EX-1.A.(5)(A)(I) 6 apm_adjtermins.htm ADJ TERM INS RIDER Adjustable Term Insurance Rider

Exhibit 1.A.(5)(a)(i)

ADJUSTABLE TERM INSURANCE RIDER

This rider is a part of the policy to which it is attached if this rider is shown in the Schedule. This rider must be read with all policy provisions. This rider does not participate in our surplus earnings. The insured under this rider is listed in the Schedule. This rider has no loan value. There is no surrender charge applicable to this rider. The rider effective date is the policy date or, if added later, the monthly processing date on or next following the date your application for this rider is approved by us. The owner of this policy is the owner of this rider.

DEATH BENEFIT. Subject to this rider's terms, we will pay the term death benefit in force on the date of the insured's death. This benefit is payable to the beneficiary.

The amount of term death benefit is the difference between the total death benefit and the base death benefit provided by the policy. Total death benefit depends on which death benefit option is in effect.

      Option 1: If option 1 is in effect, the total death benefit is the greater of:
  1. the target death benefit; or
  2. the account value multiplied by the appropriate factor from the Death Benefit Factors shown in the Schedule.
      Option 2: If option 2 is in effect, the total death benefit is the greater of:
  1. the target death benefit plus the account value; or
  2. the account value multiplied by the appropriate factor from the Death Benefit Factors shown in the Schedule.
      Option 3: If option 3 is in effect, the total death benefit is the greater of:
  1. the target death benefit plus premiums paid less withdrawals, or
  2. the account value multiplied by the appropriate factor from the Death Benefit Factors shown in the Schedule.

In no event will the term death benefit be less than zero. It is also not increased or decreased by policy loan activity.

In your application for this rider you may request a pattern of increasing or decreasing target death benefits. The actual target death benefit is subject to our approval.

The target death benefit is shown in the Schedule attached to your policy. It may be a constant amount or it may change at the beginning of a policy year. The target death benefit may be reduced if there is a partial withdrawal. If a partial withdrawal reduces the stated death benefit, the target death benefit for the current year and all future years will be reduced by an amount equal to the reduction in the stated death benefit. You will receive a new Schedule reflecting the new target death benefit. See your policy for details. The stated death benefit is defined in your policy.

Any requested decreases in the stated death benefit in the policy will eliminate any future scheduled increases in the target death benefit. We may choose not to eliminate these increases upon submission of evidence satisfactory to us that the insured is still insurable according to our normal rules of underwriting for the current premium class.



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COST OF INSURANCE. The cost of insurance for this rider is determined on a monthly basis. The cost is added to the policy's monthly deduction from the account value as of each monthly processing date until this rider terminates. The cost of insurance rates will be determined by us from time to time. They will be based on the issue age and premium class of the insured as well as the duration since the rider effective date. The cost of insurance for this rider is calculated as the monthly cost of insurance rate multiplied by the death benefit (in thousands) for this rider. The monthly guaranteed maximum cost of insurance rates per $1,000 for this rider are shown in the Schedule on the applicable table of guaranteed rates attached to your policy.

INCONTESTABILITY. After this rider has been in force while the insured is alive for two years from the rider effective date, we will not contest the statements in the application for this rider attached at the time the rider is issued.

After this rider has been in force while the insured is alive for two years from the effective date of any increase in the amount of insurance, we will not contest the statements in the application for the increase.

After this rider has been in force while the insured is alive for two years from the effective date of any reinstatement of this rider, we will not contest the statements in the application for such reinstatement of this rider.

SUICIDE EXCLUSION. If the policy terminates for suicide, this rider will then terminate without value.

If the insured commits suicide, while sane or insane, within two years of the rider effective date and the policy is not terminated due to this suicide, we will terminate this rider and make a limited payment to the beneficiary for the rider. We will pay in one sum the amount of the cost of insurance for this rider which was deducted from the policy.

If the insured commits suicide, while sane or insane, within two years of the effective date of an increase and the policy is not terminated due to this suicide, we will terminate the increase and pay the cost of insurance associated with the increase.

MISSTATEMENT OF AGE OR GENDER. If the insured's age or gender has been misstated, the death benefit will be adjusted . The death benefit will be that which the cost of insurance which was deducted from the policy value on the last monthly processing date prior to the death of the insured would have purchased for the insured's correct age or gender.

CHANGE IN AMOUNT OF COVERAGE. The target death benefit under this rider may be increased or decreased by sending a written request to our Customer Service Center. Decreases are not allowed before the first rider anniversary. You may request an increase on the first monthly processing date following the effective date of this rider. Any request for increased death benefits will automatically be an increase to the stated death benefit as well as to the target death benefit unless you specifically request an increase only to the target death benefit. You may increase or decrease the target death benefit only once each policy year. You may not increase insurance coverage provided by this rider after attained age 85 (after attained age 75 when this policy is issued as part of a group or sponsored plan). Any change in coverage may not be for an amount less than $1,000. Such change is subject to the following conditions:



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  1. Any requested decrease in target death benefit is subject to our approval. Our approval may be conditioned on eliminating any future increases to the target death benefit that are shown in the Schedule.
  2. Any request for an increase must be applied for on a supplemental application. The increase is subject to evidence satisfactory to us that the insured is still insurable according to our normal rules of underwriting for the current premium class for this type of rider. If there is no change in premium class, the increase will be processed.
  3. For any increase or addition to coverage, the effective date will be the monthly processing date that falls on or next follows the date the supplemental application is approved by us. For any decrease in coverage, the effective date will be the monthly processing date that fall on or next follows receipt of the written request to reduce coverage.
  4. Any decrease in the total death benefit will first reduce adjustable term insurance before stated death benefit is reduced.

For any change in coverage, a supplemental Schedule will be issued.

TERMINATION. This rider will terminate on the earliest of the following dates:

  1. Expiration of the grace period of the policy.
  2. Termination or surrender of the policy.
  3. Receipt by us of a written request from you to cancel this rider on any monthly processing date.
  4. Policy anniversary nearest the insured's 100th birth date.
  5. When the policy to which this rider is attached is kept in force under the Guaranteed Minimum Death benefit option.

Any deduction for the cost of insurance after termination of this rider will not be considered a reinstatement of this rider nor a waiver by us of the termination. Any such deduction will be credited to the account value of the policy as of the date of the deduction.

REINSTATEMENT. If you reinstate your policy under the Reinstatement provision in the policy, this rider will be reinstated.

Signed for the company at Denver, Colorado

SECURITY LIFE OF DENVER INSURANCE COMPANY

     SECRETARY

 



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ADJUSTABLE TERM INSURANCE RIDER SCHEDULE
TABLE OF TARGET DEATH BENEFITS AND GUARANTEED MONTHLY MAXIMUM COST
OF TERM INSURANCE RATES PER $1,000 OF INSURANCE

POLICY YEAR TARGET DEATH BENEFIT GUARANTEED MONTHLY RATES POLICY YEAR TARGET DEATH BENEFIT GUARANTEED MONTHLY RATES
0 150,000.00 0.43602 28 150,000.00 0.17753
1 150,000.00 0.11168 29 150,000.00 0.17837
2 150,000.00 0.10334 30 150,000.00 0.18003
3 150,000.00 0.10251 31 150,000.00 0.18587
4 150,000.00 0.09918 32 150,000.00 0.19087
5 150,000.00 0.09418 33 150,000.00 0.19921
6 150,000.00 0.09001 34 150,000.00 0.20838
7 150,000.00 0.08334 35 150,000.00 0.22005
8 150,000.00 0.07917 36 150,000.00 0.23339
9 150,000.00 0.07751 37 150,000.00 0.25006
10 150,000.00 0.07584 38 150,000.00 0.26924
11 150,000.00 0.08001 39 150,000.00 0.29092
12 150,000.00 0.08834 40 150,000.00 0.31510
13 150,000.00 0.10334 41 150,000.00 0.34262
14 150,000.00 0.12001 42 150,000.00 0.37097
15 150,000.00 0.13835 43 150,000.00 0.40350
16 150,000.00 0.15752 44 150,000.00 0.43686
17 150,000.00 0.17420 45 150,000.00 0.47439
18 150,000.00 0.18587 46 150,000.00 0.51276
19 150,000.00 0.19420 47 150,000.00 0.55447
20 150,000.00 0.19837 48 150,000.00 0.59869
21 150,000.00 0.19921 49 150,000.00 0.64709
22 150,000.00 0.19671 50 150,000.00 0.69966
23 150,000.00 0.19420 51 150,000.00 0.76141
24 150,000.00 0.19004 52 150,000.00 0.82985
25 150,000.00 0.18420 53 150,000.00 0.90832
26 150,000.00 0.18003 54 150,000.00 0.99683
27 150,000.00 0.17837 55 150,000.00 1.09202

 



ADJUSTABLE TERM INSURANCE RIDER SCHEDULE
TABLE OF TARGET DEATH BENEFITS AND GUARANTEED MONTHLY MAXIMUM COST
OF TERM INSURANCE RATES PER $1,000 OF INSURANCE

POLICY YEAR TARGET DEATH BENEFIT GUARANTEED MONTHLY RATES POLICY YEAR TARGET DEATH BENEFIT GUARANTEED MONTHLY RATES
56 150,000.00 1.19559      
57 150,000.00 1.30253      
58 150,000.00 1.41784      
59 150,000.00 1.54070      
60 150,000.00 1.67781      
61 150,000.00 1.83085      
62 150,000.00 2.00317      
63 150,000.00 2.19899      
64 150,000.00 2.41666      
65 150,000.00 2.65537      
           
           

REFER TO YOUR RIDER FOR MORE INFORMATION.