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                                  EXHIBIT 4(c)

             FORM OF VARIABLE ANNUITY CONTRACT, FORM NO. VVAP U 1101

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Peoples Benefit Life Insurance Company
Variable Annuity Contract

Peoples Benefit Life Insurance Company
(Herein referred to as the "Company")
An Iowa Stock Company
Home Office: Cedar Rapids, Iowa
Administrative Office: Valley Forge, Pennsylvania 19482


FLEXIBLE PREMIUM VARIABLE ANNUITY
NON-PARTICIPATING

Peoples Benefit Life Insurance Company (the "Company") has issued this Contract
in consideration of the Initial Premium Payment.

This is a legal Contract between the Owner and the Company. Peoples Benefit Life
Insurance Company agrees to provide the benefits and other rights described in
this Contract in accordance with this Contract. Please read it carefully.

This Contract permits the accumulation of funds on a tax-deferred basis and
provides a periodic Annuity Payment for the life of the Annuitant or for a
certain period of time. Payments start on the Income Date.

Benefits based on the performance of the Separate Account are variable and are
not guaranteed as to amount.

RIGHT TO CANCEL CONTRACT - FREE LOOK PERIOD
If for any reason the Owner is not satisfied with the Contract, he or she may
return it to the Company within [10] days after receipt of the Contract (plus 5
days mailing time). It may be returned by delivering or mailing it to Vanguard
Annuity and Insurance Services, P.O. Box 1105, Valley Forge, PA 19482. If
returned, the Contract shall be void from the Contract Date. The Company will
refund the Accumulated Value.

Signed for the Company at the Home Office.


Craig D. Vermie                             Bart Herbert, Jr.
Secretary                                   President


VVAP U 1101

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                                TABLE OF CONTENTS

I. Contract Schedule Page....................................................  4

II. Definitions..............................................................  5

III. Premium Payments, Options, Benefits.....................................  6

      Initial Premium Payments and Subsequent Premium Payments ..............  6
      Administrative/Maintenance Fee.........................................  7
      Mortality and Expense Risk Fee.........................................  7
      The Separate Account...................................................  7
      Subaccounts............................................................  7
      Premium Allocation to the Subaccounts..................................  8
      Accumulated Value......................................................  8
      Transfers..............................................................  8
      Automatic Asset Rebalancing............................................  8
      Automatic Exchange Service.............................................  8
      Transfer Limitations...................................................  8
      Partial Withdrawals....................................................  9
      Surrenders.............................................................  9

IV. Annuity Payout Option Benefits...........................................  9

      Choosing an Option.....................................................  9
      Selecting or Changing the Income Date..................................  9
      Annuity Tables.........................................................  9
      Annuity Payment Options................................................ 10
      Adjusted Annuitant Age................................................. 10
      Fixed Annuity Payment Option........................................... 10
      Determination of a Fixed Payment....................................... 10
      Variable Annuity Payment Option........................................ 11
      Determination of the First Variable Payment............................ 11
      Determination of Subsequent Variable Payments.......................... 11

V. Death Benefits and Options................................................ 11

      The Death Benefit...................................................... 11
      Beneficiary............................................................ 11
      Death prior to Income Date (in the Accumulation Phase)................. 12
      Owner and Annuitant are the Same....................................... 12
      Owner and Annuitant are Different and the Owner Dies................... 12
      Owner and Annuitant are Different and the Annuitant Dies............... 12
      Death on or After the Income Date (in the Income Phase)................ 13
      If the Owner dies...................................................... 13
      If the Annuitant dies.................................................. 13

VI. General Contract Provisions.............................................. 13

      The Contract........................................................... 13
      Ownership of the Contract.............................................. 13
      Beneficiary Change..................................................... 13
      Deferment of Payment................................................... 13
      Non-Participating...................................................... 13

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      Assignments............................................................ 13
      Incontestability....................................................... 13
      Quarterly Statements................................................... 13
      Misstatement of Age or Gender.......................................... 14
      Contract Amendment..................................................... 14

VII. Annuity Tables.......................................................... 14


Please address all correspondence to the address listed below. Please include
the Contract number on all correspondence in order to facilitate the processing
of the request.

                     Vanguard Annuity and Insurance Services
                                  P.O. Box 1105
                           Valley Forge, PA 19482-1105

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                            I. CONTRACT SCHEDULE PAGE

                    CONTRACT NUMBER:
                                    ------------------------

Contract Owner:                                    SSN/TIN:
                -----------------------------------        ---------------------

Joint Owner:                                       SSN/TIN:
            ---------------------------------------        ---------------------

Owner's Designated Beneficiary:                  Relationship:
                               ------------------             ------------------

Annuitant:                                Date of Birth:    /     /    Sex:
          --------------------------------              ---- ----- ----    -----

Joint Annuitant:                           Date of Birth:    /     /    Sex:
                ---------------------------              ---- ----- ----    ----

Annuitant's Beneficiary:                         Relationship:
                        -------------------------             ------------------

Annuitant's Secondary Beneficiary:               Relationship:
                                  ---------------             ------------------
Contract Date:    /    /                              Income Date:    /    /
              ---- ---- ----                                      ---- ---- ----

                Initial Premium Payment $
                                         -----------------------

The Vanguard Variable Insurance Fund consists of the following Portfolios, all
of which are available for investment through the Vanguard Variable Annuity
Contract. The allocation of the Initial Premium Payment chosen by the Owner is
listed below:

          Money Market Portfolio (64).................................0%
          Total Bond Market Index Portfolio (67)......................0%
          High Yield Bond Portfolio (146).............................0%
          Short Term Corporate Portfolio (144)........................0%
          Balanced Portfolio (69).....................................0%
          Diversified Value Portfolio (145)...........................0%
          Equity Income Portfolio (08)................................0%
          Equity Index Portfolio (68).................................0%
          Growth Portfolio (10).......................................0%
          Mid-Cap Index Portfolio (143)...............................0%
          REIT Index Portfolio (147)..................................0%
          Small Company Growth Portfolio (160)........................0%
          International Portfolio (86)................................0%

Mortality and Expense Risk Fee:                                             .20%
Annual Administrative Fee:                                                  .10%

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                                    II. Definitions

Accumulation Phase - This is the phase during which Premium Payments (purchases)
are invested in the various Subaccounts selected by the Owner.

Accumulation Unit - A unit of measure used to calculate the Accumulated Value of
the Contract during the Accumulation Phase. Premium Payments are used to
purchase Accumulation Units in the Subaccounts chosen by the Owner. The value of
the Accumulation Units increases or decreases in relation to the investment
experience of the underlying Portfolio(s).

Annuitant (or Joint Annuitant) - The person designated by the Owner, upon whose
life any Annuity Payments are determined and upon whose death a Death Benefit
becomes payable.

Annuity Payment Option - One of several ways in which the Accumulated Value of
this Contract can be paid out. The Owner can choose to receive regular payments
for the Annuitant's lifetime, or regular payments for a certain period of time.
Under a Fixed Annuity Payment Option, the dollar amount of each Annuity Payment
does not change over the time period selected. Under a Variable Annuity Payment
Option, the dollar amount of the Annuity Payment is dependent on the investment
experience of the Subaccounts chosen by the Owner.

Annuity Payment - One of a series of regular payments made under one of the
Annuity Payment Options.

Annuity Tables - The Tables included in this Contract provide (for each $1,000
of Accumulated Value) the guaranteed minimum amount of monthly Fixed Annuity
Payments or the first monthly Variable Annuity Payment on which all future
payments are based.

Annuity Unit - A unit of measure in the Income Phase that is used to calculate
Variable Annuity Payments. When a Variable Annuity Payment Option is chosen,
Accumulation Units are converted into Annuity Units, which determine the amount
of future payments based on the investment performance of the underlying
Portfolio(s) selected.

Assumed Interest Rate (AIR) - The annual rate used to calculate the first
payment under a Variable Annuity Option.

Automatic Asset Rebalancing - Prior to the Income Date, the Owner may designate
the Company to make automatic Transfers in the invested Subaccounts in order to
maintain a desired allocation. Transfers can occur on a monthly, quarterly,
semi-annual or annual basis, as elected by the Owner.

Automatic Exchange Service - Prior to the Income Date, the Owner may elect to
automatically transfer a specified amount from one Subaccount to any other
Subaccounts. Transfers can occur on a monthly, quarterly, semi-annual, or annual
basis, as elected by the Owner.

Business Day - Each day the New York Stock Exchange is open for trading.

Company - Peoples Benefit Life Insurance Company.

Contract Anniversary - The annual date that coincides with the Contract Date.

Contract Date - The effective (or issue) date for this Contract.

Contract Owner (or Joint Owner) - The individual (or non-natural person)
designated on the Contract Schedule Page who exercises the rights of ownership
under this Contract.

Contract Year - A period of 12 months starting with the Contract Date or any
Contract Anniversary.

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Death Benefit - The Accumulated Value payable to the Annuitant's
Beneficiary(ies) upon the death of the Annuitant and the Joint Annuitant, if
applicable.

Free Look Period - The period during which this Contract can be cancelled.

Fund - The Vanguard Variable Insurance Fund, an open-end, diversified investment
company offered by The Vanguard Group, Inc., and in which the Separate Account
invests.

Guaranteed Interest Rate - The rate used in the Annuity Tables to determine the
minimum Fixed Annuity Payments guaranteed by the Contract.

Income Date - The date the Income Phase begins and Annuity Payments start.

Income Phase - The period during which the Owner (or his or her designated
Payee) receives regular Annuity Payments on a fixed or variable basis (or a
combination of both) for various periods of time, in accordance with the Annuity
Payment Option selected.

Initial Premium Payment - The first payment made to purchase this Contract.

Owner's Designated Beneficiary - The person (or non-natural person) designated
by the Owner to receive the Accumulated Value of the Contract upon the death of
the Owner.

Partial Withdrawal - Any amount equal to or greater than $250 that the Owner may
remove from the Accumulated Value at any time after the Free Look Period and
prior to the Income Date. The Accumulated Value of the Contract will be reduced
by the amount of any Partial Withdrawal.

Payee - The person (or non-natural person) designated by the Owner to whom any
benefits are to be paid.

Premium Payment - Any amount the Owner invests in this Contract.

Primary Annuitant's Beneficiary - The person (or non-natural person) designated
by the Owner to receive the Death Benefit upon the death of the Annuitant and
Joint Annuitant, if applicable.

Secondary Annuitant's Beneficiary - The person (or non-natural person)
designated by the Owner to receive the Death Benefit if the Primary Beneficiary
should die prior to the Annuitant and Joint Annuitant, if applicable.

Separate Account - The Separate Account consists of assets segregated by the
Company and invested in the Fund. The investment performance of the Separate
Account is independent of the performance of the general assets of the Company.

Subaccount - A portion of the Separate Account which invests in shares of one
Portfolio. The investment performance of each Subaccount is directly linked to
the investment performance of the corresponding Portfolio of the Fund.

Transfer - A Transfer is the exchange of assets from one Subaccount to another.
This results in the redemption of units from one Subaccount and the purchase of
units in another Subaccount. Transfer limitations may apply and are detailed in
the Transfer section of the Contract.

                    III. Premium Payments, Options, Benefits

Initial Premium Payments and Subsequent Premium Payments - The Initial Premium
Payment for this Contract must be a minimum of $5,000. Subsequent Premium
Payments may be made at any time during the Accumulation Phase (prior to the
Income Date) and must be at least $250. Premium in excess of

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$5,000,000 may require Company approval. The Company reserves the right to limit
the amount of any Initial or subsequent Premium Payments.

Administrative/Maintenance Fee - An annual administrative fee is assessed daily
at a rate of .10% annually to offset the costs of maintaining the Contract and
the Separate Account. In addition, Contracts with initial Premium Payments of
less than $25,000 will be charged an annual fee of $25 upon issue and $25 each
subsequent year the Accumulated Value remains below $25,000.

Mortality and Expense Risk Fee - The Company charges a fee assessed daily at a
rate of .20% annually in compensation for bearing certain mortality and expense
risks under the Contract.

The Separate Account - The Separate Account is a unit investment trust
registered with the Securities and Exchange Commission (the "SEC") under the
Investment Company Act of 1940 (the "1940 Act"). Such registration does not
signify that the SEC supervises the management or the investment practices or
policies of the Separate Account.

The Separate Account operates under Iowa law. The Company owns the assets of the
Separate Account, and the obligations under the Contract are obligations of the
Company. These assets are held separately from the other assets of the Company.

The Company will always keep assets in the Separate Account with a value at
least equal to the total Accumulated Value under the Contracts. Any realized or
unrealized income, net gains and losses from the assets of the Separate Account
are credited to or charged against it without regard to the Company's other
income, gains or losses.

Assets are invested in the Separate Account for this Contract, as well as assets
for other variable annuity policies. The investment performance of the Separate
Account is entirely independent of the investment performance of the Company's
general account assets or any other Separate Account the Company maintains.

The Separate Account is divided into Subaccounts. Each Subaccount invests
exclusively in shares of one of the Portfolios. The Separate Account meets the
definition of a "separate account" under rule 0-1(e)(1) of the 1940 Act.

We reserve the right, subject to regulations governing the Separate Account, to
transfer assets of a Subaccount, in excess of the reserves and other Contract
liabilities with respect to that Subaccount, to another Subaccount or to our
General Account.

The Company further reserves the right, when permitted by law, to:

1)       deregister the Separate Account under the Investment Company Act of
         1940;
2)       manage the Separate Account under the direction of a committee at any
         time;
3)       restrict or eliminate any voting rights of Contract Owners or other
         persons who have voting rights as to the Separate Account;
4)       combine the Separate Account with one or more other Separate Accounts;
5)       create new Separate Accounts;
6)       add new Subaccounts to or remove existing Subaccounts from the Separate
         Account, or combine Subaccounts; and
7)       add new underlying mutual funds, remove existing mutual funds, or
         substitute a new fund for an  existing fund.

Subaccounts - Each Subaccount will invest only in a single Portfolio. The
minimum investment required for each Subaccount selected by the Owner is $1,000.

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Premium Allocation to the Subaccounts - The Owner may specify what portion of
any Premium Payments will be allocated among which Subaccounts. All allocations
must be in whole number percentages and a minimum of $1,000.

The Company will immediately invest any Initial Premium Payments in the
Accumulation Phase by purchasing Accumulation Units in the chosen Subaccounts on
the Business Day the Company receives the Premium Payment. The Owner may change
the premium allocation percentages at any time. Any change will take effect on
the Business Day the notice is received.

Accumulated Value - The Accumulated Value is equal to the Initial Premium
Payment plus any Additional Premium Payments received; less

     - applicable administration and Mortality and Expense Fees;
     - the annual Maintenance fee (for Contracts valued under $25,000 only);
     - any Partial Withdrawals;
     - premium taxes, if applicable;

plus any increase or decrease in the value of the Subaccount(s), due to
investment results, to which the Accumulated Value is allocated.

Transfers - The Owner can choose to transfer assets from one Subaccount to
another during the Accumulation Phase and the Income Phase. A Transfer in the
Accumulation Phase will result in the redemption of Accumulation Units from one
Subaccount and the purchase of Accumulation Units in another Subaccount. During
the Income Phase, Annuity Units are transferred among the Subaccounts and are
recalculated in the Subaccounts in which the Transfers occurred. Transfers will
be processed using the Accumulation and/or Annuity Unit Value as of the Business
Day the request is received.

1)   The Transfer request may be in writing, or by telephone. If a Transfer
     request is received prior to the close of the New York Stock Exchange
     (generally 4:00 p.m. Eastern time), it will be processed at the close of
     business that day. Any Transfer requests received after the close of the
     New York Stock Exchange will be processed at the close of the next Business
     Day.

2)   The minimum amount the Owner may Transfer from a Subaccount is $250. During
     the Income Phase, there is no minimum amount.

3)   The $1,000 minimum Subaccount balance requirement must be satisfied at all
     times during the Accumulation Phase.

Automatic Asset Rebalancing - During the Accumulation Phase, the Owner can
automatically rebalance the amounts invested in the Subaccounts in order to
maintain a desired allocation. This rebalancing occurs automatically on a date
selected by the Owner and can take place on a monthly, quarterly, semi-annual or
annual basis. Automatic Asset Rebalancing can be started, stopped or changed at
any time.

Automatic Exchange Service - During the Accumulation Phase, the Owner may elect
to automatically Transfer a specified amount from one Subaccount to any other
Subaccounts. The automatic Transfers can occur on a monthly, quarterly,
semi-annual, or annual basis. Transfers will continue for the specified period
of time, or until the elected Subaccount is depleted.

Transfer Limitations - The Fund's Transfer privilege is not intended to afford a
means to speculate on short-term movements in the market. Because excessive
Transfers can disrupt the management of the Fund and can increase transaction
costs, Transfers are limited as follows:

1)   The Company may limit substantive redemptions from a Portfolio followed by
     a purchase back into the same Portfolio (not including the Money Market
     Portfolio) to two during any 12-month period. This covers transactions
     accomplished by any combination of methods, including transactions
     conducted by check, wire, or Transfer to or from another Vanguard Fund.

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     "Substantive" means a dollar amount that the Vanguard Group, Inc.,
     determines, in its sole discretion, could adversely affect the management
     of the Fund.

2)   The Company may refuse a written or telephone Transfer request at any time,
     for any reason.

3)   The Company may revoke an Owner's telephone Transfer privilege at any time,
     for any reason.

Partial Withdrawals - At any time after the Free Look Period and prior to the
Income Date, the Owner may make Partial Withdrawals from the Accumulated Value
of the Contract. Partial Withdrawals are subject to the following:

1)   The minimum Partial Withdrawal amount is $250.

2)   Partial Withdrawals will be deducted from the allocated Subaccounts on an
     equal (pro rata) basis unless otherwise directed by the Owner.

3)   If the Partial Withdrawal reduces the Accumulated Value in a particular
     Subaccount to less than $1,000, the remaining balance will be transferred
     to the other Subaccounts under the Contract on an equal (pro rata) basis.
     If a Partial Withdrawal reduces the Accumulated Value of the Contract to
     less than $1,000, the Company reserves the right to liquidate the Contract.
     The Owner will be notified if the balance falls below $1,000 and will be
     given 60 days in which to make an additional Premium Payment to increase
     the Accumulated Value to at least $1,000.

4)   Partial Withdrawals are not permitted after the Income Date.

Surrenders - At any time prior to the Income Date, the Owner may fully surrender
this Contract. Full surrender requests must be received in writing and will be
processed as of the Business Day the notice is received. The Owner will receive
the Accumulated Value of the Contract. After the Income Date, no full Surrenders
are permitted.

                       IV. Annuity Payout Option Benefits

Choosing an Option - Before the Income Date, the Owner may choose or change any
Annuity Payment Option. However, if an election to receive payments under one of
the Annuity Payment Options is not made before the Income Date, the Company will
begin Annuity Payments to the Owner (or to the Annuitant, if the Owner is a
non-natural person) on the Income Date. In that case, the Annuity Payments will
be made with an Annuity Payment Option that provides a life annuity with Annuity
Payments guaranteed for 10 years.

If on the Income Date the Accumulated Value of the Contract is less than $5,000,
the Company has the right to pay that amount in a lump sum.

Selecting or Changing the Income Date - The Income Date may be advanced or
deferred by the Owner as allowed under the laws of the Owner's legal state of
residence. To advance or defer the Income Date, a request must be made in
writing to the Company before the current Income Date and may only be made
during the Annuitant's lifetime. The Owner may also elect an Annuity Payment
Option at that time. In no event may the Owner defer the Income Date later than
the first day of the month following the Annuitant's 95th birthday.

Annuity Tables - The Annuity Tables (see Section VII) show the guaranteed
minimum monthly payment amounts for each $1,000 of Accumulated Value for a Fixed
Annuity payment, based on a Guaranteed Interest Rate of 3.25%. Fixed Annuity
Payments are guaranteed to be no less than the amount provided in the Tables.
The Annuity Tables also show the amount of monthly payment for each $1,000 of
Accumulated Value for calculation of the first payment of a Variable Annuity
Payment, based on the AIR of 4%. The

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Company uses the Annuity 2000 Mortality Table projected for mortality
improvement using Projection Scale G.

The Company may, at the time of election of an Annuity Payment Option, offer
more favorable rates in lieu of the guaranteed rates shown in the Annuity
Tables.

Annuity Payment Options - The Owner may elect an option with an Annuity Payment
on a fixed or variable basis, or a combination of both at any time prior to the
Income Date. The Company will require proof of the Annuitant's age before any
payments are made and may also require proof that the Annuitant is living. After
an Annuity Payment Option is selected and Annuity Payments begin, it may not be
changed. Once an Annuity Payment Option is selected, the entire Accumulated
Value of the Contract must be allocated to the Income Phase.

1)   Life Only Annuity - Annuity Payments are made to the designated Payee for
     the life of the Annuitant, ceasing with the last payment due prior to the
     Annuitant's death. There are no payments to a Beneficiary.

2)   Life Annuity with 120, 180, 240, or 360 Monthly Period Certain - Annuity
     Payments are made to the designated Payee for the life of the Annuitant
     with 120, 180, 240, or 360 months guaranteed. If the Annuitant should die
     within the guaranteed period, the payments would continue for the remainder
     of that period to the Beneficiary. If the Annuitant dies after the
     guarantee period, there are no payments to the Beneficiary.

3)   Joint and 100% Last Survivor Annuity - Annuity Payments are made for the
     life of two Annuitants and thereafter for the life of the survivor, ceasing
     with the last payment due prior to the survivor's death. There are no
     payments to a Beneficiary. This option is also available with a 50% or 75%
     reduction of the Annuity Payment to the surviving Annuitant.

4)   Period Certain Annuity - Available with a Fixed Annuity Payment only, this
     option provides Annuity Payments that are made to the Payee for a
     designated period, which may be from 10 to 30 years. Annuity Payments are
     guaranteed for the Period Certain elected. If the Annuitant should die
     within the guaranteed period, the payments would continue for the remainder
     of that period to the Beneficiary. If the Annuitant dies after the
     guarantee period, there are no payments to the Beneficiary.

Other Annuity Payment Options may be available upon request.

Adjusted Annuitant Age - Annuity Payments under Options 1, 2, and 3 are based on
the Adjusted Age of the Annuitant. The Adjusted Age is the Annuitant's actual
age on the Annuitant's nearest birthday, at the Income Date, adjusted as
follows:

                           Income Date               Adjusted Age
                           -----------               ------------
                           Before 2010               Actual Age
                           2010-2019                 Actual Age minus 1
                           2020-2026                 Actual Age minus 2
                           2027-2033                 Actual Age minus 3
                           2034-2040                 Actual Age minus 4
                           After 2040                Determined by the Company

Fixed Annuity Payment Option - This option provides a fixed payment that does
not change over the time period selected. Once this option is selected, the
Accumulated Value of the Contract is transferred from the Separate Account to
the Company's General Account to fund all future payments. No further Transfers
are possible.

Determination of a Fixed Payment - The amount of the Fixed Annuity Payment will
depend on the Accumulated Value of the Contract and the Annuity Payment Option
selected. If a life income option is

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selected, the amount will also depend on the age and gender of the Annuitant and
Joint Annuitant, if applicable.

The amounts shown on the Annuity Tables (in Section VII) represent only the
guaranteed minimum for each Annuity Payment, based on an interest rate of 3.25%.
The minimum payment amount is $100 (or $20 for residents of SC, TX and MA). The
number of payments per year may be adjusted to maintain this minimum amount.

Variable Annuity Payment Option - This option provides a variable payment that
fluctuates with the investment performance of the Subaccounts chosen by the
Owner over the period selected.

Determination of the First Variable Payment - The Annuity Tables for this option
illustrate the minimum amount of a monthly Variable Annuity Payment for each
$1,000 of Accumulated Value. The Tables are based on the AIR of 4%.

If the investment performance of the selected Subaccounts exceeds 4% (on an
annualized basis) in any period, the Annuity Payment amount will increase.
Conversely, in any period investment performance falls below 4%, the Annuity
Payment amount will decrease.

The first Variable Annuity Payment is based on the Accumulated Value of the
Contract on the Income Date. The minimum payment amount is $100 (or $20 for
residents of SC, TX and MA). The number of payments per year may be adjusted to
maintain this minimum amount.

Determination of Subsequent Variable Payments - The amount of each subsequent
Annuity Payment is determined by means of Annuity Units. The number of Annuity
Units is determined by dividing the first Annuity Payment by the Annuity Unit
value for the selected Subaccount(s) on the Income Date.

The dollar amount for each subsequent payment is equal to the number of Annuity
Units multiplied by the current Annuity Unit Value for the Subaccount(s). The
Annuity Payment amount changes as the Annuity Unit Values change according to
the investment performance of the underlying Subaccounts. If a Transfer is made,
the Annuity Units are recalculated.

                          V. Death Benefit and Options

The Death Benefit - The Death Benefit is the Accumulated Value of the Contract
and only becomes payable to the Primary Annuitant's Beneficiary (Beneficiary)
upon the death of the Annuitant and the Joint Annuitant, if applicable. Before
the Death Benefit can be calculated and paid, the following must be provided to
the Company:

1) Proof of Death acceptable to the Company; and
2) all Company claim forms, fully completed.

Proof of Death acceptable to the Company may be:

1) a certified copy of the death certificate;
2) a certified decree of a court of competent jurisdiction as to the finding of
   death;
3) a written statement by a medical doctor who attended the deceased;
4) any other proof satisfactory to the Company.

Beneficiary - Unless the Owner has made other provisions, multiple Beneficiaries
will share equally in the Contract. If one of two or more Beneficiaries
predeceases the others, that share of the Contract will be paid equally to the
survivor(s).

If the Beneficiary dies at the same time as the Owner and/or the Annuitant, it
will be treated as the Beneficiary died first, and the Accumulated Value will
become payable to the estate of the deceased. If a

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Beneficiary dies within 15 days after the Owner and/or Annuitant's death and
before the Company receives due proof of the death, it will be treated as the
Beneficiary died first and the Contract will become payable to the estate of the
deceased.

If a Secondary Annuitant's Beneficiary is named, he or she will become the
Primary Annuitant's Beneficiary if the Primary Annuitant's Beneficiary
predeceases the Annuitant.

The Accumulated Value becomes payable contingent upon the relationships between
the Owner, Annuitant, Beneficiary, and Owner's Designated Beneficiary. After the
Company receives Proof of Death of the Annuitant and/or Owner prior to the
Income Date along with the completed Company forms, the Accumulated Value will
be payable as outlined below:

Death prior to Income Date (in the Accumulation Phase)

1.   Owner and Annuitant are the same
     If the Beneficiary is the surviving spouse, he or she may receive the Death
     Benefit; elect any available Annuity Payment Option; or continue the
     Contract at the Accumulated Value as the new Owner and Annuitant and name a
     new Beneficiary.

     If the Beneficiary is not a spouse, he or she may receive the Death
     Benefit; elect an Annuity Payment Option with a life option, or over a
     Period Certain no longer than his or her life expectancy with payments
     starting within one year of the date of death; or continue the Contract at
     the Accumulated Value as the new Owner provided that the entire Contract is
     distributed within five years of the date of death.

2.   Owner and Annuitant are different and the Owner dies
     When either the Owner or the Joint Owner (if applicable) of the Contract
     dies during the Accumulation Phase, the Contract must be distributed within
     five years of the date of death (pursuant to Internal Revenue Code Section
     72(s)). There are two exceptions to this rule:

     If the Owner's Designated Beneficiary or Joint Owner is the spouse of the
     deceased Owner, he or she may elect to continue the Contract as the new
     Owner at the Accumulated Value in lieu of receiving the Accumulated Value
     in a lump sum payment. The new Owner may then continue the Contract and
     name a new Beneficiary.

     If the entire Accumulated Value of the Contract is to be distributed to the
     Joint Owner or the Owner's Designated Beneficiary, he or she may elect to
     have it paid under an Annuity Payment Option over his or her life or over a
     Period Certain no longer than his or her life expectancy as long as the
     payments start within one year of the date of death.

     If there is no Joint Owner or Owner's Designated Beneficiary, the deceased
     Owner's estate will become the new Owner and may elect to receive the
     Accumulated Value of the Contract.

3.   Owner and Annuitant are different and the Annuitant dies
     The Beneficiary may receive the Death Benefit; elect an Annuity Payment
     Option with a life option, or elect a Period Certain option no longer than
     his or her life expectancy as long as payments start within one year of the
     date of death, as long as the option is selected within 60 days of the date
     of death.

     If the Beneficiary is also the Owner of the Contract, and the spouse of the
     deceased, he or she may continue the Contract as Owner and Annuitant and
     name a new Beneficiary.

     If the Owner of the Contract is a non-natural person, then the death of the
     Annuitant will be treated as the death of the Owner.

Death on or after the Income Date (in the Income Phase)
Death options on or after the Income Date depend on the Annuity Payment Option
selected.

                                       13

<PAGE>

1.   If the Owner dies
     If any Owner dies before the entire interest in the Contract is
     distributed, the remaining portion will be distributed at least as rapidly
     as under the method of distribution then in effect. The Joint Owner or
     Owner's Designated Beneficiary would have the option of changing the Payee.

2.   If the Annuitant Dies
     If the Annuitant dies on or after the Income Date, and before the end of
     any guaranteed period, the remaining portion of the Contract will be
     distributed at least as rapidly as under the method of distribution then in
     effect to the Beneficiary. If the Annuitant dies after the end of any
     guaranteed period, there are no payments to the Beneficiary.

                         VI. General Contract Provisions

The Contract - This Contract and any application, endorsements or riders (if
applicable) attached to the Contract constitute the entire Contract. No change
in this Contract is valid unless approved by an executive officer of the Company
and evidenced by endorsement hereon, or by amendment hereto signed by such an
officer.

Ownership of Contract - The Owner is the person who has the legal authority to
exercise the rights within this Contract. A Joint Owner, if named, will be
treated as having equal, undivided interests in the Contract. Joint Owners may
not exercise ownership rights in the Contract independently of each other. The
Company reserves the right to require a written request signed by both Owners
for certain transactions.

Beneficiary Change - The Beneficiary(ies) may be changed by the Owner by written
notice only. The Beneficiary(ies) may be made irrevocable by a written notice
filed with and acknowledged by the Company. An irrevocable Beneficiary may only
be changed with written consent of such Beneficiary. Beneficiary changes will
take effect on the date the notice is signed.

Deferment of Payment - If a lump sum or cash withdrawal is to be paid from the
Separate Account, payment will be made within seven days from the date the
election becomes effective. The Company may defer payment when the New York
Stock Exchange is closed, the SEC has restricted trading, or when the SEC allows
the Company to defer payments in order to protect its Contract Owners.

Non-Participating - This Contract does not pay dividends. It will not share in
any Company profits or surplus earnings.

Assignments - The Company is not responsible for the validity of any assignment.
No assignment will be recognized until the Company receives written notice from
the Owner. The interest of any Beneficiary which the assignor has the right to
change shall be subordinate to the interest of an assignee.

Any amount paid to the assignee shall be paid in one lump sum, notwithstanding
any settlement agreement in effect at the time assignment was executed. The
Company shall not be liable as to any payment or other settlement made by it
before receipt of written notice.

Incontestability - This Contract is incontestable from the Contract Date, except
in cases where the Annuitant's age or gender has been misstated.

Quarterly Statements - The Owner will receive a statement at least once per
calendar quarter. The statements will show the Accumulated Value of the
Subaccount(s), as well as any subsequent Premium Payments, Partial Withdrawals,
charges or Transfers made during that quarter. The statement may also contain
information as required by law or regulation. Contracts in the Income Phase will
receive statements once per month.

                                       14

<PAGE>

Misstatement of Age or Gender - If the Annuitant's age or gender has been
misstated, Annuity Income Payments will be adjusted to the amount which would
have been provided for the correct age or gender. If Annuity Payments have
already commenced and the misstatement has caused an underpayment, the full
amount due will be paid with the next scheduled payment. If the misstatement has
caused an overpayment, the amount due will be deducted from one or more future
payments until the amount is paid in full.

Contract Amendment - The Company may change this Contract at any time by
notifying the Owner in writing. These changes may be made without the approval
of the Annuitant or Beneficiary, as long as the change does not result in a
claim or benefit being reduced or denied to the Annuitant or Beneficiary as of
the date of the change.

                               VII. Annuity Tables

Table 1 - This table provides the guaranteed minimum monthly payment amounts for
each $1,000 of Accumulated Value for Fixed Annuity Payments, based on a
guaranteed interest rate of 3.25%. The options shown here are Life Only Annuity,
Life Annuity with 120 Monthly Payments Certain, and Life Annuity with 240
Monthly Payments Certain. Other ages and options such as 60, 180, or 360 months
are also available.

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
  Table      Monthly Installment for Life    Monthly Installment for Life with   Monthly Installment for Life with
    1             Only No Period Certain          10 Years Period Certain             20 Years Period Certain
--------------------------------------------------------------------------------------------------------------------
Adjusted     Male      Female      Unisex      Male        Female      Unisex      Male       Female      Unisex
   Age
--------------------------------------------------------------------------------------------------------------------
<S>          <C>       <C>         <C>         <C>         <C>         <C>         <C>        <C>         <C>

    50       $3.97      $3.85      $3.89       $3.95       $3.83       $3.87       $3.87       $3.79       $3.82
--------------------------------------------------------------------------------------------------------------------
    51       $4.04      $3.90      $3.94       $4.01       $3.89       $3.92       $3.93       $3.84       $3.86
--------------------------------------------------------------------------------------------------------------------
    52       $4.10      $3.96      $4.00       $4.07       $3.94       $3.98       $3.98       $3.89       $3.91
--------------------------------------------------------------------------------------------------------------------
    53       $4.17      $4.02      $4.07       $4.14       $4.00       $4.04       $4.03       $3.94       $3.97
--------------------------------------------------------------------------------------------------------------------
    54       $4.25      $4.09      $4.13       $4.21       $4.07       $4.11       $4.09       $3.99       $4.02
--------------------------------------------------------------------------------------------------------------------
    55       $4.32      $4.16      $4.21       $4.28       $4.13       $4.18       $4.15       $4.05       $4.08
--------------------------------------------------------------------------------------------------------------------
    56       $4.41      $4.23      $4.28       $4.36       $4.20       $4.25       $4.21       $4.11       $4.14
--------------------------------------------------------------------------------------------------------------------
    57       $4.49      $4.30      $4.36       $4.44       $4.27       $4.32       $4.27       $4.17       $4.20
--------------------------------------------------------------------------------------------------------------------
    58       $4.59      $4.39      $4.45       $4.52       $4.35       $4.40       $4.33       $4.23       $4.26
--------------------------------------------------------------------------------------------------------------------
    59       $4.68      $4.47      $4.54       $4.62       $4.43       $4.49       $4.40       $4.29       $4.33
--------------------------------------------------------------------------------------------------------------------
    60       $4.79      $4.57      $4.63       $4.71       $4.52       $4.58       $4.46       $4.36       $4.39
--------------------------------------------------------------------------------------------------------------------
    61       $4.90      $4.66      $4.74       $4.81       $4.61       $4.67       $4.53       $4.43       $4.46
--------------------------------------------------------------------------------------------------------------------
    62       $5.03      $4.77      $4.84       $4.92       $4.71       $4.77       $4.60       $4.50       $4.53
--------------------------------------------------------------------------------------------------------------------
    63       $5.16      $4.88      $4.96       $5.04       $4.81       $4.88       $4.67       $4.57       $4.60
--------------------------------------------------------------------------------------------------------------------
    64       $5.29      $5.00      $5.09       $5.15       $4.92       $4.99       $4.74       $4.64       $4.67
--------------------------------------------------------------------------------------------------------------------
    65       $5.44      $5.13      $5.22       $5.28       $5.03       $5.11       $4.81       $4.72       $4.75
--------------------------------------------------------------------------------------------------------------------
    66       $5.60      $5.26      $5.36       $5.41       $5.15       $5.23       $4.88       $4.79       $4.82
--------------------------------------------------------------------------------------------------------------------
    67       $5.77      $5.41      $5.52       $5.55       $5.28       $5.36       $4.94       $4.87       $4.89
--------------------------------------------------------------------------------------------------------------------
    68       $5.95      $5.57      $5.68       $5.69       $5.42       $5.50       $5.01       $4.94       $4.96
--------------------------------------------------------------------------------------------------------------------
    69       $6.15      $5.74      $5.86       $5.84       $5.56       $5.65       $5.07       $5.01       $5.03
--------------------------------------------------------------------------------------------------------------------
    70       $6.35      $5.92      $6.05       $5.99       $5.71       $5.80       $5.13       $5.08       $5.10
--------------------------------------------------------------------------------------------------------------------
    71       $6.57      $6.12      $6.25       $6.15       $5.87       $5.96       $5.19       $5.14       $5.16
--------------------------------------------------------------------------------------------------------------------
    72       $6.81      $6.33      $6.47       $6.32       $6.04       $6.12       $5.25       $5.21       $5.22
--------------------------------------------------------------------------------------------------------------------
    73       $7.06      $6.56      $6.71       $6.49       $6.21       $6.30       $5.30       $5.27       $5.27
--------------------------------------------------------------------------------------------------------------------
    74       $7.33      $6.81      $6.96       $6.66       $6.40       $6.48       $5.34       $5.32       $5.33
--------------------------------------------------------------------------------------------------------------------
    75       $7.61      $7.08      $7.24       $6.84       $6.58       $6.66       $5.39       $5.37       $5.37
--------------------------------------------------------------------------------------------------------------------
    76       $7.92      $7.38      $7.54       $7.01       $6.78       $6.85       $5.43       $5.41       $5.42
--------------------------------------------------------------------------------------------------------------------
    77       $8.25      $7.69      $7.86       $7.20       $6.98       $7.04       $5.46       $5.45       $5.45
--------------------------------------------------------------------------------------------------------------------
    78       $8.60      $8.03      $8.20       $7.38       $7.18       $7.24       $5.49       $5.48       $5.49
--------------------------------------------------------------------------------------------------------------------
    79       $8.98      $8.41      $8.58       $7.56       $7.38       $7.44       $5.52       $5.51       $5.51
--------------------------------------------------------------------------------------------------------------------
    80       $9.38      $8.81      $8.98       $7.74       $7.59       $7.63       $5.54       $5.54       $5.54
--------------------------------------------------------------------------------------------------------------------
    81       $9.82      $9.25      $9.42       $7.92       $7.79       $7.83       $5.56       $5.56       $5.56
--------------------------------------------------------------------------------------------------------------------
    82      $10.28      $9.72      $9.89       $8.09       $7.98       $8.01       $5.58       $5.58       $5.58
--------------------------------------------------------------------------------------------------------------------
    83      $10.78     $10.24      $10.40      $8.26       $8.17       $8.20       $5.59       $5.59       $5.59
--------------------------------------------------------------------------------------------------------------------
    84      $11.31     $10.80      $10.95      $8.41       $8.35       $8.37       $5.60       $5.60       $5.60
--------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       15

<PAGE>

<TABLE>

<S>         <C>        <C>         <C>         <C>         <C>         <C>         <C>         <C>         <C>
--------------------------------------------------------------------------------------------------------------------
    85      $11.87     $11.40      $11.54      $8.56       $8.52       $8.53       $5.61       $5.61       $5.61
--------------------------------------------------------------------------------------------------------------------
    86      $12.48     $12.05      $12.17      $8.70       $8.67       $8.68       $5.62       $5.62       $5.62
--------------------------------------------------------------------------------------------------------------------
    87      $13.13     $12.74      $12.86      $8.84       $8.82       $8.82       $5.62       $5.62       $5.62
--------------------------------------------------------------------------------------------------------------------
    88      $13.82     $13.48      $13.58      $8.96       $8.95       $8.95       $5.63       $5.63       $5.63
--------------------------------------------------------------------------------------------------------------------
    89      $14.55     $14.27      $14.35      $9.07       $9.06       $9.06       $5.63       $5.63       $5.63
--------------------------------------------------------------------------------------------------------------------
    90      $15.32     $15.10      $15.16      $9.17       $9.17       $9.17       $5.63       $5.63       $5.63
--------------------------------------------------------------------------------------------------------------------
    91      $16.14     $15.96      $16.01      $9.26       $9.26       $9.26       $5.63       $5.63       $5.63
--------------------------------------------------------------------------------------------------------------------
    92      $17.00     $16.86      $16.90      $9.35       $9.34       $9.34       $5.63       $5.63       $5.63
--------------------------------------------------------------------------------------------------------------------
    93      $17.91     $17.79      $17.83      $9.42       $9.42       $9.42       $5.63       $5.63       $5.63
--------------------------------------------------------------------------------------------------------------------
    94      $18.89     $18.77      $18.80      $9.49       $9.48       $9.48       $5.63       $5.63       $5.63
--------------------------------------------------------------------------------------------------------------------
    95      $19.93     $19.79      $19.83      $9.54       $9.54       $9.54       $5.63       $5.63       $5.63
--------------------------------------------------------------------------------------------------------------------
</TABLE>

Table 2 - This table provides the guaranteed minimum monthly payment amounts for
each $1,000 of Accumulated Value for Fixed Annuity Payments based on a
guaranteed interest rate of 3.25%. The option shown here is Joint and 100% Last
Survivor Annuity. This option is also available with a 50% or 75% reduction of
the Annuity Payment. Other ages are available upon request.

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
   Table                             Monthly Installment for Joint and 100% Last Survivor
     2                                              Adjusted Age of Female
--------------------------------------------------------------------------------------------------------------------
 Adjusted     15 Years     12 Years        9 Years        6 Years        3 Years        Same Age        3 Years
  Age of     Less Than     Less Than      Less Than      Less Than      Less Than          As          More Than
   Male         Male         Male           Male            Male           Male           Male            Male
--------------------------------------------------------------------------------------------------------------------
<S>           <C>          <C>            <C>            <C>            <C>             <C>            <C>
    50         $3.22         $3.28          $3.34          $3.40          $3.46           $3.52          $3.58
--------------------------------------------------------------------------------------------------------------------
    55         $3.35         $3.42          $3.50          $3.58          $3.67           $3.75          $3.83
--------------------------------------------------------------------------------------------------------------------
    60         $3.52         $3.61          $3.72          $3.82          $3.94           $4.05          $4.16
--------------------------------------------------------------------------------------------------------------------
    65         $3.74         $3.86          $4.00          $4.15          $4.30           $4.46          $4.61
--------------------------------------------------------------------------------------------------------------------
    70         $4.03         $4.20          $4.39          $4.59          $4.80           $5.03          $5.25
--------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
                                  Monthly Installment for Unisex Joint and 100% Last Survivor
                                                Adjusted Age of Joint Annuitant
--------------------------------------------------------------------------------------------------------------------
 Adjusted     15 Years     12 Years        9 Years        6 Years        3 Years        Same Age        3 Years
  Age of     Less Than     Less Than      Less Than      Less Than      Less Than          As          More Than
 Annuitant   Annuitant     Annuitant      Annuitant      Annuitant      Annuitant       Annuitant      Annuitant
--------------------------------------------------------------------------------------------------------------------
<S>           <C>          <C>            <C>            <C>            <C>             <C>            <C>
    50         $3.22         $3.28          $3.34          $3.40          $3.46           $3.52          $3.58
--------------------------------------------------------------------------------------------------------------------
    55         $3.36         $3.43          $3.51          $3.58          $3.66           $3.74          $3.81
--------------------------------------------------------------------------------------------------------------------
    60         $3.53         $3.62          $3.72          $3.83          $3.93           $4.03          $4.13
--------------------------------------------------------------------------------------------------------------------
    65         $3.75         $3.88          $4.01          $4.15          $4.29           $4.44          $4.57
--------------------------------------------------------------------------------------------------------------------
    70         $4.05         $4.21          $4.40          $4.59          $4.79           $5.00          $5.19
--------------------------------------------------------------------------------------------------------------------
</TABLE>

Table 3 - This table provides the monthly payment amounts for each $1,000 of
Accumulated Value for the calculation of a Variable Annuity Payment, based on
the AIR of 4%. The options shown here are Life Only Annuity, Life Annuity with
120 Months Period Certain, and Life Annuity with 240 Months Period Certain.
Other ages and options such as 60, 180, or 360 months are available upon
request.

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
  Table      Monthly Installment for Life    Monthly Installment for Life with   Monthly Installment for Life with
    3           Only No Period Certain             10 Years Period Certain             20 Years Period Certain

--------------------------------------------------------------------------------------------------------------------
Adjusted     Male      Female      Unisex       Male       Female      Unisex      Male       Female      Unisex
   Age
--------------------------------------------------------------------------------------------------------------------
<S>          <C>       <C>         <C>          <C>        <C>         <C>         <C>        <C>         <C>
    50       $4.43      $4.30       $4.34       $4.41       $4.29      $4.32       $4.32       $4.24       $4.26
--------------------------------------------------------------------------------------------------------------------
    51       $4.50      $4.36       $4.40       $4.46       $4.34      $4.38       $4.37       $4.28       $4.31
--------------------------------------------------------------------------------------------------------------------
    52       $4.56      $4.41       $4.46       $4.52       $4.39      $4.43       $4.42       $4.33       $4.36
--------------------------------------------------------------------------------------------------------------------
    53       $4.63      $4.47       $4.52       $4.59       $4.45      $4.49       $4.47       $4.38       $4.41
--------------------------------------------------------------------------------------------------------------------
    54       $4.70      $4.53       $4.58       $4.65       $4.51      $4.55       $4.53       $4.43       $4.46
--------------------------------------------------------------------------------------------------------------------
    55       $4.78      $4.60       $4.65       $4.73       $4.57      $4.62       $4.58       $4.48       $4.51
--------------------------------------------------------------------------------------------------------------------
    56       $4.86      $4.67       $4.73       $4.80       $4.64      $4.69       $4.64       $4.54       $4.57
--------------------------------------------------------------------------------------------------------------------
    57       $4.94      $4.75       $4.81       $4.88       $4.71      $4.76       $4.70       $4.60       $4.63
--------------------------------------------------------------------------------------------------------------------
    58       $5.04      $4.83       $4.89       $4.97       $4.79      $4.84       $4.76       $4.66       $4.69
--------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       16

<PAGE>

<TABLE>
<S>          <C>        <C>         <C>         <C>         <C>        <C>         <C>         <C>         <C>
--------------------------------------------------------------------------------------------------------------------
    59       $5.13      $4.91       $4.98       $5.06       $4.87      $4.92       $4.82       $4.72       $4.75
--------------------------------------------------------------------------------------------------------------------
    60       $5.24      $5.00       $5.07       $5.15       $4.95      $5.01       $4.89       $4.78       $4.81
--------------------------------------------------------------------------------------------------------------------
    61       $5.35      $5.10       $5.18       $5.25       $5.04      $5.10       $4.95       $4.85       $4.88
--------------------------------------------------------------------------------------------------------------------
    62       $5.47      $5.20       $5.28       $5.36       $5.13      $5.20       $5.02       $4.92       $4.95
--------------------------------------------------------------------------------------------------------------------
    63       $5.60      $5.32       $5.40       $5.47       $5.23      $5.30       $5.08       $4.98       $5.01
--------------------------------------------------------------------------------------------------------------------
    64       $5.74      $5.43       $5.52       $5.58       $5.34      $5.41       $5.15       $5.05       $5.08
--------------------------------------------------------------------------------------------------------------------
    65       $5.89      $5.56       $5.66       $5.71       $5.45      $5.53       $5.21       $5.12       $5.15
--------------------------------------------------------------------------------------------------------------------
    66       $6.05      $5.70       $5.80       $5.84       $5.57      $5.65       $5.28       $5.19       $5.22
--------------------------------------------------------------------------------------------------------------------
    67       $6.22      $5.84       $5.95       $5.97       $5.70      $5.78       $5.34       $5.27       $5.29
--------------------------------------------------------------------------------------------------------------------
    68       $6.40      $6.00       $6.12       $6.11       $5.83      $5.92       $5.41       $5.34       $5.36
--------------------------------------------------------------------------------------------------------------------
    69       $6.60      $6.17       $6.29       $6.26       $5.97      $6.06       $5.47       $5.40       $5.42
--------------------------------------------------------------------------------------------------------------------
    70       $6.80      $6.35       $6.48       $6.41       $6.12      $6.21       $5.52       $5.47       $5.49
--------------------------------------------------------------------------------------------------------------------
    71       $7.02      $6.55       $6.69       $6.57       $6.28      $6.37       $5.58       $5.53       $5.55
--------------------------------------------------------------------------------------------------------------------
    72       $7.26      $6.76       $6.91       $6.73       $6.45      $6.53       $5.63       $5.59       $5.61
--------------------------------------------------------------------------------------------------------------------
    73       $7.51      $6.99       $7.15       $6.89       $6.62      $6.70       $5.68       $5.65       $5.66
--------------------------------------------------------------------------------------------------------------------
    74       $7.78      $7.25       $7.40       $7.06       $6.80      $6.88       $5.73       $5.70       $5.71
--------------------------------------------------------------------------------------------------------------------
    75       $8.07      $7.52       $7.68       $7.24       $6.98      $7.06       $5.77       $5.75       $5.75
--------------------------------------------------------------------------------------------------------------------
    76       $8.38      $7.81       $7.98       $7.41       $7.17      $7.25       $5.80       $5.79       $5.79
-------------------------------------------------------------------------------------------------------------------
    77       $8.71      $8.13       $8.30       $7.59       $7.37      $7.44       $5.84       $5.83       $5.83
--------------------------------------------------------------------------------------------------------------------
    78       $9.06      $8.47       $8.65       $7.77       $7.57      $7.63       $5.87       $5.86       $5.86
--------------------------------------------------------------------------------------------------------------------
    79       $9.44      $8.85       $9.02       $7.95       $7.77      $7.82       $5.89       $5.89       $5.89
--------------------------------------------------------------------------------------------------------------------
    80       $9.85      $9.25       $9.43       $8.12       $7.97      $8.01       $5.91       $5.91       $5.91
--------------------------------------------------------------------------------------------------------------------
    81      $10.28      $9.70       $9.87       $8.29       $8.16      $8.20       $5.93       $5.93       $5.93
--------------------------------------------------------------------------------------------------------------------
    82      $10.75     $10.17      $10.34       $8.46       $8.35      $8.39       $5.95       $5.95       $5.95
--------------------------------------------------------------------------------------------------------------------
    83      $11.25     $10.69      $10.86       $8.62       $8.54      $8.57       $5.96       $5.96       $5.96
--------------------------------------------------------------------------------------------------------------------
    84      $11.78     $11.25      $11.41       $8.78       $8.71      $8.73       $5.97       $5.97       $5.97
--------------------------------------------------------------------------------------------------------------------
    85      $12.35     $11.86      $12.00       $8.92       $8.88      $8.89       $5.98       $5.98       $5.98
--------------------------------------------------------------------------------------------------------------------
    86      $12.96     $12.51      $12.64       $9.06       $9.03      $9.04       $5.99       $5.99       $5.99
--------------------------------------------------------------------------------------------------------------------
    87      $13.61     $13.21      $13.33       $9.19       $9.17      $9.18       $5.99       $5.99       $5.99
--------------------------------------------------------------------------------------------------------------------
    88      $14.30     $13.96      $14.06       $9.31       $9.30      $9.30       $6.00       $6.00       $6.00
--------------------------------------------------------------------------------------------------------------------
    89      $15.04     $14.75      $14.84       $9.42       $9.41      $9.41       $6.00       $6.00       $6.00
--------------------------------------------------------------------------------------------------------------------
    90      $15.81     $15.58      $15.65       $9.52       $9.51      $9.51       $6.00       $6.00       $6.00
--------------------------------------------------------------------------------------------------------------------
    91      $16.63     $16.45      $16.50       $9.61       $9.60      $9.60       $6.00       $6.00       $6.00
--------------------------------------------------------------------------------------------------------------------
    92      $17.50     $17.35      $17.40       $9.69       $9.69      $9.69       $6.00       $6.00       $6.00
--------------------------------------------------------------------------------------------------------------------
    93      $18.41     $18.29      $18.33       $9.76       $9.76      $9.76       $6.00       $6.00       $6.00
--------------------------------------------------------------------------------------------------------------------
    94      $19.39     $19.26      $19.30       $9.82       $9.82      $9.82       $6.00       $6.00       $6.00
--------------------------------------------------------------------------------------------------------------------
    95      $20.43     $20.28      $20.33       $9.88       $9.88      $9.88       $6.00       $6.00       $6.00
--------------------------------------------------------------------------------------------------------------------
</TABLE>

Table 4 - This table provides the monthly payment amounts for each $1,000 of
Accumulated Value for the calculation of a Variable Annuity Payment, based on
the AIR of 4%. The option shown here is Joint and 100% Last Survivor Annuity.
This option is also available with a 50% or 75% reduction of the Annuity
Payment. Other ages are available upon request.

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
   Table                             Monthly Installment for Joint and 100% Last Survivor
     4                                              Adjusted Age of Female
--------------------------------------------------------------------------------------------------------------------
 Adjusted     15 Years      12 Years        9 Years        6 Years        3 Years        Same Age       3 Years
Age of Male   Less Than     Less Than      Less Than      Less Than      Less Than          As         More Than
                Male          Male           Male            Male           Male           Male           Male
<S>           <C>           <C>            <C>            <C>            <C>             <C>           <C>
--------------------------------------------------------------------------------------------------------------------
    50          $3.70         $3.75          $3.81          $3.86          $3.92          $3.98          $4.04
--------------------------------------------------------------------------------------------------------------------
    55          $3.82         $3.89          $3.96          $4.04          $4.11          $4.19          $4.27
--------------------------------------------------------------------------------------------------------------------
    60          $3.98         $4.07          $4.16          $4.27          $4.37          $4.48          $4.59
--------------------------------------------------------------------------------------------------------------------
    65          $4.19         $4.31          $4.44          $4.58          $4.73          $4.88          $5.03
--------------------------------------------------------------------------------------------------------------------
    70          $4.46         $4.63          $4.81          $5.01          $5.22          $5.44          $5.66
--------------------------------------------------------------------------------------------------------------------
</TABLE>

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<PAGE>

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
                                  Monthly Installment for Unisex Joint and 100% Last Survivor
                                                Adjusted Age of Joint Annuitant
--------------------------------------------------------------------------------------------------------------------
 Adjusted     15 Years      12 Years        9 Years        6 Years        3 Years        Same Age       3 Years
  Age of      Less Than     Less Than      Less Than      Less Than      Less Than          As         More Than
 Annuitant    Annuitant     Annuitant      Annuitant      Annuitant      Annuitant      Annuitant      Annuitant
<S>           <C>           <C>            <C>            <C>            <C>            <C>            <C>
--------------------------------------------------------------------------------------------------------------------
    50          $3.70         $3.76          $3.81          $3.86          $3.92          $3.97          $4.03
--------------------------------------------------------------------------------------------------------------------
    55          $3.83         $3.89          $3.96          $4.04          $4.11          $4.18          $4.25
--------------------------------------------------------------------------------------------------------------------
    60          $3.99         $4.07          $4.17          $4.27          $4.37          $4.47          $4.56
--------------------------------------------------------------------------------------------------------------------
    65          $4.20         $4.32          $4.44          $4.58          $4.72          $4.86          $4.99
--------------------------------------------------------------------------------------------------------------------
    70          $4.48         $4.64          $4.82          $5.01          $5.21          $5.41          $5.60
--------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       18

<PAGE>

                     Peoples Benefit Life Insurance Company
          Home Office: 4333 Edgewood Road N.E., Cedar Rapids, IA 52499



                        FLEXIBLE PREMIUM VARIABLE ANNUITY
                                NON-PARTICIPATING

                                       19