04/29/2024 | Press release | Distributed by Public on 04/29/2024 13:13
SPECIAL TERMS
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3
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IMPORTANT INFORMATION YOU SHOULD CONSIDER ABOUT THE CONTRACT
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5
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APPENDIX A - FUNDS AVAILABLE UNDER THE CONTRACT
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8
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FEES AND EXPENSES
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Location In The
Prospectus
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Charges for
Early
Withdrawals
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If you withdraw money from your Contract within 7 years following your
last Purchase Payment, you will be assessed a withdrawal charge of up to
6.0% (as a percentage of Purchase Payments withdrawn), declining to 0%
over that time period. For example, if you make a withdrawal, you could pay
a withdrawal charge of up to $6,000 on a $100,000 investment.
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Fee Table -
Transaction
Expenses
Withdrawals,
Withdrawal
Charges,
and Market
Value Adjustment
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Transaction
Charges
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In addition to charges for early withdrawals, you may also be charged for
other transactions. There may be taxes on Purchase Payments and charges
for transfers between investment options. Currently, we do not charge for
transfers. However, we reserve the right to charge $15 per transfer.
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Fee Table -
Transaction
Expenses
Transfer Privilege
Contract Charges
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Ongoing Fees
and Expenses
(annual charges)
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The table below describes the fees and expenses that you may pay each year,
depending on the investment options you choose. Please refer to your
Contract specifications page for information about the specific fees you will
pay each year based on the investment options you have elected.
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Fee Table -
Transaction
Expenses
Contract Charges
Benefits Available
Under the
Contract
Appendix A -
Funds Available
Under the
Contract
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Annual Fee
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Minimum
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Maximum
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Base contract:
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1.40%1
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1.40%1
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Investment Options
(Fund fees and expenses)
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0.44%2
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1.50%2
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1
As a percentage of average daily net Variable Account assets.
2
As a percentage of Fund net assets.
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
withdrawal charges that substantially increase costs.
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Lowest Annual Cost:
$1,754
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Highest Annual Cost:
$2,566
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Assumes:
•Investment of $100,000
•5% annual appreciation
•Least expensive Fund fees and
expenses
•No sales charges
•No additional Purchase Payments,
transfers or withdrawals
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Assumes:
•Investment of $100,000
•5% annual appreciation
•Most expensive Fund fees and
expenses
•No sales charges
•No additional Purchase
Payments, transfers or
withdrawals
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RISKS
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Location In The
Prospectus
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Risk of Loss
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You can lose money by investing in the Contract.
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Principal Risks of
Investing in the
Contract
Transfer Privilege
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RISKS (CONT.)
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Location In The
Prospectus
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Not a
Short-Term
Investment
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•The Contract is not a short-term investment and is not appropriate for an
investor who needs ready access to cash.
•The benefits of tax deferral, long-term income and living benefit
guarantees mean the Contract is generally more beneficial to investors
with a long-term horizon. You should not use the Contract as a short-term
investment.
•Withdrawal charges may apply to withdrawals taken within 7 years after a
Purchase Payment. If you take a withdrawal, a withdrawal charge may
reduce the withdrawal amount that you actually receive and the value of
your investment. Withdrawals may also reduce or terminate Contract
guarantees.
•Withdrawals may be subject to taxes, including a 10% federal tax penalty
if you take a withdrawal before age 59 1∕2.
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Principal Risks of
Investing in the
Contract
Withdrawals,
Withdrawals
Charges, and
Market Value
Adjustment
Tax
Considerations
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Risks Associated
with Investment
Options
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•An investment in the 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., the Funds).
•Each investment option (including any Fixed Account investment option)
will have its own unique risks.
•You should review the investment options before making an investment
decision.
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Principal Risks of
Investing in the
Contract
The Variable
Account
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Insurance
Company Risks
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An investment in the Contract is subject to the risks related to the Company.
Any obligations (including under any Fixed Account investment options),
guarantees, or benefits are subject to the claims-paying ability of the
Company. Additional information about the Company, including its
financial strength ratings, is available upon request by calling (877)
253-2323 or visiting https://www.delawarelife.com/contact-us/contact-page.
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Principal Risks of
Investing in the
Contract
The Variable
Account
The Fixed
Account
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RESTRICTIONS
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Location In The
Prospectus
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Investments
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•Certain investment options may not be available under the contract.
•You are allowed to make 12 transfers between investment options per
Account Year. We reserve the right to charge $15 per transfer. At least 6
days must elapse between transfers. Your transfers between Fund options
are subject to policies designed to deter frequent transfers. These transfer
restrictions do not apply to transfers under the Contract's automatic
programs.
•We reserve the right to remove or substitute Funds as investment options.
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The Variable
Account
Options: The
Trusts
The Fixed
Account
Transfer Privilege
Appendix A:
Funds Available
Under the
Contract
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Optional
Benefits
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N/A
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TAXES
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Location In The
Prospectus
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Tax Implications
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•You should consult with a tax professional to determine the tax
implications of an investment in and payments received under the
Contract.
•There is no additional tax benefit if you purchase the Contract through a
tax-qualified plan or an individual retirement account (IRA).
•Earnings under your Contract are taxed at ordinary income rates when
withdrawn. You may be subject to a 10% federal tax penalty if you take a
withdrawal before age 59 1∕2.
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Tax
Considerations
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CONFLICTS OF INTEREST
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Location In The
Prospectus
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Investment
Professional
Compensation
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Your investment professional may receive compensation for selling the
Contract to you, including commissions, other cash compensation, and
non-cash compensation. We may share the revenue we earn on this Contract
with your investment professional's firm. As a result of these compensation
arrangements, your investment professional may have a financial incentive
to offer or recommend this Contract to you over another investment for
which the investment professional is not compensated or compensated less.
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Distribution of
the Contracts
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Exchanges
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Some investment professionals may have a financial incentive to offer you a
new contract in place of the one you already own. You should only exchange
a contract you already own if you determine, after comparing the features,
fees, and risks of both contracts, that it is better for you to purchase the new
contract rather than continue to own your existing contract.
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Type
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Fund
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Adviser/Subadviser
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Current
Expenses
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Average Annual Total Returns
(as of 12/31/23)
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1 Year
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5 Year
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10 Year
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||||
Equity - US Large Cap
Blend
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MFS® Variable Insurance Trust II
MFS® Blended Research® Core Equity
Portfolio
Initial Class
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Massachusetts Financial
Services Company
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0.43%1
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28.53%
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15.81%
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11.10%
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Equity - US Large Cap
Blend
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MFS® Variable Insurance Trust II
MFS® Core Equity Portfolio
Initial Class
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Massachusetts Financial
Services Company
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0.81%1
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23.14%
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15.08%
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11.61%
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Fixed Income - US
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MFS® Variable Insurance Trust II
MFS® Corporate Bond Portfolio
Initial Class
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Massachusetts Financial
Services Company
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0.63%1
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9.11%
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2.67%
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2.81%
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Equity - Global
Emerging Markets
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MFS® Variable Insurance Trust II
MFS® Emerging Markets Equity
Portfolio
Initial Class
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Massachusetts Financial
Services Company
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1.23%1
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10.90%
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2.04%
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1.56%
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Fixed Income - Global
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MFS® Variable Insurance Trust II
MFS® Global Governments Portfolio
Initial Class
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Massachusetts Financial
Services Company
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0.69%1
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2.32%
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-1.66%
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-0.54%
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Equity - Global Large
Cap
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MFS® Variable Insurance Trust II
MFS® Global Growth Portfolio
Initial Class
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Massachusetts Financial
Services Company
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0.88%1
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20.99%
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13.76%
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10.07%
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Equity - Global Large
Cap
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MFS® Variable Insurance Trust II
MFS® Global Research Portfolio
Initial Class
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Massachusetts Financial
Services Company
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0.85%1
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19.28%
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12.34%
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8.17%
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Allocation - Cautious
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MFS® Variable Insurance Trust II
MFS® Global Tactical Allocation Portfolio
Initial Class
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Massachusetts Financial
Services Company
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0.83%1
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9.63%
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4.94%
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3.87%
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Fixed Income - US
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MFS® Variable Insurance Trust II
MFS® Government Securities Portfolio
Initial Class
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Massachusetts Financial
Services Company
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0.58%1
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4.15%
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0.32%
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1.06%
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Equity - US Large Cap
Growth
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MFS® Variable Insurance Trust
MFS® Growth Series
Initial Class
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Massachusetts Financial
Services Company
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0.73%1
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35.86%
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15.89%
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12.97%
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Fixed Income - US
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MFS® Variable Insurance Trust II
MFS® High Yield Portfolio
Initial Class
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Massachusetts Financial
Services Company
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0.72%1
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12.41%
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4.66%
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3.82%
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Fixed Income - US
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MFS® Variable Insurance Trust II
MFS®Income Portfolio
Initial Class
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Massachusetts Financial
Services Company
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0.67%1
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7.59%
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2.62%
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2.66%
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Equity - Global Large
Cap
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MFS® Variable Insurance Trust II
MFS® International Growth Portfolio
Initial Class
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Massachusetts Financial
Services Company
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0.88%1
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14.72%
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9.47%
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6.36%
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Type
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Fund
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Adviser/Subadviser
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Current
Expenses
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Average Annual Total Returns
(as of 12/31/23)
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1 Year
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5 Year
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10 Year
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||||
Equity - Global Large
Cap
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MFS® Variable Insurance Trust II
MFS® International Intrinsic Value
Portfolio
Initial Class
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Massachusetts Financial
Services Company
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0.89%1
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17.66%
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8.58%
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6.92%
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Equity - US Large Cap
Growth
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MFS® Variable Insurance Trust II
MFS® Massachusetts Investors Growth
Stock Portfolio
Initial Class
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Massachusetts Financial
Services Company
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0.73%1
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24.01%
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16.68%
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12.71%
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Equity - US Mid Cap
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MFS® Variable Insurance Trust
MFS® Mid Cap Growth Series
Initial Class
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Massachusetts Financial
Services Company
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0.80%1
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21.32%
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13.31%
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11.12%
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Equity - US Small Cap
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MFS® Variable Insurance Trust
MFS® New Discovery Series
Initial Class
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Massachusetts Financial
Services Company
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0.87%1
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14.41%
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11.08%
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7.67%
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Equity - Global Large
Cap
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MFS® Variable Insurance Trust II
MFS® Research International Portfolio
Initial Class
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Massachusetts Financial
Services Company
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0.89%1
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13.01%
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8.49%
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4.15%
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Equity - Technology
Sector
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MFS® Variable Insurance Trust II
MFS® Technology Portfolio
Initial Class
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Massachusetts Financial
Services Company
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0.85%1
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54.23%
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17.65%
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15.56%
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Allocation - Moderate
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MFS® Variable Insurance Trust
MFS® Total Return Series
Initial Class
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Massachusetts Financial
Services Company
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0.61%1
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10.44%
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8.54%
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6.53%
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US Money Market
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MFS® Variable Insurance Trust II
MFS® U.S. Government Money Market
Portfolio
Initial Class2
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Massachusetts Financial
Services Company
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0.44%1
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4.58%
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1.51%
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0.91%
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Equity - Utilities
Sector
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MFS® Variable Insurance Trust
MFS® Utilities Series
Initial Class
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Massachusetts Financial
Services Company
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0.79%1
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-2.11%
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8.31%
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6.39%
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Equity - US Large Cap
Value
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MFS® Variable Insurance Trust
MFS® Value Series
Initial Class
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Massachusetts Financial
Services Company
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0.69%1
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7.93%
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11.34%
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8.52%
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