds – International Fund (Class 2)    · ING Stock Index Portfolio (Class I) 
· Fidelity® VIP Contrafund® Portfolio (Initial    · ING T. Rowe Price Capital Appreciation Portfolio 
   Class)       (Class I) 
· Fidelity® VIP Equity-Income Portfolio (Initial    · ING T. Rowe Price Equity Income Portfolio 
   Class)       (Class I) 
· ING AllianceBernstein Mid Cap Growth Portfolio    · ING Van Kampen Capital Growth Portfolio 
   (Class I)       (Class I) 
· ING BlackRock Large Cap Growth Portfolio    · ING Van Kampen Growth and Income Portfolio 
   (Class I)       (Class S) 
· ING Evergreen Health Sciences Portfolio    · ING VP Index Plus International Equity Portfolio 
   (Class I)       (Class S) 
· ING Evergreen Omega Portfolio (Class I)    · ING Wells Fargo Small Cap Disciplined Portfolio 
· ING FMRSM Diversified Mid Cap Portfolio       (Class I) 
   (Class I)    · ING Baron Small Cap Growth Portfolio (I Class) 
· ING Focus 5 Portfolio (Class I)    · ING Columbia Small Cap Value II Portfolio 
· ING Franklin Templeton Founding Strategy       (I Class) 
   Portfolio (Class I)*    · ING JP Morgan Mid Cap Value Portfolio (I Class) 
· ING Global Real Estate Portfolio (Class S)    · ING Neuberger Berman Partners Portfolio 
· ING Global Resources Portfolio (Class I)       (I Class) 
· ING JPMorgan Emerging Markets Equity    · ING Oppenheimer Global Portfolio (I Class) 
   Portfolio (Class I)    · ING Oppenheimer Strategic Income Portfolio 
· ING JPMorgan Small Cap Core Equity Portfolio       (S Class) 
   (Class I)    · ING Pioneer High Yield Portfolio (I Class) 
· ING JPMorgan Value Opportunities Portfolio    · ING T. Rowe Price Diversified Mid Cap Growth 
   (Class I)       Portfolio (I Class) 
· ING Julius Baer Foreign Portfolio (Class I)    · ING UBS U.S. Large Cap Equity Portfolio 
· ING Legg Mason Value Portfolio (Class I)       (I Class) 
· ING LifeStyle Aggressive Growth Portfolio    · ING Van Kampen Comstock Portfolio (I Class) 
   (Class I)*    · ING Van Kampen Equity and Income Portfolio 
· ING LifeStyle Growth Portfolio (Class I)*       (I Class) 
· ING LifeStyle Moderate Growth Portfolio    · ING VP Balanced Portfolio (Class I) 
   (Class I)*    · ING VP Intermediate Bond Portfolio (Class I) 
· ING LifeStyle Moderate Portfolio (Class I)*    · ING Lehman Brothers U.S. Aggregate Bond 
· ING Limited Maturity Bond Portfolio (Class S)       Index Ò Portfolio (Class I) 
· ING Liquid Assets Portfolio (Class I)    · ING RussellTM Small Cap Index Portfolio 
· ING Marsico Growth Portfolio (Class I)       (Class I) 
· ING Marsico International Opportunities Portfolio    · ING VP Index Plus LargeCap Portfolio (Class I) 
   (Class I)    · ING VP Index Plus MidCap Portfolio (Class I) 
· ING MFS Total Return Portfolio (Class I)    · ING VP Index Plus SmallCap Portfolio (Class I) 
· ING MFS Utilities Portfolio (Class S)    · ING VP SmallCap Opportunities Portfolio 
· ING Oppenheimer Main Street Portfolio Ò       (Class I) 
   Class I)    · Neuberger Berman AMT Socially Responsive 
· ING PIMCO Core Bond Portfolio (Class I)       Portfolio® (Class I)  

*      These funds are structured as “fund of funds.” See the Fund Fees and Expenses table on page 12 and the Fund Fees and Expenses section on page 29 for more information about “fund of funds.”
 

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See Appendix B to this prospectus for more information about the funds available through the variable account, including information about each fund’s investment adviser/subadviser and investment objective. More detailed information about each fund, including information about their investment risks and fees and expenses, can be found in the fund’s current prospectus and Statement of Additional Information. You may obtain these documents by contacting us at our Customer Service Center.

A fund available through the variable account is not the same as a retail mutual fund with the same or similar name. Accordingly, the management, fees and expenses and performance of a fund is likely to differ from a similarly named retail mutual fund.

Voting Privileges. We invest each subaccount's assets in shares of a corresponding fund. We are the legal owner of the fund shares held in the variable account, and we have the right to vote on certain issues. Among other things, we may vote on issues described in the fund's current prospectus or issues requiring a vote by shareholders under the 1940 Act.

Even though we own the shares, we give you the opportunity to tell us how to vote the number of shares attributable to your policy. We count fractional shares. If you have a voting interest, we send you proxy material and a form on which to give us your voting instructions.

Each fund share has the right to one vote. The votes of all fund shares are cast together on a collective basis, except on issues for which the interests of the funds differ. In these cases, voting is on a fund-by-fund basis.

Examples of issues that require a fund-by-fund vote are changes in the fundamental investment policy of a particular fund or approval of an investment advisory agreement.

We vote the shares in accordance with your instructions at meetings of the fund's shareholders. We vote any fund shares that are not attributable to policies and any fund shares for which the owner does not give us instructions in the same proportion as we vote the shares for which we did receive voting instructions. This means that instructions from a small number of shareholders can determine the outcome of a vote. There is no minimum number of shares for which we must receive instructions before we vote the shares.

We reserve the right to vote fund shares without getting instructions from policy owners if the federal securities laws, regulations or their interpretations change to allow this.

You may instruct us only on matters relating to the funds corresponding to those subaccounts in which you have invested assets as of the record date set by the fund's Board for the shareholders meeting. We determine the number of fund shares in each subaccount of your policy by dividing your variable account value in that subaccount by the net asset value of one share of the matching fund.

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Right to Change the Variable Account. Subject to state and federal law and the rules and regulations thereunder, we may, from time to time, make any of the following changes to our variable account with respect to some or all classes of policies:

  • Change the investment objective;
     
  • Offer additional subaccounts that will invest in funds we find appropriate for policies we issue;
     
  • Eliminate subaccounts;
     
  • Combine two or more subaccounts;
     
  • Close subaccounts. We will notify you in advance by a supplement to this prospectus if we close a subaccount. If a subaccount is closed or otherwise is unavailable for new investment, unless you provide us with alternative allocation instructions, all future premiums directed to the subaccount that was closed or is unavailable may be automatically allocated among the other available subaccounts according to your most recent allocation instructions. If your most recent allocation instructions do not include any available funds, you must provide us with alternative allocation instructions or the premium payment will be returned to you. You may give us alternative allocation instructions by contacting our Customer Service Center. See also the Transfers section of this prospectus, page 48, for information about making subaccount allocation changes;
     
  • Substitute a new fund for a fund in which a subaccount currently invests. A substitution may become necessary if, in our judgment:
     
     
  • A fund no longer suits the purposes of your policy;
     
     
  • There is a change in laws or regulations;
     
     
  • There is a change in the fund's investment objectives or restrictions;
     
     
  • The fund is no longer available for investment; or
     
     
  • Another reason we deem a substitution is appropriate.
     
  • In the case of a substitution, the new fund may have different fees and charges than the fund it replaced;
     
  • Transfer assets related to your policy class to another separate account;
     
  • Withdraw the variable account from registration under the 1940 Act;
     
  • Operate the variable account as a management investment company under the 1940 Act;
     
  • Cause one or more subaccounts to invest in a fund other than, or in addition to, the funds currently available;
     
  • Stop selling the policy;
     
  • End any employer or plan trustee agreement with us under the agreement’s terms;
     
  • Limit or eliminate any voting rights for the variable account;
     
  • Make any changes required by the1940 Act or its rules or regulations; or
     
  • Close a subaccount to new investments.
     

    We will not make a change until the change is disclosed in an effective prospectus or prospectus supplement, authorized, if necessary, by an order from the SEC, and approved, if necessary, by the appropriate state insurance department(s). We will notify you of any changes. If you wish to transfer the amount you have in the affected subaccount to another subaccount or to the fixed account, you may do so free of charge. Just notify us at our Customer Service Center.

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    The Fixed Account

    You may allocate all or a part of your net premium and transfer your policy value into the fixed account. We declare the interest rate that applies to all amounts in the fixed account. This interest rate is never less than 3.00% . Interest compounds daily at an effective annual rate that equals the declared rate. We credit interest to the fixed account on a daily basis. We pay interest regardless of the actual investment performance of our general account. We bear all of the investment risk for the fixed account.

    Your fixed account value equals the net premium you allocate to the fixed account, plus interest earned, minus amounts you transfer out or withdraw. It may be reduced by fees and charges assessed against your policy value.

    The fixed account guarantees principal and is part of our general account. The general account supports our non-variable insurance and annuity obligations. We have not registered interests in the fixed account under the Securities Act of 1933, as amended (“1933 Act”). Also, we have not registered the fixed account or the general account as an investment company under 1940 Act (because of exemptive and exclusionary provisions). This means that the general account, the fixed account and interests in it are generally not subject to regulation under these Acts.

    The SEC staff has not reviewed the disclosures in this prospectus relating to the general account and the fixed account. These disclosures, however, may be subject to certain requirements of the federal securities law regarding accuracy and completeness of statements made.

    DETAILED INFORMATION ABOUT THE POLICY

    This prospectus describes our standard Variable Accumulation DesignSM survivorship variable universal life insurance policy. The policy provides death benefits, cash values and other features of traditional life insurance contracts. There may be variations in policy features, benefits and charges because of requirements of the state where we issue your policy. We describe all such differences in your policy.

    If you would like to know about state variations, please ask your agent/registered representative. We can provide him/her with the list of variations that will apply to your policy.

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    We and our affiliates offer various other products with different features and terms than the policy offered through this prospectus, and that may offer some or all of the same funds. These products have different benefits, fees and charges, and may or may not better match your needs. Please note that some of the company's management personnel and certain other employees may receive a portion of their employment compensation based on the amount of policy values allocated to funds affiliated with ING. You should be aware that there may be alternative products available, and, if you are interested in learning more about these other products, contact our Customer Service Center or your agent/registered representative.

    Underwriting

    On the application you will provide us with certain health and other necessary information. Upon receipt of an application, we will follow our underwriting procedures to determine whether the proposed insured persons are insurable by us. Before we can make this determination, we may need to request and review medical examinations of and other information about the proposed insured persons. Through our underwriting process, we also determine the risk class for each proposed insured person if the application is accepted. Risk class is based on such factors as each proposed insured person’s age, gender and health. Risk class will impact the cost of insurance rates you will pay and may also affect premiums and other policy fees, charges and benefits.

    We reserve the right to reject an application for any reason permitted by law. If an application is rejected, any premium received will be returned without interest.

    Purchasing a Policy

    To purchase a policy both individuals applying for coverage must submit an application to us. On that application both individuals will, among other things, select:

    • The amount of insurance coverage (which generally must be at least $250,000);
    • The initial death benefit option; and
    • Any riders or optional benefits.

    On the date coverage under the policy begins (the “policy date”), the persons on whose lives we issue the policy (the “joint insured persons”) generally can be no more than age 85. “Age” under the policy means each joint insured person's age at the last birthday determined as of the beginning of each policy year. “Average age” under the policy means the sum of each joint insured person's age divided by two and rounded to the higher age. From time to time, we may accept an insured person whose age exceeds our normal maximum age limit. We will not unfairly discriminate in determining the maximum age at issue. All exceptions to our normal limits are dependent upon our ability to obtain acceptable reinsurance coverage for our risk with an older insured.

    Variable Accumulation DesignSM 21


    You may request that we back-date the policy up to six months to allow the insured persons to give proof of a younger age for the purposes of your policy. Except for cash on delivery policies, we generally will not reissue a policy to change the policy date.

    Important Information About Term Riders. It may be to your economic advantage to include part of your insurance coverage under a term rider. Working with your agent/registered representative, consider the factors described in the Optional Rider Benefits section of this prospectus, page 38, when deciding whether to include coverage under a term rider and in what proportion to the total amount of coverage under your policy.

    Premium Payments

    Premium payments are flexible and you may choose the amount and frequency of premium payments, within limits, including:

    • We may refuse to accept any premium less than $25;
    • You cannot pay additional premiums after age 100 of the younger of the joint insured persons;
    • We may refuse to accept any premium that would disqualify your policy as life insurance under Section 7702 of the Internal Revenue Code;
    • We may refuse to accept any premium that would cause your policy to become a modified endowment contract under Section 7702A of the Internal Revenue Code without your prior written acknowledgement accepting your policy as a modified endowment contract; and
    • We may refuse to accept any premium that does not comply with our anti- money laundering program. See Anti-Money Laundering, page 68.

    After we deduct the premium expense charge from your premium payments, we apply the remaining net premium to your policy as described below.

    A premium payment is received by us when it is received at our offices. After you have paid your minimum initial premium, we suggest you send payments directly to us, rather than through your agent/registered representative, to assure the earliest crediting date.

    Insurance coverage does not begin until we receive your minimum initial premium. The minimum initial premium is generally equal to at least the minimum premiums for the first three months. The minimum premium is based on monthly rates that vary according to each joint insured person's gender, risk class and age. Optional rider benefits have their own minimum premium rates. If you authorize premiums to be paid by electronic funds transfer, we will issue a policy upon receipt of the minimum premium for the first month and the required completed electronic funds transfer forms.

    Your policy will indicate the minimum premium that applies to you. You are not required to pay the minimum premium, but payment of the minimum premium will keep your policy in force during either the basic or Supplemental Death Benefit Guarantee period. See Death Benefit Guarantees, page 36. Payment of the minimum premium may or may not be enough to keep your policy in force beyond either the basic or the Supplemental Death Benefit Guarantee period.

    Variable Accumulation DesignSM
    22


    Premium Payments Affect Your Coverage. During any applicable death benefit guarantee period, the death benefit guarantee lasts only if your cumulative premium payments to the next monthly processing date, minus any partial withdrawals or loans, are at least equal to the sum of minimum premium payments applicable to the guarantee. If they are not and your surrender value is not enough to pay the periodic fees and charges, when due, then your policy will enter the 61-day grace period and you must make a sufficient premium payment to avoid lapse and loss of insurance coverage. See Lapse, page 56.

    Allocation of Net Premium. Until your initial net premium is allocated as described below, we hold premiums in a general suspense account. Premiums held in this suspense account do not earn interest.

    We apply the initial net premium to your policy after all of the following conditions have been met:

    • We receive the required initial minimum premium;
    • All issue requirements have been received by our Customer Service Center; and
    • We approve your policy for issue.

    We allocate your initial net premium in the subaccount that invests in the ING Liquid Assets Portfolio on the valuation date next following your policy date. We later transfer the amount held in this subaccount to the fixed account and the available subaccounts that you have selected based on your most recent premium allocation instructions. This transfer will generally occur on the sixteenth day following your policy date.

    All net premiums we receive after this period are allocated to your policy on the valuation date of receipt in good order. We will use your most recent premium allocation instructions specified in whole percentages totaling 100%. If your most recent premium allocation instructions includes a fund that corresponds to a subaccount that is closed to new investment (we will notify you in advance by a supplement to this prospectus if we close a subaccount) or is otherwise unavailable, net premium received that would have been allocated to the subaccount corresponding to the closed or otherwise unavailable fund may be automatically allocated among all the other available subaccounts according to your most recent allocation instructions. If your most recent allocation instructions do not include any available funds, you must provide us with alternative allocation instructions or the premium payment will be returned to you. You may give us alternative allocation instructions by contacting our Customer Service Center. Your failure to provide us with alternative allocation instructions before we and our return of your premium payment(s) may result in your policy entering the 61 day grace period and/or your policy lapsing without value. See Lapse, page 56, for more information about how to keep your policy from lapsing. See also Reinstatement, page 57, for more information about how to put your policy back in force if it has lapsed.

    Variable Accumulation DesignSM 23


    Free Look Period

    You have the right to examine your policy and return it to us (for any reason) within the period shown in the policy. The period during which you have this right is called the free look period and starts on the date you receive your policy. If you request a free look refund or return your policy to us within the free look period, we cancel it as of your policy date.

    If you cancel your policy during the free look period you will receive a refund as determined by state law. Generally, there are two types of free look refunds:

    • Some states require a return of all premium we have received; and
    • Other states require a return of all premium we have received plus any earnings or less any losses attributable to the amount held in the money market subaccount.

    The free look refund that applies in your state will be set forth in your policy.

    Temporary Insurance

    If you apply and qualify, we may issue temporary insurance in an amount equal to the amount of insurance for which you applied, up to $1 million, which includes other in-force coverage you have with us.

    Temporary insurance coverage begins when all of the following events have occurred:

    • You have completed and signed our temporary insurance coverage form;
    • We have received and accepted a premium payment of at least your minimum initial premium (selected on your application); and
    • The necessary parts of the application are complete.

    Unless otherwise provided by state law, temporary insurance coverage ends on the earliest of:

    • The date we return your premium payments;
    • Five days after we mail notice of termination to the address on your application;
    • Your policy date;
    • The date we refuse to issue a policy based on your application; or
    • 90 days after you sign our temporary life insurance coverage form.

    There is no death benefit under the temporary insurance coverage if any of the following events occurs:

    • There is a material misrepresentation in your answers on the temporary insurance coverage form;
    • There is a material misrepresentation in statements on your application;
    • The person or persons intended to be insured die by suicide or self-inflicted injury; or
    • The bank does not honor your premium check.

    Variable Accumulation DesignSM 24


    During the period of temporary insurance coverage your premium payments are held by us in a general suspense account until underwriting is completed and the policy is issued or the temporary insurance coverage otherwise ends. Premiums held in this suspense account do not earn interest and they are not allocated to the investment options available under the policy until a policy is issued. See Allocation of Net Premium, page 23. If a policy is not issued and temporary coverage ends, any premium received will be returned without interest.

    Fees and Charges

    We deduct fees and charges under the policy to compensate us for:

    • Providing the insurance benefits of the policy (including any rider benefits);
    • Administering the policy;
    • Assuming certain risks in connection with the policy; and
    • Incurring expenses in distributing the policy.

    The amount of a fee or charge may be more or less than the cost associated with the service or benefit. Accordingly, excess proceeds from one fee or charge may be used to make up a shortfall on another fee or charge, and we may earn a profit on one or more of these fees and charges. We may use any such profits for any proper corporate purpose, including, among other things, payments of sales expenses.

    Transaction Fees and Charges

    We deduct the following transaction fees and charges from your policy value each time you make certain transactions.

    Premium Expense Charge. We deduct a premium expense charge from each premium payment we receive. This charge is guaranteed not to exceed 6.25% of each premium payment. This charge is currently 6.25% of each premium payment during the first ten policy years and 3.75% thereafter.

    This charge helps offset:

    • The expenses we incur in selling the policy;
    • The costs of various state and local taxes. We pay state and local taxes in almost all states. These taxes vary in amount from state to state and may vary from jurisdiction to jurisdiction within a state; and
    • The cost associated with the federal income tax treatment of our deferred acquisition costs. This cost is determined solely by the amount of life insurance premium we receive.

    Partial Withdrawal Fee. We deduct a partial withdrawal fee each time you take a partial withdrawal from your policy. The amount of this fee is currently $10, but we reserve the right to deduct up to $25 for each partial withdrawal. We deduct the partial withdrawal fee proportionately from your remaining fixed and variable account values.

    This fee helps offset the expenses we incur when processing a partial withdrawal.

    Variable Accumulation DesignSM 25


    Surrender Charge. We deduct a surrender charge during the first 15 policy years or the first 15 years after an increase in your insurance coverage when you:

    • Surrender your policy; or
    • Allow your policy to lapse.

    The amount of the surrender charge depends on the amount of the insurance coverage and the surrender charge rates.

    When you purchase a policy or increase your insurance coverage, we set surrender charge rates based on the gender, age and risk class of each joint insured person. The initial surrender charge remains level for the first five years then decreases uniformly each month to zero at the end of the fifteenth policy year. For any requested increase in your insurance coverage, an additional surrender charge begins at zero, increases uniformly each month until it reaches the maximum after three years and then reduces uniformly each month until it becomes zero at the end of the fifteenth segment year. See Changes in the Amount of Your Insurance Coverage, page 32. Surrender charge rates will not exceed $47.82 per $1,000 of insurance coverage and the rates that apply to you will be set forth in your policy. See the Transaction Fees and Charges table, beginning on page 8, for the minimum and maximum surrender charge rates and the rates for representative joint insured persons.

    In the early policy years the surrender charge usually exceeds the policy value because the surrender charge is usually more than the cumulative minimum premiums minus policy fees and charges. Therefore, you should purchase a policy only if you intend and have the financial capability to keep the policy in force for a substantial period of time.

    This charge helps offset the expenses we incur in selling the policy.

    Transfer Charge. We currently do not assess a charge for transfers between any of the investment options. We reserve the right, however, to charge up to $25 for each transfer. Transfers associated with policy loans, the dollar cost averaging or automatic rebalancing programs, exercise of the Overloan Lapse Protection Rider benefit or exercise of conversion rights will not count as transfers when calculating any applicable transfer charge.

    This charge helps offset the expenses we incur when processing transfers.

    Excess Illustration Fee. We currently do not assess this fee, but we reserve the right to assess a fee of up to $50 for each illustration of your policy values you request after the first each policy year.

    This fee helps offset the costs we incur when processing requests for excess illustrations.

    Excess Annual Report Fee. We currently do not assess this fee, but we reserve the right to assess a fee of up to $50 for each annual report you request after the first each policy year.

    Variable Accumulation DesignSM 26


    This fee helps offset the costs we incur when processing requests for excess annual reports.

        In the policy 
    form the 
    “monthly 
    processing 
    date” is referred 
    to as the 
    “Monthly 
    Anniversary.” 
    Periodic Fees and Charges   
       
    We deduct the following periodic fees and charges from   
    your policy value on the monthly processing date. The   
    monthly processing date is the same date each month as   
    your policy date. If that date is not a valuation date, then   
    the monthly processing date is the next valuation date.   

    At any time you may choose one investment option from which we will deduct your periodic fees and charges. If you do not choose the investment option or the amount in your chosen investment option is not enough to cover the periodic fees and charges, then your periodic fees and charges are taken from the subaccounts and fixed account in the same proportion that your value in each has to your net policy value.

    Cost of Insurance. The cost of insurance charge is equal to our current monthly cost of insurance rates multiplied by the net amount at risk for each segment of your insurance coverage. The net amount at risk as calculated on each monthly processing date equals the difference between:

    • Your current base death benefit, discounted to take into account one month's interest earnings at an assumed 3.00% annual interest rate; and
    • Your policy value minus the periodic fees and charges due on that date, other than cost of insurance charges.

    Monthly cost of insurance rates are based on each joint insured person's age at issue, gender, risk class and amount of insurance coverage on the policy date and each date you increase your insurance coverage (a “segment date”) and the policy year. They will not, however, be greater than the guaranteed cost of insurance rates shown in the policy, which are based on the 1980 Commissioner's Standard Ordinary Sex Distinct Mortality Tables. We will apply unisex rates where appropriate under the law. This currently includes the State of Montana. The rates that apply to you will be set forth in your policy, and lower rates may be available where the base insurance coverage amount is $1 million or more. See the Periodic Fees and Charges table, beginning on page 9, for the minimum and maximum cost of insurance rates and the rates for representative joint insured persons.

    Separate cost of insurance rates apply to each segment of your insurance coverage and your riders. The maximum rates for the initial and each new segment of your insurance coverage will be printed in your policy schedule pages.

    Variable Accumulation DesignSM 27


    The cost of insurance charge varies from month to month because of changes in your net amount at risk, changes in your death benefit and the increasing age of the joint insured persons. The net amount at risk is affected by the same factors that affect your policy value, namely:

    • The net premium applied to your policy;
    • The fees and charges we deduct;
    • Any partial withdrawals you take;
    • Interest earnings on the amounts allocated to the fixed account;
    • Interest earned on amounts held in the loan account; and
    • The investment performance of the funds underlying the subaccounts of the variable account.

    We calculate the net amount at risk separately for each segment of your insurance coverage.

    The cost of insurance charge compensates us for the ongoing costs of providing insurance coverage, including the expected cost of paying death proceeds that may be more than your account value.

    Administrative Charge. The monthly administrative charge is currently $8.25 and is guaranteed not to exceed $12. This charge helps compensate us for the costs associated with administering the policies.

    Monthly Amount Charge. During the first 20 policy years (and for 20 years following a requested increase in insurance coverage) we will deduct a monthly charge per $1,000 of insurance coverage. For a policy issued in New Jersey, the elimination of these charges after the first 20 policy years (or the first 20 years following a requested increase in insurance coverage) is not guaranteed, and these charges may be assessed for the duration of the policy. The monthly amount charge rate for each segment is based on the gender, risk class, amount of insurance coverage and each joint insured person's age on the policy date and on each segment date, as appropriate. Any decrease in insurance coverage or any change in insurance coverage resulting from a change in the death benefit option will not affect the monthly amount charge. The rates that apply to you will be set forth in your policy and lower rates may be available where the base insurance coverage amount is $1 million or more. See the Periodic Fees and Charges table, beginning on page 9, for the minimum and maximum monthly amount charge rates and the rates for representative joint insured persons.

    The monthly amount charge helps compensate us for expenses relating to the distribution of the policy, including agents' commissions, advertising and the printing of the prospectus and sales literature for new sales of the policy. A portion of this charge may also contribute to company profits.

    Mortality and Expense Risk Charge. For policies with policy dates prior to February 20, 2006, the monthly mortality and expense risk charge is 0.075% (0.90% annually) of your variable account value during the first ten policy year. After the tenth policy year, we currently anticipate that we will reduce this charge to 0.02083% per month (0.25% annually); however, in no event will the mortality and expense risk charge exceed 0.90% annually for the duration of the policy.

    Variable Accumulation DesignSM 28


    For policies with policy dates on or after February 20, 2006, the monthly mortality and expense risk charge is 0.075% (0.90% annually) of your variable account value during the first five policy years. During policy years six through ten, we will reduce this charge to 0.04166% per month (0.50% annually). After the tenth policy year, this charge is eliminated.

    This charge helps compensate us for the mortality and expense risks we assume when we issue a policy. The mortality risk is that insured people, as a group, may live less time than we estimated. The expense risk is that the costs of issuing and administering the policies and operating the subaccounts of the variable account are greater than we estimated.

    Rider Fees and Charges

    There may be separate fees and charges if you add any optional rider benefits or exercise certain automatic rider benefits. For more information about rider benefits and the applicable fees and charges, see the Optional Rider Fees and Charges table, page 11, and the Optional Rider Benefits section, page 37. See also the Transaction Fees and Charges table, page 8, and the Automatic Rider Benefits section, page 41.

    Waiver and Reduction of Fees and Charges

    We may waive or reduce any of the fees and charges under the policy, as well as the minimum amount of insurance coverage set forth in this prospectus. Any waiver or reduction will be based on expected economies that result in lower sales, administrative or mortality expenses. For example, we may expect lower expenses in connection with sales to:

    • Certain groups or sponsored arrangements (including our employees, certain family members of our employees, our affiliates and our appointed sales agents);
    • Corporate purchasers; or
    • Our policyholders or the policyholders of our affiliated companies.

    Any variation in fees and charges will be based on differences in costs or services and our rules in effect at the time. We may change our rules from time to time, but we will not unfairly discriminate in any waiver or reduction.

    Fund Fees and Expenses

    As shown in the fund prospectuses and described in the Fund Fees and Expenses Table on page 12 of this prospectus, each fund deducts management fees from the amounts allocated to the fund. In addition, each fund deducts other expenses which may include service fees that may be used to compensate service providers, including the company and its affiliates, for administrative and policy owner services provided on behalf of the fund. Furthermore, certain funds may deduct a distribution or 12b-1 fee, which is used to finance any activity that is primarily intended to result in the sale of fund shares. For a more complete description of the funds’ fees and expenses, review each fund’s prospectus.

    Variable Accumulation DesignSM 29


    The company or its U.S. affiliates receive substantial revenue from each of the funds or the funds’ affiliates, although the amount and types of revenue vary with respect to each of the funds offered through the policy. This revenue is one of several factors we consider when determining the policy fees and charges and whether to offer a fund through our policies. Fund revenue is important to the company’s profitability, and it is generally more profitable for us to offer affiliated funds than to offer unaffiliated funds.

    In terms of total dollar amounts received, the greatest amount of revenue generally comes from assets allocated to funds managed by Directed Services LLC or other company affiliates, which funds may or may not also be subadvised by another company affiliate. Assets allocated to funds managed by a company affiliate but subadvised by unaffiliated third parties generally generate the next greatest amount of revenue. Finally, assets allocated to unaffiliated funds generate the least amount of revenue. The company expects to make a profit from this revenue to the extent it exceeds the company’s expenses, including the payment of sales compensation to our distributors.

    Types of Revenue Received from Affiliated Funds. Affiliated funds are (a) funds managed by Directed Services LLC or other company affiliates, which may or may not also be subadvised by another company affiliate; and (b) funds managed by a company affiliate but that are subadvised by unaffiliated third parties.

    Revenues received by the company from affiliated funds may include:

    • A share of the management fee deducted from fund assets;
    • Service fees that are deducted from fund assets;
    • For certain share classes, the company or its affiliates may also receive compensation paid out of 12b-1 fees that are deducted from fund assets; and
    • Other revenues that may be based either on an annual percentage of average net assets held in the fund by the company or a percentage of the fund’s management fees.

    These revenues may be received as cash payments or according to a variety of financial accounting techniques that are used to allocate revenue and profits across the organization. In the case of affiliated funds subadvised by unaffiliated third parties, any sharing of the management fee between the Company and the affiliated investment adviser is based on the amount of such fee remaining after the subadvisory fee has been paid to the unaffiliated subadviser. Because subadvisory fees vary by subadviser, varying amounts of revenue are retained by the affiliated investment adviser and ultimately shared with the company.

    Variable Accumulation DesignSM 30


    Types of Revenue Received from Unaffiliated Funds. Revenue received from each of the unaffiliated funds or their affiliates is based on an annual percentage of the average net assets held in that fund by the company. Some unaffiliated funds or their affiliates pay us more than others and some of the amounts we receive may be significant. Revenues received by the company or its affiliates from unaffiliated funds include:

    • For certain funds, compensation paid from 12b-1 fees or service fees that are deducted from fund assets; and
    • Additional payments for administrative, recordkeeping or other services that we provide to the funds or their affiliates, such as processing purchase and redemption requests, and mailing fund prospectuses, periodic reports and proxy materials. These additional payments do not increase directly or indirectly the fees and expenses shown in each fund prospectus. These additional payments may be used by us to finance distribution of the policy.

    These revenues are received as cash payments, and if the three unaffiliated fund families currently offered through the policy were individually ranked according to the total amount they paid to the company or its affiliates in 2007, that ranking would be as follows:

    • Fidelity® Variable Insurance Product Portfolios;
    • American Funds Insurance Series; and
    • Neuberger Berman AMT Portfolios® .

    If the revenues received from affiliated funds were included in this list, payments from Directed Services LLC and other company affiliates would be at the top of the list.

    In addition to the types of revenue received from affiliated and unaffiliated funds described above, affiliated and unaffiliated funds and their investment advisers, subadvisers or affiliates may participate at their own expense in company sales conferences or educational and training meetings. In relation to such participation, a fund’s investment adviser, subadviser or affiliate may make fixed dollar payments to help offset the cost of the meetings or sponsor events associated with the meetings. In exchange for these expense offset or sponsorship arrangements, the investment adviser, subadviser or affiliate may receive certain benefits and access opportunities to company sales representatives and wholesalers rather than monetary benefits. These benefits and opportunities include, but are not limited to, co-branded marketing materials, targeted marketing sales opportunities, training opportunities at meetings, training modules for sales personnel, and opportunity to host due diligence meetings for representatives and wholesalers.

    Certain funds may be structured as “fund of funds.” These funds may have higher fees and expenses than a fund that invests directly in debt and equity securities because they also incur the fees and expenses of the underlying funds in which they invest. These funds areaffiliated funds, and the underlying funds in which they invest may be affiliated funds as well. The fund prospectuses disclose the aggregate annual operating expenses of each portfolio and its corresponding underlying fund or funds. The “fund of funds” available through the policy are identified in the list of funds available through the variable account on page 17.

    Variable Accumulation DesignSM 31


    Please note that certain management personnel and other employees of the company or its affiliates may receive a portion of their total employment compensation based on the amount of net assets allocated to affiliated funds. See Distribution of the Policy, page 73.

    Death Benefits    In the policy 
    form the 
    amount of 
    insurance 
    coverage you 
    select is 
    referred to as 
    the “Face 
    Amount.” 
       
    You decide the amount of life insurance protection you   
    need, now and in the future. Generally, we require a   
    minimum of $250,000 of coverage to issue your policy.   
    We may lower this minimum for certain group,   
    sponsored or corporate purchasers. The amount of   
    insurance coverage in effect on your policy date is your   
    initial coverage segment.   

    It may be to your economic advantage to include part of your insurance coverage under a term rider. See Important Information About Term Riders, page 40.

    Changes in the Amount of Your Insurance Coverage

    Subject to certain limitations, you may change the amount of your insurance coverage. Changing the amount of your insurance coverage will generally not be allowed until after the first policy year. We reserve the right to limit a change in the amount of your insurance coverage during the first four policy years. The change will be effective on the next monthly processing date after we receive your written request or the next monthly processing date after underwriting approval (if required), whichever is later.

    There may be underwriting or other requirements that must be met before we will approve a change. After we approve your request to change the amount of insurance coverage under the policy, we will send a new policy schedule page to you. You should attach it to your policy. We may ask you to return your policy to our Customer Service Center so that we can make this change for you.

    Increases in the amount of your insurance coverage must be at least $5,000 and may be permitted until any joint insured person exceeds age 85.

    A requested increase in insurance coverage will cause a new coverage segment to be created. A coverage segment or segment is a block of insurance coverage. Once we create a new segment, it is permanent unless law requires differently.

    Each new segment will have:

    • A new surrender charge;
    • New cost of insurance charges, guaranteed and current;
    • A new monthly amount charge;
    • A new incontestability period;
    • A new suicide exclusion period; and
    • A new minimum premium.

    Variable Accumulation DesignSM 32


    In determining the net amount at risk for each coverage segment we allocate the policy value first to the initial segment and any excess to additional segments starting with the first.

    You may not decrease the amount of your insurance coverage below $200,000. You cannot request a decrease in the amount of your insurance coverage more frequently than once every six months.

    Decreases in insurance coverage on policies with multiple coverage segments will be made in the following order:

    (1)      From the most recent segment;
     
    (2)      From the next more recent segments successively; and
     
    (3)      From the initial segment.
     

    Decreases in insurance coverage may result in:

    • Shortened basic and Supplemental Death Benefit Guarantee periods if the Survivorship Term Rider is attached;
    • Reduced minimum premium amounts; and
    • Reduced cost of insurance charges.

    Decreases in insurance coverage will not result in reduced surrender or monthly amount charges.

    We reserve the right to not approve a requested change in your insurance coverage that would disqualify your policy as life insurance under Section 7702 of the Internal Revenue Code. In addition, we may refuse to approve a requested change in your insurance coverage that would cause your policy to become a modified endowment contract under Section 7702A of the Internal Revenue Code without your prior written acknowledgment accepting your policy as a modified endowment contract. Decreasing the amount of insurance coverage under your policy could cause your policy to be considered a modified endowment contract. If this happens, prior and subsequent distributions from the policy (including loans) may be subject to adverse tax treatment. You should consult a qualified tax adviser before changing your amount of insurance coverage. See Modified Endowment Contracts, page 60.

    Death Benefit Qualification Test

    The death benefit proceeds are generally not subject to federal income tax if your policy continues to meet the federal income tax definition of life insurance. Your policy will meet this definition of life insurance provided that it meets the requirements of the guideline premium test.

    The guideline premium test requires that premium payments do not exceed certain statutory limits and your death benefit is at least equal to your policy value multiplied by a factor defined by law. The guideline premium test provides for a maximum amount of premium in relation to the death benefit and a minimum amount of death benefit in relation to policy value. The factors for the guideline premium test can be found in Appendix A of this prospectus.

    Variable Accumulation DesignSM 33


    Certain changes to a policy that uses the guideline premium test may allow the payment of premium in excess of the statutory limits in order to keep the policy from lapsing. In this circumstance, any such excess premium will be allocated to the fixed account in order for the policy to continue to meet the federal income tax definition of life insurance.

    Death Benefit Options     
    In the policy 
    form, death 
    benefit “Option 
    1” is referred to 
    as the “Level 
    Amount 
    Option” or 
    “Option A”; 
    death benefit 
    “Option 2” is 
    referred to as 
    the “Variable 
    Amount 
    Option” or 
    “Option B”; and 
    death benefit 
    “Option 3” is 
    referred to as 
    the “Face 
    Amount Plus 
    Premium 
    Amount 
    Option” or 
    “Option C.” 
     
       
    There are three death benefit options available under the   
    base policy before age 100 of the younger joint insured   
    persons. You choose the option you want when you   
    apply for the policy, but you may change that choice   
    after the fourth policy year.   
       
    Option 1. Under death benefit Option 1, the base death   
    benefit is the greater of the amount of insurance   
    coverage you have selected or your policy value   
    multiplied by the appropriate factor from the definition   
    of life insurance factors described in Appendix A. Under   
    this option your base death benefit will remain level   
    unless your policy value multiplied by the appropriate   
    factor described in Appendix A exceeds the death   
    benefit. In this case, your death benefit will vary as the   
    policy value varies.   
       
    Option 2. Under death benefit Option 2, the base death   
    benefit is the greater of the amount of insurance   
    coverage you have selected plus your policy value or   
    your policy value multiplied by the appropriate factor   
    from the definition of life insurance factors described in   
    Appendix A. Under this option your base death benefit   
    will vary as the policy value varies.   

    Option 3. Under death benefit Option 3, the base death benefit is the greater of the amount of insurance coverage you have selected plus premiums paid minus withdrawals taken or your policy value multiplied by the appropriate factor from the definition of life insurance factors described in Appendix A. Under this option your base death benefit will vary as you pay premiums and take withdrawals or if your policy value multiplied by the appropriate factor described in Appendix A exceeds the death benefit.

    After age 100 of the younger of the joint insured persons, the base death benefit under all options will generally be your policy value.

    Variable Accumulation DesignSM 34


    Which Death Benefit Option to Choose. If you are satisfied with the amount of your existing insurance coverage and prefer to have premium payments and favorable investment performance reflected to the maximum extent in the policy value and lower cost of insurance charges, you should choose Option 1. If you prefer to have premium payments and favorable investment performance reflected partly in the form of an increasing death benefit, you should choose Option 2. If you require a specific death benefit that would include a return of the premium paid, such as under an employer sponsored benefit plan, Option 3 may best meet your needs.

    Changing Death Benefit Options. After the fourth policy year, you may change from death benefit Option 1 to Option 2, from death benefit Option 2 to Option 1 and, currently, from death benefit Option 3 to Option 1. Changes to death benefit Option 3 are not allowed after your policy is issued. Evidence of insurability is currently not required for death benefit option changes, but we reserve the right to require such evidence in the future.

    Changing your death benefit option may reduce or increase your insurance coverage but will not change the amount of your base death benefit. We may not approve a death benefit option change if it reduces the amount of insurance coverage below the minimum we require to issue your policy. On the effective date of your option change, your insurance coverage will change as follows:

    Change From:    Change To:    Insurance Coverage Following the Change: 

    Option 1    Option 2    · Your insurance coverage before the 
                change minus your policy value as of the 
                effective date of the change. 

    Option 2    Option 1    · Your insurance coverage before the 
                change plus your policy value as of the 
                effective date of the change. 

    Option 3    Option 1    · Your insurance coverage before the 
                change plus the sum of all premium 
                payments we have received minus all 
                partial withdrawals you have taken as of 
                the effective date of the change. 


    Your death benefit option change is effective on your next monthly processing date after we approve it.

    After we approve your request, we send a new policy schedule page to you. You should attach it to your policy. We may ask you to return your policy to our Customer Service Center so that we can make this change for you.

    If a death benefit option change causes the amount of insurance coverage to change, no new coverage segment(s) is (are) created. Instead, the size of each existing segment(s) is (are) changed. If you change death benefit options, there is no change to the amount of term insurance coverage if you have added the Survivorship Term Rider to your policy. See Four-Year Term Insurance Rider, page 39; Survivorship Term Rider, page 40.

    Variable Accumulation DesignSM 35


    If your death benefit option is changed to Option 1 because you exercised the Overloan Lapse Protection Rider, notwithstanding any other information in this section your insurance coverage following the change will equal your policy value immediately before the change minus the Overloan Lapse Protection Rider charge with the difference multiplied by the appropriate guideline premium test factor described in Appendix A.

    Changing your death benefit option may have tax consequences. You should consult a qualified tax adviser before making changes.

    Death Benefit Proceeds

    After the surviving joint insured person's death, if your policy is in force we pay the death benefit proceeds to the beneficiaries. The beneficiaries are the people you name to receive the death benefit proceeds from your policy. The death benefit proceeds are equal to:

    • Your base death benefit; plus
    • The amount of any rider benefits; minus
    • Any outstanding policy loan and accrued loan interest; minus
    • Any outstanding fees and charges incurred before the surviving joint insured person's death.

    The death benefit is calculated as of the surviving joint insured person's death and will vary depending on the death benefit option you have chosen.

    Death Benefit Guarantees

    The policy has two death benefit guarantees which provide that the policy will not lapse even if the surrender value is not enough to pay the periodic fees and charges each month.

    In general, the two most significant benefits of the death benefit guarantees are:

    • During the early policy years, the surrender value may not be enough to cover the periodic fees and charges due each month, so that the Basic or Supplemental Death Benefit Guarantee may be necessary to avoid lapse of the policy. This occurs when the surrender charge exceeds the policy value in these years. Likewise, if you request an increase in the amount of your insurance coverage, an additional surrender charge will apply for the 15 years following the increase, which could create a similar possibility of lapse as exists during the early policy years; and
    • To the extent the surrender value declines due to poor investment performance of the funds underlying the subaccounts of the variable account or due to an additional surrender charge after a requested increase in the amount of your insurance coverage, the surrender value may not be sufficient even in later policy years to cover the periodic fees and charges due each month. Accordingly, the Basic Death Benefit Guarantee may be necessary in later policy years to avoid lapse of the policy.

    Variable Accumulation DesignSM 36


    Basic Death Benefit Guarantee. The Basic Death Benefit Guarantee is standard on every policy. It provides a guarantee that your policy will not lapse during the guarantee period, provided your cumulative premium payments, minus any partial withdrawals or loans, are at least equal to the sum of minimum premium payments to the next monthly processing date. Your policy will specify the guarantee period. The death benefit guarantee period depends on the issue ages and risk classes of the joint insured persons, the death benefit option chosen and any additional insurance benefits attached by rider. Certain policy changes may also change the death benefit guarantee period. There is no charge for this guarantee.

    You should consider the following in relation to the Basic Death Benefit Guarantee:

    • The amount of the minimum premium for your policy will be set forth in your policy (see Premium Payments, page 22);
    • The minimum premium for your policy is based on monthly rates that vary according to each insured person's gender, risk class and age;
    • Even though you may pay less than the minimum premium amount, you may lose the significant protection provided by the Basic Death Benefit Guarantee by doing so;
    • A loan may cause the termination of this guarantee because we deduct your loan amount from cumulative premiums paid when calculating whether you have paid sufficient premiums to keep the guarantee in effect; and
    • Even if the Basic Death Benefit Guarantee terminates, your policy will not necessarily lapse (see Lapse, page 56).

    We will notify you if on any monthly processing date you have not paid enough premium to maintain the Basic Death Benefit Guarantee. This notice will show the amount of premium required to maintain this guarantee. If we do not receive the required premium payment within 61 days from the date of our notice, the Basic Death Benefit Guarantee will terminate.

    You may reinstate the Basic Death Benefit Guarantee during the first five policy years, provided that you pay additional premium equal to:

    • The sum of the minimum premium due since the policy date, including the minimum premium for the current monthly processing date; minus
    • The sum of all premium paid minus any partial withdrawals and loans taken.

    The amount necessary to reinstate the Basic Death Benefit Guarantee may exceed the amount needed to create sufficient surrender value to pay any periodic fees and charges due each month.

    Lifetime Death Benefit Guarantee. The lifetime death benefit guarantee is an optional rider benefit that may be available on new policies issued on or after the later of February 20, 2006, or the date the rider is approved in your state. You may add this rider only when you apply for the policy. There is no charge for this rider guarantee. See Optional Rider Benefits – Lifetime Death Benefit Guarantee Rider, page 39.

    Variable Accumulation DesignSM 37


    Supplemental Death Benefit Guarantee. The Supplemental Death Benefit Guarantee is standard on every policy. There is no charge for this guarantee. See Supplemental Death Benefit Guarantee Rider, page 44.

    Additional Insurance Benefits

    Your policy may include additional insurance benefits, attached by rider. There are two types of riders:

    • Those that provide optional benefits that you must select before they are effective; and
    • Those that automatically come with the policy.

    The following information does not include all of the terms and conditions of each rider, and you should refer to the rider to fully understand its benefits and limitations. We may offer riders not listed here. Not all riders may be available under your policy. Contact your agent/registered representative for a list of riders and their availability.

    Optional Rider Benefits

    The following riders may have an additional cost, but you may cancel optional riders at any time. Adding or canceling riders may have tax consequences. See Modified Endowment Contracts, page 60. See also, Important Information About Term Riders, page 40.

    Additional Insured Rider. The Additional Insured Rider provides level term coverage to age 100 on either of the joint insured persons. You may add this rider only when you apply for the base policy. The minimum amount of coverage under this rider is $100,000. The maximum amount of coverage under this rider is the amount of insurance coverage selected under the base policy plus the amount of Survivorship Term Rider coverage, if any.

    You should consider the following when deciding whether to add the Additional Insured Rider to your policy:

    • You cannot increase the amount of coverage under this rider after issue;
    • You can decrease the amount of coverage under this rider after the second policy year;
    • The minimum premium for this rider is based on monthly rates that vary according to the insured person's gender, risk class and age;
    • The current cost of insurance rates for this rider are different than those for the base policy (see Optional Rider Fees and Charges table, page 11);
    • The policy's periodic fees and charges do not apply to coverage under this rider; and
    • This rider does not have a surrender charge.

    Additionally, before age 75 you can convert the coverage under this rider to any other whole life policy we offer at the time. No evidence of insurability will be required for the new whole life policy, and the premiums and cost of insurance charges for this new policy will be based on the insured person's age at the time of conversion.

    Variable Accumulation DesignSM 38


    Four-Year Term Insurance Rider. This term insurance rider provides a four year, level term insurance benefit if the surviving joint insured person dies during the first four policy years. You may apply for this rider only when you apply for the base policy. The minimum amount of coverage under this rider is $250,000. The maximum amount of coverage under this rider is 125 percent of the total amount of insurance coverage selected under the base policy plus the amount of Survivorship Term Rider coverage, if any.

    You should consider the following when deciding whether to add the Four Year Term Insurance Rider to your policy:

    • The current cost of insurance rates for this rider are generally less than those for the base policy (see Optional Rider Fees and Charges table, page 11);
    • The policy's monthly amount charge applies to coverage under this rider; and
    • This rider does not have a surrender charge.

    Lifetime Death Benefit Guarantee Rider. The Lifetime Death Benefit Guarantee Rider provides a guarantee that your policy will not lapse during the surviving joint insured's lifetime, provided your cumulative premium payments, minus any partial withdrawals or loans, are at least equal to the sum of lifetime death benefit guarantee premium payments to the next monthly processing date. There is no charge for this rider.

    You should consider the following when deciding whether to add the Lifetime Death Benefit Guarantee Rider to your policy:

    • You may add this rider only when you apply for the base policy;
    • The lifetime death benefit guarantee period begins at the end of the basic death benefit guarantee period;
    • The minimum premium for this rider will be set forth in your policy;
    • The minimum premium for this rider is based on monthly rates that vary according to the younger joint insured person's gender, risk class and age;
    • Adding this rider to your policy will not result in a higher premium than would otherwise be required to keep the policy in force.
    • This rider cannot be added to a policy with death benefit Option 3; and
    • Even if the lifetime death benefit guarantee terminates, your policy will not necessarily lapse (see Termination of Coverage – Lapse, page 56).

    If you have not paid enough premium to maintain the lifetime death benefit guarantee as of any monthly processing date, we will send you notice of the premium payment required to keep this extended death benefit guarantee in force. If we do not receive the required premium payment by the next monthly processing date, the lifetime death benefit guarantee will terminate. If this rider terminates, it cannot be reinstated.

    This rider is available on new policies issued on or after the later of February 20, 2006, or the date the rider is approved in your state. This benefit may vary by state. You should consult your agent/registered representative as to whether and to what extent the rider is available in your particular state and on any particular policy.

    Variable Accumulation DesignSM 39


    Survivorship Term Rider. Provides a level term insurance benefit payable on the death of the surviving joint insured person if death occurs prior to age 100 of the younger joint insured person. The minimum amount of coverage under this rider is $100,000. The maximum amount of coverage under this rider is six times the total amount of insurance coverage selected under the base policy.

    You should consider the following when deciding whether to add the Survivorship Term Rider to your policy:

    • The current cost of insurance rates for this rider are generally less than those for the base policy (see Optional Rider Fees and Charges table, page 11);
    • The policy's periodic fees and charges do not apply to coverage under this rider;
    • This rider does not have a surrender charge; and
    • Adding this rider will shorten the basic and Supplemental Death Benefit Guarantee periods of the base policy.

    After the tenth policy year, you can transfer your coverage under this rider to your base policy without evidence of insurability if your base death benefit is equal to your policy value multiplied by the appropriate factor described in Appendix A. Cost of insurance rates for this new coverage segment will be the same as the cost of insurance rates for the initial coverage segment. No surrender charge or monthly amount charge will apply to this new coverage segment of the base policy.

    Important Information about the Term Riders

    It may be to your economic advantage to include part of your insurance coverage under a term rider. Working with your agent/registered representative, consider the following when deciding whether to include coverage under a term rider and in what proportion to the total amount of coverage under your policy.

    Cost of Insurance and Other Fees and Charges. The cost of insurance rates and other fees and charges affect the value of your policy. The lower the cost of insurance and other fees and charges, the greater the policy's cash value. Accordingly, please be aware that:

    • The current cost of insurance rates for coverage under a term rider are generally less than the current cost of insurance rates for coverage under the base policy;
    • The guaranteed maximum cost of insurance rates for coverage under a term rider are generally more than the guaranteed maximum cost of insurance rates for coverage under the base policy during the first 20 policy years and the same thereafter; and
    • Some policy fees and charges that apply to coverage under the base policy may not apply to coverage under a term rider.

    Features and Benefits. Certain features and benefits are limited or unavailable if you have term rider coverage, including Death Benefit Guarantees.

    Variable Accumulation DesignSM 40


    Compensation. We generally pay more compensation to your agent on premiums paid for coverage under the base policy than we do on premiums paid for coverage under a term rider. See Distribution of the Policy, page 73.

    With these factors in mind, you should discuss with your agent/registered representative how the use of a term rider will affect the costs, benefits, features and performance of your policy. You should also review illustrations based on different combinations of base policy and term rider coverage so that you can decide what combination best meets your needs. The foregoing discussion does not contain all of the terms and conditions or limitations of coverage under the base policy or a term rider, and you should read the policy and the Four-Year Term Insurance Rider and Survivorship Term Rider carefully to fully understand their benefits and limitations.

    Automatic Rider Benefits

    The following rider benefits may come with your policy automatically. There may be an additional charge if you choose to exercise any of these rider benefits, and exercising the benefits may have tax consequences. See Rider Fees and Charges, page 29.

    Full Death Benefit Rider. The Full Death Benefit Rider changes how we calculate the death benefit after age 100 of the younger joint insured person. Under this rider the death benefit after age 100 of the younger joint insured person will continue to be calculated under the death benefit option in effect. However, at age 100 of the younger joint insured person we will:

    • Transfer your variable account value to the fixed account;
    • Terminate dollar cost averaging and automatic rebalancing programs; and
    • We will not deduct any further monthly cost of insurance charges.

    There is no charge for this rider. This rider benefit will automatically be added to new policies issued on or after May 1, 2006, that have attached the Lifetime Death Benefit Guarantee Rider. It may be added to policies issued prior to May 1, 2006, provided the Lifetime Death Benefit Guarantee Rider is in force.

    The tax consequences of coverage continuing after the younger joint insured person reaches age 100 are uncertain. You should consult a qualified tax adviser as to those consequences. See Continuation of a Policy, page 63.

    Overloan Lapse Protection Rider. The Overloan Lapse Protection Rider is a benefit you may exercise to guarantee that your policy will not lapse even if your surrender value or net policy value, as applicable, is not enough to pay the periodic fees and charges when due. This rider may help you keep your policy in force and avoid tax consequences resulting from your policy lapsing with a loan outstanding. See Distributions Other than Death Benefits, page 60.

    Variable Accumulation DesignSM 41


    You may exercise this benefit by written request if all of the following conditions are met:

    • At least 15 policy years have elapsed since your policy date;
    • The younger joint insured is at least age 75;
    • Your loan account value is equal to or greater than the amount of insurance coverage selected under the base policy plus the amount of term insurance rider coverage, if any;
    • Your loan account value less any unearned loan interest does not exceed your policy value less the transaction charge for this rider (see Loan Account Value, page 46; see also Loan Interest, page 47);
    • Exercise of this rider does not cause your policy to become a modified endowment contract under Section 7702A of the Internal Revenue Code (see Modified Endowment Contracts, page 60); and
    • Exercise of this rider does not cause your policy to violate the statutory premium limits allowed under the guideline premium test (see Death Benefit Qualification Test, page 33).

    We will notify you if you meet all of these conditions and explain the consequences of choosing to exercise this rider.

    You should consider the following consequences when deciding whether to exercise the Overloan Lapse Protection Rider:

  • On the monthly processing date on or next following the date we receive your request to exercise this rider:
     
     
  • We will assess a one time transaction charge. This charge equals 3.50% of your policy value (see Transaction Fees and Charges table, page 8);
     
     
  • If another death benefit option is in effect, the death benefit option will automatically be changed to death benefit Option 1 (see Death Benefit Options, page 34);
     
     
  • The amount of insurance coverage after exercise of this rider will equal your policy value (less the transaction charge) multiplied by the guideline premium test factor described in Appendix A;
     
     
  • Amounts allocated to the subaccounts of the variable account will be transferred to the fixed account; and
     
     
  • All optional benefit riders will be terminated.
     
  • Insurance coverage under your policy will continue in force, subject to the following limitations and restrictions:
     
     
  • We will continue to deduct monthly periodic fees and charges (other than the Mortality and Expense Risk charge which will no longer apply);
     
     
  • You may not make any further premium payments;
     
     
  • Any unpaid loan interest will be added to your loan account balance;
     
     
  • You may not make any future transfers from the fixed account to the subaccounts of the variable account;
     
     
  • You may not add any additional benefits by rider in the future; and
     
     
  • You may not increase or decrease the amount of insurance coverage, change the death benefit option or make any partial withdrawals.
     

    This benefit may vary by state. You should consult your agent/registered representative as to whether and to what extent the rider is available in your particular state and on any particular policy.

    Variable Accumulation DesignSM 42


    Policy Split Option Rider. The Policy Split Option Rider allows you, under certain circumstances, the opportunity to exchange your policy for two single life insurance policies. One single life policy will be issued on the life of each joint insured person. The new single life policies will be subject to the minimum and maximum coverage amounts and issue ages for the plan of insurance chosen. We may require evidence of insurability.

    Unless law requires otherwise, you may use the policy split option within 90 days of the occurrence of any of the following events:

  • A final divorce decree regarding the marriage of the joint insured persons;
     
  • A dissolution of a business partnership of the joint insured persons; or
     
  • A change in the federal estate tax laws which results in either:
     
     
  • Elimination of the unlimited marital deduction; or
     
     
  • A reduction by at least 50% the estate taxes payable upon death.
     

    You should consider the following before requesting to exercise the policy split option:

    • On the effective date of the policy split, the available death benefit under your policy will be divided between the two new single life policies. The death benefit of each new single life policy cannot be greater than 50% of the base policy's death benefit, not including riders;
    • You may take less than the maximum death benefit amount available. If the total death benefit for the two new single life insurance policies is less than the total death benefit under the one policy before the split, there may be a surrender charge;
    • On the effective date of the policy split, the policy value of the base policy will be divided equally and each portion will be applied as premiums to each of the new single life policies;
    • The premiums for the new single life policies will be based on the age and risk class of each joint insured person on the effective date of the policy split.
      Premiums will be due for each new policy under the terms of the new policy;
    • The new policy owner will be the joint insured person whose life is insured under the new single life policy, unless specified otherwise;
    • The beneficiary for each single life policy will be the beneficiary named for the base policy, unless specified otherwise; and
    • Exercising the policy split option may be treated as a taxable transaction. Moreover, two single life insurance policies could be treated as modified endowment contracts. See Taxation of Policy Splits, page 63.

    There is no charge for this rider.

    The tax consequences of exercising the policy split option are uncertain. You should consult a qualified tax adviser as to those consequences. See Taxation of Policy Splits, page 63.

    Variable Accumulation DesignSM 43


    Supplemental Death Benefit Guarantee Rider. The Supplemental Death Benefit Guarantee Rider provides a guarantee that your policy will not lapse during the Supplemental Death Benefit Guarantee period if on each monthly processing date since the policy date your cumulative premium payments, minus any partial withdrawals or loans, are at least equal to 40% of the sum of minimum monthly premium payments to the next monthly processing date. The supplemental guarantee period begins on the policy date and is equal to the death benefit guarantee period shown in your policy, multiplied by 40% and rounded to the lower whole number of policy years. The supplemental guarantee period may not exceed ten policy years. There is no charge for this guarantee.

    You should consider the following in relation to the Supplemental Death Benefit Guarantee Rider:

    • Even though you may pay less than the minimum premium amount, you may lose the significant protection provided by the Supplemental Death Benefit Guarantee Rider by doing so;
    • A loan may cause the termination of this guarantee because we deduct your loan amount from cumulative premiums paid when calculating whether you have paid sufficient premiums to keep the guarantee in effect; and
    • Even if the Supplemental Death Benefit Guarantee terminates, your policy will not necessarily lapse (see Lapse, page 56).

    We will notify you if on any monthly processing date you have not paid enough premium to maintain the Supplemental Death Benefit Guarantee. This notice will show the amount of premium required to maintain this guarantee. If we do not receive the required premium payment within 61 days from the date of our notice, the Supplemental Death Benefit Guarantee will terminate. If the Supplemental Death Benefit Guarantee terminates, it cannot be reinstated.

    Policy Value     
     
    Your policy value equals the sum of your fixed account,    In the policy 
    form the 
    “policy value” 
    is referred to as 
    the 
    “Accumulation 
    Value,” the 
    “fixed account 
    value” is 
    referred to as 
    the “Fixed 
    Accumulation 
    Value,” and the 
    “variable 
    account value” 
    is referred to as 
    the “Variable 
    Accumulation 
    Value.” 
    variable account and loan account values. Your policy   
    value reflects:   
    · The net premium applied to your policy;   
    · The fees and charges that we deduct;   
    · Any partial withdrawals you take;   
    · Interest earned on amounts allocated to the fixed   
         account;   
    · The investment performance of the funds underlying   
         the subaccounts of the variable account; and   
    · Interest earned on amounts held in the loan account.   
       
    Fixed Account Value   
       
    Your fixed account value equals the net premium you   
    allocate to the fixed account, plus interest earned, minus   
    amounts you transfer out or withdraw. It may be reduced   
    by fees and charges assessed against your policy value.   
    See The Fixed Account, page 20.   

    Variable Accumulation DesignSM 44


    Variable Account Value

    Your variable account value equals your policy value attributable to amounts invested in the subaccounts of the variable account.

    Determining Values in the Subaccounts. The value of the amount invested in each subaccount is measured by accumulation units and accumulation unit values. The value of each subaccount is the accumulation unit value for that subaccount multiplied by the number of accumulation units you own in that subaccount. Each subaccount has a different accumulation unit value.

    The accumulation unit value is the value determined on each valuation date. The accumulation unit value of each subaccount varies with the investment performance of its underlying fund. It reflects:

    • Investment income;
    • Realized and unrealized gains and losses;
    • Fund expenses (including fund redemption fees, if applicable); and
    • Taxes, if any.

    A valuation date is a date on which a fund values its shares and the New York Stock Exchange is open for business, except for days on which valuations are suspended by the SEC. Each valuation date ends at 4:00 p.m. Eastern time. We reserve the right to revise the definition of valuation date as needed in accordance with applicable federal securities laws and regulations.

    You purchase accumulation units when you allocate premium or make transfers to a subaccount, including transfers from the loan account.

    We redeem accumulation units:

    • When amounts are transferred from a subaccount (including transfers to the loan account);
    • For the monthly deduction of the periodic fees and charges from your variable account value;
    • For policy transaction fees;
    • When you take a partial withdrawal;
    • If you surrender your policy; and
    • To pay the death benefit proceeds.

    To calculate the number of accumulation units purchased or sold we divide the dollar amount of your transaction by the accumulation unit value for the subaccount calculated at the close of business on the valuation date of the transaction.

    The date of a transaction is the date we receive your premium or transaction request at our Customer Service Center, so long as the date of receipt is a valuation date. We use the accumulation unit value that is next calculated after we receive your premium or transaction request and we use the number of accumulation units attributable to your policy on the date of receipt.

    Variable Accumulation DesignSM 45


    We deduct the periodic fees and charges each month from your variable account value on the monthly processing date. If your monthly processing date is not a valuation date, the monthly deduction is processed on the next valuation date.

    The value of amounts allocated to the subaccounts goes up or down depending on the investment performance of the corresponding funds. There is no guaranteed minimum value of amounts invested in the subaccounts of the variable account.

    How We Calculate Accumulation Unit Values. We determine the accumulation unit value for each subaccount on each valuation date.

    We generally set the accumulation unit value for a subaccount at $10 when the subaccount is first opened. After that, the accumulation unit value on any valuation date is:

    • The accumulation unit value for the preceding valuation date; multiplied by
    • The subaccount's accumulation experience factor for the valuation period.

    Every valuation period begins at 4:00 p.m. Eastern time on a valuation date and ends at 4:00 p.m. Eastern time on the next valuation date. We reserve the right to revise the definition of valuation date as needed in accordance with applicable federal securities laws and regulations.

    We calculate an accumulation experience factor for each subaccount every valuation date as follows:

    • We take the net asset value of the underlying fund shares as reported to us by the fund managers as of the close of business on that valuation date;
    • We add dividends or capital gain distributions declared and reinvested by the fund during the current valuation period;
    • We subtract a charge for taxes, if applicable; and
    • We divide the resulting amount by the net asset value of the shares of the underlying fund at the close of business on the previous valuation date.
    Loan Account Value     
     
    When you take a loan from your policy we transfer your    In the policy 
    form the “loan 
    account value” 
    is referred to as 
    the “Loan 
    Amount.” 
     
    loan amount to the loan account as collateral for your   
    loan. Your loan amount includes interest payable in   
    advance to the next policy anniversary. The loan account   
    is part of our general account and we charge interest on   
    amounts held in the loan account. Your loan account   
    value is equal to your outstanding loan amount plus any   
    interest credited on the loan account value. See Loans,   
    page 47.   

    Variable Accumulation DesignSM 46


    Special Features and Benefits

    Loans

    You may borrow money from us by using your policy as collateral for the loan. We reserve the right to limit borrowing during the first policy year. Unless state law requires otherwise, a new loan amount must be at least $500, and the amount you may borrow is limited to 90% of the surrender value of your policy. At the older joint insured person's age 65, we currently allow you to borrow up to 100% of the surrender value.

    When you take a loan, we transfer an amount equal to your loan to the loan account. The loan account is part of our general account specifically designed to hold collateral for policy loans and interest.

    Your loan request must be directed to our Customer Service Center. When you request a loan you may specify the investment options from which the loan collateral will be taken. If you do not specify the investment options, the loan collateral will be taken proportionately from each active investment option you have, including the fixed account.

    If you request an additional loan, we add the new loan amount to your existing loan. This way, there is only one loan outstanding on your policy at any time.

    Loan Interest. We credit amounts held in the loan account with interest at an annual rate of 3.00% . Interest we credit is allocated to the subaccounts and fixed account in the same proportion as your current premium allocation unless you tell us otherwise.

    We also charge interest on loans. The annual interest rate charged is currently 4.76% .

    After the tenth policy year, the annual interest rate that we charge will be reduced to 2.91% (guaranteed not to exceed 3.38%) for that portion of the loan amount that is not greater than:

    • Your variable account value plus your fixed account value; minus
    • The sum of all premiums paid minus all partial withdrawals.

    Loans with this reduced interest rate are preferred loans. This reduced interest rate may change at any time but is guaranteed not to exceed 3.38% .

    Interest is payable in advance at the time you take any loan (for the rest of the policy year) and at the beginning of each policy year thereafter (for the entire policy year). If you do not pay the interest when it is due, we add it to your loan account balance.

    We will refund to you any interest we have not earned if:

    • Your policy lapses;
    • You surrender your policy; or
    • You repay your loan.

    Variable Accumulation DesignSM 47


    Loan Repayment. You may repay your loan at any time. However, unless you tell us otherwise we will treat amounts received as premium payments and not loan repayments. You must tell us if you want a premium payment to go towards repaying your loan.

    When you make a loan repayment, we transfer an amount equal to your payment from the loan account to the subaccounts and fixed account in the same proportion as your current premium allocation, unless you tell us otherwise.

    Effects of a Policy Loan. Using your policy as collateral for a loan will effect your policy in various ways. You should carefully consider the following before taking a policy loan:

    • If you do not make loan repayments your policy could lapse because your surrender value may not be enough to pay your fees and charges each month;
    • A loan may cause the termination of the death benefit guarantees because we deduct your loan amount from cumulative premiums paid when calculating whether you have paid sufficient premiums to keep the death benefit guarantee in effect;
    • Taking a loan reduces your opportunity to participate in the investment performance of the subaccounts and the interest guarantees of the fixed account;
    • Accruing loan interest will change your policy value as compared to what it would have been if you did not take a loan;
    • Even if you repay your loan, it will have a permanent effect on your policy value;
    • If you do not repay your loan we will deduct any outstanding loan amount from amounts payable under the policy; and
    • Loans may have tax consequences and if your policy lapses with a loan outstanding, you may have further tax consequences. See Distributions Other than Death Benefits, page 60.

    Transfers

    You currently may make an unlimited number of transfers of your variable account value between the subaccounts and to the fixed account. Transfers are subject to any conditions or limits that we or the funds whose shares are involved may impose, including:

    • You may generally not make transfers until after the fifteenth day following your policy date (see Allocation of Net Premium, page 23.);
    • We reserve the right to limit you to 12 transfers each policy year;
    • Although we currently do not impose a charge for transfers, we reserve the right to charge up to $25 for each transfer; and
    • We may impose the transfer charge, limit the number of transfers each policy year, restrict or refuse transfers because of frequent or disruptive transfers, as described below.

    Variable Accumulation DesignSM 48


    Any conditions or limits we impose on transfers between the subaccounts or to the fixed account will generally apply equally to all policy owners. However, we may impose different conditions or limits on policy owners or third parties acting on behalf of policy owners, such as market timing services, who violate our excessive trading policy. See Limits on Frequent or Disruptive Transfers, page 50.

    Transfers from the fixed account to the subaccounts of the variable account are subject to the following additional restrictions:

    • Only one transfer is permitted each policy year, and you may only make this transfer within 30 days of the anniversary of your policy date;
    • You may only transfer up to 50% of your fixed account value unless the balance, after the transfer, would be less than $1,000 in which event you may transfer your full fixed account value; and
    • Your transfer must be at least the lesser of $500 or your total fixed account value.

    We reserve the right to liberalize these restrictions on transfers from the fixed account, depending on market conditions. Any such liberalization will generally apply equally to all policy owners. However, we may impose different restrictions on third parties acting on behalf of policy owners, such as market timing services.

    We process all transfers and determine all values in connection with transfers on the valuation date we receive your request in good order, except as described below for the dollar cost averaging or automatic rebalancing programs.

    Dollar Cost Averaging. Anytime your policy value less the loan account value is at least $5,000 you may elect dollar cost averaging.

    Dollar cost averaging is a long-term investment program through which you direct us to automatically transfer at regular intervals a specific dollar amount from any of the subaccounts to one or more of the other subaccounts or to the fixed account. We do not permit transfers from the fixed account under this program. You may request that the dollar cost averaging transfers occur on a monthly, quarterly, semi-annual or annual basis. You may discontinue this program at any time. Although we currently do not charge for this feature, we reserve the right to impose a charge in the future.

    This systematic plan of transferring policy values is intended to help reduce the risk of investing too much when the price of a fund's shares is high. It also helps reduce the risk of investing too little when the price of a fund's shares is low. Because you transfer the same dollar amount to the subaccounts each period, you purchase more units when the unit value is low and you purchase fewer units when the unit value is high.

    Dollar cost averaging does not assure a profit nor does it protect you against a loss in a declining market.

    Variable Accumulation DesignSM 49


    You may discontinue your dollar cost averaging program at any time. We reserve the right to discontinue, modify or suspend this program, and dollar cost averaging will automatically terminate if:

    • We receive a request to begin an automatic rebalancing program;
    • The policy is in the grace period on any date when dollar cost averaging transfers are scheduled; or
    • The specified transfer amount from any subaccount is more than the variable account value in that subaccount.

    Automatic Rebalancing. Anytime your policy value less the loan account value is at least $10,000 you may elect automatic rebalancing. Automatic rebalancing is a program for simplifying the process of asset allocation and maintaining a consistent allocation of your variable and fixed account values among your chosen investment options. Although we currently do not charge for this feature, we reserve the right to impose a charge in the future.

    If you elect automatic rebalancing, we periodically transfer amounts among the investment options to match the asset allocation percentages you have chosen. This action rebalances the amounts in the investment options that do not match your set allocation percentages. This mismatch can happen if an investment option outperforms another investment option over the time period between automatic rebalancing transfers.

    Automatic rebalancing does not assure a profit nor does it protect you against a loss in a declining market.

    You may discontinue your automatic rebalancing program at any time. We reserve the right to discontinue, modify or suspend this program, and automatic rebalancing will automatically terminate if:

    • We receive a request to transfer policy values among the investment options;
    • We receive a request to begin a dollar cost averaging program;
    • The policy is in the grace period on any date when automatic rebalancing transfers are scheduled; or
    • The sum of your variable and fixed account values is less than $7,500 on any date when automatic rebalancing transfers are scheduled.

    Limits on Frequent or Disruptive Transfers

    The policy is not designed to serve as a vehicle for frequent transfers. Frequent transfer activity can disrupt management of a fund and raise its expenses through:

    • Increased trading and transaction costs;
    • Forced and unplanned portfolio turnover;
    • Lost opportunity costs; and
    • Large asset swings that decrease the fund’s ability to provide maximum investment return to all policy owners.

    Variable Accumulation DesignSM 50


    This in turn can have an adverse effect on fund performance. Accordingly, individuals or organizations that use market-timing investment strategies or make frequent transfers should not purchase the policy.

    Excessive Trading Policy. We and the other members of the ING family of companies that provide multi-fund variable insurance and retirement products have adopted a common Excessive Trading Policy to respond to the demands of the various fund families that make their funds available through our products to restrict excessive fund trading activity and to ensure compliance with Rule 22c-2 of the 1940 Act.

    We actively monitor fund transfer and reallocation activity within our variable insurance products to identify violations of our Excessive Trading Policy. Our Excessive Trading Policy is violated if fund transfer and reallocation activity:

    • Meets or exceeds our current definition of Excessive Trading, as defined below; or
    • Is determined, in our sole discretion, to be disruptive or not in the best interests of other owners of our variable insurance and retirement products.

    We currently define Excessive Trading as:

    • More than one purchase and sale of the same fund (including money market funds) within a 60 calendar day period (hereinafter, a purchase and sale of the same fund is referred to as a “round-trip”). This means two or more round-trips involving the same fund within a 60 calendar day period would meet our definition of Excessive Trading; or
    • Six round-trips involving the same fund within a rolling twelve month period.

    The following transactions are excluded when determining whether trading activity is excessive:

    • Purchases or sales of shares related to non-fund transfers (for example, new purchase payments, withdrawals and loans);
    • Transfers associated with scheduled dollar cost averaging, scheduled rebalancing or scheduled asset allocation programs;
    • Purchases and sales of fund shares in the amount of $5,000 or less;
    • Purchases and sales of funds that affirmatively permit short-term trading in their fund shares, and movement between such funds and a money market fund; and
    • Transactions initiated by us, another member of the ING family of companies or a fund.

    Variable Accumulation DesignSM 51


    If we determine that an individual or entity has made a purchase of a fund within 60 days of a prior round-trip involving the same fund, we will send them a letter (once per year) warning that another sale of that same fund within 60 days of the beginning of the prior round-trip will be deemed to be Excessive Trading and result in a six month suspension of their ability to initiate fund transfers or reallocations through the Internet, facsimile, Voice Response Unit (VRU), telephone calls to the ING Customer Service Center or other electronic trading medium that we may make available from time to time (“Electronic Trading Privileges”). Likewise, if we determine that an individual or entity has made five round-trips involving the same fund within a rolling twelve month period, we will send them a letter warning that another purchase and sale of that same fund within twelve months of the initial purchase in the first round-trip will be deemed to be Excessive Trading and result in a suspension of their Electronic Trading Privileges. According to the needs of the various business units, a copy of any warning letters may also be sent, as applicable, to the person(s) or entity authorized to initiate fund transfers or reallocations, the agent/registered representative or the investment adviser for that individual or entity. A copy of the warning letters and details of the individual’s or entity’s trading activity may also be sent to the fund whose shares were involved in the trading activity.

    If we determine that an individual or entity has violated our Excessive Trading Policy, we will send them a letter stating that their Electronic Trading Privileges have been suspended for a period of six months. Consequently, all fund transfers or reallocations, not just those that involve the fund whose shares were involved in the activity that violated our Excessive Trading Policy, will then have to be initiated by providing written instructions to us via regular U.S. mail. Suspension of Electronic Trading Privileges may also extend to products other than the product through which the Excessive Trading activity occurred. During the six month suspension period, electronic “inquiry only” privileges will be permitted where and when possible. A copy of the letter restricting future transfer and reallocation activity to regular U.S. mail and details of the individual’s or entity’s trading activity may also be sent, as applicable, to the person(s) or entity authorized to initiate fund transfers or reallocations, the agent/registered representative or investment adviser for that individual or entity and the fund whose shares were involved in the activity that violated our Excessive Trading Policy.

    Following the six month suspension period during which no additional violations of our Excessive Trading Policy are identified, Electronic Trading Privileges may again be restored. We will continue to monitor the fund transfer and reallocation activity, and any future violations of our Excessive Trading Policy will result in an indefinite suspension of Electronic Trading Privileges. A violation of our Excessive Trading Policy during the six month suspension period will also result in an indefinite suspension of Electronic Trading Privileges.

    We reserve the right to suspend Electronic Trading Privileges with respect to any individual or entity, with or without prior notice, if we determine, in our sole discretion, that the individual’s or entity’s trading activity is disruptive or not in the best interests of other owners of our variable insurance and retirement products, regardless of whether the individual’s or entity’s trading activity falls within the definition of Excessive Trading set forth above.

    Variable Accumulation DesignSM 52


    Our failure to send or an individual’s or entity’s failure to receive any warning letter or other notice contemplated under our Excessive Trading Policy will not prevent us from suspending that individual’s or entity’s Electronic Trading Privileges or taking any other action provided for in our Excessive Trading Policy.

    Except as noted below with respect to Paul M. Prusky, we do not allow exceptions to our Excessive Trading Policy. We reserve the right to modify our Excessive Trading Policy, or the policy as it relates to a particular fund, at any time without prior notice, depending on, among other factors, the needs of the underlying fund(s), the best interests of policy owners and fund investors and/or state or federal regulatory requirements. If we modify our policy, it will be applied uniformly to all policy owners or, as applicable, to all policy owners investing in the underlying fund.

    Our Excessive Trading Policy may not be completely successful in preventing market timing or excessive trading activity. If it is not completely successful, fund performance and management may be adversely affected, as noted above.

    Since late 2003, we have been engaged in litigation with Paul M. Prusky (“Prusky”), and others, regarding a 1998 agreement between Prusky and ReliaStar. Under the agreement, Prusky, through a profit-sharing plan, engaged in frequent electronic trading between subaccounts available through certain ReliaStar variable life insurance policies (“market timing”). Beginning in late 2003, ReliaStar refused to accept electronic trading instructions from Prusky because of violations of our Excessive Trading Policy.

    On January 5, 2007, the United States District Court for the Eastern District of Pennsylvania (the “Federal Court”) ordered ReliaStar to accept and effect Prusky’s subaccount transfer instructions electronically “without limitation as to the number of transfer instructions so long as those transfers are not explicitly barred by a specific condition imposed by the fund in which the subaccount is invested.” (Order Granting in Part Summary Judgment, Paul M. Prusky, et al. v. ReliaStar Life Insurance Company, Civil Action No. 03-6196, Jan. 5, 2007, and Order Denying Defendant’s Motion for Clarification, dated January 12, 2007 (“Order”)). In light of the Order, we must accept and effect Prusky’s electronic transfer instructions.

    When issuing the Order, the Federal Court did state that we could enforce conditions and/or restrictions on trading imposed by the funds in which the ReliaStar subaccounts invest. (Memorandum Accompanying the Order, at pp. 9-10.) We will enforce all such fund-imposed conditions and/or restrictions consistent with the Order and the judgment of the Federal Court in a related matter.

    Prusky’s ReliaStar policies include subaccounts which invest in all the same funds as are available through this policy. The prospectus for each fund describes restrictions imposed by the fund to prevent or minimize frequent trading.

    Variable Accumulation DesignSM 53


    Limits Imposed by the Funds. Each underlying fund available through the variable insurance and retirement products offered by us and/or the other members of the ING family of companies, either by prospectus or stated policy, has adopted or may adopt its own excessive/frequent trading policy, and orders for the purchase of fund shares are subject to acceptance or rejection by the underlying fund. We reserve the right, without prior notice, to implement fund purchase restrictions and/or limitations on an individual or entity that the fund has identified as violating its excessive/frequent trading policy and to reject any allocation or transfer request to a subaccount if the corresponding fund will not accept the allocation or transfer for any reason. All such restrictions and/or limitations (which may include, but are not limited to, suspension of Electronic Trading Privileges and/or blocking of future purchases of a fund or all funds within a fund family) will be done in accordance with the directions we receive from the fund.

    Agreements to Share Information with Fund Companies. As required by Rule 22c-2 under the 1940 Act, we have entered into information sharing agreements with each of the fund companies whose funds are offered through the policy. Policy owner trading information is shared under these agreements as necessary for the fund companies to monitor fund trading and our implementation of our Excessive Trading Policy. Under these agreements, the company is required to share information regarding policy owner transactions, including but not limited to information regarding fund transfers initiated by you. In addition to information about policy owner transactions, this information may include personal policy owner information, including names and social security numbers or other tax identification numbers.

    As a result of this information sharing, a fund company may direct us to restrict a policy owner’s transactions if the fund determines that the policy owner has violated the fund’s excessive/frequent trading policy. This could include the fund directing us to reject any allocations of premium or policy value to the fund or all funds within the fund family.

    Conversion to a Guaranteed Policy

    During the first two policy years and the first two years after an increase in the amount of your insurance coverage, you may permanently convert your policy or the requested increase in insurance coverage to a guaranteed policy, unless state law requires differently. If you elect to make this change, unless state law requires that we issue to you a new guaranteed policy, we will permanently transfer the amounts you have invested in the subaccounts of the variable account to the fixed account and allocate all future net premium to the fixed account. After you exercise this right you may not allocate future premium payments or make transfers to the subaccounts of the variable account. We do not charge for this change. Contact our Customer Service Center or your agent/registered representative for information about the conversion rights available in your state.

    Variable Accumulation DesignSM 54


    Partial Withdrawals

    Beginning in the second policy year you may withdraw part of your policy's surrender value. Only one partial withdrawal is currently allowed each policy year during policy years two through ten and 12 each policy year thereafter. A partial withdrawal must be at least $500. In policy years two through 15, you may not withdraw more than 20% of your surrender value.

    We currently charge $10 for each partial withdrawal, but we reserve the right to charge up to $25 for each partial withdrawal. See Partial Withdrawal Fee, page 25.

    Unless you specify a different allocation, we will take partial withdrawals from the fixed account and the subaccounts of the variable account in the same proportion that your value in each has to your policy value on the monthly processing date. We will determine these proportions at the end of the valuation period during that we receive your partial withdrawal request. For purposes of determining these proportions, we will not include any outstanding loan account value.

    Unless you request otherwise, proceeds from a partial withdrawal generally will be paid into an interest bearing account that you can access, without penalty, through a checkbook feature. See Transaction Processing, page 69.

    Effects of a Partial Withdrawal. We will reduce the policy value by the amount of a partial withdrawal. We will also reduce the death benefit by an amount equal to the factor from the definition of life insurance factors described in Appendix A multiplied by the amount of the partial withdrawal. A partial withdrawal may also cause the termination of the death benefit guarantees because we deduct the amount of the partial withdrawal from the total premiums paid when calculating whether you have paid sufficient premiums in order to maintain the death benefit guarantees.

    If death benefit Option 1 is in effect, we will decrease the amount of insurance coverage by the amount of a partial withdrawal. Decreases in insurance coverage on policies with multiple coverage segments will be made in the following order:

    (1)      From the most recent segment;
     
    (2)      From the next more recent segments successively; and
     
    (3)      From the initial segment.
     

    Therefore, partial withdrawals may affect the way in which the cost of insurance is calculated and the amount of pure insurance protection under the policy. See Cost of Insurance, page 27.

    If death benefit Option 2 or Option 3 is in effect, a partial withdrawal will not affect the amount of insurance coverage.

    We will not allow a partial withdrawal if the amount of insurance coverage after the withdrawal would be less than $250,000.

    Variable Accumulation DesignSM 55


    A partial withdrawal may have tax consequences depending on the circumstances of such withdrawal. See Tax Status of the Policy, page 59.

    Termination of Coverage

    Your insurance coverage will continue under the policy until you surrender your policy or it lapses.

    Surrender     
     
    You may surrender your policy for its surrender value any    In the policy 
    form the 
    “surrender 
    value” is 
    referred to as 
    the “Cash 
    Surrender 
    Value.” 
    time after the free look period while the insured person is   
    alive. Your surrender value is your policy value minus   
    any surrender charge, loan amount and unpaid fees and   
    charges.   
       
    You may take your surrender value in other than one   
    payment.   

    We compute your surrender value as of the valuation date we receive your written surrender request and policy at our Customer Service Center in good order. All insurance coverage ends on the date we receive your surrender request and policy.

    Unless you request otherwise, we will deposit your surrender value into an interest bearing account that you can access, without penalty, through a checkbook feature. See Transaction Processing, page 69.

    Surrender of your policy may have adverse tax consequences. See Distributions Other than Death Benefits, page 60.

    Lapse

    Your policy will not lapse and your insurance coverage under the policy will continue if on any monthly processing date:

    • A death benefit guarantee is in effect; or
    • Your surrender value is enough to pay the periodic fees and charges when due.

    Grace Period. If on a monthly processing date you do not meet either of these conditions, your policy will enter the 61-day grace period during which you must make a sufficient premium payment to avoid having your policy lapse and insurance coverage terminate.

    Variable Accumulation DesignSM 56


    We will notify you that your policy is in a grace period at least 30 days before it ends. We will send this notice to you (and a person to whom you have assigned your policy) at your last known address in our records. We will notify you of the premium payment necessary to prevent your policy from lapsing. This amount generally equals the past due charges, plus the estimated periodic fees and charges and charges of any optional rider benefits for the next two months. If we receive payment of the required amount before the end of the grace period, we apply it to your policy in the same manner as your other premium payments, and then we deduct the overdue amounts from your policy value.

    If you do not pay the full amount within the 61-day grace period, your policy and its riders lapse will without value. We withdraw your remaining variable and fixed account values, deduct amounts you owe us and inform you that your coverage has ended.

    If the surviving joint insured person dies during the grace period, we do pay death benefit proceeds to your beneficiaries with reductions for your loan amount and periodic fees and charges owed.

    During the early policy years your surrender value will generally not be enough to cover the periodic fees and charges each month, and you will generally need to pay at least the minimum premium amount (to maintain the basic and Supplemental Death Benefit Guarantees) for the policy not to lapse.

    If your policy lapses, any distribution of policy value may be subject to current taxation. See Distributions Other than Death Benefits, page 60.

    Reinstatement

    Reinstatement means putting a lapsed policy back in force. You may reinstate a lapsed policy by written request any time within five years after it has lapsed. A policy that was surrendered may not be reinstated.

    To reinstate the policy and any available riders, you must submit evidence satisfactory to us that each joint insured person, or surviving joint insured person, is still insurable and pay a premium large enough to keep the policy and any rider benefits in force for at least two months. If you had a policy loan existing when coverage lapsed, unless directed otherwise we will reinstate it with accrued loan interest to the date of the lapse.

    A lapsed Basic Death Benefit Guarantee cannot, unless otherwise allowed under state law, be reinstated after the fifth policy year. A lapsed Supplemental Death Benefit Guarantee cannot be reinstated.

    A policy that lapses during a seven pay testing period and is reinstated more than 90 days after lapsing may be classified as a modified endowment contract for tax purposes. In general, a seven pay testing period is the first seven policy years and the first seven years after certain changes to your policy. You should consult with a qualified adviser to determine whether reinstating a lapsed policy will cause it to be classified as a modified endowment contract. See Modified Endowment Contracts, page 60.

    Variable Accumulation DesignSM 57


    TAX CONSIDERATIONS

    The following summary provides a general description of the federal income tax considerations associated with the policy and does not purport to be complete or to cover federal estate, gift and generation-skipping tax implications, state and local taxes or other tax situations. This discussion is not intended as tax advice. Counsel or other qualified tax advisers should be consulted for more complete information. This discussion is based upon our understanding of the present federal income tax laws. No representation is made as to the likelihood of continuation of the present federal income tax laws or as to how they may be interpreted by the Internal Revenue Service (“IRS”).

    The following discussion generally assumes that the policy will qualify as a life insurance contract for federal tax purposes.

    Tax Status of the Company

    We are taxed as a life insurance company under the Internal Revenue Code. The variable account is not a separate entity from us. Therefore, it is not taxed separately as a “regulated investment company,” but is taxed as part of the company. We automatically apply investment income and capital gains attributable to the separate account to increase reserves under the policy. Because of this, under existing federal tax law we believe that any such income and gains will not be taxed to us. In addition, any foreign tax credits attributable to the separate account will first be used to reduce any income taxes imposed on the variable account before being used by the company.

    In summary, we do not expect that we will incur any federal income tax liability attributable to the variable account and we do not intend to make provisions for any such taxes. However, if changes in the federal tax laws or their interpretation result in our being taxed on income or gains attributable to the variable account, then we may impose a charge against the variable account (with respect to some or all of the policies) to set aside provisions to pay such taxes.

    Variable Accumulation DesignSM 58


    Tax Status of the Policy

    This policy is designed to qualify as a life insurance contract under the Internal Revenue Code. All terms and provisions of the policy shall be construed in a manner that is consistent with that design. In order to qualify as a life insurance contract for federal income tax purposes and to receive the tax treatment normally accorded life insurance contracts under federal tax law, a policy must satisfy certain requirements that are set forth in Section 7702 of the Internal Revenue Code. Specifically, the policy must meet the requirements of the guideline premium test. See Death Benefit Qualification Test, page 33. If your variable life policy does not satisfy this test, it will not be treated as life insurance under Internal Revenue Code 7702. You would then be subject to federal income tax on your policy income as you earn it. While there is very little guidance as to how these requirements are applied, we believe it is reasonable to conclude that our policies satisfy the applicable requirements. If it is subsequently determined that a policy does not satisfy the applicable requirements, we will take appropriate and reasonable steps to bring the policy into compliance with such requirements and we reserve the right to restrict policy transactions or modify your policy in order to do so. See Tax Treatment of Policy Death Benefits, page 60. If we return premium in order to bring your policy into compliance with the requirements of Section 7702, it will be refunded on a last-in, first-out basis and may be taken from the investment options in which your policy is allocated based on your premium allocation in effect when we received the premium to be refunded.

    Diversification and Investor Control Requirements

    In addition to meeting the Internal Revenue Code Section 7702 guideline premium test, Internal Revenue Code Section 817(h) requires investments within a separate account, such as our variable account, to be adequately diversified. The Treasury has issued regulations that set the standards for measuring the adequacy of any diversification, and the Internal Revenue Service has published various revenue rulings and private letter rulings addressing diversification issues. To be adequately diversified, each subaccount and its corresponding fund must meet certain tests. If these tests are not met, your variable life policy will not be adequately diversified and not treated as life insurance under Internal Revenue Code Section 7702. You would then be subject to federal income tax on your policy income as you earn it. Each subaccount's corresponding fund has represented that it will meet the diversification standards that apply to your policy. Accordingly, we believe it is reasonable to conclude that the diversification requirements have been satisfied. If it is determined, however, that your variable life policy does not satisfy the applicable diversification regulations, we will take appropriate and reasonable steps to bring your policy into compliance with such regulations and we reserve the right to modify your policy as necessary in order to do so.

    Variable Accumulation DesignSM 59


    In certain circumstances, owners of a variable life insurance policy have been considered, for federal income tax purposes, to be the owners of the assets of the separate account supporting their policies, due to their ability to exercise investment control over such assets. When this is the case, the policy owners have been currently taxed on income and gains attributable to the separate account assets. Your ownership rights under your policy are similar to, but different in some ways from those described by the IRS in rulings in which it determined that policy owners are not owners of separate account assets. For example, you have additional flexibility in allocating your premium payments and your policy values. These differences could result in the IRS treating you as the owner of a pro rata share of the variable account assets. We do not know what standards will be set forth in the future, if any, in Treasury regulations or rulings. We reserve the right to modify your policy, as necessary, to try to prevent you from being considered the owner of a pro rata share of the variable account assets, or to otherwise qualify your policy for favorable tax treatment.

    Tax Treatment of Policy Death Benefits

    The death benefit, or an accelerated death benefit, under a policy is generally excludable from the gross income of the beneficiary(ies) under Section 101(a)(1) of the Internal Revenue Code. However, there are exceptions to this general rule. Additionally, federal, state and local transfer, estate, inheritance and other tax consequences of ownership or receipt of policy proceeds depend on the circumstances of each policy owner or beneficiary(ies). A qualified tax adviser should be consulted about these consequences.

    Distributions Other than Death Benefits

    Generally, the policy owner will not be taxed on any of the policy value until there is a distribution. When distributions from a policy occur, or when loan amounts are taken from or secured by a policy, the tax consequences depend on whether or not the policy is a “modified endowment contract.”

    Modified Endowment Contracts

    Under the Internal Revenue Code, certain life insurance contracts are classified as “modified endowment contracts” and are given less favorable tax treatment than other life insurance contracts. Due to the flexibility of the policies as to premiums and benefits, the individual circumstances of each policy will determine whether or not it is classified as a modified endowment contract. The rules are too complex to be summarized here, but generally depend on the amount of premiums we receive during the first seven policy years. Certain changes in a policy after it is issued, such as reduction or increase in benefits or policy reinstatement, could also cause it to be classified as a modified endowment contract or increase the period during which the policy must be tested. A current or prospective policy owner should consult with a qualified adviser to determine whether or not a policy transaction will cause the policy to be classified as a modified endowment contract.

    Variable Accumulation DesignSM 60


    If a policy becomes a modified endowment contract, distributions that occur during the policy year will be taxed as distributions from a modified endowment contract. In addition, distributions from a policy within two years before it becomes a modified endowment contract will be taxed in this manner. This means that a distribution made from a policy that is not a modified endowment contract could later become taxable as a distribution from a modified endowment contract.

    Additionally, all modified endowment contracts that are issued by us (or our affiliates) to the same policy owner during any calendar year are treated as one modified endowment contract for purposes of determining the amount includible in the policy owner's income when a taxable distribution occurs.

    Once a policy is classified as a modified endowment contract, the following tax rules apply both prospectively and to any distributions made in the prior two years:

    • All distributions other than death benefits, including distributions upon surrender and withdrawals, from a modified endowment contract will be treated first as distributions of gain, if any, taxable as ordinary income.
      Amounts will be treated as tax-free recovery of the policy owner's investmentin the policy only after all gain has been distributed. The amount of gain inthe policy will be equal to the difference between the policy's valuedetermined without regard to any surrender charges, and the investment inthe policy;
    • Loan amounts taken from or secured by a policy classified as a modified endowment contract, and also assignments or pledges of such a policy (or agreements to assign or pledge such a policy), are treated first as distributions of gain, if any, taxable as ordinary income. Amounts will be treated as tax- free recovery of the policy owner’s investment in the policy only after all gain has been distributed; and
    • A 10% additional income tax penalty may be imposed on the distribution amount subject to income tax. This tax penalty generally does not apply to distributions (1) made on or after the date on which the taxpayer attains age 59½; (b) that are attributable to the taxpayer becoming disabled (as defined in the Internal Revenue Code); or (c) that are part of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the taxpayer or the joint lives (or joint life expectancies) of the taxpayer and his or her beneficiary. Consult a qualified tax adviser to determine whether or not you may be subject to this penalty tax.

    If we discover that your policy has inadvertently become a modified endowment contract, we will assume that you do not want it to be classified as a modified endowment contract and attempt to fix this by refunding any excess premium with related interest. The excess gross premium will be refunded on a last-in, first-out basis and may be taken from the investment options in which your policy value is allocated based on your premium allocation in effect when we received the premium to be refunded.

    Variable Accumulation DesignSM 61


    Policies That Are Not Modified Endowment Contracts

    Distributions other than death benefits from a policy that is not classified as a modified endowment contract are generally treated first as a recovery of the policy owner's investment in the policy. Only after the recovery of all investment in the policy is there taxable income. However, certain distributions made in connection with policy benefit reductions during the first 15 policy years may be treated in whole or in part as ordinary income subject to tax. Consult a qualified tax adviser to determine whether or not any distributions made in connection with a reduction in policy benefits will be subject to tax.

    Loan amounts from or secured by a policy that is not a modified endowment contract are generally not taxed as distributions. However, the tax consequences of such a loan that is outstanding after policy year ten are uncertain and a qualified tax adviser should be consulted about such loans. Finally, neither distributions from, nor loan amounts from or secured by, a policy that is not a modified endowment contract are subject to the 10% additional income tax penalty.

    Investment in the Policy

    Your investment in the policy is generally the total of your aggregate premiums. When a distribution is taken from the policy, your investment in the policy is reduced by the amount of the distribution that is tax free.

    Other Tax Matters

    Policy Loans

    In general, interest on a policy loan will not be deductible. A limited exception to this rule exists for certain interest paid in connection with certain “key person” insurance. You should consult a qualified tax adviser to determine whether you qualify under this exception.

    Moreover, the tax consequences associated with a preferred loan (a loan where the interest rate charged is less than or equal to the interest rate credited) available in the policy are uncertain. Before taking out a policy loan, you should consult a qualified tax adviser as to the tax consequences.

    If a loan from a policy is outstanding when the policy other than a modified endowment contract is surrendered or lapses, then the amount of the outstanding indebtedness will be added to the amount treated as a distribution from the policy and will be taxed accordingly.

    Variable Accumulation DesignSM 62


    Continuation of a Policy

    The tax consequences of continuing the policy after younger joint insured person reaches age 100 are unclear. For example, in certain situations it is possible that after the younger joint insured person reaches age 100, the IRS could treat you as being in constructive receipt of the policy value if the policy value becomes equal to the death benefit. If this happens, an amount equal to the excess of the policy value over the investment in the policy would be includible in your income at that time. Because we believe the policy will continue to constitute life insurance at that time and the IRS has not issued any guidance on this issue, we do not intend to tax report any earnings due to the possibility of constructive receipt in this circumstance. You should consult a qualified tax adviser if you intend to keep the policy in force after the younger joint insured person reaches age 100.

    Section 1035 Exchanges

    Internal Revenue Code Section 1035 provides, in certain circumstances, that no gain or loss will be recognized on the exchange of one life insurance policy solely for another life insurance policy, or an endowment, annuity or qualified long term care contract. Special rules and procedures apply to Section 1035 exchanges. These rules can be complex, and if you wish to take advantage of Section 1035, you should consult your qualified tax adviser.

    Taxation of Policy Splits

    The Policy Split Option Rider permits a policy to be split into two single life policies upon the occurrence of:

    • A divorce of the joint insured persons;
    • Certain changes in federal estate tax law; or
    • Dissolution of business conducted or owned by the joint insured persons.

    Using the Policy Split Option Rider could have adverse tax consequences. Before you exercise the policy split option, it is important that you consult with a qualified tax adviser regarding the possible tax consequences.

    Tax-exempt Policy Owners

    Special rules may apply to a policy that is owned by a tax-exempt entity. Tax-exempt entities should consult a qualified tax adviser regarding the consequences of purchasing and owning a policy. These consequences could include an effect on the tax-exempt status of the entity and the possibility of the unrelated business income tax.

    Variable Accumulation DesignSM 63


    Tax Law Changes

    Although the likelihood of legislative action or tax reform is uncertain, there is always the possibility that the tax treatment of the policy could be changed by legislation or other means. It is also possible that any change may be retroactive (that is, effective before the date of the change). You should consult a qualified tax adviser with respect to legislative developments and their effect on the policy.

    Policy Changes to Comply with the Law

    So that your policy continues to qualify as life insurance under the Internal Revenue Code, we reserve the right to refuse to accept all or part of your premium payments or to change your death benefit. We may refuse to allow you to make partial withdrawals that would cause your policy to fail to qualify as life insurance. We also may make changes to your policy or its riders or make distributions from your policy to the degree that we deem necessary to qualify your policy as life insurance for tax purposes.

    If we make any change of this type, it applies the same way to all affected policies.

    Any increase in your death benefit will cause an increase in your cost of insurance charges.

    Policy Availability and Qualified Plans

    The policy is not available for sale to and cannot be acquired with funds that are assets of (i) an employee benefit plan as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and that is subject to Title I of ERISA; (ii) a plan described in Section 4975(e)(1) of the Internal Revenue Code; or (iii) an entity whose underlying assets include plan assets by reason of the investment by an employee benefit plan or other plan in such entity within the meaning of 29 C.F.R. Section 2510.3 -101 or otherwise.

    Policy owners may use the policy in various other arrangements, including:

    • Non-qualified deferred compensation or salary continuance plans;
    • Split dollar insurance plans;
    • Executive bonus plans;
    • Retiree medical benefit plans; and
    • Other plans.

    The tax consequences of these plans may vary depending on the particular facts and circumstances of each arrangement. If you want to use your policy with any of these various arrangements, you should consult a qualified tax adviser regarding the tax issues of your particular arrangement.

    Variable Accumulation DesignSM 64


    Life Insurance Owned by Businesses

    In recent years, Congress has adopted new rules relating to life insurance owned by businesses. For example, in the case of a policy issued to a nonnatural taxpayer, or held for the benefit of such an entity, a portion of the taxpayer's otherwise deductible interest expenses may not be deductible as a result of ownership of a policy even if no loans are taken under the policy. (An exception to this rule is provided for certain life insurance contracts that cover the life of an individual who is a 20% owner, or an officer, director, or employee of a trade or business.) In addition, in certain instances, a portion of the death benefit payable under an employer-owned policy may be taxable. As another example, special rules apply if you are subject to the alternative minimum tax. Any business contemplating the purchase of a new policy or a change in an existing policy should consult a qualified tax adviser.

    Income Tax Withholding

    The IRS requires us to withhold income taxes from any portion of the amounts individuals receive in a taxable transaction. We generally do not withhold income taxes if you elect in writing not to have withholding apply. If the amount withheld for you is insufficient to cover income taxes, you may have to pay additional income taxes and possibly penalties later. We will also report to the IRS the amount of any taxable distributions.

    Policy Transfers

    The transfer of the policy or designation of a beneficiary may have federal, state and/or local transfer and inheritance tax consequences, including the imposition of gift, estate and generation-skipping transfer taxes. The individual situation of each policy owner or beneficiary will determine the extent, if any, to which federal, state and local transfer and inheritance taxes may be imposed and how ownership or receipt of policy proceeds will be treated for purposes of federal, state and local estate, inheritance, generation skipping and other taxes.

    You should consult qualified legal or tax advisers for complete information on federal, state, local and other tax considerations.

    Variable Accumulation DesignSM 65


    ADDITIONAL INFORMATION

    General Policy Provisions

    Your Policy

    The policy is a contract between you and us and is the combination of:

    • Your policy;
    • A copy of your original application and applications for benefit increases or decreases;
    • Your riders;
    • Your endorsements;
    • Your policy schedule pages; and
    • Your reinstatement applications.

    If you make a change to your coverage, we give you a copy of your changed application and new policy schedules. If you send your policy to us, we attach these items to your policy and return it to you. Otherwise, you need to attach them to your policy.

    Unless there is fraud, we consider all statements made in an application to be representations and not guarantees. We use no statement to deny a claim, unless it is in an application.

    A president or other officer of our company and our secretary or assistant secretary must sign all changes or amendments to your policy. No other person may change its terms or conditions.

    Age

    We issue your policy at each joint insured person's age (stated in your policy schedule) based on the age at the last birthday as of the policy date. On the policy date, both joint insured person's ages can generally be no more than age 85. Average age under the policy means the sum of each joint insured person's age divided by two and rounded to the higher age.

    We often use age to calculate rates, charges and values. We determine the joint insured persons' ages at a given time by adding the number of completed policy years to the ages calculated at issue and shown in the schedule.

    Ownership

    The original owner is the person named as the owner in the policy application. The owner can exercise all rights and receive benefits before the death of the surviving joint insured. These rights include the right to change the owner, beneficiaries or the method designated to pay death benefit proceeds.

    Variable Accumulation DesignSM 66


    As a matter of law, all rights of ownership are limited by the rights of any person who has been assigned rights under the policy and any irrevocable beneficiaries.

    You may name a new owner by giving us written notice. The effective date of the change to the new owner is the date the prior owner signs the notice. However, we will not be liable for any action we take before a change is recorded at our Customer Service Center. A change in ownership may cause the prior owner to recognize taxable income on gain under the policy.

    Beneficiaries

    You, as owner, name the beneficiaries when you apply for your policy. The primary beneficiaries who survive the surviving joint insured person receive the death benefit proceeds. Other surviving beneficiaries receive death benefit proceeds only if there is no surviving primary beneficiaries. If more than one beneficiary survives the surviving joint insured person, they share the death benefit proceeds equally, unless you specify otherwise. If none of your policy beneficiaries has survived the surviving joint insured person, we pay the death benefit proceeds to you or to your estate, as owner. If a beneficiary is a minor, the death benefit proceeds will be held in an interest bearing account until that beneficiary attains the age of majority.

    You may name new beneficiaries before the death of the surviving joint insured person. We pay death benefit proceeds to the beneficiaries whom you have most recently named according to our records. We do not make payments to multiple sets of beneficiaries. The designation of certain beneficiaries may have tax consequences. See Other Tax Matters, page 62.

    Collateral Assignment

    You may assign your policy by sending written notice to us. After we record the assignment, your rights as owner and the beneficiaries' rights (unless the beneficiaries were made irrevocable beneficiaries under an earlier assignment) are subject to the assignment. It is your responsibility to make sure the assignment is valid. The transfer or assignment of a policy may have tax consequences. See Other Tax Matters, page 62.

    Incontestability                 
     
    After your policy has been in force and both joint    In the policy 

    insured persons are alive for two years from your policy    form the 

    date and from the effective date of any new coverage    “policy date” is 

    segment, an increase in    any other    benefit    or    referred to as 

    reinstatement, we will not    question the    validity    of    the “Issue 

    statements in your applicable application.            Date.” 


    Variable Accumulation DesignSM 67


    Misstatements of Age or Gender

    Notwithstanding the Incontestability provision above, if any joint insured person's age or gender has been misstated, we adjust the death benefit to the amount that would have been purchased for the joint insured person's correct age and gender. We base the adjusted death benefit on the cost of insurance charges deducted from your policy value on the last monthly processing date before the surviving joint insured person's death, or as otherwise required by law.

    If unisex cost of insurance rates apply, we do not make any adjustments for a misstatement of gender.

    Suicide

    If any joint insured person commits suicide (while sane or insane) within two years of your policy date, unless otherwise required by law, we limit death benefit proceeds to:

    • The total premium we receive to the time of death; minus
    • Outstanding loan amount; minus
    • Partial withdrawals taken.

    We make a limited payment to the beneficiaries for a new coverage segment or other increase if any joint insured person commits suicide (while sane or insane) within two years of the effective date of a new coverage segment or within two years of an increase in any other benefit, unless otherwise required by law. The limited payment is equal to the cost of insurance charges that were deducted for the increase.

    Anti-Money Laundering

    In order to protect against the possible misuse of our products in money laundering or terrorist financing, we have adopted an anti-money laundering program satisfying the requirements of the USA PATRIOT Act. Among other things, this program requires us, our agents and customers to comply with certain procedures and standards that serve to assure that our customers' identities are properly verified and that premiums are not derived from improper sources.

    Under our anti-money laundering program, we may require policy owners, insured persons and/or beneficiaries to provide sufficient evidence of identification, and we reserve the right to verify any information provided to us by accessing information databases maintained internally or by outside firms.

    Variable Accumulation DesignSM 68


    We may also refuse to accept certain forms of premium payments or loan repayments (traveler's cheques, for example) or restrict the amount of certain forms of premium payments or loan repayments (money orders totaling more than $5,000, for example). In addition, we may require information as to why a particular form of payment was used (third party checks, for example) and the source of the funds of such payment in order to determine whether or not we will accept it. Use of an unacceptable form of payment may result in us returning the payment to you and your policy either entering the 61-day grace period or lapsing. See Lapse, page 56. See also Premium Payments Affect Your Coverage, page 23.

    Applicable laws designed to prevent terrorist financing and money laundering might, in certain circumstances, require us to block certain transactions until authorization is received from the appropriate regulator. We may also be required to provide additional information about you and your policy to government regulators.

    Our anti-money laundering program is subject to change without notice to take account of changes applicable in laws or regulations and our ongoing assessment of our exposure to illegal activity.

    Transaction Processing

    Generally, within seven days of when we receive all information required to process a payment, we pay:

    • Death benefit proceeds;
    • Surrender value;
    • Partial withdrawals; and
    • Loan proceeds.

    We may delay processing these transactions if:

    • The New York Stock Exchange is closed for trading;
    • Trading on the New York Stock Exchange is restricted by the SEC;
    • There is an emergency so that it is not reasonably possible to sell securities in the subaccounts or to determine the value of a subaccount's assets; and
    • A governmental body with jurisdiction over the variable account allows suspension by its order.

    SEC rules and regulations generally determine whether or not these conditions exist.

    We execute transfers among the subaccounts as of the valuation date of our receipt of your request at our Customer Service Center.

    We determine the death benefit as of the date of the surviving joint insured person's death. The death benefit proceeds are not affected by subsequent changes in the value of the subaccounts.

    Variable Accumulation DesignSM 69


    We may delay payment from our fixed account for up to six months, unless law requires otherwise, of surrender proceeds, withdrawal amounts or loan amounts. If we delay payment more than 30 days, we pay interest at our declared rate (or at a higher rate if required by law) from the date we receive your complete request.

    Unless you request otherwise, we generally pay death benefit proceeds, surrender value and partial withdrawals into an interest bearing account that may be accessed by you or the beneficiary, as applicable, through a checkbook feature. This interest bearing account is backed by our general account, and the checkbook feature may be used to access the payment at any time without penalty.

    Notification and Claims Procedures

    Except for certain authorized telephone requests, we must receive in writing any election, designation, change, assignment or request made by the owner.

    You must use a form acceptable to us. We are not liable for actions taken before we receive and record the written notice. We may require you to return your policy for policy changes or if you surrender it.

    If the surviving joint insured person dies while your policy is in force, please let us know as soon as possible. We will send you instructions on how to make a claim. As proof of the surviving joint insured person's death, we may require proof of the deceased surviving joint insured person's age and a certified copy of the death certificate.

    The beneficiaries and the deceased surviving joint insured person's next of kin may need to sign authorization forms. These forms allow us to get information such as medical records of doctors and hospitals used by the deceased surviving joint insured person.

    Telephone Privileges

    Telephone privileges are automatically provided to you and your agent/registered representative, unless you decline it on the application or contact our Customer Service Center. Telephone privileges allow you or your agent/registered representative to call our Customer Service Center to:

    • Make transfers;
    • Change premium allocations;
    • Change your dollar cost averaging and automatic rebalancing programs; and
    • Request a loan.

    Our Customer Service Center uses reasonable procedures to make sure that instructions received by telephone are genuine. These procedures may include:

    • Requiring some form of personal identification;
    • Providing written confirmation of any transactions; and
    • Tape recording telephone calls.

    Variable Accumulation DesignSM 70


    By accepting telephone privileges, you authorize us to record your telephone calls with us. If we use reasonable procedures to confirm instructions, we are not liable for losses from unauthorized or fraudulent instructions. We may discontinue or limit this privilege at any time. See Limits on Frequent or Disruptive Transfers, page 50.

    Telephone and facsimile privileges may not always be available. Telephone or fax systems, whether yours, your service provider's or your agent's, can experience outages or slowdowns for a variety of reasons. These outages or slowdowns may prevent or delay our receipt of your request. Although we have taken precautions to help our systems handle heavy use, we cannot promise complete reliability under all circumstances. If you are experiencing problems, you should make your transfer request by written request.

    Non-participation

    Your policy does not participate in the surplus earnings of ReliaStar Life Insurance Company.

    Advertising Practices and Sales Literature

    We may use advertisements and sales literature to promote this product, including:

    • Articles on variable life insurance and other information published in business or financial publications;
    • Indices or rankings of investment securities; and
    • Comparisons with other investment vehicles, including tax considerations.

    We may use information regarding the past performance of the subaccounts and funds. Past performance is not indicative of future performance of the subaccounts or funds and is not reflective of the actual investment experience of policy owners.

    We may feature certain subaccounts, the underlying funds and their managers, as well as describe asset levels and sales volumes. We may refer to past, current, or prospective economic trends and investment performance or other information we believe may be of interest to our customers.

    Settlement Options

    You may elect to take the surrender value in other than one lump-sum payment. Likewise, you may elect to have the beneficiaries receive the death benefit proceeds other than in one lump-sum payment, if you make this election before the death of the surviving joint insured. If you have not made this election, the beneficiaries may do so within 60 days after we receive proof of the surviving joint insured person's death.

    The investment performance of the subaccounts does not affect payments under these settlement options. Instead, interest accrues at a fixed rate based on the option you choose. Payment options are subject to our rules at the time you make your selection. Currently, a periodic payment must be at least $25 and the total proceeds must be at least $2,500.

    Variable Accumulation DesignSM
    71


    The following settlement options are available:

    • Option 1 – The proceeds are left with us to earn interest. Withdrawals and any changes are subject to our approval;
    • Option 2 – The proceeds and interest are paid in equal installments of a specified amount until the proceeds and interest are all paid;
    • Option 3 – The proceeds and interest are paid in equal installments for a specified period until the proceeds and interest are all paid;
    • Option 4 – The proceeds provide an annuity payment with a specified number of months. The payments are continued for the life of the primary payee. If the primary payee dies before the certain period is over, the remaining payments are paid to a contingent payee; and
    • Option 5 – The proceeds provide a life income for two payees. When one payee dies, the surviving payee receives two-thirds of the amount of the joint monthly payment for life.

    Interest on Settlement Options. We base the interest rate for proceeds applied under Options 1 and 2 on the interest rate we declare on money that we consider to be in the same classification based on the option, restrictions on withdrawal and other factors. The interest rate will never be less than an effective annual rate of 2.00% .

    In determining amounts we pay under Options 3, 4 and 5, we assume interest at an effective annual rate of 2.00% . Also, for Option 3 and periods certain under Option 4, we credit any excess interest we may declare on money that we consider to be in the same classification based on the option, restrictions on withdrawal and other factors.

    If none of these settlement options have been elected, your surrender value or the death benefit proceeds will be paid in one lump-sum payment.

    Unless you request otherwise, death benefit proceeds generally will be paid into an interest bearing account that is backed by our general account and can be accessed by the beneficiary through a checkbook feature. Interest earned on this account may be less than interest paid under other settlement options. See Transaction Processing, page 69.

    Reports

    Annual Statement. We will send you an annual statement once each year free of charge showing the amount of insurance coverage under your policy as well as your policy's death benefit, policy and surrender values, the amount of premiums you have paid, the amounts you have withdrawn, borrowed or transferred and the fees and charges we have imposed since the last statement.

    Additional statements are available upon request. We may make a charge not to exceed $50 for each additional annual statement you request. See Excess Annual Report Fee, page 26.

    Variable Accumulation DesignSM 72


    We send semi-annual reports with financial information on the funds, including a list of investment holdings of each fund.

    We send confirmation notices to you throughout the year for certain policy transactions such as transfers between investment options, partial withdrawals and loans. You are responsible for reviewing the confirmation notices to verify that the transactions are being made as requested.

    Illustrations. To help you better understand how your policy values will vary over time under different sets of assumptions, we will provide you with a personalized illustration projecting future results based on the age and risk classification of each of the joint insured persons and other factors such as the amount of insurance coverage, death benefit option, premiums and rates of return (within limits) you specify. We may make a charge not to exceed $50 for each illustration you request after the first in a policy year. See Excess Illustration Fee, page 26.

    Other Reports. We will mail to you at your last known address of record at least annually a report containing such information as may be required by any applicable law. To reduce expenses, only one copy of most financial reports and prospectuses, including reports and prospectuses for the funds, will be mailed to your household, even if you or other persons in your household have more than one policy issued by us or an affiliate. Call our Customer Service Center at 1-877-886-5050 if you need additional copies of financial reports, prospectuses, historical account information or annual or semi-annual reports or if you would like to receive one copy for each policy in all future mailings.

    Distribution of the Policy

    We sell the policy through licensed insurance agents who are registered representatives of affiliated and unaffiliated broker/dealers. All broker/dealers who sell the policy have entered into selling agreements with ING America Equities, Inc., our affiliate and the principal underwriter and distributor of the policy. ING America Equities, Inc. is organized under the laws of the State of Colorado, registered with the SEC as a broker/dealer under the Securities Exchange Act of 1934, and a member of the Financial Industry Regulatory Authority. Its principal office is located at 1290 Broadway, Denver, Colorado 80203-5699.

    ING America Equities, Inc. offers the securities under the policies on a continuous basis. For the years ended December 31, 2007, 2006 and 2005, the aggregate amount of underwriting commissions we paid to ING America Equities, Inc. was $25,369,919, $23,918,675 and $28,325,080, respectively.

    Variable Accumulation DesignSM 73


    ING America Equities, Inc. does not retain any commissions or other amounts paid to it by us for sales of the policy. Rather, it pays all the amounts received from us to the broker/dealers for selling the policy, and part of that payment goes to your agent/registered representative.

    The following is a list of broker-dealers affiliated with the company which have selling agreements with ING America Equities, Inc.:

    • Bancnorth Investment Group, Inc.
    • Financial Network Investment Corporation
    • Guaranty Brokerage Services, Inc.
    • ING Financial Advisers, LLC
    • ING Financial Markets LLC
    • ING Financial Partners, Inc.
    • Multi-Financial Securities Corporation
    • PrimeVest Financial Services, Inc.

    The amounts that we pay for the sale of the policy can generally be categorized as either commissions or other amounts. The commissions we pay can be further categorized as base commissions and supplemental or wholesaling commissions. However categorized, commissions paid will not exceed the total of the percentages shown below.

    Base commissions consist of a percentage of premium we receive for the policy up to the target premium amount, a percentage of premium we receive for the policy in excess of the target premium amount and, as a trail commission, a percentage of your average net policy value. The first year commission pays up to 90% of premium received up to target and 4.40% of premium in excess of target in the first year, up to 3% of total premium received in second through tenth years (renewal commission), and 0.10% of the average net policy value in the eleventh year and thereafter (trail commission).

    Supplemental or wholesaling commissions are paid based on a percentage of target premiums we receive for the policy and certain other designated insurance products sold during a calendar year. The percentages of such commissions that we may pay may increase as the aggregate amount of premiums received for all products issued by the company and/or its affiliates during the calendar year increases. The maximum percentage of supplemental or wholesaling commissions that we may pay is 43%.

    Variable Accumulation DesignSM 74


    Generally, the commissions paid on premiums for base coverage under the policy are greater than those paid on premiums for coverage under a term rider. Be aware of this and discuss with your agent/registered representative the right blend of base coverage and term rider coverage for you.

    In addition to the sales compensation described above, ING America Equities, Inc. may also pay broker-dealers additional compensation or reimbursement of expenses for their efforts in selling the policy to you and other customers. These amounts may include:

    • Marketing/distribution allowances which may be based on the percentages of premium received, the aggregate commissions paid and/or the aggregate assets held in relation to certain types of designated insurance products issued by the company and/or its affiliates during the year;
    • Loans or advances of commissions in anticipation of future receipt of premiums (a form of lending to agents/registered representatives). These loans may have advantageous terms such as reduction or elimination of the interest charged on the loan and/or forgiveness of the principal amount of the loan, which terms may be conditioned on fixed insurance product sales;
    • Education and training allowances to facilitate our attendance at certain educational and training meetings to provide information and training about our products. We also hold training programs from time to time at our own expense;
    • Sponsorship payments or reimbursements for broker/dealers to use in sales contests and/or meetings for their agents/registered representatives who sell our products. We do not hold contests based solely on sales of this product;
    • Certain overrides and other benefits that may include cash compensation based on the amount of earned commissions, agent/representative recruiting or other activities that promote the sale of policy; and
    • Additional cash or noncash compensation and reimbursements permissible under existing law. This may include, but is not limited to, cash incentives, merchandise, trips, occasional entertainment, meals and tickets to sporting events, client appreciation events, business and educational enhancement items, payment for travel expenses (including meals and lodging) to pre- approved training and education seminars, and payment for advertising and sales campaigns.

    We may pay commissions, dealer concessions, wholesaling fees, overrides, bonuses, other allowances and benefits and the costs of all other incentives or training programs from our resources, which include the fees and charges imposed under the policy.

    Variable Accumulation DesignSM 75


    The following is a list of the top 25 broker/dealers that, during 2007, received the most compensation, in the aggregate, from us in connection with the sale of registered variable life insurance policies issued by us, ranked by total dollars received:

    • ING Financial Partners Inc.
    • LPL Financial Corporation
    • National Planning Corporation
    • Securities America, Inc.
    • USA Financial Securities Ò Corporation
    • Centaurus Financial Inc.
    • First Allied Securities, Inc.
    • NRP Financial, Inc.
    • Proequities Inc.
    • Commonweath Financial Network Inc.
    • Financial Security Management, Inc.
    • AIG Financial Advisors Incorporated
    • Mutual Service Corporation
    • VSR Financial Services Inc.
    • Royal Alliance Associates Inc.
    • Next Financial Group, Inc.
    • RMIN Securities Inc.
    • PlanMember Securities Corporation
    • SIGMA Financial Corporation
    • Underwriters Equity Corporation
    • H. Beck Inc.
    • Securities Service Network Inc.
    • UBS Financial Services Inc.
    • Financial Network Investment Corporation
    • Wellstone Securities, LLC

    This is a general discussion of the types and levels of compensation paid by us for the sale of our variable life insurance policies. It is important for you to know that the payment of volume or sales-based compensation to a broker/dealer or registered representative may provide that registered representative a financial incentive to promote our policies over those of another company, and may also provide a financial incentive to promote the policy offered by this prospectus over one of our other policies.

    Legal Proceedings

    We are not aware of any pending legal proceedings that involve the variable account as a party.

    Variable Accumulation DesignSM 76


    The company is involved in threatened or pending lawsuits/arbitrations arising from the normal conduct of business. Due to the climate in insurance and business litigation/arbitration, suits against the company sometimes include claims for substantial compensatory, consequential or punitive damages and other types of relief. Moreover, certain claims are asserted as class actions, purporting to represent a group of similarly situated individuals. While it is not possible to forecast the outcome of such lawsuits/arbitrations, in light of existing insurance, reinsurance and established reserves, it is the opinion of management that the disposition of such lawsuits/arbitrations will not have a materially adverse effect on the company’s operations or financial position.

    ING America Equities, Inc., the principal underwriter and distributor of the policy, is a party to threatened or pending lawsuits/arbitration that generally arise from the normal conduct of business. Some of these suits may seek class action status and sometimes include claims for substantial compensatory, consequential or punitive damages and other types of relief. ING America Equities, Inc. is not involved in any legal proceeding that, in the opinion of management, is likely to have a material adverse affect on its ability to distribute the policy.

    Financial Statements

    Financial statements of the variable account and the company are contained in the Statement of Additional Information. To request a free Statement of Additional Information, please contact our Customer Service Center at the address or telephone number on the back of this prospectus.

    Variable Accumulation DesignSM 77


                    APPENDIX A                 
                Definition of Life Insurance Factors             
     
    Guideline Premium Test Factors                             
     
    Younger        Younger        Younger        Younger        Younger     
    Joint        Joint        Joint        Joint        Joint     
    Insured's        Insured's        Insured's        Insured's        Insured's     
    Attained        Attained        Attained        Attained        Attained     
    Age        Age        Age        Age        Age     
        Factor        Factor        Factor        Factor        Factor 
    0-40    2.50    49    1.91    58    1.38    67    1.18    91    1.04 
    41    2.43    50    1.85    59    1.34    68    1.17    92    1.03 
    42    2.36    51    1.78    60    1.30    69    1.16    93    1.02 
    43    2.29    52    1.71    61    1.28    70    1.15    94    1.01 
    44    2.22    53    1.64    62    1.26    71    1.13    95 +    1.00 
    45    2.15    54    1.57    63    1.24    72    1.11         
    46    2.09    55    1.50    64    1.22    73    1.09         
    47    2.03    56    1.46    65    1.20    74    1.07         
    48    1.97    57    1.42    66    1.19    75 – 90    1.05         

    A-1


    APPENDIX B

    Funds Available Through the Variable Account

    The following chart lists the funds that are currently available through the subaccounts of the variable account, along with each fund’s investment adviser/subadviser and investment objective. More detailed information about the funds can be found in the current prospectus and Statement of Additional Information for each fund.

    There is no assurance that the stated objectives and policies of any of the funds will be achieved. Shares of the funds will rise and fall in value and you could lose money by allocating policy value to the subaccounts that invest in the funds. Shares of the funds are not bank deposits and are not guaranteed, endorsed or insured by any financial institution, the Federal Deposit Insurance Corporation or any other government agency. Except as noted, all funds are diversified, as defined under the 1940 Act.

        Investment Adviser/     
    Fund Name    Subadviser    Investment Objective 



    American Funds – Growth Fund    Investment Adviser:    Seeks growth of capital by investing 
    (Class 2)    Capital Research and Management    primarily in U.S. common stocks. 
        Company     

    American Funds – Growth-Income    Investment Adviser:    Seeks capital growth and income over 
    Fund (Class 2)    Capital Research and Management    time by investing primarily in U.S. 
        Company    common stocks and other securities 
            that appear to offer potential for capital 
            appreciation and/or dividends. 

    American Funds – International    Investment Adviser:    Seeks growth of capital over time by 
    Fund (Class 2)    Capital Research and Management    investing primarily in common stocks 
        Company    of companies based outside the United 
            States. 

    Fidelity Ò VIP Contrafund Ò Portfolio    Investment Adviser:    Seeks long-term capital appreciation. 
    (Initial Class)    Fidelity Management & Research     
        Company     
        Subadvisers:     
        FMR Co., Inc.; Fidelity Research &     
        Analysis Company; Fidelity     
    Management & Research (U.K.) Inc.;
        Fidelity International Investment     
        Advisors; Fidelity International     
    Investment Advisors (U.K.) Limited;
        Fidelity Investments Japan Limited     

    Fidelity Ò VIP Equity-Income    Investment Adviser:    Seeks reasonable income. Also 
    Portfolio (Initial Class)    Fidelity Management & Research    considers the potential for capital 
        Company    appreciation. Seeks to achieve a yield 
        Subadvisers:    which exceeds the composite yield on 
        FMR Co., Inc.; Fidelity Research &    the securities comprising the Standard 
        Analysis Company; Fidelity    & Poor's 500SM Index (S&P 500® ). 
    Management & Research (U.K), Inc.;
        Fidelity International Investment     
        Advisors; Fidelity International     
    Investment Advisors (U.K.) Limited;
        Fidelity Investments Japan Limited     


    B-1


    Investment Adviser/
    Fund Name    Subadviser    Investment Objective 



    ING AllianceBernstein Mid Cap    Investment Adviser:    Seeks long-term growth of capital. 
    Growth Portfolio (Class I)    Directed Services LLC     
        Subadviser:     
        AllianceBernstein, L.P.     

    ING BlackRock Large Cap    Investment Adviser:    Seeks long-term growth of capital. 
    Growth Portfolio (Class I)    Directed Services LLC     
        Subadviser:     
    BlackRock Investment Management,
        LLC     

    ING Evergreen Health Sciences    Investment Adviser:    A non-diversified portfolio that seeks 
    Portfolio (Class I)    Directed Services LLC    long-term capital growth. 
        Subadviser:     
    Evergreen Investment Management
        Company, LLC     

    ING Evergreen Omega Portfolio    Investment Adviser:    Seeks long-term capital growth. 
    (Class I)    Directed Services LLC     
        Subadviser:     
    Evergreen Investment Management
        Company, LLC     

    ING FMRSM Diversified Mid Cap    Investment Adviser:    Seeks long-term growth of capital. 
    Portfolio (Class I)    Directed Services LLC     
        Subadviser:     
    Fidelity Management & Research Co.

    ING Focus 5 Portfolio (Class I)    Investment Adviser:    Seeks total return through capital 
        Directed Services LLC    appreciation and dividend income. 
        Subadviser:     
        ING Investment Management Co.     

    ING Franklin Templeton Founding    Investment Adviser:    Seeks capital appreciation and 
    Strategy Portfolio (Class I)    Directed Services LLC    secondarily, income. 



    ING Global Real Estate Portfolio    Investment Adviser:    A non-diversified portfolio that seeks 
    (Class S)    ING Investments, LLC    high total return, consisting of capital 
        Subadviser:    appreciation and current income. 
    ING Clarion Real Estate Securities L.P.

    ING Global Resources Portfolio    Investment Adviser:    A non-diversified portfolio that seeks 
    (Class I)    Directed Services LLC    long-term capital appreciation. 
        Subadviser:     
        ING Investment Management Co.     

    ING JPMorgan Emerging    Investment Adviser:    Seeks capital appreciation. 
    Markets Equity Portfolio    Directed Services LLC     
    (Class I)    Subadviser:     
    J.P. Morgan Investment Management
        Inc.     

    ING JPMorgan Small Cap Core    Investment Adviser:    Seeks capital growth over the long 
    Equity Portfolio (Class I)    Directed Services LLC    term. 
        Subadviser:     
    J.P. Morgan Investment Management
        Inc.     


    B-2


        Investment Adviser/     
    Fund Name    Subadviser    Investment Objective 



    ING JPMorgan Value    Investment Adviser:    Seeks long-term capital appreciation. 
    Opportunities Portfolio (Class I)    Directed Services LLC     
        Subadviser:     
    J. P. Morgan Investment Management
        Inc.     

    ING Julius Baer Foreign    Investment Adviser:    Seeks long-term growth of capital. 
    Portfolio (Class I)    Directed Services LLC     
        Subadviser:     
        Julius Baer Investment Management,     
        LLC     

    ING Legg Mason Value Portfolio    Investment Adviser:    A non-diversified portfolio that seeks 
    (Class I)    Directed Services LLC    long-term growth of capital. 
        Subadviser:     
    Legg Mason Capital Management, Inc.

    ING LifeStyle Aggressive    Investment Adviser:    Seeks growth of capital. 
    Growth Portfolio (Class I)    ING Investments, LLC     
        Asset Allocation Consultants:     
        Ibbotson Associates and ING     
        Investment Management Co.     

    ING LifeStyle Growth Portfolio    Investment Adviser:    Seeks growth of capital and some 
    (Class I)    ING Investments, LLC    current income. 
        Asset Allocation Consultants:     
        Ibbotson Associates and ING     
        Investment Management Co.     

    ING LifeStyle Moderate Growth    Investment Adviser:    Seeks growth of capital and a low to 
    Portfolio (Class I)    ING Investments, LLC    moderate level of current income. 
        Asset Allocation Consultants:     
        Ibbotson Associates and ING     
        Investment Management Co.     

    ING LifeStyle Moderate Portfolio    Investment Adviser:    Seeks growth of capital and current 
    (Class I)    ING Investments, LLC    income. 
        Asset Allocation Consultants:     
        Ibbotson Associates and ING     
        Investment Management Co.     

    ING Limited Maturity Bond    Investment Adviser:    Seeks highest current income consistent 
    Portfolio (Class S)    Directed Services LLC    with low risk to principal and liquidity 
        Subadviser:    and secondarily, seeks to enhance its 
        ING Investment Management Co.    total return through capital appreciation 
            when market factors, such as falling 
            interest rates and rising bond prices, 
            indicate that capital appreciation may 
            be available without significant risk to 
            principal. 

    ING Liquid Assets Portfolio    Investment Adviser:    Seeks high level of current income 
    (Class I)    Directed Services LLC    consistent with the preservation of 
        Subadviser:    capital and liquidity. 
        ING Investment Management Co.     


    B-3


        Investment Adviser/     
    Fund Name    Subadviser    Investment Objective 



    ING Marsico Growth Portfolio    Investment Adviser:    Seeks capital appreciation. 
    (Class I)    Directed Services LLC     
        Subadviser:     
        Marsico Capital Management, LLC     

    ING Marsico International    Investment Adviser:    Seeks long-term growth of capital. 
    Opportunities Portfolio (Class I)    Directed Services LLC     
        Subadviser:     
        Marsico Capital Management, LLC     

    ING MFS Total Return Portfolio    Investment Adviser:    Seeks above-average income 
    (Class I)    Directed Services LLC    (compared to a portfolio entirely 
        Subadviser:    invested in equity securities) consistent 
        Massachusetts Financial Services    with the prudent employment of 
        Company    capital. Secondarily seeks reasonable 
            opportunity for growth of capital and 
            income. 

    ING MFS Utilities Portfolio (Class S)    Investment Adviser:    Seeks total return. 
        Directed Services LLC     
        Subadviser:     
        Massachusetts Financial Services     
        Company     

    ING Oppenheimer Main Street    Investment Adviser:    Seeks long-term growth of capital and 
    Portfolio ® (Class I)    Directed Services LLC    future income. 
        Subadviser:     
        OppenheimerFunds, Inc.     

    ING PIMCO Core Bond Portfolio    Investment Adviser:    Seeks maximum total return, consistent 
    (Class I)    Directed Services LLC    with preservation of capital and prudent 
        Subadviser:    investment management. 
        Pacific Investment Management     
        Company LLC     

    ING Pioneer Fund Portfolio    Investment Adviser:    Seeks reasonable income and capital 
    (Class I)    Directed Services LLC    growth. 
        Subadviser:     
    Pioneer Investment Management, Inc.

    ING Pioneer Mid Cap Value    Investment Adviser:    Seeks capital appreciation. 
    Portfolio (Class I)    Directed Services LLC     
        Subadviser:     
    Pioneer Investment Management, Inc.

    ING Stock Index Portfolio    Investment Adviser:    Seeks total return. 
    (Class I)    Directed Services LLC     
        Subadviser:     
        ING Investment Management Co.     

    ING T. Rowe Price Capital    Investment Adviser:    Seeks, over the long-term, a high total 
    Appreciation Portfolio (Class I)    Directed Services LLC    investment return, consistent with the 
        Subadviser:    preservation of capital and prudent 
        T. Rowe Price Associates, Inc.    investment risk. 


    ING T. Rowe Price Equity    Investment Adviser:    Seeks substantial dividend income as 
    Income Portfolio (Class I)    Directed Services LLC    well as long-term growth of capital. 
        Subadviser:     
        T. Rowe Price Associates, Inc.     


    B-4


        Investment Adviser/     
    Fund Name    Subadviser    Investment Objective 



    ING Van Kampen Capital    Investment Adviser:    Seeks long-term capital appreciation. 
    Growth Portfolio (Class I)    Directed Services LLC     
        Subadviser:     
        Morgan Stanley Investment     
    Management, Inc. (d/b/a Van Kampen)

    ING Van Kampen Growth and    Investment Adviser:    Seeks long-term growth of capital and 
    Income Portfolio (Class S)    Directed Services LLC    income. 
        Subadviser:     
        Morgan Stanley Investment     
    Management, Inc. (d/b/a Van Kampen)

    ING VP Index Plus International    Investment Adviser:    Seeks to outperform the total return 
    Equity Portfolio (Class S)    ING Investments, LLC    performance of the Morgan Stanley 
        Subadviser:    Capital International Europe 
        ING Investment Management    Australasia and Far East® Index 
        Advisors, B. V.    (“MSCI EAFE® Index”), while 
            maintaining a market level of risk. 

    ING Wells Fargo Small Cap    Investment Adviser:    Seeks long-term capital appreciation. 
    Disciplined Portfolio (Class I)    Directed Services LLC     
        Subadviser:     
        Wells Capital Management, Inc.     

    ING Baron Small Cap Growth    Investment Adviser:    Seeks capital appreciation. 
    Portfolio (Initial Class)    Directed Services LLC     
        Subadviser:     
        BAMCO, Inc.     

    ING Columbia Small Cap Value    Investment Adviser:    Seeks long-term growth of capital. 
    II Portfolio (Initial Class)    Directed Services LLC     
        Subadviser:     
    Columbia Management Advisors, LLC

    ING JP Morgan Mid Cap Value    Investment Adviser:    Seeks growth from capital appreciation. 
    Portfolio (Initial Class)    Directed Services LLC     
        Subadviser:     
    J.P. Morgan Investment Management
        Inc.     

    ING Neuberger Berman    Investment Adviser:    Seeks capital growth. 
    Partners Portfolio (Initial Class)    Directed Services LLC     
        Subadviser:     
        Neuberger Berman Management Inc.     

    ING Oppenheimer Global    Investment Adviser:    Seeks capital appreciation. 
    Portfolio (Initial Class)    Directed Services LLC     
        Subadviser:     
        OppenheimerFunds, Inc.     

    ING Oppenheimer Strategic    Investment Adviser:    Seeks a high level of current income 
    Income Portfolio (Service Class)    Directed Services LLC    principally derived from interest on 
        Subadviser:    debt securities. 
        OppenheimerFunds, Inc.     

    ING Pioneer High Yield    Investment Adviser:    Seeks to maximize total return through 
    Portfolio (Initial Class)    Directed Services LLC    income and capital appreciation. 
        Subadviser:     
    Pioneer Investment Management, Inc.


    B-5


        Investment Adviser/     
    Fund Name    Subadviser    Investment Objective 



    ING T. Rowe Price Diversified Mid    Investment Adviser:    Seeks long-term capital appreciation. 
    Cap Growth Portfolio (Initial Class)    Directed Services LLC     
        Subadviser:     
        T. Rowe Price Associates, Inc.     

    ING UBS U.S. Large Cap Equity    Investment Adviser:    Seeks long-term growth of capital and 
    Portfolio (Initial Class)    Directed Services LLC    future income. 
        Subadviser:     
        UBS Global Asset Management     
        (Americas) Inc.     

    ING Van Kampen Comstock    Investment Adviser:    Seeks capital growth and income. 
    Portfolio (Initial Class)    Directed Services LLC     
        Subadviser:     
        Morgan Stanley Investment     
    Management, Inc. (d/b/a Van Kampen)

    ING Van Kampen Equity and    Investment Adviser:    Seeks total return, consisting of long- 
    Income Portfolio (Initial Class)    Directed Services LLC    term capital appreciation and current 
        Subadviser:    income. 
        Morgan Stanley Investment     
    Management, Inc. (d/b/a Van Kampen)

    ING VP Balanced Portfolio, Inc    Investment Adviser:    Seeks to maximize investment return, 
    (Class I)    ING Investments, LLC    consistent with reasonable safety of 
        Subadviser:    principal, by investing in a diversified 
        ING Investment Management Co.    portfolio of one or more of the 
            following asset classes: stocks, bonds 
            and cash equivalents, based on the 
            judgment of the portfolio’s 
            management, of which of those sectors 
            or mix thereof offers the best 
            investment prospects. 

    ING VP Intermediate Bond    Investment Adviser:    Seeks to maximize total return 
    Portfolio (Class I)    ING Investments, LLC    consistent with reasonable risk, through 
        Subadviser:    investment in a diversified portfolio 
        ING Investment Management Co.    consisting primarily of debt securities. 


    ING Lehman Brothers U.S.    Investment Adviser:    Seeks investment results (before fees 
    Aggregate Bond Index Ò Portfolio    ING Investments, LLC    and expenses) that correspond to the 
    (Class I)    Subadviser:    total return of the Lehman Brothers 
        Lehman Brothers Asset Management    U.S. Aggregate Bond Index Ò . 
        LLC     

    ING RussellTM Small Cap Index    Investment Adviser:    Seeks investment results (before fees 
    Portfolio (Class I)    ING Investments, LLC    and expenses) that correspond to the 
        Subadviser:    total return of the Russell 2000® Index. 
        ING Investment Management Co.     

    ING VP Index Plus LargeCap    Investment Adviser:    Seeks to outperform the total return 
    Portfolio (Class I)    ING Investments, LLC    performance of the Standard & Poor’s 
        Subadviser:    500 Composite Stock Price Index (S&P 
        ING Investment Management Co.    500 Index), while maintaining a market 
            level of risk. 


    B-6


        Investment Adviser/     
    Fund Name    Subadviser    Investment Objective 



    ING VP Index Plus MidCap    Investment Adviser:    Seeks to outperform the total return 
    Portfolio (Class I)    ING Investments, LLC    performance of the Standard & Poor’s 
        Subadviser:    MidCap 400 Index (S&P MidCap 400 
        ING Investment Management Co.    Index) while maintaining a market 
            level of risk. 

    ING VP Index Plus SmallCap    Investment Adviser:    Seeks to outperform the total return 
    Portfolio (Class I)    ING Investments, LLC    performance of the Standard & Poor’s 
        Subadviser:    SmallCap 600 Index (S&P SmallCap 
        ING Investment Management Co.    600 Index) while maintaining a market 
            level of risk. 

    ING VP SmallCap Opportunities    Investment Adviser:    Seeks long-term capital appreciation. 
    Portfolio (Class I)    ING Investments, LLC     
        Subadviser:     
        ING Investment Management Co.     

    Neuberger Berman AMT    Investment Adviser:    Seeks long-term growth of capital by 
    Socially Responsive Portfolio®    Neuberger Berman Management Inc.    investing primarily in securities of 
    (Class I)    Subadviser:    companies that meet the fund’s 
        Neuberger Berman, LLC    financial criteria and social policy.  



    B-7


    APPENDIX C

    INFORMATION REGARDING CLOSED SUBACCOUNTS

    The subaccounts that invest in the following funds have been closed to new investment:

    • Fidelity® VIP Investment Grade Bond Portfolio
    • ING BlackRock Large Cap Value Portfolio
    • ING International Growth Opportunities Portfolio
    • ING Lord Abbett Affiliated Portfolio
    • ING Van Kampen Real Estate Portfolio
    • ING Opportunistic Large Cap Value Portfolio 1
    • ING American Century Large Company Value Portfolio
    • ING American Century Small-Mid Cap Value Portfolio
    • ING Legg Mason Partners Aggressive Growth Portfolio
    • ING PIMCO Total Return Portfolio
    • ING VP Strategic Allocation Growth Portfolio
    • ING VP Strategic Allocation Moderate Portfolio
    • ING VP Growth and Income Portfolio
    • ING VP High Yield Bond Portfolio
    • ING VP International Value Portfolio
    • ING VP MidCap Opportunities Portfolio 2
    • ING VP Real Estate Portfolio

    Policy owners who have policy value allocated to one or more of the subaccounts that correspond to these funds may leave their policy value in those subaccounts, but future allocations and transfers into those subaccounts are prohibited. If your most recent premium allocation instructions includes a subaccount that corresponds to one of these funds, premium received that would have been allocated to a subaccount corresponding to one of these funds may be automatically allocated among the other available subaccounts according to your most recent premium allocation instructions. If your most recent allocation instructions do not include any available funds, you must provide us with alternative allocation instructions or the premium payment will be returned to you. You may give us alternative allocation instructions by contacting our:

      ING Customer Service Center
    P.O. Box 5011
    Minot, North Dakota 58702-5011
    1-877-886-5050

    Your failure to provide us with alternative allocation instructions before we return and our return of your premium payment(s) may result in your policy entering the 61 day grace period and/or your policy lapsing without value. See Lapse, page 56, for more information about how to keep your policy from lapsing. See also Reinstatement, page 57, for more information about how to put your policy back in force if it has lapsed.

    1      Prior to April 28 2008, this fund was known as the ING VP Value Opportunity Portfolio.
     
    2      Effective April 28, 2008, the ING Mid Cap Growth Portfolio (formerly known as the ING FMRSM Mid Cap Growth Portfolio) merged with and into the ING VP MidCap Opportunities Portfolio. Your investment in the subaccount that invested in the ING Mid Cap Growth Portfolio automatically became an investment in the ING VP MidCap Opportunities Portfolio subaccount with an equal total net asset value.
     

    C-1


    MORE INFORMATION IS AVAILABLE

    If you would like more information about us, the variable account or the policy, the following documents are available free upon request:

    • Statement of Additional Information (“SAI”) – The SAI contains more specific information about the variable account and the policy, as well as the financial statements of the variable account and the company. The SAI is incorporated by reference into (made legally part of) this prospectus. The following is the Table of Contents for the SAI:
        Page 
    General Information and History    2 
    Performance Reporting and Advertising    2 
    Experts    4 
    Financial Statements    4 
    Financial Statements of the Select*Life Variable Account    1 
    Statutory Basis Financial Statements of the ReliaStar Life Insurance Company    1 

    • A personalized illustration of policy benefits – A personalized illustration can help you understand how the policy works, given the policy's fees and charges along with the investment options, features and benefits and optional benefits you select. A personalized illustration can also help you compare the policy's death benefits, policy value and surrender value with other life insurance policies based on the same or similar assumptions. We reserve the right to assess a fee of up to $50 for each personalized illustration you request after the first each policy year. See Excess Illustration Fee, page 26.

    To request a free SAI or personalized illustration of policy benefits or to make other inquiries about the policy, please contact us at our:

      ING Customer Service Center
    P.O. Box 5011
    Minot, North Dakota 58702-5011
    1-877-886-5050
    www.ingservicecenter.com

    Additional information about us, the variable account or the policy (including the SAI) can be reviewed and copied from the SEC's Internet website (http://www.sec.gov) or at the SEC's Public Reference Branch in Washington, DC. Copies of this additional information may also be obtained, upon payment of a duplicating fee, by writing the SEC's Public Reference Branch at 100 F Street, NE, Room 1580, Washington, DC 20549. More information about operation of the SEC's Public Reference Branch can be obtained by calling 202-551-8090. When looking for information regarding the policy offered through this prospectus, you may find it useful to use the number assigned to the registration statement under the 1933 Act. This number is 333-47094.

    1940 Act File No. 811-04208
     1933 Act file No. 333-47094


    PART B

    INFORMATION REQUIRED IN A STATEMENT OF ADDITIONAL INFORMATION


    SELECT*LIFE VARIABLE ACCOUNT OF

    RELIASTAR LIFE INSURANCE COMPANY

    Statement of Additional Information dated April 28, 2008

    VARIABLE ACCUMULATION DESIGNSM
    Survivorship Variable Universal Life Insurance Policy

    This Statement of Additional Information is not a prospectus and should be read in conjunction with the current ING Variable Accumulation DesignSM prospectus dated April 28, 2008. The policy offered in connection with the prospectus is a flexible premium survivorship variable universal life insurance policy funded through the Select*Life Variable Account.

    A free prospectus is available upon request by contacting the ReliaStar Life Insurance Company's customer service center at P.O. Box 5011, 2000 21st Avenue NW, Minot, North Dakota 58703, by calling 1-877-886-5050 or by accessing the SEC's website at http://www.sec.gov.

    Read the prospectus before you invest. Unless otherwise indicated, terms used in this Statement of Additional Information shall have the same meaning as in the prospectus.

                                                                                                   TABLE OF CONTENTS     
        Page 
    General Information and History    2 
    Performance Reporting and Advertising    2 
    Experts    4 
    Financial Statements    4 
    Financial Statements of Select*Life Variable Account    1 
    Statutory Basis Financial Statements of ReliaStar Life Insurance Company    1 


    GENERAL INFORMATION AND HISTORY

    ReliaStar Life Insurance Company (the “company,” “we,” “us,” “our”) issues the policy described in the prospectus and is responsible for providing each policy's insurance benefits. We are a stock life insurance company organized in 1885 and incorporated under the laws of the State of Minnesota and an indirect, wholly owned subsidiary of ING Groep N.V. (“ING”), a global financial institution active in the fields of insurance, banking and asset management. ING is headquartered in Amsterdam, The Netherlands. We are engaged in the business of issuing insurance policies. Our home office is located at 20 Washington Avenue South, Minneapolis, Minnesota 55401.

    We established the Select*Life Variable Account (the “variable account”) on October 11, 1984, under the laws of the State of Minnesota for the purpose of funding variable life insurance policies issued by us. The variable account is registered with the Securities and Exchange Commission (“SEC”) as a unit investment trust under the Investment Company Act of 1940, as amended. Premium payments may be allocated to one or more of the available subaccounts of the variable account. Each subaccount invests in shares of a corresponding fund at net asset value. We may make additions to, deletions from or substitutions of available funds as permitted by law and subject to the conditions of the policy.

    Other than the policy owner fees and charges described in the prospectus, all expenses incurred in the operations of the variable account are borne by the company. We do, however, receive compensation for certain recordkeeping, administration or other services from the funds or affiliates of the funds available through the policies. See Fund Fees and Expenses in the prospectus.

    The company maintains custody of the assets of the variable account. As custodian, the company holds cash balances for the variable account pending investment in the funds or distribution. The funds in whose shares the assets of the subaccounts of the variable account are invested each have custodians, as discussed in the respective fund prospectuses.

    Effective January 1, 2004, WSSI merged with Locust Street Securities, Inc. and changed its name to ING Financial Partners, Inc.

    PERFORMANCE REPORTING AND ADVERTISING

    Information regarding the past, or historical, performance of the subaccounts of the variable account and the funds available for investment through the subaccounts of the variable account may appear in advertisements, sales literature or reports to policy owners or prospective purchasers. SUCH PERFORMANCE INFORMATION FOR THE SUBACCOUNTS WILL REFLECT THE DEDUCTION OF ALL FUND FEES AND CHARGES, INCLUDING INVESTMENT MANAGEMENT FEES, DISTRIBUTION (12B-1) FEES AND OTHER EXPENSES BUT WILL NOT REFLECT DEDUCTIONS FOR ANY POLICY FEES AND CHARGES. IF THE POLICY'S PREMIUM EXPENSE, COST OF INSURANCE, ADMINISTRATIVE AND MORTALITY AND EXPENSE RISK CHARGES AND THE OTHER TRANSACTION, PERIODIC OR OPTIONAL BENEFITS FEES AND CHARGES WERE DEDUCTED, THE PERFORMANCE SHOWN WOULD BE SIGNIFICANTLY LOWER.

    With respect to performance reporting it is important to remember that past performance does not guarantee future results. Current performance may be higher or lower than the performance shown and actual investment returns and principal values will fluctuate so that shares and/or units, at redemption, may be worth more or less than their original cost.

    2


    Performance history of the subaccounts of the variable account and the corresponding funds is measured by comparing the value at the beginning of the period to the value at the end of the period. Performance is usually calculated for periods of one month, three months, year-to-date, one year, three years, five years, ten years (if the fund has been in existence for these periods) and since the inception date of the fund (if the fund has been in existence for less than ten years). We may provide performance information showing average annual total returns for periods prior to the date a subaccount commenced operation. We will calculate such performance information based on the assumption that the subaccounts were in existence for the same periods as those indicated for the funds, with the level of charges at the variable account level that were in effect at the inception of the subaccounts. Performance information will be specific to the class of fund shares offered through the policy, however, for periods prior to the date a class of fund shares commenced operations, performance information may be based on a different class of shares of the same fund. In this case, performance for the periods prior to the date a class of fund shares commenced operations will be adjusted by the fund fees and expenses associated with the class of fund shares offered through the policy.

    We may compare performance of the subaccounts and/or the funds as reported from time to time in advertisements and sales literature to other variable life insurance issuers in general; to the performance of particular types of variable life insurance policies investing in mutual funds; or to investment series of mutual funds with investment objectives similar to each of the subaccounts, whose performance is reported by Lipper Analytical Services, Inc. (“Lipper”) and Morningstar. Inc. (“Morningstar”) or reported by other series, companies, individuals or other industry or financial publications of general interest, such as Forbes, Money, The Wall Street Journal, Business Week, Barron's, Kiplinger's and Fortune. Lipper and Morningstar are independent services that monitor and rank the performances of variable life insurance issuers in each of the major categories of investment objectives on an industry-wide basis.

    Lipper's and Morningstar's rankings include variable annuity issuers as well as variable life insurance issuers. The performance analysis prepared by Lipper and Morningstar ranks such issuers on the basis of total return, assuming reinvestment of distributions, but does not take sales charges, redemption fees or certain expense deductions at the separate account level into consideration. We may also compare the performance of each subaccount in advertising and sales literature to the Standard & Poor's Index of 500 common stocks and the Dow Jones Industrials, which are widely used measures of stock market performance. We may also compare the performance of each subaccount to other widely recognized indices. Unmanaged indices may assume the reinvestment of dividends, but typically do not reflect any “deduction” for the expense of operating or managing an investment portfolio.

    To help you better understand how your policy's death benefits, policy value and surrender value will vary over time under different sets of assumptions, we encourage you to obtain a personalized illustration. Personalized illustrations will assume deductions for fund expenses and policy and variable account charges. We will base these illustrations on the age and risk classification of the insured person and other factors such as the amount of insurance coverage, death benefit option, premiums and rates of return (within limits) you specify. These personalized illustrations will be based on either a hypothetical investment return of the funds of 0% and other percentages not to exceed 12% or on the actual historical experience of the funds as if the subaccounts had been in existence and a policy issued for the same periods as those indicated for the funds. Subject to regulatory approval, personalized illustrations may be based upon a weighted average of fund expenses rather than an arithmetic average. A personalized illustration is available upon request by contacting our customer service center at P.O. Box 5011, Minot, ND 58702-5011 or by calling 1-877-886-5050.

    3


    EXPERTS

    The statements of assets and liabilities of Select*Life Variable Account as of December 31, 2007, and the related statements of operations and changes in net assets for the periods disclosed in the financial statements, and the statutory basis financial statements of ReliaStar Life Insurance Company as of December 31, 2007 and 2006, and for each of the three years in the period ended December 31, 2007, included in this Statement of Additional Information, have been audited by Ernst & Young LLP, independent registered public accounting firm, as set forth in their reports thereon appearing elsewhere herein, and are included in reliance upon such reports given on the authority of such firm as experts in accounting and auditing.

    FINANCIAL STATEMENTS

    The financial statements of the variable account reflect the operations of the variable account as of and for the year ended December 31, 2007, and have been audited by Ernst & Young LLP, independent registered public accounting firm.

    The statutory basis financial statements of the Company as of December 31, 2007 and 2006, and for each of the three years in the period ended December 31, 2007, have been audited by Ernst & Young LLP, independent registered public accounting firm. The financial statements of the Company should be distinguished from the financial statements of the variable account and should be considered only as bearing upon the ability of the Company to meet its obligations under the policies. They should not be considered as bearing on the investment performance of the assets held in the variable account. The statutory basis financial statements of the Company as of December 31, 2007 and 2006, and for each of the three years in the period ended December 31, 2007, have been prepared on the basis of statutory accounting practices prescribed or permitted by the State of Minnesota Division of Insurance.

    The primary business address of Ernst & Young LLP is Suite 1000, 55 Ivan Allen Jr. Boulevard, Atlanta, GA 30308.

    4


    FINANCIAL STATEMENTS
    ReliaStar Life Insurance Company
    Select*Life Variable Account
    Year ended December 31, 2007
    with Report of Independent Registered Public Accounting Firm


    This page intentionally left blank.


    RELIASTAR LIFE INSURANCE COMPANY
    SELECT*LIFE VARIABLE ACCOUNT
    Financial Statements
    Year ended December 31, 2007

    Contents
     
    Report of Independent Registered Public Accounting Firm    1 
     
    Audited Financial Statements     
     
    Statements of Assets and Liabilities    3 
    Statements of Operations    19 
    Statements of Changes in Net Assets    36 
    Notes to Financial Statements    57 


    This page intentionally left blank.


    Report of Independent Registered Public Accounting Firm

    The Board of Directors and Participants
    ReliaStar Life Insurance Company

    We have audited the accompanying statements of assets and liabilities of the Divisions constituting ReliaStar Life Insurance Company Select*Life Variable Account (the “Account”) as of December 31, 2007, and the related statements of operations and changes in net assets for the periods disclosed in the financial statements. These financial statements are the responsibility of the Account’s management. Our responsibility is to express an opinion on these financial statements based on our audits. The Account is comprised of the following Divisions:

    American Funds Insurance Series:
    American Funds Insurance Series® Growth Fund - Class 2
    American Funds Insurance Series® Growth-Income Fund - Class 2
    American Funds Insurance Series® International Fund - Class 2
    Fidelity® Variable Insurance Products:
    Fidelity® VIP Equity-Income Portfolio - Initial Class
    Fidelity® Variable Insurance Products II:
    Fidelity® VIP Contrafund® Portfolio - Initial Class
    Fidelity® VIP Index 500 Portfolio - Initial Class
    Fidelity® Variable Insurance Products V:
    Fidelity® VIP Investment Grade Bond Portfolio - Initial Class
    ING Investors Trust:
    ING AllianceBernstein Mid Cap Growth Portfolio - Institutional
    Class
    ING BlackRock Large Cap Growth Portfolio – Institutional Class
    ING BlackRock Large Cap Value Portfolio - Institutional Class
    ING Evergreen Health Sciences Portfolio - Institutional Class
    ING Evergreen Omega Portfolio - Institutional Class
    ING FMRSM Diversified Mid Cap Portfolio - Institutional Class
    ING FMRSM Large Cap Growth Portfolio - Institutional Class
    ING FMRSM Mid Cap Growth Portfolio - Institutional Class
    ING Global Resources Portfolio - Institutional Class
    ING International Growth Opportunities Portfolio - Service Class
    ING JPMorgan Emerging Markets Equity Portfolio - Institutional
    Class
    ING JPMorgan Small Cap Core Equity Portfolio - Institutional
    Class
    ING JPMorgan Value Opportunities Portfolio - Institutional Class
    ING Julius Baer Foreign Portfolio - Institutional Class
    ING Legg Mason Value Portfolio - Institutional Class
    ING LifeStyle Aggressive Growth Portfolio - Institutional Class
    ING LifeStyle Growth Portfolio - Institutional Class
    ING LifeStyle Moderate Growth Portfolio - Institutional Class
    ING LifeStyle Moderate Portfolio - Institutional Class
    ING Limited Maturity Bond Portfolio - Service Class
    ING Liquid Assets Portfolio - Institutional Class
    ING Lord Abbett Affiliated Portfolio - Institutional Class
    ING MarketPro Portfolio - Institutional Class
    ING MarketStyle Growth Portfolio - Institutional Class
    ING MarketStyle Moderate Growth Portfolio - Institutional Class
    ING MarketStyle Moderate Portfolio - Institutional Class
    ING Marsico Growth Portfolio - Institutional Class
    ING Marsico International Opportunities Portfolio - Institutional
    Class
    ING MFS Total Return Portfolio - Institutional Class

    ING Investors Trust (continued):
    ING MFS Utilities Portfolio - Institutional Class
    ING MFS Utilities Portfolio - Service Class
    ING Oppenheimer Main Street Portfolio® - Institutional Class
    ING Pioneer Fund Portfolio - Institutional Class
    ING Pioneer Mid Cap Value Portfolio - Institutional Class
    ING Stock Index Portfolio - Institutional Class
    ING T. Rowe Price Capital Appreciation Portfolio - Institutional
    Class
    ING T. Rowe Price Equity Income Portfolio - Institutional Class
    ING UBS U.S. Allocation Portfolio - Service Class
    ING Van Kampen Capital Growth Portfolio - Institutional Class
    ING Van Kampen Growth and Income Portfolio - Service Class
    ING Van Kampen Real Estate Portfolio - Institutional Class
    ING VP Index Plus International Equity Portfolio - Service Class
    ING Wells Fargo Small Cap Disciplined Portfolio - Institutional
    Class
    ING Partners, Inc.:
    ING American Century Large Company Value Portfolio - Initial
    Class
    ING American Century Select Portfolio - Initial Class
    ING American Century Small-Mid Cap Value Portfolio - Initial
    Class
    ING Baron Small Cap Growth Portfolio - Initial Class
    ING Columbia Small Cap Value II Portfolio - Initial Class
    ING Fundamental Research Portfolio - Initial Class
    ING JPMorgan Mid Cap Value Portfolio - Initial Class
    ING Legg Mason Partners Aggressive Growth Portfolio - Initial
    Class
    ING Lord Abbett U.S. Government Securities Portfolio - Initial
    Class
    ING Neuberger Berman Partners Portfolio - Initial Class
    ING Neuberger Berman Regency Portfolio - Initial Class
    ING Oppenheimer Global Portfolio - Initial Class
    ING Oppenheimer Strategic Income Portfolio - Service Class
    ING PIMCO Total Return Portfolio - Initial Class
    ING T. Rowe Price Diversified Mid Cap Growth Portfolio -
    Initial Class
    ING UBS U.S. Large Cap Equity Portfolio - Initial Class
    ING Van Kampen Comstock Portfolio - Initial Class
    ING Van Kampen Equity and Income Portfolio - Initial Class
    ING Strategic Allocation Portfolios, Inc.:
    ING VP Strategic Allocation Conservative Portfolio - Class I
    ING VP Strategic Allocation Growth Portfolio - Class I
    ING VP Strategic Allocation Moderate Portfolio - Class I


    ING Variable Funds:
    ING VP Growth and Income Portfolio - Class I
    ING Variable Portfolios, Inc.:
    ING VP Index Plus LargeCap Portfolio - Class I
    ING VP Index Plus MidCap Portfolio - Class I
    ING VP Index Plus SmallCap Portfolio - Class I
    ING VP Value Opportunity Portfolio - Class I
    ING Variable Products Trust:
    ING VP High Yield Bond Portfolio - Class I
    ING VP International Value Portfolio - Class I
    ING VP MidCap Opportunities Portfolio - Class I
    ING VP Real Estate Portfolio - Class S
    ING VP SmallCap Opportunities Portfolio - Class I

    ING VP Balanced Portfolio, Inc.:
    ING VP Balanced Portfolio - Class I
    ING VP Intermediate Bond Portfolio:
    ING VP Intermediate Bond Portfolio - Class I
    Neuberger Berman Advisers Management Trust:
    Neuberger Berman AMT Socially Responsive Portfolio® -
    Class I

    We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Account’s internal control over financial reporting. Our audits include consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Account’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2007, by correspondence with the transfer agents. We believe that our audits provide a reasonable basis for our opinion.

    In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of each of the respective Divisions constituting ReliaStar Life Insurance Company Select*Life Variable Account at December 31, 2007, the results of their operations and changes in their net assets for the periods disclosed in the financial statements, in conformity with U.S. generally accepted accounting principles.

    /s/ Ernst & Young LLP

    Atlanta, Georgia
    March 21, 2008


    RELIASTAR LIFE INSURANCE COMPANY
    SELECT*LIFE VARIABLE ACCOUNT
    Statements of Assets and Liabilities
    December 31, 2007
    (Dollars in thousands)

            American    American         
        American    Funds    Funds         
        Funds    Insurance    Insurance    Fidelity® VIP    Fidelity® VIP 
        Insurance    Series®    Series®    Equity-Income    Contrafund® 
        Series® Growth Growth-Income    International    Portfolio -    Portfolio - 
        Fund - Class 2    Fund - Class 2    Fund - Class 2    Initial Class    Initial Class 





    Assets                     
    Investments in mutual funds                     
         at fair value    $ 68,014    $ 44,497    $ 56,099    $ 117,512    $ 145,859 
    Total assets    68,014    44,497    56,099    117,512    145,859 
    Net assets    $ 68,014    $ 44,497    $ 56,099    $ 117,512    $ 145,859 





     
    Total number of mutual fund shares    1,019,395    1,052,928    2,269,395    4,914,773    5,227,927 





     
    Cost of mutual fund shares    $ 58,522    $ 40,605    $ 42,589    $ 113,424    $ 122,943 






    The accompanying notes are an integral part of these financial statements.

                                                                3


    RELIASTAR LIFE INSURANCE COMPANY
    SELECT*LIFE VARIABLE ACCOUNT
    Statements of Assets and Liabilities
    December 31, 2007
    (Dollars in thousands)

                    ING BlackRock     
            Fidelity® VIP    ING    Large Cap    ING BlackRock 
        Fidelity® VIP    Investment    AllianceBernstein    Growth    Large Cap 
        Index 500    Grade Bond    Mid Cap Growth    Portfolio -    Value Portfolio 
        Portfolio -    Portfolio -    Portfolio -    Institutional    - Institutional 
        Initial Class    Initial Class    Institutional Class    Class    Class 





    Assets                     
    Investments in mutual funds                     
         at fair value    $ 4,457    $ 14,574    $ 1,738    $ 1,252    $ 10,227 
    Total assets    4,457    14,574    1,738    1,252    10,227 
    Net assets    $ 4,457    $ 14,574    $ 1,738    $ 1,252    $ 10,227 





     
    Total number of mutual fund shares    27,173    1,142,165    98,587    101,132    726,372 





     
    Cost of mutual fund shares    $ 3,625    $ 14,509    $ 1,747    $ 1,268    $ 8,577 






    The accompanying notes are an integral part of these financial statements.

    4


    RELIASTAR LIFE INSURANCE COMPANY
    SELECT*LIFE VARIABLE ACCOUNT
    Statements of Assets and Liabilities
    December 31, 2007
    (Dollars in thousands)

                    ING FMRSM    ING FMRSM 
        ING Evergreen    ING Evergreen    ING FMRSM    Large Cap    Mid Cap 
        Health Sciences    Omega    Diversified Mid    Growth    Growth 
        Portfolio -    Portfolio -    Cap Portfolio -    Portfolio -    Portfolio - 
        Institutional    Institutional    Institutional    Institutional    Institutional 
        Class    Class    Class    Class    Class 





    Assets                     
    Investments in mutual funds                     
         at fair value    $ 2,056    $ 110,080    $ 4,576    $ 138,605    $ 1,894 
    Total assets    2,056    110,080    4,576    138,605    1,894 
    Net assets    $ 2,056    $ 110,080    $ 4,576    $ 138,605    $ 1,894 





     
    Total number of mutual fund shares    161,257    8,546,562    298,501    12,287,674    147,378 





     
    Cost of mutual fund shares    $ 2,012    $ 91,696    $ 4,309    $ 132,890    $ 1,651 






    The accompanying notes are an integral part of these financial statements.

    5


    RELIASTAR LIFE INSURANCE COMPANY
    SELECT*LIFE VARIABLE ACCOUNT
    Statements of Assets and Liabilities
    December 31, 2007
    (Dollars in thousands)

            ING      ING JPMorgan        ING JPMorgan 
        ING Global    International    Emerging    ING JPMorgan    Value 
        Resources    Growth    Markets Equity Small Cap Core    Opportunities  
        Portfolio -    Opportunities    Portfolio -    Equity Portfolio    Portfolio - 
        Institutional    Portfolio -    Institutional    - Institutional    Institutional 
        Class    Service Class    Class    Class    Class 





    Assets                         
    Investments in mutual funds                         
         at fair value    $ 15,123    $ 727    $ 8,798    $ 34,220    $ 40,546 
    Total assets    15,123        727    8,798    34,220    40,546 
    Net assets    15,123    $ 727    $ 8,798    $ 34,220    $ 40,546 





     
    Total number of mutual fund shares    573,729    70,129    327,801    2,561,363    3,447,760 





     
    Cost of mutual fund shares    $ 13,004    $ 719    $ 7,341    $ 32,523    $ 37,421 






    The accompanying notes are an integral part of these financial statements.

    6


    RELIASTAR LIFE INSURANCE COMPANY
    SELECT*LIFE VARIABLE ACCOUNT
    Statements of Assets and Liabilities
    December 31, 2007
    (Dollars in thousands)

                ING LifeStyle        ING LifeStyle 
        ING Julius    ING Legg    Aggressive    ING LifeStyle    Moderate 
        Baer Foreign    Mason Value    Growth    Growth    Growth 
        Portfolio -    Portfolio -    Portfolio -    Portfolio -    Portfolio - 
        Institutional    Institutional    Institutional    Institutional    Institutional 
        Class    Class    Class    Class    Class 





    Assets                     
    Investments in mutual funds                     
         at fair value    $ 16,838    $ 4,323    $ 6,292    $ 16,128    $ 6,725 
    Total assets    16,838    4,323    6,292    16,128    6,725 
    Net assets    $ 16,838    $ 4,323    $ 6,292    $ 16,128    $ 6,725 





     
    Total number of mutual fund shares    911,138    410,167    449,134    1,188,494    518,075 





     
    Cost of mutual fund shares    $ 14,943    $ 4,501    $ 6,412    $ 15,814    $ 6,588 






    The accompanying notes are an integral part of these financial statements.

    7


    RELIASTAR LIFE INSURANCE COMPANY
    SELECT*LIFE VARIABLE ACCOUNT
    Statements of Assets and Liabilities
    December 31, 2007
    (Dollars in thousands)

                    ING Lord     
        ING LifeStyle            Abbett    ING Marsico 
        Moderate    ING Limited    ING Liquid    Affiliated    Growth 
        Portfolio -    Maturity Bond    Assets Portfolio    Portfolio -    Portfolio - 
        Institutional    Portfolio -    - Institutional    Institutional    Institutional 
        Class    Service Class    Class    Class    Class 





    Assets                     
    Investments in mutual funds                     
         at fair value    $ 1,628    $ 15,362    $ 54,009    $ 192    $ 6,478 
    Total assets    1,628    15,362    54,009    192    6,478 
    Net assets    $ 1,628    $ 15,362    $ 54,009    $ 192    $ 6,478 





     
    Total number of mutual fund shares    129,221    1,381,449    54,009,129    15,160    338,432 





     
    Cost of mutual fund shares    $ 1,608    $ 14,893    $ 54,009    $ 190    $ 5,714 






    The accompanying notes are an integral part of these financial statements.

    8


    RELIASTAR LIFE INSURANCE COMPANY
    SELECT*LIFE VARIABLE ACCOUNT
    Statements of Assets and Liabilities
    December 31, 2007
    (Dollars in thousands)
     
     
     
        ING Marsico 
    International 
    Opportunities 
    Portfolio - 
    Institutional 
    Class 
                     
       
      ING MFS 
      Utilities 
      Portfolio - 
    Service Class 
      ING   
    Oppenheimer 
    Main Street 
    Portfolio® - 
    Institutional 
    Class   
          ING MFS Total 
    Return 
    Portfolio - 
    Institutional 
    Class 
        ING MFS 
      Utilities 
      Portfolio - 
      Institutional 
      Class 
       
               
               
               
               





    Assets                                 
    Investments in mutual funds                                 
         at fair value    $ 37,760    $ 3,639    $ 4,740    $ 2,927    $ 638 
    Total assets    37,760    3,639        4,740        2,927        638 
    Net assets    $ 37,760    $ 3,639    $ 4,740    $ 2,927    $ 638 





     
    Total number of mutual fund shares    2,206,889    199,290        264,531        164,080    31,142 





     
    Cost of mutual fund shares    $ 27,374    $ 3,629    $ 3,913    $ 2,491    $ 619 






    The accompanying notes are an integral part of these financial statements.

    9


    RELIASTAR LIFE INSURANCE COMPANY
    SELECT*LIFE VARIABLE ACCOUNT
    Statements of Assets and Liabilities
    December 31, 2007
    (Dollars in thousands)
     
     
     
                        ING T. Rowe 
    Price Capital 
    Appreciation 
      Portfolio - 
    Institutional 
      Class 
      ING T. Rowe 
    Price Equity 
    Income 
    Portfolio - 
    Institutional 
    Class 
            ING Pioneer 
    Mid Cap Value 
    Portfolio - 
    Institutional 
    Class 
         
      ING Stock 
    Index Portfolio 
    - Institutional 
      Class 
       
        ING Pioneer 
    Fund Portfolio - 
    Institutional 
    Class 
           
               
               
               





    Assets                             
    Investments in mutual funds                             
         at fair value    $ 282    $ 7,484    $ 95,860    $ 50,611    $ 10,905 
    Total assets    282    7,484        95,860        50,611    10,905 
    Net assets    $ 282    $ 7,484    $ 95,860    $ 50,611    $ 10,905 





     
    Total number of mutual fund shares    21,444    605,011        7,408,068        2,045,711    714,596 





     
    Cost of mutual fund shares    $ 279    $ 7,101    $ 79,068    $ 49,715    $ 10,459 






    The accompanying notes are an integral part of these financial statements.

    10


    RELIASTAR LIFE INSURANCE COMPANY
    SELECT*LIFE VARIABLE ACCOUNT
    Statements of Assets and Liabilities
    December 31, 2007
    (Dollars in thousands)
     
     
     
         
     
    ING UBS U.S. 
    Allocation 
    Portfolio - 
    Service Class 
      ING Van 
    Kampen 
    Capital Growth 
    Portfolio - 
    Institutional 
    Class 
        ING Van 
      Kampen 
    Growth and 
      Income 
    Portfolio - 
    Service Class 
               
                ING Van 
    Kampen Real 
    Estate Portfolio 
    - Institutional 
      Class 
      ING VP Index 
    Plus 
    International 
    Equity Portfolio 
    - Service Class 
               
               
               
               





    Assets                             
    Investments in mutual funds                             
         at fair value    $ 66    $ 19,618    $ 14,677    $ 4,906    $ 10,565 
    Total assets    66    19,618        14,677        4,906    10,565 
    Net assets    $ 66    $ 19,618    $ 14,677    $ 4,906    $ 10,565 





     
    Total number of mutual fund shares    6,500    1,398,261        546,843        171,840    748,214 





     
    Cost of mutual fund shares    $ 70    $ 14,123    $ 15,360    $ 5,331    $ 9,308 






    The accompanying notes are an integral part of these financial statements.

    11


    RELIASTAR LIFE INSURANCE COMPANY
    SELECT*LIFE VARIABLE ACCOUNT
    Statements of Assets and Liabilities
    December 31, 2007
    (Dollars in thousands)
     
     
     
        ING Wells                     
        Fargo Small    ING American    ING American    ING Baron    ING Columbia 
        Cap Disciplined    Century Large    Century Small-    Small Cap    Small Cap 
        Portfolio -    Company Value    Mid Cap Value    Growth    Value II 
        Institutional    Portfolio -      Portfolio -    Portfolio -    Portfolio - 
        Class    Initial Class      Initial Class    Initial Class    Initial Class 





    Assets                         
    Investments in mutual funds                         
         at fair value    $ 9,073    $ 317    $ 589    $ 6,493    $ 4,608 
    Total assets    9,073    317        589    6,493    4,608 
    Net assets    $ 9,073    $ 317    $ 589    $ 6,493    $ 4,608 





     
    Total number of mutual fund shares    824,030    21,981        51,382    329,100    439,724 





     
    Cost of mutual fund shares    $ 9,265    $ 318    $ 631    $ 6,196    $ 4,636 






    The accompanying notes are an integral part of these financial statements.

    12


    RELIASTAR LIFE INSURANCE COMPANY
    SELECT*LIFE VARIABLE ACCOUNT
    Statements of Assets and Liabilities
    December 31, 2007
    (Dollars in thousands)
     
     
     
         
     
    ING JPMorgan 
    Mid Cap Value 
    Portfolio - 
    Initial Class 
      ING Legg 
    Mason Partners 
    Aggressive 
    Growth 
    Portfolio - 
    Initial Class 
        ING Lord 
      Abbett U.S. 
      Government 
      Securities 
      Portfolio - 
      Initial Class 
           
              ING Neuberger 
    Berman 
    Partners 
    Portfolio - 
    Initial Class 
      ING Neuberger 
    Berman 
    Regency 
    Portfolio - 
    Initial Class 
               
               
               
               





    Assets                         
    Investments in mutual funds                         
         at fair value    $ 10,192    $ 251    $ 121    $ 618    $ 434 
    Total assets    10,192    251        121    618    434 
    Net assets    $ 10,192    $ 251    $ 121    $ 618    $ 434 





     
    Total number of mutual fund shares    646,305    5,196        11,978    54,655    40,131 





     
    Cost of mutual fund shares    $ 9,939    $ 232    $ 122    $ 649    $ 469 






    The accompanying notes are an integral part of these financial statements.

    13


    RELIASTAR LIFE INSURANCE COMPANY
    SELECT*LIFE VARIABLE ACCOUNT
    Statements of Assets and Liabilities
    December 31, 2007
    (Dollars in thousands)
     
     
     
            ING            ING T. Rowe     
            Oppenheimer            Price     
        ING    Strategic    ING PIMCO    Diversified Mid    ING UBS U.S. 
        Oppenheimer    Income    Total Return    Cap Growth    Large Cap 
        Global Portfolio    Portfolio -    Portfolio -    Portfolio -    Equity Portfolio 
        - Initial Class    Service Class    Initial Class    Initial Class    - Initial Class 





    Assets                         
    Investments in mutual funds                         
         at fair value    $ 57,740    $ 5,079    $ 8,866    $ 72,067    $ 7,067 
    Total assets    57,740    5,079        8,866    72,067    7,067 
    Net assets    $ 57,740    $ 5,079    $ 8,866    $ 72,067    $ 7,067 





     
    Total number of mutual fund shares    3,422,642    453,113        752,023    7,570,100    666,116 





     
    Cost of mutual fund shares    $ 44,070    $ 4,909    $ 8,352    $ 62,136    $ 6,108 






    The accompanying notes are an integral part of these financial statements.

    14


    RELIASTAR LIFE INSURANCE COMPANY
    SELECT*LIFE VARIABLE ACCOUNT
    Statements of Assets and Liabilities
    December 31, 2007
    (Dollars in thousands)
     
     
         
    ING Van 
    Kampen 
    Comstock 
    Portfolio - 
    Initial Class 
       
    ING Van 
    Kampen Equity 
    and Income 
    Portfolio - 
    Initial Class 
        ING VP 
      Strategic 
      Allocation 
    Conservative 
    Portfolio - Class 
      I 
        ING VP 
      Strategic 
      Allocation 
      Growth 
    Portfolio - Class 
      I 
      ING VP 
    Strategic 
    Allocation 
    Moderate 
    Portfolio - Class 
    I 
               
               
               
               
               





    Assets                             
    Investments in mutual funds                             
         at fair value    $ 9,558    $ 2,019    $ 64    $ 1,596    $ 820 
    Total assets    9,558    2,019        64        1,596    820 
    Net assets    $ 9,558    $ 2,019    $ 64    $ 1,596    $ 820 





     
    Total number of mutual fund shares    761,578    53,464        4,734        96,326    54,066 





     
    Cost of mutual fund shares    $ 9,522    $ 2,033    $ 62    $ 1,522    $ 786 






    The accompanying notes are an integral part of these financial statements.

    15


    RELIASTAR LIFE INSURANCE COMPANY
    SELECT*LIFE VARIABLE ACCOUNT
    Statements of Assets and Liabilities
    December 31, 2007
    (Dollars in thousands)
     
     
     
        ING VP                         
        Growth and    ING VP Index    ING VP Index    ING VP Index    ING VP Value 
        Income    Plus LargeCap    Plus MidCap    Plus SmallCap    Opportunity 
        Portfolio - Class    Portfolio - Class    Portfolio - Class    Portfolio - Class    Portfolio - Class 
        I    I      I      I    I 





    Assets                             
    Investments in mutual funds                             
         at fair value    $ 1,972    $ 2,752    $ 15,483    $ 13,106    $ 1,753 
    Total assets    1,972    2,752        15,483        13,106    1,753 
    Net assets    $ 1,972    $ 2,752    $ 15,483    $ 13,106    $ 1,753 





     
    Total number of mutual fund shares    79,659    151,775        844,670        862,827    109,198 





     
    Cost of mutual fund shares    $ 1,970    $ 2,684    $ 15,803    $ 15,017    $ 1,527 






    The accompanying notes are an integral part of these financial statements.

    16


    RELIASTAR LIFE INSURANCE COMPANY
    SELECT*LIFE VARIABLE ACCOUNT
    Statements of Assets and Liabilities
    December 31, 2007
    (Dollars in thousands)
     
     
     
         
    ING VP High 
    Yield Bond 
    Portfolio - Class 
    I 
       
    ING VP 
    International 
    Value Portfolio 
    - Class I 
        ING VP 
      MidCap 
    Opportunities 
    Portfolio - Class 
      I 
         
       
    ING VP Real 
    Estate Portfolio 
      - Class S 
      ING VP 
    SmallCap 
    Opportunities 
    Portfolio - Class 
    I 
               
               
               
               





    Assets                             
    Investments in mutual funds                             
         at fair value    $ 22,227    $ 27,156    $ 17,470    $ 4,036    $ 22,091 
    Total assets    22,227    27,156        17,470        4,036    22,091 
    Net assets    $ 22,227    $ 27,156    $ 17,470    $ 4,036    $ 22,091 





     
    Total number of mutual fund shares    7,588,070    1,907,045        1,702,734        264,292    1,005,048 





     
    Cost of mutual fund shares    $ 22,908    $ 23,352    $ 11,119    $ 5,008    $ 15,372 






    The accompanying notes are an integral part of these financial statements.

    17


                                                                   RELIASTAR LIFE INSURANCE COMPANY 
                                                                           SELECT*LIFE VARIABLE ACCOUNT 
        Statements of Assets and Liabilities 
        December 31, 2007     
        (Dollars in thousands) 
     
     
         
     
    ING VP 
    Balanced 
    Portfolio - Class 
    I 
       
     
    ING VP 
    Intermediate 
    Bond Portfolio - 
    Class I 
        Neuberger 
    Berman AMT 
      Socially 
      Responsive 
      Portfolio® - 
      Class I 
           
           
           
           
           



    Assets                 
    Investments in mutual funds                 
         at fair value    $ 11,739    $ 7,393    $ 2,167 
    Total assets    11,739    7,393        2,167 
    Net assets    $ 11,739    $ 7,393    $ 2,167 



     
    Total number of mutual fund shares    812,418    558,821        120,970 



     
    Cost of mutual fund shares    $ 11,258    $ 7,388    $ 1,804 




    The accompanying notes are an integral part of these financial statements.

    18


    RELIASTAR LIFE INSURANCE COMPANY
    SELECT*LIFE VARIABLE ACCOUNT
    Statements of Operations
    For the year ended December 31, 2007
    (Dollars in thousands)

            American    American         
        American    Funds    Funds         
        Funds    Insurance