Form 485BPOS Brighthouse Variable

April 17, 2026 1:44 PM EDT
As filed with the Securities and Exchange Commission on April 17, 2026
File Nos. 333-200255
811-05200
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-4 
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
 
Pre-Effective Amendment No.
☐
Post-Effective Amendment No. 12
☒
and/or
 
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
 
Amendment No. 332
☒
(Check Appropriate Box or Boxes)
Brighthouse Variable Annuity Account C
(Exact Name of Registered Separate Account)
Brighthouse Life Insurance Company
(Name of Insurance Company)
11225 North Community House Road
Charlotte, NC 28277
(Address of Insurance Company's Principal Executive Offices) (Zip Code)
(980) 365-7100
(Insurance Company's Telephone Number, including Area Code)
Brighthouse Life Insurance Company
c/o The Corporation Trust Company
1209 Orange Street
Corporation Trust Center
New Castle County
Wilmington, DE 19801
(800) 448-5350
(Name and Address of Agent for Service)
Copies to:
W. Thomas Conner
Carlton Fields
1625 Eye Street, NW
Suite 800
Washington, DC 20006
Approximate Date of Proposed Public Offering: On April 27, 2026 or as soon thereafter as practicable.
It is proposed that this filing will become effective (check appropriate box):
☐
immediately upon filing pursuant to paragraph (b)
☒
on April 27, 2026 pursuant to paragraph (b)
☐
60 days after filing pursuant to paragraph (a)(1)
☐
on (date) pursuant to paragraph (a)(1) of rule 485 under the Securities Act.
If appropriate, check the following box:
☐
This post-effective amendment designates a new effective date for a previously filed post-effective amendment.
Check each box that appropriately characterizes the Registrant:
☐
New Registrant (as applicable, a Registered Separate Account or Insurance Company that has not a Securities Act registration statement or amendment thereto within 3 years preceding this filing)
☐
Emerging Growth Company (as defined by Rule 12b-2 under the Securities Exchange Act of 1934 (“Exchange Act”))
☐
If an Emerging Growth Company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of Securities Act
☐
Insurance Company relying on Rule 12h-7 under the Exchange Act
☐
Smaller reporting company (as defined by Rule 12b-2 under the Exchange Act

The Fixed And
Variable Annuity
issued by
Brighthouse Life Insurance
Company
and
Brighthouse Variable Annuity
Account C
 
COVA VARIABLE ANNUITY, FIRSTAR SUMMIT VARIABLE ANNUITY, PREMIER ADVISOR VARIABLE ANNUITY, DESTINY SELECT VARIABLE ANNUITY,
PREVAIL VARIABLE ANNUITY
 
April 27, 2026
This prospectus describes Cova Variable Annuity, Firstar Summit Variable Annuity, Premier Advisor Variable Annuity, Destiny Select Variable Annuity, and Prevail Variable Annuity (the “contracts”), flexible premium deferred variable annuity contracts offered by Brighthouse Life Insurance Company (“BLIC”, the “Company”, or “we” or “us”). The contract is offered for individuals and some tax qualified and non-tax qualified retirement plans. Currently the contract is not available for new sales. The types of investment options offered under the contract include a Fixed Account that offers an interest rate guaranteed by us, and the variable options, which are the investment portfolios. Additional information about each investment option under the Contract can be found in Appendix A to this prospectus.
The availability of the investment options, contract benefits, or other contract features described in this prospectus may vary depending on the state in which the contract is issued or the selling firm through which it is sold. Also, you should note that your contract features and charges may vary depending on the date on which you purchased your contract. For more information about the particular features, charges, and options applicable to you, please contact your financial representative or refer to Appendix B to this prospectus or your contract for contract variation information.
The contract is a complex investment and involves risks, including potential loss of principal. The Contract is not a
short-term investment and is not appropriate for an investor who needs ready access to cash. Withdrawals (partial or full) could result in withdrawal charges, taxes, and tax penalties.
The contracts:
•are not bank deposits
•are not FDIC insured
•are not insured by any federal government agency
•are not guaranteed by any bank or credit union
•may be subject to loss of principal
•The Company’s obligations under the contracts are subject to our financial strength and claims-paying ability. 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 these securities or determined if this prospectus is accurate or complete. Any representation to the contrary is a criminal offense.
1
TABLE OF CONTENTSPage
Page
 
3
4
5
9
11
13
13
13
14
14
15
16
16
16
16
16
17
17
19
19
21
22
22
22
23
23
23
23
24
25
25
25
25
25
26
26
28
31
31
34
34
34
34
35
38
2

Because of the complex nature of the contract, we have used certain words or terms in this prospectus which may need an explanation. We have identified the following as some of these words or terms. The page that is indicated here is where you will find the best explanation for the word or term. These words and terms are in italics on the indicated page.
Page
account value or contract value17
accumulation phase13
accumulation unit16
annuitant 14
annuity date13
annuity option14
annuity payments14
annuity unit16
beneficiary 49
BLIC, Company, we, us45
contracts1
fixed account13
income phase13
investment portfolios or variable investment portfolios17
joint owner49
owner 49
purchase payment16
Separate Account46
tax deferral13

3
OVERVIEW OF THE CONTRACT
Purpose. The contract is a variable annuity contract. It provides a means for investing on a tax-deferred basis in our fixed account and the variable investment portfolios (or investment portfolios), together “investment options.” The contract is designed generally for an investor who intends to hold the contract for a long period of time and then use the contract value (in the form of either withdrawals or annuity payments) for retirement savings or other long-term investment purposes. The contract has various features that may be appropriate for you based on your financial situation and objectives, including certain death benefit features which can be used to transfer assets to your beneficiaries. Because of the withdrawal charge (which is in effect for many years) and the possibility of income tax and tax penalties on early withdrawals, the contract should not be viewed as an investment vehicle offering low cost liquidity. Your financial goal in acquiring the contract should focus on a long-term insurance product, offering the prospect of investment growth.
Phases of the Contract. The contract has two phases: The accumulation phase and the income phase. During the accumulation phase, earnings accumulate on a tax-deferred basis and are taxed as income when you make a withdrawal. To help you accumulate assets during the accumulation phase, you can invest your purchase payments and contract value in: (1) investment portfolios available under the contract, each of which has an underlying mutual fund with its own investment strategies and risks; investment adviser(s); expense ratio; and performance history; and (2) the fixed account option, which offers a guaranteed interest rate. Additional information about each investment option in which you can invest is provided in Appendix A.
The income phase occurs when you or a designated payee begin receiving regular annuity payments from your contract. All death benefits terminate without value at the start of the income phase. In addition, once the income phase begins you generally may no longer take withdrawals from the contract. Depending on the annuity option you elect, any remaining guarantee may be paid to your beneficiary (or beneficiaries).
Contract Features. The following is a brief description of the contract’s primary features.
Contract Versions. This prospectus describes the following versions of the contract: Cova Variable Annuity, Firstar Summit Variable Annuity, Premier Advisor Variable
Annuity, Destiny Select Variable Annuity, and Prevail Variable Annuity. Certain investment portfolios may not be available to you depending on which version of the contract you purchased.
Accessing your Money. Before you annuitize, you can withdraw money from your contract at any time. If you take a withdrawal, you may have to pay a withdrawal charge and/or income taxes, including a tax penalty if you are younger than age 59 1∕2. Withdrawals could significantly reduce the value of your contract, the death benefit, and other contract benefits. The reduction may be more than the amount withdrawn.
Tax Treatment. You can transfer money among the investment options without tax implications, and earnings (if any) on your investments are generally tax-deferred. You are only subject to tax upon: (1) making a withdrawal; (2) receiving a payment from us; or (3) payment of a death benefit.
Death Benefit. The contract includes, at no additional cost, a standard death benefit that will pay a death benefit to your beneficiary (ies) if you die during the accumulation phase. The standard death benefit options differ depending on the date on which, and the state in which, you purchased your contract.
Additional Services.
•Dollar Cost Averaging Program. This program allows you to systematically transfer a set amount each month between certain Investment Portfolios and the Fixed Account.
•Automatic Rebalancing Program. This program directs us to automatically rebalance your contract to return to your original percentage investment allocations on a periodic basis.
•Systematic Withdrawal Program. This program allows you to receive regular automatic monthly withdrawals from your contract up to 10% of your total purchase payments each year. No withdrawal charge will be imposed on these payments.
•Electronic Delivery. As an owner, you may elect to receive electronic delivery of current prospectuses related to this contract, as well as other contract related documents.
4
IMPORTANT INFORMATION YOU SHOULD CONSIDER ABOUT THE CONTRACT 
 
Fees, Expenses, and Adjustments
Location in
Prospectus
Are There
Charges or
Adjustments for
Early
Withdrawals?
Yes. If you withdraw money during the first 5 full years following a purchase
payment, you may be assessed a withdrawal charge of 5% of the purchase
payment withdrawn.
For example, if you make an early withdrawal, you could pay a withdrawal
charge of up to $5,000 on a $100,000 investment. This loss will be greater if
there are taxes or tax penalties.
Fee Table and
Examples
 
Expenses –
Withdrawal
Charge
Are There
Transaction
Charges?
Yes. In addition to withdrawal charges, you also may be charged for the
following transactions: transfers of cash value between investment options, which
include the variable investment portfolios and the fixed account.
Transfer Fee. Currently, we allow unlimited transfers among the investment
options without charge. However, we reserve the right to charge for transfers
after the first 12 transfers per year.
Fee Table and
Examples
 
Expenses –
Transfer Fee
5
 
Fees, Expenses, and Adjustments
Location in
Prospectus
Are There Ongoing
Fees and
Expenses?
Yes. 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.
Fee Table and
Examples
 
Expenses
 
Appendix A:
Investment
Options
Available
Under the
Contract
Annual Fee
Minimum
Maximum
Base contract1
COVA – 1.43%
FIRSTAR
SUMMIT – 1.43%
PREMIER
ADVISOR – 1.43%
DESTINY SELECT –
1.43%
PREVAIL – 1.43%
COVA – 1.43%
FIRSTAR
SUMMIT – 1.43%
PREMIER
ADVISOR –
1.43%
DESTINY
SELECT – 1.43%
PREVAIL – 1.43%
Investment portfolio fees and
expenses2
COVA – 0.40%
FIRSTAR
SUMMIT – 0.40%
PREMIER
ADVISOR – 0.40%
DESTINY SELECT –
0.46%
PREVAIL – 0.40%
COVA – 1.10%
FIRSTAR
SUMMIT – 0.90%
PREMIER
ADSVIOR –
0.90%
DESTINY
SELECT – 0.90%
PREVAIL – 0.90%
1 As a percentage of average account value in the Separate Account. The charge shown also
includes the contract maintenance charge.
2 As a percentage of fund assets before temporary expense reimbursements and/or fee waivers.
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.
COVA
Lowest Annual Cost
$1,670
Highest Annual Cost
$2,138
FIRSTAR SUMMIT
Lowest Annual Cost
$1,670
Highest Annual Cost
$2,089
PREMIER ADVISOR
Lowest Annual Cost
$1,670
Highest Annual Cost
$2,089
DESTINY SELECT
Lowest Annual Cost
$1,721
Highest Annual Cost
$2,089
PREVAIL
Lowest Annual Cost
$1,670
Highest Annual Cost
$2,089
Assumes:
Assumes:
●Investment of $100,000
●5% annual appreciation
●Least expensive investment portfolio fees
and expenses
●No additional purchase payments,
transfers, or withdrawals
●No sales charges
●Investment of $100,000
●5% annual appreciation
●Most expensive investment
portfolio fees and expenses
●No additional purchase
payments, transfers, or
withdrawals
●No sales charges
 
6
 
Risks
 
Is There a Risk of
Loss from Poor
Performance?
Yes. You can lose money by investing in this contract, including loss of
principal.
Principal Risks
of Investing in
the Contract
Is This a Short-
Term Investment?
No. This contract is not a short-term investment and is not appropriate for
an investor who needs ready access to cash.
Amounts withdrawn from the contract may result in withdrawal charges,
taxes, and tax penalties. Withdrawal charges may apply for the first 5 years
following a purchase payment. Withdrawal charges will reduce the value of
your contract if you withdraw money during that time. Withdrawals could
significantly reduce the value of your contract, the death benefit, and other
contract benefits. The reduction may be more than the amount withdrawn.
The benefits of tax deferral mean the contract is more beneficial to investors
with a long time horizon.
Principal Risks
of Investing in
the Contract
What Are the
Risks Associated
with the
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., variable investment portfolios).
●Each investment option, including the fixed account, has its own unique
risks.
●You should review the prospectuses for the available funds and the
prospectus disclosure concerning the fixed account before making an
investment decision.
Principal Risks
of Investing in
the Contract
What Are the
Risks Related to
the Insurance
Company?
An investment in the contract is subject to the risks related to us. Any
obligations (including under the fixed account), or guarantees and benefits of
the contract that exceed the assets of the Separate Account are subject to our
claims-paying ability. If we experience financial distress, we may not be able
to meet our obligations to you. More information about BLIC, including our
financial strength ratings, is available by contacting us at (888) 243-1968.
Principal Risks
of Investing in
the Contract
 
Restrictions
 
Are There
Restrictions on the
Investment
Options?
●Yes.
●Certain investment portfolios may not be available depending on the
version of the contract that you purchased.
●Currently, we allow unlimited transfers without charge among investment
options during the accumulation phase. However, we reserve the right to
limit transfers or impose a charge for transfers in excess of 12 per year.
●We reserve the right to limit transfers in circumstances of frequent or large
transfers.
●We reserve the right to restrict payments to and transfers to and from the
fixed account.
●We reserve the right to remove or substitute the investment portfolios
available as investment options under the contract.
Purchase
 
Investment
Options
 
Appendix A:
Investment
Options
Available
Under the
Contract
Are There Any
Restrictions on
Contract Benefits?
●Yes.
●Withdrawals will reduce the value of the death benefit, perhaps
significantly.
●Except as otherwise provided, Contract benefits may not be modified or
terminated by us.
Death Benefit
 
Taxes
 
What Are the
Contract’s Tax
Implications?
●Consult with a tax professional to determine the tax implications of an
investment in and payments received under this contract.
●If you purchase the contract through a tax-qualified plan or individual
retirement account, you do not get any additional tax benefit.
●You will generally not be taxed on increases in the value of the contract
until they are withdrawn. Withdrawals will be subject to ordinary income
tax, and may be subject to tax penalties if you take a withdrawal before
age 59 1∕2.
Federal
Income Tax
Status
7
 
Conflicts of Interest
Location in
Prospectus
How Are
Investment
Professionals
Compensated?
Your investment professional may receive compensation for selling this
contract to you, in the form of commissions, additional cash benefits (e.g.,
bonuses), and non-cash compensation. This conflict of interest may influence
your investment professional to recommend this contract over another
investment for which the investment professional is not compensated or
compensated less.
Other
Information –
Compensation
Paid to Selling
Firms
Should I
Exchange My
Contract?
If you already own an insurance contract, some investment professionals may
have a financial incentive to offer you a new contract in place of the one you
own. You should only exchange a contract you already own if you
determine, after comparing the features, fees, and risks of both contracts, and
any fees or penalties to terminate the existing contract, that it is better for
you to purchase the new contract rather than continue to own your existing
contract.
Replacement
of Contracts
and Other
Exchanges
8
FEE TABLE AND EXAMPLES
The following tables describe the fees and expenses that you will pay when buying, owning, and surrendering, or making withdrawals from an investment option or from the contract. Please refer to your contract specifications page for information about the specific fees you will pay each year.
The first table describes the fees and expenses that you will pay at the time that you buy the contract, surrender or make withdrawals from an investment option or from the contract, or transfer contract value between investment options. State premium taxes of 0% to 3.5% may also be deducted.
 
Transaction Expenses 
Withdrawal Charge (Note 1)
(as a percentage of purchase payments withdrawn)
5%
 
 
Transfer Fee (Note 2)
$25 or 2% of transfer, whichever is less, per transfer
$0 (First 12 per year)
Note 1. If an amount withdrawn is determined to include the withdrawal of prior purchase payments, a withdrawal charge may be assessed. After we have the purchase payment for 5 years there is no charge for withdrawal of that purchase payment. See “Expenses – Withdrawal Charge.”
Note 2. There is no charge for the first 12 transfers in a contract year; thereafter the fee is the lesser of $25 or 2% of the transfer. We currently are waiving the transfer fee, but reserve the right to charge the fee in the future.
The next table describes the fees and expenses that you will pay each year during the time that you own the contract, not including investment portfolio fees and expenses.
 
Annual Contract Expenses
 
 
Administrative Expenses (Note 1)
$30
 
Base Contract Expenses (Note 2)
1.40%
 
(as a percentage of account value in the Separate Account)
 
 
Note 1. We call these expenses the “contract maintenance charge” in your contract, as well as in other places in this prospectus. It is charged every year on the anniversary of the date when your contract was issued if the value of your contract is less than $50,000. It may be charged at the time you make a complete withdrawal. Different policies apply during the income phase of the contract. For instance, if the value of your contract on the annuity date is less than $50,000, then we will not deduct the charge. After the annuity date, the charge will be collected monthly out of the annuity payment, regardless of the size of your contract. See “Expenses” section of the prospectus, under the sub-heading “Contract Maintenance Charge.” In the section entitled “Important Information You Should Consider About Your Contract” earlier in this prospectus, we are required to present this charge as part of the base contract.
Note 2. We call these expenses “Insurance Charges” in your contract, as well as in other places in this prospectus. These charges are comprised of the mortality and expense risk premium equal to 1.25% and the administrative expense charge equal to 0.15%. These charges are deducted solely from contract value in the Separate Account. See “Expenses” section of the prospectus, under the sub-heading “Insurance Charges” for more information.
The next table shows the minimum and maximum total operating expenses charged by the investment portfolios that you may pay periodically during the time that you own the contract. Expenses shown may change over time and may be higher or lower in the future. A complete list of investment portfolios available under the contract, including their annual expenses, may be found in Appendix A.
Annual Investment Portfolio Expenses 
 
Minimum
Maximum
Total Annual Investment Portfolio Expenses
 
 
(expenses that are deducted from Investment Portfolio assets, including
management fees, distribution and/or service (12b-1) fees, and other
expenses)
0.40%
1.10%
9
Examples
These Examples are intended to help you compare the cost of investing in the investment portfolios of the contract with the cost of investing in other annuity contracts that offer variable options. These costs include Transaction Expenses, Annual Contract Expenses, and Annual Investment Portfolio Expenses. Your costs could differ from those shown below if you invest in the fixed account.
The Examples assume that you invest $100,000 in the contract for the time periods indicated and that the contract is owned during the accumulation phase. The Examples also assume that your investment has a 5% return each year and assumes the most expensive Annual Investment Portfolio Expenses (“maximum”) or the least expensive Annual Investment Portfolio Expenses (“minimum”).
Although your actual costs may be higher or lower, based on these assumptions, your costs would be the following:  
(1) If you surrender your contract at the end of the applicable time period: 
Time Periods
 
1 year
3 years
5 years
10 years
maximum
$7,530
$12,219
$17,669
$28,034
minimum
$6,830
$10,104
$14,124
$20,853
 
(2) If you do not surrender your contract or if you annuitize at the end of the applicable time period: 
Time Periods
 
1 year
3 years
5 years
10 years
maximum
$2,530
$7,719
$13,169
$28,034
minimum
$1,830
$5,604
$9,624
$20,853
The Examples should not be considered a representation of past or future expenses or annual rates of return of any investment portfolio. Actual expenses and annual rates of return may be more or less than those assumed for the purpose of the Examples.
10
PRINCIPAL RISKS OF INVESTING IN THE CONTRACT
Unsuitable as Short-Term Savings Vehicle. The contract is intended for retirement savings or other long-term investment purposes. The benefits of tax deferral mean the contract is more beneficial to investors with a long time horizon. It is not suitable as a short-term savings vehicle. This means if you plan to withdraw money or surrender the contract for short-term needs, it may not be the right contract for you. A charge may be assessed on withdrawals and surrenders, and it could be substantial. In addition, withdrawals and surrenders will be subject to ordinary income tax, and may be subject to tax penalties if you take a withdrawal or surrender before age 59 1∕2. Please discuss your insurance needs and financial objectives with your financial representative.
Investment Risk. You bear the risk of any decline in the contract value of your contract resulting from the performance of the investment portfolios you have chosen. The contract value could decline very significantly, and there is a risk of loss of the entire amount invested. This risk varies with each investment portfolio. This risk could have a significant negative impact on certain benefits and guarantees under the contract. The investment risks are described in the prospectuses for the investment portfolio.
Contract Benefits Risk. Withdrawals could significantly reduce the value of your contract, the death benefit, and contract benefits. The reduction may be more than the amount withdrawn. Specifically, withdrawals may reduce the value of the optional death benefit by an amount greater than the value withdrawn, which could significantly reduce the value or even terminate the benefit. You should consider the impact that a withdrawal may have on standard and optional contract benefits.
Availability of Investment Options. We reserve the right to add, remove, or substitute the investment portfolios available as investment options under the contract. In the future, we may change the investment options that are available to you under certain optional riders. We also reserve the right to limit transfers or impose a charge for transfers in excess of 12 per year, and we may restrict payments to or transfers to and from the fixed account as an investment option.
Insurance Company Risk. An investment in the contract is subject to the risks related to us. Any obligations (including under the fixed account), and
guarantees and benefits of the contract that exceed the assets of the Separate Account are subject to our claims-paying ability. It is possible that we could experience financial difficulty in the future and even become insolvent, and therefore unable to provide all of the guarantees and benefits that exceed the assets in the Separate Account that we promise. Likewise, our experiencing financial difficulty could impair our ability to fulfill our obligations under the fixed account offered under this contract.
Tax Consequences. Withdrawals are generally taxable (to the extent of any earnings in the contract), and prior to age 59 1∕2 a tax penalty may apply. In addition, even if the contract is held for years before any withdrawal is made, the withdrawals are taxable as ordinary income rather than capital gains.
Cybersecurity and Certain Business Continuity Risks. Our variable product contract business is largely conducted through complex information technology and communications systems operated by us and our service providers and business partners (e.g., the Investment Portfolios and the firms involved in the distribution and sale of our variable contracts). Our operations rely on the secure processing, storage and transmission of data and confidential and other information in our systems and the systems of third party service providers. We have established administrative and technical controls and business continuity and resilience plans to protect our operations against attempts by unauthorized third parties to improperly access, modify, disrupt the operation of, or prevent access to critical networks or systems or data within them (a “cyber-attack”). Despite these protocols, the techniques used to attack systems and networks change frequently, are becoming more sophisticated, and can originate from a wide variety of sources including internal actors (through malicious or accidental acts), terrorists, nation states, financially or politically motivated actors, or other third parties, such as external service providers. Furthermore, the rapid evolution and increased adoption of artificial intelligence technologies (“AI”) may intensify our cybersecurity risks, including the deployment of artificial intelligence technologies by malicious third parties and threat actors that may increase in sophistication and effectiveness in the future. There may be an increased risk of cyber-attacks that may adversely disrupt or degrade our operations and compromise our data during periods of geo-political or military conflict. There is also a chance that certain risks have not been identified or prepared for, or that an attack may not be detected which limits our ability,
11
as well as that of our service providers and business partners, to plan for or respond to, an attack.
A failure of our computer systems could cause significant interruptions in our operations, compromise the security, confidentiality or privacy of sensitive data, and otherwise adversely affect our business and ability to administer the Contracts. Unanticipated problems with, or failures of, our disaster recovery systems and business continuity plans could also have a material, negative impact on our ability to conduct business and on our financial condition and operations, as well on individual Owners and their Contracts. Our operations also could be negatively impacted by a cyber-attack or system failure affecting a third party, such as a service provider, business partner, another participant in the financial markets, or a governmental or regulatory authority. Disruptions or failures to our operations, systems, and networks can originate from a wide variety of sources including, but not limited to, a disaster such as a natural catastrophe, epidemic or pandemic crisis, military or terrorist actions, cyber-attack, and unanticipated problems with our or our service providers’ disaster recovery systems (and the disaster recovery systems of such vendors’ suppliers, vendors, or subcontractors). Such disasters and events may adversely affect our ability to conduct business or administer the contract.
Cyber-attacks and disruptions or failures to our systems and business operations could result in regulatory fines or sanctions, litigation, penalties or financial losses, reputational harm, loss of customers, and/or otherwise adversely affect our business. Such events could also interfere with our processing of contract transactions, including the processing of transfer orders from our website or with the Investment Portfolios; impact our ability to calculate Accumulation Unit values; cause the release and/or possible loss, misappropriation or corruption of data or confidential Owner or business information; or impede order processing or cause other operational issues. Cyber-attacks, disruptions or failures may also impact the issuers of securities in which the Investment Portfolios invest, and it is possible the funds underlying your contract could lose value.
We cannot control the cybersecurity plans and systems implemented by third parties, including service providers or issuers of securities in which the Investment Portfolios invest. Although we continually make efforts to identify and reduce our exposure to cybersecurity risks and operations failures, there can be no assurance that we or
our third party service providers or the Investment Portfolios will be able to detect, manage, prevent, or avoid cyber-attacks, disruptions, or failures affecting your contract in the future.[xbrl-end:Principal Risk
12
THE ANNUITY CONTRACT
This prospectus describes the Fixed and Variable Annuity Contract issued by BLIC. Currently, BLIC is not offering this contract for new sales. However, you may continue to make additional purchase payments to your contract.
The contract is intended for retirement savings or other long-term investment purposes. The contract has features and benefits that may be appropriate for you based on your financial situation and objectives, but we are not a fiduciary and do not give advice or make recommendations regarding insurance or investment products, or any securities transactions or investment strategies involving securities (including account recommendations). You should ask your financial representative for guidance regarding whether the contract may be appropriate for you. Please bear in mind that your financial representative, or any financial firm or financial professional you consult to provide advice, is acting on your behalf. We are not a party to any agreement between you and your financial professional.
An annuity is a contract between you, the owner, and an insurance company (in this case BLIC), where the insurance company promises to pay an income to you, in the form of annuity payments. Annuity payments must begin on a designated date that is at least 30 days in the future. Until you decide to begin receiving annuity payments, your annuity is in the accumulation phase. If you die during the accumulation phase, your beneficiary (or beneficiaries) will receive the death benefit under your contract (see “Death Benefit” for more information). Once you begin receiving annuity payments, your contract switches to the income phase. There is no death benefit during the income phase; however, depending on the annuity option you elect, any remaining guarantee may be paid to your beneficiary (or beneficiaries) (see “Annuity Payments (The Income Phase)” for more information).
The contract benefits from tax deferral. Tax deferral means that you are not taxed on earnings or appreciation on the assets in your contract until you take money out of your contract.
The contract is called a variable annuity because you can choose among the investment portfolios and, depending upon market conditions, you can make or lose money in any of these portfolios. If you select the variable annuity portion of the contract, the amount of money you are able to accumulate in your contract during the accumulation phase depends upon the investment performance of the
investment portfolio(s) you select. The amount of the annuity payments you receive during the income phase from the variable annuity portion of the contract also depends, in part, on the investment performance of the investment portfolios you select for the income phase. We do not guarantee the investment performance of the variable annuity portion. You bear the full investment risk for all amounts allocated to the variable annuity portion.
The contract also contains a fixed account. Information regarding the features of the fixed account, including (i) its name, and (ii) its guaranteed minimum interest rate, is available in Appendix A. The fixed account offers an annual interest rate that is guaranteed by BLIC. Compound interest is credited daily to the account value in the fixed account. BLIC guarantees that the interest rate credited to the fixed account will not be less than 3%. Because of exemptive and exclusionary provisions, interests in the fixed account have not been registered under the Securities Act of 1933, and neither the fixed account nor the general account has been registered as an investment company under the Investment Company Act of 1940. If you select the fixed account, your money will be placed with the other general assets of BLIC, and the amount of money you are able to accumulate in your contract during the accumulation phase depends upon the total interest credited to your contract. The amount of the annuity payments you receive during the income phase from the fixed account portion of the contract will remain level for the entire income phase. All guarantees as to purchase payments or account value allocated to the fixed account, interest credited to the fixed account, and fixed annuity payments are subject to our financial strength and claims-paying ability.
As owner of the contract, you exercise all interest and rights under the contract. You can change the owner at any time by notifying BLIC in writing. You and your spouse can be named joint owners. We have described more information on this under “Other Information – Ownership.”
ANNUITY PAYMENTS (THE INCOME PHASE)
Annuity Date
Under the contract you can receive regular income payments (referred to as annuity payments). You can choose the month and year in which those payments begin. We call that date the annuity date. Your annuity date will be the first day of the calendar month unless, subject to our
13
current established administrative procedures, we allow you to select another day of the month as your annuity date.
We ask you to choose your annuity date when you purchase the contract. You can change it at any time before the annuity date with 30 days’ notice to us. Your annuity date cannot be any earlier than one month after you buy the contract.
Please be aware that once your contract is annuitized, your beneficiary (or beneficiaries) is ineligible to receive the death benefit you have selected.
Annuity Payments
You will receive annuity payments during the income phase. In general, annuity payments must begin by the annuitant’s 85th birthday or 10 years from the date the contract was issued, whichever is later (this requirement may differ slightly for special programs). We may allow you to extend your annuity date, subject to restrictions imposed by your selling firm and our current established administrative procedures. The annuitant is the person whose life we look to when we make annuity payments.
During the income phase, you have the same investment choices you had just before the start of the income phase.At the annuity date, you can choose whether payments will come from the:
•fixed account,
•the investment portfolio(s) or
•a combination of both.
If you don’t tell us otherwise, your annuity payments will be based on the investment allocations that were in place on the annuity date.
If you choose to have any portion of your annuity payments come from the investment portfolio(s), the dollar amount of your payment will depend upon 3 things:
1) the value of your contract in the investment portfolio(s) on the annuity date,
2) the 3% assumed investment return used in the annuity table for the contract, and
3) the performance of the investment portfolios you selected.
If the actual performance exceeds the 3% assumed investment return, your annuity payments will increase.
Similarly, if the actual investment rate is less than 3%, your annuity payments will decrease.
Annuity payments are made monthly unless you have less than $5,000 to apply toward a payment, except in New Jersey ($2,000 if the contract is issued in Massachusetts or Texas). In that case, BLIC may pay your annuity payment in a single lump sum. Likewise, if your annuity payments would be less than $100 a month ($20 in Texas), BLIC has the right to change the frequency of payments so that your annuity payments are at least $100 ($20 in Texas).
Annuity Options
You can choose among income plans. We call those annuity options. We ask you to choose an annuity option when you purchase the contract. You can change it at any time before the annuity date with 30 days’ notice to us. If you do not choose an annuity option at the time you purchase the contract, we will assume that you selected Option 2 which provides a life annuity with 10 years of guaranteed payments.
You can choose one of the following annuity options or any other annuity option acceptable to BLIC, subject to the requirements of the Internal Revenue Code. After annuity payments begin, you cannot change the annuity option.
Option 1. Life Annuity. Under this option, we will make an annuity payment each month so long as the annuitant is alive. After the annuitant dies, we stop making annuity payments. It is possible under this option to receive only one annuity payment if the annuitant dies before the due date of the second payment or only two annuity payments if death occurs before the due date of the third payment, and so on.
Option 2. Life Annuity with 5, 10 or 20 Years Guaranteed. Under this option, we will make an annuity payment each month so long as the annuitant is alive. However, if, when the annuitant dies, we have made annuity payments for less than the selected guaranteed period, we will then continue to make annuity payments for the rest of the guaranteed period to the beneficiary. If the beneficiary does not want to receive annuity payments, he or she can ask us for a single lump sum. Due to underwriting or Internal Revenue Code considerations, there may be limitations on the payments or duration of the guarantee period under Option 2.
Option 3. Joint and Last Survivor Annuity. Under this option, we will make annuity payments each month so
14
long as the annuitant and a second person are both alive. When either of these people dies, we will continue to make annuity payments, so long as the survivor continues to live. The amount of the annuity payments we will make to the survivor can be equal to 100%, 66⅔% or 50% of the amount that we would have paid if both were alive. If both annuitants die after the first payment and before the second payment, then we will make only one payment. Due to underwriting, administrative or Internal Revenue Code considerations, there may be limitations on payments to the survivor under Option 3 and/or the duration of the guarantee period under Option 2.
We may require proof of age or sex of an annuitant before making any annuity payments under the contract that are measured by the annuitant’s life. If the age or sex of the annuitant has been misstated, the amount payable will be the amount that the account value would have provided at the correct age or sex. Once annuity payments have begun, any underpayments will be made up in one sum with the next annuity payment. Any overpayments will be deducted from future annuity payments until the total is repaid.
Where required by state law, the annuitant’s sex will not be taken into consideration. If you were issued a contract before state law mandated unisex annuity rates (if applicable in your state) and that contract had annuity rates that took the annuitant’s sex into account, the annuity rates we use for that contract will not be less than the guaranteed rates in the contract when it was issued.
You may not commute any option involving a life contingency, whether fixed or variable, prior to the death of the last surviving annuitant. Under Option 2 described above, upon the death of the last surviving annuitant, the beneficiary may choose to continue receiving income payments or to receive a single lump sum equal to the commuted value of the remaining guaranteed payments. The commuted value will be equal to the present value of remaining payments as of the date of receipt of due proof of death in good order. For variable annuity options, the calculation of the commuted value will be done using the assumed investment return applicable to the Contract (See “Variable Annuity Payments”). For fixed annuity options, the calculation of the commuted value will be done using the then current annuity option rates.
In addition to the annuity options described above, we may offer an additional payment option that would allow your beneficiary to take distribution of the contract value over a period not extending beyond his or her life expectancy.
Under this option, annual distributions would not be made in the form of an annuity, but would be calculated in a manner similar to the calculation of required minimum distributions from IRAs. (See “Federal Income Tax Status.”) We intend to make this payment option available to both tax qualified and non-tax qualified contracts.
In the event that you purchased the contract as the beneficiary of a deceased person’s IRA, you must take distribution of the contract value in accordance with the minimum required distribution rules set forth in applicable tax law. (See “Federal Income Tax Status.”) You may choose any death benefit available under the contract, but certain other contract provisions and programs will not be available. Upon your death, the death benefit would be required to be distributed to your beneficiary at least as rapidly as under the method of distribution in effect at the time of your death.
Variable Annuity Payments
The Adjusted Contract Value (the account value, less any applicable premium taxes, account fee, and any prorated rider charge) is determined at the annuity date. The first variable annuity payment will be based upon the Adjusted Contract Value, the annuity option elected, the annuitant’s age and sex, and the appropriate variable annuity option table. In some states, the payment does not vary based on the sex of the annuitant. If, as of the annuity calculation date, the then current variable annuity option rates applicable to this class of contracts provide a first annuity payment greater than that which is guaranteed under the same annuity option under this contract, the greater payment will be made.
The dollar amount of variable annuity payments after the first payment is determined as follows:
•The dollar amount of the first variable annuity payment is divided by the value of an annuity unit for each applicable investment portfolio as of the annuity date. This establishes the number of annuity units for each payment. The number of annuity units for each applicable investment portfolio remains fixed during the annuity period, provided that transfers among the subaccounts will be made by converting the number of annuity units being transferred to the number of annuity units of the subaccount to which the transfer is made, and the number of annuity units will be adjusted for transfers to a fixed annuity option. Please see “Transfers During the Income Phase” for details.
15
•The fixed number of annuity units per payment in each investment portfolio is multiplied by the annuity unit value for that investment portfolio for the last Valuation Period of the month preceding the month for which the payment is due. This result is the dollar amount of the payment for each applicable investment portfolio, less any account fee. The account fee will be deducted pro rata out of each annuity payment.
•The total dollar amount of each variable annuity payment is the sum of all investment portfolio variable annuity payments.
Annuity Unit. The initial annuity unit value for each investment portfolio of the Separate Account was set by us. The subsequent annuity unit value for each investment portfolio is determined by multiplying the annuity unit value for the immediately preceding business day by the net investment factor (see the Statement of Additional Information for a definition) for the investment portfolio for the current business day and multiplying the result by a factor for each day since the last business day which represents the daily equivalent of the AIR.
Fixed Annuity Payments
The Adjusted Contract Value (defined above under “Variable Annuity Payments”) is determined on the annuity calculation date, which is a business day no more than five (5) business days before the annuity date. This value will be used to determine a fixed annuity payment. The annuity payment will be based upon the annuity option elected and the appropriate annuity option table. In some states, the payment does not vary based on the sex of the annuitant. If, as of the annuity calculation date, the then current annuity option rates applicable to this class of contracts provide an annuity payment greater than that which is guaranteed under the same annuity option under this contract, the greater payment will be made. You may not make a transfer from the fixed annuity option to the variable annuity option.
PURCHASE
Purchase Payments
A purchase payment is the money you give us to invest in the contract. The maximum total purchase payments for the contract is $1,000,000, without prior approval from us. You can make additional purchase payments of $500 or more during the accumulation phase. BLIC reserves the right to reject any purchase payment (except in New Jersey).
We reserve the right to refuse purchase payments made via a personal check in excess of $100,000. Purchase payments over $100,000 may be accepted in other forms, including but not limited to, EFT/wire transfers, certified checks, corporate checks, and checks written on financial institutions. The form in which we receive a purchase payment may determine how soon subsequent disbursement requests may be fulfilled. (See “Access To Your Money.”)
If you send your purchase payments or transaction requests to an address other than the one we have designated for receipt of such purchase payments or requests, we may return the purchase payment to you, or there may be a delay in applying the purchase payment or transaction to your contract. We will not accept purchase payments made with cash, money orders, or travelers checks.
Allocation Of Purchase Payments
If you make additional purchase payments, we will allocate them in the same way as your first purchase payment unless you tell us otherwise. There is a $500 minimum allocation requirement for the fixed account and for each investment portfolio.
If you make additional purchase payments, we will credit these amounts to your contract within one business day. Our business day closes when the New York Stock Exchange closes, usually 4:00 P.M. Eastern Time.
See Appendix A to this prospectus for more information about available investment portfolios. We reserve the right to make certain changes to the investment portfolios. (See “Investment Options — Substitution.”)
Accumulation Units
The value of the variable annuity portion of your contract will go up or down depending upon the investment performance of the investment portfolio(s) you choose. In order to keep track of the value of your contract, we use a unit of measure we call an accumulation unit. (An accumulation unit works like a share of a mutual fund.) In addition to the investment performance of the investment portfolio, the deduction of Separate Account charges also affects an investment portfolio’s accumulation unit value, as explained below. During the income phase of the contract we call the unit an annuity unit.
Every business day we determine the value of an accumulation unit for each of the investment portfolios by multiplying the accumulation unit value for the
16
immediately preceding business day by a factor for the current business day. The factor is determined by:
1) dividing the net asset value of an investment portfolio at the end of the current business day, plus any dividend or capital gains per share declared on behalf of the investment portfolio as of that day, by the net asset value of an investment portfolio for the previous business day, and
2) multiplying it by one minus the daily amount of the insurance charges and any charges for each day since the last business day for taxes.
The value of an accumulation unit may go up or down from day to day.
When you make a purchase payment, we credit your contract with accumulation units. The number of accumulation units credited is determined by dividing the amount of the purchase payment allocated to an investment portfolio by the value of the accumulation unit for that investment portfolio.
We calculate the value of an accumulation unit for each investment portfolio after the New York Stock Exchange closes each day (generally 4:00 P.M. Eastern Time) and then credit your contract.
Example:
On Monday we receive an additional purchase payment of $5,000 from you before 4:00 P.M. Eastern Time. You have told us you want this to go to the T. Rowe Price Large Cap Value Portfolio. When the New York Stock Exchange closes on that Monday, we determine that the value of an accumulation unit for the T. Rowe Price Large Cap Value Portfolio is $13.90. We then divide $5,000 by $13.90 and credit your contract on Monday night with 359.71 accumulation units for the T. Rowe Price Large Cap Value Portfolio.
Account Value / Contract Value
Account value or contract value is equal to the sum of your interests in the investment portfolios and the fixed account. Your interest in each investment portfolio is determined by multiplying the number of accumulation units for that portfolio by the value of the accumulation unit.
INVESTMENT OPTIONS
The contract currently offers a number of investment portfolios, all of which may not be available under your contract. (See Appendix B for a list of the investment
portfolios available under your contract.) Additional or fewer investment portfolios may be available in the future. Account value allocated to the investment portfolios will vary based on the investment experience of the corresponding mutual fund in which the investment portfolio invests. There is a risk of loss of the entire amount invested.
Information regarding each investment portfolio, including its name, its type (e.g. money market fund, bond fund, balanced fund, etc.) or a brief statement concerning its investment objective, its investment adviser and any subadviser, current expenses and performance is available in Appendix A to this prospectus. Each investment portfolio has issued a prospectus that contains more detailed information about the investment portfolio.
You should read the prospectuses for these funds carefully before investing. The prospectuses and other information can be found online at https://dfinview.com/BHF/PUFT/BHF236 for Cova Variable Annuity, https://dfinview.com/BHF/PUFT/BHF148 for Firstar Summit Variable Annuity, https://dfinview.com/BHF/PUFT/BHF149 for Premier Advisor Variable Annuity, https://dfinview.com/BHF/PUFT/BHF147 for Destiny Select Variable Annuity and https://dfinview.com/BHF/PUFT/BHF150 for Prevail Variable Annuity. You can also request copies of this information at no cost by calling (800) 343-8496 or sending an email request to [email protected].
The investment objectives and policies of certain of the investment portfolios may be similar to the investment objectives and policies of other mutual funds that certain of the investment portfolios' investment advisers manage. Although the objectives and policies may be similar, the investment results of the investment portfolios may be higher or lower than the results of such other mutual funds. The investment advisers cannot guarantee, and make no representation, that the investment results of similar funds will be comparable even though the funds may have the same investment advisers. Also, in selecting your investment portfolios, you should be aware that certain investment portfolios may have similar investment objectives but differ with respect to fees and charges.
17
Shares of the investment portfolios may be offered to insurance company separate accounts of both variable annuity and variable life insurance contracts and to qualified plans. Due to differences in tax treatment and other considerations, the interests of various owners participating in, and the interests of qualified plans investing in the investment portfolios may conflict. The investment portfolios will monitor events in order to identify the existence of any material irreconcilable conflicts and determine what action, if any, should be taken in response to any such conflict.
Certain Payments We Receive with Regard to the Investment Portfolios. An investment adviser (other than our affiliate Brighthouse Investment Advisers, LLC) or subadviser of an Investment Portfolio, or its affiliates, may make payments to us and/or certain of our affiliates. These payments may be used for a variety of purposes, including payment of expenses for certain administrative, marketing, and support services with respect to the contracts and, in our role as an intermediary, with respect to the Investment Portfolios. We and our affiliates may profit from these payments. These payments may be derived, in whole or in part, from the advisory fee deducted from Investment Portfolio assets. Contract Owners, through their indirect investment in the Investment Portfolios, bear the costs of these advisory fees (see the prospectuses for the Investment Portfolios for more information). The amount of the payments we receive is based on a percentage of assets of the Investment Portfolios attributable to the contracts and certain other variable insurance products that we and our affiliates issue. These percentages differ and some advisers or subadvisers (or their affiliates) may pay us more than others. These percentages currently range up to 0.50%.
Additionally, an investment adviser (other than our affiliate Brighthouse Investment Advisers, LLC) or subadviser of an Investment Portfolio or its affiliates may provide us with wholesaling services that assist in the distribution of the contracts and may pay us and/or certain of our affiliates amounts to participate in sales meetings. These amounts may be significant and may provide the adviser or subadviser (or its affiliate) with increased access to persons involved in the distribution of the contracts.
We and/or certain of our affiliated insurance companies have joint ownership interests in our affiliated investment adviser, Brighthouse Investment Advisers, LLC, which is formed as a “limited liability company.” Our ownership interests in Brighthouse Investment Advisers, LLC entitle us to profit distributions if the adviser makes a profit with
respect to the advisory fees it receives from the Investment Portfolios. We will benefit accordingly from assets allocated to the Investment Portfolios to the extent they result in profits to the adviser.
Certain Investment Portfolios have adopted a Distribution Plan under Rule 12b-1 of the Investment Company Act of 1940. An Investment Portfolio's 12b-1 Plan, if any, is described in more detail in the Investment Portfolio's prospectus. Any payments we receive pursuant to those 12b-1 Plans are paid to us or our distributor. (See “Other Information — Distributor” for more information.) Payments under an Investment Portfolio's 12b-1 Plan decrease the Investment Portfolio's investment return.
We select the Investment Portfolios offered through this contract based on a number of criteria, including asset class coverage, the strength of the adviser's or subadviser's reputation and tenure, brand recognition, performance, and the capability and qualification of each investment firm. Another factor we consider during the selection process is whether the Investment Portfolio's adviser or subadviser is one of our affiliates or whether the Investment Portfolio, its adviser, its subadviser(s), or an affiliate will make payments to us or our affiliates. In this regard, the profit distributions we receive from our affiliated investment adviser are a component of the total revenue that we consider in configuring the features and investment choices available in the variable insurance products that we and our affiliated insurance companies issue. Since we and our affiliated insurance companies may benefit more from the allocation of assets to portfolios advised by our affiliates than to those that are not, we may be more inclined to offer portfolios advised by our affiliates in the variable insurance products we issue. We review the Investment Portfolios periodically and may remove an Investment Portfolio or limit its availability to new Purchase Payments and/or transfers of Account Value if we determine that the Investment Portfolio no longer meets one or more of the selection criteria, and/or if the Investment Portfolio has not attracted significant allocations from contract Owners. In some cases, we have included Investment Portfolios based on recommendations made by selling firms. These selling firms may receive payments from the Investment Portfolios they recommend and may benefit accordingly from the allocation of Account Value to such Investment Portfolios.
We do not provide any investment advice and do not recommend or endorse any particular Investment Portfolio. You bear the risk of any
18
decline in the Account Value of your contract resulting from the performance of the Investment Portfolios you have chosen.
Transfers
You can transfer a portion of your account value among the fixed account and the investment portfolios.
BLIC has reserved the right during the year to terminate or modify the transfer provisions described below, subject to applicable Federal and state laws and regulations. (See “Investment Options – Restrictions on Transfers.”) We also may be required to suspend the right to transfers in certain circumstances (see “Access to Your Money – Suspension of Payments or Transfers”).
Transfers by Telephone or Other Means. You and/or your financial representative on your behalf, can make transfers by telephone, Internet or other means acceptable to BLIC. Telephone transfers will be automatically permitted unless you tell us otherwise. If you own the contract with a joint owner, unless BLIC is instructed otherwise, BLIC will accept instructions from either you or the other owner. (See “Other Information – Requests and Elections.”) BLIC will use reasonable procedures to confirm that instructions given us by telephone are genuine. BLIC may tape record telephone instructions. We will consider telephone and Internet transfer requests received after 4:00 P.M. Eastern Time, or on a day when the New York Stock Exchange (NYSE) is not open, to be received on the next day that the NYSE is open.
Transfers During The Accumulation Phase. You can make 12 transfers every year during the accumulation phase without charge. We measure a year from the anniversary of the day we issued your contract. You can make a transfer to or from the fixed account and to or from any investment portfolio. If you make more than 12 transfers in a year, there is a transfer fee deducted. The following apply to any transfer during the accumulation phase:
1. The minimum amount which you can transfer is $500 or your entire value in the investment portfolio or fixed account.
2. Your request for transfer must clearly state which investment portfolio(s) or the fixed account are involved in the transfer.
3. Your request for transfer must clearly state how much the transfer is for.
4. You cannot make any transfers within 7 calendar days of the annuity date.
Transfers During The Income Phase. You can only make transfers between the investment portfolios once each year. We measure a year from the anniversary of the day we issued your contract. You cannot transfer from the fixed account to an investment portfolio, but you can transfer from one or more investment portfolios to the fixed account at any time.
Restrictions on Transfers
Restrictions on Frequent Transfers. Frequent requests from owners to transfer account value may dilute the value of an investment portfolio’s shares if the frequent trading involves an attempt to take advantage of pricing inefficiencies created by a lag between a change in the value of the securities held by the investment portfolio and the reflection of that change in the investment portfolio’s share price (“arbitrage trading”). Frequent transfers involving arbitrage trading may adversely affect the long-term performance of the investment portfolios, which may in turn adversely affect owners and other persons who may have an interest in the contracts (e.g., annuitants and beneficiaries).
We have policies and procedures that attempt to detect and deter frequent transfers in situations where we determine there is a potential for arbitrage trading. Currently, we believe that such situations may be presented in the international, small-cap and high-yield investment portfolios. We monitor transfer activity in the following investment portfolios (the “Monitored Portfolios”):
If you purchased the COVA VARIABLE ANNUITY, the following investment portfolios are monitored:
Invesco Global Equity Portfolio
MFS® Research International Portfolio
Neuberger Berman Genesis Portfolio
T. Rowe Price Small Cap Growth Portfolio
Western Asset Management Strategic Bond Opportunities Portfolio
If you purchased the FIRSTAR SUMMITVARIABLE ANNUITY, the following investment portfolios are monitored:
Baillie Gifford International Stock Portfolio
Invesco V.I. EQV International Equity Fund
MFS® Research International Portfolio
Neuberger Berman Genesis Portfolio
State Street Emerging Markets Enhanced Index Portfolio
19
Templeton Foreign VIP Fund
Western Asset Management Strategic Bond Opportunities Portfolio
If you purchased the PREMIER ADVISOR VARIABLE ANNUITY, the following investment portfolios are monitored:
CBRE Global Real Estate Portfolio
Invesco Global Equity Portfolio
Invesco V.I. EQV International Equity Fund
MFS® Research International Portfolio
Neuberger Berman Genesis Portfolio
State Street Emerging Markets Enhanced Index Portfolio
T. Rowe Price Small Cap Growth Portfolio
Templeton Foreign VIP Fund
Western Asset Management Strategic Bond Opportunities Portfolio
If you purchased the DESTINY SELECT VARIABLE ANNUITY, the following investment portfolios are monitored:
CBRE Global Real Estate Portfolio
Invesco Global Equity Portfolio
Invesco V.I. EQV International Equity Fund
MFS® Research International Portfolio
Neuberger Berman Genesis Portfolio
State Street Emerging Markets Enhanced Index Portfolio
Templeton Foreign VIP Fund
Western Asset Management Strategic Bond Opportunities Portfolio
If you purchased the PREVAIL VARIABLE ANNUITY, the following investment portfolios are monitored:
Invesco V.I. EQV International Equity Fund
MFS® Research International Portfolio
Neuberger Berman Genesis Portfolio
Western Asset Management Strategic Bond Opportunities Portfolio
We employ various means to monitor transfer activity, such as examining the frequency and size of transfers into and out of the Monitored Portfolios within given periods of time. For example, we currently monitor transfer activity to determine if, for each category of international, small-cap, and high-yield investment portfolios, in a 12-month period there were (1) six or more transfers involving the given category; (2) cumulative gross transfers involving the given category that exceed the current account value; and (3) two or more “round-trips” involving any investment portfolio
in the given category. A round-trip generally is defined as a transfer in followed by a transfer out within seven calendar days or a transfer out followed by a transfer in within seven calendar days, in either case subject to certain criteria. We do not believe that other investment portfolios present a significant opportunity to engage in arbitrage trading and therefore do not monitor transfer activity in those investment portfolios. We may change the Monitored Portfolios at any time without notice in our sole discretion.
Our policies and procedures may result in transfer restrictions being applied to deter frequent transfers. Currently, when we detect transfer activity in the Monitored Portfolios that exceeds our current transfer limits, we will impose transfer restrictions on the entire contract and will require future transfer requests to or from any investment portfolio under that contract to be submitted in writing with an original signature. A first occurrence will result in a warning letter; a second occurrence will result in the imposition of this restriction for a six-month period; a third occurrence will result in the permanent imposition of the restriction.
Transfers made under a Dollar Cost Averaging Program, a rebalancing program or, if applicable, any asset allocation program described in this prospectus are not treated as transfers when we monitor the frequency of transfers.
The detection and deterrence of harmful transfer activity involves judgments that are inherently subjective, such as the decision to monitor only those investment portfolios that we believe are susceptible to arbitrage trading or the determination of the transfer limits. Our ability to detect and/or restrict such transfer activity may be limited by operational and technological systems, as well as our ability to predict strategies employed by owners to avoid such detection. Our ability to restrict such transfer activity may also be limited by provisions of the contract. Accordingly, there is no assurance that we will prevent all transfer activity that may adversely affect owners and other persons with interests in the contracts. We do not accommodate frequent transfers in any investment portfolios and there are no arrangements in place to permit any owner to engage in frequent transfers; we apply our policies and procedures without exception, waiver or special arrangement.
The investment portfolios may have adopted their own policies and procedures with respect to frequent transfers in their respective shares and we reserve the right to enforce
20
these policies and procedures. For example, investment portfolios may assess a redemption fee (which we reserve the right to collect) on shares held for a relatively short period. The prospectuses for the investment portfolios describe any such policies and procedures, which may be more or less restrictive than the policies and procedures we have adopted. Although we may not have the contractual authority or the operational capacity to apply the frequent transfer policies and procedures of the investment portfolios, we have entered into a written agreement, as required by SEC regulation, with each investment portfolio or its principal underwriter that obligates us to provide to the investment portfolio promptly upon request certain information about the trading activity of individual owners, and to execute instructions from the investment portfolio to restrict or prohibit further purchases or transfers by specific owners who violate the frequent transfer policies established by the investment portfolio.
In addition, owners and other persons with interests in the Contracts should be aware that the purchase and redemption orders received by the investment portfolios generally are “omnibus” orders from intermediaries, such as retirement plans or separate accounts funding variable insurance contracts. The omnibus orders reflect the aggregation and netting of multiple orders from individual owners of variable insurance contracts and/or individual retirement plan participants. The omnibus nature of these orders may limit the investment portfolios in their ability to apply their frequent transfer policies and procedures. In addition, the other insurance companies and/or retirement plans may have different policies and procedures or may not have any such policies and procedures because of contractual limitations. For these reasons, we cannot guarantee that the investment portfolios (and thus owners) will not be harmed by transfer activity relating to other insurance companies and/or retirement plans that may invest in the investment portfolios. If an investment portfolio believes that an omnibus order reflects one or more transfer requests from owners engaged in frequent trading, the investment portfolio may reject the entire omnibus order.
In accordance with applicable law, we reserve the right to modify or terminate the transfer privilege at any time. We also reserve the right to defer or restrict the transfer privilege at any time that we are unable to purchase or redeem shares of any of the investment portfolios, including any refusal or restriction on purchases or redemptions of their shares as a result of their own policies
and procedures on frequent transfers (even if an entire omnibus order is rejected due to the frequent transfers of a single owner). You should read the investment portfolio prospectuses for more details.
Restrictions on Large Transfers. Large transfers may increase brokerage and administrative costs of the underlying investment portfolios and may disrupt portfolio management strategy, requiring an investment portfolio to maintain a high cash position and possibly resulting in lost investment opportunities and forced liquidations. We do not monitor for large transfers to or from investment portfolios except where the portfolio manager of a particular underlying investment portfolio has brought large transfer activity to our attention for investigation on a case-by-case basis. For example, some portfolio managers have asked us to monitor for “block transfers” where transfer requests have been submitted on behalf of multiple owners by a third party such as an investment adviser. When we detect such large trades, we may impose restrictions similar to those described above where future transfer requests from that third party must be submitted in writing with an original signature. A first occurrence will result in a warning letter; a second occurrence will result in the imposition of this restriction for a six-month period; a third occurrence will result in the permanent imposition of the restriction.
Dollar Cost Averaging Program
The Dollar Cost Averaging Program allows you to systematically transfer a set amount each month from the BlackRock Ultra-Short Term Bond Portfolio or the fixed account to any of the other investment portfolio(s) you select. By allocating amounts on a regular schedule as opposed to allocating the total amount at one particular time, you may be less susceptible to the impact of market fluctuations. The Dollar Cost Averaging Program is available only during the accumulation phase.
For example, you can instruct us to transfer $1,000 on the first of each month from the BlackRock Ultra-Short Term Bond Portfolio to another investment portfolio that you have selected, such as the MetLife Aggregate Bond Index Portfolio. Hypothetically, the $1,000 allocation may have bought 50 accumulation units of the MetLife Aggregate Bond Index Portfolio in January, 65 accumulation units in February, and 45 accumulation units in March. In these three months, you allocated $3,000 to the MetLife Aggregate Bond Index Portfolio which has resulted in 160 accumulation units. The value of each accumulation unit is
21
an average of the three values used at the time of allocation. If you had allocated the entire $3,000 at one time, the total value might be higher or lower.
The minimum amount which can be transferred each month is $500. You must have at least $6,000 in the BlackRock Ultra-Short Term Bond Portfolio or the fixed account (or the amount required to complete your program, if less) in order to participate in the Dollar Cost Averaging Program. Currently, BLIC does not charge for participating in the Dollar Cost Averaging Program. BLIC will waive the minimum transfer amount and the minimum amount required to establish dollar cost averaging if you establish dollar cost averaging for 6 or 12 months at the time you bought the contract.
If you make an additional purchase payment while the Dollar Cost Averaging Program is in effect, we will not allocate the additional payment to the Program unless you tell us to do so. Instead, unless you previously provided different allocation instructions for future purchase payments or provide new allocation instructions with the payment, we will allocate the additional purchase payment directly to the same destination investment portfolios under the Dollar Cost Averaging Program. Any purchase payments received after the Program has ended will be allocated as described in “Purchase — Allocation of Purchase Payments.” BLIC reserves the right to modify, terminate or suspend the Dollar Cost Averaging Program.
If you participate in the Dollar Cost Averaging Program, the transfers made under the program are not taken into account in determining any transfer fee. You may not participate in the Dollar Cost Averaging Program and Automatic Rebalancing Program at the same time. BLIC may, from time to time, offer other dollar cost averaging programs which may have terms different from those described above.
Automatic Rebalancing Program
Once your money has been allocated to the investment portfolios, the performance of each portfolio may cause your allocation to shift. You can direct us to automatically rebalance your contract to return to your original percentage allocations by selecting our Automatic Rebalancing Program. You can tell us whether to rebalance quarterly, semi-annually or annually. An automatic rebalancing program is intended to transfer contract value from those portfolios that have increased in value to those that have declined or not increased as much in value. Over time, this method of investing may help you “buy low and
sell high,” although there can be no assurance that this objective will be achieved. Automatic rebalancing does not guarantee profits nor does it assure that you will not have losses. We will measure these periods from the anniversary of the date we issued your contract. The transfer date will be the 1st business day after the end of the period you selected.
The Automatic Rebalancing Program is available only during the accumulation phase. Currently, BLIC does not charge for participating in the Automatic Rebalancing Program. If you participate in the Automatic Rebalancing Program, the transfers made under the program are not taken into account in determining any transfer fee.
For example, assume that you want your initial purchase payment split between 2 investment portfolios. You want 40% to be in the Western Asset Management Strategic Bond Opportunities Portfolio and 60% to be in the T. Rowe Price Large Cap Value Portfolio. Hypothetically, over the next 2 1∕2 months the bond market does very well while the stock market performs poorly. At the end of the first quarter, the Western Asset Management Strategic Bond Opportunities Portfolio now represents 50% of your holdings because of its increase in value. If you have chosen to have your holdings rebalanced quarterly, on the first day of the next quarter, BLIC will sell some of your units in the Western Asset Management Strategic Bond Opportunities Portfolio to bring its value back to 40% and use the money to buy more units in the T. Rowe Price Large Cap Value Portfolio to increase those holdings to 60%.
Voting Rights
BLIC is the legal owner of the investment portfolio shares. However, BLIC believes that when an investment portfolio solicits proxies in conjunction with a vote of shareholders, it is required to obtain from you and other affected owners instructions as to how to vote those shares. When we receive those instructions, we will vote all of the shares we own in proportion to those instructions. This will also include any shares that we own on our own behalf. The effect of this proportional voting is that a small number of contract owners may control the outcome of a vote. Should BLIC determine that it is no longer required to comply with the above, it will vote the shares in its own right.
Substitution
If investment in the investment portfolios or a particular investment portfolio is no longer possible, in our judgment becomes inappropriate for purposes of the contract or for any other reason in our sole discretion, we may substitute
22
another investment portfolio or investment portfolios without your consent. The substituted investment portfolio may have different fees and expenses. Substitution may be made with respect to existing investments or the investment of the future purchase payments, or both. However, we will not make such substitution without any necessary approval of the Securities and Exchange Commission. Furthermore, we may close investment portfolios to allocation of purchase payments or account value, or both, at any time in our sole discretion.
EXPENSES
There are charges and other expenses associated with the contracts that reduce the return on your investment in the contract.These charges and expenses are:
Insurance Charges (Base Contract Expenses)
Each day, BLIC makes a deduction for its insurance charges. BLIC does this as part of its calculation of the value of the accumulation units and the annuity units (i.e., during the accumulation phase and the income phase). The insurance charge has two parts:
•the mortality and expense risk premium, and
•the administrative expense charge.
Mortality And Expense Risk Premium. This charge is equivalent, on an annual basis, to 1.25% of the average daily net asset value of each investment portfolio. This charge generally compensates us for providing the insurance benefits under the contract (e.g., guarantee of annuity rates, the death benefits), for certain expenses of the contract, and for assuming the risk (expense risk) that the current charges will be insufficient in the future to cover the cost of administering the contract. If the charges under the contract are not sufficient, then BLIC will bear the loss. BLIC does, however, expect to profit from this charge. The mortality and expense risk premium cannot be increased. BLIC may use any profits it makes from this charge to pay for the costs of distributing the contract.
For Premier Advisor Variable Annuity, Destiny Select Variable Annuity and Prevail Variable Annuity, we are waiving an amount of the mortality and expense risk premium equal to the investment portfolio expenses that are in excess of (1) 0.67% for account value allocated to the T. Rowe Price Large Cap Growth Portfolio (Class A) and (2) 0.59% for account value allocated to the T. Rowe Price Large Cap Value Portfolio (Class A). For Cova Variable Annuity, we are waiving an amount of the
mortality and expense risk premium equal to the investment portfolio expenses that are in excess of 0.83% for account value allocated to the T. Rowe Price Large Cap Value Portfolio (Class A) and in excess of 0.87% for account value allocated to the Invesco Global Equity Portfolio (Class B).
Administrative Expense Charge. This charge is equal, on an annual basis, to 0.15% of the average daily net asset value of the each investment portfolio. This charge, together with the contract maintenance charge (see below), generally compensates us for the expenses associated with the administration of the contract. Some of these expenses are: preparation of the contract, confirmations, annual reports and statements, maintenance of contract records, personnel costs, legal and accounting fees, filing fees, and computer and systems costs. Because this charge is taken out of every unit value, you may pay more in administrative costs than those that are associated solely with your contract. BLIC does not intend to profit from this charge. However, if this charge and the contract maintenance charge are not enough to cover the costs of the contracts in the future, BLIC will bear the loss.
Contract Maintenance Charge
During the accumulation phase, every year on the anniversary of the date when your contract was issued, BLIC deducts $30 from your contract as a contract maintenance charge. (In South Carolina, the charge is the lesser of $30 or 2% of the value of the contract.) This charge generally compensates us for administrative expenses (see above). This charge cannot be increased.
BLIC will not deduct this charge during the accumulation phase if when the deduction is to be made, the value of your contract is $50,000 or more. BLIC may some time in the future discontinue this practice and deduct the charge.
If you make a complete withdrawal from your contract, the contract maintenance charge will also be deducted.
A pro rata portion of the charge will be deducted on the annuity date, or upon a full withdrawal, if the date is other than an anniversary. After the annuity date, the charge will be collected monthly out of the annuity payment.
Withdrawal Charge
We impose a withdrawal charge to reimburse us generally for contract sales expenses, including commissions and other distribution, promotion, and acquisition expenses. During the accumulation phase, you can make withdrawals from your contract. BLIC keeps track of each purchase
23
payment. Once a year after the first year (and once a year during the first year for purposes of payment of charitable remainder trust administration fees), you can withdraw up to 10% of your total purchase payments and no withdrawal charge will be assessed on the 10%, if on the day you make your withdrawal (in New Jersey, on the day BLIC processes the withdrawal) the value of your contract is $5,000 or more. Withdrawals for purposes of payment of charitable remainder trust administration fees are included in the 10% free withdrawal amount. Otherwise, the charge is 5% of each purchase payment you take out unless the purchase payment was made more than 5 years ago. After BLIC has had a purchase payment for 5 years, there is no charge when you withdraw that purchase payment. BLIC does not assess a withdrawal charge on earnings withdrawn from the contract. Earnings are defined as the value in your contract minus the remaining purchase payments in your contract. The withdrawal order for calculating the withdrawal charge is shown below.
•10% of purchase payments free.
•Remaining purchase payments that are over 5 years old and not subject to a withdrawal charge.
•Earnings in the contract free.
•Remaining purchase payments that are less than 5 years old and are subject to a withdrawal charge.
For purposes of calculating the withdrawal charge, slightly different rules may apply to Section 1035 exchanges.
When the withdrawal is for only part of the value of your contract, you may choose to have the withdrawal charge deducted from the remaining contract value, if sufficient, or from the amount withdrawn. If you choose to have the charge deducted from the amount withdrawn, you would receive less than the dollar amount you requested. If you choose to have the withdrawal charge deducted from the remaining contract value, you would receive the full dollar amount you requested, however, this may result in a higher withdrawal charge because the charge would be based on a larger total dollar amount withdrawn from your contract value.
The withdrawal charge may be assessed if prior purchase payments are withdrawn pursuant to a divorce or separation instrument, if permissible under tax law. The withdrawal could have a significant negative impact on the death benefit and on any optional rider benefit.
BLIC does not assess the withdrawal charge on any payments paid out as annuity payments or as death
benefits. In addition, we do not assess the withdrawal charge on withdrawals of required minimum distributions or excess contributions from Qualified Contracts. This exception only applies to amounts required to be distributed from the contract.
For participants of 403(b) arrangements, 401(a), 401(k) and 457 plans, if you make a transfer to another funding vehicle or annuity contract issued by us or by one of our affiliates, we may waive the withdrawal charge if it is permitted in your state.
NOTE: For tax purposes, earnings are considered to come out first.
Reduction or Elimination of the Withdrawal Charge
General. BLIC may reduce or eliminate the amount of the withdrawal charge when the contract is sold under circumstances which reduce its sales expense. Some examples are: if there is a large group of individuals that will be purchasing the contract or a prospective purchaser already had a relationship with BLIC. BLIC may not deduct a withdrawal charge under a contract issued to an officer, director or employee of BLIC or any of its affiliates and we may not deduct a withdrawal charge under a contract issued to an officer, director or employee or family member of an officer, director or employee of a broker-dealer which is participating in the offering of the contract.
Nursing Home Waiver. After you have owned the contract for one year, if you, or your joint owner, becomes confined to a nursing home or hospital for at least 90 consecutive days under a doctor’s care and you need part or all of the money from your contract, BLIC will not impose a withdrawal charge. You or your joint owner cannot have been so confined when you purchased your contract (confinement must begin after the first contract anniversary) if you want to take advantage of this provision. This is called the Nursing Home Waiver.
Hypothetically, assume you purchased the contract and shortly after one year of owning the contract, you become confined to a nursing home and then request to take a withdrawal that would have normally been subject to a 5% withdrawal charge. In that instance, if you satisfy the conditions of the Nursing Home Waiver, we would not impose that withdrawal charge that would have otherwise applied to that withdrawal.
24
Premium Taxes And Other Taxes
Some states and other governmental entities (e.g., municipalities) charge premium taxes or similar taxes. BLIC is responsible for the payment of these taxes and will make a deduction from the value of the contract for them. Some of these taxes are due when the contract is issued, others are due when annuity payments begin. It is BLIC’s current practice to not charge anyone for these taxes until annuity payments begin. BLIC may, some time in the future, discontinue this practice and assess the charge when the tax is due. Premium taxes generally range from 0% to 3.5%, depending on the state.
We also reserve the right to deduct from purchase payments, contract values, withdrawals or income payments, any taxes (including, but not limited to, premium taxes) paid by us to any government entity relating to the contracts. Examples of these taxes include, but are not limited to, generation skipping transfer tax or a similar excise tax under federal or state tax law which is imposed on payments we make to certain persons and income tax withholdings on withdrawals and income payments to the extent required by law. We will, at our sole discretion, determine when taxes relate to the contracts. We may, at our sole discretion, pay taxes when due and deduct that amount from the contract value at a later date. Payment at an earlier date does not waive any right we may have to deduct amounts at a later date.
Transfer Fee
You can make 12 free transfers every year. We measure a year from the day we issue your contract. If you make more than 12 transfers a year, we will deduct a transfer fee of $25 or 2% of the amount that is transferred, whichever is less.
The transfer fee compensates us generally for the costs of processing transfers.
If the transfer is part of the Dollar Cost Averaging Program or the Automatic Rebalancing Program, it will not count in determining the transfer fee.
Income Taxes
We reserve the right to deduct from the contract for any income taxes which we incur because of the contract. In general, we believe under current federal income tax law, we are entitled to hold reserves with respect to the contract that offset Separate Account income. If this should change, it is possible we could incur income tax with respect to the contract, and in that event we may deduct such tax from
the contract. At the present time, however, we are not incurring any such income tax or making any such deductions.
Investment Portfolio Expenses
There are deductions from and expenses paid out of the assets of the investment portfolios that are described in the investment portfolio prospectuses. These deductions and expenses are not charges under the terms of the contract but are represented in the share values of the investment options.
An investment portfolio may assess a redemption fee up to 2% on assets that are redeemed out of an investment portfolio in connection with a withdrawal or transfer. Each investment portfolio determines the amount of the redemption fee and when the fee is imposed. The redemption fee is retained by or paid to the investment portfolio and is not retained by us. The redemption fee will be deducted from your account value. For more information, see the investment portfolio prospectus.
ACCESS TO YOUR MONEY
You (or in the case of (3) and (4) below, your beneficiary) can have access to the money in your contract:
(1) by making a withdrawal (either a partial or a complete withdrawal);
(2) by electing to receive annuity payments;
(3) when a death benefit is paid to your beneficiary; or
(4) under annuity option 2 described under “Annuity Payments (The Income Phase) – Annuity Options” which provides for continuing annuity payments or a single lump sum upon death of the last surviving annuitant during the guaranteed period.
Under most circumstances, withdrawals can only be made during the accumulation phase. Full and partial withdrawals are subject to federal income taxes on the taxable portion and may be subject to withdrawal charges. In addition, a 10% federal penalty tax may be assessed on withdrawals if the contract owner is under age 59 1∕2. Withdrawals could significantly reduce the value of your contract, the death benefit, and other contract benefits. The reduction may be more than the amount withdrawn.
When you make a complete withdrawal you will receive the withdrawal value of the contract. The withdrawal value of the contract is the value of the contract at the end of the business day when BLIC receives a written request for a
25
withdrawal in good order prior to the close of trading on the New York Stock Exchange (currently 4:00 P.M. Eastern Time):
•less any applicable withdrawal charge,
•less any premium tax, and
•less any contract maintenance charge.
Unless you instruct BLIC otherwise, any partial withdrawal will be made pro-rata from all the investment portfolios and the fixed account. Under most circumstances, the amount of any partial withdrawal must be for at least $500. BLIC requires that after a withdrawal is made you keep at least $500 in any selected investment portfolio. If the remaining withdrawal value would be less than $500 ($1,000 in New Jersey) after you make a partial withdrawal, the partial withdrawal amount will be the remaining withdrawal value.
We have to receive your withdrawal request at our Annuity Service Center prior to the annuity date or your death; provided, however, that you may submit a written withdrawal request any time prior to the annuity date that indicates that the withdrawal should be processed as of the annuity date. Solely for the purpose of calculating and processing such a withdrawal request, the request will be deemed to have been received on, and the withdrawal amount will be priced according to the accumulation unit value calculated as of, the annuity date. Your request must be received at our Annuity Service Center on or before the annuity date.
We may withhold payment of surrender or withdrawal proceeds if any portion of those proceeds would be derived from a contract owner’s check that has not yet cleared (i.e., that could still be dishonored by your banking institution). We may use telephone, fax, Internet or other means of communications to verify that payment from the contract owner’s check has been or will be collected. We will not delay payment longer than necessary for us to verify that payment has been or will be collected. Contract owners may avoid the possibility of delay in the disbursement of proceeds coming from a check that has not yet cleared by providing us with a certified check.
When you make a withdrawal, the amount of the death benefit may be reduced. Withdrawals could significantly reduce the value of your contract, the death benefit, and other contract benefits. The reduction may be more than the amount withdrawn. See “Death Benefits.”
There are limits to the amount you can withdraw from qualified plans, including 403(b) plans. For a more complete explanation see “Federal Income Tax Status” and the discussion in the Statement of Additional Information.
Income taxes, tax penalties and certain restrictions may apply to any withdrawal you make.
Systematic Withdrawal Program
You may use the Systematic Withdrawal Program. This program provides an automatic monthly payment to you of up to 10% of your total purchase payments each year. For example, you may elect to have $500 withdrawn from your contract value automatically every month, provided that such withdrawals do not exceed 10% of your total purchase payments, and we will send it to you either by mail or directly into a bank account on file.
No withdrawal charge will be made for these payments. BLIC does not have any charge for this program, but reserves the right to charge in the future. While the Systematic Withdrawal Program is in effect, you can make additional withdrawals. However, such withdrawals plus the systematic withdrawals will be considered when determining the applicability of any withdrawal charge. For a discussion of the withdrawal charge and the 10% free withdrawal, see “Expenses.”
Income taxes, tax penalties and certain restrictions may apply to systematic withdrawals. (See “Federal Income Tax Status.”)
Suspension Of Payments Or Transfers
BLIC may be required to suspend or postpone payments for withdrawals or transfers for any period when:
•the New York Stock Exchange is closed (other than customary weekend and holiday closings);
•trading on the New York Stock Exchange is restricted;
•an emergency exists, as determined by the Securities and Exchange Commission, as a result of which disposal of shares of the investment portfolios is not reasonably practicable or BLIC cannot reasonably value the shares of the investment portfolios; or
•during any other period when the Securities and Exchange Commission, by order, so permits for the protection of owners.
26
BLIC has reserved the right to defer payment for a withdrawal or transfer from the fixed account for the period permitted by law but not for more than six months.
Federal laws designed to counter terrorism and prevent money laundering might, in certain circumstances, require us to block a contract owner’s ability to make certain transactions and thereby refuse to accept any requests for transfers, withdrawals, surrenders, or death benefits until instructions are received from the appropriate regulator. We may also be required to provide additional information about you and your contract to government regulators.
27
BENEFITS AVAILABLE UNDER THE CONTRACT
The following table summarizes information about the benefits under the contract. The availability of Contract benefits may vary depending on the state in which the Contract is issued or the selling firm through which it is sold. See Appendix B: State and Financial Intermediary Variations. 
Name of
Benefit
Purpose
Standard
or
Optional
Maximum
Annual Fee
Current
Charges
Brief Description of
Restrictions /
Limitations
Dollar Cost
Averaging
Program
Allows you to systematically
transfer a set amount each
month from an investment
portfolio or the fixed
account to other available
investment portfolios
Standard
No Charge
N/A
●Available only during the
accumulation phase
●Transfers only available
from the fixed account or
the BlackRock Ultra-Short
Term Bond Portfolio
●Minimum monthly
transfer amount is $500
●Must have at least $6,000
in the BlackRock Ultra-
Short Term Bond
Portfolio or the fixed
account (or the amount
required to complete your
program, if less) in order
to participate
●Minimum dollar
requirements waived if 6
or 12 month duration
established at time of
contract purchase
●May not participate in
dollar cost averaging and
automatic rebalancing at
the same time
Automatic
Rebalancing
Program
Allows us to automatically
rebalance your contract
value to return to your
original percentage
allocations
Standard
No Charge
N/A
●Available only during the
accumulation phase
●May not participate in
dollar cost averaging and
automatic rebalancing at
the same time
Systematic
Withdrawal
Program
Allows you to set up an
automatic monthly
payments of up to 10% of
your total purchase
payments each year free of
withdrawal charges
Standard
No Charge
N/A
●Systematic withdrawals
limited to 10% of total
purchase payments each
year
Nursing
Home Waiver
Allows you to withdraw
contract value without a
withdrawal charge
Standard
No Charge
N/A
●Must own contract for at
least one year
●You or your joint owner
must be confined to a
nursing home or hospital
for at least 90 days under
a doctor’s care
●Not available in all states
28
Name of
Benefit
Purpose
Standard
or
Optional
Maximum
Annual Fee
Current
Charges
Brief Description of
Restrictions /
Limitations
Death Benefit
Option A
Pays a minimum death
benefit at least equal to the
greater of (i) total purchase
payments less any
withdrawals; (ii) contract
value, or (iii) greatest
contract value on a contract
anniversary prior to age 80,
adjusted for purchase
payments and withdrawals
Standard
No Charge
N/A
●Generally available under
contracts issued May 1,
1998 to April 30, 1999
●Available under contracts
issued on or after May 1,
1999 if Death Benefit
Option E was not
approved in your state
●Availability subject to
state approval
●Withdrawals could
significantly reduce the
benefit
Death Benefit
Option B
Pays a minimum death
benefit at least equal to the
greater of (i) total purchase
payments, less any
withdrawals, accumulated
at an annual rate of 4%
prior to age 80; (ii) contract
value, or (iii) greatest
contract value on any five-
year contract anniversary
prior to age 80, adjusted for
purchase payments and
withdrawals
Standard
No Charge
N/A
●Generally available under
contracts issued at any
time
●Availability subject to
state approval
●Withdrawals could
significantly reduce the
benefit
Death Benefit
Option C
Pays a minimum death
benefit at least equal to the
greater of (i) total purchase
payments less any
withdrawals; (ii) contract
value, or (iii) greatest
contract value on a contract
anniversary prior to age 80,
adjusted for purchase
payments and withdrawals
Standard
No Charge
N/A
●Generally available under
contracts issued before
May 1, 1998
●Not available if owner
was 80 or older on
May 1, 1998
●Availability subject to
state approval
●Withdrawals could
significantly reduce the
benefit
Death Benefit
Option D
Pays a minimum death
benefit at least equal to the
greater of (i) total purchase
payments, less any
withdrawals, accumulated
at an annual rate of 4%
prior to age 80; (ii) contract
value, or (iii) contract value
on the most recent five year
anniversary before age 80,
adjusted for purchase
payments and withdrawals
Standard
No Charge
N/A
●Generally available under
contracts issued before
May 1, 1998
●Availability subject to
state approval
●Withdrawals could
significantly reduce the
benefit
29
Name of
Benefit
Purpose
Standard
or
Optional
Maximum
Annual Fee
Current
Charges
Brief Description of
Restrictions /
Limitations
Death Benefit
Option E
Pays a minimum death
benefit at least equal to the
greater of (i) total purchase
payments less any
withdrawals; (ii) contract
value, or (iii) greatest
contract value on a contract
anniversary prior to age 80,
adjusted for purchase
payments and withdrawals
Standard
No Charge
N/A
●Generally available under
contracts issued on or
after May 1, 1999
●Availability subject to
state approval
●Withdrawals may reduce
the benefit, and such
reductions could be
significant
30
DEATH BENEFIT
Upon Your Death
If you die before annuity payments begin, BLIC will pay a death benefit to your beneficiary (or beneficiaries) (see below). If you die during the income phase (after you begin receiving annuity payments), there is no death benefit; however, depending on the annuity option you elect, any remaining guarantee may be paid to your beneficiary (or beneficiaries) (see “Annuity Payments (The Income Phase)” for more information).
The death benefit will be determined when BLIC receives both due proof of death and an election for the payment method. Until the beneficiary submits the necessary documentation in good order, the account value attributable to his/her portion of the death benefit remains in the investment portfolios and is subject to investment risk.
If you have a joint owner, the death benefit will be paid when the first of you dies. Joint owners must be spouses. The surviving joint owner will be treated as the beneficiary. Note that if BLIC is presented in good order with notification of your death before any requested transaction is completed (including transactions under a dollar cost averaging, portfolio rebalancing or systematic withdrawal program), we will cancel the request.
For contracts issued on or after May 1, 1999, you can select Death Benefit Option B or E. If you do not choose an option on the forms provided by BLIC, Option E will be your death benefit. If, at the time you buy the contract, the endorsement for Death Benefit Option E is not approved in your state, you can select Death Benefit Option A or B. If you do not choose an option on the forms provided by BLIC, Option A will be your death benefit.
If your contract was issued before May 1, 1998, you were given the opportunity to choose Death Benefit Option B or C on your next contract anniversary after May 1, 1998 (or during a 60 day period after both options were approved in your state). If you did not make an election during such time period, your death benefit was automatically enhanced to Death Benefit Option B. If on May 1, 1998, you or your joint owner were 80 or older, you were unaffected by the changes in the death benefits and Option D continues to be your death benefit.
From May 1, 1998, to April 30, 1999, at the time you bought the contract, you were given the opportunity to select Death Benefit Option A or B. If you did not choose
an option on the forms provided by BLIC, Option A is your death benefit.
The death benefits are described below. If you have a joint owner, the death benefit is determined based on the age of the oldest joint owner and the death benefit is payable on the death of the first joint owner.
Death Benefit Option A:
Prior to you, or your joint owner, reaching age 80, the death benefit will be the greatest of:
1. Total purchase payments, less any withdrawals (and any withdrawal charges paid on the withdrawals); or
2. The value of your contract at the time the death benefit is to be paid; or
3. The greatest adjusted contract value (GACV) (as explained below).
The GACV is evaluated at each contract anniversary prior to the date of your or your joint owner’s death, and on each day a purchase payment or withdrawal is made. On the contract anniversary, if the current contract value is greater than the GACV, the GACV will be increased to the current value of your contract. If a purchase payment is made, the amount of the purchase payment will increase the GACV. If a withdrawal is made, the GACV will be reduced by the amount withdrawn (and any associated withdrawal charges) divided by the value of your contract immediately before the withdrawal multiplied by the GACV immediately prior to the withdrawal. The following example describes the effect of a withdrawal on the GACV:
Example: Assumed facts for example:
$10,000 current GACV
$8,000 contract value
$2,100 partial withdrawal ($ 2,000 withdrawal + $100 withdrawal charge)
New GACV = $10,000 - [($2,100/$8,000) X $10,000] which results in the current GACV of $10,000 being reduced by $2,625
The new GACV is $7,375.
After you, or your joint owner, reaches age 80, the death benefit will be the greatest of:
1. Total purchase payments made, less any withdrawals (and any withdrawal charges paid on the withdrawals); or
31
2. The value of your contract at the time the death benefit is to be paid; or
3. The greatest adjusted contract value (GACV) (as explained below).
The GACV is evaluated at each contract anniversary on or before your, or your joint owner’s, 80th birthday, and on each day a purchase payment or withdrawal is made. On the contract anniversary on or before your, or your joint owner’s, 80th birthday, if the current contract value is greater than the GACV, the GACV will be increased to the current value of your contract. If a purchase payment is made, the amount of the purchase payment will increase the GACV. If a withdrawal is made, the example above explains the effect of a withdrawal on the GACV.
Death Benefit Option B:
Prior to you, or your joint owner, reaching age 80, the death benefit will be the greatest of:
1. Total purchase payments, less any withdrawals (and any withdrawal charges paid on the withdrawals) accumulated at an annual rate of 4% until the date of death; or
2. The value of your contract at the time the death benefit is to be paid; or
3. The greatest of the values of your contract resulting from taking the contract value on any five (5) year contract anniversary prior to your, or your joint owner’s death; plus any payments you made subsequent to that contract anniversary, less any withdrawals (and any withdrawal charges paid on the withdrawals) subsequent to that contract anniversary.
After you, or your joint owner, reaches age 80, the death benefit will be the greatest of:
1. Total purchase payments made on or before your, or your joint owner’s, 80th birthday, less any withdrawals (and any withdrawal charges paid on the withdrawals) accumulated at an annual rate of 4% until you, or your joint owner, reach age 80, plus any subsequent purchase payments, less any subsequent withdrawals (and any withdrawal charges paid on the withdrawals); or
2. The value of your contract at the time the death benefit is to be paid; or
3. The greatest of the values of the contract resulting from taking the contract value on any prior five
(5) year contract anniversary on or before your or your joint owner’s 80th birthday, plus any purchase payments made after that contract anniversary, less any withdrawals (and any withdrawal charges paid on the withdrawals) made after that contract anniversary.
Death Benefit Option C:
Prior to you, or your joint owner, reaching age 80, the death benefit will be the greatest of:
1. Total purchase payments, less any withdrawals (and any withdrawal charges paid on the withdrawals); or
2. The value of your contract at the time the death benefit is to be paid; or
3. The greatest adjusted contract value (GACV) as determined below.
The GACV is initially the death benefit determined as of the day BLIC receives notice that you have elected this death benefit option. This figure is based on your existing death benefit as defined in your contract, Option D (not as defined in the endorsement for this option). The GACV is then evaluated at each subsequent contract anniversary prior to your or your joint owner’s death and on each subsequent day a purchase payment or withdrawal is made. On the contract anniversary, if the current contract value is greater than the GACV, the GACV will be increased to the current value of your contract. If a purchase payment is made, the amount of the purchase payment will increase the GACV. If a withdrawal is made, the GACV will be reduced by the amount withdrawn (and any associated withdrawal charges) divided by the value of your contract immediately before the withdrawal multiplied by the GACV immediately prior to the withdrawal. The example above under Death Benefit Option A explains the effect of a withdrawal on the GACV under this death benefit option.
After you, or your joint owner, reaches age 80, the death benefit will be the greatest of:
1. Total purchase payments made, less any withdrawals (and any withdrawal charges paid on the withdrawals); or
2. The value of your contract at the time the death benefit is to be paid; or
3. The GACV as determined below.
The GACV is initially the death benefit determined as of the day BLIC receives notice that you have elected this
32
death benefit option. This figure is based on your existing death benefit as defined in your contract, Option D (not as defined in the endorsement for this option). The GACV is then evaluated at each subsequent contract anniversary on or before your, or your joint owner’s, 80th birthday, and on each subsequent day a purchase payment or withdrawal is made. On the contract anniversary on or before your, or your joint owner’s, 80th birthday, if the current contract value is greater than the GACV, the GACV will be increased to the current value of your contract. If a purchase payment is made, the amount of the purchase payment will increase the GACV. If a withdrawal is made, the GACV will be reduced by the amount withdrawn (and any associated withdrawal charges) divided by the value of your contract immediately before the withdrawal, multiplied by the GACV immediately prior to the withdrawal. The example above under Death Benefit Option A explains the effect of a withdrawal on the GACV under this death benefit option.
Death Benefit Option D:
Prior to you, or your joint owner, reaching age 80, the death benefit will be the greater of:
1. Total purchase payments, less any withdrawals (and any withdrawal charges paid on the withdrawals) accumulated at an annual rate of 4% from the date your contract was issued until the date of death; or
2. The value of your contract at the time the death benefit is to be paid; or
3. The value of your contract on the most recent five year anniversary before the date of death, plus any subsequent purchase payments, less any withdrawals (and any withdrawal charges paid on the withdrawals).
After you, or your joint owner, reaches age 80, the death benefit will be the greater of:
1. Total purchase payments, less any withdrawals (and any withdrawal charges paid on the withdrawals) accumulated at an annual rate of 4% from the date your contract was issued until you, or your joint owner, reaches age 80, plus any subsequent purchase payments, less any withdrawals (and any withdrawal charges paid on the withdrawals); or
2. The value of your contract at the time the death benefit is to be paid; or
3. The value of your contract on the most recent five year anniversary on or before you or your joint owner
reaches 80, plus any purchase payments, less any withdrawals (and any withdrawal charges paid on the withdrawals).
Death Benefit Option E:
Prior to you, or your joint owner, reaching age 80, the death benefit will be the greatest of:
1. Total purchase payments, less any withdrawals (and any withdrawal charges paid on the withdrawals);
2. The value of your contract at the time the death benefit is to be paid; or
3. The greatest contract value on any contract anniversary prior to your, or your joint owner’s death; plus any purchase payments you made subsequent to that contract anniversary, less any withdrawals (and any withdrawal charges paid on the withdrawals) subsequent to that contract anniversary.
After you, or your joint owner, reaches age 80, the death benefit will be the greatest of:
1. Total purchase payments, less any withdrawals (and any withdrawal charges paid on the withdrawals);
2. The value of your contract at the time the death benefit is to be paid; or
3. The greatest contract value on any prior contract anniversary on or before your, or your joint owner’s 80th birthday; plus any purchase payments you made after that contract anniversary, less any withdrawals (and any withdrawal charges paid on the withdrawals) you made after that contract anniversary.
CHECK YOUR CONTRACT AND APPLICABLE ENDORSEMENT FOR YOUR DEATH BENEFIT
The entire death benefit must be paid within 5 years (or in some cases 10 years for Qualified Contracts) of the date of death unless the beneficiary elects to have the death benefit payable under an annuity option. Generally, the payments under such an annuity option must be paid over the beneficiary’s lifetime or for a period not extending beyond the beneficiary’s life expectancy. Payment must begin within one year of the date of death. However, if the Beneficiary under a Qualified Contract is the Annuitant's spouse, the tax law generally allows distributions to begin by the later of the year following the Annuitant’s death or the year in which the Annuitant would have been required to begin taking required minimum distributions. We may also offer a payment option under which your beneficiary
33
may receive payments over a period not extending beyond his or her life expectancy, under a method of distribution similar to the distribution of required minimum distributions that are taken as withdrawals from Individual Retirement Accounts. Such payment option may be limited to certain categories of beneficiaries. If the beneficiary is the spouse of the owner, he/she can continue the contract in his/her own name at the then current value. If a lump sum payment is elected and all the necessary requirements are met, the payment will be made within 7 days.
Spousal continuation will not satisfy minimum required distribution rules for tax qualified contracts other than IRAs.
There are comparable rules for distributions on the death of the annuitant under tax qualified plans. As noted, we may offer a payment option under which your beneficiary may receive payments over a period not extending beyond his or her life expectancy under a method of distribution similar to the distribution of required minimum distributions from individual accounts. For tax qualified plans, if this option is elected, we will issue a new contract to your beneficiary in order to facilitate the distribution of payments. Your beneficiary may be able to choose any available optional death benefit under the new contract, but certain other contract provisions and programs will not be available. Upon the death of your beneficiary, the death benefit would be required to be distributed in accordance with applicable tax law requirements. In some cases, this will require that the proceeds be distributed more rapidly than the method of distribution in effect at the time of your beneficiary’s death. See “Federal Income Tax Status.”
All contract provisions will be interpreted and administered in accordance with the requirements of the Internal Revenue Code.
Death of Annuitant
If the annuitant, not an owner or joint owner, dies before annuity payments begin, you can name a new annuitant. If no annuitant is named within 30 days of the death of the annuitant, you will become the annuitant. However, if the owner is a non-natural person (for example, a corporation), then the death or change of annuitant will be treated as the death of the owner, and a new annuitant may not be named.
Upon the death of the annuitant after annuity payments begin, the death benefit, if any, will be as provided for in the annuity option selected.
Controlled Payout
You may elect to have the death benefit proceeds paid to your beneficiary in the form of annuity payments for life or over a period of time that does not exceed your beneficiary’s life expectancy. This election must be in writing in a form acceptable to us. You may revoke the election only in writing and only in a form acceptable to us. Upon your death, the beneficiary cannot revoke or modify your election.
Abandoned Property Requirements
Every state has unclaimed property laws which generally declare annuity contracts to be abandoned after a period of inactivity of three to five years from the contract’s maturity date (the latest day on which annuity payments may begin under the contract), the date the death benefit is due and payable, or such other date as required by state law. Contracts purchased through certain qualified plans, including IRAs and Roth IRAs, may be subject to special or additional abandoned property rules under state law. For example, if the payment of a death benefit has been triggered, but, if after a thorough search, we are still unable to locate the beneficiary of the death benefit, or the beneficiary does not come forward to claim the death benefit in a timely manner, the death benefit will be paid to the abandoned property division or unclaimed property office of the state in which the beneficiary or the contract owner last resided, as shown on our books and records, or to our state of domicile. (Escheatment is the formal, legal name for this process.) However, the state is obligated to pay the death benefit (without interest) if your beneficiary steps forward to claim it with the proper documentation. To prevent your Contract’s proceeds from being paid to the state’s abandoned or unclaimed property office, it is important that you update your beneficiary designations, including addresses, if and as they change. Please call (800) 343-8496 to make such changes.
FEDERAL INCOME TAX STATUS
Introduction
The following information on taxes is a general discussion of the subject. It is not intended as tax advice. The Code and the provisions of the Code that govern the contract are complex and subject to change. The applicability of federal income tax rules may vary with your particular circumstances. This discussion does not include all the federal income tax rules that may affect you and your contract. Nor does this discussion address other federal tax
34
consequences (such as estate and gift taxes, sales to foreign individuals or entities), or state or local tax consequences, which may affect your investment in the contract. As a result, you should always consult a tax adviser for complete information and advice applicable to your individual situation.
We are not responsible for determining if your employer’s plan or arrangement satisfies the requirements of the Code and/or the Employee Retirement Income Security Act of 1974 (ERISA).
We do not expect to incur federal, state or local income taxes on the earnings or realized capital gains attributable to the Separate Account. However, if we do incur such taxes in the future, we reserve the right to charge amounts allocated to the Separate Account for these taxes.
To the extent permitted under federal tax law, we may claim the benefit of the corporate dividends received deduction and of certain foreign tax credits attributable to taxes paid by certain of the Investment Portfolios to foreign jurisdictions.
For federal tax purposes, the term “spouse” refers to the person to whom you are lawfully married, regardless of sex. The term “spouse” generally will not include individuals who are in a registered domestic partnership or civil union not denominated as marriage under state or other applicable law.
Non-Qualified Contracts
Introduction
This discussion assumes the contract is a “non-qualified” annuity contract for federal income tax purposes, that is, a Contract not held in a tax qualified plan. Tax qualified plans include arrangements described in Code Sections 401(a), 401(k), 403(a), 403(b) or tax sheltered annuities (TSA), 408 or “IRAs” (including SEP and SIMPLE IRAs), 408A or “Roth IRAs” and 457(b) plans. Contracts owned through such plans are referred to below as “Qualified Contracts.”
Accumulation
Generally, an Owner of a Non-Qualified Contract is not taxed on increases in the value of the contract until there is a distribution from the contract, i.e. surrender, partial withdrawal, income payment, or commutation. This deferral of taxation on accumulated value in the contract is limited to contracts owned by or held for the benefit of “natural persons.” A contract will be treated as held by a
natural person if the nominal Owner is a trust or other entity which holds the contract as an agent for the exclusive benefit of a natural person.
In contrast, a contract owned by other than a “natural person,” such as a corporation, partnership, trust, or other entity (other than a trust holding the Contract as an agent for a natural person), will be taxed currently on the increase in accumulated value in the contract in the year earned. Note that in this regard, an employer which is the Owner of an annuity contract under a non-qualified deferred compensation arrangement for its employees, or others, is considered a non-natural Owner and any annual increase in the Account Value will be subject to current income taxation.
Surrenders or Withdrawals – Early Distribution
If you take a withdrawal from your contract, or surrender your contract prior to the date you commence taking annuity or “income” payments (the “Annuity Starting Date”), the amount you receive will generally be treated first as coming from earnings, if any, (and thus subject to income tax) and then from your Purchase Payments (which are not subject to income tax). If the accumulated value is less than your Purchase Payments upon surrender of your contract, your ability to claim any unrecovered Purchase Payments on your federal income tax return as a miscellaneous itemized deduction may not be allowed, so consult your tax adviser.
The portion of any withdrawal from an annuity contract that is subject to income tax will also be subject to a 10% federal income tax penalty for “early” distribution if such withdrawal is taken prior to you reaching age 59 1∕2, unless an exception applies. Exceptions include distributions made:
(a) on account of your death or disability,
(b) as part of a series of substantially equal periodic payments made at least annually payable for your life (or life expectancy) or joint lives (or joint life expectancies) of you and your designated Beneficiary, or
(c) under certain immediate income annuities.
If you receive systematic payments that you intend to qualify for the “substantially equal periodic payments” exception noted above, any modifications (except due to death or disability) to your payment before age 59 1∕2 or within five years after beginning these payments, whichever is later, will result in the retroactive imposition of the 10%
35
federal income tax penalty with interest. Such modifications may include but are not limited to additional Purchase Payments to the contract (including tax-free transfers or rollovers) and additional withdrawals from the contract.
Amounts received as a partial withdrawal may be fully includible in taxable income to the extent of gain in the contract.
If your contract has been purchased with an Optional Two Year Withdrawal Feature or is for a guaranteed period only (term certain) annuity, and is terminated as a result of the exercise of the withdrawal feature, the taxable portion of the payment will generally be the excess of the proceeds received over your remaining after-tax Purchase Payment.
Treatment of Separate Account Charges
It is possible that at some future date the Internal Revenue Service (IRS) may consider that contract charges attributable to certain guaranteed death benefits are to be treated as distributions from the contract to pay for such non-annuity benefits. Currently, these charges are considered to be an intrinsic part of the contract and we do not report these as taxable income. However, if this treatment changes in the future, the charge could also be subject to a 10% federal income tax penalty as an early distribution, as described above.
Aggregation
If you purchase two or more deferred annuity contracts after October 21, 1988, from us (or our predecessors or affiliates) during the same calendar year, the law requires that all such contracts must be treated as a single contract for purposes of determining whether any payments not received as an annuity (e.g., withdrawals) will be includible in income. Aggregation could affect the amount of a withdrawal that is taxable and subject to the 10% federal income tax penalty described above. Since the IRS may require aggregation in other circumstances as well, you should consult a tax adviser if you are purchasing more than one annuity contract from the same insurance company in a single calendar year. Aggregation does not affect distributions paid in the form of an annuity (see “Taxation of Payments in Annuity Form” below).
Exchanges/Transfers
The annuity contract may be exchanged in whole or in part for another annuity contract or a long-term care insurance policy. An exchange in whole of an annuity contract for
another annuity contract or for a qualified long-term care insurance policy will generally be a tax-free transaction under Section 1035 of the Code. The partial exchange of an annuity contract may be a tax-free transaction provided that, among other prescribed IRS conditions, no amounts are distributed from either contract involved in the exchange for 180 days following the date of the exchange – other than Annuity Payments made for life, joint lives, or for a term of 10 years or more. If a distribution is made from either contract within the 180-day period after the exchange or the exchange otherwise fails to satisfy other IRS prescriptions, the IRS reserves the right to characterize the exchange in a manner consistent with its substance, based on general tax principles and all the facts and circumstances. For instance, such distribution from either contract may be taxable to the extent of the combined gain attributable to both contracts, or only to the extent of your gain in the contract from which the distribution is paid. Some of the ramifications of a partial exchange remain unclear. You should consult your tax adviser concerning potential tax consequences prior to any partial exchange or split of annuity contracts.
A transfer of ownership of the contract, or the designation of an Annuitant or other Beneficiary who is not also the contract Owner, may result in income or gift tax consequences to the contract Owner. You should consult your tax adviser if you are considering such a transfer or assignment.
Death Benefits
For Non-Qualified Contracts, the death benefit is taxable to the recipient in the same manner as if paid to the contract Owner (under the rules for withdrawals or income payments, whichever is applicable).
After your death, any death benefit determined under the contract must be distributed according to certain rules. The method of distribution that is required depends on whether you die before or after the Annuity Starting Date.
If you die on or after the Annuity Starting Date, the remaining portion of the interest in the contract must be distributed at least as rapidly as under the method of distribution being used as of the date of death.
If you die before the Annuity Starting Date, the entire interest in the contract must be distributed within five (5) years after the date of death, or as periodic payments over a period not extending beyond the life or life expectancy of the designated Beneficiary (provided such
36
payments begin within one year of your death) and the Beneficiary must be a natural person.
Additionally, if the annuity is payable to (or for the benefit of) your surviving spouse, that portion of the contract may be continued with your spouse as the Owner.
For contracts owned by a non-natural person, the required distribution rules apply upon the death of the Annuitant. If there is more than one Annuitant of a contract held by a non-natural person, then such required distributions will be triggered by the death of the first co-Annuitant.
Investor Control
In certain circumstances, Owners of Non-Qualified variable annuity contracts have been considered to be the owners of the assets of the underlying Separate Account for federal income tax purposes due to their ability to exercise investment control over those assets. When this is the case, the contract Owners have been currently taxed on income and gains attributable to the variable account assets. There is little guidance in this area, and some features of the contract, such as the number of Investment Portfolios available and the flexibility of the contract Owner to allocate Purchase Payments and transfer amounts among the Investment Portfolios have not been addressed in public rulings. While we believe that the contract does not give the contract Owner investment control over Separate Account assets, we reserve the right to modify the contract as necessary to prevent a contract Owner from being treated as the owner of the Separate Account assets supporting the contract.
Taxation of Payments in Annuity Form
Payments received from the contract in the form of an annuity are taxable as ordinary income to the extent they exceed the portion of the payment determined by applying the exclusion ratio to the entire payment. The exclusion ratio is determined at the time the contract is annuitized (i.e., the accumulated value is converted to an annuity form of distribution). Generally, the applicable exclusion ratio is your investment in the contract divided by the total payments expected to be received based on IRS factors, such as the form of annuity and mortality. The excludable portion of each Annuity Payment is the return of investment in the contract and it is excludable from your taxable income until your investment in the contract is fully recovered. We will make this calculation for you. However, it is possible that the IRS could conclude that the taxable portion of income payments under a Non-Qualified
Contract is an amount greater – or less — than the taxable amount determined by us and reported by us to you and the IRS.
Once you have recovered the investment in the contract, further Annuity Payments are fully taxable.
If you die before your investment in the contract is fully recovered, the balance of your investment may be deducted on your last tax return, or if Annuity Payments continue after your death, the balance may be recovered by your Beneficiary.
The IRS has not furnished explicit guidance as to how the excludable amount is to be determined each year under variable income annuities that permit transfers between a fixed annuity option and variable investment options, as well as transfers between investment options after the Annuity Starting Date.
Once Annuity Payments have commenced, you may not be able to transfer to another Non-Qualified Contract or a long-term care contract as part of a tax-free exchange.
If the contract allows, you may elect to convert less than the full value of your contract to an annuity form of pay-out (i.e., “partial annuitization”). In this case, your investment in the contract will be pro-rated between the annuitized portion of the contract and the deferred portion. An exclusion ratio will apply to the Annuity Payments as described above, provided the annuity form you elect is payable for at least 10 years or for the life of one or more individuals.
3.8% Tax on Net Investment Income
Federal tax law imposes a 3.8% Net Investment Income tax on the lesser of:
(1) the taxpayer’s “net investment income,” (from non-qualified annuities, interest, dividends, and other investments, offset by specified allowable deductions), or
(2) the taxpayer’s modified adjusted gross income in excess of a specified income threshold ($250,000 for married couples filing jointly and qualifying surviving spouses, $125,000 for married couples filing separately, and $200,000 for single filers).
“Net investment income” in Item 1 above does not include distributions from tax qualified plans (i.e., arrangements described in Code Sections 401(a), 403(a), 403(b), 408, 408A, or 457(b)), but such income will increase modified adjusted gross income in Item 2 above.
37
You should consult your tax adviser regarding the applicability of this tax to income under your annuity contract.
Puerto Rico Tax Considerations
The Puerto Rico Internal Revenue Code of 2011 (the “2011 PR Code”) taxes distributions from Non-Qualified Contracts differently than in the U.S.
Distributions that are not in the form of an annuity (including partial surrenders and period certain payments) are treated under the 2011 PR Code first as a return of investment. Therefore, a substantial portion of the amounts distributed generally will be excluded from gross income for Puerto Rico tax purposes until the cumulative amount paid exceeds your tax basis.
The amount of income on annuity distributions in annuity form (payable over your lifetime) is also calculated differently under the 2011 PR Code. Since the U.S. source income generated by a Puerto Rico bona fide resident is subject to U.S. income tax and the IRS issued guidance in 2004 which indicated that the income from an annuity contract issued by a U.S. life insurer would be considered U.S. source income, the timing of recognition of income from an annuity contract could vary between the two jurisdictions. Although the 2011 PR Code provides a credit against the Puerto Rico income tax for U.S. income taxes paid, an individual may not get full credit because of the timing differences.
You should consult with a personal tax adviser regarding the tax consequences of purchasing an annuity contract and/or any proposed distribution, particularly a partial distribution or election to annuitize if you are a resident of Puerto Rico.
Qualified Contracts
Introduction
The contract may be purchased through certain types of retirement plans that receive favorable treatment under the Code (“tax qualified plans” or “qualified plans”). Tax-qualified plans include arrangements described in Code Sections 401(a), 401(k), 403(a), 403(b) or tax sheltered annuities (TSA), 408 or “IRAs” (including SEP and SIMPLE IRAs), 408A or “Roth IRAs” and 457(b) plans. Extensive special tax rules apply to qualified plans and to the annuity contracts used in connection with these plans. Therefore, the following discussion provides only general information about the use of the contract with the various
types of qualified plans. Adverse tax consequences may result if you do not ensure that contributions, distributions and other transactions with respect to the contract comply with the law.
The rights to any benefit under the plan will be subject to the terms and conditions of the plan itself as well as the terms and conditions of the contract.
We exercise no control over whether a particular retirement plan or a particular contribution to the plan satisfies the applicable requirements of the Code, or whether a particular individual is entitled to participate or benefit under a plan.
All qualified plans and arrangements receive tax deferral under the Code. Since there are no additional tax benefits in funding such retirement arrangements with an annuity, there should be reasons other than tax deferral for acquiring the annuity within the plan. Such non-tax benefits may include additional insurance benefits, such as the availability of a guaranteed income for life.
A contract may also be available in connection with an employer’s non-qualified deferred compensation plan or qualified governmental excess benefit arrangement to provide benefits to certain employees in the plan. The tax rules regarding these plans are complex. Please consult your tax adviser about your particular situation.
Accumulation
The tax rules applicable to qualified plans vary according to the type of plan and the terms and conditions of the plan itself. Both the amount of the contribution that may be made and the tax deduction or exclusion that you may claim for that contribution under qualified plans are limited under the Code. See the SAI for a description of qualified plan types and annual current contribution limitations, which are subject to change from year-to-year.
Purchase payments or contributions to IRAs or tax qualified retirement plans of an employer may be taken from current income on a before tax basis or after tax basis. Purchase payments made on a “before tax” basis entitle you to a tax deduction or are not subject to current income tax. Purchase payments made on an “after tax” basis do not reduce your taxable income or give you a tax deduction. Contributions may also consist of transfers or rollovers as described below and are not subject to the annual limitations on contributions.
An IRA Contract will accept as a single Purchase Payment a transfer or rollover from another IRA (including a SEP or
38
SIMPLE IRA) or rollover from an eligible retirement plan of an employer (i.e., 401(a), 401(k), 403(a), 403(b), or governmental 457(b) plan). A rollover or transfer from a SIMPLE IRA is allowed provided that the taxpayer has participated in such arrangement for at least two years. As part of the single Purchase Payment, the IRA contract will also accept an IRA contribution subject to the Code limits for the year of purchase.
For income annuities established as “pay-outs” of SIMPLE IRAs, the contract will only accept a single Purchase Payment consisting of a transfer or rollover from another SIMPLE IRA. For income annuities established in accordance with a distribution option under a retirement plan of an employer (e.g., 401(a), 401(k), 403(a), 403(b), or 457(b) plan), the contract will only accept as its single Purchase Payment a transfer from such employer retirement plan.
Taxation of Annuity Distributions
If contributions are made on a “before tax” basis, you generally pay income taxes on the full amount of money you receive under the contract. Withdrawals attributable to any after-tax contributions are basis in the contract and not subject to income tax (except for the portion of the withdrawal allocable to earnings, if any).
Under current federal income tax rules, the taxable portion of distributions under annuity contracts and qualified plans (including IRAs) is not eligible for the reduced tax rate applicable to long-term capital gains and qualifying dividends.
If you meet certain requirements, your Roth IRA, Roth 403(b) and Roth 401(k) earnings can be received free of federal income taxes.
With respect to IRA contracts, we will withhold a portion of the taxable amount of your withdrawal for income taxes, unless you elect otherwise. The amount we will withhold is determined by the Code.
Withdrawals Prior to Age 59 1∕2
A taxable withdrawal from a Qualified Contract which is subject to income tax may also be subject to a 10% federal income tax penalty for “early” distribution if taken prior to age 59 1∕2, unless an exception described below applies. The penalty rate is 25% for SIMPLE IRA plan contracts if the withdrawal occurs within the first 2 years of your participation in the plan.
Exceptions to the early distribution penalty for qualified plans include withdrawals or distributions made:
(a) on account of your death or disability,
(b) as part of a series of substantially equal periodic payments payable for your life (or life expectancy) or joint lives (or joint life expectancies) of you and your designated Beneficiary and (in the case of certain employer-sponsored qualified plans) you are separated from employment,
(c) on separation from service after age 55. This rule does not apply to IRAs (including SEPs and SIMPLE IRAs).
(d) pursuant to a qualified domestic relations order (“QDRO”). This rule does not apply to IRAs (including SEPs and SIMPLE IRAs).
(e) to pay IRS levies (and made after December 31, 1999),
(f) to pay deductible medical expenses, or
(g) in the case of IRAs only, to pay for medical insurance (if you are unemployed), qualified higher education expenses, or for a qualified first-time home purchase up to $10,000.
Other exceptions may be applicable under certain circumstances and special rules apply or may become applicable in connection with the exceptions enumerated above. Other exceptions include certain provisions under the SECURE 2.0 Act of 2022 which may provide the ability to recontribute an “early” distribution to an IRA or employer-sponsored qualified plan (subject to the provisions of the Code, the qualified plan/IRA, the Contract and our administrative rules). You should consult your tax adviser to confirm whether an exception applies.
If you receive systematic payments or any other payments that you intend to qualify for the “substantially equal periodic payments” exception noted above, any modifications (except due to death or disability) to your payment before age 59 1∕2 or within five years after beginning these payments, whichever is later, will result in the retroactive imposition of the 10% federal income tax penalty with interest. Such modifications may include but are not limited to additional Purchase Payments to the contract (including tax-free transfers or rollovers) and additional withdrawals from the contract.
The 10% federal income tax penalty on early distribution does not apply to governmental 457(b) plan contracts. However, it does apply to distributions from 457(b) plans of employers which are state or local governments to the
39
extent that the distribution is attributable to rollovers accepted from other types of eligible retirement plans.
Commutation Features Under Income Payment Types
Please be advised that the tax consequences resulting from the election of income payment types containing a commutation feature (a feature that allows the Owner to receive a lump sum of the present value of future Annuity Payments) are uncertain and the IRS may determine that the taxable amount of income payments and withdrawals received for any year could be greater than or less than the taxable amount reported by us. The exercise of the commutation feature also may result in adverse tax consequences including:
•The imposition of a 10% federal income tax penalty on the taxable amount of the commuted value, if the taxpayer has not attained age 59 1∕2 at the time the withdrawal is made. This 10% federal income tax penalty is in addition to the ordinary income tax on the taxable amount of the commuted value.
•The retroactive imposition of the 10% federal income tax penalty on income payments received prior to the taxpayer attaining age 59 1∕2.
•The possibility that the exercise of the commutation feature could adversely affect the amount excluded from federal income tax under any income payments made after such commutation.
A payee should consult with his or her own tax adviser prior to electing to annuitize the contract and prior to exercising any commutation feature under an income payment type.
Rollovers and Transfers
Your contract is non-forfeitable (i.e., not subject to the claims of your creditors) and non-transferable (i.e., you may not transfer it to someone else).
Nevertheless, contracts held in certain employer plans subject to ERISA may be transferred in part pursuant to a QDRO.
Under certain circumstances, you may be able to transfer amounts distributed from your contract to another eligible retirement plan or IRA. For 457(b) plans maintained by non-governmental employers, if certain conditions are met, amounts may be transferred into another 457(b) plan maintained by a non-governmental employer.
You may make rollovers and direct transfers into your SIMPLE IRA annuity contract from another SIMPLE IRA annuity contract or account. Rollovers from another qualified plan can generally be made to your SIMPLE IRA after you have participated in the SIMPLE IRA for at least two years.
Rollovers and direct transfers from a SIMPLE IRA can only be made to another SIMPLE IRA or account during the first two years that you participate in the SIMPLE IRA plan. After this two-year period, rollovers and transfers may be made from your SIMPLE IRA into a Traditional IRA or account, as well as into another SIMPLE IRA.
Federal income tax law allows you to make only one rollover from an IRA to another (or the same) IRA in any 12-month period, regardless of the number of IRAs you own. Generally, this limit does not apply to trustee-to-trustee transfers between IRAs. Because the rollover rules are complex, please consult with your tax advisor before making an IRA rollover.
Generally, a distribution may be eligible for rollover but certain types of distributions cannot be rolled over, such as distributions received on account of:
(a) minimum distribution requirements,
(b) financial hardship; or
(c) for a period of ten or more years or for life.
20% Withholding on Eligible Rollover Distributions
For certain qualified employer plans, we are required to withhold 20% of the taxable portion of your withdrawal that constitutes an “eligible rollover distribution” for federal income taxes. The amount we withhold is determined by the Code. You may avoid withholding if you directly transfer a withdrawal from this contract to another IRA or other qualified plan. Similarly, you may be able to avoid withholding on a transfer into this contract from an existing qualified plan you may have with another provider by arranging to have the transfer made directly to us. For taxable withdrawals that are not “eligible rollover distributions,” the Code imposes different withholding rules to determine the withholding percentage.
Death Benefits
The death benefit in a Qualified Contract is taxable to the recipient in the same manner as if paid to the contract Owner or plan participant (under the rules for withdrawals or income payments, whichever is applicable).
40
Required Minimum Distribution (RMD) amounts are required to be distributed from a Qualified annuity Contract (including a contract issued as a Roth IRA) following your death. Congress recently changed the RMD rules for individuals who die after 2019. The after-death RMD rules are complex, and you should consult your tax adviser about how they may apply to your situation.
Effective January 1, 2020, when an IRA owner or participant in a defined contribution plan dies, any remaining interest generally must be distributed within 10 years (or in some cases five years) after his or her death, unless an exception applies. An exception permits an “eligible designated beneficiary” to take distributions over life or a period not exceeding life expectancy, subject to special rules and limitations. An “eligible designated beneficiary” includes: the IRA owner/participant’s spouse or minor child (until the child reaches age of majority), certain disabled or chronically ill individuals, and an individual who is not more than 10 years younger than the IRA owner/participant. We may limit any payment option over life, or a period not exceeding life expectancy, to certain categories of eligible designed beneficiary.
Generally, distributions under this exception must start by the end of the year following your death. However, if your surviving spouse is the sole designated beneficiary, distributions may generally be delayed until December 31 of the year you would have attained the Applicable Age (as defined in the chart below), if your contract permits.
If you die after Annuity Payments have already begun under a Qualified Contract, any remaining payments under the contract also must be made in accordance with the RMD rules. In some cases, those rules may require that the remaining payments be made over a shorter period than originally elected or otherwise adjusted to comply with the tax law.
Regardless of whether you die before or after your Required Beginning Date, the following will be applicable:
If your surviving spouse is the sole designated beneficiary of your Traditional or Roth IRA, then your surviving spouse may elect to treat the Traditional or Roth IRA as his or her own.
Your designated Beneficiary is the person to whom benefit rights under the contract pass by reason of death. The Beneficiary generally must be a natural person in order to elect a periodic payment option based on life expectancy or
a period exceeding five years. Different tax rules may apply if your Beneficiary is not a natural person, such as your estate.
Your spouse may be able to rollover the death proceeds into another eligible retirement plan in which he or she participates, if permitted under the receiving plan, or he or she may elect to rollover the death proceeds into his or her own IRA, or he or she may elect to transfer the death proceeds into an inherited IRA.
If your Beneficiary is not your spouse and your plan and contract permit, your Beneficiary may be able to rollover the death proceeds via a direct trustee-to-trustee transfer into an inherited IRA. However, a non-spouse Beneficiary may not treat the inherited IRA as his or her own IRA.
Additionally, for contracts issued in connection with qualified plans subject to ERISA, the spouse or ex-spouse of the participant may have rights in the contract. In such a case, the participant may need the consent of the spouse or ex-spouse to change annuity options or make a withdrawal from the contract.
Applicable Age for Required Minimum Distributions (RMD)
As used in the prospectus, “Applicable Age” means the following: 
If you…
Your “Applicable
Age” is..
When born on or before June 30,
1949
70 1∕2
When born on or after July 1,
1949 (and attain age 72 prior to
January 1, 2023)
72
Attain age 72 on or after
January 1, 2023 (and attain
age 73 on or before December 31,
2032)
73
Attain age 73 on or after
January 1, 2033
75
Required Minimum Distributions
Generally, you must begin receiving RMD amounts from your Qualified Contract by the Required Beginning Date. Generally, for retirement plans, the “Required Minimum Date” is April 1 following the later of:
(a) the calendar year in which you reach the Applicable Age, or
41
(b) the calendar year you retire, provided you do not own more than 5% of the outstanding stock, capital, or profits of your employer.
For IRAs (including SEPs and SIMPLEs), the Required Beginning Date by which you must begin receiving withdrawals is the year in which you attain the Applicable Age, even if you have not retired, taking your first distribution no later than April 1 of the year after you reach the Applicable Age.
For all subsequent years, including the first year in which you took your RMD by April 1, you must take the required minimum distribution for the year by December 31st. This will require you to take two distributions in the same calendar year if you wait to take your first distribution until April 1 of the year after attaining the Applicable Age.
A tax penalty (an excise tax) of up to 25% applies to the shortfall of any required minimum distribution you fail to receive.
You may not satisfy minimum distributions for one employer’s qualified plan (e.g., 401(a), 403(a), 457(b)) with distributions from another qualified plan of the same or a different employer. However, an aggregation rule does apply in the case of IRAs (including SEP and SIMPLE IRAs) or 403(b) plans. The minimum required distribution is calculated with respect to each IRA, but the aggregate distribution may be taken from any one or more of your IRAs/SEPs. Similarly, the amount of required minimum distribution is calculated separately with respect to each 403(b) arrangement, but the aggregate amount of the required distribution may be taken from any one or more of your 403(b) plan contracts. For SIMPLE IRAs, the aggregate amount of the required distribution may be taken from any one or more of your SIMPLE IRAs.
The regulations also require that the value of benefits under a deferred annuity including certain death benefits in excess of contract value must be added to the amount credited to your account in computing the amount required to be distributed over the applicable period. We will provide you with additional information regarding the amount that is subject to minimum distribution under this rule. You should consult your own tax adviser as to how these rules affect your own distribution under this rule.
If you intend to receive your minimum distributions in the form of Annuity Payments that are payable over the joint lives of you and a Beneficiary or over a guaranteed duration of more than 10 years, be advised that federal tax law may require that, after your death, any remaining
payments be made over a shorter period or be reduced after your death to satisfy the RMD rules and avoid the up to 25% excise tax. Other complex rules also apply to RMDs taken in the form of Annuity Payments. You should consult your own tax adviser as to how these rules affect your own contract.
Required minimum distribution rules that apply to other types of IRAs while you are alive do not apply to Roth IRAs. However, in general, the IRA post-death rules with respect to minimum distributions apply to beneficiaries of Roth IRAs. Effective in 2024, similar rules apply to Roth account balances maintained in employer-sponsored qualified plans. As a result, required minimum distribution rules that generally apply under an employer-sponsored qualified plan once you attain your Applicable Age, will not apply to any Roth account balance while you are alive. However, in general, post-death rules with respect to minimum distributions do apply to beneficiaries upon your death.
Additional Information Regarding TSA (ERISA and Non-ERISA) 403(b)
Special Rules Regarding Exchanges. In order to satisfy tax regulations, contract exchanges within a 403(b) plan after September 24, 2007, must, at a minimum, meet the following requirements: (1) the plan must allow the exchange; (2) the exchange must not result in a reduction in a participant’s or a Beneficiary’s accumulated benefit: (3) the receiving contract includes distribution restrictions that are no less stringent than those imposed on the contract being exchanged; and (4) if the issuer receiving the exchanges is not part of the plan, the employer enters into an agreement with the issuer to provide information to enable the contract provider to comply with Code requirements. Such information would include details concerning severance from employment, hardship withdrawals, loans and tax basis. You should consult your tax or legal counsel for any advice relating to contract exchanges or any other matter relating to these regulations.
Withdrawals. If you are under age 59 1∕2, you generally cannot withdraw money from your TSA contract unless the withdrawal:
(a)
related to Purchase Payments made prior to 1989 and pre-1989 earnings on those Purchase Payments;
(b)
is exchanged to another permissible investment under your 403(b) plan;
42
(c)
relates to contributions to an annuity contract that are not salary reduction elective deferrals, if your plan allows it;
(d)
occurs after you die, leave your job or become disabled (as defined by the Code);
(e)
is for financial hardship (but only to the extent of elective deferrals), if your plan allows it;
(f)
relates to distributions attributable to certain TSA plan terminations, if the conditions of the Code are met;
(g)
relates to rollover or after-tax contributions; or
(h)
is for the purchase of permissive service credit under a governmental defined benefit plan.
In addition, a Section 403(b) contract is permitted to distribute retirement benefits attributable to pre-tax contributions other than elective deferrals to the participant no earlier than upon the earlier of the participant’s severance from employment or upon the prior occurrence of some event, such as after a fixed number of years, the attainment of a stated age or disability.
Additional Information Regarding IRAs
Purchase Payments. Traditional IRA Purchase Payments (except for permissible rollovers and direct transfers) are limited in the aggregate to the lesser of 100% of compensation or the deductible amount established each year under the Code.A Purchase Payment up to the deductible amount can also be made for a non-working spouse provided the couple’s compensation is at least equal to their aggregate contributions. Individuals age 50 and older are permitted to make additional “catch-up” contributions if they have sufficient compensation. If you or your spouse are an active participant in a retirement plan of an employer, your deductible contributions may be limited. If you exceed Purchase Payment limits you may be subject to a tax penalty.
Roth IRA Purchase Payments for individuals are non-deductible (made on an “after tax” basis) and are limited to the lesser of 100% of compensation or the annual deductible IRA amount. Individuals age 50 and older can make an additional “catch-up” Purchase Payment each year (assuming the individual has sufficient compensation). You may contribute up to the annual Purchase Payment limit if your modified adjusted gross income does not exceed certain limits. If you exceed Purchase Payment limits, you may be subject to a tax penalty.
Inherited IRA. Subject to the provisions of the Code, the Contract and our administrative rules, we may make available an inherited IRA to (1) an individual non-spouse beneficiary, or (2) a surviving spouse beneficiary. Such beneficiaries are required to take required minimum distribution (RMD) in accordance with federal tax law. For example, if the inherited IRA is established as a ten-year inherited IRA, federal tax law generally requires a beneficiary to take annual RMD withdrawals from the inherited IRA if the deceased IRA owner/qualified plan participant died on or after their Required Beginning Date (RBD). All inherited IRA contracts established as a ten-year inherited IRA also must be completely distributed by the end of the calendar year containing the tenth anniversary of the original IRA owner’s/qualified plan participant’s date of death. Because federal tax law and its RMD rules are complex, beneficiaries should consult a qualified tax adviser.
Withdrawals. If and to the extent that Traditional IRA Purchase Payments are made on an “after tax” basis, withdrawals would be included in income except for the portion that represents a return of non-deductible Purchase Payments. This portion is generally determined based upon the ratio of all non-deductible Purchase Payments to the total value of all your Traditional IRAs (including SEP IRAs and SIMPLE IRAs). We withhold a portion of the amount of your withdrawal for income taxes, unless you elect otherwise. The amount we withhold is determined by the Code.
Generally, withdrawal of earnings from Roth IRAs are free from federal income tax if: (1) they are made at least five taxable years after the tax year for which you made your first Purchase Payment to a Roth IRA; and (2) they are made on or after the date you reach age 59 1∕2 or upon your death, disability or for a qualified first-home purchase (up to $10,000). Withdrawals from a Roth IRA are made first from Purchase Payments and then from earnings. We may be required to withhold a portion of your withdrawal for income taxes, unless you elect otherwise. The amount will be determined by the Code.
Conversion. Traditional IRAs may be converted to Roth IRAs. Except to the extent you have non-deductible contributions, the amount converted from an existing Traditional IRA into a Roth IRA is taxable. Generally, the 10% federal income tax penalty does not apply. However, the taxable amount to be converted must be based on the fair market value of the entire annuity contract being converted into a Roth IRA. Such fair market value, in
43
general, is to be determined by taking into account the value of all benefits in addition to the Account Value; as well as adding back certain loads and charges incurred during the prior twelve month period. Your contract may include such benefits and applicable charges. Accordingly, if you are considering such conversion of your annuity contract, please consult your tax adviser. The taxable amount may exceed the Account Value at the date of conversion.
Prior to 2018, contributions made to a Traditional IRA that were converted to a Roth IRA could be recharacterized as made back to the Traditional IRA, if certain conditions were met. Under a provision of the Tax Cuts and Jobs Act, recharacterization cannot be used to unwind a conversion from a Traditional IRA to a Roth IRA for taxable years beginning after December 31, 2017. For conversions made to a Roth IRA in 2017, the IRS has issued guidance allowing recharacterizations to be made in 2018.
Distinction for Puerto Rico Code
An annuity contract may be purchased by an employer for an employee under a qualified pension, profit sharing, stock bonus, annuity, or a “cash or deferred” arrangement plan established pursuant to Section 1081.01 of the 2011 PR Code. To be tax qualified under the 2011 PR Code, a plan must comply with the requirements of Section 1081.01(a) of the 2011 PR Code which includes certain participation requirements, among other requirements. A trust created to hold assets for a qualified plan is exempt from tax on its investment income.
Contributions. The employer is entitled to a current income tax deduction for contributions made to a qualified plan, subject to statutory limitations on the amount that may be contributed each year. The plan contributions by the employer are not required to be included in the current income of the employee.
Distributions. Any amount received or made available to the employee under the qualified plan is includible in the gross income of the employee in the taxable year in which received or made available. In such case, the amount paid or contributed by the employer shall not constitute consideration paid by the employee for the contract for purposes of determining the amount of Annuity Payments required to be included in the employee’s gross income. Thus, amounts actually distributed or made available to any employee under the qualified plan will be included in their entirety in the employee’s gross income. The value of accrued benefits in a qualified retirement plan with respect
to which the special 8% tax under Puerto Rico Act No. 77-2014 was prepaid will be considered as part of the participant’s tax basis in his retirement plan account. Thus, any distributions attributable to the benefits for which such taxes were prepaid will not be subject to income taxes when the same are subsequently received by the participant. However, the investment income and the appreciation in value, if any, accrued on the benefits with respect to which the special tax was prepaid, will be taxed as provided by the tax rules in effect at the time of distribution. Lump-sum proceeds from a Puerto Rico qualified retirement plan due to separation of employment or termination of a retirement plan will generally be treated as ordinary income but will be subject to a withholding tax rate of 20%.A special withholding tax rate of 10% may apply instead, if the plan satisfies the following requirements:
(1) the plan’s trust is organized under the laws of Puerto Rico, or has a Puerto Rico resident trustee and uses such trustee as paying agent; and
(2) 10% of all plan’s trust assets (calculated based on the average balance of the investments of the trust) attributable to participants who are Puerto Rico residents must be invested in “property located in Puerto Rico” for a three-year period.
If these two requirements are not satisfied, the distribution will generally be subject to the 20% tax rate. The three-year period includes the year of the distribution and the two immediately preceding years. In the case of a defined contribution plan that maintains separate accounts for each participant, the described 10% investment requirement may be satisfied in the accounts of a participant that chooses to invest in such fashion rather than at the trust level. Property located in Puerto Rico includes shares of stock of a Puerto Rico registered investment company, fixed or variable annuities issued by a domestic insurance company or by a foreign insurance corporation that derives more than 80% of its gross income from sources within Puerto Rico, and bank deposits. The 2011 PR Code does not impose a penalty tax in cases of early (premature) distributions from a qualified plan.
In the case of distributions from a qualified plan in the form of annuity or installments as a result of termination of employment, amounts received are taxable in an amount equal to 3% of the after-tax contributions not previously distributed, which would be considered the tax cost. The remaining portion is not taxable until you have recovered
44
the total after-tax contributions made to the qualified plan. You may be able to exclude from gross income up to $11,000, if you are less than 60 years of age, or up to $15,000, if you are at least 60 years of age, of the taxable portion of the installment payments received every year. The above-described distributions that exceed the amount of $35,000 during a taxable year (amount which includes the annual exclusion of $15,000) for retirees that are 60 years old or older, and $31,000 (amount which includes the annual exclusion of $11,000) for other retirees plus the recovery of the consideration paid for the annuity following the 3% recognition of income rule described above, will generally constitute ordinary income subject to a 10% withholding tax.
Upon the occurrence of a “Declared Disaster”, like a hurricane, Retirement Plans are allowed to make Eligible Distributions to a participant resident of Puerto Rico who requests the same. The Eligible Distribution may not exceed $100,000, be made during a period of time to be identified by the Puerto Rico Treasury through administrative guidance and be used to cover damages or losses suffered, and extraordinary expenses incurred by the individual as a result of the Declared Disaster. The first $10,000 will be exempted from income taxation, including the alternate basic tax, and amounts exceeding $10,000 will be subject to a 10% income tax to be withheld at the source, in lieu of any other income tax, including the alternate basic tax.
You should consult with a personal tax adviser regarding the tax consequences of purchasing an annuity contract and/or any proposed distribution if you are a resident of Puerto Rico.
In contrast, if qualified retirement income, as defined in 4 U.S.C. Section 114(a), is distributed by a dual qualified plan (i.e., a plan qualified under Code Section 401 and under Section 1081.01 of the 2011 PR Code that is funded through a U.S. trust) to a non-Puerto Rico resident, such distribution is not subject to Puerto Rico income tax. The individual must not be a Puerto Rico resident at the time of the distribution and certain requirements must be satisfied by him/her for the distribution to receive this tax treatment.
Rollover. Deferral of the recognition of income continues upon the receipt of a distribution by a participant from a qualified plan, if the distribution is contributed to another qualified retirement plan or traditional individual retirement account for the employee’s benefit no later than sixty (60) days after the distribution.
ERISA Considerations. In the context of a Puerto Rico qualified retirement plan trust, the IRS has held that the transfer of assets and liabilities from a qualified retirement plan trust under the Code to that type of plan would generally be treated as a distribution includible in gross income for U.S. income tax purposes even if the Puerto Rico retirement plan is a plan described in ERISA Section 1022(i)(1). By contrast, a transfer from a qualified retirement plan trust under the Code to a Puerto Rico qualified retirement plan trust that has made an election under ERISA Section 1022(i)(2) is not treated as a distribution from the transferor plan for U.S. income tax purposes because a Puerto Rico retirement plan that has made an election under ERISA Section 1022(i)(2) is treated as a qualified retirement plan for purposes Code Section 401(a). The IRS has determined that the above described rules prescribing the inclusion in income of transfers of assets and liabilities to a Puerto Rico retirement plan trust described in ERISA Section 1022(i)(1) would be applicable to transfers taking effect after December 31, 2012. Notwithstanding the above, the IRS has held that a Puerto Rico retirement plan described in ERISA Section 1022(i)(1) may participate in a 81-100 group trust because it permits said plan to diversify its investments without adverse tax consequences to the group trust or its investors.
OTHER INFORMATION
Brighthouse Life Insurance Company
Brighthouse Life Insurance Company is a Delaware stock life insurance company originally incorporated in Connecticut in 1863. BLIC is licensed to conduct business in all states of the United States (except New York), the District of Columbia, the Bahamas, Guam, Puerto Rico, the British Virgin Islands and the U.S. Virgin Islands. BLIC is an indirect wholly-owned subsidiary of, and ultimately controlled by, Brighthouse Financial, Inc. (“BHF”), a publicly-traded company. BHF, through its subsidiaries and affiliates, is one of the largest providers of annuities and life insurance in the U.S. BLIC’s executive offices are located at 11225 North Community House Road, Charlotte, NC 28277.
On November 6, 2025, BHF and Aquarian Capital LLC (“Aquarian”) announced that they had entered into a definitive agreement under which an affiliate of Aquarian will acquire BHF. This transaction is subject to the satisfaction or waiver of customary closing conditions, including receipt of applicable regulatory approvals.
45
Subject to such approvals and the satisfaction or waiver of the other conditions, the transaction is expected to be consummated in 2026.
Upon the consummation of the transaction, Aquarian will become the ultimate parent of BHF and BLIC will remain an indirect wholly-owned subsidiary of BHF. Although Aquarian will replace BHF as BLIC’s ultimate parent, BLIC will continue in its present role as the issuer of your Contract. All of your rights and benefits under your Contract and BLIC’s obligations under the Contract will remain unchanged.
Founded in 2017, Aquarian Capital is a diversified global holding company with a strategic portfolio of insurance and asset management solutions. Aquarian is headquartered in New York, NY.
The Separate Account
We have established a Separate Account, Brighthouse Variable Annuity Account C (Separate Account), to hold the assets that underlie the contracts. The Board of Directors of MetLife Investors Insurance Company (MetLife Investors) adopted a resolution to establish the Separate Account under Missouri insurance law on February 24, 1987. On November 14, 2014, following the close of business MetLife Investors merged into BLIC and the Separate Account became a separate account of BLIC. We have registered the Separate Account with the SEC as a unit investment trust under the Investment Company Act of 1940. The Separate Account is divided into subaccounts.
The Separate Account’s assets are solely for the benefit of those who invest in the Separate Account and no one else, including our creditors. The assets of the Separate Account are held in our name on behalf of the Separate Account and legally belong to us. All the income, gains and losses (realized or unrealized) resulting from these assets are credited to or charged against the contracts issued from this Separate Account without regard to our other business.
We reserve the right to transfer assets of the Separate Account to another account, and to modify the structure or operation of the Separate Account, subject to necessary regulatory approvals. If we do so, we will notify you of any such changes and we guarantee that the modification will not affect your Account Value.
We are obligated to pay all money we owe under the contracts — such as death benefits and income payments — even if that amount exceeds the assets in the Separate Account. Any such amount that exceeds the assets
in the Separate Account is paid from our general account. Any amount under any optional death benefit that exceeds the assets in the Separate Account is also paid from our general account. Benefit amounts paid from the general account are subject to our financial strength and claims paying ability and our long term ability to make such payments. We issue other annuity contracts and life insurance policies where we pay all money we owe under those contracts and policies from our general account. BLIC is regulated as an insurance company under state law, which generally includes limits on the amount and type of investments in our general account. However, there is no guarantee that we will be able to meet our claims paying obligations; there are risks to purchasing any insurance product.
The investment advisers to certain of the Investment Portfolios offered with the contracts or with other variable annuity contracts issued through the Separate Account may be regulated as Commodity Pool Operators. While it does not concede that the Separate Account is a commodity pool, BLIC has claimed an exclusion from the definition of the term “commodity pool operator” under the Commodities Exchange Act (CEA), and is not subject to registration or regulation as a pool operator under the CEA.
Distributor
We have entered into a distribution agreement with our affiliate, Brighthouse Securities, LLC (“Distributor”), 11225 North Community House Road, Charlotte, NC 28277, for the distribution of the contracts. Prior to March 6, 2017, the distributor of the contracts was MetLife Investors Distribution Company. Distributor is a member of the Financial Industry Regulatory Authority (“FINRA”). FINRA provides background information about broker-dealers and their registered representatives through FINRA BrokerCheck. You may contact the FINRA BrokerCheck Hotline at 1-800-289-9999, or log on to www.finra.org. An investor brochure that includes information describing FINRA BrokerCheck is available through the Hotline or on-line.
We and Distributor have entered into selling agreements with other broker-dealers (“selling firms”) for the sale of the contracts. We pay compensation to Distributor for sales of the contracts by selling firms. We also pay amounts to Distributor that may be used for its operating and other expenses, including sales distribution expenses.
46
Selling Firms
We and Distributor have entered into selling agreements with selling firms for the sale of the contracts. All selling firms receive commissions, and they may receive some form of non-cash compensation. These commissions and other incentives or payments are not charged directly to contract owners or the Separate Account. We intend to recoup commissions and other sales expenses through fees and charges deducted under the contract or from our General Account. A portion of the payments made to selling firms may be passed on to their sales representatives in accordance with their internal compensation programs. Those programs may also include other types of cash and non-cash compensation and other benefits.
Compensation Paid To All Selling Firms
We and Distributor pay compensation to all selling firms in the form of commissions and may provide certain types of non-cash compensation. The maximum commission payable for contract sales by selling firms is 5.75% of purchase payments, along with annual trail commissions up to 1.00% of account value (less purchase payments received within the previous 12 months). We also pay commissions when a contract owner elects to begin receiving regular income payments (referred to as annuity payments). (See “Annuity Payments (The Income Phase).”) Distributor may also provide non-cash compensation items that we may provide jointly with Distributor. Non-cash items include expenses for conference or seminar trips and certain gifts.
Replacement of Contracts and Other Exchanges
If you already own an insurance contract, some investment professionals may have a financial incentive to offer you a new contract in place of the one you own. You should only exchange a contract you already own if you determine, after comparing the features, fees, and risks of both contracts, and any fees or penalties to terminate your existing contract, that it is better for you to purchase the new contract rather than continue to own your existing contract.
Generally, you can exchange one variable annuity contract for another in a tax-free exchange under Section 1035 of
the Internal Revenue Code. Before making an exchange, you should compare both annuities carefully. You might have to pay a withdrawal charge on your old annuity, and there may be a new withdrawal charge period for the new annuity. Other charges may be higher (or lower) and the benefits may be different. Generally, it is not advisable to purchase a contract as a replacement for an existing variable annuity contract. Before you exchange another annuity for our contract, ask your financial representative whether the exchange would be advantageous, given the contract features, benefits and charges.
Requests and Elections
We will treat your request for a contract transaction, or your submission of a purchase payment, as received by us if we receive a request conforming to our administrative procedures or a payment at our Annuity Service Center before the close of regular trading on the New York Stock Exchange on that day (generally 4 p.m. Eastern Time). We will treat your submission of a purchase payment as received by us if we receive a payment at our Annuity Service Center (or a designee receives a payment in accordance with the designee’s administrative procedures) before the close of regular trading on the New York Stock Exchange on that day. If we receive the request, or if we (or our designee) receive the payment, after the close of trading on the New York Stock Exchange on that day, or if the New York Stock Exchange is not open that day, then the request or payment will be treated as received on the next day when the New York Stock Exchange is open. If you send your purchase payments or transaction requests to an address other than the one we have designated for receipt of such purchase payments or requests, we may return the purchase payment to you, or there may be a delay in applying the purchase payment or transaction to your contract.
Direct your requests and elections under your Contract, and inquiries about your Contract, to us as directed below, or by Internet at www.brighthousefinancial.com.
 
Death Claims
P.O. Box 4330
Clinton, IA 52733-4330
Fax: (877) 245-8163
Annuity Payments/Income
 
47
• Requests to receive regular income payments
(referred to as Annuity Payments)
P.O. Box 4365
Clinton, IA 52733-4365
Telephone: (800) 882-1292
Fax: (877) 246-8424
• Death Claims for Contracts receiving Annuity
Payments
P.O. Box 4364
Clinton, IA 52733-4364
Telephone: (800) 882-1292
Fax: (877) 245-8163
• General requests and elections for Contracts
receiving Annuity Payments
P.O. Box 4363
Clinton, IA 52733-4363
Telephone: (800) 882-1292
Fax: (877) 246-8424
All other requests and elections, including subsequent
Purchase Payments, and general inquiries
P.O. Box 4301
Clinton, IA 52733-4301
Telephone: (888) 243-1932
Fax: (877) 246-8424
Some of the requests for service that may be made by telephone or Internet include transfers of account value (see “Investment Options – Transfers – Transfers by Telephone or Other Means”) and changes to the allocation of future purchase payments (see “Purchase – Allocation of Purchase Payments”). We may from time to time permit requests for other types of transactions to be made by telephone or Internet. All transaction requests must be in good order. Contact us for further information. Some selling firms may restrict the ability of their financial representatives to convey transaction requests by telephone or Internet on your behalf.
We will use reasonable procedures such as requiring certain identifying information, tape recording the telephone instructions, and providing written confirmation of the transaction, in order to confirm that instructions communicated by telephone, fax, Internet or other means are genuine. Any telephone, fax or Internet instructions reasonably believed by us to be genuine will be your responsibility, including losses arising from any errors in the communication of instructions. As a result of this policy, you will bear the risk of loss. If we do not employ reasonable procedures to confirm that instructions communicated by telephone, fax or Internet are genuine, we may be liable for any losses due to unauthorized or fraudulent transactions. All other requests and elections under your contract must be in writing signed by the proper party, must include any necessary documentation and must be received at our Annuity Service Center to be effective. If acceptable to us, requests or elections relating to beneficiaries and ownership will take effect as of the date signed unless we have already acted in reliance on the prior status. We are not responsible for the validity of any written request or action.
We are not a fiduciary and do not give advice or make recommendations regarding insurance or investment products. Ask your financial representative for guidance regarding any requests or elections and for information about your particular investment needs. Please bear in mind that your financial representative, or any financial firm or financial professional you consult to provide advice, is acting on your behalf. We are not a party to any agreement between you and your financial professional. We do not recommend and are not responsible for any securities transactions or investment strategies involving securities (including account recommendations).
Good Order. A request or transaction generally is considered in good order if it complies with our administrative procedures and the required information is complete and accurate. A request or transaction may be rejected or delayed if not in good order. Good order generally means the actual receipt by us of the instructions relating to the requested transaction in writing (or, when permitted, by telephone or Internet as described above) along with all forms, information and supporting legal documentation necessary to effect the transaction. This information and documentation generally includes to the extent applicable to the transaction: your completed application; your contract number; the transaction amount (in dollars or percentage terms); the names and allocations to and/or from the investment portfolios affected by the requested transaction; the signatures of all contract owners (exactly as indicated on the contract), if necessary; Social Security Number or Tax I.D.; and any other information or supporting documentation that we may require, including any spousal or joint owner’s consents. With respect to purchase payments, good order also generally includes receipt by us of sufficient funds to effect the
48
purchase. We may, in our sole discretion, determine whether any particular transaction request is in good order, and we reserve the right to change or waive any good order requirement at any time. If you have any questions, you should contact us or your financial representative before submitting the form or request.
Telephone and Computer Systems. Telephone and computer systems may not always be available. Any telephone or computer system, whether it is yours, your service provider’s, your agent’s, or ours, can experience outages or slowdowns for a variety of reasons. These outages or slowdowns may delay or prevent our processing of your request. Although we have taken precautions to help our systems handle heavy use, we cannot promise complete reliability under all circumstances. If you experience technical difficulties or problems, you should make your transaction request in writing to our Annuity Service Center.
Confirming Transactions. We will send out written statements confirming that a transaction was recently completed. Unless you inform us of any errors within 60 days of receipt, we will consider these communications to be accurate and complete.
Ownership
Owner. You, as the owner of the contract, have all the interest and rights under the contract. Prior to the annuity date, the owner is as designated at the time the contract is issued, unless changed. On and after the annuity date, the annuitant is the owner (this may be a taxable event). The beneficiary becomes the owner when a death benefit is payable. When this occurs, some ownership rights may be limited.
Joint Owner. The contract can be owned by joint owners. Any joint owner must be the spouse of the other owner (except in Pennsylvania). Upon the death of either joint owner, the surviving spouse will be the designated beneficiary. Any other beneficiary designation at the time the contract was issued or as may have been later changed will be treated as a contingent beneficiary unless otherwise indicated.
Beneficiary
The beneficiary is the person(s) or entity you name to receive any death benefit. The beneficiary is named at the time the contract is issued unless changed at a later date. Unless an irrevocable beneficiary has been named, you can change the beneficiary at any time before you die.
Assignment
You can assign the contract at any time during your lifetime. BLIC will not be bound by the assignment until it receives the written notice of the assignment. BLIC will not be liable for any payment or other action it takes in accordance with the contract before it receives notice of the assignment. An assignment may be a taxable event.
If the contract is issued pursuant to a qualified plan, there may be limitations on your ability to assign the contract.
Financial Statements
The financial statements of BLIC and the financial statements of the Separate Account have been included in the Statement of Additional Information.
49
 
This page intentionally left blank.
APPENDIX A
Investment Options Available Under the Contract
The following is a list of investment portfolios under the contract. More information about the investment portfolios is available in the prospectuses for the investment portfolios, which may be amended from time to time and can be found online at https://dfinview.com/BHF/PUFT/BHF236 for Cova Variable Annuity, https://dfinview.com/BHF/PUFT/BHF148 for Firstar Summit Variable Annuity, https://dfinview.com/BHF/PUFT/BHF149 for Premier Advisor Variable Annuity, https://dfinview.com/BHF/PUFT/BHF147 for Destiny Select Variable Annuity and https://dfinview.com/BHF/PUFT/BHF150 for Prevail Variable Annuity. You can also request this information at no cost by calling (800) 343-8496 or sending an email request to [email protected]. Depending on the version of the contract that you purchased, you may not be able to invest in certain investment portfolios. See below for the Investment Portfolios available under your Contract.
The current expenses and performance information below reflects fees and expenses of the investment portfolio, but do not reflect the other fees and expenses that your contract may charge. Expenses would be higher and performance would be lower if these other charges were included. Each investment portfolio’s past performance is not necessarily an indication of future performance.
If you purchased the COVA VARIABLE ANNUITY, the following investment portfolios (other than those marked ††) are available: 
Investment Objectives
Portfolio Company and
Adviser/Sub-Adviser
Current
Expenses
Average Annual
Total Returns
(as of 12/31/2025)
1
Year
5
Year
10
Year
Seeks long-term growth of capital.
Invesco V.I. EQV International
Equity Fund — Series I††
Invesco Advisers, Inc.
0.90%
16.50%
3.68%
6.22%
Seeks capital growth and income.
Invesco Comstock
Portfolio — Class B#
Brighthouse Investment Advisers,
LLC
Subadviser: Invesco Advisers, Inc.
0.81%
17.31%
15.15%
11.83%
Seeks capital appreciation.
Invesco Global Equity
Portfolio — Class A††
Brighthouse Investment Advisers,
LLC
Subadviser: Invesco Advisers, Inc.
0.58%
15.88%
7.56%
11.28%
Seeks capital appreciation.
Invesco Global Equity
Portfolio — Class B#
Brighthouse Investment Advisers,
LLC
Subadviser: Invesco Advisers, Inc.
0.83%
15.60%
7.30%
11.00%
Seeks long-term growth of capital.
Loomis Sayles Growth
Portfolio — Class B††
Brighthouse Investment Advisers,
LLC
Subadviser: Loomis, Sayles &
Company, L.P.
0.80%
14.90%
14.77%
13.91%
Seeks capital appreciation.
MFS® Research International
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: Massachusetts Financial
Services Company
0.56%
22.72%
5.80%
7.83%
A-1
Investment Objectives
Portfolio Company and
Adviser/Sub-Adviser
Current
Expenses
Average Annual
Total Returns
(as of 12/31/2025)
1
Year
5
Year
10
Year
Seeks capital appreciation.
Morgan Stanley Discovery
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: Morgan Stanley
Investment Management Inc.
0.65%
13.55%
-5.58%
14.29%
Seeks maximum total return,
consistent with the preservation of
capital and prudent investment
management.
PIMCO Total Return
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: Pacific Investment
Management Company LLC
0.58%
9.21%
0.19%
2.55%
Seeks long-term capital appreciation
by investing in common stocks
believed to be undervalued. Income
is a secondary objective.
T. Rowe Price Large Cap Value
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: T. Rowe Price
Associates, Inc.
0.53%
12.32%
10.55%
10.36%
Seeks long-term growth of capital.
T. Rowe Price Mid Cap Growth
Portfolio — Class B††
Brighthouse Investment Advisers,
LLC
Subadviser: T. Rowe Price
Associates, Inc.
Sub-Subadviser: T. Rowe Price
Investment Management, Inc.
0.95%
3.42%
3.83%
9.77%
Seeks high total return by investing
in equity securities of mid-sized
companies.
Victory Sycamore Mid Cap Value
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: Victory Capital
Management Inc.
0.60%
2.51%
9.90%
9.86%
Seeks long-term growth of capital.
Baillie Gifford International Stock
Portfolio — Class B††
Brighthouse Investment Advisers,
LLC
Subadviser: Baillie Gifford Overseas
Limited
0.99%
18.96%
0.70%
7.34%
Seeks a competitive total return
primarily from investing in fixed-
income securities.
BlackRock Bond Income
Portfolio — Class B#
Brighthouse Investment Advisers,
LLC
Subadviser: BlackRock Advisors,
LLC
0.63%
7.68%
-0.42%
2.12%
Seeks long-term growth of capital.
BlackRock Capital Appreciation
Portfolio — Class A††
Brighthouse Investment Advisers,
LLC
Subadviser: BlackRock Advisors,
LLC
0.56%
13.19%
11.07%
15.80%
A-2
Investment Objectives
Portfolio Company and
Adviser/Sub-Adviser
Current
Expenses
Average Annual
Total Returns
(as of 12/31/2025)
1
Year
5
Year
10
Year
Seeks a high level of current income
consistent with prudent investment
risk and preservation of capital.
BlackRock Ultra-Short Term Bond
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: BlackRock Advisors,
LLC
0.37%
4.15%
3.09%
2.10%
Seeks to provide a growing stream of
income over time and, secondarily,
long-term capital appreciation and
current income.
Brighthouse/Wellington Core Equity
Opportunities Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: Wellington Management
Company LLP
0.62%
7.83%
8.29%
10.73%
Seeks long-term growth of capital.
Jennison Growth
Portfolio — Class B#
Brighthouse Investment Advisers,
LLC
Subadviser: Jennison Associates LLC
0.79%
13.72%
10.01%
16.41%
Seeks a favorable total return
through investment in a diversified
portfolio.
MFS® Total Return
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: Massachusetts Financial
Services Company
0.62%
11.11%
6.42%
7.65%
Seeks capital appreciation.
MFS® Value Portfolio — Class B#
Brighthouse Investment Advisers,
LLC
Subadviser: Massachusetts Financial
Services Company
0.83%
13.00%
9.84%
9.99%
Seeks high total return, consisting
principally of capital appreciation.
Neuberger Berman Genesis
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: Neuberger Berman
Investment Advisers LLC
0.81%
-4.57%
2.86%
9.12%
Seeks long-term growth of capital.
T. Rowe Price Large Cap Growth
Portfolio — Class A††
Brighthouse Investment Advisers,
LLC
Subadviser: T. Rowe Price
Associates, Inc.
0.56%
15.70%
9.64%
14.39%
Seeks long-term capital growth.
T. Rowe Price Small Cap Growth
Portfolio — Class A
Brighthouse Investment Advisers,
LLC
Subadviser: T. Rowe Price
Associates, Inc.
0.51%
10.30%
5.75%
10.88%
Seeks to maximize total return
consistent with preservation of
capital.
Western Asset Management Strategic
Bond Opportunities
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: Western Asset
Management Company LLC
0.57%
9.07%
1.42%
4.03%
A-3
Investment Objectives
Portfolio Company and
Adviser/Sub-Adviser
Current
Expenses
Average Annual
Total Returns
(as of 12/31/2025)
1
Year
5
Year
10
Year
Seeks long-term capital growth.
Templeton Foreign VIP
Fund — Class 1††
Templeton Investment Counsel,
LLC
0.83%
29.51%
8.52%
6.01%
Seeks capital growth and current
income.
Putnam VT Large Cap Value
Fund — Class IB
Putnam Investment Management,
LLC
0.79%
20.35%
15.38%
13.30%
#
Certain Investment Portfolios and their investment advisers have entered into temporary expense reimbursements and/or fee waivers, which are reflected in the Current Expenses. Please see the Investment Portfolios' prospectuses for additional information regarding these arrangements.
††
Closed to new investments except under dollar cost averaging and rebalancing programs in existence at the time of closing.
If you purchased the FIRSTAR SUMMIT VARIABLE ANNUITY, the following investment portfolios (other than those marked ††) are available: 
Investment Objectives
Portfolio Company and
Adviser/Sub-Adviser
Current
Expenses
Average Annual
Total Returns
(as of 12/31/2025)
1
Year
5
Year
10
Year
Seeks long-term growth of capital.
Invesco V.I. EQV International
Equity Fund — Series I
Invesco Advisers, Inc.
0.90%
16.50%
3.68%
6.22%
Seeks capital appreciation.
MFS® Research International
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: Massachusetts Financial
Services Company
0.56%
22.72%
5.80%
7.83%
Seeks maximum total return,
consistent with the preservation of
capital and prudent investment
management.
PIMCO Total Return
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: Pacific Investment
Management Company LLC
0.58%
9.21%
0.19%
2.55%
Seeks to provide total return,
primarily through capital
appreciation.
State Street Emerging Markets
Enhanced Index
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: SSGA Funds
Management, Inc
0.55%
34.45%
6.31%
 — 
Seeks long-term capital appreciation
by investing in common stocks
believed to be undervalued. Income
is a secondary objective.
T. Rowe Price Large Cap Value
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: T. Rowe Price
Associates, Inc.
0.53%
12.32%
10.55%
10.36%
A-4
Investment Objectives
Portfolio Company and
Adviser/Sub-Adviser
Current
Expenses
Average Annual
Total Returns
(as of 12/31/2025)
1
Year
5
Year
10
Year
Seeks long-term growth of capital.
Baillie Gifford International Stock
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: Baillie Gifford Overseas
Limited
0.74%
19.31%
0.96%
7.62%
Seeks long-term growth of capital.
BlackRock Capital Appreciation
Portfolio — Class A††
Brighthouse Investment Advisers,
LLC
Subadviser: BlackRock Advisors,
LLC
0.56%
13.19%
11.07%
15.80%
Seeks a high level of current income
consistent with prudent investment
risk and preservation of capital.
BlackRock Ultra-Short Term Bond
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: BlackRock Advisors,
LLC
0.37%
4.15%
3.09%
2.10%
Seeks long-term growth of capital.
Jennison Growth
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: Jennison Associates LLC
0.54%
14.04%
10.28%
16.71%
Seeks high total return, consisting
principally of capital appreciation.
Neuberger Berman Genesis
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: Neuberger Berman
Investment Advisers LLC
0.81%
-4.57%
2.86%
9.12%
Seeks to maximize total return
consistent with preservation of
capital.
Western Asset Management Strategic
Bond Opportunities
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: Western Asset
Management Company LLC
0.57%
9.07%
1.42%
4.03%
Seeks long-term capital growth.
Templeton Foreign VIP
Fund — Class 1#
Templeton Investment Counsel,
LLC
0.83%
29.51%
8.52%
6.01%
#
Certain Investment Portfolios and their investment advisers have entered into temporary expense reimbursements and/or fee waivers, which are reflected in the Current Expenses. Please see the Investment Portfolios' prospectuses for additional information regarding these arrangements.
††
Closed to new investments except under dollar cost averaging and rebalancing programs in existence at the time of closing.
If you purchased the PREMIER ADVISOR VARIABLE ANNUITY, the following investment portfolios (other than those marked ††) are available: 
A-5
Investment Objectives
Portfolio Company and
Adviser/Sub-Adviser
Current
Expenses
Average Annual
Total Returns
(as of 12/31/2025)
1
Year
5
Year
10
Year
Seeks long-term growth of capital.
Invesco V.I. EQV International
Equity Fund — Series I
Invesco Advisers, Inc.
0.90%
16.50%
3.68%
6.22%
Seeks total return through
investment in real estate securities,
emphasizing both capital
appreciation and current income.
CBRE Global Real Estate
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: CBRE Investment
Management Listed Real Assets
LLC
0.66%
7.11%
4.30%
4.22%
Seeks capital appreciation.
Invesco Global Equity
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: Invesco Advisers, Inc.
0.58%
15.88%
7.56%
11.28%
Seeks long-term growth of capital.
Loomis Sayles Growth
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: Loomis, Sayles &
Company, L.P.
0.55%
15.21%
15.06%
14.19%
Seeks capital appreciation.
MFS® Research International
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: Massachusetts Financial
Services Company
0.56%
22.72%
5.80%
7.83%
Seeks capital appreciation.
Morgan Stanley Discovery
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: Morgan Stanley
Investment Management Inc.
0.65%
13.55%
-5.58%
14.29%
Seeks maximum total return,
consistent with the preservation of
capital and prudent investment
management.
PIMCO Total Return
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: Pacific Investment
Management Company LLC
0.58%
9.21%
0.19%
2.55%
Seeks to provide total return,
primarily through capital
appreciation.
State Street Emerging Markets
Enhanced Index
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: SSGA Funds
Management, Inc
0.55%
34.45%
6.31%
 — 
Seeks long-term capital appreciation
by investing in common stocks
believed to be undervalued. Income
is a secondary objective.
T. Rowe Price Large Cap Value
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: T. Rowe Price
Associates, Inc.
0.53%
12.32%
10.55%
10.36%
A-6
Investment Objectives
Portfolio Company and
Adviser/Sub-Adviser
Current
Expenses
Average Annual
Total Returns
(as of 12/31/2025)
1
Year
5
Year
10
Year
Seeks high total return by investing
in equity securities of mid-sized
companies.
Victory Sycamore Mid Cap Value
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: Victory Capital
Management Inc.
0.60%
2.51%
9.90%
9.86%
Seeks a competitive total return
primarily from investing in fixed-
income securities.
BlackRock Bond Income
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: BlackRock Advisors,
LLC
0.38%
7.95%
-0.17%
2.38%
Seeks long-term growth of capital.
BlackRock Capital Appreciation
Portfolio — Class A††
Brighthouse Investment Advisers,
LLC
Subadviser: BlackRock Advisors,
LLC
0.56%
13.19%
11.07%
15.80%
Seeks a high level of current income
consistent with prudent investment
risk and preservation of capital.
BlackRock Ultra-Short Term Bond
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: BlackRock Advisors,
LLC
0.37%
4.15%
3.09%
2.10%
Seeks to provide a growing stream of
income over time and, secondarily,
long-term capital appreciation and
current income.
Brighthouse/Wellington Core Equity
Opportunities Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: Wellington Management
Company LLP
0.62%
7.83%
8.29%
10.73%
Seeks long-term growth of capital.
Jennison Growth
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: Jennison Associates LLC
0.54%
14.04%
10.28%
16.71%
Seeks high total return, consisting
principally of capital appreciation.
Neuberger Berman Genesis
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: Neuberger Berman
Investment Advisers LLC
0.81%
-4.57%
2.86%
9.12%
Seeks long-term growth of capital.
T. Rowe Price Large Cap Growth
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: T. Rowe Price
Associates, Inc.
0.56%
15.70%
9.64%
14.39%
Seeks long-term capital growth.
T. Rowe Price Small Cap Growth
Portfolio — Class A
Brighthouse Investment Advisers,
LLC
Subadviser: T. Rowe Price
Associates, Inc.
0.51%
10.30%
5.75%
10.88%
A-7
Investment Objectives
Portfolio Company and
Adviser/Sub-Adviser
Current
Expenses
Average Annual
Total Returns
(as of 12/31/2025)
1
Year
5
Year
10
Year
Seeks to maximize total return
consistent with preservation of
capital.
Western Asset Management Strategic
Bond Opportunities
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: Western Asset
Management Company LLC
0.57%
9.07%
1.42%
4.03%
Seeks reasonable income. The fund
will also consider the potential for
capital appreciation. The fund’s goal
is to achieve a yield which exceeds
the composite yield on the securities
comprising the S&P 500® Index.
Equity-Income Portfolio — Initial
Class
Fidelity Management & Research
Company LLC
Subadviser: FMR UK, FMR HK, and
FMR Japan
0.46%
19.02%
12.51%
11.60%
Seeks to provide capital growth.
Growth Opportunities
Portfolio — Initial Class
Fidelity Management & Research
Company LLC
Subadviser: FMR UK, FMR HK, and
FMR Japan
0.56%
22.02%
11.31%
19.94%
Seeks long-term capital growth.
Templeton Foreign VIP
Fund — Class 1#
Templeton Investment Counsel,
LLC
0.83%
29.51%
8.52%
6.01%
#
Certain Investment Portfolios and their investment advisers have entered into temporary expense reimbursements and/or fee waivers, which are reflected in the Current Expenses. Please see the Investment Portfolios' prospectuses for additional information regarding these arrangements.
††
Closed to new investments except under dollar cost averaging and rebalancing programs in existence at the time of closing.
If you purchased the DESTINY SELECT VARIABLE ANNUITY, the following investment portfolios (other than those marked ††) are available: 
Investment Objectives
Portfolio Company and
Adviser/Sub-Adviser
Current
Expenses
Average Annual
Total Returns
(as of 12/31/2025)
1
Year
5
Year
10
Year
Seeks long-term growth of capital.
Invesco V.I. EQV International
Equity Fund — Series I
Invesco Advisers, Inc.
0.90%
16.50%
3.68%
6.22%
Seeks long-term capital appreciation.
Brighthouse Small Cap Value
Portfolio — Class A††
Brighthouse Investment Advisers,
LLC
Subadviser: Allspring Global
Investments, LLC
0.78%
-2.92%
6.70%
8.34%
Seeks total return through
investment in real estate securities,
emphasizing both capital
appreciation and current income.
CBRE Global Real Estate
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: CBRE Investment
Management Listed Real Assets
LLC
0.66%
7.11%
4.30%
4.22%
A-8
Investment Objectives
Portfolio Company and
Adviser/Sub-Adviser
Current
Expenses
Average Annual
Total Returns
(as of 12/31/2025)
1
Year
5
Year
10
Year
Seeks capital appreciation.
Invesco Global Equity
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: Invesco Advisers, Inc.
0.58%
15.88%
7.56%
11.28%
Seeks long-term growth of capital.
Loomis Sayles Growth
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: Loomis, Sayles &
Company, L.P.
0.55%
15.21%
15.06%
14.19%
Seeks capital appreciation.
MFS® Research International
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: Massachusetts Financial
Services Company
0.56%
22.72%
5.80%
7.83%
Seeks capital appreciation.
Morgan Stanley Discovery
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: Morgan Stanley
Investment Management Inc.
0.65%
13.55%
-5.58%
14.29%
Seeks maximum total return,
consistent with the preservation of
capital and prudent investment
management.
PIMCO Total Return
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: Pacific Investment
Management Company LLC
0.58%
9.21%
0.19%
2.55%
Seeks to provide total return,
primarily through capital
appreciation.
State Street Emerging Markets
Enhanced Index
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: SSGA Funds
Management, Inc
0.55%
34.45%
6.31%
 — 
Seeks long-term capital appreciation
by investing in common stocks
believed to be undervalued. Income
is a secondary objective.
T. Rowe Price Large Cap Value
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: T. Rowe Price
Associates, Inc.
0.53%
12.32%
10.55%
10.36%
Seeks high total return by investing
in equity securities of mid-sized
companies.
Victory Sycamore Mid Cap Value
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: Victory Capital
Management Inc.
0.60%
2.51%
9.90%
9.86%
Seeks long-term growth of capital.
BlackRock Capital Appreciation
Portfolio — Class A††
Brighthouse Investment Advisers,
LLC
Subadviser: BlackRock Advisors,
LLC
0.56%
13.19%
11.07%
15.80%
A-9
Investment Objectives
Portfolio Company and
Adviser/Sub-Adviser
Current
Expenses
Average Annual
Total Returns
(as of 12/31/2025)
1
Year
5
Year
10
Year
Seeks to provide a growing stream of
income over time and, secondarily,
long-term capital appreciation and
current income.
Brighthouse/Wellington Core Equity
Opportunities Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: Wellington Management
Company LLP
0.62%
7.83%
8.29%
10.73%
Seeks long-term growth of capital.
Jennison Growth
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: Jennison Associates LLC
0.54%
14.04%
10.28%
16.71%
Seeks high total return, consisting
principally of capital appreciation.
Neuberger Berman Genesis
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: Neuberger Berman
Investment Advisers LLC
0.81%
-4.57%
2.86%
9.12%
Seeks long-term growth of capital.
T. Rowe Price Large Cap Growth
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: T. Rowe Price
Associates, Inc.
0.56%
15.70%
9.64%
14.39%
Seeks long-term capital growth.
T. Rowe Price Small Cap Growth
Portfolio — Class A††
Brighthouse Investment Advisers,
LLC
Subadviser: T. Rowe Price
Associates, Inc.
0.51%
10.30%
5.75%
10.88%
Seeks to maximize total return
consistent with preservation of
capital.
Western Asset Management Strategic
Bond Opportunities
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: Western Asset
Management Company LLC
0.57%
9.07%
1.42%
4.03%
Seeks reasonable income. The fund
will also consider the potential for
capital appreciation. The fund’s goal
is to achieve a yield which exceeds
the composite yield on the securities
comprising the S&P 500® Index.
Equity-Income Portfolio — Initial
Class
Fidelity Management & Research
Company LLC
Subadviser: FMR UK, FMR HK, and
FMR Japan
0.46%
19.02%
12.51%
11.60%
Seeks to provide capital growth.
Growth Opportunities
Portfolio — Initial Class
Fidelity Management & Research
Company LLC
Subadviser: FMR UK, FMR HK, and
FMR Japan
0.56%
22.02%
11.31%
19.94%
Seeks long-term capital growth.
Templeton Foreign VIP
Fund — Class 1#
Templeton Investment Counsel,
LLC
0.83%
29.51%
8.52%
6.01%
#
Certain Investment Portfolios and their investment advisers have entered into temporary expense reimbursements and/or fee waivers, which are reflected in the Current Expenses. Please see the Investment Portfolios' prospectuses for additional information regarding these arrangements.
A-10
††
Closed to new investments except under dollar cost averaging and rebalancing programs in existence at the time of closing.
If you purchased the PREVAIL VARIABLE ANNUITY, the following investment portfolios (other than those marked ††) are available: 
Investment Objectives
Portfolio Company and
Adviser/Sub-Adviser
Current
Expenses
Average Annual
Total Returns
(as of 12/31/2025)
1
Year
5
Year
10
Year
Seeks long-term growth of capital.
Invesco V.I. EQV International
Equity Fund — Series I
Invesco Advisers, Inc.
0.90%
16.50%
3.68%
6.22%
Seeks capital appreciation.
MFS® Research International
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: Massachusetts Financial
Services Company
0.56%
22.72%
5.80%
7.83%
Seeks capital appreciation.
Morgan Stanley Discovery
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: Morgan Stanley
Investment Management Inc.
0.65%
13.55%
-5.58%
14.29%
Seeks maximum total return,
consistent with the preservation of
capital and prudent investment
management.
PIMCO Total Return
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: Pacific Investment
Management Company LLC
0.58%
9.21%
0.19%
2.55%
Seeks long-term capital appreciation
by investing in common stocks
believed to be undervalued. Income
is a secondary objective.
T. Rowe Price Large Cap Value
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: T. Rowe Price
Associates, Inc.
0.53%
12.32%
10.55%
10.36%
Seeks high total return by investing
in equity securities of mid-sized
companies.
Victory Sycamore Mid Cap Value
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: Victory Capital
Management Inc.
0.60%
2.51%
9.90%
9.86%
Seeks a competitive total return
primarily from investing in fixed-
income securities.
BlackRock Bond Income
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: BlackRock Advisors,
LLC
0.38%
7.95%
-0.17%
2.38%
Seeks long-term growth of capital.
BlackRock Capital Appreciation
Portfolio — Class A††
Brighthouse Investment Advisers,
LLC
Subadviser: BlackRock Advisors,
LLC
0.56%
13.19%
11.07%
15.80%
A-11
Investment Objectives
Portfolio Company and
Adviser/Sub-Adviser
Current
Expenses
Average Annual
Total Returns
(as of 12/31/2025)
1
Year
5
Year
10
Year
Seeks a high level of current income
consistent with prudent investment
risk and preservation of capital.
BlackRock Ultra-Short Term Bond
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: BlackRock Advisors,
LLC
0.37%
4.15%
3.09%
2.10%
Seeks to provide a growing stream of
income over time and, secondarily,
long-term capital appreciation and
current income.
Brighthouse/Wellington Core Equity
Opportunities Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: Wellington Management
Company LLP
0.62%
7.83%
8.29%
10.73%
Seeks long-term growth of capital.
Jennison Growth
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: Jennison Associates LLC
0.54%
14.04%
10.28%
16.71%
Seeks high total return, consisting
principally of capital appreciation.
Neuberger Berman Genesis
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: Neuberger Berman
Investment Advisers LLC
0.81%
-4.57%
2.86%
9.12%
Seeks long-term growth of capital.
T. Rowe Price Large Cap Growth
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: T. Rowe Price
Associates, Inc.
0.56%
15.70%
9.64%
14.39%
Seeks to maximize total return
consistent with preservation of
capital.
Western Asset Management Strategic
Bond Opportunities
Portfolio — Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: Western Asset
Management Company LLC
0.57%
9.07%
1.42%
4.03%
Seeks reasonable income. The fund
will also consider the potential for
capital appreciation. The fund’s goal
is to achieve a yield which exceeds
the composite yield on the securities
comprising the S&P 500® Index.
Equity-Income Portfolio — Initial
Class
Fidelity Management & Research
Company LLC
Subadviser: FMR UK, FMR HK, and
FMR Japan
0.46%
19.02%
12.51%
11.60%
Seeks to provide capital growth.
Growth Opportunities
Portfolio — Initial Class
Fidelity Management & Research
Company LLC
Subadviser: FMR UK, FMR HK, and
FMR Japan
0.56%
22.02%
11.31%
19.94%
#
Certain Investment Portfolios and their investment advisers have entered into temporary expense reimbursements and/or fee waivers, which are reflected in the Current Expenses. Please see the Investment Portfolios' prospectuses for additional information regarding these arrangements.
††
Closed to new investments except under dollar cost averaging and rebalancing programs in existence at the time of closing.The following lists the fixed account option currently available under the contract. The fixed account listed below will also be used if you participate in the Dollar Cost Averaging Program and instruct us to make transfers to or from the fixed account. We may change the features of the fixed account listed below,
A-12
offer new fixed account investment options, and terminate existing fixed account investment options. We will provide you with written notice before doing so. 
Name
Guaranteed Minimum Interest Rate
Fixed account
3%
A-13
 
This page intentionally left blank.
APPENDIX B
State and Financial Intermediary Variations
The availability of the investment options, Contract benefits, or other Contract features described in this prospectus may vary depending on the state in which your Contract is issued or the selling firm through which it is sold. Also, you should note that certain Contract features and/or benefits described in this prospectus may vary, may not be available in your state, or may have been approved in your state after your Contract was issued and cannot be added. The state in which your Contract is issued impacts whether or not certain features, riders, charges or fees are available or will vary under your Contract. These variations are reflected in your Contract and in riders to your Contract.
There may be variations in the availability of investment options, Contract benefits, and other Contract features described in this prospectus — including restrictions, limitations, and other variations — that we are not aware of but which may apply depending on the state in which your Contract was issued or the selling firm through which it was purchased or continues to be serviced. For example, your financial representative may not recommend a particular investment option or Contract benefit to you. Any such variations are unknown to us. We cannot identify any such variations in this appendix without unreasonable effort or incurring unreasonable expense.
You should discuss with your financial representative any limitations, restrictions, or other variations related to the investment options, Contract benefits, or other Contract features available to you through your financial representative.
B-1
The statement of additional information (“SAI”) dated April 27, 2026 includes additional information about the Separate Account. The SAI is incorporated by reference. The SAI is available, without charge, upon request. For a free copy of the SAI, or to request other information about the Contract, and to make investor inquiries, call us at (888) 243-1932.
Reports and other information about the Separate Account are available on the SEC’s website at https://www.sec.gov, and copies of this information may be obtained, upon payment of a duplicating fee, by electronic request at the following email address: [email protected].
EDGAR Contract Identifier No. is C000151846

Statement of Additional Information
Individual Fixed and Variable Deferred
Annuity Contract
issued by
Brighthouse Variable Annuity Account C
and
Brighthouse Life Insurance Company
This Statement of Additional Information (“SAI”) is not a prospectus but relates to, and should be read in conjunction with, the Prospectus dated April 27, 2026. A copy of the Individual Fixed and Variable Deferred Annuity Contract Prospectus may be obtained by writing to Brighthouse Life Insurance Company, P.O. Box 4301, Clinton, IA 52733-4301, or by calling (800) 343-8496, by visiting https://dfinview.com/BHF/PUFT/BHF236 for COVA Variable Annuity, https://dfinview.com/BHF/PUFT/BHF148 for Firstar Summit Variable Annuity, https://dfinview.com/BHF/PUFT/BHF149 for Premier Advisor Variable Annuity, https://dfinview.com/BHF/PUFT/BHF147 for Destiny Select Variable Annuity and https://dfinview.com/BHF/PUFT/BHF150 for Prevail Variable Annuity or by accessing the Securities and Exchange Commission's website at http://www.sec.gov.
The SAI contains information in addition to the information described in the Prospectus for the Individual Fixed and Variable Deferred Annuity Contract (the “Contract”) offered by Brighthouse Life Insurance Company (“we, ”our“, or the ”Company“). The Prospectus concisely sets forth information that a prospective investor ought to know before investing.
This Statement of Additional Information is dated April 27, 2026.
Book 623 SAI
1
THE COMPANY
Brighthouse Life Insurance Company (“BLIC” or the “Company”) is a Delaware corporation originally incorporated in Connecticut in 1863. Prior to March 6, 2017, BLIC was known as MetLife Insurance Company USA. BLIC is licensed to conduct business in all U.S. states (except New York), the District of Columbia, the Bahamas, Guam, Puerto Rico, the British Virgin Islands and the U.S. Virgin Islands. BLIC is an indirect, wholly-owned subsidiary of, and ultimately controlled by, Brighthouse Financial, Inc. (“BHF”), a publicly-traded company. The Company was an indirect, wholly-owned subsidiary of MetLife, Inc. until August 4, 2017, when BHF became an independent, publicly-traded company following the completion of a separation transaction. BHF, through its subsidiaries and affiliates, is one of the largest providers of annuities and life insurance in the U.S. BLIC’s executive offices are located at 11225 North Community House Road, Charlotte, NC 28277.
On November 6, 2025, BHF and Aquarian Capital LLC (“Aquarian”) announced that they had entered into a definitive agreement under which an affiliate of Aquarian will acquire BHF. This transaction is subject to the satisfaction or waiver of customary closing conditions, including receipt of applicable regulatory approvals. Subject to such approvals and the satisfaction or waiver of the other conditions, the transaction is expected to be consummated in 2026.
Upon the consummation of the transaction, Aquarian will become the ultimate parent of BHF and BLIC will remain an indirect wholly-owned subsidiary of BHF. Although Aquarian will replace BHF as BLIC’s ultimate parent, BLIC will continue in its present role as the issuer of your Contract. All of your rights and benefits under your Contract and BLIC’s obligations under the Contract will remain unchanged.
Brighthouse Life Insurance Company History
MetLife Insurance Company USA: From the close of business on November 14, 2014 to March 6, 2017, BLIC was called MetLife Insurance Company USA (“MetLife USA”). MetLife USA was established following the close of business on November 14, 2014, when MetLife Investors USA Insurance Company, a wholly-owned subsidiary of MetLife Insurance Company of Connecticut, MetLife Investors Insurance Company and Exeter Reassurance
Company, Ltd. were merged into MetLife Insurance Company of Connecticut, and MetLife Insurance Company of Connecticut was then renamed MetLife Insurance Company USA. Simultaneously, MetLife USA changed its domicile from Connecticut to the state of Delaware. As a result of this merger, MetLife USA assumed legal ownership of all of the assets of these predecessor companies, including assets held in the separate accounts, and became responsible for administering the contracts and paying any benefits due under all contracts issued by each of its corporate predecessors. These predecessor companies that issued contracts on and prior to November 14, 2014 were the following:
•MetLife Insurance Company of Connecticut: MetLife Insurance Company of Connecticut (“MICC”), originally chartered in Connecticut in 1863, was known as Travelers Insurance Company prior to May 1, 2006. MICC changed its name to MetLife Insurance Company USA and its state of domicile to Delaware after November 14, 2014 as described under “MetLife Insurance Company USA” above.
•MetLife Life and Annuity Company of Connecticut: MetLife Life and Annuity Company of Connecticut (MLAC), originally chartered in Connecticut in 1973, was known as Travelers Life and Annuity Company prior to May 1, 2006. On or about December 7, 2007, MLAC merged with and into MICC.
•MetLife Investors USA Insurance Company: MetLife Investors USA Insurance Company (MLI USA), originally chartered in Delaware in 1960, was known as Security First Life Insurance Company prior to January 8, 2001. MLI USA was merged into BLIC after the close of business on November 14, 2014, as described under “MetLife Insurance Company USA” above.
•MetLife Investors Insurance Company: MetLife Investors Insurance Company (MLI), originally chartered in Missouri in 1981, was known as Cova Financial Services Life Insurance Company prior to February 12, 2001. MLI was merged into BLIC after the close of business on November 14, 2014, as described under “MetLife Insurance Company USA” above.
3
•MetLife Investors Insurance Company of California: MetLife Investors Insurance Company of California (MLI-CA), originally chartered in California in 1972, was known as Cova Financial Life Insurance Company prior to February 12, 2001. On November 9, 2006 MLI-CA merged with and into MLI.
THE SEPARATE ACCOUNT
We have established a Separate Account, Brighthouse Variable Annuity Account C (the “Separate Account”), to hold the assets that underlie the contracts. The Board of Directors of our predecessor, MetLife Investors Insurance Company (MLI), adopted a resolution to establish the Separate Account under Delaware insurance law on February 24, 1987. We have registered the Separate Account with the SEC as a unit investment trust under the Investment Company Act of 1940. The Separate Account is divided into subaccounts.
SERVICES
BLIC maintains certain books and records of the Separate Account and provides certain issuance and other administrative services for the Contracts. Pursuant to a services agreement, Computer Sciences Corporation, through its affiliate Alliance-One Services, Inc. provides certain other administrative and recordkeeping services for the Contracts as well as other contracts and policies issued by BLIC. The amount paid to Computer Sciences Corporation for the period January 1, 2023 through December 31, 2023 was $16,715,871, for the period January 1, 2024 through December 31, 2024 was $15,552,762, and for the period January 1, 2025 through December 31, 2025 was $15,916,726.
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The financial statements comprising each of the Sub-Accounts of Brighthouse Variable Annuity Account C, and the financial statements of Brighthouse Life Insurance Company, incorporated by reference in this Statement of Additional Information, have been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their reports. Such financial statements are incorporated by reference in reliance upon the reports of such firm given their authority as experts in accounting and auditing.
The principal business address of Deloitte & Touche LLP is 650 South Tryon Street, Suite 1800, Charlotte, North Carolina 28202-3512.
CUSTODIAN
Brighthouse Life Insurance Company, 11225 North Community House Road, Charlotte, NC 28277, is the custodian of the assets of the Separate Account. The custodian has custody of all cash of the Separate Account and handles the collection of proceeds of shares of the underlying funds bought and sold by the Separate Account.
DISTRIBUTION
Information about the distribution of the contracts is contained in the prospectus. (See “Distribution of the Contracts.”) Additional information is provided below.
Currently the contract is not available for new sales.
Brighthouse Securities, LLC (Distributor) serves as principal underwriter for the contracts. The Distributor and the Company are affiliates because they are both under common control of Brighthouse Financial, Inc. The Distributor’s principal business address is located at 11225 North Community House Road, Charlotte, NC 28277. Distributor is registered as a broker-dealer with the Securities and Exchange Commission under the Securities Exchange Act of 1934 and is a member of the Financial Industry Regulatory Authority (FINRA). Distributor has entered into selling agreements with other broker-dealers (“selling firms”) and compensates them for their services.
The following table shows the amount of commissions paid to and the amount of commissions retained by the Distributor:
Fiscal year
Aggregate Amount of
Commissions Paid to
Distributor
Aggregate Amount of
Commissions Retained
by Distributor After
Payments to Selling
Firms
2025
$737,658,036
$0
2024
$724,114,938
$0
2023
$665,088,655
$0
The Distributor passes through commissions to selling firms for their sales. In addition we pay compensation to the Distributor to offset its expenses, including compensation
4
costs, marketing and distribution expenses, advertising, wholesaling, printing, and other expenses of distributing the contracts.
As noted in the prospectus, we and the Distributor pay compensation to all selling firms in the form of commissions and certain types of non-cash compensation. We and the Distributor may pay additional compensation to selected firms, including marketing allowances, introduction fees, persistency payments, preferred status fees and industry conference fees. The terms of any particular agreement governing compensation may vary among selling firms and the amounts may be significant. The amount of additional compensation (non-commission amounts) paid to selected selling firms during 2025 ranged from $207 to $16,244,724.* The amount of commissions paid to selected selling firms during 2025 ranged from $14,249 to $97,879,821. The amount of total compensation (includes non-commission as well as commission amounts) paid to selected selling firms during 2025 ranged from $14,249 to $114,124,545.*
* For purposes of calculating this range, the additional compensation (non-commission) amounts received by a selling firm includes additional compensation received by the firm for the sale of insurance products issued by our affiliate Brighthouse Life Insurance Company of NY.
The following list sets forth the names of selling firms that received additional compensation in 2025 in connection with the sale of our variable annuity contracts, variable life policies and other insurance products (including the contracts offered by the prospectus). The selling firms are listed in alphabetical order.

American Portfolios Financial Services, Inc.
Ameriprise Financial Services, Inc.
Ameritas Investment Corp.
Arvest Investments, Inc.
Benjamin F. Edwards & Company, Inc.
BNY Mellon Securities Corporation
Cambridge Investment Research, Inc.
Capital Investment Brokerage, Inc.
Capital Investments Group, Inc.
Centaurus Financial, Inc.
Cetera Advisors LLC
Cetera Advisor Networks LLC
Cetera Financial Specialists LLC
Cetera Investment Services LLC
CFD Investments, Inc.
Citigroup Global Markets, Inc.
Citizens Securities, Inc.
Commonwealth Financial Network
Copper Financial Network, LLC
Equitable Advisors, LLC
Equity Services, Inc.
Fifth Third Securities, Inc.
First Citizens Investor Services, Inc.
First Heartland Capital, Inc.
Founders Financial Securities LLC
FSC Securities Corporation
Geneos Wealth Management, Inc.
Gradient Securities, LLC
GWN Securities Inc.
Hornor, Townsend & Kent, LLC
Independent Financial Group, LLC
Infinex Investments, Inc.
Integrity Alliance, LLC
Investacorp Advisory Services, Inc.
Janney Montgomery Scott LLC
J.P. Morgan Securities LLC
J.W. Cole Financial, Inc.
Kestra Investment Services, LLC
Key Investment Services LLC
KMS Financial Services, Inc.
Lifemark Securities Corp.
Lincoln Financial Advisors Corporation
Lincoln Financial Securities Corporation
Lincoln Investment Planning, Inc.
Lion Street Financial, LLC
LPL Financial Corp. Affiliates
LPL Financial LLC
Merrill Lynch, Pierce, Fenner & Smith Inc
MML Investors Services, LLC
Morgan Stanley Smith Barney LLC
Navy Federal Financial Group, LLC
OneAmerica Securities, Inc.
Oppenheimer & Co. Inc.
OSAIC Wealth, Inc.
Packerland Brokerage Services, Inc.
Park Avenue Securities LLC
PFS Investments Inc.
Raymond James & Associates, Inc.
RBC Capital Markets, LLC
Robert W. Baird & Co
Rockerfeller Capital Management
5
Royal Alliance Associates, Inc.
SagePoint Financial, Inc.
Santander Securities LLC
Securities America, Inc.
Securities Service Network, LLC
Stifel, Nicolaus & Company, Incorporated
The Leaders Group, Inc.
The O.N. Equity Sales Company
Transamerica Financial Advisors, Inc.
Triad Advisors LLC
Truist Investment Services, Inc.
UBS Financial Services Inc.
United Planners Financial Services of America
U.S. Bancorp Advisors, LLC
U.S. Bancorp Investments, Inc.
USA Financial Securities Corporation
ValMark Securities, Inc.
Voya Financial Advisors, Inc.
Wells Fargo Advisors, LLC
Woodbury Financial Services, Inc.
There are other broker dealers who receive compensation for servicing our contracts, and the Account Value of the contracts or the amount of added Purchase Payments received may be included in determining their additional compensation, if any.
PERFORMANCE INFORMATION
Historical Unit Values
The Company may show historical Accumulation Unit values in certain advertisements containing illustrations. These illustrations will be based on actual Accumulation Unit values.
In addition, the Company may distribute sales literature which compares the percentage change in Accumulation Unit values for any of the against established market indices such as the Standard & Poor’s 500 Composite Stock Price Index, the Dow Jones Industrial Average or other management investment companies which have investment objectives similar to the Investment Portfolio being compared. The Standard & Poor’s 500 Composite Stock Price Index is an unmanaged, unweighted average of 500 stocks, the majority of which are listed on the New York Stock Exchange. The Dow Jones Industrial Average is an unmanaged, weighted average of thirty blue chip industrial corporations listed on the New York Stock Exchange. Both
the Standard & Poor’s 500 Composite Stock Price Index and the Dow Jones Industrial Average assume quarterly reinvestment of dividends.
Reporting Agencies
The Company may also distribute sales literature which compares the performance of the Accumulation Unit values of the contracts with the unit values of variable annuities issued by other insurance companies. Such information may be derived from an entity such as Morningstar which may provide statistical data that tracks the performance of thousands of investment companies. Information compiled from such a service may or may not reflect the deduction of asset-based insurance charges. The Company’s sales literature utilizing these rankings will indicate whether or not such charges have been deducted. Where the charges have not been deducted, the sales literature will indicate that if the charges had been deducted, and any information concerning rankings means the ranking might have been lower.
ANNUITY PROVISIONS
Variable Annuity
A variable annuity is an annuity with payments which: (1) are not predetermined as to dollar amount; and (2) will vary in amount with the net investment results of the applicable investment portfolio(s) of the Separate Account.
At the Annuity Date, the Contract Value in each investment portfolio will be applied to the applicable Annuity Tables. The Annuity Table used will depend upon the Annuity Option chosen. If, as of the Annuity Date, the then current Annuity Option rates applicable to this class of Contracts provide a first Annuity Payment greater than guaranteed under the same Annuity Option under this Contract, the greater payment will be made.
The dollar amount of Annuity Payments after the first is determined as follows:
(1)
the dollar amount of the first Annuity Payment is divided by the value of an Annuity Unit as of the Annuity Date. This establishes the number of Annuity Units for each monthly payment. The number of Annuity Units remains fixed during the Annuity Payment period.
6
(2)
the fixed number of Annuity Units is multiplied by the Annuity Unit value for the last Valuation Period of the month preceding the month for which the payment is due. This result is the dollar amount of the payment.
The total dollar amount of each Variable Annuity Payment is the sum of all investment portfolios’ Variable Annuity Payments reduced by the applicable Contract Maintenance Charge.
Fixed Annuity
The Adjusted Contract Value (defined under “Variable Annuity Payments” in the prospectus) is determined on the annuity calculation date, which is a business day no more than five (5) business days before the annuity date. This value will be used to determine a fixed annuity payment.
Annuity Unit Value
The value of an Annuity Unit for each investment portfolio was arbitrarily set initially at $10. This was done when the first investment portfolio shares were purchased. The investment portfolio Annuity Unit value at the end of any subsequent Valuation Period is determined by multiplying the investment portfolio Annuity Unit value for the immediately preceding Valuation Period by the product of (a) the Net Investment Factor for the day for which the Annuity Unit value is being calculated, and (b) 0.999919.
Net Investment Factor
The Net Investment Factor for any investment portfolio for any Valuation Period is determined by dividing:
(a)
the Accumulation Unit value as of the close of the current Valuation Period, by
(b)
the Accumulation Unit value as of the close of the immediately preceding Valuation Period.
The Net Investment Factor may be greater or less than one, as the Annuity Unit value may increase or decrease.
Mortality and Expense Guarantee
The Company guarantees that the dollar amount of each Annuity Payment after the first Annuity Payment will not be affected by variations in mortality or expense experience.
LEGAL OR REGULATORY RESTRICTIONS ON TRANSACTIONS
If mandated under applicable law, the Company may be required to reject a Purchase Payment. The Company may also be required to block a contract Owner’s account and thereby refuse to pay any request for transfers, withdrawals, surrenders, death benefits or continue making Annuity Payments until instructions are received from the appropriate regulator.
ADDITIONAL FEDERAL TAX CONSIDERATIONS
Non-Qualified Contracts
Diversification. In order for your Non-Qualified Contract to be considered an annuity contract for federal income tax purposes, we must comply with certain diversification standards with respect to the investments underlying the contract. We believe that we satisfy and will continue to satisfy these diversification standards. Failure to meet these standards would result in immediate taxation to contract Owners of gains under their contracts. Inadvertent failure to meet these standards may be correctable.
Changes to Tax Rules and Interpretations
Changes to applicable tax rules and interpretations can adversely affect the tax treatment of your contract. These changes may take effect retroactively.
We reserve the right to amend your contract where necessary to maintain its status as a variable annuity contract under federal tax law and to protect you and other contract Owners in the Investment Portfolios from adverse tax consequences.
Qualified Contracts
Annuity contracts purchased through tax qualified plans are subject to limitations imposed by the Code and regulations as a condition of tax qualification. There are various types of tax qualified plans which have certain beneficial tax consequences for contract Owners and plan participants.
Types of Qualified Plans
The following list includes individual account-type plans which may hold an annuity contract as described in the Prospectus. Except for Traditional IRAs and Roth IRAs, they are established by an employer for participation of its employees.
7
IRA
A traditional IRA is established by an individual under Section 408(a) or 408(b) of the Code. See also Roth IRAs below.
SIMPLE IRA
Established by a for-profit employer with 100 or fewer employees that does not maintain another retirement plan. A SIMPLE IRA, established under section 408(p) of the Code, is based on IRA accounts for each participant.
SEP
Established by a for-profit employer under Section 408(k) of the Code, based on IRA accounts for each participant. Generally, only employers make contributions. If the SEP IRA permits non-SEP contributions, an employee can make regular IRA contributions (including IRA catch up contributions) to the SEP IRA, up to the maximum annual limit.
401(k), 401(a)
Established by for-profit employers, Section 501(c)(3) tax exempt and non-tax exempt entities, Indian Tribes.
403(b) or Tax Sheltered Annuity (“TSA”)
Established by Section 501(c)(3) tax exempt entities, public schools (K-12), public colleges, universities, churches, synagogues and mosques.
457(b) - Governmental Sponsor
Established by state and local governments, public schools (K-12), public colleges and universities.
457(b) - Non-Governmental Sponsor
Established by a tax-exempt entity. Under a non-governmental plan, which must be a tax-exempt entity under Section 501(c) of the Code, all investments of the plan are owned by and are subject to the claims of the general creditors of the sponsoring employer. In general, all amounts received under a non-governmental Section 457(b) plan are taxable and are subject to federal income tax withholding as wages.
Additional Information Regarding 457(b) Plans
A 457(b) plan may provide a one-time election to make special one-time “catch-up” contributions in one or more of the participant’s last three taxable years ending before the participant’s normal retirement age under the plan. Participants in governmental 457(b) plans may make two types of catch up contributions, the age 50 or older catch-up and the special one-time catch-up contribution.
However, both catch up contribution types cannot be made in the same taxable year. In general, contribution limits with respect to elective deferral and to age 50 plus catch-up contributions are not aggregated with contributions under the other types of qualified plans for the purposes of determining the limitations applicable to participants.
403(a) Annuity Plans
Similar in structure to 401(a) plans except that, instead of trusts, annuity contracts are the funding vehicle.
Roth Accounts
Individual or employee plan contributions made to certain plans on an after-tax basis. An IRA may be established as a Roth IRA under Section 408A, and 401(k), 403(b) and 457(b) plans may provide for Roth accounts. Contributions to a Roth IRA are limited based on the level of your modified adjusted gross income.
Comparison of Plan Limits for Individual Contributions:
Plan Type
Elective
Contribution
Maximum
Catch-up
Contribution
(ages 50-59
and 64+)
Maximum
Catch-up
Contribution
(ages 60-63)
IRA
$7,500
$1,100
$1,100
SIMPLE
IRA
$17,000
($18,100
for certain
small
employer
plans)
$4,000
($3,850 for
certain
small
employer
plans)
$5,250
401(k)
$24,500
$8,000
$11,250
SEP/401(a)
(Employer
contributions
only)
 
 
403(b)
[TSA]
$24,500
$8,000
$11,250
457(b)
$24,500
$8,000
$11,250
Dollar limits are for 2026 and are subject to cost-of-living adjustments in future years. Employer-sponsored individual account plans (other than 457(b) plans) may provide for additional employer contributions not to exceed the lesser of $72,000 and 100% of an employee’s compensation for 2026 (reduced by an employee elective contributions). If allowed by the plan, catch-up contributions and special catch-up contributions for participants age 60-63 may be made by participants in 401(k), 403(b), SIMPLE and government 457(b) plans. Certain grandfathered SARSEP plans may also allow for employee contributions, catch-up
8
contributions and enhanced catch-up contributions for employees aged 60-63. If allowed under the plan, the elective contribution and the catch-up contribution for ages 50-59 (and ages 64 and older) may be increased for certain small employer SIMPLE plans (generally employers with 25 or fewer employees) if certain conditions are met. Starting in 2026, if a qualified employer plan permits catch-up contributions, those catch-up contributions may be required to be made into the plan’s Roth account if the employee has compensation above a certain threshold in the prior year. This generally applies to certain higher income participants. Consult a tax adviser and consult your plan administrator if you participate in one of these employer-sponsored retirement plans.
ERISA
If your plan is subject to ERISA and you are married, the income payments, withdrawal provisions, and methods of payment of the death benefit under your contract may be subject to your spouse’s rights as described below.
Generally, the spouse must give qualified consent whenever you:
(a)
choose income payments other than on a qualified joint and survivor annuity basis (“QJSA”) (one under which we make payments to you during your lifetime and then make payments reduced by no more than 50% to your spouse for his or her remaining life, if any): or choose to waive the qualified pre-retirement survivor annuity benefit (“QPSA”) (the benefit payable to the surviving spouse of a participant who dies with a vested interest in an accrued retirement benefit under the plan before payment of the benefit has begun);
(b)
make certain withdrawals under plans for which a qualified consent is required;
(c)
name someone other than the spouse as your Beneficiary; or
(d)
use your accrued benefit as security for a loan, if available, exceeding $5,000.
Generally, there is no limit to the number of your elections as long as a qualified consent is given each time. The consent to waive the QJSA must meet certain requirements, including that it be in writing, that it acknowledge the identity of the designated Beneficiary and the form of benefit be selected, dated, signed by your spouse, witnessed by a notary public or plan representative, and that it be in a
form satisfactory to us. The waiver of the QJSA generally must be executed during the 180 day period (90 days for certain loans) ending on the date on which income payments are to commence, or the withdrawal or the loan is to be made, as the case may be. If you die before benefits commence, your surviving spouse will be your Beneficiary unless he or she has given a qualified consent otherwise.
The qualified consent to waive the QPSA benefit and the Beneficiary designation must be made in writing that acknowledges the designated Beneficiary, dated, signed by your spouse, witnessed by a notary public or plan representative and in a form satisfactory to us. Generally, there is no limit to the number of Beneficiary designations as long as a qualified consent accompanies each designation. The waiver of, and the qualified consent for, the QPSA benefit generally may not be given until the plan year in which you attain age 35. The waiver period for the QPSA ends on the date of your death.
If the present value of your benefit is worth $5,000 or less, your plan generally may provide for distribution of your entire interest in a lump sum without spousal consent.
Federal Estate Taxes
While no attempt is being made to discuss the federal estate tax implications of the contract, you should bear in mind that the value of an annuity contract owned by a decedent and payable to a Beneficiary by virtue of surviving the decedent is included in the decedent’s gross estate. Depending on the terms of the annuity contract, the value of the annuity included in the gross estate may be the value of the lump sum payment payable to the designated Beneficiary or the actuarial value of the payments to be received by the Beneficiary. Consult an estate planning adviser for more information.
Generation-Skipping Transfer Tax
Under certain circumstances, the Code may impose a “generation-skipping transfer tax” when all or part of an annuity contract is transferred to, or a death benefit is paid to, an individual two or more generations younger than the contract Owner. Regulations issued under the Code may require us to deduct the tax from your contract, or from any applicable payment, and pay it directly to the IRS.
9
SECURE 2.0 Act Considerations
As part of the Consolidated Appropriations Act, 2023, Congress passed the SECURE 2.0 Act of 2022 (the “Act”) which was signed into law on December 29, 2022. The Act includes many provisions updating the Code affecting employer sponsored qualified plans and IRAs, including provisions that become effective immediately and provisions which become effective in later years through 2033. For example, the Act includes provisions affecting required minimum distribution (RMD), certain contribution and other limits affecting IRAs and qualified plans, as well as provisions providing new exceptions to the 10% federal income tax penalty for “early” distributions which may also provide for the ability to recontribute such early distributions to an IRA or qualified plan (subject to the provisions of the Code, the qualified plan/IRA, the Contract and our administrative rules). This prospectus does not attempt to provide a complete discussion of the Act and its provisions. Individuals should consult with a qualified tax adviser.
Annuity Purchase Payments By Nonresident Aliens and Foreign Entities
The discussion above provides general information regarding U.S. federal income tax consequences to annuity purchasers that are U.S. citizens or residents. Purchasers that are not U.S. citizens or residents will generally be subject to U.S. federal withholding tax on taxable distributions from annuity contracts at a 30% rate, unless a lower treaty rate applies. In addition, purchasers may be subject to state and/or municipal taxes and taxes that may be imposed by the purchaser’s country of citizenship or residence. Prospective purchasers are advised to consult with a qualified tax adviser regarding U.S., state and foreign taxation with respect to an annuity contract purchase.
10

PART C - OTHER INFORMATION
Item 27.
Exhibits.
(a)
(i)
 
(ii)
 
(iii)
(b)
Not Applicable.
(c)
(i)(a)
 
(b)
 
(c)
 
(ii)
 
(iii)
 
(iv)
 
(v)
(d)
(i)
 
(ii)
 
(iii)
 
(iv)
 
(v)
 
(vi)
 
(vii)
 
(viii)
(f)
(i)
 
(ii)
 
(iii)
 
(iv)
(g)
(i)
 
(ii)
(h)
(i)(a)
 
(b)
 
(c)
 
(d)
 
(ii)(a)
 
(b)
 
(iii)(a)
 
(b)
 
(c)
 
(d)
 
(e)
 
(f)
 
(iv)(a)
 
(b)
 
(c)
 
(d)
 
(e)
 
(f)
 
(g)
 
(v)(a)
 
(b)
 
(c)
 
(d)
 
(vi)(a)
 
(b)
 
(c)
 
(d)
 
(e)
 
(vii)(a)
 
(b)
 
(c)
 
(viii)(a)
 
(b)
 
(ix)(a)
 
(b)
(j)
Not Applicable.
(k)
Not Applicable.
(m)
Not Applicable.
(o)
Not Applicable.
(q)
Not Applicable.
(r)
Not Applicable.
ITEM 28.
Directors and Officers of the Insurance Company.
The following are the Officers and Directors who are engaged directly or indirectly in activities relating to the Registrant’s Separate Account or the Contracts, and for executive officers including the Depositor’s president, secretary, treasurer, and vice presidents who have authority to act as president in the president’s absence. 
Name and Principal Business Address
Positions and Offices with Insurance Company
Eric Steigerwalt
11225 North Community House Road
Charlotte, NC 28277
Chairman of the Board, President, Chief Executive Officer and a
Director
 
Myles Lambert
11225 North Community House Road
Charlotte, NC 28277
Director and Vice President
 
 
David A. Rosenbaum
11225 North Community House Road
Charlotte, NC 28277
Director and Vice President
 
Jonathan Rosenthal
11225 North Community House Road
Charlotte, NC 28277
Director, Vice President and Chief Investment Officer
 
 
Edward A. Spehar
11225 North Community House Road
Charlotte, NC 28277
Director, Vice President and Chief Financial Officer
 
Michele H. Abate
11225 North Community House Road
Charlotte, NC 28277
Vice President
 
Richard A. Cook
11225 North Community House Road
Charlotte, NC 28277
Vice President and Deputy Chief Accounting Officer
 
Patrisha Cox
11225 North Community House Road
Charlotte, NC 28277
Vice President
 
Andrew DeRosa
11225 North Community House Road
Charlotte, NC 28277
Vice President
 
 
Devon DiBenedetto
11225 North Community House Road
Charlotte, NC 28277
Vice President and Chief Information Security Officer
 
Micah Dowling
11225 North Community House Road
Charlotte, NC 28277
Vice President
 
Tara Figard
11225 North Community House Road
Charlotte, NC 28277
Vice President
 
Gianna H. Figaro-Sterling
11225 North Community House Road
Charlotte, NC 28277
Vice President and Controller
 
Kevin Finneran
11225 North Community House Road
Charlotte, NC 28277
Vice President and Illustration Officer
 
James Grady
11225 North Community House Road
Charlotte, NC 28277
Vice President
 
 
Christopher Hartsfield
11225 North Community House Road
Charlotte, NC 28277
Vice President and Assistant Secretary
 
 
Katie Hellmann
11225 North Community House Road
Charlotte, NC 28277
Vice President and Chief Compliance Officer
 
Jeffrey Hughes
11225 North Community House Road
Charlotte, NC 28277
Vice President and Chief Technology Officer
 
Allie Lin
11225 North Community House Road
Charlotte, NC 28277
Vice President and Secretary
 
 
Brian McGurn
11225 North Community House Road
Charlotte, NC 28277
Chief Derivatives Officer
 
Philip Melville
11225 North Community House Road
Charlotte, NC 28277
Vice President and Chief Risk Officer
 
Janet Morgan
11225 North Community House Road
Charlotte, NC 28277
Vice President and Treasurer
 
Gerard Nigro
11225 North Community House Road
Charlotte, NC 28277
Vice President
 
Alan Otis
11225 North Community House Road
Charlotte, NC 28277
Vice President
 
James Painter, Jr.
11225 North Community House Road
Charlotte, NC 28277
Vice President
 
Melissa B. Pavlovich
11225 North Community House Road
Charlotte, NC 28277
Vice President and Chief Accounting Officer
 
Phillip Pfotenhauer
11225 North Community House Road
Charlotte, NC 28277
Vice President
 
Marc Pucci
11225 North Community House Road
Charlotte, NC 28277
Vice President
 
Matthew Sheperd
11225 North Community House Road
Charlotte, NC 28277
Vice President – Dividend Actuary
 
Kristi Slavin
11225 North Community House Road
Charlotte, NC 28277
Vice President
 
Gregor Speakman
11225 North Community House Road
Charlotte, NC 28277
Vice President
 
Michael Villella
11225 North Community House Road
Charlotte, NC 28277
Vice President and Illustration Actuary
 
Julienne Warr
11225 North Community House Road
Charlotte, NC 28277
Vice President
 
Natalie Wright
11225 North Community House Road
Charlotte, NC 28277
Vice President
Item 29.
Persons Controlled by or Under Common Control with the Insurance Company or the Registered Separate Account.
Brighthouse Variable Annuity Account C (the “Separate Account”) is a registered separate account of Brighthouse Life Insurance Company (“BLIC”, the “Insurance Company”, or the “Company”) under Delaware insurance law. BLIC is an indirect, wholly-owned subsidiary of Brighthouse Financial, Inc., a publicly-traded company. The following outline indicates those entities that are controlled by Brighthouse Financial, Inc. or are under the common control of Brighthouse Financial, Inc.
No person is controlled by the Separate Account, and none of the entities listed below files financial statements that are consolidated with the Separate Account's financial statements. The Separate Account does not have any
subsidiaries.  
ORGANIZATIONAL STRUCTURE OF BRIGHTHOUSE FINANCIAL, INC. AND SUBSIDIARIES
AS OF DECEMBER 31, 2025
The following is a list of subsidiaries of Brighthouse Financial, Inc. as of December 31, 2025.
The entity which is listed at the left margin (labeled with a capital letter) is a direct subsidiary of Brighthouse Financial, Inc. (DE).
Each entity which is indented under another entity is a subsidiary of such other entity and, therefore, an indirect subsidiary of Brighthouse Financial, Inc.
The voting securities of the subsidiaries listed are 100% owned by their respective parent companies. The jurisdiction of domicile of each subsidiary listed is set forth in the parenthetical following the name of such subsidiary. All of the entities listed below are included in the consolidated financial statements of Brighthouse Financial, Inc. Each of the entities listed under Section 2 is included in the consolidated financial statements of Brighthouse Life Insurance Company. Both Brighthouse Financial, Inc. and Brighthouse Life Insurance Company file consolidated financial statements with the SEC pursuant to the Securities Exchange Act of 1934, as amended. 
A.
Brighthouse Holdings, LLC (DE)
 
1.
New England Life Insurance Company (MA)
 
2.
Brighthouse Life Insurance Company (DE)
 
 
a.
 
Brighthouse Reinsurance Company of Delaware (DE)
 
 
b.
 
Brighthouse Life Insurance Company of NY (NY)
 
 
 
(i.)
    BLICNY Property Ventures, LLC (DE)
 
 
c.
 
Brighthouse Renewables Holdings, LLC (DE)
 
 
 
(i.)
    Greater Sandhill I, LLC (DE)
 
 
d.
 
Brighthouse Assignment Company (CT)
 
 
e.
 
Euro TL Investments LLC (DE)
 
 
f
 
Euro TI Investments LLC (DE)
 
 
g.
 
TLA Holdings LLC (DE)
 
 
h
 
TLA Holdings II LLC (DE)
 
 
i.
 
BLIC Property Ventures, LLC (DE)
 
3.
Brighthouse Securities, LLC (DE)
 
4.
Brighthouse Services, LLC (DE)
 
5.
Brighthouse Investment Advisers, LLC (DE)
Item 30.
Indemnification.
Pursuant to applicable provisions of Brighthouse Life Insurance Company’s by-laws or internal corporate policies adopted by Brighthouse Life Insurance Company or Brighthouse Financial, Inc., its ultimate parent, the directors, officers and other controlling persons of Brighthouse Life Insurance Company and of Brighthouse Life Insurance Company’s affiliate and the underwriter, Brighthouse Securities, LLC, who are made or threatened to be made a party to an action or proceeding, may be eligible to obtain indemnification against judgments, fines, amounts paid in settlement and reasonable expenses, including attorneys’ fees, incurred as a result of such action or proceeding. Under the principal underwriting agreement between Brighthouse Life Insurance Company and Brighthouse Securities, LLC, the parties have agreed to indemnify each other against certain liabilities and expenses from legal proceedings arising out of Brighthouse Securities LLC’s distribution of the Contracts.
Brighthouse Financial, Inc. also maintains directors and officers and professional liability insurance policies under which the Separate Account, the Insurance Company and the Underwriter, as well as certain other Brighthouse subsidiaries, are covered. Brighthouse Financial, Inc. also has secured a financial institutions bond.
Insofar as indemnification for liability arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the Company pursuant to the foregoing provisions, or otherwise, the Company has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Company of expenses incurred or paid by a director, officer or controlling person of the Company in the successful defense of any action, suit or proceeding) is asserted by such director, officer
or controlling person in connection with the securities being registered, the Company will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.
Item 31.
Principal Underwriters.
(a)
Brighthouse Securities, LLC is the principal underwriter for the following investment companies (including the Registered Separate Account):
Brighthouse Fund UL for Variable Life Insurance
Brighthouse Fund UL III for Variable Life Insurance
Brighthouse Funds Trust I
Brighthouse Funds Trust II
Brighthouse Separate Account A
Brighthouse Separate Account Eleven for Variable Annuities
Brighthouse Separate Account QPN for Variable Annuities
Brighthouse Variable Annuity Account B
Brighthouse Variable Annuity Account C
Brighthouse Variable Life Account A
Brighthouse Variable Life Account One
New England Variable Annuity Separate Account
New England Variable Life Separate Account
(b)
Brighthouse Securities, LLC is the principal underwriter for the Contracts. The following persons are the officers and managers of Brighthouse Securities, LLC: 
Name and Principal Business Address
Positions and Offices with Underwriter
 
Myles Lambert
11225 North Community House Road
Charlotte, NC 28277 
Manager, President and Chief Executive Officer
 
Philip Beaulieu
11225 North Community House Road
Charlotte, NC 28277 
Manager and Vice President
 
Amy Cusson
11225 North Community House Road
Charlotte, NC 28277 
Manager
 
Michael Davis
11225 North Community House Road
Charlotte, NC 28277 
Manager and Vice President
 
Kevin Macilvane, Jr.
11225 North Community House Road
Charlotte, NC 28277 
Manager
 
Gerard Nigro
11225 North Community House Road
Charlotte, NC 28277 
Manager and Vice President
 
Richard Cook
11225 North Community House Road
Charlotte, NC 28277 
Vice President
 
Christopher Hartsfield
11225 North Community House Road
Charlotte, NC 28277 
Vice President and Assistant Secretary
 
Allie Lin
11225 North Community House Road
Charlotte, NC 28277 
Vice President and Secretary
 
John Martinez
11225 North Community House Road
Charlotte, NC 28277 
Principal Financial Officer
 
Brian McGurn
11225 North Community House Road
Charlotte, NC 28277 
Vice President and Chief Derivatives Officer
 
Janet Morgan
11225 North Community House Road
Charlotte, NC 28277  
Vice President and Treasurer
 
James Painter, Jr.
11225 North Community House Road
Charlotte, NC 28277  
Vice President
 
Melissa Pavlovich
11225 North Community House Road
Charlotte, NC 28277  
Vice President and Tax Director
 
Kristin Prohonic
11225 North Community House Road
Charlotte, NC 28277  
Vice President and Chief Compliance Officer
(c)
Compensation to the Distributor. The following aggregate amount of commissions and other compensation was received by the Distributor, directly or indirectly, from the Registered Separate Account and the other separate accounts of the Insurance Company, which also issue variable annuity contracts, and certain single premium deferred index-linked annuity contracts of the Insurance Company, during their last fiscal year.  
(1)
Name of Principal Underwriter
(2)
Net Underwriting
Discounts And
Commissions
(3)
Compensation
On Redemption
(4)
Brokerage
Commissions
(5)
Other
Compensation
Brighthouse Securities, LLC
$737,658,036
$0
$0
$0
Item 31A.
Information About Contracts with Index-Linked Options and Fixed Options subject to a Contract Adjustment.
(a)
Not Applicable.
(b)
Not Applicable.
Item 32.
Location of Accounts and Records.
Omitted.
Item 33.
Management Services.
Not Applicable.
Item 34.
Fee Representation and Undertakings.
The Company hereby represents that the fees and charges deducted under the Contracts, in the aggregate, are reasonable in relation to the services rendered, the expenses to be incurred, and the risks assumed by the Company.
The Company hereby represents that it is relying upon the Securities and Exchange Commission No-Action Letter issued to the American Council of Life Insurance dated November 28, 1988 (Commission ref. IP-6-88) and that the following provisions have been complied with:
1.
Include appropriate disclosure regarding the redemption restrictions imposed by Section 403(b)(11) in each registration statement, including the prospectus, used in connection with the offer of the contract;
2.
Include appropriate disclosure regarding the redemption restrictions imposed by Section 403(b)(11) in any sales literature used in connection with the offer of the contract;
3.
Instruct sales representatives who solicit participants to purchase the contract specifically to bring the redemption restrictions imposed by Section 403(b)(11) to the attention of the potential participants;
4.
Obtain from each plan participant who purchases a Section 403(b) annuity contract, prior to or at the time of such purchase, a signed statement acknowledging the participant's understanding of (1) the restrictions on redemption imposed by Section 403(b)(11), and (2) other investment alternatives available under the employer's Section 403(b) arrangement to which the participant may elect to transfer his contract value.

SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant certifies that it meets all of the requirements for effectiveness of this registration statement under rule 485(b) under the Securities Act and has duly caused this registration statement to be signed on its behalf by the undersigned, duly authorized, in the City of Charlotte, and State of North Carolina, on this 10th day of April, 2026. 
 
BRIGHTHOUSE VARIABLE ANNUITY ACCOUNT C
(Registered Separate Account)
 
By:
BRIGHTHOUSE LIFE INSURANCE COMPANY
 
By:
/s/ David A. Rosenbaum
 
 
David A. Rosenbaum
Vice President
 
 
By:
BRIGHTHOUSE LIFE INSURANCE COMPANY
 
 
(Insurance Company)
 
By:
/s/ David A. Rosenbaum
 
 
David A. Rosenbaum
Vice President
Pursuant to the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the capacities indicated on April 10, 2026. 
/s/ Eric Steigerwalt*
Chairman of the Board, President, Chief Executive Officer
and a Director
Eric Steigerwalt
 
 
/s/ Myles Lambert*
Director
Myles Lambert
 
 
/s/ David A. Rosenbaum*
Director
David A. Rosenbaum
 
 
/s/ Jonathan Rosenthal*
Director
Jonathan Rosenthal
 
 
/s/ Edward A. Spehar*
Director, Vice President and Chief Financial Officer
Edward A. Spehar
 
 
/s/ Melissa B. Pavlovich*
Vice President and Chief Accounting Officer
Melissa B. Pavlovich
 
 
/s/ Gianna H. Figaro-Sterling*
Vice President and Controller
Gianna H. Figaro-Sterling
 
 
*By:
/s/ Michele H. Abate
 
 
Michele H. Abate, Attorney-In-Fact
April 10, 2026
*
Brighthouse Life Insurance Company. Executed by Michele H. Abate, Esquire on behalf of those indicated pursuant to powers of attorney filed herewith.

INDEX TO EXHIBITS
(l)
Consent of Independent Registered Public Accounting Firm (Deloitte & Touche LLP)
(p)
Powers of Attorney

ATTACHMENTS / EXHIBITS

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (D&T)

POWERS OF ATTORNEY

FREE Breaking News Alerts from StreetInsider.com!

E-mail Address

StreetInsider.com Top Tickers, 7/8/2026

1. SPCX
2. CRNX
3. USO
4. VRTX
5. RIVN
6. SPY
7. NVDA
8. LMT
9. WMT
10. CMPS


Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

SEC Filings