-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, EsDzMoO64jUM5y7e88csc0T/hu2e+gfwxkfPHdCTHVdsGjjk0j8Xd+kLRBYOcPof s1m6vw0++veW+w9agUS1Mg== 0000917677-99-000006.txt : 19990212 0000917677-99-000006.hdr.sgml : 19990212 ACCESSION NUMBER: 0000917677-99-000006 CONFORMED SUBMISSION TYPE: 497 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19990211 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SECURITY LIFE SEPARATE ACCOUNT L1 CENTRAL INDEX KEY: 0000917677 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 840499703 STATE OF INCORPORATION: CO FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 497 SEC ACT: SEC FILE NUMBER: 033-88148 FILM NUMBER: 99529716 BUSINESS ADDRESS: STREET 1: 1290 BROADWAY STREET 2: C/O SECURITY LIFE CENTER CITY: DENVER STATE: CO ZIP: 80203 BUSINESS PHONE: 3038601290 MAIL ADDRESS: STREET 1: 1290 BROADWAY CITY: DENVER STATE: CO ZIP: 80203-5699 497 1 SA II EDBCO SUPPLEMENT SUPPLEMENT DATED FEBRUARY 11, 1999, TO THE PROSPECTUS DATED MAY 1, 1998, FOR STRATEGIC ADVANTAGE II VARIABLE UNIVERSAL LIFE A FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY ISSUED BY SECURITY LIFE OF DENVER INSURANCE COMPANY AND ITS SECURITY LIFE SEPARATE ACCOUNT L1 THIS SUPPLEMENT UPDATES CERTAIN INFORMATION CONTAINED IN YOUR PROSPECTUS. PLEASE READ IT CAREFULLY AND KEEP IT WITH YOUR PROSPECTUS FOR FUTURE REFERENCE. The following information is added to the prospectus under the section headed, "Group or Sponsored Arrangements," page 36. ENHANCED DEATH BENEFIT CORRIDOR OPTION For policies issued under group or sponsored arrangements, with guaranteed issue rates, on or after March 15, 1999, an additional benefit option is available. The policyowner may elect, at any time prior to the issuance of the policy, the enhanced death benefit corridor option. After March 15, 1999, existing group or corporate owners of Strategic Advantage II policies which have guaranteed issue rates, can elect to add this option to their policies if it is added to all existing policies within that issue group. If you would like to do this, you should contact your registered representative/agent or our customer service center for instructions. Requests to add this option to existing policies will be honored if they are received by us or our agent by May 15, 1999. This option generally provides an opportunity for an increased death benefit on the life of the insured person at certain ages. Under death benefit options 1 and 2 the account value is multiplied by a factor shown in Appendix A or B. The result of this calculation is the base death benefit if it exceeds the stated death benefit. Under the enhanced death benefit corridor option, the calculation uses the factor shown on the attached new Appendix A-Enhanced and Appendix B-Enhanced (depending on which definition of life insurance is in effect for your policy). The result of this calculation is then used to determine the base death benefit as described under DEATH BENEFIT OPTIONS, PAGE 20. There is no separate charge for this feature. However, the same account value may generate a higher base death benefit under policies with this option than on policies not electing the option. Cost of insurance charges are based on the net amount at risk, which is the difference between the account value and the base death benefit. Therefore, as a result of the increased death benefit, the cost of insurance charges may be higher for policies electing this option. Your registered representative/agent can provide you with a personalized illustration to show the difference between a policy with this option and one without it. If your policy does not have sufficient account value, electing this option may have no effect on the base death benefit. Adding this option to your policy does not affect the operation of your policy's riders, including the Adjustable Term Rider. When the base death benefit exceeds the stated death benefit, transactions which reduce your account value (such as a partial withdrawal) also reduce the death benefit. The dollar reduction to the death benefit under these circumstances is greater for policies with the enhancement option than on those without the option. Once elected, this option cannot be deleted from your policy. You may lose the benefit of this option if your account value falls below the minimum level needed to keep it in effect. Once elected, this option continues as long as coverage on the original insured person continues. If there is a change of insured person under the right to change insured person rider, the enhanced death benefit corridor option must be elected on the application for the new insured person if you want it to be effective. SEE RIGHT TO CHANGE INSURED RIDER, PAGE 23 AND RIGHT TO EXCHANGE POLICY, PAGE 29. The following change is hereby made to the last sentence of the first full paragraph on page 23 under the section, "Adjustable Term Insurance Rider." "resulting from compliance with the Federal income tax law definition of life insurance test chosen" is deleted. APPENDIX A -- ENHANCED ENHANCED DEATH BENEFIT CORRIDOR FACTORS FOR THE CASH VALUE ACCUMULATION TEST FOR A LIFE INSURANCE POLICY
Attained Male or Unisex | Attained Male or Unisex Age Unisex 100/0 (I) Female 80/20 (II) | Age Unisex 100/0 (I) Female 80/20 (II) -------- ---------------- ------ ---------- | -------- ---------------- ------ --------- 0 11.727 14.234 12.149 | 36 3.920 4.586 4.037 1 11.785 14.209 12.194 | 37 3.793 4.437 3.906 2 11.458 13.815 11.857 | 38 3.670 4.293 3.780 3 11.128 13.417 11.515 | 39 3.553 4.154 3.658 4 10.803 13.023 11.178 | 40 3.439 4.021 3.541 5 10.481 12.635 10.845 | 41 3.330 3.894 3.429 6 10.161 12.253 10.514 | 42 3.226 3.771 3.322 7 9.844 11.875 10.187 | 43 3.125 3.654 3.218 8 9.530 11.505 9.863 | 44 3.028 3.541 3.119 9 9.221 11.141 9.545 | 45 2.936 3.432 3.023 10 8.918 10.784 9.233 | 46 2.846 3.328 2.931 11 8.623 10.436 8.928 | 47 2.761 3.227 2.843 12 8.338 10.098 8.634 | 48 2.678 3.129 2.758 13 8.066 9.771 8.353 | 49 2.599 3.035 2.676 14 7.808 9.455 8.085 | 50 2.522 2.945 2.597 15 7.564 9.150 7.831 | 51 2.449 2.858 2.522 16 7.335 8.857 7.592 | 52 2.378 2.774 2.449 17 7.118 8.575 7.364 | 53 2.311 2.693 2.379 18 6.911 8.302 7.148 | 54 2.246 2.615 2.312 19 6.713 8.038 6.939 | 55 2.184 2.540 2.248 20 6.521 7.782 6.737 | 56 2.125 2.468 2.187 21 6.334 7.534 6.540 | 57 2.068 2.398 2.128 22 6.150 7.293 6.347 | 58 2.014 2.330 2.071 23 5.969 7.059 6.158 | 59 1.962 2.265 2.017 24 5.791 6.831 5.971 | 60 1.912 2.201 1.965 25 5.615 6.611 5.788 | 61 1.864 2.139 1.915 26 5.441 6.396 5.608 | 62 1.818 2.079 1.867 27 5.271 6.188 5.431 | 63 1.774 2.022 1.821 28 5.104 5.986 5.258 | 64 1.732 1.967 1.777 29 4.940 5.791 5.089 | 65 1.692 1.914 1.735 30 4.781 5.601 4.925 | 66 1.654 1.863 1.695 31 4.626 5.418 4.765 | 67 1.617 1.815 1.657 32 4.476 5.241 4.610 | 68 1.583 1.769 1.620 33 4.330 5.069 4.459 | 69 1.550 1.724 1.585 34 4.188 4.902 4.314 | 70 1.518 1.681 1.552 35 4.052 4.742 4.173 |
APPENDIX A -- ENHANCED (CONT.) ENHANCED DEATH BENEFIT CORRIDOR FACTORS FOR THE CASH VALUE ACCUMULATION TEST FOR A LIFE INSURANCE POLICY Attained Male or Unisex Age Unisex 100/0 (I) Female 80/20 (II) -------- ---------------- ------ ---------- 71 1.503 1.655 1.535 72 1.488 1.631 1.519 73 1.475 1.607 1.504 74 1.462 1.585 1.490 75 1.451 1.564 1.477 76 1.441 1.545 1.466 77 1.432 1.527 1.455 78 1.424 1.510 1.445 79 1.416 1.495 1.436 80 1.409 1.480 1.428 81 1.378 1.440 1.395 82 1.348 1.402 1.363 83 1.319 1.366 1.333 84 1.291 1.332 1.304 85 1.265 1.300 1.276 86 1.241 1.270 1.250 87 1.216 1.241 1.225 88 1.194 1.214 1.201 89 1.172 1.188 1.178 90 1.151 1.163 1.155 91 1.141 1.150 1.144 92 1.131 1.137 1.133 93 1.120 1.125 1.122 94 1.109 1.112 1.110 95 1.097 1.098 1.097 96 1.083 1.084 1.084 97 1.069 1.069 1.069 98 1.054 1.054 1.054 99 1.040 1.040 1.040 100 1.000 1.000 1.000 APPENDIX B -- ENHANCED ENHANCED DEATH BENEFIT CORRIDOR FACTORS FOR THE GUIDELINE PREMIUM/CASH VALUE CORRIDOR TEST FOR A LIFE INSURANCE POLICY Attained Attained Attained Attained Age Factor Age Factor Age Factor Age Factor 0 2.500 25 2.500 50 1.850 75 1.103 1 2.500 26 2.500 51 1.780 76 1.113 2 2.500 27 2.500 52 1.710 77 1.124 3 2.500 28 2.500 53 1.640 78 1.134 4 2.500 29 2.500 54 1.570 79 1.145 5 2.500 30 2.500 55 1.500 80 1.155 6 2.500 31 2.500 56 1.460 81 1.145 7 2.500 32 2.500 57 1.420 82 1.134 8 2.500 33 2.500 58 1.380 83 1.124 9 2.500 34 2.500 59 1.340 84 1.113 10 2.500 35 2.500 60 1.300 85 1.103 11 2.500 36 2.500 61 1.280 86 1.092 12 2.500 37 2.500 62 1.260 87 1.082 13 2.500 38 2.500 63 1.240 88 1.071 14 2.500 39 2.500 64 1.220 89 1.061 15 2.500 40 2.500 65 1.200 90 1.050 16 2.500 41 2.430 66 1.190 91 1.040 17 2.500 42 2.360 67 1.180 92 1.030 18 2.500 43 2.290 68 1.170 93 1.020 19 2.500 44 2.220 69 1.160 94 1.010 20 2.500 45 2.150 70 1.150 95 1.000 21 2.500 46 2.090 71 1.141 96 1.000 22 2.500 47 2.030 72 1.132 97 1.000 23 2.500 48 1.970 73 1.123 98 1.000 24 2.500 49 1.910 74 1.113 99 1.000 100 1.000 THE POLICY'S BASE DEATH BENEFIT AT ANY TIME WILL BE AT LEAST EQUAL TO THE ACCOUNT VALUE TIMES THE APPROPRIATE FACTOR FROM THIS TABLE. -----END PRIVACY-ENHANCED MESSAGE-----