Horace Mann Life Insurance Co. Separate Account

04/26/2024 | Press release | Distributed by Public on 04/26/2024 05:48

Updating Summary Prospectus - Form 497VPU

Updating Summary Prospectus for Goal Planning Annuity
Updating Summary Prospectus
for Goal Planning Annuity
Issued by
Horace Mann Life Insurance Company
May 1, 2024
This Updating Summary Prospectus summarizes key features of the Contract ("Goal Planning Annuity"). This Updating Summary Prospectus also provides a summary of Contract features that have changed.
The prospectus for the Goal Planning Annuity contains more information about the Contract, including its features, benefits, and risks. You can find the prospectus and other information about the Contract online at dfinview.com/HoraceMann/TAHD/GPA. You can also obtain this information at no cost by calling 1-800-999-1030 or by sending an email request to [email protected].
Additional information about certain investment products, including variable annuities, has been prepared by the Securities and Exchange Commission's staff and is available at Investor.gov.
The Securities and Exchange Commission has not approved or disapproved this contract or passed upon the adequacy of this summary prospectus. Any representation to the contrary is a criminal offense.
To receive prospectuses and other annuity-related documents electronically, sign-up for eDelivery. Visit https://customer.horacemann.com/MyAccount/Login/Loginto register or log in to Your account. Your eDelivery preferences can be found on the eCommunications tab in My Profile.
This prospectus and the Underlying Fund prospectuses are also available online at dfinview.com/HoraceMann/TAHD/GPA.
We appreciate Your cooperation as we work to reduce the volume of paper we distribute. While we're committed to providing you with the information you need in the format you prefer, we are always looking for ways to reduce paper use.
1
Contents
Contents
2
Definitions
3
Updated Information about Your Contract
4
Important Information You Should Consider About the Contract
5
Appendix A: Portfolio Companies Available Under the Contract
9
2
Definitions
Account Value: The sum of the Fixed Account Value and the Variable Account Value.
Annuity Date: The date Annuity Payments begin. The criteria for setting an Annuity Date are set forth in Your Contract, and the anticipated Annuity Date is shown on the Annuity Data pages of Your Contract.
In addition, Qualified Contracts often have certain limitations upon election of an Annuity Date. Generally, distributions under Qualified Contracts (except Roth IRAs) must begin by April 1 following the calendar year in which the Contract Owner reaches age 73.
Contract: The individual flexible premium deferred variable annuity contract this prospectus offers.
Contract Owner (You, Your): The individual or entity to whom the Contract is issued.
Fixed Account Value: The dollar value of the fixed account under the Contract before Annuity Payments begin.
HMLIC, We, Us, Our: Horace Mann Life Insurance Company.
Investment Options: The fixed account and the Underlying Funds in which the Subaccounts invest.
Portfolio Companies, Underlying Funds: All open-end management investment companies registered under the Act that are listed in this document and are available for investment by the Separate Account.
Separate Account: The Horace Mann Life Insurance Company Separate Account, a segregated variable investment account consisting of Subaccounts each of which invests in a corresponding Underlying Fund. The Separate Account was established by HMLIC under Illinois law and is registered as a Unit Investment Trust under the Investment Company Act of 1940, as amended (the "Act").
Subaccount: A division of the Separate Account that invests in shares of a corresponding Underlying Fund.
Unit Investment Trust (or "UIT"): A type of investment company, regulated and separately registered and regulated by the SEC under the Investment Company Act of 1940. The Separate Account is registered as a UIT. The UIT referenced in this prospectus is open-ended, meaning there can be continuous purchases of shares of the Underlying Funds. Variable Annuity Payments are deposited in the UIT and allocated to the Subaccounts each of which invests in a specified Underlying Fund, which is separately registered under the Investment Company Act of 1940.
Variable Account Value: The dollar value of the Subaccount(s) under the Contract before Annuity Payments begin. This dollar value will vary based on the investment performance of the corresponding Underlying Fund(s).
3
Updated Information about YourContract
The information in this Updating Summary Prospectus is a summary of certain Contract features that have changed since the prospectus dated May 1, 2023. This may not reflect all of the changes that have occurred since You entered into YourContract.
Benefit-Related Changes
No Benefit Related Changes have occurred since the last prospectus.
Underlying Fund-Related Changes
The Calvert VP S&P MidCap 400 Index Portfolio became the CVT VP S&P MidCap 400 Index Portfolio on May 1, 2024.
4
Important Information You Should Consider About the Contract
Fees and Expenses
Location in
Statutory
Prospectus
Charges For Early
Withdrawals
There are two surrender charge schedules available under this Contract. The
charges applicable to Your Contract will depend on how You completed the
application and are printed on Your Contract data pages.
5-Year Schedule - If You make a withdrawal from or surrender the Contract
during the first 5 Contract Years, You may be assessed a surrender charge up to
8.0% of the amount withdrawn or surrendered. For example, if You make an
early withdrawal, You could pay a surrender charge of up to $8,000 on a
$100,000 investment.
9-Year Schedule - If You make a withdrawal from or surrender the Contract
during the first 9 Contract Years, You may be assessed a surrender charge up to
8.0% of the amount withdrawn or surrendered. For example, if You make an
early withdrawal, You could pay a surrender charge of up to $8,000 on a
$100,000 investment.
Surrender charges are applied to surrenders and withdrawals based on the
effective date of the Contract and not on the date the premium payment is
made.
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 Contract Owner 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 Your Contract data page
for information about the specific fees You will pay each year based on the
options You have elected.
5
Fees and Expenses
Location in
Statutory
Prospectus
Annual Fee
Minimum
Maximum
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
Base Contract
1.27% of the Total
Accumulation Value
1.27% of the Total
Accumulation 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)
0.00% of the average
Variable Account Value.
0.30% of the average
Variable Account Value.
Because Your Contract is customizable, the choices You make affect how much
You will pay. To help You understand the cost of owning Your Contract, 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 Contract, which could add surrender charges that
substantially increase costs.
LOWEST ANNUAL COST:
HIGHEST ANNUAL COST:
Assumes:
Assumes:
Investment of $100,000
•5% annual appreciation
•Least expensive combination of
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
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 Contract, including loss of principal.
Principal Risks of
Investing in the
Contract - Risk of
Loss
Not a Short-term
Investment
This Contract 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 5 years under the 5-year schedule and
up to 9 years for the 9-year schedule. Surrender charges will reduce the value of
Your Contract if You withdraw money during the surrender charge period. The
benefits of tax deferral also mean the Contract 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 Contract is subject to the risk of poor investment
performance and can vary depending on the performance of the Investment
Options available under the Contract (e.g., Portfolio Companies).
Each Investment Option (including any fixed account Investment 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
6
Risks
Location in
Statutory
Prospectus
Insurance Company
Risks
An investment in the Contract is subject to the risks related to Horace Mann
Life Insurance Company (HMLIC). Any obligations (including under any
fixed account Investment 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 Contract.
At any time before the Contract'sAnnuity Date, You may transfer amounts
from one Subaccount to another, and to and from the fixed account of the
Contract, subject to certain restrictions.
We reserve the right to restrict or terminate the transfer privilege for any
specific Contract Owner if, in Our judgment, the Contract Owner is using the
Contract 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 Contract
Owners, 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
Optional Benefits
The Premium Bonus Rider was only available at issue of the Contract and only
available if the Contract Owner elected the 9-year surrender charge schedule.
The Guaranteed Minimum Death Benefit Riders may not have been available
in all states. If available, they may not have been issued on or after the
Contract Owner's70th birthday.
If You elected a Guaranteed Minimum Death Benefit Rider at issue, We
reserve the right to restrict allocations or transfers to the fixed account or any
of the Subaccounts.
The Guaranteed Minimum Death Benefit Riders cannot be terminated by the
Contract Owner after the Issue Date.
The Guaranteed Minimum Death Benefit Riders may only be terminated by
Us as described in the Guaranteed Minimum Death Benefit Rider(s) attached
to Your Contract.
The Contract -
Deductions and
Expenses -
Premium Bonus
Rider
The Contract -
Death Benefit -
Guaranteed
Minimum Death
Benefit Riders
7
Taxes
Location in
Statutory
Prospectus
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
Contract.
There is no additional tax benefit to the investor when the Contract is
purchased through a tax-qualified plan or individual retirement account (IRA).
Withdrawals will be subject to ordinary income tax and may be subject to tax
penalties.
Generally, all or a portion of any distribution from a Non-Qualified Contract
will be taxable as ordinary income and may be subject to tax penalties.
Tax Consequences -
Taxation of
Qualified Contracts
Tax Consequences -
Taxation of Non-
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 Contract 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 Contract 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/
8
Appendix A: Portfolio Companies Available Under the Contract
The following is a list of Portfolio Companies available under the Contract. More information about the Portfolio Companiesis available in the prospectuses for the Portfolio Companies, which may be amended from time to time and can be found online at dfinview.com/HoraceMann/TAHD/GPA. You can also request this information at no cost by calling 1-800-999-1030 or by sending an email request to [email protected].
The current expenses and performance information below reflects fees and expenses of the Portfolio Companies, but do not reflect the other fees and expenses that YourContract may charge. Expenses would be higher and performance would be lower if these charges were included. Each Portfolio Company's past performance is not necessarily an indication of future performance.
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%
9
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(4) - 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%
Small Growth
Lord Abbett Series Fund -
Developing Growth
Portfolio(3) / Lord Abbett &
Co. LLC.
1.04%*
8.03%
9.20%
6.90%
International Stock -
Developed Markets
Fidelity® VIP Overseas
Portfolio SC 2(2)(3) / Fidelity
Management & Research
Co.
0.98%
20.22%
9.71%
4.65%
International Stock -
Developed Markets
MFS VIT II International
Growth Portfolio Service
Class / Massachusetts
Financial Services
Company
1.13%*
14.39%
9.20%
6.09%
10
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
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%
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
Templeton Global Bond
VIP Fund - Class 4(3) /
Franklin Advisers, Inc.
0.85%*
2.82%
-2.23%
-0.76%
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%
*
These expenses reflect temporary fee reductions. The details about these waivers can be found in the Portfolio Company prospectus at dfinview.com/HoraceMann/TAHD/GPA
(1)
Under certain Guaranteed Minimum Death Benefit Riders, We reserve the right to restrict allocations or transfers to the Fixed Account or any of the Portfolio Companies.
(2)
The following Portfolio Companies are available for Variable Annuity Payments: Wilshire VIT Global Allocation Fund, Fidelity® VIP Index 500 Portfolio SC 2, Fidelity® VIP Overseas Portfolio SC 2, Fidelity® VIP Investment Grade Bond Portfolio SC 2, Allspring VT Discovery Fundsm and BNY Mellon Investment Portfolios: Small Cap Stock Index Portfolio-Service Shares.
(3)
On and after May 1, 2019, Contract Owners may not begin or increase premium payment allocations or make new transfers to the Portfolio Companies. However, if Contract Owners were participating on that date in the dollar cost averaging program or the rebalancing program with allocations to the Portfolio Companies, they may continue the program(s), but may not begin or increase allocations.
(4)
This Portfolio Company is not available as an Investment Option in Non-Qualified Contracts.
11
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This Summary Prospectus incorporates by reference the Goal Planning Annuity prospectus and Statement of Additional Information (SAI), both dated May 1, 2024, as amended or supplemented. The SAI may be obtained, free of charge, in the same manner as the prospectus or You can find the Statement of Additional Information online.
EDGAR Filing Number C000020488