497 1 d497.txt MET LIFE SEP ACCT UL UL 2001, FLEXIBLE PREMIUM MULTIFUNDED LIFE INSURANCE POLICY ISSUED BY METROPOLITITAN LIFE COMPANY SUPPLEMENT DATED FEBRUARY 15, 2002 TO PROSPECTUS DATED MAY 1, 2001 This supplements the information contained in the prospectus ("Prospectus") for UL 2001 Flexible Premium Multifunded Life insurance Policies, dated May 1, 2001. You should keep this February 15, 2002 Supplement to the Prospectus for future reference. 1. The attached illustrations are added as Appendix A to the Prospectus. 2. Your Free Look Period described on page 32 of the Prospectus is the later of: . 10 days after you receive the Policy (unless state law requires your Policy to specify a longer specified period); and . 45 days after the application is signed (in the case of tele- underwritten policies, 45 days after the Preliminary Application is signed). 3. For applications submitted without an advance payment of the initial premium or if we have refunded an advance payment prior to the issuance of the Policy, the Policy will be redated upon delivery to a current date. The delivery date will be the new Date of Policy. The significance of the Date of Policy is discussed in the Prospectus (see pages 9 and 13). The main effect of this change is to provide a later date for commencement of policy charges. UL2001Supp(0215) L0202BBET(exp0402)MLIC-LD APPENDIX A ILLUSTRATIONS OF DEATH BENEFITS, CASH VALUES, SURRENDER CASH VALUES AND ACCUMULATED PREMIUMS The tables in this Appendix A illustrate the way the Policies work. They show how the death benefit, cash surrender value and cash value could vary over an extended period of time assuming hypothetical gross rates of return (i.e., investment income and capital gains and losses, realized or unrealized) for the Separate Account equal to constant after tax annual rates of 0%, 6% and 12%. The tables are based on a specified face amount of $250,000 for a male aged 40. The insured is assumed to be in the nonsmoker preferred class. The tables assume no rider benefits and assume you made no allocations to the Fixed Account. The tables reflect deductions for all Policy charges that would apply under the assumptions illustrated. The cash surrender values reflect a Surrender Charge deducted from the cash value upon surrender, face reduction or lapse during the first 15 Policy years. See "Table of Charges and Expenses." Values are first given based on current cost of term insurance and other Policy charges and then based on the guaranteed maximums for such charges. Illustrations show Option A and Option B death benefits. The illustrated death benefits, cash surrender values and cash values for a Policy would be different, either higher or lower, from the amounts shown if the actual gross rates of return averaged 0%, 6% or 12%, but varied above and below that average during the period or, if premiums were paid in other amounts or at other than annual intervals. They would also be different depending on the allocation of cash value among the Separate Account's investment divisions, if the actual gross rate of return for all investment divisions averaged 0%, 6% or 12%, but varied above or below that average for individual investment divisions. They would also differ if a Policy loan or partial withdrawal were made during the period of time illustrated, if the insured were female or in another risk classification, or if the Policies were issued in situations where distinctions between male and female insureds are not permitted. For example, as a result of variations in actual returns, additional premium payments beyond those illustrated may be necessary to maintain the Policy in force for the periods shown or to realize the Policy values shown on particular illustrations even if the average rate of return is achieved. The illustrations reflect an average of the investment advisory fees and operating expenses of the Portfolios, at an annual rate of .77% of the average daily net assets of the Portfolios. This average reflects expense reimbursements and subsidies by the investment advisers of certain Portfolios that may be voluntary and of limited duration. See "Fund Investment Management Fees and Direct Expenses." Taking account of the average investment advisory fee and operating expenses of the Portfolios, the gross annual rates of return of 0%, 6% and 12% correspond to net investment return at constant annual rates of -0.77%, 5.19% and 11.14%, respectively. The second column of each table shows the amount you would accumulate if you separately invested the annual premium in an account that earned interest, after taxes, of 5% per year, compounded annually. If you request, we will furnish a personalized illustration reflecting the proposed insured's age, sex, underwriting classification, and the face amount or premium schedule you request. Because these and other assumptions will differ, the values shown in the personalized illustrations can differ very substantially from those shown in the tables below. Therefore, you should carefully review the information that accompanies any personalized illustration. That information will disclose all the assumptions on which the personalized illustration is based. Where applicable, we will also furnish on request a personalized illustration for a Policy which is not affected by the sex of the insured. MALE ISSUE AGE 40 $1,800 ANNUAL PREMIUM FOR NONSMOKER PREFERRED UNDERWRITING RISK $250,000 SPECIFIED FACE AMOUNT OPTION A DEATH BENEFIT THIS ILLUSTRATION IS BASED ON CURRENT POLICY CHARGES.
DEATH BENEFIT CASH SURRENDER VALUE CASH VALUE PREMIUMS ASSUMING HYPOTHETICAL ASSUMING HYPOTHETICAL ASSUMING HYPOTHETICAL ACCUMULATED GROSS ANNUAL GROSS ANNUAL GROSS ANNUAL END OF AT 5% RATE OF RETURN OF RATE OF RETURN OF RATE OF RETURN OF POLICY INTEREST -------------------------- ------------------------ ------------------------ YEAR PER YEAR 0% 6% 12% 0% 6% 12% 0% 6% 12% ------ ----------- -- -- --- -- -- --- -- -- --- 1 $ 1,890 $250,000 $250,000 $250,000 $ 0 $ 0 $ 0 $ 1,021 $ 1,100 $ 1,180 2 3,875 250,000 250,000 250,000 0 0 0 2,306 2,537 2,779 3 5,958 250,000 250,000 250,000 308 774 1,278 3,548 4,014 4,518 4 8,146 250,000 250,000 250,000 1,865 2,647 3,528 4,745 5,527 6,408 5 10,443 250,000 250,000 250,000 3,369 4,552 5,937 5,889 7,072 8,457 6 12,856 250,000 250,000 250,000 4,827 6,496 8,526 6,987 8,656 10,686 7 15,388 250,000 250,000 250,000 6,079 8,318 11,155 8,023 10,262 13,099 8 18,048 250,000 250,000 250,000 7,284 10,180 14,000 9,012 11,908 15,728 9 20,840 250,000 250,000 250,000 8,441 12,081 17,084 9,953 13,593 18,596 10 23,772 250,000 250,000 250,000 9,539 14,011 20,418 10,835 15,307 21,714 15 40,783 250,000 250,000 250,000 14,186 24,316 42,344 14,402 24,532 42,560 20 62,495 250,000 250,000 250,000 15,657 34,186 75,955 15,657 34,186 75,955 25 90,204 250,000 250,000 250,000 13,799 43,599 130,679 13,799 43,599 130,679 30 125,569 250,000 250,000 258,634 5,275 49,546 222,960 5,275 49,546 222,960 35 170,705 250,000 405,838 46,365 379,288 46,365 379,288
IT IS EMPHASIZED THAT THE HYPOTHETICAL GROSS ANNUAL RATES OF RETURN SHOWN ABOVE ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE GROSS ANNUAL RATES OF RETURN. ACTUAL GROSS RATES OF RETURN MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS, INCLUDING THE INVESTMENT ALLOCATIONS MADE BY A POLICY OWNER, THE FREQUENCY OF PREMIUM PAYMENTS CHOSEN BY THE POLICY OWNER, AND THE INVESTMENT EXPERIENCE OF THE INVESTMENT DIVISIONS SELECTED FOR THE POLICY. THE DEATH BENEFIT, CASH VALUE AND CASH SURRENDER VALUES FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL GROSS ANNUAL RATES OF RETURN AVERAGED 0%, 6%, AND 12% OVER A PERIOD OF YEARS, BUT VARIED ABOVE OR BELOW THAT AVERAGE DURING THE PERIOD. THEY WOULD ALSO BE DIFFERENT IF ANY POLICY LOAN WERE MADE DURING THE PERIOD. NO REPRESENTATION CAN BE MADE BY METLIFE OR THE FUNDS THAT THOSE HYPOTHETICAL RATES OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME. MALE ISSUE AGE 40 $1,800 ANNUAL PREMIUM FOR NONSMOKER PREFERRED UNDERWRITING RISK $250,000 SPECIFIED FACE AMOUNT OPTION A DEATH BENEFIT THIS ILLUSTRATION IS BASED ON GUARANTEED POLICY CHARGES.
DEATH BENEFIT CASH SURRENDER VALUE CASH VALUE PREMIUMS ASSUMING HYPOTHETICAL ASSUMING HYPOTHETICAL ASSUMING HYPOTHETICAL ACCUMULATED GROSS ANNUAL GROSS ANNUAL GROSS ANNUAL END OF AT 5% RATE OF RETURN OF RATE OF RETURN OF RATE OF RETURN OF POLICY INTEREST -------------------------- ----------------------- ----------------------- YEAR PER YEAR 0% 6% 12% 0% 6% 12% 0% 6% 12% ------ ----------- -- -- --- -- -- --- -- -- --- 1 $ 1,890 $250,000 $250,000 $250,000 $ 0 $ 0 $ 0 $ 728 $ 798 $ 869 2 3,875 250,000 250,000 250,000 0 0 0 1,700 1,894 2,098 3 5,958 250,000 250,000 250,000 0 0 169 2,613 2,994 3,409 4 8,146 250,000 250,000 250,000 582 1,210 1,921 3,462 4,090 4,801 5 10,443 250,000 250,000 250,000 1,723 2,659 3,760 4,243 5,179 6,280 6 12,856 250,000 250,000 250,000 2,791 4,091 5,687 4,951 6,251 7,847 7 15,388 250,000 250,000 250,000 3,638 5,361 7,565 5,582 7,305 9,509 8 18,048 250,000 250,000 250,000 4,405 6,606 9,544 6,133 8,334 11,272 9 20,840 250,000 250,000 250,000 5,084 7,816 11,625 6,596 9,328 13,137 10 23,772 250,000 250,000 250,000 5,670 8,985 13,815 6,966 10,281 15,111 15 40,783 250,000 250,000 250,000 6,879 13,842 26,767 7,095 14,058 26,983 20 62,495 250,000 250,000 250,000 2,697 14,092 42,467 2,697 14,092 42,467 25 90,204 250,000 250,000 5,258 61,242 5,258 61,242 30 125,569 250,000 82,001 82,001 35 170,705 250,000 101,565 101,565
IT IS EMPHASIZED THAT THE HYPOTHETICAL GROSS ANNUAL RATES OF RETURN SHOWN ABOVE ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE GROSS ANNUAL RATES OF RETURN. ACTUAL GROSS RATES OF RETURN MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS, INCLUDING THE INVESTMENT ALLOCATIONS MADE BY A POLICY OWNER, THE FREQUENCY OF PREMIUM PAYMENTS CHOSEN BY THE POLICY OWNER, AND THE INVESTMENT EXPERIENCE OF THE INVESTMENT DIVISIONS SELECTED FOR THE POLICY. THE DEATH BENEFIT, CASH VALUE AND CASH SURRENDER VALUES FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL GROSS ANNUAL RATES OF RETURN AVERAGED 0%, 6%, AND 12% OVER A PERIOD OF YEARS, BUT VARIED ABOVE OR BELOW THAT AVERAGE DURING THE PERIOD. THEY WOULD ALSO BE DIFFERENT IF ANY POLICY LOAN WERE MADE DURING THE PERIOD. NO REPRESENTATION CAN BE MADE BY METLIFE OR THE FUNDS THAT THOSE HYPOTHETICAL RATES OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME. MALE ISSUE AGE 40 $1,800 ANNUAL PREMIUM FOR NONSMOKER PREFERRED UNDERWRITING RISK $250,000 SPECIFIED FACE AMOUNT OPTION B DEATH BENEFIT THIS ILLUSTRATION IS BASED ON CURRENT POLICY CHARGES.
DEATH BENEFIT CASH SURRENDER VALUE CASH VALUE PREMIUMS ASSUMING HYPOTHETICAL ASSUMING HYPOTHETICAL ASSUMING HYPOTHETICAL ACCUMULATED GROSS ANNUAL GROSS ANNUAL GROSS ANNUAL END OF AT 5% RATE OF RETURN OF RATE OF RETURN OF RATE OF RETURN OF POLICY INTEREST -------------------------- ------------------------ ------------------------ YEAR PER YEAR 0% 6% 12% 0% 6% 12% 0% 6% 12% ------ ----------- -- -- --- -- -- --- -- -- --- 1 $ 1,890 $251,716 $251,837 $251,959 $ 0 $ 0 $ 0 $ 1,716 $ 1,837 $ 1,959 2 3,875 253,693 254,041 254,414 0 0 119 3,683 4,041 4,414 3 5,958 255,595 256,314 257,093 1,729 2,449 3,227 5,595 6,314 7,093 4 8,146 257,447 258,656 260,015 4,011 5,220 6,579 7,447 8,656 10,015 5 10,443 259,234 261,061 263,196 6,227 8,055 10,190 9,234 11,061 13,196 6 12,856 260,961 263,537 266,669 8,384 10,960 14,092 10,961 13,357 16,669 7 15,388 262,612 266,070 270,443 10,293 13,750 18,124 12,612 16,070 20,443 8 18,048 264,204 268,676 274,566 12,142 16,614 22,504 14,204 18,676 24,566 9 20,840 265,733 271,356 279,069 13,929 19,552 27,265 15,733 21,356 29,069 10 23,772 267,190 274,101 283,978 15,643 22,555 32,432 17,190 24,101 33,978 15 40,783 273,529 289,217 316,928 23,271 38,959 66,671 23,529 39,217 66,928 20 62,495 277,332 306,029 369,584 27,332 56,029 119,584 27,332 56,029 119,584 25 90,204 277,689 323,643 453,320 27,689 73,643 203,320 27,689 73,643 203,320 30 125,569 271,163 338,134 584,257 21,163 88,134 334,257 21,163 88,134 334,257 35 170,705 253,136 342,942 787,538 3,136 92,942 537,538 3,136 92,942 537,538
IT IS EMPHASIZED THAT THE HYPOTHETICAL GROSS ANNUAL RATES OF RETURN SHOWN ABOVE ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE GROSS ANNUAL RATES OF RETURN. ACTUAL GROSS RATES OF RETURN MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS, INCLUDING THE INVESTMENT ALLOCATIONS MADE BY A POLICY OWNER, THE FREQUENCY OF PREMIUM PAYMENTS CHOSEN BY THE POLICY OWNER, AND THE INVESTMENT EXPERIENCE OF THE INVESTMENT DIVISIONS SELECTED FOR THE POLICY. THE DEATH BENEFIT, CASH VALUE AND CASH SURRENDER VALUES FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL GROSS ANNUAL RATES OF RETURN AVERAGED 0%, 6%, AND 12% OVER A PERIOD OF YEARS, BUT VARIED ABOVE OR BELOW THAT AVERAGE DURING THE PERIOD. THEY WOULD ALSO BE DIFFERENT IF ANY POLICY LOAN WERE MADE DURING THE PERIOD. NO REPRESENTATION CAN BE MADE BY METLIFE OR THE FUNDS THAT THOSE HYPOTHETICAL RATES OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME. MALE ISSUE AGE 40 $1,800 ANNUAL PREMIUM FOR NONSMOKER PREFERRED UNDERWRITING RISK $250,000 SPECIFIED FACE AMOUNT OPTION B DEATH BENEFIT THIS ILLUSTRATION IS BASED ON GUARANTEED POLICY CHARGES.
DEATH BENEFIT CASH SURRENDER VALUE CASH VALUE PREMIUMS ASSUMING HYPOTHETICAL ASSUMING HYPOTHETICAL ASSUMING HYPOTHETICAL ACCUMULATED GROSS ANNUAL GROSS ANNUAL GROSS ANNUAL END OF AT 5% RATE OF RETURN OF RATE OF RETURN OF RATE OF RETURN OF POLICY INTEREST -------------------------- ------------------------ ------------------------ YEAR PER YEAR 0% 6% 12% 0% 6% 12% 0% 6% 12% ------ ----------- -- -- --- -- -- --- -- -- --- 1 $ 1,890 $251,422 $251,534 $251,656 $ 0 $ 0 $ 0 $ 1,422 $ 1,534 $ 1,646 2 3,875 253,074 253,394 253,729 0 0 0 3,074 3,394 3,729 3 5,958 254,654 255,288 255,975 788 1,422 2,110 4,654 5,288 5,975 4 8,146 256,154 257,206 258,393 2,718 3,770 4,957 6,154 7,206 8,393 5 10,443 257,573 259,148 260,996 4,567 6,142 7,989 7,573 9,148 10,996 6 12,856 258,904 261,105 263,793 6,327 8,528 11,216 8,904 11,105 13,793 7 15,388 260,144 263,075 266,802 7,825 10,755 14,483 10,144 13,075 16,802 8 18,048 261,289 265,051 270,038 9,228 12,990 17,976 11,289 15,051 20,038 9 20,840 262,333 267,026 273,513 10,529 15,223 21,709 12,333 17,026 23,513 10 23,772 263,270 268,993 277,246 11,724 17,447 25,700 13,270 18,993 27,246 15 40,783 266,136 278,545 300,927 15,879 28,288 50,669 16,136 28,545 50,927 20 62,495 264,401 285,698 335,071 14,401 35,698 85,071 14,401 35,698 85,071 25 90,204 254,841 285,702 381,739 4,841 35,702 131,739 4,481 35,702 131,739 30 125,569 270,121 441,850 20,121 191,850 20,121 191,850 35 170,705 512,375 262,375 262,375
IT IS EMPHASIZED THAT THE HYPOTHETICAL GROSS ANNUAL RATES OF RETURN SHOWN ABOVE ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE GROSS ANNUAL RATES OF RETURN. ACTUAL GROSS RATES OF RETURN MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS, INCLUDING THE INVESTMENT ALLOCATIONS MADE BY A POLICY OWNER, THE FREQUENCY OF PREMIUM PAYMENTS CHOSEN BY THE POLICY OWNER, AND THE INVESTMENT EXPERIENCE OF THE INVESTMENT DIVISIONS SELECTED FOR THE POLICY. THE DEATH BENEFIT, CASH VALUE AND CASH SURRENDER VALUES FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL GROSS ANNUAL RATES OF RETURN AVERAGED 0%, 6%, AND 12% OVER A PERIOD OF YEARS, BUT VARIED ABOVE OR BELOW THAT AVERAGE DURING THE PERIOD. THEY WOULD ALSO BE DIFFERENT IF ANY POLICY LOAN WERE MADE DURING THE PERIOD. NO REPRESENTATION CAN BE MADE BY METLIFE OR THE FUNDS THAT THOSE HYPOTHETICAL RATES OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.