EXHIBIT 4(a): Form of Variable Annuity Contract

[LOGO] THE
       ACACIA
       GROUP

                   FLEXIBLE PREMIUM DEFERRED VARIABLE ANNUITY
                  Annuity Payments Begin on the Maturity Date.
                Non-participating Specifications Shown on Page 3.

        Acacia Life Insurance Company, a District of Columbia Corporation

Service Center:                                        Home Office:
P.O. Box 82579                                         51 Louisiana Avenue, N.W.
Lincoln, Nebraska 68501-2579                           Washington, D.C. 20001

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   Policy Number:
   Policy Owner:
   Annuitant:
   Policy Date:
   Maturity Date:
   Account Manager:
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WE AGREE TO PAY - The benefits provided in this policy, subject to its terms and
conditions.

   /s/ Robert John H. Sands                          /s/ Robert Clyde

     Robert John H. Sands                              Robert Clyde
          Secretary                                     President

Acacia Life Insurance  Company will pay you, if living,  the annuity payments as
set forth in this Policy  beginning on the Maturity  Date. If you die before the
Maturity  Date and while this Policy is in force,  we will pay the Death Benefit
according to the Policy provisions.

                           READ YOUR POLICY CAREFULLY
               IT INCLUDES THE PROVISIONS ON THE FOLLOWING PAGES.

        THIS POLICY IS A LEGAL CONTRACT BETWEEN THE OWNER AND ACACIA LIFE
                       INSURANCE COMPANY ("ACACIA LIFE").

The Owner may cancel the Policy within 10 days after the Owner  receives it. The
Owner should mail or deliver the Policy to either Acacia Life or the  Registered
Representative who sold the Policy. If the Policy is canceled within this 10 day
"Free  Look",  the Policy will be deemed void,  and in most states,  Acacia Life
will refund the Policy  Account Value at the end of the Valuation  Period during
which the Policy is  received  by Us.  This may be more or less than the Initial
Premium Payment.

The following  applies only in those states in which Acacia Life,  upon exercise
of the Free Look right is required to refund the greater of Premiums Paid or the
Policy Account Value.  Notwithstanding  the allocations in the  Application,  in
such states,  Acacia Life  reserves  the right to allocate  the initial  Premium
Payment  allocated to Subaccounts of the Variable Account in its entirety to the
Acacia Capital Calvert Money Market Variable Sub-account, (on the Policy Date or
the date the first Premium is received, whichever is later) until the end of the
Free Look  Period  (which is  administratively  assumed  to be 15 days after the
Policy Date for allocation purposes). If We so allocate Payments, We will refund
the greater of the Premium  Payments or the Policy  Account  Value.  A refund of
Premium  paid by check may be delayed  until the check has  cleared  the Owner's
bank.

You may change the Investment  Allocation any time before the Maturity Date. You
must specify Your new  allocation  choices.  Payments  received after We receive
Your Request will be applied based on the new allocation.

THIS IS A FLEXIBLE  PREMIUM  DEFERRED  VARIABLE  ANNUITY  POLICY.  THE  POLICY'S
ACCUMULATION  VALUE IN EACH  SUB-ACCOUNT OF THE VARIABLE ACCOUNT IS BASED ON THE
INVESTMENT  EXPERIENCE IN THAT ACCOUNT AND WILL INCREASE OR DECREASE DAILY.  THE
DOLLAR AMOUNT IS NOT  GUARANTEED.  SEE VARIABLE  ACCOUNT VALUE PROVISION ON PAGE
12. NO DIVIDENDS ARE PAYABLE.

The Policy Account Value in the General  Account will  accumulate  interest at a
minimum  rate of 4.0% a year,  although  additional  interest  in  excess of the
guaranteed rate may be credited at our sole discretion.

ALLOCATOR 2001 ANNUITY FLEXIBLE PREMIUM DEFERRED VARIABLE PRODUCT:
*ANNUITY PAYMENTS BEGIN ON MATURITY DATE *FLEXIBLE PREMIUMS  *NON-PARTICIPATING;
NO DIVIDENDS *SOME BENEFITS REFLECT INVESTMENT RESULTS

   ACACIA LIFE INSURANCE COMPANY, a District of Columbia Corporation
   Service Center:                  Home Office:
   P.O. Box 82579                   51 Louisiana Avenue, NW
   Lincoln, NE  68501-2579          Washington, D.C. 20001
                                                    Toll-Free: 1-888-837- [LOGO]

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PLEASE READ THIS POLICY CAREFULLY. IT IS A LEGAL CONTRACT BETWEEN YOU AND US.
IN THIS POLICY:  YOU OR YOUR MEANS THE OWNER AS SHOWN IN THE  APPLICATION OR THE
LATEST CHANGE FILED WITH US. WE, OUR OR US MEANS ACACIA LIFE INSURANCE COMPANY.
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                                  INTRODUCTION

     This is a  Variable  Annuity  - an  individual  flexible  premium  deferred
variable annuity policy (the "Policy")  offered by Acacia Life Insurance Company
("Acacia  Life").  The Policy presents a dynamic concept in retirement  planning
designed to give Policy Owners  flexibility in attaining  financial  goals.  The
Policy is available  for  individuals  as a non-tax  qualified  retirement  plan
("Non-Qualified  Plan") or in connection  with a retirement plan qualified under
Section 401, 403, or 408 of the Internal Revenue Code ("Qualified Plan").

     During the Accumulation Period, the Policy provides for the accumulation of
a Policy Owner's value on either a variable  basis, a fixed basis,  or both. The
Policy also provides  several options for annuity  payments to begin on a future
date.  Premium payments may be allocated at the Policy Owner's discretion to one
or more of the  Sub-accounts of the Variable Account or to Acacia Life's General
Account ("Fixed Account").  Each Sub-account of the Variable Account will invest
solely  in  a  corresponding   series  ("Portfolio")  of  various  mutual  funds
("Funds").  The  Prospectuses You received for the Funds describe the investment
objectives and the attendant risks of the Portfolios.

     The Policy Account Value in the Fixed Account will accrue interest at rates
that are paid by Acacia Life as described in the "The General Account".

     The Policy  Account Value in the Variable  Account under a Policy will vary
based on investment  performance of the Sub-accounts to which the Policy Account
Value is allocated. No minimum amount of Policy Account Value is guaranteed.

THIS POLICY IS NOT A DEPOSIT OR OBLIGATION OF, OR GUARANTEED OR ENDORSED BY, ANY
BANK OR  DEPOSITORY  INSTITUTION.  THE  POLICY  IS NOT  FEDERALLY  ISSUED BY THE
FEDERAL DEPOSIT INSURANCE CORPORATION,  THE FEDERAL RESERVE BOARD OR ANY AGENCY,
AND INVOLVES  INVESTMENT  RISK,  INCLUDING  POSSIBLE  LOSS OF  PRINCIPAL  AMOUNT
INVESTED.

                                        2
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                           POLICY SPECIFICATIONS PAGE

                       Policy Number:     4109089131
                       Policy Owner:      John A Specimen
                       Annuitant:         John A Specimen
                       Policy Date:       April 25, 2001
                       Maturity Date:     April 25, 2056
                       Account Manager:   KEVIN L PETERSEN

TYPE OF COVERAGE - Flexible Premium Deferred Variable Annuity

Initial Premium:           $25,000.00

Premium Payment Mode:      Single          Planned Periodic Premium:       $0.00

Subsequent Premiums are due at the discretion of the Owner with a $30 minimum.

                                     Page 3
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                           POLICY SPECIFICATIONS PAGE
                                    CONTINUED

                       LIST OF SUBACCOUNTS AND PORTFOLIOS

Each  subaccount of the Acacia Life  Insurance  Company  (Acacia Life)  Separate
Account II invests in a specific portfolio of the following:

<TABLE>
<CAPTION>
                                                                                     INITIAL ALLOCATION
ADVISOR/SUBADVISOR          FUND                         PORTFOLIO                    OF NET PREMIUMS
<S>                         <C>                          <C>                               <C>
Calvert Asset               Calvert Social               Money Market                       0%
Management                                               Balanced                           0%
Company, Inc.                                            Small Cap Growth                   0%
                                                         Mid Cap Growth                     0%
                                                         International Equity              25%
</TABLE>

Net premiums may also be allocated to the Acacia Life Fixed Account.

                                                              INITIAL ALLOCATION
                                                               OF NET PREMIUMS
     Acacia Life Fixed Account                                       0%

                               Page 3 (continued)
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POLICY SPECIFICATIONS PAGE
                                    CONTINUED

                                 POLICY CHARGES

Annual Policy Fee:            $42.00 each policy year will be deducted each year
                              on or before the Policy Anniversary Date, Maturity
                              Date, or upon  Surrender.  Fee waived when account
                              value exceeds $50,000.

Mortality and Expense         Equal on an annual  basis to 1.25% of the  average
Risk Charge:                  daily  net  assets  of the  Separate  Account  and
                              calculated  monthly.  The  Mortality  and  Expense
                              Charge  ("M&E") is  guaranteed to decrease by .05%
                              of the  average  daily net assets of the  Separate
                              Account on an annual basis,  beginning in year 16,
                              until it  reaches  .50% of the  average  daily net
                              assets of the Separate  Account on an annual basis
                              at the end of year 30. (See  Mortality and Expense
                              Calculation Section).

                              Not to exceed .10% of the average daily net assets
                              of  the  Separate  Account  on  annual  basis  and
                              calculated monthly.

Administrative Expense Charge:

                               Page 3 (continued)
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                           POLICY SPECIFICATIONS PAGE
                                    CONTINUED

                          SCHEDULE OF SURRENDER CHARGES

YOU  MAY  WITHDRAW  100%  OF  EARNINGS  (SINCE  THE  LAST  ANNIVERSARY)  IN  ALL
SUB-ACCOUNTS AND THE FIXED ACCOUNT FREE OF SURRENDER CHARGES.  ADDITIONALLY,  UP
TO 10% OF THE POLICY ACCOUNT VALUE (AS OF THE LAST ANNIVERSARY); PLUS 10% OF THE
FOLLOWING

(1)  DEPOSITS SINCE THE LAST ANNIVERSARY; MINUS

(2)  WITHDRAWALS SINCE THE LAST ANNIVERSARY

MAY ALSO BE WITHDRAWN  FREE OF  SURRENDER  CHARGES.  UPON A PARTIAL  WITHDRAWAL,
SURRENDER OR ANNUITIZATION  WE WILL APPLY THE SURRENDER CHARGE  PERCENTAGE SHOWN
BELOW TO THOSE  PREMIUM  PAYMENTS  RECEIVED  WITHIN  FIVE  YEARS OF THE  PARTIAL
WITHDRAWAL  OR  SURRENDER  DATE.  AFTER THE FREE  AMOUNTS  ARE  DETERMINED,  THE
CALCULATION WILL BE BASED ON A FIRST-IN FIRST-OUT BASIS.

       YEARS SINCE                                   PERCENTAGE OF
     PREMIUM PAYMENT                              EACH PREMIUM PAYMENT

       1                                                  8%
       2                                                  8%
       3                                                  8%
       4                                                  6%
       5                                                  4%
       6 AND LATER                                        0%

                                  INTEREST RATE

                  FIXED ACCOUNT MINIMUM GUARANTEED RATE: 4.00%

                     IMPORTANT INFORMATION TO POLICYHOLDERS

In the event you need to  contact  someone  about this  Policy  for any  reason,
please  contact  your  Registered  Representative.  If you have  any  additional
questions you may contact the Acacia Life  Insurance  Company  Service Office at
the following address and telephone number:  P.O. Box 82579,  Lincoln,  Nebraska
68501-2579; toll free number 1-888-837-6791.

If you  are  unable  to  contact  the  Company  or  resolve  a  problem  to your
satisfaction,  you may contact the District of Columbia  Department of Insurance
and Securities Regulation,  810 First Street, N.E., Suite 701, Washington,  D.C.
2002; phone: (202) 727-8000.

                               Page 3 (continued)
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                                TABLE OF CONTENTS

INTRODUCTION...................................................................2

POLICY SPECIFICATIONS..........................................................3

POLICY CHARGES.................................................................3

TABLE OF CONTENTS..............................................................4

DEFINITIONS....................................................................5

GENERAL PROVISIONS.............................................................8

     The Policy................................................................8

     Misstatement of Age or Sex................................................8

     Nonparticipating..........................................................8

     Periodic Reports..........................................................8

     Policy Dates..............................................................8

     Termination...............................................................8

     Owner and Joint Owner.....................................................9

     Beneficiary Change........................................................9

     Assignment................................................................9

PREMIUM PAYMENTS...............................................................9

     Initial Premium...........................................................9

     Additional Premium........................................................9

     Payment Allocation.......................................................10

GENERAL ACCOUNT...............................................................10

     General Description......................................................10

     Transfer Limitation......................................................10

     Fixed Account Value......................................................10

VARIABLE ACCOUNT..............................................................11

     General Description......................................................11

     Sub-accounts.............................................................11

     Investment Allocations...................................................11

     Additions, Deletions, or Substitutions of

     Investments..............................................................11

     Transfers from Sub-accounts..............................................12

     Automatic Rebalancing, Dollar Cost Averaging,

        and Interest Sweep Programs...........................................12

     Variable Account Value...................................................12

     Accumulation Unit Value..................................................13

     Net Investment Factor....................................................13

     Mortality and Expense Risk and

     Administrative Charge Calculation........................................13

POLICY ACCOUNT VALUE..........................................................14

     Description..............................................................14

     Basis of Calculations....................................................14

POLICY CHARGES AND DEDUCTIONS.................................................14

PARTIAL WITHDRAWALS AND SURRENDERS............................................14

     Surrender Policy.........................................................14

     Surrender Value..........................................................14

     Partial Withdrawal.......................................................15

     Payment upon Partial Withdrawal or

     Surrender................................................................15

     Waiver of Surrender Charges..............................................15

     Confinement to a Hospital or Nursing Home................................15

PAYMENT OF BENEFITS...........................................................16

     Description..............................................................16

     Death Benefit............................................................16

     Payment of Policy Benefits...............................................17

     Annuity Payment Options..................................................18

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                                   DEFINITIONS

ACCUMULATION  PERIOD - The  period  before  the  Maturity  Date and  during  the
lifetime of the Annuitant.

ACCUMULATION  UNIT VALUE - An  accounting  unit of measure used to calculate the
value of Your  interest in  Sub-accounts  of the Variable  Account.  The initial
number of Accumulation  Units to be credited to each  Sub-account of this Policy
will be determined by dividing the net premium  allocated to each Sub-account by
the Accumulation Unit Value for that Sub-account for that Valuation Period.

AGE - Age at last birthday.

ACACIA LIFE -Acacia Life Insurance Company.

ANNUITANT - The person or person(s) whose life is used to determine the duration
of Annuity  Payments  involving  life  contingencies.  The  Annuitant  must be a
natural person. The Annuitant may also be the Owner of the Policy.

ANNUITY  PAYMENT  OPTIONS - The options  that are  available  for payment of the
Surrender Value of the Policy commencing upon the Maturity Date.

BENEFICIARY  - The  person(s)  or  legal  entity  listed  by  the  Owner  in the
Application or as changed, and referred to in this Policy as the Beneficiary.

DUE PROOF OF DEATH - A certified copy of a death  certificate,  a certified copy
of a decree of a court of competent  jurisdiction  as to the finding of death, a
written statement by the attending physician, or any other proof satisfactory to
Us.

EARNINGS - The excess of Policy Account Value minus Premiums Paid.

ELIGIBLE  INVESTMENT(S) - Those investments available under the Policy.  Current
Eligible Investments are shown on the Specifications Page.

FIXED  ACCOUNT - The Account  via which  Owners may  allocate  or  transfer  net
Premium Payments to the General Account of Acacia Life. An initial allocation or
transfer  into  the  Fixed  Account  does not  entitle  an Owner to share in the
investment  experience of the General Account.  Instead,  Acacia Life guarantees
that Policy Account Value in the Fixed Account will accrue interest at an annual
rate of at least 4%. Any  excess  interest  rate when  declared  will  remain in
effect at least one year.

FREE  WITHDRAWAL  AMOUNT - That portion of any Partial  Withdrawal  or Surrender
that is not subject to a Surrender Charge under the terms of the Policy.

FUND - A registered,  open-end management  investment company.  Each Sub-account
invests exclusively in shares of a single Portfolio of such investment company.

GUARANTEED  INTEREST RATE - The applicable  effective annual Guaranteed Interest
Rate  established  in good faith by the Company for an Interest  Rate  Guarantee
Period of the General Account at any given time.

GENERAL  ACCOUNT - The assets of Acacia  Life  other than those in the  Variable
Account or any other separate account.

INTEREST RATE GUARANTEE  PERIOD - A specified  period whereby funds allocated to
the Fixed Account accumulate at a Guaranteed  Interest Rate. Interest Rates will
be determined on no less than an annual basis.

INVESTMENT  ALLOCATION  - The  percent  of each  Premium  Payment  You choose to
allocate to the Fixed Account or any of the variable Sub-Accounts We offer.

IRREVOCABLE BENEFICIARY - A Beneficiary whose interest cannot be changed without
his or her consent or as required by law.

JOINT  ANNUITANT - The person other than the  Annuitant who may be designated by
the Owner and whose  life is also used to  determine  the  duration  of  Annuity
Payments involving life contingencies. If one of the Joint Annuitants dies prior
to the Maturity

<PAGE>

Date, the survivor shall become the sole Annuitant.

MATURITY DATE - The date upon which Annuity Payments begin.  Owners may choose a
Maturity  Date  commencing  no later  than the first day of the month  after the
Annuitant's 90th birthday.

NET ASSET VALUE - For each  Portfolio,  the  current  price of one share of that
Portfolio.  The  Net  Asset  Value  is  computed  by  adding  the  value  of the
Portfolio's  investments plus cash and other assets,  deducting  liabilities and
then dividing the result by the number of its shares outstanding.  The Net Asset
Value of each  Portfolio is generally  calculated on each day the New York Stock
Exchange is open as of the close of business.

NET PREMIUM PAYMENT - The Premium less any applicable premium taxes.

OWNER - The person named on the Application as Owner or the persons named on the
Application  as Joint Owners.  Any reference to Owner in the Policy will include
both Owners if joint.  The Owner(s) is entitled to all of the  ownership  rights
under the  Policy.  The Owner has the  legal  right to make all  changes  in the
Policy designations where permitted specifically by the terms of the Policy. The
Owner is as specified in the Application, unless changed.

POLICY ACCOUNT VALUE - The total value held in both the Variable Account and the
General Account.

POLICY DATE - The date set forth in the Policy that is used to determine  Policy
years and months. Policy Anniversaries are measured from the Policy Date.

PORTFOLIO - A separate investment portfolio of an open-end management investment
company (mutual fund) in which the Variable Account assets are invested.

PREMIUM  PAYMENT  - An  amount  paid to  Acacia  Life  in  accordance  with  the
provisions of this Policy.

SERVICE  OFFICE - The office where  Policy  administration  is done,  whether at
Acacia Life or at the offices of a third party  administrator,  as designated by
Acacia Life in writing.

SINGLE  PREMIUM  POLICY - Between  Annuitant ages 75 and 85, we will accept only
Single  Premium  Policies.  The Premium is due on the Policy  Date.  The maximum
Premium that can be paid without the prior approval of Acacia Life is $500,000.

SUB-ACCOUNTS  - The  sub-divisions  of the  Variable  Account  which each invest
exclusively in shares of a specified Portfolio or any other investment portfolio
with a specific  investment  objective that we determine to be suitable for this
Policy's purposes.

SURRENDER  VALUE - The  Policy  Account  Value as of any  Valuation  Date of all
amounts  accumulated in the Fixed Account and in the Variable Account under this
Policy prior to the Maturity Date, reduced by applicable  Surrender Charges, the
Annual Policy Fee and any Premium or other taxes.

SYSTEMATIC  PARTIAL  WITHDRAWALS  - Owners  choosing this option will withdraw a
level  dollar  amount  of  their  Policy  Account  Value  on a  periodic  basis.
Systematic Partial  Withdrawals are subject to the same surrender charges as any
partial withdrawals, as set forth on the Specifications Page.

VALUATION  DATE - Each  regular  business  day that Acacia Life and the New York
Stock Exchange is open for business,  and excluding holidays,  and any other day
in which  there is  insufficient  trading in the Fund  Portfolio  securities  to
materially affect the value of the assets in the Variable Account.

VALUATION PERIOD - The period between two successive Valuation Dates, commencing
at the  close of  business  on each  Valuation  Date and  ending at the close of
business for the next succeeding Valuation Date.

VARIABLE  ACCOUNT - Acacia Life Insurance  Company Separate Account II (Variable
Account).  A separate  investment account has been established by Acacia Life to
receive and invest the net Premiums paid under this Policy. The Variable Account
is currently  divided into a number of Sub-accounts.  Each  Sub-account  invests
exclusively in shares of a single portfolio of a management investment company.

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VARIABLE  ACCOUNT VALUE - The sum of the values held in all the  Sub-accounts of
the Variable Account.

                               GENERAL PROVISIONS

                                   THE POLICY

The  Allocator  2001 Annuity is a Flexible  Premium  Deferred  Variable  Annuity
Policy.

     (a)  The  Policy  may  be  purchased  on  a  non-tax   qualified   basis  (
          Non-qualified  Policy).  The Policy may also be purchased  and used in
          connection with  retirement  plans or individual  retirement  accounts
          that qualify for favorable  federal  income tax  treatment  (Qualified
          Policy) as more fully set forth in applicable Riders.

     (b)  Before it will issue a Policy,  Acacia  Life must  receive a completed
          Policy Application. A minimum Premium Payment of $300 during the first
          Policy year is required.

     (c)  The Policy and attached copy of the  Application  (except as otherwise
          may be  required  by law),  and any  applicable  Riders are the entire
          contract.  Only Our Elected  Officers can agree to change or waive any
          provisions of the Policy.  Any change or waiver must be in writing and
          signed by such Officer.

                           MISSTATEMENT OF AGE OR SEX

If the age or sex of the Annuitant has been misstated the benefits payable under
the Policy will be equal to the benefits  which the Premium  Payments would have
provided  for the correct  age or sex.  (If such  distinction  based upon sex is
allowed).

We may  require  proof of the age of the  Annuitant  before  making any  Annuity
Payments provided for by this Policy.

If a misstatement  of age or sex results in monthly income payments that are too
large, the overpayments  will be deducted from future payments.  If We have made
payments that are too small, the underpayment will be added to the next payment.
Adjustments for overpayments or underpayment  will include the compound interest
rate used to determine the Annuity Payments.

                                NONPARTICIPATING

No dividends will be paid.  Neither You nor the  Beneficiary of this Policy will
have the right to share in Our surplus earnings or profits.

                                PERIODIC REPORTS

At least once each Policy Year we will send You a statement  showing Your Policy
Account  Value  as of a date  not  more  than  two  months  prior to the date of
mailing.  We will also send such  statements  as may be required  by  applicable
state and federal laws, rules, and regulations.

                                  POLICY DATES

Policy months,  years and Policy Anniversaries are measured from the Policy Date
shown on the Specifications Page.

                                   TERMINATION

This Policy will remain in force until Surrendered for its full value, a Payment
Option has been elected, or the Death Benefit has been paid.

After  the  first  five  Policy  years,  we may  cancel  this  Policy if for two
subsequent  years You have not made any Premium  Payments and the Policy Account
Value is less than $2,000 or would  provide  for less than $20 monthly  payments
under any Annuity  Payment  Option.  We will then pay You the Surrender Value in
one lump sum.

<PAGE>

                              OWNER AND JOINT OWNER

The Policy Owner is the  individual  named as such in the  Application or in any
later change shown in Acacia Life's records. There may be Joint Owners. Prior to
the Maturity Date and during any  Annuitant's  lifetime,  only the Owner has the
right to receive all benefits and may exercise the rights under this Policy.  If
there are Joint  Owners,  the  signatures  of both Owners are needed to exercise
rights under the Policy.

If the  Annuitant  is not an Owner and the  Annuitant  dies before the  Maturity
Date,  the Owner  may name a new  Annuitant.  If the  Owner  does not name a new
Annuitant,  the Owner or Joint Owners will become the  Annuitant.  If one of the
Joint  Annuitants  die prior to the Maturity Date, the survivor shall become the
sole Annuitant.

                               BENEFICIARY CHANGE

You may change  the named  Beneficiary  by  sending a written  request in a form
acceptable to Us at Our Service Office unless the Beneficiary is irrevocable. If
the named Beneficiary is irrevocable,  You may change the named Beneficiary only
by joint written request from You and such named Beneficiary.

You need not  send Us the  Policy  unless  We  request  it.  When  recorded  and
acknowledged  by Us, the change will be  effective as of the date You signed the
request. The change will not apply to any payments made or other action taken by
Us before the change has been recorded and acknowledged by Us.

ASSIGNMENT

You may assign this Policy as collateral,  unless  prohibited  elsewhere in this
Policy or applicable  Rider. We will not be bound by the Assignment until a copy
is filed  with Us.  We assume  no  responsibility  for  determining  whether  an
Assignment is valid or the extent of the assignees interest.

No  Beneficiary  may assign any benefits under the Policy until the benefits are
due. To the extent  permitted  by law,  payments are not subject to the debts of
any  Beneficiary  nor to any judicial  process for payment of the  Beneficiary's
debts.

                                PREMIUM PAYMENTS

INITIAL PREMIUM

If the  Application  can be accepted in the form  received,  We will credit Your
initial Net Premium Payment to the Policy Account Value within two business days
after receipt of the initial Premium Payment. The amount credited to Your Policy
Account Value will be the Premium Payment less any applicable taxes.

If the initial  Premium  Payment cannot be credited  because the  Application or
other issuing  requirements  are  incomplete,  the  Applicant  will be contacted
within five business days and given an  explanation  for the delay.  The initial
Premium  Payment will be returned at that time unless the Applicant  consents to
the retention of the initial  Premium  Payment by Acacia Life,  which would,  in
that case credit it, as soon as the necessary  requirements  are  fulfilled.  At
least $300 must be paid during the first policy year.

ADDITIONAL PREMIUM

Additional  Premium  Payments  are  payable at Our Service  Office.  The minimum
additional  Premium  Payment is $30.  Additional  Net Premium  Payments  will be
credited to the Policy and added to the Policy Account Value as of the Valuation
Date when they are received at Our Service Office.

While the Annuitant is living and prior to the Maturity Date, the Owner may make
additional  Premium  Payments  at  any  time,  and in any  frequency  until  the
Annuitant  reaches age 75. We will not accept any  additional  Premium  Payments
beginning on the Policy Anniversary next following the Annuitants 75th birthday.
Only Single Premium Policies will be written between ages 75 and 85.

PAYMENT ALLOCATION

We will  allocate  Your net  Premium  Payments  among the Fixed  Account and the
Sub-accounts based on the Investment  Allocation You specify.  These allocations
are subject to a minimum 5% designated  percentage  proportion per account. Your
initial Investment Allocation is shown on the Specifications Page.

<PAGE>

You may change the Investment  Allocation any time before the Maturity Date. You
must specify Your new  allocation  choices.  Payments  received after We receive
Your Request will be applied based on the new allocation.

                                 GENERAL ACCOUNT

GENERAL DESCRIPTION

The General Account consists of all assets owned by Acacia Life other than those
in the Variable Account and other separate accounts.  Subject to applicable law,
Acacia Life has sole discretion over the investment of the assets in the General
Account.

The Acacia  General  Account is supported by assets of the Company that are held
in the General  Account.  Premiums  applied and any amounts  transferred  to the
General  Account  are  credited  with a fixed rate of  interest  for a specified
period. This is the account known as the "Fixed Account".

The allocation of Premium  Payments  and/or  transfer of Policy Account Value to
the  Fixed  Account  does not  entitle  an  Owner  to  share  in the  investment
experience of the General Account. Instead, the guaranteed interest rate used in
the  calculation  of the  Fixed  Account  Value  is  the  amount  stated  on the
Specifications Page,  compounded annually. A higher amount of interest in excess
of the guaranteed rate may be used in the calculation of the Fixed Account Value
at such times and in such a manner as We may  determine.  Interest rates will be
determined on no less than an annual basis.

Prior to the Maturity  Date an Owner may elect to allocate net Premium  Payments
to the Fixed  Account or to transfer  Policy  Account Value to or from the Fixed
Account (subject to certain  restrictions upon transfers from the Fixed Account,
as discussed, below).

TRANSFER LIMITATION

The maximum amount  allowed to be transferred  during one policy year is 100% of
Fixed Account interest accrued since the last Anniversary; plus 10% of

(1)  Account Value of the Fixed Account as of the last Anniversary; plus

(2)  Deposits  and  transfers  made  into  the  Fixed  Account  as of  the  last
     Anniversary; minus

(3)  All partial withdrawals from the Fixed Account since the last Anniversary.

You may also elect to systematically  reallocate all interest generated from the
Fixed Account into the  Sub-accounts on an interest only basis according to Your
allocation election. (See, Interest Sweep Program).

FIXED ACCOUNT VALUE

We will credit  Premium  Payments  allocated to the Fixed  Account to Your Fixed
Account Value. The Fixed Account Value at any time equals:

(1)  The net Premium Payments allocated to the Fixed Account; plus

(2)  The total of all amounts transferred to the Fixed Account from the Variable
     Account; minus

(3)  The total of all amounts transferred from the Fixed Account to the Variable
     Account; minus

(4)  The total of all Policy Fees attributable to the Fixed Account; minus

(5)  The total of all Partial  Withdrawals from the Fixed Account (including any
     Surrender charges); plus

(6)  Interest.

<PAGE>

                                VARIABLE ACCOUNT

GENERAL DESCRIPTION

The variable  benefits  under Your Policy are provided  through  investments  in
Acacia Life Insurance  Company  Separate Account II which is referred to in this
Policy as the Variable  Account.  The Variable Account is kept separate from Our
General Account.  We established the Variable  Account as a separate  investment
account to support variable annuity contracts.

We own the assets of the  Variable  Account.  Assets  equal to the  reserves and
other  liabilities of the Variable  Account will not be charged with liabilities
that arise from any other  business We conduct.  We may  transfer to our General
Account  assets which exceed the reserves and other  liabilities of the Variable
Account.

The Variable  Account is registered with the Securities and Exchange  Commission
as a unit investment trust under the Investment  Company Act of 1940. It is also
governed by the laws of the District of Columbia.

SUB-ACCOUNTS

The  Variable  Account has a number of  Sub-accounts.  Each series  represents a
separate investment portfolio of various registered investment companies. Shares
of a portfolio are  purchased and redeemed for a Sub-account  at their Net Asset
Value.  All  available  Sub-accounts  of the  Variable  Account are shown on the
Policy Specifications Page. You determine the percentage of net Premium Payments
which will be allocated to each Sub-account.

Income  and  realized  and  unrealized  gains or losses  from the assets of each
Sub-account  of the  Variable  Account are  credited to or charged  against that
Sub-account without regard to income,  gains or losses in the other Sub-accounts
of the Variable Account, the General Account or any other separate accounts.

INVESTMENT ALLOCATIONS

An Owner may elect to allocate net Premium  Payments to the General  Account via
the Fixed Account,  to Sub-accounts of the Variable Account,  or both. The Owner
may also transfer value from the Sub-accounts to the Fixed Account,  or from the
Fixed Account to the Sub-accounts subject to the limitation on transfer from the
Fixed  Account.  (See,  Fixed  Account  -  Transfer  Limitation).  You may  make
unlimited  transfers from the  Sub-accounts  to the General  Account and between
such  Sub-accounts.  We will value the assets of each  Sub-account at the end of
each Valuation Period.

ADDITIONS, DELETIONS, OR SUBSTITUTION OF INVESTMENTS

We  reserve  the right to  transfer  assets  of a  Sub-account  or the  Variable
Account, which We determine to be associated with the class of policies to which
the Policy belongs,  to another Subaccount or Variable Account.  If this type of
transfer is made, the Sub-account or Variable  Account  specified in this Policy
shall then refer to the Sub-account or Variable Account to which the assets were
transferred.

When permitted by law, We also reserve the right:

     1.   to create additional  Variable Accounts;  to create Sub-accounts from,
          or combine or remove  Sub-accounts  from the Variable  Account;  or to
          combine any two or more Variable Accounts;

     2.   to  operate  any  one or  more  of the  Sub-accounts  as a  management
          investment  company under the 1940 Act or in any other form  permitted
          by law;

     3.   to deregister the unit investment trusts under the 1940 Act;

     4.   to modify the  provisions  of this  Policy to comply  with  applicable
          laws;

     5.   to  restrict  or  eliminate  any  voting  rights of any Owner or other
          persons who have voting rights as to the Sub-accounts.

If you object to a material change in the investment  Policy of a Sub-account in
which You have at such time a portion  of Your  Policy  Account  Value,  You may
transfer such portion of Your Policy Account Value,  upon written request,  from
that Sub-account, without charge, to another Subaccount or to the Fixed Account.
You may then change your Premium allocation  percentages.  The investment policy
of a  Sub-account  shall not be changed  without the  approval of the  Insurance
Supervisory Official from the District of Columbia. A statement of such approval
process is on file with the District of Columbia.

<PAGE>

TRANSFERS FROM SUB-ACCOUNTS

Any time prior to the Maturity  Date,  the Owner may ask Acacia Life to transfer
all or part of the amount in one of the  Sub-accounts to another  Sub-account or
to the Fixed Account. The minimum for such transfer is $50. The transfer will be
made as of the date Acacia  Life  receives  the  written  request at Our Service
Office.

AUTOMATIC REBALANCING, DOLLAR COST AVERAGING, AND INTEREST SWEEP PROGRAMS

The Owner may also elect from the Automatic Rebalancing Program, the Dollar Cost
Averaging   Program  or  the  Interest   Sweep   Program  by  filing  a  written
authorization with Acacia Life. Acacia Life reserves the right to alter,  assess
a charge,  or  terminate  these  administrative  programs  upon 30 days  advance
written notice.

Under the Automatic  Rebalancing Program, the Owner may have automatic transfers
on either a  monthly,  quarterly,  semi-annual  or annual  basis,  to adjust the
values  among  the  Sub-accounts  and the  Fixed  Account  to meet  the  Owner's
designated  percentage  account  value  proportions  the  Owner has on file with
Acacia Life. The allocations are subject to a 5% minimum.

Acacia Life also  offers an option  under  which  Policy  Owners may dollar cost
average  their   allocations  to  the  Variable  Account  under  the  Policy  by
authorizing  Acacia Life to make periodic  transfers of specific  dollar amounts
from  the  Money  Market  Sub-account  to one or  more of the  other  designated
Sub-accounts, on either a monthly, quarterly,  semi-annual or annual basis. Each
transfer is subject to a $50  minimum  transfer  amount  pursuant to the Owner's
Allocation election.

Dollar cost  averaging  does not guarantee  profits,  nor does it assure that an
Owner will not lose principal.  If a periodic transfer would reduce the value in
the Money  Market  Sub-account  below the  minimum  dollar  amount,  Acacia Life
reserves the right to transfer the entire  remaining Policy Account Value in the
Money  Market  Sub-account.  Acacia Life also  reserves the right to establish a
minimum  Money  Market  Sub-account  balance  before  We allow  You to elect the
program.

The Interest Sweep Program allows Owners to systematically  reallocate  interest
earnings  from  the  Fixed  Account  to one or more of the  Sub-accounts  of the
Variable  Account  on a  monthly,  quarterly,  semi-annual,  or annual  basis as
designated by the Owner.

Transfers and  adjustments  pursuant to these Programs will occur on the monthly
Policy  Anniversary  Date in the month in which the transaction is to take place
or the next succeeding business day if the monthly Policy Anniversary Date falls
on a day other than a Valuation Date.

VARIABLE ACCOUNT VALUE

The Variable Account Value will be the sum total of each Sub-account's value. At
any Valuation Date each  Sub-account's  value is equal to the Accumulation Units
multiplied by the  Accumulation  Unit Value.  The initial number of Accumulation
Units to be credited to this Policy for each  Subaccount  is  determined  at the
time of initial Premium Payment by dividing the net Premium  Payments  allocated
to each Sub-account by the Accumulation  Unit Value for that Sub-account for the
Valuation  Period  during  which the  Application  is accepted.  For  additional
Premium  Payments the number of units of each  Sub-account  credited  under this
Policy is  determined  by dividing  the net Premium  Payments  allocated to that
Sub-account  by the unit value for that  Sub-account at the end of the Valuation
Period during which We receive the Premium Payment at Our Service Office.

On each  monthly  Policy  Anniversary  Date We will  make a  deduction  from the
Variable   Account  Value  for  both  the  Mortality  and  Expense   Charge  and
Administrative  Charge  equal to, on an annual  basis,  the amount  shown on the
Specifications Page.

ACCUMULATION UNIT VALUE

Each Sub-account's  Accumulation Unit Value for any subsequent  Valuation Period
is determined by multiplying  the  Accumulation  Unit Value for the  immediately
preceding  Valuation  Period by the "net  investment  factor" for the  Valuation
Period  for  which  the  value  is being  determined.  The  value of a  Variable
Accumulation  Unit may  increase or decrease  from one  Valuation  Period to the
next, since the net investment factor may be greater or less than one.

NET INVESTMENT FACTOR

The net investment  factor is an index that measures the investment  performance
of a Sub-account from one Valuation Period to

<PAGE>

the next.  The net  investment  factor for each  Sub-account  for any  Valuation
Period is determined by dividing (a) by (b), where:

(a)  is the net result of:

     (1)  the Net  Asset  Value per share of the  portfolio  shares  held in the
          Sub-account  determined as of the end of the current Valuation Period,
          plus

     (2)  the per share  amount of any  dividend or capital  gain  distributions
          made  by the  portfolio  on  shares  held  in the  Sub-account  if the
          "ex-dividend" date occurs during the current Valuation Period, plus or
          minus

     (3)  a per unit charge or credit for any taxes  incurred by or reserved for
          in the  Sub-account,  which is  determined  by Acacia to have resulted
          from the maintenance of the Sub-account; and

(b)  is the net result of:

     (1)  the Net  Asset  Value per share of the  portfolio  shares  held in the
          Sub-account  determined  as of the  end of the  immediately  preceding
          Valuation Period, plus or minus

     (2)  the  per  unit  charge  or  credit  for  any  taxes  reserved  for the
          immediately preceding Valuation Period.

MORTALITY AND EXPENSE RISK AND ADMINISTRATIVE CHARGE CALCULATION

The Mortality and Expense charge as discussed on the Policy  Specifications Page
is calculated on a monthly basis. This monthly  deduction  consists of a monthly
charge not to exceed  .000036740  for each  Valuation  Date  (1.35% on an annual
basis) for assets held in each Subaccount of the Variable Account.  This monthly
charge will be reduced as follows:

                                       ANNUAL M&E          MONTHLY CHARGE NOT TO
                                   WITH ADMINISTRATIVE        EXCEED FOR EACH
POLICY YEAR       ANNUAL M&E         EXPENSE CHARGE           VALUATION DATE

  1 to 15           0.0125               0.0135                0.000036740
    16              0.012                0.013                 0.000035388
    17              0.0115               0.0125                0.000034035
    18              0.011                0.012                 0.000032682
    19              0.0105               0.0115                0.000031328
    20              0.01                 0.011                 0.000029973
    21              0.0095               0.0105                0.000028618
    22              0.009                0.01                  0.000027262
    23              0.0085               0.0095                0.000025905
    24              0.008                0.009                 0.000024548
    25              0.0075               0.0085                0.000023190
    26              0.007                0.008                 0.000021831
    27              0.0065               0.0075                0.000020471
    28              0.006                0.007                 0.000019111
    29              0.0055               0.0065                0.000017751
    30+             0.005                0.006                 0.000016389

                              POLICY ACCOUNT VALUE

DESCRIPTION

The Policy  Account Value is the total amount of value held in both the Variable
Account and the General Account.

BASIS OF CALCULATIONS

All values are at least equal to those required by the law of the state in which
the Policy is  delivered.  We have  filed with that state a detailed  settlement
method of calculating values for the Policy. With regard to amounts allocated to
the Fixed Account,  the Accumulation  Value,  Surrender Value, Death Benefit and
paid-up  Annuity  Benefit are not less than those required by the state in which
this Policy is delivered.

<PAGE>

                          POLICY CHARGES AND DEDUCTIONS

(a)  ANNUAL POLICY FEE - An annual  charge,  shown on the Policy  Specifications
     Page, is deducted on each Policy Anniversary on or before the Maturity Date
     or at  once  upon  a  Surrender.  The  Policy  fee  is  deducted  from  the
     Sub-accounts on a pro rata basis by canceling Accumulation Units.

(b)  ADMINISTRATIVE  EXPENSE CHARGE - A charge equal, on an annual basis, to the
     amount shown on the Specifications Page. The Administrative  Expense Charge
     is deducted monthly by canceling  accumulation units and compensates Us for
     some of the costs associated with the administration of this Policy and the
     Separate Account.

(c)  MORTALITY AND EXPENSE RISK CHARGE - A charge equal,  on an annual basis, to
     the amount shown on the Specifications Page. The Mortality and Expense Risk
     Charge is deducted monthly by canceling  accumulation units and compensates
     Us for assuming the mortality and expense risks under this Policy.

(d)  OTHER -  Depending  on Fund  choices,  other  charges  may  apply,  such as
     management fees or other expenses.

(e)  SURRENDER CHARGES - upon a Partial Withdrawal, Annuitization, or Surrender,
     we will apply the Surrender Charge  percentage shown on the  Specifications
     Page.

(f)  TAXES - Various states impose a tax on Annuity Premium Payments. Such taxes
     will be deducted as applicable.

                       PARTIAL WITHDRAWALS AND SURRENDERS

SURRENDER POLICY

Prior to the earlier of the Maturity Date or the Date of the Death of the Owner,
You may withdraw  all or a portion of the current  Surrender  Value,  on written
request to Our Service Office. If there are Joint Owners, both must agree to the
withdrawal.

SURRENDER VALUE

The Surrender  Value is equal to the Policy  Account  Value less any  applicable
Surrender Charges, the Annual Policy Fee, and any Premium or other Taxes.

The appropriate  surrender charge percentage of each Premium Payment used in the
Surrender  Charge  calculation  is  determined  by the number of years since the
Premium Payment was deposited.

To  determine  the  Surrender  Charge  for a  particular  Premium  Payment,  the
Surrender  Charge  percentage  is  multiplied  by the Premium  Payment  less any
withdrawals  previously  allocated to the Premium  Payment.  The total Surrender
Charge is then  determined  by summing  the  previous  result  over all  Premium
Payments  used in the  calculation.  The  Surrender  Charge will be based on the
excess of the Surrender amount over the Free Withdrawal  Amount.  This excess is
distributed  over the  Premium  Payments on a  first-in,  first-out  basis until
exhausted.

PARTIAL WITHDRAWAL

You may  request to make a Partial  Withdrawal.  You may tell Us how to allocate
the withdrawal  amount among the Fixed Account and the  Sub-accounts.  If You do
not specify how to allocate the  withdrawal  amount among the Fixed  Account and
the  Sub-accounts,  We will prorate the amount among Your percentage  allocation
elections to the Fixed Account and the Sub-accounts  based on the Policy Account
Value of each account.

We will  impose  Surrender  Charges as more fully set out on the  Specifications
Page. One hundred percent (100%) of earnings (since the last Anniversary) in all
Sub-accounts  and the Fixed Account may be withdrawn free of Surrender  Charges.
Additionally,   up  to  10%  of  the  Policy  Account  Value  (as  of  the  last
Anniversary); plus 10% of

     (1)  deposits since the last Anniversary; minus
     (2)  withdrawals  since the last  Anniversary may also be withdrawn free of
          Surrender Charges.

<PAGE>

PAYMENT UPON PARTIAL WITHDRAWAL OR SURRENDER

We will normally pay any Partial  Withdrawal or Surrender from the  Sub-accounts
to You, or to any other Payee that you designate, within seven (7) Business Days
after We  receive  Your  written  request  in a form  satisfactory  to us at our
Service  Office,  unless you  choose a  different  date.  We can  postpone  such
payments or any  transfers  of amounts  between  Sub-accounts  or into the Fixed
Account if:

     (a)  the New York Stock Exchange is closed for other than customary weekend
          and holiday closings;

     (b)  trading on the New York Stock Exchange is restricted;

     (c)  an  emergency  exists as  determined  by the  Securities  and Exchange
          Commission,  as a result of which it is not  reasonably  practical  to
          determine the value of the net assets of the Separate Account;

     (d)  the  Securities  and  Exchange   Commission   permits  delay  for  the
          protection of security holders.

The applicable rules of the Securities and Exchange Commission will govern as to
whether the conditions in (c) or (d) exist.

We may also defer  payment  of  Partial  Withdrawals  or  Surrenders  of General
Account  Value from the Fixed  Account  for up to six months  from the date Your
written request is received at Our Service  Office.  We will pay interest on any
amount  deferred for (30) days or more.  The interest  rate will be at least the
Minimum Guaranteed Interest Rate stated in the Specifications Page.

WAIVER OF SURRENDER CHARGES

We will  waive  any  applicable  Surrender  Charges  if you  request  a  Partial
Withdrawal or Surrender  under the following  conditions,  provided that You are
eligible as described below.

CONFINEMENT TO A HOSPITAL OR NURSING HOME - Surrender  Charges will be waived if
any  Owner is  confined  at the  recommendation  of a  physician  for  medically
necessary reasons for at least 30 consecutive days to:

     (a)  a hospital  licensed or recognized  as general  hospital by the proper
          authority of the state in which it is located; or

     (b)  a hospital recognized as a general hospital by the Joint Commission on
          the Accreditation of Hospitals; or

     (c)  a place certified as a hospital by Medicare; or

     (d)  a nursing  home - defined as a facility  licensed  and  operated  as a
          Skilled  Nursing   Facility,   an  Intermediate  Care  Facility  or  a
          Residential  Care Facility by the jurisdiction in which it is located.
          Skilled and  Intermediate  Care Facilities must provide  continuous 24
          hours a day  nursing  care  and  maintain  daily  medical  records.  A
          Residential   Care  Facility  must  provide  nursing  care  under  the
          supervision of a R.N. by having a registered  nurse on duty 24 hours a
          day; or

     (e)  a place certified by Medicare as a Long Term Care Facility.

You must provide  proof of  confinement  and request the Partial  Withdrawal  or
Surrender no later than 91 days after the last day of confinement.

We will not accept any  additional  Premium  Payments  after you  exercise  this
Waiver.

You are not  eligible  for this  Waiver if any Owner was  confined  to a nursing
home, hospital, or Long Term Care Facility on the Policy Date.

<PAGE>

                               PAYMENT OF BENEFITS

DESCRIPTION

You may decide how the benefits  will be paid.  During the Owner's  lifetime You
may arrange for the Death Benefits to be paid in a single lump sum or subject to
any limitation under any state or federal law, rule, or regulation, under one of
the Annuity Payment Options,  unless a settlement  agreement is effective at the
date of death.  If no election is made within 60 days of the date that due proof
of death is received at Our Service  Office We will pay the Death  Benefits in a
single lump sum. We will also pay Benefits in a single lump sum if the Surrender
Value is less than $2,000 or would  provide  for less than $20 monthly  payments
under any Annuity Payment Option. These choices are also available if You decide
to  Surrender  the Policy or at its  Maturity  Date.  Similarly,  if you make no
election, we will pay the Surrender Value in a single lump sum.

If any  Owner  or  Joint  Owner  dies  prior to the  Maturity  Date,  and if the
designated Beneficiary does not elect to receive the Death Benefit in a lump sum
at that time,  then we will increase the Policy  Account Value so that it equals
the Death  Benefit  amount,  if that  amount is higher  than the Policy  Account
Value. This would occur if the Owner's  designated  Beneficiary  elects to delay
receipt of the proceeds for up to five years, or is the deceased  Owner's spouse
and elects to continue the Policy,  or elects to receive the proceeds as Annuity
Payments.  (See, Death Benefit,  below). Any such increase in the Policy Account
Value would be paid by us, and  allocated to the  Sub-accounts  in proportion to
the pre-existing Policy Account Value unless we are instructed otherwise.

DEATH BENEFIT

If any Owner or Joint Owner dies before the Maturity  Date,  the Policy will end
and the Death Benefit will be paid to the Beneficiary, unless the Beneficiary is
the surviving  spouse.  A spouse who is the  Beneficiary  may either receive the
Death  Benefit and the Policy will end, or the spouse may elect to continue  the
Policy in force.

If there are Joint Owners,  the designated  Beneficiary  is the surviving  Joint
Owner. If both Joint Owners die  simultaneously,  the Death Benefit will be paid
to the named Beneficiary.

If an Owner of this Policy is a corporation or other legal person, the Annuitant
will be treated as an Owner of this  Policy  for  purposes  of the timing or the
amount of the payout under this Policy.

If any Owner or joint  Owner  dies on or after  the  Annuity  starting  date and
before all the proceeds have been paid,  any remaining  proceeds will be paid at
least as  rapidly  as under  the  payment  option  in effect at the time of such
Owner's death.

If the Owner or Joint  Owner  dies  before  the  Maturity  Date,  then any Death
Benefit  will be paid  within  five  years  after the date of death  unless  the
Beneficiary  is a  surviving  spouse who elects to continue  the  Policy.  (See,
below). The five-year rule does not apply to that portion of the proceeds which:

     a.   is payable to or for the benefit of an individual  named  Beneficiary;
          and

     b.   will be paid over the  lifetime or the life  expectancy  of that named
          Beneficiary

as long as payments begin not later than one year after the date of the deceased
Owner or Joint Owner's death.

If any Owner or Joint Owner dies before the Maturity Date,  Acacia Life will pay
the Death Benefit  proceeds to the Beneficiary  upon receipt of due proof of the
Owner's death and instructions regarding payment to the Beneficiary,  unless the
Beneficiary is the surviving  spouse. A spouse who is the Beneficiary may either
receive  the Death  Benefit  and the Policy will end, or the spouse may elect to
continue the Policy in force.  If there is no named  Beneficiary,  living on the
date of death of the Owner,  Acacia Life will pay the Death Benefit  proceeds to
the Owner's estate. For this purpose the death benefit will be:

If any Owner  (including  an Owner that is also the  Annuitant)  dies during the
first five years of the Policy,  the Death  Benefit will be equal to the greater
of the Policy Account Value or cumulative Premiums less cumulative  withdrawals.
On the fifth Policy Anniversary a Minimum Guaranteed Death Benefit is calculated
as the greater of these values. Every five years thereafter through the Maturity
Date, a new Minimum Guaranteed Death Benefit is calculated as the greater of the
current Minimum Guaranteed Death Benefit or the Policy Account Value.

<PAGE>

For Owners up to issue age 75, the Minimum  Guaranteed Death Benefit  (increased
for Premiums Paid and decreased for cumulative withdrawals from the current five
year  period  until the date of death) is  compared to the greater of the Policy
Account Value or the cumulative Premiums Paid less cumulative  withdrawals.  The
Death Benefit will be the highest of:

     1.   Minimum Guaranteed Death Benefit;

     2.   Policy Account Value at the date of payment;

     3.   Cumulative  Premiums  Paid  less  cumulative   withdrawals  (including
          surrender charges).

For Owners over issue age 75, the Death Benefit is the greater of either:

     1.   Policy Account Value at the date of payment; or

     2.   Cumulative  Premiums  Paid  less  cumulative   withdrawals  (including
          surrender charges).

If the  Annuitant  is not an Owner and the  Annuitant  dies before the  Maturity
Date,  the Owner  may name a new  Annuitant.  If the  Owner  does not name a new
Annuitant, the Owner will become the Annuitant.

PAYMENT OF POLICY BENEFITS

We will pay interest from the Maturity  Date shown on the Policy  Specifications
Page to the Date of Payment. The interest rate will be at least the minimum rate
shown on the  Specifications  Page.  We will make  these  payments  to the Payee
according to the Annuity Payment Option  elected.  We will make payments only if
the Annuitant is living and this Policy is in force on that date.

You may request to change the Maturity Date shown on the Specifications Page. We
must receive  Your Request not later than thirty days before the Maturity  Date.
Any Irrevocable Beneficiary must consent in writing.

Before the Maturity Date, You may choose or change any Annuity  Payment  Option.
You must send Us Your  written  request  not later than  thirty  days before the
Maturity  Date.  You may not change the Option You  elected  after the  Maturity
Date.  If no election is made We will pay the  Surrender  Value in a single lump
sum.

When Payments become payable to a Beneficiary  under a selected  Annuity Payment
Option and the  Beneficiary  has the right to withdraw  the entire  amount,  the
Beneficiary may name and change contingent beneficiaries.

We  guarantee  that the dollar  amount of each Annuity  Payment  after the first
Payment will not be affected by variations in mortality experience.

<PAGE>

ANNUITY PAYMENT OPTIONS

The amount and duration of Annuity  Payments will depend on the Annuity  Payment
Option  that You  select.  Once an  Annuity  Payment  Option  is  selected,  the
Surrender  Value for the  Valuation  Period  which ends  immediately  before the
Maturity Date will be  transferred to the Acacia Life General  Account,  and the
Annuity  Payments will be fixed in amount by the Annuity Payment Option selected
and the age and sex (if sex distinction is allowed) of the Annuitant.

1)   OPTION A - INTEREST FOR LIFE

We will pay interest on the amount  retained for the lifetime of the  Annuitant.
At the Annuitant's death, We will pay the principal amount to the Beneficiary or
as otherwise agreed.

2)   OPTION B - INTEREST FOR A FIXED PERIOD

We will pay interest on the retained  amount for a fixed period of not more than
30 years. At the end of the period,  We will pay the principal  amount to You or
as otherwise agreed.

3)   PAYMENTS FOR A FIXED PERIOD - OPTION C

We will pay the amount retained, with interest, in equal monthly payments, for a
period of not more than 30 years.  The amount of each  payment  will be based on
Our payment  schedule as of the date payments start.  These payments will not be
less than those shown below.


--------------------------------------------------------------------------------
                          MONTHLY INSTALLMENTS FOR EACH
                            $1,000 OF AMOUNT RETAINED
--------------------------------------------------------------------------------
YRS.   AMT.   YRS.  AMT.   YRS.   AMT.   YRS.   AMT.   YRS.   AMT.   YRS.   AMT.
--------------------------------------------------------------------------------
 1    84.84    6   15.56    11    9.31    16    7.00    21    5.81    26    5.10
 2    43.25    7   13.59    12    8.69    17    6.71    22    5.65    27    5.00
 3    29.40    8   12.12    13    8.17    18    6.44    23    5.49    28    4.90
 4    22.47    9   10.97    14    7.72    19    6.21    24    5.35    29    4.80
 5    18.32   10   10.06    15    7.34    20    6.00    25    5.22    30    4.72
--------------------------------------------------------------------------------

4)   PAYMENTS OF A FIXED AMOUNT - OPTION D

We will pay the amount retained, with interest, in equal payments until the fund
has been paid in full. The total payments in any year must be at least 5% of the
amount retained.

5)   LIFE INCOME-OPTION E

We will pay the amount  retained,  in  monthly  installments  adjusted  based on
current credited interest, in monthly installments, as shown in the table on the
following  page, for the guaranteed  period elected and continue them during the
lifetime  of the person  upon  whose life the option is based.  You may elect to
have no guaranteed  period or a guaranteed  period of 5, 10, or 15 years, or the
period in which the total payments will equal the amount  retained  (Installment
Refund).

<PAGE>

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                          MONTHLY LIFE INCOME PAYMENTS
                       FOR EACH $1,000 OF AMOUNT RETAINED
--------------------------------------------------------------------------------
                                   GUARANTEED PERIODS
--------------------------------------------------------------------------------
                       MALE                                 FEMALE
AGE    -------------------------------------------------------------------------
                                  PAYMENT                               PAYMENT
          10 YRS.     20 YRS.      REFUND       10 YRS.     20 YRS.      REFUND
--------------------------------------------------------------------------------
 45        4.58        4.47         4.48         4.29        4.25         4.24
 46        4.64        4.52         4.53         4.34        4.29         4.28
 47        4.71        4.57         4.58         4.39        4.33         4.33
 48        4.77        4.63         4.64         4.45        4.38         4.38
 49        4.84        4.68         4.70         4.50        4.43         4.43

 50        4.91        4.73         4.77         4.56        4.48         4.48
 51        4.99        4.79         4.83         4.63        4.53         4.54
 52        5.07        4.85         4.90         4.69        4.58         4.59
 53        5.15        4.91         4.97         4.76        4.64         4.65
 54        5.24        4.97         5.05         4.83        4.70         4.72

 55        5.33        5.03         5.13         4.91        4.76         4.79
 56        5.43        5.09         5.21         4.99        4.82         4.86
 57        5.54        5.15         5.30         5.08        4.88         4.93
 58        5.65        5.21         5.39         5.17        4.95         5.01
 59        5.76        5.27         5.49         5.27        5.01         5.10

 60        5.88        5.34         5.59         5.37        5.08         5.19
 61        6.01        5.40         5.70         5.48        5.15         5.28
 62        6.14        5.45         5.82         5.59        5.22         5.38
 63        6.28        5.51         5.94         5.71        5.29         5.48
 64        6.43        5.57         6.06         5.84        5.35         5.59

 65        6.58        5.62         6.19         5.97        5.42         5.71
 66        6.73        5.67         6.33         6.12        5.48         5.83
 67        6.89        5.71         6.48         6.26        5.55         5.96
 68        7.06        5.75         6.63         6.42        5.61         6.10
 69        7.22        5.79         6.79         6.58        5.66         6.24

 70        7.39        5.82         6.95         6.76        5.71         6.40
 71        7.57        5.85         7.13         6.94        5.76         6.56
 72        7.74        5.88         7.31         7.12        5.80         6.73
 73        7.91        5.90         7.50         7.31        5.84         6.91
 74        8.08        5.92         7.70         7.50        5.87         7.10

 75        8.25        5.94         7.91         7.70        5.90         7.31
 76        8.42        5.95         8.13         7.90        5.92         7.52
 77        8.58        5.97         8.36         8.10        5.94         7.75
 78        8.73        5.97         8.59         8.29        5.96         7.98
 79        8.88        5.98         8.84         8.48        5.97         8.23

 80        9.02        5.99         9.09         8.66        5.98         8.49

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