EX-99.1 3 g73555ex99-1.txt SAMPLE HYPOTHETICAL ILLUSTRATIONS Exhibit 99.1 Exhibit 1. A. (12) Sample Hypothetical Illustrations HYPOTHETICAL ILLUSTRATIONS The following illustrations show how certain values under a sample Policy would change with different rates of fictional investment performance over an extended period of time. In particular, the illustrations show how the death benefit, cash value, and net surrender value under a Policy issued to an insured of a given age, would change over time if the premiums indicated were paid and the return on the assets in the subaccounts were a uniform gross annual rate (before any expenses) of 0%, 6% or 12%. The tables illustrate Policy values that would result based on assumptions that you pay the premiums indicated, you do not change your specified amount, and you do not take any cash withdrawals or Policy loans. Actual returns will fluctuate over time and likely will be both positive and negative. The actual values under the Policy could be significantly different from those shown even if actual returns averaged 0%, 6% and 12%, but fluctuated over and under those averages throughout the years shown. Depending on the timing and degree of fluctuation, the actual values could be substantially less than those shown, and may, under certain circumstances, result in the lapse of the Policy unless the owner pays more than the stated premium. We based the first illustration on a Policy for an insured who is a 35 year old male in the non-tobacco use, ultimate select rate class, annual premiums of $2,000, a $165,000 specified amount and death benefit Option A. This illustration also assumes cost of insurance charges based on our current cost of insurance rates. The second illustration is based on the same factors as the first illustration, except that cost of insurance rates are based on the guaranteed cost of insurance rates (based on the 1980 Commissioners Standard Ordinary Mortality Table). The amounts we show for the death benefits, cash values and net surrender values take into account (1) the daily charge for assuming mortality and expense risks assessed against each subaccount. This charge is equivalent to an annual charge of 0.90% of the average net assets of the subaccounts; (2) estimated daily expenses equivalent to an effective average annual expense level of 0.94% of the portfolios' average daily net assets; and (3) all applicable premium expense charges and cash value charges. The 0.94% average portfolio expense level assumes an equal allocation of amounts among the 38 subaccounts (this percentage does not include Janus Global portfolio because this portfolio is no longer available to new investors). We used annualized actual audited expenses incurred during 2001 as shown in the Portfolio Annual Expense Table in the Policy prospectus for the portfolios to calculate the average annual expense level. Taking into account the assumed charges of 1.84%, the gross annual investment return rates of 0%, 6% and 12% are equivalent to net annual investment return rates of -1.84%, 4.16% and 10.16%. During 2001, AEGON/Transamerica Fund Advisers, Inc. ("AEGON/Transamerica Advisers") undertook to pay those normal operating expenses of certain AEGON/Transamerica Series Fund, Inc. ("Series Fund") portfolios that exceeded a certain stated percentage of those portfolios' average daily net assets. AEGON/Transamerica Advisers has undertaken until at least April 30, 2003 to pay expenses to the extent normal operating expenses of certain portfolios of the Series Fund exceed a stated percentage of the portfolio's average daily net assets. For details on these expense limits, the amounts reimbursed by AEGON/Transamerica Advisers during 2001, and the expense ratios without the reimbursements, see the Portfolio Annual Expense Table in the Policy prospectus. WITHOUT THESE WAIVERS AND REIMBURSEMENTS, TOTAL ANNUAL EXPENSES FOR THE PORTFOLIOS WOULD HAVE BEEN GREATER, AND THE ILLUSTRATIONS WOULD HAVE ASSUMED THAT THE ASSETS IN THE PORTFOLIOS WERE SUBJECT TO AN AVERAGE ANNUAL EXPENSE LEVEL OF 1.02%. THE HYPOTHETICAL RETURNS SHOWN IN THE TABLES ARE PROVIDED ONLY TO ILLUSTRATE THE MECHANICS OF A HYPOTHETICAL POLICY AND DO NOT REPRESENT PAST OR FUTURE INVESTMENT RATES OF RETURN. Tax charges that may be attributable to the separate account are not reflected because we are not currently making such charges. In order to produce after tax returns of 0%, 6% or 12% if such charges are made in the future, the separate account would have to earn a sufficient amount in excess of 0%, 6% or 12% to cover any tax charges. The "Premium Accumulated at 5%" column of each table shows the amount which would accumulate if you invested an amount equal to the premium to earn interest at 5% per year, compounded annually. We will furnish, upon request, a comparable illustration reflecting the proposed insured's age, gender, risk classification and desired Policy features. FEP WESTERN RESERVE LIFE ASSSUARANCE CO. OF OHIO FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE HYPOTHETICAL ILLUSTRATIONS MALE ISSUE AGE 35 Specified Amount $165,000 Ultimate Select Class Annual Premium $2,000 Option Type A Using Current Cost of Insurance Rates
DEATH BENEFIT END OF PREMIUMS ASSUMING HYPOTHETICAL GROSS AND NET POLICY ACCUMULATED ANNUAL INVESTMENT RETURN OF YEAR AT 5% 0% (GROSS) 6% (GROSS) 12% (GROSS) -1.92% (Net) 4.08% (Net) 10.08% (Net) 1 2,100 165,000 165,000 165,000 2 4,305 165,000 165,000 165,000 3 6,620 165,000 165,000 165,000 4 9,051 165,000 165,000 165,000 5 11,604 165,000 165,000 165,000 6 14,284 165,000 165,000 165,000 7 17,098 165,000 165,000 165,000 8 20,053 165,000 165,000 165,000 9 23,156 165,000 165,000 165,000 10 26,414 165,000 165,000 165,000 15 45,315 165,000 165,000 165,000 20 69,439 165,000 165,000 165,000 30 (AGE 65) 139,522 165,000 165,000 341,535 40 (AGE 75) 253,680 165,000 165,000 803,961 50 (AGE 85) 439,631 * 239,468 2,067,851 60 (AGE 95) 742,526 * 359,915 5,119,018
CASH VALUE NET SURRENDER VALUE END OF ASSUMING HYPOTHETICAL GROSS AND NET ASSUMING HYPOTHETICAL GROSS AND NET POLICY ANNUAL INVESTMENT RETURN OF ANNUAL INVESTMENT RETURN OF YEAR 0% (GROSS) 6% (GROSS) 12% (GROSS) 0% (GROSS) 6% (GROSS) 12% (GROSS) -1.92% (Net) 4.08% (Net) 10.08% (Net) -1.92% (Net) 4.08% (Net) 10.08% (Net) 1 1,533 1,636 1,738 253 356 459 2 3,032 3,334 3,648 1,669 1,970 2,285 3 4,496 5,095 5,744 3,048 3,647 4,296 4 5,926 6,922 8,046 4,394 5,391 6,515 5 7,312 8,808 10,566 5,697 7,193 8,950 6 8,654 10,755 13,323 6,955 9,055 11,623 7 9,950 12,761 16,341 8,167 10,977 14,557 8 11,201 14,831 19,647 9,334 12,963 17,779 9 12,386 16,944 23,249 10,434 14,993 21,298 10 13,515 19,114 27,190 11,479 17,078 25,154 15 18,612 31,230 53,790 18,612 31,230 53,790 20 22,243 45,201 96,654 22,243 45,201 96,654 30 (AGE 65) 26,934 83,196 279,947 26,934 83,196 279,947 40 (AGE 75) 22,649 139,399 751,365 22,649 139,399 751,365 50 (AGE 85) * 228,064 1,969,382 * 228,064 1,969,382 60 (AGE 95) * 356,352 5,068,335 * 356,352 5,068,335
FEP WESTERN RESERVE LIFE ASSSUARANCE CO. OF OHIO FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE HYPOTHETICAL ILLUSTRATIONS MALE ISSUE AGE 35 Specified Amount $165,000 Ultimate Select Class Annual Premium $2,000 Option Type A Using Guaranteed Cost of Insurance Rates
DEATH BENEFIT END OF PREMIUMS ASSUMING HYPOTHETICAL GROSS AND NET POLICY ACCUMULATED ANNUAL INVESTMENT RETURN OF YEAR AT 5% 0% (GROSS) 6% (GROSS) 12% (GROSS) -1.92% (Net) 4.08% (Net) 10.08% (Net) 1 2,100 165,000 165,000 165,000 2 4,305 165,000 165,000 165,000 3 6,620 165,000 165,000 165,000 4 9,051 165,000 165,000 165,000 5 11,604 165,000 165,000 165,000 6 14,284 165,000 165,000 165,000 7 17,098 165,000 165,000 165,000 8 20,053 165,000 165,000 165,000 9 23,156 165,000 165,000 165,000 10 26,414 165,000 165,000 165,000 15 45,315 165,000 165,000 165,000 20 69,439 165,000 165,000 165,000 30 (AGE 65) 139,522 165,000 165,000 327,215 40 (AGE 75) 253,680 * 165,000 750,730 50 (AGE 85) 439,631 * 165,000 1,872,023 60 (AGE 95) 742,526 * 165,000 4,378,254
CASH VALUE NET SURRENDER VALUE END OF ASSUMING HYPOTHETICAL GROSS AND NET ASSUMING HYPOTHETICAL GROSS AND NET POLICY ANNUAL INVESTMENT RETURN OF ANNUAL INVESTMENT RETURN OF YEAR 0% (GROSS) 6% (GROSS) 12% (GROSS) 0% (GROSS) 6% (GROSS) 12% (GROSS) -1.92% (Net) 4.08% (Net) 10.08% (Net) -1.92% (Net) 4.08% (Net) 10.08% (Net) 1 1,510 1,612 1,714 231 333 435 2 2,982 3,280 3,591 1,618 1,916 2,228 3 4,410 5,001 5,642 2,962 3,553 4,195 4 5,794 6,776 7,885 4,262 5,245 6,353 5 7,133 8,605 10,335 5,517 6,989 8,720 6 8,425 10,489 13,015 6,726 8,790 11,315 7 9,669 12,426 15,943 7,885 10,643 14,159 8 10,864 14,420 19,146 8,996 12,553 17,278 9 12,007 16,469 22,650 10,056 14,518 20,698 10 13,101 18,576 26,487 11,065 16,541 24,451 15 18,047 30,365 52,431 18,047 30,365 52,431 20 21,222 43,630 94,011 21,222 43,630 94,011 30 (AGE 65) 17,890 73,158 268,209 17,890 73,158 268,209 40 (AGE 75) * 102,243 701,616 * 102,243 701,616 50 (AGE 85) * 121,247 1,782,879 * 121,247 1,782,879 60 (AGE 95) * 62,305 4,334,905 * 62,305 4,334,905