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Document Preview Flexible Premium Variable Life Insurance Policy |
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Title: |
Flexible Premium Variable Life Insurance Policy |
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Entities: |
Lincoln National Corp.; Lincoln Life & Annuity Company of New York; Elite Series of Funds; Llany Separate Account R for Flexible Prem Vari Life Insur |
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Date: |
2003 |
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Size: |
Preview shows 14KB of 661KB total |
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Price: |
$99 |
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ID: |
#189460 |
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A FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
BENEFITS PAYABLE ON DEATH OF SECOND OF TWO INSUREDS
--------------------------------------------------------------------------------
This Prospectus describes SVUL-III featuring the Elite Series of Funds, a
flexible premium variable universal life insurance contract (the "Policy"),
offered by Lincoln Life & Annuity Company of New York ("LLANY" "we", "our" or
"us"). The Policy provides death benefits when the second of the two named
Insureds dies (a "Second Death Policy").
The Policy features include flexible premium payments; a choice of one of three
death benefit options; and a choice of underlying investment options.
It may not be advantageous to replace existing life insurance or an annuity
contract or supplement an existing flexible premium variable life insurance
contract with the Policy. You should carefully read this Prospectus and the
Prospectuses of the Funds furnished with this Prospectus, to understand the
Policy being offered.
The Policy described in this Prospectus is available only in New York.
You may allocate net premiums to the Sub-Accounts of our Flexible Premium
Variable Life Account R ("Separate Account"). Each Sub-Account invests in Funds
offered through the following:
- AIM VARIABLE INSURANCE FUNDS
- ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
- AMERICAN FUNDS INSURANCE SERIES
- DELAWARE VIP TRUST (FORMERLY DELAWARE GROUP PREMIUM FUND)
- FIDELITY VARIABLE INSURANCE PRODUCTS
- FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST
- JANUS ASPEN SERIES
- LINCOLN NATIONAL FUNDS
- MFS-REGISTERED TRADEMARK- VARIABLE INSURANCE TRUST
- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST
- PUTNAM VARIABLE TRUST
- SCUDDER VIT FUNDS (FORMERLY DEUTSCHE ASSET MANAGEMENT VIT
FUNDS TRUST)
Refer to the "Funds" section in this Prospectus for detail on the particular
Funds offered in each Sub-Account.
TO BE VALID, THIS PROSPECTUS MUST HAVE THE CURRENT MUTUAL FUNDS' PROSPECTUSES
WITH IT. KEEP ALL FOR FUTURE REFERENCE.
THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THESE
SECURITIES OR DETERMINED THIS PROSPECTUS IS ACCURATE OR COMPLETE. IT IS A
CRIMINAL OFFENSE TO STATE OTHERWISE.
PROSPECTUS DATED: AUGUST 9, 2002
{Page}
TABLE OF CONTENTS
{Table}
{Caption}
CONTENTS PAGE
-------- --------
{S} {C}
HIGHLIGHTS.......................... 3
Initial Choices To Be Made........ 3
Death Benefit..................... 4
Amount of Premium Payment......... 4
Selection of Funding Vehicles..... 4
Insurance Charges and Fees........ 5
Fund Expenses..................... 6
Changes in Specified Amount....... 9
LLANY, THE SEPARATE ACCOUNT AND THE
GENERAL ACCOUNT.................... 9
BUYING VARIABLE LIFE INSURANCE...... 10
Replacements...................... 12
APPLICATION......................... 12
OWNERSHIP........................... 12
BENEFICIARY......................... 13
INSUREDS............................ 13
THE POLICY.......................... 13
Policy Specifications............. 14
PREMIUM FEATURES.................... 14
Planned Premiums; Additional
Premiums........................ 14
Limits on Right to Make Payments
of Additional and Planned
Premiums...................... 14
Premium Load; Net Premium
Payment....................... 14
RIGHT-TO-EXAMINE PERIOD............. 15
TRANSFERS AND ALLOCATION AMONG
ACCOUNTS........................... 15
Allocation of Net Premium
Payments........................ 15
Transfers......................... 15
Limits on Frequent Transfers...... 16
Optional Sub-Account Allocation
Programs........................ 16
Dollar Cost Averaging........... 16
Automatic Rebalancing........... 17
POLICY VALUES....................... 17
Valuation -- Fixed Account and
Separate Account................ 17
Allocation of Premium Payments to
Separate Account................ 18
Fixed Account and Loan Account
Value........................... 19
Accumulation Value................ 19
Net Accumulation Value............ 19
FUNDS............................... 19
Substitution of Securities........ 24
Voting Rights..................... 24
Fund Participation Agreements..... 24
CHARGES AND FEES.................... 24
Premium Charge.................... 25
Deductions Made Monthly........... 25
Monthly Deduction............... 25
Cost of Insurance Charge........ 25
Mortality and Expense Risk
Charge.......................... 26
Surrender Charges................. 26
Transaction Fee for Excess
Transfers....................... 28
DEATH BENEFITS...................... 28
Death Benefit Options............. 28
Changes in Death Benefit Options
and Specified Amount............ 29
Federal Income Tax Definition of
Life Insurance.................. 30
NOTICE OF DEATH OF INSUREDS......... 31
PAYMENT OF DEATH BENEFIT PROCEEDS... 31
{/Table}
{Table}
{Caption}
CONTENTS PAGE
-------- --------
{S} {C}
Settlement Options................ 31
POLICY LIQUIDITY.................... 32
Policy Loans...................... 32
Partial Surrender................. 33
Surrender of the Policy........... 33
Surrender Value................. 33
Deferral of Payment and
Transfers....................... 34
ASSIGNMENT; CHANGE OF OWNERSHIP..... 34
LAPSE AND REINSTATEMENT............. 34
Lapse of a Policy................. 34
No Lapse Provision................ 35
Reinstatement of a Lapsed
Policy.......................... 36
COMMUNICATIONS WITH LLANY........... 37
Proper Written Form............... 37
Receipt of Written Communications 37
Telephone and Other Electronic
Communications.................. 37
OTHER POLICY PROVISIONS............. 38
Issuance.......................... 38
Date of Coverage.................. 38
Right to Exchange the Policy...... 38
Maturity of the Policy............ 38
Incontestability.................. 39
Misstatement of Age or Gender..... 39
Suicide........................... 39
Riders............................ 39
Nonparticipating Policies......... 40
TAX ISSUES.......................... 40
Taxation of Life Insurance
Contracts in General............ 40
Policies Which Are MECS........... 41
Policies Which Are Not MECS....... 42
Last Survivor Contract............ 43
Other Considerations.............. 43
Tax Status of LLANY............... 44
FAIR VALUE OF THE POLICY............ 44
DIRECTORS AND OFFICERS OF LLANY..... 44
DISTRIBUTION OF POLICIES............ 46
CHANGES OF INVESTMENT POLICY........ 47
OTHER CONTRACTS ISSUED BY LLANY..... 47
STATE REGULATION.................... 47
REPORTS TO OWNERS................... 48
ADVERTISING......................... 48
LEGAL PROCEEDINGS................... 48
EXPERTS............................. 48
REGISTRATION STATEMENT.............. 49
Appendix 1.......................... 50
Illustration of Accumulation
Values, Surrender Values, and
Death Benefit Proceeds.......... 50
Appendix 2.......................... 55
Corridor Percentages.............. 55
Financial Statements................
Separate Account R 12/31/01....... R-1
Lincoln Life & Annuity Company
of New York 12/31/01............ S-1
Separate Account R 3/31/02
(unaudited)..................... R1Q-1
Lincoln Life & Annuity Company
of New York 3/31/02
(unaudited)..................... S1Q-1
{/Table}
2
{Page}
HIGHLIGHTS
This section is an overview of key Policy features. Your
Policy is a flexible premium variable universal life
insurance policy. Your Policy insures two Insureds. If one
of the Insureds dies, the Policy pays no death benefit. Your
Policy will pay the death benefit only when the second
Insured dies. A "second-to-die" policy might be suitable
when both of the Insureds have income of their own and only
want to provide financial support for their dependents if
both of them should die, or to provide liquidity to heirs
when the Second Insured dies. If replacement income or
immediate cash liquidity is needed upon the death of one
Insured, this type of policy may not be suitable.
The Policy's value may change on a:
1) fixed basis;
2) variable basis; or a
3) combination of both fixed and variable bases.
Review your personal financial objectives and discuss them
with a qualified financial counselor before you buy a
"second-to-die" variable life insurance policy. As a death
benefit is only paid upon the second Insured's death, this
Policy may, or may not, be appropriate for your individual
financial goals. If you are already entitled to favorable
financial tax treatment, you should satisfy yourself that
this Policy meets your other financial goals before you buy
it. The value of the Policy and, under one option, the death
benefit amount, depends on the investment results of the
funding options you select. Review this Prospectus and the
Funds Prospectus to achieve a clear understanding of any
Fund you are considering.
At all times, your Policy must qualify as life insurance
under the Internal Revenue Code of 1986 (the "Code") to
receive favorable tax treatment under Federal law. If these
requirements are met, you may benefit from such tax
treatment. LLANY reserves the right to return your premium
payments if they result in your Policy failing to meet Code
requirements.
We offer other variable life insurance policies and variable
annuity contracts with different features, benefits and
charges. These policies also provide values that vary in
accordance with the investment experience of a separate
account of LLANY.
INITIAL CHOICES TO BE MADE
The Policy Owner (the "Owner" or "you") is the person named
in the "Policy Specifications" who has all of the Policy
ownership rights. You, as the Owner, have four important
choices to make when the Policy is first purchased. You need
to choose:
1) one of the three Death Benefit Options;
2) the amount of premium you want to pay; and
3) the amount of your Net Premium Payment to be placed in
each of the funding options you select. The Net Premium
Payment is the balance of your Premium Payment that
remains after certain charges are deducted from it; and
4) whether to elect the Age 100 No Lapse Provision.
You may also choose from Riders offered for this Policy.
These may alter the benefits or charges in the Policy and
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