Filed On 5/11/01 4:06pm ET · SEC File 333-88503 · Accession Number 950109-1-501260
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| SUPPLEMENT TO SVUL II/MM (MMVLSAI) |
Survivorship Flexible Premium Adjustable Variable Life Insurance Policy
Issued by Massachusetts Mutual Life Insurance Company
The prospectus for the policy is revised to make the following changes:
|
1.
|
Effective July 2, 2001, five (5) new divisions of the Separate Account are being added to the policy. [NOTE:
Initially, these new divisions will not be available with California policies.] Each division invests in a designated investment fund, as shown:
|
| New Division Name
INVESCO Technology
MML Emerging Growth
MML Large Cap Value
MML OTC 100
Oppenheimer International Growth
|
|
Investment Fund
INVESCO VIF–Technology Fund
MML Emerging Growth Fund
MML Large Cap Value Fund
MML OTC 100 Fund
Oppenheimer International Growth Fund/VA
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|
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2.
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Effective July 2, 2001, two new product features will be available under the policy: Dollar Cost Averaging
and Portfolio Rebalancing.
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3.
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The section entitled “Suicide” in Part IV of the prospectus has been reworded to better reflect the wording in the
policy.
|
There are no other changes being made at this time.
Revised Policy Prospectus Pages
Revisions to certain pages of the policy prospectus, included herein, are as follows:
1.
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The Facing Page is revised to add the five (5) investment funds.
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3.
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Pages 3 and 4, the table of Investment Management Fees and Other Expenses, is revised to include the added investment
funds.
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4.
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Page 9 is revised to add descriptions of the Dollar Cost Averaging and Portfolio Rebalancing features. The revised pages are
numbered 9 and 9a.
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5.
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Part III, Investment Options, on pages 17 through 22, is revised to include the new divisions and the added investment funds.
The revised pages are numbered 17 through 22a.
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6.
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Page 25 is revised to include the reworded Suicide section.
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7.
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In Appendix B, page B-3 and Tables 1 and 2 are revised to reflect the expenses of the added investment funds.
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8.
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In Appendix C, Tables 1 and 2 are revised to include the performance of the new divisions and the added investment funds,
respectively.
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Investment Fund Prospectuses
New, effective prospectuses for the three MML Series investment funds listed above are already included with your current prospectus booklet dated May 1, 2001. Please
refer to your current booklet.
New, effective prospectuses for the INVESCO VIF–Technology Fund and the Oppenheimer International Growth Fund/VA are included with this mailing.
Li2300-01.1
Survivorship Flexible Premium Adjustable Variable Life Insurance Policy*
Issued by Massachusetts Mutual Life Insurance Company
This prospectus describes a survivorship life insurance policy (the “policy”) offered by Massachusetts Mutual Life Insurance Company
(“MassMutual”). While the policy is in force, it provides lifetime insurance protection on the two Insureds named in the policy. It pays a death benefit at the death of the surviving Insured (the “second death”).
In this prospectus, “you” and “your” refer to the Owner of the policy. “We,” “us,” and “our” refer to
MassMutual.
The policy provides premium payment and death benefit flexibility. It permits you to vary the frequency and amount of premium payments and to increase or decrease the
death benefit. This flexibility allows you to meet changing insurance needs under a single insurance policy.
You may allocate net premiums and account value among the divisions of the Separate Account offered under this policy and a Guaranteed Principal Account (the
“GPA”). Each division invests in shares of a designated investment fund. Currently, the funds listed at the right are available under this policy.†
You bear the investment risk of any account value allocated to the investment funds. The death benefit may vary, and the net surrender value will vary, depending
on the investment performance of the funds.
This policy is not a deposit or obligation of, or guaranteed or endorsed by, any financial institution. It is not insured by the Federal Deposit Insurance
Corporation, the Federal Reserve Board, or any other federal agency. It is also subject to investment risks, including loss of the principal amount invested.
This prospectus is not an offer to sell the policy in any jurisdiction where it is illegal to offer the policy or to anyone to whom it is illegal to offer the
policy.
This policy provides insurance protection. It is not a way to invest in mutual funds. Replacing an existing life insurance policy with this policy may not be to your
advantage.
Please read this prospectus and keep it for further reference.
*Title may vary in some jurisdictions.
†Initially, the five funds noted will not be available with California policies.
American Century Variable Portfolios, Inc.
Ÿ
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American Century’s VP Income & Growth Fund
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Deutsche Asset Management VIT Funds
Ÿ
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Deutsche VIT Small Cap Index Fund
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Fidelity® Variable Insurance Products Fund II
Ÿ
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Fidelity’s® VIP II Contrafund® Portfolio
(Initial Class)
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Goldman Sachs Variable Insurance Trust
Ÿ
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Goldman Sachs VIT Capital Growth Fund
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INVESCO Variable Investment Funds, Inc.
Ÿ
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INVESCO VIF–Technology Fund†
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Janus Aspen Series
Ÿ
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Janus Aspen Capital Appreciation Portfolio
|
Ÿ
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Janus Aspen Worldwide Growth Portfolio
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MML Series Investment Fund
Ÿ
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MML Emerging Growth Fund†
|
Ÿ
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MML Equity Index Fund (Class II)
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Ÿ
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MML Large Cap Value Fund†
|
Ÿ
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MML Small Cap Growth Equity Fund
|
Ÿ
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MML Small Cap Value Equity Fund
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Oppenheimer Variable Account Funds
Ÿ
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Oppenheimer Aggressive Growth Fund/VA
|
Ÿ
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Oppenheimer Bond Fund/VA
|
Ÿ
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Oppenheimer Capital Appreciation Fund/VA
|
Ÿ
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Oppenheimer Global Securities Fund/VA
|
Ÿ
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Oppenheimer High Income Fund/VA
|
Ÿ
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Oppenheimer Main Street® Growth & Income Fund/VA
|
Ÿ
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Oppenheimer Strategic Bond Fund/VA
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Panorama Series Fund, Inc.
Ÿ
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Oppenheimer International Growth Fund/VA†
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T. Rowe Price Equity Series, Inc.
Ÿ
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T. Rowe Price Mid-Cap Growth Portfolio
|
Franklin Templeton Variable Insurance Products Trust
Ÿ
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Templeton International Securities Fund (Class
2)
|
Neither the United States Securities and Exchange Commission nor any state securities commission has approved this prospectus or determined that it is accurate or
complete. Any representation to the contrary is a criminal offense. This prospectus is valid only when accompanied by the prospectuses for the investment funds. The Securities and Exchange Commission maintains a Web site (http://www.sec.gov)
that contains material incorporated by reference and other information regarding registrants that is filed with the Commission.
ii
Investment Management Fees and Other Expenses
(Reflect any expense waiver, limitation and reimbursement
arrangements in effect, as noted)
Total fund operating expenses expressed as a percentage of average net assets for the year ended December 31, 2000.
| |
Fund Name |
|
Management
Fees |
|
Other
Expenses |
|
12b-1
Fees |
|
Total Fund
Operating
Expenses |
| |
| |
| American Century’s VP Income & Growth Fund |
|
0.70% |
|
|
0.00% |
|
|
— |
|
|
0.70% |
|
| |
| Deutsche VIT Small Cap Index Fund |
|
0.35% |
|
|
0.10% |
|
|
— |
|
|
0.45% |
1
|
| |
| Fidelity’s® VIP II Contrafund® Portfolio (Initial
Class) |
|
0.57% |
|
|
0.09% |
2
|
|
— |
|
|
0.66% |
2
|
| |
| Goldman Sachs VIT Capital Growth Fund |
|
0.75% |
|
|
0.25% |
3
|
|
— |
|
|
1.00% |
3
|
| |
| INVESCO VIF–Technology Fund |
|
0.72% |
|
|
0.30% |
4
|
|
— |
|
|
1.02% |
4
|
| |
| Janus Aspen Capital Appreciation Portfolio |
|
0.65% |
5
|
|
0.02% |
|
|
— |
|
|
0.67% |
5
|
| |
| Janus Aspen Worldwide Growth Portfolio |
|
0.65% |
5
|
|
0.04% |
|
|
— |
|
|
0.69% |
5
|
| |
| MML Blend Fund |
|
0.37% |
|
|
0.02% |
6
|
|
— |
|
|
0.39% |
6
|
| |
| MML Emerging Growth Fund |
|
1.05% |
|
|
0.11% |
6
|
|
— |
|
|
1.16% |
6
|
| |
| MML Equity Fund |
|
0.37% |
|
|
0.03% |
6
|
|
— |
|
|
0.40% |
6
|
| |
| MML Equity Index Fund (Class II) |
|
0.10% |
|
|
0.19% |
7
|
|
— |
|
|
0.29% |
7
|
| |
| MML Growth Equity Fund |
|
0.80% |
|
|
0.11% |
6
|
|
— |
|
|
0.91% |
6
|
| |
| MML Large Cap Value Fund |
|
0.80% |
|
|
0.11% |
6
|
|
— |
|
|
0.91% |
6
|
| |
| MML Managed Bond Fund |
|
0.47% |
|
|
0.02% |
6
|
|
— |
|
|
0.49% |
6
|
| |
| MML Money Market Fund |
|
0.48% |
|
|
0.03% |
6
|
|
— |
|
|
0.51% |
6
|
| |
| MML OTC 100 Fund |
|
0.45% |
|
|
0.11% |
6
|
|
— |
|
|
0.56% |
6
|
| |
| MML Small Cap Growth Equity Fund |
|
1.08% |
|
|
0.11% |
6
|
|
— |
|
|
1.19% |
6
|
| |
| MML Small Cap Value Equity Fund |
|
0.65% |
|
|
0.11% |
6
|
|
— |
|
|
0.76% |
6
|
| |
| Oppenheimer Aggressive Growth Fund/VA |
|
0.62% |
|
|
0.02% |
|
|
— |
|
|
0.64% |
|
| |
| Oppenheimer Bond Fund/VA |
|
0.72% |
|
|
0.04% |
|
|
— |
|
|
0.76% |
|
| |
| Oppenheimer Capital Appreciation Fund/VA |
|
0.64% |
|
|
0.03% |
|
|
— |
|
|
0.67% |
|
| |
| Oppenheimer Global Securities Fund/VA |
|
0.64% |
|
|
0.04% |
|
|
— |
|
|
0.68% |
|
| |
| Oppenheimer High Income Fund/VA |
|
0.74% |
|
|
0.05% |
|
|
— |
|
|
0.79% |
|
| |
| Oppenheimer Main Street® Growth & Income Fund/VA |
|
0.70% |
|
|
0.03% |
|
|
— |
|
|
0.73% |
|
| |
| Oppenheimer Strategic Bond Fund/VA |
|
0.74% |
|
|
0.05% |
|
|
— |
|
|
0.79% |
|
| |
| Oppenheimer International Growth Fund/VA |
|
1.00% |
|
|
0.17% |
|
|
— |
|
|
1.17% |
|
| |
| T. Rowe Price Mid-Cap Growth Portfolio |
|
0.85% |
|
|
0.00% |
|
|
— |
|
|
0.85% |
|
| |
| Templeton International Securities Fund (Class 2) |
|
0.67% |
|
|
0.20% |
|
|
0.25% |
8
|
|
1.12% |
|
1
Deutsche Asset Management, Inc. (the advisor), has voluntarily agreed to waive the fees and to
reimburse the Fund for certain expenses so that total operating expenses will not exceed the current expense cap of 0.45%. Without such waivers and reimbursements, the total operating expenses would have been 0.69%.
2
A portion of the brokerage commissions that Fidelity’s® VIP II Contrafund®
Portfolio pays is used to reduce the other expenses for the Portfolio. In addition, the Portfolio has entered into arrangements with its custodian, whereby credits realized as a result of uninvested cash balances are used to reduce custodian
expenses. Including these reductions, the other expenses for Fidelity’s® VIP II Contrafund® Portfolio (Initial Class) became 0.06%, decreasing the total operating expenses to 0.63%.
3
Goldman Sachs Asset Management, the investment adviser to the Fund, has voluntarily agreed to
reduce or limit certain other expenses of such Fund (excluding management fees, taxes, interest, brokerage fees, litigation, indemnification and other extraordinary expenses) to the extent such expenses exceed the percentage stated in the table, as
calculated per annum, of such Fund’s average daily net assets. The expenses shown include this reimbursement. If not included, the other expenses and total operating expenses for the Fund would be 1.09% and 1.84%, respectively, and are based on
estimated expenses for the fiscal year ended December 31, 2000. The reductions or limits may be discontinued or modified by the investment adviser in its discretion at any time.
4
Certain expenses of the INVESCO VIF-Technology Fund are being absorbed voluntarily by INVESCO
pursuant to a commitment to the Fund. This commitment may be changed at any time following consultation with the board of directors. After absorption, but excluding any expense offset arrangements, INVESCO VIF-Technology Fund’s other expenses
and total operating expenses for the year ended December 31, 2000, would have been increased by only a nominal, nonmaterial amount.
5
Expenses are based upon expenses for the fiscal year ended December 31, 2000, restated to
reflect a reduction in the management fee. All expenses are shown without the effect of expense offset arrangements.
Introduction
6
MassMutual has agreed to bear expenses of the MML Blend Fund, MML Emerging Growth Fund, MML
Equity Fund, MML Growth Equity Fund, MML Large Cap Value Fund, MML Managed Bond Fund, MML Money Market Fund, MML OTC 100 Fund, MML Small Cap Growth Equity Fund, and MML Small Cap Value Equity Fund (other than the management fee, interest, taxes,
brokerage commissions and extraordinary expenses) in excess of 0.11% of the average daily net asset value of the Funds through April 30, 2002. The expenses shown for the MML Emerging Growth Fund, MML Growth Equity Fund, MML Large Cap Value Fund, MML
OTC 100 Fund, MML Small Cap Growth Equity Fund, and MML Small Cap Value Equity Fund include this reimbursement. If not included, the other expenses for these Funds in 2001 are estimated to be 0.51% for the MML Emerging Growth Fund, 0.28%, for the
MML Growth Equity Fund, 0.27% for the MML Large Cap Value Fund, 0.43% for the MML OTC 100 Fund, 0.18% for the MML Small Cap Growth Equity, and 0.15% for the MML Small Cap Value Equity Fund. We do not expect to reimburse any expenses of the MML Blend
Fund, MML Equity Fund, MML Managed Bond Fund, and MML Money Market Fund in 2001.
7
MassMutual agreed to bear expenses of the MML Equity Index Fund (other than the management and
administrative fees, interest, taxes, brokerage commissions and extraordinary expenses) in excess of 0.19% for the Class II Shares of the average daily net asset values of the Fund through April 30, 2002. The expenses shown for the MML Equity Index
Fund include this reimbursement or waiver. If not included, the other expenses for this Fund in 2000 would be 0.25% and the total operating expenses would be 0.35%.
8
The Fund’s Class 2 distribution plan, or “rule 12b-1 plan,” is described in the
Fund’s prospectus.
(See the fund prospectuses for more information.)
4
Introduction
3.
|
Any values in the policy held as of the Issue Date will be allocated to the Money Market division on the first Valuation Date
after the Issue Date.
|
Net Premium Allocation. When
applying for the policy, you indicate how you want net premiums allocated among the divisions and the GPA. You may change your net premium allocation at any time. Just send a notice to us at our Administrative Office.
You may set your net premium allocation in terms of whole-number percentages that add to 100%. (Also see Overall Limitation on Net Premium Allocations and
Transfers.)
You may transfer all or part of the account value invested in a division of the Separate Account to any other division or to the GPA (see Overall Limitation on Net
Premium Allocations and Transfers). Simply send us a request. Although currently there is no limit on the number of transfers you may make, we reserve the right to limit the number to no more than one every 90 days. If we impose a limit, it
would not apply to a transfer of all values in the Separate Account divisions to the GPA or to transfers made in connection with any automated-transfer program we offer.
We limit transfers from the GPA to the Separate Account divisions to one each Policy Year. You may not transfer more than 25% of the fixed account value (less any
policy debt) at the time of the transfer. There is one exception to this rule. If you:
Ÿ
|
have transferred 25% of the fixed account value each Year for three consecutive Policy Years; and
|
Ÿ
|
you have not added any net premiums or transfer amounts to the GPA during these three Years; then
|
you may transfer the remainder of the fixed account value (less any policy debt) out of the GPA in the succeeding Policy Year. In this case, you must transfer the full
amount out of the GPA in one transaction.
Any transfer is effective on the Valuation Date at the price next determined after we receive the request in good order at our Administrative Office. We do not charge
for transfers.
Overall Limitation on Net Premium Allocations and Transfers. You may allocate net premiums and
transfer amounts to up to 16 divisions over the life of the policy. We reserve the right to increase this limit.
In addition, we may need to further limit access to divisions of the Separate Account, so the policy will continue to qualify as life insurance. See the Investor
Control section of Federal Income Tax Considerations in Part V for more information.
Dollar Cost Averaging Program
Dollar Cost Averaging (DCA) may be a way to soften the effects of short-term market fluctuations on one’s investment returns. It is an automated-transfer
program.
Initially, an amount of money is placed in one division of the Separate Account. Then, over a stipulated period of time and at a preset frequency, a specified amount of
account value is transferred from that “source division” and allocated to other divisions (“object divisions”).
Since the same, specified dollar amount is transferred to each object division at a preset frequency, more accumulation units are purchased when prices are low than
when prices are high. Therefore, a lower average cost per unit may be achievable than through a lump-sum purchase of units or through non-level purchases of units.
Dollar Cost Averaging will not assure you of a profit and will not protect you against a loss in declining markets. Since our DCA program anticipates continued
investment during periods of fluctuating prices, you should consider your ability to assume the
financial risks of continuing DCA through periods of fluctuating price levels.
To elect DCA, complete our DCA election form and send it to us for processing. You may specify a termination date for DCA, if you wish to do so.
If, on a specified DCA transfer date however, the source division does not have enough value to make the transfers you elected, DCA will automatically
terminate.
You may not elect Dollar Cost Averaging for the policy while Portfolio Rebalancing is in effect for the policy.
We may at any time modify, suspend, or terminate the Dollar Cost Averaging Program without prior notification.
Portfolio Rebalancing Program
Portfolio Rebalancing is a way to maintain specified ratios of account values among selected divisions of the Separate Account. It is an automated-transfer
program.
Over time, varying investment performance among divisions may cause the ratios of your account value in those divisions to change. You may automatically rebalance the
portions in the divisions you select with Portfolio Rebalancing.
You may choose divisions (“balance divisions”) among which you wish to maintain certain relative proportions of account value. At a preset frequency, we will
make transfers among these balance divisions so that your account value in these divisions will again match the ratios you desire.
To elect Portfolio Rebalancing, complete our Portfolio Rebalancing election form and send it to us for processing.
You may not elect Portfolio Rebalancing while Dollar Cost Averaging is in effect for the policy.
We may at any time modify, suspend, or terminate the Portfolio Rebalancing program without prior notification.
Policy Termination and Reinstatement
The policy will not terminate simply because you do not make planned premium payments. Conversely, making planned premium payments does not guarantee that the policy
will remain in force.
The policy may terminate if its account value cannot cover the monthly charges and the safety test is not met.
If the policy does terminate, you may be permitted to reinstate it.
Grace Period and Termination. The policy may terminate without value if:
Ÿ
|
its account value, less any outstanding policy debt, on a Monthly Charge Date cannot cover the monthly charges due;
and
|
Ÿ
|
the safety test is not met on that Date.
|
However, we allow a grace period for payment of the premium amount (not less than $20) needed to avoid termination. We will mail you a notice stating this
amount.
The policy will terminate without value if we do not receive the required payment by the end of the grace period.
Detailed Description of Policy Features
III. Investment Options
The Guaranteed Principal Account
You may allocate some or all of the net premiums to the Guaranteed Principal Account (“GPA”). You also may transfer some or all of the account value in the
divisions of the Separate Account to the GPA. Neither our general investment account nor the GPA is registered under federal or state securities laws.
Amounts allocated to the GPA become part of our general investment account. Our general investment account consists of all assets owned by us other than those in the
Separate Account and in our other separate accounts. Subject to applicable law, we have sole discretion over the investment of the assets of our general investment account.
We guarantee amounts allocated to the GPA in excess of any policy loan will accrue interest daily at an effective annual rate at least equal to 3%. For amounts in the
GPA equal to any policy loan, the guaranteed minimum interest rate is an effective annual rate of 3% or, if greater, the policy loan rate less the loan interest rate expense charge. This charge will not be greater than 0.80% per year. Interest will
be credited at this rate regardless of the actual investment experience of the GPA. Although we are not obligated to credit interest at a rate higher than the guaranteed minimum, we may declare a higher rate.
Our Board of Directors established the Separate Account on July 13, 1988, as a separate investment account of MassMutual. The Board established the Separate Account
based on the laws of the State of Massachusetts. The Separate Account is registered with the Securities and Exchange Commission as a unit investment trust under the provisions of the Investment Company Act of 1940. We have established a segment
within the Separate Account to receive and invest premium payments for the policies. We have since divided this segment into 28 divisions. Each division invests in shares of a designated investment fund as follows:
American Century VP
Income & Growth |
|
American Century’s
VP Income &
Growth Fund |
|
|
