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persons of the same gender, insurance age and risk class whose policies have been in force for the same length of time. We currently insure lives as either standard risk class or a risk class involving a higher mortality risk. We determine your risk class based on your health and the medical information you provide. Lives in the standard risk classes will have a lower cost of insurance for otherwise identical policies, than lives in the higher mortality risk classes. Nonsmokers will generally incur a lower cost of insurance than will similarly situated smokers.

Subject to our underwriting requirements with respect to issue age and minimum face amount, policy owners who qualified for our most selective risk classifications at the time of policy issue and who have a Body Mass Index within a specified range at the end of policy years 5, 10, 15, and 20, and in some states, at issue, may be eligible for discounted cost of insurance rates beginning at the end of policy years 5, 10, 15, and 20. Under this program, policy owners may request an improvement in risk classification for the face amount at the end of the 5th policy year, and also at the end of policy years 10, 15, and 20 if we have granted all prior improvement requests related to the policy. We will require evidence that the insured meets our underwriting requirements for an improved risk classification. If approved and the improved risk classification results in lower cost of insurance rates, these rates will be effective on the monthly calculation day following our approval of your request. We may cease to offer this program for new policies at any time.

Acquisition Expense. We assess a charge on the issue premium, and deduct a pro rata portion each month over the first ten policy years. We will deduct any unpaid Acquisition Expense from the policy value if you surrender the policy before this expense is fully paid. The charge consists of three components:

  • 1)

    A Sales Charge of 1.0% of the premium paid designed to compensate Phoenix for the distribution expenses we incur in issuing the policy, such as, sales commissions, sales materials and advertising costs.

  • 2)

    A Tax Charge of up to 4%, depending on your state of residence, of the premium, designed to pay the premium taxes assessed by various states, counties and municipalities.

  • 3)

    An Administration Charge of 5.5% of the premium paid designed to compensate Phoenix for the underwriting and start-up expenses associated with issuing a policy.

Cost of Optional Insurance Benefits. The Phoenix Edge® policy has one rider available. This option is available only if approved in your state.

  • Minimum Face Amount Rider. If you elect this rider, you will designate a “Minimum Face Amount” which cannot be greater than the target face amount at issue. The minimum face amount will become the minimum death benefit we will pay after the first policy month. This rider may increase the cost of insurance charge we deduct since it may increase the amount we have at risk for the policy.

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Conditional Charges We impose some other charges only if certain events occur:

Partial Surrender Fee. If you withdraw part of your policy’s value, we will deduct an additional charge of 2% of the withdrawal amount from your policy value, up to a maximum of $25. It is intended to recover the actual costs of processing the partial surrender requests and will be deducted from each investment option and Guaranteed Interest Account in the same proportion as the withdrawal is allocated.

Additional Premium Tax Charge. If we permit any additional premium payments, we will assess a charge of up to 4%, depending on your state of residence, of each payment. We deduct this charge monthly over the ten years following the premium payment. Any unpaid charge will be deducted from the policy value if you surrender the policy. The premium tax charge in intended to pay all premium taxes imposed by these taxing authorities and we do not expect to derive a profit from this charge.

Transfer Charge. Currently we do not charge for transfers between investment options, however we reserve the right to charge up to $10 for each transfer in excess of two each calendar year. This charge if we were to impose a transfer charge would be intended to recoup the cost of administering the transfer.

Other Tax Charges. Currently no charge is made to the Separate Account for state or federal income taxes that may be attributable to the premiums or the Separate Account. We may, however, make such a charge in the future for these or any other taxes attributable to premiums or the Separate Account.

The Policy

Contract Rights

Owner The owner is the person who applies for the policy and who will generally make the choices that determine how the policy operates while it is in force. When we use the terms “you” or “your”, in this prospectus, we are referring to the owner.

Insured The insured is the person on whose life the policy is issued. You name this person in the application for the policy. We will not issue a policy if person to be insured is 75 or older. We will require that you provide evidence that the people to be insured are, in fact, insurable. This will usually require a medical examination.

Beneficiary The beneficiary is the person you name in the application to receive any death benefit. You may name different classes of beneficiaries, such as primary and secondary. These classes will set the order of payment.

Unless an irrevocable beneficiary has been named, you can change the beneficiary at any time before the insured dies by

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