04/26/2024 | Press release | Distributed by Public on 04/26/2024 05:33
Contents
|
2
|
Definitions
|
3
|
Important Information You Should Consider About the Certificate
|
5
|
Overview of the Certificate
|
7
|
Benefits Available Under the Contract
|
9
|
Buying the Contract
|
11
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Making Withdrawals: Accessing the Money in Your Contract
|
13
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Additional Information About Fees
|
13
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Appendix A: Portfolio Companies Available Under the Contract
|
15
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Fees and Expenses
|
Location in
Statutory
Prospectus
|
|
Charges For Early
Withdrawals
|
If You make a withdrawal from or surrender the Certificate, You may be
assessed a surrender charge up to 8.0% of the amount withdrawn or
surrendered. Surrender charges are applied to surrenders and withdrawals
based on the date the premium payment is made and not on the effective date
of the Certificate.
For example, if You make an early withdrawal, You could pay a surrender
charge of up to $8,000 on a $100,000 investment.
|
The Contract -
Deductions and
Expenses -
Surrender Charges
|
Transaction Charges
|
Aside from the charges for early withdrawals described above and potential
premium taxes, there are no charges for transactions.
|
The Contract -
Transactions
|
Ongoing Fees and
Expenses (Annual
Charges)
|
The table below describes the fees and expenses that You may pay each year,
depending on the options You choose. Please refer to YourCertificate data
pages for information about the specific fees You will pay each year based on
the options You have elected.
|
The Contract -
Deductions and
Expenses -
Mortality and
Expense Risk Fee
("M&E Fee")
The Contract -
Deductions and
Expenses - Annual
Maintenance Fee
Additional
Information About
Fees - Annual
Portfolio Company
Expenses
|
Annual Fee
|
Minimum
|
Maximum
|
Base Contract
|
0.75% of the
Participant Account
Value
|
1.29% of the Participant
Account Value
|
Investment Options
(Portfolio Company
Fees and Expenses)
|
0.13% as a percentage
of Portfolio Company
assets.
|
1.32% as a percentage
of Portfolio Company
assets.
|
Optional Benefits
Available for an
Additional Charge (For
a Single Optional
Benefit , if Elected)
|
0.05% as a percentage
of average Participant
Account Value.
|
0.50% as a percentage
of average Participant
Account Value.
|
Because YourCertificate is customizable, the choices You make affect how
much You will pay. To help You understand the cost of owning Your
Certificate, the following table shows the lowest and highest cost You could
pay each year, based on current charges. This estimate assumes that You do not
take withdrawals from the Certificate, which could add surrender charges
that substantially increase costs.
|
||
LOWEST ANNUAL COST:
|
HIGHEST ANNUAL COST:
|
|
$1,432
|
$3,013
|
|
Assumes:
|
Assumes:
|
|
•Investment of $100,000
•5% annual appreciation
•Least expensive combination of
Contract classes and Portfolio
Company fees and expenses
•No optional benefits
•No sales charges
•No additional purchase payments,
transfers or withdrawals
|
•Investment of $100,000
•5% annual appreciation
•Most expensive combination of
Contract classes, Portfolio
Company fees and expenses and
optional benefits
•No sales charges
•No additional purchase payments,
transfers or withdrawals
|
|
Risks
|
Risk of Loss
|
You can lose money by investing in this Certificate, including loss of principal.
|
Location in
Statutory
ProspectusPrincipal
Risks of Investing
in the Contract -
Risk of Loss
|
Not a Short-term
Investment
|
This Certificate is not designed for short-term investing and is not appropriate
for an investor who needs ready access to cash.
Surrender charges may apply for up to 10 years. Surrender charges will reduce
the value of Your Certificate if You withdraw money during the surrender
charge period.The benefits of tax deferral also mean the Certificate is more
beneficial to investors with a long-time horizon.
|
Principal Risks of
Investing in the
Contract - Not a
Short-term
Investment
|
Risks Associated with
Investment Options
|
An investment in this Certificate is subject to the risk of poor investment
performance and can vary depending on the performance of the Investment
Options available under the Certificate (e.g., Portfolio Companies).
Each Investment Option (including any Fixed AccountInvestment Option)
will have its own unique risks.
You should review these Investment Options before making an investment
decision.
|
Principal Risks of
Investing in the
Contract - Risks
Associated with
Investment Options
|
Insurance Company
Risks
|
An investment in the Certificate is subject to the risks related to Horace Mann
Life Insurance Company (HMLIC). Any obligations (including under any
Fixed AccountInvestment Options), guarantees, or benefits are subject to the
claims-paying ability of HMLIC. More information about HMLIC, including
its financial strength ratings, is available upon request from HMLIC, and may
be obtained by calling 1-800-999-1030 or visiting http://
www.horacemann.com/why-us/a-history-of-financial-strength.
|
Principal Risks of
Investing in the
Contract -Insurance
Company Risks
|
Restrictions
|
||
Investments
|
HMLIC reserves the right to remove or substitute Underlying Funds as
Investment Options that are available under the Certificate.
At any time before YourCertificate'sAnnuity Date, You may transfer amounts
from one Subaccount to another, and to and from the Fixed Account of the
Certificate, subject to certain restrictions. Transfers from a Guarantee Period
Account to the General Fixed Account or to the Variable Account, or between
Guarantee Period Accounts, may be subject to a Market Value Adjustment.
We reserve the right to restrict or terminate the transfer privilege for any
specific Participant if, in Our judgment, the Participant is using the Certificate
for the purposes of market timing or for any other purpose that We, in Our
sole discretion determine to be potentially detrimental to other shareholders of
an Underlying Fund.
If HMLIC determines that You are engaging in a pattern of transfers that
reflects a market timing strategy or is potentially harmful to other Participants,
it will notify You in writing of any restrictions.
|
Horace Mann Life
Insurance
Company - The
Fixed Account -
The Separate
Account and the
Portfolio
Companies - The
Portfolio
Companies -
Selection of
Portfolio
Companies
[The Contract -
Transactions -
Transfers
The Contract -
Transactions -
Market Timing
|
Restrictions
|
Location in
Statutory
Prospectus
|
|
Optional Benefits
|
Optional benefits may not be available in all states or in all Plans.
The Premium Bonus Rider is only available at issue of the Contract and will
only be included or offered if negotiated by the employer and HMLIC as part
of the Contract. You should refer to the Contract and enrollment form for the
optional riders available to You.
Guaranteed Minimum Death Benefit Riders will not be issued on or after the
Participant's70th birthday.
The Guaranteed Minimum Death Benefit Riders cannot be terminated by the
Participant or the Contract Owner after the Certificate Date.
Under certain Guaranteed Minimum Death Benefit Riders, We reserve the
right to restrict allocations or transfers to the Fixed Account or any of the
Subaccounts.
The Guaranteed Minimum Death Benefit Riders may only be terminated by
Us as described in the Guaranteed Minimum Death Benefit Rider(s) attached
to YourCertificate.
|
The Contract -
Deductions and
Expenses Charges
for Optional Riders
- Premium Bonus
Rider
The Contract -
Death Benefit -
Guaranteed
Minimum Death
Benefit Riders
|
Taxes
|
||
Tax Implications
|
An investor should consult with a tax professional to determine the tax
implications of an investment in and purchase payments received under the
Certificate. There is no additional tax benefit to the investor when the
Certificate is purchased through a tax-qualified plan. Withdrawals will be
subject to ordinary income tax and may be subject to tax penalties.
|
Tax Consequences -
Taxation of
Qualified Contracts
|
Conflicts of Interest
|
||
Investment
Professional
Compensation
|
Some investment professionals may receive compensation for selling a contract
to investors. This compensation is typically paid in the form of commissions,
but the sale of the Certificate may also count toward the investment
professional's qualification for receipt of cash and non-cash compensation
related to sales incentives or contests. These investment professionals may have
a financial incentive to offer or recommend the Certificate over another
investment.
|
Other Information
- Distribution of
the Contract
|
Exchanges
|
Some investment professionals may have a financial incentive to offer an
investor a new contract in place of the one he or she already owns. That
investor should only exchange his or her existing contract if he or she
determines, after comparing the features, fees, and risks of both contracts, that
it is preferable for him or her to purchase the new contract rather than
continue to own the existing contract.
|
The Contract -
Transactions -
Conversions/
Exchanges
|
Name of benefit
|
Purpose
|
Is Benefit Standard
or Optional
|
Maximum Fee
|
Brief Description of
Restrictions/
Limitations
|
Death Benefit
|
If You die before the
Annuity Date and
while the Certificate is
in force, pays Your
designated
beneficiaries the
greater of: (1) the
Participant Account
Value; or (2) the death
benefit provided in any
rider attached to the
Certificate.
|
Standard
|
None
|
None
|
Guaranteed Minimum
Death
Benefit - Return of
Premium
|
If You die before the
Annuity Date and
while the Certificate is
in force, pays Your
designated
beneficiaries the
greatest of: (1) the
Participant Account
Value; or (2) the death
benefit provided in any
other rider attached to
the Certificate; or (3)
the Return of Premium
Death Benefit - the
initial Net Premium
received (adjusted for
any additional Net
Premium, withdrawals
and outstanding loan
balance).
|
Optional
|
0.05% (on an annual
basis) of Your average
Participant Account
Value.
|
May not be available in
all states or in all Plans
and will not be issued
on or after the
Participant's 70th
birthday.
This rider cannot be
terminated by the
Participant or the
Contract Owner after
the Certificate Date.
You should refer to the
Contract and
enrollment form for
the optional riders
available to You.
|
Name of benefit
|
Purpose
|
Is Benefit Standard
or Optional
|
Maximum Fee
|
Brief Description of
Restrictions/
Limitations
|
Guaranteed Minimum
Death
Benefit - Step-up
with Return of
Premium
|
If You die before the
Annuity Date and
while the Certificate is
in force, pays Your
designated
beneficiaries the
greatest of: (1) the
Participant Account
Value; or (2) the death
benefit provided in any
other rider attached to
the Certificate; or (3)
the Return of Premium
Death Benefit
described above; or (4)
the Step-Up Death
Benefit - the greatest
Step-Up Anniversary
Value (adjusted for any
additional Net
Premium, withdrawals
and outstanding loan
balance).
|
Optional
|
0.20% (on an annual
basis) of Your average
Participant Account
Value.
If both the Guaranteed
Minimum Death
Benefit
Rider - Step-up with
Return of Premium
and the Guaranteed
Minimum Death
Benefit
Rider - Return of
Premium with Interest
are selected, the total
annual charge for both
riders will not exceed
0.40% (on an annual
basis) of Your average
Participant Account
Value.
|
May not be available in
all states or in all Plans
and will not be issued
on or after the
Participant's 70th
birthday.
This rider cannot be
terminated by the
Participant or the
Contract Owner after
the Certificate Date.
We reserve the right to
restrict allocations or
transfers to the Fixed
Account or any of the
Subaccounts.
You should refer to the
Contract and
enrollment form for
the optional riders
available to You.
|
Guaranteed Minimum
Death
Benefit - Return of
Premium with Interest
|
If You die before the
Annuity Date and
while the Certificate is
in force, pays Your
designated
beneficiaries the
greatest of: (1) the
Participant Account
Value; or (2) the death
benefit provided in any
other rider attached to
the Certificate; or (3)
the Return of Premium
with Interest Death
Benefit - Net premium
(adjusted for any
additional Net
Premium, withdrawals
and outstanding loan
balance) accumulated
at 5% interest prior to
and upon the
Certificate
Anniversary
immediately following
the Participant's
attainment of age 80.
|
Optional
|
0.30% (on an annual
basis) of Your average
Participant Account
Value.
If both the Guaranteed
Minimum Death
Benefit
Rider - Step-up with
Return of Premium
and the Guaranteed
Minimum Death
Benefit
Rider - Return of
Premium with Interest
are selected, the total
annual charge for both
riders will not exceed
0.40% (on an annual
basis) of Your average
Participant Account
Value.
|
May not be available in
all states or in all Plans
and will not be issued
on or after the
Participant's 70th
birthday.
This rider cannot be
terminated by the
Participant or the
Contract Owner after
the Certificate Date.
We reserve the right to
restrict allocations or
transfers to the Fixed
Account or any of the
Subaccounts.
You should refer to the
Contract and
enrollment form for
the optional riders
available to You.
|
Premium Bonus
|
Provides for a credit of
a percentage of
premium We receive at
OurHome Office
|
Optional
|
0.50% (on an annual
basis) of Your average
Participant Account
Value.
|
May not be available in
all states or in all
Plans.
|
Name of benefit
|
Purpose
|
Is Benefit Standard
or Optional
|
Maximum Fee
|
Brief Description of
Restrictions/
Limitations
|
during the period of
time specified in Your
Certificate.
|
This rider will only be
included or offered if
negotiated by the
employer and HMLIC
as part of the Contract.
You should refer to the
Contract and
enrollment form for
the optional riders
available to You.
The premium bonus
will never exceed 5%
and will never be paid
longer than 5 years.
|
|||
Portfolio Rebalancing
|
Automatically
rebalances the
Investment Options
You select (either
quarterly, semiannually
or annually)to
maintain Your chosen
mix of Investment
Options.
|
Standard
|
None
|
Cannot use with the
dollar cost averaging
option.
Only available during
the accumulation
phase.
Subject to portfolio
restrictions.
|
Dollar Cost Averaging
|
Automatically
transfers a specific
amount of money from
the Investment Options
You have selected, at
set intervals over a
specific period of time.
|
Standard
|
None
|
Cannot use with the
portfolio rebalancing
option.
Only available during
the accumulation
phase.
Subject to portfolio
restrictions.
|
Systematic
Withdrawals
|
Automatically
withdraws money
(either monthly,
quarterly, semi-
annually or annually)
from the Investment
OptionsYou select.
The amount of the
withdrawals are
determined by the
systematic withdrawal
option You select.
|
Standard
|
None
|
Cannot use with the
dollar cost averaging
option.
Only available during
the accumulation
phase.
Subject to portfolio
restrictions.
|
Qualified Policies (Purchased using pre-tax dollars)
|
|
Minimum Initial Annual Premium
|
$300 annually
|
Minimum Subsequent Annual Premiums
|
$300 annually
|
Maximum Subsequent Premiums (per Certificate Year after
1st Certificate Anniversary)
|
As permitted by IRS regulations
|
Maximum Total Premiums
|
$1,000,000 without Our prior approval
|
Sales Load Imposed on Purchases
(as a percentage of purchase payments)
|
None
|
Deferred Sales Load (or Surrender Charge)
(as a percentage of amount surrendered)
|
8% Maximum Surrender Charge
|
Exchange Fee
|
None
|
Administrative Expenses (1)
|
$36
|
Base Contract Expenses (2) (as a percentage of average Variable Account Value)
|
1.25%
|
Optional Benefit Expenses (as a percentage of average Participant Account Value))
Guaranteed Minimum Death Benefit Rider - Step-up with Return of Premium
Guaranteed Minimum Death Benefit Rider - Return of Premium with Interest
Guaranteed Minimum Death Benefit Rider - Return of Premium
Premium Bonus Rider
|
0.20%(3)
0.30%(3)
0.05%
0.50%
|
Loan Interest
|
8%
|
Annual Portfolio Company Expenses
|
Minimum
|
Maximum
|
(expenses that are deducted from Portfolio Company assets, including management fees,
distribution and/or service (12b-1) fees, and other expenses)
|
0.13%
|
1.32%
|
If You surrender Your Contract at the end of the applicable time
period:
|
1 year
|
3 years
|
5 years
|
10 years
|
$11,165
|
$16,619
|
$21,141
|
$32,827
|
If You annuitize or do not surrender Your Contract at the end of
the applicable time period:
|
1 year
|
3 years
|
5 years
|
10 years
|
$3,013
|
$9,210
|
$15,644
|
$32,827
|
Type of Fund
|
Portfolio Company and
Adviser/Subadviser(1)
|
Current
Expenses
|
Average Annual Total Returns
(as of 12/31/23)
|
||
1-year
|
5-year
|
10-year
|
|||
Lifecycle/Target Date
Funds
|
Fidelity® VIP Freedom
2015 Portfolio SC2 /
Fidelity Management and
Research Co.
|
0.68%
|
10.64%
|
6.29%
|
4.93%
|
Lifecycle/Target Date
Funds
|
Fidelity® VIP Freedom
2025 Portfolio SC2 /
Fidelity Management and
Research Co.
|
0.74%
|
13.32%
|
7.98%
|
5.93%
|
Lifecycle/Target Date
Funds
|
Fidelity® VIP Freedom
2035 Portfolio SC2 /
Fidelity Management and
Research Co.
|
0.82%
|
16.53%
|
10.57%
|
7.40%
|
Lifecycle/Target Date
Funds
|
Fidelity® VIP Freedom
2045 Portfolio SC2 /
Fidelity Management and
Research Co.
|
0.87%
|
19.13%
|
11.75%
|
7.92%
|
Lifecycle/Target Date
Funds
|
Fidelity® VIP Freedom
2055 Portfolio SC2 /
Fidelity Management and
Research Co.
|
0.87%
|
19.12%
|
||
Lifecycle/Target Date
Funds
|
Fidelity® VIP Freedom
2065 Portfolio SC2 /
Fidelity Management and
Research Co.
|
0.87%
|
19.12%
|
||
Asset Allocation
|
Fidelity® VIP
FundsManager® 20% SC2 /
Fidelity Management and
Research Co.
|
0.70%*
|
7.91%
|
3.74%
|
3.03%
|
Asset Allocation
|
Fidelity® VIP
FundsManager® 50% SC2 /
Fidelity Management and
Research Co.
|
0.85%*
|
12.65%
|
7.36%
|
5.35%
|
Asset Allocation
|
Fidelity® VIP
FundsManager® 60% SC2 /
Fidelity Management and
Research Co.
|
0.86%*
|
14.08%
|
8.43%
|
6.10%
|
Asset Allocation
|
Fidelity® VIP
FundsManager® 70% SC2 /
Fidelity Management and
Research Co.
|
0.89%*
|
15.57%
|
9.58%
|
6.74%
|
Asset Allocation
|
Fidelity® VIP
FundsManager® 85% SC2 /
Fidelity Management and
Research Co.
|
0.93%*
|
17.48%
|
11.10%
|
7.72%
|
Type of Fund
|
Portfolio Company and
Adviser/Subadviser(1)
|
Current
Expenses
|
Average Annual Total Returns
(as of 12/31/23)
|
||
1-year
|
5-year
|
10-year
|
|||
Large Value
|
American Funds IS
Washington Mutual
Investors Fund Class 4 /
Capital Research and
Management Company
|
0.77%*
|
16.97%
|
12.33%
|
9.64%
|
Large Blend
|
Fidelity® VIP Index 500
Portfolio SC 2(2) / Fidelity
Management & Research
Co.
|
0.35%
|
25.88%
|
15.27%
|
11.64%
|
Large Blend
|
LVIP JPMorgan U.S. Equity
Fund - Standard Class / J.P.
Morgan Investment
Management Inc.
|
0.69%
|
27.16%
|
17.15%
|
12.44%
|
Large Growth
|
American Funds IS Growth
Fund Class 4 / Capital
Research and Management
Company
|
0.84%
|
38.13%
|
18.38%
|
14.07%
|
Mid Value
|
MFS VIT III Mid-Cap
Value Portfolio Service
Class / Massachusetts
Financial Services
Company
|
1.04%*
|
12.39%
|
12.60%
|
8.46%
|
Mid Blend
|
CVT S&P Mid-Cap 400
Index Class F / Calvert
Research and Management
|
0.53%*
|
15.89%
|
12.06%
|
8.66%
|
Mid Growth
|
Allspring VT Discovery
SMID Cap Growth
Fundsm(2) / Allspring Global
Investments, LLC
|
1.15%*
|
20.14%
|
9.90%
|
7.43%
|
Small Value
|
JPMorgan Small Cap Value
Fund - A Shares / J.P.
Morgan Investment
Management Inc.
|
1.19%*
|
12.77%
|
10.12%
|
5.93%
|
Small Blend
|
BNY Mellon Investment
Portfolios: Small Cap Stock
Index Portfolio - Service
Shares(2) / BNY Mellon
Investment Adviser, Inc.
|
0.60%*
|
15.39%
|
10.41%
|
8.04%
|
Small Growth
|
ClearBridge Variable Small
Cap Growth 1 / Legg
Mason Partners Fund
Advisor, LLC.
|
0.80%
|
8.40%
|
9.56%
|
7.89%
|
International Stock -
Developed Markets
|
MFS VIT II International
Growth Portfolio Service
Class / Massachusetts
Financial Services
Company
|
1.13%*
|
14.39%
|
9.20%
|
6.09%
|
International Stock -
Emerging Markets
|
American Funds IS New
World Fund Class 4 /
Capital Research and
Management Company
|
1.07%*
|
15.67%
|
8.37%
|
4.43%
|
Real Estate
|
Fidelity® VIP Real Estate
SC2 / Fidelity Management
& Research Co.
|
0.85%
|
10.89%
|
4.96%
|
5.77%
|
Type of Fund
|
Portfolio Company and
Adviser/Subadviser(1)
|
Current
Expenses
|
Average Annual Total Returns
(as of 12/31/23)
|
||
1-year
|
5-year
|
10-year
|
|||
Intermediate-Term
Bond
|
Fidelity® VIP Investment
Grade Bond Portfolio SC
2(2) / Fidelity Management
& Research Co.
|
0.63%
|
6.00%
|
1.72%
|
2.08%
|
High Yield Bond
|
BlackRock High Yield V.I.
Class III / BlackRock
Advisers, LLC.
|
0.79%*
|
12.94%
|
5.49%
|
4.21%
|
Global Bond
|
Vanguard® VIF Global
Bond Index / The Vanguard
Group, Inc.
|
0.13%
|
6.52%
|
0.99%
|
|
Balanced
|
American Funds IS
Managed Risk Asset
Allocation Fund - P2 /
Capital Research and
Management Company
|
0.90%*
|
10.23%
|
5.91%
|
4.74%
|
Balanced
|
Wilshire VIT Global
Allocation Fund(2) /
Wilshire Advisors, LLC
|
1.32%
|
16.44%
|
7.24%
|
5.04%
|
Money Market
|
Goldman Sachs VIT
Government Money Market
Fund / Goldman Sachs
Asset Management, L.P
|
0.18%*
|
5.05%
|
1.82%
|
1.19%
|