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If the Certificate is issued under a Qualified Plan, it may continue for the time period permitted by the Internal Revenue Code, which may be longer that the five-year continuation period specified above.

Standard Death Benefit

The standard death benefit for a Covered Person is the greater of

z

the current "net purchase payment death benefit", less any premium taxes, and

z

the current Certificate Value, less any premium taxes.

Net Purchase Payment Death Benefit. The net purchase payment death benefit is:

z

the initial purchase payment, plus

z

any additional purchase payments made prior to the death benefit calculation date, less

z

any partial withdrawals (including any applicable surrender charges) made prior to the death benefit calculation date.

Optional Death Benefits

Subject to state availability, we offer two different death benefit options, which may increase the standard death benefit amount. You may elect either Option 1 or Option 2, or elect neither. You may not elect either Option 1 or Option 2 if all Covered Persons have attained age 85. You may only elect Option 1 or Option 2 at the time you purchase your Certificate. Your election of either Option 1 or Option 2 is irrevocable, and we will deduct a charge while the Certificate remains in effect until the Income Date. You should carefully consider whether electing an Optional Death Benefit is right for you.

Death Benefit Option 1 High Anniversary Value. When you purchase the Certificate, you may elect in writing Death Benefit Option 1: High Anniversary Value. Under this option, after the first Certificate Year, upon the death of a Covered Person who has not attained age 85 on the Certificate Date, the death benefit will be the greater of:

z

the "High Anniversary Value", determined as described below; and

z

the standard death benefit.

The standard death benefit applies upon the death of any Covered Person who has attained age 85 as of the Certificate Date or dies within the first Certificate Year.

We calculate the High Anniversary Value as follows. On the first Certificate Anniversary, the High Anniversary Value for each applicable Covered Person equals the Certificate Value. Thereafter, we recalculate the High Anniversary Value on:

  • (a)

    each day there is a purchase payment or withdrawal; and

  • (b)

    each Certificate Anniversary, until such Covered Person attains age 86.

When we receive a purchase payment or pay a withdrawal, we adjust the High Anniversary Value by:

z

adding any additional purchase payments and Premium Credits made that day; and

z

subtracting the following amount for each withdrawal made that day:

  • (i)

    the amount of the withdrawal (including any applicable surrender charge),

  • (ii)

    divided by the Certificate Value immediately before the withdrawal, and

27

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