05/02/2024 | Press release | Distributed by Public on 05/02/2024 06:09
Contents
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2
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Definitions
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3
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Updated Information about Your Contract
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4
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Important Information You Should Consider About the Contract
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5
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Appendix A: Portfolio Companies Available Under the Contract
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8
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Fees and Expenses
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Location in
Statutory
Prospectus
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Charges For Early
Withdrawals
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The Contract currently does not include any charges for withdrawals or
surrenders from the Contract.
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The Contract -
Deductions and
Expenses -
Surrender Charges
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Transaction Charges
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Aside from the charges for early withdrawals described above and potential
premium taxes, there are no charges for Contract Owner transactions.
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The Contract -
Transactions
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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 options You choose. Please refer to YourContract data page
for information about the specific fees You will pay each year based on the
options You have elected.
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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
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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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1.28% of the Account
Value
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1.28% of the Account
Value
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Investment Options
(Portfolio Company
Fees and Expenses)
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0.04% as a percentage
of Portfolio Company
assets
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1.16% as a percentage
of Portfolio Company
assets
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Optional Benefits
Available for an
Additional Charge (For
a Single Optional
Benefit, if Elected)
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No optional benefits are
available.
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No optional benefits are
available.
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Because YourContract 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.
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LOWEST ANNUAL COST:
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HIGHEST ANNUAL COST:
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Assumes:
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Assumes:
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●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
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●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
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Risks
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Risk of Loss
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You can lose money by investing in this Contract, including loss of principal.
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Principal Risks of
Investing in the
Contract - Risk of
Loss
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Not a Short-term
Investment
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This Contract is not designed for short-term investing and is not appropriate
for an investor who needs ready access to cash.
The benefits of tax deferral also mean the Contract is more beneficial to
investors with a long-time horizon.
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Location in
Statutory
ProspectusPrincipal
Risks of Investing
in the Contract -
Not a Short-term
Investment
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Risks Associated with
Investment Options
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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.
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Principal Risks of
Investing in the
Contract - Risks
Associated with
Investment Options
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Insurance Company
Risks
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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.
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Principal Risks of
Investing in the
Contract -
Insurance
Company Risks
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Restrictions
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Investments
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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.
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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
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Optional Benefits
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No optional benefits are available.
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Taxes
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Tax Implications
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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.
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Tax Consequences -
Taxation of
Qualified Contracts
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Conflicts of Interest
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Location in
Statutory
Prospectus
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Investment
Professional
Compensation
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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.
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Other Information
- Distribution of
the Contract
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Exchanges
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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.
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The Contract -
Transactions -
Conversions/
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Type of Fund
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Portfolio Company and
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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Lifecycle/Target Date
Funds
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Vanguard® Retirement
Income Fund / The
Vanguard Group, Inc.
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0.08%
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10.74%
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4.83%
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4.09%
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Lifecycle/Target Date
Funds
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Vanguard® Target
Retirement 2020 Fund / The
Vanguard Group, Inc.
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0.08%
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12.51%
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6.61%
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5.52%
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Lifecycle/Target Date
Funds
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Vanguard® Target
Retirement 2025 Fund / The
Vanguard Group, Inc.
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0.08%
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14.55%
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7.56%
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6.10%
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Lifecycle/Target Date
Funds
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Vanguard® Target
Retirement 2030 Fund / The
Vanguard Group, Inc.
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0.08%
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16.03%
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8.37%
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6.58%
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Lifecycle/Target Date
Funds
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Vanguard® Target
Retirement 2035 Fund / The
Vanguard Group, Inc.
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0.08%
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17.14%
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9.17%
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7.06%
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Lifecycle/Target Date
Funds
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Vanguard® Target
Retirement 2040 Fund / The
Vanguard Group, Inc.
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0.08%
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18.34%
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9.99%
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7.52%
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Lifecycle/Target Date
Funds
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Vanguard® Target
Retirement 2045 Fund / The
Vanguard Group, Inc.
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0.08%
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19.48%
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10.76%
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7.91%
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Lifecycle/Target Date
Funds
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Vanguard® Target
Retirement 2050 Fund / The
Vanguard Group, Inc.
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0.08%
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20.17%
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10.93%
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7.99%
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Lifecycle/Target Date
Funds
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Vanguard® Target
Retirement 2055 Fund / The
Vanguard Group, Inc
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0.08%
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20.16%
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10.92%
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7.97%
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Lifecycle/Target Date
Funds
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Vanguard® Target
Retirement 2060 Fund / The
Vanguard Group, Inc.
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0.08%
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20.18%
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10.92%
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7.97%
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Large Value
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T Rowe Price Equity
Income Fund - Investor
Class / T Rowe Price
Associates, Inc.
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0.68%
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9.65%
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11.32%
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7.98%
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Large Blend
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Vanguard® 500 Index
Admiral Shares / The
Vanguard Group, Inc.
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0.04%
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26.24%
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15.65%
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11.99%
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Large Growth
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Putnam VT Sustainable
Leaders IA / Putnam
Investment Management,
LLC.
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0.65%
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26.42%
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16.38%
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12.87%
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Large Growth
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T Rowe Price Growth Stock
Fund - Investor Class / T
Rowe Price Associates, Inc.
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0.65%
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45.27%
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13.33%
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11.71%
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Type of Fund
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Portfolio Company and
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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Mid Value
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Vanguard® Selected Value /
The Vanguard Group, Inc.
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0.43%
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25.33%
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15.23%
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8.78%
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Mid Blend
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Vanguard® Extended
Market Index Admiral
Shares / The Vanguard
Group, Inc.
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0.06%
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25.38%
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11.91%
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8.54%
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Mid Growth
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T Rowe Price New
Horizons Fund - Investor
Class / T Rowe Price
Associates, Inc.
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0.78%
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21.35%
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12.74%
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11.53%
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Mid Growth
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Vanguard® Mid-Cap
Growth Fund(3) / The
Vanguard Group, Inc.
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0.37%
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24.08%
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10.90%
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8.25%
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Small Value
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T Rowe Price Small-Cap
Value Fund - Investor
Class / T Rowe Price
Associates, Inc.
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0.80%*
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12.22%
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10.19%
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7.21%
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Small Blend
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Vanguard® Small Cap Index
Admiral Shares / The
Vanguard Group, Inc.
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0.05%
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18.20%
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11.70%
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8.43%
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Small Growth
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MFS VIT New Discovery
Series Initial Class /
Massachusetts Financial
Services Company
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0.87%*
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14.41%
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11.08%
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7.67%
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International Stock -
Developed Markets
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American Funds IS
International Growth and
Income 1 / Capital Research
and Management
CompanySM
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0.56%
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16.08%
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6.38%
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3.33%
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International Stock -
Developed Markets
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T Rowe Price Overseas
Stock Fund - Investor
Class / T Rowe Price
Associates, Inc.
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0.78%
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16.31%
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8.19%
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4.36%
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International Stock -
Developed Markets
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Vanguard® Developed
Markets Index - Admiral
Shares / The Vanguard
Group, Inc.
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0.08%
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17.67%
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8.36%
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4.54%
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International Stock -
Emerging Markets
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T Rowe Price Emerging
Markets Stock
Fund - Investor Class / T
Rowe Price Associates, Inc.
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1.16%
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2.06%
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0.83%
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2.28%
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International Stock -
Emerging Markets
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Vanguard® Emerging
Markets Stock Index
Admiral Share / The
Vanguard Group, Inc.
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0.14%
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9.21%
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4.66%
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2.98%
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Real Estate
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T Rowe Price Global Real
Estate - Investor Class / T
Rowe Price Associates, Inc.
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0.95%
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11.57%
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4.64%
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4.10%
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Real Estate
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Vanguard® Real Estate
Index Fund Admiral Shares
/ The Vanguard Group, Inc.
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0.12%
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11.81%
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7.33%
|
7.36%
|
Intermediate-Term
Bond
|
American Funds IS US
Government Securities 1 /
Capital Research and
Management CompanySM
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0.26%*
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3.21%
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1.31%
|
1.78%
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Type of Fund
|
Portfolio Company and
Adviser/Subadviser
|
Current
Expenses
|
Average Annual Total Returns
(as of 12/31/23)
|
||
1-year
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5-year
|
10-year
|
|||
Intermediate-Term
Bond
|
Fidelity VIP Investment
Grade Bond Initial Class /
Fidelity Management &
Research Co.
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0.38%
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6.20%
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1.97%
|
2.33%
|
Intermediate-Term
Bond
|
T Rowe Price New Income
Fund - Investor Class(2) / T
Rowe Price Associates, Inc.
|
0.44%*
|
4.72%
|
0.60%
|
1.48%
|
Intermediate-Term
Bond
|
Vanguard® Total Bond
Market Index Admiral
Shares / The Vanguard
Group, Inc.
|
0.05%
|
5.70%
|
1.11%
|
1.79%
|
Global Bond
|
T Rowe Price International
Bond Fund - Investor
Class(1) / T Rowe Price
Associates, Inc.
|
0.67%*
|
7.09%
|
-1.18%
|
-0.59%
|
Global Bond
|
Vanguard® VIF Global
Bond Index / The Vanguard
Group, Inc.
|
0.13%
|
6.52%
|
0.99%
|
|
Multi-Sector Bond
|
T Rowe Price Spectrum
Income Fund - Investor
Class / T Rowe Price
Associates, Inc.
|
0.62%
|
7.89%
|
3.20%
|
3.00%
|
High Yield Bond
|
Vanguard® High-Yield
Corporate Fund Admiral
Shares / The Vanguard
Group, Inc.
|
0.13%
|
11.74%
|
5.21%
|
4.43%
|
Short-Term Bond
|
Vanguard® VIF Short-Term
Investment Grade Bond /
The Vanguard Group, Inc.
|
0.14%
|
6.16%
|
2.13%
|
1.93%
|
Balanced
|
Calvert VP SRI Balanced I /
Calvert Research and
Management.
|
0.65%
|
16.82%
|
10.27%
|
7.46%
|