ViaMax UL International

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ViaMax UL International is flexible premium, adjustable universal life insurance with these features:

• four underwriting classes
• policy maturity at age 100
• 4% guaranteed interest rate in years 1-10, 4.5% in years 11-plus
• 7 year no-lapse guarantee
• low-cost loans
• 15-year surrender charge

Issue Amounts
Minimum $50,000
Maximum $5,000,000
Higher amounts are subject to company approval and the availability of reinsurance.

Underwriting Classes
Class 1 - Preferred non-tobacco user - Applicants who have not used tobacco in any form in the past two years and meet the "preferred" criteria requirements for this class.

Class 2 - Standard non-tobacco user - Applicants who have not used tobacco in any form in the past 12 months and do not meet the "preferred" criteria. This class includes substandard risks for the non-tobacco user classes, including no nicotine in the urine.

Class 3 - Preferred tobacco user - Applicants who use tobacco in any form and meet the "preferred" criteria for this product.

Class 4 - Standard tobacco user - Applicants who do not qualify for any of the other classes. This includes substandard risks for the tobacco user classes.

Product Features

Death Benefit
The client has two death benefit options: level and increasing.

• Under the level death benefit option (Option 1), the gross cash value is included in the specified (or face) amount. The death benefit is the greater of: 1) the specified amount, or 2) the applicable percentage of the gross cash value on the date of death. (See table)
• Under the increasing death benefit option (Option 2), the gross cash value is separate from the specified amount. The death benefit is the greater of: 1) the specified amount plus the gross cash value on the date of death, or 2) the applicable percentage of the gross cash value on the date of death.

Options can be changed after policy issue. A change from Option 1 to Option 2 requires evidence of insurability.

Increases and Decreases inSpecified Amount
Increases in the specified amount are permitted after the first contract year. The minimum increase amount is $25,000. Increases are fully underwritten. The rate classification of the increase may vary from that of the original policy. Increases in the specified amount result in a new surrender charge schedule and an increase in the basic monthly premium. Additional loan repayment also may be necessary.

To determine the net amount at risk after an increase, the cash value will be applied first to the base plan, then to the increase segment. Decreases in specified amount also are permitted after the first policy year. If surrender charges remain at the time of the decrease, a decrease charge will be calculated on a pro-rata basis. The basic monthly premium will be reduced to reflect the reduced level of the specified amount. The minimum decrease amount is $5,000, and no decrease will be permitted if the total specified amount remaining would be less than $50,000. CNA will not process any request for a decrease which, when combined with the decrease charge, will result in a negative cash value.

Premiums

Minimum Premiums
Minimum premiums are structured to produce a positive surrender value after seven years, based on current assumptions and 4% interest. If the specified amount is increased, there is an increase in the minimum premium.

This premium will also increase if a rider is added, and will decrease if the specified amount is decreased.

Commissionable Target Premiums
The commissionable target premium (shown as "target premium" in the rate charts and "TP" on the illustration) is the amount on which CNA will pay full first-year commissions. Premiums paid above target, and after the first year, will be commissioned at the "excess" rate.

No-Lapse Guarantee
Under our seven-year no-lapse guarantee provision, the policy will not lapse during the first seven policy years as long as the no-lapse guarantee minimum monthly premiums are paid. Loans and surrenders will affect the premium amount required.

Gross Cash Value
The policy's gross cash value equals net premiums paid:

• minus Cost of Insurance (COI) and monthly expense charges,
• minus partial surrenders and surrender charges,
• minus decrease charges (if any), and
• plus interest.

Interest Rates
Interest accumulates at a competitive rate, guaranteed never to be less than 4% in years 1-10, 4.5% in years 11 and beyond. Gross cash value securing a standard policy loan earns interest at the guaranteed rate. Unborrowed cash value earns interest at the current crediting interest rate. Interest will be credited on a new money/old money basis. New premiums may earn interest at a different rate than existing accumulated cash value.

Interest Bonuses
A renewal interest bonus of 50 basis points (0.50%) is paid in years 11 and beyond. The bonus is guaranteed. Bonus interest will not be paid on loaned cash value. The renewal bonus is reflected in the guaranteed rates shown.

Loads and Fees

Premium Loads
A 4% premium load is assessed during the first 10 years, and a 2% premium load is assessed in years 11 through 20. There is no premium load in years 21 and later.

Monthly Policy Fee
A $10 monthly policy fee is assessed in all years. This fee is built into the rates for the target premium, but is not built into the rates for the minimum premium.

Monthly Deductions From Gross Cash Value
Each month, CNA will deduct from the gross cash value:

• the mortality costs for the base plan (COIs),
• the cost of insurance for any riders, and
• the monthly policy fee ($10 in all years).

Partial Surrenders
Partial surrenders are permitted after the first policy year if there is sufficient cash value. A partial surrender charge will apply. An adjusted surrender charge will apply to the remaining cash value. ViaMax UL International has a 15-year surrender charge scale which grades down until it reaches zero at the end of the 15 th policy year. If death benefit Option 1 is in force, the amount of cash surrendered will be deducted from the specified amount at the time of surrender. After the partial surrender, the specified amount may not be less than $50,000.

Policy Loans
Loans are available whenever the policy has sufficient cash surrender value to back them. The interest rate is fixed at 6%, payable in arrears. Interest on cash surrender value backing the loans will be credited at 4% in all years.

The maximum loan equals the gross cash value:

• minus any surrender charges,
• minus loan interest to the next anniversary, and

minus the monthly deductions required to keep the policy in force through its next anniversary. Interest is compounded yearly, charged in arrears. Interest is due on the last day of each policy year. If interest is not paid, an amount equal to the interest due will be added to the loan balance.

Riders to ViaMax UL International

Spouse Rider
Available at or after issue, this term rider offers level death benefit coverage renewable annually until the spouse is 75 and convertible until the spouse is 65. The rider is also convertible in the event of the death of the base plan insured. Underwriting for the Spouse Rider is based on an accept/reject structure.

• Minimum issue age of insured's spouse: 18
• Maximum issue age of insured's spouse: 55
• Minimum issue amount: $10,000
• Maximum issue amount: Based on face amount of the primary insured's base policy

Maximum amount is subject to the availability of reinsurance.

Waiver of Monthly Deduction Rider
This rider helps insureds keep their coverage if they become disabled. Under the rider, CNA will waive an amount equal to the policy's monthly deduction if the insured is totally disabled for more than six continuous months. If total disability begins before the insured is age 55, CNA will waive the benefit amount for as long as total disability lasts. If total disability begins between 55 and 60, CNA will waive the benefit amount for the greater of two years or to age 60.

• Minimum issue age: 18
• Maximum issue age: 55

The waiver benefit does not apply to coverage over $3,000,000. This rider is available at issue only.

Accidental Death Benefit Rider (ADB)
The Accidental Death Benefit Rider provides protection if death occurs within 365 days after an accident. Death must be the result of injuries sustained in the accident. The minimum issue amount is $50,000. The maximum issue amount is the lesser of twice the base policy face amount or $300,000. The combined accidental death benefit for both the ADB and ADD riders cannot exceed $300,000 or two times the face amount, whichever is less. The rider is available at issue only. Premiums are level and payable until the rider expires at the policy anniversary nearest the insured's 65 th birthday.

• Minimum Issue Age: 18
• Maximum Issue Age: 60

Accidental Death and Dismemberment Rider (ADD)
The Accidental Death and Dismemberment Rider provides protection if death or dismemberment occurs within 365 days after an accident. Death or dismemberment must be the result of injuries sustained in the accident.

The rider pays the following percentage of the rider benefit if the insured dies or suffers total loss from these disabilities:

100% Death

100% On the total loss of :

• sight of both eyes,
• both arms or both hands,
• both legs or both feet, or
• one hand and one foot

50% On the total loss of:

• sight of one eye,
• complete hearing of both ears,
• one arm or one hand, or
• one leg or one foot

25% On the total loss of:

• the thumb and index finger of one hand, or
• the complete hearing in one ear

100% For an accident not provided above which will cause the insured:

• total loss or weakening of his/her physical or intellectual strength AND
• the loss of at least 80% of his/her labor capacity

Total benefits resulting from one or more accidents may not exceed 100% of the benefit.

The minimum issue amount is $50,000. Maximum issue amount is the lesser of twice the base policy face amount or $300,000. The combined accidental death benefit for both the ADB and ADD riders cannot exceed $300,000. Premiums are level and payable until the rider expires at the policy anniversary nearest the insured's 65 th birthday. The rider is available at issue only.

• Minimum Issue Age: 18
• Maximum Issue Age: 60

Premium Calculations

Premium Modes
Annual, semi-annual, quarterly and monthly pre-authorized premium payment modes are available. There is no additional charge for monthly, quarterly or semi-annual payments. To implement a pre-authorized premium payment plan, your client must submit a payment for two monthly premiums, a voided check and the pre-authorized premium payment form.

For payments other than annual, divide the annual premium amount by the factors below:

Sample Premium Calculation
Male, age 40, class 3, from Guyana (Category C).
$250,000 base coverage.
Minimum premium for 7-year no-lapse guarantee.
Waiver of Monthly Deduction Rider.
Quarterly payment mode.

Lapses, Full Surrenders and Reinstatements

Surrender Charge
ViaMax UL International has a 15-year surrender charge scale which grades down until it reaches zero at the end of the 15 th policy year. The charge applies to full or partial surrenders.

Insufficient Cash Surrender Value
If, after the no-lapse guarantee period, the cash surrender value on any monthly deduction day is insufficient to cover the monthly deduction for the next month, the policy will terminate, after a grace period.

Grace Period
A grace period of 61 days will be granted for the payment of a premium sufficient to keep the policy in force until the next billing date. Notice of this amount will be mailed to the owner's last known address. If the premium is not paid within the grace period, all coverage under the policy will terminate without value at the end of the 61 days. However, termination will not occur if the policy is being continued under a no-lapse guarantee.

Reinstatements
If the policy terminates, the owner may reinstate it any time within three years after the date of termination and before the maturity date. Reinstatement requires:

• evidence of insurability,
• enough cash to re-establish a positive cash surrender value,
• an amount that will cover the next two months' cost of insurance deductions, and
• underwriting approval.

The effective date of reinstatement will be the next monthly deduction day.