Highlights
- Flexible life insurance coverage that enables you to tailor your policy with flexible premium payments: You can pay more than your planned premium, less or, sometimes, no premium at all.
- Ability to increase or decrease coverage (increases are subject to underwriting; decreases may be subject to surrender charges), add or delete riders and change options.
- Tax-deferred accumulation/tax-free transfers among a variety of Investment Divisions.
- Favorable tax advantages-the death benefit may be excluded from the gross income of the beneficiary's income for federal income tax purposes.
- Access to cash surrender value through loans and/or withdrawals.1
- 27 Investment Divisions and a Fixed Account.
- 3-Year No Lapse Guarantee (minimum premium payment required).2
- Available on a non-qualified basis or within a qualified profit-sharing plan.
- Quarterly statements provided summarizing important facts about your policy.
- Convenient access to policy information through a toll-free "800" number, available 7 days a week, 24 hours a day.
Issue Ages
0-80
Face Amounts
Minimum: $50,000
Maximum: Subject to Company
limits
Band Breaks
$250,000
$1,000,000
$5,000,000
Band breaks are designated policy face amounts where a discounted cost of insurance rate per thousand may apply. To determine a policy's band, the face amount of the primary insured's base plan and term riders3 are combined. Costs of Insurance (COI) charges per thousand vary by band. Generally, the greater the coverage amount, the lower the monthly COI factor used in calculating the base and term monthly deductions.
Face Amount Increases
Minimum: $5,000
Partial Withdrawals
Minimum: $500
Loan Interest Rate4
6.0% (payable in arrears)
Interest Credited on Borrowed Cash Value4
5.0 % policy years 1-10
5.5% policy years 11 and subsequent
Underwriting Classes
Select Preferred (available
at $500,000 face amount)
Preferred (available at $100,000 face amount)
Non-smoker
Select Standard
Standard
Non-Smoker
Standard Special Classes 2-13
Premium Modes
Annual, Semi-annual,
Quarterly, Check-O-Matic, List Bill
Life Insurance Qualification Test
You can choose
either the Guideline Premium Test (GLP) or
Cash Value Accumulation Test (CVAT)5
You have a choice of three life insurance benefit options:
- Option 1
Provides a level life insurance benefit equal to the policy's face amount. - Option 2
Provides a variable life insurance benefit that equals the sum of the policy's face amount and cash value. - Option 36
Provides a variable life insurance benefit that varies and equals the sum of your policy's face amount plus the total premiums paid, less any partial withdrawals.
No matter what option you choose, a higher Life Insurance Benefit will apply if necessary to qualify as life insurance under Section 7702 of the Internal Revenue Code.
Investment Options
The NYLIAC Variable Universal Life 2000 policy7
offers a variety of investment options. You
allocate your premium payments to achieve
your financial objectives. You can select up to
a maximum of 21 Investment Options, including
the Fixed Account at one time.
Fixed Account
- Minimum guaranteed interest rate is 3%.
- The current interest rate is set by NYLIAC and is subject to change daily. Interest rates will be set in advance and become effective no later than the next day. All amounts (including any applied to or transferred to the Fixed Account) receive the current interest rate. Different rates may apply to loaned and unloaned funds.
Transfers
Your personal financial objectives can change,
and your NYLIAC VUL 2000 policy can change
with you. Transfers between Investment
Divisions are easy and generally tax-free.
There is no limit on the amount of money you can transfer between Investment Divisions.8 The minimum amount of a transfer from an Investment Division or the Fixed Account is the lesser of $500 or the total value of the Accumulation Unit in the Investment Division from which the transfer is being made.
Limits apply to the maximum amount that can be transferred to and/or from the Fixed Account.
Loans
The maximum loan can never exceed 90% of
the policy's cash surrender value (cash value
less surrender charges, any additional contract
charge in the first Policy Year, unpaid loan
principal, and accrued loan interest). Other
limits and conditions apply. Consult the
prospectus for details. Loans will reduce the
policy's cash value and death benefit.
Partial Withdrawals
The minimum available for withdrawal is $500,
which is deducted from the policy's cash surrender
value (cash value less any surrender
charges, any additional contract charge in the
first Policy year, unpaid loan and accrued loan
interest). A fee equal to the lesser of $25 or 2%
of the amount withdrawn will apply.
Withdrawals will reduce the policy's cash value
and death benefit.
Deductions From Premium
Premium charges are deducted from all
planned and unplanned premium payments.
These charges include:
| Monthly Contract Charge |
Current | Guaranteed Maximum |
|
Sales Expense Charge Up to Surrender Charge Premium9 |
2.75% | 4.75% |
|
Over Surrender Charge Premium9 |
1.25% | 4.75% |
| State Tax Charge | 2.00% | may vary* |
| Federal Tax (DAC)10 | 1.25% | may vary* |
*There is no stated maximum; these rates may change as tax laws change.
Deductions From Cash Value
The following charges are deducted from the
policy's cash value.
| Monthly Contract Charge |
Current | Guaranteed Maximum |
| First Policy Year | $30 | $31 |
| Subsequent Policy Years | $10 | $11 |
Cost of Insurance Charges
Cost of Insurance Charges are deducted
monthly for the base plan as well as any riders.
Actual costs depend on the insured's issue
age, gender, underwriting class, and face
amount, as well as the duration since issue.
Separate Account Administrative Charge
This is a monthly administrative charge based
on the cash value in the Separate Account.
It is not assessed on any cash value held
in the Fixed Account.
|
Separate Account Cash Value |
Current Separate Account
Administrative Charge11 (on an annual basis) |
| Less than $10,000 | 0.20% |
| $10,000 - $19,999.99 | 0.15% |
| $20,000 - $29,999.99 | 0.10% |
| $30,000 - $49,999.99 | 0.05% |
| $50,000 or More | 0.00% |
| Charges | Current | Guaranteed Maximum |
| Mortality and Expense Risk Charge12 |
0.50% | 0.80% |
Annual Fund Expenses
Consult the prospectus for a breakdown of the
Investment Divisions' total annual expenses.
Surrender Charges
If you surrender the policy or decrease the
face amount during the first 15 policy years, or
within 15 years after a face amount increase, a
surrender charge will be deducted from the
cash value. (This includes decreases in face
amount resulting from changing the Life
Insurance Benefit Option from Option 1 to
Option 2 or from a partial withdrawal on an
Option 1.)
Surrender charges are calculated as the lesser of 50% of the total premiums paid less the cumulative monthly contract charges actually incurred for the first three policy years, or a percentage of the Surrender Charge Premium. (Surrender Charge Premium and percentage applied are shown on the Policy Data Page. This percentage grades down during the 15- year surrender charge period.)
Policy Features
Automatic Asset Reallocation
Maintain a pre-selected
percentage in the Division(s) you have
selected. Automatic Asset Reallocation is available
on any policy with cash value of $2,500
or more.13 A minimum cash value of $2,00013 is
required for any subsequent reallocations.
Dollar Cost Averaging
Invest money gradually
without the added concern of trying to "time
the market." Dollar Cost Averaging is available
on any policy with cash value of $2,500 or
more.13
NYLIAC will automatically transfer money from any Investment Division, or to other Investment Divisions or the Fixed Account, on a monthly, quarterly, semi-annual, or annual basis, as directed by the policyowner. Transfers from the Fixed Account are not eligible for this program. You specify how much money to transfer to, from where, and how often. Each transfer will be confirmed in a statement detailing the transaction( s).
Dollar Cost Averaging does not assure a profit or protect against loss in declining markets. It involves continuous investing regardless of price levels, so you should consider your financial ability to continue purchasing during periods of low price levels.
Dollar Cost Averaging cannot be used with Automatic Asset Reallocation, but you can alternate between the two features.
Expense Allocation
Choose how to allocate the
monthly deduction charges.14 You can instruct
that the cash value charges be deducted from
the MainStay VP Cash Management Investment
Division, the Fixed Account, or both.
If the value in either or both accounts you
have designated is insufficient to pay the
charges, we will deduct as much of the charges
as possible, and the remainder will be deducted
proportionately from each of the Investment
Divisions.
Interest Sweep
You direct that we periodically
transfer any interest earned in the Fixed
Account to the Investment Division(s) you
specify. To elect this option, the cash value of
the Fixed Account must be at least $2,500.
You can specify the starting date, the frequency
of the transfers, and the percentages to be
transferred to each Investment Division.
Interest Sweep is available with either Dollar
Cost Averaging or Automatic Asset Reallocation
and the Expense Allocation feature. If you
choose both Interest Sweep and Expense
Allocation, all policy expenses will be deducted
from the MainStay VP Cash Management
Investment Division.
Available Riders
You can customize your policy by choosing
from a variety of policy riders designed to
meet your individual needs. These riders are
subject to state availability. Details on each
rider, including costs, can be found in the
prospectus.
Policyowner Services
Quarterly Statements
You will receive quarterly
statements that provide the following information:
- Account activity for the prior quarter;
- Current values for the policy; and
- Current interest rate breakdown of the amount in the Fixed Account.
Virtual Service Center
The Virtual Service
Center is available
Monday through Saturday from 7 AM to 10 PM.
- E-mail your registered representative or the Variable Product Center;
- Obtain current policy values;
- Change the allocation of future premium payments;
- Change your address; and
- Obtain service form.
(800) 598-2019: Using our toll-free customer service line, 7 days a week, 24 hours a day, you have access to your policy information and can effect transactions on your policy:
- Accumulation unit values for the Investment Divisions;
- Policy cash value and surrender value;
- Cash value of each of the Investment Divisions and the Fixed Account;
- Current interest rate on the Fixed Account;
- Transfer amounts among Investment Divisions;
- Reallocate future premium payments; and
- Request loans against your policy's cash value.
You will receive a confirmation notice whenever you make a:
- Premium payment (other than Check-O-Matic/EFT),
- Transfer
- Withdrawal
- Loan or loan repayment
For more complete information and to obtain a product and fund prospectus, please contact your Registered Representative. Investors are asked to consider the investment objectives, risks, charges, and expenses of the investment carefully before investing. Both the product prospectus and the underlying fund prospectuses contain this and other information about the product and underlying investment options. Please read the prospectus carefully before investing.
Issued by New York Life Insurance and Annuity Corporation (A Delaware Corporation)
Distributed by NYLIFE Distributors LLC.
Member NASD
Securities offered through properly licensed Registered Representatives of NYLIFE Securities Inc. (Member NASD/SIPC).
New York Life Insurance Company
New York Life Insurance and Annuity
Corporation (A Delaware Corporation)
51 Madison Avenue
New York, NY 10010
13849(03/04) SMRU 00276438CV(03/04)
1. Loans and withdrawals will reduce the policy's cash value and death benefit.
2. Not available in New Jersey and Texas.
3 Includes Other Covered Insured rider.
4 The loan interest rate and interest crediting rates are not guaranteed and are subject to change without notice. The maximum loan interest rate is 8%.
5 Under Section 7702 of the Internal Revenue Code, a policy will generally be treated as life insurance for federal tax purposes if at all times it meets either (1) a "guideline premium" test or (2) a "cash value accumulation" test. In general, the cash value accumulation test will allow you to make higher premium payments during the policy's early years. The guideline premium test may allow you to maintain a higher cash value in relation to the Life Insurance Benefit. You must choose either the guideline premium test or the cash value accumulation test before the policy is issued. Once the policy is issued, you may not change to a different test.
6 Can only be elected at issue.
7 Issued by New York Life Insurance and Annuity Corporation (A Delaware Corporation).
8 We reserve the right to charge for each transfer after the first 12 transfers in a policy year. Transfers under the Dollar Cost Averaging, Automatic Asset Reallocation, and Interest sweep options will not count toward the yearly 12 transfer limit. However, transfers from the Fixed Account to the Investment Divisions in a policy year cannot exceed the greater of 20% or $5,000.
9 Surrender Charge Premium is based on the issue age, gender, underwriting class, and the base policy's face amount.
10 Not applicable on qualified plans.
11 Guaranteed maximum Separate Account Administrative Charge is 0.20%.
12 A monthly charge deducted from the policy's cash value allocated to the Investment Divisions.
13 The cash value requirement is exclusive of money in the Fixed Account.
14 Separate account expenses are not included.
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