0001193125-17-143017.txt : 20170427
0001193125-17-143017.hdr.sgml : 20170427
20170427161557
ACCESSION NUMBER: 0001193125-17-143017
CONFORMED SUBMISSION TYPE: 497
PUBLIC DOCUMENT COUNT: 1
FILED AS OF DATE: 20170427
DATE AS OF CHANGE: 20170427
EFFECTIVENESS DATE: 20170427
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: Metropolitan Life Separate Account UL
CENTRAL INDEX KEY: 0000858997
IRS NUMBER: 135581829
STATE OF INCORPORATION: NY
FISCAL YEAR END: 1231
FILING VALUES:
FORM TYPE: 497
SEC ACT: 1933 Act
SEC FILE NUMBER: 033-32813
FILM NUMBER: 17789268
BUSINESS ADDRESS:
STREET 1: METROPOLITAN LIFE INSURANCE COMPANY
STREET 2: 200 PARK AVENUE
CITY: NEW YORK
STATE: NY
ZIP: 10166
BUSINESS PHONE: 2125788717
MAIL ADDRESS:
STREET 1: METROPOLITAN LIFE INSURANCE COMPANY
STREET 2: 200 PARK AVENUE
CITY: NEW YORK
STATE: NY
ZIP: 10166
FORMER COMPANY:
FORMER CONFORMED NAME: METROPOLITAN LIFE SEPARATE ACCOUNT UL
DATE OF NAME CHANGE: 19920703
0000858997
S000004219
Metropolitan Life Separate Account UL
C000023054
UL II 1990-93
497
1
d264226d497.txt
UL II 1990-93 SUPPLEMENT DATED MAY 1, 2017
METROPOLITAN LIFE INSURANCE COMPANY
UL II -- FLEXIBLE PREMIUM MULTIFUNDED LIFE INSURANCE POLICIES
Supplement Dated May 1, 2017 to
Prospectus Dated April 30, 1993 as previously amended
This supplement updates certain information contained in your last prospectus,
as annually and periodically supplemented. You should read and retain this
supplement with your Policy. We will send you an additional copy of your most
recent prospectus (and any previous supplements thereto), without charge, on
written request sent to MetLife, P.O. Box 543, Warwick, RI 02887-0543. New UL
II Policies are no longer available for sale.
You allocate net premiums to and may transfer cash value among the available
investment divisions of the Metropolitan Life Separate Account UL. Each
available investment division, in turn, invests in the shares of one of the
following Portfolios:
AMERICAN FUNDS INSURANCE SERIES(R) (CLASS 2)
American Funds Bond Fund
American Funds Global Small Capitalization Fund
American Funds Growth Fund
American Funds Growth-Income Fund
BRIGHTHOUSE FUNDS TRUST I (FORMERLY MET INVESTORS SERIES TRUST) (CLASS A)
Brighthouse Asset Allocation 100 Portfolio (formerly MetLife Asset
Allocation 100 Portfolio)
Brighthouse/Wellington Large Cap Research Portfolio (formerly
Met/Wellington Large Cap Research Portfolio)
Clarion Global Real Estate Portfolio
ClearBridge Aggressive Growth Portfolio
Harris Oakmark International Portfolio
Invesco Mid Cap Value Portfolio
Invesco Small Cap Growth Portfolio
MFS(R) Research International Portfolio
Morgan Stanley Mid Cap Growth Portfolio
Oppenheimer Global Equity Portfolio
PIMCO Inflation Protected Bond Portfolio
PIMCO Total Return Portfolio
SSGA Growth and Income ETF Portfolio
SSGA Growth ETF Portfolio
T. Rowe Price Mid Cap Growth Portfolio
BRIGHTHOUSE FUNDS TRUST II (FORMERLY METROPOLITAN SERIES FUND) (CLASS A)
Baillie Gifford International Stock Portfolio
BlackRock Bond Income Portfolio
BlackRock Capital Appreciation Portfolio
BlackRock Large Cap Value Portfolio
BlackRock Ultra-Short Term Bond Portfolio
Brighthouse Asset Allocation 20 Portfolio (formerly MetLife Asset
Allocation 20 Portfolio)
Brighthouse Asset Allocation 40 Portfolio (formerly MetLife Asset
Allocation 40 Portfolio)
Brighthouse Asset Allocation 60 Portfolio (formerly MetLife Asset
Allocation 60 Portfolio)
Brighthouse Asset Allocation 80 Portfolio (formerly MetLife Asset
Allocation 80 Portfolio)
Brighthouse/Artisan Mid Cap Value Portfolio (formerly Met/Artisan Mid Cap
Value Portfolio)
Brighthouse/Wellington Balanced Portfolio (formerly Met/Wellington Balanced
Portfolio)
Brighthouse/Wellington Core Equity Opportunities Portfolio (formerly
Met/Wellington Core Equity Opportunities Portfolio)
Frontier Mid Cap Growth Portfolio
Jennison Growth Portfolio
Loomis Sayles Small Cap Core Portfolio
Loomis Sayles Small Cap Growth Portfolio
MetLife Aggregate Bond Index Portfolio (formerly Barclays Aggregate Bond
Index Portfolio)
MetLife Mid Cap Stock Index Portfolio
MetLife MSCI EAFE(R) Index Portfolio (formerly MSCI EAFE(R) Index
Portfolio)
MetLife Russell 2000(R) Index Portfolio (formerly Russell 2000(R) Index
Portfolio)
MetLife Stock Index Portfolio
MFS(R) Total Return Portfolio
MFS(R) Value Portfolio
Neuberger Berman Genesis Portfolio
T. Rowe Price Large Cap Growth Portfolio
T. Rowe Price Small Cap Growth Portfolio
Western Asset Management Strategic Bond Opportunities Portfolio
Western Asset Management U.S. Government Portfolio
The prospectuses for the Portfolios describe in greater detail an investment in
the Portfolios. YOU CAN OBTAIN PROSPECTUSES FOR THE PORTFOLIOS BY CALLING
1-800-638-5000.
1
SENDING COMMUNICATIONS AND PAYMENTS TO US
You can communicate all of your requests, instructions and notifications to us
by contacting us in writing at our Designated Office. We may require that
certain requests, instructions and notifications be made on forms that we
provide. These include: changing your beneficiary; taking a Policy loan;
-changing your death benefit option; taking a partial withdrawal; surrendering
your Policy; making transfer requests -(including elections with respect to the
automated investment strategies) or changing your premium allocations. As of
the date of this prospectus, requests for partial withdrawals and Policy loans
must be in writing. However, you should contact us at 1-800-MET-5000 for our
current procedures. Below is a list of our Designated Offices for various
functions. We may name additional or alternate Designated Offices. If we do, we
will notify you in writing. You may also contact us at 1-800-MET-5000 for
information on where to direct communication regarding any function not listed
below or for any other inquiry.
FUNCTION DESIGNATED OFFICE ADDRESS
Premium Payments MetLife, P.O. Box 371351, Pittsburgh, PA
15250-7351
Payment Inquiries MetLife, P.O. Box 354, Warwick, RI 02887-0354
Surrenders, Withdrawals, Loans, Investment MetLife, P.O. Box 543, Warwick, RI 02887-0543
Division Transfers, Premium Reallocation
Death Claims MetLife, P.O. Box 353, Warwick, RI 02887-0353
Beneficiary & Ownership MetLife, P.O. Box 313, Warwick, RI 02887-0313
Address Changes MetLife, 500 Schoolhouse Road, Johnstown, PA
15904
Attn: Data Integrity
If you send your premium payments or transaction requests to an address other
than the one we have designated for receipt of such premium payments or
requests, we may return the premium payment to you, or there may be a delay in
applying the premium payment or transaction to your Policy.
Our variable life insurance business is largely conducted through digital
communications and data storage networks and systems operated by us and our
service providers or other business partners (e.g., the Funds and the firms
involved in the distribution and sale of our variable life insurance policies).
For example, many routine operations, such as processing Owners' requests and
elections and day-to-day record keeping, are all executed through computer
networks and systems.
We have established administrative and technical controls and a business
continuity plan to protect our operations against cybersecurity breaches.
Despite these protocols, a cybersecurity breach could have a material, negative
impact on MetLife and the Separate Account, as well as individual Owners and
their Policies. Our operations also could be negatively affected by a
cybersecurity breach at a third party, such as a governmental or regulatory
authority or another participant in the financial markets.
Cybersecurity breaches can be intentional or unintentional events, and can
occur through unauthorized access to computer systems, networks or devices;
infection from computer viruses or other malicious software code; or attacks
that shut down, disable, slow or otherwise disrupt operations, business
processes or website access or functionality. Cybersecurity breaches can
interfere with our processing of Policy transactions, including the processing
of transfer orders from our website or with the Funds; impact our ability to
calculate unit values; cause the release and possible destruction of
confidential Owner or business information; or impede order processing or cause
other operational issues. Although we continually make efforts to identify and
reduce our exposure to cybersecurity risk, there is no guarantee that we will
be able to successfully manage this risk at all times.
FEE TABLES
The following replaces the section entitled "Annual Portfolio Operating
Expenses".
2
ANNUAL PORTFOLIO OPERATING EXPENSES
The following tables describe the fees and expenses that the Portfolios will
pay and that therefore a Policy owner will indirectly pay periodically during
the time that he or she owns a Policy. The first table shows the minimum and
maximum fees and expenses charged by the Portfolios for the fiscal year ended
December 31, 2016. More detail concerning each Portfolio's fees and expenses is
contained in the table that follows this table and in the prospectuses for the
Portfolios. Certain Portfolios may impose a redemption fee in the future.
The next table describes the annual operating expenses for each Portfolio for
the year ended December 31, 2016, as a percentage of the Portfolio's average
daily net assets for the year (before and after fee waivers and expense
reimbursements).
MINIMUM AND MAXIMUM TOTAL ANNUAL PORTFOLIO OPERATING EXPENSES
MINIMUM MAXIMUM
Total Annual Portfolio Operating Expenses
(expenses that are deducted from Portfolio assets, including management fees,
distribution and/or service (12b-1) fees, and other expenses) 0.27% 1.00%
PORTFOLIO FEES AND EXPENSES
(as a percentage of average daily net assets)
The following table is a summary. For more complete information on Portfolio
fees and expenses, please refer to the prospectus for each Portfolio.
ACQUIRED
DISTRIBUTION FUND TOTAL FEE WAIVER NET TOTAL
AND/OR FEES ANNUAL AND/OR ANNUAL
MANAGEMENT SERVICE OTHER AND OPERATING EXPENSE OPERATING
PORTFOLIO FEE (12B-1) FEES EXPENSES EXPENSES EXPENSES REIMBURSEMENT EXPENSES
AMERICAN FUNDS INSURANCE
SERIES(R) -- CLASS 2
American Funds Bond Fund 0.36% 0.25% 0.02% -- 0.63% -- 0.63%
American Funds Global Small
Capitalization Fund 0.70% 0.25% 0.04% -- 0.99% -- 0.99%
American Funds Growth Fund 0.33% 0.25% 0.02% -- 0.60% -- 0.60%
American Funds Growth-Income
Fund 0.27% 0.25% 0.02% -- 0.54% -- 0.54%
BRIGHTHOUSE FUNDS TRUST I --
CLASS A
Brighthouse Asset Allocation 100
Portfolio 0.07% -- 0.01% 0.68% 0.76% -- 0.76%
Brighthouse/Wellington Large
Cap Research Portfolio 0.56% -- 0.03% -- 0.59% 0.04% 0.55%
Clarion Global Real Estate
Portfolio 0.61% -- 0.04% -- 0.65% -- 0.65%
ClearBridge Aggressive Growth
Portfolio 0.56% -- 0.01% -- 0.57% 0.02% 0.55%
Harris Oakmark International
Portfolio 0.77% -- 0.04% -- 0.81% 0.02% 0.79%
Invesco Mid Cap Value Portfolio 0.65% -- 0.03% 0.05% 0.73% 0.02% 0.71%
Invesco Small Cap Growth
Portfolio 0.85% -- 0.03% -- 0.88% 0.02% 0.86%
MFS(R) Research International
Portfolio 0.70% -- 0.04% -- 0.74% 0.06% 0.68%
3
ACQUIRED
DISTRIBUTION FUND TOTAL FEE WAIVER NET TOTAL
AND/OR FEES ANNUAL AND/OR ANNUAL
MANAGEMENT SERVICE OTHER AND OPERATING EXPENSE OPERATING
PORTFOLIO FEE (12B-1) FEES EXPENSES EXPENSES EXPENSES REIMBURSEMENT EXPENSES
Morgan Stanley Mid Cap Growth
Portfolio 0.65% -- 0.05% -- 0.70% 0.01% 0.69%
Oppenheimer Global Equity
Portfolio 0.66% -- 0.05% -- 0.71% 0.10% 0.61%
PIMCO Inflation Protected Bond
Portfolio 0.47% -- 0.28% -- 0.75% 0.01% 0.74%
PIMCO Total Return Portfolio 0.48% -- 0.05% -- 0.53% 0.03% 0.50%
SSGA Growth and Income ETF
Portfolio 0.31% -- 0.01% 0.22% 0.54% -- 0.54%
SSGA Growth ETF Portfolio 0.32% -- 0.02% 0.24% 0.58% -- 0.58%
T. Rowe Price Mid Cap Growth
Portfolio 0.75% -- 0.03% -- 0.78% -- 0.78%
BRIGHTHOUSE FUNDS TRUST II --
CLASS A
Baillie Gifford International
Stock Portfolio 0.80% -- 0.05% -- 0.85% 0.12% 0.73%
BlackRock Bond Income
Portfolio 0.33% -- 0.04% -- 0.37% -- 0.37%
BlackRock Capital Appreciation
Portfolio 0.70% -- 0.02% -- 0.72% 0.09% 0.63%
BlackRock Large Cap Value
Portfolio 0.63% -- 0.03% -- 0.66% 0.03% 0.63%
BlackRock Ultra-Short Term
Bond Portfolio 0.35% -- 0.03% -- 0.38% 0.02% 0.36%
Brighthouse Asset Allocation 20
Portfolio 0.09% -- 0.03% 0.53% 0.65% 0.02% 0.63%
Brighthouse Asset Allocation 40
Portfolio 0.06% -- -- 0.57% 0.63% -- 0.63%
Brighthouse Asset Allocation 60
Portfolio 0.05% -- -- 0.60% 0.65% -- 0.65%
Brighthouse Asset Allocation 80
Portfolio 0.05% -- 0.01% 0.64% 0.70% -- 0.70%
Brighthouse/Artisan Mid Cap
Value Portfolio 0.82% -- 0.03% -- 0.85% -- 0.85%
Brighthouse/Wellington Balanced
Portfolio 0.46% -- 0.09% -- 0.55% -- 0.55%
Brighthouse/Wellington Core
Equity Opportunities Portfolio 0.70% -- 0.02% -- 0.72% 0.11% 0.61%
Frontier Mid Cap Growth
Portfolio 0.72% -- 0.03% -- 0.75% 0.02% 0.73%
Jennison Growth Portfolio 0.60% -- 0.02% -- 0.62% 0.08% 0.54%
Loomis Sayles Small Cap Core
Portfolio 0.90% -- 0.06% 0.04% 1.00% 0.08% 0.92%
Loomis Sayles Small Cap Growth
Portfolio 0.90% -- 0.06% -- 0.96% 0.09% 0.87%
MetLife Aggregate Bond Index
Portfolio 0.25% -- 0.03% -- 0.28% 0.01% 0.27%
MetLife Mid Cap Stock Index
Portfolio 0.25% -- 0.05% 0.01% 0.31% -- 0.31%
MetLife MSCI EAFE(R) Index
Portfolio 0.30% -- 0.08% 0.01% 0.39% -- 0.39%
4
ACQUIRED
DISTRIBUTION FUND TOTAL FEE WAIVER NET TOTAL
AND/OR FEES ANNUAL AND/OR ANNUAL
MANAGEMENT SERVICE OTHER AND OPERATING EXPENSE OPERATING
PORTFOLIO FEE (12B-1) FEES EXPENSES EXPENSES EXPENSES REIMBURSEMENT EXPENSES
MetLife Russell 2000(R) Index
Portfolio 0.25% -- 0.06% 0.01% 0.32% -- 0.32%
MetLife Stock Index Portfolio 0.25% -- 0.02% -- 0.27% 0.01% 0.26%
MFS(R) Total Return Portfolio 0.56% -- 0.05% -- 0.61% -- 0.61%
MFS(R) Value Portfolio 0.70% -- 0.02% -- 0.72% 0.14% 0.58%
Neuberger Berman Genesis
Portfolio 0.81% -- 0.04% -- 0.85% 0.01% 0.84%
T. Rowe Price Large Cap Growth
Portfolio 0.60% -- 0.02% -- 0.62% 0.02% 0.60%
T. Rowe Price Small Cap Growth
Portfolio 0.47% -- 0.03% -- 0.50% -- 0.50%
Western Asset Management
Strategic Bond Opportunities
Portfolio 0.57% -- 0.03% 0.01% 0.61% 0.05% 0.56%
Western Asset Management
U.S. Government Portfolio 0.47% -- 0.03% -- 0.50% 0.01% 0.49%
The information shown in the table above was provided by the Portfolios.
Certain Portfolios and their investment adviser have entered into expense
reimbursement and/or fee waiver arrangements that will continue from May 1,
2017 through April 30, 2018. These arrangements can be terminated with respect
to these Portfolios only with the approval of the Portfolio's board of
directors or trustees. Please see the Portfolios' prospectuses for additional
information regarding these arrangements.
Certain Portfolios that have "Acquired Fund Fees and Expenses" are "funds of
funds." A fund of funds invests substantially all of its assets in other
underlying funds. Because the Portfolio invests in other funds, it will bear
its pro rata portion of the operating expenses of those underlying funds,
including the management fee.
We are waiving the following amount of the Mortality and Expense Risk Charge:
an amount equal to the underlying portfolio expenses that are in excess of
0.62% for the investment division investing in the Oppenheimer Global Equity
Portfolio (Class A).
The fee and expense information regarding the Portfolios was provided by those
Portfolios. The American Funds Insurance Series is not affiliated with MetLife.
THE FUNDS AND THEIR PORTFOLIOS
The following replaces the section entitled "Management of the Portfolios".
MANAGEMENT OF PORTFOLIOS
Each Fund has an investment adviser who is responsible for overall management
of the Fund. These investment advisers have contracted with sub-advisers to
make the day-to-day investment decisions for some of the Portfolios.
The adviser, any sub-adviser and investment objective of each Portfolio are as
follows:
PORTFOLIO INVESTMENT OBJECTIVE INVESTMENT ADVISER/SUBADVISER
AMERICAN FUNDS INSURANCE SERIES(R) -- CLASS 2
American Funds Bond Fund Seeks as high a level of current Capital Research and
income as is consistent with the Management Company
preservation of capital.
American Funds Global Small Capitalization Fund Seeks long-term growth of Capital Research and
capital. Management Company
5
PORTFOLIO INVESTMENT OBJECTIVE INVESTMENT ADVISER/SUBADVISER
American Funds Growth Fund Seeks growth of capital. Capital Research and
Management Company
American Funds Growth-Income Fund Seeks long-term growth of capital Capital Research and
and income. Management Company
BRIGHTHOUSE FUNDS TRUST I -- CLASS A
Brighthouse Asset Allocation 100 Portfolio Seeks growth of capital. Brighthouse Investment
Advisers, LLC
Brighthouse/Wellington Large Cap Research Seeks long-term capital Brighthouse Investment
Portfolio appreciation. Advisers, LLC
Subadviser: Wellington
Management Company LLP
Clarion Global Real Estate Portfolio Seeks total return through Brighthouse Investment
investment in real estate Advisers, LLC
securities, emphasizing both Subadviser: CBRE Clarion
capital appreciation and current Securities LLC
income.
ClearBridge Aggressive Growth Portfolio Seeks capital appreciation. Brighthouse Investment
Advisers, LLC
Subadviser: ClearBridge
Investments, LLC
Harris Oakmark International Portfolio Seeks long-term capital Brighthouse Investment
appreciation. Advisers, LLC
Subadviser: Harris Associates
L.P.
Invesco Mid Cap Value Portfolio Seeks high total return by Brighthouse Investment
investing in equity securities of Advisers, LLC
mid-sized companies. Subadviser: Invesco Advisers,
Inc.
Invesco Small Cap Growth Portfolio Seeks long-term growth of Brighthouse Investment
capital. Advisers, LLC
Subadviser: Invesco Advisers,
Inc.
MFS(R) Research International Portfolio Seeks capital appreciation. Brighthouse Investment
Advisers, LLC
Subadviser: Massachusetts
Financial Services Company
Morgan Stanley Mid Cap Growth Portfolio Seeks capital appreciation. Brighthouse Investment
Advisers, LLC
Subadviser: Morgan Stanley
Investment Management Inc.
Oppenheimer Global Equity Portfolio Seeks capital appreciation. Brighthouse Investment
Advisers, LLC
Subadviser: OppenheimerFunds,
Inc.
PIMCO Inflation Protected Bond Portfolio Seeks maximum real return, Brighthouse Investment
consistent with preservation of Advisers, LLC
capital and prudent investment Subadviser: Pacific Investment
management. Management Company LLC
PIMCO Total Return Portfolio Seeks maximum total return, Brighthouse Investment
consistent with the preservation Advisers, LLC
of capital and prudent investment Subadviser: Pacific Investment
management. Management Company LLC
SSGA Growth and Income ETF Portfolio Seeks growth of capital and Brighthouse Investment
income. Advisers, LLC
Subadviser: SSGA Funds
Management, Inc.
6
PORTFOLIO INVESTMENT OBJECTIVE INVESTMENT ADVISER/SUBADVISER
SSGA Growth ETF Portfolio Seeks growth of capital. Brighthouse Investment
Advisers, LLC
Subadviser: SSGA Funds
Management, Inc.
T. Rowe Price Mid Cap Growth Portfolio Seeks long-term growth of Brighthouse Investment
capital. Advisers, LLC
Subadviser: T. Rowe Price
Associates, Inc.
BRIGHTHOUSE FUNDS TRUST II -- CLASS A
Baillie Gifford International Stock Portfolio Seeks long-term growth of Brighthouse Investment
capital. Advisers, LLC
Subadviser: Baillie Gifford
Overseas Limited
BlackRock Bond Income Portfolio Seeks a competitive total return Brighthouse Investment
primarily from investing in Advisers, LLC
fixed-income securities. Subadviser: BlackRock Advisors,
LLC
BlackRock Capital Appreciation Portfolio Seeks long-term growth of Brighthouse Investment
capital. Advisers, LLC
Subadviser: BlackRock Advisors,
LLC
BlackRock Large Cap Value Portfolio Seeks long-term growth of Brighthouse Investment
capital. Advisers, LLC
Subadviser: BlackRock Advisors,
LLC
BlackRock Ultra-Short Term Bond Portfolio Seeks a high level of current Brighthouse Investment
income consistent with Advisers, LLC
preservation of capital. Subadviser: BlackRock Advisors,
LLC
Brighthouse Asset Allocation 20 Portfolio Seeks a high level of current Brighthouse Investment
income, with growth of capital as Advisers, LLC
a secondary objective.
Brighthouse Asset Allocation 40 Portfolio Seeks high total return in the Brighthouse Investment
form of income and growth of Advisers, LLC
capital, with a greater emphasis
on income.
Brighthouse Asset Allocation 60 Portfolio Seeks a balance between a high Brighthouse Investment
level of current income and Advisers, LLC
growth of capital, with a greater
emphasis on growth of capital.
Brighthouse Asset Allocation 80 Portfolio Seeks growth of capital. Brighthouse Investment
Advisers, LLC
Brighthouse/Artisan Mid Cap Value Portfolio Seeks long-term capital growth. Brighthouse Investment
Advisers, LLC
Subadviser: Artisan Partners
Limited Partnership
Brighthouse/Wellington Balanced Portfolio Seeks long-term capital Brighthouse Investment
appreciation with some current Advisers, LLC
income. Subadviser: Wellington
Management Company LLP
Brighthouse/Wellington Core Equity Seeks to provide a growing Brighthouse Investment
Opportunities Portfolio stream of income over time and, Advisers, LLC
secondarily, long-term capital Subadviser: Wellington
appreciation and current income. Management Company LLP
Frontier Mid Cap Growth Portfolio Seeks maximum capital Brighthouse Investment
appreciation. Advisers, LLC
Subadviser: Frontier Capital
Management Company, LLC
7
PORTFOLIO INVESTMENT OBJECTIVE INVESTMENT ADVISER/SUBADVISER
Jennison Growth Portfolio Seeks long-term growth of Brighthouse Investment
capital. Advisers, LLC
Subadviser: Jennison Associates
LLC
Loomis Sayles Small Cap Core Portfolio Seeks long-term capital growth Brighthouse Investment
from investments in common Advisers, LLC
stocks or other equity securities. Subadviser: Loomis, Sayles &
Company, L.P.
Loomis Sayles Small Cap Growth Portfolio Seeks long-term capital growth. Brighthouse Investment
Advisers, LLC
Subadviser: Loomis, Sayles &
Company, L.P.
MetLife Aggregate Bond Index Portfolio Seeks to track the performance of Brighthouse Investment
the Bloomberg Barclays Advisers, LLC
U.S. Aggregate Bond Index. Subadviser: MetLife Investment
Advisors, LLC
MetLife Mid Cap Stock Index Portfolio Seeks to track the performance of Brighthouse Investment
the Standard & Poor's MidCap Advisers, LLC
400(R) Composite Stock Price Subadviser: MetLife Investment
Index. Advisors, LLC
MetLife MSCI EAFE(R) Index Portfolio Seeks to track the performance of Brighthouse Investment
the MSCI EAFE(R) Index. Advisers, LLC
Subadviser: MetLife Investment
Advisors, LLC
MetLife Russell 2000(R) Index Portfolio Seeks to track the performance of Brighthouse Investment
the Russell 2000(R) Index. Advisers, LLC
Subadviser: MetLife Investment
Advisors, LLC
MetLife Stock Index Portfolio Seeks to track the performance of Brighthouse Investment
the Standard & Poor's 500(R) Advisers, LLC
Composite Stock Price Index. Subadviser: MetLife Investment
Advisors, LLC
MFS(R) Total Return Portfolio Seeks a favorable total return Brighthouse Investment
through investment in a Advisers, LLC
diversified portfolio. Subadviser: Massachusetts
Financial Services Company
MFS(R) Value Portfolio Seeks capital appreciation. Brighthouse Investment
Advisers, LLC
Subadviser: Massachusetts
Financial Services Company
Neuberger Berman Genesis Portfolio Seeks high total return, consisting Brighthouse Investment
principally of capital appreciation. Advisers, LLC
Subadviser: Neuberger Berman
Investment Advisers LLC
T. Rowe Price Large Cap Growth Portfolio Seeks long-term growth of Brighthouse Investment
capital. Advisers, LLC
Subadviser: T. Rowe Price
Associates, Inc.
T. Rowe Price Small Cap Growth Portfolio Seeks long-term capital growth. Brighthouse Investment
Advisers, LLC
Subadviser: T. Rowe Price
Associates, Inc.
Western Asset Management Strategic Bond Seeks to maximize total return Brighthouse Investment
Opportunities Portfolio consistent with preservation of Advisers, LLC
capital. Subadviser: Western Asset
Management Company
8
PORTFOLIO INVESTMENT OBJECTIVE INVESTMENT ADVISER/SUBADVISER
Western Asset Management U.S. Government Seeks to maximize total return Brighthouse Investment
Portfolio consistent with preservation of Advisers, LLC
capital and maintenance of Subadviser: Western Asset
liquidity. Management Company
A Portfolio may have a name and/or objective that is very similar to that of a
publicly available mutual fund that is managed by the same sub-investment
manager or adviser. The Portfolios are not publicly available and will not have
the same performance as those publicly available mutual funds. Different
performance will result from differences in implementation of investment
policies, cash flows, fees and size of the Portfolio.
TRANSFERRING CASH VALUE AMONG YOUR POLICY'S INVESTMENT OPTIONS
The following paragraphs in this section have been modified.
Our policies and procedures may result in transfer restrictions being applied
to deter frequent transfers. Currently, when we detect transfer activity in the
Monitored Portfolio that exceeds our current transfer limits, we require future
transfer requests to or from any Monitored Portfolios under that Policy to be
submitted with an original signature. A first occurrence will result in a
warning letter; a second occurrence will result in the imposition of the
restriction for a six-month period; a third occurrence will result in the
permanent imposition of the restriction.
RESTRICTIONS ON LARGE TRANSFERS. Large transfers may increase brokerage and
administrative costs of the underlying Portfolio and may disrupt portfolio
management strategy, requiring a Portfolio to maintain a high cash position and
possibly resulting in lost investment opportunities and forced liquidations. We
do not monitor for large transfers to or from Portfolios except where the
portfolio manager of a particular underlying Portfolio has brought large
transfer activity to our attention for investigation on a case-by-case basis.
For example, some portfolio managers have asked us to monitor for "block
transfers" where transfer requests have been submitted on behalf of multiple
Owners by a third party such as an investment adviser. When we detect such
large trades, we may impose restrictions similar to those described above where
future transfer requests from that third party must be submitted in writing
with an original signature. A first occurrence will result in a warning letter;
a second occurrence will result in the imposition of the restriction for a
six-month period; a third occurrence will result in the permanent imposition of
the restriction.
FEDERAL TAX MATTERS
The following is a brief summary of some tax rules that may apply to your
Policy. It does not purport to be complete or cover every situation. The
summary does not address state, local or foreign tax issues related to your
Policy. Because individual circumstances vary, you should consult with your own
tax adviser to find out how taxes can affect your benefits and rights under
your Policy, especially before you make unscheduled premium payments, change
your specified face amount, change your death benefit option, change coverage
provided by riders, take a loan or withdrawal, or assign or surrender the
Policy. Under current federal income tax law, the taxable portion of
distributions from variable life contracts is taxed at ordinary income tax
rates and does not qualify for the reduced tax rate applicable to long-term
capital gains and dividends.
INSURANCE PROCEEDS
o Insurance proceeds are generally excludable from your beneficiary's gross
income to the extent provided in Section 101 of the Internal Revenue Code
("Code").
o In the case of employer-owned life insurance as defined in Section 101(j) of
the Code, the amount of the death benefit excludable from gross income is
limited to premiums paid unless the Policy falls within certain specified
exceptions and a notice and consent requirement is satisfied before the
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Policy is issued. Certain specified exceptions are based on the status of an
employee as highly compensated, a director, or recently employed. There are
also exceptions for Policy proceeds paid to an employee's heirs. These
exceptions only apply if proper notice is given to the insured employee and
consent is received from the insured employee before the issuance of the
Policy. These rules apply to Policies issued August 18, 2006 and later and
also apply to policies issued before August 18, 2006 after a material
increase in the death benefit or other material change. An IRS reporting
requirement applies to employer-owned life insurance subject to these rules.
Because these rules are complex and will affect the tax treatment of death
benefits, it is advisable to consult tax counsel. The death benefit will
also be taxable in the case of a transfer-for-value unless certain
exceptions apply.
o The death proceeds may be subject to federal estate tax: (i) if paid to the
insured's estate or (ii) if paid to a different beneficiary if the insured
possessed incidents of ownership at or within three years before death.
o If you die before the insured, the value of your Policy (determined under IRS
rules) is included in your estate and may be subject to federal estate tax.
o Whether or not any federal estate tax is due is based on a number of factors
including the estate size. Please consult your tax adviser for the
applicable estate tax rates.
o The insurance proceeds payable upon death of the insured will never be less
than the minimum amount required for the Policy to be treated as life
insurance under Section 7702 of the Internal Revenue Code, as in effect on
the date the Policy was issued. The rules with respect to Policies issued on
a substandard risk basis are not entirely clear.
CASH VALUE (IF YOUR POLICY IS NOT A MODIFIED ENDOWMENT CONTRACT)
o You are generally not taxed on your cash value until you withdraw it or
surrender your Policy or receive a distribution (such as when your Policy
terminates on the Final Date). In these cases, you are generally permitted
to take withdrawals and receive other distributions up to the amount of
premiums paid without any tax consequences. However, withdrawals and other
distributions will be treated as gain subject to ordinary income tax after
you have received amounts equal to the total premiums you paid. Somewhat
different rules apply in the first 15 Policy years. Distributions during the
first 15 Policy years accompanied by a reduction in Policy benefits,
including distributions which must be made in order to enable the Policy to
continue to qualify as a life insurance contract for federal income tax
purposes, are subject to different tax rules and may be treated in whole or
in part as taxable income.
There may be an indirect tax upon the income in the Policy or the proceeds of
the Policy or receive a distribution such as on the Final Date.
SPLIT-DOLLAR INSURANCE PLANS
The IRS has issued guidance on split dollar insurance plans. A tax adviser
should be consulted with respect to this guidance if you have purchased or are
considering the purchase of a Policy for a split dollar insurance plan. If your
split dollar plan provides deferred compensation, specific tax rules governing
deferred compensation arrangements may apply. Failure to adhere to these rules
will result in adverse tax consequences.
The Sarbanes-Oxley Act of 2002 (the "Act"), which was signed into law on July
30, 2002, prohibits, with limited exceptions, publicly-traded companies,
including non-U.S. companies that have securities listed on U.S. exchanges,
from extending, directly or indirectly or through a subsidiary, many types of
personal loans to their directors or executive officers. It is possible that
this prohibition may be interpreted to apply to certain split-dollar life
insurance arrangements for directors and executive officers of such companies,
since at least some such arrangements can arguably be viewed as involving a
loan from the employer for at least some purposes.
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Any affected business contemplating the payment of a premium on an existing
Policy or the purchase of a new Policy in connection with a split-dollar life
insurance arrangement should consult legal counsel.
LOANS
o Loan amounts you receive will generally not be subject to income tax, unless
your Policy is or becomes a modified endowment contract, is exchanged or
terminates. Loans from or secured by a Policy that is not a modified
endowment contract are not subject to the 10% federal income tax penalty.
o Interest on loans is generally not deductible. For businesses that own a
Policy, at least part of the interest deduction unrelated to the Policy may
be disallowed unless the insured is a 20% owner, officer, director or
employee of the business.
o If your Policy terminates (upon surrender, cancellation lapse or, in most
cases, exchange) while any Policy loan is outstanding, the amount of the
loan plus accrued interest thereon will be deemed to be a "distribution" to
you. Any such distribution will have the same tax consequences as any other
Policy distribution. In the case of an outstanding loan at the time of an
exchange, the cancelled loan will generally be taxed to the extent of any
policy gain. Since amounts borrowed reduce the cash value that will be
distributed to you if the Policy is surrendered, cancelled or lapses, any
cash value distributed to you in these circumstances may be insufficient to
pay the income tax on any gain.
o The tax consequences of loans outstanding after the 15th Policy year are
uncertain.
MODIFIED ENDOWMENT CONTRACTS
These contracts are life insurance policies where the premiums paid during the
first 7 years after the Policy is issued, or after a material change in the
Policy, exceeds tax law limits referred to as the "7-pay test." Material
changes in the Policy include changes in the level of benefits, receipt of an
unnecessary premium and certain other changes to your Policy after the issue
date. Unnecessary premiums are premiums paid into the Policy which are not
needed in order to provide a death benefit equal to the lowest death benefit
that was payable in the most recent 7-pay testing period. Reductions in
benefits during a 7-pay testing period also may cause your Policy to become a
modified endowment contract. Generally, a life insurance policy that is
received in exchange for a modified endowment contract will also be considered
a modified endowment contract. The IRS has promulgated a procedure for the
correction of inadvertent modified endowment contracts that may provide relief
in limited circumstances.
Due to the flexibility of the Policies as to premiums and benefits, the
individual circumstances of each Policy will determine whether it is classified
as a modified endowment contract.
If your Policy is considered a modified endowment contract the following
applies:
o The death benefit will still generally be income tax free to your
beneficiary, to the extent discussed above.
o Amounts withdrawn or distributed before the insured's death, including
(without limitation) loans taken from or secured by the Policy, assignments
and pledges, are (to the extent of any gain in your Policy) treated as
income first and subject to income tax. All modified endowment contracts you
purchase from us and our affiliates during the same calendar year are
treated as a single contract for purposes of determining the amount of any
such income.
o You will generally owe an additional 10% tax penalty on the taxable portion
of the amounts you receive before age 591/2 except if you are disabled or if
the distribution is part of a series of substantially equal periodic
payments for your life (or life expectancy) or the joint lives (or joint
life expectancies) of you and your beneficiary. -The foregoing exceptions
to the 10% -additional tax generally do not apply to a Policy owner that is
a non-natural person, such as a corporation.
o 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
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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.
DIVERSIFICATION
In order for your Policy to qualify as life insurance, we must comply with
certain diversification standards with respect to the investments underlying
the Policy. We believe that we satisfy and will continue to satisfy these
diversification standards. Inadvertent failure to meet these standards may be
able to be corrected. Failure to meet these standards would result in immediate
taxation to Policy owners of gains under their Policy. If Portfolio shares are
sold directly to tax-qualified retirement plans that later lose their
tax-qualified status, or to non-qualified plans, there could be adverse
consequences under the diversification rules.
INVESTOR CONTROL
In some circumstances, owners of variable policies who retain excessive control
over the investment of the underlying Separate Account assets may be treated as
the owners of those assets and may be subject to tax on income produced by
those assets. Although published guidance in this area does not address certain
aspects of the Policies, we believe that the Owner of a Policy should not be
treated as an owner of the assets in our Separate Account. We reserve the right
to modify the Policies to bring them into conformity with applicable standards
should such modification be necessary to prevent Owners of the Policies from
being treated as the owners of the underlying Separate Account assets.
ESTATE, GIFT AND GENERATION-SKIPPING TRANSFER TAXES
The transfer of the Policy or the 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. When the insured dies, the death proceeds will generally be includable
in the Policy owner's estate for purposes of the Federal estate tax if the
Policy owner was the insured, if the insured possessed incidents of ownership
in the Policy at the time of death, or the insured made a gift transfer of the
policy within three years of death. If the Policy owner was not the insured,
the fair market value of the Policy would be included in the Policy owner's
estate upon the Policy owner's death.
Moreover, under certain circumstances, the Internal Revenue Code may impose a
"generation-skipping transfer tax" when all or part of a life insurance policy
is transferred to, or a death benefit is paid to, an individual two or more
generations younger than the Policy owner. Regulations issued under the
Internal Revenue Code may require us to deduct the tax from your Policy, or
from any applicable payment, and pay it directly to the IRS.
Qualified tax advisers should be consulted concerning the estate and gift tax
consequences of Policy ownership and distributions under Federal, state and
local law. 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 transfer and other taxes.
In general, current rules provide for a $5 million estate, gift and
generation-skipping transfer tax exemption (as indexed for inflation) and a top
tax rate of 40 percent.
The complexity of the tax law, along with uncertainty as to how it might be
modified in coming years, underscores the importance of seeking guidance from a
qualified adviser to help ensure that your estate plan adequately addresses
your needs and those of your beneficiaries under all possible scenarios.
WITHHOLDING
To the extent that Policy distributions are taxable, they are generally subject
to withholding for the recipient's Federal income tax liability. Recipients can
generally elect however, not to have tax withheld from distributions.
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LIFE INSURANCE PURCHASES BY RESIDENTS OF PUERTO RICO
In Rev. Rul. 2004-75, 2004-31 I.R.B. 109, the Internal Revenue Service
announced that income received by residents of Puerto Rico under life insurance
contracts issued by a Puerto Rico branch of a United States life insurance
company is U.S.-source income that is generally subject to United States
Federal income tax.
LIFE INSURANCE PURCHASES BY NONRESIDENT ALIENS -AND FOREIGN CORPORATIONS
Purchasers that are not U.S. citizens or residents will generally be subject to
U.S. federal withholding tax on taxable distributions from life insurance
-policies at a 30% rate, unless a lower treaty rate applies. In addition,
purchasers may be subject to state and/or municipal taxes and taxes that may be
imposed by the purchaser's country of citizenship or residence. Prospective
purchasers that are not U.S. citizens or residents are advised to consult with
a qualified tax adviser regarding U.S. and foreign taxation with respect to a
life insurance Policy purchase.
BUSINESS USES OF POLICY
Businesses can use the policies in various arrangements, including nonqualified
deferred compensation or salary continuance plans, split dollar insurance
plans, executive bonus plans, tax exempt and nonexempt welfare benefit plans,
retiree medical benefit plans and others. The tax consequences of such plans
may vary depending on the particular facts and circumstances. As noted, in the
case of a business owned Policy, the provisions of Section 101(j) of the Code
may limit the amount of the Death Benefit excludable from gross income unless a
specified exception applies and a notice and consent requirement is satisfied,
as discussed above. If you are contemplating a change to an existing Policy or
purchasing a Policy for any arrangement the value of which depends in part on
its tax consequences, you should consult a qualified tax adviser.
CHANGES TO TAX RULES AND INTERPRETATIONS
Changes in applicable tax laws, rules and interpretations can adversely affect
the tax treatment of your Policy. These changes may take effect retroactively.
We reserve the right to amend the Policy in any way necessary to avoid any
adverse tax treatment. Examples of changes that could create adverse tax
consequences include:
o Possible taxation of cash value transfers.
o Possible taxation as if you were the owner of your allocable portion of the
Separate Account's assets.
o Possible limits on the number of investment funds available or the frequency
of transfers among them.
o Possible changes in the tax treatment of Policy benefits and rights.
TAX CREDITS AND DEDUCTIONS
The Company may be entitled to certain tax benefits related to the assets of
the Separate Account. These tax benefits, which may include foreign tax credits
and corporate dividend received deductions, are not passed back to the Separate
Account or to Policy owners since the Company is the owner of the assets from
which the tax benefits are derived.
THE COMPANY'S INCOME TAXES
Under current federal income tax law we are not taxed on the Separate Account's
operations. Thus, currently we do not deduct a charge from the Separate Account
for company federal income taxes. (We do deduct a charge for federal taxes from
premiums.) We reserve the right to charge the Separate Account for any future
federal income taxes we may incur. Under current laws we may incur state and
local taxes (in addition to premium taxes). These taxes are not now significant
and we are not currently charging for them. If they increase, we may deduct
charges for such taxes.
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OTHER INFORMATION
The Financial Industry Regulatory Authority ("FINRA") provides background
information about broker-dealers and their registered representatives through
FINRA BrokerCheck. You may contact the FINRA BrokerCheck Hotline at
1-800-289-9999, or log on to www.finra.org. An investor brochure that includes
information describing FINRA BrokerCheck is available through the Hotline or
on-line.
FINANCIAL STATEMENTS
The financial statements of the Separate Account and of MetLife are attached to
this Supplement. Our financial statements should be considered only as bearing
upon our ability to meet our obligations under the Policy.
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