<PAGE>

                                                                     EXHIBIT 4.1

Kemper Investors Life Insurance Company
A Stock Life Insurance Company                                     [LOGO]
Long Grove, Illinois 60049-0001                                    ZURICH
                                                                   KEMPER


RIGHT TO CANCEL - FREE LOOK PROVISION - At any time within 10 days of receiving
this Certificate you may return it to Us or to the agent through whom it was
purchased. All Purchase Payments allocated to the Guarantee Periods plus the
Fixed Account plus the Separate Account Certificate Value computed at the end of
the valuation period following our receipt of this Certificate will then be
refunded within ten days, after deduction of any applicable Purchase Payment
Bonus and the interest and investment experience related to any Purchase Payment
bonus.

We agree to pay an Annuity to the Annuitant provided the Annuitant is living and
this Certificate is in force on the Annuity Date.

We further agree to pay the death benefit prior to the Annuity Date upon the
death of the Certificate Owner or, in certain circumstances, the death of the
Annuitant. Payment will be made upon our receipt of due proof of death and the
return of this Certificate.

This Certificate is issued in consideration of the attached application and
payment of the initial Purchase Payment.

The provisions on this cover and the pages that follow are part of this
Certificate.

Signed for Kemper Investors Life Insurance Company at its home office, in Long
Grove, Illinois.

          /s/ Debra P. Rezabek                    /s/ Gale K. Caruso

               Secretary                               President

GROUP FLEXIBLE PREMIUM MODIFIED GUARANTEED, FIXED AND VARIABLE DEFERRED ANNUITY
CERTIFICATE.

This Certificate is issued pursuant to the terms of the Master Policy number
K1001 issued by Kemper Investors Life Insurance Company to the Group Annuity
Trust II, called the Master Policyholder.

NON-PARTICIPATING

ALL PAYMENTS AND VALUES PROVIDED BY THIS CERTIFICATE WHEN BASED ON THE
INVESTMENT EXPERIENCE OF THE SUBACCOUNTS ARE VARIABLE AND ARE NOT GUARANTEED AS
TO DOLLAR AMOUNT. WITHDRAWALS AND TRANSFERS FROM THE GUARANTEED PERIOD VALUE
BEFORE THE END OF THE GUARANTEED PERIOD ARE SUBJECT TO A MARKET VALUE
ADJUSTMENT.

This is a legal Certificate between the Certificate Owner and Kemper Investors
Life Insurance Company.

READ YOUR CERTIFICATE CAREFULLY.

Policy Form No. L-8697
<PAGE>

L-8697

                                     INDEX

                                                                      Page


ANNUITY OPTION TABLE                                       Follows Page 20

ANNUITY PERIOD PROVISIONS                                            16-20

     Election of Annuity Option                                      16-20
     Annuity Options                                                    17
     Transfers During the Annuity Period                             19-20

APPLICATION                                      Follows Contract Schedule

CERTIFICATE SCHEDULE                                         Follows Index

DEATH BENEFIT PROVISIONS                                             15-16

     Amount Payable Upon Death                                          15
     Payment Of Death Benefits                                       15-16


DEFINITIONS                                                            5-7

ENDORSEMENTS, if any                          Follows Annuity Option Table


FIXED ACCOUNT PROVISIONS                                              9-10

     Fixed Account                                                    9-10
     Fixed Account Certificate Value                                  9-10


GENERAL PROVISIONS                                                     7-8

     The Entire Contract                                                 7
     Incontestability                                                    7
     Assignment                                                          7
     Reports                                                             7
     Premium Taxes                                                       8

GUARANTEE PERIOD PROVISIONS                                             10

     Guarantee Period Value                                             10

OWNERSHIP PROVISIONS                                                   8-9

     Owner of Certificate                                                8
     Change of Ownership                                                 8
     Beneficiary                                                       8-9

PURCHASE PAYMENT PROVISIONS                                              9

     Initial Purchase Payments                                           9
     Purchase Payment Limitations                                        9

TRANSFER AND WITHDRAWAL PROVISIONS                                   13-15

     Transfer During The Accumulation Period                            13
     Withdrawals During The Accumulation Period                         14
     Transfer and Withdrawal Procedures                              14-15

VARIABLE ACCOUNT PROVISIONS                                          11-12

     Separate Account                                                   11
     Liabilities of Separate Account                                    11
     Subaccounts                                                        11
     Rights Reserved By The Company                                     11
     Accumulation Unit Value                                            12
<PAGE>

                             CERTIFICATE SCHEDULE

DESCRIPTION OF PLAN: GROUP FLEXIBLE PREMIUM MODIFIED
                     GUARANTEED, FIXED AND VARIABLE DEFERRED
                     ANNUITY

THE CERTIFICATE OWNER(S), BENEFICIARY(IES) AND ANNUITY DATE ARE AS
STATED IN HE APPLICATION FOR THIS CERTIFICATE UNLESS SUBSEQUENTLY
CHANGED IN ACCORDANCE WITH THE CERTIFICATE PROVISIONS.

GUARANTEED PERIODS AVAILABLE ON ISSUE DATE:
          [1 THROUGH 10] YEARS

KILICO VARIABLE ANNUITY SEPARATE ACCOUNT
 SUBACCOUNTS AVAILABLE ON ISSUE DATE:
[KEMPER MONEY MARKET
KEMPER GOVT. SECURITIES
KEMPER HIGH YIELD
KEMPER TOTAL RETURN
KEMPER GROWTH
KEMPER SMALL CAP GROWTH
KEMPER INVESTMENT GRADE BOND
KEMPER TECHNOLOGY
SCUDDER BOND
SCUDDER CAPITAL GROWTH
SCUDDER INTERNATIONAL
JANUS ASPEN GROWTH
JANUS ASPEN BALANCED
JANUS ASPEN AGGRESSIVE GROWTH
JANUS ASPEN WORLDWIDE GROWTH
FIDELITY VIP II INDEX 500
FIDELITY VIP EQUITY-INCOME
FIDELITY VIP GROWTH
FIDELITY VIP II CONTRAFUND
ALGER AMERICAN GROWTH
ALGER AMERICAN SMALL CAP
ALGER MID-CAP
AMERICAN CENTURY INCOME & GROWTH
AMERICAN CENTURY VALUE
J.P. MORGAN SMALL COMPANY
DREYFUS SOCIALLY RESPONSIBLE GROWTH
WARBURG PINCUS EMERGING MARKETS]

8697                                                                      PAGE 2
<PAGE>

                             CERTIFICATE SCHEDULE

CERTIFICATE NUMBER: K00008697                   ISSUE DATE: JANUARY 1, 2001

ANNUITANT: JOHN Q PUBLIC

SEX: MALE                                       ISSUE AGE: 55

MAXIMUM ANNUITIZATION AGE: [95]

QUALIFIED OR NONQUALIFIED TYPE: QUALIFIED

MINIMUM INITIAL PURCHASE PAYMENT:                           [$10,000
MINIMUM SUBSEQUENT PURCHASE PAYMENT:                         $100
MAXIMUM PURCHASE PAYMENTS PER CERTIFICATE YEAR:              $1,000,000]

INITIAL PURCHASE PAYMENT RECEIVED:   $10,000

PURCHASE PAYMENT BONUS:
     CERTIFICATE YEARS 1 - 15        [4%]
     CERTIFICATE YEARS 16 AND LATER  [0%]

SEPARATE ACCOUNT CHARGES:
     DEDUCTED DAILY FROM THE SUBACCOUNTS
     MORTALITY AND EXPENSE RISK CHARGE:
          CERTIFICATE YEARS 1 - 15                [1.50% ANNUALLY]
          CERTIFICATE YEARS 16 AND LATER          [1.25% ANNUALLY]

[RECORD MAINTENANCE CHARGE:
WE WILL ASSESS A RECORDS MAINTENANCE CHARGE AT THE END OF EACH CALENDAR QUARTER
IN WHICH YOU PARTICIPATE IN THE SEPARATE ACCOUNT, UPON A FULL WITHDRAWAL, AND ON
THE ANNUITY DATE. THIS CHARGE WILL NOT BE ASSESSED AFTER THE ANNUITY DATE. THIS
CHARGE WILL BE DEDUCTED ON A PROPORTIONAL BASIS FROM AMOUNTS ALLOCATED TO THE
SUBACCOUNTS. TO THE EXTENT NEEDED, IT WILL BE DEDUCTED FROM THE GUARANTEE
PERIODS. WE RESERVE THE RIGHT TO MAKE THIS DEDUCTION FROM THE FIXED ACCOUNT. THE
AMOUNT OF THIS CHARGE WILL DEPEND ON THE AMOUNT OF THE CERTIFICATE VALUE ON THE
DATE THE CHARGE IS MADE:
               AMOUNT OF                       RECORDS MAINTENANCE
               CERTIFICATE VALUE               CHARGE
               LESS THAN $25,000               $7.50
               $25,000 TO $49,999.99           $3.75
               $50,000 AND OVER                NONE]

[TRANSFER CHARGE:
WE RESERVE THE RIGHT TO CHARGE $10 FOR EACH TRANSFER IN EXCESS OF 12 IN A
CERTIFICATE YEAR.]

8697                                                                      PAGE 3
<PAGE>

                             CERTIFICATE SCHEDULE

INITIAL                               INITIAL INTEREST        ALLOCATION
ALLOCATIONS                           RATE*                   PERCENTAGES

[JANUS ASPEN WORLDWIDE GROWTH         N/A                     20%
FIDELITY VIP II INDEX 500             N/A                     20%
FIDELITY VIP GROWTH                   N/A                     20%
5 YEAR GUARANTEE PERIOD               7.00%                   20%
10 YEAR GUARANTEE PERIOD              7.50%                   20%]

* STATED AS AN ANNUAL EFFECTIVE RATE. N/A INDICATES THAT AN INTEREST RATE IS NOT
APPLICABLE AS THERE IS NO GUARANTEED RATE FOR A VARIABLE SUBACCOUNT.

MARKET VALUE ADJUSTMENT FORMULA:

[THIS ADJUSTMENT IS MADE FOR AMOUNTS TRANSFERRED OR WITHDRAWN BEFORE THE END OF
A GUARANTEE PERIOD. THE ADJUSTMENT MAY BE POSITIVE OR NEGATIVE BUT THE DEDUCTION
IS NEVER MORE THAN THE AMOUNT TRANSFERRED OR WITHDRAWN. THE MARKET VALUE
ADJUSTMENT IS SUBTRACTED FROM THE AMOUNT THAT IS TRANSFERRED OR WITHDRAWN FROM
THE GUARANTEE PERIOD.

THE MARKET VALUE ADJUSTMENT IS THE PRODUCT OF (1), (2), (3) AND (4) WHERE:

(1) = .075

(2) = THE NUMBER OF MONTHS REMAINING IN THE GUARANTEE PERIOD

(3) = THE INTEREST RATE BEING GUARANTEED ON NEW ALLOCATIONS TO A GUARANTEE
    PERIOD WITH THE PERIOD EQUAL TO THE GUARANTEE PERIOD LESS THE RATE
    GUARANTEED ON THE MONEY BEING WITHDRAWN OR TRANSFERRED.

(4) = THE AMOUNT WITHDRAWN OR TRANSFERRED.]

8697                                                                      PAGE 4
<PAGE>

                             CERTIFICATE SCHEDULE

FIXED ACCOUNT: INTEREST RATES STATED AS ANNUAL RATES

     INITIAL FIXED ACCOUNT INTEREST RATE:                               5%

     THE INITIAL FIXED ACCOUNT INTEREST RATE APPLIES TO THE INITIAL PURCHASE
     PAYMENT AND IS GUARANTEED ON THE INITIAL PURCHASE PAYMENT THROUGH THE
     CALENDAR MONTH IN WHICH THE INITIAL PURCHASE PAYMENT IS RECEIVED AND FOR 12
     CALENDAR MONTHS THEREAFTER.

     SUBSEQUENT FIXED ACCOUNT INTEREST GUARANTEE PERIOD - ONE CALENDAR YEAR

MINIMUM GUARANTEED FIXED ACCOUNT INTEREST RATE:                         3%

--------------------------------------------------------------------------------
        CERTIFICATE YEARS ELAPSED SINCE
            PURCHASE PAYMENTS WERE
            RECEIVED BY THE COMPANY                     RATE
--------------------------------------------------------------------------------
                     FIRST                              8%
--------------------------------------------------------------------------------
                    SECOND                              8%
--------------------------------------------------------------------------------
                     THIRD                              7%
--------------------------------------------------------------------------------
                    FOURTH                              6%
--------------------------------------------------------------------------------
                     FIFTH                              5%
--------------------------------------------------------------------------------
                     SIXTH                              4%
--------------------------------------------------------------------------------
                    SEVENTH                             3%
--------------------------------------------------------------------------------
                    EIGHTH                              2%
--------------------------------------------------------------------------------
                 NINTH & LATER                          0%
--------------------------------------------------------------------------------

UP TO 10% OF THE CERTIFICATE VALUE LESS DEBT MAY BE WITHDRAWN AS A PARTIAL FREE
WITHDRAWAL EACH CERTIFICATE YEAR. CHARGES ARE APPLIED TO PURCHASE PAYMENTS, ANY
PURCHASE PAYMENT BONUS AND ALL RELATED ACCUMULATIONS FOR ANY WITHDRAWAL IN
EXCESS OF THE 10% PARTIAL FREE WITHDRAWAL. CHARGES START AT 8% IN THE
CERTIFICATE YEAR IN WHICH THE PURCHASE PAYMENT WAS RECEIVED AND THEN FOLLOW THE
SCHEDULE ABOVE.

8697                                                                    PAGE 4.1
<PAGE>

DEFINITIONS         Accumulation Period: The period between the Issue Date and
                    the Annuity Date.

                    Accumulation Unit: An accounting unit of measure used to
                    calculate the value of each Subaccount.

                    Age: The attained age of the Annuitant.

                    Annuitant: The person named in the application during whose
                    lifetime the Annuity is to be paid. When two people are
                    named as Joint Annuitants the term "Annuitant" means the
                    Joint Annuitants or the survivor. Under Qualified Plans,
                    only the spouse may be named as Joint Annuitant. You may not
                    change the person(s) named as the Annuitant.

                    Annuity: A series of payments paid in accordance with this
                    Certificate which begins on the Annuity Date.

                    Annuity Date: The date on which this Certificate matures and
                    Annuity payments begin. It must be at least one year from
                    the Issue Date and no later than the maximum age at
                    annuitization as stated on the Certificate Schedule, unless
                    otherwise agreed. The Annuity Date can be changed, but not
                    beyond the maximum age.

                    Annuity Period: This is the period that starts on the
                    Annuity Date.

                    Annuity Unit: An accounting unit of measure used to
                    calculate the amount of Variable Annuity payments after the
                    first Annuity payment.

                    Certificate: An individual Certificate which We issue to You
                    as evidence of the rights and benefits under the Master
                    Policy.

                    Certificate Owner: See "You, Your, Yours" below.

                    Certificate Value: The sum of the Fixed Account Certificate
                    Value plus the Separate Account Certificate Value plus the
                    Guarantee Period Value.

                    Certificate Year: A one-year period starting on the Issue
                    Date and successive Certificate anniversaries.

                    Fixed Account: Our assets other than those allocated to the
                    Separate Account or any other Separate Account under which
                    We guarantee a fixed rate of return.

                    Fixed Account Certificate Value: The Fixed Account
                    Certificate Value is the value of amounts allocated under
                    this Certificate to the Fixed Account.

                    Fixed Annuity: An Annuity payment that does not vary with
                    investment performance.

                    Fund: An investment company or separate series thereof, in
                    which the Subaccounts of the Separate Account invest.

                    Guarantee Period: A period of time during which an amount is
                    to be credited with a guaranteed interest rate, subject to a
                    Market Value Adjustment prior to the end of the Guarantee
                    Period. The Guarantee Periods initially offered are stated
                    on the Certificate Schedule.

                    Guarantee Period Value: The (1) Purchase Payment allocated
                    or the amount transferred to a Guarantee Period; plus (2)
                    interest credited; minus (3) withdrawals and transfers
                    adjusted for (4) any applicable Market Value Adjustment
                    previously made. There is a $5,000 minimum on the sum of
                    Purchase Payments and amounts transferred to any Guarantee
                    Period Value.

                    Issue Date: The Issue Date is stated on the Certificate
                    Schedule. It is the date Your initial Purchase Payment is
                    available for use and Your application has bean accepted by
                    Us. It is also the date on which Your Purchase Payment
                    begins to be credited with interest and/or investment
                    experience.

L-8697                                                                    Page 5
<PAGE>

L-8697                                                                    Page 6

DEFINITIONS (Continued)

                         Market Adjusted Value: A Guarantee Period Value
                         adjusted by the Market Value Adjustment formula prior
                         to the end of a Guarantee Period.

                         Market Value Adjustment: An adjustment of Guarantee
                         Period Values in accordance with the Market Value
                         Adjustment formula prior to the end of the Guarantee
                         Period. The adjustment reflects the change in the value
                         of the Guarantee Period Value due to changes in
                         interest rates since the date the Guarantee Period
                         commenced. The Market Value Adjustment formula is
                         stated on the Certificate Schedule.

                         Mortality and Expense Risk Charge: A charge deducted in
                         the calculation of the Accumulation Unit value and the
                         Annuity Unit value. It is for Our assumption of
                         mortality risks and expense guarantees. The charge is
                         shown on the Certificate Schedule.

                         Nonqualified: This Certificate issued to other than a
                         Qualified Plan.

                         Purchase Payments: The dollar amount We receive in U.S.
                         currency to buy the benefits this Certificate provides.

                         Qualified Plan: A Certificate issued under a retirement
                         plan which qualifies for favorable income tax treatment
                         under Section 401, 403, 408 or 457 of the Internal
                         Revenue Code as amended.

                         If this Certificate is issued under a Qualified Plan
                         additional provisions may apply. The rider or amendment
                         to this Certificate used to qualify it under the
                         applicable section of the Internal Revenue Code will
                         indicate the extent of change in the provisions.

                         Records Maintenance Charge: A charge assessed against
                         Your Certificate as specified on the Certificate
                         Schedule. We reserve the right to make this charge
                         against the Fixed Account Certificate Value or the
                         Guarantee Period Value.

                         Received: Received by Kemper Investors Life Insurance
                         Company at its home office.

                         Separate Account: A unit investment trust registered
                         with the Securities and Exchange Commission under the
                         Investment Act of 1940 known as the KILICO Variable
                         Annuity Separate Account.

                         Separate Account Certificate Value: The sum of the
                         Subaccount Values of this Certificate on the Valuation
                         Date.

                         Subaccounts: The Separate Account has Subaccounts. The
                         Subaccounts initially available are stated on the
                         Certificate Schedule.

                         Subaccount Value: The value of each Subaccount
                         calculated separately according to the formulas stated
                         in this Certificate

                         Valuation Date: Each business day that applicable law
                         requires that We value the assets of the Separate
                         Account. Currently this is each day that the New York
                         Stock Exchange is open for trading.

                         Valuation Period: The period that starts at the close
                         of a Valuation Date and ends at the close of business
                         the next succeeding Valuation Date.

                         Variable Annuity: An Annuity payment which varies as to
                         dollar amount because of Subaccount investment
                         experience.

                         We, Our, Us: Kemper Investors Life Insurance Company,
                         Long Grove, Illinois.
<PAGE>

 DEFINITIONS (Continued)

                              You, Your, Yours: The party(ies) named as
                              Certificate Owner in the application unless later
                              changed as provided in this Certificate. (See
                              Change of Ownership.) The Certificate Owner is the
                              Annuitant unless a different Contract Owner is
                              named in the application. Under a Nonqualified
                              Annuity when more than one person is named as
                              Certificate Owner, the terms "You", "Your" means
                              Joint Certificate Owners. The Certificate Owner
                              may be changed during the lifetime of the
                              Certificate Owner and the Annuitant. The
                              Certificate Owner, prior to the Annuity Date or
                              any distribution of any death benefit, has the
                              exclusive right to exercise every option and right
                              conferred by this Certificate.

GENERAL PROVISIONS

The Entire Contract           The Certificate, any application attached to the
                              Certificate, and any endorsements constitute the
                              entire contract between the parties.

                              All statements made in the application are deemed
                              representations and not warranties. No statement
                              will void this Certificate or be used as a defense
                              of a claim unless it is contained in the
                              application.

Modification of Certificate   Only our President, Secretary and Assistant
                              Secretaries have the power to approve a change or
                              waive any provision of this Certificate. Any such
                              modification must be in writing. No agent or
                              person other than the officers named has the.
                              authority to change or waive the provisions of
                              this Certificate.

                              Upon notice to You or the payees during the
                              Annuity Period, this Certificate may be modified
                              by Us as is necessary to comply with any law or
                              regulation issued by a governmental agency to
                              which We or the Separate Account is subject or as
                              is necessary to assure continued qualification of
                              this Certificate under the Internal Revenue Code
                              or other laws relating to retirement plans or
                              Annuities or as otherwise may be in Your best
                              interest. In the event of a modification, We may
                              make appropriate endorsement to this Certificate
                              and We will obtain all required regulatory
                              approvals.

Incontestability              This Certificate is incontestable from the Issue
                              Date.

Change of Annuity Date        You may write to Us prior to distribution of a
                              death benefit or the first Annuity payment date
                              and request a change of the Annuity Date.

Assignment                    No assignment under this Certificate is binding
                              unless We receive it in writing. We assume no
                              responsibility for the validity or sufficiency of
                              any assignment. Once filed, Your rights, the
                              Annuitant's rights and the beneficiary's rights
                              are subject to the assignment. Any claim is
                              subject to proof of interest of the assignee.

Due Proof of Death            We must receive proof upon Your death or that of
                              the Annuitant when a death benefit is payable. The
                              death benefit will be paid within 2 months after
                              the receipt of such proof.

Reserves, Certificate Values  All reserves are equal to or greater than those
and Death Benefits            required by statute. Any available Certificate
                              Value and death benefit will not be less than the
                              minimum benefit required by the statutes of the
                              state in which this Certificate is delivered:


Non-Participating             This Certificate does not pay dividends. It will
                              not share in Our surplus earnings.

Reports                       At least once each Certificate Year We will send
                              You a statement showing Purchase Payments
                              received, interest credited, investment
                              experience, and charges made since the last
                              report, as well as any other information required
                              by statute.


L-8697                                                                    Page 7
<PAGE>

L-8697                                                                    Page 8

GENERAL PROVISIONS (Continued)

Premium Taxes                 We will make a deduction for state premium taxes
                              in certain situations. On any Certificate subject
                              to premium tax, as provided under applicable law,
                              the tax will be deducted from: a. The Purchase
                              Payments when We receive them; b. the Certificate
                              Value upon total withdrawal; or c. from the total
                              Certificate Value applied to an Annuity option at
                              the time Annuity payments start.

Determination                 The method of determination by Us of the
Of Values                     investment experience factor, the number and value
                              of Accumulation Units, and the number and value
                              of Annuity Units shall be conclusive upon You, any
                              payee, and any beneficiary.

Governing Law                 This Certificate will be governed by the laws of
                              the jurisdiction where the Certificate is
                              delivered and interpreted under the laws of
                              Illinois.

Creditors                     The proceeds of this Certificate and any payment
                              under an Annuity option will be exempt from the
                              claim of creditors and from legal process to the
                              extent permitted by law.

OWNERSHIP PROVISIONS

Owner of Certificate          The Annuitant is You unless otherwise provided in
                              the application.

                              Before the Annuity Date or any distribution of
                              death benefit, You have the right to cancel or
                              amend this Certificate if We agree. You may
                              exercise every option and right conferred by this
                              Certificate. The Joint Certificate Owners must
                              agree to any change if more than one Certificate
                              Owner is named.

Change of Ownership           You may change the Certificate Owner by written
                              request at any time while You and the Annuitant
                              are alive. You must furnish information sufficient
                              to clearly identify the new Certificate Owner to
                              Us. The change is subject to any existing
                              assignment of this Certificate. When We record the
                              effective date of the change, it will be the date
                              We received the notice except for action taken by
                              Us prior to receiving the request. Any change is
                              subject to the payment of any proceeds. We may
                              require You to return this Certificate to us for
                              endorsement of a change.

Beneficiary Designation       The application for this Certificate shows the
and Change of Beneficiary     original beneficiary. You may change the
                              beneficiary if You send Us a written notice in a
                              form acceptable to Us. Changes are subject to the
                              following conditions:

                              1.   The change must be filed while the Annuitant
                                   is alive;

                              2.   This Certificate must be in force at the time
                                   You file a change;

                              3.   Such change must not be prohibited by the
                                   terms of an existing assignment, beneficiary
                                   designation or other restriction;

                              4.   Such change will take effect when We receive
                                   it;

                              5.   After We receive the change, it will take
                                   effect on the date we received the change
                                   form. However, action taken by Us before the
                                   change form was received will remain in
                                   effect; and

                              6.   The request for change must provide
                                   information sufficient to identify the new
                                   beneficiary.

                              We may require You to return this Certificate for
                              endorsement of a change.
<PAGE>

OWNERSHIP PROVISIONS (Continued)

Death of Beneficiary          The interest of a beneficiary who dies before the
                              distribution of the death benefit will pass to the
                              other beneficiaries, if any, share and share
                              alike, unless otherwise provided in the
                              beneficiary designation. If no beneficiary
                              survives or is named, the distribution will be
                              made to Your estate when You die, or to the estate
                              of the Annuitant upon the death of the Annuitant
                              if You are not also the Annuitant. If a
                              beneficiary dies within ten days of the date of
                              Your death, the death benefit will be paid as if
                              You had survived the beneficiary. If a beneficiary
                              dies within ten days of the death of the Annuitant
                              and You are not the Annuitant, We will pay the
                              death benefit as if the Annuitant survived the
                              beneficiary. If You, the Annuitant, and the
                              beneficiary die simultaneously, We will pay the
                              death benefit as if You had survived the Annuitant
                              and the beneficiary.

PURCHASE PAYMENT PROVISIONS

Initial Purchase Payment      The minimum initial Purchase Payment is shown on
                              the Certificate Schedule.

Purchase Payment              The minimum and maximum Purchase Payments that may
Limitations                   be made are shown on the Certificate Schedule. We
                              reserve the right to waive or modify these limits
                              and to not accept any Purchase Payment.

                              Subsequent Purchase Payments will be allocated
                              according to Your most recent instructions at the
                              time We receive Your Purchase Payment.

Place of Payment              All Purchase Payments under this Certificate must
                              be paid to Us at our home office or such other
                              location as We may select. We will notify You and
                              any other interested parties in writing of such
                              other locations. Purchase Payments received by an
                              agent will begin earning interest after We receive
                              it.

Purchase Payment              Subject to the limitations shown below, Purchase
Bonus                         Payments will be increased by the Purchase
                              Payment bonus shown on the Certificate Schedule
                              before being allocated to the various accounts of
                              this Certificate.

                              We reserve the right to not increase a Purchase
                              Payment by the Purchase Payment bonus in the
                              following situations.

                              1.   If at the time the Purchase Payment is made
                                   the sum of Purchase Payments, partial
                                   withdrawals and loans made under this
                                   Certificate exceeds the sum of Purchase
                                   Payments and loan repayments, or
                              2.   The Purchase Payment arises from the transfer
                                   of money from any other Life Insurance or
                                   Annuity contract.

FIXED ACCOUNT PROVISIONS

Fixed Account                 The Fixed Account Certificate Value is increased
Certificate Value             by: 1. Your Purchase Payment allocated to the
                              Fixed Account; 2. amounts transferred from a
                              Guarantee Period or Subaccount to the Fixed
                              Account at Your request; and 3. the interest
                              credited to amounts so allocated or transferred.
                              Transfers, charges, and withdrawals from the Fixed
                              Account reduce the Fixed Account Certificate
                              Value.

                              Fixed Account interest rates are credited for
                              certain periods of time referred to as Fixed
                              Account interest rate periods. An initial Fixed
                              Account interest rate period runs from the date We
                              receive each Purchase Payment through the end of
                              the calendar month in which that Purchase Payment
                              is received and for 12 calendar months thereafter.
                              The initial Fixed Account interest rate for the
                              initial Purchase Payment is shown on the
                              Certificate Schedule. We will declare an initial
                              fixed Account interest rate for each subsequent
                              Purchase Payment when that Purchase Payment is
                              received. For each Purchase Payment, a subsequent
                              Fixed Account interest rate period begins
                              immediately after the initial Fixed Account
                              interest rate periods are in effect for periods of
                              12 calendar months immediately following the end
                              of each previous subsequent Fixed Account rate
                              period. We will declare an interest rate
                              applicable to each Purchase Payment for each
                              subsequent Fixed Account interest rate periods.

L-8697                                                                    Page 9
<PAGE>

L-8697                                                                   Page 10

FIXED ACCOUNT PROVISIONS (Continued)

                              We reserve the right to declare the Fixed Account
                              current interest rate(s) based upon: the Issue
                              Date; the date We receive a Purchase Payment, or
                              the date of account transfer.

                              We calculate the interest credited to the Fixed
                              Account by compounding daily, at daily interest
                              rates, rates which would produce at the end of a
                              Certificate Year a result identical to the one
                              produced by applying an annual interest rate.

                              The minimum guaranteed Fixed Account interest rate
                              is 3.00% per year.

GUARANTEE PERIOD PROVISIONS

Guarantee Period              We hold all amounts allocated to a Guarantee
                              Period in a non-unitized Separate Account. The
                              assets of this Separate Account equal to the
                              reserves and other liabilities of this Separate
                              Account will not be charged with liabilities
                              arising out of any other business we may conduct.
                              The initial Guarantee Periods available under this
                              Certificate are shown on the Certificate Schedule.

Guarantee Period Value        On any Valuation Date, the Guarantee Period Value
                              includes:
                              1.   your Purchase Payments or transfers allocated
                                   to the Guarantee Period; plus
                              2.   interest credited; minus
                              3.   withdrawals and transfers; minus
                              4.   any applicable portion of the Records
                                   Maintenance Charge and charges for other
                                   benefits; adjusted for
                              5.   any applicable Market Value Adjustment
                                   previously made.

                              The Guarantee Period(s) initially elected and the
                              interest rate(s) initially credited are shown on
                              the Certificate Schedule. The initial interest
                              rate credited to subsequent Purchase Payments will
                              be declared at the time the payment is received.

                              At the end of a Guarantee Period, the Guarantee
                              Period Value will be transferred to a money market
                              Subaccount unless You tell Us to do otherwise.

Accumulated Guarantee         On any Valuation Date, the Accumulated Guarantee
Period Value                  Period Value is the sum of the Guarantee Period
                              Values. At any time during the Accumulation
                              Period, the Accumulated Guarantee Period Value may
                              be allocated to more than one Guarantee Period
                              with Our agreement.

                              We calculate the interest credited to the
                              Guarantee Period Value by compounding daily, at
                              daily interest rates, rates which would produce at
                              the end of a Certificate Year a result identical
                              to the one produced by applying an annual interest
                              rate.

Market Value Adjustment       The Market Value Adjustment formula is stated on
                              the Certificate Schedule. This formula is
                              applicable for both an upward or downward
                              adjustment to a Guarantee Period Value when, prior
                              to the end of a Guarantee Period, such value is:

                              1.   taken as a total or partial withdrawal;
                              2.   applied to purchase an Annuity; or
                              3.   transferred to another Guarantee Period, the
                              Fixed Account or a Subaccount.
<PAGE>

VARIABLE ACCOUNT PROVISIONS

Separate Account              The variable benefits under this Certificate are
                              provided through the KILICO Variable Annuity
                              Separate Account. This is called the Separate
                              Account. The Separate Account is registered with
                              the Securities and Exchange Commission as a unit
                              investment trust under the Investment Company Act
                              of 1940. It is a separate investment account
                              maintained by us into which a portion of the
                              company's assets have been allocated for this
                              Certificate and may be allocated for certain other
                              Certificates.

Liabilities of Separate       The assets equal to the reserves and other
Account                       liabilities of the Separate Account will not be
                              charged with liabilities arising out of any other
                              business We may conduct. We will value the assets
                              of the Separate Account on each Valuation Date.

Separate Account              On any Valuation Date the Separate Account
Certificate Value             Certificate Value is the sum of its Subaccount
                              values.

Subaccounts                   The Separate Account consists of Subaccounts. The
                              initial Subaccounts available under this
                              Certificate are shown on the Certificate Schedule.
                              We may, from time to time, combine or remove
                              Subaccounts in the Separate Account and establish
                              additional Subaccounts of the Separate Account. In
                              such event We may permit You to select other
                              Subaccounts under this Certificate. However, the
                              right to select any other Subaccount is limited by
                              the terms and conditions We may impose on such
                              transactions.

Fund                          Each Subaccount of the Separate Account will buy
                              shares of a separate series of a Fund. Each Fund
                              is registered under the Investment Company Act of
                              1940 as an open-end management investment company.
                              Each series of a Fund represents a separate
                              investment portfolio which corresponds to one of
                              the Subaccounts of the Separate Account.

                              If We establish additional Subaccounts each new
                              Subaccount will invest in a new series of a Fund
                              or in shares of another investment company. We may
                              also substitute other investment companies.

Rights Reserved by the        We reserve the right, subject to compliance with
Company                       the current law or as it may be changed in the
                              future:

                              1. To operate the Separate Account in any form
                              permitted under the Investment Company Act of 1940
                              or in any other form permitted by law;

                              2. To take any action necessary to comply with or
                              obtain and continue any exemptions from the
                              Investment Company Act of 1940 or to comply with
                              any other applicable law;

                              3. To transfer any assets in any Subaccount to
                              another Subaccount or to one or more separate
                              accounts, or the General Account, or to add,
                              combine or remove Subaccounts in the Separate
                              Account;

                              4. To delete the shares of any of the portfolios
                              of a Fund or any other open-end investment company
                              and to substitute, for the Fund shares held in any
                              Subaccount, the shares of another portfolio of a
                              Fund or the shares of another investment company
                              or any other investment permitted by law; and

                              5. To change the way We assess charges, but not to
                              increase the aggregate amount above that currently
                              charged to the Separate Account and the Funds in
                              connection with this Certificate.

                              When required by law, We will obtain Your approval
                              of such changes and the approval of any regulatory
                              authority.


L-8697                                                                   Page 11
<PAGE>

L-8697                                                                   Page 12

VARIABLE ACCOUNT PROVISIONS (Continued)

Accumulation Unit Value       Each Subaccount has an Accumulation Unit Value.
                              When Purchase Payments or other amounts are
                              allocated to a Subaccount, a number of units are
                              purchased based on the Accumulation Unit Value of
                              the Subaccount at the end of the Valuation Period
                              during which the allocation is made. When amounts
                              are transferred out of or deducted from a
                              Subaccount, units are redeemed in a similar
                              manner.

                              The value of a Subaccount on any Valuation Date is
                              the number of units held in the Subaccount times
                              the Accumulation Unit Value on that Valuation
                              Date.

                              The Accumulation Unit Value for each subsequent
                              Valuation Period is the investment experience
                              factor for that period multiplied by the
                              Accumulation Unit Value for the period immediately
                              preceding. Each Valuation Period has a single
                              Accumulation Unit Value that is applied to each
                              day in the period. The number of Accumulation
                              Units will not change as a result of investment
                              experience.

Investment Experience         Each Subaccount has its own investment experience
Factor                        factor. The Company investment experience of the
                              Separate Account is calculated by applying the
                              investment experience factor to the value in each
                              Subaccount during a Valuation Period.

                              The investment experience factor of a Subaccount
                              for a Valuation Period is determined by dividing
                              1. by 2. and subtracting 3. from the result,
                              where:

                              1. is the net result of;

                              a. the net asset value per share of the investment
                              held in the Subaccount determined at the end of
                              the current Valuation Period; plus

                              b. the per share amount of any dividend or capital
                              gain distributions made by the investments held in
                              the Subaccount, if the "ex-dividend" date occurs
                              during the current Valuation Period; plus or minus

                              c. a charge or credit for taxes reserved for the
                              current Valuation Period which We determine
                              resulted from the investment operations of the
                              Subaccount.

                              2. is the net asset value per share of the
                              investment held in the Subaccount, determined at
                              the end of the last Valuation Period.

                              3. is the factor representing the sum of the
                              Separate Account charges stated on the Certificate
                              Schedule for the number of days in the Valuation
                              Period.
<PAGE>

TRANSFER AND WITHDRAWAL PROVISIONS

Transfers During the          You may direct the following transfers;
Accumulation Period

                              1. All or part of the Separate Account Certificate
                              Value or a Guarantee Period Value may be
                              transferred to the Fixed Account or to another
                              Subaccount or Guarantee Period. We will allow the
                              first transfer at the end of the free look period.

                              2. During the thirty days that follow a
                              Certificate Year Anniversary or the thirty day
                              period that follows the date You receive an annual
                              report, if later, all or part of the Fixed Account
                              Certificate Value, less debt, may be transferred
                              to one or more Subaccounts or to one or more
                              Guarantee Periods.

                              Transfers will also be subject to the following
                              conditions:

                              1. The minimum amount which may be transferred is
                              $500 or if smaller, the remaining value in the
                              Fixed Account, Subaccount or a Guarantee Period.

                              2. No partial transfer will be made if the
                              remaining Certificate Value of the Fixed Account
                              or any Subaccount will be less than $500 or any
                              Guarantee Period less than $5,000 unless the
                              transfer will eliminate Your interest in such
                              account;

                              3. No transfer may be made within seven calendar
                              days of the date on which the first annuity
                              payment is due;

                              4. You may request an additional transfer from the
                              Fixed Account to one or more Subaccounts or to a
                              Guarantee Period during the thirty day period
                              before the date on which the first Annuity payment
                              is due. Such transfer must become effective no
                              later that the seventh calendar day before such
                              due date;

                              5. When You request a transfer from the Fixed
                              Account to a Subaccount or to a Guarantee Period,
                              We will limit the amount that can be transferred
                              to the amount which exceeds 125% of any debt and a
                              withdrawal charge, if any, applicable to the total
                              Fixed Account Certificate Value.

                              We will transfer amounts bought by Purchase
                              Payments and all related accumulation received in
                              a given Certificate Year, in the chronological
                              order We received them.

                              We reserve the right to charge for transfers as
                              described on the Certificate Schedule.

                              Any transfer request from the Certificate Owner or
                              other authorized person must clearly specify: 1.
                              the amount which is to be transferred; and 2. the
                              names of the accounts which are affected. We will
                              only honor a telephone transfer request if a
                              properly executed telephone transfer authorization
                              is on file with Us. Such request for a transfer
                              must comply with the conditions of the
                              authorization.

                              We reserve the right at any time and without
                              notice to any party, to terminate, suspend, or
                              modify these transfer rights.


L-8697                                                                   Page 13
<PAGE>

L-8697                                                                   Page 14

Withdrawals During the        During the Accumulation Period, You may withdraw
Accumulation Period           all or part of the Certificate Value reduced by
                              any applicable premium taxes and withdrawal charge
                              and adjusted by any applicable Market Value
                              Adjustment. The Market Value Adjustment formula
                              will be applied to the applicable portion of the
                              total value withdrawn. We must receive a written
                              request that indicates the amount of the
                              withdrawal from the Fixed Account and each
                              Subaccount and Guarantee Period. You must return
                              the Certificate to Us if You elect a total
                              withdrawal.

                              Withdrawals are subject to these conditions:

                              The Certificate Value less any debt and any
                              applicable withdrawal charges remaining after a
                              withdrawal must be at least $5,000.

                              Withdrawals from the Subaccounts will reduce the
                              amounts in each Subaccount on a proportional
                              basis, unless You tell Us otherwise.

                              Each withdrawal from a Guarantee Period must be at
                              least $5,000 or the value that remains in the
                              Guarantee Period, if smaller;

                              The maximum You may withdraw from any account is
                              the value of the respective account less the
                              amount of any withdrawal charge and Market Value
                              Adjustment.

                              Any withdrawal amount You request will be
                              increased by any applicable withdrawal charge.

                              A withdrawal from the Fixed Account is limited to
                              an amount equal to the Fixed Account Certificate
                              Value.

                              We reserve the right to restrict partial
                              withdrawals from the Fixed Account in the first
                              Certificate Year.

                              You will ratably forfeit any Purchase Payment
                              bonus and related positive accumulation on any
                              withdrawal in the first Certificate Year.

Withdrawal Charges            All Purchase Payments in a given Certificate Year
                              and all related accumulations are totaled by
                              account and each total is used separately in
                              computing the withdrawal charge as stated in the
                              Withdrawal Charge Table shown on the Certificate
                              Schedule.

                              All amounts to be withdrawn and any applicable
                              withdrawal charges will be charged first against
                              Purchase Payments and all related accumulations in
                              the chronological order We received such Purchase
                              Payments by Certificate Year.

                              Any amount withdrawn which is not subject to a
                              withdrawal charge will be considered a "partial
                              free withdrawal."

                              In the event of a partial withdrawal, a "partial
                              free withdrawal" is applied against Purchase
                              Payments and all related accumulations in the
                              chronological order We received such Purchase
                              Payments by Certificate Year even though the
                              Purchase Payments and related accumulations are no
                              longer subject to a withdrawal charge.

Transfer and Withdrawal       We will withdraw or transfer from the Fixed
Procedures                    Account or Guarantee Periods as of the Valuation
                              Date that follows the date We receive Your written
                              or telephone transfer request. Amounts to be
                              withdrawn or transferred from the Fixed Account or
                              Guarantee Periods will be done on a first in -
                              first out basis. To process a withdrawal, the
                              request must contain all required information.
<PAGE>

TRANSFER AND WITHDRAWAL PROVISIONS (Continued)

                              We will redeem the necessary number of
                              Accumulation Units to achieve the dollar amount
                              when the withdrawal or transfer is made from a
                              Subaccount. We will reduce the number of
                              Accumulation Units credited in each Subaccount by
                              the number of Accumulation Units redeemed. The
                              reduction in the number of Accumulation Units is
                              determined on the basis of the Accumulation Unit
                              Value at the end of the Valuation Period when We
                              receive the request, provided the request contains
                              all required information. We will pay the amount
                              within seven calendar days after the date We
                              receive the request, except as provided below.

Deferment of Withdrawal or    If the withdrawal or transfer is to be made from a
Transfer                      Subaccount, We may suspend the right of withdrawal
                              or transfer or delay payment more than seven
                              calendar days: 1. during any period when the New
                              York Stock Exchange is closed other than customary
                              weekend and holiday closings; 2. when trading
                              markets normally utilized are restricted, or an
                              emergency exists as determined by the Securities
                              and Exchange Commission, so that disposal of
                              investments or determination of the Accumulation
                              Unit Value is not practical; or 3. for such other
                              periods as the Securities and Exchange Commission
                              by order may permit for protection of Certificate
                              Owners.

                              We may defer the payment of a withdrawal or
                              transfer from the Fixed Account or Guarantee
                              Periods, for the period permitted by law. This can
                              never be more than six months after the You send
                              Us a written request. During the period of
                              deferral, We will continue to credit interest, at
                              the then current interest rate(s), to the Fixed
                              Account Certificate Value and/or each Guarantee
                              Period Value.

DEATH BENEFIT PROVISIONS

Amount Payable Upon Death     We compute the death benefit at the end of the
                              Valuation Period following Our receipt of due
                              proof of death and the return of this Certificate.

                              If death occurs prior to attaining age 75, We will
                              pay the greater of: a. the Certificate Value; or
                              b. the total amount of Purchase Payments, less the
                              aggregate dollar amount of all previous
                              withdrawals or c. the amount that would have been
                              payable in the event of a full surrender. We will
                              pay the larger of the Certificate Value or the
                              amount that would have been payable in the event
                              of a full surrender if death occurs at age 75 or
                              later.

Payment of Death Benefits     If You or the last surviving Annuitant dies while
                              this Certificate is in effect and before the
                              Annuity Date, We will pay a death benefit. If the
                              Certificate Owner is a non-natural person, the
                              death of an Annuitant will be considered as the
                              death of a Certificate Owner for purposes of this
                              death, benefit provision.

                              If an Annuitant dies after the Annuity Date, the
                              death benefit, if any, will depend on the Annuity
                              Option in effect. If You die after the Annuity
                              Date, income payments will be made at least as
                              rapidly as under the method of distribution being
                              used as of the date of such death.

                              We will pay the death benefit to the beneficiary
                              when We receive due proof of death. We will then
                              have no further obligation under this Certificate.

                              When You die, We will pay the death benefit in a
                              lump sum. The entire interest in this Certificate
                              must be distributed within five years from the
                              date of death unless it is applied under an
                              Annuity Option or the spouse continues this
                              Certificate as described below.

L-8697                                                                   Page 15
<PAGE>

L-8697                                                                   Page 16

DEATH BENEFIT PROVISIONS (Continued)

                              Instead of a lump sum payment the beneficiary may
                              elect to have the death benefit distributed as
                              stated in Option 1 for a period not to exceed the
                              beneficiary's life expectancy; or Options 2, or 3;
                              as described in the Annuity Period Provisions of
                              this Certificate, based upon the life expectancy
                              of the beneficiary as prescribed by federal
                              regulations. The beneficiary must make this choice
                              within sixty days of the time We receive due proof
                              of death and distribution must commence within one
                              year of the date of death.

                              If the beneficiary is not a natural person, the
                              beneficiary must elect that the entire death
                              benefit be distributed within five years of Your
                              death.

                              Distribution of the death benefit must start
                              within one year after Your death. It may start
                              later if prescribed by federal regulations.

                              If the primary beneficiary is the surviving spouse
                              when You die, the surviving spouse may elect to be
                              the successor Certificate Owner of this
                              Certificate, in lieu of receiving a death benefit.
                              In such a case, there will be no requirement to
                              start a distribution of death benefits.

ANNUITY PERIOD PROVISIONS

Election of Annuity Option    We must receive an election of Annuity option in
                              writing. You may make an election before the
                              Annuity Date providing the Annuitant is alive. The
                              Annuitant may make an election on the Annuity Date
                              unless You have restricted the right to make such
                              an election. The beneficiary may make an election
                              when We pay the death benefit.

                              An election will be revoked by 1. a subsequent
                              change of beneficiary; or 2. an assignment of this
                              Certificate unless the assignment provides
                              otherwise.

                              Subject to the terms of the death benefit
                              provision, the beneficiary may elect to have the
                              death benefit remain with Us under one of the
                              Annuity options.

                              If an Annuity option is not elected, an Annuity
                              will be paid under Option 3 for a Guaranteed
                              Period of ten years and for as long thereafter as
                              the payee is alive.

                              If the total Certificate Value is applied under
                              one of the Annuity options, this Certificate must
                              be surrendered to Us.

                              An option cannot be changed after the first
                              Annuity payment is made.

                              If, on the seventh calendar day before the first
                              Annuity payment due date, all the Certificate
                              Value is allocated to the Fixed Account or
                              Guarantee Periods, the Annuity will be paid as a
                              Fixed Annuity. The Fixed Annuity is funded in Our
                              General Account, which consists of Our assets
                              other than those allocated to the Separate Account
                              or any other separate account. If all of the
                              Certificate Value on such date is allocated to the
                              Separate Account, the Annuity will be paid as a
                              Variable Annuity. If the Certificate Value on such
                              date is allocated to both the fixed Account or a
                              Guarantee Period and a Subaccount, then the
                              Annuity will be paid as a combination of a Fixed
                              and a Variable Annuity. A Fixed and Variable
                              Annuity payment will reflect the investment
                              performance of the Subaccounts in accordance with
                              the allocation of the Certificate Value existing
                              on such date. Allocations will not be changed
                              thereafter, except as provided in the . Transfers
                              During the Annuity Period provision of this
                              Certificate.
<PAGE>

ANNUITY PERIOD PROVISIONS (Continued)

                              Payments for all options are derived from the
                              applicable tables. Current Annuity rates will be
                              used if they produce greater payments than those
                              quoted in this Certificate. The age in the tables
                              is the age of the payee on the last birthday
                              before the first payment is due. We reserve the
                              right to deduct one year from the age for each 10
                              calendar years that have elapsed since the year
                              2000.

                              The option selected must result in a payment that
                              is at least equal to Our minimum payment,
                              according to Our rules, at the time the Annuity
                              option is chosen. If at any time the payments are
                              less than the minimum payment, We have the right
                              to increase the period between payments to
                              quarterly, semi-annual or annual so that the
                              payment is at least equal to the minimum payment
                              or to make payment in one lump sum.

OPTION 1

Specified Period              We will make monthly payments for a fixed number
                              of installments. Payments must be made for at
                              least 5 years, but not more than 30 years.

OPTION 2

Life Annuity                  We will make monthly payments while the payee is
                              alive.

OPTION 3

Life Annuity with             We will make monthly payments for a Guaranteed
Installments Guaranteed       Period and thereafter while the payee is alive.
                              The Guaranteed Period must be selected at the time
                              the Annuity option is chosen. The Guaranteed
                              Periods available are 5, 10, 15 and 20 years.

OPTION 4

Joint and Survivor Annuity    We will pay the full monthly income while both
                              payees are alive. Upon the death of either payee,
                              We will continue to pay the surviving payee a
                              percentage of the original monthly payment. The
                              percentage payable to the surviving payee must be
                              selected at the time the Annuity option is chosen.
                              The percentages available are 50%, 66 2/3%, 75%
                              and 100%.

OTHER OPTIONS                 We may make other Annuity options available.
                              Payments are also available on a quarterly, semi-
                              annual or annual basis.

Fixed Annuity                 The Certificate Value allocated to the Fixed
                              Account or the Guarantee Periods on the first day
                              preceding the date on which the first Annuity
                              payment is due is first reduced by any premium
                              taxes and charges that apply. The value that
                              remains will be used to determine the Fixed
                              Annuity monthly payment in accordance with the
                              Annuity option selected.

L-8697                                                                   Page 17
<PAGE>

L-8697                                                                   Page 18

ANNUITY PERIOD PROVISIONS (Continued)

Variable Annuity              The Separate Account Certificate Value, at the end
                              of the Valuation Period preceding the Valuation
                              Period that includes the date on which the first
                              Annuity payment is due, is first reduced by any
                              Records Maintenance Charge, charges for other
                              benefits if any that may be added by a rider to
                              this Certificate and any premium taxes that apply.
                              The value that remains is used to determine the
                              first monthly Annuity payment. The first monthly
                              Annuity payment is based upon the guaranteed
                              Annuity option shown in the Annuity Option Table.
                              You may elect any option available.

                              The dollar amount of subsequent payments may
                              increase or decrease depending on the investment
                              experience of each Subaccount. The number of
                              Annuity Units per payment will remain fixed for
                              each Subaccount unless a transfer is made. If a
                              transfer is made, the number of Annuity Units per
                              payment will change. Some annuity options provide
                              for a reduction in the income level upon the death
                              of an Annuitant, which will reduce the number of
                              Annuity Units.

                              The number of Annuity Units for each Subaccount is
                              calculated by dividing a. by b. where:

                              a. is the amount of the monthly payment that can
                              be attributed to that Subaccount, and

                              b. is the Annuity Unit Value for that Subaccount
                              at the end of the Valuation Period. The Valuation
                              Period includes the date on which the payment is
                              made.

                              Monthly Annuity payments, after the first payment,
                              are calculated by summing up, for each Subaccount,
                              the product of a. times b. where:

                              a. is the number of Annuity Units per payment in
                              each Subaccount; and

                              b. is the Annuity Unit Value for that Subaccount
                              at the end of the Valuation Period. The Valuation
                              Period includes the date on which the payment is
                              made.

                              After the first payment, We guarantee that the
                              dollar amount of each Annuity payment will not be
                              affected adversely by actual expenses or changes
                              in mortality experience from the expense and
                              mortality assumptions on which We based the first
                              payment.

Annuity Unit Value            The value of an Annuity Unit for each Subaccount,
                              at the end of any subsequent Valuation Period is
                              determined by multiplying the result of a. times
                              b. by c. where:

                              a. is the Annuity Unit Value for the immediately
                              preceding Valuation Period; and

                              b. is the net investment factor for the Valuation
                              Period for which the Annuity Unit Value is being
                              calculated; and

                              c. is the interest factor of .99993235 per
                              calendar day of such subsequent Valuation Period
                              to offset the effect of the assumed rate of 2.50%
                              per year used in the Annuity Option Table. A
                              different interest factor will be used if an
                              assumed rate other than 2.50% is used in the
                              Annuity Option Table.
<PAGE>

ANNUITY PERIOD PROVISIONS (Continued)

                              The net investment factor for each Subaccount for
                              any Valuation Period is determined by dividing a.
                              by b. where:

                              a. is the value of an Annuity Unit of the
                              applicable Subaccount as of the end of the current
                              Valuation Period plus or minus the per share
                              charge or credit for taxes reserved.

                              b. is the value of an Annuity Unit of the
                              applicable Subaccount as of the end of the
                              immediately preceding Valuation Period, plus or
                              minus the per share charge or credit for taxes
                              reserved.

Transfers During the          During the Annuity Period, the payee(s) may not
Annuity Period                convert fixed Annuity payments to Variable Annuity
                              payments. However, during the Annuity Period,
                              the payee(s), by sending Us a written notice in a
                              form satisfactory to Us, may convert Variable
                              Annuity payments to Fixed Annuity payments; or
                              have Variable Annuity payments reflect the
                              investment experience of other Subaccounts. A
                              transfer may be made subject to the following:

                              1. Transfers from a Subaccount to the General
                              Account can be effective only on an anniversary of
                              the first Annuity payment date. We must receive
                              notice of such transfer at least thirty days prior
                              to the effective date of the transfer. Unless You
                              specify otherwise, transfers to the General
                              Account from the Separate Account will be
                              proportional among the Subaccounts.

                              2. Transfers from one Subaccount to another
                              Subaccount will be effective during the Valuation
                              Period next succeeding the date the notice is
                              received by Us. However, if the notice for the
                              transfer is received within seven days immediately
                              preceding an Annuity payment date, the transfer
                              will be effective during the Valuation Period next
                              succeeding that Annuity payment date.

                              3. We reserve the right to limit the number of
                              transfers between Subaccounts to no less than one
                              each Certificate Year.

                              4. We reserve the right to limit the number of
                              Subaccounts that may be used at one time to no
                              less than 3.

                              5. Requests for transfers must meet Our current
                              rules and be in a form acceptable to Us.

                              The number of Annuity Units per payment
                              attributable to a Subaccount to which transfer is
                              made is equal to, in the case of a transfer
                              between Subaccounts, the number of Annuity Units
                              per payment in the Subaccount from which transfer
                              is being made multiplied by the Annuity Unit Value
                              for that Subaccount divided by the Annuity Unit
                              Value for the Subaccount to which transfer is
                              being made.

L-8697                                                                   Page 19
<PAGE>

L-8697                                                                   Page 20

ANNUITY PERIOD PROVISIONS (Continued)

                              The amount of money allocated to the General
                              Account in the event of a transfer from a
                              Subaccount equals the Annuity reserve for the
                              payee's interest in such Subaccount. The Annuity
                              reserve is the product of a. multiplied by b.
                              multiplied by c. where: a. is the number of
                              Annuity Units representing the payee's interest in
                              such Subaccount per Annuity payment; b. is the
                              Annuity Unit Value for such Subaccount; and c. is
                              the present value of $1.00 per payment period
                              using the attained age(s) of the payee(s) and any
                              remaining guaranteed payment that may be due at
                              the time of the transfer. The fixed monthly
                              payments resulting from the transfer will not be
                              less than the amount purchased using the
                              guarantees under this Certificate. Money allocated
                              to the General Account upon such transfer will be
                              applied under the same Annuity option as
                              originally elected. Any Guaranteed Period payments
                              will be adjusted to reflect the number of
                              guaranteed payments that have already been made.
                              If all guaranteed payments have already been made,
                              no further payments will be guaranteed.

                              All amounts and Annuity Unit Values are determined
                              as of the end of the Valuation Period which
                              precedes the effective date of the transfer.

                              We reserve the right at any time and without
                              notice to any party to terminate, suspend or
                              modify the transfer privileges.

Supplementary Agreement       A supplementary agreement will be issued to
                              reflect payments that will be made under a
                              settlement option. If payment is made as a death
                              benefit distribution, the effective date will be
                              the date of death. Otherwise the effective date
                              will be the date chosen by the Certificate Owner.

Date of First Payment         Interest, under an option, will start to accrue on
                              the effective date of the supplementary agreement.
                              The supplementary agreement will provide details
                              on the payments to be made.

Evidence of Age, Sex          We may require satisfactory evidence of the age,
and Survival                  sex and the continued survival of any person on
                              whose life the income is based.

Misstatement of Age or Sex    If the age or sex of the payee has been misstated,
                              the amount payable under this Certificate will be
                              such as the Purchase Payments sent to Us would
                              have purchased at the correct age or sex. Interest
                              not to exceed 6% compounded each year will be
                              charged to any overpayment or credited to any
                              underpayment against future payments We make under
                              this Certificate.

Basis of Annuity Options      The guaranteed monthly payments are based on an
                              interest rate of 2.50% per year and where
                              mortality is involved, the A2000 Table developed
                              by the Society of Actuaries. We may also make
                              available Variable Annuity payment options based
                              on assumed investment rates other than 2.50% but
                              not greater than 5%.

Disbursement of Funds         When the payee dies, the value of any unpaid
Upon Death of Payee:          installments will be paid in one sum, to the
Under Options 1 or 3          estate of the payee unless otherwise provided in
                              the agreement. The commuted value for fixed
                              installments based upon a minimum interest rate of
                              not less than 2.50% will be paid. The commuted
                              value of any variable installments will be
                              determined by applying the Annuity Unit Value next
                              determined following Our receipt of due proof of
                              death and will be based on the Assumed Investment
                              Return.

Protection of Benefits        Unless otherwise provided in the supplementary
                              agreement, the payee may not commute, anticipate,
                              assign, alienate or otherwise hinder the
                              receipt of any payment.
<PAGE>

                             ANNUITY OPTION TABLE
          AMOUNT OF MONTHLY PAYMENT FOR EACH $1,000 OF VALUE APPLIED

Option One - Specified Period

 Number               Number               Number              Number
of years   Monthly   of years   Monthly   of years   Monthly  of years   Monthly
selected   Payment   selected   Payment   selected   Payment  selected   Payment
--------------------------------------------------------------------------------
      5     17.69       12        8.01       19        5.48      26        4.33
      6     14.92       13        7.48       20        5.27      27        4.22
      7     12.94       14        7.03       21        5.08      28        4.11
      8     11.46       15        6.64       22        4.90      29        4.02
      9     10.31       16        6.29       23        4.74      30        3.92
     10      9.39       17        5.99       24        4.59
     11      8.64       18        5.72       25        4.46
--------------------------------------------------------------------------------

Options Two and Three - Life Annuity With Installments Guaranteed

Age of   Monthly Payments Guaranteed   Age of        Monthly Payments Guaranteed
 Male                                  Female
Payee                                  Payee

        None     60   120   180   240           None     60    120    180    240

   55   4.17   4.16  4.13  4.06  3.96     55    3.87   3.86   3.84   3.81   3.75
   56   4.27   4.25  4.21  4.14  4.03     56    3.95   3.94   3.92   3.88   3.82
   57   4.36   4.35  4.30  4.22  4.09     57    4.03   4.02   4.00   3.95   3.88
   58   4.46   4.45  4.40  4.30  4.16     58    4.11   4.11   4.08   4.03   3.95
   59   4.57   4.55  4.50  4.39  4.22     59    4.21   4.20   4.17   4.11   4.01
   60   4.69   4.67  4.60  4.48  4.29     60    4.30   4.29   4.26   4.19   4.08
   61   4.81   4.79  4.71  4.57  4.36     61    4.41   4.40   4.35   4.28   4.15
   62   4.94   4.92  4.83  4.66  4.43     62    4.52   4.50   4.46   4.37   4.23
   63   5.09   5.05  4.95  4.76  4.49     63    4.64   4.62   4.56   4.46   4.30
   64   5.24   5.20  5.08  4.86  4.56     64    4.76   4.74   4.68   4.56   4.37
   65   5.40   5.35  5.21  4.96  4.62     65    4.90   4.87   4.80   4.66   4.45
   66   5.57   5.52  5.35  5.06  4.69     66    5.04   5.01   4.93   4.77   4.52
   67   5.75   5.69  5.49  5.17  4.75     67    5.19   5.16   5.06   4.87   4.59
   68   5.95   5.87  5.64  5.27  4.81     68    5.36   5.32   5.20   4.98   4.66
   69   6.15   6.07  5.80  5.37  4.86     69    5.53   5.49   5.35   5.10   4.73
   70   6.38   6.27  5.96  5.48  4.91     70    5.72   5.68   5.51   5.21   4.80
   71   6.61   6.49  6.12  5.58  4.96     71    5.93   5.87   5.67   5.33   4.86
   72   6.86   6.72  6.29  5.68  5.00     72    6.15   6.08   5.85   5.44   4.92
   73   7.13   6.96  6.47  5.77  5.04     73    6.39   6.31   6.03   5.56   4.97
   74   7.42   7.21  6.64  5.86  5.08     74    6.65   6.55   6.21   5.67   5.02
   75   7.72   7.48  6.82  5.95  5.11     75    6.93   6.81   6.41   5.78   5.06
   76   8.05   7.76  7.00  6.03  5.14     76    7.24   7.08   6.60   5.88   5.10
   77   8.40   8.06  7.18  6.11  5.17     77    7.57   7.38   6.80   5.98   5.13
   78   8.77   8.37  7.35  6.18  5.19     78    7.92   7.69   7.01   6.07   5.16
   79   9.18   8.69  7.53  6.25  5.20     79    8.31   8.02   7.21   6.15   5.18
   80   9.60   9.03  7.70  6.31  5.22     80    8.72   8.37   7.41   6.23   5.20
   81  10.06   9.38  7.86  6.36  5.23     81    9.17   8.74   7.61   6.30   5.22
   82  10.55   9.74  8.02  6.41  5.24     82    9.66   9.13   7.80   6.35   5.23
   83  11.07  10.12  8.17  6.45  5.25     83   10.20   9.54   7.98   6.41   5.24
   84  11.63  10.50  8.32  6.49  5.26     84   10.77   9.96   8.15   6.45   5.25
   85  12.22  10.89  8.45  6.52  5.26     85   11.39  10.40   8.31   6.49   5.26
--------------------------------------------------------------------------------

Option Four - Joint and 100% Survivor Annuity

Age of                          Age of Female Payee
 Male
Payee       55       60       65       70        75       80      85
   55      3.49     3.66     3.81     3.93      4.02     4.08    4.12
   60      3.61     3.83     4.05     4.24      4.40     4.52    4.59
   65      3.69     3.97     4.28     4.57      4.84     5.05    5.20
   70      3.76     4.09     4.47     4.89      5.31     5.67    5.85
   75      3.80     4.17     4.63     5.16      5.75     6.34    6.83
   80      3.83     4.23     4.73     5.37      6.14     6.99    7.80
   85      3.84     4.26     4.80     5.51      6.44     7.55    6.75

Rates for ages not shown here will be provided upon request.

L-8697                                                                   Page 21
<PAGE>

GROUP FLEXIBLE PREMIUM MODIFIED GUARANTEED, FIXED AND VARIABLE DEFERRED
ANNUITY CERTIFICATE

NON-PARTICIPATING

ALL PAYMENTS AND VALUES PROVIDED BY THIS CERTIFICATE WHEN BASED ON THE
INVESTMENT EXPERIENCE OF THE SUBACCOUNTS ARE VARIABLE AND ARE NOT GUARANTEED AS
TO DOLLAR AMOUNT. WITHDRAWALS AND TRANSFERS FROM THE GUARANTEED PERIOD VALUE
BEFORE THE END OF THE GUARANTEED PERIOD ARE SUBJECT TO A MARKET VALUE
ADJUSTMENT.

This is a legal Certificate between the Certificate Owner and Kemper Investors
Life Insurance Company.

READ YOUR CERTIFICATE CAREFULLY

Kemper Investors Life Insurance Company
A Stock Life Insurance Company
1 Kemper Drive, Long Grove, Illinois 60049-0001

Policy Form No. L-8697