PROSPECTUS. I could have been an . Visit to sign up. May 1, 2018 VARIABLE UNIVERSAL LIFE INSURANCE (5-18) Product

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1 PROSPECTUS May 1, 2018 VARIABLE UNIVERSAL LIFE INSURANCE I coud have been an emai. Visit to sign up (5-18) Product

2 PRINCIPAL UNDERWRITER/ SECURITIES & SERVICES OFFERED THROUGH REGISTERED REPRESENTATIVES OF: FBL Marketing Services, LLC University Avenue West Des Moines, Iowa Member SIPC ISSUING LIFE INSURANCE COMPANY: Farm Bureau Life Insurance Company University Avenue West Des Moines, Iowa Affiiated, and companies of Farm Bureau Financia Services

3 Farm Bureau Life Variabe Account NONPARTICIPATING FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY PROSPECTUS Apri 30, 2018 Farm Bureau Life Insurance Company ( Farm Bureau Life, Company, we, us, or our ) is offering an individua nonparticipating fexibe premium variabe ife insurance poicy (the Poicy ) described in this Prospectus. Farm Bureau Life designed the Poicy: (1) to provide insurance protection to age 115 (age 95 in the state of Utah); and (2) to permit the purchaser of a Poicy ( you or your ) to vary premium payments and adjust the death proceeds payabe under the Poicy. The Prospectus describes a materia features of the Poicy. The Company has discontinued saes of the Poicy to new purchasers. Athough the Poicy is no onger avaiabe to new purchasers, a rights and benefits under the Poicy continue to be avaiabe to Poicyowners. Whie the Poicy is in force, we wi pay: death proceeds upon the Insured s death, and a Net Surrender Vaue or Net Accumuated Vaue upon compete surrender or partia withdrawa of the Poicy. You may aocate Net Premiums under a Poicy to one or more of the Subaccounts of Farm Bureau Life Variabe Account (the Variabe Account ). Death proceeds may, and Accumuated Vaue wi, vary with the investment performance of the Variabe Account. Each Subaccount invests excusivey in shares of the Investment Options isted beow. Current summary prospectuses or prospectuses that describe the investment objectives and risks of each investment option must accompany or precede this Prospectus. American Century Investments VP Capita Appreciation Fund VP Infation Protection Bond Fund VP Mid Cap Vaue Fund VP Utra Fund VP Vaue Fund Cavert Variabe Products, Inc. Cavert VP NASDAQ-100 Index Portfoio Cavert VP Russe 2000 Sma Cap Index Portfoio Cavert VP S&P MidCap 400 Index Portfoio Dreyfus Sustainabe U.S. Equity Portfoio, Inc. Service Cass Dreyfus Variabe Investment Fund VIF Appreciation Portfoio Initia Cass VIF Growth & Income Portfoio Initia Cass VIF Internationa Equity Portfoio Initia Cass VIF Opportunistic Sma Cap Portfoio Initia Cass Federated Insurance Series Federated Government Money Fund II Service Shares Federated Managed Tai Risk Fund II Primary Shares Federated Managed Voatiity Fund II Primary Shares Federated Quaity Bond Fund II Primary Shares Fideity Variabe Insurance Products Funds VIP Contrafund Portfoio Initia Cass VIP Growth Portfoio Initia Cass VIP Growth & Income Portfoio Initia Cass VIP High Income Portfoio Service Cass 2 VIP Index 500 Portfoio Initia Cass VIP Mid Cap Portfoio Service Cass 2 VIP Overseas Portfoio Initia Cass Frankin Tempeton Variabe Insurance Products Trust Frankin Goba Rea Estate VIP Fund Cass 2 Frankin Mutua Shares VIP Fund Cass 2 Frankin Sma Cap Vaue VIP Fund Cass 2 Frankin Sma-Mid Cap Growth VIP Fund Cass 2 Frankin U.S. Government Securities VIP Fund Cass 2 Tempeton Growth VIP Fund Cass 2 J.P.Morgan Insurance Trust J.P.Morgan Insurance Trust Mid Cap Vaue Portfoio Cass 1 J.P.Morgan Insurance Trust Sma Cap Core Portfoio Cass 1 T. Rowe Price Equity Series, Inc. Equity Income Portfoio Mid-Cap Growth Portfoio New America Growth Portfoio Persona Strategy Baanced Portfoio T. Rowe Price Internationa Series, Inc. Internationa Stock Portfoio You may aso aocate Net Premiums to the Decared Interest Option, which is supported by our Genera Account. We credit amounts aocated to the Decared Interest Option with at east a 4% annua interest rate. Pease note that the Poicies and Investment Options are not bank deposits, are not federay insured, are not guaranteed to achieve their goas and are subject to risks, incuding oss of the amount invested. We do not guarantee the amount and/or duration of insurance coverage under the Poicy. This Prospectus provides basic information that you shoud know before purchasing the Poicy. You shoud consider the Poicy in conjunction with other insurance you own. Repacing your existing ife insurance with this Poicy may not be to your advantage. In addition, it may not be to your advantage to finance the purchase or maintenance of this Poicy through a oan or through withdrawas from another poicy. Pease consut your registered representative or financia adviser. The Securities and Exchange Commission has not approved these securities or determined that this Prospectus is accurate or compete. Any representation to the contrary is a crimina offense. Pease read this Prospectus carefuy and retain it for future reference. Issued By: Farm Bureau Life Insurance Company 5400 University Avenue West Des Moines, Iowa (800)

4 (This page has been eft bank intentionay.)

5 TABLE OF CONTENTS POLICY BENEFITS/RISKS SUMMARY Poicy Benefits Poicy Risks Portfoio Risks FEE TABLES FARM BUREAU LIFE INSURANCE COMPANY AND THE VARIABLE ACCOUNT Farm Bureau Life Insurance Company The Variabe Account Investment Options Addition, Deetion or Substitution of Investments Voatiity Management Strategies THE POLICY Purchasing the Poicy Premiums Examination of Poicy (Canceation Priviege) Poicy Lapse and Reinstatement POLICY BENEFITS Accumuated Vaue Benefits Transfers Asset Aocation Program Loan Benefits Death Proceeds Acceerated Payments of Death Proceeds Benefits at Maturity CHARGES AND DEDUCTIONS Premium Expense Charge Monthy Deduction Transfer Charge Partia Withdrawa Fee Surrender Charge Variabe Account Charges THE DECLARED INTEREST OPTION Transfers, Partia Withdrawas, Surrenders and Poicy Loans ADDITIONAL INSURANCE BENEFITS Acceerated Payments of Death Proceeds GENERAL PROVISIONS Specia Transfer Priviege Change of Provisions Ownership The Beneficiary Change of Address DISTRIBUTION OF THE POLICIES FEDERAL TAX MATTERS Introduction Tax Status of the Poicy Tax Treatment of Poicy Benefits Possibe Tax Law Changes Taxation of the Company Page 1

6 PAYMENT OPTIONS ADDITIONAL INFORMATION Voting Rights Eectronic Transactions Postponement of Payments Lega Proceedings Business Disruption and Cyber Security Risks FINANCIAL STATEMENTS STATEMENT OF ADDITIONAL INFORMATION GLOSSARY G- STATEMENT OF ADDITIONAL INFORMATION TABLE OF CONTENTS SAI-TOC The Poicy is not avaiabe in a States. This Prospectus constitutes an offering ony in those jurisdictions where such offering may awfuy be made. Farm Bureau Life has not authorized any deaer, saesman or other person to give any information or make any representations in connection with this offering other than those contained in this Prospectus. Do not rey on any such other information or representations. Page 2

7 POLICY BENEFITS/RISKS SUMMARY This summary describes the Poicy s important benefits and risks. The sections in the Prospectus foowing this summary discuss the Poicy s benefits and other provisions in more detai. The Gossary at the end of the Prospectus defines certain words and phrases used in this Prospectus. POLICY BENEFITS Your Poicy is a nonparticipating fexibe premium variabe ife insurance poicy that provides ife insurance protection in the event of the death of the Insured. The death benefit proceeds payabe to the Beneficiary may, and your Accumuated Vaue under the Poicy wi, vary based on the investment performance of the Subaccounts you choose and the amount of interest credited in the Decared Interest Option. You may make withdrawas and oans from your Accumuated Vaue under the Poicy subject to certain conditions described in this Prospectus. You may surrender your Poicy at any time. Death Benefit Death Benefit Proceeds: We pay the death benefit (ess any Poicy Debt pus any unearned oan interest and any premiums paid after the date of death) to the Beneficiary when the Insured dies. We wi increase the death benefit by the amount of any additiona insurance provided by optiona benefit rider(s). Death Benefit Options: You may choose between two death benefit options under the Poicy. After the first Poicy Year, you may change death benefit options and the Specified Amount (which is the amount of insurance you seect) whie the Poicy is in force. Changing the death benefit option or Specified Amount may have tax consequences. We cacuate the amount avaiabe under each death benefit option monthy and as of the Insured s date of death. Increasing Death Benefit Option is equa to the greater of: (1) the sum of the current Specified Amount and the Accumuated Vaue; or (2) the Accumuated Vaue mutipied by a specified amount factor for the Insured s Attained Age, as set forth in the Poicy (referred to hereinafter as the Corridor Death Benefit ). Leve Death Benefit Option is equa to the greater of: (1) the current Specified Amount; or (2) the Corridor Death Benefit. Living Benefit (Acceerated Death Benefit) Rider: Under the iving benefit rider, which is avaiabe at no charge, you may receive acceerated payment of part of your death benefit if the Insured deveops a termina iness. Requesting an acceerated benefit payment under this rider may have tax consequences. Death Benefit Guarantee Rider: Under the Death Benefit Guarantee Rider, which is avaiabe at no charge, your Poicy wi not apse (expire without vaue) even if the Accumuated Vaue during the first three Poicy Years (Net Surrender Vaue if you ve taken a oan on your Poicy) or the Net Surrender Vaue after the first three Poicy Years is not enough to cover monthy charges provided you pay the death benefit guarantee monthy premium. We wi notify you of any shortfa which must be paid within a 61-day Grace Period. 3

8 Surrenders, Partia Withdrawas, Transfers and Poicy Loans Surrenders: At any time whie your Poicy is in force, you may make a written request to us at our Home Office to surrender your Poicy and receive the Net Surrender Vaue. The Net Surrender Vaue is the Surrender Vaue ess any Poicy Debt pus any unearned oan interest. A surrender may have tax consequences. Partia Withdrawas: At any time whie your Poicy is in force, you may make a written request to withdraw part of the Net Surrender Vaue. The partia withdrawa must be at east $500 and may not exceed the esser of Net Surrender Vaue ess $500 or 90% of Net Surrender Vaue (uness a higher percentage is permitted in your state). Partia withdrawas may have tax consequences. Transfers: Subject to certain imitations, you may transfer amounts among the Subaccounts an unimited number of times in a Poicy Year. The initia transfer in each Poicy Year wi be competed without charge. (The maximum charge we may assess for transfers is $25.) We may assess a $10 charge for each transfer after the first transfer in a Poicy Year. (The Company has extended this priviege to aow the first tweve transfers in a Poicy Year to be competed without charge. The Company may assess a $10 charge for the thirteenth and each subsequent transfer. This priviege may be terminated at any time.) You may ony make one transfer per Poicy Year from the Decared Interest Option to the Variabe Account. Loans: You may take a oan from your Poicy at any time. The maximum oan amount you may take is 90% of the Net Surrender Vaue of the Poicy at the end of the Vauation Period during which we receive your request for a oan (uness a higher percentage is permitted in your state). We charge you a maximum annua interest rate on your oan equa to the greater of 5.5% or the Pubished Monthy Average of the Composite Yied on Seasoned Corporate Bonds pubished by Moody s Investors Services, Inc., as described under POLICY BENEFITS Loan Benefits Loan Interest Charged on page 36. We credit interest on amounts transferred from the Variabe Account and hed as security for the oan at an effective annua rate equa to the greater of 4% or the current effective oan interest rate minus no more than 3%, as determined by the Company. After the tenth Poicy Year, we may aow you to take a oan in an amount equa to or ess than the gain under the Poicy with a net annua interest rate of 0%. Loans may have tax consequences. Premiums Fexibiity of Premiums: After you pay the initia premium, you may pay subsequent premiums at any time (prior to the Maturity Date) and in any amount (athough we reserve the right to require a minimum of $100), subject to a certain maximum. You may seect a premium payment pan to pay premiums monthy, quartery, semi-annuay or annuay. You are not required to pay premiums according to the pan. Canceation Priviege: When you receive your Poicy, the free-ook period begins. You may return your Poicy during this period and receive a refund. We wi refund an amount equa to the greater of: (1) the premiums paid; or (2) the Accumuated Vaue on the Business Day we receive the Poicy at our Home Office pus any charges deducted. The free-ook period expires at midnight on the 30th day after you receive the Poicy. This period wi be onger if required by state aw. The Poicy Ownership Rights: Whie the Insured is iving, you, as the owner of the Poicy, may exercise a of the rights and options described in the Poicy. These rights incude seecting 4

9 and changing the Beneficiary, changing the Poicyowner and assigning the Poicy. Changing the Poicyowner or assigning the Poicy may have tax consequences. Variabe Account: You may direct the money in your Poicy to any of the Subaccounts of the Variabe Account. Each Subaccount invests excusivey in one of the Investment Options isted on the first page of this Prospectus. Decared Interest Option: You may pace money in the Decared Interest Option where it is guaranteed to earn at east 4% annua interest. We may decare higher rates of interest, but are not obigated to do so. Accumuated Vaue: Accumuated Vaue is the sum of the vaues of your Poicy in the Subaccounts and the Decared Interest Option and any amounts transferred to the Decared Interest Option to secure any outstanding Poicy Debt. Accumuated Vaue varies from day to day depending on the investment performance of the Subaccounts you choose, interest we credit to the Decared Interest Option, charges we deduct and any other transactions (e.g., transfers, partia withdrawas and oans). We do not guarantee a minimum Accumuated Vaue. Payment Options: There are severa ways of receiving proceeds under the death benefit, surrender, partia withdrawa and maturity provisions of the Poicy, other than in a ump sum. None of the avaiabe payment options vary with the investment performance of the Variabe Account. Other options may be avaiabe. More detaied information concerning these payment options is avaiabe on request from our Home Office. Asset Aocation Program: You may eect to participate in the asset aocation program and aocate a of your Premiums to one of the four (4) asset aocation mode portfoios made avaiabe under the program to assist you in seecting Investment Options (see POLICY BENEFITS Asset Aocation Program ). Each mode portfoio represents a different eve of risk toerance: Moderate Conservative, Moderate, Moderate Aggressive and Aggressive. Once you seect a mode portfoio, your seection wi remain unchanged unti you seect a new mode portfoio or eect to end your participation in the asset aocation program. There is no separate charge for participating in the asset aocation program, nor is there a charge to change to a different mode portfoio. There is no guarantee that a mode portfoio in the asset aocation program wi not ose money or experience voatiity. Suppementa Benefits and Riders We offer severa riders that provide suppementa benefits under the Poicy, such as the Universa Cost of Living Rider, which provides for an automatic increase in Specified Amount every three (3) years according to the Consumer Price Index, unti the ater of age 65 or the 10th Poicy Anniversary. We generay deduct any monthy charges for these riders from Accumuated Vaue as part of the monthy deduction. Your registered representative can hep you determine whether any of these riders are suitabe for you. These riders may not be avaiabe in a states. Pease contact us at our Home Office for further detais. See ADDITIONAL INSURANCE BENEFITS for a description of each rider avaiabe under the Poicy. POLICY RISKS Investment Risk If you invest your Accumuated Vaue in one or more Subaccounts, you wi be subject to the risk that the investment performance of the Subaccounts wi be unfavorabe and that, due both to the unfavorabe performance and the resuting higher insurance charges, the Accumuated Vaue wi decrease. You wi aso be subject to the risk that the investment performance of the Subaccounts 5

10 you seect may be ess favorabe than that of other Subaccounts. In order to keep the Poicy in force, you may be required to pay more premiums than originay panned. You coud ose everything you invest. If you aocate Net Premiums to the Decared Interest Option, we wi credit your Accumuated Vaue (in the Decared Interest Option) with a decared rate of interest. However, you assume the risk that the rate may decrease, athough it wi never be ower than the guaranteed annua rate of 4%. Risk of Lapse If your Accumuated Vaue during the first three Poicy Years (Net Surrender Vaue if you ve taken a oan on your Poicy), or Net Surrender Vaue after the first three Poicy Years is not enough to pay the charges deducted each month, your Poicy may enter a 61-day Grace Period (31 days in certain states). We wi notify you that the Poicy wi apse (terminate without vaue) at the end of the Grace Period uness you make a sufficient payment. Your Poicy wi generay not apse at the end of a Grace Period if you make a premium payment that, when reduced by the premium expense charge, wi be at east equa to three times the monthy charges under the Poicy immediatey preceding the Grace Period. You may reinstate a apsed Poicy subject to certain conditions. However, your Poicy wi not enter the Grace Period if you seected the optiona Death Benefit Guarantee Rider and you have paid sufficient premiums to meet the cumuative death benefit guarantee premium test on each Monthy Deduction Day. Under current Company practice, your Poicy wi not enter the Grace Period during the fourth Poicy Year, regardess of the Net Surrender Vaue, if you have paid the cumuative Threshod Premium. (The Threshod Premium is a specified amount of premium which is based on the age, sex and underwriting cass of the Insured, the Specified Amount of the Poicy and the types and amounts of any additiona benefits under the Poicy. We use this amount to cacuate the premium expense charge. We aso use the Threshod Premium to cacuate registered representatives compensation.) This is a current Company practice, which is not guaranteed and can be changed at any time. Tax Risks In order to quaify as a ife insurance contract for federa income tax purposes and receive the tax treatment normay accorded ife insurance contracts under federa tax aw, a ife insurance poicy must satisfy certain requirements which are set forth in the Interna Revenue Code. Guidance as to how these requirements are to be appied is imited. Nevertheess, we beieve that a Poicy issued on the basis of a standard rate cass shoud satisfy the appicabe requirements. There is ess guidance, however, with respect to a Poicy issued on a substandard basis (i.e., an underwriting cass invoving higher than standard mortaity risk.) It is not cear whether such a Poicy wi in a cases satisfy the appicabe requirements, particuary if you pay the fu amount of premiums permitted under the Poicy. Assuming that a Poicy quaifies as a ife insurance contract for federa income tax purposes, you shoud not be deemed to be in constructive receipt of Accumuated Vaue under a Poicy unti there is a distribution from the Poicy. Moreover, death benefits payabe under a Poicy generay shoud be excudabe from the gross income of the Beneficiary, but may be subject to estate taxes. As a resut, the Beneficiary generay shoud not be taxed on these proceeds. Depending on the tota amount of premiums you pay, the Poicy may be treated as a modified endowment contract ( MEC ) under federa tax aws. If a Poicy is treated as a MEC, any surrenders, partia withdrawas and oans under the Poicy wi be taxabe as ordinary income to the extent there are earnings in the Poicy. In addition, a 10% penaty tax may be imposed on surrenders, partia withdrawas and oans taken before you reach age If the Poicy is not a MEC, distributions generay wi be treated first as a return of basis or investment in the contract and then as taxabe income. Moreover, oans wi generay not be treated as distributions. 6

11 However, the tax consequences associated with oans on Poicies in force for ten years or more is uncear. Finay, neither distributions nor oans from a Poicy that is not a MEC are subject to the 10% penaty tax. See FEDERAL TAX MATTERS. You shoud consut a quaified tax adviser for assistance in a Poicy-reated tax matters. Partia Withdrawa and Surrender Risks The Surrender Charge under the Poicy appies for the first six Poicy Years in the event you surrender your Poicy and may be considerabe. (The Surrender Charge aso appies to an increase in Specified Amount if a surrender occurs within six Poicy Years foowing the increase in Specified Amount.) It is possibe that you wi receive no Net Surrender Vaue if you surrender your Poicy in the first few Poicy Years. You shoud purchase the Poicy ony if you have the financia abiity to keep it in force for a substantia period of time. You shoud not purchase the Poicy if you intend to surrender a or part of the Accumuated Vaue in the near future. We designed the Poicy to meet ong-term financia goas. The Poicy is not suitabe as a short-term investment. Even if you do not ask to surrender your Poicy, Surrender Charges may pay a roe in determining whether your Poicy wi apse (terminate without vaue), because Surrender Charges affect the Net Surrender Vaue which is a measure we use to determine whether your Poicy wi enter a Grace Period (and possiby apse). See Risk of Lapse above. Partia withdrawas must be at east $500 and may not exceed the esser of (1) the Net Surrender Vaue ess $500; or (2) 90% of the Net Surrender Vaue. Partia withdrawas are assessed a charge equa to the esser of $25 or 2% of the Accumuated Vaue withdrawn. A partia withdrawa or surrender may have tax consequences. Poicy Loan Risks A Poicy Loan, whether or not repaid, wi affect Accumuated Vaue over time because we subtract the amount of the Poicy Loan from the Subaccounts and/or Decared Interest Option as coatera, and this oan coatera does not participate in the investment performance of the Subaccounts or receive any higher interest rate credited to the Decared Interest Option. We reduce the amount we pay on the Insured s death by any outstanding Poicy Debt. Your Poicy may apse (terminate without vaue) if Poicy Debt pus any unearned oan interest reduces your Net Surrender Vaue to zero. If you surrender the Poicy or aow it to apse whie a Poicy Loan is outstanding, the amount of the oan, to the extent it has not previousy been taxed, wi be added to any amount you receive and taxed accordingy. Risk of An Increase in Current Fees and Expenses Certain fees and expenses are currenty assessed at ess than their maximum eves. We may increase these current charges in the future up to the guaranteed maximum eves. If fees and expenses are increased, you may need to increase the amount and/or frequency of premiums to keep the Poicy in force. PORTFOLIO RISKS A comprehensive discussion of the risks of each Investment Option may be found in the respective Fund s summary prospectus or prospectus. Pease refer to each Fund s summary prospectus or prospectus for more information. There is no assurance that any Fund wi achieve its stated investment objective. 7

12 FEE TABLES The foowing tabes describe the fees and expenses that are payabe when buying, owning and surrendering the Poicy. The first tabe describes the fees and expenses that are payabe at the time you buy the Poicy, surrender the Poicy or transfer Accumuated Vaue among the Subaccounts and Decared Interest Option. Transaction Fees Amount Deducted When Charge is Maximum Guaranteed Amount Deducted Charge Deducted Charge* Current Charge Premium Expense Charge Upon receipt of each premium payment 7% of each premium payment 7% of each premium payment (1) Partia Withdrawa Fee Upon partia withdrawa 2% of the Accumuated Vaue withdrawn, not to exceed $25 Surrender Charge (2) Minimum Charge (3) Maximum Charge (4) Charge for Mae, Attained Age 30, Non-Tobacco in first Poicy Year Upon a fu surrender of your Poicy during the first six Poicy Years, and for the first six Poicy Years foowing an increase in Specified Amount to the extent of the increase $3.18 per $1,000 of Specified Amount or Specified Amount increase $34.49 per $1,000 of Specified Amount or Specified Amount increase $6.29 per $1,000 of Specified Amount or Specified Amount increase Transfer Charge Upon transfer First transfer in a Poicy Year is free, $25 for each subsequent transfer 2% of the Accumuated Vaue withdrawn, not to exceed $25 $3.18 per $1,000 of Specified Amount or Specified Amount increase $34.49 per $1,000 of Specified Amount or Specified Amount increase $6.29 per $1,000 of Specified Amount or Specified Amount increase First tweve transfers in a Poicy Year are free, $10 for each subsequent transfer Iustrative Report Upon request for each additiona report in a Poicy Year $25 per report $0 per report * We may charge fees and use rates that are ower than the maximum guaranteed charge. Current charges are the fees and rates currenty in effect. Any changes in current charges wi be prospective and wi never exceed the maximum charge. 8

13 The next tabes describe the fees and expenses that you wi pay periodicay during the time that you own your Poicy, not incuding expenses of each Investment Option. Periodic Charges (Other than Investment Option Operating Expenses) Amount Deducted When Charge is Maximum Guaranteed Amount Deducted Charge Deducted Charge Current Charge Cost of Insurance Charge (5) Minimum Charge (6) Maximum Charge (7) Charge for Mae, Attained Age 35, Non-Tobacco Monthy, on the Monthy Deduction Day $0.06 per $1,000 net amount at risk (13) $90.91 per $1,000 net amount at risk $0.12 per $1,000 net amount at risk $0.02 per $1,000 net amount at risk $59.52 per $1,000 net amount at risk $0.07 per $1,000 net amount at risk Monthy Poicy Expense Charge (8) First-Year Monthy Poicy Expense Charge (9) Monthy, on the Monthy Deduction Day Monthy, on the Monthy Deduction Day for the first 12 Poicy Months $7 $7 $7 $7 First-Year Monthy Per $1,000 Charge (10) Monthy, on the Monthy Deduction Day for the first 12 Poicy Months, and for the first 12 Poicy Months foowing an increase in Specified Amount to the extent of the increase $0.07 per $1,000 of Specified Amount or Specified Amount increase $0.07 per $1,000 of Specified Amount or Specified Amount increase Mortaity and Expense Risk Charge Daiy Effective annua rate of 0.90% of the average daiy net assets of each Subaccount you are invested in Effective annua rate of 0.90% of the average daiy net assets of each Subaccount you are invested in Poicy Loan Interest Spread (11) On the Poicy Anniversary or earier, as appicabe (12) Greater of Moody s Pubished Monthy Average of the Composite Yied on Seasoned Corporate Bonds for the caendar month ending two months before determination of Poicy Loan Interest Rate or 5.5%, ess 4% 2.00% (effective annua rate) 9

14 Periodic Charges (Optiona Benefit Riders Ony) Amount Deducted When Charge is Maximum Guaranteed Amount Deducted Charge (14) Deducted Charge Current Charge Universa Cost of Living Increase Rider Minimum Charge (15) Maximum Charge (16) Charge for Mae, Attained Age 35, Non-Tobacco Monthy, on the Monthy Deduction Day $0.01 per $1,000 of Specified Amount $5.45 per $1,000 of Specified Amount $0.01 per $1,000 of Specified Amount $0.01 per $1,000 of Specified Amount $3.46 per $1,000 of Specified Amount $0.01 per $1,000 of Specified Amount Universa Waiver of Charges Rider (17) Monthy, on the Monthy Deduction Day Minimum Charge (18) 4.6% of cost of insurance charge 4.6% of cost of insurance charge Maximum Charge (19) 29.0% of cost of insurance charge 29.0% of cost of insurance charge Charge for Mae, Attained Age 35, Non-Tobacco 4.8% of cost of insurance charge 4.8% of cost of insurance charge Universa Chidren s Term Life Insurance Rider Monthy, on the Monthy Deduction Day $0.25 per $1,000 of rider coverage amount $0.25 per $1,000 of rider coverage amount Universa Guaranteed Insurabiity Option Rider Monthy, on the Monthy Deduction Day Minimum Charge (20) $0.01 per $1,000 of rider coverage amount $0.01 per $1,000 of rider coverage amount Maximum Charge (21) $0.14 per $1,000 of rider coverage amount $0.14 per $1,000 of rider coverage amount Charge for Mae, Attained Age 0, Non-Tobacco $0.01 per $1,000 of rider coverage amount $0.01 per $1,000 of rider coverage amount Universa Convertibe Term Life Insurance Rider Monthy, on the Monthy Deduction Day Minimum Charge (22) $0.13 per $1000 of rider coverage amount $0.07 per $1000 of rider coverage amount Maximum Charge (23) $1.48 per $1000 of rider coverage amount $1.48 per $1000 of rider coverage amount Charge for Mae, Attained Age 35, Non-Tobacco for $100,000 of Term Rider $0.24 per $1000 of rider coverage amount $0.17 per $1000 of rider coverage amount 10

15 Amount Deducted When Charge is Maximum Guaranteed Amount Deducted Charge (13) Deducted Charge Current Charge Universa Daiy Living Benefit Rider Monthy, on the Monthy Deduction Day Minimum Charge (24) Maximum Charge (25) Charge for Mae, Issue Age 35, Non-Tobacco $.12 per $1000 of rider coverage amount $.54 per $1000 of rider coverage amount $.12 per $1000 of rider coverage amount $.06 per $1000 of rider coverage amount $.27 per $1000 of rider coverage amount $.06 per $1000 of rider coverage amount (1) For poicies purchased prior to May 1, 2005, the current Premium Expense Charge is 7% of each premium payment. (2) The Surrender Charge equas a charge per $1,000 of Specified Amount, and varies based on the Insured s Issue Age, sex, underwriting cass and Poicy Year. The Surrender Charge shown in the tabe may not be representative of the charge you wi pay. Your Poicy s data page indicates the Surrender Charge appicabe to your Poicy. More detaied information concerning your Surrender Charge is avaiabe upon request from our Home Office. This charge is assessed during the first six Poicy Years, and during the first six Poicy Years foowing an increase in Specified Amount to the extent of the increase. The Surrender Charge decreases annuay over the Surrender Charge period. (3) The minimum charge shown is the first Poicy Year Surrender Charge for Insureds with the foowing characteristics: Femae, Issue Ages 0-17, Non-Tobacco: Femae, Issue Age 18, Non-Tobacco, Preferred Non-Tobacco or Super Preferred Non-Tobacco. (4) The maximum charge shown is the first Poicy Year Surrender Charge for Insureds with the foowing characteristics: Mae, Issue Ages 61-94, Non-Tobacco, Preferred Non-Tobacco or Super Preferred Non-Tobacco; Mae, Issue Ages 56-94, Tobacco or Preferred Tobacco; Femae, Issue Ages 65-93, Non-Tobacco, Preferred Non-Tobacco or Super Preferred Non- Tobacco; Femae, Issue Ages 63-93, Tobacco or Preferred Tobacco; Unisex, Issue Ages 62-93, Non-Tobacco, Preferred Non- Tobacco or Super Preferred Non-Tobacco; and Unisex, Issue Ages 57-93, Tobacco or Preferred Tobacco. (5) The cost of insurance charge wi vary based on factors incuding, but not imited to, the Insured s Attained Age, sex and underwriting cass. The cost of insurance charges shown in the tabe may not be typica of the charges you wi pay. Your Poicy s data page indicates the guaranteed cost of insurance charge appicabe to your Poicy. More detaied information concerning your cost of insurance charge is avaiabe on request from our Home Office. Aso, before you purchase the Poicy, we can provide you hypothetica iustrations of Poicy vaues based upon the Insured s age and risk cass, the death benefit option, Specified Amount, panned periodic premiums and riders requested. Pease consut your registered representative for information about your cost of insurance charge. (6) The minimum guaranteed cost of insurance charge assumes that the Insured has the foowing characteristics: Femae, Attained Age 10, Non-Tobacco. The minimum current cost of insurance charge assumes that the Insured has the foowing characteristics: Femae, Attained Age 0, Non-Tobacco. (7) The maximum guaranteed cost of insurance charge assumes that the Insured has the foowing characteristics: Mae, Femae or Unisex, Attained Ages , Non-Tobacco, Preferred Non-Tobacco, Super Preferred Non-Tobacco, Tobacco or Preferred Tobacco. For the maximum current cost of insurance charge, the Insured is assumed to be Mae, Attained Age 114, Tobacco. (In Utah, where the maturity age is 95, the maximum guaranteed rate is $ per $1,000 net amount at risk for a Mae, Tobacco or Preferred Tobacco at Attained Age 94. The current charge is $ per $1,000 net amount at risk for a Mae, Tobacco at Attained Age 94.) (8) For any poicy purchased prior to May 1, 2005, the current Monthy Poicy Expense Charge is $7.00. (9) For any poicy purchased prior to May 1, 2005, the current First-Year Monthy Poicy Charge is $7.00. (10) For any poicy purchased prior to May 1, 2005, the current First-Year Monthy Per $1,000 Charge is $0.07 per $1,000 of Specified Amount or Specified Amount increase. (11) The Poicy Loan Interest Spread is the difference between the amount of interest we charge you for a oan and the amount of interest we credit to the amounts we hod as security for Poicy Debt. The amount of interest that we charge you for a oan is guaranteed not to exceed the higher of the Pubished Monthy Average of the Composite Yied on Seasoned Corporate Bonds as pubished by Moody s Investors Service, Inc. for the caendar month ending two months before the date on which the oan interest rate is determined, or 5.5%. The amount of interest that we credit to the amounts we hod as security for Poicy Debt is guaranteed not to go beow 4%. Currenty, by Company practice, the Company aows a oan spread of 0% on the gain in a poicy in effect a minimum of ten years. This means that the poicy oan grows at the stated adjustabe oan interest rate, but the accumuated vaue attributed to this outstanding oan (up to the amount of gain after ten years) earns this same interest rate. This is not a guaranteed feature. 11

16 (12) Whie a Poicy Loan is outstanding, oan interest is payabe in advance on each Poicy Anniversary or, if earier, on the date of oan repayment, Poicy apse, surrender, termination or the Insured s death. For Poicies that have been in force ten years, we may aow a oan spread of 0% on a oan in an amount equa to or ess than the gain under the Poicy. (13) For an expanation of how we cacuate the net amount at risk under the Increasing Death Benefit Option and the Leve Death Benefit Option, see CHARGES AND DEDUCTIONS, Monthy Deduction, Net Amount at Risk. (14) Charges for the Universa Cost of Living Increase Rider, Universa Waiver of Charges Rider and Universa Convertibe Term Life Insurance Rider vary based on factors incuding, but not imited to, the Insured s Attained Age, sex and underwriting cass. The charge for the Universa Guaranteed Insurabiity Option Rider varies based on the Insured s Attained Age and sex. The charges shown in the tabe may not be typica of the charges you wi pay. The charge for the Universa Daiy Living Benefit Rider varies based on the Insured s Issue Age, sex and underwriting cass. More detaied information regarding these rider charges is avaiabe upon request from our Home Office. (15) The minimum Universa Cost of Living Increase Rider charge assumes that the Insured has the foowing characteristics: Femae, Attained Age 10, Non-Tobacco for the guaranteed charge and Attained Age 18, Super Preferred Non-Tobacco for the current charge. (16) The maximum guaranteed Universa Cost of Living Increase Rider charge assumes that the Insured has an Attained Age (Mae, Femae or Unisex; Non-Tobacco, Preferred Non-Tobacco, Super Preferred Non-Tobacco, Tobacco or Preferred Tobacco). The maximum current charge assumes the Insured has the foowing characteristics: Mae, Attained Age 114, Tobacco. (In Utah, where the maturity age is 95, the maximum guaranteed charge is $ per $1,000 of Specified Amount for a Mae, Attained Age 94, Tobacco or Preferred Tobacco. The current charge is $ per $1,000 of Specified Amount for a Mae, Attained Age 94, Tobacco.) (17) The cost of insurance charge on the Universa Waiver of Charges Rider aso takes into account charges for a additiona benefit riders attached to the Poicy. (18) The minimum guaranteed and minimum current Universa Waiver of Charges Rider charge assumes that the Insured has the foowing characteristics: Mae, Attained Ages 18-25, Non-Tobacco, Preferred Non-Tobacco or Super Preferred Non- Tobacco. (19) The maximum guaranteed and maximum current Universa Waiver of Charges Rider charge assumes that the Insured has the foowing characteristics: Femae, Attained Age 64, Tobacco or Preferred Tobacco. (20) The minimum guaranteed and minimum current Universa Guaranteed Insurabiity Option Rider charge assumes that the Insured has the foowing characteristics: Mae, Femae or Unisex; Age 0, Non-Tobacco. (21) The maximum guaranteed and maximum current Universa Guaranteed Insurabiity Option Rider charge assumes that the Insured has the foowing characteristics: Mae or Unisex; Attained Age 39, Non-Tobacco, Preferred Non-Tobacco, Super Preferred Non-Tobacco, Tobacco or Preferred Tobacco. (22) The minimum Universa Convertibe Term Life Insurance Rider charge assumes a 20-year term period. The minimum guaranteed charge is for a Femae, Non-Tobacco for issue ages Minimum current charge is for a Femae, Super Preferred Non-Tobacco for issue ages with a specified amount of $250,000+. Less expensive 10-year and 15-year term riders are aso avaiabe. Unti the state of Montana adopts the 2001 CSO tabe ony 10-year and 20-year term riders are avaiabe, and the minimum guaranteed and current charge is $0.035 per $1000 of rider coverage amount for a Femae, Issue Age 18, Super Preferred Non-Tobacco. (23) The maximum Universa Convertibe Term Life Insurance Rider charge assumes a 20-year term period. The maximum guaranteed charge is for a Mae, Tobacco, age 50. Maximum current charge is for a Mae, Tobacco, age 50 with a specified amount of ess than $100,000. Unti the state of Montana adopts the 2001 CSO tabe, the maximum guaranteed charge is $ per $1000 of rider coverage amount and the maximum current charge is $ per $1000 of rider coverage amount for Mae, Issue Age 55, Tobacco. (24) The minimum guaranteed and the minimum current Universa Daiy Living Benefit charges assume that the Insured has the foowing characteristics: Age 21-35, Non-Tobacco. (25) The maximum guaranteed and the maximum current Universa Daiy Living Benefit charges assume that the Insured has the foowing characteristics: Age 65, Tobacco. The next tabe shows the minimum and maximum fees and expenses (both before and after contractua fee waivers and expense reimbursements) charged by any of the Investment Options for the fisca year ended December 31, More detai concerning each Investment Option s fees and expenses is contained in the prospectus for each Investment Option. 12

17 Annua Investment Option Operating Expenses (expenses that are deducted from Investment Option assets) (25) Minimum Maximum Tota Annua Investment Option Operating Expenses (expenses that are deducted from Investment Option assets, incuding management fees, distribution and/or service (12b-) fees and other expenses) 0.10% 1.74% Tota Annua Investment Option Operating Expenses After Contractua Fee Waiver or Reimbursement (26) 0.10% 1.74% (25) For certain Investment Options, certain expenses were reimbursed or fees waived during It is anticipated that these vountary expense reimbursement and fee waiver arrangements wi continue past the current year, athough they may be terminated at any time. After taking into account these arrangements and any contractua expense reimbursement and fee waiver arrangements, annua Investment Option operating expenses woud have been: Minimum Maximum Tota Annua Investment Option Operating Expenses (expenses that are deducted from Investment Option assets, incuding management fees, distribution and/or service (12b-) fees and other expenses) 0.10% 1.39% (26) The Tota Annua Investment Option Operating Expenses After Contractua Fee Waiver or Reimbursement ine in the above tabe shows the range of minimum and maximum expenses based on the expenses of a Investment Options after taking into account contractua fee waiver or reimbursement arrangements in pace. Those contractua arrangements are designed to reduce tota annua portfoio operating expenses for Poicyowners and wi continue unti at east Apri 30, Three Investment Options currenty have contractua reimbursement or fee waiver arrangements in pace. FARM BUREAU LIFE INSURANCE COMPANY AND THE VARIABLE ACCOUNT Farm Bureau Life Insurance Company Farm Bureau Life Insurance Company is a stock ife insurance company which was incorporated in the State of Iowa on October 30, At December 31, 2017, Iowa Farm Bureau Federation owned shares of various casses representing 71.1% of the outstanding voting power of FBL Financia Group, Inc., which owns 100% of our voting shares. Our principa offices are at 5400 University Avenue, West Des Moines, Iowa The Variabe Account We estabished the Variabe Account as a separate account on March 3, The Variabe Account receives and invests the Net Premiums under the Poicy, and may receive and invest net premiums for any other variabe ife insurance poicies we issue. Income, gains, and osses, whether or not reaized, from assets aocated to the Variabe Account wi be credited to or charged against the Variabe Account without regard to our other income, gains or osses. The Variabe Account s assets are our property, and they are avaiabe to cover our genera iabiities ony to the extent that the Variabe Account s assets exceed its iabiities arising under the Poicies and any other poicies it supports. The portion of the Variabe Account s assets attributabe to the Poicies generay are not chargeabe with iabiities arising out of any other business that we may conduct. We may transfer to the Genera Account any Variabe Account assets which are in excess of such reserves and other Poicy iabiities. For exampe, we may transfer assets attributabe to our investment in the Variabe Account or fees and charges that have been earned. We are obigated to pay any amounts due under the Poicy. The Variabe Account currenty has 37 Subaccounts but may, in the future, incude fewer or additiona subaccounts. Each Subaccount invests excusivey in shares of a singe corresponding Investment Option. Income and reaized and unreaized gains or osses from the assets of each 13

18 Subaccount are credited to or charged against, that Subaccount without regard to income, gains or osses from any other Subaccount. We registered the Variabe Account as a unit investment trust under the Investment Company Act of The Variabe Account meets the definition of a separate account under the federa securities aws. Registration with the Securities and Exchange Commission (the SEC ) does not mean that the Commission supervises the management or investment practices or poicies of the Variabe Account or the Company. The Variabe Account is aso subject to the aws of the State of Iowa which reguate the operations of insurance companies domicied in Iowa. Investment Options The Variabe Account invests in shares of the Investment Options described beow. Each of these Investment Options was formed as an investment vehice for insurance company separate accounts. Each Investment Option is part of a mutua fund that is registered with the SEC as an open-end management investment company. This registration does not invove supervision of the management or investment practices or poicies of the portfoios or mutua funds by the SEC. Each Investment Option has its own investment objectives and separatey determines the income and osses for that Investment Option. Whie you may be invested in up to sixteen (16) Investment Options at any one time, incuding the Decared Interest Option, each premium payment you submit may be directed to a maximum of ten (10) Investment Options, incuding the Decared Interest Option. The investment objectives and poicies of certain Investment Options are simiar to the investment objectives and poicies of other portfoios that the same investment adviser, investment sub-adviser or manager may manage. The investment resuts of the Investment Options, however, may be higher or ower than the resuts of such other portfoios. There can be no assurance, and no representation is made, that the investment resuts of any of the Investment Options wi be comparabe to the investment resuts of any other portfoio, even if the other portfoio has the same investment adviser, investment sub-adviser or manager. The paragraphs beow summarize each Investment Option s investment objectives and poicies. There is no assurance that any Investment Option wi achieve its stated objectives. In addition, no singe Investment Option, by itsef, constitutes a baanced investment pan. Pease refer to the prospectus for each Investment Option for more detaied information, incuding a description of risks, for each Investment Option. The Investment Option prospectuses accompany this Prospectus. You shoud read them carefuy and retain them for future reference. Note: If you received a summary prospectus for an Investment Option isted beow, pease foow the directions on the first page of the summary prospectus to obtain a copy of the fu Fund prospectus. American Century Investments. American Century Investment Management, Inc. is the investment adviser to the Funds. Portfoio Investment Objective(s) and Principa Investments VP Capita Appreciation Fund This Fund seeks capita growth. The Fund pursues this objective by investing primariy in the common stock of medium- and sma-sized companies whose rate of growth in earnings and revenue the adviser beieves wi increase over time. The adviser wi aso consider the strength of a company s stock price reative to peer companies. VP Infation Protection Bond Fund This Fund seeks ong-term tota return. The Fund pursues this objective by using a strategy to protect against U.S. infation by investing substantiay a of its assets in investment-grade debt securities. 14

19 Portfoio VP Mid Cap Vaue Fund Investment Objective(s) and Principa Investments This Fund seeks ong-term capita growth. Its secondary goa is income. The Fund pursues its objective by investing in companies whose stock price may not refect the companies vaue. VP Utra Fund This Fund seeks ong-term capita growth. The Fund pursues this objective by investing in common stocks of arge companies with earnings and revenue that are not ony growing, but growing at a successivey faster, or acceerating pace. VP Vaue Fund This Fund seeks ong-term capita growth. Its secondary goa is income. The Fund pursues its objective by investing in companies the investment adviser beieves are undervaued at the time of purchase. Cavert Variabe Products, Inc. Cavert Research and Management ( CRM or the Adviser ) serves as the investment adviser to the Portfoios. Ameritas Investment Partners, Inc. serves as the investment subadviser to the Portfoios. Portfoio Cavert VP NASDAQ-100 Index Portfoio Investment Objective(s) and Principa Investments This Portfoio seeks investment resuts that correspond to the investment performance of U.S. common stocks, as represented by the NASDAQ-100 Index. The Portfoio wi typicay invest at east 80% of its assets in investments with economic characteristics simiar to the stocks represented in the NASDAQ-100 Index. This passive strategy aso seeks to imit transaction costs and portfoio turnover. Cavert VP Russe 2000 Sma Cap Index Portfoio Cavert VP S&P MidCap 400 Index Portfoio This Portfoio seeks investment resuts that correspond to the investment performance of U.S. common stocks, as represented by the Russe 2000 Index. The Portfoio wi typicay invest at east 80% of its assets in investments with economic characteristics simiar to sma cap stocks as represented in the Russe 2000 Index. This passive strategy aso seeks to imit transaction costs and portfoio turnover. This Portfoio seeks investment resuts that correspond to the tota return performance of U.S. common stocks, as represented by the S&P MidCap 400 Index. The portfoio wi typicay invest at east 80% of its assets in investments with economic characteristics simiar to midcap stocks as represented in the S&P MidCap 400 Index. This passive strategy aso seeks to imit transaction costs and portfoio turnover. 15

20 Dreyfus. The Dreyfus Corporation serves as the investment adviser to the Dreyfus Variabe Investment Fund and the Dreyfus Sustainabe U.S. Equity Portfoio, Inc. (1) Fayez Sarofim and Co. serves as the investment sub-adviser to the Dreyfus Variabe Investment Fund: Appreciation Portfoio and Newton Capita Management Limited serves as the investment sub-adviser to the Dreyfus Variabe Investment Fund: Internationa Equity Portfoio. Portfoio Investment Objective(s) and Principa Investments Dreyfus Sustainabe U.S. Equity Portfoio, Inc. Service Cass (1) This Fund seeks ong term capita appreciation. This Fund normay invests at east 80% of its assets pus any borrowings for investment purposes, in equity securities (or derivative instruments with simiar characteristics) of U.S. companies that demonstrate attractive investment attributes and sustainabe business practices and have no materia unresovabe environmenta, socia and governance (ESG) issues. Dreyfus Variabe Investment Fund: Appreciation Portfoio Initia Cass Dreyfus Variabe Investment Fund: Growth & Income Portfoio Initia Cass Dreyfus Variabe Investment Fund: Internationa Equity Portfoio Initia Cass Dreyfus Variabe Investment Fund: Opportunistic Sma Cap Portfoio Initia Cass This Portfoio seeks ong-term capita growth consistent with preservation of capita. Its secondary goa is current income. To pursue these goas, the Portfoio normay invests at east 80% of its assets in common stocks. The Portfoio focuses on bue chip companies with tota market capitaizations of more than $5 biion at the time of purchase, incuding mutinationa companies. This Portfoio seeks to provide ong-term capita growth, current income and growth of income, consistent with reasonabe investment risk. To pursue this goa, the Portfoio invests primariy in stocks of domestic and foreign issuers. This Portfoio seeks capita growth. To pursue this goa, the Portfoio invests primariy in growth stocks of foreign companies. Normay, the Portfoio invests at east 80% of its assets in stocks, incuding common stocks and convertibe securities, incuding those issued in initia pubic offerings. This Portfoio seeks capita growth. The Portfoio wi normay invest at east 80% of its net assets in the stocks of sma-cap companies. The Portfoio wi consider sma-cap companies to be those companies with market capitaizations that fa within the range of companies in the Russe 2000 Index at the time of purchase. (1) Formery named the Dreyfus Sociay Responsibe Growth Fund, Inc. Service Cass. 16

21 Federated Insurance Series. Federated Goba Investment Management Corp. serves as the investment adviser to the Federated Managed Tai Risk Fund II; Federated Equity Management Company of Pennsyvania serves as the investment adviser to the Federated Managed Voatiity Fund II; and Federated Investment Management Company serves as the investment adviser to the Federated Government Money Fund II and Federated Quaity Bond Fund II. Portfoio Investment Objective(s) and Principa Investments Federated Government Money The Fund is a money market fund that seeks to maintain a Fund II Service Shares (2) stabe net asset vaue (NAV) of $1.00 per Share. The Fund s investment objective is to provide current income consistent with stabiity of principa and iquidity. The Fund invests in a portfoio of U.S. Treasury and government securities maturing in 397 days or ess, as we as repurchase agreements coateraized fuy by U.S. Treasury and government securities. You coud ose money by investing in the Fund. Athough the Fund seeks to preserve the vaue of your investment at $1.00 per Share, it cannot guarantee it wi do so. An investment in the Fund is not insured or guaranteed by the Federa Deposit Insurance Corporation or any other government agency. The Fund s sponsor has no ega obigation to provide financia support to the Fund, and you shoud not expect that the sponsor wi provide financia support to the Fund at any time. Federated Managed Tai Risk Fund II Primary Shares (3) Federated Managed Voatiity Fund II Primary Shares (3) The Fund s investment objective is capita appreciation. The Fund seeks to achieve its investment objective by investing primariy in shares of other funds ( Underying Funds ) and utiizing a voatiity overay strategy to attempt to manage the risk of a significant negative movement in the vaue of the Fund s portfoio (commony referred to as tai risk). Such Underying Funds coud encompass affiiated and unaffiiated mutua funds, exchange-traded funds (ETFs) and other affiiated funds that are not offered to the pubic. The Fund may aso invest in securities and other investments directy. Under norma market conditions, the Fund expects to achieve a diversified mix of investment exposure to various asset casses. The asset casses in which the Fund invests incude both fixed income and equity but it is anticipated that the Fund wi, in an effort to maximize return, have a greater exposure to equity investments. The Fund s investment objective is to achieve high current income and moderate capita appreciation. The Fund pursues its investment objectives by investing in equity and fixedincome securities that have high income potentia, and overaying a managed voatiity strategy. The Fund s portfoio wi normay be invested in stocks, bonds, futures contracts, as we as certain other permitted investments. The Fund may aso invest in exchange-traded funds (ETFs) as an efficient means of carrying out its investment strategies. 17

22 Portfoio Federated Quaity Bond Fund II Primary Shares Investment Objective(s) and Principa Investments The Fund s investment objective is to provide current income. The Fund invests in a diversified portfoio of investment-grade, fixed-income securities consisting primariy of corporate debt securities, U.S. government and privatey issued mortgagebacked securities, and U.S. Treasury and agency securities. (2) Formery named the Federated Prime Money Fund II (3) The Investment Option incudes a voatiity management strategy as part of the Investment Option s investment objective and/or principa investment strategy. See Voatiity Management Strategies beow. Fideity Variabe Insurance Products Funds. Fideity Management & Research Company (FMR) is the fund s manager. FMR Co., Inc. (FMRC) and other investment advisers serve as sub-adviser for the fund. For VIP Index 500; Fideity Management & Research Company (FMR) is the fund s manager. Geode Capita Management, LLC (Geode ) and FMR Co., Inc. (FMRC) serve as sub-advisers for the fund. Portfoio Fideity VIP Contrafund Portfoio Initia Cass Investment Objective(s) and Principa Investments This Portfoio seeks ong-term capita appreciation. The Portfoio normay invests primariy in common stocks. The Portfoio invests in securities of companies whose vaue the adviser beieves is not fuy recognized by the pubic. Fideity VIP Growth Portfoio Initia Cass Fideity VIP Growth & Income Portfoio Initia Cass Fideity VIP High Income Portfoio Service Cass 2 Fideity VIP Index 500 Portfoio Initia Cass Fideity VIP Mid Cap Portfoio Service Cass 2 This Portfoio seeks to achieve capita appreciation. The Portfoio invests primariy in common stocks. The Portfoio invests in securities of companies the adviser beieves have above-average growth potentia. This Portfoio seeks high tota return through a combination of current income and capita appreciation. The Portfoio normay invests the majority of its assets in domestic and foreign common stocks, with a focus on those that pay current dividends and show potentia for capita appreciation. The Portfoio may potentiay invest in bonds, incuding ower quaity debt securities, as we as stocks that are not currenty paying dividends, but offer prospects for future income or capita appreciation. This Portfoio seeks a high eve of current income, whie aso considering growth of capita. The Portfoio normay invests primariy in domestic and foreign income-producing debt securities, preferred stocks and convertibe securities, with an emphasis on ower-quaity debt securities. This Portfoio seeks investment resuts that correspond to the tota return of common stocks pubicy traded in the United States, as represented by the S&P 500 Index. To achieve this objective, the Portfoio normay invests at east 80% of its assets in common stocks incuded in the S&P 500 Index. This Portfoio seeks ong-term growth of capita. The Portfoio normay invests at east 80% of assets in securities of companies with medium market capitaizations. The investment adviser invests primariy in either growth stocks or vaue stocks or both. 18

23 Portfoio Fideity VIP Overseas Portfoio Initia Cass Investment Objective(s) and Principa Investments This Portfoio seeks ong-term growth of capita. Normay, at east 80% of the Portfoio s tota assets wi be invested in common stocks of non-u.s. equity securities, aocating investments across different countries and regions. Frankin Tempeton Variabe Insurance Products Trust. Frankin Advisers, Inc. serves as the investment adviser to the Frankin Sma-Mid Cap Growth VIP and U.S. Government Securities VIP Funds; Frankin Advisory Services, LLC serves as the investment adviser to the Frankin Sma Cap Vaue VIP Fund; Frankin Mutua Advisers, LLC serves as the investment adviser to the Frankin Mutua Shares VIP Fund; Frankin Tempeton Institutiona, LLC serves as the investment adviser to the Frankin Goba Rea Estate VIP Fund; and Tempeton Goba Advisors Limited serves as the investment adviser to the Tempeton Growth VIP Fund. Portfoio Frankin Goba Rea Estate VIP Fund Cass 2 Investment Objective(s) and Principa Investments This Fund seeks high tota return. The Fund normay invests at east 80% of its net assets in investments of companies ocated anywhere in the word that operate in the rea estate sector. Frankin Mutua Shares VIP Fund Cass 2 Frankin Sma Cap Vaue VIP Fund Cass 2 Frankin Sma-Mid Cap Growth VIP Fund Cass 2 Frankin U.S. Government Securities VIP Fund Cass 2 Tempeton Growth VIP Fund Cass 2 This Fund seeks capita appreciation, with income as a secondary goa. Under norma market conditions, the Fund normay invests primariy in U.S. and foreign equity securities of companies the manager beieves are undervaued. The Fund aso invests, to a esser extent, in risk arbitrage securities and distressed companies. This Fund seeks ong-term tota return. Under norma market conditions, the Fund normay invests at east 80% of its net assets in investments of sma capitaization companies. This Fund seeks ong-term capita growth. Under norma market conditions, the Fund normay invests at east 80% of its net assets in investments of sma capitaization (sma cap) and mid capitaization (mid cap) companies. This Fund seeks income. Under norma market conditions, the Fund normay invests at east 80% of its net assets in U.S. government securities. This Fund seeks ong-term capita growth. Under norma market conditions, the Fund normay invests primariy in equity securities of companies ocated anywhere in the word, incuding those in the U.S. and in emerging markets. 19

24 J.P.Morgan Insurance Trust. J.P. Morgan Investment Management Inc. serves as the investment adviser to the Portfoios. Portfoio J.P.Morgan Insurance Trust Mid Cap Vaue Portfoio Cass 1 Investment Objective(s) and Principa Investments This Portfoio seeks capita appreciation with the secondary goa of achieving current income by investing in equity securities. The Portfoio normay invests primariy in equity securities of mid-cap companies with market capitaizations between $1 biion and $20 biion at the time of purchase. J.P.Morgan Insurance Trust Sma Cap Core Portfoio Cass 1 This Portfoio seeks capita growth over the ong term. The Portfoio normay invests primariy in equity securities of sma-cap companies with market capitaizations equa to those within the universe of the Russe 2000 Index at the time of purchase. T. Rowe Price Equity Series, Inc. T. Rowe Price Associates, Inc. is the investment adviser to the Portfoios. Portfoio Equity Income Portfoio Investment Objective(s) and Principa Investments This Portfoio seeks to provide a high eve of dividend income and ong-term capita growth through investments in arge-capitaization stocks of companies with a strong track record of paying dividends or that are undervaued. A vaue approach to investing carries the risk that the market wi not recognize a security s intrinsic vaue for a ong time or that a stock judged to be undervaued may actuay be appropriatey priced. Mid-Cap Growth Portfoio New America Growth Portfoio This Portfoio seeks ong-term capita appreciation by investing earnings in the common stocks of medium sized companies with the potentia for above-average earnings growth. The investment adviser defines mid-cap companies as those whose market capitaization fas within the range of companies in either the Standard & Poor s Mid Cap 400 Index or the Russe Mid Cap Growth Index. The stocks of mid-cap companies entai greater risk and are usuay more voatie than the shares of arger companies. This Portfoio seeks to provide ong-term growth of capita by investing primariy in the common stocks of U.S. companies operating in sectors the investment adviser beieves wi be the fastest growing. The Portfoio may be subject to above-average risk since growth companies pay few dividends and are typicay more voatie than sowergrowing companies with high dividends. 20

25 Portfoio Persona Strategy Baanced Portfoio Investment Objective(s) and Principa Investments This Portfoio seeks the highest tota return over time consistent with an emphasis on both capita growth and income. The Portfoio pursues its objective by investing in a diversified portfoio typicay consisting of approximatey 60% stocks, 30% bonds and 10% money market securities. Since the majority of the Portfoio is invested in stocks, the primary risk is decining share prices; the bond portion wi be subject to interest rate and credit risk. T. Rowe Price Internationa Series, Inc. T. Rowe Price Associates, Inc. is the investment adviser to the Portfoio. T. Rowe Price Internationa Ltd and T. Rowe Price Singapore Private Ltd are the investment sub-advisers. Portfoio Internationa Stock Portfoio Investment Objective(s) and Principa Investments This Portfoio seeks to provide ong-term growth of capita through investments primariy in the common stocks of estabished non-u.s. companies. This Portfoio is subject to the unique risks of internationa investing, incuding currency fuctuation. We seect the Investment Options offered through this Poicy based on severa criteria, incuding asset cass coverage, the strength of the investment adviser s reputation and tenure, brand recognition, performance, and the capabiity and quaification of each investment firm. Another factor we consider during the seection process is whether the Investment Option s investment adviser or an affiiate wi make payments to us or our affiiates. We review the Investment Options periodicay and may remove an Investment Option or imit its avaiabiity to new premiums and/or transfers of Accumuated Vaue if we determine that the Investment Option no onger meets one or more of the seection criteria, and/or if the Investment Option has not attracted significant aocations from Poicyowners. We do not provide any investment advice and do not recommend or endorse any particuar Investment Option. You bear the risk of any decine in the Accumuated Vaue of your Poicy resuting from the performance of the Investment Option you have chosen. We may receive different amounts of compensation from an investment adviser, distributor and/or affiiate(s) of one or more of the Funds based upon an annua percentage of the average assets we hod in the Investment Options. These amounts, which may vary by adviser, distributor and/or Fund affiiate(s), are intended to compensate us for administrative services we provide to the Funds and/or affiiate(s) and may be significant. The amounts we currenty receive on an annua basis range from 0.05% to 0.25% of the annua average assets we hod in the Investment Options. In addition, FBL Marketing Services, LLC, the principa underwriter of the Poicies, receives 12b-1 fees deducted from certain portfoio assets attributabe to the Poicy for providing distribution and sharehoder support services to some Investment Options. The 12b-1 fees are deducted from the assets of the Investment Option and decrease the Investment Option s investment return. The Company and its affiiates may profit from these payments. Addition, Deetion or Substitution of Investments We reserve the right, subject to compiance with appicabe aw, to make additions to, deetions from or substitutions for the shares of the Investment Options that the Variabe Account hods or that the Variabe Account may purchase. If the shares of an Investment Option are no onger avaiabe for investment or if, in our judgment, further investment in any Investment Option shoud 21

26 become inappropriate in view of the purposes of the Variabe Account, we reserve the right to dispose of the shares of any Investment Option and to substitute shares of another Investment Option. We may substitute shares of funds with fees and expenses that are different from the Funds. We wi not substitute any shares attributabe to a Poicyowner s Accumuated Vaue in the Variabe Account without notice to and prior approva of the Securities and Exchange Commission, to the extent required by the Investment Company Act of 1940 or other appicabe aw. In the event of any such substitution or change, we may, by appropriate endorsement, make such changes in these and other poicies as may be necessary or appropriate to refect such substitution or change. Nothing contained in this Prospectus sha prevent the Variabe Account from purchasing other securities for other series or casses of poicies, or from permitting a conversion between series or casses of poicies on the basis of requests made by Poicyowners. We aso reserve the right to estabish additiona subaccounts of the Variabe Account, each of which woud invest in shares of a new Investment Option, with a specified investment objective. We may imit the avaiabiity of any new Investment Option to certain casses of purchasers. We may estabish new subaccounts when, in our soe discretion, marketing, tax or investment conditions warrant, and we may make any new subaccounts avaiabe to existing Poicyowners on a basis we determine. Subject to obtaining any approvas or consents required by appicabe aw, we may transfer the assets of one or more Subaccounts to any other Subaccount(s), or one or more Subaccounts may be eiminated or combined with any other Subaccount(s) if, in our soe discretion, marketing, tax or investment conditions warrant. If we deem it to be in the best interests of persons having voting rights under the Poicies, we may operate the Variabe Account as a management company under the Investment Company Act of 1940, deregister the Variabe Account under that Act in the event such registration is no onger required, or, subject to obtaining any approvas or consents required by appicabe aw, combine the Variabe Account with other Company separate accounts. To the extent permitted by appicabe aw, we may aso transfer the Variabe Account s assets associated with the Poicies to another separate account. In addition, we may, when permitted by aw, restrict or eiminate any voting rights of Poicyowners or other persons who have voting rights as to the Variabe Account. (See ADDITIONAL INFORMATION Voting Rights. ) Voatiity Management Strategies Investment Options that utiize a voatiity management strategy are designed to reduce the overa voatiity of the Investment Option and provide you with risk-adjusted returns over time. During rising markets, the voatiity management strategy, however, coud resut in your Accumuated Vaue rising ess than woud have been the case had you been invested in an Investment Option that does not utiize a voatiity management strategy. Conversey, investing in an Investment Option that features a voatiity management strategy may be hepfu in a decining market when high market voatiity triggers a reduction in the Investment Option s equity exposure, because during these periods of high voatiity, the risk of osses from investing in equity securities may increase. In these instances, your Accumuated Vaue may decine ess than woud have been the case had you not been invested in an Investment Option that features a voatiity management strategy. Pease further note that Investment Options may utiize voatiity management techniques that differ from each other. Pease see the Investment Options prospectuses for more information about the Investment Options objective and strategies. 22

27 THE POLICY Purchasing the Poicy In order to issue a Poicy, we must receive a competed appication, incuding payment of the initia premium, at our Home Office. We ordinariy wi issue a Poicy ony for Insureds who are 0 to 80 years of age at their ast birthday and who suppy satisfactory evidence of insurabiity to the Company. Acceptance is subject to our underwriting rues and we may, in our soe discretion, reject any appication or premium for any awfu reason. The minimum Specified Amount for which we wi issue standard-rated and preferred-rated Poicies is normay $50,000 and $100,000, respectivey, athough we may, in our discretion, issue Poicies for ower Specified Amounts. We may issue a Poicy with a minimum Specified Amount of $25,000. For any Poicy issued with a Specified Amount from $25,000 to $49,999 we must receive an initia payment of at east 90% of the Guideine Singe Premium (as defined under Interna Revenue Code Section 7702). The effective date of insurance coverage under the Poicy wi be the atest of: the Poicy Date, the date the Insured signs the ast of any amendments to the initia appication required by our underwriting rues, or the date when we receive the fu initia premium at our Home Office. The Poicy Date is the date the Company approves the Poicy for issuance. The Poicy Date may aso be any other date mutuay agreed to by you and the Company. However, if the Poicy Date is the 29th, 30th or 31st of any month, the Poicy Date wi be the 28th of such month. We use the Poicy Date to determine Poicy Years, Poicy Months and Poicy Anniversaries. The Poicy Date may, but wi not aways, coincide with the effective date of insurance coverage under the Poicy. The Company no onger offers the Poicy to new purchasers. Athough the Poicy is no onger avaiabe to new purchasers, a rights and benefits under the Poicy continue to be avaiabe to Poicyowners. Athough we do not anticipate deays in our receipt and processing of appications, premium payments or transaction requests, we may experience such deays to the extent registered representatives fai to forward appications, premium payments and transaction requests to our Home Office on a timey basis. Premiums Subject to certain imitations, you have fexibiity in determining the frequency and amount of premiums. Premium Fexibiity. We do not require you to pay premiums in accordance with a rigid and infexibe premium schedue. We may require you to pay an initia premium that, when reduced by the premium expense charge, wi be sufficient to pay the monthy deduction for the first Poicy Month. Thereafter, subject to the minimum and maximum premium imitations described beow, you may aso make unschedued premium payments at any time prior to the Maturity Date. You shoud forward a premium payments to our Home Office. If mandated under appicabe aw, the Company may be required to reject a premium payment. We may aso be required to provide additiona information about you and your account to government reguators. 23

28 Panned Periodic Premiums. You determine a panned periodic premium schedue that provides for the payment of a eve premium over a specified period of time on a quartery, semi-annua or annua basis. We may, at our discretion, permit you to make panned periodic premium payments on a monthy basis. We ordinariy wi send you periodic reminder notices for each panned periodic premium. Depending on the duration of the panned periodic premium schedue, the timing of panned payments coud affect the tax status of your Poicy. (See FEDERAL TAX MATTERS. ) You are not required to pay premiums in accordance with the panned periodic premium schedue. Furthermore, you have considerabe fexibiity to ater the amount, frequency and the time period over which you pay panned periodic premiums; however, we must consent to any panned periodic payment ess than $100. Changes in the panned premium schedue may have federa income tax consequences. (See FEDERAL TAX MATTERS. ) Paying a panned periodic premium wi not guarantee that your Poicy remains in force. Thus, even if you pay panned periodic premiums, the Poicy wi nevertheess apse if, during the first three Poicy years, Net Accumuated Vaue (Net Surrender Vaue if you ve taken a oan on your Poicy) or, after three Poicy Years, Net Surrender Vaue is insufficient on a Monthy Deduction Day to cover the monthy deduction (see CHARGES AND DEDUCTIONS Monthy Deduction ) and a Grace Period expires without a sufficient payment (see THE POLICY Poicy Lapse and Restatement Lapse ). However, your Poicy wi not enter the Grace Period if you seected the optiona Death Benefit Guarantee Rider and you have paid sufficient premiums to meet the cumuative death benefit guarantee premium test on each Monthy Deduction Day. Under current Company practice, your Poicy wi not enter the Grace Period during the fourth Poicy Year, regardess of the Net Surrender Vaue, if you have paid the cumuative Threshod Premium. See Footnote One on page 6 and the Gossary for a description of the Threshod Premium. This is a current Company practice, which is not guaranteed and can be changed at any time. Death Benefit Guarantee Premiums. If you seected the optiona Death Benefit Guarantee Rider, your Poicy s data page wi show a Death Benefit Guarantee Monthy Premium. On each Monthy Deduction Day, we wi compare the cumuative actua premiums you have paid with the cumuative death benefit guarantee monthy premiums to see if the death benefit guarantee provision wi prevent your Poicy from apsing. If you meet the death benefit guarantee premium requirement, then the Poicy wi not enter a grace period even if its Net Surrender Vaue is not enough to cover the monthy deduction due. The death benefit guarantee premium requirement is met when (a) is equa to or greater than (b) where: (a) is the sum of a premiums paid on the Poicy (accumuated from the date of payment at the prepayment interest rate shown on the Poicy data page), ess the sum of a partia withdrawas (accumuated from the date of each withdrawa at the prepayment interest rate), and ess any Poicy Loans and unpaid oan interest; and (b) is the sum of the death benefit guarantee monthy premiums since the Poicy Date accumuated at the prepayment interest rate assuming that the premiums are paid on each Monthy Deduction Day. Your Poicy must satisfy the death benefit guarantee premium test on each Monthy Deduction Day to keep this rider in effect. For exampe: Your Poicy was issued 45 months ago and you have paid $5,000 in premiums. No Poicy Loans or partia withdrawas have been taken and you have made no Poicy changes. Your death benefit guarantee monthy premium is $100. Assuming the prepaid interest rate is zero, the cumuative death benefit guarantee premium requirement as of the 45th Monthy Deduction Day is $4,500 ($100 x 45 months). 24

29 In this exampe, the death benefit guarantee premium requirement is satisfied on this Monthy Deduction Day because the amount of premiums paid ($5,000) is greater than the death benefit guarantee premium requirement ($4,500). However, assuming you had requested a partia withdrawa of $1,000, the death benefit guarantee premium requirement woud no onger be satisfied because the amount of premiums paid ess the partia withdrawa ($4,000) is now ess than the death benefit guarantee premium requirement ($4,500). In order to maintain this rider, you must pay an additiona premium of $500 within 61 days after we mai you notice of the need for additiona premium. The amount of the death benefit guarantee monthy premium is determined when we issue a Poicy, and it depends upon the age and other insurance risk characteristics of the Insured, as we as the amount of coverage and additiona features you seect. The death benefit guarantee monthy premium wi change if you ater either the Poicy s Specified Amount or death benefit option, add or deete a Poicy rider, or change underwriting cass. We wi send you a new Poicy data page refecting any change in the death benefit guarantee premium. Unschedued Premiums. Each unschedued premium payment must be at east $100; however, we may, in our discretion, waive this minimum requirement. We reserve the right to imit the number and amount of unschedued premium payments. An unschedued premium payment may have federa income tax consequences. (See FEDERAL TAX MATTERS. ) Premium Limitations. In no event may the tota of a premiums paid, both panned periodic and unschedued, exceed the appicabe maximum premium imitation imposed by federa tax aws. Because the maximum premium imitation is in part dependent upon the Specified Amount for each Poicy, changes in the Specified Amount may affect this imitation. If at any time you pay a premium that woud resut in tota premiums exceeding the appicabe maximum premium imitation, we wi accept ony that portion of the premium which wi make tota premiums equa the maximum. We wi return any part of the premium in excess of that amount and we wi not accept further premiums unti aowed by the appicabe maximum premium imitation. Payment of Premiums. We wi treat any payments you make first as payment of any outstanding Poicy Debt uness you indicate that the payment shoud be treated otherwise. Where you make no indication, we wi treat any portion of a payment that exceeds the amount of any outstanding Poicy Debt as a premium payment. Net Premiums. The Net Premium is the amount avaiabe for investment. The Net Premium equas the premium paid ess the premium expense charge. (See CHARGES AND DEDUCTIONS Premium Expense Charge. ) Aocating Net Premiums. In your appication for a Poicy, you can aocate Net Premiums or portions thereof to the Subaccounts, to the Decared Interest Option, or both. We wi aocate Net Premiums to the Decared Interest Option if we receive them either: (1) before the date we obtain, at our Home Office, a signed notice from you that you have received the Poicy, or (2) before the end of 25 days after the Deivery Date. Upon the earier of (1) or (2) above, we wi automaticay aocate the Accumuated Vaue in the Decared Interest Option, without charge, among the Subaccounts and Decared Interest Option in accordance with your aocation instructions. We aocate Net Premiums received on or after (1) or (2) above in accordance with your instructions, to the Variabe Account, the Decared Interest Option, or both. You do not waive your canceation priviege by sending us the signed notice of receipt of the Poicy (see THE POLICY Examination of Poicy (Canceation Priviege) ). 25

30 The foowing additiona rues appy to Net Premium aocations: You must aocate at east 1% of each premium to any Subaccount of the Variabe Account or to the Decared Interest Option (we reserve the right to raise the minimum aocation requirement, up to 10%, at our soe discretion). Your aocation percentages must be in whoe numbers (we do not permit fractiona percentages). Each premium payment you submit may be directed to a maximum of 12 Investment Options avaiabe under the Poicy, incuding the Decared Interest Option. You may change the aocation percentages for future Net Premiums without charge, at any time whie the Poicy is in force, by providing us with a Written Notice signed by you on a form we accept. The change wi take effect on the date we receive the Written Notice at the Home Office and wi have no effect on prior Accumuated Vaues. Examination of Poicy (Canceation Priviege) You may cance the Poicy by deivering or maiing Written Notice or sending a facsimie to us at the Home Office, and returning the Poicy to us at the Home Office before midnight of the 30th day you receive the Poicy. Notice given by mai and return of the Poicy by mai are effective on being postmarked, propery addressed and postage prepaid. We wi refund, within seven days after receipt of satisfactory notice of canceation and the returned Poicy at our Home Office, an amount equa to the greater of premiums paid, or the sum of: the Accumuated Vaue on the Business Day we receive the Poicy at the Home Office, pus any premium expense charges we deducted, pus monthy deductions made on the Poicy Date and any Monthy Deduction Day, pus amounts approximating the daiy charges against the Variabe Account. Poicy Lapse and Reinstatement Your Poicy may apse (terminate without vaue) during the first three Poicy Years if the Net Accumuated Vaue (Net Surrender Vaue if you ve taken a oan on your Poicy), or after three Poicy Years if Net Surrender Vaue, is insufficient on a Monthy Deduction Day to cover the monthy deduction (see CHARGES AND DEDUCTIONS Monthy Deduction ) AND a Grace Period expires without a sufficient payment. However, your Poicy wi not enter the Grace Period if you seected the optiona Death Benefit Guarantee Rider and you have paid sufficient premiums to meet the cumuative death benefit guarantee premium test on each Monthy Deduction Day. (See THE POLICY Premiums Death Benefit Guarantee Premiums. ) Under current Company practice, your Poicy wi not enter the Grace Period during the fourth Poicy Year, regardess of the Net Surrender Vaue, if you have paid the cumuative Threshod Premium. See Footnote One on page 6 and the Gossary for a description of the Threshod Premium. This is a current Company practice, which is not guaranteed and can be changed at any time. Insurance coverage wi continue during the Grace Period, but we wi deem the Poicy to have no Accumuated Vaue for purposes of Poicy Loans, partia withdrawas and surrenders during such Grace Period. The death proceeds payabe during the Grace Period wi equa the amount of the 26

31 death proceeds payabe immediatey prior to the commencement of the Grace Period, reduced by any due and unpaid monthy deductions. A Grace Period of 61 days wi commence on the date we send you a notice of any insufficiency, at which time the Accumuated Vaue in each Subaccount wi be automaticay transferred without charge to the Decared Interest Option. To avoid apse and termination of the Poicy without vaue, we must receive from you during the Grace Period a premium payment that, when reduced by the premium expense charge (see CHARGES AND DEDUCTIONS Premium Expense Charge ), wi be at east equa to three times the monthy deduction due on the Monthy Deduction Day immediatey preceding the Grace Period (see CHARGES AND DEDUCTIONS Monthy Deduction ). If your Poicy enters a Grace Period, the amount transferred to the Decared Interest Option wi remain there uness and unti you provide us with aocation instructions. Reinstatement. Prior to the Maturity Date, you may appy to reinstate a apsed Poicy at any time within five years of the Monthy Deduction Day immediatey preceding the Grace Period which expired without payment of the required premium. You must submit the foowing items to us at our Home Office: A written appication for reinstatement signed by the Poicyowner and the Insured; Evidence of insurabiity we deem satisfactory; A premium that, after the deduction of the premium expense charge, is at east sufficient to keep the Poicy in force for three months; and An amount equa to the monthy cost of insurance for the two Poicy Months prior to apse. State aw may imit the premium to be paid on reinstatement to an amount ess than that described. To the extent that we did not deduct the monthy administrative charge for a tota of tweve Poicy Months prior to apse, we wi continue to deduct such charge foowing reinstatement of the Poicy unti we have assessed such charge, both before and after the apse, for a tota of 12 Poicy Months. (See CHARGES AND DEDUCTIONS Monthy Deduction. ) We wi not reinstate a Poicy surrendered for its Net Surrender Vaue. The apse of a Poicy with oans outstanding may have adverse tax consequences (see FEDERAL TAX MATTERS ). The effective date of the reinstated Poicy wi be the Monthy Deduction Day coinciding with or next foowing the date we approve the appication for reinstatement. Upon reinstatement of your Poicy, the amount transferred to the Decared Interest Option during the Grace Period wi remain there uness and unti you provide us with aocation instructions. POLICY BENEFITS Whie a Poicy is in force, it provides for certain benefits prior to the Maturity Date. Subject to certain imitations, you may at any time obtain a or a portion of the Net Accumuated Vaue by surrendering or taking a partia withdrawa from the Poicy. (See POLICY BENEFITS Accumuated Vaue Benefits Surrender and Withdrawa Privieges. ) In addition, you have certain poicy oan privieges under the Poicies. (See POLICY BENEFITS Loan Benefits Poicy Loans. ) The Poicy aso provides for the payment of death proceeds upon the death of the Insured under one of two death benefit options seected by you (see POLICY BENEFITS Death Proceeds Death Benefit Options ), and benefits upon the maturity of a Poicy (see POLICY BENEFITS Benefits at Maturity ). You may aso eect to participate in the asset aocation program and aocate a of your premiums to one of the four avaiabe asset aocation mode portfoios (see POLICY BENEFITS Asset Aocation Program ). 27

32 Accumuated Vaue Benefits Surrender and Withdrawa Privieges. At any time prior to the Maturity Date whie the Poicy is in force, you may surrender the Poicy or make a partia withdrawa by sending Written Notice to the Company at our Home Office. If we receive your Written Notice to surrender or make a partia withdrawa from your Poicy in good order prior to 3:00 p.m. centra time on a Business Day, we wi process your request at the Unit Vaues cacuated as of 3:00 p.m. centra time that Business Day. If we receive your Written Notice to surrender or make a partia withdrawa from your Poicy in good order at or after 3:00 p.m. centra time on a Business Day, we wi process your request at the Unit Vaues cacuated as of 3:00 p.m. centra time on the foowing Business Day. A Surrender Charge wi appy to any surrender during the first six Poicy Years, as we as during the first six Poicy Years foowing an increase in Specified Amount. A Partia Withdrawa Fee equa to the esser of $25 or 2% of the Accumuated Vaue withdrawn wi be payabe upon each partia withdrawa. (See CHARGES AND DEDUCTIONS Surrender Charge, and Partia Withdrawa Fee ). We ordinariy mai surrender and withdrawa proceeds to the Poicyowner within seven days after we receive a signed request at our Home Office, athough we may postpone payments under certain circumstances. (See ADDITIONAL INFORMATION Postponement of Payments. ) You may request a partia withdrawa from or surrender of your Poicy via facsimie. Facsimie requests must be directed to at our Home Office. We are not iabe for the timey processing of any misrouted facsimie request. A request must identify your name and Poicy number. We may require your address or socia security number be provided for verification purposes. We wi compare your signature to your origina Poicy appication. If there is any question as to the vaidity of the signature, we may require a signature guarantee or notarization be provided. You shoud be abe to obtain a signature guarantee from a bank, broker, credit union (if authorized under state aw) or a savings association. A notary pubic cannot provide a signature guarantee. Upon satisfactory receipt of transaction instructions, your partia withdrawa or surrender wi be effective as of the end of the Vauation Period during which we receive the request at our Home Office in good order. We treat facsimie requests as having been received based upon the time noted at the end of the transmission. A separate confirmation etter wi be sent to you upon competion of the transaction. If your request is accompanied by a change of address or is received within 30 days of a prior address change, we wi send a confirmation etter to both the od and new addresses. We wi empoy reasonabe procedures to confirm that facsimie requests are genuine. We are not iabe for any oss, damage or expense from compying with facsimie requests we reasonaby beieve to be authentic. CAUTION: Facsimie privieges may not aways be avaiabe. Teephone systems can experience outages or sowdowns for a variety of reasons. These outages or sowdowns may prevent or deay our receipt of your request. If you are experiencing probems, you shoud submit a written request to our Home Office. We are not iabe for any processing deays reated to a faiure of the teephone system. We reserve the right to deny any transaction request made by facsimie. We may terminate this priviege at any time. Surrenders. The amount payabe upon surrender of the Poicy is the Net Surrender Vaue at the end of the Vauation Period when we receive the request at the Home Office. We may pay the Net 28

33 Surrender Vaue in a ump sum or under one of the payment options specified in the Poicy, as requested by the Poicyowner. (See ADDITIONAL POLICY PROVISIONS Payment Options in the Statement of Additiona Information.) If you surrender the entire Poicy, a insurance in force wi terminate and you cannot reinstate the Poicy. See FEDERAL TAX MATTERS for a discussion of the tax consequences associated with compete surrenders. The Surrender Charge wi be deducted from the amount surrendered. Partia Withdrawas. You may obtain a portion of the Poicy s Net Surrender Vaue as a partia withdrawa from the Poicy. A partia withdrawa must be at east $500. A partia withdrawa cannot exceed the esser of (1) the Net Surrender Vaue ess $500 or (2) 90% of the Net Surrender Vaue. We deduct the Partia Withdrawa Fee from the remaining Accumuated Vaue. You may request that we pay the proceeds of a partia surrender in a ump sum or under one of the payment options specified in the Poicy. (See ADDITIONAL POLICY PROVISIONS Payment Options in the Statement of Additiona Information.) We wi aocate a partia withdrawa (together with the Partia Withdrawa Fee) among the Subaccounts and the Decared Interest Option in accordance with your written instructions. If we do not receive any such instructions with the request for partia withdrawa, we wi aocate the partia withdrawa among the Subaccounts and the Decared Interest Option in the same proportion that the Accumuated Vaue in each of the Subaccounts and the Accumuated Vaue in the Decared Interest Option, reduced by any outstanding Poicy Debt, bears to the tota Accumuated Vaue, reduced by any outstanding Poicy Debt, on the date we receive the request at the Home Office. Partia withdrawas wi affect both the Poicy s Accumuated Vaue and the death proceeds payabe under the Poicy. (See POLICY BENEFITS Death Proceeds. ) The Poicy s Accumuated Vaue wi be reduced by the amount of the partia withdrawa. If the death benefit payabe under either death benefit option both before and after the partia withdrawa is equa to the Accumuated Vaue mutipied by the specified amount factor set forth in the Poicy, a partia withdrawa wi resut in a reduction in death proceeds equa to the amount of the partia withdrawa, mutipied by the specified amount factor then in effect. If the death benefit is not so affected by the specified amount factor, the reduction in death proceeds wi be equa to the partia withdrawa. If the Increasing Death Benefit Option is in effect at the time of the withdrawa, there wi be no effect on Specified Amount. If the Leve Death Benefit Option is in effect at the time of withdrawa, the Poicy s Specified Amount wi be reduced by the amount of Accumuated Vaue withdrawn. (See POLICY BENEFITS Death Proceeds Death Benefit Options. ) The Specified Amount remaining in force after a partia withdrawa may not be ess than the minimum Specified Amount for the Poicy in effect on the date of the partia withdrawa, as pubished by the Company. As a resut, we wi not process any partia withdrawa that woud reduce the Specified Amount beow this minimum. If increases in the Specified Amount previousy have occurred, a partia withdrawa wi first reduce the Specified Amount of the most recent increase, then the next most recent increases successivey, then the coverage under the origina appication. Thus, a partia withdrawa may either increase or decrease the amount of the cost of insurance charge, depending upon the particuar circumstances. (See CHARGES AND DEDUCTIONS Monthy Deduction Cost of Insurance. ) 29

34 For a discussion of the tax consequences associated with partia withdrawas, see FEDERAL TAX MATTERS. Net Accumuated Vaue. Net Accumuated Vaue equas the Poicy s Accumuated Vaue reduced by any outstanding Poicy Debt and increased by any unearned oan interest. On the Business Day coinciding with or immediatey foowing the earier of the date we receive notice at our Home Office that you have received the Poicy, or 25 days after the Deivery Date, we wi automaticay transfer the Accumuated Vaue (a of which is in the Decared Interest Option) among the Subaccounts and the Decared Interest Option in accordance with your percentage aocation instructions. At the end of each Vauation Period thereafter, the Accumuated Vaue in a Subaccount wi equa: The tota Subaccount units represented by the Accumuated Vaue at the end of the preceding Vauation Period, mutipied by the Subaccount s unit vaue for the current Vauation Period; PLUS Any Net Premiums received during the current Vauation Period which are aocated to the Subaccount; PLUS A Accumuated Vaues transferred to the Subaccount from the Decared Interest Option or from another Subaccount during the current Vauation Period; MINUS A Accumuated Vaues transferred from the Subaccount to another Subaccount or to the Decared Interest Option during the current Vauation Period, incuding amounts transferred to the Decared Interest Option to secure Poicy Debt; MINUS A partia withdrawas (and any portion of the Surrender Charge) from the Subaccount during the current Vauation Period; MINUS The portion of any monthy deduction charged to the Subaccount during the current Vauation Period to cover the Poicy Month foowing the Monthy Deduction Day. The Poicy s tota Accumuated Vaue in the Variabe Account equas the sum of the Poicy s Accumuated Vaue in each Subaccount. Unit Vaue. Each Subaccount has a Unit Vaue. When you aocate Net Premiums or transfer other amounts into a Subaccount, we purchase a number of units based on the Unit Vaue of the Subaccount as of the end of the Vauation Period during which the aocation or transfer is made. Likewise, when amounts are transferred out of a Subaccount, units are redeemed on the same basis. On any day, a Poicy s Accumuated Vaue in a Subaccount is equa to the number of units hed in such Subaccount, mutipied by the Unit Vaue of such Subaccount on that date. Transfers The foowing features appy to transfers under the Poicy: Subject to certain imitations, you may transfer amounts among the Subaccounts an unimited number of times in a Poicy Year; however, you may ony make one transfer per Poicy Year between the Decared Interest Option and the Variabe Account. You may make transfers by written request to our Home Office or, if you eected the Teephone Transfer Authorization on the suppementa appication, by caing the Home Office to-free at the phone number shown on the cover of the Prospectus. We reserve the right to suspend teephone transfer privieges at any time. We wi use reasonabe procedures to confirm that teephone instructions are genuine. We are not iabe for any oss, damage or expense from compying with teephone instructions we reasonaby beieve to be authentic. CAUTION: Teephone transfer privieges may not aways be avaiabe. Teephone systems, whether yours, your service provider s or your registered representative s, can experience 30

35 outages or sowdowns for a variety of reasons. These outages or sowdowns may prevent or deay our receipt of your request. If you are experiencing probems, you shoud make a written request to our Home Office. The amount of the transfer must be at east $100; or if ess than $100, the tota Accumuated Vaue in the Subaccount or in the Decared Interest Option (reduced, in the case of the Decared Interest Option, by any outstanding Poicy Debt). The Company may, at its discretion, waive the $100 minimum requirement. We process transfers at the Unit Vaues next determined after we receive your request in good order at our Home Office. This means that if we receive your written or teephone request for transfer in good order prior to 3:00 p.m. centra time on a Business Day, we wi process the transfer at the Unit Vaues cacuated as of 3:00 p.m. centra time that Business Day. If we receive your written or teephone request for transfer in good order at or after 3:00 p.m. centra time on a Business Day, we wi process the transfer at the Unit Vaues cacuated as of 3:00 p.m. centra time on the foowing Business Day. We treat teephone requests as having been received based upon the time noted at the end of the transmission. The Company waives the transfer fee for the first tweve transfers during a Poicy Year. We may assess a transfer charge of $10 for the 13th and each subsequent transfer during a Poicy Year. We wi deduct the transfer charge on a pro-rata basis from the Investment Options to which the transfer is made. (See CHARGES AND DEDUCTIONS Transfer Charge. ) The Company reserves the right to increase the transfer charge. For purposes of these imitations and charges, we consider a transfers effected on the same day as a singe transfer. Doar Cost Averaging. You may eect to participate in a doar cost averaging program. Doar Cost Averaging is an investment strategy designed to reduce the investment risks associated with market fuctuations. The strategy spreads the aocation of your Net Premium into the Subaccounts or Decared Interest Option over a period of time. This aows you to potentiay reduce the risk of investing most of your Net Premium into the Subaccounts at a time when prices are high. We do not assure the success of this strategy. Impementation of the doar cost averaging program does not guarantee profits, nor protect you against osses. You shoud carefuy consider your financia abiity to continue the program over a ong enough period of time to purchase units when their vaue is ow as we as when it is high. In order to estabish this program, you must eect this option on your initia appication or compete and submit the appicabe request form at a ater date, and have money avaiabe in a singe source account. Provided there is no outstanding Poicy Debt, we wi automaticay transfer equa amounts from the source account to your designated target accounts each month. The minimum amount of each transfer is $100. Under the doar cost averaging program, the maximum number of Investment Options which you may seect at any one time is ten, incuding the Decared Interest Option. You seect the date to impement this program which wi occur on the same date each month, or on the next Business Day. We wi terminate this option when monies in the source account are inadequate, or upon receipt of a written request at our Home Office. Each doar cost averaging transfer counts against the tweve free transfer imit in a Poicy Year. A transfers made on the same date count as one transfer. The one transfer imit between the Decared Interest Option and the Variabe Account is waived under this program. 31

36 There is no charge to participate in this program. We reserve the right to discontinue this program at any time. This feature cannot be eected with the asset aocation program. Additiona Limitations on Transfers. When you make a request to transfer Accumuated Vaue from one Subaccount to another, your request triggers the purchase and redemption of shares of the affected Investment Options. Therefore, a Poicyowner who makes frequent transfers among the Subaccounts avaiabe under this Poicy causes frequent purchases and redemptions of shares of the Investment Options. Frequent purchases and redemptions of shares of the Investment Options may diute the vaue of the shares if the frequent trading invoves an effort to take advantage of the possibiity of a ag between a change in the vaue of an Investment Option s portfoio securities and the refection of that change in the Investment Option s share price. This strategy, sometimes referred to as market timing, invoves an attempt to buy shares of an Investment Option at a price that does not refect the current market vaue of the portfoio securities of the Investment Option, and then to reaize a profit when the shares are sod the next Business Day or thereafter. In addition, frequent purchases and redemptions of shares of the Investment Options may increase brokerage and administrative costs of the Investment Options, and may disrupt an Investment Option s portfoio management strategy, requiring it to maintain a high cash position and possiby resuting in ost opportunity costs and forced iquidations. For the reasons discussed, frequent transfers by a Poicyowner between the Subaccounts may adversey affect the ong-term performance of the Investment Options, which may, in turn, adversey affect other Poicyowners and other persons who may have materia rights under the Poicy (e.g., Beneficiaries). We endeavor to protect ong-term Poicyowners by maintaining poicies and procedures to discourage frequent transfers among Subaccounts under the Poicies, and have no arrangements in pace to permit any Poicyowner to engage in frequent transfer activity. If you wish to engage in such strategies, do not purchase this Poicy. If we determine that you are engaging in frequent transfer activity among Subaccounts, we may, without prior notice, imit your right to make transfers. We monitor for frequent transfer activity among the Subaccounts based upon estabished parameters that are appied consistenty to a Poicyowners. Such parameters may incude, without imitation, the ength of the hoding period between transfers into a Subaccount and transfers out of the Subaccount, the number of transfers in a specified period, the doar amount of transfers, and/or any combination of the foregoing. For purposes of appying the parameters used to detect frequent transfers, we may aggregate transfers made in two or more Poicies that we beieve are reated (e.g., two Poicies with the same owner or owned by spouses or by different partnerships or corporations that are under common contro). We do not appy our poicies and procedures to discourage frequent transfers to the doar cost averaging or asset aocation programs. If transfer activity vioates our estabished parameters, we wi appy restrictions that we reasonaby beieve wi prevent any disadvantage to other Poicyowners and persons with materia rights under a Poicy. We wi not grant waivers or make exceptions to, or enter into specia arrangements with, any Poicyowners who vioate these parameters. If we impose any restrictions on your transfer activity, we wi notify you in writing. The restrictions that we woud impose woud be to discontinue your teephone transfer privieges and to require you to make a transfer requests in writing through the U.S. Posta Service. Notwithstanding this, because our poicies and procedures are discretionary and may differ among variabe annuity contracts and variabe insurance poicies ( variabe contracts ) and separate accounts it is possibe that some Poicyowners may engage in frequent transfer activity whie others may bear the harm associated with such activity. Pease note that the imits and restrictions described here are subject to the Company s abiity to monitor transfer activity. Our abiity to detect harmfu transfer activity may be imited by 32

37 operationa and technoogica systems, as we as by our abiity to predict strategies empoyed by Poicyowners (or those acting on their behaf) to avoid detection. As a resut, despite our efforts to prevent frequent transfers among the Subaccounts avaiabe under this Poicy, there is no assurance that we wi be abe to detect and/or to deter the frequent transfers of such Poicyowners or intermediaries acting on behaf of Poicyowners. Moreover, our abiity to discourage and restrict frequent transfer activity may be imited by provisions of the Poicy. We may revise our poicies and procedures in our soe discretion, at any time and without prior notice, as we deem necessary or appropriate to better detect and deter harmfu trading activity that may adversey affect other Poicyowners, other persons with materia rights under the Poicies, or Investment Option sharehoders generay, to compy with state or federa reguatory requirements, or to impose additiona or aternative restrictions on Poicyowners engaging in frequent transfer activity among the Subaccounts under the Poicy. In addition, we may not honor transfer requests if any Subaccount that woud be affected by the transfer is unabe to purchase or redeem shares of its corresponding Investment Option. If an Investment Option s poicies and procedures require it to restrict or refuse transactions by the Variabe Account as a resut of activity initiated by you, we wi inform you (and any third party acting on your behaf) of actions taken to affect your transfer activity. The Investment Options may have adopted their own poicies and procedures with respect to frequent purchases and redemptions of their respective shares. The prospectuses for the Investment Options describe any such poicies and procedures. Such poicies and procedures may provide for the imposition of a redemption fee and upon request from the Fund require us to provide transaction information to the Fund and to restrict or prohibit transfers and other transactions that invove the purchase of shares of an Investment Option(s). The frequent trading poicies and procedures of an Investment Option may be different, and more or ess restrictive, than the frequent trading poicies and procedures of other Investment Options and the poicies and procedures we have adopted to discourage frequent transfers among the Subaccounts. Poicyowners shoud be aware that we may not have the contractua obigation or the operationa capacity to monitor Poicyowners transfer requests and appy the frequent trading poicies and procedures of the respective Investment Options that woud be affected by the transfers. Accordingy, Poicyowners and other persons who have materia rights under the Poicies shoud assume that the soe protection they may have against potentia harm from frequent transfers is the protection, if any, provided by the poicies and procedures we have adopted to discourage frequent transfers among the Subaccounts. Poicyowners and other persons with materia rights under the Poicies aso shoud be aware that the purchase and redemption orders received by the Investment Options generay are omnibus orders from intermediaries such as retirement pans or insurance company separate accounts funding variabe contracts. The omnibus orders refect the aggregation and netting of mutipe orders from individua retirement pan participants and/or individua owners of variabe contracts. The omnibus nature of these orders may imit the Investment Options abiity to appy their respective frequent trading poicies and procedures. We cannot guarantee that the Investment Options wi not be harmed by transfer activity reating to the retirement pans and/or insurance companies that may invest in the Investment Options. These other insurance companies are responsibe for estabishing their own poicies and procedures to monitor for frequent transfer activity. If any of these companies poicies and procedures fai to successfuy discourage frequent transfer activity, it wi affect other insurance companies which own the Investment Option shares, as we as the contract owners of a of the insurance companies, incuding the Company, whose Subaccounts correspond to the affected Investment Options. In addition, if an Investment Option beieves that an omnibus order we submit may refect one or more transfer requests from Poicyowners engaged in frequent transfer activity, the Investment Option may reject the entire omnibus order and thereby interfere with the Company s abiity to satisfy its contractua obigations to Poicyowners. 33

38 We may appy the restrictions in any manner reasonaby designed to prevent transfers that we consider disadvantageous to other Poicyowners. In our soe discretion, we may revise our Market Timing Procedures at any time without prior notice. We aso reserve the right to impement and administer redemption fees imposed by one or more of the Funds in the future. Asset Aocation Program The foowing is a summary of the asset aocation program avaiabe under the Poicy. A more detaied description of the asset aocation modes avaiabe within the program may be obtained from our Home Office by caing Overview. The asset aocation program is a service made avaiabe to assist you in seecting Investment Options under your Poicy. You may eect to aocate a of your Net Premiums to one of the mode portfoios of the asset aocation program. We wi aocate your initia Premium(s) to the Decared Interest Option for the time period specified in THE POLICY: Premiums Aocating Net Premiums section of this Prospectus. After the expiration of that time period, we wi aocate your Accumuated Vaue in the Decared Interest Option in accordance with the asset aocation mode portfoio you seected that is in effect at that time. If you eect to participate in the asset aocation program at any time after the Poicy Date, we wi reaocate your Accumuated Vaue on the Business Day we receive the information necessary to process the request in accordance with the asset aocation mode portfoio you seected that is in effect at that time. This means that if we receive the information necessary to process the request in good order prior to 3:00 p.m. centra time on a Business Day, we wi process the request at the Unit Vaues cacuated as of 3:00 p.m. that Business Day. If we receive your request in good order at or after 3:00 p.m. centra time, we wi process the request at the Unit Vaues cacuated as of 3:00 p.m. on the foowing Business Day. If you eect to participate in the asset aocation program, you must incude a your Accumuated Vaue in the Program. Our affiiate, FBL Investment Management Services, Inc. ( FIMS ) wi serve as the investment adviser and wi have an advisory reationship with each Poicyowner, but soey for the purpose of deveoping and updating asset aocation modes. There is no separate charge for participating in the asset aocation program. We do not provide investment advice in making the asset aocation program or any other service or feature avaiabe under the Poicy. Asset aocation is essentiay an investment strategy designed to optimize the seection of investment options for a given eve of risk toerance. Asset aocation strategies refect the theory that diversification among asset casses can hep reduce the effects of market voatiity and potentiay enhance returns over the ong term. An asset cass refers to a category of investments with simiar characteristics for exampe, (1) stocks and other equities, (2) bonds and other fixed income investments, and (3) cash equivaents. There are further divisions within asset casses for exampe, divisions according to the size of the issuer (i.e., arge cap, mid cap, sma cap), the type of issuer (government, municipa, corporate, etc.) or the ocation of the issuer (domestic, foreign, etc.). Athough the asset aocation mode portfoios are designed to maximize investment returns and reduce voatiity for a given eve of risk, there is no guarantee that an asset aocation mode portfoio wi not ose money or experience voatiity. A mode portfoio may fai to perform as intended, or may perform worse than any singe Investment Option, asset cass, or different combination of Investment Options. In addition, each mode portfoio is subject to a of the risks associated with its underying Investment Options. Moreover, if FIMS changes the mode portfoios, the fow of money into and out of Investment Options may generate higher brokerage and administrative costs for those Investment Options, and/or such changes may disrupt the management strategy of the portfoio manager for an Investment Option. Seecting Asset Aocation Mode Portfoios. It is your responsibiity to seect or change your asset aocation mode portfoio and your Investment Options. Your registered representative can 34

39 provide you with information that may assist you in seecting a mode portfoio and Investment Options. If you eect the asset aocation program, you may compete a standardized questionnaire that, among other things, soicits information about your investment time horizon and risk toerance and your financia goas. Based on your responses to that questionnaire, a particuar asset aocation mode portfoio may be recommended for your use. Each mode portfoio is intended for a specific type of investor, from conservative to aggressive. Each mode portfoio identifies specific Investment Options and the percentage of Premium and Accumuated Vaue aocated to each Investment Option. There currenty are four (4) asset aocation mode portfoios to choose from: Moderate Conservative Mode Portfoio Moderate Mode Portfoio Moderate Aggressive Mode Portfoio Aggressive Mode Portfoio You may seect from among the avaiabe asset aocation mode portfoios. You are not required to seect the mode portfoio indicated by the questionnaire. Once you seect a mode portfoio, your seection wi remain unchanged unti you seect a new mode portfoio or end your participation in the asset aocation program. Athough you may use ony one mode portfoio at a time, you may eect to change to a different mode portfoio as your toerance for risk and/or your financia needs and investment objectives change. Based on the resuts of the questionnaire, you may determine that a different mode portfoio better meets your risk toerance and investment horizons. You may contact your registered representative or our Home Office for copy of the questionnaire. There is no charge to change to a different mode portfoio. Annua Rebaancing. On the fifth Business Day of May each year, we automaticay rebaance your Accumuated Vaue to maintain the Subaccounts and percentages for your seected asset aocation mode portfoio. This annua rebaancing takes account of: Increases and decreases in Accumuated Vaue in each Subaccount due to Subaccount performance, Increases and decreases in Accumuated Vaue in each Subaccount due to partia withdrawas and payment of Premiums, and Any adjustments FIMS has made to the seected asset aocation mode portfoio. The first annua rebaancing wi on the fifth Business Day of May, each caendar year foowing the ater of the eection date or the end of the period during which your Premium is required to be initiay aocated to the Decared Interest Option, if appicabe. Aocation of Future Premiums. The asset aocation mode portfoio that you seect wi override any prior percentage aocations that you may have chosen and a future Premiums wi be aocated accordingy. Changes to Asset Aocation Mode Portfoios. FIMS periodicay reviews the mode portfoios and may find that asset aocations within a particuar mode portfoio may need to be changed. ETIMS may determine that the principa investments, investment stye, or investment manager of a particuar Investment Option have changed so that the Investment Option is no onger appropriate for a mode portfoio, or that a different investment portfoio of a Fund has become appropriate for a mode portfoio. In addition, from time to time, the Company may change the Investment Options avaiabe under the Poicy. If changes wi be made to a particuar mode portfoio as a resut of FIMS review, then FIMS wi notify a Poicyowners in the asset aocation program at east 30 days in advance of the date of such changes. You shoud carefuy review these notices. Poicyowners who wish to revise their 35

40 respective investment aocations based on the changes to the mode portfoios do not need to take any action. Poicyowners who do not wish to revise their respective investment aocations based on the changes to the mode portfoios must contact our Home Office prior to the deadine set forth in the notice and affirmativey opt out of the revised asset aocation mode portfoio. Uness you eect a different mode portfoio under the asset aocation program, opting out of the revised asset aocation mode portfoio wi aso cause your participation in the asset aocation program to terminate. When your participation in the asset aocation program terminates, your Accumuated Vaue wi remain in the same Subaccounts it was in immediatey prior to your opting out of the program unti such time as you may request to transfer your Accumuated Vaue. Note: Transfers among Investment Options resuting from a change in the asset aocation mode portfoios are not taken into account in determining any transfer processing fee. If you make a sef-directed change outside the asset aocation mode portfoio you seected, we consider your participation in the asset aocation program to have terminated. However, you can eect at any time to again participate in the asset aocation program. Pease contact our Home Office to reenter the asset aocation program. Pease note: You must submit a request form, and may be required to submit an updated standardized questionnaire, before reentering the asset aocation program. Other Information. We and our affiiates, incuding FIMS, receive greater compensation and/or profits from certain Investment Options than we receive from other Investment Options. Aso, FIMS, in its capacity as investment adviser to certain of the Investment Options, may beieve that certain portfoios it manages may benefit from additiona assets or coud be harmed by redemptions. As a fiduciary, however, FIMS is egay obigated to disregard these incentives. FIMS receives no compensation for services it performs in deveoping and updating asset aocation mode portfoios. For more information about FIMS, and its roe as investment adviser for the asset aocation program, pease see the FIMS discosure document, which is avaiabe to you at no charge. You can request a copy by writing to FBL Investment Management Services, Inc., 5400 University Avenue, West Des Moines, Iowa or by contacting our Home Office at We may perform certain administrative functions on behaf of FIMS; however, we are not registered as an investment adviser and are not providing any investment advice in making the asset aocation program avaiabe under the Poicy. If you eect to participate in the asset aocation program: You may surrender a or part of your Cash Vaue. You may not aso eect to participate in the doar cost averaging program. We may terminate or ater the asset aocation program at any time. Loan Benefits Poicy Loans. So ong as the Poicy remains in force and has a positive Net Surrender Vaue, you may borrow money from the Company at any time using the Poicy as the soe security for the Poicy Loan. A oan taken from, or secured by, a Poicy may have federa income tax consequences. (See FEDERAL TAX MATTERS. ) The maximum amount that you may borrow at any time is 90% of the Net Surrender Vaue as of the end of the Vauation Period during which we receive the request for the Poicy Loan at our Home Office, ess any previousy outstanding Poicy Debt. (Certain states may permit you to borrow up to 100% of the Poicy s Net Surrender Vaue.) The Company s caim for repayment of Poicy Debt has priority over the caims of any assignee or other person. 36

41 During any time that there is outstanding Poicy Debt, we wi treat payments you make first as payment of outstanding Poicy Debt, uness you indicate that we shoud treat the payment otherwise. Where no indication is made, we wi treat as a premium payment any portion of a payment that exceeds the amount of any outstanding Poicy Debt. Aocation of Poicy Loan. When you take a Poicy Loan, we segregate an amount equa to the Poicy Loan (incuding interest) within the Decared Interest Option as security for the Poicy Loan. If, immediatey prior to the Poicy Loan, the Accumuated Vaue in the Decared Interest Option ess Poicy Debt outstanding is ess than the amount of such Poicy Loan, we wi transfer the difference from the Subaccounts of the Variabe Account, which have Accumuated Vaue, in the same proportions that the Poicy s Accumuated Vaue in each Subaccount bears to the Poicy s tota Accumuated Vaue in the Variabe Account. We wi determine Accumuated Vaues as of the end of the Vauation Period during which we receive the request for the Poicy Loan at the Home Office. We normay wi mai oan proceeds to you within seven days after receipt of a written request at the Home Office. Postponement of a Poicy Loan may take pace under certain circumstances. (See ADDITIONAL INFORMATION Postponement of Payments. ) Amounts segregated within the Decared Interest Option as security for Poicy Debt wi bear interest at an effective annua rate set by the Company. This rate may be different than that used for other amounts within the Decared Interest Option. (See POLICY BENEFITS Loan Benefits Effect on Investment Performance. ) Our abiity to credit interest on amounts hed in the Decared Interest Option as security for Poicy Debt is subject to our financia strength and caims paying abiity. Loan Interest Charged. The interest rate charged on Poicy Loans is not fixed. The maximum annua oan interest rate we charge wi be the higher of the Pubished Monthy Average of the Composite Yied on Seasoned Corporate Bonds as pubished by Moody s Investors Service, Inc. (or any successor thereto) for the caendar month ending two months before the date on which the rate is determined; or 5.5%. We may eect to change the interest rate at any time, of which you wi be notified. The new rate wi take effect on the Poicy Anniversary coinciding with, or next foowing, the date the rate is changed. Effect on Investment Performance. Amounts transferred from the Variabe Account as security for Poicy Debt wi no onger participate in the investment performance of the Variabe Account. We wi credit a amounts hed in the Decared Interest Option as security for Poicy Debt with interest on each Monthy Deduction Day at a minimum effective annua rate of 4%, as determined and decared by the Company. We wi not credit additiona interest to these amounts. The interest credited wi remain in the Decared Interest Option uness and unti transferred by the Poicyowner to the Variabe Account, but wi not be segregated within the Decared Interest Option as security for Poicy Debt. For Poicies that have been in force ten years, we may aow a oan spread of 0% on a oan in an amount equa to or ess than the gain under the Poicy. Even though you may repay Poicy Debt in whoe or in part at any time prior to the Maturity Date if the Poicy is sti in force, Poicy Loans wi affect the Accumuated Vaue of a Poicy and may affect the death proceeds payabe. The effect coud be favorabe or unfavorabe depending upon whether the investment performance of the Subaccount(s) from which the Accumuated Vaue was transferred is ess than or greater than the interest rates actuay credited to the Accumuated Vaue segregated within the Decared Interest Option as security for Poicy Debt whie Poicy Debt is outstanding. In comparison to a Poicy under which no Poicy Loan was made, Accumuated Vaue wi be ower where such interest rates credited were ess than the investment performance of the Subaccount(s), but wi be higher where such interest rates were greater than the performance of the Subaccount(s). In addition, death proceeds wi refect a reduction of the death benefit by any outstanding Poicy Debt. 37

42 Poicy Debt. Poicy Debt equas the sum of a unpaid Poicy Loans and any due and unpaid poicy oan interest. Poicy Debt is not incuded in Net Accumuated Vaue, which is equa to Accumuated Vaue ess Poicy Debt. If, during the first three Poicy Years, Net Accumuated Vaue or, after three Poicy Years, Net Surrender Vaue, is insufficient on a Monthy Deduction Day to cover the monthy deduction (see CHARGES AND DEDUCTIONS Monthy Deduction ), we wi notify you. To avoid apse and termination of the Poicy without vaue (see THE POLICY Poicy Lapse and Reinstatement Lapse ), you must, during the Grace Period, make a premium payment that, when reduced by the premium expense charge (see CHARGES AND DEDUCTIONS Premium Expense Charge ), wi be at east equa to three times the monthy deduction due on the Monthy Deduction Day immediatey preceding the Grace Period (see CHARGES AND DEDUCTIONS Monthy Deduction ). Therefore, the greater the Poicy Debt under a Poicy, the more ikey it woud be to apse. Repayment of Poicy Debt. You may repay Poicy Debt in whoe or in part any time during the Insured s ife and before the Maturity Date so ong as the Poicy is in force. We subtract any Poicy Debt not repaid from the death benefit payabe at the Insured s death, from Accumuated Vaue upon compete surrender or from the maturity benefit. Any payments made by a Poicyowner wi be treated first as the repayment of any outstanding Poicy Debt, uness the Poicyowner indicates otherwise. Upon partia or fu repayment of Poicy Debt, we wi no onger segregate within the Decared Interest Option the portion of the Accumuated Vaue securing the repaid portion of the Poicy Debt, but that amount wi remain in the Decared Interest Option uness and unti transferred to the Variabe Account by the Poicyowner. We wi notify you when your Poicy Debt is repaid in fu. For a discussion of the tax consequences associated with Poicy Loans and apses, see FEDERAL TAX MATTERS. Death Proceeds So ong as the Poicy remains in force, the Poicy provides for the payment of death proceeds upon the death of the Insured. You may name one or more primary Beneficiaries or contingent Beneficiaries and we wi pay proceeds to the primary Beneficiary or a contingent Beneficiary as described in the Poicy. If no Beneficiary survives the Insured, we wi pay the death proceeds to the Poicyowner or his estate. We may pay death proceeds in a ump sum or under a payment option. (See ADDITIONAL POLICY PROVISIONS Payment Options in the Statement of Additiona Information.) To determine the death proceeds, we wi reduce the death benefit by any outstanding Poicy Debt and increase it by any unearned oan interest and any premiums paid after the date of death. We wi ordinariy mai proceeds within seven days after receipt by the Company of Due Proof of Death. We may postpone payment, however, under certain circumstances. (See ADDITIONAL INFORMATION Postponement of Payments. ) Death Benefit Guarantee Rider. If you seected the optiona Death Benefit Guarantee Rider (there is no charge for this rider), on each Monthy Deduction Day, we wi check to see if you have met the death benefit guarantee premium test by comparing the tota amount of cumuative actua premiums you have paid with the cumuative death benefit guarantee monthy premiums. If you meet the death benefit guarantee monthy premium requirement, then your Poicy wi not enter a Grace Period even if the Net Surrender Vaue is not enough to cover the monthy deduction due. If you do not meet the death benefit guarantee monthy premium requirement, then we wi notify you of the amount that you must pay within 61 days to prevent your Poicy from apsing. (See THE POLICY Premiums Death Benefit Guarantee Premiums. ) Your Poicy wi meet the 38

43 death benefit guarantee monthy premium requirement on a Monthy Deduction Day when (a) is equa to or greater than (b) where: (a) is the sum of a premiums paid on the Poicy (accumuated from the date of payment at the prepayment interest rate shown on the Poicy data page), ess the sum of a partia withdrawas (accumuated from the date of each withdrawa at the prepayment interest rate), and ess any Poicy oans and unpaid oan interest; and (b) is the sum of the death benefit guarantee monthy premiums since the Poicy Date accumuated at the prepayment interest rate. Death Benefit Options. Poicyowners designate in the initia appication one of two death benefit options offered under the Poicy. The amount of the death benefit payabe under a Poicy wi depend upon the option in effect at the time of the Insured s death. Under the Increasing Death Benefit Option, the death benefit wi be equa to the greater of (1) the sum of the current Specified Amount and the Accumuated Vaue, or (2) the Corridor Death Benefit We wi determine Accumuated Vaue as of the end of the Business Day coinciding with or immediatey foowing the date of death. Under the Increasing Death Benefit Option, the death proceeds wi aways vary as the Accumuated Vaue varies (but wi never be ess than the Specified Amount). If you prefer to have favorabe investment performance and additiona premiums refected in increased death benefits, you generay shoud seect the Increasing Death Benefit Option. Under the Leve Death Benefit Option, the death benefit wi be equa to the greater of: the current Specified Amount, or the Corridor Death Benefit Under the Leve Death Benefit Option, the death benefit wi remain eve at the Specified Amount uness the Accumuated Vaue mutipied by the specified amount factor exceeds the current Specified Amount, in which case the amount of the death benefit wi vary as the Accumuated Vaue varies. If you are satisfied with the amount of your insurance coverage under the Poicy and prefer to have favorabe investment performance and additiona premiums refected in higher Accumuated Vaue rather than increased death benefits, you generay shoud seect the Leve Death Benefit Option. Changing the Death Benefit Option. You may change the death benefit option in effect at any time by sending a written request to us at our Home Office. The effective date of such a change wi be the Monthy Deduction Day coinciding with or immediatey foowing the date we approve the change. A change in death benefit options may have federa income tax consequences. (See FEDERAL TAX MATTERS. ) If you change from the Increasing Death Benefit Option to the Leve Death Benefit Option, the death benefit wi not change and the current Specified Amount wi be increased by the Accumuated Vaue on the effective date of the change. If you change from the Leve Death Benefit Option to the Increasing Death Benefit Option, we wi reduce the current Specified Amount by an amount equa to the Accumuated Vaue on the effective date of the change provided the Insured meets the Company s underwriting requirements. You may not make a change in the death benefit option if it woud resut in a Specified Amount which is ess than the minimum Specified Amount in effect on the effective date of the change, or if after the change the Poicy woud no onger quaify as ife insurance under federa tax aw. 39

44 We impose no charges in connection with a change in death benefit option; however, a change in death benefit option wi affect the cost of insurance charges. (See CHARGES AND DEDUCTIONS Monthy Deduction Cost of Insurance. ) Change in Existing Coverage. After a Poicy has been in force for one Poicy Year, you may adjust the existing insurance coverage by increasing or decreasing the Specified Amount. To make a change, you must send us a written request at our Home Office. Any change in the Specified Amount may affect the cost of insurance rate and the net amount at risk, both of which wi affect your cost of insurance charge. (See CHARGES AND DEDUCTIONS Monthy Deduction Cost of Insurance Rate, and Net Amount at Risk. ) If decreases in the Specified Amount cause the premiums paid to exceed the maximum premium imitations imposed by federa tax aw (see THE POLICY Premiums Premium Limitations ), the decrease wi be imited to the extent necessary to meet these requirements. A change in existing coverage may have federa income tax consequences. (See FEDERAL TAX MATTERS. ) Any decrease in the Specified Amount wi become effective on the Monthy Deduction Day coinciding with or immediatey foowing the date we approve the request. The decrease wi first reduce the Specified Amount provided by the most recent increase, then the next most recent increases successivey, then the Specified Amount under the origina appication. The Specified Amount foowing a decrease can never be ess than the minimum Specified Amount for the Poicy in effect on the date of the decrease. A Specified Amount decrease wi not reduce the Surrender Charge. To appy for an increase, you must provide us with evidence of insurabiity we deem satisfactory. Any approved increase wi become effective on the Monthy Deduction Day coinciding with or immediatey foowing the date we approve the request. An increase wi not become effective, however, if the Poicy s Accumuated Vaue on the effective date woud not be sufficient to cover the deduction for the increased cost of the insurance for the next Poicy Month. A Specified Amount increase is subject to its own Surrender Charge. Acceerated Payments of Death Proceeds In the event that the Insured becomes terminay i (as defined beow), you may (if residing in a state that has approved such rider), by written request and subject to the conditions stated beow, have the Company pay a or a portion of the acceerated death benefit immediatey to you. There is no separate charge for this Endorsement. For this purpose, an Insured is terminay i when a physician (as defined by the rider) certifies that he or she has a ife expectancy of 12 months or ess. The acceerated death benefit is equa to the Poicy s death benefit as described on page 3, up to a maximum of $250,000 (the $250,000 maximum appies in aggregate to a poicies issued by the Company on the Insured), ess an amount representing a discount for 12 months at the interest rate charged for oans under the Poicy. The acceerated death benefit does not incude the amount of any death benefit payabe under a rider that covers the ife of someone other than the Insured. Requesting an acceerated death benefit under this rider may have tax consequences (see FEDERAL TAX MATTERS ). Benefits at Maturity The Maturity Date is Attained Age 115 (Attained Age 95 in the state of Utah). If the Insured is aive and the Poicy is in force on the Maturity Date, the Company wi pay to the Poicyowner the Poicy s Accumuated Vaue as of the end of the Business Day coinciding with or immediatey foowing the Maturity Date, reduced by any outstanding Poicy Debt. (See POLICY BENEFITS Loan Benefits Repayment of Poicy Debt. ) We may pay benefits at maturity in a 40

45 ump sum or under a payment option. The tax consequences associated with continuing a Poicy beyond age 100 are uncear. Consut a tax adviser on this issue. Escheatment of Death Benefit Every state has uncaimed property aws which generay decare ife insurance poicies to be abandoned after a period of inactivity of 3 to 5 years from the poicy s Maturity Date or date the death benefit is due and payabe. For exampe, if the payment of a death benefit has been triggered, but, if after a thorough search, we are sti unabe to ocate the Beneficiary of the death benefit, or the Beneficiary does not come forward to caim the death benefit in a timey manner, the death benefit wi be paid to the abandoned property division or uncaimed property office of the state in which the beneficiary or the Poicyowner ast resided, as shown on our books and records, or to our state of domicie. This escheatment is revocabe, however, and the state is obigated to pay the death benefit (without interest) if your Beneficiary steps forward to caim the death benefit with the proper documentation. To prevent such escheatment, it is important that you update your Beneficiary designations, incuding fu names and compete addresses, if and as they change. Such updates shoud be communicated in writing, by teephone, or facsimie to our Home Office. CHARGES AND DEDUCTIONS We deduct certain charges in connection with the Poicy to compensate us for (1) the services and benefits we provide; (2) the costs and expenses we incur; and (3) the risks we assume. The nature and amount of these charges are described more fuy beow. Premium Expense Charge Before aocating Net Premiums among the Subaccounts and the Decared Interest Option, we reduce premiums paid by a premium expense charge. The premium ess the premium expense charge equas the Net Premium. The premium expense charge is 7% of each premium. It is used to compensate us for expenses incurred in distributing the Poicy, incuding agent saes commissions, the cost of printing prospectuses and saes iterature, advertising costs and charges we consider necessary to pay a taxes imposed by states and subdivisions thereof (which currenty range from 1% to 3%). Because we incude any state premium taxes in the premium expense charge, the amount paid by a Poicyowner is generay an average of premium tax amounts charged by the states. As a resut, you may pay more premium tax than is required in your state of residence. Monthy Deduction We deduct certain charges monthy from the Accumuated Vaue of each Poicy ( monthy deduction ) to compensate us for the cost of insurance coverage and any additiona benefits added by rider (see ADDITIONAL INSURANCE BENEFITS ), for underwriting and start-up expenses in connection with issuing a Poicy and for certain administrative costs. We deduct the monthy deduction on the Poicy Date and on each Monthy Deduction Day. We deduct it from the Decared Interest Option and each Subaccount in the same proportion that the Poicy s Net Accumuated Vaue in the Decared Interest Option and the Poicy s Accumuated Vaue in each Subaccount bear to the tota Net Accumuated Vaue of the Poicy. For purposes of making deductions from the Decared Interest Option and the Subaccounts, we determine Accumuated Vaues as of the end of the Business Day coinciding with or immediatey foowing the Monthy Deduction Day. Because 41

46 portions of the monthy deduction, such as the cost of insurance, can vary from month to month, the monthy deduction itsef wi vary in amount from month to month. We make the monthy deduction on the Business Day coinciding with or immediatey foowing each Monthy Deduction Day and it wi equa: the cost of insurance for the Poicy; pus the cost of any optiona insurance benefits added by rider; pus the monthy poicy expense charge. During the first 12 Poicy Months and during the 12 Poicy Months immediatey foowing an increase in Specified Amount, the monthy deduction wi incude a monthy per $1,000 charge. During the first 12 Poicy Months, the monthy deduction wi aso incude a monthy expense charge. Cost of Insurance. This charge is designed to compensate us for the anticipated cost of paying death proceeds to Beneficiaries of those Insureds who die prior to the Maturity Date. We determine the cost of insurance on a monthy basis, and we determine it separatey for the initia Specified Amount and for any subsequent increases in Specified Amount. We wi determine the monthy cost of insurance charge by dividing the appicabe cost of insurance rate, or rates, by 1,000 and mutipying the resut by the net amount at risk for each Poicy Month. We may reaize a profit from this charge and may use such profit for any awfu purpose, incuding paying our distribution expenses. Net Amount at Risk. The net amount at risk may be affected by investment performance, payment of premiums, fees and charges under the Poicy, death benefit option chosen, partia withdrawas and decreases in Specified Amount. Under the Increasing Death Benefit Option, the net amount at risk for a Poicy Month is equa to (a) divided by (b); and under the Leve Death Benefit Option, the net amount at risk for a Poicy Month is equa to (a) divided by (b), minus (c), where: (a) is the Specified Amount; (b) is ; and (c) is the Accumuated Vaue. We determine the Specified Amount and the Accumuated Vaue as of the end of the Business Day coinciding with or immediatey foowing the Monthy Deduction Day. We determine the net amount at risk separatey for the initia Specified Amount and any increases in Specified Amount. In determining the net amount at risk for each Specified Amount, we first consider the Accumuated Vaue a part of the initia Specified Amount. If the Accumuated Vaue exceeds the initia Specified Amount, we wi consider it to be a part of any increase in the Specified Amount in the same order as the increases occurred. Cost of Insurance Rate. We base the cost of insurance rate for the initia Specified Amount on factors incuding, but not imited to, the Insured s sex, underwriting cass and Attained Age. For any increase in Specified Amount, we base the cost of insurance rate on factors incuding, but not imited to, the Insured s sex, underwriting cass and age at ast birthday on the effective date of the increase. Actua cost of insurance rates may change and we wi determine the actua monthy cost of insurance rates by the Company based on its expectations as to future mortaity experience and other factors. However, the actua cost of insurance rates wi never be greater than the guaranteed maximum cost of insurance rates set forth in the Poicy. These guaranteed rates are based on the 1980 Commissioners Standard Ordinary Non-Smoker and Smoker Mortaity Tabe. Current cost of insurance rates are generay ess than the guaranteed maximum rates. Any change in the cost of 1 Dividing by this number reduces the net amount at risk, soey for the purposes of computing the cost of insurance, by taking into account assumed monthy earnings at an annua rate of 4%. 42

47 insurance rates wi appy to a persons of the same age, sex and underwriting cass whose Poicies have been in force the same ength of time. The cost of insurance rates generay increase as the Insured s Attained Age increases. The underwriting cass of an Insured aso wi affect the cost of insurance rate. The Company currenty paces Insureds into a standard underwriting cass or into underwriting casses invoving a higher mortaity risk. In an otherwise identica Poicy, Insureds in the standard underwriting cass wi have a ower cost of insurance rate than those in underwriting cass invoving higher mortaity risk. The standard underwriting cass is aso divided into two categories: tobacco and non-tobacco. Non-tobacco using Insureds wi generay have a ower cost of insurance rate than simiary situated Insureds who use tobacco. The Company may offer preferred and super-preferred casses in addition to the standard tobacco and non-tobacco casses. Insureds who fa under a preferred or super-preferred cass wi generay have a ower cost of insurance rate than Insureds who receive a standard cassification. (An Insured must meet more stringent medica requirements than those estabished for the preferred cass in order to quaify for the Company s super-preferred cass of insurance rates.) We determine the cost of insurance rate separatey for the initia Specified Amount and for the amount of any increase in Specified Amount. In cacuating the cost of insurance charge, we appy the rate for the underwriting cass on the Poicy Date to the net amount at risk for the initia Specified Amount; for each increase in Specified Amount, we use the rate for the underwriting cass appicabe to the increase. However, if we cacuate the death benefit as the Accumuated Vaue times the specified amount factor, we wi use the rate for the underwriting cass for the most recent increase that required evidence of insurabiity for the amount of death benefit in excess of the tota Specified Amount. Additiona Insurance Benefits. The monthy deduction wi incude charges for any additiona benefits provided by rider. (See ADDITIONAL INSURANCE BENEFITS. ) Monthy Poicy Expense Charge. We have primary responsibiity for the administration of the Poicy and the Variabe Account. Administrative expenses incude premium biing and coection, recordkeeping, processing death benefit caims, cash withdrawas, surrenders and Poicy changes, and reporting and overhead costs. As reimbursement for administrative expenses reated to the maintenance of each Poicy and the Variabe Account, we assess a $7 monthy administrative charge against each Poicy. We guarantee this charge wi not exceed $7 per Poicy Month. First-Year Monthy Per $1,000 Charge. We deduct a charge from Accumuated Vaue as part of the monthy deduction during the first 12 Poicy Months and during the 12 Poicy Months immediatey foowing an increase in Specified Amount. The charge wi compensate us for firstyear underwriting, processing and start-up expenses incurred in connection with the Poicy and the Variabe Account. These expenses incude the cost of processing appications, conducting medica examinations, determining insurabiity and the Insured s premium cass, and estabishing poicy records. The monthy per unit charge is $0.07 per $1,000 of Specified Amount or increase in Specified Amount. We guarantee this charge wi not exceed $0.07 per $1,000 of Specified Amount. First-Year Monthy Poicy Expense Charge. We wi deduct an additiona monthy charge from Accumuated Vaue during the first tweve Poicy Months. This monthy charge wi compensate us for costs associated with underwriting and issuing the Poicy. These expenses incude the cost of processing appications, conducting medica examinations and determining insurabiity. The firstyear monthy poicy expense charge is $7 per Poicy Month. We guarantee this charge wi not exceed $7 per Poicy Month. 43

48 Transfer Charge The initia transfer in each Poicy Year wi be competed without charge. We may impose a transfer charge of $10 for any subsequent transfers during that Poicy Year to compensate us for the costs in making the transfer. (The Company has extended this priviege to aow the first tweve transfers in a Poicy Year to be competed without charge. The Company may assess a $10 charge for the thirteenth and each subsequent transfer. This priviege may be terminated at any time.) We wi deduct the transfer charge on a pro-rata basis from the Investment Options to which the transfer is made. Once we issue a Poicy, we wi not increase this charge for the ife of the Poicy. We wi not impose a transfer charge on transfers that occur as a resut of Poicy Loans, the exercise of the specia transfer priviege or the initia aocation of Accumuated Vaue among the Subaccounts and the Decared Interest Option foowing acceptance of the Poicy by the Poicyowner. For information regarding the specia transfer priviege, see GENERAL PROVISIONS: Specia Transfer Priviege. The Company reserves the right to increase the transfer charge to $25. Currenty, there is no charge for changing the Net Premium aocation instructions. Partia Withdrawa Fee Upon partia withdrawa from a Poicy, we assess a charge equa to the esser of $25 or 2% of the Accumuated Vaue withdrawn to compensate us for costs incurred in accompishing the withdrawa. We deduct this fee from Accumuated Vaue. Surrender Charge We appy a Surrender Charge during the first six Poicy Years, as we as during the first six Poicy Years foowing an increase in Specified Amount to the extent of the increase. This charge is an amount per $1,000 of Specified Amount which decines to $0 in the seventh year and varies based on the Insured s Issue Age, sex, underwriting cass and Poicy Year. We have isted beow the maximum Surrender Charge per $1,000 of Specified Amount for seect ages in various underwriting casses in the first Poicy Year. Issue Age Mae, Tobacco Femae, Tobacco Unisex, Tobacco 30 $10.49 $6.84 $ $26.80 $15.49 $ $34.49 $34.49 $34.49 The maximum Surrender Charge for any Poicy is $34.49 per $1,000 of Specified Amount. (See APPENDIX B Maximum Surrender Charges in the Statement of Additiona Information.) The Surrender Charge is eve within each Poicy Year. The Surrender Charge wi be deducted from the amount surrendered. Currenty, we waive the Surrender Charge after the first Poicy Year if the Insured is: terminay i, under 65 years of age and totay disabed, or stays in a quaified nursing care center for 90 consecutive days or more. 44

49 Variabe Account Charges Mortaity and Expense Risk Charge. We deduct a daiy mortaity and expense risk charge from each Subaccount at an effective annua rate of 0.90% of the average daiy net assets of the Subaccounts. We may reaize a profit from this charge and may use such profit for any awfu purpose, incuding payment of our distribution expenses. The mortaity risk we assume is that Insureds may die sooner than anticipated and therefore, we may pay an aggregate amount of ife insurance proceeds greater than anticipated. The expense risk assumed is that expenses incurred in issuing and administering the Poicies wi exceed the amounts reaized from the administrative charges assessed against the Poicies. Federa Taxes. Currenty, no charge is made to the Variabe Account for federa income taxes that may be attributabe to the Variabe Account. We may, however, make such a charge in the future. Charges for other taxes, if any, attributabe to the Account may aso be made. (See FEDERAL TAX MATTERS. ) Investment Option Expenses. The vaue of net assets of the Variabe Account wi refect the investment advisory fee and other expenses incurred by each Investment Option. The investment advisory fee and other expenses appicabe to each Investment Option are isted on page 13 and described in the prospectus for each Investment Option. Iustrative Report Fee. Upon your request, we wi provide you with one set of iustrations of Poicy vaues free of charge. We reserve the right to assess a fee of $25 for each additiona set of iustrations you request in a Poicy Year. However, we currenty do not assess such a fee. Poicy Loan Interest Spread. The Poicy Loan Interest Spread is the difference between the amount of interest we charge you for a oan and the amount of interest we credit to the amounts we hod as security for Poicy Debt. The amount of interest that we charge you for a oan is guaranteed not to exceed the higher of the Pubished Monthy Average of the Composite Yied on Seasoned Corporate Bonds as pubished by Moody s Investors Services, Inc. for the caendar month ending two months before the date on which the oan interest is determined, or 5.5%. The amount of interest that we credit to the amounts we hod as security for Poicy Debt is guaranteed not to go beow 4%. Whie a Poicy is outstanding, oan interest is payabe in advance on each Poicy Anniversary or, if earier, on the date of the oan repayment, Poicy Lapse, surrender, termination or the Insured s death. For Poicies that have been in force ten years, we may aow a oan spread of 0% on a oan in an amount equa to or ess than the gain under the Poicy. Otherwise, the current Poicy Loan Interest Spread is an effective annua interest rate of 2%. Compensation. For information concerning compensation paid for the sae of the Poicies, see DISTRIBUTION OF THE POLICIES. THE DECLARED INTEREST OPTION You may aocate Net Premiums and transfer Accumuated Vaue to the Decared Interest Option, which is part of the Genera Account. We own the assets in the Genera Account, and we use these assets to support our insurance and annuity obigations other than those funded by our separate accounts. These assets are subject to our genera iabiities from business operations. Subject to appicabe aw, we have soe discretion over investment of the Decared Interest Option s assets. We bear the fu investment risk for a amounts aocated or transferred to the Decared Interest Option. We guarantee that the amounts aocated to the Decared Interest Option may be credited interest daiy at a net effective annua interest rate of at east 4%. These amounts, after charges and deductions, are aso guaranteed. We determine any interest rate credited in excess of the 45

50 guaranteed rate at our soe discretion. Since the Decared Interest Option is a part of the Genera Account, we assume the risk of investment gain or oss on this amount. A assets in the Genera Account are subject to the Company s genera iabiities from business operations. To the extent that we are required to pay you amounts in addition to your Accumuated Vaue under any guarantees under the Contract, incuding the death benefit, such amounts wi come from our Genera Account. Thus, those guarantees are subject to our financia strength and caims paying abiity and the risk that we may defaut on the guarantees. You shoud be aware that our Genera Account assets are exposed to the risks normay associated with a portfoio of fixedincome securities, incuding interest rate, option, iquidity and credit risk. You shoud aso be aware that we issue other types of insurance poicies and financia products as we, and we pay our obigations under these products from assets in our Genera Account. The financia statements contained in the Statement of Additiona Information incude a further discussion of the risks inherent within the investments of the Genera Account. The Decared Interest Option wi not share in the investment performance of our Genera Account. Because we, in our soe discretion, anticipate changing the current interest rate from time to time, different aocations you make to the Decared Interest Option may be credited with different current interest rates. You assume the risk that interest credited to amounts in the Decared Interest Option may not exceed the minimum 4% guaranteed rate. Because of exemptive and excusionary provisions, we have not registered interests in the Decared Interest Option under the Securities Act of 1933 and we have not registered the Decared Interest Option as an investment company under the Investment Company Act of Accordingy, neither the Decared Interest Option nor any interests therein are subject to the provisions of these Acts and, as a resut, the staff of the Securities and Exchange Commission has not reviewed the discosures in this Prospectus reating to the Decared Interest Option. Discosures regarding the Decared Interest Option may, however, be subject to certain generay appicabe provisions of the federa securities aws reating to the accuracy and competeness of statements made in prospectuses. Pease refer to the Poicy and the Statement of Additiona Information for compete detais regarding the Decared Interest Option. Transfers, Partia Withdrawas, Surrenders and Poicy Loans You may transfer amounts between the Subaccounts and the Decared Interest Option. Ony one transfer from the Decared Interest Option to the Variabe Account is permitted in each Poicy Year. We may impose a transfer charge in connection with such transfer (see CHARGES AND DEDUCTIONS Transfer Charge ). No more than 50% of the Net Accumuated Vaue in the Decared Interest Option may be transferred from the Decared Interest Option uness the baance in the Decared Interest Option immediatey after the transfer woud be ess than $1,000. If the baance in the Decared Interest Option after a transfer woud be ess than $1,000, you may transfer the fu Net Accumuated Vaue in the Decared Interest Option. A Poicyowner may aso make surrenders and obtain Poicy Loans from the Decared Interest Option at any time prior to the Poicy s Maturity Date. We may deay transfers, payment of partia withdrawas and surrenders from, and payments of Poicy Loans aocated to, the Decared Interest Option for up to six months. 46

51 ADDITIONAL INSURANCE BENEFITS Subject to certain requirements, you may add one or more of the foowing additiona insurance benefits to a Poicy by rider: Universa Cost of Living Increase. This rider automaticay increases the Specified Amount under the Poicy on every third Poicy Anniversary without requiring evidence of insurabiity. The amount of each increase wi equa the esser of: (1) the initia Specified Amount pus any prior increases under the rider adjusted for changes in the Consumer Price Index; (2) 20% of the initia Specified Amount; or (3) $25,000. If you eect this rider, we wi increase the monthy deduction. The amount of the increase in the monthy deduction wi be based on the appicabe cost of insurance rate at the time of increase in Specified Amount mutipied by the amount of the increase. Universa Waiver of Charges. This rider provides that, in the event of the Insured s tota disabiity (as defined in the rider) before the Poicy Anniversary on which the Insured is age 65 and continuing for at east 90 days, the Company wi waive the monthy deduction unti the end of the disabiity or age 65, whichever comes first. The rider terminates on the eariest of: (1) the Poicy Anniversary on which the Insured is age 65; (2) surrender, apse or other termination of the Poicy; or (3) the continuation of the Poicy in force under a cash vaue option. If you eect this rider, we wi add a monthy cost of insurance charge based on a separate schedue of rates. Universa Convertibe Term Life Insurance. This rider provides term insurance coverage on your ife or the ife of an additiona adut Insured. If you eect this rider, we wi increase the monthy deduction. The amount of the increase wi be based on the cost of insurance rate for the Insured mutipied by the amount of term insurance coverage under the rider, pus a monthy charge for the first year of coverage and for the first year foowing any increase in coverage based on a specified doar rate per $1,000 of term insurance coverage or increase in coverage, as appicabe. Universa Daiy Living Benefit Rider. This rider provides that, in the event the Insured becomes chronicay i (as defined in the rider) for at east 90 consecutive days and is expected to remain chronicay i for at east 90 consecutive days into the future, upon a one time eection of the chronic iness benefit by the Poicyowner, the Company wi make a payment(s) of an amount up to the Specified Amount under the rider, subject to conditions set forth in the rider. If you eect this rider, the monthy deduction wi be increased based upon a specified doar rate per $1,000 of chronic iness benefit coverage. Universa Chidren s Term Life Insurance. This rider provides term insurance coverage on each of the Insured s eigibe chidren, unti the eariest of: (1) canceation or conversion of the Poicy or rider; (2) apse of the Poicy; (3) the insured chid reaches age 23 or is otherwise no onger eigibe for coverage; or (4) expiration, maturity or termination of the Poicy. Before expiration of the term insurance on the ife of a chid and subject to certain conditions, the insured chid may eect that the coverage be converted without evidence of insurabiity to certain other pans of insurance the Company offers. If you eect this rider, we wi add a monthy charge. Death Benefit Guarantee. This rider guarantees that the Poicy wi not enter the Grace Period shoud the Net Accumuated Vaue, or Net Surrender Vaue, as appicabe, be insufficient to cover the monthy deduction on the Monthy Deduction Day if you maintain a certain minimum premium eve. There is no charge for this rider. Universa Guaranteed Insurabiity Option. This rider aows the coverage on the Insured under the Poicy to be increased up to seven times without new evidence of insurabiity. If 47

52 this rider is added, the monthy deduction wi be increased based on a specified doar rate per every $1,000 of guaranteed insurance benefit. A schedue of rates based on the Attained Age of the Insured accompanies this rider. Not a riders are avaiabe in a states, and state variations may appy. We wi deduct the cost of any additiona insurance benefits as part of the monthy deduction. (See CHARGES AND DEDUCTIONS Monthy Deduction in the Prospectus.) You may obtain detaied information concerning avaiabe riders, and their suitabiity for incusion in your Poicy, from the registered representative seing the Poicy. Acceerated Payments of Death Proceeds The iving benefit (acceerated death benefit) rider (avaiabe at no charge) provides for the payment of a or a portion of the acceerated death benefit immediatey in the event that the Insured becomes terminay i (as defined beow). In the event that the Insured becomes terminay i, you may (if residing in a state that has approved the rider) by written request to our Home Office request and subject to the conditions stated beow, have the Company pay a or a portion of the acceerated death immediatey to you. If not attached to the Poicy beforehand, we wi issue a iving benefit rider providing this right to you upon written request to our Home Office, subject to the conditions stated beow. For this purpose, an Insured is terminay i when a physician (as defined by the rider) certifies that he or she has a ife expectancy of 12 months or ess. In the event that there is a oan outstanding under the Poicy on the date that the Poicyowner requests a payment under the rider, we reduce the acceerated death benefit by a portion of the outstanding oan in the same proportion that the requested payment under the rider bears to the tota death benefit under the Poicy. If the amount you request to be paid under the rider is ess than the tota death benefit under the Poicy and the Specified Amount of the Poicy is equa to or greater than the minimum Specified Amount, the Poicy wi remain in force with a vaues and benefits under the Poicy being reduced in the same proportion that the new Poicy benefit bears to the Poicy benefit before exercise of the rider. There are severa other restrictions associated with the rider. These are: (1) the rider is not vaid if the Poicy is within five years of being matured, (2) the consent of any irrevocabe beneficiary or assignee is required to exercise the rider, (3) we reserve the right, in our soe discretion, to require the consent of the Insured or of any beneficiary, assignee, spouse or other party of interest before permitting the exercise of the rider, (4) we reserve the right to obtain the concurrence of a second medica opinion as to whether any Insured is terminay i, and (5) the rider is not effective where: (a) you or the Insured woud be otherwise required by aw to use the rider to meet the caims of creditors, or (b) the Insured woud be otherwise required by any government agency to exercise the rider in order to appy for, obtain or keep a government benefit or entitement. The rider wi terminate at the earier of the end of the Grace Period for which any premium is unpaid, upon receipt in our Home Office of your written request to cance the rider or upon termination of the Poicy. 48

53 The Company beieves that for federa income tax purposes, an acceerated death benefit payment received under a iving benefit rider shoud be fuy excudabe from the gross income of the Beneficiary, except in certain business contexts. However, you shoud consut a quaified tax adviser about the consequences of adding this rider to a Poicy or requesting an acceerated death benefit payment under this rider. GENERAL PROVISIONS Specia Transfer Priviege You may, at any time prior to the Maturity Date whie the Poicy is in force, operate the Poicy as a fexibe premium fixed-benefit ife insurance poicy by requesting that we transfer a of the Accumuated Vaue in the Variabe Account to the Decared Interest Option. You may exercise this specia transfer priviege once each Poicy Year. Once you exercise the specia transfer priviege, we automaticay wi credit a future premium payments to the Decared Interest Option, unti you request a change in aocation to convert the Poicy back to a fexibe premium variabe ife insurance poicy. The Company wi not impose any charge for transfers resuting from the exercise of the specia transfer priviege. Change of Provisions We reserve the right to change the Poicy, in the event of future changes in the federa tax aw, to the extent required to maintain the Poicy s quaification as ife insurance under federa tax aw. Except as provided in the foregoing paragraph, no one can change any part of the Poicy except the Poicyowner and an officer of the Company. Both must agree to any change and such change must be in writing. No agent may change the Poicy or waive any of its provisions. Ownership The Poicy beongs to the Poicyowner. The origina Poicyowner is the person named as owner in the appication. Ownership of the Poicy may change according to the ownership option seected as part of the origina appication or by a subsequent endorsement to the Poicy. During the Insured s ifetime, a rights granted by the Poicy beong to the Poicyowner, except as otherwise provided for in the Poicy. Changing the Poicyowner may have tax consequences. Specia ownership rues may appy if the Insured is under ega age (as defined by state aw in the state in which the Poicy is deivered) on the Poicy Date. The Beneficiary The Poicyowner designates the primary Beneficiaries and contingent Beneficiaries in the appication. If changed, the primary Beneficiary or contingent Beneficiary is as shown in the atest change fied with the Company. One or more primary or contingent Beneficiaries may be named in the appication. In such case, the proceeds wi be paid in equa shares to the survivors in the appropriate beneficiary cass, uness requested otherwise by the Poicyowner. Uness a payment option is chosen, we wi pay the proceeds payabe at the Insured s death in a ump sum to the primary Beneficiary. If the primary Beneficiary dies before the Insured, we wi pay the proceeds to the contingent Beneficiary. If no Beneficiary survives the Insured, we wi pay the proceeds to the Poicyowner or the Poicyowner s estate. 49

54 Change of Address We confirm a Poicyowner change of address requests by sending a confirmation to both the od and new addresses. DISTRIBUTION OF THE POLICIES We have entered into a distribution agreement with our affiiate, FBL Marketing Services, LLC ( FBL Marketing ) for the distribution, sae and servicing of the Poicies. FBL Marketing sod and services the Poicies through its registered representatives, or through other broker-deaers ( seing firms ) that have entered into a seing agreement with FBL Marketing. FBL Marketing receives a 0.25% fee from the foowing Investment Options in the form of 12b-1 fees based on Poicy assets aocated to the Investment Option: Dreyfus Sustainabe U.S. Equity Portfoio, Inc. Service Share Cass; Fideity Variabe Insurance Products Funds: VIP High Income Portfoio Service Cass 2 and VIP Mid Cap Portfoio Service Cass 2; and Frankin Tempeton Variabe Insurance Products Trust: Frankin Goba Rea Estate VIP Fund Cass 2, Frankin Sma Cap Vaue VIP Fund Cass 2, Frankin Sma-Mid Cap Growth VIP Fund Cass 2, Frankin U.S. Government Securities VIP Fund Cass 2, Frankin Mutua Shares VIP Fund Cass 2 and Tempeton Growth VIP Fund Cass 2. 12b-1 cass shares of these Investment Options have adopted distribution pans pursuant to Rue 12b-1 under the Investment Company Act of 1940, which aows the Investment Options to pay fees out of Investment Option assets to those who se and distribute Investment Option shares. The compensation received by FBL Marketing s registered representatives is not impacted by the Investment Options you choose. Each Investment Option s investment adviser may, from time to time, use its management fee revenue, as we as its past profits or its other resources as may be permitted by reguatory rues to make payment for distribution services to FBL Marketing, which may in turn pay part or a of such compensation to a broker-deaer of record with whom it has entered into a seing agreement. To cover costs and expenses associated with faciitating Poicy saes, we pay FBL Marketing a monthy amount equa to 5% of commissions and service fees paid to managers and registered representatives of FBL Marketing. We pay commissions to FBL Marketing for the sae of the Poicies by its registered representatives as we as for saes by seing firms. The maximum commissions payabe for Poicy saes are: 110% of premiums up to the Threshod Premium (1) and 4% of premiums above that amount paid in the first Poicy Year; 5% of premiums in each Poicy Year after the first Poicy Year. For each premium received foowing an increase in Specified Amount, a commission on such premiums wi be paid up to 110% of the increase in Threshod Premium for the first year foowing the increase in Specified Amount. Managers of FBL Marketing s registered representatives may aso receive commission overrides on the registered representatives commissions. We aso pay commissions for substandard risk and rider premiums based on our rues at the time of payment. Additiona amounts may be paid and expenses may be reimbursed based on various factors. FBL Marketing passes through a commissions it receives to its registered representatives and to seing firms, and does not retain any commissions as distributor for the Poicies. Under the distribution agreement with FBL Marketing, we may aso pay the foowing types of expenses: supervisor and registered representative manager compensation; registered representative training aowances; deferred compensation and insurance benefits of registered representatives; advertising expenses; and a other expenses of distributing the Poicies. (1) The Threshod Premium is a specified annua premium which is based on the age, sex and underwriting cass of the Insured, the Specified Amount of the Poicy and the types and amounts of any additiona benefits incuded in the Poicy. 50

55 Because registered representatives of FBL Marketing are aso insurance agents of the Company, they and their managers are eigibe for various cash benefits, such as bonuses, insurance benefits, financing arrangements such as oans and advances, and non-cash compensation programs that the Company offers. These programs incude conferences, seminars, meas, sporting events, theater performances, payment for trave, odging and entertainment, prizes and awards, subject to appicabe reguatory requirements. Saes of the Poicies may hep registered representatives and their managers quaify for such benefits. Registered representatives and their managers may receive other payments from the Company for services that do not directy invove the sae of the Poicies, incuding payments made for the recruitment and training of personne, production of promotiona iterature and simiar services. In addition, FBL Marketing s registered representatives and their managers who meet certain Company productivity, persistency and ength of service standards may be eigibe for additiona compensation. We aso pay commissions for substandard risk and rider premiums based on our rues at the time of payment. FBL Marketing may pay additiona compensation from its own resources to seing firms based on Poicy saes or premium payment amounts. A portion of the payments made to seing firms may be passed on to their saes representatives in accordance with their interna compensation programs. Those programs may incude other types of cash and non-cash compensation and other benefits. Ask your saes representative for further information about what your saes representative and the seing firm for which he or she works may receive in connection with your purchase of a Poicy. Saes charges deducted from premium payments, as we as proceeds from the Surrender Charge on the Poicies are retained by us and used to defray the expenses we incur in paying for distribution-reated services under the distribution agreement, such as the payment of commissions. See DISTRIBUTION OF THE POLICIES in the Statement of Additiona Information for more information concerning compensation paid for the sae of the Poicies. We have discontinued new saes of the Poicies to the pubic. Under the BrokerCheck Program, Financia Industry Reguatory Authority ( FINRA ) provides certain information regarding the discipinary history of member broker-deaers and their associated persons in response to written, eectronic or teephone inquiries. FINRA s BrokerCheck Hotine teephone number is and their Web site address is An investor brochure is avaiabe that incudes information describing FINRA BrokerCheck. Investor concerns may be directed to FBL Marketing Services, LLC at 5400 University Avenue, West Des Moines, IA or by caing our to-free number at FEDERAL TAX MATTERS Introduction The foowing summary provides a genera description of the Federa income tax considerations associated with the poicy and does not purport to be compete or to cover a tax situations. This discussion is not intended as tax advice. Counse or other competent tax advisors shoud be consuted for more compete information. This discussion is based upon our understanding of the present Federa income tax aws. No representation is made as to the ikeihood of continuation of the present Federa income tax aws or as to how they may be interpreted by the Interna Revenue Service. 51

56 Tax Status of the Poicy In order to quaify as a ife insurance contract for Federa income tax purposes and to receive the tax treatment normay accorded ife insurance contracts under Federa tax aw, a ife insurance poicy must satisfy certain requirements which are set forth in the Interna Revenue Code. Guidance as to how these requirements are to be appied is imited. Nevertheess, we beieve that a Poicy issued on the basis of a standard rate cass shoud satisfy the appicabe requirements. There is ess guidance, however, with respect to a Poicy issued on a substandard basis (i.e., a premium cass invoving higher than standard mortaity risk). It is not cear whether such a Poicy wi in a cases satisfy the appicabe requirements, particuary if you pay the fu amount of premiums permitted under the Poicy. If it is subsequenty determined that a poicy does not satisfy the appicabe requirements, we may take appropriate steps to bring the poicy into compiance with such requirements and we reserve the right to modify the Poicy as necessary in order to do so. In some circumstances, Poicyowners who retain excessive contro over the investment of the underying Variabe Account assets may be treated as the owners of those assets and may be subject to tax currenty on income and gains produced by those assets. Athough pubished guidance in this area does not address certain aspects of the Poicies, we beieve that the Poicyowner shoud not be treated as the owner of the Variabe Account assets. We reserve the right to modify the Poicies to bring them into conformity with appicabe standards shoud such modifications be necessary to prevent Poicyowners from being treated as the owners of the underying Variabe Account assets. In addition, the Code requires that the investments of the Subaccounts be adequatey diversified in order for the Poicy to be treated as a ife insurance contract for Federa income tax purposes. It is intended that the Subaccounts, through the funds, wi satisfy these diversification requirements. The foowing discussion assumes that the Poicy wi quaify as a ife insurance contract for Federa income tax purposes. Tax Treatment of Poicy Benefits In Genera. The Company beieves that the death benefit under a Poicy shoud generay be excudibe from the gross income of the beneficiary. Federa, state and oca estate, inheritance, transfer, and other tax consequences of ownership or receipt of poicy proceeds depend on the circumstances of each Poicyowner or beneficiary. A tax adviser shoud be consuted on these consequences. Generay, a Poicyowner wi not be deemed to be in constructive receipt of the Accumuated Vaue unti there is a distribution. When distributions from a Poicy occur, or when oans are taken out from or secured by a Poicy, the tax consequences depend on whether the Poicy is cassified as a modified endowment contract ( MEC ). Modified Endowment Contracts. Under the Interna Revenue Code, certain ife insurance contracts are cassified as Modified Endowment Contracts, with ess favorabe tax treatment than other ife insurance contracts. Due to the fexibiity of the Poicies as to premiums and benefits, the individua circumstances of each Poicy wi determine whether it is cassified as a MEC. In genera, a Poicy wi be cassified as a MEC if the amount of premiums paid into the Poicy causes the Poicy to fai the 7-pay test. A Poicy wi generay fai the 7-pay test if, at any time in the first seven Poicy Years, the amount paid into the Poicy exceeds the sum of the eve premiums that woud have been paid at that point under a Poicy that provided for paid-up future benefits after the payment of seven eve annua payments. A ife insurance poicy received in a tax-free exchange for another ife insurance poicy that was a MEC wi aso be cassified as a MEC. 52

57 Where there is a reduction in the benefits under the Poicy during the first seven Poicy Years (for exampe, as a resut of a partia withdrawa), the 7-pay test wi have to be reappied as if the Poicy had originay been issued at the reduced face amount. If there is a materia change in the Poicy s benefits or other terms at any time, the Poicy may have to be re-tested as if it were a newy issued Poicy. A materia change may occur, for exampe, when there is an increase in the death benefit due to the payment of an unnecessary premium. Unnecessary premiums are premiums paid into the Poicy which are not needed in order to provide a death benefit equa to the owest death benefit that was payabe in the first seven Poicy Years. To prevent your Poicy from becoming a MEC, it may be necessary to imit premium payments or to imit reductions in benefits. A current or prospective Poicyowner shoud consut a tax adviser to determine whether a transaction wi cause the Poicy to be cassified as a MEC. Distributions Other Than Death Benefits from Modified Endowment Contracts. Poicies cassified as MECs are subject to the foowing tax rues: (1) A distributions other than death benefits from a MEC, incuding distributions upon surrender and withdrawas, wi be treated first as distributions of gain taxabe as ordinary income and as tax-free recovery of the Poicyowner s investment in the Poicy ony after a gain has been distributed. (2) Loans taken from or secured by a Poicy cassified as a MEC are treated as distributions and taxed accordingy. (3) A 10 percent additiona income tax is imposed on the amount subject to tax except where the distribution or oan is made when the Poicyowner has attained age or is disabed, or where the distribution is part of a series of substantiay equa periodic payments for the ife (or ife expectancy) of the Poicyowner or the joint ives (or joint ife expectancies) of the Poicyowner and the Poicyowner s beneficiary or designated beneficiary. (4) If a Poicy becomes a MEC, distributions that occur during the Poicy Year wi be taxed as distributions from a MEC. In addition, distributions from a Poicy within two years before it becomes a MEC may be taxed in this manner. This means that a distribution made from a Poicy that is not a MEC coud ater become taxabe as a distribution from a MEC. Distributions Other Than Death Benefits from Poicies that are not Modified Endowment Contracts. Distributions other than death benefits from a Poicy that is not cassified as a MEC, incuding surrenders and partia withdrawas, are generay treated first as a recovery of the Poicyowner s investment in the Poicy, and ony after the recovery of a investment in the Poicy, as taxabe income. However, certain distributions which must be made in order to enabe the Poicy to continue to quaify as a ife insurance contract for Federa income tax purposes if Poicy benefits are reduced during the first 15 Poicy Years may be treated in whoe or in part as ordinary income subject to tax. Loans from or secured by a Poicy that is not a MEC wi generay not be treated as taxabe distributions. However, the tax treatment of a oan taken out of a Poicy where there is no spread (difference between the interest rate charged to you and the interest rate credited to amounts securing the oan), as the case may be on oans for Poicies in force ten years or more, or a minima spread is uncear. You shoud consut your tax adviser about any such oan. Finay, neither distributions from, nor oans from or secured by, a Poicy that is not a MEC are subject to the 10 percent additiona income tax. Investment in the Poicy. Your investment in the Poicy is generay your aggregate premiums. When a distribution is taken from the Poicy, your investment in the Poicy is reduced by the amount of the distribution that is tax-free. 53

58 Poicy Loans. In genera, interest on a Poicy Loan wi not be deductibe. If a oan from a Poicy is outstanding when the Poicy is canceed or apses, then the amount of the outstanding indebtedness wi be added to the amount treated as a distribution from the Poicy and wi be taxed accordingy. Before taking out a Poicy Loan, you shoud consut your tax adviser as to the tax consequences. Mutipe Poicies. A MECs that are issued by the Company (or its affiiates) to the same Poicyowner during any caendar year are treated as one MEC for purposes of determining the amount incudibe in the Poicyowner s income when a taxabe distribution occurs. Acceerated Death Benefits. The Company beieves that for federa income tax purposes, an acceerated death benefit payment received under an acceerated death benefit endorsement shoud be fuy excudabe from the gross income of the beneficiary, except in certain business contexts. However, you shoud consut a quaified tax adviser about the consequences of adding this Endorsement to a Poicy or requesting an acceerated death benefit payment under this Endorsement. Exchanges. The Company beieves that an exchange of a fixed-benefit poicy issued by the Company for a Poicy as provided under THE POLICY Exchange Priviege generay shoud be treated as a non-taxabe exchange of ife insurance poicies within the meaning of section 1035 of the Code. However, in certain circumstances, the exchanging owner may receive a cash distribution that might have to be recognized as income to the extent there was gain in the fixedbenefit poicy. Moreover, to the extent a fixed-benefit poicy with an outstanding oan is exchanged for an unencumbered Poicy, the exchanging owner coud recognize income at the time of the exchange up to an amount of such oan (incuding any due and unpaid interest on such oan). An exchanging Poicyowner shoud consut a tax adviser as to whether an exchange of a fixed-benefit poicy for the Poicy wi have adverse tax consequences. Other Poicyowner Tax Matters. Businesses can use the Poicy in various arrangements, incuding nonquaified deferred compensation or saary continuance pans, spit doar insurance pans, executive bonus pans, tax exempt and nonexempt wefare benefit pans, retiree medica benefit pans and others. The tax consequences of such pans may vary depending on the particuar facts and circumstances. If you are purchasing the Poicy for any arrangement the vaue of which depends in part on its tax consequences, you shoud consut a quaified tax adviser. In recent years, moreover, Congress has adopted additiona rues reating to ife insurance owned by businesses. Any business contempating the purchase of a new Poicy or a change in an existing Poicy shoud consut a tax adviser. Empoyer-owned Life Insurance Contracts. Pursuant to section 101(j) of the Code, uness certain eigibiity, notice and consent requirements are satisfied, the amount excudibe as a death benefit payment under an empoyer-owned ife insurance contract wi generay be imited to the premiums paid for such contract (athough certain exceptions may appy in specific circumstances). An empoyer-owned ife insurance contract is a ife insurance contract owned by an empoyer that insures an empoyee of the empoyer and where the empoyer is a direct or indirect beneficiary under such contract. It is the empoyer s responsibiity (i) to verify the eigibiity of the intended insured under empoyer-owned ife insurance contracts and to provide the notices and obtain the consents required by section 101(j) and (ii) to satisfy certain annua tax reporting requirements in respect of empoyer-owned ife insurance contracts that are aso imposed under the Code. These requirements generay appy to empoyer-owned ife insurance contracts issued or materiay modified after August 17, A tax adviser shoud be consuted by anyone considering the purchase or modification of an empoyer-owned ife insurance contract. Non-Individua Poicyowners and Business Beneficiaries of Poicies. If a Poicy is owned or hed by a corporation, trust or other non-natura person, this coud jeopardize some (or a) of such entity s interest deduction under Code Section 264, even where such entity s indebtedness is in no way connected to the Poicy. In addition, under Section 264(f)(5), if a business (other than a soe 54

59 proprietorship) is directy or indirecty a Beneficiary of a Poicy, this Poicy coud be treated as hed by the business for purposes of the Section 264(f) entity-hoder rues. Therefore, it woud be advisabe to consut with a quaified tax advisor before any non-natura person is made an owner or hoder of a Poicy, or before a business (other than a soe proprietorship) is made a Beneficiary of a Poicy. Spit-Doar Arrangements. The IRS and the Treasury Department have issued guidance that substantiay affects spit-doar arrangements. Consut a quaified tax adviser before entering into or paying additiona premiums with respect to such arrangements. Additionay, the Sarbanes-Oxey Act of 2002 prohibits, with imited exceptions, pubicy-traded companies, incuding non-u.s. companies that have securities isted on exchanges in the United States, from extending, directy or through a subsidiary, many types of persona oans to their directors or executive officers. It is possibe that this prohibition may be interpreted as appying to spit-doar ife insurance poicies for directors and executive officers of such companies since such insurance arguaby can be viewed as invoving a oan from the empoyer for at east some purposes. Athough the prohibition on oans is generay effective as of Juy 30, 2002, there is an exception for oans outstanding as of the date of enactment, provided there is no materia modification to the oan terms and the oan is not renewed after Juy 30, Any affected business contempating the payment of a premium on an existing Poicy or the purchase of a new Poicy in connection with a spit-doar insurance arrangement shoud consut ega counse. Tax Sheter Reguations. Prospective owners that are corporations shoud consut a tax advisor about the treatment of the Poicy under the Treasury Reguations appicabe to corporate tax sheters. Aternative Minimum Tax. There may aso be an indirect tax upon the income in the Poicy or the proceeds of a Poicy under the federa corporate aternative minimum tax, if the Poicyowner is subject to that tax. Estate, Gift and Generation-Skipping Transfer Taxes. The transfer of the Poicy or designation of a Beneficiary may have federa, state, and/or oca transfer and inheritance tax consequences, incuding the imposition of gift, estate, and generation-skipping transfer ( GST ) taxes. For exampe, when the Insured dies, the death proceeds wi generay be incudabe in the Poicyowner s estate for purposes of federa estate tax if the Insured owned the poicy. If the Poicyowner was not the Insured, the fair market vaue of the Poicy woud be incuded in the Poicyowner s estate upon the Poicyowner s death. The Poicy woud not be incudabe in the Insured s estate if the Insured neither retained incidents of ownership at death nor had given up ownership within three years before death. Moreover, under certain circumstances, the Code may impose a generation skipping transfer tax when a or part of a ife insurance poicy is transferred to, or a death benefit is paid to, an individua two or more generations younger than the Poicyowner. Reguations issued under the Code may require us to deduct the tax from your Poicy, or from any appicabe payment, and pay it directy to the IRS. Quaified tax advisers shoud be consuted concerning the estate and gift tax consequences of Poicy ownership and distributions under federa, state and oca aw. The individua situation of each Poicyowner or Beneficiary wi determine the extent, if any, to which federa, state, and oca transfer and inheritance taxes may be imposed and how ownership or receipt of poicy proceeds wi be treated for purposes of federa, state and oca estate, inheritance, generation skipping and other taxes. 55

60 The potentia appication of these taxes underscores the importance of seeking guidance from a quaified adviser to hep ensure that your estate pan adequatey addresses your needs and those of your beneficiaries under a possibe scenarios. Medicare Tax on Investment Income. Beginning in 2013, a 3.8% tax may be appied to some or a of the taxabe portion of some distributions from ife insurance contracts (such as payments under certain settement options) to individuas whose income exceeds certain threshod amounts ($200,000 for fiing singe, $250,000 for married fiing jointy and $125,000 for married fiing separatey). Pease consut a tax advisor for more information. Withhoding. To the extent that Poicy distributions are taxabe, they are generay subject to withhoding for the recipient s federa income tax iabiity. Recipients can generay eect, however, not to have tax withhed from distributions. Life Insurance Purchases by Residents of Puerto Rico. The Interna Revenue Service has announced that income received by residents of Puerto Rico under ife insurance contracts issued by a Puerto Rican branch of a United States ife insurance company is U.S.-source income that is generay subject to United States Federa income tax. Life Insurance Purchases by Nonresident Aiens and Foreign Corporations. Purchasers that are not U.S. citizens or residents wi generay be subject to U.S. federa withhoding tax on taxabe distributions from ife insurance poicies at a 30% rate, uness a ower treaty rate appies. In addition, purchasers may be subject to state and/or municipa taxes and taxes that may be imposed by the purchaser s country of citizenship or residence. Prospective purchasers are advised to consut with a quaified tax adviser regarding taxation with respect to a ife insurance poicy purchase. Foreign Tax Credits. To the extent permitted under the federa tax aw, the Company may caim the benefit of certain foreign tax credits attributabe to taxes paid by certain Portfoios to foreign jurisdictions. Possibe Tax Law Changes Athough the ikeihood of egisative changes is uncertain, there is aways the possibiity that the tax treatment of the Poicy coud change by egisation or otherwise. Consut a tax adviser with respect to egisative deveopments and their effect on the Poicy. Taxation of the Company At the present time, the Company makes no charge for any Federa, state or oca taxes (other than the charge for state premium taxes) that may be attributabe to the Variabe Account or to the poicies. The Company reserves the right to charge the Subaccounts of the Variabe Account for any future taxes or economic burden the Company may incur. PAYMENT OPTIONS We may pay death proceeds and Accumuated Vaue due at maturity, or upon surrender or partia withdrawa of a Poicy, in whoe or in part under a payment option as described beow. We aso may make payments under any new payment option avaiabe at the time proceeds become payabe. In addition, we may pay proceeds in any other manner acceptabe to us. You may designate an option in your appication or notify us in writing at our Home Office. During the ife of the Insured, you may seect a payment option; in addition, during that time you may change a previousy seected option by sending Written Notice to us requesting the canceation of the prior option and the designation of a new option. If you have not chosen an 56

61 option prior to the Insured s death, the Beneficiary may choose an option. The Beneficiary may change a payment option by sending a written request to us, provided that a prior option chosen by you is not in effect. If you have not eected a payment option, we wi pay the proceeds of the Poicy in one sum. You may choose a ump sum payment under a Living Tradition Account ( LTA ). The LTA is an interest-bearing account. Account information, aong with a book of drafts (which wi function ike a checkbook), wi be sent to the payee, and the payee wi have access to funds in the account simpy by writing a draft for a or part of the amount of the avaiabe baance, and depositing or using the draft as desired. When the draft is paid through the bank that administers the account for the Company, the bank wi receive the amount the payee requests as a transfer from the Company s Genera Account. The LTA is not a bank account, and it is not insured by the FDIC or any other government agency. As part of our Genera Account, the LTA is backed by the financia strength of the Company, athough it is subject to the caims of our creditors. We receive a benefit from a amounts eft in the LTA. We pay interest on proceeds hed in the LTA. We wi aso pay the proceeds in one sum if, (1) the proceeds are ess than $2,000; (2) periodic payments woud be ess than $20; or (3) the payee is an assignee, estate, trustee, partnership, corporation or association. Amounts paid under a payment option are paid pursuant to a payment contract and wi not vary. Proceeds appied under a payment option earn interest at a rate guaranteed to be no ess than 3% compounded yeary. The Company may be crediting higher interest rates on the effective date of the payment contract, but is not obigated to decare that such additiona interest be appied to such funds. If a payee dies, any remaining payments wi be paid to a contingent payee. At the death of the ast payee, the commuted vaue of any remaining payments wi be paid to the ast payee s estate. A payee may not withdraw funds under a payment option uness the Company has agreed to such withdrawa in the payment contract. We reserve the right to defer a withdrawa for up to six months and to refuse to aow partia withdrawas of ess than $250. Payments under Option A wi begin at the end of the first interest period after the date proceeds are otherwise payabe. Payments under Options B, C or D wi begin as of the date of the Insured s death, on surrender or on the Maturity Date. Option A Proceeds Left at Interest. Periodic payments of interest earned from the proceeds wi be paid. Payments can be annua, semi-annua, quartery or monthy, as seected by the payee, and wi begin at the end of the first period chosen. Proceeds eft under this pan wi earn interest at a rate determined by the Company, in no event ess than 3% compounded yeary. The payee may withdraw a or part of the proceeds at any time. Option B Payment for a Designated Number of Years. Periodic payments wi be made for a fixed period not onger than 30 years. Payments can be annua, semi-annua, quartery or monthy. Guaranteed amounts payabe under the pan wi earn interest at a rate determined by the Company, in no event ess than 3% compounded yeary. Option C Payment of Life Income. Equa periodic payments wi be made for a guaranteed minimum period eected. If the payee ives onger than the minimum period, payments wi continue for his or her ife. The minimum period can be 10, 15 or 20 years. Guaranteed amounts payabe under this pan wi earn interest at a rate determined by the Company, in no event ess than 3% compounded yeary. Option D Payment of a Designated Amount. Equa periodic payments of a definite amount wi be paid. Payments can be annua, semi-annua, quartery or monthy. The amount paid each period 57

62 must be at east $20 for each $1,000 of proceeds. Payments wi continue unti the proceeds are exhausted. The ast payment wi equa the amount of any unpaid proceeds. Unpaid proceeds wi earn interest at a rate determined by the Company, in no event ess than 3% compounded yeary. Aternate Payment Options. The Company may make avaiabe aternative payment options. Even if the death benefit under the Poicy is excudabe from income, payments under payment options may not be excudibe in fu. This is because earnings on the death benefit after the Insured s death are taxabe and payments under the payment options generay incude such earnings. A tax adviser shoud be consuted with respect to the tax consequences associated with a payment option. ADDITIONAL INFORMATION Voting Rights To the extent required by aw, the Company wi vote the Fund shares hed in the Variabe Account at reguar and specia sharehoder meetings of the Funds in accordance with instructions received from persons having voting interests in the corresponding Subaccounts. If, however, the Investment Company Act of 1940 or any reguation thereunder shoud be amended or if the present interpretation thereof shoud change, and, as a resut, we determine that it is permitted to vote the Fund shares in its own right, we may eect to do so. The number of votes which a Poicyowner has the right to instruct are cacuated separatey for each Subaccount and are determined by dividing the Poicy s Accumuated Vaue in a Subaccount by the net asset vaue per share of the corresponding Investment Option in which the Subaccount invests. Fractiona shares wi be counted. The number of votes of the Investment Option which you have the right to instruct wi be determined as of the date coincident with the date estabished by that Investment Option for determining sharehoders eigibe to vote at such meeting of the Fund. Voting instructions wi be soicited prior to such meeting in accordance with procedures estabished by each Fund. The Company wi vote Fund shares attributabe to Poicies as to which no timey instructions are received (as we as any Fund shares hed in the Variabe Account which are not attributabe to Poicies) in proportion to the voting instructions which are received with respect to a Poicies participating in each Investment Option. Voting instructions to abstain on any item to be voted upon wi be appied on a pro rata basis to reduce the votes eigibe to be cast on a matter. Proportiona voting may resut in a sma number of owners determining the outcome of a vote. Fund shares may aso be hed by separate accounts of other affiiated and unaffiiated insurance companies. The Company expects that those shares wi be voted in accordance with instructions of the owners of insurance poicies and contracts issued by those other insurance companies. Voting instructions given by owners of other insurance poicies wi diute the effect of voting instructions of Poicyowners. Eectronic Transactions You are entited to change the aocation of your Subaccount seection or transfer monies among the Subaccounts eectronicay, to the extent avaiabe. We cannot guarantee that you wi aways be abe to reach us to compete an eectronic transaction; for exampe, our website may be busy during certain periods, such as periods of substantia market fuctuations or other drastic economic or market change, or the internet may be out of service during severe weather conditions or other emergencies. If you are experiencing probems, you shoud send your Written Notice to our Home Office via mai or facsimie. Transaction instructions wi be effective as of the end of the 58

63 Vauation Period during which we receive the request at our Home Office. We wi provide you confirmation of each eectronic transaction. We have estabished procedures reasonaby designed to confirm that instructions communicated eectronicay are genuine. These procedures may require any person requesting an eectronic transaction to provide certain persona identification upon our request. We may aso record a or part of any teephone conversation with respect to transaction instructions. We reserve the right to deny any transaction request made eectronicay. You are authorizing us to accept and to act upon instructions received eectronicay with respect to your Poicy, and you agree that, so ong as we compy with our procedures, neither we, any of our affiiates, nor the Fund, or any of their trustees or officers wi be iabe for any oss, iabiity, cost or expense (incuding attorney s fees) in connection with requests that we beieve to be genuine. This poicy means that provided we compy with our procedures, you wi bear the risk of oss arising out of the eectronic transaction privieges of your Poicy. Postponement of Payments The Company wi usuay mai the proceeds of compete surrenders, partia withdrawas and Poicy Loans within seven days after we receive the Poicyowner s signed request at our Home Office. The Company wi usuay mai death proceeds within seven days after receipt of Due Proof of Death and maturity benefits within seven days of the Maturity Date. However, we may postpone payment of any amount upon compete surrender or partia withdrawa, payment of any Poicy Loan, and payment of death proceeds or benefits at maturity whenever: the New York Stock Exchange is cosed other than customary weekend and hoiday cosings, or trading on the New York Stock Exchange is restricted as determined by the Securities and Exchange Commission; the Securities and Exchange Commission by order permits postponement for the protection of Poicyowners; or an emergency exists, as determined by the Securities and Exchange Commission, as a resut of which disposa of the securities is not reasonaby practicabe or it is not reasonaby practicabe to determine the vaue of the net assets of the Variabe Account. We aso may postpone transfers under these circumstances. If, under SEC rues, the Federated Government Money Fund II suspends payments of redemption proceeds in connection with a iquidation of the Portfoio, We wi deay payment of any transfer, partia withdrawa, surrender, Poicy Loan or death proceeds from the Money Market Subaccount unti the Portfoio is iquidated. Payments under the Poicy which are derived from any amount paid to the Company by check or draft may be postponed unti such time as the Company is satisfied that the check or draft has ceared the bank upon which it is drawn. If mandated under appicabe aw, the Company may be required to bock a Poicyowner s account and thereby refuse to pay any request for transfer, partia withdrawa, compete surrender, oan or death proceeds unti instructions are received from the appropriate reguator. We may aso be required to provide additiona information about you and your account to government reguators. Lega Proceedings The Company, ike other insurance companies, is invoved in awsuits. Currenty, there are no cass action awsuits invoving the Variabe Account. In some awsuits invoving other insurers, substantia damages have been sought and/or materia settement payments have been made. Athough the outcome of any itigation cannot be predicted with certainty, we beieve that at the 59

64 present time, there are no pending or threatened awsuits that are reasonaby ikey to have a materia adverse impact on the Variabe Account, the abiity of FBL Marketing Services, LLC to perform its contract with the Variabe Account or the abiity of the Company to meet its obigations under the Poicies. Business Disruption and Cyber Security Risks We rey heaviy on interconnected computer systems and digita data to conduct our variabe product business activities. Because our variabe product business is highy dependent upon the effective operation of our computer systems and those of our business partners, our business is vunerabe to disruptions from utiity outages, and susceptibe to operationa and information security risks resuting from information systems faiure (e.g., hardware and software mafunctions), and cyber-attacks. These risks incude, among other things, the theft, misuse, corruption and destruction of data maintained onine or digitay, interference with or denia of service, attacks on websites and other operationa disruption and unauthorized reease of confidentia Poicyowner information. Such systems faiures and cyber-attacks affecting us, the Investment Options, intermediaries and other affiiated or third-party service providers may adversey affect us and your Accumuated Vaue. For instance, systems faiures and cyber-attacks may interfere with our processing of Poicy transactions, incuding the processing of orders with the Investment Options, cause the reease and possibe destruction of confidentia Poicyowner or business information, impede order processing, subject us and/or our service providers and intermediaries to reguatory fines and financia osses and/or cause reputationa damage. Cyber security risks may aso impact the issuers of securities in which the Investment Options invest, which may cause the Investment Options underying your Poicy to ose vaue. There can be no assurance that we or the Investment Options or our service providers wi avoid osses affecting your Poicy due to cyber-attacks or information security breaches in the future. FINANCIAL STATEMENTS The Variabe Account s statements of assets and iabiities as of December 31, 2017 and the reated statements of operations and changes in net assets for the periods discosed in the financia statements, as we as the reated report of Ernst & Young LLP, an independent registered pubic accounting firm, are contained in the Statement of Additiona Information. The audited consoidated baance sheets of the Company at December 31, 2017 and 2016 and the reated statements of operations, comprehensive income, changes in stockhoder s equity and cash fows for each of the three years in the period ended December 31, 2017, and financia statement schedues as we as the reated reports of Ernst & Young LLP, an independent registered pubic accounting firm, are contained in the Statement of Additiona Information. The Company s financia statements shoud be considered ony as bearing on the Company s abiity to meet its obigations under the Poicies. They shoud not be considered as bearing on the investment performance of the assets hed in the Variabe Account. 60

65 STATEMENT OF ADDITIONAL INFORMATION The Statement of Additiona Information (the SAI ) contains more detaied information about the Poicies than is contained in this Prospectus. The SAI is incorporated by reference into this Prospectus and is egay a part of this Prospectus. The tabe of contents for the SAI appears on the ast page of this Prospectus. For a free copy of the SAI, pease ca us to-free at , or write to us at 5400 University Avenue, West Des Moines, Iowa You may aso ca us to-free or write to us if you wish to receive a free personaized iustration of your Poicy s death benefit, Accumuated Vaue and Surrender Vaue, to request additiona information and to ask questions about your Poicy. We reserve the right to assess an Iustrative Report Fee of $25 for each additiona copy of personaized iustrations that a Poicyowner requests in a Poicy Year. We do not currenty assess such a charge. The SAI has been fied with the SEC and is incorporated by reference into this Prospectus. The SEC maintains an Internet website ( that contains the SAI and other information about us and the Poicy. Information about us and the Poicy (incuding the SAI) may aso be reviewed and copied at the SEC s Pubic Reference Room in Washington, D.C., or may be obtained, upon payment of a dupicating fee, by writing the Pubic Reference Section of the SEC, 100 F Street, NE, Washington, D.C Additiona information on the operation of the Pubic Reference Room may be obtained by caing the SEC at Investment Company Act of 1940, Fie Number

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67 GLOSSARY Accumuated Vaue: The tota amount invested under the Poicy. It is the sum of the vaues of the Poicy in each subaccount of the Variabe Account, the vaue of the Poicy in the Decared Interest Option and any amounts transferred to the Decared Interest Option to secure any outstanding Poicy Debt. Attained Age: The Insured s age on his or her ast birthday on the Poicy Date pus the number of Poicy Years since the Poicy Date. Beneficiary: The person or entity the Poicyowner named in the appication, or by ater designation, to receive the death proceeds upon the Insured s death. Business Day: Each day that the New York Stock Exchange is open for trading. Assets are vaued at the cose of each Business Day. Each Business Day ends at the cose of norma trading on the New York Stock Exchange (generay, 3:00 p.m. centra time). Company, we, us, our: Farm Bureau Life Insurance Company. Corridor Death Benefit: The Accumuated Vaue mutipied by the specified amount factor for the Insured s Attained Age, as set forth in the Poicy. Decared Interest Option: A part of the Company s Genera Account. Poicyowners may aocate Net Premiums and transfer Accumuated Vaue to the Decared Interest Option. The Company credits Accumuated Vaue in the Decared Interest Option with interest at an annua rate guaranteed to be at east 4%. Deivery Date: The date when the Company issues the Poicy and mais it to the Poicyowner. Due Proof of Death: Proof of death that is satisfactory to the Company. Such proof may consist of the foowing: (a) A certified copy of the death certificate; (b) A certified copy of a court decree reciting a finding of death; (c) the Beneficiary s statement of eection; (d) a copy of the Beneficiary s Form W-9; or (e) Any other proof satisfactory to the Company. Fund or Portfoio: An investment company registered with the SEC under the Investment Company Act of 1940 as an open-end, diversified management investment company or unit investment trust in which the Variabe Account invests. Genera Account: The assets of the Company other than those aocated to the Variabe Account or any other separate account. Good Order: This means the actua receipt by us of the instructions reating to a transaction in writing or when appropriate by teephone aong with a forms, information and supporting ega documentation (incuding any required consents) we require in order to effect the transaction. To be in good order, instructions must be sufficienty cear so that we do not need to exercise any discretion to foow such instructions. Grace Period: The 61-day period beginning on the date we send notice to the Poicyowner that Net Accumuated Vaue or Net Surrender Vaue is insufficient to cover the monthy deduction. Home Office: The Company s principa office at 5400 University Avenue, West Des Moines, Iowa Teephone: Fax: G-1

68 Insured: The person upon whose ife the Company issues a Poicy. Investment Option: A Fund, or a separate investment portfoio of a Fund in which a Subaccount invests. Maturity Date: The Insured s Attained Age 115 (Attained Age 95 in the state of Utah). It is the date when the Poicy terminates and the Poicy s Accumuated Vaue ess Poicy Debt becomes payabe to the Poicyowner or the Poicyowner s estate. Monthy Deduction Day: The same date in each month as the Poicy Date. The Company makes the monthy deduction on the Business Day coinciding with or immediatey foowing the Monthy Deduction Day. (See CHARGES AND DEDUCTIONS Monthy Deduction. ) Net Accumuated Vaue: The Accumuated Vaue of the Poicy reduced by any outstanding Poicy Debt and increased by any unearned oan interest. Net Asset Vaue: The tota current vaue of each Subaccount s securities, cash, receivabes and other assets ess iabiities. Net Premium: The amount of premium remaining after we deduct the premium expense charge (see CHARGES AND DEDUCTIONS Premium Expense Charge ). Net Surrender Vaue: The Surrender Vaue minus any Poicy Debt pus any unearned oan interest. Partia Withdrawa Fee: A fee we assess at the time of any partia withdrawa equa to the esser of $25 or 2% of the Accumuated Vaue withdrawn. Poicy: The nonparticipating fexibe premium variabe ife insurance poicy we offer and describe in this Prospectus, which term incudes the Poicy described in this Prospectus, the Poicy appication, any suppementa appications and any endorsements or additiona benefit riders or agreements. Poicy Anniversary: The same date in each year as the Poicy Date. Poicy Date: The date set forth on the Poicy data page which we use to determine Poicy Years, Poicy Months and Poicy Anniversaries. The Poicy Date may, but wi not aways, coincide with the effective date of insurance coverage under the Poicy. (See THE POLICY Purchasing the Poicy. ) Poicy Debt: The sum of a outstanding Poicy Loans and any due and unpaid Poicy Loan interest. Poicy Loan: An amount the Poicyowner borrows from the Company using the Poicy as the soe security. Poicy Month: A one-month period beginning on a Monthy Deduction Day and ending on the day immediatey preceding the next Monthy Deduction Day. Poicyowner, you, your: The person who owns a Poicy. The Poicyowner is named in the appication. Poicy Year: A tweve-month period that starts on the Poicy Date or on a Poicy Anniversary. Specified Amount: The minimum death benefit payabe under a Poicy so ong as the Poicy remains in force. The Specified Amount as of the Poicy Date is set forth on the data page in each Poicy. Subaccount: A subdivision of the Variabe Account which invests excusivey in shares of a designated Investment Option of a Fund. Surrender Charge: A charge we assess at the time of any surrender during the first six Poicy Years and for six years foowing an increase in Specified Amount. Surrender Vaue: The Accumuated Vaue minus the Surrender Charge. Threshod Premium: A premium amount specified by the Company. We aso use the Threshod Premium to cacuate registered representatives compensation. G-2

69 Unit Vaue: The vaue determined by dividing each Subaccount s Net Asset Vaue by the number of units outstanding at the time of cacuation. Vauation Period: The period of time over which we determine the change in the vaue of the Subaccounts. Each vauation period begins at the cose of norma trading of the New York Stock Exchange (generay, 3:00 p.m. centra time) on one Business Day and ends at the cose of norma trading of the New York Stock Exchange on the next succeeding Business Day. Variabe Account: Farm Bureau Life Variabe Account, a separate investment account the Company estabished to receive and invest the Net Premiums paid under the Poicies. Written Notice: A written request or notice signed by the Poicyowner on a form satisfactory to the Company which the Company receives at our Home Office. G-3

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71 STATEMENT OF ADDITIONAL INFORMATION TABLE OF CONTENTS GENERAL INFORMATION ABOUT THE COMPANY Farm Bureau Life Insurance Company Safekeeping of the Variabe Account s Assets State Reguation of the Company Materia Irreconciabe Conficts ADDITIONAL POLICY PROVISIONS The Poicy Assignment Changing the Poicyowner or Beneficiary Incontestabiity Misstatement of Age or Sex Suicide Excusion Continuance of Insurance Annua Report Poicy Loans Voting Rights Nonparticipation Ownership of Assets Written Notice Empoyment-Reated Benefit Pans FINANCIAL STATEMENTS THE DECLARED INTEREST OPTION Genera Description Decared Interest Option Accumuated Vaue CALCULATION OF VALUES Accumuated Vaue Unit Vaue DISTRIBUTION OF THE POLICIES LEGAL MATTERS EXPERTS OTHER INFORMATION DEATH BENEFIT OPTIONS Appendix A MAXIMUM SURRENDER CHARGES Appendix B Page SAI-TOC

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76 Farm Bureau Life Insurance Company 5400 University Avenue West Des Moines, Iowa (05-18) Product 2018 FBL Financia Group, Inc.